Page 60 - DMGT106_MANAGING_HUMAN_ELEMENTS_AT_WORK

Managing Human Element at Work

Notes Mobility of Labour

Today, it is difficult to retain qualified personnel in an organization as they move from one
job to another in search of better prospects. In a free society, people enjoy unrestricted
mobility from one part of the country to the other. Therefore, in order to reduce the loss
of experienced and skilled labour, every organization must have a sound system of manpower
planning.
Facilitating Expansion Programmes
In these days of rapid industrial development every company goes for expansion of its
activities. With the increase in company size, the demand for HR also increases. This
necessitates proper manpower planning so as to ensure the continued supply of the required
manpower for the firms’ activities.

To Treat Manpower Like Real Corporate Assets
Today it is being increasingly felt by the practicing managers and psychologists that employees
in an organization must be treated as the most significant assets. The productivity of a
company can be improved only through manpower planning, recognizing the significance
of the human factor in business. A proper manpower planning is based on the realization
that satisfied workers can contribute to the overall profitability of the firm through improved
productivity.

The planning processes are of the best practice organizations not only
define what will be accomplished within a given timeframe, but also the
numbers and types of human resources that will be needed to achieve
the defined business goals.

3.1.6 Limitations of HR Planning
The main hurdles in the process of HR planning are:

Inaccuracy
The HR planning involves forecasting the demand for and supply of HR. Projecting manpower
needs over a period of time is a risky task. It is not possible to track the current and future
trends correctly and convert the same into meaningful action guidelines. Longer the time
taken, greater is the possibility of inaccuracy. Inaccuracy increases when departmental
forecasts are merely aggregated without critical review. Factors such as absenteeism, labour
turnover, seasonal trends in demand, competitive pressures, technological changes etc., may
reduce the rest of manpower plans as fashionable, decorative pieces.

Uncertainties
Technological changes and market fluctuations are uncertainties, which serve as constraints
to HR planning. It is risky to depend upon general estimates of manpower in the face of
rapid changes in environment.

Lack of Support
Support from management is lacking. The latter is unwilling to commit funds for building
an appropriate HR Information System. The time and effort involved with no tangible and
immediate gains often force them to look the ‘other way’.
• HR planning grows slowly and gradually. In some cases, sophisticated technologies
are forcefully introduced just because competitors have adopted them. These may not
yield fruit unless matched with the needs and environment of the particular enterprise.

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