Verified
Major reasons for the current Interest in HR Planning are the following:
1) Unemployment Situation: While in general the unemployment is on the rise, there is big shortage for range of and good skills. This stresses upon the need for more efficient recruitment and maintaining people.
2) Technological Change: Production technologies, advertising methods and administration techniques have been changing quite extensively and quickly job contents and contexts have been immensely affected by them. These transformations can cause problems relating to redundancies, retraining and relocation. All these add to the need to plan human resource requirements intensively and methodically.
3) Organizational Change: In an unstable environment influenced by recurring fluctuations and discontinuities, the pace and the nature of variations in organizational environment, actions and structures affect human resource necessities and require planned consideration.
4) Demographic Changes: The changing profile of the work force depends upon age, sex, literacy. Technical inputs and social background also have implications for human resource planning.
5) Skill Shortages: Government changes and control in legislation with consideration to affirmative action for the underprivileged groups, working environment and hours of work, limitations on women and child employment and contract labor, etc. have influenced the organizations to be caught up in systematic human resource planning.
6) Legislative Controls: legislation makes it hard to decrease the size of an organization speedily and inexpensively. It is easy to amplify but hard to reduce the numbers employed because of new changes in labor law relating to lay-offs and closures. Those accountable for managing human resources must see far ahead and try to foresee human resource arrangement.
7) Impact of Pressure Groups: Influential groups such as politicians, unions and persons displaced from land by location of giant ventures have been raising opposing force on enterprise management. Internal recruitment and promotions, displaced persons, sons of soil, preference to employee’s children, etc. are main factors which affect enterprise management.
8) Systems Concept: Revolution in information technology, mainly in field of systems thinking and the advent of microcomputer give emphasis to implementing newer ways of handling large personnel records and planning.
9) Lead Time: Selection process and training and development of the employees require longer lead time. Handling new knowledge and skills successfully also need longer lead time.