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International Journal of Research in Business Studies and Management
Volume 5, Issue 3, 2018, PP 24-30
ISSN 2394-5923 (Print) & ISSN 2394-5931 (Online)
Human Resource Planning as an Important Practice to
Anticipate Future Human Resource Requirements of the
Organization – Literature review.
Dr. Janes O. Samwel, PhD
East Africa Regional Human Resource Manager, Ausdrill East Africa, Mwanza, Tanzania/Part time
Senior Lecturer-Mount Meru University,Tanzania
*Corresponding Author: Janes O. Samwel, East Africa Regional Human Resource Manager, Ausdrill
East Africa Mwanza, Tanzania/Part time Senior Lecturer-Mount Meru University, Tanzania.
ABSTRACT
Human resource planning is one of the most important human resource practice in the organization.
Organizations rely much on human resource planning to determine their current position and future needs
of manpower. The purpose of this paper is to examine the importance of human resource planning to the
organization by reviewing different literature on human resource planning. This paper reviews the literature
relating to human resource planning and it focuses on the objectives of human resource planning, the
process of human resource planning and importance of human resource planning to the organization, The
findings depicts that there is a significant relationship between human resource planning and organizational
manpower requirements and between human resource planning and organizational performance, therefore
this paper recommends that organizations should continue to practice and maintain effective human
resource planning as it plays fundamental role in achieving the objectives of the organizations.
Keywords: HR Planning, Practice, Future HR Requirements and Organization.
INTRODUCTION Human resource planning is a key to manpower
Organizations are formed by people and the requirements in the organization. Human
same people are the most important strategic resource planning is one of the most important
resource in the organization, there is no elements in a successful human resource
organization that can achieve its objectives management program (De Cenzo & Robbins,
without people. There must be a proper 1988). An organization that implements its
utilization of human resource in organizations in human resource planning effectively is likely to
order to achieve high-performance standard prosper in a competitive environment, studies
(Lunenburg, 2012), and all the objectives of the showed about 80 % of the middle sized and
organization are achieved through effective larger companies now perform human resource
human resource planning, effective human planning on a regular basis (Craft, 1988). The
resourceplanning is a mechanism for building optimal utilization of human resources is an
long-term capacity to meet the workforce important success factor contributing to long-
challenges (Choudhury, 2007), therefore, human term competitiveness (Zülch, Rottinger &
resource management has the opportunity to Vollstedt, 2004). Human resource planning is
enable organizations to survive, grow, be vital in organizational unstable periods like
competitive and profitable (Werner, Jackson & during mergers, amalgamation, consolidation
Schuler, 2012). and when labour market settings are studied or
Human resource planning plays an important when joblessness is low (Mello, 2001).
role in human resource management because it Human resource planning is a core human
translates the objectives of the organization into resource management process that seeks to
a number of workers needed by determining the prepare organizations for their current and
human resource required by the organization to future workforce needs by ensuring the right
achieve its strategic goals. In order for an people are in the right place at the right time
organization to manage its human resource, it (Jacobson, 2010). Human resource planning can
must ensure effective human resource planning.
International Journal of Research in Business Studies and Management V5 ● I3 ● 2018 24
Human Resource Planning as an Important Practice to Anticipate Future Human Resource
Requirements of the Organization – Literature review.
be used to achieve organisational objectives by recruitment of employees. Cascio (1992)
understanding and planning for people needs in narrated that human resource planning can be
the short, medium and long-term (Colley & defined as an effort to anticipate future business
Price, 2010). and environmental demands on an organization,
LITERATURE REVIEW and to provide the employees to fulfil that
business and satisfy those demands. Walker
The Concept of Human Resource Planning (2002) affirmed that human resource planning is
It is the work of the organization to determine the process of identifying and responding to the
its current and future manpower requirements issue of workers and charting new policies,
that will help to meet its objectives. According systems and programs that will ensure effective
to Bulla and Scott (1994), human resource human resource management under changing
planning is a process for ensuring that the conditions. Mursi (2003) postulated that human
human resource requirements of the resources planning is a process of guiding
organization are identified and plans are made activities related to the human resources
for satisfying those requirements. Milkovich and management. Human resource planning is a
Boudreau (1993) outlined that human resource process that put one organization in suitable
planning is the process of collecting and using place by having the correct number and desired
information on the base of which it can be human resource that meets the purpose of the
discussed as the number of resources spent on organization (Jahanian, 2009). Forecasting
personnel activities. Mondy and Noe (2006) manpower demand involves the estimation of
advocated that human resource planning is the the number and type of human resource required
entry point of human resource management at different levels in different departments in an
concerned with the determination of human organization (Pradeesh, 2011). Randal (2000)
resource requirements, job analysis, recruitment, was of the view that human resource planning is
selection and socialization. Reilly (2003) the process that consists of developing and
defined workforce planning as a process in implementing plans and programs to ensure that
which an organization attempts to estimate the the right number and type of individuals are
demand for labor and evaluate the size, nature available at the right time and place to fulfil
and source of supply which will be required to organizational needs.
meet the demand. Anyim, Mba and Ekwoaba Objectives of Human Resource Planning
(2012) were of the opinion that Human resource Reilly (1999) highlighted that there are several
planning is a first and most basic, activity of the reasons why organization chooses to engage in
human resource management function. human resource planning. Michael (2006)
Khadka (2009) stressed that human resource contended that, the aims of human resource
planning must be linked to the overall strategy planning in any organization will largely depend
of the organization. Koubek (2007) stated that on its context. The purpose of human resource
personnel planning serves to achieve the goals planning is to forecast organisational needs for
of the organization by development prediction, employees taking into account the internal and
setting the targets and realizing arrangements external supply of labour to meet staffing
leading to current and future ensure of business requirements; that is, identifying the gap
tasks with adequate manpower. between what is needed and what is available
Dessler and Varkkey (2009) affirmed that (Santos, Zhang, Gonzalez & Byde, 2009). Noe
personnel planning embrace all future positions (2012) highlighted that other factors that
influence forecasting demand for personnel
and planning flows from the firm’s strategic include budget constraint, turnover due to
plan. Mullins (2003) condemned that human resignations, contract terminations, transfers and
resource planning as the process of planning for relocations, retirement, new technology in the
the work- force needs of an organization to field, decisions to upgrade the quality of
ensure that the personnel needs are constantly services provided and minority hiring goals.
met and this is achieved through demand and That when it comes to the human resource
supply analysis. Dwevedi (2012) saw human planning context, a mathematical formula is
resource planning as a process which helps out used to project future demands of human
in properly performing important human resources based on an established relationship
resource functions such as true and timely
information which is provided about when to do between an organization’s employment level
and some measurable factors of output such as
25 International Journal of Research in Business Studies and Management V5 ● I3 ● 2018
Human Resource Planning as an Important Practice to Anticipate Future Human Resource
Requirements of the Organization – Literature review.
revenue, sales or production level. Walker motivation, and compensation to ensure that
(1980) established that human resource planning future human resource requirements that are
occupies an important role to forecast future properly met.
demands of business and environmental factors Relatively, John (2008) advocated that five steps
in the organization and it also helps to generate process is used for creating a linkage between
and manage the human resource demands as human resource or workforce planning and
required and as conditions depict. Imison, departmental planning to regulate the current
Buchan and Xavier (2009) contended that and future requirements and demands of the
getting the balance right between labour demand human resource include determination of business
and supply is the most common objective of goals, environmental scanning, performing gap
human resource planning. analysis, deciding human resource priorities and
Ulrich (1987) advocated that human resource measure, monitor and report the progress.
planning is recognized as a source of development Edwards (1983) discussed three pillars of
of organizational functions based on missions manpower planning which are the prediction of
and objectives of the business. Like most the future demand in human resource, the
organizational practices, the effectiveness of prediction of the future supply of the human
human resource planning depends on the resource and closing the gap between the first
perspective within which it is utilized (Walker, and second pillar and making policies for that.
1990). Izueke (2009) pointed that human resource
Process of Human Resource Planning planning requires detailed analysis of the
present and the future to ensure that the
Human resource planning captures all actions organization has the right number of people
involving continuous environmental scanning available who possess the right kinds of skills to
and reviewing of organizational strategies, perform the jobs required by the organization
objectives, and policies in order to ensure that when the work is needed. Butter, (2002) advised
the right quality and quantity of human that it is important to note that the quality of
resources are available when and where they are human resource planning depends on personal
needed. records. Ghazala & Habib, 2012) contended that
(Randhawa, 2007). Dessler, (2001) opined that the process of human resource planning should
human resource planning is an ongoing process ensure that, an organization’s employees have
that is not static involving many interrelated the requisite skills and competencies an
activities which must be modified and updated enterprise needs for it to succeed.
as conditions require. Importance of Human Resource Planning to
Randall (2000) asserted that human resource the Organization.
planning involves making an inventory of Armstrong (1992) postulated that the
current human resources in order to determine importance of increasing productivity is one of
the human resource status, for example, the the most critical goals in business and Human
current size and kind of the human resources as resource planning is essential for the achievement
well as work scope, the inventory involves and attainment of this productivity. Parker and
examining the available employees skills and Caine (1996) mentioned that it is important for
number of employees, the experience and age organizations to have the right number of
structure span of control. manpower in order to avoid the unwanted
Harbison (1973) argued that, human resource situation such as the issue of shortage and
planning consists of various activities which excess of manpower. Cole (2002) said that
include forecasting human resource requirements, human resource planning is critical to the
making an inventory of present human resources success of an Organization’s strategy and planning
and assessing the extent to which these resources is tied to the nature of organizations. Reilly
are employed optimally, anticipating human (2003) concurred that human resource planning
resource problems by projecting present resources practices enable a firm to estimate the demand
into the future and comparing them with the for labour and evaluate the size, nature, and
forecasts of requirements to determine their sources of supply which will essentially be
adequacy and planning the necessary programs required to meet the demand. Craft (1980)
of requirements, selection, training and observed that human resource planning influences
development, utilization, transfer promotion, the calibre and type of applicants who choose to
International Journal of Research in Business Studies and Management V5 ● I3 ● 2018 26
Human Resource Planning as an Important Practice to Anticipate Future Human Resource
Requirements of the Organization – Literature review.
join an organization, that firms that practice change associated with the external
human resource planning are more likely to environmental factors. Ogunrinde (2001) examined
know what specific characteristics they are looking the application of human resource planning and
for applicants and this helps them to increase the its relationship with organisational performance
quality of decisions. Katua et al (2014) discovered and found that organisations engaged in human
that human resource planning strategies can planning performed better than those that did
enhance the performance of a firm; that firms not. A study by Mildred (2012) on the influence
ought to develop and document strategies for of Human Resource Management practices on
human resource planning with the object of financial performance of commercial banks in
enhancing both employee and organizational Kenya concluded that the major human resource
performance. Hassan (2003) pointed that failure management practices that affect the financial
to properly articulate and implement the three performance of commercial banks include
fundamental functions of human resource human resource planning.A study by Hiti (2000)
planning which include labour forecast, managing found that human resource planning has a
demand for employees and available supply in positive relationship with organizational
market and keep a balance between labour performance. A study by Cakar (2012) revealed
supply and demand predictions will pose a great that one of the importance of human resource
problem to firms in terms of cost and expertise planning is that effective human Resource
which in turns reduce their competitiveness. planning fulfils the organization needs for a
Walker (1990) narrated that planning for human quality workforce, that a proper human resource
resources is more important than ever as plan reduces labour costs substantially by
competitive advantage is sought through maintaining a balance between demand for and
superior service, quality, lower costs and supply of the human resource. Arsad (2012) in
organizational effectiveness; that with increased his study of manpower planning effect on
emphasis on productivity, quality and service, organizational performance found that there is a
executives now recognize that attention to the positive relationship between manpower planning
financial and technological side of business an organizational performance.
must be balanced by attention paid to planning Moreover, a study by Johne (2009) indicated
for human resources. The need for human that human resource planning plays an important
resource planning has become an ever more role in organizational performance by providing
important aspect of the business planning team players. A study by Chand and Katou
process (Meehan et al, 2002). Aslam et al (2007) in their study in the Indian hotel industry
(2013) elaborated that organizations which revealed that manpower planning has a strong
consider human resource planning as the relationship to productivity and productivity
significant and essential part of their human impact on organizational performance.
resource management turn out to be very helpful
in terms of dealing with its human resource A study by Amaratunga (2012) on how human
capital which could possibly make the resource planning can Assuring Adequate staff
organization to standout of the competition levels found that a primary function of human
prevailing in the market. resources planning is making certain that various
A study by Edwards and Pearce (1988) on a company departments have sufficient staff to
high technology businesses revealed that human complete all the work required to meet the
resource planning is particularly important for organization’s goals. Anya, Umoh and Worlu
emerging, rapid-growth and high tech business. (2017) studied human resource planning and
organization performance in oil and gas firms in
A study conducted by Gifford (2011) on the Port Harcourt Nigeria and found that human
development of human resource revealed that resource planning has a strong influence on
Human resource planning identifies the skill organizational performance in forecasting future
requirements for various levels of jobs. A study demand of business and environment which
by Mursi (2003) revealed that there isa helps to manage human resource demand as
significant and positive relationship between required. A study by Ngui et al (2014) on the
human resource planning and organizational effect of employee resourcing strategies on the
performance. A study on coping with change performance of commercial banks in Kenya
conducted by Bogdan (2012) in the northern found that employee resourcing strategies have
province of France highlighted that Human a significant positive effect on performance of
resource planning is important to cope with the the aforementioned banks, that banks should
27 International Journal of Research in Business Studies and Management V5 ● I3 ● 2018
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