Changes in the business environment and labour market affect Human Resource Planning (HRP).

Essay by cakehouse1216University, Bachelor'sB-, May 2004

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By looking out the definitions of HRP from Dessler (1999), Stone (2002), and Schuler (1998), HRP can be defined as the systematic and continuous process to ensure that organization's human resource needs are fulfilled by ensuring that the right people with the correct skills are available when required. Shortly, HRP is essentially focus on matching the individual and the needs of the organization to gaining a competitive advantage in marketplace.

HRP is important because the HR plan affects all HR activities and acts as the strategic link between organizational and HRM objectives (Stone 2002). It can reduce the human resources cost by helping management to anticipate and correct the shortages and surpluses of employees. An addition, HRP will provide a better basis for planning employee employment in order to make optimum use of workers' attitudes and to improve their job satisfaction (Nankervis et al. 1999). HRP provide more opportunities of working for women and minority groups in the labour market.

Moreover, the HPR provide a tool for evaluating the effect of alternative human resource actions and policies.

Nowadays business environment is multifaceted and complex, thus the changes in business environment will have a great impact on the HRP of the organization. By the definition of HRP, to be a success organization, the organization must achieve the business objectives through the effective utilization of human resources. Therefore, organizations need to forecast the internal and external supplying of human resources through the process of HRP. Usually, the present employees who can be promoted, transferred, demoted or developed will make up the internal supply. When the internal supply of employees cannot meet the demand, organization is needed to look up the external human resources from labour market. This show that labour market is an important factor in determining human resource strategy,