Impact of Human Resource Planning on Job Performance

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It can also ensure proper career planning for employees in helping them to achieve their goals. Poor planning means that it may take a long time for vacancies to be filled and it could have a bad effect on an organization in the long run. HR planning also involves keeping an inventory of present manpower, which means keeping records of the number of employees along with their skills, abilities and work preferences. This is important because it enables managers to see who from within their organization, might have the needed qualifications for a future position.

According to the resource based view which states that internal resources are more important than external resources, focusing on human resource management can give a company a competitive advantage. (Bratton & Gold, 2007) Effective planning can reduce unnecessary costs and prevent overstaffing and reduced productivity (Jackson & Schuler, 1990). HR planning can aid in boosting employee performance, satisfaction and motivation if executed in the right way. If the people in an organization are not properly managed this can cause business to suffer, thus leading to high employee turnover, customer dissatisfaction and decreased profitability.

There are a number of factors that can impede the execution of human resource planning. Environmental uncertainties such as changing economic, political and social conditions can impact planning processes, the quality of forecasting information. (Randhawa, 2007). Lack of management support and finance will prevent managers from carrying out effective training programs. Other barriers include availability of technology and changes, HR development policies and organizational culture and changes.