Need for Human Resource Planning in India

Published by MBA Skool Team, Published on March 08, 2016

Human Resource Planning has been on the forefront in the minds of Indian Planners ever since independence. Macro-level Human Resource Planning i.e. the task of matching people’s skills to the nation’s human resource requirement so as to provide productive job opportunities is a gigantic, yet the most vital thing for maintaining economic and social stability in the economy.

If done perfectly, we shall be able to maintain unemployment at its natural rate. Hence, there is a need for bringing in perfection into our Human Resource Planning methods and processes. But history says that time and again, we have been failing in our efforts to establish and follow fruitful Human Resource Planning processes. Needless to say, this has had severe repercussions on the economy and on the society at large. So, there is a need to pay special attention to this department for the growth and prosperity of the country.

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There needs to be thorough analysis of the manpower requirement at the national level. We need to identify the gaps in skill sets that are present and those required and develop the requisite institutional support to develop those skill sets so as to bridge the gap and make people recruitment-ready. One needs to keep in mind the current economic condition and trends while formulating such strategy. Also, there needs to be sectoral-manpower analysis to identify the manpower requirement of various sectors of the economy. For example, gaps in manpower needs of agricultural and industrial sectors can be covered by suitable manpower planning, so that various economic activities are not hampered and go on smoothly to give way to long-run economic dynamism.

Certain key points that necessitate intensive Human Resource Planning, especially in India, can be understood as follows:-

• Human Resource Planning helps forecast future manpower requirements and hence, avoids situations of surplus or deficiency of manpower. A balance between the supply and demand of labour can be achieved by the supply of right type of people in right numbers and at the right time. By careful consideration of the likely future, Human Resource Planning might lead to the discovery of better means of managing Human Resources. Thus, foreseeable pitfalls might be avoided and there can be optimum use of Human Resources.

• Changing face of technology and society has led to a change in the dynamics of all the sectors of the economy- namely the agricultural, industrial and the services sector. Also, there are rapid changes in competitive forces, markets, product and government regulations. Human Resource Planning enables to cope with such changes which demand a change in the job-content, skill sets required and the quantity of manpower needed.

• The rapid expansion and diversification plans of both the public sector and private sector entities, today, need a large pool of talented manpower in order to drive them. This necessitates manpower planning and institutional support to achieve such objectives.

• Generally speaking, Human Resource Planning is needed for the development of Human Resources and their skills and abilities, for long-term economic growth. The recent trends in Indian economy show signs of robust growth in the near future. This growth must be fueled by efficient manpower resources, who have the right degree of knowledge, skills and abilities to deliver to the expected level and drive the economy to the path of prosperity. Moreover, the skills that are acquired by individuals in the country must correspond to the skills required by the various sectors of the economy in right proportions in order to fuel economic growth and avoid situations of manpower redundancies and reduce the unemployment rate.

• Human Resource Planning identifies the skill set requirements for various kinds of jobs and economic activities and the gaps in such requirements through gap analysis and provides guidelines to organize training and development activities to develop the required skills and abilities in people that help them perform their tasks effectively and efficiently.

• India’s population is the second largest in the world and has an advantage of demographic dividend, with majority of population being the youth. In fact, India has the largest youth population in the world. Human Resource Planning must aim at making the most out of such an advantage and generate a large pool of talent in different areas of specialization in order to maximize economic growth and productivity and avoid talent crunch in future.

• Another important point is that much of the uncertainties associated with allocating the right manpower to the right job and sourcing manpower resources to fulfill various economic need of the country are sorted out to some extent through proper Human Resource Planning.

• There are positive spread-out effects of an effective Human Resource Planning program such as population control, increase in literacy rate, universal primary and secondary education, improvement in sanitation, health care facilities etc.

• The rapidly changing profile of workforce in terms of age, literacy rate, skill sets etc have major implications for Human Resource Planning. So, Human Resource Planning needs to be done on a continual basis to accommodate such changes.

• Human Resource Planning in Indian context aims at women empowerment in all spheres of economic activities. Various vocational training centers have been set up in the country for imparting training and make them employable. Also, there have been provisions for them to avail easy microloans for the purpose of initiating small scale businesses .Thus, Human Resource Planning is needed to bring women to the forefront and make them an active part in contributing to the economic growth of the country.

This article has been authored by Swati Suravi from XIMB

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