Limitations of Human Resource Planning


3. Placement of personnel

Since the HRP process is conducted for the entire organization, we can identify the requirements for each and every department. Based on the requirement, we can identify existing employees and place them on those jobs which are vacant.

4. Performance appraisal

HRP make performance appraisal more meaningful. Since feedback is provided in performance appraisal and employee is informed about his future chances in same company, the employee is motivated to work better. Information for all this is collected from HRP process.

5. Promotion opportunity

HRP identifies vacancies in the entire organization including all the branches of all the company. Therefore when the company implements promotion policy it can undertake its activities in a very smooth manner.

Limitations of Human Resource Planning

Human resource planning can be defined as the process of identifying the number of people required by an organization in terms of quantity and quality. All human resource management activities start with human resource planning. So we can say that human resource planning is the principle/primary activity of human resource management. Although HRP is a very advantageous method it has some limitations which can be explained as follows:

1. The future is uncertain

The future in any country is uncertain i.e. there are political, cultural, technological changes taking place every day. This effects  the employment situation. Accordingly the company may have to appoint or remove people. Therefore HRP can only be a guiding  factor. We cannot rely too much on it and do every action according to it.

2. Conservative attitude of top management

Much top management adopts a conservative attitude and is not ready to make changes. The process of HRP.

3. Problem of surplus staff

HRP gives a clear out solution for excess staff i.e. Termination, layoff, VRS,. However when certain employees are removed from company it mostly affects the psyche of the existing employee, and they start feeling insecure, stressed out and do not believe in the company. This is a limitation of HRP i.e. it does not provide alternative solution like re-training so that employee need not be removed from the company.

4. Time consuming activity

HRP collects information from all departments, regarding demand and supply of personnel. This information is collected in detail and each and every job is considered. Therefore the activity takes up a lot of time.

5. Expensive process

The solution provided by process of HRP incurs expense. E.g. VRS, overtime, etc. company has to spend a lot of money in carrying out the activity. Hence we can say the process is expensive.