The procedure used to tie human resource issues to the organization's business needs is called human resource planning. Also known as HR planning, this procedure is defined as the "process of identifying and responding to [organizational needs] … and charting new policies, systems, and programs that will assure effective human resource management under changing conditions."
The purposes of HR planning are to enable organizations to anticipate their future HRM needs and to identify practices that will help them to meet those needs. HR planning may be done on a short- or long-term (three or more years) basis. Its aim is to ensure that people will be available with the appropriate characteristics and skills when and where the organization needs them. The use of HR planning enables companies to gain control of their future by preparing for likely events. That is, they can anticipate change and devise appropriate courses of action. When companies learn how to capitalize on future events, their own future improves.
As valuable as HR planning is, many companies ignore this opportunity. Some see it as too difficult and frustrating, while others simply do not see the need for it. However, when failing to properly plan for their human resources, employers are forced to respond to events after they occur, rather than before; they become reactive, rather than proactive.
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