MHR 405 Chapter 5: MHR chapter 5

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The key steps in hrp involve predicting future demand for labor, analyzing the labor supply and planning and implementing hr programs to balance supply and demand. No hrp or poor hrp will lead to high costs when unstaffed positions create costly inefficiencies and when severance pay is required for large numbers of employees being laid off. Hrp proactive is a dynamic process where it expects and influences an organization s future by determining the demand for and supply of employees under changing conditions and by developing plans and activities to satisfy their needs. Ineffective hr leads to instances where the department is firing employees while another department is hiring employees who possess similar skills which decreases the motivation to work, the productivity and will result in losses. Ineffective hr planning prevents us from achieving short term operational plans and/or long range strategic plans.

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