A Business Encyclopedia

Limitations of Human Resource Planning

The Human Resource Planning is concerned with maintaining and recruiting the human resources with the requisite quantity and the quality, to fulfill the demand and supply arising in the near future.

In spite of its benefit of keeping the organization’s manpower position balanced, there are a few limitations of Human Resource Planning, which are discussed below.

Limitations of Human Resource Planning

  1. The future is uncertain. There are several external factors viz. Technological, political, cultural, etc. that affects the employment opportunities. Therefore, the management can consider the human resource planning as a guiding factor and can not rely completely on it.
  2. With the surplus manpower, the companies try to remove this imbalance using termination, layoff, removal of the existing employees. This could create a sense of insecurity among them, and that would result in the loss of their faith in the company.
  3. The human resource planning is time-consuming since it collects the complete information regarding the personnel requirements of each department and then finds the suitable sources to satisfy the needs.
  4. The human resource planning is an expensive process. All the activities carried out from the time the manpower need arises till the final placement of employees, consumes lot of time and is very expensive.

Thus, the firm must carry out the human resource planning cautiously since it is accorded with several limitations that can adversely affect the overall functioning of the firm.


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