Why Do Some Organizations Hesitate to Embrace Human Resource Planning?

Hello, I am currently encountering a question on what actually draws back organizations from undertaking human resource planning, given human resource management is so useful to organizations. Could you please provide some reasons for me other than HR activities being seen as a "cost-center" and complicated to implement from some organizations' points of view? Thank you!

Dear, that's a very nice question. Theory says Human Resource Management is vital to the performance and development of the organization, but in reality, organizations usually avoid performing HR activities like organizational development, training, and development.

In my opinion, there is a link between the size of the organization and the practice of HR management. Although I don't have any empirical evidence for that, according to my research, this is one of the reasons why this happens. It is because of the lack of a strategic point of view of the management of small organizations. They fail to see human resources as their most valuable assets and usually consider it a complete waste of money.

I will provide you with more reasons for this.

Take care.

Regards, Yasir Bin Tariq
HR Coordinator
Peace Foundation

Hi, In continuation to Yasir's comments, people always have a tendency to move on to the big players in the industry and the brand name associated therein. Hence, small organizations are reluctant to invest more in HRM. Also, the budget constraint and lack of a strategic approach (as earlier mentioned by Yasir). However, in larger organizations, HR practices and policies are well in place (at least made to appear so). Amidst all these, we still have some organizations that focus on good people practices, be it due to the tight competition in creating a brand name or to become leaders in the market (or whatever the reasons are). Otherwise, we would not have PCMM, etc., coming into the picture.

Regards, Jyoti

Hi! For organizations to group their activities into 'cost center' and 'revenue/profit center' is inappropriate. Without the support and involvement of activities covering HR and accounts, it would be impossible to manage a profit/revenue center.

Enlightened organizations are beginning to drop the practice of classifying their units/departments as cost or revenue centers.

Regards,
Arul John Peter