Question

Why is it necessary to monitor and review Human Resource Plans periodically? Identify key indicators that can be used to evaluate the effectiveness of HRP and suggest measures for improving the HRP system in organisations.

27 Jan 2026
Answer :
Word Count : 1146
Human Resource Planning is a continuous and dynamic process that aims to ensure the availability of the right number of employees with the right skills at the right time to achieve organisational objectives. Because organisations operate in an environment that is constantly changing due to economic conditions, technological advancements, labour market trends, government regulations, and internal strategic shifts, it becomes necessary to monitor and review Human Resource Plans periodically. Periodic monitoring ensures that HR plans remain aligned with organisational goals and do not become obsolete or ineffective. Without regular review, even well-designed HR plans may fail to respond to emerging challenges, leading to manpower shortages, surplus workforce, skill gaps, low productivity, and increased costs. One of the primary reasons for monitoring and reviewing HR plans is the dynamic nature of organisational strategies. Business expansion, diversification, mergers, downsizing, or restructuring directly affect manpower requirements. A plan prepared at one point in time may not remain relevant when organisational priorities change. Periodic review allows management to assess whether existing human resources are adequate and appropriately deployed to support revised objectives. It also helps in identifying deviations between planned manpower requirements and actual workforce availability, enabling corrective actions in a timely manner. Technological change is another major factor that necessitates regular review of HR plans. Automation, digitalisation, and the adoption of new technologies often alter job roles and skill requirements. Monitoring HR plans helps organisations assess whether employees possess the necessary competencies to operate new systems and processes. It also highlights the need for reskilling, upskilling, or redeployment of employees. Without such review, organisations may face resistance to change, inefficiency, and reduced competitiveness. Periodic monitoring is also essential due to uncertainties in the external labour market. Factors such as migration, changing employee preferences, demographic shifts, competition for talent, and fluctuations in supply and demand of skills influence workforce availability. Reviewing HR plans helps organisations evaluate whether their recruitment, retention, and succession strategies are effective in addressing these uncertainties. It also supports better forecasting of future manpower needs based on realistic assumptions. Monitoring and reviewing HR plans further helps in cost control and efficiency. Human resources constitute a significant portion of organisational costs in terms of salaries, benefits, training, and development. By regularly evaluating HR plans, organisations can detect overstaffing or understaffing situations, avoid unnecessary recruitment, and optimise the utilisation of existing employees. This contributes to improved productivity and financial performance. To evaluate the effectiveness of Human Resource Planning, certain key indicators can be used. One important indicator is workforce availability versus requirement. This involves comparing planned manpower needs with actual employee strength at different levels and functions. A close match indicates effective HR planning, while frequent shortages or surpluses suggest
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