Chose any of the folowings Essay Example | Topics and Well Written Essays - 1000 words

Chose any of the folowings - Essay Example The end result would be the recruitment and selection of human resource in excessive of demand. Therefore, human resource planning would be important as this would avoid situations of retrenchment in later cases or inflating the wage bill hence low profitability. It is also essential to have a well co-ordinated human resource plan in order to match skills with jobs. Scheduling of jobs to match skills is one area of resource planning. This reduces wastages in that people are given jobs that they can best handle unlike in situations where people do tasks that they little comprehend leading to losses, through breakages, over - usage of materials. It also avoids wastages in terms of time saved. When people are assigned jobs matching their experiences and skills. Effective human resource planning also culminates in an arrangement of jobs such that as one job is completed another is started. This reduces incidences of employees waiting to do their jobs past the official working hours which are costly to the firm since they have to be paid overtime. Such an arrangement could also have led to an increase in labour turnover rate. Secondly, resource planning aids the organization in the effective management of its cash flows, both cash inflows and cash outflows. When resources are planned, the right quantity/ volume are used thus avoiding tying up money in material resources. It is important for any given firm to have a steady flow of cash so that it can effectively carry out its dividend and re - investment decision. It also reduces its financial risk i.e. of not being able to meet short - term maturing financial obligations as and when they fall due for payment. Third, resource planning gives the firm and opportunity to benefit from discounts and also avoid certain penalties. When enough resources are set aside to buy materials, these can be purchased in large quantity which in turn attracts trade discounts. If on the other hand, the firm depletes all its resources at the end of the financial year, possibilities of meeting its statutory obligations of paying taxes would be minimized. The consequence is that the firm would be heavily penalized for not paying taxes. Resource planning avoids shortages. Shortages may occur in terms of materials, manpower etc. In a manufacturing enterprise it is important to plan the material requirements to avoid stock- outs. Experiencing of stock - outs translates to insufficient finished goods for sale which may not meet demand. Thus planning is essential in respect to materials to meet even unusually high demands hence improved profitability. On the other hand, curbing shortages in terms of labour through planning is also essential in that there are enough men and women workers at any one given time. Determination of cash requirements Without proper resource planning, an enterprise cannot be able to determine when it would need cash requirements and the methodology to be used. Through cash budgets an enterprise would know when a cash deficit would occur. It would then design and put into contemplation that such a deficit