This is because almost all personnel must be involved in making a projection in order to achieve the reliable result. However, considering most organizations are small in size they cannot afford the cost of carrying out market research to obtain data for effective market trend analysis and predict the future demand for workforce. Instead of matching present and future labour requirements of organization, they acquire workers whenever the need arises and will downsize the workforce in case of fall in demand due to changes in economic conditions or other factors (Ree & French, 2010).Prediction of workforce involves a lot data gathering and analysis. Some organizations may consider this as a waste of time for the personnel involved in data collection and analysis (Farnham, 2010, p. Furthermore, due to the current nature of labour market workers prefer flexible working environment. Therefore, there is high rate of labour turnover making it hard for organizations to control their workforce. Consequently, most organizations do not care to plan for resources that they cannot control.Despites the importance of manpower planning most organizations do not have a properly designed human resource planning. Most organizations do not use HR planning widely because they make planning of manpower in a changing environment hence there is no certainty about the future. Also, flexibility of labour has resulted in high labour turnover hence making organizations lose control of their workforce. Furthermore, a small organization cannot afford the high cost involved in effective HR planning. The challenges of balancing present and future manpower requirements are complicated. Therefore, most organizations act on impulse depending on the prevailing conditions.The flexibility of employment contract is an arrangement that has enabled organizations especially in the developed countries to meet the organizational labour requirements in a changing environment (Williams & Adam-Smith, 2010). It involves short-term or fixed-term contractual arrangement that enable employers to hire a fraction of the workers. It implies diversifying from working fixed number of hours in a day or week to variable working schedules such as flextime, zero hours, annualized hours or time accounts (Williams & Adam-Smith, 2010). In order for the organizations to achieve their objectives, they have to adjust the size of their labour force according to the market
Davulis, T. & Petrylaite, D. 2012, Labour Regulation in the 21st Century: In Search of Flexibility and Security. Cambridge Scholars Publishing. Pp. 1-350.
Farnham, D. 2010, Human Resource Management in Context: Strategy, Insights and Solutions. Chartered Institute of Personnel and Development. Pp. 1- 506.
Kew, J. & Stredwick, J. 2010, Human Resource Management in a Business Context. Chartered Institute of Personnel and Development. Pp. 1-481.
Ree, G. & French, R. 2010, Leading, Managing and Developing People. Chartered Institute of Personnel and Development. Pp. 1-322.
Williams, S. & Adam-Smith, D. 2010, Contemporary Employment Relations: A Critical Introduction. Oxford University Press. P. 1 – 426.
Zeytinoglu, I.U. ( Ed.) n.d, Flexibility in Workplaces: Effects on Workers, Work Environment and the Unions. Pp. 1-106. Available at http://www.ilo.org/public/english/iira/documents/publications/flexibility.pdf
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