Importance of Human Resources Planning (HRP)

Human Resource Planning (HRP) is a needed for following reasons:

To ensure optimum use of manpower and capitalize on the strength of HR. The organization can have a reservoir of talent at any point of time.

To forecast future requirements and provides control measures about availability of HR labor time. Advance planning ensures a continuous supply of people with requisite skills who can handle challenging jobs easily.

To face the challenges the business is facing due to turbulent and hostile environmental forces (e.g. technology, social, economic and political upheaval) impinging on single one of them. Although planning has always been an essential process of management, increased emphasis on HRP becomes especially critical when organizations consider mergers, relocation of plants, downsizing, or the closing of operating facilities.

To face Rapid Technological Changes. The myriad changes in production technologies, marketing methods and management techniques have been extensive and rapid. Their effect has been profound on job contents and job contexts. These changes cause problems relating to redundancies, retraining and redeployment. All these suggest the need to plan manpower needs intensively and systematically.

To face Organizational Changes. In the turbulent environment marked by cyclical fluctuations and discontinuities, the nature and pace of changes in organizational environment, activities and structures affect manpower requirements and require strategic considerations means perfect HR Planning.

To determine recruitment/induction levels. We may explain this with an example: manager wants to determine what kind of induction the organization will require at such and such date. If we have a ready HR plan, we will have fairly good idea what kind of people are being recruited and at what position. Thus we can successfully plan our induction level.

To determine training levels and works as a foundation for management development programmes

To know the cost of manpower if there is a new project is being taken up.

To assist in productivity bargaining. It can offer higher incentives to smoothen the process of voluntary layoffs.

To assess accommodation requirements. It includes the physical facilities such as canteen, school, medical help, etc., can also be planned in advance.