Importance of Human Resource Planning

1. Personnel Needs in the Future

Planning is important since it aids in determining future staff requirements. The lack of faulty planning results in a surplus or deficit in personnel strength. Many units are reverting to VRS to eliminate surplus personnel since the problem of excess staff has grown so severe.

2. Adapting to Change

HRP allows a company to adapt to changes in market forces, technology, goods, and government requirements. Job content, skill needs, and the quantity and kind of employees all alter as a result of these changes. People shortages may be generated in certain places, while surpluses may arise in others.

3. Developing Highly Skilled Personnel

Positions are becoming increasingly intellectual, and incumbents are becoming increasingly professionalised. The HR manager at L & T, an engineering behemoth, must utilise his or her inventiveness to recruit and retain qualified and talented employees, as MBAs, engineers, and technicians account for 70% of the total staff strength of 20,000.

4. Weaker Sections Protection

Despite the constitutional provision that provides equal chances to all physically challenged people, children of socially and physically oppressed people, and backward-class residents all get a certain percentage of employment.

5. Global Strategies

As the process of fulfilling the requirements of foreign-born employees, as well as the cultural, linguistic, and developmental concerns that go along with it, becomes more complicated, HRP will become increasingly crucial.

6. Personnel Functions Foundation

Recruitment, selection, personnel mobility, and training and development are just a few of the activities that manpower planning helps to create and implement.

7. Increasing Investments in Human Resources:

Another compelling reason for HRP is an investment an organization makes in its human resources. Human assets, as opposed to physical assets, can increase in value. An employee who gradually develops his \ her skills and abilities becomes a more valuable resource.

8. Resistance to Change and Move:

There is a growing resistance among employees to change and move. There is also a growing emphasis on self-evaluation and on evaluation of loyalty and dedication to the organization. All these changes are making it more difficult for the organization to assume that it can move its employees around anywhere and anytime it wants, thus increasing the importance and necessity of planning ahead.

9. Other Benefits: Following are other potential benefits of HRP:

• Upper management has better view of the HRP dimensions of business decisions.

• Personnel costs may be less because the management can anticipate imbalances before they become unmanageable and expensive.

• More time is provided to locate source talent.

• Better planning of assignments to develop managers can be done.

• Major and successful demands on labour markets can be made.

10. Part of Strategic Planning:

HR management must become an integral part of strategic management process. All activities of HRM-planning, hiring, training, remunerating and maintaining-must be merged with strategic management.

       

HR planning can become part of strategic planning at two ends. At the beginning of strategic planning, HRP provides a set of inputs into the strategic formulation process in terms of deciding whether the types and numbers of people are available to pursue a given strategy.