IMPORTANCE OF HRP

1. Future Personnel Needs:

  • If an organization is facing the problem of either surplus ordeficiency in staff strength, then it is the result of the absence of effecting HR planning. The problem of excess staff has become such a prominent problem that many private sector units are resorting to VRS ‘voluntary retirement scheme’. The excess of labor problem would have been there if the organization had good HRP system. Effective HRP system will also enable the organization to have good succession planning.

2. Part of Strategic Planning:

  • HRP provides inputs in strategy formulation process in terms of deciding whether the organization has got the right kind of human resources to carry out the given strategy. HRP is also necessary during the implementation stage in the form of deciding to make resource allocation decisions related to organization structure, process and human resources. In some organizations. HRP play as significant role as strategic planning and HR issues are

    perceived as inherent in business management.

3. Creating Highly Talented Personnel:

  • Even though India has a great pool of educated unemployed, it is the discretion of HR

manager that will enable the company to recruit the right person with right skills to the

organization. Even the existing staff hope the job so frequently that organization face

frequent shortage of manpower. Manpower planning in the form of skill development is

required to help the organization in dealing with this problem of skilled manpower

shortage

4. International Strategies:

  • An international expansion strategy of an organization is facilitated to a great extent by HR planning. The HR department’s ability to fill key jobs with foreign nationals and

    reassignment of employees from within or across national borders is a major challenge that

    is being faced by international business. With the growing trend towards global operation,

    the need for HRP will as well will be the need to integrate HRP more closely with the

    organizations strategic plans. Without effective HRP and subsequent attention to employee

    recruitment, selection, placement, development, and career planning, the growing

    competition for foreign executives may lead to expensive and strategically descriptive

    turnover among key decision makers.

5. Foundation for Personnel Functions:

  • HRP provides essential information for designing and implementing personnel functions,

    such as recruitment, selection, training and development, personnel movement like

    transfers, promotions and layoffs.

6. Increasing Investments in Human Resources:

  • Organizations are making increasing investments in human resource development

compelling the increased need for HRP. Organizations are realizing that human assets can

increase in value more than the physical assets. An employee who gradually develops his/

her skills and abilities become a valuable asset for the organization. Organizations can

make investments in its personnel either through direct training or job assignment and the

rupee value of such a trained, flexible, motivated productive workforce is difficult to

determine. Top officials have started acknowledging that quality of work force is

responsible for both short term and long term performance of the organization.

7. Resistance to Change:

  • Employees are always reluctant whenever they hear about change and even about job

rotation. Organizations cannot shift one employee from one department to another

without any specific planning. Even for carrying out job rotation (shifting one employee

from one department to another) there is a need to plan well ahead and match the skills

required and existing skills of the employees.

8. Uniting the Viewpoint of Line and Staff Managers:

  • HRP helps to unite the viewpoints of line and staff managers. Though HRP is initiated and

executed by the corporate staff, it requires the input and cooperation of all managers within

an organization. Each department manager knows about the issues faced by his department

more than anyone else. So communication between HR staff and line managers is essential

for the success of HR Planning and development.

9. Succession Planning:

  • Human Resource Planning prepares people for future challenges. The ‘stars’ are picked up, trained, assessed and assisted continuously so that when the time comes such trained employees can quickly take the responsibilities and position of their boss or seniors as and when situation arrives.