Importance Of HRP

1. Benefits/Importance of Human Resource Planning
1. To meet up requirements of the organisation: To do work in the organisation, every
organisation needs personnel of desired skill, knowledge and experience.
HRP helps in defining the number of personnelas well as kind of personnelrequired to
satisfy its needs. It ensures the reservoir of desired human resources as and when
required.
2. Counterbalanceinsecurityandchange: Theremustbeproper utilisation of human and
non-human resources in the organisation. Sometimes the organisation may have
adequate non-human resources e.g. machines, materials and money but inadequate
human resources as a result, manufacturing process/production cannot be started.
Human resource planning helps to offset uncertainties and changes as far as possible
and enables to ensure availability of human resources of the right kind, at right time
and at right place.
3. It helps in checking labour imbalance: Human resource planning helps to anticipate
shortages and/or surpluses of manpower in the organisation.
In case of shortageof human resources, physicalresources of the organisation cannot
be properly utilized.
In caseof surplus of human resources, this resourcemay remain under-utilized Ithelps
in counter balancing the problemof shortageand surplusemployees verycomfortably.
4. Right-sizing the human resource requirements of the organisation: In an existing
organisation, there is a constant need for right-sizing the organisation.
In the organisation, some posts may fall vacant as a result of retirement, accidents,
resignations, promotions or death of employees. Consequently, thereis constantneed
of replacing people.
Human resourceplanning estimates futurerequirements of the organisation and helps
to ensure that human resources of right kind, right number, in right time and right
place.
5. To meet expansion and diversificationneeds of the organisation: It helps to execute
future plans of the organisation regarding expansion, diversification and
modernization.
Through human resourceplanning it is ensured that employees in right number and of
right kind are available when required to meet these needs of the organisation. It

2. ensures that people of desired skills and knowledge are available to handle the
challenging job requirements.
6. Training and Development of Employees: There is constant need of training and
development of employees as a result of changing requirements of the organisation.
It provides scope for advancement and development of employees through training
and development etc. Thus, it helps in meeting the future needs of the organisation of
highly skilled employees.
7. Fulfill Individual Needs of the Employees: Ithelps to satisfy theindividualneeds of the
employees for promotions, transfer, salary encashment, better benefits etc.
8. Helps Formulationof Budgets: Ithelps in anticipating the cost of human resources e.g.
salary and other benefits etc. It facilitates the formulation of human resource budget
for various departments/divisions of the organisation.
So, it may also help in, the formulation of suitable budgets in an organisation.