The following are the importance of HRP
Importance of Human Resource Planning
1. Helps in implementation of Business strategy:
After formulating the business strategy, it needs to be implemented to get expected result. But, implementation is only possible, when there is availability of skill and competent workforce to perform the assigned task. Thus, HRP ensures the availability of right manpower with competent skill, when and where
2. Minimizes future risk and uncertainty:
Due to change in environmental factors, like technology y, government policies, etc organization need to change its policies and practices. This directly impacts the HR requirement of an organization.
Since, HRP always monitors the changes in environment and forecasts demand and supply of employees necessary for organizational setting. It helps to reduce the risk of short coming and unavailability of HR as well as risk of excess number of unproductive employees in an organization.
3. Helps in identifying organizational strength:
HRP collects all the necessary information related to employee’s education, training, skills, current positions etc. It helps to know the exact human inventory available in an organization.
It further helps to determine the company’s strength which can be utilized fully to capitalize the opportunities in an
4. Helps to determine training and development needs:
HRP not only forecast the demand and supply, but also helps to determine the training and development need for employees.
Employees need to be trained and developed to enhance their skill and abilities as per the organization’s Thus, HRP creates the mechanism to determine and provide training and development facilities for employees.
5. Helps in cost minimization:
HRP ensures the right numbers of people in right place at right time. It avoids the cost of overstaffing and understaffing, which helps to minimize the cost.