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 personnel as well as kind of personnel required to
satisfy its needs. It ensures the reservoir of desired human resources as and when
required.

2. Counterbalance insecurity and change: There must be proper utilization 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 organization.

In case of shortage of human resources, physical resources of the organization cannot

be properly utilized.

In case of surplus of human resources, this resource may remain under-utilized It helps
in counter balancing the problem of shortage and surplus employees very comfortably.

4. Right-sizing the human resource requirements of the organization: In an existing

organization, there is a constant need for right-sizing the organization.

In the organization, some posts may fall vacant as a result of retirement, accidents,
resignations, promotions or death of employees. Consequently, there is constant need
of replacing people.

Human resource planning estimates future requirements of the organization and helps
to ensure that human resources of right kind, right number, in right time and right
place.

5. To meet expansion and diversification needs of the organization: It helps to execute

future plans of the organization regarding expansion, diversification and
modernization.

Through human resource planning it is ensured that employees in right number and of
right kind are available when required to meet these needs of the organization. It
 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 organization.

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: It helps to satisfy the individual needs of the
employees for promotions, transfer, salary encashment, better benefits etc.

8. Helps Formulation of Budgets: It helps 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.