In the context of achieving the objectives of your organisation,

(a) Explain the importance of HRP (Human Resource Planning). (7 marks)

HRP meets the supply of human resources according to an organisation’s demand.

HRP is thus crucial in an organisation for the following reasons:-

1. Part of Strategic Planning

HRP can facilitate strategic planning on two issues: strategy formulation and strategy
implementation.

HRP provides information for strategy formulation such as, whether an organisation has
the kind of skills and number of people available to pursue organisational strategy.
During strategy implementation, HRP assists in making resource allocation decisions to
implement the organisational strategy. This includes decisions related to organiastional
structure, processes and human capital.

2. Forecasting Future Personnel Needs

To make sure there is no shortage or surplus of human resources in future, HRP assists
in forecasting future manpower requirements in an organisation.

HRP analyses the strategic goals and operational processes of the organisation and
assesses the number and type of employees who will be required to achieve them.

3. A Base for Personnel Functions

HRP is the process of anticipating and providing for the movement of people into,
within, and out of an organisation. Hence HRP provides essential information for
designing and implementing other personnel activities such as recruitment, selection,
induction, transfer, posting, promotion, retention, lay-off, appraisal, training, etc.
4. Resistance to Change and Move

Many employees resist to change and move. An organisation cannot shift an employee
from one department to another without any specific planning. HRP helps the
organisation to carefully plan and relocate its employees by matching the previous work
experience and skills of the employee with the required job profile. This results in the
smooth movement of employees from one department to another.

5. Creating Highly Talented Manpower

The demand for quality services calls for knowledgeable employees with the right skills,
competencies and experience. Thus, HRP focuses on attracting and redeploying
competent employees which an organisation needs. Talented employees however,
most often switch their jobs, thus creating workforce shortages.

In order to meet the forecasted quantity and quality of employees, HRP assists the
organisation in creating and delivering personalized training to employees. By bolstering
professional development and growth, HRP prepares top-notch performers to potential
future job openings. Training and promotion from within result in employee retention and
engagement, leading to better customer services.

6. Growing Investment in Human Resources

The survival and prosperity of an organisation lies to a large extent on the investment it
makes in its human assets. Human resources are live assets and have the potential to
increase the value of an organisation.

HRP brings clarity to what needs an organisation has to accomplish and what
knowledge, experience and skills are required. HRP helps in investing in continual
learning and development of personnel to make optimal use of them.
7. International Expansion Strategies

Global businesses must have a global HR function. In order for scale and expansion to
happen, HRP assists an organisation in connecting its growth expansion strategies with
its people strategy, taking into consideration challenges such as cultural differences,
language barriers or labour laws regulations.

To ensure a smoother transition to new markets, HRP assists in careful selection,

training, motivating, compensating and retaining of employees.

Whether the organisation is sending in-house capabilities to work overseas or is hiring

local experts from the country into which it is expanding, HRP ensures that there is no
labour surplus or understaffing.