Defination of HRP

The process that links the human resource needs of an organization to its strategic plan to

ensure that staffing is sufficient, qualified, and competent enough
to achieve the organization's objectives. HR planning is becoming a
vital organizational element for maintaining a competitive advantage and reducing employee
turnover.
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Human resources planning is a process that identifies current and future human resources needs for an
organization to achieve it goals. Human resources planning should serve as a link between human resources
management and the overall strategic plan of an organization. Aging worker populations in most western countries
and growing demands for qualified workers in developing economies have underscored the importance of effective
Human Resources Planning.
Importance of Human Resource Planning

Human Resource Planning is important for any organization in the following ways;

· Provides quality workforce,

· Reduces labor costs,

· Facilitates rise in skills,

· Effective motivation,

· Safety of health,

Provides quality workforce

One of the Importance of Human Resource Planning is that effective Human Resource Planning fulfills the
organization needs for a quality workforce. Quality workforce aids in giving a company a competitive
advantage over its rivals.

Reduces labor costs

Another Importance of Human Resource Planning is that a proper Human Resource plan reduces labor costs
substantially by maintaining a balance between demand for and supply of HR i.e. works as a cost saving
device for the company.

Facilitates rise in skills

Another Importance of Human Resource Planning is that it facilitates the rise in skills, abilities and potential of
the workforce through training and development. Training employees helps them improve in their working
capacity thus tend to develop to a quality workforce.

Effective motivation

Effective motivation is another Importance of Human Resource Planning. An effective Human Resource Plan
provides multiple gains to the employee by way of promotions, increase in salary and other fringe benefits.
This definitely boosts employee morale.

Safety of health

Another Importance of Human Resource Planning is safety of health. It provides for welfare, health and safety
of its employees thus leads to an increase in productivity of the employees in the long run
NEED FOR HUMAN RESOURCE PLANNING

Every organization has to plan for Human resource due to:

1. The shortage of certain categories of employees and/or variety of skills despite the problem of
unemployment.
2. The rapid changes in technology , marketing, management etc., and the consequent need for new
skills and new categories of employees.
3. The changes in organization design and structure affecting manpower demand.
4. The demographic changes like the changing profile of the workforce in terms of age, sex ,education
etc.
5. The Government policies in respect to reservation ,child labor, working conditions etc.
6. The labor laws affecting the demand for and supply of labor.
7. Pressure from trade unions, politicians ,sons of the soil etc.
8. Introduction of lead time in manning the job with most suitable candidate.
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Benefits of Human Resource Planning
Human Resources Planning (HRP) anticipates not only the required kind and number of employees but
also determine the action plan for all the functions of personnel management .The major benefits of
Human resource planning are:

1. It checks the corporate plan of the organization

2. It offsets uncertainly and change .But the HRP offsets uncertainties and changes bto the maximum
extent possible and enables the organization yo have right men at right time and in right place.
3. It provides scope for advancement and development of employees through training, development etc.
4. It helps to anticipate the cost of salary enhancement, better benefits etc.
5. It helps to anticipate the cost of salary , benefits and all the cost of human resources facilitating the
formulation of budgets in an organization.
6. To foresee the need for redundancy and plan to check it or to provide alternative employment in
consultation with trade unions, other organizations and government through remodeling organizational,
industrial and economic plans.
7. To foresee the changes in values, aptitude and attitude of human resources and to change the
techniques of interpersonal ,management etc.
8. To plan for physical facilities, working conditions and the volume of fringe benefits like canteen,
schools, hospitals, conveyance, child care centres. quarters, company stores etc.
9. It gives an idea of type of tests to be used and interview techniques in selection based on the level of
skills ,qualifications, intelligence, values etc., of future human resources.
10. It causes the development of various sources of human resources to meet the organizational needs.
11. It helps to take steps to improve human resource contributions in the form of increased productivity
,sales turnover etc.
12. It facilities the control of all the functions, operations, contribution and cost of human resources.

Significance of HRP
1. Future Manpower Needs
Human resource planning ensures that people are available to provide the continued smooth operation of an
organization. It means, human resource planning is regarded as a tool to assure the future availability of
manpower to carry on the organizational activities. It determines the future needs of manpower in terms of
number and kind.

2. Coping With Change

Human resource planning is important to cope with the change associated with the external environmental
factors. It helps assess the current human resources through HR inventory and adapts it to changing
technological, political, socio-cultural, and economic forces.

3. Recruitment Of Talented Personnel

Another purpose of HR planning is to recruit and select the most capable personnel to fill job vacancies.It
determines human resource needs, assesses the available HR inventory level and finally recruit the
personnel needed to perform the job.

4. Development Of Human Resources

Human resource planning identifies the skill requirements for various levels of jobs. Then it organizes various
training and development campaigns to impart the required skill and ability in employees to perform the task
efficiently and effectively.

5. Proper Utilization Of Human Resources

Human resource planning measures that the organization acquires and utilizes the manpower effectively to
achieve objectives. Human resource planning helps in assessing and recruiting skilled human resource. It
focuses on the optimum utilization of human resource to minimize the overall cost of production.

6. Uncertainty Reduction
This is associated with reducing the impact of uncertainty which are brought by unsudden changes in
processes and procedures of human resource management in the organization.