Importance of Human Resource Planning
Human Resource Planning is a set of activities undertaken to forecast an organization’s labor demand or requirements and internal labor supply, to compare these projections to determine employment gaps and to develop action plans for addressing these gaps. It aims at fulfilling the objectives of manpower requirement. It helps to mobilize the recruited resources for the productive activities.
The human resource planning is and important process aiming to link business strategy and its operation. It is a task that identifies present and future human resources need for a company to achieve their goals.
The importance of human resource planning are as follows:
- 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.
- 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.
- 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 recruits the personnel needed to perform the job.
- Coping With Change
Human resource planning is important to cope with the change associated with the external environmental factors. It helps to assess the current human resources through HR inventory and adapts it to changing technological, political, socio-cultural, and economic forces.
- 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.
- Uncertainty Reduction
This is associated with reducing the impact of uncertainty which is brought about by unsudden changes in processes and procedures of human resource management in the organization.