Benefits/Importance of Human Resource Planning

Human resource planning or manpower planning is necessary for ail organisations because of following
reasons:
To meet up requirements of the organisation: To do work in the organisation, every organisation
needs personnel of desired skill, knowledge and experience. This human resources requirement of
organisation can be effectively fulfilled through proper human resource planning. It 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.
Counterbalance insecurity and change: There must be proper utilisation 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.
It helps in checking labour imbalance: Human resource planning helps to anticipate shortages and/or
surpluses of manpower in the organisation. The shortage of manpower as well as surplus of manpower is
not good for the organisation. It proves very expensive for the organisation. In case of shortage of human
resources, physical resources of the organisation 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. Human resource planning helps in correcting this imbalance
before it become unmanageable and expensive.
Right-sizing the human resource requirements of the organisation: In an existing organisation, there
is a constant need for right-sizing the organisation. In the organisation, 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
organisation and helps to ensure that human resources of right kind, right number, in right time and right
place.
To meet expansion and diversification needs of the organisation: It helps to execute future plans of
the organisation 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 organisation. It ensures that people of desired skills and knowledge are available
to handle the challenging job requirements.
Training and Development of Employees: There is constant need of training and development of
employees as a result of changing requirements of the organisation. 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.
Fulfill Individual Needs of the Employees: It helps to satisfy the individual needs of the employees for
promotions, transfer, salary encashment, better benefits etc.
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.
To Check Joblessness: In the exercise of right-sizing of employees by the organisation, some of the
employees may become surplus. It means their services are no more required in the organisation. It tries
to foresee the need for redundancy. It plans to check job loss or to provide for alternative employment in
consultation with various concerned parties and authorities.