Human resource planning is a process which involves objective and systematic assessment of present and future staffing needs of the organization, identifying the available personnel to satisfy the current needs, forecasting the future demand and supply of workers, formulating staffing strategies with a view to both short range as well as long range strategic plans and continuously monitoring, evaluating and updating these needs and sources of supply.
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In today’s complex organizational structure, operating in complex and dynamic economic, political, socio-cultural and technical environment, the most suitable employees are becoming more and more crucial and indispensible assets for effective performance.
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As a result, the price of poor staffing will be very high, requiring improved manpower planning as an economic necessity. This means that all managers will make sure that all jobs in their responsibility areas are staffed with people who can best perform them.
Human resource planning is important in providing the following direct benefits to the organization
i. It improves the utilization of human resources by helping the management forecast the recruitment needs in terms of both numbers as well as types of skills required and develop ways to avoid or correct problems before they become serious and disrupt operations.
ii. It helps focus the recruitment efforts on the most likely sources of supply. This will cut down the total cost of hiring and training personnel and reduce costs associated with the hiring practices.
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iii. It makes provisions for replacement or back-up staff from either inside or outside the organization, whenever the need arises, either on a temporary or permanent basis. These available sources of supply are important to identify, especially in the case of any emergencies that might occur.
iv. It helps achieve an integration of personnel plans with other operating as well as strategic plans, by making available the personnel management information database to other organizational operations.