Why Every Organisation Needs Human Resource Planning? (5 Reasons)

The important reasons for which every organisation needs human resource planning are listed below:

1. A large number of persons are to be replaced in the organisation because of retirement, old age, death, etc. There will be a need to prepare persons for taking up new positions on such contingencies.

2. There is always a labour turnover in every organisation. The degree of labour turnover may vary from concern to concern but it cannot be eliminated altogether.

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There will be a need to recruit new persons to take up the positions of those who have left the organisation. If the concern is able to forecast turnover rate precisely, then advance efforts are made to recruit and train persons so that work does not suffer for want of workers.

3. Whenever there is a plan to expand or diversify the concern, then more persons will be required to take up new positions. Human resource planning is essential under these situations.

4. The business is working under changing technological environment. There may be a need to give fresh training to personnel.

In addition, there may also be a need to infuse fresh blood into the organisation. Human resource planning will help in meeting the new demands of the organisation.

5. Human resource planning is also required to determine whether there is any shortage or surplus of persons in the organisation. If there are fewer people than required, it will adversely affect the work.

On the other hand, if more persons are employed than the requirement, then it will increase labour cost, etc. Human resource planning ensures the employment of proper work­force.