Advantages of HRP, Need/Importance/Role/Benefits of HRP

3. Comparison

Based on the information collected in the 1st and 2nd step, the HR department makes a comparison and finds out the difference. Two possibilities arise from this comparison:

a) No difference

It is possible that personnel requirement = personnel supplied. In this case there is no difference. Hence no change is required.

b) Yes, there is a difference

There may be difference between supply and requirement. The difference may be:

I. Personnel surplus

II. Personnel shortage

4. Personnel surplus

When the supply of personnel is more than the requirement, we have personnel surplus. We require 100 people, but have 125 people. That is we have a surplus of 25 people. Since extra employees increase expenditure of company the company must try to remove excess staff by methods of:

  • Layoff
  • Termination

5. Personnel shortage

When supply is less than the requirement, we have personnel shortage. We require 100 people; we have only 75 i.e. we are short of 25 people. In such case the HR department can adopt methods like Overtime, Recruitment, Sub-contracting to obtain new employees.

Advantages of HRP

Human resource planning can be defined as the process of identifying the number of people required by an organization in terms of quantity and quality. All human resource management activities start with human resource planning. So we can say that human resource planning is the principle/primary activity of human resource management. The process of HRP plays a very important role in the organization. The importance of HRP can be explained as follows:

1. Anticipating future requirement

Thru this process of HRP, the company is able to find out how   many people will be required in future. Based on this requirement the company could take further actions. This method also helps the company to identify the number of jobs which will become vacant in the near future.

2. Recruitment and selection process

The recruitment and selection process is a very costly affair for a company. Many companies spend lakhs of rupees on this    process. Therefore recruitment and selection must be carried out only if it is extremely necessary. HRP process helps to identify whether recruitment and selection are necessary or not.