Directorate of distance education master of business administration

Significance of HRP
 
HRP is of primary nature and it precedes all other HRM functions.  
Without HRP no other function can be undertaken in any meaningful 
way.  HRP contributes in the following ways in managing resources in an 
organization. 

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1. Defining Future Personnel Need 
 
Planning defines future personnel need and this becomes basis of 
recruiting and developing personnel.  In its absence there is likelihood of 
mismatch between personnel needed and personnel available. 
2. Coping with Changes 
        In the Indian and international business arena fast changes are 
taking place.  Liberalization of economy has brought vast changes in 
India.  At the international level there is growing global competition.  
Every organization is trying to compete on the basis of technology and 
managerial talents.  In this war only those companies will survive which 
adopt a formal, meticulous HRP.  Change in technology has attached 
more premium to knowledge and skills resulting into surplus manpower 
in some areas and shortage in other areas.  HRP helps in creating a 
balance in such a situation because manpower needs and availability 
could be identified much in advance.