a key goal of HRP is to get the right number of people with the right
skills, experience, and competencies in the right jobs at the right time and at the right cost.
This ensures that the business production requirements are met in an efficient and effective
manner. Having too many employees is problematic due to the risk of high labour expenses,
downsizing, or layoffs. Having too few employees is also problematic due to high overtime
costs, the risk of unmet production requirements, and the challenge of finding the instant
human resources needed to get the job done. According to the Government of Canada, human
resource planning links people management to the organization’s mission, vision, goals and
objectives, as well as its strategic plan and budgetary resources. A critical component of an effective HR plan is the method of forecasting. Forecasting refers to the interaction between
the decision maker’s perceptual and cognitive processes and the objective characteristics of their environment.