HRP is important because the HR plan affects all HR activities and acts as the strategic link between organizational and HRM objectives (Stone 2002). It can reduce the human resources cost by helping management to anticipate and correct the shortages and surpluses of employees. An addition, HRP will provide a better basis for planning employee employment in order to make optimum use of workers' attitudes and to improve their job satisfaction (Nankervis et al. 1999). HRP provide more opportunities of working for women and minority groups in the labour market. Moreover, the HPR provide a tool for evaluating the effect of alternative human resource actions and policies.
Nowadays business environment is multifaceted and complex, thus the changes in business environment will have a great impact on the HRP of the organization. By the definition of HRP, to be a success organization, the organization must achieve the business objectives through the effective utilization of human resources. Therefore, organizations need to forecast the internal and external supplying of human resources through the process of HRP. Usually, the present employees who can be promoted, transferred, demoted or developed will make up the internal supply. When the internal supply of employees cannot meet the demand, organization is needed to look up the external human resources from labour market. This show that labour market is an important factor in determining human resource strategy, therefore the changes of labour market will bring the effects to