1. To ensure optimum use of human resources currently employed.

2. To avoid balances in distribution & allocation of human resources.

3. To assess or forecast future skill requirements of organisations over all objectives.

4. To provide control measure to ensure availability of necessary resources when required.

5. To control cost aspect of human resources.

6. To formulate transfer & promotion policies.

Benefits:-

1. It results in reducing labour cost as it helps the management to anticipate shortages or surpluses of manpower and correct these imbalances before they become unmanageable & expensive.

2. It helps in making optimum use of workers skill with in the organisation.

3. It leads to improvement in overall business planning process.

4. It enables identification of gaps of existing manpower so that connective training could be imported.

5. It leads to greater awareness of importance of sound man power management through out the organisation.

6. It serves as a tool to evaluate effect of alternative manpower actions & policies.