The need for planning arises mostly due to the fact that modern organisations have to survive, operate and grow in highly competitive market economics where change is the order of the day. The change may be either revolutionary (sudden) or evolutionary (slow). The different areas of change include: change in technology, change in population, change in economic structures and systems, change in policies of government, change in employee attitudes behaviour, etc. These changes create problems for the management through threats and challenges. Managers have to bear the problems caused due to the changes and act upon them tactfully in order to avoid or reduce the effects of these problems on the survival, operation and growth of the organisation.

Efficient managers can foresee the problems likely to occur and try to prevent them. As pointed by Terry, successful managers deal with foreseen problems and unsuccessful managers struggle with unforeseen problems. The difference lies in planning. Managers have to foresee to make the future favourable to the organisation in order to achieve the goals effectively. They introduce action, overcome current problems, prevent future uncertainties, adjust the goals with the unforeseen environmental conditions and exert all their resources to achieve their goals.

The important objectives of manpower planning in an organization are

  •          To recruit and retain the human resources of required quantity and quality.
  •          To foresee the employee turnover and make the arrangements for minimizing turnover and filling up of consequent vacancies
  •          To meet the needs of the program of expansion, diversification etc.,
  •          To foresee the impact of technology on work, existing employees and future human resources requirements
  •          To improve the standards skill .knowledge,, ability, discipline etc.,
  •          To assess the surplus or shortage of human resources and take measures accordingly.,
  •          To maintain congenial industrial relations by maintaining optimum level and structure of human resources;
  •          To minimize imbalances caused due to non-availability of human resources of right kind ,right number in right time and right place;
  •          To make the best use of its human resources; and
  •          To estimate the cost of human resources.

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