In formulating an economic plan the planning has to be made regarding physical resources. In the same way, the manpower planning will be helpful in overcoming the deficits of market. The demand for labor depends upon assessment regarding present and future profitability of projects. But the vision of individuals regarding future is not so accurate, the resources at their disposal are merge, long gestating investment in education research with large many externalities are beyond their conception. In such state of affairs the manpower planning becomes necessary so that the deficiencies of market could be avoided.
The large number of benefits is accrued from the infra-structure built-up for manpower planning such as information services in respect of job opportunities and skill requirements for various occupations etc, provisions of agencies to projections of demand supplies and policies for deployment as a part of development programme etc. all this enables the individuals to seek work which suits their potential. They can decide about the best jobs or them. They can educate and train themselves to meet the needs of employment they seek. Accordingly we can arrange for its people to be employed in ways which are socially profitable and personally it will be rewarding.
Explain the financial importance of Manpower planing?