The function of HR planning involves making quantitative and qualitative plans leading to:
- Recruitment plans in order to avoid unexpected shortages of manpower.
- The identification of training needs in order to avoid skills shortages.
- Management development in order to avoid managerial shortages and for succession planning.
- Industrial relations plans: In order to avoid industrial unrest, a change of the quantity and quality of employees require careful planning.
Manpower planning in practice is however restricted in most cases to demand and supply of labour and the problems which may arise from the process of reconciling the two factors.