1. To ensure optimum utilization of human resources currently available in the organization.

2. To assess or forecast the future skill requirement of the organization.

3. To provide control measures to ensure that necessary resources are available as and when required.

4. A series of specified reasons are there that attaches importance to manpower planning and forecasting exercises.

They are elaborated below:

• To link manpower planning with the organizational planning 
• To determine recruitment levels.
• To anticipate redundancies. 
• To determine optimum training levels. 
• To provide a basis for management development programs. 
• To cost the manpower. 
• To assist productivity bargaining. 
• To assess future accommodation requirement. 
• To study the cost of overheads and value of service functions. 
• To decide whether certain activity needs to be subcontracted, etc.

HRP exists as a part of planning process of business. This is the activity that aims to coordinate the requirements for the availability of the different types of employers. The major activities are the forecasting, (future requirements), inventorying (present strength), anticipating (comparison of present and future requirements) and planning (necessary program to meet the requirements).

The HR forecasts are responsible for estimating the number of people and the jobs needed by an organization to achieve its objectives and realize its plans in the most efficient and effective manner.

HR needs are computed by subtracting HR supplies or number of the employees available from expected HR demands or number of people required to produce a desired level of outcome. The objective of HR is to provide right personnel for the right work and optimum utilization of the existing human resources.

The objectives of human resource planning may be summarized as below:

•  Forecasting Human Resources Requirements: HRP is essential to determine the future needs of HR in an organization. In the absence of this plan it is very difficult to provide the right kind of people at the right time. 
• Effective Management of Change: Proper planning is required to cope with changes in the different aspects which affect the organization. These changes need continuation of allocation/ reallocation and effective utilization of HR in organization.
• Realizing the Organizational Goals: In order to meet the expansion and other organizational activities the organizational HR planning is essential. 
• Promoting Employees: HRP gives the feedback in the form of employee data which can be used in decision-making in promotional opportunities to be made available for the organization. 
• Effective Utilization of HR: The data base will provide the useful information in identifying surplus and deficiency in human resources. The objective of HRP is to maintain and improve the organizational capacity to reach its goals by developing appropriate strategies that will result in the maximum contribution of HR.