Significance

• HR planning is essential. Understaffed organizations cannot reap the benefits of optimal productivity, while overstaffed organizations spend capital on salaries for unnecessary positions.
  
  

Features

• Through HR planning, the organization takes stock of the employees placed in all its strategic departments. Management then transfers employees from overstaffed departments to understaffed ones. The organization also evaluates and analyzes whether employees work in the departments appropriate for their skills and knowledge.
  
  

Time Frame

• A company conducts HR planning once annually, as well as when it plans an expansion. During an expansion, top management projects how many employees the company needs and adjusts the budget for their salaries.