There are many processes any organization has to consider when it tries to identify the goals and achieve them in a required period. Human resources planning is one of such processes. It is a kind of link that exists between HR management and strategic planning. People can use this process as a good chance to improve their working results, and a means to understand their strong and weak points. Besides, it is possible to use the results of the return on investment described in the human capital theory and understand if investments are justified or not.
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Human resources planning helps to provide people with clear facts and explanations that they succeed in meeting requirements, organizing work, evaluating possibilities and resources, and identifying plans for future. Organizations try to estimate the possible demand for labor and services, then evaluate the amount of work, and, finally, meet all the requirements set.
At the beginning of the 1960s, Smith formulated one of the main basics of the future human capital theory. He admitted that people can determine the level and quality of economic performance regarding productivity, research, innovations, and competitiveness of an organization. With time, the concept of return on investment gained importance. People started paying more attention to the benefits of their investments and comparing if investment costs are favorable.
In general, the ideas to use economic concepts to determine the quality of organizational performance are successful. Human resources planning and the basics of human capital theory provide a clear look at the financial aspects of work and activities people prefer.