· It helps in the integrated growth and development of workforce.
· It helps employees to know their talents and weakness and thus enable them to improve their performance.
· It facilitates the creation of an environment where opportunities are available for fuller utilisation of the talents of the employees.
· It generates information about employees for personnel functions like training, placement, selection, promotion etc.
· It leads employee’s efficiency improvement.
· It leads to organisational effectiveness which will minimise costs and increase profitability.
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