It helps in decision making of placing right person at the right place, reduces cost, increases healthy competition & create better corporate value. Happy and dedicated employees give better performances. It also helps to reduce frequent inflow & outflow of employees. Consistency and stability in employees creates healthy bond in employer and employees and gives cost effective betterment in performances. Activities to encourage employees to improve their weaknesses helps better use of talents and strength of the person, hence reduces cost and energy in trial and error in placement.