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The following are the functions performed by career planning:

(i) It helps in determining the career paths for different types of employees.

(ii)Create positions of self-development for employees in an organisation.

(iii) Provide such career planning information system which works as a database of career path, promotions and replacement.

(iv) To boost up morale of the employees and remove frustration from their minds.

(v) To develop such an internal environment in which employees can develop their talents and give them a fair chance to go up and contribute the organisation.

(vi) To establish such career paths on which employee can promote himself.

(vii) To enable employees to discover, develop and use their full potential for the organisation.