Human resource planning can be described as a strategy for the acquisition, utilisation, improvement and retention of an organisation’s human resources. The four main stages are auditing, forecasting, planning and controlling resources. The auditing stage involves the analysis of the strategic environment (trends in population growth, education, pensions etc) in the light of the organisation’s strategic objectives. The strategy chosen will have implications for the numbers of employees and the mix of skills required. The forecasting stage analyses the demand for, and supply of, labour in terms of number, type and quality of people that the organisation should employ to meet planned requirements and cover expected turnover. The
planning stage involves policies to recruit, train and develop the labour force indicated in the forecast. The controlling stage involves measuring the effective use of the human resources and their contribution towards the achievement of the organisation’s objectives.
In addition to auditing, forecasting, planning and controlling resources – the following aspects of human resource planning can also be important: recruiting, training and development, promotion planning and also retention and succession planning.