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Chapter 15

1.3 Human resource planning

Stage 1: Strategic analysis
 The organisation's strategic objectives will have implications
regarding the number of employees and the skills required over the
planning period (e.g. development of a new product or expansion
into a new market).
 The broader strategic environment should also be considered (e.g.

trends in population growth, pension, education and employment

rights of women.

Stage 2: Internal analysis
 An 'audit' of existing staff should be carried out to establish the
current numbers and skills.
 Also consider:
 Turnover of staff and absenteeism
 Overtime worked and periods of inactivity
 Staff potential.

Stage 3: Identify the gap between supply and demand
 Shortages or excesses in labour numbers and skills deficiencies
should be identified.

Stage 4: Put plans into place to close the gap
Adjustments for shortfall Adjustments for a surplus

 Internal: Transfers, promotions, Consider use of natural
training, job enlargement, overtime, wastage, recruitment

reduce labour turnover. freeze, retirement, part time
 External: Fill remaining needs working and redundancy.
externally. Consider suitability and
availability of external resource.

Stage 5: Review
Measure the effective use of the human resource and their contribution
towards the achievement of the organisation's objectives.

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