Sound human resource planning should be based on the principles and actions outlined in the following article. In the practical world, an external human resources consultant or an employment agency plays an important role in planning basic human resources requirements.

1. Human resource planning must ultimately be integrated into the other areas of the organization’s strategy and planning.

2. Top management should lead in emphasizing its importance throughout the organization.

3. In larger organizations, it is necessary to establish a central human resource planning unit accountable to top management. The main objectives of this are to coordinate and reconcile the human resource demands of the different departments, standardize and supervise the departmental evaluations of the requirements and produce a comprehensive organizational plan. In practice, the Human Resources and Development department would normally play a leading role in the task. In smaller organizations, these responsibilities would likely be carried out by a senior manager or even the managing director.

4. It is necessary to define the period of time that the plan will cover. Because of the ongoing problem of forecasting that involves imponderable factors, a compromise is often made in which a general human resources plan is produced to cover a period of several years. If the system is operated as a continuous and rotating plan, the five-year general forecast period is maintained and every first year is used in turn for review and review purposes for the future.

5. The scope and details of the plan must be determined. For large organizations, separate human resource plans and forecasts may be required for various subsidiary units and functions. In smaller organizations, a comprehensive plan will likely be sufficient for all employees. Where certain skills or occupations may pose future problems in recruitment or training, special provisions will be required in human resource planning.

6. Human resource planning should be based on the most complete and accurate information possible. Such personal information is essential in any case for the effective management of the organization. The details of the format and content will vary naturally, but should normally include details of age, gender, qualifications and experience and of trends that are likely to affect future projections, such as wasted labor, job titles , wages, etc. Apart from the routine collection of data for personnel records, special analyzes may sometimes be necessary to provide particular information.