Fundamentals of Management, 8th ed

•  External labor markets

• Current employees

• Future organizational plans

•  General economic trends

Compare future demand and

internal supply

Plan for dealing with predicted 

shortfalls or overstaffing

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F I G U R E 8 . 1

Human Resource Planning

Attracting human resources cannot be left to chance if an organization expects to

function at peak efficiency. Human resource planning involves assessing trends,

forecasting supply and demand of labor, and then developing appropriate strategies

for addressing any differences.

Chapter 8: Managing Human Resources in Organizations

2 3 1

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Forecasting the supply of labor is really two tasks: forecasting the internal supply (the

number and type of employees who will be in the firm at some future date) and forecast-

ing the external supply (the number and type of people who will be available for hiring

in the labor market at large).

10

The simplest approach merely adjusts present staffing

levels for anticipated turnover and promotions. Again, though, large organizations use

extremely sophisticated models to make these forecasts. At higher levels of the organiza-

tion, managers plan for specific people and positions. The technique most commonly

used is the