What is the first stage of human resource planning?

• A. Forecasting
• B. Analysis and Investigation
• C. Strategy Development
• D. Implementation

Answer: (B)

The first stage of human resource planning is Analysis and Investigation, where you assess the current workforce and the organization’s strategic direction. This phase involves gathering data on how many people you have, their skills, performance, turnover, retirement risk, training levels, and compensation, and then comparing that to what the business plans to achieve. By understanding the present state and the business goals, you identify gaps in capacity and capabilities that must be addressed. This solid baseline is essential before moving on to predicting future demand and supply, crafting strategies, and implementing plans. Without this initial analysis, forecasting would be unfounded and the ensuing actions could misalign with actual needs. For example, if a new product line is planned, you first determine what skills and numbers you already have and what gaps exist before projecting hiring needs.