According to Investopedia, human resource planning is a continuous process striving to achieve the optimum use of human resources or labor. Organizations look to find the best combination of jobs and employees without experiencing manpower shortages or surpluses.
Organizations consider labor to be their most valuable asset. Therefore, Investopedia suggests a human resource plan be flexible enough to adapt in the near future but also be able to meet long-term objectives. Human resource planning is best exemplified by the amount of aging workers in western countries compared to the growing demand for younger and qualified labor in developing countries.
Different ways of human resource planning including competency-based management. This method requires the organization to evaluate the current human resource capacity and assess it against the capacities needed to achieve longer-term goals. Similarly, there are two stages of human resource planning mid- to large-level organizations should follow. Stage one calls for the establishment of a competency architecture and dictionary together with identifying roles and career streams for future needs. Stage two applies stage one objectives, and management is trained to facilitate human resource planning, while labor is constantly monitored for performance. The three key elements of the planning process are forecasting labor demand, analyzing present labor supply and balancing projected demand and supply.