HR managers usually employ a systematic process when undertaking Human Resource Planning. Arrange the process in correct sequence : A. The Formulation of staffing strategies to meet organisational needs. B. Labour supply analysis (including both internal and external sources). C. Labour demand forecasting. D. Environmental scanning. E. Balancing supply and demand consideration Choose the correct answer from the options given below :
D, C, B, E, A
The correct sequence is D, C, B, E, A — option 2.
| Order | Step | What it establishes |
|---|---|---|
| 1 | D — Environmental scanning | The context — the economy, the labour market, technology, law, competitors’ hiring, and the organisation’s own strategy and plans |
| 2 | C — Labour demand forecasting | How many people, of what kinds, will be needed to execute those plans |
| 3 | B — Labour supply analysis | How many will be available — internally from the existing workforce after retirements, promotions and attrition, and externally from the labour market |
| 4 | E — Balancing supply and demand | The comparison, which reveals a shortage or a surplus |
| 5 | A — Formulation of staffing strategies | The action that follows from the gap |
The logic. The whole process is a comparison of two quantities and a response to the difference between them. Demand and supply must each be estimated before they can be balanced; the balance must be struck before any action can be designed. Notice that A must be last — a staffing strategy is the output of planning, not its starting point — which by itself eliminates options 1 and 4.
What the gap implies.
| Position | Typical response |
|---|---|
| Demand > supply (shortage) | Recruitment, promotion from within, training, overtime, subcontracting, temporary staff, retention measures |
| Supply > demand (surplus) | Redeployment, retraining, reduced hours, hiring freeze, voluntary retirement, and as a last resort retrenchment |
Techniques used at the forecasting stage : for demand — managerial judgement, the Delphi technique, ratio-trend analysis, work-study, and regression against a driver such as output; for supply — skills inventories, replacement charts, succession plans and Markov analysis of transitions between grades.
Why the process matters. Human resource planning is what connects the business plan to the people who must execute it. Without it a firm discovers its shortages only when a post falls vacant, and its surpluses only when the payroll becomes unaffordable.
Hence, the answer is D, C, B, E, A.
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