a) An analysis of existing resources : An analysis of existing human resources by occupation, level of skill, status and length of service. Movements in ratios between direct and indirect staff would be studied to provide guidance on trends and to indicate where future changes might result in supply problems.
b) An analysis of wastage: It is the analysis of rate at which different categories of people / employees are leaving the organization. It is required to make forecast future replacement requirements. The incidence of wastage in different areas and occupations and the reasons for leaving should also be examined as a guide to any action required to reduce losses.
c) An assessment of changes in condition of work and absenteeism: The hours available in the future will obviously be affected by changes in standard hours of work, overtime policies, the length and timing of holidays, shift systems, recruitment policy, and the policy of employing part-timers. The scope of work sharing should also be considered that is one job being split between two or possibly even more people, on the basis of one person doing the work for part of the day and another person or persons taking over the job for the rest of the day.
d) Forecasting output of training schemes: these would include apprentices and other full-time training courses. The output forecast would take account of natural wastage during training period, bearing in mind that wastage often increases quite considerably at the end of an apprenticeship, unless steps are taken to encourage ex-apprentices to stay.
e) Markov models: the model used in human resource planning to depict the probabilities of organization members moving from one position to another over time is the Markov model. Probabilities of movement are based on historical data, and they are established for job clusters or classes ( i.e. all supervisory jobs or all first-level management jobs). For each class, probabilities of promotion, attrition , and replacement are developed . Using these probabilities, the supply of labor can be forecasted for any given time in the future. The Markov model tends to be more organizationally and quantitatively oriented, although it can isolate trends in specific occupational class or in functional areas. The use of this model is rare.