Involves determining the number and type of employees required, where and by when, to enable an organisation to carry out its planned activities and fulfil its objectives. It involves a number of key stages: supply analysis, which involves analysing the current supply of labour, forecasting internal supply, and assessing external supply; demand analysis, which involves estimating the number and type of employees likely to be needed in the future, taking into account the firm’s objectives, plans and projected demand; undertaking gap analysis ie a process comparing the supply of labour with the demand for labour to identify any surpluses and shortfalls; solution analysis, which involves the identification, consideration and selection of the most appropriate strategies to deal with any surpluses and / or shortages in order to match workforce size, skills and location to business needs; the implementation of solutions; monitoring and review.