1. Existing Manpower Inventory – Utilization of the existing manpower is the first basis of manpower planning and is the starting point of all planning processes. To analyse the existing manpower, one must study the position of total manpower by dividing it into groups on the basis of function, occupation, level of skills or qualification.
2. Wastage – For good planning, appropriate adjustment in the existing stock of manpower should be made for the possible wastage of manpower caused by any foreseeable changes in the organization.
3. Future Manpower Requirements – After evaluating the existing stock of manpower and analyzing the various factors of wastage caused by any foreseeable change in the organization, one may very easily assess the future requirements of manpower in an industry.