What Is Human Resource Inventory?

What Is Human Resource Inventory? The term ‘inventory‘ is often used in relation to the counting of tangible objects like raw materials, goods in progress, or finished products, etc. In manpower inventory, the items are intangible. Human Resource Inventory, It is also known as the skills inventory comprehensively lists down the basic information on all the employees, like their education, experience, skills, age, sex, salary-related data, job preference, and special achievements.

HR Inventory Process

The process of preparing a human resource inventory involves the determination of personnel whose inventory is to be made, cataloging the factual information of each employee, a systematic and detailed appraisal of these employees, and a thorough study of the individuals who have the potential for growth. It involves cataloging the characteristics of personnel in the organization, besides counting their number. Both present and future characteristics of personnel are recorded in the manpower inventory. It involves the following steps:

• The first step in manpower inventory is to decide who should form a part of it. Generally, inventory is prepared for persons working on important posts—the executives and some persons from the operative staff are covered in it.
• After determining the persons to be included in the manpower inventory, the second step is to collect information about them.
• The factual information such as age, experience, education, health, appraisal reports, attitude, etc. will be noted from the records. The brief interviews with persons will help in understanding his caliber, attitude, aspirations, motives, etc.
• A summary statement of information is prepared about each person and is kept ready for consultation.
• The information will help management to find out suitable persons in the organization for taking up senior positions in the future. This will also enable management to determine whether persons from outside will be required in the future or not.
• The next step in manpower inventory is to appraise the talent catalog. The present and future capabilities of persons are assessed. Some scale is prepared for appraising the persons.
• Besides appraisal tests, remarks about persons are also given. The remarks may relate to their talent, decision-making ability, training required, specific limitations, etc.
• The manpower inventory will enable the manager to know the present and future potentialities of all individuals and their suitability for various jobs.

Manpower inventory analysis provides information about the present and potential manpower of the organization. It is necessary to have data about manpower available with the organization so that, (1) It will enable timely and quick replacement. (2) It will ensure proper placement.

Management Inventory Card

1. Age,
2. Year of Employment,
3. Present Position,
4. Duration of current Posting,
5. Performance Ratings,
6. Strengths and Weaknesses,
7. Positions to which the employee can be moved,
8. By when would she be able to take the new role,
9. What new training and development required for the same. Learn >> Employee Training and Development – 7 Best Practices.

Benefits of Human Resource Inventory

1. It enables management to assess what skills are currently available
2. Helpful for planning the selection, training, promotion, and transfer of employees.
3. Essential for deploying and utilizing existing human resources.
4. Helpful for diversification and expansions of operations.
5. It provides information for identifying human-resource-related threats to the organization.

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