What is HR inventory?

Inventory is a term that is use to count tangible objects like goods and raw materials. The inventory of human resources is also prepared in the same way but it is not simply the counting of heads that are available at present but cataloguing the present and future potentials. The human resources of the organization are divided into managerial and non-managerial categories, the skills inventory is related with non-managerial employees and the management inventory is related with the management personnel. 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, systematic and detailed appraisal of these employees and a thorough study of the individuals who have potential for growth.