In this paper the tools are developed for forecasting and recruitment planning in a graded manpower system. Basic features of the presented approach are: - the system contains several grades or job categories in which the employees stay for a certain time before being promoted or leaving the system, - promotability and leaving rate for any employee depend on time spent in the job category and personal qualifications (like education, experience, age), - recruitment is not necessarily restricted to the lowest level ln the system, - several planning aims and restrictions are allowed. The approach is based on a generalized Markov model for the dynamic behaviour of an individual employee. On this Markov model a forecasting procedure and a recrui...