University of Rizal System

Human Resource Management

Human Resource Planning

INTRODUCTION

We now start with the first Human Resource Management Process which is the Human
Resource Planning. This process is designed to assure that the personnel needs of the
company will be consistently and timely met.
Through the process of human resource planning, the organization can identify the
variety of skills it will need for future use.
To ensure a successful implementation of other human resource functions, depends on
how well is the human resource plan. The output of human resource planning is a
prerequisite before the Human Resource Department can plan for recruitment, selection
and training of workers.

OBJECTIVES

This module aims to achieve the following objectives for you:

1. Identify the importance of human resource planning.
2. Compute the methods of forecasting the demand for human resource
3. Determine the steps necessary for internal manpower supply.

HUMAN RESOURCE PLANNING AND ITS IMPORTANCE

Human Resource Planning is a process as well as a set of plans. It is how the

organizations evaluate the future supply and demand for manpower.
Effective human resource plan provides mechanism to minimize any gap that is present
between supply and demand. Thus, human resource planning identifies the numbers
and types of workers to be hired into the company.
To provide a clear picture on the Importance of Human Resource Planning, you may
refer to https://www.yourarticlelibrary.com

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Module 2: Human Resource Planning 1
THE REASONS FOR HUMAN RESOURCE PLANNING

There are effects that are important to the success of any company. You may visit
https://businessmanagementideas.com for a deeper understanding of the topic.

STEPS IN HUMAN RESOURCE PLANNING

The organization’s internal environment as well as the external environment will define
the human resource manager the boundaries within which their human resource plan
must operate. These environments from time to time change and must be monitor by
the managers to keep their human resource plans up to date. For a clear picture of the
Steps in Human Resource Planning you can visit https://www.yourarticlelibrary.com

METHODS OF FORECASTING THE DEMAND FOR HUMAN RESOURCE

One of the elements in Human Resource Planning is Forecasting. Human Resource

Forecasting tries to identify the type of workers the company will need to maintain its
growth and explore future opportunities. Thus, forecasters attempt to predict the type,
quantity and quality of manpower needed in the future.
For the methods used in forecasting the demand for human resources see
https://www.toppr.com

FORECASTING THE SUPPLY OF HUMAN RESOURCES

Once the company has forecast the demand for manpower, there is an indicator of need
for labor supply. An analysis of how many people with specific skills in various
categories are determine.

There are two sources of human resources to be considered in the analysis of

manpower supply:

1. The external source which is outside the company as in the labor market, and
2. The internal source which is available within the organization.

Factors like abilities, interests and work experience must be analyzed to achieve quality
of available manpower.

To determine the supply of manpower within the organization, there are necessary
steps to follow:

1. Skills Inventory. The staff responsible to forecast the labor supply should take in
consideration the organizations pool of skills. Many companies include inventories of
worker’s in a database. When the company forecasts that it will need new skills, the
database will be of help to see the available skills of the existing employees.

2. Management Inventory. The adequacy of managers in the organization play a great

role in the success of an organization.
Like the conduct of worker’s inventory, periodic inventory of management in terms of
their performance and abilities is needed to maintain quality of skilled managers.
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Module 2: Human Resource Planning 2

3. Anticipating Changes in Personnel. There is a variety of changes in the status of

personnel either in the internal or external environment that can determine the supply of
manpower in the organization.

You may want to enhance our discussion on forecasting the supply of the organization
please see page 44 of your textbook by Medina.

Activity

Compute for the standard time for per unit work

Planned output for next years = 70,000 units
Standard hours per unit = 2
Planned hours required =?
Productive hours per worker in the year = 2,000
Number of workers required = ?

SAQ 2-1
Identification: From the word pool below, select the word or group of words to make the
statement correct and complete. Write your answer on the space provided for.

Choices:

Human Resource Planning Estimating Manpower Gaps Replacement Needs

Work Study Method Forecasting Demand and Supply of Human Resource
Mathematical Models Inventory of Present Human Resources
Management Inventory Managerial Judgement Skill Inventory

_____________ 1. This is done on the basis of knowledge of expected future work-

load and employee efficiency.
_____________ 2. This method uses time and motion study to analyze and measure
work.
_____________ 3. The activity undertaken to make sure that the right quantity and
quality of manpower are available at the exact time and place
they are needed.

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Module 2: Human Resource Planning 3
_____________ 4. This refers to the updated human resource information storage
system, the current number of employees, their capacity,
performance and potential can be analyzed.
_____________ 5. The human resources required at different positions according
to their job profile are to be estimated.
_____________ 6. Comparison of human resource demand and human resource
supply will provide with the surplus or deficit of human resource.
_____________ 7. These depend on firstly retirement, and then on death, resignation
and termination of employees.
_____________ 8. This shows the relationship between independent and dependent
variables.
_____________ 9. This refers to periodic inventory of management in terms of their
performance and abilities is needed to maintain quality of skilled
manpower.
____________ 10. The staff responsible to forecast the labor supply should take in
consideration the organizations pool of skills.

Answer to Self-Assessment Question

ASAQ 1-1

1. Managerial Judgement
2. Work Study Method
3. Human Resource Planning
4. Inventory of Human Resources
5. Forecasting Demand and Supply of Human Resource
6. Estimating Manpower Gaps
7. Replacement Needs
8. Mathematical Models
9. Management Inventory
10.Skills Inventory

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Module 2: Human Resource Planning 4

REFERENCES

Corpuz,Crispina R. Human Resource Management, Rex Publishing Company,2013

Medina, Roberto G. Personnel and Human Resources Management, Rex Publishing

Company,2010

https://www.businessmanagementideas.com
https://www.toppr.com
https://www.yourarticlelibrary.com