MODULE 3 HR Planning

This module discuss the operational function of HRM under employment, the human resource
planning. It involves the reasons for HR planning, the assessment of the environment, the HR
planning model and planning HR programs.

Objectives:

At the end of this module, students are expected to:

 Define HR planning;
 Explain the reasons for HR planning;
 Explain the HR planning model and how it works; and
 Understand the assessment of the environment
 Know and understand how to plan HR programs

Key terms:

Human resource planning government factor

economic factor population factor

Geographical factor internal factor

 Module 3: HR Planning

What is Human Resource Planning?

Human Resource Planning (HRP) is that activity undertaken to make sure that the right
quantity and quality of manpower are available at the exact time and place that they are
needed. Human resource planning should serve as a link between human
resource management and the overall strategic plan of an organization.
The Reasons for HRP

 There is more efficient and equitable use of human resources. If HRP is made to
really provide accurate information about how many people and what kind of people
are needed there is a slim chance that those recruited and selected will not be able
to do their jobs(Medina 2006)
 There is more effective employee development and feeling of greater sense of
fairness. In organizations with effective HRPs, employees are aware of what the
organization is doing. The HR activity is a result of what is actually needed not
because of caprices of management.

The HRP Model

Figure
HRP Model (Medina 2006)

Gather Information

Forecast Demand for Human Resource

Forecast Supply of Human Resource

Plan and Conduct needed Programs

Obtain Feedback on the Planning Process

 Module 3: HR Planning

Gather information. Gathering information from the external environment and internal
environment. Information needed are about the economy, technology, competition, labor
markets, government regulations, current human resource and rates of turnover and mobility.
Forecast demand for human resource. Forecasting the demand for human resource can be
short and long term demand or aggregate and individual positions.
Forecast supply of human resource. Forecasting supply of human resource can be internal
supply and external supply.
Plan and conduct needed programs. This involves increasing or reducing size of workforce and
develop managerial successors.
Obtain feedback on the planning process. It answer the questions were the forecasts accurate?
And did the programs meet the needs?
The Assessment of the external and internal environments
In collecting information, the planner must keep in mind that the purpose of such an activity
is to make an assessment of the external and internal environments.
There are some external factors that affects HRP. And this are:

 The government factor. The government implement laws or policies that can affect to
HRP.
 Economic condition. The economic status can also affect HRP in a way were unexpected
things happens. Example recession or there is pandemic or epidemic happens.
 Population and work force shifts. In this scenario people from rural areas move to urban
areas. That is why organization in the rural areas find it hard to recruit competent
specialists
 Geographical and competitive conditions. Employers in a particular area compete with
one another in tapping local sources of labor. When large businesses find interest in
opening facilities in a particular area, the demand for many types of labor in that area
will rise and may jeopardize the recruitment policies of local organization.(medina 2006)
Internal Factors

 Anticipated production volume

 Expectations about sales
 Plans to invest in new facilities
 Closing down of existing plants or offices
 Module 3: HR Planning

Planning Human Resource Programs

The HR planner is confronted with the possibilities of manpower shortage and surplus and
the concern for a smooth managerial succession. Because of this situation that might happen it
is good for the organization to plan out and properly manage a program.
Planning for shortages

 Recruitment from external sources

 Encouraging retirable to postpone retirement
 Rehiring retired employees
 Introducing remedies to reduce employee turnover
 Subcontracting
 Hiring temporary workers
Planning for surpluses

 Adapt attrition as a policy. In this situation there is no recruitment happen just to

replace the number of employees who retired.
 Offer early retirement incentives.
 Transfer some employees from units with manpower surplus to units with manpower
shortage.
 Schedule employees for training during slack periods.
 Lay off excess employees.
Managerial Succession Planning

 Categorize managerial jobs according to priority so proper attention could be directed

where it is needed.
 Identify candidates with high potential
 Plan development activities for candidates
 Identify viable near-term replacements for important positions

References
BOOK
Medina, Roberto G. 2006.Personnel and Human Resources Management. Published in the
Philippines by REX Book Store
Corpuz, Crispina Rafol. 2006. Human Resource Management.Published in the Philippines by REX
Book Store
OTHER SOURCES
Module 7, retrieved from: Tiangsing, Joly T.