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#3 HRM
#3 HRM
LESSON #4: EC 6
(Human Resource Management)
Companies do not take off by themselves. Practically every strategic planning decision has to take into
consideration the people issues related to it.
Once the company has formulated its strategies, top-level management should make a decision as to the
number and type of people who will implement the strategy.
Strategic planning and human resource planning jointly set objectives in relation to the firm’s processes and
human resources.
The Process of Human Resource Planning
Organizational
mission, goals,
objectives, and
strategic requirments.
Current
Decide action. manpower
inventory
Forecasting
Employee demand and
plan supply
Manpower
gaps
b. Ratio Analysis is the process of anticipating future HR demands by calculating the precise ratio
between certain variables. This method is considered more accurate than trend analysis.
c. Regression Analysis is identical to both trend and ratio analyses in such a way that forecasts are
based upon the relation between certain predictors like sales volume and number of employees.
In this method, the organization draws lines and marks called a scatter diagram. It then
calculates a regression line which goes through the middle of the marks on the scatter
diagram.
2. Qualitative Approaches. It predicts future HR needs based on the opinions or gut feel of some selected
members of the organization outside experts or others concerned with the future labor needs of the
company. This method is often seen as subjective and judgmental hence, biases are most likely to
occur.
Delphi technique is a type of qualitative forecasting method that aims to minimize biases of
forecast by seeking expert opinions and summing up their decisions.