HANDOUT 2 – HUMAN RESOURCES MANAGEMENT

Prepared by: Voltaire B. Torrion, CHRA, MBA

HUMAN RESOURCE PLANNING

The objective of Human Resource Planning (HRP) is to ensure the best fit between employees and jobs, while
avoiding manpower shortages and surpluses.

The three key elements of HRP process are:

1. Forecasting labor demand
2. Analyzing present labor supply
3. Balancing projected labor demand and supply

NEED AND IMPORTANCE OF HR PLANNING

Human Resource Planning is a business strategy consist of analyzing and identifying the need for and availability of
human resources required by an organization to meets its objectives.
It is a process by which an organization ensures that it has the right number and kinds of people, at the right place, at
the right time, capable of effectively and efficiently completing those tasks that will help the organization achieve its
overall goals and objectives.

Why HRP?

 Despite growing unemployment, there has been shortage of human resources with required skills,
qualification and capabilities to carry on works.

 A large number of employees, who retire, die, leave organizations, or become incapacitated because of
physical or mental ailments, need to be replaced by new employees. HRP ensures smooth supply of labor
without interruption.

 Voluntary quits, discharges, marriages, promotions and seasonal fluctuations are some of the factors that lead
to workforce turnover in organizations. HRP is essential in the face of marked rise in workforce turnover which
is unavoidable.

 Technological changes and globalization usher in change in the method of products distribution, production
services, and management techniques

 HRP is needed to meet the needs of expansion and diversification programs of an organization.

OBJECTIVES OF HR PLANNING

1. Ensure adequate supply of manpower as and when required.

2. Ensure proper use of existing human resource in an organization.
3. Forecast future requirements of human resource with different levels of skills.
4. Assess surplus or shortage.
5. Anticipate the impact of technology on jobs and requirement of human resources.
6. Control human resources already deployed in the organization.
7. Provide lead time available to select and train the required additional human resource

THE SIX PHASES IN HR PLANNING PROCESS

Internal Analysis of Jobs

Controlling / Evaluation
Establishing Objectives
Scanning the External

Implementing Action
Designing and
Environment

Forecasting
and People

Plans
** Let’s just discuss the first three phases for these are the basic phases while the rest are concentrated by BSBA-HRM major
courses

STEP 1: SCANNING THE EXTERNAL ENVIRONMENT

a. Government Influences – Labor laws, social security legislation, taxation, etc.

b. Economic Conditions –the business cycle affects HR Planning, we have to be aware of the phases of the
business cycle, and what affects those phases.
c. Geographic and Competitive Concerns
- Other employers in the area
- Employee resistance to geographic relocation
- Direct competitors

STEP 2: INTERNAL ANALYSIS OF JOBS AND PEOPLE

a. Auditing Jobs –examine the following questions
 What jobs exist now?
 How many individuals are performing the job?
 What are their reporting relationships?
 How essential is each job?
 What jobs will be needed to implement the organizational strategy?
b. Auditing Skills –understand a detailed audit of current employees and their skills. These information can
be found in the HRIS
c. Creating an Employee Skills Inventory
d. Drawing Aggregate Workforce Profiles

STEP 3: FORECASTING

This should be a combination of Quantitative method and subjective judgment.

Judgmental approaches include:
1. Estimates
2. Rule of Thumb
3. Delphi Technique
4. The Nominal Group Technique

Statistical and Mathematical Techniques include:

1. Trend Analysis
2. Scatter plot Diagrams
3. Statistical Regression Analysis
4. Simulation Models
5. Productivity Ratios
6. Staffing Ratios

END OF THE TOPIC QUESTIONS FOR REVIEW

Instructions: Answer the following review questions.

CASE STUDY:
WHO WILL BE THE NEXT MR. SUPERVISOR?

Jassy Rudinas was facing a dilemma. She was being transferred to a new job at the Makati head office. The
General Manager, Reya Candano had just asked Jassy to nominate one of her subordinates as her replacement. Two
possible choices immediately come to mind, Kevin Balatero and Ryan Genobia.
Kevin’s performance rating was above average. He had earned his Bachelor’s Degree in Marketing
Management at La Salle University Kevin had the qualifications Jassy believed a good supervisor should have,
including the potential for growth and the necessary skills to do the job.

Ryan, on the other hand, although only a high school graduate was a hardworking employee and was like and
respected by everyone, including Kevin. On the basis of the factors to consider for promotion, Jassy believed Ryan
ran second to Kevin.
 However, Kevin was in another religion and Jassy believed some workers would prefer to have Ryan as a
supervisor. She also thought of the possibility of a strong resistance from certain groups if she was to appoint Kevin as
supervisor.

1. If you were in the shoes of Jassy what would you do? Who would you recommend?

RIGHT NUMBER OF PEOPLE

RIGHT KIND OF PEOPLE

POSITION
HRP RIGHT

RIGHT PLACE RIGHT COST

2022 - 30,000,000 – 150 employees

2023 - 65,000,000 – 325 employees

30,000,000 = 65,000,000
150 x
30Mx = 65M/150

30Mx = 9.75B

X = 9.75B/30M

X = 325 employees