BANKING UNIVERSITY OF HO CHI MINH CITY

DEPARTMENT OF BUSINESS ADMINISTRATION

HUMAN RESOURCE MANAGEMENT

Human resource planning in a

ever-changing environment CHAPTER 2

Lecturer: Dang Truong Thanh Nhan, PhD

 OBJECTIVES
01 Ø Explain the nature of human resource planning
02 Ø Review and analyze the human resource planning process

03 Ø Know how to establish effective human resource planning policies

04 Ø Analyze effective criteria for human resource planning

05 Ø Participate actively and confidently in human resource planning

activities
 CONTENT
2.1. Human resource planning

2.2. Business and human resource strategy

2.3. The basis and process of human resource planning

2.4. Human resource information system

2.5. Create a human resource plan

2.6. Effective human resource planning

Chapter 2: Human resource planning in a ever-changing
environment

2.1. Human resource planning

Human resource planning is the process

of analyzing and determining future
requirements as well as current human
resources to achieve strategic objectives o
f the organization

(Mathis & Jackson, 2016)

2.1. Human resource planning

The importance of human resource planning

Ø Identifying human resource needs
Ø Optimizing the efficiency of using human resources
Ø Assessing the current human resources
Ø Facilitating the remaining human resource management tasks
Chapter 2: Human resource planning in a ever-changing
environment

2.2. Business and human resource strategy

Business strategy is methods that businesse

s

pursue to compete successfully, survive and

develop
(Mathis & Jackson, 2016)
Chapter 2: Human resource planning in a ever-changing
environment
v Strategy and Strategic Planning
Chapter 2: Human resource
planning in a ever-changing
environment

Figure - Strategic Planning Process

Chapter 2: Human resource planning in a ever-changing
environment
2.2. Business and human resource strategy
The contribution of human resource strategy to business strategy

Increasing Focusing on
the understanding of business the important business
strategies objectives
Human
resource
management Grasping
Preparing
performance measurement
for future
system
Chapter 2: Human resource planning in a ever-changing
environment

2.2. Business and human resource strategy

The contribution of human resource strategy to business strategy

Increasing the understanding of business strategies: employees can understand the

business situation of the organization and the strategies which the organization is
pursuing.
Chapter 2: Human resource planning in a ever-changing
environment

2.2. Business and human resource strategy

The contribution of human resource strategy to business strategy

• Focusing on important business objectives: employees make their best

efforts to achieve important strategic objectives.
Chapter 2: Human resource planning in a ever-changing
environment
2.2. Business and human resource strategy
The contribution of human resource strategy to business strategy
Ø Grasping performance measurement system
§ Measuring performance is one of the essential steps to make the
strategy succeed
§ Performance measurement system includes measuring employee
performance
Chapter 2: Human resource planning in a ever-changing
environment

2.2. Business and human resource strategy

The contribution of human resource strategy to business strategy
• Preparing for future: provide information about what is happening
and what has happened to prepare for the future
Chapter 2: Human resource planning in a ever-changing
environment
v Strategic HR Management

Entails providing input into organizational

strategic planning and developing specific HR
initiatives to help achieve the organizational goals

Develops processes that help align individual

employee performance with the organizational
strategic objectives
Chapter 2: Human resource planning in a ever-changing
environment
2.3. The basis and process of human resource planning

• Human resource planning process

Determine
the Evaluate Formulate
organizatio internal and HR HR
n’s current external forecasting strategies
environment workforce and plans
and strategy
(Mathis & Jackson, 2016)
Chapter 2: Human resource planning in a ever-changing
environment
v Environmental Scanning
Assessment of internal and external environmental conditions affecting
organization
• External environment - Economic, political and competitive forces
• Internal environment
• Quality and quantity of talent
• Organizational culture
• Talent pipeline and leadership bench strength
Helps identify strengths, weaknesses, opportunities, and threats
Chapter 2: Human resource planning in a ever-changing
environment
v Factors Affecting External Pool of Employees
Economic and Governmental Factors - Impact HR Planning
• Government regulations affect labor supply
• Tax legislation at local, state, and federal levels
Geographic/Competitive Evaluations
• Net migration
• Direct competitors
• International competition
Changing Workforce Considerations
• Aging of the workforce
• Growing diversity of workers
• Female workers and work-life balancing concerns
• Availability of contingent workers
• Outsourcing possibilities
Chapter 2: Human resource planning in a ever-changing
environment

Figure - Areas Where HR

Can Develop Strategies
Chapter 2: Human resource planning in a ever-changing
environment
2.3 The basis and process of human resource planning
Ø Methods for human resources forecasting

Statistical and mathematical

Based on Judgment
techniques

Forecasting Regression Analysis

Based on experiences Simulation modeling
Delphi technique Based on yield rate
Nominal Group Technique Based on employee rate
Chapter 2: Human resource planning in a ever-changing
environment
v HR Forecasting Planning Periods
Short-range plans - Forecast fo r the
immediate HR needs of an organization

Intermediate-range plans - Project one to

three years into the future

Long-range plans - Extend beyond three

years
Chapter 2: Human resource planning in a ever-changing
environment
v Forecasting External Supply of Employees
Net migration into and out of the area

Individuals entering and leaving the workforce

Individuals graduating from schools and colleges

Changing workforce composition and patterns

Economic forecasts for the next few years

Technological developments and shifts

Actions of competing employers

Government regulations and pressures

Chapter 2: Human resource planning in a ever-changing
environment
2.4. Human resource information system

Human resource information system is a system that is used to integrate all

data about human resources into one platform

§ Integrating factors such as human resources, finance and operations into

the human resource management system for more effective management

§ A decision support platform

Chapter 2: Human resource planning in a ever-changing
environment
2.5 Build human resources planning

Plan when there is a shortage

Plan when excess manpower
Reduce working hours
Do not add employees for
vacant positions
Do not recruit new employees
Voluntary Turnover
Cutting staff
of manpower
Increase working hours
Hire third party employees
Create flexibility at work
Use temporary manpower
Reduce absenteeism or leave

(Mathis & Jackson, 2016)

Chapter 2: Human resource planning in a ever-changing
environment
v Managing a Talent Shortage
 Chapter 2: Human resource planning in a ever-changing
environment
2.6 Establish effective human resource planning
Ø Analyze and measure human resources
Staffing in human Demarcation Total Rewards And Training Maintenance and Development
resource management - Number of Compensation - Training quality - Number of
and costs employees that - Annual salary and time/employee - Average tenure positions arranged
- Human are recruited salary increase - Total cost of - Percentage of new internally
resources/employees - Recruitment rate training employees - Percentage of
- Number of human period - Salary/operating - Number of working 90 days employees have a
resource - Cost of recruiting expense ratio employees - Work results of career plan
management team - Annual leave rate - Welfare costs participating in the new employees in
- Human resource training program the first year
management have a
expenses/full-time commitment to
employees stay with the
organization

(Mathis & Jackson, 2016)

Chapter 2: Human resource planning in a ever-changing
environment

Figure - HR Factors in the SWOT Analysis

Chapter 2: Human resource planning in a ever-changing
environment
v Measuring Effectiveness of Human Resources and Human Capital

Effectiveness: Ab ility to p rodu ce a

specific desired effect or result that can be
measured

Effectiveness: Ab ility to p rodu ce a

specific desired effect or result that can be
measured
Chapter 2: Human resource planning in a ever-changing
environment
v HR Metrics and Analytics

HR Metrics: Specific measures tied to HR

performance indicators

HR analytics: An evidence-based
approach to making HR decisions on the
basis of quantitative tools and models
Chapter 2: Human resource planning in a ever-changing
environment

Figure - Key HR Metrics

Chapter 2: Human resource planning in a ever-changing
environment
v Characteristics of HR metrics and Analytics

Accurate data
Measures linked to strategic and operational objectives
Clearly understood calculations
Measures provide information valued by executives
Results can be compared both internally and externally
Measurement data drive HR management efforts
Chapter 2: Human resource planning in a ever-changing
environment

2.6. Establish effective human resource planning

ØComparative technique

Compare company results with industry benchmarks

Chapter 2: Human resource planning in a ever-changing
environment
2.6. Effective human resource planning
Ø The balanced scorecard
The framework that describes the different measurement results include
s:
§ Internal business process
§ The relationship with the customers
§ Financial measures
§ Learning and development activities
Chapter 2: Human resource planning in a ever-changing
environment
2.6. Effective human resource planning
Ø Measure the effectiveness of human capital
§ ROI (Return On Investment): the result of investing in human capital
§ HCVA (Human Capital Value Added): profit that a full-time employee
brings to the organization
§ HCROI (Human Capital Return On Investment): profit gained from in
vesting in human resources.

§ HEVA (Human Economic Value Added): economic value created by a

worker
Chapter 2: Human resource planning in a ever-changing
environment
2.6. Effective human resource planning

Ø HR Audit

• HR Audit is designed to assess human resources management

activities
Thank you