Vice President

Human Resource
Management

Director
Human Resources
Planning,
Recruitment and Selection

Director
Training and Development

Human resource Planning

Recruitment
Interviewing
Testing
Placement
Resignations
Terminations
Equal opportunity
Personal research,
analysis, and evaluations
Human resource audits

Management development
Needs analysis
Training programs
Development plans
Skills needs and
inventories
Safety training
Orientation
Training and development
evaluation

Director
Compensation, Benefits
and Resources

Job analysis
Job evaluation
Wage/salary services
Salary and benefits
programs
Incentive plans
Deferred compensation
plans
Stock option plans
Recognition and awards
programs
Compensation rules,
procedures, and law

Director
Labor Relations

Labor contracts
Government agencies
Co0llective bargaining
Grievance procedures
and audits
Union relations

EXTERNAL ENVIRONMENT
INTERNAL ENVIRONMENT

Strategic Planning
Human Resource Planning

Forecasting
Human Resource
Requirements

Comparing
Requirements
and Availability

Demand
=
Supply

Surplus
Of
Workers

No
Action

Restricted Hiring,
Reduced Hours,
Early Retirement,
layoff, Downsizing

Forecasting
Human Resource
Availability
Shortage of
Workers

Recruitment

The Human Resource Planning Process

Selection

Organizational Plans and Objectives

Scan External Environment for

Changes Affecting Labor
Supply

Analyze Internal Inventory of

Skills and Potentials and
Compare Against Those Needed

Forecast

Organizational Need
for People

Supply of People
Available
Compare

Make Adjustments

Expand

Stay the Same

Contract

1.Environment Scanning: Identify and anticipate sources of threats, opportunities,

scanning the external environment (competitors, regulation) and internal environment
(strategy, technology, culture).
2.Labor Demand Forecast: Project how business needs will affect HR needs, using
qualitative methods (e.g. Delphi, Nominal) and Quantitative methods (trend analysis,
simple and multiple linear regression analysis).
3.Labor supply Forecast: Project resource availability from internal and external
sources.
4.Gap Analysis: Reconcile the forecast of labor supply and demand.
5.Action Programming: Implement the recommended solution from step 4.
6.Control and Evaluation: Monitor the effects of the HRP by defining and
measuring critical criteria (e.g. turnover costs, breakeven costs of new hires,
recruitment costs, and performance outcomes).

Competitive
Financial
Environment

Available Financial
Resources

Current
Organizational
Situation
Strategy of the
Organization

Culture of the
Organization

Need for Human

resources:
Quantity and Skill
Levels

HR Plans and Policies

for:
Recruiting
Selection
Training
Compensation
Appraisal
Staffing adjustments