Human Resource Management

Lesson 1: Human Resource Planning

By: Mr. Joemar V. Lapira, MBA
 Definition of HRP
It includes the estimation of how many qualified people are necessary to carry out the assigned
activities, how many people will be available, and what, if anything, must be done to ensure that
personal supply equals personnel demand at the appropriate point in the future.

Basically it’s the process by which an organization ensures that it has the right number & kind of
people, at the right place, at the right time, capable of effectively & efficiently completing those
tasks that will help the organization achieve its overall objectives.

The accomplishment of the company’s strategic objectives is always grounded on the following:
quality product/service offering, a highly reputable corporate image, and competent and reliable
personnel.
 Importance of HRP
A. Future personnel needs
• Surplus or deficiency in staff strength
• Results in the anomaly of surplus labour with the lack of top executives.
B. Coping with change
• Enables an enterprise to cope with changes in competitive forces, markets,
technology, products and government regulations.
C. Creating highly talented personnel
• HR manager must use his/her ingenuity to attract & retain qualified & skilled
personnel
• Succession planning
D. Protecting of Weaker Sections
• SC/ST candidates, physically handicapped, children of the socially disabled &
physically oppressed and backward class citizens.
E. International Strategies
• Fill key jobs with foreign nationals and re-assignment of employees from within
or across national borders
F. Foundation for personnel functions
• Provides information for designing & implementing recruiting, selection,
personnel movement (transfers, promotions, layoffs) & training & development.
G. Increasing investments in human resources
• Human assets increase in value
H. Resistance to change and move
• Proper planning is required to do this

I. Other Benefits
• Upper management has a better view of the HR dimensions of business decision
• More time is provided to locate talent
• Better opportunities exist to include women & minority groups in future growth
plans
• Better planning of assignments to develop managers can be done
 Human Resources Planning
Process

Forecasting Human Action Plan/

Environmental Decision
Resource Program
Scanning Analysis
Requirements Implementation

• Surplus
SWOT Analysis Demand-Supply Gap • Shortage
Analysis Analysis • Labor
Equilibrium

Coordination Concentration
 Coordination
It is the process of ensuring that the human resource requirement of organization are
identified and plans are made for satisfying those requirements.

A. Environmental Scanning

Environmental scanning is critical to HRP because it assesses the factors that presently
affect the labor market as well as the ability of the company to respond to these factors.
As a process, HRP looks at the organization’s strengths, weaknesses, opportunities, and
threats (SWOT).
B. Forecasting Human Resource Requirements

Forecasting refers to the decision maker’s perception of a certain behavior based on an

objective study of the factors affecting the perceived behavior. In short, this is making
predictions based on critical factors to come up with a key decision.
 Consideration
During the stage of HRP process, there are certain considerations that the HR should
deal with. To be successful, there is a need for an HR manager to be guided by the
following information.

1. The Human Resource Planning (HRP) Team

The following personnel should be considered in the HRP Team:

a. Senior members of top management
b. Department managers
c. HR support professionals
d. Information technology professionals
e. Finance/Budget Analyst
2. Current and Long-Term Workforce Requirement
During HRP, there are certain changes that have to be made on the current workforce.
The HR department should replace those who are due for retirement; considered those
who can be prompted; and look into current vacancies that need to be filled
immediately.

3. Evaluation of the company’s current roster of personnel

There is a need to assess how many regular or full-time employees and part-time or
temporary workers there are in an organization. The group of temporary hires is called
contingent workers. In evaluating the workforce, a skills inventory is needed.
4. Assessment of external labor environment which affects the future supply of
employees
The external environment is evaluated on the basis of the average number of graduates
and the corresponding courses per year, as well as the average age of the labor force.
It is also imperative to identify what industries are labor-intensive and which among
them grow faster in terms of profitability, as this can also affect the numbers of
workers employed.
Methods of forecasting internal labor supply

• Trend analysis
• Skills/Competency models
• Replacement chart
• Succession planning
• Staffing tables
• Markov analysis
 Concentration
The concentration of efforts is very crucial in the organization’s achievement of its
strategic objectives. In determining the shortage or surplus of manpower, it is very
important to forecast future requirements.
• Forecasting HR Demand
In forecasting HR demand, the organization identifies human resource requirements
including the number of employees and the necessary functions that the employees
need to perform.
 Quantitative Techniques in Forecasting HR Demand
• Trend Analysis
• Ratio Analysis
• Regression Analysis
  Qualitative Techniques in Forecasting HR Demand
• Delphi Method
• Nominal Group Technique
• Scenario Analysis

C. Decision Analysis
During this stage, HR conducts gap analysis – the process of finding the difference
between the forecasted HR supply and HR demand.

D. Action Plan/Implementation of the program

After gap analysis and a particular decision is obtained (e.g., a labor equilibrium,
shortage, or surplus), the organization is now ready to identify the strategies for its
implementation.
Thank you for listening! ☺