Human Resource Management – QTRE403

Chapter 3
Planning for Human Resources

Instructor: Vu Thi Dan Tra; Email: vuthidantra.cs2@ftu.edu.vn

 CONTENTS
1. Discuss how to plan for human resources needed to carry
out the organization’s strategy.
2. Determine the labor demand for workers in various job
categories.
3. Summarize the advantages and disadvantages of ways to
eliminate a labor surplus and avoid a labor shortage.
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 Human Resource Planning
▪ compares the present state of the organization
with its goals for the future
▪ then identifies what changes it must make in its
human resources to meet those goals.

=> meet business objectives and gain an

advantage over competitors.
Human Resource Planning Process
 Forecasting
Forecasting: The 3 major steps:
attempts to determine Forecasting the
the supply of and
demand for labor
demand for various
types of human Determining labor
resources to predict supply
areas within the Determining labor
organization where there surplus or shortage
will be labor shortages
or surpluses.
 Forecasting the Demand for Labor
▪ forecast whether the need for people with the
necessary skills and experience will increase or
decrease
Quantitative methods Qualitative methods
Trend analysis Judgments of managers
Regression analysis Delphi method
Correlation analysis
 Determining Labor Supply
▪ Determining the internal labor supply: how many
people are currently in various job categories or have
specific skills within the organization
▪ then modifies this analysis to reflect changes expected
in the near future as a result of retirements, promotions,
transfers, voluntary turnover, and terminations
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 Determining Labor Supply
Transitional Matrix 2 questions
A chart that lists job Where did people who
categories held in one were in each job
period and shows the category go?
proportion of employees in “Where did people now
each of those job in each job category
categories in a future come from?
period.
Determining Labor Supply
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Determining Labor Surplus or Shortage
▪ Based on the forecasts for labor demand and
supply, the planner can compare the figures to
determine whether there will be a shortage or
surplus of labor for each job category.
▪ Determining expected shortages and surpluses
allows the organization to plan how to address
these challenges.
 Goal Setting and Strategic Planning
▪ The purpose of setting specific numerical goals is
to focus attention on the problem and provide a
basis for measuring the organization’s success in
addressing labor shortages and surpluses.
▪ The goals should come directly from the analysis of
labor supply and demand.
▪ For each goal, the organization must choose one or
more human resource strategies.
 Options for Reducing a Surplus

Retraining Early Natural

retirement attrition

Hiring freeze Work sharing Transfers

Demotion Pay reduction Downsizing

 Options for Avoiding a Shortage

Technological New external Turnover

innovation hires reductions

Retrained Outsourcing Temporary

transfers employees

Overtime
 Implementing and Evaluating the HR
Plan
▪ When implementing the HR strategy, the
organization must hold some individual
accountable for achieving the goals.
▪ That person must also have the authority and
resources needed to accomplish those goals.
▪ Regular progress reports should be issued.
▪ The evaluation of results should not only look at
the actual numbers, but should also identify which
parts of the planning process contributed to success
or failure.
 Applying HR Planning to Affirmative
Action
▪ Workforce Utilization Review: A comparison of the
proportion of employees in protected groups with the
proportion that each group represents in the relevant labor
market.
▪ The steps in a workforce utilization review are identical to
the steps in the HR planning process
▪ The organization must assess current utilization patterns,
then forecast how they are likely to change in the near
future.
▪ If the analyses forecast underutilization of certain groups,
then goals and a plan will be established.
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