Chapter 2

Human Resource Planning

 HRP Means devising plans, strategies and tools to provide the right number of people with
right skills and qualifications at right time.

Need to know components of HR Planning

1. Coordination
2. Consideration
3. Concentration

Coordination

A. Environmental Planning
 It is very critical to HRP because it assess the factors that presently affect the labor
market as well as the ability of the company to respond to the different factors.
 SWOT means strengths, weaknesses, opportunities, threats
 SWOT Analysis reveal the current strengths of the organization and how
they can be maintain in market position or standing , how its product and
services fair in the market, and how its weaknesses and current distribution
setup can reduce the personal capability to transport the products in a
certain city.
 The purpose of SWOT in HRP is there is a big chance of the company to
succeed in a new branch or area.
 SWOT can spell the difference between getting new personnel, retaining the
same number of people, or laying off some employees.
  It is very critical on planning out man power complement. It describe how
many people are currently employed in the organization and how many
personnel occupying different positions are in each department.
 Environmental factors:

 Economy & The labor market – if an employment is generally high it will be

relatively easy for an organization to get an inexperience new graduate for a
customer service representative position.
 Demographic shift & enrolment – an increase on minimum wage (For example) may
deter a company from hiring the new employees at the moment due to budgetary
consideration.
 Innovation – Para makapg hire ka ng isang expert you need innovation.
 Government Policy – we cannot operate a business without considering the
government policy. Ex: Business permit, DTI, SEC permit.
 Number’s Competitive Advantage – If you are expecting more on an employee but
you cannot offer competitive advantage.

B. Forecasting
 It is a prediction of Human Resource Requirement
 It refers to the decision makers perception of a certain behavior base on an
objective study of the factors affecting the perceive behavior.
 It is the making predictions base on the critical factors for us to come up with a key
decisions.

Consideration
1. The Human Resource Planning Team
A. Top Management – they provide the necessary support and the go ahead signal to
execute the plan.
B. Department or Line Managers – they assist analyzing the human resource requirement
and aligning them correctly in the organization.
C. HR support Professionals – they are the support group that ensures that department
managers are provided all the health they need to implement the process.
D. IT Professionals – they undertake the process of automation.
E. Financial/Budget Analysis – they make the necessary linkages between the human
resource requirement and the corresponding monetary limitation.
2. Current and Long-term Workforce Requirements
 Is HR Department should replace the due retirement?

3. Evaluation of the Company’s Current Roster or Personnel

 This includes the temporary and permanent workers
 Skills inventory is also needed.

4. Assessment of External Labor Environment which affects the future supply of employees
A. Forecasting External supply – It is necessary to determine potential employees from
information available in government officers such as Department of Labor and Employment
and National Statistics Office.
 PMAP – People Management Association of the Philippine (group of HR
Professional)
 JOBSTREET – Nag uupload ng job post
 SUC’s – State University and Colleges
B. Forecasting Internal Supply
 Actuarial Losses – refers to the life events, ex: Death, disability and retirement
 Turnover – total number of employees leaving the organization divided by the
total number of employees inside the organization
 Voluntary – resignation
 Involuntary – dismissal or lay off
 Methods of Forecasting Internal Supply
 Trend analysis – Record of past trends
o Future trends can be predicted easily through past retirement, hiring and
turnover patterns
o Yearly Percentage
 5% Retirement
 4% Resignation
 2% Dismissal
 Total = 11%/ Year
o Advantage of using trend analysis – it is easy and inexpensive
 Skills/competency model – it matches the skills and competencies needed for each
job with those the employees inside the organization
o Factors which is needed for a particular position and the required task in
such position:
 Replacement chart – It is use to identify the vacancies in superior positions and the
possibility of filling those vacancies current employees through the horizontal and
vertical movement.

 Succession planning – traces the potential replacement to key positions and hones
them to become successful future leaders.
o Long term process since grooming a successor and tails the training,
mentoring, and coaching of the potential employee until the time that
he/she assumes the key position.
o It is disadvantageous and expensive to hone a potential leader who may
decide to leave the organization.
  Staffing tables
 Markov analysis – It forecast the internal movement from 1 year to the next year.
o The percentage of the employee who remain in their jobs, these are the,
promoted, transferred, dismissed, or resigned.
o It is very useful in identifying how many are likely to be promoted so that
the organization can prepare for possible vacancies.

Concentration
 Forecasting HR Demand
 Trend Analysis – It predicts the demand for personnel base on the past trends over a
number of years between an operational index.
 Ex: University will depend on the number of students who will enroll to predict
the number of faculty.
 Trend analysis depends on effectiveness and efficiency. Effective means they are
doing their job well. Not efficient means they are effective because they finish
their job but they are inefficient because the quantity of they work is not many
or didn’t reach the target in a day.
 Ratio Analysis
 Ex: In 2014 the company has an actual sales of P30 million with 150 employees.
In 2015, the company predicts sales of P40 million. How many employees are
needed?

 Cross multiply then divide so that the x is left on one side)

 To get the % of workforce = (level) actual headcount divided by (total) actual

headcount
 How employees are being added to different position?

(Total employee x Percentage of workforce = Prediction number of employee)

 Regression Analysis
 Delphi Method – this method uses a panel of expert to project the number of personnel
through the various factors such as economics, demographics, and the technological
and social conditions of the environment. There are also internal factors such as
educational background, experiences and the productivity of work force.
 In dolphin method we are using middle person. Middle person is to gather
the data of each members of the panel who are assign to make the man
power forecast. Middle person role is to summarize the comments of the
panel and the process continuous until the consensus is reach.
 Delphi Method is an idea of judgment came from panel of expert and
sources of information are verified before they are use during the
deliberation.
 Advantage – we are eliminating the bias judgment.
 It is being done anonymously
 Facilitator – seeks the individual assessment from a pool of expert.
o
 Experts – respond to the request, receive feedback and revise their responses.
 Facilitator – compiles the responses and sends a revised set of questions to each
expert. Several cycles of feedback may needed.
 Final Report – facilitators produces report on experts’ responses, noting key
outlets.

 Nominal Group Technique – uses the panel of expert but mostly this are the line
managers who discuss, meet face to face and project the HR Demand.
 Advantage – the panel of expert will strive very hard to come up with an
accurate forecast and the assessment that can lead to solving organizational
issues.
 Also assisting by Middle person and panel of expert
 Generating Ideas – Participants given to reflect on summary of previous
findings, making own notes.
 Recording Ideas – Participants’ ideas recorded on the flip-chart
  Discussing Ideas – By consensus, group merges all ideas into just ten positive
exemplars (good practice) and ten negative exemplars (poor practice).
 Ranking Ideas – For each exemplar list, participants individually rank on paper
order of importance of these exemplars. Rank order scores are then calculated.

C. Decision Analysis – finding the differences between your forecasted HR Supply and Demand
and what would be the action plan.
 This will be the final stage
 Risk: When HRP shows a surplus (having an excess man power) of jobholders,
organization may use terminations, work sharing, layoffs, or demotions or rely on
attrition (A gradual reduction of employees through resignations, retirements or deaths)
to achieve workforce balance.

D. Action Plan/Implementation of the Program

a. Labor Equilibrium – equal (walang tatanggalin)
b. Labor Surplus – sobra
 Possible solutions:
o Attrition
o Early Retirement
o Hiring Freeze
o Layoff
c. Labor Shortage – action plan ( if kulang ng tao, mag hahire ng additional man power)