CHAPTER

2
strategic human
RESOURCE PLANNING
Discussants:
Jiempol Alcoy
Baby Jean Armenton
 Introduction

Strategic Human Resource Planning is a

proactive approach to managing human
capital that helps companies achieve
their business objectives by ensuring
they have the right talent, in the
right place, at the right time.
Human resource Planning (HRP)
• It is the process of systematically reviewing
human resource requirements to ensure
that the number of employees matches the
required skills.
Strategic planning
• It is the determination of overall
organizational purpose and goals and how
they are to be achieved.
 two important
components of hrp

Requirement availability
Determining the number When employee
requirements have been
and types of employees
analyzed, the firm
needed. The skills has to
determines whether there
be determined and is a surplus or shortage of
matched with the plan manpower. If there is a
• External
operations surplus, ways must be
Sources instituted to reduce the
• Internal number of employees.
 Systematic Forecasting of
Manpower Needs
• On the basis of business conditions
and forecasts, manpower needs are
Aspects of
Human planned and monitored closely.
Resource
Planning
Performance Management
• Analyzing, improving and
monitoring the performance of each
employee and of the organization
as a whole.
 Career Management
• Determining, planning, and
monitoring the career aspiration of
Aspects of
Human each individual in the organization
Resource and developing them for improved
Planning productivity.
Management Development
• Assessing and determining the
developmental needs managers for
future succession requirements.
Elements of HR planning

1.Systematic Forecasting of
Manpower Needs
2.Performance Management
3.Career Management
4.Management Development
ADVANTAGES IN USING THE Elements of HR
planning
• Company can be better assisted in attaining its goals
and objectives.
• It helps the company determine its manpower needs
and methods.
• Effective means of planning the development and
growth of the employees.
• Assist placing employees properly in jobs.
• Assist the company to attract and retain better
qualified employees.
 Five steps to human resource planning

Determining the workload inputs

based on the corporate goals and
objectives
Several Factors that should be
considered in determining work
• Business Development and
inputs:
• Changes in Plans and Produc
Assumptions
• New Products Lines
• Corporate Planning
• Mergers and Consolidations
• Economic Forecasts
Five steps to human resource planning

Studying the jobs in the company

and writing the job description
and job specifications.

Forecasting of manpower needs

• Number and skills of people required for
the work.
• Planned and logical method
 Five steps to human resource planning

The net result of this operation is that

you either find:

• Enough manpower
• Excess in the number of available manpower but lacking
the skills required.
• The number of available manpower is insufficient, and
skills are inadequate to meet the needs.
Five steps to human resource planning

Inventory of manpower
• List of information about the
employees in an organization.

Improvement Plans
 planning techniques in hr
management

Skills Ratio Cascade

Breaking down an
Inventory Analysis Approach
Listing of all Uses historical organization's
the skills data to predict strategic goals
possessed by future staffing from the
the workforce. needs. executive level
down to individual
employees.
 planning techniques in hr
management

Replacement Commitment Successor

Approach Planning Planning
Identifying Organizations
Approach Approach
Proactively
actively design and
potential identifying and
implement practices
candidates within developing high-
aimed at fostering a
an organization strong sense of potential
who can commitment among employees within
immediately step their employees. an organization to
 common weaknesses in human resource
planning

1.Over-
Planning
• A plan is likely to fail through an inherent weakness of
having covered too many aspects of personnel
management.
2. Technique
• Use
Overloadof many techniques sometimes can lead to the
gathering of much information.
3. Bias of the
Quantitative
• Overreliance on numerical data and metrics when
making decisions, neglecting important qualitative
 common weaknesses in human resource
planning
4. Isolation of the
• Situation where the HR planning team operates in a
Planners
disconnected manner from the rest of the organization.
5. Isolation from Organizational
• Situation where HR practices, policies, or initiatives are
Objectives
developed and implemented without being aligned with
the overall goals and strategic direction of the
6. Lack of Line
organization.
• Situation where
Supervisors’ the opinions, feedback, and perspectives
Input
of direct supervisors (line managers) are not actively
sought or considered by the HR department when
 Four basic terms of
manpower forecasting

Long Term Cyclical

Trend Variations
Usually done for a Reasonable and
period of the years or predictable
more depending on movements that occur
the company over a period of one
operations and year or more.
customer demands.
 Four basic terms of
manpower forecasting

Seasonal Random
Variations in a
Fluctuations Variations
Unpredictable
company's workforce fluctuations in
needs throughout the employee
year, driven by performance,
changes in demand behaviors, or
based on seasonal outcomes that occur
factors, leading to due to chance factors.
adjustments in hiring.
human resource forecasting techniques
The Zero-Base Forecasting
Techniques
• Uses the organizations current level
of employment as the starting point
for determining future staffing needs.

The Bottom-Up
Approach
• Used the progression upward methods
from the lower organization units to
ultimately provide the aggregate forecast
human resource forecasting techniques
Use of Predictor
Variables
• Uses the past employment levels to
predict future requirements.

Simulatio
n • Technique for testing of alternatives
on mathematical models representing
the real world situation.
 the important elements in strategic
human resource planning
1.Organizational
• Human resource planning should be tied up with the
Goals
organizational strategic goals.
2. Human Resource Forecast
• Forecasting of human resource needs based on business
strategies, production plans, and the organizations’
operating methods.
3. Employee Information
• Maintaining accurate information concerning the
composition, assignments and capabilities of the current
 the important elements in strategic
human resource planning

4. Human Resource Availability

Projections
• Estimating the number of current employees and those
that could be available in the furure.

5. Analyzing and Evaluating Human

• Comparing
Resource Gapswhat is needed with what is available in
terms of numbers, mix, skills, and technologies.
This type of analysis should help management address
issues such as:
• Are there imbalances developing between projected
human resource needs and availability?
• What is the effect of current productivity trends and pay
rates on the workforce levels and costs?
• Do turnover problems exit in certain jobs or age levels?
• Are there problems of career blockage and
absolescence.
Strategy Evaluation and
Control
• This is the final component of strategic planning process.
It monitors the effectiveness of both strategy and the
implementation process.
 human resource role in
providing competitive
advantage

Human resource practices are

develop to implement strategies
that will make the organization
more effective and will answer the
company’s competitive
advantage. HR can provide
strategic competitive advantage in
two ways:
Emergent
• Strategies that evolve from the grass
Strategies
roots of the organization and can be
thought of as what the organization
actually do.

Intended
Strategies
• Results of rational decision-making by
the top management as they develop
strategic plans.
 human resource information system (hris)

• Organized approach to relevant and timely information

on which to base human resource decisions. An effective
HRIS is crucial to sound human resource decision
making. It is design to provide information that is
SMART.
Systematic
• Information must be systematically arranged and
contain the needed data.
Management-
Oriented
• The information are essential tools for effective
manpower planning, retention, development, and
Applicable
• The data and information stored in file must be
applicable in making human resource decisions.
Results-
Irrelevant data must be discarded.
• The results from the information and decisions derived
Oriented
thereat must be both acceptable to management and
the employees concern.
Time Bound
• Setting clear deadlines or specific timeframes for
achieving goals or completing tasks.

HRIS also produces and forecasts several important

reports related to business operation:
Routine Reports

• HR data summarized on scheduled

bases.

Exception
• This information may contain
Reports
confidential data that are available
only for managerial decision-making
and need immediate attention.
On Demand Reports
• Ability to generate customized reports
in real-time based on specific criteria
selected by the user.

Manpower
• This may cover increase or decrease
Forecast
in manpower requirements due to
seasonal demand or increase
customer orders.
 SOFTWARE APPLICATION FOR HRM
• Suite of applications used to manage all aspects of
employee lifecycle within a company, including
recruitment, onboarding, performance evaluation, payroll,
benefits, and employee data, essentially automating and
streamlining
Major Human Resource HR processes across the organization.
• Staffing
Functions are:Applications- Common applications used
in the area of staffing include the following:
a. Applicant recruitment and tracking
b. DOLE reporting requirements
c. Developing a master employee data
base
 SOFTWARE APPLICATION FOR HRM
• Human Resource Planning Applications- This involves
company specific applications in determining future
employee turnover, growth rate and promotion patterns
and other personal movements. This include the following
applications:
a. Work-Force Profile Analysis- Refers to work-
force labor supply and demand analysis or work-force
profile analysis review.
b. Work-Force Dynamic Analysis- Number of new
hires, transfer, promotions, number still needed in the
future.
c. Human Resource Planning for Decision-
 SOFTWARE APPLICATION FOR HRM

d. Performance Management Applications-

Employee performance ratings; disciplinary actions,
work-rule violations and daily productivity index.
e. Training and Development Applications- To
track down the need for employees training programs,
courses to attend, certified skills and educational
applications.
f. Compensation and Benefits Applications-
These includes payroll, job evaluation salary planning
and analysis for executive compensation, planning
thank
YOU
 E-ASSESSMENT
Directions: 30 seconds each
question. Write your answer in a ¼
sheet of paper.
Test 1 (1-10): T or F
Test 2 (11-20): Multiple Choice
 Test 1: true or false

1. Strategic planning is the

determination of the overall
organization purpose and goals and
how they are to be achieved.
2. Human Resource Planning is the
process of systematically reviewing
human resource requirements to
ensure that the number of
employees match the required skills.
 Test 1: true or false

3. The two important components of

human resource planning are
requirement and forecasting.
4. Long term forecasting refers to
reasonable predictable movements
that occur over period of one year or
more.
 Test 1: true or false

5. Random Variation is an occasion

where is no special pattern and is
quite difficult to predict or
determine.
6. The final component to the strategic
management process is that of
strategy evaluation and control.
 Test 1: true or false

7. Intended strategies consist of

strategies that evolve from the
grass roots of the organization and
can be thought of as what the
organizations actually do.
8. Emergent strategies are the results
of the rational decision making by
top management as they develop
strategic plans.
 Test 1: true or false

9. Routine reports are human resource

data summarized on schedule basis
like current manpower status,
regular employees, contractual
employees on a regular payroll.
10.On demand reports are reports for
analysis. This may pertain to
productivity index, individual
performance records and other
 Test 2: Multiple Choice

1. It is the process of systematically

reviewing human resource
requirements to ensure that the
number of employees match the
required skills.
a. Strategic Planning
b. Human Resource Planning
c. Curriculum Planning
d. Short-Term Planning
 Test 2: Multiple Choice

2. The determination of the overall

organization purpose and goals and
how they are to be achieved.
a. Strategic Planning
b. Human Resource Planning
c. Curriculum Planning
d. Successor Planning
 Test 2: Multiple Choice

3. A planning technique approach

which involves the listing of all the
skills possessed by the workforce
which are made to relate to the
requirements of the organization.
a. Skills Inventory
b. Human Resource Planning
c. Curriculum Planning
d. Short-Term Planning
 Test 2: Multiple Choice

4. This technique wherein personnel

who are promotable to the high
position are identified together with
their back up or understand.
a. Skills Inventory
b. Ratio Analysis
c. Cascade Approach
d. Replacement Approach
 Test 2: Multiple Choice
5. A plan is likely to fail through an
inherent weakness of having
covered too many aspects of
personnel management at the very
early stage of Human Resource
Planning in the firm or government
office.
a. Technique over-load
b. Over-Planning
c. Bias for Quantitative
 Test 2: Multiple Choice

6. The use of so many techniques

sometimes leads to the gathering of
so much information.
a. Technique over-load
b. Over-Planning
c. Bias for Quantitative
d. Isolation of Planners
 Test 2: Multiple Choice

7. Is it the process of combining the

factors for attaining a changed
situation in the establishment of
condition in the physical or social
environment?
a. Controlling
b. Planning
c. Directing
d. Organizing
 Test 2: Multiple Choice

8. An aspect of Human Resource

Planning which states the basis of
business conditions and forecasts;
manpower needs are planned and
monitored closely.
a. Performance Management
b. Systematic Forecasting of
Manpower Needs
c. Career Management
 Test 2: Multiple Choice

9. An aspect of Human Resource

Planning of analyzing, improving
and monitoring the performance of
each employee and of the
organization as a whole.
a. Management Development
b. Performance Management
c. Career Management
d. Systematic Forecasting of
 Test 2: Multiple Choice

10.An aspect of Human Resource

Planning of assessing and
determining the development needs
of managers for future succession
requirements.
a. Performance Management
b. Management Development
c. Career Management
d. Systematic Forecasting of
 Bonus Points

Your score in Family Feud

Activity!!!