HUMAN RESOURCE

PLANNING
HUMAN RESOURCE PLANNING

The process of analyzing and identifying the need

for and availability of Human Resources so that the
Organization can meet its objectives.

O
r

The Process of determining an Organizations human

resources needs.
PURPOSE OF HR PLANNING

To maximize the use of Human

1 Resources and ensure their ongoing
development.

To secure the Production Capacity

2 required to support Organizational
objectives.

To synchronize human resources

3 activities with the organizational
objectives.

To increase the organizations

4 productivity.
HR PLANNING PROCESS
Organizational
Objectives &
Strategies

Analyze
Scanning the
Internal
External
inventory of HR
Environment
Capabilities

Forecasting

Organizational Survey of
Need for People
People Available

HR Strategies &
Plans
a. LINKING ORGANIZATIONAL STRATEGY
TO THE EMPLOYMENT PLANNING

Determining
what business
Mission in the
organization will be
in.
Objective Setting goals and
and Goal Objectives

Determining how
goals and
Strategy objectives will be
attained
Determining what
jobs need to
Structure
be done and by
whom
Matching skills, knowledge, and

People
abilities to required
jobs
 HUMAN RESOUCE
PLANNING PROCESS
b. ENVIRONMENTAL
SCANNING:
Process of studying the environment of the
organization to pinpoint opportunities and threats.
 HUMAN RESOUCE
PLANNING PROCESS Cont . . .
c. Internal Assessment of the Organizational
Workforce :

Analyzing the jobs that will need to be done and the skills of
people currently available to do them is the next part of HR
planning.

i. Auditing Jobs and

Skills
C. Internal
Assessment of the
Organizational
Workforce
ii. Organizational
Capabilities
Inventory
 HUMAN RESOUCE
PLANNING PROCESS Cont . . .

i. Auditing Jobs and Skills :

Following questions are addressed during internal assessment

What jobs exist now?

How many individuals are performing each

job?

How essential is each job?

What jobs will be needed in future?

 HUMAN RESOUCE
PLANNING PROCESS Cont . . .

ii. Organizational Capabilities

Inventory:
By Utilizing different databases in an HRIS ,it is possible to
identify the employees SKAS. planners can use these
inventories to determine long term needs for staffing and HR
development.

Human Resource Information Systems

(HRIS):
Database systems containing the records and qualifications of
each employee that can be accessed to facilitate employment
planning decisions.
 HUMAN RESOURCE
PLANNING PROCESS Cont . . .
d.
Forecasting
Forecasting : of Information from the Past and Present
is the use
to identify expected future conditions.

FORECASTIN
G

i. Forecasting ii. Forecasting

Demand for Supply for
Human Human
Resources Resources
 HUMAN RESOURCE
PLANNING PROCESS Cont . . .
i. Forecasting Demand for Human
Resources:
1. Organization-wide estimate for total demand.
2. Unit breakdown for specific skill needs by number and type of
employee.
Develop decision rules (fill rates) for positions to be filled

internally and externally.

Develop additional decision rules for positions impacted by
the
chain effects of internal promotions and transfers.
 HUMAN RESOURCE
PLANNING PROCESS Cont . . .

ii. Forecasting Supply for

Human Resources:

1. Forecasting
External HR
Supply

2. Forecasting
Internal HR
Supply
 HUMAN RESOURCE
PLANNING PROCESS Cont . . .

1. Forecasting External HR Supply

The Following factors affect the External HR

Supply.
Individuals Demographics
Technological Developments and Shifts
Actions of Competing Employers
Government Regulations and Pressures
 HUMAN RESOURCE
PLANNING PROCESS Cont . . .
1. Forecasting Internal HR Supply:

a. Through Promotions, Lateral Moves, and

Terminations.
b. Succession Analysis:
A method used to forecast the supply of people for certain
positions
Replacement Charts (Succession Plans)
Transition Matrix (Markov Matrix)
 HUMAN RESOURCE
PLANNING PROCESS Cont . . .

e. Managing Human Resource Surplus or

Shortage:
i. WORKFORCE REALIGNMENT:

Downsizing, Rightsizing, and Reduction in Force

(RIF) all mean reducing the number of employees in an
organization.
 HUMAN RESOURCE
PLANNING PROCESS Cont . . .
f. HR Strategies and Plan :
i. The means used to anticipate and manage the supply of
and demand for human resources.
Provide overall direction for the way in which HR
activities will be developed and managed.

Human
Overall
Resources HR
Strategic
Strategic Activities
Plan
Plan
Human Resources Plan Table