Chapter 2

Strategic Human Resource

Planning
Human Resource Planning (HRP)
- is the process of systematically reviewing human
resource requirements to ensure that the number
of the employees matches the required skills.
 Strategic Planning
- Is the determination of the overall organizational
purpose and goals and how they are to be achieved.
2 important components of human
resource planning:
 Requirement- forecasting human requirement
involves the determining the number and types of
employees needed.

b. Availability- when employee requirements have

been analyzed, the firm determines whether there is
a surplus or shortage of manpower.
 Aspects of human resource planning:
1. Systematic forecasting of manpower
needs
- on the basis of business condition and
forecasts, manpower needs are planned and
monitored closely.
 Aspects of human resource planning:
2. Performance management
- analyzing, improving and monitoring the
performance of each employee and of the
organization as a whole.
 Aspects of human resource planning:
3. Career management
- determining, planning and monitoring the
career aspirations of each individual in the
organization and developing them for improve
productivity.
 Aspects of human resource planning:
4. Management Development
- assessing and determining the developmental
needs of managers for future succession
requirements.
 5 steps to human resource planning:

1. Determining the workload inputs base on the

corporate goals and objectives.
2. Studying the jobs in the company and writing the
job description and job specifications.
3. Forecasting of manpower needs.
4. Inventory of manpower.
5. Improvement plans.
 4 basic terms of manpower:

1. Long term trend- is usually done for a period of five

years or more depending on the company
operations and customer demands.
2. Cyclical variations- refers to reasonable and
predictable movements that occur over a period of
one year or more.
3. Seasonal variations- this is a reasonable prediction
change over a period of one year.
4. Random variations- this is one occasion where
there is no special pattern and is quite difficult to
predict or determine.
 The important elements in strategic human
resource planning:

1. Organizational goals- the human resource planning process

should be tied up with the organizational strategic goals.
2. Human resource forecast- process is the forecasting of human
resource needs based on the business strategies, production plans,
and the various indicators of change in technology and the
organization’s operating methods.
3. Employee information- process is maintaining accurate
information concerning the composition, assignments, and the
capabilities of the current workforce.
4. Human resource availability projections- process is
estimating the number of current employees and those that could
be available in the future.
5. Analyzing and evaluating human resource gaps- process is
comparing what is needed when what is available in terms of
numbers, mix, skills, and technologies.
 Human resource role in providing
competitive advantage

a. Emergent strategies- consist of strategies that

evolve from the grassroots of the organization and
can be thought of as what the organization actually
do.
b. Intended strategies- are the results of the
rational decision making by top management as
they develop strategic plans. It is a pattern of plans
that integrates an organization’s major goals,
policies, and action sequences into a cohesive
whole.
Human resource information system(HRIS)

HRIS is any organized approach to obtaining relevant

and timely information in which to base human
resource decision. An effective HRIS is crucial to
sound human resource decision making. It is designed
to provide information that is- SMART
a. Systematic- information must be systematically
arranged and contain the needed data.
b. Management oriented- the data and information
are essential tools for effective manpower planning,
retention, development and separation of
employees.
c. Applicable- the data and information stored in file
must be applicable in meeting human resource
decision. A relevant data must be discarded.
d. Result- oriented- the results from the information
and the decisions derived thereat must be acceptable
to management and the employees concern.
e. Time bound- relevant resource information are
necessary for effective decision making. The need for
timely decisions are crucial to the effective
management of human resources.
 An effective HRIS also produces and forecasts several
important reports related to business operations

a. Routine reports- these are human resource data

summarized on schedule basis like current
manpower status, regular employees, contractual
employees, supervisor and managerial employees
on a regular payroll.
b. Exception report- this information may contain
confidential data that are available only for
managerial decision making and needs
immediate attention.
c. On demand reports- this may pertain to
productivity index, individual performance record,
and other information that may lead to downsizing
and other personal action.
d. Manpower forecasts- applies to predictive
models based on specific situation. This may cover
increase or decrease to manpower requirements due
to seasonal demands or increase in customer orders.
 Software applications for HRM

1. Staffing applications- common applications used

in the area of staffing include the following:
a. applicant recruiting and tracking
b. DOLE reporting requirements
c. developing a master employee data base
d. staffing application for decision making
2. Human resource planning- includes the
following applications:
a. work-force profile analysis- work-force labor
supply and demand analysis or work force profile
analysis review.
b. work-force dynamic analysis- number of new
hires, transfers and promotions, number still needed
in the future and those employees who are available
to fill up job openings in the future.
c. Human resource planning for decision
making- this application pertains to information
about employees who are about to retire, job
classification of employees for promotions and those
departments that lack basic skills for the job.
d. Performance management application-
employee performance ratings, disciplinary actions,
work rule violations and the daily productivity index
could now be stored in computer data base as bases
for management decisions.
e. Training and development applications- these
are used primarily to track down the need for
employees training programs, courses to attend,
certified skills, and educational qualifications.
f. Compensation and benefits applications- this
include payroll, job evaluation, salary survey, salary
planning and analysis, executive compensation
planning and management benefits.