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HRM - Chapter 1 (Human Resource Planning)
HRM - Chapter 1 (Human Resource Planning)
- HRM is concerned with how employees are employed and managed in an organization.
- Central unit in any organization
5 FUNCTIONS
A. ENVIRONMENTAL SCANNING
- Assesses the factors that affect the labor market as well as the ability of the company to
respond to these factors
- Look at the organizations SWOT
B. FORECASTING HR REQUIREMENTS
- This is making predictions based on critical factors to come up with a key decision.
- There is a need to assess how many regular / full time / part time/ temporary workers.
- The External Environment is evaluated on the basis of the average no. of graduates the
courses per year as well as the average age of the labor force
b) Forecasting Internal Supply - there are actuarial losses which are unavoidable.
Actuarial Losses - refer to lift events tike death, disability & retirement.
FORECASTING HR DEMAND
(QUANTITATIVE METHODS)
1) TREND ANALYSIS - it predicts demand for personnel based on past trends over a number of
years between an operational index.
2) RATIO ANALYSIS - it predicts HR demand based on ratios between selected factors and the
number of employees needed. It may predict inaccurate sales growth
(QUANLITATIVE METHODS)
1) DELPHI METHOD
- Uses a panel of experts to project the number of personnel through various factors.
- Uses a "MIDDLE PERSON" to gather the data of each member summarize the comments of
panel.
- Time consuming & subjective. Some experts can’t help but disclose their judgments to
others.
3) SCENARIO ANALYSIS
- There is one caveat: the organization must keep on monitoring factors that influence the
scenarios created.
C. DECISION ANALYSIS
- Gap Analysis: finding the difference between the forecasted HR Supply & HR Demand.
D. ACTION PLAN/ IMPLEMENTATION OF THE PROGRAM - the organization is now ready to identify
the strategies for its implementation.
A. Labor Equilibrium - during a status quo, current employees are trained further in their
fields. There are also instances when employees are transferred from one department to
another.
B. Labor Surplus - the company has several options when there is a labor surplus.
3) Outsource the Work: A company may use a third party and let the latter gets its own
people to do the tasks such as customer service.
This can be solved by external recruitment. Once done, the organization prepares a budget and
provides a working plan on how to implement the chosen strategy.