Human Resource Management

Gaining A Competitive Advantage

THIRTEEN EDITION
Raymond Noe, John Hollenbeck,
Barry Gerhart, Patrick Wright

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No reproduction or further distribution permitted without the prior written consent of McGraw Hill.
 Chapter 3
Planning for Human Resources
Learning Objectives:
1. How to align a company’s strategic direction with its
human resource planning.
2. Scan the internal environment –Demand and Supply
3. Methods and techniques in HR planning
Demand Forecasting: Statical Analysis
Trend analysis Regression analysis
Manpower requirements from the last 13 years and to the next 7 years:
Relationship between assembly line workers and technicians hired

Ratio Analysis: Number of Patients Per Nurse (10 / 01 Ratio)

Demand Forecasting: Judgmental Method
 Forecasting – Goal Setting – Strategic HR Planning
External External

Internal
Options for Reducing an Expected Options for Avoiding an Expected
Labor Surplus Labor Shortage

• Downsizing • Overtime
• Pay Reduction • Temporary employees Fast to execute
• Demotions Fast to execute • Outsourcing and revocability
• Transfers • Retained transfers
• Work Sharing • Turnover reductions Slow to execute
• Hiring Freeze • New external hires and low
• Natural Attrition • Technological innovation revocability
• Early Retirement Slow to execute
• Re-Skilling
 Step 1: Determine the Organizational Vision-Mission

The Wings Hotel Goal: Increase in sales capacity from 70% to 80%

Key Performance Indicators (KPIs): Goal Setting

– Quality of hotel/restaurant services & food (Customer Satisfaction)
– Cost Reduction (accidents, wastages)
– On time delivery (cleaning, services)
– Employees’ Satisfaction (low turnover rate)
– Sales and Profit (increase of 10%)
Step 2: Scan the Internal Environment
Demand and Supply Analysis

2019 – Not in organization 2023 – Chambermaids

• 1 Waiter • 2 moved as Waiters
• 1 Receptionist • 1 Remained from 2019
• 3 Chambermaids • 3 New Hires
 Step 3: Set HR Strategic Goals in alignment with
business goals

Business Daily Objectives HR Goals and Strategies

Reduce costs – Cost Efficiency • Decrease turnover/increase retention

 Step 4: Formulate specific actions to hit those goals

HR Goals HR Action Plan HR Implementation

Strategies
Decrease Conduct employee satisfaction • If few are satisfied with
turnover/increase surveys. Include questions like: compensation,
retention • What’s the most difficult part of • talk to management
your job?

• Are you satisfied with the

compensation program?
 Step 5: Measure

HR HR Action Plan HR Implementation HR Measurement

Goals Strategies

Decrease Conduct employee Implement specific After implementing tactics,

turnover satisfaction surveys
and
increase • Pulse of your
retention employees
retention-reducing • Conduct a new survey
tactics. • Compare
• Adjust tactics
Ex. Improve
compensation package
 Organizational Mission
HR Planning Supports and Strategic Plans

Supply & Demand Strategic Human Planning

Resource Planning

Internal - Recruitment
External - Staffing
Sources Selection

On-Boarding Orientation Compensation & Benefits

Training & Development Health & Safety

Find the Gaps using Data
Analytics Career Development Employee Satisfaction
Determine HR Needs & Costs Performance Management Employee Relations
 Questions

Scenario #2 - Recruitment and Selection

• MEMPIN, MARQUISE
• ONG, JERIC
• QUIJANO, CAMILLE
• SUABERON, GIULIAN RAFAEL