Name of Reporter : MARICAR C.

BANDEJES
Course : Doctor of Education Major in Educational Management
Subject : ED-315 STRATEGIC MANAGEMENT
Topic : CHAPTER 3: HR PLANNING
Professor : DR. ELMER V. TENA
Date of Report : OCTOBER 9, 2022
Day/Time : Sunday 8:00 – 11:00 PM
Semester : First Semester School Year 2022-2023

CHAPTER 3: HR PLANNING

STEP 4. ESTABLISHING OBJECTIVES

 After forecasting HR demand and supply, HR objectives are developed. They are, or
should be, a natural outcome of the established corporate goals. The importance of an
organization’s objectives for HR planning seems difficult to deny, thus, it is not
surprising that more and more firms are establishing human resource objectives and
policies.

STEP 5. DESIGNING AND IMPLEMENTING ACTION PLANS: MAKING WORKFORCE

ADJUSTMENTS
 The next step in the process of HR planning is Action Planning and Program
Implementation which is an extremely important extension of all previous activities.
 After an organization’s needs are assessed, action planning must be developed to
serve those needs.
 Action plans can be designed to increase the supply of the right employees in the
organization (if the forecasts showed that demand exceeded supply), or to decrease the
number of current employees (if the forecasts showed that supply exceeded demand).
Consideration will be given here to managing a surplus of employees, since managing a
shortage is dealt via recruitment and training.
 There are a variety of ways that a surplus of workers can be managed within an HR
plan. But regardless of the means the actions are difficult because they require that
some employees be removed from the organization. Alternatives that organizations can
use to manage a HR surplus include: downsizing, attrition, early retirements/buyouts,
layoffs and outplacements.

1. DOWNSIZING
- is reducing the size of an organizational workforce. A wave of merger and acquisition
activity in the US has often left the new, combined companies with redundant
departments, plants, and people.

- another cause for downsizing is the need to meet foreign competition and cut costs.
Studies of the effects of downsizing show mixed results.

- cost control is most often the reason given for downsizing, but the relationship
between downsizing and increases in profitability appears questionable.

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 - lastly, some studies even show a negative or at best indifferent effect on quality,
productivity and morale.

2. ATTRITION AND HIRING FREEZE

- through attrition, individuals who quit, die or retire are not replaced. With this
approach, no one is cut of a job, but those who remain must handle the same workload
with fewer people. This method is usually received with better employee understanding
than many of the other methods.

3. EARLY RETIREMENT/BUYOUTS
- early retirement is a means of encouraging more senior workers to leave the
organization early. To provide this voluntary incentive, employees make additional
payments to employees so that they will not be penalized too much economically until
their pensions and Social Security benefits take effect. Such voluntary termination
programs or buyouts entice an employee to quit with financial incentives. They are
widely viewed as ways to accomplish workforce reduction without the general ugliness
of layoffs and individual firings.

4. LAYOFFS
- occur when employees are put on unpaid leaves of absence. If business
improves for the employer, then employees can be called back to work. Layoffs may be
an appropriate strategy to follow if there is a temporary downturn in an industry.

5. OUTPLACEMENT
- is a group of services provided to displace employees to give them support and
assistance.
- often used with those involuntarily removed because of plant closings or
elimination of departments.
- outplacement services typically include personal career counselling, resume
preparation and typing services, interviewing workshops, and referral assistance. Other
aids include retraining for different jobs, establishing on-site career centers, and
contacting other employers for job placement possibilities.
- typically, outplacement is done using outside firms that specialize in providing
such assistance.

 STEP 6. CONTROLLING AND EVALUATING HR PROGRAMS

-Control and evaluation of HR action plans are important to manage people
effectively. Efforts in this area are clearly aimed at quantifying the value of human
resources. Evaluation is an important process for determining the effectiveness of HR
plans. Possible criteria for evaluating HR planning include measuring:
1. Actual staffing levels against established staffing requirements
2. Productivity levels against established goals
3. Actual personnel flow rates against desired rates.
4. Programmes implemented against action plans
5. Program results against expected outcomes
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 6. Labor and program costs against budgets
7. Ratios of program results to program costs

HRP AND STRATEGIC ORGANIZATIONAL PLANNING

 A company succeeds in large measure because of the skill, creativity and dedication of
its managers and employees.

 Human resource planning is the process of making sure the company has the right
people in the right positions or those who possess the skills, experience and spirit of
teamwork required for the company to grow and effectively compete.
1. ASSURING ADEQUATE STAFF LEVELS

– a primary function of human resources planning is making certain that various

company departments have sufficient staff to complete all the work required to meet the
organizations goals. The business owner also must make sure that the workload is
balanced—no individual or department should be so overburdened with work that it is
impossible to complete all assigned tasks on time. The results of this type of poor
human resource planning include heightened stress level for employees, burnout,
missing deadlines and mistakes and errors. All of these outcomes negatively affect
productivity and may result in higher employee turnover.

2. MATCHING SKILLS TO CURRENT ORGANIZATIONAL NEEDS

- as the company grows, the management function becomes more complex.

Instead of everyone reporting to the owner, layers are added to the organization
structure. The management team must supervise additional employees. Addressing
these changing needs requires the business owner to determine if the current
management team has the necessary experience and skills to succeed in a larger, more
structured, more complex organization. If he identifies gaps, he creates new positions
and hires new people.

3. BUILDING AN ETHICAL BUSINESS CULTURE

- a business often creates a code of conduct for employees to follow which

defines what is considered ethical such as good like conduct in dealing with customers,
suppliers and co-workers.

- the aim of building an ethical culture can be furthered by bringing on new hires
who have a track record of high ethical behavior.

- this may require a more in-depth interviewing process in which the hiring
manager asks candidates how they have dealt with ethical dilemmas on the job. Just
because a sales manager has track record of meeting or exceeding quotas in past
positions, he may not live up to the ethical standards the owner wants to set for his
organization.

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 4. FINDING TEAM PLAYERS

- a critical but difficult aspect of human resource planning is determining whether

prospective new hires will fit in with existing members of the team. The owner wants to
foster a harmonious work environment characterized by open and honest
communication, so the more specifically he can articulate the corporate culture he seeks
to create, the better the chances that candidates for new positions can articulate why
they believe they would fit in.

5. IDENTIFYING EMPLOYEES READY FOR ADVANCEMENT

- Human resource planning should include creating a path for advancement for
each employee. The business owner must assess which employees are ready to move
up in the organization and which might need more seasoning in their current positions.
He wants to make sure his organization is developing its own-in house managerial
talent, and he may provide education and training opportunities to move the employees
down the path toward taking on additional responsibilities.

Prepared by:
MARICAR C. BANDEJES
EdD. Student

Submitted to:
DR. ELMER V. TENA
Professor

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