CHAPTER 3

HUMAN RESOURCE
PLANNING
Lecturer
Dang Thanh Thuy, MBA
 Learning outcomes

1. Explain the main techniques used in

employment planning and forecasting

2. Know how to match need and supply

3. Understand the Recruiting yield pyramid

 WHAT IS PLANNING?

 Planning - a primary
managerial acti vity that
involves:
 Defining the organization’s
goals
 Establishing an overall
strategy for achieving
those goals
 Developing plans for
organizational work
activities
WHAT IS HR PLANNING?
 HUMAN RESOURCE PLANNING

The process of deciding what positions the

company has to fill and how to fill them
HUMAN RESOURCE PLANNING

Right
positio
n
Right Right
person time

HR
Planning
LINKING EMPLOYER’S STRATEGY TO PLANS
ORGANIZATIONAL GOAL

Subgoal 1 Subgoal 2 Subgoal 5

Subgoal 4
Subgoal 3

Strategy

Tactics
PERSONNEL SHORTAGE

PERSONNEL SURPLUS
HUMAN RESOURCE PLANNING PROCESS

Matching
need and
HR needs supply

1 2 3
Supply of
candidates
 STEP 1: FORECASTING HR NEEDS

Forecast
Techniques

Trends Ratio Computer Managerial

Scatter plot
analysis analysis forecast judgment
 STEP 1: FORECASTING HR NEEDS

1. Trend analysis
The study of a firm’s past employment needs over a
period of years to predict future needs

Year 2018 2019 2020 2021 2022

Employment          
need 50 60 72 86,4 ?
STEP 1: FORECASTING HR NEEDS

AVERAGE POINT

Average Average
increase (%) reduction (%)
 STEP 1: FORECASTING HR NEEDS

Average increase in every year (over 4 years) = 20%

Year 2018 2019 2020 2021 2022
Employment          
need 50 60 72 86,4 ?

20% 20% 20% 20%

 STEP 1: FORECASTING HR NEEDS

2. Rati o analysis
 A forecasting technique for determining future staff
needs by using ratios between a causal factor(sales
volumes) and the number of employees needed
 Assumes that the relationship between the causal
factor and staffi ng needs is constant
 RATIO ANALYSIS
In 2021 $30,000 3 staff

sales revenues Number of

employees

A RATIO OF 10,000 :
A RATIO OF
Year 2021
10,000 :
1 in
$10,000 one full-
sales revenues time staff

$200,000
sales
?
Year 2022 revenues staff
 3. Scatter plot
A graphical method used to help identi fy the relati onship
between two variables
DETERMINING THE RELATIONSHIP BETWEEN

HOSPITAL SIZE AND NUMBER OF NURSES

 4. Computerized forecasts

The use software packages to determine of

future staff needs by projecting sales, volume of
production, and personnel required to maintain a
volume of output
5.Managerial judgment

Bottom-up
approach

Top-down
approach
STEP 2: FORECASTING SUPPLY OF
CANDIDATES

Internal External
candidates candidates

Supply of
candidates
 FORECASTING THE SUPPLY OF
INTERNAL CANDIDATES
Qualifi cati ons inventories
Manual or computerized
records listi ng employees’
educati on, career and
development interests,
languages, special skills,
and so on, to be used in
selecti ng inside candidates
for promoti on
Manual Records Electronic Records
 FORECASTING THE SUPPLY OF
INTERNAL CANDIDATES

 Personnel replacement charts

Company records showing present
performance and promotability of inside
candidates for the most important positions

CEO, Marketing director, CFO, HR director, etc.

 FORECASTING THE SUPPLY OF
INTERNAL CANDIDATES
Computerized Information Systems
Human Resource Information System (HRIS)

Computerized inventory of information that can be accessed

to determine employees’ background, experience, and skills
that may include:
Work experience codes
Product or service knowledge
Industry experience
Formal education
Human Resource Information System (HRIS)
STEP 3: MATCHING NEED AND SUPPLY

Demand > Supply

Demand < Supply Demand = Supply
Personnel
shortage Personnel surplus

???? ???? ????

 Personnel shortage

• Recruiting

•Training and retraining

NEED
• Succession planning SUPPLY
NEED

•Part-time job

• Outsourcing

• Overtime
 Personnel Surplus

• Layoff

• Downsizing
LY
SUPP
• Restricted hiring
NEED
LY
SUPP

• Reduced hours

• Early retirement
 CASE STUDY

 Read the Case study “Getting

better applicants”
 Write down your group’s answers
and submit them to your lecturer
 STUDY PLAN FOR NEXT CLASS

Case study discussion

Group presentation