Human Resource Management

Module 2
STRATEGY AND HUMAN RESOURCE
PLANNING
 Learning Outcomes
After studying this chapter, you should be able to:

1. Explain the importance of Coordination in terms of Environmental Scanning and

Forecasting of Human Resource Requirements.

2. Describe the consideration in terms of the Human Resource Planning (HRP) Team,
current and Long-Term Requirements, evaluation of the company’s current roster of
personnel and the assessment of external labor environment.

3. Illustrate the concentration of HR Planning using the forecasting and HR demands,

decision analysis and action plan/implementation of the program.

4. Develop basic HR Planning thru dummy Business to be created (Small/Medium

Enterprise-SMEs) and perform how to create strategies and activities entails for
organizing.
COORDINATION

• Human Resource Planning (HRP) is a

process that identifies current and future
human resources needs for an
organization to achieve its goals.

• HRP should serve as a link between human

resource management and the overall
strategic plan of an organization.
Human Resource Management and its Strategic Role in
the Organization
Strategy
• Strategy is a plan of action or policy designed
to achieved or overall aim. A strategy
describes how the ends (goals) will be
achieved by means (resources).
• Strategy can be intended or can emerge as a
pattern of activity as the organization adapts
to its environment or competes. It involves
activities such strategic planning and
strategic thinking.
Organizing
A systematic process of knowing who is
responsible for each process thru designing
process flow, designing organizational
structure, determine what are the required
competencies for the job, identifying the
right people and what resources to be used
to make the people effective and efficient
in performing the job.
Business Process Flow
• Business Process may often be visualized as a
flowchart of a sequence of activities with
interleaving decision points or as a process matrix
of a sequence of activities with relevance rules
based on data in the process.
Dental Clinic Business Process Flow
Organizational Structure

• Organizational Structure is a system that outlines

how certain activities are directed in order to
achieve the goals of an organization. These activities
can include rules, roles and responsibilities.
• The organizational structure also determines how
information flows from level to level within the
company.
Organizational Structure
Competencies are used for:
• Assessing and selecting candidates for a
job;
• Assessing and managing employee
performance;
• Workforce planning; and
• Employee training and development.
Competencies
• Competencies is a measurable pattern of
knowledge, skills, abilities, behaviors, and
other characteristics that an individual needs
to perform work roles or occupational
functions successfully.
• Competencies specify the "how" of
performing job tasks, or what the person
needs to do the job successfully.
Example competencies for Housekeeping
Supervisor
People
• People is the one who perform the task or job in the
organization. It also determined how may people to
be hired in each process.
People
Resources

• Resources is source of supply, support, or aid,

especially one that can be readily drawn upon
when needed.
• Resources, the collective wealth of a country
or its means of producing wealth.
• Usually resources is: money, or any property
that can be converted into money; assets.
CONCENTRATION
• Link between Strategic Planning and Human Resource
Planning:
Human Resource Planning Process is
summarized below:
The Human Resource planning (HRP) Team
• The Human Resource planning (HRP) Team –it should consist of
individuals across all levels and departments who understand the
value of HRP in the organization.
• Senior members of top management
• Department managers
• HR support professionals
• Information technology (IT) professionals
• Finance/ Budget analysts
Current and Long-term Workforce Requirements
• Current Workforce
• Replace those who are due for retirement
• Consider those who can be promoted;
• Look into current vacancies that need to be filled
immediately.

• Long-term Workforce Requirement

• Succession scheme becomes crucial to key
management position
• Looking for skills that maybe needed in the future
External Labor Environment Which Affect the
Future Supply of Employees
• In performing a supply analysis, the organization
estimates the number and quality of its current
employees as well as the available external supply of
workers.

• In global environment, there is a growing gap between

the world’s supply of labor and the demands for labor.

• Many skilled and unskilled human resources are

available in the developing countries at a much lower
cost.
Some of the factors taken into consideration in
forecasting supply of work force are:
1. Promotion of Employees from
within the Organization
2. Availability of required talent in
the external labor market
3. Competition for talent within the
industry
4. Population movement trends
CONCENTRATION
• The concentration of efforts is very
crucial in the organization’s
achievement of its strategic
objectives.
• In determining the shortage or surplus
of manpower it is very important to
forecast the future requirements.
Methods of Forecasting Internal Labor Supply
• Trend Analysis predicts demand for personnel
based on past s over a member of years between
an operational index (revenue per employee,
productivity per employee, and the demand for
labor).
Methods of Forecasting Internal Labor Supply
• Trend Analysis predicts demand for personnel based on
past s over a member of years between an operational
index (revenue per employee, productivity per
employee, and the demand for labor).
• Ratio Analysis is the process of determining the future
demand for human resources by calculating the ratio
between a particular business variable and the number
of employees a company needs. It especially helps you
forecast those growth-driven personnel needs.
Methods of Forecasting Internal Labor Supply
• Skills/ Competency models is based on the information gathered
from the skills inventory, the skills/ competency model matches
the skills and competencies needed for each job with those of
the employees in the organization.

• Replacement Chart it is used to identify vacancies in superior

positions and the possibility of filling those vacancies current
employees through horizontal / vertical movements.
Methods of Forecasting Internal Labor Supply
• Succession planning traces the potential replacement to key
positions and hones them to become successful future leaders.

• Markov Analysis it forecasts internal movements from one year

to the next year by determining the percentage of employees
who remain in their job. Also, Markov Analysis forecast the future
behavior of a variable or system whose current state or behavior
does not depend on its state or behavior at any time in the past
in other words, it is random.
Methods of Forecasting Internal Labor Supply
• Regression Analysis a statistical method of predicting HR
demand by determining the relationship between various factors
(independent variables) and the company’s employment level
(dependent variables).
Decision Analysis

• HR conducts a gap analysis the

process of finding the
difference between the
forecasted HR supply and HR
demand.
Action Plan/ Implementation of the Program

• After gap analysis and a

particular decision is obtained
(e.g. a labor equilibrium
shortage, or surplus), the
organization is now ready to
identify the strategies for its
implementation.
References
This section may include list of books, journals, magazines, articles, and
other online resources.
 Human Resource Management 16th Ed. By Scott Snell and George Bohlander. 3rd Philippine
Reprint Cengage. 2014
 Human Resource Management: From the Practitioner’s Point of View. Ranulfo Payos, LLB FPM,
2010.
 Human Resource Management, 12th Edition by Dessler, Gary. Global edition, Pearson Education
Inc., Pearson Education South Asia Pte, Ltd., Jurong Singapore., 2010
 Human Resource Management, 10th Ed., DeCenzo, Robbins &Verhults. John Wiley and Sons,
Inc., Asia. 2010
 Personnel Management in the 21st Century, 7th Ed., Sison Perfecto S., Revised by: Paayos and
Zorilla, Rex Bookstore, Inc.,
 Business Policy and Strategic Management: Concepts and Applications, 2nd Ed, Gupta, Vipin,
Gollakota, Kamala, Srinivasan R.
References
 http://www.dole.gov.ph/labor_codes
 https://www.businessstudynotes.com/hrm/human-resource-management-chall
enges/
 https://www.bls.gov/opub/mlr/2015/article/labor-force-projections-to-2024.ht
m
 https://www.youtube.com/watch?v=gmzgfJl40hQ
 https://blog.vantagecircle.com/challenges-of-hr/
 https://factorialhr.com/blog/hr-challenges/
 https://www.forbes.com/sites/forbeshumanresourcescouncil/2019/03/15/how-
hr-is-keto-successful-mergers-and-acquisitions/
 https://blog.vantagecircle.com/challenges-of-hr/
 https://factorialhr.com/blog/hr-challenges/
 https://yourbusiness.azcentral.com/four-competencies-hr-manager-3925.htmlht
tps://yourbusiness.azcentral.com/relationship-between-hr-department-manager
-1496.html
References
• https://www.iedunote.com/values-attitudes-difference
• https://www.sagepub.com/sites/default/files/upm-binaries/17521_Chapter_5.pdf
• https://www.iedunote.com/values-attitudes-difference
• https://ameerrosic.com/wp-content/uploads/2015/01/12-Tips-On-How-to-Change-Your-Attitude-
Towards-Life-When-You-Cant-Change-Your-Situation.jpg

• https://www.akkaarchitects.com/attitude-the-number-one-factor-when-hiring-new-employees/
• https://eliteblogacademy.com/power-core-values/
• https://www.ethicssage.com/2018/08/what-are-values.html