strategic human resource planning

Chapter 2 Strategic Human Resource Planning

Post on 20-Oct-2014




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Page 1: Strategic Human Resource Planning

Chapter 2Strategic Human

Resource Planning

Page 2: Strategic Human Resource Planning

Human Resource Planning (HRP)

- is the process of systematically reviewing human resource requirements to ensure that the number of the employees matches the required skills.

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Strategic Planning- Is the determination of the overall organizational

purpose and goals and how they are to be achieved.

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2 important components of human resource planning:

a.Requirement- forecasting human requirement involves the determining the number and types of employees needed.

b. Availability- when employee requirements have been analyzed, the firm determines whether there is a surplus or shortage of manpower.

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Aspects of human resource planning:

1. Systematic forecasting of manpower needs

- on the basis of business condition and forecasts, manpower needs are planned and monitored closely.

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Aspects of human resource planning:

2. Performance management- analyzing, improving and monitoring

the performance of each employee and of the organization as a whole.

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Aspects of human resource planning:

3. Career management- determining, planning and monitoring

the career aspirations of each individual in the organization and developing them for improve productivity.

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Aspects of human resource planning:

4. Management Development- assessing and determining the

developmental needs of managers for future succession requirements.

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5 steps to human resource planning:

1. Determining the workload inputs base on the corporate goals and objectives.

2. Studying the jobs in the company and writing the job description and job specifications.

3. Forecasting of manpower needs.4. Inventory of manpower.5. Improvement plans.

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4 basic terms of manpower:

1. Long term trend- is usually done for a period of five years or more depending on the company operations and customer demands.

2. Cyclical variations- refers to reasonable and predictable movements that occur over a period of one year or more.

3. Seasonal variations- this is a reasonable prediction change over a period of one year.

4. Random variations- this is one occasion where there is no special pattern and is quite difficult to predict or determine.

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The important elements in strategic human resource planning:

1. Organizational goals- the human resource planning process should be tied up with the organizational strategic goals.

2. Human resource forecast- process is the forecasting of human resource needs based on the business strategies, production plans, and the various indicators of change in technology and the organization’s operating methods.

3. Employee information- process is maintaining accurate information concerning the composition, assignments, and the capabilities of the current workforce.

4. Human resource availability projections- process is estimating the number of current employees and those that could be available in the future.

5. Analyzing and evaluating human resource gaps- process is comparing what is needed when what is available in terms of numbers, mix, skills, and technologies.

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Human resource role in providing competitive advantage

a. Emergent strategies- consist of strategies that evolve from the grassroots of the organization and can be thought of as what the organization actually do.

b. Intended strategies- are the results of the rational decision making by top management as they develop strategic plans. It is a pattern of plans that integrates an organization’s major goals, policies, and action sequences into a cohesive whole.

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Human resource information system(HRIS)

HRIS is any organized approach to obtaining relevantand timely information in which to base humanresource decision. An effective HRIS is crucial tosound human resource decision making. It is

designedto provide information that is- SMART

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a. Systematic- information must be systematically arranged and contain the needed data.

b. Management oriented- the data and information are essential tools for effective manpower planning, retention, development and separation of employees.

c. Applicable- the data and information stored in file must be applicable in meeting human resource decision. A relevant data must be discarded.

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d. Result- oriented- the results from the information and the decisions derived thereat must be acceptable to management and the employees concern.

e. Time bound- relevant resource information are necessary for effective decision making. The need for timely decisions are crucial to the effective management of human resources.

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An effective HRIS also produces and forecasts several important reports related to business


a. Routine reports- these are human resource data summarized on schedule basis like current manpower status, regular employees, contractual employees, supervisor and managerial employees on a regular payroll.

b. Exception report- this information may contain confidential data that are available only for managerial decision making and needs immediate attention.

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c. On demand reports- this may pertain to productivity index, individual performance record, and other information that may lead to downsizing and other personal action.

d. Manpower forecasts- applies to predictive models based on specific situation. This may cover increase or decrease to manpower requirements due to seasonal demands or increase in customer orders.

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Software applications for HRM

1. Staffing applications- common applications used in the area of staffing include the following:a. applicant recruiting and trackingb. DOLE reporting requirementsc. developing a master employee data based. staffing application for decision making

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2. Human resource planning- includes the following applications:a. work-force profile analysis- work-force labor supply and demand analysis or work force profile analysis review.b. work-force dynamic analysis- number of new hires, transfers and promotions, number still needed in the future and those employees who are available to fill up job openings in the future.

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c. Human resource planning for decision making- this application pertains to information about employees who are about to retire, job classification of employees for promotions and those departments that lack basic skills for the job.

d. Performance management application- employee performance ratings, disciplinary actions, work rule violations and the daily productivity index could now be stored in computer data base as bases for management decisions.

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e. Training and development applications- these are used primarily to track down the need for employees training programs, courses to attend, certified skills, and educational qualifications.

f. Compensation and benefits applications- this include payroll, job evaluation, salary survey, salary planning and analysis, executive compensation planning and management benefits.