Republic of the Philippines

RIZAL TECHNOLOGICAL UNIVERSITY

Office of Vice President for Academic and Student Affairs
College of Business, Entrepreneurship, and Accountancy
Department of BSBA-Human Resource Management

Chapter 2
Human Resource Planning
I. INTRODUCTION (Group 1)
Human Resource Planning (HRP) is the process of determining an organization’s current and
future manpower needs and developing strategies to meet those requirements. It involves
analyzing and forecasting staffing needs, identifying gaps between current workforce
capabilities and future demands, and implementing initiatives such as recruitment, training,
development, and retention to ensure the right people with the right skills are in place to meet
organizational goals. HRP also includes optimizing the utilization of existing human resources
through effective management and strategic planning, aligning workforce needs with the
organization’s long-term objectives. This process is essential in adapting to factors such as
technological advances, economic shifts, globalization, and workforce changes. By facilitating
workforce planning, HRP ensures that the organization has the right number and kind of
employees in the right place at the right time, leading to long-term benefits for both the
organization and its employees.
II. OBJECTIVES OF HR PLANNING (Group 1)
The objectives of human resource planning include:
1. Assessing future manpower needs and skill requirements.
2. Determining training and development needs.
3. Anticipating surplus or staff shortages.
4. Controlling wage and salary costs.
5. Ensuring optimum use of human resources.
6. Helping the organization cope with technological developments.
7. Ensuring career planning and succession programs.
8. Enhancing labor productivity.
9. Providing control measures for resource availability.
III. HUMAN RESOURCE PLANNING ACTIVITIES (Group 1)
1. Forecasting - Projecting future manpower requirements.
2. Inventory of Present Manpower Resources - Assessing the extent to which these
resources are employed optimally.
3. Anticipating Manpower Problems - Projecting present resources into the future and
comparing them with the forecast of requirements to determine their adequacy, both
quantitatively and qualitatively.
Republic of the Philippines
RIZAL TECHNOLOGICAL UNIVERSITY
Office of Vice President for Academic and Student Affairs
College of Business, Entrepreneurship, and Accountancy
Department of BSBA-Human Resource Management

4. Planning - Preparation of necessary programs for requirements, selection, training,

development, utilization, transfer, promotion, motivation, and compensation to ensure
that future manpower requirements are properly met.
IV. NEED FOR HRP AT MACRO LEVEL (Group 2)
Major reasons for the emphasis on HRP at the macro level include:
1. Employment-Unemployment Situation - The rise in educated unemployed
individuals and acute skill shortages emphasize the need for more effective
recruitment and retention strategies.
2. Technological Change - Changes can lead to redundancies, retraining, and
redeployment issues, highlighting the need for intensive and systematic HRP.
3. Organizational Change - Changes in organizational environment, activities, and
structures affect human resource requirements and require strategic consideration.
4. Demographic Changes - The changing profile of the workforce impacts HR planning.
5. Skill Shortages - Government controls and legislative changes impact HRP, requiring
systematic planning to address skill shortages.
6. Legislative Controls - New labor laws make it difficult to reduce workforce size
quickly, necessitating long-term HR planning.
7. Impact of Pressure Groups - Pressure from unions, politicians, and displaced
persons can influence HR policies and practices.
8. Systems Concept - Advances in information technology emphasize the need for
updated HR planning and management systems.
9. Lead Time - Necessary for the selection process and employee training to handle new
knowledge and skills successfully.
V. DETERMINANTS OF HUMAN RESOURCE PLANNING (Group 2)
External Factors:
1. Government Policies:
o Labor Laws: Impact compensation strategies and workforce size.
o Industrial Relations: Affect grievance procedures and labor costs.
o Job Reservations: Limit talent pool and influence recruitment strategies.
2. Levels of Economic Development:
o Economic Growth: Affects demand for skilled labor and investment in training.
o Infrastructure: Impacts recruitment efforts based on available resources.
3. Business Environment:
Republic of the Philippines
RIZAL TECHNOLOGICAL UNIVERSITY
Office of Vice President for Academic and Student Affairs
College of Business, Entrepreneurship, and Accountancy
Department of BSBA-Human Resource Management

o Market Competition: Influences investment in HRP for competitive advantage.

o Economic Fluctuations: Affects staffing needs based on economic
conditions.
4. Level of Technology:
o Automation: Changes skill requirements and necessitates retraining.
5. International Factors:
o Globalization: Affects recruitment and HR policies compliance with
international standards.
Internal Factors:
1. Company Policies and Strategies:
o Expansion: Requires recruitment and development for new markets or
products.
o Diversification: Needs new talent or retraining for new business areas.
o Alliances: Involves integrating HR systems during mergers or acquisitions.
2. Human Resource Policies:
o Employee Quality: Influences HRP strategies related to employee
engagement and development.
o Compensation: Impacts recruitment and retention strategies.
o Quality of Work Life: Affects morale and productivity.
3. Job Analysis:
o Job Descriptions: Essential for defining required skills.
o Job Specifications: Helps identify suitable candidates.
4. Time Horizons:
o Long-Term HRP: Beneficial for stable industries with predictable demand.
o Short-Term HRP: Necessary for competitive or unstable markets.
VI. STEPS IN HUMAN RESOURCE PLANNING (Group 3)
The Human Resource Planning (HRP) process involves a systematic approach to ensuring
that an organization has the right number and type of employees to meet its goals. This
process includes several key steps to align human resources with the organization's
strategic objectives.
1. Analyzing Organizational Objectives
Republic of the Philippines
RIZAL TECHNOLOGICAL UNIVERSITY
Office of Vice President for Academic and Student Affairs
College of Business, Entrepreneurship, and Accountancy
Department of BSBA-Human Resource Management

Understanding the organization’s strategic goals, objectives, and long-term vision is the first
step. This includes defining the business plan, expansion strategies, and identifying the
human resource implications.
Example Activities:
• Reviewing business objectives, such as entering new markets or expanding
operations.
• Analyzing how these objectives impact workforce needs, such as new skills, roles, or
departments.
2. Assessing Current Human Resources
Assess the current workforce by evaluating their skills, qualifications, experience, and
performance. Analyze employee demographics, job roles, and areas of development or
redundancy.
Example Activities:
• Conducting a skills inventory.
• Analyzing current workforce demographics.
• Reviewing employee performance and productivity levels.
Role of HRIS: An HR Information System (HRIS) simplifies this assessment by providing a
centralized platform for managing and analyzing employee data.
Enhancing HR Assessment with HRIS:
• Skills Inventory: HRIS maintains records of employees' skills, certifications, and
training, helping identify gaps.
• Analyzing Workforce Demographics: HRIS generates reports on employee
demographics, aiding diversity and succession planning.
• Reviewing Performance and Productivity: HRIS stores performance data and
tracks productivity metrics to evaluate workforce efficiency.
Benefits of Using HRIS:
• Deeper Insights: Provides a comprehensive overview of the workforce.
• Increased Efficiency: Automates data management and reporting tasks.
• Improved Decision-Making: Supports strategic planning and performance
evaluation.
• Compliance: Ensures adherence to labor laws and regulations.
3. Forecasting Demand for Future Human Resources
Estimate the number of employees and the skills required to meet future organizational
needs by analyzing company goals, anticipated changes in demand, technological
advancements, and industry trends.
Republic of the Philippines
RIZAL TECHNOLOGICAL UNIVERSITY
Office of Vice President for Academic and Student Affairs
College of Business, Entrepreneurship, and Accountancy
Department of BSBA-Human Resource Management

Common Forecasting Methods:

• Trend Analysis: Predicts staffing needs based on historical data.
• Managerial Judgment: Gathers insights from department heads.
• Workload Analysis: Estimates staffing based on projected workloads.
Approaches to HR Demand Forecasting:
• Quantitative Approaches:
o Trend Analysis: Projects HR requirements using historical data.
o Modeling Techniques: Uses advanced models to predict HR demand.
• Qualitative Approaches:
o Expert Forecasts: Relies on managerial and industry experts' judgments.
o Delphi Technique: Collects and summarizes expert opinions through
multiple questionnaires.
Combining Approaches: A blend of quantitative and qualitative methods provides a
comprehensive forecast.
Additional Analyses:
• Workforce Analysis: Reviews current workforce capabilities.
• Workload Analysis: Examines how workload changes impact staffing needs.
• Job Analysis: Defines roles and responsibilities.
4. Forecasting Supply of Human Resources (Group 4)
Estimate the availability of employees from internal and external sources to meet future
staffing needs.
Key Steps in Supply Forecasting:
1. Internal Sources:
o Description: Focuses on current employees for promotions or training.
o Internal Supply Analysis Methods:
▪ Staffing Tables/Manning Charts: Visual tools showing organizational
jobs and future needs.
▪ Markov Analysis: Tracks employee movement patterns.
▪ Skill Inventories: Detailed records of employees’ qualifications and
skills.
▪ Replacement Charts: Profiles of internal candidates for key positions.
2. External Sources:
Republic of the Philippines
RIZAL TECHNOLOGICAL UNIVERSITY
Office of Vice President for Academic and Student Affairs
College of Business, Entrepreneurship, and Accountancy
Department of BSBA-Human Resource Management

o Description: Involves recruiting from outside when internal options are

insufficient.
o Data for External Supply Forecasting:
▪ Skill Base and Trainability: Assesses skills and trainability of the
current workforce.
▪ Workforce Structure: Analyzes factors like age distribution and pay
rates.
▪ Workforce Changes: Considers impacts of resignations, retirements,
and external factors.
▪ External Labor Market: Evaluates the availability of skills in the
market.
Combining Internal and External Analyses: Integrate both sources to balance internal
talent with external recruitment.
5. Gap Analysis
Identify shortages or surpluses in the workforce by comparing current capabilities with future
needs. Determine areas where skills development or training is necessary.
Example Activities:
• Identifying areas of understaffing or overstaffing.
• Highlighting needs for skills development or training.
6. Developing HR Strategies to Meet Future Needs
Create strategies to address workforce imbalances, including recruiting, training, retaining,
or downsizing employees. Develop plans for hiring, leadership development, and
restructuring.
7. Implementing the HR Plan
Execute HR policies and actions, such as recruiting new employees, initiating training
programs, or modifying work processes. Ensure alignment with organizational goals and
timelines.
8. Monitoring and Evaluation
Continuously monitor and evaluate the HR plan’s effectiveness. Review outcomes, measure
performance, and make necessary adjustments.

VII. THE HR OPERATIVE PLAN (Group 4)

The HR Operative Plan is a strategic document that outlines the specific actions and
initiatives an organization will take to achieve its human resource objectives. It serves as a
roadmap for HR activities and ensures that the organization has the right people in place to
support its business goals.
Republic of the Philippines
RIZAL TECHNOLOGICAL UNIVERSITY
Office of Vice President for Academic and Student Affairs
College of Business, Entrepreneurship, and Accountancy
Department of BSBA-Human Resource Management

Core HR Plans:
• Recruitment Plan: This plan outlines strategies for attracting, selecting, and hiring
qualified candidates. It includes methods for sourcing candidates, conducting
interviews, and making hiring decisions.
• Redeployment Plan: This plan addresses how to transfer or retrain employees to fill
new roles within the organization, especially in cases of restructuring or changing
business needs.
• Redundancy Plan: This plan outlines procedures for handling layoffs, including
criteria for selecting employees for redundancy, providing severance packages, and
managing the departure process.
• Training Plan: This plan specifies the training needs of the organization, including
new hire orientation, skill development programs, and ongoing training to maintain
employee competency.
• Productivity Plan: This plan focuses on improving employee productivity and
reducing costs through initiatives such as work simplification, process improvement,
and incentive programs.
• Retention Plan: This plan aims to reduce employee turnover by implementing
strategies to enhance job satisfaction, improve compensation, and create a positive
work environment.
• Control Points: This element of the HR Operative Plan involves establishing
mechanisms for regularly reviewing and updating the plan to ensure it remains aligned
with the organization's goals and addresses changing circumstances.
Additional HR Plans:
• Succession Plan: This plan identifies potential successors for key positions within the
organization and provides development opportunities to prepare them for leadership
roles.
• Diversity and Inclusion Plan: This plan outlines strategies for creating a diverse and
inclusive workplace, promoting equal opportunity, and fostering a sense of belonging
for all employees.
• Performance Management Plan: This plan establishes a framework for evaluating
employee performance, providing feedback, and setting goals.
• Compensation and Benefits Plan: This plan outlines the organization's
compensation structure, including salary, bonuses, and benefits, to attract and retain
top talent.
• Health and Safety Plan: This plan ensures a safe and healthy work environment by
implementing measures to prevent accidents and comply with health and safety
regulations.
Republic of the Philippines
RIZAL TECHNOLOGICAL UNIVERSITY
Office of Vice President for Academic and Student Affairs
College of Business, Entrepreneurship, and Accountancy
Department of BSBA-Human Resource Management

• Employee Engagement Plan: This plan focuses on improving employee morale, job
satisfaction, and commitment through various initiatives.
• Onboarding Plan: This plan outlines the process for welcoming new employees and
ensuring a smooth transition into the organization.
• Employee Relations Plan: This plan addresses strategies for managing employee
relations, including handling conflicts, grievances, and maintaining a positive
workplace culture.
By developing a comprehensive HR Operative Plan that includes these core and additional
plans, organizations can effectively manage their human resources, ensure they have the right
people in place, and achieve their business objectives.
VIII. SUCCESSION PLANNING (Group 5)
Succession planning is a critical component of human resource planning (HRP). It ensures
that the organization has a pool of qualified individuals ready to fill key leadership positions
when vacancies occur. By proactively developing talent, organizations can minimize
disruptions and maintain business continuity.
Here's how succession planning fits into the broader context of HRP:
• Alignment with organizational goals - Succession planning should be aligned with
the organization's overall strategic objectives to ensure that the development of talent
supports business growth and success.
• Talent management - Succession planning is a key aspect of talent management,
which involves attracting, developing, and retaining top talent.
• Risk mitigation - By identifying potential successors for critical roles, organizations
can mitigate the risks associated with unexpected departures or retirements.
• Employee engagement - Succession planning can enhance employee engagement
by demonstrating commitment to their development and career advancement.
Key steps in succession planning:
1. Identify critical positions - Determine which roles are essential to the organization's
success.
2. Identify potential successors - Evaluate employees based on their skills,
experience, and potential for leadership.
3. Develop talent - Provide opportunities for development, such as training, mentorship,
and stretch assignments.
4. Create a succession plan - Develop a plan outlining the steps necessary to fill critical
roles.
5. Monitor and update - Regularly review and update the succession plan to reflect
changes in the organization or the individuals involved.
Republic of the Philippines
RIZAL TECHNOLOGICAL UNIVERSITY
Office of Vice President for Academic and Student Affairs
College of Business, Entrepreneurship, and Accountancy
Department of BSBA-Human Resource Management

By effectively implementing succession planning, organizations can ensure a smooth

transition of leadership, maintain business continuity, and achieve their strategic goals.

IX. HR PLANNING THREE PERIODS (Group 5)

1. Short-Range: Immediate concerns such as overtime and replacements.
2. Mid-Range: Typically spans 2-3 years.
3. Long-Range: Spans 5-15 years, based on economic and labor market trends.
X. RESPONSIBILITY FOR HUMAN RESOURCE PLANNING (Group 6)
• Top-Level Executives: Ultimate responsibility for HR planning.
• Human Resource Department:
o Assist and counsel managers.
o Collect and summarize data.
o Monitor and measure performance.
o Provide research and analysis.
XI. CHALLENGES IN THE HR PLANNING PROCESS (Group 6)
1. Inaccuracy: Forecasting and supply estimates may be imprecise.
2. Employee Resistance: Resistance from employees and unions.
3. Uncertainties: Factors like absenteeism, turnover, and technological changes.
4. Inefficient Information System: Challenges with underdeveloped HRIS.
5. Time and Expense: High resource requirements for HR planning.
XII. GUIDELINES FOR EFFECTIVE HUMAN RESOURCE PLANNING (Group 6)
1. Tailormade: Align HR planning with corporate objectives.
2. Appropriate Time: Fit the HR planning process to organizational needs.
3. Adequate Organization: Ensure a well-structured process.
4. Top Management Support: Secure commitment from leadership.
5. Participation: Engage all levels of the organization.
6. Information System: Develop a robust HRIS.
7. Balanced Focus: Maintain a balance between quantitative and qualitative aspects.
Republic of the Philippines
RIZAL TECHNOLOGICAL UNIVERSITY
Office of Vice President for Academic and Student Affairs
College of Business, Entrepreneurship, and Accountancy
Department of BSBA-Human Resource Management

References:
Gupta, C.B. (1997). Human Resource Management, S. Chand & Sons, New Delhi.
Pattanayak, B. (2001). Human Resource Management, PHI, New Delhi.
Aswathappa, K. (1999). Human Resource and Personnel Management, Tata McGraw Hill,
New Delhi.
Jyothi, P. and Venkatesh, D.N. (2006), Human Resource Management, Oxford latest reprint
book is also available
Armstrong, Michael (2020), A Handbook of Human Resource Management Practice, Kogan
Page
eGyankosh. (n.d.). Unit 4: Human resource planning. Retrieved September 16, 2024, from
https://egyankosh.ac.in/bitstream/123456789/78799/1/Unit-4.pdf
HR Lineup. (2021, November 23). Human resource planning. HR Lineup.
https://www.hrlineup.com/human-resource-planning/