Human resource planning is the critical
initial step in getting the right people in the
right place at the right time.
It links HR management to strategic paln
Without accurate human resource
planning, the organization may not be in a
position to compete in the market place.
A good human resource plan will allow
you to make management decisions to
support the future direction of the
Effective HR planning will also save the
organization unnecessary costs.
HR planning, in reality is a process of
honest self-assessment that clearly
identifies what are the strengths and
weaknesses of the firm’s workforce.
How many people will be needed for the organization
to meet its objectives?
What jobs will these people need to fill?
What knowledge, skills, abilities will new hires be
required to have?
Can new workers be transferred or promoted from
within the firm or do they need to be hired from
What type of training is required for workers to acquire
the knowledge, skills and abilities that are needed?
How will the process alter the career plans of existing
employees or potential candidates?
To analyze the environmental factors that
impact on firm’s labor demand.
How many staff do we have?
How are they distributed?
What is the age profile?
How many will leave by resignation or
What are the present of the present workforce?
What new skills will be required?
If there is need to recruit
How good is the supply?
What skills are required?
is a science and less than art. But it is not
an exact science.
-Historical or past data are used to examine past levels of
Delphi technique: Judgemental Method
-future staffing needs based on past experience
-made by top level management or middle level and lower level
-panel of experts
-each expert independently estimates future demand
-a mediator presents each expert’s forecast to the others
-experts can revise their comments
-process continues till agreement between all experts
Determining the Future Demand
Forecast of labor demand revolve around
identifying job categories and/or types of skills
currently existing and needed in the future.
Once identified, data will be gathered based
on the over all organization plan to predict
whether those types of job categories or
needed skills will remain constant, or will
increase or decrease
Internal Supply Consideration
Resignation can be due to:
- Accepting a job
- Poor health
- Migrating abroad
- Accepting a voluntary retrenchment
- Relocating to another place.
Dismissal can be due to:
- Forcible resignation due to poor performance.
- Authorize causes inder the law such as retrenchment
due to losses or to avoid losses, automation, retirement.
Number of staff leaving in a year
——————————————————- x 100
Average number employed in a year
Number of each employees with one
year service at December 31
Number of employed one year ago
Assessment of the Internal Labor Supply
After having determined the human resource demand,
you would now look at the supply side. If in the forecast
of your demand, you foresee an excess of your present
man power, then you will have to plan to downsize your
staff at the appropriate time by way of normal attrition,
voluntary or compulsory retrenchment.
Employing Temporary Workers
Outsourcing of employees is a common
practice. It affords firms the flexibility needed
to operate efficiently in the face of the swings
in the demand for goods and services.
It also frees the organization from
administrative tasks and financial burden of
including them in the company’s pay roll.
Aside from savings on cost benefits, there is
the ease of terminating their services when
they are no longer needed by the company.