Chapter 3 discusses Human Resource Planning (HRP), emphasizing its role in ensuring the right manpower is available for organizational efficiency and addressing issues of overstaffing and understaffing. It outlines external and internal factors affecting HRP, strategic planning methods, and forecasting techniques for both demand and supply of human resources. Additionally, it addresses planning for potential manpower shortages or surpluses and the importance of managerial succession planning.

1. CHAPTER 3
HUMAN RESOURCE PLANNING
CENTRAL MINDANAO COLLEGES
Prepared by;
RAMOS, MITCHIE C.
HINGPIT, CHRISTINE MARIE P.

2. WHAT IS HUMAN RESOURCE PLANNING?
• HRP is the activity undertaken to make sure that the right quantity and quality of manpower are
available at the exact time and place that they are needed.
• HRP refers to the performance of tasks that will enable the organization to function effectively
and efficiently by providing its various departments with qualified personnel.
• Overstaffing and understaffing both undermine the efficient management of organizations. When
HRP is undertaken, these problems may be minimized.

3. THE REASONS FOR HUMAN RESOURCE
PLANNING
1. There is more efficient and equitable use of human resources (HR). If HRP is made to really
provide accurate information about how many people and what kind of people are needed,
there is a slim chance that those recruited and selected will not be able to do their jobs.
2. There is more effective employee development and feeling of greater sense of fairness. In
organizations with effective HRPS, employees are aware that the HRD's function is to
implement human resource policies including the determination of various human resource
requirements.

4. EXTERNAL FACTORS AFFECTING HRP
1. The Government Factor- The government implements policies that can affect HRP. The
prohibition on labor contracting, for instance, has affected HRP in many organizations.
2. Economic Condition- The economy is not expected to be static. If there are periods of
business expansion, there are also periods of contraction. The four phases of the business
cycle (prosperity, recession, depression, and recovery) affect the various sectors including
labor.
3. Population and Work Force Shifts- HRP must reckon with changes in the population and
shifting of the workforce. For instance, people tend to move towards the urban areas. As such,
organizations situated in rural areas find it hard to recruit competent specialists.

5. 4. Geographical and Competitive Conditions- Employers in a particular area compete
with one another in tapping local sources of labor. When large businesses find interest in
opening facilities in a particular area, the demand for many types of labor in that area will rise
and may jeopardize the recruitment policies of local organizations.
Internal Factors- In doing HRP, the internal factors must also be considered. Among these factors
are the following: anticipated production volume, expectations about sales, plans to invest in new
facilities, and closing down of existing plants or offices.

6. STRATEGIC HUMAN RESOURCE PLANNING
Modern organizations have adapted strategic thinking as the way to survival and growth. The objective is to "build a
stronger long-term competitive position". Strategic human resource planning is the process of linking human resource
planning efforts to the company's direction.
Corporate
Strategy
What kind of business
should we in?
R & D Strategy
HR Strategy What is our future HR demand?
Strategic HRP What are our HR objectives?
Marketing
Strategy
Finance
Strategy
Production
strategy

7. METHODS OF FORECASTING THE DEMAND FOR
HUMAN RESOURCE
1. Judgmental Methods
-Forecasting appears to be more systematic if there is a database and an expert who can use
the more sophisticated models. As it happens, oftentimes, these requirements are not always
present, especially if the organization is small or new.
Three types;
2. The “bottom-up” or unit forecasting
3. The “top-down” method, and
4. The “Delphi technique.

8. The bottom-up approach happens when the individual units (or branches and departments)
make a forecast of their manpower requirements. An aggregation of their forecasts is the total
demand for the organization.
The top-down approach involves the top management in making a forecast for the entire
organization. Those involved are the experienced top managers and executives who will meet in
a session to discuss how recent trends, the business plan, the economy, and other factors will
affect the demand for human resource at various organizational levels.
The Delphi technique is a qualitative forecasting method that seeks to use the judgment of
experts systematically in arriving at a forecast of what future events will be or when they may
occur. It utilizes a series of questionnaires administered by a person to experts who never meet
face-to-face.

9. 2. Mathematical Methods
-Can be classified as either simple or complex. Only one factor for prediction is used in simple
mathematical methods, while more complicated statistical techniques are used in complex
mathematical models.
1.Trend analysis
2. Use of sales, production, or other forecasts
3.Learning curves.

10. COMPLEX MATHEMATICAL METHODS
There are many complicated statistical techniques which may be used in forecasting manpower
demand. Many large organizations make use these sophisticated methods. One of the complex
mathematical methods is the multiple regression analysis (MRA). This method is a statistical
procedure that attempts to asses the relationship between the dependent variable (which in this
case is the manpower demand) and two or more independent variable (which could be sales,
profit, capital, investment, and gross national product.) When relationship is established, future
demands, may be predicted.
There is also a method that employs linear programming to find the best staffing levels given a
set of limitations, such as a pay and salary budget that is limited and minimum and maximum
output levels. For example, linear programming can be used to create a work schedule that will
accommodate staffing requirements while reducing the overall workforce.

11. FORECASTING THE SUPPLY OF HUMAN
RESOURCES
After estimating demand for HR for a particular planning period, the supply available for that
period must also determined. The discrepancy between supply and demand will be the basis
for employee recruitment and training.
In the analysis of manpower supply, two sources of HR are considered:
* the external source which indicate the availability of manpower in the labor market, and
* the internal source which indicates the availability of manpower within the organization.

12. DETERMINING INTERNAL MANPOWER SUPPLY
To determine the supply manpower within the organization the following steps are necessary:
1. Skills Inventory
2. Management Inventory, and
3. Anticipating changes in personnel.
Planning Human Resource Programs
The HR planner is confronted with the possibilities of manpower shortage and surplus and
the concern for a smooth managerial succession. Under any of these circumstances, the
organization may be affected if they are not properly managed.

13. PLANNING FOR SHORTAGES
When the current work force cannot meet future demand for manpower, several options are
available. They are as follow:
1. Recruitment from external sources,
2. Encouraging retirable employees to postpone retirement,
3. Rihiring retired employees
4. Introducing remedies to reduce employee turnover
5. Subcontracting, and
6. Hiring temporary workers.

14. PLANNING FOR SURPLUSES
There are instances where HRP predicts a future condition of manpower surplus. As a result, the
company will have more employees than open positions. If so, management must create a strategy
to cut back on supply. In meeting manpower surplus and depending on the situation any of the
following:
1. Adapt attrition as a policy
2. Offer early retirement incentives
3. Transfer some employees from units with manpower surplus to units with manpower shortage
4. Schedule employee for training during slacks period
5. Lay of excess employee

15. MANAGERIAL SUCCESION PLANNING
The development of managers takes several years. Developing successors is necessary regardless
of the possibility that the manager will be promoted, downgraded, transferred, retire, resign, or pass
away while still in office.
In preparing a succession plan, this are the following:
1. Categorise managerial jobs according to priority so proper attention could be directed where it is
needed.
2. Identify candidates with high potential
3. Plan development activities for candidates
4. Identify viable near-team replacement for important