NATURE AND SCOPE OF HUMAN RESOURCE PLANNING

MODULE 01

Learning objectives:

• Understand the nature and scope of HRP;

• Identify the objectives of HRP;

• Know the concept and meaning of HRP.

• Identify the linkages with business planning and strategies;

• Know the benefits of HRP; and

• Identify the different elements and process of HRP

Human Resource Planning

Is the critical initial step in getting the right people in the right place at the right
time. It is an important component in strategic human resource management. In the links
of HR management to the strategic plan of the organization. Organizations routinely
complete financial plans to ensure they achieve organizational goals. While workforce
plans are not as common, they are just as important.

Scope of Human Resource Planning (HRP)

• It keeps the record of current manpower with the organization.

• Assessing the future requirements of manpower for organization objectives.

• To make the manpower recruitment plans.

• To phase out the surplus employees.

• To make a lay out of training program for different categories of employees.

Objectives of Human Resource Planning

• To make the promotion and transfer policies.

• To ensure optimum use of available manpower.

 • To provide the necessary manpower when required.

• To assess the future manpower requirements to achieve the organization

objectives.

• to make a balance between the distribution and allocation of manpower.

HR planning will provide answers to the following questions;

• How many people will be needed for the organization to meet its objectives?

• What jobs will these people need to fill?

• What knowledge, skills and abilities will new hires are required to have?

• What new skills will be required of the current work force?

• Can the new workers be transferred or promoted from within the firm or do they
need to be hired from outside?

• What type of training is required for workers to acquire the knowledge and abilities
that are needed?

• What type of compensation plan is required to support this talent?

• How will the process alter the career plans of existing employees’ potential
candidates?

Two important components of Human Resource Planning

• Requirement – forecasting human requirements involves determining the number

and types of employees needed. The level of skills has to be determined and
matched with the plan operations. The analysis will reflect various factors such as
production plans, and changes in production together with the introduction of new
technology if there is any.

• Availability – when employees’ requirements have been analyzed, the firm

determines whether there is a surplus or shortage of manpower. If there is a
surplus, ways must be instituted to reduce the number of employees.
Linkages with business Planning and Strategies critical resources:

• The technology that is used to create the product or deliver the service;

• The finance the organization uses to pay for whatever it requires;

• The people whose skills and talents are utilized to do the work that is needed.

Technology Resources

Refers to the tools or objects used to create and or deliver an organization’s

product or service. This resource could be as simple as a pen used to writes invoices or
as sophisticated as a computer system that is used to design a product.

Finance Resource

Refers to the money or capital that is used to pay or fund all the organization’s
activities. This resource includes money that is generated by sales, loans, grants or
donations. it also includes any capital assets that could be sold or used as collateral
toward further loans or grants.

The Human Resource

Refers to the people whose knowledge, skills, and abilities are utilized to create
and deliver the product and service. This resource is considered to be an organization’s
greatest resource. This is due to the fact that an organization could not be managed or
products and service created and delivered without the use of KSAs of people.

Aspects of Human Resource Planning

1. Systematic Forecasting of Manpower Needs- on the basis of business

conditions and forecasts, manpower needs are planned and monitored closely.

2. Performance management- analyzing, improving and monitoring the

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

3. Career Management- determining planning and monitoring the career aspiration

each individual in the organization and developing them for improved productivity.
 4. Management Development – assessing and determining the development needs
of managers for future succession requirements.

Benefits to having a strong HR Planning tools in place

• Recruiting- effective hr planning helps the company to prepare ahead of time to

these vacancies rather than acting in reactionary manner when an employee
resign unexpectedly.

• Career Development-this consist of identifying future company leaders and

helping them grow. This means that when an executive or managers leaves or
retires, there is already someone ready to promote into the position.

• Training-this training includes new hire training to teach new employees about the
company culture, internal databases, software and the skill sets necessary for
specific positions.

• Employee Management-companies benefits from having these systems in place

because they help managers do their jobs and prevent potential lawsuits.

Important Elements in Human Resource Planning

1. Organizational goals

The human resource planning process should be tied up with the

organizational strategic goals. It must rest on solid foundation of information
about sales forecasts, market trends, technological advances, and major
changes in process and productivity.

2. Human resource forecast

The second element in the planning process is the forecasting of human

resource needs based on business strategies, production plans, and
various indicators of change in technology and the organization’s operating
methods.
 3. Employee information

The third element in the hr planning process is maintaining accurate

information concerning the composition, assignments, and the capabilities
of the current workforce. This information includes job classification, age,
gender, status, organizational level, rate of pay and functions.

4. Human resource availability projection

The fourth element of the human resource planning process is estimating

the number of current employees and those that could be available in the
future. By projecting the past data about the size, organization, and
composition of the workforce and about turnover, aging, and hiring,
availability at a specific future date can be estimated.

5. Analyzing and evaluating HR gaps

The fifth element in the hr planning process is comparing what is needed

with what is available in terms of numbers, mix, skills and technologies. This
comparison permits the human resource manager to determine gaps and
evaluate where the most serious mismatches likely appear.

Analyzing and evaluating hr gaps help management address issues such as:

a. Are there imbalances developing between projected human resources needs and
availability?

b. What is the effect of current productivity trends and pay rates on the workforce
levels and costs?

c. Do turnover problems exists in certain jobs or age levels?

d. Are there problems of career blockage and obsolescence

The human resource planning process

1. Determining the workloads inputs based on the corporate goals and objectives.
 2. Studying the jobs in the company and writing the job description and job
specification.

3. Forecasting manpower needs.

4. Inventory of manpower

5. Improvements plans.

Several factors that should be considered in determining work inputs:

• Business Development and assumptions

• Corporate planning

• Economic forecast

• Changes in plans and products

• New product lines

• Mergers and consolidations

MODULE 2

Learning Objectives:

Know the importance of job analysis

Understand what is Human Resource Information System (HRIS)
Discuss and internalize the concept and intent of environment scanning

Major activities in preparation for human resource include job analysis. A sound
human resource management program requires knowing the different jobs in the
company. The manager and supervisor must get a comprehensive picture of each job in
his organization. This involves what each worker does, how he does it, why he does it,
and under what conditions he perform his job and what special qualification each worker
must possess to perform his job satisfactorily.
Job Analysis

Is a systematic procedure for getting information about the current or proposed

duties and requirements of a position in order to determine the most appropriate
classification. It is a processed used to collect information about the duties,
responsibilities, necessary skills, outcomes, and work environment of a particular job.

Data Collection Method

There are various ways of gathering data for job analysis. These include
observation, work sampling, interviews, and questionnaires or a combination of one or
more of these methods,

Observation
Observing people while doing their work can provide insight into the vital functions
of the job. Analysts can take notes and may even videotape the actual work and review
them later. then they can summarize the list of essential functions in the order of
importance. However, observing is easier on manual jobs. For knowledge workers where
analytical thinking is involved, it is not possible to observe all essential functions.

Interviews
Focus interviews done one on one or in groups provide opportunity for asking
relevant or clarificatory questions. Employees have the tendency to overstate their skills.
They may exaggerate the complexity and importance of their jobs especially if they know
or suspect that the study is for the purpose of evaluating jobs with the end result of
establishing salary structure.

Work Sampling
This is variation of the interview but done through random work sampling like once
a week or few hours a day. Work sampling must be representative of the job. Sufficient
prior data must be gathered to determine what is representative of the entire actual job.
Otherwise, observation through work sampling may result in a wrong, insufficient, or
skewed data.
Questionnaires
The most common method is through questionnaire. A standard form called Job
Analysis Questionnaire (JAC) is distributed to all employees to accomplish. This is the
fastest inexpensive way of gathering data. standard questionnaires are available in the
market, it must be use friendly and easy to accomplish. It can be computerized for faster
results.

Two Most Common Standardized Quantitative Methods for Job Analysis:

1. Position Analysis Questionnaire (PAQ) - requires that each job be analyzed with
regards to specific tasks commonly found in many jobs. It uses six scales to
determine the degree to which these standardized tasks are performed in the job
being analyzed.
2. Functional Job Analysis - examines the degree to which people, data, and things
are involved in the functions of the job. the critical incident method is a qualitative
technique that focuses on behaviors that are critical for job success.

The Rationale for Job Analysis

The conduct of job analysis has behind its several reasons that are to human
resource management and the supervision of the work to be done by the workers in the
shop or the office. It is considered as the building block of anything that human resource
management does, as any personnel action requires information that is gleaned from job
analysis.

Job Analysis Provides Information in Several Cases Including the Following:

1. How much time is taken to complete basic tasks?
2. How are tasks grouped together into a job?
3. How can a job be designed so that employee performance can be improved?
4. What kinds of skills are needed to perform a given job?
5. What kind of person is best suited to perform a certain type of job?
Specific Information Provided by Job Analysis
1. Job Title and Location
2. Organization Relationship - a brief explanation of the number operations
supervised. It also reflects supervision received.
3. Relation to Other Jobs - describers and outlines the coordination required by the
job.
4. Job Summary - condensed explanation of the content of the job.
5. Information Concerning Job Requirements - it varies from job to job. Usually
provide information about the machine, tools, materials, mental complexity, and
attention required, physical demands, and working conditions

Job Description
Is an abstract of information derived from the job analysis report describing the
duties performed, the skills training and experience required, the responsibilities involved,
the contribution under which the job is done, and the other relations of the job to the other
jobs in the organization.

Elements of a Good Job Description

1. Describe the basic purpose of the job (why it is performed)
2. List the various duties in the order of importance. (describe what the task is, how
it is performed and why it is done)
3. Begin each sentence with an action verb.
4. Uses examples to add meaning.
5. Define jargons or initials.
6. Assume the reader knows nothing about the job.
7. Answer all the why, how, and who questions that the sentences generate.
8. Provide an organization chart, include names, titles and line number. Ensure that
the chart answers the following questions:
to whom does this position report?
what other positions report to the same supervisor?
 what positions report to this position?

Position Summary
This section is a brief, specific statement of why the position exists what is the
major end result. The reason for such a short, concise statement at the outset is so the
evaluator can immediately obtain an impression where the position sits in the organization

Principal Duties
This section describes the results for which the position has ongoing
accountability. Accountabilities are statements of the important end results which the job
exists to achieve. Each accountability statement should relate to a single and result which
must be accomplished and which some measurement of performance can be applied.

Education and Experience

Include the minimum level and type of formal educator required of an incumbent
in order to perform the job duties. Keep in mind that some positions can be satisfied with
an equivalency of work experience. Cite if the position requires by law a professional
license such as pharmacist in a position of a drug manufacturing company or drugstore
or CPA for auditor position.

Internal and External Contacts

This section considers what contacts are within and outside of the company, how
often they occur and why? how important is the contact in relation to company goals?

Confidential or Sensitive Data

Give examples of sensitive or confidential data (e.g. salary information, employee
performance issues, marketing strategies) which the incumbent of this position is required
to work with or has access into.
Organizational Chart
An organization chart should be included. The chart answers the following:
to whom does the position report to?
what other positions report to the same supervisor?
what positions report to this position?

Job Specification
Derived from job analysis, job specification is a statement of employee
characteristics and qualifications required for satisfactory performance if defined duties
and tasks comprising a specific job or function. This refers mostly to the so-called soft
skills that a job holder must have in order to successfully complete the tasks of the
position.

Job Analyst
The study of jobs is the responsibility of the personnel department through the job
analyst who is trained to conduct the job evaluation program. the job analyst studies,
responsibilities, and the specification requirements of the job. this involves careful
understanding of the conditions around the functions and tasks of the positions.

A Good Job Analyst must have the Following Qualifications:

1. good knowledge of organizational system
2. good intelligence and analytical skills
3. good judgment and acumen
4. clarity and facility of language
5. familiarity with organizational and company policies
6. good personality and good relationships with others in the organization
7. tact and diplomacy in getting along with others

Job Analysis Method

1. job questionnaire method
2. the interview method
 3. the combination of interview and questionnaire method
4. observation and interview method

The Job Questionnaire Method

The accuracy of job information is necessary. The job analysis prepares the
questionnaire based on the purpose of the job analysis. The form to be used is carefully
prepared based on the simple understanding of the employees who will answer them.