Farah’s Report THE 8 STEPS OF ORGANIZING THE OBJECTIVES OF AN

ORGANIZATION
WHAT IS PLANNING?
1. Review or define your company's mission
Planning is the fundamental management function,
2. Know your strengths and weaknesses
which involves deciding beforehand, what is to be done,
3. Consider key factors
when is it to be done, how it is to be done and who is
4. Brainstorm with your employees
going to do it. It is an intellectual process which lays down
5. Begin with a five-year plan
an organisation’s objectives and develops various courses
6. Organize your objectives
of action, by which the organisation can achieve those
7. Set deadlines
objectives. It chalks out exactly, how to attain a specific
8. Assign ownership of each objective
goal.

"Planning is bringing the future into the present so that

you can do something about it now." - Alan Lakein Review or define your company's mission

HUMAN RESOURCE PLANNING Having a clearly defined mission statement helps your
organization and the public know what your overall
Human resource planning (HRP) is the continuous
purpose is. Your organization ' s objectives should come
process of systematic planning to achieve optimum use
directly from this vision, serving as the concrete ways you
of an organization's most valuable asset—quality
will accomplish your mission.
employees. Human resources planning ensures the best
fit between employees and jobs while avoiding Know your strengths and weaknesses
manpower shortages or surpluses.
Many organizations find it helpful to run a SWOT analysis,
It includes estimation of how many qualified people are which determines strengths, weaknesses, opportunities
necessary to carry out the assigned activities, how many and threats. This can provide valuable insights into areas
people will be available, and what, is anything, must be where your organization is succeeding and areas that
done to ensure that personal supply equals personnel may require more attention. You can use this information
demand at the appropriate point in the future. to create realistic objectives and decide how to allocate
resources in a relevant way for your company and
Basically, it is the process by which an organization
industry.
ensures that it has the right number and kind of people,
at the right place, at the right time, capable of effective Consider key factors
and efficient completing those tasks that will help the
When determining organization objectives, factor in any
organization achieve its overall objectives.
relevant internal or external variables that can affect your
organization ' s operations, including:

IMPORTANCE AND BENEFITS OF HUMAN RESOURCE 1. Budget Resources

PLANNING (HRP) 2. Technology
3. Staffing needs
1. Future Personnel Needs
4. Company culture
2. Coping With Change
3. Creating Highly Talented Personnel Brainstorm with your employees
4. Protection Of Weaker Section
Invite employees to provide feedback about your
5. International Strategies
organization, such as strategies that are successful and
6. Foundation For Personnel Function
areas that are more challenging. Employees may also
7. Increase Investment in Human Resource
have insights directly from clients or customers that can
8. Resistance To Change and Move
help shape your company ' s priorities and goals.
Glorianne’s Report Including your employees ' and clients ' perspectives in
your planning can ensure your objectives are practical
DETERMINING ORGANISATIONAL OBJECTIVES
and relevant. Additionally, feedback from employees can
help you provide the necessary tools and support for Assign ownership of each objective
them to complete the daily responsibilities that enable
Choose which departments or managers are in charge of
your organization to achieve its objectives.
reaching each organizational objective. For some
Begin with a five-year plan objectives, this can be a logical determination. For
instance, if you have an objective to increase sales by
It' s wise to begin creating your objectives by thinking
20%, it makes sense for the sales director to be in charge
about where you want the organization to be in five
of this goal. Other objectives may need more discussion
years. From that point, you can create long-term
and collaboration to identify a point person. For example,
objectives that align with these plans, followed by the
a goal of enhanced logistics involves the production
short-term (one-year) objectives that are necessary to
department, sales department and delivery personnel.
reach those goals.

Organize your objectives

Angelica Nieva’s Report
Decide what types of objectives work best with your
organization: Demand and Supply Forecast

Strategic: Strategic objectives are typically long-term, it is the process of estimating the future numbers of
broader goals that apply to an organization as a whole. people required and the likely skills and competences
For example, your organization may have a strategic they will need. Forecasting human resource demand is
objective to have a client retention rate of 80% in three the process of estimating the future human resource
years. requirement of right quality and right number.

Tactical: Tactical objectives typically apply to each specific forecasting demand involves determining the numbers
department. Middle-level managers define these and kinds of personnel that an organization will need at
departmental goals, which help companies achieve their some point in the future.
strategic objectives. A tactical goal for the above strategic
goal might be to receive 90% positive customer ratings.
Decide what types of objectives work best with your Two Approaches in Demand Forecasting (Manpower)
organization:
• Qualitative Approach also called as “Skills
Operational: Operational objectives are short-term, analysis”
specific goals that are better suited for performance • Rely on human judgment, intuition, and
measurement on a weekly or monthly basis, usually experience to make predictions based on
created by lower-level managers. An operational subjective factors, such as opinions, preferences,
objective that aligns with the previous strategic and expectations, and feelings.
tactical goals is to reach a client retention rate might be • Some examples of qualitative methods are
to make 100 outreach calls to clients each week surveys, focus groups, interviews, Delphi
method, and scenario analysis.

One objective or several objectives: Your organization • Quantitative Approach it uses mathematical
may focus on a single principal objective to demonstrate models and statistical techniques to make
your company ' s current focus, or you may choose predictions based on numerical data, such as
several key objectives. sales, prices, income, population, and
seasonality.
Set deadlines
• Used when there is sufficient and reliable
Determine the timeframe of your objectives and the historical data available, and when the demand
target deadline for each of these goals. The deadlines follows a regular pattern or trend.
should be realistic but challenging. As deadlines • Some examples of quantitative methods are time
approach, managers can adjust as needed. series analysis, regression analysis, exponential
smoothing, and moving averages.
 Gap – an incomplete or deficient area

Relevant Factors for Human Resourced Demand

Forecasting:

1. Replacement Needs of Employees Due to Death

2. Retirement Termination
3. Resignations
4. Absenteeism and Labour Turnover
5. Growth and Expansion of Organization
6. Productivity of Employees

SUPPLY FORECASTING (MANPOWER)

The process of estimating availability of human resource

followed after demand for testing of human resource.
measures the number of people likely to be available
from within and outside the organization, having allowed
for absenteeism, internal movements and promotions,
wastage and changes in hours and other conditions of
work.

EXTERNAL AND INTERNAL SUPPLY

INTERNAL SUPPLY

• human resource available by way of transfers,

promotions, retired employees & recall of laid-
off employees.
• companies assess their teams to determine who
they could promote or laterally transition into
open roles.

EXTERNAL SUPPLY

• Source of external supply of human resource is

availability of Laboure force in the market and
new recruitment.

• When an organization lacks an internal supply of

employees for promotions, or when the
organization is staffing entry level positions
managers must consider the external supply of
labor.

Jamaica’s Report

Identifying Manpower Gap

Manpower – total supply of persons available and fitted

for service.
 • The HR manager also develops training programs to
ensure the people hired have the tools to be able to do
their jobs successfully. (Gregory,2021)

The steps to strategic plan creation

• Conduct a strategic analysis Understand the

company mission and values
• Understand the HR department's mission and
values
• Understand the challenges facing the
department (Gregory,2021)

align with business needs

“... the first step is to align both strategies. Business

strategies will more than likely focus on external goals to
bring in revenue while the HR strategy will look at what
is needed for the business to reach these goals.
Soria’s Report
Be clear about what you want from your people and how
Formulating and Implementing HRP they fit into your overall goals.” (Cseguin, 2023)

Human resource planning is a process that is part of the The steps to strategic plan creation
strategic plan. It involves addressing specific needs within
1. Prioritize issues and actions
the organization, based on the company's strategic
2. Can do this using a SWOT analysis
direction.
3. Understand the organizational lifecycle
• The first step in HR planning is determining current and (planning, growth, maturity, and decline.)
future human resource needs. In this step, current 4. Draw up the HRM plan (Gregory,2021)
employees, available employees in the market. and
“The Key to Successful HR Planning is Information”
future needs are all analyzed and developed.
(Gregory,2021) (Ivancevich & Konopaske)
In the second step of the process, once we know how
many people we will need to hire, we can begin to
determine the best methods for recruiting the people we Mavi’s Report
need. STRATEGIC HUMAN RESOUCE PLANNING
Sometimes an organization will use head hunters to find WHAT IS HR PLANNING?
the best person for the job. (Gregory,2021)
Human resources planning ensures the best fit between
After the recruiting process is finished, the HR manager employees and jobs while avoiding manpower shortages
will begin the selection process. This involves setting up or surpluses
interviews and selecting the right person for the job This
can be an expensive process, so we always want to hire WHAT IS STRATEGIC HR PLANNING?
the right person from the beginning. (Gregory,2021) Strategic HR planning is a process that helps an
HR managers also need to work through compensation organization to identify current and future human
plans, including salary, bonus, and other benefits, such as resources needs to achieve the end goals. It links human
health care. This aspect is important, since most resource management to the overall strategic plan of an
organizations want to use compensation to attract and organization.
retain the best employees.
The overall purpose of strategic HR planning is to: 4. DEVELOPING HR STRATEGIES TO SUPPORT
ORGANIZATIONAL STRATEGIES
Ensure adequate human resources to meet the strategic
goals and operational plans of your organization – the There are five HR strategies for meeting an organization's
right people with the right skills at the right time. future needs:

Keep up with social, economic, legislative and 1. Training and development strategies
technological trends that impact on human resources in 2. Recruitment strategies
your area and in the sector. 3. Outsourcing strategies
4. Collaboration strategies
Remain flexible so that your organization can manage
5. Restructuring strategies
change if the future is different than anticipated

DEVELOPING A STRATEGIC HR PLAN

IMPLEMENTING HRP STRATEGIES
RESULTS-ORIENTED GOALS BROADLY INCLUDE THE
FOLLOWING: Action Plan It is known as manpower planning
implementation. HR implementation requires converting
• Correctly assessing staffing and skills needs and
an HR plan into action.
keeping training up-to-date.
• Developing and maintaining competitive pay and A series of action are initiated as a part of HR plan
benefits. implementation, such as recruitment, selection and
• Managing performance and designing a rewards placement, socialization, training and development etc.
system that keeps employees motivated. (Ghimire,2023)
• Knowing what competitors are doing to recruit
Action Programs:
and retain talent.
• Providing training, including ethics, which • Recruitment
reinforces corporate values. • Selection and Placement
• Training and Development
• Retraining and Redeployement
Malate’s Report
• The Retention Plan
THE STRATEGIC HR MANAGEMENT PLANNING PROCESS • The Redundance Plan
• The Succession Plan
1. ASSESSING THE CURRENT HR CAPACITY

Based on the organization's strategic plan, the first step

in the strategic HR planning process is to assess the
current HR capacity of the organization. The knowledge,
skills and abilities of your current staff need to be
identified. This can be done by developing a skills
inventory for each employee.

2. FORECASTING HR REQUIREMENTS

The next step is to forecast HR needs for the future based

on the strategic goals of the organization. Realistic
forecasting of human resources involves estimating both
demand and supply.

3. GAP ANALYSIS

The gap analysis includes identifying the number of staff

and the skills and abilities required in the future in
comparison to the current situation.
 Jema’s Report

TRAINING & DEVELOPMENT

What is Training & Development in HRM?

Training and development in Human Resource

Management (HRM) refers to educational activities
within a company created to enhance the knowledge and
skills of employees. It includes various tools, instructions,
and activities to improve employee performance.

In training, the initiative is taken by the management to

meet the present needs of an employee. In development,
initiative is taken by the individual to meet the future
needs of an employee. (Darwinbox, n.d.)

Purpose of Training & Development in Organizations

LOWERS ATTRITION

Training is one of the best ways to value your employees.

An action plan is formulated and implemented based on It shows them that you are as invested in their well-being
the gap analysis. The HR manager may take the following and growth as they are in your growth as a company
actions:
FOSTERS LEADERSHIP
In the case of Surplus
Training and development help identify high-potential
1. Hold hiring individuals who are likely to become leaders and extend
2. Reduce working Hours the capabilities and knowledge of individuals who
3. Offer voluntary retirement, etc already perform leadership roles.
In case of Deficit: PREPARES FOR UPCOMING CHALLENGES
1. Recruit new employees Training can be a pre-emptive step to train employees for
2. Retain employees expected or unexpected changes in the industry.
3. Transfers & Promotions
GROWTH OF THE COMPANY
4. Train existing employees, etc
Any company dedicated to training its workforce will only
IMPLEMENTING HRP STRATEGIES
prosper and move forward. The employees are a major
“Strategies tends to be expressed as abstractions, they part of a company's assets and taking care of them will
must be translated into programs with clearly stated mean taking care of the organization. (Darwinbox, n.d.)
objectives ...” (Sharma,2023)

The problem with HRM strategy as noted by Gratton et.

al. (1999) is that “too often, there is a gap between what
the strategy states will be achieved and what actually
happens to it.”
The ADDIE model is an instructional design model used
by training developers and other educators. It consists of
five critical phases:

ADDIE five steps of effective training

 1. Analysis
2. Design
3. Development
4. Implementation
5. Evaluation

Types of Training and Development

Technical Training

• employee the technological aspects of the job.

Benefits of Training and Development in HRM
Skill Training
• Improved employee retention
• Aims to equip employees with the knowledge
• Develops future leaders
and attributes necessary to carry out their duties
• Empowers employees
at the optimal level.
• Boosts workplace engagement
Soft Skill Training • Boosts work satisfaction and morale
• Builds workplace relationships
• Focuses on the development of abilities such as
communication, teamwork, and problem-solving
as opposed to hard skills which focus on an
Aaliyah’s Report
employee's technical ability.
EVALUATION AND MONITORING OF MANPOWER
Quality Training
EVALUATION
• Refers to familiarizing employees with the means
of preventing, detecting, and eliminating The purpose of an HR Evaluation is to recognize strengths
nonquality items, usually in an organization that and identify any needs for improvement in the human
produces a product. resources function

Professional Training MONITORING

• Normally given externally and might be obtaining Monitoring is all about an organization ' s plans for
certification or specific information needed reviewing and refining the plan.
about a profession to perform a job.

Examples of Training and Development Programs for

Employees

1. On-the-job training
2. Coaching or Mentoring scheme
3. Time-management program
4. Leadership program
5. Personal development scheme
6. Job shadowing
 SIR ALLAN PPT BU + WORLD CLASS STATURE =
PPT 1 • Produce PA students who are excellent
Enriching Sense of Belongingness individuals
• Research University
• Innovations
BU – VISION • Academe-Government- Collaborations
A university for humanity, characterized by productive • Credibility of students
scholarship, transformative leadership, collaborative • Faculty-Student Collaborations (Find a good
service, and distinctive character for sustainable mentor)
societies.

PRODUCTIVE SCHOLARSHIP

• can mean that they must have acquired “a fund

of knowledge”, utilize this knowledge in the
generation, application of, and contribution to
the development of the yourself and others.

TRANSFORMATIVE LEADERSHIP

• may refer to the development of the students

“power or ability to influence people to get
things done.” BU students are expected to
demonstrate effective and inspiring servant
leadership in accomplishing tasks in the real
world of studies and work.

COLLABORATIVE SERVICE

• Students are expected to have inculcated the

value of giving or have developed the ability to
contribute for the welfare of others (as men or
women for others). He/she is expected to
contribute to the development of other people,
groups and the society. It is his/her commitment
to improve the life of the people he/she serves
that separates BU students from others.

DISTINCTIVE CHARACTER

• makes the BU students unique. It is the “force

within each individual, which distinguishes
him/her from others”. Aside from moral
uprightness, BU students are expected to have a
“heart” for others, and a “will” to be at their best
at all times.
 PPT 2 MANAGEMENT
Human Resource Management
• Staffing:
Human - refers to the skilled workforce in an hire, recruiting, selecting, training and developing,
organization. setting performance standards, evaluating, counseling
PEOPLE and compensating employees
Referred to as:
• Planning
• Staff
• Manpower • Organizing
• Employees • Leading
• Workforce • Controlling

HRM: acquiring, training, appraising and compensating

Resource - refers to limited availability or scarce.
employees
TALENT
Referred to as:
• Skills 3 Concepts of HRM
• Knowledge
• Life experiences 1. Dynamic
2. People
3. Organization
Management – refers how to optimize and make best use
of such limited or scarce resource so as to meet the DYNAMIC
organization goals and objectives.

7 M’s of Management
1. Man
2. Money
3. Minutes
4. Methods
5. Materials
6. Machines
7. Market

HUMAN
• The only living resource with unlimited potentialities
with Body, Mind, Heart and the Spirit
• Talent Investor
• Capital
• Brain Resource
• Asset • Constantly Changing
• Knowledge Worker • HRM must make up strategies to retain employees
and help them to develop theirselves.

✓ Foundation of the Organization

✓ They do the day-to-day operations
ORGANIZATION

• Contains 2 or more people having the same goals in

mind. They do the day-to-day operations
• Goals may be ecological, financial, political, and etc.
HRM: Definition and Nature ASPECTS OF HRM

• “HRM is the function performed in organizations that Staffing

facilitates the most effective use of people to achieve
-includes the development of a strategic plan to
organizational and individual goals.
determine how many people you might need to hire.
• HRM is the effective use of an organization’s
Based on the strategic plan, HRM then performs the
human resource to improve its performance.
hiring process to recruit and select the right people for
• Human Resource Management is the productive
the right jobs
use of people in achieving the organization’s
strategic business objectives and the satisfaction Basic workplace Policies
of the individual
- Development of policies to help reach the strategic
• Human Resource Management is the art and
plan’s goals is the job of HRM. After the policies have
science of acquiring, motivating, maintaining, and
been developed, communication of these policies on
developing people in their jobs in light of their
safety, security, scheduling, vacation times, and flextime
personal, professional and technical knowledge,
schedules should be developed by the HR department.
skills, potentialities, needs and values and in
synchronization with the achievement of Compensation and benefits
individual, organization and society’s goals.
- In addition to paychecks, 401(k) plans, health benefits,
• The function performed in organizations that
and other perks are usually the responsibility of an HR
facilitates the most effective use of people
manager.
(employees) to achieve organizational and individual
goals. – The policies, practices and systems that Retention
influence employees’ behavior, attitude and
performance in the attainment of organizational - Assessment of employees and strategizing on how to
goals. – Attract, retain, maintain (ARM) retain the best employees is a task that HR managers
oversee, but other managers in the organization will also
• It is function performed in the organizations to
facilitate the most effective use of workforce / provide input.
employees Training and development
• It is management function that helps organizations to
recruit, select, train and develop manpower to - Helping new employees develop skills needed for their
achieve goals. Also covers compensation, jobs and helping current employees grow their skills are
maintenance and growth of employees. also tasks for which the HRM department is responsible.
• The policies, practices and systems that influence Determination of training needs and development and
employees behavior, attitudes, performance. implementation of training programs are important tasks
in any organization.

Regulatory issues and worker safety

Why Study HRM?
- Keeping up to date on new regulations relating to
1. Line manager is key link between employee and employment, health care, and other issues is generally a
organization. responsibility that falls on the HRM department.
2. Line manager needs knowledge and understanding
of HRM
3. How practices influence the success of the “Panalmingan ki Marhayrahay na JMRIGD students kan
organization. HRM”

Daing Supog - Can work with others ….

Presentatdo - Ano maitutuwang ko. Bako na ano an

pwedeng pakinabang ko.
Maninigo asin Matanos - Adheres to prescribed policies, PLANNING
rules and regulations, standards and laws.
“The planning function involves establishing goals and
Danay asin Minsan Saen - Contribute to culture of standards, developing rules and procedures, and
excellence on a long term. forecasting”

May Pagmakulog - Possitively takes comments feedbacks Situation

constructive.
“Ms. Jocelyn Quinalsunan - Quo spends most of
her time at work establishing goals for her staff of thirty
employees and developing procedures for various tasks
PPT 3
MANAGEMENT OF HUMAN RESOURCES Ms. Quo is performing the planning function of the
management process which requires managers to
JOB FAIR – HAPPY RETIREMENT establish goals and standards, develop rules and
• Manpower planning and forecasting procedures, and develop plans and forecast.
• Selection and staffing
• Training and development
LEADING
• Performance management
• Employee discipline “The leading function of the management process
• Promotion of employee welfare and productivity requires a manager to get others to get the job done;
maintaining morale, and motivating subordinates.”
Explain what human resource management is and how it
relates to the management process Situation
“Human resource management is the process of “MS. ULAY K. KRISSI always start the day with a
acquiring, training, appraising, and compensating prayer and good vibes and the Nike’s spirit of “Just do it”
employees, and of attending to their labor relations, or BDO’s tagline “We find ways” and emphasizes the
health and safety, and fairness concerns. HRM falls under value of team work”
the staffing function of the management process
Ms. Krissi is performing the leading function of the
management process which requires a manager to get
others to get the job done; maintaining morale, and
The manager is the person responsible for accomplishing
motivating subordinates.
an organization's goals by planning, organizing, staffing,
leading, and controlling the efforts of the organization's
people.
CONTROLLING

The controlling function involves setting standards such

The basic functions of the management process as sales quotas, quality standards or production levels”
Staffing: Situation
hire, recruiting, selecting, training and developing, “MS. FARAH H. AROG, a manager of BDQ, has
setting performance standards, evaluating, counseling established a monthly sales quota for her sales team”
and compensating employees
Ms. Arog is performing the controlling function of the
• Planning management process which requires a manager to set
• Organizing the standards such as sales quotas, quality standards or
• Leading production levels; checking to see how actual
• Controlling performance compares with these standards; taking
corrective action, as needed
STAFFING ▪ Globalization has increased the size of the
organisation who employ thousands of employees in
The staffing function of the management process
different countries. The performance of the company
determines what type of people you should hire,
depends upon the qualities of the people employed.
recruiting prospective employees, selecting employees,
This has further increased the importance of HRM
training and developing employees, setting performance
▪ HR planning alerts the organization to the types of
standards, evaluating performance, counseling
people it will need in the short, medium & long run.
employees, compensating employees”

Importance for the Employees

SCOPE OF HRM

The Personnel Aspect

▪ HRM stresses on the motivation of employees by
- This aspect of HRM is concerned with the manpower
providing them various financial & non-financial
planning, recruitment, selection, placement, induction,
incentives.
transfer, promotion, demotion, termination, training &
▪ Right organizational climate is also stressed upon so
development, layoff & retrenchment, wage & salary
that the employees can contribute their maximum to
administration, incentives, productivity etc.
the achievement of the organizational objectives.
The Welfare Aspect ▪ Effective management of HR promotes team work &
team spirit among employees.
- The welfare aspect is concerned with working ▪ It offers excellent growth opportunities to people
conditions & amenities such as canteens, rest rooms, who have the potential to rise.
lunch rooms, housing, transport, education, medical ▪ It also encourages people to work with diligence &
help, health & safety, washing facilities recreation & commitment.
cultural activities, etc.

The Industrial Aspect

Importance for the Society
- This aspect is concerned with employees. It includes
union management relations, joint consultation, ▪ Good HR efforts lead to productivity gains (ratio
negotiating collective bargaining, grievance, handling, of output to input) to the society, since it enables
disciplinary actions, settlement of industrial disputes etc. the managers to reduce costs, save scarce
resources, enhance profits & offer better pay,
benefits & working conditions to employees.
IMPORTANCE OF HRM

1. Organization
2. Employees
3. Society

Importance for the Organization

▪ Good human resource practices help in attracting &

retaining the best people in the organization.
▪ In order to make use of latest technology the
appointment of right type of persons is essential. The
right people can be fitted into new jobs properly only
if the management performs its HR function
satisfactorily
 PPT 4 FORECASTING FUTURE HUMAN RESOURCES NEEDS
HUMAN RESOURCE PLANNING (ANALYZE DEMAND)

“It is the process of forecasting future human resources

requirements to ensure that the organization will have
A key component of HRP is forecasting the number and
the required number of employees with the necessary
type of people needed to meet the organizational
skills to meet its strategic objectives.
objectives. Managers should consider several factors
It helps an organization achieve its strategic goals,
achieve economies in hiring new workers, make major when forecasting such requirements. The demand for an
market demands more successfully, anticipate and avoid organization’s product or service is paramount.
shortages and surpluses in human resources and control Managers should consider the following:
or reduce labor costs.
• The demand for the organizations services or
product and goals, coaching, measuring and evaluating
and implementing suitable reward structure. Specific
strategies must be formulated to balance the supply and
demand considerations:

FORECASTING FUTURE HUMAN RESOURCES NEEDS

(DEMAND)

Projected labor demand matches labor supply

(equilibrium)

• Labor Equilibrium is when the expected supply

matches the actual demand organizations do not
need to change their course of action.

Projected labor supply exceeds projected demand

How do we achieve competitive advantage through (surplus)
HR practices? • Labor Surplus exists when the internal supply of
employees exceeds the organization’s demand.
• Traditionally, competitive advantage is gained
through factors such as production capacities, Projected labor demand exceeds projected supply
research, financial sources, distribution channels and (shortage)
economies of scale but only human assets have the
capability to learn, grow and contribute (Fitz-enz, • Labor Shortage exists when the internal supply of
1995) human resources cannot meet the organization’s
needs.
• Committed and competent workforce contributes to
the development of a company’s competitiveness
and sustenance in two ways (Porter, 1985) - either Condition Possible Solution
the company is instinctive enough to come up with
something which its rival is unable to imitate or the Labor Equilibrium
company is fast enough that its rivals are unable to
catch up. • Vacancies are filled internally through training,
transfers, promotions.
• The HRP must align with the over-all goals of the
organization as both the long-term and short- term
strategic plans set by the organization. Fundamental
to the business planning process is the impact and
alignment of HRP.
Labor Surplus – (Hiring freeze) determine how many candidates will likely come from
within the firm
• Attrition: standard employee resignation,
retirement or death
• Early retirement buyout program
A. Skills Inventories and Management Inventories
• Job sharing, work sharing or reduced
workweek • SKILLS INVENTORIES are records summarizing
• Lay-off: temporary or permanent withdrawal employee education, experience, interests, skills
of employment which are used to identify internal candidates eligible
• Termination for transfer or promotion.
• Leave of absence • MANAGEMENT INVENTORIES are records
Internal Solutions to Labor Shortage summarizing the qualifications, interests and skills of
management employees, along with the type and
• Promotions and transfer are popular strategies number of employees supervised, duties of such
to move employees from one job to another in a employees, total budget managed, previous
company. managerial duties and responsibilities and
managerial training received.

• Freeze hiring means that openings are filled by

re-assigning current employees and no outsiders B. Replacement Charts and Summaries
are hired. The surplus is slowly reduced through
• REPLACEMENT CHARTS are visual representations of
attrition, which is the normal separation of
who will replace whom in the event of a job opening.
employees because of resignation, retirement or
Likely internal candidates are listed (along with age,
death. The major drawback of this approach is
present performance rating and promotability
that the firm has no control over who stays or
status.
who leaves.
• Some firms accelerate attrition by offering
incentives to employees to leave such as early
retirement program. Job sharing involves
dividing the duties of a single position between
two or more employees. Work-sharing is working
three or four days a week and receiving
employment insurance on their non-working
day. Reduced work week has no formal
arrangement for insurance. Layoff is temporary
withdrawal of employment to workers for
economic or business reasons. While
termination is a broad term that encompasses
permanent separation of the worker from the
organization.

FORECASTING THE AVAILABILITY OF CANDIDATES

(ANALYZE SUPPLY)

Internal supply are present employees who can

be trained, transferred or promoted to meet anticipated
needs while external supply are people in the labor
market. Before estimating how many external candidates
will need to be recruited and hired, management must
• REPLACEMENT SUMMARIES is a list of likely
replacements for each position and their relative
strengths and weaknesses, as well as information
about current position, performance, promotability,
age and experience.