STRATEGIC HUMAN RESOURCE PLANNING

Human Resource Planning (HRP)

Human resource planning (HRP) is the process of systematically reviewing human resource
requirements to ensure that the number of employees matches the required skills. It is the process of
matching the internal and external supplies of people with job openings anticipated in the organization
over a specific period of time. Some organizations continue to provide lip service to these important
functions. Nevertheless, presently, HRP is increasingly being recognized as an important component of
Human Resource Management.

What is Strategic Planning?

Strategic planning is the determination of the overall organizational purpose and goals and how
they are to be achieved. Human resource is the integral component of a strategic plan, which greatly
affects productivity and organizational performance.

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 aspirations of each individual in the
organization and developing them for improved productivity.
4. Management Development
Assessing and determining the developmental needs of managers for future succession
requirements.

Planning Techniques in HR Management

1. Skills Inventory
This approach involves the listing of all the skills possessed by the workforce and they are
made to relate to the requirements of the organization. This technique requires detailed
information of the experience and training of every individual in the organization.
2. Ratio Analysis
This is technique wherein the personnel who are promotable to the higher positions are
identified together with their backup or understudy. There should be a ratio that will ensure
that promotions will not create any void. To accomplish this, recruitment must support the
backup requirements. At the same time, training must be done to develop the backup ration.
3. Cascade Approach
Under this approach the setting of objectives flows from the top to bottom in the organization
so that everyone gets a chance to make his contribution. This approach results in the
 formulation of a plan wherein the objectives of the rank and file get included in the blueprint
for action. The plan is then a participatory planning output.
4. Replacement Approach
Under this approach, HRP is done to have a body of manpower in the organization that is
ready to take over existing jobs on a one-to-one basis within the organization. This approach
calls year-round acceptance of applications for possible replacements.
5. Commitment Planning Approach
This technique involves the supervisors and personnel in every component of the organization
on the identification of manpower needs in terms, skills, replacements, policy, working
conditions and promotion so that human resource in the organization may be up to the
challenge of current and future operations. The units thus become conscious of their needs
and aware of the ways the human resource requirements can be met.
6. Successor Planning Approach
The approach known as successor planning takes into consideration the different components
of the old plan and increase them proportionately by the desired expansion rate stated by
management. The cost of doing the activities is likewise increased. Any new concern is set up
at a starting scale and viewed in proportion with other comparable aspects of the existing
plan. This approach also enables the personnel staff to get by without having to ask much
from management which, in turn, does not expect much from the HR staff in terms of radical
change.

CASE STUDY
THE OUTSIDER

Peter Movers Corporation was expanding its operation in the construction business and
trading activities. Most of the employees come from technically trained manpower due to the
nature of the work. The management feels that they need to hire new and fresh executives
to beef up the growing work force.

A non-technical executive in the person of Roger Santiago was added to the working
teams of managers. He was assigned as assistant to the President and Chief Executive Officer.
The work of Mr. Santiago covers analysis of manpower programs and cost related activities
and to give advice to the president on some management aspects that are not generally
handled by line managers.

The appointment of Mr. Santiago was not received well by older managers. They felt that
an insider should have been placed instead as Assistant to the President. Mr. Santiago had
difficulty getting some important information from line managers, without the expressed
orders from the President. Nevertheless, Mr. Santiago continued to prove his worth by
instituting new work programs and managerial activities that brought substantial
improvement in the company operation and profitability. He worked for management
compensation systems that gave more benefits and produced more dedicated manpower. He
made a lot of improvements in system design and work improvement programs.

Five years later Mr. Santiago was promoted to the position of Vice-President. During the
period of proving his managerial competence, managerial employees slowly began to like him
as a person worthy of the position. His promotion to the position was well received by all.

Questions:

1. Decide if the president was right in his choice of the person for the job. How would you
react if you were one of the managers?
2. If you were Mr. Santiago, how would you act in such a situation?
3. Justify the action taken by the president.
4. Comment on the actions taken by Mr. Santiago.

Reference: Pereda, Pedrito Real and Purisima P.; Human Resource Management; 2008.