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HRM3701: Strategic Human Resource Provisioning
OCT/NOV Examination 2026 — Covers Papers from 2023 to 2025
⋆ ⋄ ⋆ ⋄ ⋆ ⋄ ⋆ ⋄ ⋆
Human Resource Management — SABPP Accredited
Exam Revision Guide
HRM3701
Module Code:
Strategic Human Resource Provisioning
Module Name:
Oct/Nov 2023, Oct/Nov 2024, Oct/Nov
Papers Covered:
2025
Oct/Nov 2026
Target Exam:
100 (2 hours)
Total Marks:
Case-study application + theory questions
Format:
Understand concepts deeply and apply them to scenarios. Surface memorisation
rarely scores well in HRM3701 — the examiner rewards demonstrated understand-
ing and contextual application.
Exam Revision Notes | HRM3701 | 2023–2025
,HRM3701 | Exam Revision Oct/Nov Examination 2026
OCT/NOV 2025 EXAMINATION PAPER
HRM3701 — Strategic Human Resource Provisioning
Duration: 2 Hours Total: 100 Marks Closed Book
Case Study: PAL Pharmaceuticals
PAL Pharmaceuticals is a mid-sized South African pharmaceutical company head-
quartered in Johannesburg with branch operations in Cape Town and Durban. The
HR Director, Ms Nkosi, has recently been tasked by the Board of Directors to review
and overhaul the company’s approach to human resource provisioning. The Board is
concerned that PAL has experienced a 28% annual staff turnover rate over the last two
years, particularly among qualified pharmacists and laboratory technicians. Ms Nkosi
has noted that the current recruitment process relies heavily on newspaper advertise-
ments and walk-in applications, with no structured selection process in place. She has
also observed that line managers conduct informal interviews without standardised
criteria, and onboarding takes place in an ad hoc manner. The Board wants PAL to
implement a strategic, evidence-based approach to HR provisioning.
Page 2 of 39
,HRM3701 | Exam Revision Oct/Nov Examination 2026
Question 1 [25 marks]
(a) [8 marks]
Question: Ms Nkosi has been asked to compile a report motivating the need for Strate-
gic Human Resource Planning (SHRP) at PAL Pharmaceuticals. Distinguish
between traditional HR planning and strategic HR planning, and explain the key steps in
the SHRP process. Your answer should reference the PAL Pharmaceuticals scenario. (8)
Answer:
Key Concept
Strategic HR Planning (SHRP) is a forward-looking process that integrates human
resource planning with the overall strategic objectives of an organisation, ensuring the
right people are available in the right numbers, with the right competencies, at the
right time and at the right cost.
Distinction Between Traditional HR Planning and SHRP:
Table 1: Traditional HR Planning vs Strategic HR Planning
Dimension Traditional HR Planning Strategic HR Planning
Time horizon Short-term (1 year or less) Long-term (3–5 years)
Focus Filling vacancies reactively Aligning people strategy with
business strategy
Approach Operational and administrative Strategic and analytical
Integration Standalone HR function Integrated with corporate strat-
egy
Decision basis Past patterns Forecasting, scenarios, workforce
analytics
Role of HR Administrative support Strategic business partner
Key Steps in the SHRP Process (applied to PAL):
1. Align with Organisational Strategy: Ms Nkosi must understand PAL’s strategic
direction — growth, market expansion, or consolidation — to determine the type and
number of employees needed going forward.
2. Analyse the Current Workforce (HR Audit): Conduct a skills inventory to assess
the competencies PAL currently has, particularly in the pharmacist and laboratory techni-
cian roles that are experiencing high turnover.
Page 3 of 39
,HRM3701 | Exam Revision Oct/Nov Examination 2026
3. Forecast HR Demand: Project future staffing needs based on PAL’s operational plans,
patient volumes, regulatory requirements, and planned branch expansions.
4. Forecast HR Supply: Assess both internal supply (promotions, transfers, succession)
and external supply (labour market availability of qualified pharmacists in South Africa).
5. Identify the HR Gap: Compare demand and supply forecasts. PAL’s 28% turnover
indicates a persistent supply shortfall that strategic planning must address.
6. Develop HR Programmes: Design targeted interventions — such as employer brand-
ing, structured recruitment pipelines, retention packages, and development pathways.
7. Implement and Monitor: Execute the plan and track key HR metrics (time-to-fill,
turnover rate, vacancy rate) to evaluate effectiveness.
Example
At PAL, the 28% turnover rate signals a structural HR supply problem, not merely a
recruitment failure. A SHRP approach would look beyond placing advertisements and
instead forecast pharmacist availability in the SA labour market, build relationships
with pharmacy schools, and design retention strategies addressing why pharmacists are
leaving.
(b) [10 marks]
Question: HR demand and supply forecasting are essential components of SHRP. Dis-
cuss THREE quantitative techniques for forecasting HR demand and TWO internal
supply forecasting methods that Ms Nkosi could use at PAL Pharmaceuticals. (10)
Answer:
Three Quantitative Techniques for HR Demand Forecasting:
1. Trend/Ratio Analysis: This technique uses historical data to identify patterns between
a business activity indicator (such as revenue or patient visits) and the number of em-
ployees needed. At PAL, Ms Nkosi could analyse the ratio of pharmacists to prescription
volumes over the past five years to project future pharmacist requirements as the company
grows.
2. Regression Analysis: A statistical method that establishes a relationship between one
or more independent variables (e.g., sales revenue, production output) and the dependent
variable (headcount). Multiple regression allows multiple business drivers to be factored in
Page 4 of 39
,HRM3701 | Exam Revision Oct/Nov Examination 2026
simultaneously, giving a more accurate demand forecast for PAL’s various roles.
3. Workforce Productivity Ratios / Workload Analysis: This method involves cal-
culating the standard workload per employee and dividing projected total workload by
this standard to determine the number of employees required. For PAL, if each laboratory
technician can process 200 tests per month and PAL projects 4 000 tests monthly, then 20
technicians are required.
Two Internal Supply Forecasting Methods:
1. Skills Inventory / HR Audit: A database of each employee’s current skills, qualifica-
tions, experience, performance ratings, and readiness for promotion. At PAL, this would
reveal which current employees could be upskilled or promoted into senior pharmacist
roles, reducing reliance on external hiring.
2. Replacement/Succession Charts: Visual organisational charts that identify potential
successors for key positions, their readiness levels, and developmental needs. PAL could
use succession charts to identify backup candidates for senior roles, reducing the impact of
unexpected departures among its laboratory leadership.
Exam Tip
The examiner awards marks for correct naming, a clear definition, and application to
the scenario. Listing five methods without application typically earns fewer marks than
three well-applied methods.
(c) [7 marks]
Question: Identify and explain FOUR strategies that Ms Nkosi at PAL Pharmaceuticals
could implement to address a labour surplus, should the HR demand forecast reveal that
PAL has more employees than required. (7)
Answer:
A labour surplus exists when an organisation has more employees than its operational re-
quirements demand. The following strategies can address this:
1. Attrition (Natural Wastage): Allow the surplus to reduce gradually as employees re-
sign, retire, or otherwise leave the organisation. PAL would implement a hiring freeze and
rely on natural departures to bring headcount into balance. This is the least disruptive
Page 5 of 39
, HRM3701 | Exam Revision Oct/Nov Examination 2026
approach but takes time.
2. Early Retirement Packages: Offer voluntary early retirement incentives to eligible
employees, typically those approaching retirement age. This reduces headcount while
allowing employees to leave with dignity and financial support.
3. Redeployment/Transfer: Reassign surplus employees from overstaffed departments to
areas experiencing shortages. At PAL, administrative staff could be retrained and trans-
ferred to support roles in the laboratory or pharmacy operations, addressing a simultane-
ous shortage in those areas.
4. Reduced Working Hours / Part-Time Arrangements: Convert full-time positions
to part-time or introduce job sharing, reducing costs while retaining experienced employ-
ees. PAL could offer senior pharmacists a four-day work week during slower operational
periods.
5. Retrenchment (Last Resort): Involuntary termination of employment in compliance
with the Labour Relations Act 66 of 1995, specifically section 189 requirements for fair
retrenchment, including consultation with employees, fair selection criteria, and severance
pay.
Watch Out
Retrenchment must follow the procedural and substantive fairness requirements of the
LRA. PAL cannot simply dismiss surplus employees — this would expose the company
to unfair dismissal claims at the CCMA.
Page 6 of 39
]]
HRM3701: Strategic Human Resource Provisioning
OCT/NOV Examination 2026 — Covers Papers from 2023 to 2025
⋆ ⋄ ⋆ ⋄ ⋆ ⋄ ⋆ ⋄ ⋆
Human Resource Management — SABPP Accredited
Exam Revision Guide
HRM3701
Module Code:
Strategic Human Resource Provisioning
Module Name:
Oct/Nov 2023, Oct/Nov 2024, Oct/Nov
Papers Covered:
2025
Oct/Nov 2026
Target Exam:
100 (2 hours)
Total Marks:
Case-study application + theory questions
Format:
Understand concepts deeply and apply them to scenarios. Surface memorisation
rarely scores well in HRM3701 — the examiner rewards demonstrated understand-
ing and contextual application.
Exam Revision Notes | HRM3701 | 2023–2025
,HRM3701 | Exam Revision Oct/Nov Examination 2026
OCT/NOV 2025 EXAMINATION PAPER
HRM3701 — Strategic Human Resource Provisioning
Duration: 2 Hours Total: 100 Marks Closed Book
Case Study: PAL Pharmaceuticals
PAL Pharmaceuticals is a mid-sized South African pharmaceutical company head-
quartered in Johannesburg with branch operations in Cape Town and Durban. The
HR Director, Ms Nkosi, has recently been tasked by the Board of Directors to review
and overhaul the company’s approach to human resource provisioning. The Board is
concerned that PAL has experienced a 28% annual staff turnover rate over the last two
years, particularly among qualified pharmacists and laboratory technicians. Ms Nkosi
has noted that the current recruitment process relies heavily on newspaper advertise-
ments and walk-in applications, with no structured selection process in place. She has
also observed that line managers conduct informal interviews without standardised
criteria, and onboarding takes place in an ad hoc manner. The Board wants PAL to
implement a strategic, evidence-based approach to HR provisioning.
Page 2 of 39
,HRM3701 | Exam Revision Oct/Nov Examination 2026
Question 1 [25 marks]
(a) [8 marks]
Question: Ms Nkosi has been asked to compile a report motivating the need for Strate-
gic Human Resource Planning (SHRP) at PAL Pharmaceuticals. Distinguish
between traditional HR planning and strategic HR planning, and explain the key steps in
the SHRP process. Your answer should reference the PAL Pharmaceuticals scenario. (8)
Answer:
Key Concept
Strategic HR Planning (SHRP) is a forward-looking process that integrates human
resource planning with the overall strategic objectives of an organisation, ensuring the
right people are available in the right numbers, with the right competencies, at the
right time and at the right cost.
Distinction Between Traditional HR Planning and SHRP:
Table 1: Traditional HR Planning vs Strategic HR Planning
Dimension Traditional HR Planning Strategic HR Planning
Time horizon Short-term (1 year or less) Long-term (3–5 years)
Focus Filling vacancies reactively Aligning people strategy with
business strategy
Approach Operational and administrative Strategic and analytical
Integration Standalone HR function Integrated with corporate strat-
egy
Decision basis Past patterns Forecasting, scenarios, workforce
analytics
Role of HR Administrative support Strategic business partner
Key Steps in the SHRP Process (applied to PAL):
1. Align with Organisational Strategy: Ms Nkosi must understand PAL’s strategic
direction — growth, market expansion, or consolidation — to determine the type and
number of employees needed going forward.
2. Analyse the Current Workforce (HR Audit): Conduct a skills inventory to assess
the competencies PAL currently has, particularly in the pharmacist and laboratory techni-
cian roles that are experiencing high turnover.
Page 3 of 39
,HRM3701 | Exam Revision Oct/Nov Examination 2026
3. Forecast HR Demand: Project future staffing needs based on PAL’s operational plans,
patient volumes, regulatory requirements, and planned branch expansions.
4. Forecast HR Supply: Assess both internal supply (promotions, transfers, succession)
and external supply (labour market availability of qualified pharmacists in South Africa).
5. Identify the HR Gap: Compare demand and supply forecasts. PAL’s 28% turnover
indicates a persistent supply shortfall that strategic planning must address.
6. Develop HR Programmes: Design targeted interventions — such as employer brand-
ing, structured recruitment pipelines, retention packages, and development pathways.
7. Implement and Monitor: Execute the plan and track key HR metrics (time-to-fill,
turnover rate, vacancy rate) to evaluate effectiveness.
Example
At PAL, the 28% turnover rate signals a structural HR supply problem, not merely a
recruitment failure. A SHRP approach would look beyond placing advertisements and
instead forecast pharmacist availability in the SA labour market, build relationships
with pharmacy schools, and design retention strategies addressing why pharmacists are
leaving.
(b) [10 marks]
Question: HR demand and supply forecasting are essential components of SHRP. Dis-
cuss THREE quantitative techniques for forecasting HR demand and TWO internal
supply forecasting methods that Ms Nkosi could use at PAL Pharmaceuticals. (10)
Answer:
Three Quantitative Techniques for HR Demand Forecasting:
1. Trend/Ratio Analysis: This technique uses historical data to identify patterns between
a business activity indicator (such as revenue or patient visits) and the number of em-
ployees needed. At PAL, Ms Nkosi could analyse the ratio of pharmacists to prescription
volumes over the past five years to project future pharmacist requirements as the company
grows.
2. Regression Analysis: A statistical method that establishes a relationship between one
or more independent variables (e.g., sales revenue, production output) and the dependent
variable (headcount). Multiple regression allows multiple business drivers to be factored in
Page 4 of 39
,HRM3701 | Exam Revision Oct/Nov Examination 2026
simultaneously, giving a more accurate demand forecast for PAL’s various roles.
3. Workforce Productivity Ratios / Workload Analysis: This method involves cal-
culating the standard workload per employee and dividing projected total workload by
this standard to determine the number of employees required. For PAL, if each laboratory
technician can process 200 tests per month and PAL projects 4 000 tests monthly, then 20
technicians are required.
Two Internal Supply Forecasting Methods:
1. Skills Inventory / HR Audit: A database of each employee’s current skills, qualifica-
tions, experience, performance ratings, and readiness for promotion. At PAL, this would
reveal which current employees could be upskilled or promoted into senior pharmacist
roles, reducing reliance on external hiring.
2. Replacement/Succession Charts: Visual organisational charts that identify potential
successors for key positions, their readiness levels, and developmental needs. PAL could
use succession charts to identify backup candidates for senior roles, reducing the impact of
unexpected departures among its laboratory leadership.
Exam Tip
The examiner awards marks for correct naming, a clear definition, and application to
the scenario. Listing five methods without application typically earns fewer marks than
three well-applied methods.
(c) [7 marks]
Question: Identify and explain FOUR strategies that Ms Nkosi at PAL Pharmaceuticals
could implement to address a labour surplus, should the HR demand forecast reveal that
PAL has more employees than required. (7)
Answer:
A labour surplus exists when an organisation has more employees than its operational re-
quirements demand. The following strategies can address this:
1. Attrition (Natural Wastage): Allow the surplus to reduce gradually as employees re-
sign, retire, or otherwise leave the organisation. PAL would implement a hiring freeze and
rely on natural departures to bring headcount into balance. This is the least disruptive
Page 5 of 39
, HRM3701 | Exam Revision Oct/Nov Examination 2026
approach but takes time.
2. Early Retirement Packages: Offer voluntary early retirement incentives to eligible
employees, typically those approaching retirement age. This reduces headcount while
allowing employees to leave with dignity and financial support.
3. Redeployment/Transfer: Reassign surplus employees from overstaffed departments to
areas experiencing shortages. At PAL, administrative staff could be retrained and trans-
ferred to support roles in the laboratory or pharmacy operations, addressing a simultane-
ous shortage in those areas.
4. Reduced Working Hours / Part-Time Arrangements: Convert full-time positions
to part-time or introduce job sharing, reducing costs while retaining experienced employ-
ees. PAL could offer senior pharmacists a four-day work week during slower operational
periods.
5. Retrenchment (Last Resort): Involuntary termination of employment in compliance
with the Labour Relations Act 66 of 1995, specifically section 189 requirements for fair
retrenchment, including consultation with employees, fair selection criteria, and severance
pay.
Watch Out
Retrenchment must follow the procedural and substantive fairness requirements of the
LRA. PAL cannot simply dismiss surplus employees — this would expose the company
to unfair dismissal claims at the CCMA.
Page 6 of 39
