4. Thema. Personnel Planning

19.09.2013.

Personnel Planning –

analyze of situation before solving specific problem in a basic spheres of personnel management.

There are four categories of staff that are important in manpower planning. There are as follows:

New recruitsPotential staffExisting staffLeavers

Each of these categories requires different decisions to be made by the managers concerned, and some of these are set out below:Category: Decisions

required about: New recruits Recruitment methods

Selection proceduresInductionTrainingTerms of contract

Potential staffRecruitment

methodsPublic

relationsWage/salary

levelsEmployee

benefits

Existing staff

Performance appraisal

ProductivityDeploymentTraining

RemunerationPromotion/

career development

Leavers Dismissals

for poor performanceRetirementsRedundancy

proceduresLabour turnover

Manpower planning

is a process which is linked inextricably both to the corporate aims of the organization and to its economic, social and political environment.

 

Quantity of peopleEmployees for work place =

amount x time x rate of work for item additional

time= _____________________________________

Working hours (mean value)

Example 1.Bank:

In one month have to be in process 17 500 accounts.

1 account takes 3 minitesTime for brakes is with coefficient 1,2In 1 month are 175 work hours.

HOW MANY employee bank needs?

17 500 x 3 x 1,2______________________ = 6

175 x 60

Example 2.Hotel

700 rooms25 % of rooms are empty

One cleaner employee have to clean 15 rooms a day

HOW MANY cleaners needs Hotel?

700 x 75% = 525

525: 15 = 35

35 x 7 : 5 = 49

Main components/tools for personnel planning

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Data on current HR situation:

•Demography

•HR portfolio

Data on personnel costs

Organizational data:

•Turnover rate

•Absenteeism rate

HR info system

Demand estimate

Supply estimate

Personnel planning

Strategic goals (Human Resource Scorecard

Policies:

-Recruiting and selection

Training and development

Rewards

Organization of labour

feedback

Tools: HR information system

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Personal data on employeesGeneral (e.g. age, marital status)Job-related (e.g. competences, skills, formal

training)Employee-company relational data

Job-related (e.g.position, pay)Tenure-related (company t., job t., overall)

Behavior-related data (aggregated)Mobility acceptance rates(willingness to

move, travel, work overtime)Absenteeism rateTurnover rate

Examples of a strategic use of info: demographic distributions I

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age

<30

Pyramid Rugby ball Reverse pyramid

>50

-High turnover

-new competences, skills

-Prone to tech change? ?

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Examples of a strategic use of info: demographic distributions II

tenure

<1

Pyramid Rugby ball Reverse pyramid

>15

-less promotion chances

-High competition

-Attracvtive to whom?

? ?

Examples of strategic use of info: HR portfolio

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Potential

Actual performancelow

low

high

high

Champions

Long-distance runnersDeadweights

Bad boys

Encourage turnover

Motivate

How to read some special signals

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Turnover rateOr retention rate

Absenteeism Why?

Generally considered important by HRM managers (usually these are the equivalent of “production targets” for them)

Can jeopardize continuity in production (they introduce uncertainty, which firms do not like)

What is a “normal” turnover rate

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Industry based:Chains of fast-food restaurants: 300%

is OKHighly professional services: 10% is a

disasterBusiness cycle based:

Expansion more available jobs decrease in average tenure

Recession less jobs increase in average tenure and increase in retirements

Possible problems (I): turnover

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Causes:Lack of satisfactionWorkloadRelational problems Low pay…

Possible problems (II): Absenteeism

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Useful to know about itActivities planningCompany climate indicator

Either way: high is bad! Measures (aggregate)

Hourly absent. Rate = missed hours/work(able) h. Days Absent. Rate= missed work.days/ total work.days Persons Abs. Rate= absent people/average workforce

Managing turnover

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“Normal” situation:T. gives a company some flexibility for

managing personnel surplusesT. gives the individuals a chance to change

Abnormal situation:Something is wrong with HR systemsIt generates costs (selecting, hiring, training,

and so on)

Estimating HR demand

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Static methods (position replacement needs, Markov chains)

Dynamic methods (renewal analysis)Linear programming methods

Before next Tuesday (24.09.13)

Be ready to write Test Nr.1.

Before next Thursday (26.09.13)Next Week: Selection and Recruitment

From the company’s point of view:Main principles on how to manage these

processesFrom the prospective employee’s point of

view: Homework: bring your CV to class and be

ready to discuss your choices