Adm 551 Hrm Topic 2 Human Resource Planning
Transcript of Adm 551 Hrm Topic 2 Human Resource Planning
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ADM 551
HUMAN RESOURCE
MANAGEMENT
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HUMAN RESOURCE PLANNING (HRP)
By: Fadilah Bt PutehFSPPP, UiTM Shah Alam
TOPIC 2
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Learning Outcomes
After studying this chapter, you should be able to:
1. Identify the advantages of integrating human resources planning and strategicplanning.
2. Understand how an organization’s competitive environment influences strategicplanning
3. Recognize the importance of internal resource analysis
4. Describe the basic approaches to human resources planning.
5. Explain the linkages between competitive strategies and HR.
6. Understanding the requirements of strategy implementation
7. Recognize the methods for assessing and measuring the effectiveness ofstrategy.
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Process of anticipating and making provision for the movement of people into,within and out of an organization. (Snell & Bohlander)
A process of systematically reviewing human resources requirements to ensurethat the required number of employees with the required skills are available whenneeded. (Mondy & Noe)
The process of deciding what positions the firm will have to fill and how to fillthem. (Gary Dessler)
Process of analyzing and identifying the need for availability of human resourcesso that the organization can meet its objectives. (Mathis & Jackson)
What is HRP?
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The importance of HRP
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HR Planning Responsibilities
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Staff Manager (HR Department Manager) Line Managers
Participates in strategic planning
process for entire organization.
Identify supply-and-demand needs for
each division/department.
Identify HR strategies Review/discuss HR planning
information with HR specialist
Design HR Planning data system Integrate HR plan with departmental
plans.
Compiles and analyzes data from
managers on staffing needs
Monitor HR plan to identify changes
need.
Implements HR plan as approved by
top management.
Review employee succession plans
associated with HR plan.
HR Planning Responsibilities
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Organization’s long term goals and strategies or known as strategic planning (SP) aremade by focusing on how the organization will position itself in relative to competitorsto ensure survival, values and growth.
Firms SP must be based on the areas of strength that an organization has which isreferred as core competencies. Core competency refers to an unique capability thatcreates high value that differentiates the organization from its competitors. In manyorganizations, their core competencies are human resources. Human resourcescertainly contribute to a competitive advantage for the organizations when they havespecial KSA that competitors cannot easily imitate.
SP and HRM must focuses on the development of core competencies wherebydifferent skill groups in any organization can be classified according to the degree towhich they create strategic value, rare and unique to the organization.
Many factors determine whether an organization will be successful; human resourcesare one of them. Firm use its employees to gain or keep competitive advantageagainst competitors. Firms competitive advantage derived from a proper HRP whichensure effective staffing decisions.
Effective management decides the direction of the organization by setting up strategichuman resource management (SHRM). SHRM is the pattern of human resourcesdeployments and activities that enable an organization to achieve its strategic goals.
SHRM = SP + HRP
Strategic Planning and Human Resources
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HRP and SP
Level of Organizational Strategic Planning (Mondy & Noe)
Strategic planning at this level provide and
formulate general direction of the firm.
Strategic planning at business level provides
direction for each department (SBU) to achieve
firm goals.
All strategic planning in each SBU is done at this
level involving critical activities that determine the
department success to achieve organizational
goals.
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Linking HRP and SP Processes
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Strategic Planning
HRP
Forecasting HR
Requirements
Comparing
Requirements &
Availability
Forecasting HR
Availability
Demand = Supply (dd=ss)
No Action
Surplus (dd<ss) Shortage (dd>ss)
Layoff, Early Retirement,
Downsizing, Restricted
Hiring, Reduced Hours
Recruitment
Selection
HRP Process / StepsMondy & Noe (2005)
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HRP Process / StepsMathis & Jackson (2003)
Organizational Objectives and Strategies
Scan External Environment for Changes
Affecting Labor Supply
Analyze Internal Inventory of
HR Capabilities
Forecasting
Organizational Need for People Survey of People Available
HR Strategies and Plans
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HRP Process / StepsBohlander & Snell (2009)
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Human Resource Forecasting
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Model of HR Forecasting
FORECASTING DEMAND
Considerations
• Product/service demand
• Technology
• Financial resources
• Absenteeism/turnover
• Organizational growth
• Management philosophy
Techniques
• Trend analysis
• Managerial estimates
• Delphi technique
Techniques
• Staffing tables
• Markov analysis
• Skills inventories
• Management inventories
• Replacement charts
• Succession planning
External Considerations
• Demographic changes
• Education of the workforce
• Labor mobility
• Government policies
• Unemployment rate
FORECASTING SUPPLY
BALANCING
SUPPLY AND
DEMAND
(Shortage)
Recruitment
• Full-time, part time
• Contracts, recalls
• Outsourcing
(Surplus)
Reductions
• Layoffs
• Terminations
• Demotions
• Retirements
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Forecasting Employee Demand
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Example of Trend Analysis
1997 $2,351 14.33 164
1998 $2,613 11.12 235
1999 $2,935 8.34 352
2000 $3,306 10.02 330
2001 $3,613 11.12 325
2002 $3,748 11.12 337
2003 $3,880 12.52 310
2004* $4,095 12.52 327
2005* $4,283 12.52 342
2006* $4,446 12.52 355
BUSINESS LABOR = HUMAN RESOURCES
FACTOR PRODUCTIVITY DEMANDYEAR (SALES IN THOUSANDS) (SALES/EMPLOYEE) (NUMBER OF EMPLOYEES)
*Projected figures
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Forecasting Employee Demand
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Forecasting Employee Supply
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An Executive Replacement Chart
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Markov Analysis for a Retail Company
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HRP Results
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Managing Labor Surplus
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Managing Labor Surplus
Advantages Disadvantages
Downsizing, pay reductions,
demotions
Deliver fast results May hurt surviving employees’
motivation and future recruiting
Hiring freeze or natural
attrition
Avoid the pain of layoffs Slow to take effect
Early retirement Less painful than layoffs Induce the best employees to
leave and may be slow to
implement
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Managing Labor Shortage
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Managing Labor Shortage
Advantages Disadvantages
Overtime Can easily be changed if
conditions change
May exhaust workers and
can hurt morale
Temporary
employees,
outsourcing
Staffing level can be quickly and
easily modified
Do not build an in-house
pool of talent
Hiring new employees Strengthens the organization if
labor needs are expected to
expand for the long term
Slow and expensive
Transferring and
retraining
Require investment of time and
money
Enhance the quality of the
organizations human
resources
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Problems That Hinder Effective HRP
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Problems That Hinder Effective HRP
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END OF PRESENTATION
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Tutorial Questions
1. Discuss why HR is a core competency for organizations?.
2. Define HRP and outline the HRP process.
3. Identify factors to be considered in forecasting the supply and demand for humanresource in an organization.
4. Discuss several ways to manage surplus of human resources.
5. Discuss ways to overcome shortage of workers.
6. Discuss requirements and availability forecasts.
7. Explain relationship between strategic planning and HRP.
8. Identify the 3 key elements of the HRP model & discuss the relationship amongthem.
9. Distinguish between the qualitative & quantitative approaches to forecasting theneed for HR.
10. Discuss the importance of HRP.