HRM 2 - HR PLANNING

8/7/2019 HRM 2 - HR PLANNING

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Human Resource Planning


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Human Resource Planning

Process of anticipating and making provision

for the movement (flow) of people into,

within, and out of an organization.

Planning so that the organization has the

right number of people, right kind of

people, at the right time, in the right place.


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Is the first component of HRM strategyAll other functional HR activities are derived from and

flow out of the HRP process.

Has its basis in considerations of future HRrequirements in light of present HR capabilities and

capacities.

Is proactive in anticipating and preparing flexible

responses to changing HR requirements.

Has both an internal and external focus.


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HR Planning Issues

Staffing Questions:

How do we manage staffing in times of recession or

expansion?

What impact does technology change, mergers orrelocation have on staffing issues?

Do we always have the right people in the right jobs

at the right time?

How do we get our human resources: buy them ormake them or both?


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Why is HRP important?

Helps in organisational expansion & diversification

Prevent overstaffing and understaffing

Ensure responsiveness to change

Lead time in Training & Development

Ensures that right skills & right number of people arein place

Reduces HR costs


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Strategic Planning

Human ResourcePlanning

ForecastingHuman

ResourceRequirements

Comparing

Reqts andAvailability

ForecastingHuman

ResourceAvailability

Surplus ofWorkers

Demand =Supply

No Action

Shortage ofWorkers

Recruitment

Selection

Restricted Hiring,Reduced Hours,

Early Retirement,Layoffs,

Downsizing

External Environment

Internal Environment


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HRP and Strategic Planning

Strategic Analysis

What human resources are needed and what are

available?

Strategic Formulation

What is required and necessary in support of human

resources?

Strategic Implementation

How will the human resources be allocated?

Human ResourceHuman ResourcePlanningPlanning

StrategicStrategicPlanningPlanning


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HRP and External Environment

Environmental Scanning

The systematic monitoring of the majorexternal forces influencing the organization.

Economic factors Competitive trends

Technological changes

Political and legislative issues Social concerns

Demographic trends


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Scanning the Internal Environment

Cultural Audits

Audits of the culture and quality of work life in anorganization.

How do employees spend their time?

How do they interact with each other?

Are employees empowered?

What is the predominant leadership style of

managers?Benchmarking

The process of comparing the organizationsprocesses and practices with those of other

companies.


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FORECASTING DEMANDFORECASTING DEMAND

Human Resource Planning Model

ConsiderationsConsiderations

TechnologyTechnology

Financial resourcesFinancial resources

Organizational growthOrganizational growth

Mgmt. philosophyMgmt. philosophy

TechniquesTechniques

Trend analysisTrend analysis

ManagerialManagerial

estimatesestimates

Delphi techniqueDelphi technique

TechniquesTechniques

HR inventoriesHR inventories

Markov analysisMarkov analysis

Skill inventoriesSkill inventories

Replacement chartsReplacement charts

Succession PlanningSuccession Planning

ExternalExternal

ConsiderationsConsiderations

Wkforce changesWkforce changes

MobilityMobility

Govt policiesGovt policies

UnemploymentUnemployment

FORECASTING SUPPLYFORECASTING SUPPLY

BALANCINGBALANCINGSUPPLY ANDSUPPLY AND

DEMANDDEMAND

(Shortage)(Shortage)

RecruitmentRecruitment

FullFull--time / Parttime / Part--timetime

(Surplus)(Surplus)

ReductionsReductions

LayoffsLayoffs

TerminationsTerminations

DemotionsDemotions

RetirementsRetirements


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Quantitative Approach: Trend Analysis

Forecasting labor demand based on an organizationalindex:

Select a business factor, e.g. sales, that best predicts

human resources needs.

Plot the business factor in relation to the number ofemployees to determine average labor productivity.

Compute labor productivity for the past five years.

Project human resources demand out to the targetyear(s).


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HRP Considerations

Balancing supply and

demand


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Elements of The HR Plan

Acquisition of personnelEffective Utilization

redeployment

methods improvement

training to prevent obsolescenceDevelopment and Improvement

broad-based training and development

performance management systems

Retention

proper remuneration

long-term career planning

healthy employee relations

good working environment


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Requisites for Successful HRP

HRP must be seen as equally vital as business planning

Top-management support

Periodic review and revision of the forecasting

techniques and the forecastsWithout long range planning concentration becomesfocussed on short-term needs resulting in crisismanagement reactions

An excellent and up-to-date HRIS

Active involvement of line managers and co-ordinationbetween line mgrs and HR function

HRM 2 - HR PLANNING

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