Unit 7 Workforce planning

Prepared by Martha Namutuwa

Workforce Planning

The process of developing and implementing plans and programmes to ensure that the

right number and types of individuals are available at the right time and place to

perform work necessary to achieve the objectives of the organisation.

Learning outcomes

Define Workforce planning

Explain the issues that a workforce plan needs to address

Outline the purpose of workforce planning

Describe the workforce planning process

Explain the various forecasting techniques

The Big PictureWorkforce planning is, in the broadest sense is the activity required to map the human resources required to achieve an organisation’s strategy.

Strategic Plan for future

How do we fill this gap?

Current Workforce

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WORKFORCE PLANNING

The purpose of Workforce Planning

• Reduce labour costs

• Basis for planning employee development

• Improve business planning

• Provide opportunities for minority groups in future and to identify the specific skills available.

• Promote importance of the importance of sound HRM in organisation

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Workforce planner responsibility depend on:

Size of the organisation

Large organisation, work force planning is done by HR

specialist

Small organisation is carried out by the line manager

Include all the parties effected by the process e.g

employee representative

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Workforce Planning Process:

Ensure link between organisation general strategic plans, the

HR strategies and the workforce plans.

Recognize importance of achieving org. goals

Consider external factors

Consider internal factors

Consider Career progression of remaining employees

Consider impact of Employment Equity Commision and

Affirmative Action policy.

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Steps in work force planning process:

Step 1: Gathering, analysing and forecasting workforce supply and demand data.

Phase 1: Forecasting

Estimates about supply and demand. Predicting where there may be labour surplus or shortages. Forecasts by the following:

Statistical Method – capture historic trends in organisation’s demand for labour

Judgemental Approach – appropriate in absence of historic data.

Phase 2:Analysing the existing workforce in the organisation

Analysis of current inventory of current workforce and current jobs in organisation. Questions: who are our employees? What skills do they have? How good are they? How are they developed?

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Phase 3: Workforce demand forecasts:

NB to make long and short-term forecasts.

Long-term Forecasts

Following factors should be considered:

i) The firm’s long-range business plans: Mission and long-term strategies should be considered.

ii) Demographics – consider descriptive characteristics of a group of people e.g. sex age, ethnic origin, education, income etc.

iii) The Economy – moving into a boom or depression. Important cause it affects the demand for products or services and ultimately influences manpower needs.

iv) Technological Trends – keep potential technological developments in mind

v) Social Trends – keep changes expected in customs of groups and laws in mind.

Delphi Technique – method used to gather information on all the above.

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Short-term factors:

Refers to determining of manpower requirements immediately and for up to one year in the future.

Factors to be considered:

Production schedules and budgets

Idea obtained as to how many products are planned to be produced during the year.

Estimates made regarding how many people will be required to meet production quotas.

Techniques for making these short-term production projections: Time Series Analysis:

Time series analysis:

Trends of the past identified – understanding of how the business has changed over time.

Two techniques:

a) Judgemental Forecasts:

b) Conventional Statistical projections

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Judgemental Forecasting Techniques:

Delphi Technique – most commonly used. Experts make turns to present forecats.

Nominal Group Technique – entails using multiple inputs from several persons.

Managerial judgement technique – involve managers deciding on what their future activities are likely to be and what type of staff they will need to ensure success.

Statistical Forecasting Techniques:

Productivity Rations – historical data used to examine past levels of productivity index in organisation.

Personal Ratios – past personnel data examined to determine historical relationships among employees in various job categories.

Time Series Analysis – past staffing levels used to project future human resources levels.

Stochastic Analysis – series of contracts combined with personnel requirements of each contract to estimate expected staffing requirements.

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Phase 4: Budget Agreement plan of controling the use of funds over a period of time.

Phase 5: Forecasting Workforce Supply Derived from internal and external sources.

Internal sources important and mostly available.

Techniques – internal Labour Supply:

1 Judgemental Techniques

Replacement Techniques

Succession Planning – focus on the development of Managers and leaders.

2 Statistical Techniques

Markov Analysis – projects future flows through application of historical transition rates, eg. Losses, promotions, transfers, demotions and recruitment.

Simulation method – Alternative flows examined for effects of future HR Availabilities.

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Renewal Analysis – estimate future flows & availabilities by calculating vacancies created by personnel lose, internal movements, and the result of decision governing the filling of vacancies.

Goal Programming – focusses on optimising goals.

Step 2: Establishing Objectives and Formulatingplans.

Workforce objectives linked to general organisational objectives and strategies.

Objectives set – action plans formulated to facilitate their achievements.

Responsibilities assigned.

Reduce labour surplus in organisation – retrenchments, demotions & transfers.

Increase labor shortage: taking temp employees, working overtime, reduce resignations, recruitment of new employees etc.

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Step 3: Implementation:

Once goals set – individuals accountable for actions

Resources must be available

Recruitment, training & development, increasing

labor productivity, retirements and retrenchments –

executed with necessary professionalism.

Step 4: Workforce plan Evaluation

NB to determine success of workforce planning

through evaluation of plans and programmes

implemented.

Case study exercises: handed in class.

Who should be on your Workforce Planning Team?

What are the corporate goals?

What is your current state? Do you have the right people and competencies to

achieve these objectives?

What are your needs?

What is the gap?

How are you going to close this gap?

What is the workforce plan going to look like?

Did your action plan accomplish what the organization needed?

How effective are the outcomes?

Discussion and Questions