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Human ResourcesPlanning

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Human Resources Planning

-review human resources requirements to

ensure:-the necessary number of employees

-the necessary employee skills

to meet organizational goals

-review human resources requirements to

ensure:-the necessary number of employees

-the necessary employee skills

to meet organizational goals

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Human Resources Planning

Forecastdemand

Forecastdemand

Analyzesupply

Analyzesupply

Plan and implement

programs to balance

supply and demand

Plan and implement

programs to balance

supply and demand

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Human Resources Planning

-achieve goals and objectives

-plan staffing and development activities

-achieve economies in hiring-make major labour market demands

-achieve goals and objectives

-plan staffing and development activities

-achieve economies in hiring-make major labour market demands

Importance of HR Planning (1 of 2)

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Human Resources Planning

-anticipate and avoid staff shortages/surpluses

-control/reduce labour costs

-utilize employee capabilities effectively

-establish employment equity goals/timetables

-anticipate and avoid staff shortages/surpluses

-control/reduce labour costs

-utilize employee capabilities effectively

-establish employment equity goals/timetables

Importance of HR Planning (2 of 2)

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Human Resources Planning

-vacant positions create costly inefficiencies-overtime hours at premium cost

-simultaneous layoffs and hiring

-mass layoffs requiring:-severance pay

-extended notice periods

-vacant positions create costly inefficiencies-overtime hours at premium cost

-simultaneous layoffs and hiring

-mass layoffs requiring:

-severance pay

-extended notice periods

Results of Inadequate HR Planning (1 of 3)

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Human Resources Planning

-ineffective training, development, career planning

-turnover of high performers

-problems with employment equity goals-inability to meet operational and strategic plans

-ineffective training, development, career planning

-turnover of high performers

-problems with employment equity goals-inability to meet operational and strategic plans

Results of Inadequate HR Planning (3 of 3)

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Human Resources Planning

HR PlanningHR Planning Strategic PlanningStrategic Planning

-reciprocal and interdependent relationship

-environmental scanning critical for both

-reciprocal and interdependent relationship

-environmental scanning critical for both

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Human Resources Planning

-economic conditions-market and competitive trends

-government and legislative issues

-social concerns

-technological changes

-demographic trends

-economic conditions

-market and competitive trends

-government and legislative issues

-social concerns

-technological changes

-demographic trends

External Environmental Factors Monitored

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Elements of Effective HR

Planning

2. Forecast Future Internal/External Candidates (Supply)

1. Forecast Future HR Needs (Demand)

3. Implement Plans to Balance Supply and Demand

4. Monitor and Evaluate Results

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Forecasting Future HR Needs

(Demand)

Forecasting based on:

-demand for product/service-projected turnover

-quality and nature of employees

-decisions regarding product quality

-plans for technological change-plans to reduce headcount

-financial resources

Forecasting based on:

-demand for product/service

-projected turnover

-quality and nature of employees

-decisions regarding product quality

-plans for technological change-plans to reduce headcount

-financial resources

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Forecasting Future HR Needs

(Demand)

Trend analysis: review past employment levelsRatio analysis: ratio of business activity/employees

Scatter plot: graph of business activity/employees

Regression analysis: statistical relationshipbetween business activity and employees

Computerized forecasting techniques

Trend analysis: review past employment levelsRatio analysis: ratio of business activity/employees

Scatter plot: graph of business activity/employees

Regression analysis: statistical relationshipbetween business activity and employees

Computerized forecasting techniques

Quantitative Approaches

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Forecasting Future HR Needs

(Demand)

1. Nominal Group Technique

-experts meet face-to-face

-group discussion facilitates exchange of ideas

-possible subjectivity, group pressure

2. Delphi Technique-experts work independently

-wide range of views

-difficult to integrate diverse opinions

1. Nominal Group Technique

-experts meet face-to-face

-group discussion facilitates exchange of ideas

-possible subjectivity, group pressure

2. Delphi Technique-experts work independently

-wide range of views

-difficult to integrate diverse opinions

Qualitative Approaches

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Forecasting Future HRSupply

manual or computerized records

used to identify internal candidates for transferor promotion

summary of each employees:

education

experience

interests

skills

manual or computerized records

used to identify internal candidates for transfer

or promotion

summary of each employees:

education

experience interests

skills

Skills Inventories

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Forecasting Future HRSupply

summary of each management employees:

background qualifications interests skills managerial responsibilities duties in current/previous positions management training

summary of each management employees:

background qualifications interests skills

managerial responsibilities duties in current/previous positions management training

Management Inventories

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Forecasting Future HR

Supply

visual representations of likely internalreplacement employees for each position

data on each candidate includes:

age

present performance rating

promotability status

visual representations of likely internalreplacement employees for each position

data on each candidate includes:

age

present performance rating

promotability status

Replacement Charts

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Forecasting Future HRSupply

lists of likely internal replacement employees

for each position data on each candidate includes:

relative strengths and weaknesses current position

performance promotability age experience

lists of likely internal replacement employees

for each position

data on each candidate includes: relative strengths and weaknesses current position performance promotability age experience

Replacement Summaries

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Forecasting Future HRSupply

Formal educationIndustry experience

Work experience

Product/serviceknowledge

Training courses

Formal educationIndustry experience

Work experience

Product/serviceknowledge

Training courses

Language skillsRelocation

limitations

Career interestsPerformance ratings

Language skillsRelocation

limitations

Career interestsPerformance ratings

Computerized Skills Inventory

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Forecasting Future HRSupply

analyze demand for managers/professionals

audit existing executives, project future supply

individual career planning/career counseling

accelerated promotions

performance-related training and development

planned strategic recruitment

analyze demand for managers/professionals

audit existing executives, project future supply

individual career planning/career counseling

accelerated promotions

performance-related training and development

planned strategic recruitment

Succession Planning

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Forecasting Future HRSupply

general economic conditions

national labour market conditions

local labour market conditions

occupational market conditions

general economic conditions

national labour market conditions

local labour market conditions

occupational market conditions

Forecasting Supply of External Candidates

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Balancing Supply and

DemandDealing with a Labour Surplus

hiring freeze

attrition buy-out and early retirement programs

reducing hours (job sharing, reduced

workweek, part-time work, work sharing)

internal transfers

layoffs (reverse seniority or juniority)

termination with outplacement assistance

hiring freeze

attrition buy-out and early retirement programs

reducing hours (job sharing, reduced

workweek, part-time work, work sharing)

internal transfers

layoffs (reverse seniority or juniority)

termination with outplacement assistance

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Balancing Supply and

DemandDealing with a Labour Shortage

overtime hiring temporary employees

subcontracting work

external recruitment transfers

promotions

overtime hiring temporary employees

subcontracting work

external recruitment

transfers

promotions

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HRP Evaluation

Actual internal mobility flow vs. career plansActual internal mobility flow vs. career plans

Internal mobility flow vs. turnoverInternal mobility flow vs. turnover

Employment equity achievements vs. goalsEmployment equity achievements vs. goals

Ratio of internal placement to external hiringRatio of internal placement to external hiring

Actual staffing levels vs. staffing requirementsActual staffing levels vs. staffing requirements

Specific Criteria Assessed