Hr Planning & Labour Markets

8/6/2019 Hr Planning & Labour Markets

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HR PLANNING & LABOUR

MARKETS

Managing People in Organisation


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HR PLANNING & LABOUR MARKETS

Managing People in Organisation BS865-2 Slide 2 of 22

Learning Outcomes

At the end of the session, you should be

able to:

Explain the HR planning process

Identify the factors to be considered

in strategy implementation

Describe some HR forecasting

techniques


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Learning Outcomes (continued)

At the end of the session, you should be

able to:

Define requirement and availability

forecasts

Differentiate mgt inventory from

skills inventory


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STRATEGIC PLANNING

Definition:

The determination of overall organizational

purposes and goals and how they are to be

achieved

Source: Mondy, et al. (1999) p.142

Levels of Strategic Planning: Each level has its own distinctive

characteristics, therefore strategy

formulation different


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STRATEGIC PLANNING (continued)

Levels of Strategic Planning:

Corporate-level Defining direction of organization for all levels

Business-level Management of interest & operations for a

particular business

Strategic Business Unit

Any part of a business org that is treatedseparately for strategic planning purposes

Functional Determining policies & procedures for specific

activities


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STRATEGIC IMPLEMENTATION

Factors to be considered in strategy

implementation:

Leadership

Organizational Structure

Information and Control Systems

Technology Human Resources


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HR PLANNING PROCESS

Definition:

Process of systematically reviewing HR

requirements to ensure that the required number

of employees, with the required skills, areavailable when they are needed

After Strategic Planning Process

Two Components: Requirement &Availability

Involves Forecasting of the two

components


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HR PLANNING PROCESS (continued)

HR Forecasting Techniques:

Zero-Base ForecastingEstimate based on current figures Bottom-Up Approach

Start estimates from lowest operative to managers

Use of Predictor Variables

Factors known to have an impact on a companysemployment levels

SimulationMathematical or other means of representing actual situation


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Forecasting HR Requirements

An estimate of the numbers and kinds of

employees an organization will need in thefuture to achieve objectives

Forecasting HR Availability

A process of determining whether a firm

will be able to secure employees with thenecessary skills from within the company,

from outside the organization, or from a

combination of the two sources


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Internal Sources of Supply:

Consideration for future positions to be

acquired internally from existing employee

profiles Hard to be achieved as corporation

expands

Skills Inventory:

Info maintained on the availability and

preparedness of non-managerial

employees to move either into higher level

or lateral positions in the org


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Management Inventory:

Detailed data regarding each mgr in an

org; used in identifying individualspossessing the potential to move into

higher level positions

Info for replacement & promotion decisions

Skills and Management Inventory:

Push to maintain info in intranet databases


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Succession Planning:

Process of ensuring that a qualified person is

available to assume a managerial position oncethe position is vacant

Succession Development:

Process of determining a comprehensive job

profile of the key positions and then ensuring

that key prospects are properly developed to

match these qualifications


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HR PLANNING

Surplus of Employees

More workers than needed (based on

Requirements & Availability) Possible solutions:

Restricted Hiring

Reduced Hours Early Retirement

Layoffs


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HR PLANNING: Downsizing

Downsizing:

A reduction in the number of people employed

by a firm (also known as restructuring &rightsizing)Source: Mondy, et al. (1999) p.158

Advantages:

Competitive source Focus on fundamental business

Cut through layers of waste

Lowering operational costs


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HR PLANNING: Downsizing(continued)

Disadvantages:

Trust level goes down

Not a guarantee of business success Might lose key people in process


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HR INFORMATION SYSTEMS (HRIS)

HRIS:

Any organized approach to obtaining relevant

and timely information on which to base humanresource decisions

Provides timely, accurate, concise, relevant and

complete information to managers/users


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HR INFORMATION SYSTEMS (HRIS) -continued

Reports that should be generated by HRIS:

Routine Exception

On-Demand

Forecasts

VIRTUAL HR ?

E-HR?


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Summary of Main Teaching Points

HR Planning involves Strategic

planning

The HR Planning Process

Forecasting techniques for human

resource

Difference between mgt and skillsinventory

Succession planning importance


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Summary of Main Teaching Points(continued)

Surplus of workers remedy

Downsizing concept

HRIS (HR Information Systems)


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Key Terms you must be able to use

If you have mastered this topic, you should be able to use the following terms

correctly in your assignments and exams:

HR Planning Process

Forecasting Inventory

Succession

Surplus Downsizing

HR Information System

Documents

Hr Planning & Labour Markets