Human Resource PlanningHuman Resource Planning
HUMAN RESOURCE HUMAN RESOURCE MANAGEMENTMANAGEMENT
SL HR 502
SEMESTER II
PRODUCTIVITY
ECONOMICDEVELOPMENT
GROWTH
EFFECTIVE
UTILIZATION
OF
HUMANCAPABILITY
Human Resource Human Resource PlanningPlanning
Effective planning of HR is Effective planning of HR is essential to match the requirements essential to match the requirements of the job with the individualof the job with the individual Right resources at the right time Right resources at the right time to meet the future organizational to meet the future organizational needs is criticalneeds is critical A comprehensive and meticulous A comprehensive and meticulous HRP process can ensure sustained HRP process can ensure sustained growth of an organizationgrowth of an organization
Human Resource Human Resource PlanningPlanning
Diversification or expansion, employee Diversification or expansion, employee promotion or changes in human resource promotion or changes in human resource necessitates effective HRPnecessitates effective HRP Organizational plans, goals, and Organizational plans, goals, and strategies also needs effective HRPstrategies also needs effective HRP Success in business is dependent on Success in business is dependent on being able to react quickly to being able to react quickly to opportunitiesopportunities Organizations must have accurate, Organizations must have accurate, rapid access to information about both rapid access to information about both supply of and demand for HR supply of and demand for HR
Organizational Life-Cycle Stages Organizational Life-Cycle Stages HR ActivitiesHR Activities
LIFE-CYCLE LIFE-CYCLE STAGESTAGE STAFFINGSTAFFING COMPENSATIONCOMPENSATION
TRAINING AND TRAINING AND DEVELOPMENTDEVELOPMENT
LABOR / LABOR / EMPLOYEE EMPLOYEE RELATIONSRELATIONS
Introduction Attract best Attract best technical technical and and professional professional talenttalent
Meet or exceed Meet or exceed labor market labor market rates to attract rates to attract needed talentneeded talent
Define future Define future skill skill requirements requirements and begin and begin establishing establishing career ladderscareer ladders
Set basic Set basic employee-employee-relations relations philosophy philosophy of of organizationorganization
Growth Recruit Recruit adequate adequate numbers and numbers and mix of mix of qualifies qualifies workers. Plan workers. Plan management management succession. succession. Mange rapid Mange rapid internal labor internal labor market market movementsmovements
Meet external Meet external market but market but consider consider internal equity internal equity effects. effects. Establish Establish formal formal compensation compensation structuresstructures
Mold effective Mold effective management management team through team through management management development development and and organizational organizational developmentdevelopment
Maintain Maintain labor labor peace, peace, employee employee motivation motivation & morale& morale
Organizational Life-Cycle Stages and Organizational Life-Cycle Stages and HR ActivitiesHR Activities
LIFE-LIFE-CYCLE CYCLE STAGESTAGE
STAFFINGSTAFFING COMPENSATIONCOMPENSATIONTRAINING AND TRAINING AND DEVELOPMENTDEVELOPMENT
LABOR / LABOR / EMPLOYEE EMPLOYEE RELATIONSRELATIONS
Maturity Encourage Encourage sufficient sufficient turnover to turnover to minimize layoffs minimize layoffs and provide new and provide new openings. openings. Encourage Encourage mobility as mobility as reorganizations reorganizations shift jobs aroundshift jobs around
Control Control compensacompensation coststion costs
Maintain Maintain flexibility flexibility and skills and skills of an of an aging aging workforceworkforce
Control Control labor costs labor costs & maintain & maintain labor peace. labor peace. Improve Improve productivityproductivity
Decline Plan and Plan and implement implement workforce workforce reductions and reductions and reallocations, reallocations, downsizing and downsizing and outplacement outplacement may occur may occur during this during this stagestage
Implement Implement tighter cost tighter cost controlcontrol
Implement Implement retraining retraining and career and career consulting consulting servicesservices
Improve Improve productivity productivity and achieve and achieve flexibility in flexibility in work rules. work rules. Negotiate job Negotiate job security and security and employment-employment-adjustment adjustment policiespolicies
Human Resource Human Resource PlanningPlanning
HRP is both a process and a set of HRP is both a process and a set of plansplans
– a process by which management of an a process by which management of an organization determines its future HR organization determines its future HR requirementsrequirements– a plan to fill the future HR requirements a plan to fill the future HR requirements from internal and external sources from internal and external sources
Assessment of human resource Assessment of human resource requirements in advance vis a vis requirements in advance vis a vis organizational objectives, production organizational objectives, production schedules, and demand fluctuations schedules, and demand fluctuations
Human Resource Human Resource PlanningPlanning
‘ ‘The process of determining human The process of determining human resource requirements and the means of resource requirements and the means of meeting those requirements in order to meeting those requirements in order to carry out the integrated plan of the carry out the integrated plan of the organization’ – Colemanorganization’ – Coleman Relates to Relates to
– establishing job specificationsestablishing job specifications– determining the number of personnel determining the number of personnel requiredrequired– developing the sources of human resourcedeveloping the sources of human resource
Internal vs. ExternalInternal vs. External System of matching the available System of matching the available resources, either externally or resources, either externally or internally, with the expected internally, with the expected organizational demand over a period organizational demand over a period of timeof time Internal ResourcesInternal Resources
– employees who are already in the employees who are already in the organizationorganization
External ResourcesExternal Resources– personnel who have to be recruited personnel who have to be recruited from outsidefrom outside
Objectives of HRPObjectives of HRP Forecasting HR RequirementsForecasting HR Requirements
– maintain the required quantity & quality of HRmaintain the required quantity & quality of HR– turnover/attrition ratesturnover/attrition rates
Effective Management of ChangeEffective Management of Change– coping with changes in market conditions, coping with changes in market conditions, technology, govt. regulations et altechnology, govt. regulations et al
Realizing Organizational GoalsRealizing Organizational Goals– expansion, diversificationexpansion, diversification
Promoting EmployeesPromoting Employees– database on skill repertoiredatabase on skill repertoire
Effective Utilization of HREffective Utilization of HR– surplus/unutilized employees vis a vis downsizingsurplus/unutilized employees vis a vis downsizing
Emergence of HRPEmergence of HRPEarly HRP was top down, short Early HRP was top down, short
rangerange1970s: “manpower planning”1970s: “manpower planning”1990s: aligning HR strategy with 1990s: aligning HR strategy with
– corporate strategycorporate strategy– attention to individual career attention to individual career
planningplanning
Effective HRPEffective HRP An effective HRP An effective HRP
– closes the gap between the closes the gap between the current situation and a desired current situation and a desired situation in the context of an situation in the context of an organization’s strategyorganization’s strategy
– helps cope with change and helps cope with change and achieve organizational goalsachieve organizational goals
HR Planning LevelsHR Planning Levels HRP is carried out at different HRP is carried out at different
organizational levels to meet HR organizational levels to meet HR requirements at those levelsrequirements at those levels
Flow of communication in HRP is both Flow of communication in HRP is both waysways– Top to bottom Top to bottom – Bottom to topBottom to top
The levels areThe levels are– Corporate level planningCorporate level planning– Intermediate level planningIntermediate level planning– Operational level planningOperational level planning
HR Planning LevelsHR Planning Levels Corporate-level PlanningCorporate-level Planning
– Culture and mission of the organizationCulture and mission of the organization– Macro-level: changes in market conditions, Macro-level: changes in market conditions,
technology, strategic plan, etctechnology, strategic plan, etc– Identification of broad policy issues; employment, Identification of broad policy issues; employment,
welfare, development policieswelfare, development policies Intermediate-level PlanningIntermediate-level Planning
– SBU level, based on corporate-level HR PlanSBU level, based on corporate-level HR Plan– Determining recruitment, retaining, laying offDetermining recruitment, retaining, laying off
Operational-level PlanningOperational-level Planning– Operations level planOperations level plan– Training & development, recruitment etcTraining & development, recruitment etc
Planning Short-term ActivitiesPlanning Short-term Activities– Management of day-to-day activitiesManagement of day-to-day activities– Ensure success or failure of corporate plansEnsure success or failure of corporate plans– Grievance handling, etc Grievance handling, etc
Environmental Scanning
impact of strategy/goals on diff. units
Forecastingquantity & quality of personnel needed
Involving Line Managersdetermining HR needs of departments
Analysis of Supplymatching current HR supply & reqmnt
HRP
PROCESSPlan of Action
recruitment, selection, training, et al
Human Human Resource Resource PlanningPlanning
Predict demand
Forecast internal supply Forecast external supply
Assess trends in• External labor markets• Current employees• Future organizational plans• General economic trends
Compare future demandand internal supply
Plan for dealing with predict-ed shortfalls or overstaffing
Situation AnalysisSituation Analysis Interaction of HRM and strategic planningInteraction of HRM and strategic planning The strategic plan must adapt to The strategic plan must adapt to
environmental circumstancesenvironmental circumstances HRM is one of the mechanisms of HRM is one of the mechanisms of
adaptation processadaptation process Example: rapid technological changes can Example: rapid technological changes can
force an organization to quickly identify force an organization to quickly identify and hire employees with new skillsand hire employees with new skills
Without HR plan to support the Without HR plan to support the recruitment & selection functions it would recruitment & selection functions it would be impossible to move fast to stay be impossible to move fast to stay competitive competitive
ForecastingForecastingEstimating not only ‘how many’ but Estimating not only ‘how many’ but
also ‘what kinds’ of employees will also ‘what kinds’ of employees will be neededbe needed
Yields advance estimates or Yields advance estimates or calculations of the organization’s calculations of the organization’s staffing requirementsstaffing requirements
Apart from quantitative tools, a great Apart from quantitative tools, a great deal of human judgement is involveddeal of human judgement is involved
Incredibly difficult tasks, especially in Incredibly difficult tasks, especially in rapidly changing environmentrapidly changing environment
Forecasting TechniquesForecasting TechniquesQualitative TechniquesQualitative Techniques
– Expert estimateExpert estimate– Nominal Group Technique (NGT)Nominal Group Technique (NGT)– Delphi TechniqueDelphi Technique
Quantitative TechniquesQuantitative Techniques– Regression AnalysisRegression Analysis– Productivity RatiosProductivity Ratios– Personnel RatiosPersonnel Ratios– Time Series AnalysisTime Series Analysis
The Nominal Group The Nominal Group TechniqueTechnique
A small group of 4-5 people gathers around a table. Leader identifies judgment issue and gives participants procedural instructions
Participants write down all ideas that occur to them, keeping their lists private at this point. Creativity is encouraged during this phase
Leader asks each participant to present ideas and writes them on a blackboard or flipchart, continuing until all ideas have been recorded
Participants discuss each other’s ideas, clarifying, expanding, and evaluating them as a group
Participants rank ideas privately in their own personal order and preference
The idea that ranks highest among the participants is adopted as the group’s judgment
The Delphi TechniqueThe Delphi TechniqueLeader identifies judgment issues and develops questionnaire
Prospective participants are identified and asked to cooperate
Leaders send questionnaire to willing participants, who record their judgments and recommendations and return the questionnaire
Leaders compiles summaries and reproduces participants’ responses
Leader sends the compiled list of judgment to all participants
Participants comment on each other’s ideas and propose a final judgment
Leader looksfor consensus
Leader accepts consensus judgment as group’s choice
Statistical TechniquesStatistical Techniques NameNameRegression analysis
Productivity ratios
DescriptionDescription
Past levels of various work load indicators, such as sales, production levels, are examined for statistical relationships with staffing levels. Where sufficiently strong relationships are found, a regression (or multiple regression) model is derived. Forecasted levels of the retained indicator(s) are entered into the resulting model and used to calculate the associated level of human resource requirements.
Historical data are used to examine past levels of a productivity index (P):
P = Work load / Number of People
Where constant, or systematic, relationships are found, human resource requirements can be computed by diving predicted work loads by P.
Statistical TechniquesStatistical Techniques
NameName
Personnel ratios
Time series analysis
DescriptionDescription
Past personnel data are examined to determine historical relationships among the employees in various jobs or job categories. Regression analysis or productivity ratios are then used to project either total or key-group human resource requirements, and personnel ratios are used to allocated total requirements to various job categories or to estimate for non-key groups.
Past staffing levels (instead of work load indicators) are used to project future human resource requirements. Past staffing levels are examined to isolate and cyclical variation, long-tem terms, and random movement. Long-term trends are then extrapolated or projected using a moving average, exponential smoothing, or regression technique.
Analysing Current SupplyAnalysing Current Supply ““How many and what kinds of employees How many and what kinds of employees
do I currently have in terms of the skills do I currently have in terms of the skills and training necessary for the future?”and training necessary for the future?”
Are resources available – internally or Are resources available – internally or externally – to fill those needs?externally – to fill those needs?
InternalInternal– skills inventoryskills inventory– succession planningsuccession planning– promotabilitypromotability
ExternalExternal– availability of qualified labor; surplus? availability of qualified labor; surplus?
shortage?shortage?
Analysing Current SupplyAnalysing Current Supply The Skills InventoryThe Skills Inventory: tool to assess : tool to assess
current supply of employees in terms ofcurrent supply of employees in terms of– skillsskills– abilitiesabilities– experiencesexperiences– training training
If the current inventory exceeds the If the current inventory exceeds the future requirements and natural future requirements and natural attrition cannot bring down the attrition cannot bring down the resources to match the future resources to match the future requirements?requirements?
Employee Replacement Chart Employee Replacement Chart for Succession Planningfor Succession Planning
Managing Employee Managing Employee SurplusesSurpluses
Source: Compliments of Dan Ward, GTE Corporation
Managing Employee Managing Employee ShortagesShortages
Source: Compliments of Dan Ward, GTE Corporation
HRISHRISHuman Resource Information Human Resource Information
SystemSystem is more than just a is more than just a computerized skills inventorycomputerized skills inventory
An HRIS is an integrated approach An HRIS is an integrated approach toto– acquiringacquiring– storingstoring– analysinganalysing– controllingcontrolling the flow of information the flow of information
throughout an organizationthroughout an organization
HRISHRIS Highly developed HRIS systems can Highly developed HRIS systems can
increase efficiency and response increase efficiency and response time of HRM activitiestime of HRM activities
The system might contain a The system might contain a programme for tracking applicants, a programme for tracking applicants, a skills inventory, a career planning skills inventory, a career planning programme, employee service programme, employee service programmesprogrammes
One of the most common uses of an One of the most common uses of an HRIS is in recruitment and tracking of HRIS is in recruitment and tracking of applicantsapplicants