Chapter 7 Human resource planning and human resource information systems Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Human Resource Management in Australia 3e by De Cieri et al.

Human resource planning (HRP) Objectives Discuss how to align a company’s human resource planning with its strategic direction. Determine the labour demand of workers in various job categories. Discuss the advantages and disadvantages of various ways of eliminating a labour surplus and avoiding a labour shortage. Discuss the types of technologies that can improve the efficiency and effectiveness of HR. Discuss human resource information systems and their various applications for HR activities. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Human Resource Management in Australia 3e by De Cieri et al.

Human resource planning (HRP) The process through which organisational goals are translated into human resource goals, concerned with staffing levels and allocation. Human resource planning involves forecasting human resource needs for an organisation, and planning the necessary steps to meet these needs. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Human Resource Management in Australia 3e by De Cieri et al.

Figure 7.1 Overview of the HRP process Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Human Resource Management in Australia 3e by De Cieri et al.

Forecasting The attempt to determine the supply of and demand for various types of human resources, in order to predict future labour shortages or surpluses in areas within the organisation. Determining labour demand Determining labour supply Transitional matrices: matrices showing the proportion or number of employees in different job categories at different times Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Human Resource Management in Australia 3e by De Cieri et al.

Table 7.1 A hypothetical transitional matrix for a car parts manufacturer 2007 2001 Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Human Resource Management in Australia 3e by De Cieri et al.

Goal setting and strategic planning Reducing an expected labour surplus, e.g. Downsizing Early retirement programs or Avoiding an expected labour shortage, e.g. Employing temporary workers Outsourcing Overtime and expanding worker hours Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Human Resource Management in Australia 3e by De Cieri et al.

Table 7.2 Options for reducing an expected labour surplus Option Speed Human suffering 1 Downsizing Fast High 2 Pay reductions Fast High 3 Demotions Fast High 4 Transfers Fast Moderate 5 Work sharing Fast Moderate 6 Retirement Slow Low 7 Natural attrition Slow Low 8 Retraining Slow Low Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Human Resource Management in Australia 3e by De Cieri et al.

Table 7.3 Options for avoiding an expected labour shortage Option Speed Revocability 1 Overtime Fast High 2 Temporary employees Fast High 3 Outsourcing Fast High 4 Retrained transfers Slow High 5 Turnover reductions Slow Moderate 6 New external recruits Slow Low 7 Technological innovation Slow Low Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Human Resource Management in Australia 3e by De Cieri et al.

Downsizing The planned elimination of large numbers of personnel designed to enhance organisational effectiveness. Workforce reduction A type of downsizing strategy, using a cost-cutting approach emphasising short-term results and redundancies. Organisational redesign Restructuring or delayering of the organisation, with elimination of functions, layers and work processes. Systemic change A program of organisational cultural change involving all staff. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Human Resource Management in Australia 3e by De Cieri et al.

Major reasons for downsizing Cost reduction Introduction of new technology Mergers and acquisitions leading to reduced need for bureaucracy Globalisation and changing location of business Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Human Resource Management in Australia 3e by De Cieri et al.

Major reasons for the failure of downsizing Initial cost savings but long-term negative effects Loss of people who are ‘irreplaceable assets’ ‘Survivor syndrome’: loss of motivation, self-absorption, risk-aversion ‘Survivors’ seek new employment Reputational damage Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Human Resource Management in Australia 3e by De Cieri et al.

Program implementation and evaluation Accountability Authority and resources available to accomplish the stated goals Regular progress reports on implementation Evaluation of results Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Human Resource Management in Australia 3e by De Cieri et al.

Formal HRP Formal HRP is more likely in organisations that: are larger have greater overall business planning sophistication have top management support for human resource planning have more involvement of human resource managers in the business planning process have greater integration across human resource activities Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Human Resource Management in Australia 3e by De Cieri et al.

Strategic approach to HRP A strategic approach to HRP includes: top management and HR managers desiring proactive involvement of HRM in the achievement of organisational goals integration of employee needs and wishes for career development with organisational goals coordination across HRM activities in light of organisational strategies and goals adherence to principles of equal opportunity focus on planning at the organisational level, not only at industry or regional level Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Human Resource Management in Australia 3e by De Cieri et al.

Summary: HRP When managed well, human resource planning can enhance the success of the organisation, while minimising difficulties resulting from poorly anticipated labour surpluses or shortages. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Human Resource Management in Australia 3e by De Cieri et al.

Human resource information systems (HRIS) Objectives Discuss the types of technologies that can improve the efficiency and effectiveness of HR. Discuss human resource information systems and their various applications for HR activities. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Human Resource Management in Australia 3e by De Cieri et al.

Human resource information systems (HRIS) A system used to acquire, store, manipulate, analyse, retrieve and distribute information related to a company’s human resources. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Human Resource Management in Australia 3e by De Cieri et al.

Factors leading to use of more sophisticated HRIS Development of increasingly complex and comprehensive IT systems Economic pressures Increasing demands by government for organisations to collect employee data Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Human Resource Management in Australia 3e by De Cieri et al.

Three broad functions for HRIS HRIS are used for three broad functions: Transaction processing, reporting and tracking Decision support systems Expert systems Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Human Resource Management in Australia 3e by De Cieri et al.

Technology: advantages or disadvantages? Employees gain complete control over their training and benefits enrolments (self-service) A paperless employment office can be created Streamlining the HR department’s work Technology can provide knowledge-based decision support Employees and managers select the type of media they want to use to send and receive information Work can be completed at any time, any place, day or night Closer monitoring of employees’ work Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Human Resource Management in Australia 3e by De Cieri et al.

HR technologies Interactive voice technology Internet Networks and client-server architecture Relational databases Imaging Laser disc technology Groupware, intranets and portals Global positioning systems Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Human Resource Management in Australia 3e by De Cieri et al.

HRIS: examples of applications for HRM HR planning Succession planning Workforce profile analysis Workforce dynamics analysis Staffing Applicant recruiting and tracking Employee database development Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Human Resource Management in Australia 3e by De Cieri et al.

HRIS: examples of applications for HRM (cont.) Performance management Learning and career development Compensation and benefits Payroll Job evaluation Salary surveys Salary planning International compensation Benefits management (cont.) Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Human Resource Management in Australia 3e by De Cieri et al.

Summary: HRIS Increasingly, organisations depend on more sophisticated HRIS in order to support human resource activities. Key drivers are: Increasing globalisation of business Development of more flexible, non-traditional organisation structures Development of information technology Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Human Resource Management in Australia 3e by De Cieri et al.