Human Resources Planning Chapter Six Human Resources Planning

Learning Objectives Define human resources planning Describe the two major steps in the human resources planning process Explain how human resources planning is related to the overall strategic plan of the organization Explain the relationship of human resources planning to the staffing process Describe why an understanding of the external labor market is important in human resources planning Explain the role of the human resources department in human resources planning

What is Human Resources Planning? Process of assessing the organization’s human resources needs in light of organizational goals and changing conditions, ensuring that a competent, stable workforce is employed.

STARTING POINT The starting point of effective human resources planning is the organization’s overall purpose, or mission, often written in the form of a mission statement. From this, the strategic plan is derived, which includes organizational goals and objectives. 2. Developing organizational goals is usually based on research into market needs, competition, and cost and profit estimates. Thus, human resources planning stems from the organization’s mission, goals, and objectives. 3. To be effective, human resources planning must also reflect the desired organizational culture and climate. 4. In addition to staffing changes and vacancies within the organization, human resources planning must also respond to changes in the external environment, such as market demand, changes in the labor market, technological innovations, and regulatory measures.

STEPS IN HR PLANNING PROCESS 1. Needs forecasting is the process of determining an organization’s future demand for human resources using a broad information base. a. Analysis of external conditions b. Future human resources requirements c. Future human resources availability d. Forecast of human resources needs e. Needs forecasting requires thoughtful research 2. Program planning a. Performance management is the planning of broad organizational matters, including performance appraisal and compensation. b. Career management involves the planning of staffing policies and systems. c. Succession planning is the process of anticipating future managerial staffing needs and planning for the development of managers to meet those needs.

International Human Resources Management The systematic planning and coordination of the fundamental organizational processes of job and work design, staffing, training and development, appraising, rewarding, and protecting and representing the human resources in the international or global aspects of an organization.

Relationship to Strategic Planning Mission statement Strategic plan Organizational goal Organizational objective

Figure 6.2 Typical development sequence from mission statement to human resources planning

Aspects of the Planning Process Needs Forecasting Research Program Planning Relationship to the Broad Staffing Process

Figure 6.3 Human Resources Planning (Needs Forecasting)

Figure 6.3 Human Resources Planning (Program Planning) (cont’d)

Alternative Staffing Patterns Contingent workers Permanent part-time workers Job sharing Telecommuting

THE EXTERNAL LABOR MARKET A. Analysis of the external labor market is extremely important in human resources planning. 1. The quality of training and education in society is of great consequence because every organization depends on the quality and quantity of external human resources. 2. Innovations in science and technology can create skill shortages and surpluses that affect worker demand. B. The demand for workers will vary widely among different categories of employment. 1. The greatest percentage increase will be in the category of technicians and related support occupations, such as assistants to scientists, engineers, and paralegals. The number of specialized operators of equipment, health diagnosticians, and teachers is expected to grow. 2. The greatest growth in absolute numbers will be in service industries such as food, cleaning, and protective services. C. An important aspect of human resources planning is the need to eliminate discrimination, or employment decisions based on racial, age, or sexual prejudice. Women and minorities have chronically been underemployed in a number of occupational categories.

Role of the HR Department A. The human resources department typically plays a major role in human resources planning, including labor‑force forecasting and Equal Employment Opportunity Commission (EEOC) activities. 1. This department is often the center of an information network on external and internal labor‑market conditions, staffing needs, compensation policies, and government regulations. 2. To make its maximum contribution to organizational effectiveness, the human resources department must take the initiative for active and responsive involvement in matters of human resources planning. B. Teamwork among the total executive group in both strategic planning and human resources planning is critical to organizational effectiveness.

Key Terms Human resources planning International Human Resources Management Mission statement Strategic plan Organizational goal Organizational objective Needs forecasting Program planning Performance management Career management Succession planning Acceleration pools Attrition Contingent workers Permanent part-time work Job sharing Telecommuting