Key areas of Human Resource Planning General Overview and Definition Importance and Objectives of HRP Four phases of HR planning HR (Demand) forecasting and Techniques Analysis of Supply of Current Employees HR Information Systems Supply and Demand: organisational impacts Catalysts or Constraints to Effective HRP HR PLANNING

Human Resource Planning (Manpower Planning) Definition: The process used by an organisation to assess the demand for and supply of future human resources. It is the process used to determine the numbers and kinds of employees an organisation will recruit or retrench, consistent with the business strategy or strategic plan Is performed by both line managers and HR managers (Ivancevich) HR PLANNING

Objectives of HRP… To achieve more effective and efficient use of employees/human resources To better recruit employees who possess the necessary skills and competences To achieve a higher rate of satisfied and better developed employees HR PLANNING

Objectives of HRP… To facilitate training and development programmes To facilitate the roll-out of strategic plans/missions To achieve more effective equal opportunity planning To relieve the organisation of unnecessary/ unneeded labour HR PLANNING

Strategic Planning for Human Resources… The process of developing plans (strategic & tactical) that integrate the separate HR activities into a cohesive functional whole, for the achievement of organisational objectives These HR activities are: Acquisition, performance management, motivation, compensation & development HR PLANNING

The Role of Tactical Planning… This involves contributing a general managerial knowledge and business appreciation, and internal affairs of the organisation; and contributing HR knowledge for the development of the tactical structures Designing planning processes for behavioural change Assisting in managing planned change HR PLANNING

The Four Phases of the HR Planning… Situational Analysis/Environmental Scanning Forecasting HR demand - Assessment future HR needs HR supply analysis - Assessment of current HR Action planning or programme of action to fulfil future HR needs (Ivancevich) HR PLANNING

HR (Demand) Forecasting Techniques… Expert Estimate Technique Trend-Projection Technique Modelling and Multiple-Predictive Techniques Unit-Demand Forecasting technique Delphi Group Technique Nominal Group Technique (Ivancevich) HR PLANNING

Analysis of Supply of Current Employees… The Comprehensive Skills Inventory Components of the Skills Inventory (SI) Importance and relevance of the SI Technology and the SI (Fisher et al) HR PLANNING

SUPPLY AND DEMAND: “ORGANISATIONAL IMPACTS” Product demand and need for increased productivity, can create labour demand The Internal and External Labour Markets are the sources of Labour Supply (Fisher et al) HR PLANNING

Labour Supply exceeds Labour Demand… RESPONSE: Pay cuts Reduced work hours Voluntary early retirement Layoffs Work sharing Attrition Inducements to quit (Mondy & Noe) HR PLANNING

Labour Demand Exceeds Labour Supply… RESPONSE: Training and Retraining Succession Planning Promotion from within Recruitment and Selection from within (Mondy & Noe) HR PLANNING

Labour Demand Exceeds Labour Supply… Sub-contracting Part-timers Temporary workers Overtime HR PLANNING

Labour Demand equals Supply… RESPONSE: Replacement of quits form inside or outside Internal transfers and redeployment (Mondy & Noe) HR PLANNING

Catalysts or Constraints to Effective HRP… Availability of Finance Management commitment Management support Corporate culture Human Resource development policies Economic conditions Size and complexity of organisation (Mondy & Noe; Fisher) HR PLANNING

Catalysts or Constraints to Effective HRP… Technical and human competence Research capabilities Availability of technology Time Rewards policy and systems Industrial Relations Labour market conditions HR PLANNING

Global Trends in HR Planning… More responsive to dynamic and rapidly changing environments More responsive to strategic demands of organisation - strategic/business focus Need for highly skilled/trained labour More scientific approaches to HRP (Fisher et al ) HR PLANNING

Global Trends in HR Planning… HRP for competitive advantage HRP for national sustainable development Competencies based assessments More high tech. Recruitment, Selection and Orientation policies, programmes and processes HR PLANNING

References… John Ivancevich, Human Resource Management (1997) Ian Beardwell & Leon Holden, Human Resource Management: a contemporary perspective (1997) David Cherrington, The management of Human Resources (1995) Wayne Mondy & Robert Noe, Human Resource Management Fischer et al, Human Resource Management (1999) HR PLANNING