Human Resource Planning: Importance and Purpose Shortage of qualified resources to fill jobs Wider span of retirement options Need for life-long learning.

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Presentation transcript:

Human Resource Planning: Importance and Purpose Shortage of qualified resources to fill jobs Wider span of retirement options Need for life-long learning Resistance of employees to change and organizational demand for it Reduce personnel costs by anticipating shortages and surpluses Provide informed base for planning employee development Provide equal opportunities

Levels of Strategic Planning Corporate level:Board of Directors, CEO, Vice Presidents Business Level –Product Division 1 –Product Division 2 Functional Level –HR Division, Marketing Division, Finance, etc

Link to Organizational Strategy How do HR decisions affect external standards (EEO compliance, OSHA, community relations)? How do HR decisions affect internal standards? Do financial markets react to HR decisions, e.g., layoffs, hiring, training?

Human Resource Department & Assessing Added Value Stakeholder opinions and perceptions Auditing human resource activities HR budgets Activity, cost or headcount ratios Human resource accounting -- putting a $$ value on HR activities Human Resource competencies

Human Resource Plan Organizational Goals HR Needs Forecast Employee Information HR Availability Projections Analysis of HR Gaps Generate,Test Alternatives Implement Program Monitor Results

Employment Planning Demand analysis Linking business plans to hr requirements Internal supply analysis External supply analysis Reconciling Supply and demand Activities for shortages and surpluses

Human Resource Planning Process External Environment Internal Environment Forecasting HR Requirements Comparing Requirement & Availability Forecasting HR Availability Strategic Planning HR Planning

Human Resource Planning Process, Cont. Comparing Req’s & Availability Demand = Supply Status Quo Surplus of Workers Retirement Layoff Downsize Shortage of Workers Hire Overtime

Replacement Chart Candy Kane: 0 Austin Ford: 0 Mark Time:2 P. Button: 1 E. Silver: 2 M. Monroe: 0 J. Russell: 0 S. Temple: 1 M. McGuire: 0 S. Sosa: 1 Manager Training & Dev.: Ms. Jones Readiness Code 0= ready now 1=ready 1 yr. 2=ready 2 yrs C. Kane: Development A. Ford: Training. M. Time: Labor Rel.

Backwards & Forwards Summing up — Today we explored the links between organizational strategy and Human Resource Planning, at bench marks for the HR Department and at techniques of employment planning but for expansion and for downsizing Looking ahead: Next time we take an in-depth look at Human Resource Information Systems. What types of information are typically stored, how these types of information can be used to identify problems and to make informed decisions.