1 Human Resource Planning. PGP 2007-09 Human Resource Planning (HRP) Is the first component of HRM strategy All other functional HR activities are derived.

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Presentation transcript:

1 Human Resource Planning

PGP Human Resource Planning (HRP) Is the first component of HRM strategy All other functional HR activities are derived from and flow out of the HRP process. Has its basis in considerations of future HR requirements in light of present HR capabilities and capacities. Is proactive in anticipating and preparing flexible responses to changing HR requirements. Has both an internal and external focus.

PGP Human Resource Planning Definition: Acc to Stainer “Strategy for acquisition, utilization improvement and preservation of enterprises human resources” Beatty And Schneier defines it as a sequential process embodying the following five elements- 1.Imputs into HRP 2. Analysis of existing HR 3. Forecast of future HR needs 4. Implementing HR plan 5. Evaluation and redesign of the HR Plan

PGP HRP and Strategic Planning Strategic Analysis What human resources are needed and what are available? Strategic Formulation What is required and necessary in support of human resources? Strategic Implementation How will the human resources be allocated? Human Resource Planning Strategic Planning

PGP HR Planning Issues Staffing Questions: How do we manage staffing in times of recession or expansion? What impact does technology change, mergers or relocation have on staffing issues? Do we always have the right people in the right jobs at the right time? How do we get our human resources: buy them or make them or both?

PGP Major Objectives of HRP Preventing understaffing and overstaffing Ensure the organisation has the right employees with the right skills at the right place at the right time Ensure the organisation is responsive to changes in its environment Provide direction and coherence to all HR activities and systems

PGP Types of Planning Aggregate Planning Anticipating the needs for groups of employees in specific, usually lower level jobs and the general skills employees will need to ensure sustained high performance. Succession Planning Focuses on ensuring that key individual management positions in the organization remain filled with individuals who provide the best fit for these critical positions.

PGP HRP and Environmental Scanning Environmental Scanning The systematic monitoring of the major external forces influencing the organization. Economic factors Competitive trends Technological changes Political and legislative issues Social concerns Demographic trends

PGP Scanning the Internal Environment Cultural Audits Audits of the culture and quality of work life in an organization. How do employees spend their time? How do they interact with each other? Are employees empowered? What is the predominant leadership style of managers? Benchmarking The process of comparing the organization’s processes and practices with those of other companies.

PGP FORECASTING DEMAND Human Resource Planning Model Considerations Technology Technology Financial resources Financial resources Organizational growth Organizational growth Mgmt. philosophy Mgmt. philosophyConsiderations Technology Technology Financial resources Financial resources Organizational growth Organizational growth Mgmt. philosophy Mgmt. philosophyTechniques Trend analysis Trend analysis Managerial estimates Managerial estimates Delphi technique Delphi techniqueTechniques Trend analysis Trend analysis Managerial estimates Managerial estimates Delphi technique Delphi technique Techniques HR inventories HR inventories Markov analysis Markov analysis Skill inventories Skill inventories Replacement charts Replacement charts Succession Planning Succession PlanningTechniques HR inventories HR inventories Markov analysis Markov analysis Skill inventories Skill inventories Replacement charts Replacement charts Succession Planning Succession Planning External Considerations Wkforce changes Wkforce changes Mobility Mobility Govt policies Govt policies Unemployment Unemployment External Considerations Wkforce changes Wkforce changes Mobility Mobility Govt policies Govt policies Unemployment Unemployment FORECASTING SUPPLY BALANCING SUPPLY AND DEMAND (Shortage) Recruitment Full-time / Part-time Full-time / Part-time (Shortage) Recruitment Full-time / Part-time Full-time / Part-time (Surplus) Reductions Layoffs Layoffs Terminations Terminations Demotions Demotions Retirements Retirements (Surplus) Reductions Layoffs Layoffs Terminations Terminations Demotions Demotions Retirements Retirements

PGP Forecasting Demand for Employees Quantitative Methods Qualitative Methods Forecasting Demand

PGP Quantitative Approach: Trend Analysis Forecasting labor demand based on an organizational index: Select a business factor, e.g. sales, that best predicts human resources needs. Plot the business factor in relation to the number of employees to determine average labor productivity. Compute labor productivity for the past five years. Project human resources demand out to the target year(s).

PGP Example of Trend Analysis of HR Demand 1999 Rs. 2, Rs. 3, Rs. 3, Rs. 3, Rs. 3, Rs. 4, * Rs. 4, * Rs. 4, BUSINESS LABOR HR FACTORPROD TY DEMAND YEAR (SALES IN ‘000)(SALES/EMPLOYEE)(NO. OF EMPLOYEES ) *Projected figures ÷=

PGP Qualitative Approaches to Demand Forecasting Management Forecasts The opinions (judgments) of supervisors, department managers, experts, or others knowledgeable about the organization’s future employment needs. Delphi Technique An attempt to decrease the subjectivity of forecasts by soliciting and summarizing the judgments of a preselected group of individuals. The final forecast represents a composite group judgment.

PGP Forecasting Supply of Employees: Internal Labor Supply Staffing Tables Markov Analysis Skill Inventories Replacement Charts Succession Planning

PGP Forecasting Internal Labor Supply Staffing Tables Graphic representations of all organizational jobs, along with the numbers of employees currently occupying those jobs and future (monthly or yearly) employment requirements. Markov Analysis A method for tracking the pattern of employee movements through various jobs.

PGP Hypothetical Markov Analysis for a Retail Company

PGP Internal Supply Forecasting Tools Skill Inventories Files of personnel education, experience, interests, skills, etc., that allow managers to quickly match job openings with employee backgrounds. Replacement Charts Listings of current jobholders and persons who are potential replacements if an opening occurs.

PGP An Executive Replacement Chart

PGP Forecasting Supply of Employees: External Labor Supply Factors Influencing the External Labor Supply: Demographic changes in the population National and regional economics Education level of the workforce Demand for specific employee skills Population mobility Governmental policies

PGP Sources of Information About External Labor Markets Department of Labor publications State and local planning and development agencies Chambers of Commerce Industry and trade group publications State and local employment agencies

PGP HRP Considerations Balancing supply and demand

PGP Elements of The HR Plan Acquisition of personnel Effective Utilization redeployment methods improvement training to prevent obsolescence Development and Improvement broad-based training and development performance management systems Retention proper remuneration long-term career planning healthy employee relations good working environment

PGP Requisites for Successful HRP HRP must be seen as equally vital as business planning Top-management support Periodic review and revision of the forecasting techniques and the forecasts Without long range planning concentration becomes focussed on short-term needs resulting in “crisis management” reactions An excellent and up-to-date HRIS Active involvement of line managers and co- ordination between line mgrs and HR function