1. Chapter 6 Human Resource Planning
McGraw-Hill/Irwin
Copyright © 2009 by The McGraw-Hill Companies, Inc., All Rights Reserved.

2. Overall Strategic Business Plan HR Planning Activities
HR Planning Process
Overall Strategic Business Plan
Human Resources Plan
HR Planning Activities

3. Overview: Human Resource Planning
Initial Decisions
Forecasting HR Requirements
Forecasting HR Availabilities
Reconciliation and Gaps
Action Planning

4. The Basic Elements of Human Resource Planning
3-4

5. The Basic Elements of Human Resource Planning
3-5

6. HRP: Initial Decisions
Strategic planning
Comprehensiveness
Linkages with larger organizational mission
Planning time frame
Job categories and levels
What jobs will be covered by a plan?
Head count (current workforce)
Roles and responsibilities

7. HRP: Forecasting HR Requirements
Quantitative techniques
Correlation and regression analysis
Correlation – measures relationship between two or more variables
Regression analysis – measures the value of one variable in terms of the other variable
Disadvantage – based on the assumption that the future will resemble the past
Simulation – computerized model that represents the key features/variables
Useful for “what if” questions

8. HRP: Forecasting HR Requirements
Subjective techniques
Qualitative information supplied by managers and supervisors
Managerial Estimates - “bottom-up” approach
Delphi Technique – panel of experts comes to a consensus
Zero Base Forecasting – current staffing level is used as starting point for estimating future requirements
Filling vacant positions or creating new positions or jobs must be justified – vacancies are not automatically filled

9. HRP: Forecasting HR Availabilities
Internal Sources
Skills inventories
Management inventories
Ongoing training and development
Replacement planning
Succession planning

10. HRP: Forecasting HR Availabilities
External Sources
Need to consider environmental factors that influence the potential availability of employees at a specific time
Ongoing process in order to meet availability needs

11. Examples of External Influences on Staffing

12. Labor Markets: Demand for Labor
Employment patterns
Demand for labor is a derived demand
Job growth projections
Employment growth projections
KSAOs sought
KSAO requirements
Education levels
Survey of skill deficiencies
Critically required skills

13. Labor Markets: Supply of Labor
Trends in supply of labor
Labor force trends relevant to staffing
Growth
KSAOs
Demographics
Other trends ???
KSAOs available
Educational attainment
Literacy
Related to technology

14. Labor Markets: Other Issues
Labor shortages and surpluses
“Tight” labor markets
“Loose” labor markets

15. Human Resource Planning
Reconciliation and Gaps
Coming to grips with projected gaps
Likely reasons for gaps
Assessing future implications
Action Planning
Set objectives
Generate alternative activities
Assess alternative activities
Choose alternative activities

16. Staffing Planning Process
Staffing objectives – derived from gaps between requirements/availabilities
Quantitative objectives (based on numbers)
Qualitative objectives (based on KSAOs)
Generate alternative staffing activities to deal with
employee shortages
employee surpluses

17. Staffing Alternatives to Deal With Employee Shortages
3-17

18. Staffing Alternatives to Deal With Employee Surpluses
3-18

19. Staffing Planning: Flexible Workforce
Advantages
Disadvantages
Two categories
Temporary employees
Independent contractors

20. Staffing Planning: Outsourcing and Offshoring
Advantages
Disadvantages
Special issues
Employer concerns regarding working conditions
Loss of control over quality