1. Chapter Four Human Resources Planning 4
Dessler, Cole, and Sutherland
Human Resources Management in Canada
Canadian Ninth Edition
Chapter Four
Human Resources
Planning 4
© 2005 Pearson Education Canada Inc., Toronto, Ontario
4-1

2. Human Resources Planning
-review human resources requirements to
ensure:
-the necessary number of employees
-the necessary employee skills
to meet organizational goals
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3. Human Resources Planning
Forecast
demand
Analyze
supply
Plan and implement
programs to balance
supply and demand
© 2005 Pearson Education Canada Inc., Toronto, Ontario

4. Human Resources Planning
Importance of HR Planning (1 of 2)
-achieve goals and objectives
-plan staffing and development activities
-achieve economies in hiring
-make major labour market demands
© 2005 Pearson Education Canada Inc., Toronto, Ontario

5. Human Resources Planning
Importance of HR Planning (2 of 2)
-anticipate and avoid staff shortages/surpluses
-control/reduce labour costs
-utilize employee capabilities effectively
-establish employment equity goals/timetables
© 2005 Pearson Education Canada Inc., Toronto, Ontario

6. Human Resources Planning
Results of Inadequate HR Planning (1 of 3)
-vacant positions create costly inefficiencies
-overtime hours at premium cost
-simultaneous layoffs and hiring
-mass layoffs requiring:
-severance pay
-extended notice periods
© 2005 Pearson Education Canada Inc., Toronto, Ontario

7. Human Resources Planning
Results of Inadequate HR Planning (2 of 3)
-vacant positions
-costly inefficiency
-overtime hours at premium cost
-simultaneous layoffs and hiring
-mass layoffs requiring:
-extended notice periods
-severance pay
© 2005 Pearson Education Canada Inc., Toronto, Ontario

8. Human Resources Planning
Results of Inadequate HR Planning (3 of 3)
-ineffective training, development, career planning
-turnover of high performers
-problems with employment equity goals
-inability to meet operational and strategic plans
© 2005 Pearson Education Canada Inc., Toronto, Ontario

9. Human Resources Planning
HR Planning
Strategic Planning
reciprocal and interdependent relationship
-environmental scanning critical for both
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10. Human Resources Planning
External Environmental Factors Monitored
-economic conditions
-market and competitive trends
-government and legislative issues
-social concerns
-technological changes
-demographic trends
© 2005 Pearson Education Canada Inc., Toronto, Ontario

11. Elements of Effective HR Planning
4. Monitor and Evaluate Results
3. Implement Plans to Balance Supply and Demand
2. Forecast Future Internal/External Candidates (Supply)
1. Forecast Future HR Needs (Demand)
© 2005 Pearson Education Canada Inc., Toronto, Ontario

12. Forecasting Future HR Needs (Demand)
Forecasting based on:
-demand for product/service
-projected turnover
-quality and nature of employees
-decisions regarding product quality
-plans for technological change
-plans to reduce headcount
-financial resources
© 2005 Pearson Education Canada Inc., Toronto, Ontario

13. Forecasting Future HR Needs (Demand)
Quantitative Approaches
Trend analysis: review past employment levels
Ratio analysis: ratio of business activity/employees
Scatter plot: graph of business activity/employees
Regression analysis: statistical relationship
between business activity and employees
Computerized forecasting techniques
© 2005 Pearson Education Canada Inc., Toronto, Ontario

14. Forecasting Future HR Needs (Demand)
Qualitative Approaches
1. Nominal Group Technique
-experts meet face-to-face
-group discussion facilitates exchange of ideas
-possible subjectivity, group pressure
2. Delphi Technique
-experts work independently
-wide range of views
-difficult to integrate diverse opinions
© 2005 Pearson Education Canada Inc., Toronto, Ontario

15. Forecasting Future HR Supply
Skills Inventories
manual or computerized records
used to identify internal candidates for transfer
or promotion
summary of each employee’s:
education
experience
interests
skills
© 2005 Pearson Education Canada Inc., Toronto, Ontario

16. Forecasting Future HR Supply
Management Inventories
summary of each management employee’s:
background
qualifications
interests
skills
managerial responsibilities
duties in current/previous positions
management training
© 2005 Pearson Education Canada Inc., Toronto, Ontario

17. Forecasting Future HR Supply
Replacement Charts
visual representations of likely internal
replacement employees for each position
data on each candidate includes:
age
present performance rating
promotability status
© 2005 Pearson Education Canada Inc., Toronto, Ontario

18. Forecasting Future HR Supply
Replacement Summaries
lists of likely internal replacement employees
for each position
data on each candidate includes:
relative strengths and weaknesses
current position
performance
promotability
age
experience
© 2005 Pearson Education Canada Inc., Toronto, Ontario

19. Forecasting Future HR Supply
Computerized Skills Inventory
Formal education
Industry experience
Work experience
Product/service
knowledge
Training courses
Language skills
Relocation
limitations
Career interests
Performance ratings
© 2005 Pearson Education Canada Inc., Toronto, Ontario

20. Forecasting Future HR Supply
Succession Planning
analyze demand for managers/professionals
audit existing executives, project future supply
individual career planning/career counseling
accelerated promotions
performance-related training and development
planned strategic recruitment
© 2005 Pearson Education Canada Inc., Toronto, Ontario

21. Forecasting Future HR Supply
Forecasting Supply of External Candidates
general economic conditions
national labour market conditions
local labour market conditions
occupational market conditions
© 2005 Pearson Education Canada Inc., Toronto, Ontario

22. Balancing Supply and Demand
Dealing with a Labour Surplus
hiring freeze
attrition
buy-out and early retirement programs
reducing hours (job sharing, reduced
workweek, part-time work, work sharing)
internal transfers
layoffs (reverse seniority or juniority)
termination with outplacement assistance
© 2005 Pearson Education Canada Inc., Toronto, Ontario

23. Balancing Supply and Demand
Dealing with a Labour Shortage
overtime
hiring temporary employees
subcontracting work
external recruitment
transfers
promotions
© 2005 Pearson Education Canada Inc., Toronto, Ontario

24. HRP Evaluation Specific Criteria Assessed
Actual staffing levels vs. staffing requirements
Ratio of internal placement to external hiring
Actual internal mobility flow vs. career plans
Internal mobility flow vs. turnover
Employment equity achievements vs. goals
© 2005 Pearson Education Canada Inc., Toronto, Ontario