1. Human Resource Planning (HRP) Dr. Salim AlShukaili

2. Chapter Objectives
After you have read this chapter, you should be able to:
Define HR planning and outline the HR planning process.
Describe the means for assessing the external and internal workforce in HR planning.
Identify methods for forecasting HR supply and demand levels.

3. Human Resource Planning (HRP)
HR Planning is to make predictions of future needs of the organization according to the organization goals and develop action plans for meeting the needs in the future.
HR Planning is part of the organization’s strategic planning.
Human resource planning is the term used to describe how companies ensure that their staff are the right staff to do the jobs.

4. HR manager ensures that the company has the right type of people in the right number at the right time and place, who are trained and motivated to do the right kind of work at the right time.

5. Effective HR Planning Right people Right capabilities Right times
Right places

6. 1. HRP (Definitions):
Human Resource Planning ―the process of determining manpower requirements and the means for meeting those requirements in order to carry out the integrated plan of the organization.
Process of anticipating and making provision for the movement (flow) of people into, within, and out of an organization.

7. The process of analyzing and identifying the need for and availability of human resources so that the organization can meet its objectives.
The process of systematically reviewing human resource requirements to ensure
right skills are available.

8. HR Planning Responsibilities
Top HR executive and subordinates gather information from other managers to use in the development of HR projections for top management to use in strategic planning and setting organizational goals.

9. 2. HRP (Objectives):
Ensure optimum use of human resources currently employed.
Provide balances in the distribution and allocation of human resources.
Assess or forecast future skill requirements of the organization's overall objectives.
Provide control measure to ensure availability of necessary resources when required.
Control the cost aspect of human resources.
Formulate transfer and promotion policies.

10. HRP (The Importance): Shortage of qualified resources to fill jobs
Wider span of retirement options
Need for life-long learning
Reduce personnel costs by anticipating shortages and surpluses
Resistance of employees to change and organizational demand for it
Provide informed base for planning employee development

11. HRP (Benefits ):
Encouragement of Proactive Rather Than Reactive Behavior
Explicit Communication of Company Goals
Stimulation of Critical Thinking and Ongoing Examination of Assumptions
Identification of Gaps Between Current Situation and Future Vision
Encouragement of Line Managers’ Participation
Identification of HR Constraints and Opportunities
Creation of Common Bonds

12. HRP (The Challenges): Maintaining a Competitive Advantage
Reinforce Overall Business Support
Avoiding Excessive Concentration on Day- to-Day Problems
Developing HR Strategies Suited to Unique Organizational Features

13. Coping with the Environment
Securing Management Commitment
Translating the Strategic Plan into Action
Combining Intended and Emergent Strategies
Accommodating Change

14. Features of HRP:
Consistency: consistent to organization goals.
Continuity: between long-term, mid-term and short-term.
Flexibility: adapting according to change.
Accuracy: be as close as possible to reality.

15. HRP Part 2

16. The Human Resource Planning Process
Project future human resource supply
Forecast future human resource needs
Compare forecast needs with projected supply
Plan policies and programs to meet human resource needs
Evaluate human resource planning effectiveness

17. Forecasting HR Supply and Demand
Using information from the past and the present to identify expected future conditions.
Types of Forecasts
HR Demand
Internal Supply
External Supply

18. Forecasting: Needs and Uses
Scheduling existing resources
How many employees do we need and when?
How much product should we make in anticipation of demand?
Acquiring additional resources
When are we going to run out of capacity?
How many more people will we need?
How large will our back-orders be?

19. Determining what resources are needed
What kind of machines will we require?
Which services are growing in demand? declining?
What kind of people should we be hiring?

20. HR PLANNING Strategic Planning Human Resource Planning
Forecasting Human Resource Requirements
Comparing Requirements and Availability
Forecasting Human Resource Availability
Demand = Supply
Surplus of Workers
Shortage of Workers
No Action
Restricted Hiring, Reduced Hours, Early Retirement, Layoff, Downsizing
Recruitment
Selection

21. Forecasting HR Requirements (Demand)
Demand for firm’s goods or services must be forecast
Estimate of numbers and kinds of employees the organization will need at future dates
Forecast is then converted into people requirements

22. Forecasting HR Availability (Supply)
Determining whether the firm will be able to secure employees with the necessary skills, and from what sources these individuals may be obtained
Show whether the needed employees may be obtained from within the company, from outside the organization, or from a combination of the two sources

23. Conditions and Select Responses
Labour Demand Equals Labour Supply
No replacements of quits from inside or outside
No recruiting
No early retirements
No additional training
Do internal transfers and redeployment

24. Conditions and Select Responses
2. Labour demand is less than available supply
Surplus of Employees
Reduction
Demotion
Voluntary early retirement
Termination
Layoffs

25. Conditions and Select Responses Shortage of Workers Forecasted
3. Labour Demand Exceeds Labour Supply
Shortage of Workers Forecasted
Training/ retraining
Succession Planning
Promotion from within
External recruitment
Subcontracting
Par-time/temporary workers
Creative recruiting
Compensation incentives
Training programs
Overtime work

26. Human Resource Information Systems (HRIS)
An integrated system of hardware, software, and databases designed to provide information used in HR decision making.
Benefits of HRIS
Administrative and operational efficiency in compiling HR data
Availability of data for effective HR strategic planning
Automation of payroll and benefit activities

27. Designing and Implementing an HRIS
HRIS Design Issues
What information available and what is information needed?
To what uses will the information be put?
What output format compatibility with other systems is required?
Who will be allowed to access to the information?
When and how often will the information be needed?

28. The HRIS Department’s responsibilities:
Identification, planning, and implementation of HRIS changes and updates in order to meet the strategic needs of the Division of Human Resources.
Project implementation to simplify time-consuming transactions through the automation of administrative. tasks and departmental workflows, and foster a paperless and more efficient working environment.
Production support activities such as technical data analysis, upgrade testing, and documentation of Human Resources processes.

29. To provide information and statistical reports to internal and external customers.
Support, analyze, and maintain the HR web site and provide web technology solutions and services to improve the efficiency of Human Resources business processes, effectiveness of HR services and programs to customers.
To recommend and implement HRIS projects based on production issues and/or departmental IS needs.

30. Uses of HR Information System (HRIS)

31. The End