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

2. 3-2 HR Planning Process Overall Strategic Business Plan Human Resources Plan HR Planning Activities

3. 3-3 Overview: Human Resource Planning 1.Initial Decisions 2.Forecasting HR Requirements 3.Forecasting HR Availabilities 4.Reconciliation and Gaps 5.Action Planning

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

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

6. 3-6 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. 3-7 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. 3-8 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. 3-9 HRP: Forecasting HR Availabilities Internal Sources Skills inventories Management inventories Ongoing training and development Replacement planning Succession planning

10. 3-10 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. 3-11 Examples of External Influences on Staffing

12. 3-12 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. 3-13 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. 3-14 Labor Markets: Other Issues Labor shortages and surpluses “Tight” labor markets “Loose” labor markets

15. 3-15 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. 3-16 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. 3-19 Staffing Planning: Flexible Workforce Advantages Disadvantages Two categories Temporary employees Independent contractors

20. 3-20 Staffing Planning: Outsourcing and Offshoring Advantages Disadvantages Special issues Employer concerns regarding working conditions Loss of control over quality