1. HR Planning

2. 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.

3. How many people do we need? Product Demand X Labor Productivity Turnover Where are they coming from? Internal Labor Market  Existing employees External Labor Market  Potential employees HR Planning

4. HR Forecasts Labor demand  Strategic Planning  Succession Planning  Managing Retention Labor supply  Labor markets  Specific shortages Labor SupplyLabor Demand

5. Major Objectives of HRM Planning Prevent overstaffing and understaffing Right skills in place Monday morning Ensure responsiveness to change Alignment of all HRM systems Gain agreement between line and management on goals and objective

6. Forecasting Demand for Employees Consider the firm’s strategic plan’s likely impact on the demand for the firm’s products or services. Assumptions on which the forecast is predicated should be written down and revisited when conditions change. Unit forecasting (bottom-up planning) involves “point of contact” estimation of the future demand for employees. Top-down forecasting involves senior managers allocating a fixed payroll budget across the organizational hierarchy.

7. Forecasting Demand for Employees Budgeting Statistical Techniques  Trend analysis  Regression  Probability models Qualitative Techniques  Ask the experts / Delphi Technique Needs are then compared to current workforce to identify gaps and decide staffing actions. Take into account:  Productivity and FTE employees  Scheduling and shifts  High volume / traffic times

8. Trend Analysis of HR Demand 1997$2,35114.33164 1998$2,61311.12235 1999$2,9358.34352 2000$3,30610.02330 2001$3,61311.12325 2002$3,74811.12337 2003$3,88012.52310 2004*$4,09512.52327 2005*$4,28312.52342 2006*$4,44612.52355 BUSINESS  LABOR = HUMAN RESOURCES FACTORPRODUCTIVITYDEMAND YEAR (SALES IN THOUSANDS)(SALES/EMPLOYEE)(NUMBER OF EMPLOYEES) *Projected figures

9. Forecasting Supply of Employees Staffing Tables Markov Analysis Skill Inventories Succession Planning

10. Forecasting Internal Labor Supply Staffing Tables  Graphic representations of the number of employees currently occupying certain jobs and future (monthly or yearly) employment requirements. Markov Analysis  A method for tracking the pattern of employee promotions up through and organization.

11. Markov Analysis for a Retail Company

12. Forecasting Internal Labor Supply Skill Inventories  Databases of employee KSA’s, education, and used to match job openings with employee backgrounds. Succession Planning  The process of identifying, developing, and tracking key individuals for executive positions.  Listings of current jobholders and persons who are potential replacements if an opening occurs.

13. Succession Planning

14. Staffing Actions Recruiting new employees Developing existing employees Retaining key employees Restructuring or redeployment Outsourcing functions Using contingent employees Reassigning shifts