Human Resource Planning

Human Resource Planning

Human Resource (HR) Planning
The process of analyzing and identifying the
need for and availability of human resources
so that the organization can meet its
objectives.
It is concerned with the flow of people into ,
through, and out of a organization.
It is anticipation, and planning for human
resource programs
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.

INTERACTION BETWEEN STRATEGIC
PLANNING AND HRP
What do we do? HR Forecasting
Yes
Develop programs to
increase supply or
reduce demand
Develop programs to
decrease supply or
increase demand
No Match?
Forecast HR
requirements (demand)
Forecast HR
availability (supply)
Strategic HR Planning
HRP Model
Review of organizational environment and strategies
Forecast the demand for human resources
Forecast supply of human resources
- Internal (Assess the internal workforce)
- External
Plan and conduct needed programs
- Manage the excess supply or demand
- Develop career plans
- Develop succession
Feedback on planning process
Environmental Scanning
The process of studying the environment of
the organization to pinpoint opportunities and
threats.
HR
Planning
Government
Influences
Economic
Conditions
Geographic and
Competition
Concerns
Workforce
Composition
Forecasting HR Supply and
Demand
Forecasting
The use of information from the past and present to identify expected
future conditions.
Types of Forecasts
HR Demand (Employees needed for future)
HR Supply ( Employees available for the future)
Forecasting Periods
Short-termless than one year
Intermediateup to five years
Long-rangemore than five years
Forecasting demand
Short term-long term
How many and what type?
Two categories
- Judgmental
Bottom- up
Top-down
Delphi-technique
Mathematical methods
Productivity ratio- average units per direct
labour.
Staffing ratio direct to indirect labour
Multiple regression and linear programming
Forecasting HR Supply
Forecasting External HR Supply
Factors affecting external supply:
Net migration for an area
Individuals entering and leaving the workforce
Individuals graduating from schools and colleges
Changing workforce composition and patterns
Economic forecasts
Technological developments and shifts
Actions of competing employers
Government regulations and pressures
Other circumstances affecting the workforce
Forecasting internal supply
- Skill inventory
- HRIS

Assessing the Internal
Workforce
Jobs and Skills Audit
What jobs exist now?
How many individuals are performing each job?
What are the reporting relationships of jobs?
How essential is each job?
What jobs will be needed to implement future organizational
strategies?
What are the characteristics of anticipated jobs?
Assessing the Internal
Workforce (contd)
Organizational Capabilities Inventory
HRIS databasessources of information
about employees knowledge, skills, and
abilities (KSAs)
Components of an organizational capabilities
inventory
Individual employee demographics
Individual career progression
Individual job performance data
Predicting internal supply
Markov analysis
Replacement charts and renewal analysis
Succession planning


Forecasting HR Supply (contd)
Succession Planning
The process of identifying a long-term plan for
the orderly replacement of key employees.
Managing a Human Resources Surplus
Do not hire/replace
VRS
Reduce work hours
Lay off
Transfer / reassign

Managing a Shortage of
Employees
Use overtime
Add contingent workers
Bring back recent retirees
Outsource work
Reduce turnover
Human
Resource
Shortage