Human Resources

Planning

© 2005 Pearson Education Canada Inc., Toronto, Ontario 4-1

4-1
Human Resources Planning

-review
-review human
human resources
resources requirements
requirements to
to
ensure:
ensure:
-the
-the necessary
necessary number
number ofof employees
employees
-the
-the necessary
necessary employee
employee skills
skills
to
to meet
meet organizational
organizational goals
goals

© 2005 Pearson Education Canada Inc., Toronto, Ontario 4-2

 Human Resources Planning

Plan
Plan and
and implement
implement
Forecast
Forecast Analyze
Analyze
programs
programs toto balance
balance
demand
demand supply
supply
supply
supply and
and demand
demand

© 2005 Pearson Education Canada Inc., Toronto, Ontario 4-3

Human Resources Planning
Importance of HR Planning (1 of 2)

-achieve
-achieve goals
goals and
and objectives
objectives
-plan
-plan staffing
staffing and
and development
development activities
activities
-achieve
-achieve economies
economies in in hiring
hiring
-make
-make major
major labour
labour market
market demands
demands

© 2005 Pearson Education Canada Inc., Toronto, Ontario 4-4

 Human Resources Planning
Importance of HR Planning (2 of 2)

-anticipate
-anticipate and
and avoid
avoid staff
staff shortages/surpluses
shortages/surpluses
-control/reduce
-control/reduce labour
labour costs
costs
-utilize
-utilize employee
employee capabilities
capabilities effectively
effectively
-establish
-establish employment
employment equity
equity goals/timetables
goals/timetables

© 2005 Pearson Education Canada Inc., Toronto, Ontario 4-5

 Human Resources Planning
Results of Inadequate HR Planning (1 of 3)

-vacant
-vacant positions
positions create
create costly
costly inefficiencies
inefficiencies
-overtime
-overtime hours
hours atat premium
premium cost
cost
-simultaneous
-simultaneous layoffs
layoffs and
and hiring
hiring
-mass
-mass layoffs
layoffs requiring:
requiring:
-severance
-severance paypay
-extended
-extended notice
notice periods
periods
© 2005 Pearson Education Canada Inc., Toronto, Ontario 4-6
 Human Resources Planning
Results of Inadequate HR Planning (3 of 3)

-ineffective
-ineffective training,
training, development,
development, career
career planning
planning
-turnover
-turnover of of high
high performers
performers
-problems
-problems withwith employment
employment equity
equity goals
goals
-inability
-inability to
to meet
meet operational
operational and
and strategic
strategic plans
plans

© 2005 Pearson Education Canada Inc., Toronto, Ontario 4-7

 Human Resources Planning

HR
HR Planning
Planning Strategic
Strategic Planning
Planning

--reciprocal
reciprocal and
and interdependent
interdependent relationship
relationship
-environmental
-environmental scanning
scanning critical
critical for
for both
both
© 2005 Pearson Education Canada Inc., Toronto, Ontario 4-8
Human Resources Planning
External Environmental Factors Monitored
-economic
-economic conditions
conditions
-market
-market and
and competitive
competitive trends
trends
-government
-government and
and legislative
legislative issues
issues
-social
-social concerns
concerns
-technological
-technological changes
changes
-demographic
-demographic trends
trends
© 2005 Pearson Education Canada Inc., Toronto, Ontario 4-9
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 4-10

 Forecasting Future HR Needs
(Demand)
Forecasting
Forecasting basedbased on:
on:
-demand
-demand for for product/service
product/service
-projected
-projected turnover
turnover
-quality
-quality and
and nature
nature of
of employees
employees
-decisions
-decisions regarding
regarding product
product quality
quality
-plans
-plans for
for technological
technological change
change
-plans
-plans to
to reduce
reduce headcount
headcount
-financial
-financial resources
resources
© 2005 Pearson Education Canada Inc., Toronto, Ontario 4-11
 Forecasting Future HR Needs
(Demand)
Quantitative Approaches

Trend
Trend analysis:
analysis: review
review past
past employment
employment levelslevels
Ratio
Ratio analysis:
analysis: ratio
ratio of
of business
business activity/employees
activity/employees
Scatter
Scatter plot:
plot: graph
graph ofof business
business activity/employees
activity/employees
Regression
Regression analysis:
analysis: statistical
statistical relationship
relationship
between
between business
business activity
activity and
and employees
employees
Computerized
Computerized forecasting
forecasting techniques
techniques
© 2005 Pearson Education Canada Inc., Toronto, Ontario 4-12
 Forecasting Future HR Needs
(Demand)
Qualitative Approaches
1.
1. Nominal
NominalGroup
GroupTechnique
Technique
-experts
-expertsmeet
meet face-to-face
face-to-face
-group
-groupdiscussion
discussionfacilitates
facilitatesexchange
exchangeof
of ideas
ideas
-possible
-possible subjectivity,
subjectivity, group
group pressure
pressure
2.
2. Delphi
Delphi Technique
Technique
-experts
-expertswork workindependently
independently
-wide
-widerange
range of of views
views
-difficult
-difficult to
tointegrate
integratediverse
diverseopinions
opinions
© 2005 Pearson Education Canada Inc., Toronto, Ontario 4-13
 Forecasting Future HR
Supply
Skills Inventories
•• manual
manual or or computerized
computerized records
records
•• used
used toto identify
identify internal
internal candidates
candidates for
for transfer
transfer
or
or promotion
promotion
•• summary
summary of of each
each employee’s:
employee’s:
•• education
education
•• experience
experience
•• interests
interests
•• skills
skills
© 2005 Pearson Education Canada Inc., Toronto, Ontario 4-14
 Forecasting Future HR
Supply
Management Inventories
•• summary
summary of of each
each management
management employee’s:
employee’s:
•• background
background
•• qualifications
qualifications
•• interests
interests
•• skills
skills
•• managerial
managerial responsibilities
responsibilities
•• duties
duties in
in current/previous
current/previous positions
positions
•• management
management training
training
© 2005 Pearson Education Canada Inc., Toronto, Ontario 4-15
 Forecasting Future HR
Supply
Replacement Charts

•• visual
visual representations
representations of
of likely
likely internal
internal
replacement
replacement employees
employees forfor each
each position
position
•• data
data on
on each
each candidate
candidate includes:
includes:
•• age
age
•• present
present performance
performance rating
rating
•• promotability
promotability status
status

© 2005 Pearson Education Canada Inc., Toronto, Ontario 4-16

 Forecasting Future HR
Supply
Replacement Summaries
•• lists
lists of
of likely
likely internal
internal replacement
replacement employees
employees
for
for each
each position
position
•• data
data onon each
each candidate
candidate includes:
includes:
•• relative
relative strengths
strengths andand weaknesses
weaknesses
•• current
current position
position
•• performance
performance
•• promotability
promotability
•• age
age
•• experience
experience
© 2005 Pearson Education Canada Inc., Toronto, Ontario 4-17
Forecasting Future HR
Supply
Computerized Skills Inventory

Formal
Formal education
education Language
Language skills
skills
Industry
Industry experience
experience Relocation
Relocation
Work
Work experience
experience limitations
limitations
Product/service
Product/service Career
Career interests
interests
knowledge
knowledge Performance
Performance ratings
ratings
Training
Training courses
courses
© 2005 Pearson Education Canada Inc., Toronto, Ontario 4-18
 Forecasting Future HR
Supply
Succession Planning

•• analyze
analyze demand
demand forfor managers/professionals
managers/professionals
•• audit
audit existing
existing executives,
executives, project
project future
future supply
supply
•• individual
individual career
career planning/career
planning/career counseling
counseling
•• accelerated
accelerated promotions
promotions
•• performance-related
performance-related training
training and
and development
development
•• planned
planned strategic
strategic recruitment
recruitment

© 2005 Pearson Education Canada Inc., Toronto, Ontario 4-19

 Forecasting Future HR
Supply
Forecasting Supply of External Candidates

•• general
general economic
economic conditions
conditions
•• national
national labour
labour market
market conditions
conditions
•• local
local labour
labour market
market conditions
conditions
•• occupational
occupational market
market conditions
conditions

© 2005 Pearson Education Canada Inc., Toronto, Ontario 4-20

 Balancing Supply and
Demand
Dealing with a Labour Surplus
•• hiring
hiring freeze
freeze
•• attrition
attrition
•• buy-out
buy-out andand early
early retirement
retirement programs
programs
•• reducing
reducing hours
hours (job
(job sharing,
sharing, reduced
reduced
workweek,
workweek, part-time
part-time work,
work, work
work sharing)
sharing)
•• internal
internal transfers
transfers
•• layoffs
layoffs (reverse
(reverse seniority
seniority or
or juniority)
juniority)
•• termination
termination with
with outplacement
outplacement assistance
assistance
© 2005 Pearson Education Canada Inc., Toronto, Ontario 4-21
 Balancing Supply and
Demand
Dealing with a Labour Shortage

•• overtime
overtime
•• hiring
hiring temporary
temporary employees
employees
•• subcontracting
subcontracting work
work
•• external
external recruitment
recruitment
•• transfers
transfers
•• promotions
promotions

© 2005 Pearson Education Canada Inc., Toronto, Ontario 4-22

 HRP Evaluation
Specific Criteria Assessed

Actual
Actual staffing
staffing levels
levels vs.
vs. staffing
staffing requirements
requirements

Ratio
Ratio of
of internal
internal placement
placement to
to external
external hiring
hiring

Actual
Actual internal
internal mobility
mobility flow
flow vs.
vs. career
career plans
plans
Internal
Internal mobility
mobility flow
flow vs.
vs. turnover
turnover
Employment
Employment equity
equity achievements
achievements vs.
vs. goals
goals
© 2005 Pearson Education Canada Inc., Toronto, Ontario 4-23