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HUMAN RESOURCE PLANNING

Human Resource Planning -- Outline

I. What is it?
II. Why is it important?
III. How is it done?
IV. Is it really done?

I. What is it?

Human resource planning involves getting
the right number of qualified people into the
right jobs at the right time.

II. Why is it important?

A. often long lag times to fill positions
B. often influences both turnover and
productivity
C. the “demographic imperative”
demands more such planning

III. How do you do it?
A. General Comments:
1. It is a process of comparing human

resource supply with human
resource demand.
2. It works best when it is tied to:
a. the organization’s strategic planning
process
b. all available forecasts (technological,
economic, market, etc.)

General Comments: 3.g.III. for surpluses. action plans must be formulated. will organization use overtime. a.. or something else? b. or recruit new permanent workers? . will organization use layoffs. temporary workers. retirement incentives. How do you do it? A. for shortages. When there are variances. e. reduced hours.

Markov analysis . Delphi technique iii. Quantitative (mathematical modeling): i. Approaches to forecasting: a. Methods Used for Human Resource Planning: 1. “Bottom-up” approach b. Qualitative: i. How do you do it? B. Expert opinions ii. Regression analysis / Trend analysis ii.III.

III. Human Resource Information Systems (HRIS) b. Supply Analysis a. Card systems ii. How do you do it? B. Methods Used for Human Resource Planning: 2. Replacement charts / Succession plans . Skills inventories i.

IV. Does anybody really do this stuff? Implementation of Human Resource Planning A. Nkomo (1987) survey of Fortune 500 organizations (N = 264 responses) • 46% reported no formal HR planning • 39% reported some (incomplete) HR planning • 15% reported fully integrated HR planning .

HRP techniques actually used: • Replacement charts 84% • Skills inventories 51% • Computer simulation 10% • Time series analysis 5% • Markov analysis 4% • Delphi technique 3.IV.5% . Does anybody really do this stuff? Implementation of Human Resource Planning B.

HUMAN RESOURCE PLANNING • Right number of people with right skills at right place at right time to implement organizational strategies in order to achieve organizational objectives • In light of the organization’s objectives. corporate and business level strategies. policies. and systems to satisfy those needs . HRP is the process of analyzing an organization’s human resource needs and developing plans.

HUMAN RESOURCE PLANNING • Setting human resource objectives and deciding how to meet them • Ensuring HR resource supply meets human resource demands .

HRP Process • Interfacing with strategic planning and scanning the environment • Taking an inventory of the company’s current human resources • Forecasting demand for human resources • Forecasting the supply of HR from within the organization and in the external labor market .

HRP Process Cont. . • Comparing forecasts of demand and supply • Planning the actions needed to deal with anticipated shortage or overages • Feeding back such information into the strategic planning process.

Example of the Basic Human Resources Planning Model 1 2 Human Resource 3 Organizational Human Resource Feasibility Objectives Requirements Programs Analysis 4 5 .

HRP Model • Strategic Human Resource Planning  Links 1 & 5: HR objectives are linked to organizational objectives and planning • Designed to insure consistency between organization's strategic planning process and HRP.  So objectives of strategic plan are feasible and  HR programs are designed around what organizational objectives and strategies require in terms of human resource goals .

Example of the Basic Human Resources Planning Model Organizational 1 Human Resource 2 Human Resource 3 Feasibility Objectives Requirements Programs Analysis 4 5 .

. & 4 • Ensure HRP programs are coordinated and allows the organization to meet its human resource requirements.3. • Operational Human Resource Planning Steps 2. HRP Model Cont.

Example of the Basic Human Resource Planning Model Open new Develop staffing Recruit skilled Recruiting and product line for new workers training 1 installation 2 3 programs Open new Develop technical feasible •Production training programs factory and workers Transfers distribution Transfer infeasible system •Supervisors managers from because of •Technical staff other facilities lack of managers with •Other managers 4 right skills Develop new Recruit Too costly to 3 objectives managers from hire from and plans 5 outside outside .

Machine breakdowns assigned to maintenance department or handled by machine operators . organizational design or staffing jobs) • Example . • Involves forecasting HR needs based on organizational objectives • Involves consideration of alternative ways of organizing jobs (job design. Link 1: Determine Demand (labor requirements) • How many people need to be working and in what jobs to implement organizational strategies and attain organizational objectives.Peak production could be handled by temporary workers or assigning overtime.

Link 2: Determine HR Supply (availability) • Choose HRM programs (supply) • Involves forecasting or predicting effect of various HR programs on employee flowing into. • First determine how well existing programs are doing then forecast what additional programs or combination of programs will do • Need to know capabilities of various programs and program combinations . through and out various job classifications.

. technology created skill shortages) and internal environmental constraints (skill shortages within the organization. Determine Feasibility Links 3&4 • Capable of being done  Requires knowledge of programs. labor unions. labor force. financial resources. culture) • Do the benefits outweigh the costs  Difficulty in quantifying costs and benefits . managerial attitudes. how programs fit together and external environmental constraints (e.g.

the organization must revise strategic plans. Revise Organizational Objectives and Strategies Link 5 “If no feasible HR program can be devised.” .

HRP in Practice • Oversimplification of planning process -Planning does not normally proceeds till find first acceptable plan  More than one set of HR goals to satisfy link 1 and more that one acceptable plan to satisfy link 2 so:  Typically choose the best HR goal for the strategic plan and the best program to satisfy that HR goal .Shortcomings of the model .

Shortcomings of the model .HRP in Practice • Oversimplification of the benefit of planning is the specific plans that result  Planning process has value in and of itself • HRP in practice is usually less rational and may omit one or more of the steps  May lack knowledge required for forecasting  Incorrect assumptions about effectiveness of HR programs  Does not engage in strategic planning  Resistance to change present HR systems .

done in advance • Strategic . HRP should be: • Done to guide and coordinate all HR activities so they work together to support the overall strategy • Responsive to internal and external environment • Planning .linked with higher level planning .

• Without forecasting cannot assess the disparity between supply and demand nor how effective an HR program is in reducing the disparity. . Human Resource Forecasting • Process of projecting the organization’s future HR needs (demand) and how it will meet those needs (supply) under a given set of assumptions about the organization’s policies and the environmental conditions in which it operates.

Forecasting as a Part of Human Resource Planning Choose human resource SUPPLY FORECASTING DEMAND FORECASTING programs Determine Internal programs External programs organizational objectives •Promotion •Recruiting •Transfer •External selection •Career planning •Executive exchange •Training Demand forecast •Turnover control for each objective Aggregate Internal supply forecast External supply forecast demand forecast Does aggregate supply meet Aggregate supply aggregate forecast demand? No Yes Go to feasibility analysis steps .

transfer and turnover .. Internal Supply Forecasting Information • Organizational features (e. staffing capabilities) • Productivity . demotion. productivity changes • Rates of promotion.g.rates of productivity.

recruiting. compensation) . External Supply Forecasting Information • External labor market factors (retirements. mobility. unemployment) • Controllable company factors on external factors (entry-level openings. education.

Demand Forecasting Information • Organizational and unit strategic plans • Size of organization • Staff and Managerial Support • Organizational design .

Considerations in Establishing a Forecasting System • How sophisticated • Appropriate time frame • Subjective versus objective forecasting methods .

System Sophistication • Organizational size  large organizations require more complex forecasting systems and likely to have the required skilled staff • Organizational complexity  complex career paths and diverse skill requirements lead to more complex forecasting systems • Organizational objectives  the greater the gap between current HR situation and desired HR situation the more sophisticated the system • Organizational plans and strategies  the complex the plans are the more complex the forecasting system .

changes in technology. . slowly developing technology. political and economic climate. Forecasting Time Frame Depends on degree of environmental uncertainty Factors creating uncertainty (shortening time frame)  many new competitors. unstable product demand Factors promoting stability (longer time frame)  strong competitive position. stable product demand. changes in social.

Subjective VS. Objective Forecasting Objective is inappropriate when: Lack expertise to use objective methods Lack the historical data or HR data base is inadequate Forecasting horizon is too long for the available objective method .

Demand Forecasting Methods • Delphi Method • Staffing Table Approach • Regression Analysis • Time Series Analysis • Linear Programming .

Supply Forecasting Methods • Skills Inventory • Replacement Charts • Succession Planning • Flow Modeling/Markov Analysis • Computer Simulations .

Training and Developing a Competitive Workforce .

The Strategic Importance of Training and Development • Develop competencies that match strategy • Foster cohesiveness and commitment Training • Improve recruitment and and retention • Improve competitiveness Development • Increase legal compliance and protection • Smoother mergers and acquisitions .

The Strategic Importance of Training and Development • Improving Recruitment and Retention  Career advancement opportunities  Job training • Improving Competitiveness  Increasing productivity  Improving service  Implementing new technology • Training for Customers .

. • Knowledge management technologies Ensure that knowledge from employees. Chief Learning/Knowledge Officer coordinates activities. remembered. stored and shared through intranets. and units is captured. Learning Organizations and Knowledge Management • Learning is recognized as a source of competitive advantage. teams.

and attitudes required of a competitive workforce. Training and Development Practices Within the Integrated HRM System • Training and Development (T&D) Intentional efforts to improve current and future performance by helping employees acquire the skills. . knowledge.

T&D: Key Terms • Training Improving employee competencies needed today or very soon Typical objective is to improve employee performance in a specific job. . • Development Improving employee competencies over a longer period of time Typical objective is to prepare employees for future roles.

Intense socialization increases employees’ commitment to the success of the company. culture and management practices. Key Terms (cont’d) • Socialization Learning how things are done in the organization Objective is to teach new employees about the organization’s history. .

Components of Training and Development within an Integrated HRM System .

Evaluating Training and Development Effectiveness .

The HR Triad: Roles and Responsibilities in Training and Development .

Four Components of Needs Assessment .

Setting Up a Training and Development System • Creating the Right Conditions: Insight Motivation New skills and knowledge Real world practice Accountability .

social awareness. Training for Affective Outcomes • Objective Is to Change: Motivation Attitudes Values • Example of Objectives Build team spirit Enhance self-confidence Build emotional intelligence (self-awareness. relationship management) . self-management.

but Not On the Job Training • Programmed instruction on intranet or internet • Videos and CDs Interactive video training: Combines programmed instruction with video • Teleconferencing • Corporate Universities and executive education . On-Site.

Off the Job Training • Formal courses • Simulation Vestibule method: simulates actual job • Assessment centers • Role-playing • Business board games • Sensitivity training • Wilderness trips and outdoor training .

Setting the Stage for Learning • Clear Instructions • Behavioral Modeling .

Team Training and Development • Training to develop team cohesiveness • Training in team procedures • Training to develop work team leaders Supporting disagreement Managing meetings .

Cross-Cultural Training • To prepare people from several cultures to work together Diversity training • To prepare a person for living in another culture Training for expatriates and families .

traditions Culture-general assimilator uses scenarios to teach understanding of cultural differences • Training for Inpatriates Employees from other countries sent to work abroad Need info about culture and help with relocation . Cross-Cultural Training in International Context • Training for Expatriates Typically a 3-5 day immersion course in country’s values. customs.

Global Leadership Training and Development • Managers need to manage operations in several countries at once • Training and development may include: Expatriate assignments Action learning projects Cross-cultural team assignments Classroom training .