LT 2021 IHRM Session2 HRPlanning

3/1/2021
Learning Outcomes
After studying this lesson, the student should be able to:
1. Grasp and describe the importance of human resource planning

(HRP).
Lesson 2: 2. Learn about the factors influencing HRP.
Human Resource Planning 3. Explain the barriers to HRP.
4. Understand the process of HRP.
Tài liệu 1: Chương 3

https://lientran.vn/ 53 https://lientran.vn/ 54
53 54
Content Opening Case
2.1. Definition & the importance of HRP Options in an HR Program
• 1. What strategic steps options should Mr. Patel look at

2.2. The process of HRP
for Inox Refinery?
2.3. Factors influencing HRP
2.4. Barriers to HRP The Current Reality of Human Resource planning
55 56
Inox Refinery 2.1. Definition & the importance of HRP

• Employee demand for new project  HRP involves forecasting the organization's future HR needs
• External Survey and planning for how those needs will be met.
– it is carrying excess manpower in unskilled category,
– while it faces shortage of key technical manpower (instrumentation engineers) due to
resignation and retirement in next two–three years’ time
 To place the right person on the right job at the right time
• Outsource
• Training
 The last few decades have witnessed certain paradigm shifts in
• Union the HRP caused by uncertainty and unprecedented
• Recruitment competitiveness in the business environment, changes in
demographics, and rapid march of technology.
57 58
1
3/1/2021
Complex and unpredictable environment in

21st century 2.1. Definition & the importance of HRP
THE WORLD IN THE FIRST HALF OF 2020
 With a growing strategic role and business partnership

status, the HR planners also have assumed increased
Gián đoạn nguồn VN
cung công
bố
responsibilities and accepted challenges like never before.

dịch
6/3/2020: Vaccine? 28/6/2020:

Số ca nhiễm Suy giảm lực cầu 10 triệu người
100.000, số tử nhiễm
vong 3.400 25/4/2020: Biên Làn
TQ 393 Fed Trump
Gói an 3 triệu người giới sóng Vaccine?
Ca đầu sinh George
tỷ USD Ấn - virus
tiên ở giảm 50 tỷ 62.000 nhiễm Floyd Trung thứ 2
VN LS USD tỷ
Ca đầu
tiên Fed Bắc 9/7/2020:
 HRP concentrates on assessing the HRs, required by an
organization through the different stages of the
người giảm Kinh
31/12/2019: VN
Thị trường LS Thông tư 12 triệu người nhiễm
toàn cầu hỗ trợ DN
Trung Quốc thông báo cho 3/7/2020:
organization’s life cycle and through changes in its
mất 5 nghìn
WHO vế 27 ca viêm phổi ở tỷ USD Vaccine? 11 triệu người
Quốc hội Mỹ
Vũ Hán, đóng cửa chợ hải 2 nghìn tỷ nhiễm
conditions over time.
USD
sản
7/6/2020:
Giá dầu 2/4/2020: 7 triệu người
-37
USD 1 triệu người nhiễm
nhiễm
59 60
Startup Lifecycle & HR Needs 2.1. Definition & the importance of HRP
From Manpower Planning to HRP
 Manpower planning: ‘a strategy for the acquisition, utilization, improvement,
and preservation of an enterprise’s human resources’.
 Criticism of manpower planning:

 A static and mechanical stance, with the sole purpose of striking a perfect balance between
shortage and excess of manpower.
 ‘tedious mathematical process’ as it envisions a utopian world where people issues can be
resolved through a logical and rational bases, without considering the unpredictable
dynamics of market forces, and the external and internal contexts of organizations.
 HRP is the process to determine the way in which the business organization
should progress from its existing manpower position to the ideal position.
61 62
2.1. Definition & the importance of HRP 2.1. Definition & the Importance of HRP
Effective HRP
Benefits of HRP
Structured Prognostic Strategic Flexible
• A well-formulated and • The plan must be • Must be done within • Subject to continuous
•Aligning the strategic planning with the headcount and talent planning.
Talent acquisition: HRP rigorous approach visionary and should the context of market change.
•Surfacing manpower demand and supply issues by costs, reporting relationship, and by location.
facilitates talent acquisition •Providing dashboards for managers on the impact of their hiring decisions and future talent-acquisition leverage both the factors that impact the
by
priorities.
• A visible linkage available data and organization and the • The fact that workforce
•Minimizing employee costs and throwing lights on bottlenecks for employee productivity.
between the desired emerging trends to industry in which it planning occurs in a
workforce capabilities visualize the effects of operates. fluctuating
•HRP also enables us to formulate suitable career plans with back-up relevant for business the internal and environment makes it
Career external forces on the
development strategies, to identify the potential leaders and take success, and the actual • Strategic alignment all the more important
development/succession status of the organization. with the business is so that planning does
them through the charted path of grooming and preparing them for
planning capabilities existing imperative. occur.
future responsibilities.
and the action • A proactive look at
planning for closing country-based,
•With an effective HR plan, an organization can update and the gap. regional, and global
Training draw up suitable learning strategies to develop competencies trends in workforce
demographics, labor
that would give it the competitive edge over its rivals. availability, and skills
gaps.
63 64
2
3/1/2021
2.2. Factors influencing HRP 2.2. Factors influencing HRP

Internal Factors
Economy
• Business strategy: HRP has to align itself to the evolving
business strategies of the organization and cannot remain
stagnant.
Society Technology
External Factors
• Time horizon (short- or long-term needs)
HRP
• Organizational growth cycles
Geographic
Law
conditions
• Quality of information available
Demography
65 66
2.3. The process of HRP 2.3. The process of HRP

7. Generate 1. Environment scan:
1. Environment 6. Create Gap
Strategic
Scanning Analysis The HRP process starts with a stock taking of the business environment, the
Options components of which are economic, technological, political, and social context
of business.
2. Business strategy formulation:
2. Formulation 5. Assess Supply 8. Prepare HR
According to Michael Porter, an organization has to take a clear strategic
of Business of Human Program and
position, understand that position, and then make sure that its activities along
strategy Resources implement
the value chain (sales, marketing, production, HR, and so on) are aimed at
achieving or enhancing that strategy.
3. HR scenario planning:
3. HR Scenario 4. Assess The scenario planning process involves creating stories of a possible scenario to
9. Review
Planning Demand of HRs identify the outcomes, success and disaster possibilities, the gap between the
current and future scenarios, and successful actions and measures of success.
67 68
Scenario Planning Scenario Planning

Identify the building blocks of the marketplace –
these will remain constant
1. Most probably i.e. a slight extension of
current business practice
• Knowing how the fundamentals of the marketplace /
system work is crucial to generating realistic future
Generate 3
scenarios. realistic,
• For instance, you need to understand the nature of the
macro-economic environment and the PESTLE
future 2. Best case –to exploit opportunities.
framework. scenarios
• There will still be Political models of operation and
governance, Economic pressures and opportunities,
Social concerns and trends, Technological developments, 3. Worst Case - is confronted with threats.
Legal challenges and Environmental changes.
69 70
3
3/1/2021

4. Assess the demand: 4. Assess the demand: - Tools
In HRP, the demand arises out of the business plans with targets of
sales, production/throughput, and financials. • Managerial Judgements
– Bottom-up, top-down, participative
The demand assessment goes beyond sheer headcount or numbers. It
• Delphi Technique
sufficiently widens to include the levels of skill, education, and so on. – Top-down method
• Unit Demand Forecasting
The qualitative tool The quantitative tools – The aggregated estimates for all departments constitute the total forecast for the
organization.
• Managerial judgment • Ratio analysis • Replacement Planning/Allocation Planning
– Charting techniques that plot current role holders and critical data about each of
• Delphi technique • Regression analysis them.
• Nominal group technique • Flow models – Judgment about labor supply or demand on the basis of the observation of the
movement of employees across different roles at the same organizational level.
• Unit demand forecasting • Work-study methods
71 72

5. Assess the supply – Internal supply
4. Assess the demand: - Tools
Work-study techniques:
• Inventory by skill types: This inventory is simply a
• where the workload can be accurately measured comprehensive record of the names, critical personal
• The starting point could be the production budget, drawn from the sales plan. Then finally, information, attributes, and skills/competencies/capabilities of
the number of manpower is calculated based on the number of hours required to yield the the current employees.
planned output.
Flow model: Markov Model • Inventory by total numbers: An approximate figure in mind
• The HR demand forecast on analyses of different kinds of movement of employees over
specific time periods in the past. for any particular kind of work in future for such complex
• The steps followed in this model are as follows: jobs like administration or operations.
– Decide on the target time span.
– Establish employee categories known as states.
– Count the annual movements, called flows, between states for several time periods. These states
could include gains (recruitment or transfer) or losses (death) or changes in position levels or
• Inventory by business unit
employment status.
– Forecast the probability of movement from one state to another based on past trends.
73 74

5. Assess the supply – External supply 6. Gap analysis
• Compare the current state and the ideal state to find out
necessary change in HRM
Professional • Headcount gap

State of the Demographic
market • Culture gap
economy factors
conditions
• Structure gap
75 76
4
3/1/2021
2.3. The process of HRP 2.4. Barriers to HRP

7. Strategic options
Current HR Ideal HR
 Time frame
 Data integrity
 Control
Greater than Equal to Smaller than
 Detail
• Increase demand • Rarely occurs • Increase external  Poor forecasting methods
• Reduce supply supply  Two recent trends serve to moderate: data-driven decision-
• Reduce employee • Reduce demand making; advances in predictive analytics and modeling
retention • Increase employee technology
retention  Move workforce planning from a ‘nice-to-have’ status to a critical
program for high-performance organizations.
77 78
Conclusion MIG Batteries Ltd

• HRP is to link HRM with the overall strategy in an • Dilemmas of HR Planning in a Business Life Cycle Stage
uncertain environment • MIG Batteries Inc
• What would be the desired workmen profile?

• HRP must be structured, prognostic, strategic and •
flexible Would the workmen be sourced internally or externally?
• What options does MIG have to deal with the workmen of plant A, once plant B
goes full throttle on targeted productivity?
• HRP faces with barriers
• What HR program should it decide and why?
79 80
MIG Batteries Ltd Tata Consultancy Services

set up a new battery plant B in Kolkata
•
• it enjoyed monopoly in the AA- and AAA-size battery market and enjoyed tremendous • TCS Story
goodwill due to sustained quality.
• the entry of Japanese products

• MIG started losing chunks of its market
• The new battery plant was planned at a location in South Kolkata. The company planned to
adapt the latest technology with imported machines
• The challenges were as follows: The productivity had to be sustained at a high level and the
core workforce had to be high skilled and quick to adapt to evolving technology
• 1. Discuss how TCS aligns HRP to business strategy
• plant A production could be cut down to one-third of the current level
• New plan: 300 workers – Old plan: 1,900 workers

81 82
5
3/1/2021
Tata Consultancy Services

• Tata Consultancy Services (TCS), the country’s largest provider of IT services,
has over 300,000 people on its rolls and plans to add another 55,000 in the
current financial year
• these men and women represent 118 nationalities and are located in 50
countries.
• The challenge is to strike a balance between the need for a charged-up
workforce and profits.
• to keep employee costs under control is to hire fresh graduates from campuses
in large
numbers.
• At TCS, according to Mukherjee, manpower planning is done at least three years
in advance. The projections get refined for each year.
• to meet the aspirations of the young employees (those born in the 1980s and
early 1990s): Knome, TCS’s internal online social network
83 84

LT 2021 IHRM Session2 HRPlanning

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

LT 2021 IHRM Session2 HRPlanning

Uploaded by

Copyright:

Available Formats

3/1/2021

1. Grasp and describe the importance of human resource planning

Lesson 2: 2. Learn about the factors influencing HRP.

Human Resource Planning 3. Explain the barriers to HRP.

4. Understand the process of HRP.

Tài liệu 1: Chương 3

Content Opening Case

2.1. Definition & the importance of HRP Options in an HR Program

• 1. What strategic steps options should Mr. Patel look at

2.3. Factors influencing HRP

2.4. Barriers to HRP The Current Reality of Human Resource planning

Inox Refinery 2.1. Definition & the importance of HRP

Complex and unpredictable environment in

 With a growing strategic role and business partnership

responsibilities and accepted challenges like never before.

6/3/2020: Vaccine? 28/6/2020:

 Criticism of manpower planning:

2.2. Factors influencing HRP 2.2. Factors influencing HRP

2.3. The process of HRP 2.3. The process of HRP

Scenario Planning Scenario Planning

2.3. The process of HRP 2.3. The process of HRP

2.3. The process of HRP 2.3. The process of HRP

2.3. The process of HRP 2.3. The process of HRP

Professional • Headcount gap

2.3. The process of HRP 2.4. Barriers to HRP

Conclusion MIG Batteries Ltd

uncertain environment • MIG Batteries Inc

• What would be the desired workmen profile?

MIG Batteries Ltd Tata Consultancy Services

• the entry of Japanese products

• New plan: 300 workers – Old plan: 1,900 workers

Tata Consultancy Services

You might also like