Human resource planning

HR planning

Planning is all about;

“Knowing where you are going and how you are going to get
there.”

Human Resource Planning is

“the process of determining an organization’s human resource

needs”.
 HR planning
Human resource planning is a process by which an
organization ensures that

– it has the right number and kinds of people

– at the right place

– at the right time

– capable of effectively and efficiently completing those

tasks that will help the organization achieve its overall
strategic objectives
HR planning must be

• Linked to the organization’s overall strategy to

compete domestically and globally

• Translated into the number and types of workers

needed

Senior HRM staff need to lead top

management in planning for HRM issues.
 An Organizational Framework
Mission statement

“A brief statement of the reason an organization is in business”

A mission statement defines what business the organization is in, including

– why it exists?
– who its customers are?

After developing mission statement,

– strategic goals are set by senior management and then define objectives for the
company. It also includes identifying the scope of its products or services.

Goals are generally defined for the next 5-20 years.

Linking Organizational Strategy to HR Planning

As the goals are set, the next step in the strategic planning
process begins i.e. the corporate assessment.

During a corporate assessment,

– SWOT (Strengths-Weaknesses-Opportunities-Threats) analysis

determines what is needed to meet objectives

– strengths and weaknesses and core competencies are identified

HRM determines what knowledge, skills, and abilities are

needed by the organization’s human resources through a job
analysis.
• Strengths
An organization’s best attributes and abilities.

• Weaknesses
Resources an organization lacks or activities it does poorly.

• Opportunities and threats

Agents, factors, or forces in an organization's external environment that are out of
its control, and can directly or indirectly affect is chances of success or failure.

• Opportunities
Elements that the project could exploit to its advantage

• Threats
Elements in the environment that could cause trouble for the business or project
 Linking Organizational Strategy to HR Planning
s
STRATEGIC DIRECTION HR LINKAGE

mission determining organization’s

business

setting goals and objectives

objectives and goals

strategy determining how to attain

goals and objectives

determining what jobs need to be

structure
done and by whom

matching skills, knowledge, and

people abilities to required jobs
 Linking Organizational Strategy to HR Planning

To ensure that appropriate personnel are available to meet the

requirements set during the strategic planning process, human

resource managers engage in employment planning.

The purpose of this planning effort is to determine what HRM

requirements exist for current and future supplies and demands

for workers.
 1) Assessing current human resources
• Begins by developing a profile of the organization’s current
employees.
• This internal analysis includes information about the workers and
the skills they currently possess.
• Generating effective and detailed HR inventory report.

• The input to this report would be derived from forms completed by

employees and checked by supervisors.
• Such reports include a complete list of all employees by name,
education, training, prior employment, current position, performance
ratings, salary level, languages spoken, capabilities and specialized
skills.
• This input is valuable in determining what skills are currently

available in the organization.

• Inventory serves as a guide for supporting new organizational

pursuits or in altering the strategic direction.

• This report also has value in other HRM activities such as

selecting individuals for T&D, promotion and transfers.

• HRM must also find ways to ensure that employees are

retained, frequently called employee retention.

HUMAN RESOURCE INFORMATION SYSTEMS (HRIS)

“A computerized system that assists in the processing of HRM

information.”

• Implemented by the organizations to help the HR inventory.

• Also called human resource management system (HRMS).

• Designed to quickly fulfill the HR management information needs of the

organization.

• It’s a database system that’s keeps important information about employees

in a central and accessible location– even information on the global

workforce.
• Data can be retrieved and used to facilitate employment planning
decisions.
• Organizations can track most information about employees and jobs.
• This information can help an organization gain a competitive advantage.
• HRIS are now more user friendly.
• HR information systems (HRIS)

 process employee information

 quickly generate analyses and reports

 provide compensation/benefits support

 Succession planning

“Identification and development of potential successors for key positions in

an organization, through a systematic evaluation process and training.”

Succession planning includes the development of “Replacement Charts”. These are

the HRM organizational charts that

• portray middle- to upper-level management positions that may become

vacant in the near future
• list information about individuals who might qualify to fill the
positions/vacancies.
• Positions may become vacant due to retirements, promotions, transfers,
resignations or death of the incumbent.
• Employee morale is increased by 25%.
• Replacement charts looks similar to traditional organizational charts.
• Those individuals targeted for replacement are listed beneath with the
expected time in which they will be prepared to take on the needed
responsibility.
 2) Determining the demand for labor

• A year by year analysis for every significant job level and type.
• The result is a human resource inventory covering specified years into the
future.
• Organizations usually require a diverse mix of people.
• Employees are not perfectly substitutable for one another within an
organization.
• Accurate estimates of future demands in both qualitative and quantitative
terms require more information than to determine for example “we need 25
new employees”.
• It is necessary to know what types of employees in terms of skills,
knowledge, and abilities are required.
 3) Predicting the future labor supply
Forecasting of supply must also concern itself with the micro or unit level.

HR predicts the future labor supply.

– An increase in the supply of any unit’s human resources can come from a
combination of four sources:
• new hires
• contingent workers
• transfers-in
• individuals returning from leaves

– predicting these can range from simple to complex

– transfers are more difficult to predict since they depend on actions in other units
Decreases in internal supply come about through:

 retirements easiest to forecast

 dismissals possible to forecast

 transfers possible to forecast

 layoffs possible to forecast

 sabbaticals possible to forecast

 voluntary quits difficult to forecast

 prolonged illnesses difficult to forecast

 deaths hardest to forecast

 Where will we find workers?
The factors outside the organization that influence the supply of available
human resources.

-- students seeking work to pay for their education or support themselves

while in school
-- job seekers who have been recently laid off
– migration into a community
– recent graduates from schools and colleges
– individuals returning from military service
– increases in the number of unemployed and employed individuals
seeking other opportunities, either part-time or full-time

The potential labor supply can be expanded by formal

or on-the-job training.
 Matching labor demand and supply

– Compares forecasts for demand and supply of workers

– Monitors current and future shortages,

– Highlight areas where overstaffing may exist

– Sometimes, strategic goals must change as a result

– Uses downsizing to reduce supply and balance demand

– Decruitment also takes place when there is oversupply

 Employment planning and the strategic planning
process

Employment Planning and the Strategic Planning Process

demand for labor Outcomes

demand exceeds recruitment

assess current supply
define establish human resources compare demand
organization corporate goals -- - - - - - - - - - - - - for and supply of
mission and objectives HRMS: human resources
job analysis supply exceeds
demand decruitment

supply of
human resources