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-term—less than one year
– Intermediate—up to five years
– Long-range—more 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 (cont’d)
• Organizational Capabilities Inventory
– HRIS databases—sources 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 (cont’d)
• 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