PGP 2007-09

Understanding the meaning and importance of HRP y Linking fit between strategy and Organizational Objectives y Strategic flexibility in HRP planning y Understanding the Issues in HRP y To study the objectives of HRP y Knowing to design the Hrp Model y To know the techniques of demand and supply forecasting y Designing the HR plan after formulating HRP
PGP 2007-09

said the human resource management vice president.What do you mean. we re going to lose the government contract? asked the company president. PGP 2007-09 . We have to furnish records to show that we have enough employees with the right technical specifications who meet the government s equal employment opportunity goals. we re going to lose it. Ted Sloane. Anne Wilson. we don t have trained personnel to meet the contract specifications.

Now he wanted to learn more about HRIS s.I don t have those kinds of records available at a moment s notice. You know I asked you to let me set up a human resource information system (HRIS). Why didn t we get around it? Ted didn t know what Anne had in mind. PGP 2007-09 . Everything he ever heard about computer systems suggested that they were expensive and complex.

minorities and the disabled. providing more employment opportunities for women. and out of an organization . Its purpose is to deploy these resources as effectively as possible. where and when they are needed. and mapping out employee training programmes PGP 2007-09 . within. include anticipating labour shortages and surpluses.Human resource planning is the process of anticipating and making provision for the movement of people into.

Has its basis in considerations of future HR requirements in light of present HR capabilities and capacities.y y y y y Is the first component of HRM strategy All other functional HR activities are derived from and flow out of the HRP process. Is proactive in anticipating and preparing flexible responses to changing HR requirements. Has both an internal and external focus. PGP 2007-09 .

Factors That Determine HR Plans PGP 2007-09 2 7 .

y Strategic Analysis ‚ What human resources are needed and what are available? y Strategic Formulation ‚ What is required and necessary in support of human resources? y Strategic Implementation ‚ How will the human resources be acquired and allocated? Human Resource Planning Strategic Planning PGP 2007-09 .

Preventing understaffing and overstaffing y Ensure the organisation has the right employees with the right skills at the right place at the right time y Ensure the organisation is responsive to changes in its environment y Provide direction and coherence to all HR activities and systems y PGP 2007-09 .

. PGP 2007-09 2 10 .

HR Strategies ‚ The means used to anticipate and manage the supply of and demand for human resources. Overall Strategic Plan Human Resources Strategic Plan HR Activities PGP 2007-09 . Provide overall direction for the way in which HR activities will be developed and managed.

More timely recruitment for anticipate HR needs More inclusion of protected groups through planned increases in workforce diversity. Better development of managerial talent y y y y . PGP 2007-09 .y Better view of the HR dimensions of business decisions Lower HR costs through better HR management.

usually lower level jobs and the general skills employees will need to ensure sustained high performance. y Succession Planning ‚ Focuses on ensuring that key individual management positions in the organization remain filled with individuals who provide the best fit for these critical positions.Aggregate Planning ‚ Anticipating the needs for groups of employees in specific. y PGP 2007-09 .

y Environmental Scanning ‚ The systematic monitoring of the major external forces influencing the organization. ‚ Economic factors ‚ Competitive trends ‚ Technological changes ‚ Political and legislative issues ‚ Social concerns ‚ Demographic trends PGP 2007-09 .

PGP 2007-09 .Auditing Jobs and Skills ‚ What jobs exist now? ‚ How many individuals are performing each job? ‚ How essential is each job? ‚ What jobs will be needed to implement future organizational strategies? ‚ What are the characteristics of anticipated jobs? .

and abilities (KSAs) ‚ Components of an organizational capabilities inventory ‚ Workforce and individual demographics ‚ Individual employee career progression ‚ Individual job performance data .Organizational Capabilities Inventory ‚ HRIS databases sources of information about employees knowledge. skills. PGP 2007-09 .

FORECASTING DEMAND Internal Considerations Techniques ‡ Technology ‡ Trend analysis ‡ Financial resources ‡ Managerial ‡ Organizational growth estimates ‡ Mgmt. philosophy ‡ Delphi technique BALANCING SUPPLY AND DEMAND (Shortage) Recruitment FullFull-time / Part-time Part- Techniques ‡ HR inventories ‡ Markov analysis ‡ Skill inventories ‡ Replacement charts ‡ Succession Planning External Considerations ‡ Wkforce changes ‡ Mobility ‡ Govt policies ‡ Unemployment (Surplus) Reductions ‡ Layoffs ‡ Terminations ‡ Demotions ‡ Retirements FORECASTING SUPPLY PGP 2007-09 .

Forecasting ‚ The use of information from the past and present to identify expected future conditions. top-down or bottom-up ‚ Rules of thumb using general guidelines ‚ Delphi technique asking a group of experts ‚ Nominal groups reaching a group consensus in open discussion y . y Forecasting Methods ‚ Judgmental ‚ Estimates asking managers opinions. PGP 2007-09 .

Forecasting Methods (cont d) ‚ Mathematical ‚ Statistical regression analysis how the dependent variable reacts to an independent variable. ‚ Productivity ratios units produced per employee ‚ Staffing ratios estimates of indirect labor needs Forecasting Periods ‚ Short-term less than one year ‚ Intermediate up to five years ‚ Long-range more than five years PGP 2007-09 .

Forecasting the Demand for Human Resources ‚ Organization-wide estimate for total demand ‚ Unit breakdown for specific skill needs by number and type of employee ‚ Develop decision rules ( fill rates ) for positions to be filled internally and externally. Forecasting the Supply for Human Resources ‚ External Supply ‚ Internal Supply PGP 2007-09 . ‚ Develop additional decision rules for positions impacted by the chain effects of internal promotions and transfers.

y Forecasting External HR Supply ‚ Factors affecting external ‚ 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 factors affecting the workforce 2 21 PGP 2007-09 .

y Forecasting Internal HR Supply ‚ Effects of promotions. and terminations ‚ Succession analysis ‚ Replacement charts ‚ Transition matrix (Markov matrix) . PGP 2007-09 . lateral moves.

PGP 2007-09 ..