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
2. It works best when it is tied to: a. the organization’s strategic planning process b. all available forecasts (technological, economic, market, etc.) III. How do you do it? 1. It is a process of comparing human resource supply with human resource demand . A. General Comments:
3. When there are variances, action plans must be formulated, e.g., a. for surpluses , will organization use layoffs, retirement incentives, reduced hours, or something else? b. for shortages , will organization use overtime, temporary workers, or recruit new permanent workers? III. How do you do it? A. General Comments:
1. Approaches to forecasting: a. Qualitative: III. How do you do it? B. Methods Used for Human Resource Planning: i. Expert opinions ii. Delphi technique iii. “Bottom-up” approach b. Quantitative (mathematical modeling): i. Regression analysis / Trend analysis ii. Markov analysis
2. Supply Analysis a. Skills inventories III. How do you do it? B. Methods Used for Human Resource Planning: i. Card systems ii. Human Resource Information Systems (HRIS) b. Replacement charts / Succession plans
IV. Does anybody really do this stuff? A. Nkomo (1987) survey of Fortune 500 organizations Implementation of Human Resource Planning (N = 264 responses)
46% reported no formal HR planning
39% reported some (incomplete) HR planning
15% reported fully integrated HR planning
IV. Does anybody really do this stuff? B. HRP techniques actually used: Implementation of 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, HRP is the process of analyzing an organization’s human resource needs and developing plans, policies, and systems to satisfy those needs
Ensure HRP programs are coordinated and allows the organization to meet its human resource requirements.
Example of the Basic Human Resource Planning Model 1 2 3 4 3 5 Open new product line Open new factory and distribution system
Develop staffing for new installation
Recruiting and training programs feasible Transfers infeasible because of lack of managers with right skills Recruit skilled workers Develop technical training programs Transfer managers from other facilities Develop new objectives and plans Recruit managers from outside Too costly to hire from outside
Requires knowledge of programs, how programs fit together and external environmental constraints (e.g., labor force, labor unions, technology created skill shortages) and internal environmental constraints (skill shortages within the organization, financial resources, managerial attitudes, culture)
Do the benefits outweigh the costs
Difficulty in quantifying costs and benefits
Revise Organizational Objectives and Strategies Link 5
“ If no feasible HR program can be devised, the organization must revise strategic plans.”
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.
Without forecasting cannot assess the disparity between supply and demand nor how effective an HR program is in reducing the disparity.
Forecasting as a Part of Human Resource Planning DEMAND FORECASTING SUPPLY FORECASTING Determine organizational objectives Demand forecast for each objective Aggregate demand forecast Does aggregate supply meet aggregate demand? Go to feasibility analysis steps Choose human resource programs