Transcript of "Chapter 2 strategic human resource planning"
Chapter 2 Strategic Human Resource Planning
Human Resource Planning (HRP) - is the process of systematically reviewing human resource requirements to ensure that the number of the employees matches the required skills.
Strategic Planning <ul><li>Is the determination of the overall organizational purpose and goals and how they are to be achieved. </li></ul>
<ul><li>2 important components of human resource planning: </li></ul><ul><li>Requirement - forecasting human requirement involves the determining the number and types of employees needed. </li></ul><ul><li>b. Availability- when employee requirements have been analyzed, the firm determines whether there is a surplus or shortage of manpower. </li></ul>
Aspects of human resource planning: <ul><li>1. Systematic forecasting of manpower needs </li></ul><ul><li>on the basis of business condition and forecasts, manpower needs are planned and monitored closely. </li></ul>
Aspects of human resource planning: <ul><li>2. Performance managemen t </li></ul><ul><li>analyzing, improving and monitoring the performance of each employee and of the organization as a whole. </li></ul>
Aspects of human resource planning: <ul><li>3. Career management </li></ul><ul><li>determining, planning and monitoring the career aspirations of each individual in the organization and developing them for improve productivity. </li></ul>
Aspects of human resource planning: <ul><li>4. Management Development </li></ul><ul><li>- assessing and determining the developmental needs of managers for future succession requirements. </li></ul>
5 steps to human resource planning: <ul><li>1. Determining the workload inputs base on the corporate goals and objectives. </li></ul><ul><li>2. Studying the jobs in the company and writing the job description and job specifications. </li></ul><ul><li>3. Forecasting of manpower needs. </li></ul><ul><li>4. Inventory of manpower. </li></ul><ul><li>5. Improvement plans. </li></ul>
4 basic terms of manpower: <ul><li>Long term trend- is usually done for a period of five years or more depending on the company operations and customer demands. </li></ul><ul><li>Cyclical variations- refers to reasonable and predictable movements that occur over a period of one year or more. </li></ul><ul><li>Seasonal variations- this is a reasonable prediction change over a period of one year. </li></ul><ul><li>Random variations- this is one occasion where there is no special pattern and is quite difficult to predict or determine. </li></ul>
The important elements in strategic human resource planning: <ul><li>1. Organizational goals - the human resource planning process should be tied up with the organizational strategic goals. </li></ul><ul><li>2. Human resource forecast - process is the forecasting of human resource needs based on the business strategies, production plans, and the various indicators of change in technology and the organization’s operating methods. </li></ul><ul><li>3. Employee information - process is maintaining accurate information concerning the composition, assignments, and the capabilities of the current workforce. </li></ul><ul><li>4. Human resource availability projections - process is estimating the number of current employees and those that could be available in the future. </li></ul><ul><li>5. Analyzing and evaluating human resource gaps - process is comparing what is needed when what is available in terms of numbers, mix, skills, and technologies. </li></ul>
Human resource role in providing competitive advantage <ul><li>a. Emergent strategies - consist of strategies that evolve from the grassroots of the organization and can be thought of as what the organization actually do. </li></ul><ul><li>b. Intended strategies- are the results of the rational decision making by top management as they develop strategic plans. It is a pattern of plans that integrates an organization’s major goals, policies, and action sequences into a cohesive whole. </li></ul>
Human resource information system(HRIS) <ul><li>HRIS is any organized approach to obtaining relevant </li></ul><ul><li>and timely information in which to base human </li></ul><ul><li>resource decision. An effective HRIS is crucial to </li></ul><ul><li>sound human resource decision making. It is designed </li></ul><ul><li>to provide information that is- SMART </li></ul>
<ul><li>a. Systematic - information must be systematically arranged and contain the needed data. </li></ul><ul><li>b. Management oriented - the data and information are essential tools for effective manpower planning, retention, development and separation of employees. </li></ul><ul><li>c. Applicable - the data and information stored in file must be applicable in meeting human resource decision. A relevant data must be discarded. </li></ul>
<ul><li>d. Result- oriented - the results from the information and the decisions derived thereat must be acceptable to management and the employees concern. </li></ul><ul><li>e. Time bound - relevant resource information are necessary for effective decision making. The need for timely decisions are crucial to the effective management of human resources. </li></ul>
An effective HRIS also produces and forecasts several important reports related to business operations <ul><li>a. Routine reports - these are human resource data summarized on schedule basis like current manpower status, regular employees, contractual employees, supervisor and managerial employees on a regular payroll. </li></ul><ul><li>b. Exception report - this information may contain confidential data that are available only for managerial decision making and needs immediate attention. </li></ul>
<ul><li>c. On demand reports - this may pertain to productivity index, individual performance record, and other information that may lead to downsizing and other personal action. </li></ul><ul><li>d. Manpower forecasts - applies to predictive models based on specific situation. This may cover increase or decrease to manpower requirements due to seasonal demands or increase in customer orders. </li></ul>
Software applications for HRM <ul><li>1. Staffing applications - common applications used in the area of staffing include the following: </li></ul><ul><li>a. applicant recruiting and tracking </li></ul><ul><li>b. DOLE reporting requirements </li></ul><ul><li>c. developing a master employee data base </li></ul><ul><li>d. staffing application for decision making </li></ul>
<ul><li>2. Human resource planning - includes the following applications: </li></ul><ul><li>a. work-force profile analysis - work-force labor supply and demand analysis or work force profile analysis review. </li></ul><ul><li>b. work-force dynamic analysis - number of new hires, transfers and promotions, number still needed in the future and those employees who are available to fill up job openings in the future. </li></ul>
<ul><li>c. Human resource planning for decision making - this application pertains to information about employees who are about to retire, job classification of employees for promotions and those departments that lack basic skills for the job. </li></ul><ul><li>d. Performance management application - employee performance ratings, disciplinary actions, work rule violations and the daily productivity index could now be stored in computer data base as bases for management decisions. </li></ul>
<ul><li>e. Training and development applications - these are used primarily to track down the need for employees training programs, courses to attend, certified skills, and educational qualifications. </li></ul><ul><li>f. Compensation and benefits applications - this include payroll, job evaluation, salary survey, salary planning and analysis, executive compensation planning and management benefits. </li></ul>
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