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    Chp5.hrp Chp5.hrp Presentation Transcript

    • 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
    • HUMAN RESOURCE PLANNING
      • Setting human resource objectives and deciding how to meet them
      • Ensuring HR resource supply meets human resource demands
    • HRP Process
      • Interfacing with strategic planning and scanning the environment
      • Taking an inventory of the company’s current human resources
      • Forecasting demand for human resources
      • Forecasting the supply of HR from within the organization and in the external labor market
    • HRP Process Cont.
      • Comparing forecasts of demand and supply
      • Planning the actions needed to deal with anticipated shortage or overages
      • Feeding back such information into the strategic planning process.
    • Example of the Basic Human Resources Planning Model Organizational Objectives Human Resource Requirements Human Resource Programs Feasibility Analysis 1 2 3 4 5
    • HRP Model
      • Strategic Human Resource Planning
        • Links 1 & 5: HR objectives are linked to organizational objectives and planning
      • Designed to insure consistency between organization's strategic planning process and HRP.
        • So objectives of strategic plan are feasible and
        • HR programs are designed around what organizational objectives and strategies require in terms of human resource goals
    • Example of the Basic Human Resources Planning Model Organizational Objectives Human Resource Requirements Human Resource Programs Feasibility Analysis 1 2 3 4 5
    • HRP Model Cont.
      • Operational Human Resource Planning
        • Steps 2,3, & 4
      • Ensure HRP programs are coordinated and allows the organization to meet its human resource requirements.
    • Example of the Basic Human Resource Planning Model Open new product line Open new factory and distribution system
      • Develop staffing for new installation
      • Production workers
      • Supervisors
      • Technical staff
      • Other managers
      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 1 2 3 4 3 5
    • Link 1: Determine Demand (labor requirements)
      • How many people need to be working and in what jobs to implement organizational strategies and attain organizational objectives.
      • Involves forecasting HR needs based on organizational objectives
      • Involves consideration of alternative ways of organizing jobs (job design, organizational design or staffing jobs)
      • Example - Peak production could be handled by temporary workers or assigning overtime. Machine breakdowns assigned to maintenance department or handled by machine operators
    • Link 2: Determine HR Supply (availability)
      • Choose HRM programs (supply)
      • Involves forecasting or predicting effect of various HR programs on employee flowing into, through and out various job classifications.
      • First determine how well existing programs are doing then forecast what additional programs or combination of programs will do
      • Need to know capabilities of various programs and program combinations
    • Determine Feasibility Links 3 & 4
      • Capable of being done
        • 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.
    • Shortcomings of the model - HRP in Practice
      • Oversimplification of planning process -Planning does not normally proceeds till find first acceptable plan
          • More than one set of HR goals to satisfy link 1 and more that one acceptable plan to satisfy link 2 so:
          • Typically choose the best HR goal for the strategic plan and the best program to satisfy that HR goal
    • Shortcomings of the model - HRP in Practice
      • Oversimplification of the benefit of planning is the specific plans that result
        • Planning process has value in and of itself
      • HRP in practice is usually less rational and may omit one or more of the steps
        • May lack knowledge required for forecasting
        • Incorrect assumptions about effectiveness of HR programs
        • Does not engage in strategic planning
        • Resistance to change present HR systems
    • HRP should be:
      • Done to guide and coordinate all HR activities so they work together to support the overall strategy
      • Responsive to internal and external environment
      • Planning - done in advance
      • Strategic - linked with higher level planning
    • Human Resource Forecasting
      • 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
      • External programs
      • Recruiting
      • External selection
      • Executive exchange
      • Internal programs
      • Promotion
      • Transfer
      • Career planning
      • Training
      • Turnover control
      Internal supply forecast External supply forecast Aggregate supply forecast No Yes
    • Internal Supply Forecasting Information
      • Organizational features (e.g., staffing capabilities)
      • Productivity - rates of productivity, productivity changes
      • Rates of promotion, demotion, transfer and turnover
    • External Supply Forecasting Information
      • External labor market factors (retirements, mobility, education, unemployment)
      • Controllable company factors on external factors (entry-level openings, recruiting, compensation)
    • Demand Forecasting Information
      • Organizational and unit strategic plans
      • Size of organization
      • Staff and Managerial Support
      • Organizational design
    • Considerations in Establishing a Forecasting System
      • How sophisticated
      • Appropriate time frame
      • Subjective versus objective forecasting methods
    • System Sophistication
      • Organizational size
        • large organizations require more complex forecasting systems and likely to have the required skilled staff
      • Organizational complexity
        • complex career paths and diverse skill requirements lead to more complex forecasting systems
      • Organizational objectives
        • the greater the gap between current HR situation and desired HR situation the more sophisticated the system
      • Organizational plans and strategies
        • the complex the plans are the more complex the forecasting system
    • Forecasting Time Frame
      • Depends on degree of environmental uncertainty
      • Factors creating uncertainty (shortening time frame)
        • many new competitors, changes in technology, changes in social, political and economic climate, unstable product demand
      • Factors promoting stability (longer time frame)
        • strong competitive position, slowly developing technology, stable product demand.
    • Subjective VS. Objective Forecasting
      • Objective is inappropriate when:
        • Lack expertise to use objective methods
        • Lack the historical data or HR data base is inadequate
        • Forecasting horizon is too long for the available objective method
    • Demand Forecasting Methods
      • Delphi Method
      • Staffing Table Approach
      • Regression Analysis
      • Time Series Analysis
      • Linear Programming
    • Supply Forecasting Methods
      • Skills Inventory
      • Replacement Charts
      • Succession Planning
      • Flow Modeling/Markov Analysis
      • Computer Simulations