Ch 02 hr planning

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Ch 02 hr planning

  1. 1. HUMAN RESOURCEPLANNING PROCESS CHAPTER 2 Slide editing by : mursyida mahshar
  2. 2. HRP (Definition)• Process of analyzing and identifying the need for and availability of HR so that the org. can meet its objectives or• Process that helps to provide adequate HR to achieve future organisational objective.• It will include ; forecasting future needs for employees of various type, compare these needs with the present workforce and determine the no. or types of employees to be recruited into or phased out.
  3. 3. • Small Business and HR Planning Issues – Attracting and retaining qualified outsiders – Management succession between generations of owners – Evolution of HR activities as business grows – Family relationships and HR policies
  4. 4. Issues in forecasting HR requirements:• Increasingly of service oriented• Increasingly economy based on technology• Teams becoming more widely used• Needs for fewer managers with increasing technologyIssues in HR availability: • Management inventories • Succession planning • Skill inventory • External labor supply
  5. 5. Purpose of HR Planning
  6. 6. Benefits of HR Planning• Better view of the HR dimensions of business decisions• Lower HR costs through better HR management.• More timely recruitment for anticipate HR needs• More inclusion of protected groups through planned increases in workforce diversity.• Better development of managerial talent
  7. 7. Linking HRP & Strategy for Competitive advantageStrategy of Culture of Competitive / Current organizationorganization organization Fin. Advantage structure Need for HR Qty & Available Financial Skill Levels Resources HR Plans and Policies for: Performance mgmt Recruiting Selection Staffing mgmt HR Development Compensation
  8. 8. HR Strategies• Cost Leadership • Differentiation – Competition on the basis – Competition on the basis of of low price and high either offering distinctively quality of product or different products or services or service establishing an exclusive image – Relies on “building” for quality products and employees to fit services specialized needs – Relies on hiring needed skills. – Requires a longer HR – Needs a shorter planning time planning horizon frame in order to be responsive approach to dynamic environments.
  9. 9. HR StrategiesOrganizationa Strategic Focus HR Strategy HR Activitiesl StrategiesCost Efficiency Long HR planning Promote from withinLeadership Stability horizon Extensive training Cost control Build skills in existing Hire & train for employee specific capabilities Job & employee specialization efficiencyDifferentiation Growth Shorter HRP horizon External staffing Innovation Hire the HR capabilities Less training Decentralization needed Hire & train for Broader, more flexible broad competency jobs & employee
  10. 10. HR 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
  11. 11. HR Unit Managers - Participates in strategic -Identify supply and planning process. demand needs for each - Identifies HR strategies. department. - Designs HRP data -Review / discuss HRP systems. info. With HR specialists. -Compiles and analyzes -Integrate HR plan with data on staffing needs. departmental plans. -Monitor HR plan to identify changes needed.SP – The process of determining what org.’s mission and planto achieve organisational goals.
  12. 12. HR Planning Process
  13. 13. HRP Process ENVIRONMENTAL SCANNING & SITUATIONAL ANALYSIS FORECASTING THE DEMAND AND SUPPLY OF HR DEVELOPMENT OF PLANS FOR ACTION
  14. 14. Scanning the External Environment• Environmental Scanning – The process of studying the environment of the organization to pinpoint opportunities and threats.• Situational Analysis – HRM compares needed and available skills for training, promotion, transfer, productivity improvement and succession planning.• Environmental Changes Impacting HR – Governmental Influences – Economic conditions – Geographic and competitive concerns – Workforce composition
  15. 15. 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?
  16. 16. 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 employee career progression • Individual job performance data
  17. 17. Forecasting HR Supply and Demand• Forecasting – The use of information from the past and present to identify expected future conditions.• Forecasting Methods – Judgmental • Estimates—asking managers’ opinions, 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
  18. 18. Forecasting HR Supply and Demand (cont’d)• Forecasting Methods (cont’d) – Mathematical • Statistical regression analysis (statistic compares the past r/ships among various factors) • Simulation models (representation of real situations in abstract form) • 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
  19. 19. HR Forecasting
  20. 20. Forecasting the Demand for HR• To develop a forecast of the needs for HR by number and type for the forecasted period• Estimate no. and type of employees for futurea) External Supplyb) Internal Supply Demand = Supply
  21. 21. Forecasting supply for HR• Forecast the availability of HR internal and external supplies.• Use “skill inventory” : – to assess the current supply of employees (past and present skills), used for future, and maintained through interview and questionnaires.
  22. 22. Estimating Internal Labor Supply for aGiven Unit
  23. 23. Managing HR Surplus / Shortage Action when Surplus of employees i) Layoff - Suspension or termination of employment (with or without notice) by the employer due to management problems. (merit & seniority) ii) Early retirement – encourage employees to leave org. early. iii) Restrict Attrition & freeze hiring – not replace the jobs been left out (quit @ retire), and those remain in the co. will be given more tasks. iv) Reduced Hours of work Suggestion to deal with downsizing  Investigate alternatives to downsizing  Involve those people necessary for success in the planning for downsizing  Develop comprehensive communicate plans  Nurture the survivors  Outplacement pays off
  24. 24. Action When Shortage of Employees• Promote Overtime - ask the workers to work after the standard working hours• Hiring New employees• Hire contingent worker – subcontract, contract, part time• Outplacement services – A group of services provided to the displaced employee – to give them support and assistance. – E.g. personal career counseling, resume preparation, interviewing workshops and referral assistance.
  25. 25. HRIS?Find information about HRIS

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