Objectives • After completing this module, you will be able to: o Define human resources planning o Discuss the process of human resource planning o Explain the importance of human resources planning o Discuss what HRMS is
Topics• In this module, we will focus on the following topics: o What is Human Resources Panning? o Process of Human Resource Planning o Importance of HR Planning o HRMS and HRIS o Summary
What is Human Resources Panning? In this topic, we will define the term human resource planning and discuss how HRP tries to integrate people management with the organisation’s strategic and business goals.
Let’s Define HR Planning• HR Planning is the process by which management ensures that it has the right personnel, who are capable of completing those tasks that help the organisation, to reach its objectives.• Continuous HR planning links people management to the organisation’s mission, vision, goals and objectives, as well as its strategic plan and budgetary resources.• In this way, HR planning works to establish a link between: o Strategic planning and business planning o Arrangement and alignment of staff and employees on the other• In other words, human resource planning is concerned with planning for all aspects, like retention, separations, training and development, compensation, etc.
Objectives of Human Resources Panning • HRP leads to making processes effective and/or creating a competitive advantage in the larger perspective. • For example, through a clear plan to hire suitably experienced candidates at a right cost, the HR planning gives the organisation a competitive edge over other players in the market. • Objectives of Human Resource Planning: o Vertical integration o Involvement of Stakeholders o Understanding Demographics o Measurement and Assessment
Objectives of Human Resources Panning(Contd.) • Vertical Integration o HR planning and in turn HR management are not an end in them selves. o Human resource planning needs to be linked to business planning or strategic planning. Business Goals Business Goals o They are meant to support and enable the company to attain its business and strategic goals. o This is called as vertical integration. • Involvement of Stakeholders HR Planning o HR planning aims at serving the stakeholders and customers of the human resources department. o The stakeholders and customers of HRD are managers, executives, and line employees. o So, the planning process MUST actively involve them.
Objectives of Human Resources Panning(Contd.) Understanding Demographics • HR planning cant be effective without an understanding of: o The company or organisation o Its managers and employees o Its mission and issues o The environment in which it works • Therefore, good HR planning comprises of understanding the demographics like: o Data o Profiles o Projections
Objectives of Human Resources Panning(Contd.) • Measurement and Assessment o As with any planning endeavour, the outcomes of the implementation of an HR plan should be measurable and assessable. o Measurement for HRP can be done through metrics like: • Employee turnover • Frequency of grievances • At the same time, it is very important to assess the effects of the implementation of an HR plan on the achievement of the organisations business goals. • Thus, HR planning refers to the development of plans in these areas of achievement of the organisations business goals.
HR Planning for All • Is human resource planning only relevant to large companies or should small businesses do HR planning too? • Large companies have a large number of employees, and the level of complexity of their business is also much higher. • As a result, such companies have to have a have a much more formal and comprehensive approach to HR planning. • But this does not mean that HR planning is associated only with large companies. • Even a business owner with very few employees need to plan about various personnel and human resources issues.
Process of Human Resource Planning In this topic, we will discuss the basic steps for human resource planning. Apart from this, we will also list the parameters for internal and external check for human resource planning.
Steps Involved in HRP • The model of HR planning that we are going to discuss relies on gap analysis and aims at linking HR planning to overall business planning. • Click each of these circles to find out more. • Workforce Analysis o A key component of HR planning is to understand your workforce and planning for projected shortages and surpluses in specific occupations and skill sets.
Steps Involved in HRP(Contd.) • Internal Check o It consists of identifying factors internal to the organisation that may affect HR capacity to meet organisational goals. • External Scan o It consists of determining the most important environmental factors expected to affect workforce capacity, given known operational and HR priorities and emerging issues. • Gap Analysis o At this stage, the gap between the organisation’s current and future HR needs is analysed based on the environmental scan and operational business goals.
Steps Involved in HRP(Contd.) Priority Setting and Work Plan Based on the organisation’s priorities, environmental scan, and HR performance related data, the following factors are determined: o The major human resources priorities o The strategies that will achieve the desired outcome Monitoring, Evaluating, Reporting This leads to improve the HRD’s capacity to: o Measure performance o Set targets o Integrate results information into decision making processes o Determine future priorities
Parameters of Internal Check • Check the key forces affecting the organisations operations like: o Collective agreements o Staffing issues o Cultural issues o Work/life balance o Demographics o Technology requirements o Budget issues o Expectation of clients
Parameters of Internal Check(Contd.) • Check the organisation’s skills abilities and capabilities. • Check the company’s current internal environment, elements supporting its strategic direction, elements that deter the organisation from reaching its goal. • Check the changes in the organisational structure in the past and accordingly forecast future changes. • Check organisational changes with respect to amount and type of work in the past and intended changes in the future. • Check transformation in the use of technology. • Check changes in recruitment methodology. • Check customer’s perception about the quality of organisation’s products and services, strength areas and possible improvements. • Check the contribution of current programs, processes or services to the achievement of specific organisational goals.
Parameters of External Scan • In order to do human resource planning, you need to have a sense of both: o The current external environment o Things that may happen in the future in the labour market place • The current external environment, its elements relevant to the company, elements that can inhibit the company from reaching its goals. • Check company’s specific issues and their implications • Check the critical forces in the environment that need to be addressed
Parameters of External Scan (Contd.) • Check the impact of local trends on the company like: o Demographic o Economic o Political o Intergovernmental o Cultural o Technological • Check the competition in the market and it’s effect on the company • Check the sources of work, possibilities of change in it and it’s effect on the organisation • Check possibilities of change in the external environment and it’s implications • Check the trends affecting similar work in other jurisdictions • Check the trends affecting the companys partners/stakeholders and customers
Importance of HR Planning In this topic we will discuss the importance of HR planning.
Introduction • Human resources planning is important for the following reasons: o Succession planning o Training and staff development o Making a HR planning and development system
Succession Planning • After listing the reasons why HR planning is important, let us see how HR planning is important for succession planning. • Orderly and planned transfer of powers, responsibilities and job functions when employees -- usually in executive and management positions, leave the company through retirement, or other means. • If we think of human resource planning as ensuring that the right people and right skills are available so the company can meet its strategic and shorter term goals, then its clear that succession planning is an important part of this process.
Succession Planning (Contd.) • For example, a person targeted to fill an anticipated vacancy from within may be encouraged for succession by giving the necessary training. • This can be by way of: o Studying relevant university courses o Attending seminars for skill building o Shadowing a current incumbent to learn the ropes o Receiving coaching and mentoring from the incumbent o Participating in job rotations
Succession Planning (Contd.) • Succession planning can also be used with a new hire who may be hired before the incumbent leaves and is prepared for the full position while the incumbent is still in place. • This is because the purpose of HR planning is to ensure continuity of operations. • For succession planning, research is carried out to find out best practices with the following two objectives. o Designing tools and processes for succession planning o Designing leadership and executive development programs
Succession Planning (Contd.)• Designing tools and processes for succession planning: o Human resources planning is typically responsible for the tools and processes associated with successful succession planning. o Business or line units use the system to manage their own staffing needs. Together, these two groups produce a comprehensive process.• Designing leadership and executive development programs : o For the purpose of leadership and executive development, companies identify talent continuously and cyclically. o It’s an ongoing process and not a one shot deal. o The companies have a good sense of leadership and management competencies they will need, and need to develop.
Training and Staff Development • A well thought out human resource plan is important for organized staff development process in an organisation and is also strategic, organized, and designed to contribute to the companys bottom line. • Many a times, there is a wide gap between training and business needs. • This is because most of the training in corporations yields no value at all to the company because they are unconnected to business needs, either for the present or for the future. Hit or Miss Process Training Process Well Thought-out Human Organized Staff Resource Plan Development
Training and Staff Development(Contd.) • It is very important to choose the kinds of training, suitable for present and future needs, which will result in employees being better contributors now and in the future. • Thus, a sound human resource plan will: o Anticipate the skills that will be needed in the future o Identify gaps in skills that are present skill level and the required skill level in future o Plan for the development of staff in advance o Make sure the skills will be available when required • When training and staff development are linked to identified present and future needs via HR planning, it also allows for the use of multiple kinds of developmental activities, and not just reliance on training for skill development.
Making a HR Planning & Development System • After discussing the importance of HR planning in the staff training process, let us discuss how it is important in making a HR planning & development system. • When the needs of both employees and corporations are integrated in the HR planning process, the results for both the parties are much superior to the situation where only one set is considered. HR Planning and Staff Development Needs of Company Needs of Employees
Making a HR Planning & Development System(Contd.) • Needs of Company • The developmental needs of the company are addressed through an integrated HR forecasting and employee development plan. • It contains the following components: o Strategic business planning o Job/Role planning o Human Resource Inventorying
Making a HR Planning & Development System(Contd.) • Needs of Employees • Staffing issues are addressed by the HRD. Following are some of the staffing issues: o Job analysis o Recruitment and Selection o Induction/orientation and Initial Training o Job Design and Job Assignment o Employee Development Planning o Inventorying of Development Plans o Proper and timely follow-up of the developmental activities o Making career development processes
HRMS and HRIS In this topic, we will discuss what HRMS or Human Resource Management System is and what its relationship to HR planning is.
What is HRMS? • What is HRMS? • Human resource planning involves the collection and use of personnel data, so that it can be used as input into the strategic HR function. • There are huge amounts of data one can use in the process. • Human Resource Management System o Data Storage o Data Use
What is HRMS? (Contd.) • Data Storage o With the help of human resource management system or HRMS, the user can store personnel data in a form that can be that can be easily accessed and analyzed. o Thus, HRMS functions as a means of collecting and organizing data about one’s staff.
What is HRMS? (Contd.)• Data Use o The data stored by HRMS can be further used as Payroll input in HR planning. Module o Thus, it can be used to data to fulfill the various functions usually associated with a human Performance Recruitment resources department. Management, Selection and Appraisal and Applicant o The human resources management software Performance Database Planning Module typically will help administer and record personnel functions through the use of various HRMS software modules. o HRMS is comprehensive and can handle information and HR processes for almost every Training and Benefits possible organisational function. Staff Administration Development Module o It is integrated and accessible through a Module common computer interface. Integration allows exceedingly sophisticated data management and reporting.
What is HRMS? (Contd.) • HRIS is a simple system formatted to provide accurate and timely data and information for the purpose of decision making. • Centralised and systematic procedure for collecting, maintaining and validating data needed by an organisation about its human resources. Human Resources Information • It is a part of the organisation’s larger management System information system.
HRIS and Human Resource Management • HRIS and Human Resource Management • After discussing some introductory information about HRIS, let us discuss how it contributes to human resources planning. • A system like HRIS makes it possible for the HR to readily identify their employees with the particular Human Resources skills required to be performed and thus fulfil the Information changing needs of the company. System • The system does not look at merely planning; it encompasses in totality the function of HRM.
HRIS and Human Resource Management (Contd.) • HR Planning and Analysis o Organisational charts o Staffing projections o Skills inventories o Turnover analysis o Absenteeism analysis o Cost of restructuring o Internal job matching o Job description tracking • Employment Strategies o Action plan o Applicant tracking o Proper workforce utilization o Manpower availability analysis
HRIS and Human Resource Management (Contd.) • Resourcing o Recruitment sources o Applicant tracking o Job offer refusal analysis • Compensation & Benefits o Pay structures o Wage & salary costing analysis o Salary administration o Benefit usage analysis • Employee Development & Career Management o Employee training profiles o TNA o Succession planning o Career interests & experience
HRIS and Human Resource Management (Contd.) • Employee Relations ( including labour relations) o Exit interview analysis o Employee work history o Conducting surveys ( for example: attitude survey) o Recording of various audit reports o costing of trade union negotiations • Health & Safety o Safety training o Accident records
HRIS and Human Resource Management (Contd.) • The stored employee data in the data base is called as skill inventory. o Work history o Duties and tasks managed in total o Subordinates supervised, if any o Personal data including education Skill Inventory o Strengths o Weakness ( so that suitable training programs can be given) o Career goals o Potential & aptitude • For an HR person, it is extremely important to maintain these records and update it regularly.
Summary• In this topic, we learnt:• Continuous HR planning links people management to the organisations mission, vision, goals and objectives, as well as its strategic plan and budgetary resources.• Objectives of Human Resource Planning: o Vertical integration o Involvement of Stakeholders o Understanding Demographics o 4Measurement and Assessment• The stages involved in HR planning process are: o Workforce analysis o Internal check o External scan o Gap analysis o Priority setting and work plan o Monitoring, evaluating, reporting
Congratulations! You have successfullycompleted the session ‘Human Resources Planning.’