Human resource planning


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Human resource planning

  1. 1. Human Resource Planning Fatemeh Hashemi
  2. 2. Human Resource Planning – Out LineI. What is it?II. Why is it important?III. How is it done? 2
  3. 3. I- What is it?According to Geisler, “Manpower planning is the process including forecasting, developing and controlling by which a firm ensures that it has• The right number of people,• The right kind of people,• At the right places,• At the right time,doing work for which they are economically most useful”. 3
  4. 4. I- What is it?Human resource planning is the process of anticipating and carryingout the movement of people into, within, and out of the organization.Human resources planning is done to achieve the optimum use ofhuman resources and to have the correct number and types ofemployees needed to meet organizational goals. 4
  5. 5. II. Why is it important?A. often long lag times to fill positions.B. often influences both turnover(Number of employees hired to replace those who left or were fired during a 12 month period.) and productivity(The amount of output per unit of input (labor , equipment, and capital).• C. the “demographic imperative” (Characteristics of population Class, age, sex, orientation ability )demands more such planning. 5
  6. 6. III. How do you do it?A. General Comments: 1. It is a process of comparing human resource supply with human resource demand. 2. It works best when it is tied to: a. the organization’s strategic planning process b. all available forecasts (technological , economic, market, etc) 3. When there are variances, action plans must be formulated. 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? 6
  7. 7. III. How do you do it?B. Methods Used for Human Resource Planning: 1. Approaches to forecasting: a. Qualitative: 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 i. Card systems ii. Human Resource Information Systems (HRIS) b. Replacement charts / Succession plans 7
  8. 8. •Human Resource Planning • Interfacing with strategic planningProcess 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 •8
  9. 9. 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 9
  10. 10. Example of the Basic Human Resources Planning Model 1 2 3 Organizational Human Resource Human Feasibility Objectives Requirements Resource Analysis Programs 4 5• Strategic Human Resource PlanningLinks 1 & 5: HR objectives are linked to organizational objectives and planning• Designed to insure consistency between organizations 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.• Operational Human Resource PlanningSteps 2,3, & 4• Ensure HRP programs are coordinated and allows the organization to meet its humanresource requirements. 10
  11. 11. Example of the Basic Human Resource Planning Model Open new Develop staffing Recruit skilled Recruiting and H product line for new installation 2 workers training 3 programs 1 Open new Develop feasible •Production technical training factory and workers programs Transfers distribution infeasible system •Supervisors Transfer because of •Technical staff managers from lack of other facilities managers with •Other managers 4 right skills Develop new Recruit Too costly to objectives managers from 3 hire from and plans 5 outside outside 11
  12. 12. Link 1:Determine Demand (labor requirements)• How many people need to be working and in what jobs to implementorganizational strategies and attain organizational objectives.• Involves forecasting HR needs based on organizational objectivesExample - Peak production could be handled by temporary workers orassigning overtime. Machine breakdowns assigned to maintenancedepartment or handled by machine operators 12
  13. 13. Link 2:Determine HR Supply (availability)• Choose HRM programs (supply)• Involves forecasting or predicting effect of various HR programs onemployee flowing into, through and out various job classifications.• First determine how well existing programs are doing then forecast whatadditional programs or combination of programs will do• Need to know capabilities of various programs and program combinations 13
  14. 14. 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 14
  15. 15. Revise Organizational Objectives and Strategies Link 5 “If no feasible HR program can be devised, the organization must revise strategic plans.” 15
  16. 16. 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. 16
  17. 17. Reasons for demand forecasting: 1. Quantify the jobs necessary for producing goods. 2. Assess appropriate staffing levels in different parts organization to avoid unnecessary costs. 3. Prevent shortage of people when they are needed most. 4. Monitor compliance with legal requirements. 17
  18. 18. Potential benefits • Upper management better aware. • Personnel cost is controlled. • Less time to locate talent. • Affirmative Action Plan implemented • Time to develop employees 18
  19. 19. HUMAN RESOURCE PLANNING PROCESSForecast of labour Forecasts of demands labour supply Forecasts of labour surplus or shortage Goal setting and strategic planning Program implementation and evaluation
  20. 20. Program Planning Options Hire new full-time employees Offer incentives for postponing retirement Re-hire retired employees on part-time basisIf a shortage of Attempt to reduce turnoveremployees is expected Bring in overtime for present staff…. Subcontract work to another company Hire temporary employees Re-engineer to reduce needs. Do not replace employees who leave Offer incentives for early retirement Transfer or re-assign excess employeesIf a surplus of employees is Use slack time for employees training orexpected …. equipment maintenance Reduce work hours Lay-off employees 20
  21. 21. Options for reducing an expected labor surplus Option Speed Human Suffering Downsizing Fast High Pay reductions Fast High Demotions Fast High Transfers Fast Moderate Work sharing Fast Moderate Retirement Slow Low Natural attrition Slow Low Retraining Slow Low 21
  22. 22. Options for avoiding an expected labor shortage Option Speed Human Suffering Overtime Fast High Temporary employees Fast High Outsourcing Fast High Retrained Transfers Slow High Turnover reductions Slow Moderate New external hires Slow Low Technological Slow Low innovation 22
  23. 23. Human Resource Planning Model 23