Human Resource Planning and its Ways by Sajjad Awan PhD Scholar TE Planning
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The document discusses human resource planning (HRP) and forecasting. It describes HRP as aligning an organization's human resource needs with its objectives and strategies. The key aspects of HRP include determining future demand and supply of human resources, assessing feasibility, and revising objectives if needed. Forecasting is an important part that involves projecting demand based on objectives and supply based on HR programs. The document outlines models of the HRP process and issues to consider in establishing an effective forecasting system.
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Human Resource Planning and its Ways by Sajjad Awan PhD Scholar TE Planning
- 1. SAjjad AHMAD AWAN PHD SCHOLAR TE PLANNING sahmadawan@gmal.com 1
- 2. WAYS TO 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 SAjjad AHMAD AWAN PHD SCHOLAR TE PLANNING sahmadawan@gmal.com 2
- 3. HUMAN RESOURCE PLANNING • Setting human resource objectives and deciding how to meet them • Ensuring HR resource supply meets human resource demands SAjjad AHMAD AWAN PHD SCHOLAR TE PLANNING sahmadawan@gmal.com 3
- 4. 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 SAjjad AHMAD AWAN PHD SCHOLAR TE PLANNING sahmadawan@gmal.com 4
- 5. 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. SAjjad AHMAD AWAN PHD SCHOLAR TE PLANNING sahmadawan@gmal.com 5
- 6. Example of the Basic Human Resources Planning Model Organization al Objectives Human Resource Requirements Human Resource Programs SAjjad AHMAD AWAN PHD SCHOLAR TE PLANNING sahmadawan@gmal.com Feasibility Analysis 6
- 7. 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 SAjjad AHMAD AWAN PHD SCHOLAR TE PLANNING sahmadawan@gmal.com 7
- 8. Example of the Basic Human Resources Planning Model Organization al Objectives 1 Human Resource Requirements 2 Human Resource Programs 3 Feasibility Analysis 4 5 SAjjad AHMAD AWAN PHD SCHOLAR TE PLANNING sahmadawan@gmal.com 8
- 9. 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. SAjjad AHMAD AWAN PHD SCHOLAR TE PLANNING sahmadawan@gmal.com 9
- 10. Example of the Basic Human Resource Planning Model Open new Open new product line product line Open new Open new factory and factory and distribution distribution system system 1 Develop staffing for Develop staffing for new installation new installation ••Production Production workers workers ••Supervisors Supervisors ••Technicalstaff Technical staff 2 Recruit skilled Recruit skilled workers workers 3 Develop technical Develop technical training programs training programs Transfer managers Transfer managers from other facilities from other facilities ••Othermanagers Other managers Recruiting and Recruiting and training training programs programs feasible feasible Transfers Transfers infeasible infeasible because of lack because of lack of managers of managers with right skills with right skills 4 Develop new Develop new objectives objectives and plans and plans 6 Recruit managers Recruit managers from outside from outside SAjjad AHMAD AWAN PHD SCHOLAR TE PLANNING sahmadawan@gmal.com 5 Too costly to hire Too costly to hire from outside from outside 10
- 11. 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 SAjjad AHMAD AWAN PHD SCHOLAR TE PLANNING sahmadawan@gmal.com 11
- 12. 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 SAjjad AHMAD AWAN PHD SCHOLAR TE PLANNING sahmadawan@gmal.com 12
- 13. 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 SAjjad AHMAD AWAN PHD SCHOLAR TE PLANNING sahmadawan@gmal.com 13
- 14. Revise Organizational Objectives and Strategies Link 5 If no feasible HR program can be devised, the organization must revise strategic plans. SAjjad AHMAD AWAN PHD SCHOLAR TE PLANNING sahmadawan@gmal.com 14
- 15. 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 SAjjad AHMAD AWAN PHD SCHOLAR TE PLANNING sahmadawan@gmal.com 15
- 16. 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 SAjjad AHMAD AWAN PHD SCHOLAR TE PLANNING sahmadawan@gmal.com 16
- 17. 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 SAjjad AHMAD AWAN PHD SCHOLAR TE PLANNING sahmadawan@gmal.com 17
- 18. 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. SAjjad AHMAD AWAN PHD SCHOLAR TE PLANNING sahmadawan@gmal.com 18
- 19. Forecasting as a Part of HRP SUPPLY Choose human resource programs DEMAND FORECASTING Determine Determine organizational organizational objectives objectives Internal programs • External selection •Transfer •Executive exchange •Career planning Aggregate Aggregate demand demand forecast forecast External programs • Recruiting •Promotion Demand Demand forecast for forecast for each objective each objective FORECASTING •Training •Turnover control Internal supply forecast External supply forecast Does aggregate supply meet aggregate demand? No Aggregate Aggregate supply forecast supply forecast Yes SAjjad AHMAD AWAN PHD SCHOLAR TE PLANNING sahmadawan@gmal.com Go to feasibility analysis steps Go to feasibility analysis steps 19
- 20. Internal Supply Forecasting Information • Organizational features (e.g., staffing capabilities) • Productivity - rates of productivity, productivity changes • Rates of promotion, demotion, transfer and turnover SAjjad AHMAD AWAN PHD SCHOLAR TE PLANNING sahmadawan@gmal.com 20
- 21. External Supply Forecasting Information • External labor market factors (retirements, mobility, education, unemployment) • Controllable company factors on external factors (entry-level openings, recruiting, compensation) SAjjad AHMAD AWAN PHD SCHOLAR TE PLANNING sahmadawan@gmal.com 21
- 22. Demand Forecasting Information • Organizational and unit strategic plans • Size of organization • Staff and Managerial Support • Organizational design SAjjad AHMAD AWAN PHD SCHOLAR TE PLANNING sahmadawan@gmal.com 22
- 23. Considerations in Establishing a Forecasting System • How sophisticated • Appropriate time frame • Subjective versus objective forecasting methods SAjjad AHMAD AWAN PHD SCHOLAR TE PLANNING sahmadawan@gmal.com 23
- 24. 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 SAjjad AHMAD AWAN PHD SCHOLAR TE PLANNING sahmadawan@gmal.com 24
- 25. 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. SAjjad AHMAD AWAN PHD SCHOLAR TE PLANNING sahmadawan@gmal.com 25
- 26. 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 SAjjad AHMAD AWAN PHD SCHOLAR TE PLANNING sahmadawan@gmal.com 26
- 27. Demand Forecasting Methods • • • • • Delphi Method Staffing Table Approach Regression Analysis Time Series Analysis Linear Programming SAjjad AHMAD AWAN PHD SCHOLAR TE PLANNING sahmadawan@gmal.com 27
- 28. Supply Forecasting Methods • • • • • Skills Inventory Replacement Charts Succession Planning Flow Modeling/Markov Analysis Computer Simulations SAjjad AHMAD AWAN PHD SCHOLAR TE PLANNING sahmadawan@gmal.com 28
- 29. SAjjad AHMAD AWAN PHD SCHOLAR TE PLANNING sahmadawan@gmal.com 29