The document discusses the importance of organizational culture in influencing performance and outlines the life-cycle stages of organizations, from foundation to decline. It emphasizes the need for effective human resources planning, including forecasting staffing needs and managing employee relations throughout different organizational phases. The text also highlights techniques for forecasting HR requirements and availability to ensure the workforce aligns with the organization's goals.

1. Human Resources
Planning
www.humanikaconsulting.com

2. “Research from London's school of economics has identified that a company’s culture
is eight times more influential on performance variance than a company's strategy or
business plan, yet while over 90% of all organizations have a business plan or strategy,
less than 5% have a plan for developing their organizational culture.”
Benjamin Tonna, in Minessence eZine No. 47 —22 Sep, 2011

3. Organizational Life-cycle
• In the beginning the values are the values of the founders.
• If society values what the organization does as a result if it living the
founders’ values then it will become successful and norms will emerge
around the founding values in relation to “how-things-are-done-
around-here”. It will be a highly cohesive organization.
• The organization’s success could go on for years, however, often
complacency sets in.
• During the complacency phase one of two things may happen: (a) the
organization loses touch with the values of its founders and strays to
some other path which its clients don’t value, or (b) the values of
society change and the organization ignores this, continuing to believe
that what made it successful in the past will always make it successful.
• After complacency, if no attention is given to the organization’s values,
comes decline.
• There are now only three possible destinies for the organization: (i) it
ceases to exist, (ii) it continues to barely exist with none of its former
glory, or (iii) it gives attention to the values of its founders, its people,
its clients and society, and re-invents itself around new values.

4. Organizational Life-Cycle Stages and HR Activities
Organizational
LIFECYCLE
STAGE
HR - LIFE-
CYCLE STAGE STAFFING COMPENSATION
TRAINING AND
DEVELOPMENT
LABOR /
EMPLOYEE
RELATIONS
Foundation Introduction Attract best technical
and professional
talent.
Meet or exceed labor
market rates to attract
needed talent.
Define future skill
requirements and
begin establishing
career ladders.
Set basic
employee-
relations
philosophy of
organization.
Boom Growth Recruit adequate
numbers and mix of
qualifies workers. Plan
management
succession. Mange
rapid internal labor
market movements
Meet external market but
consider internal equity
effects. Establish formal
compensation structures.
Mold effective
management team
through
management
development and
organizational
development.
Maintain labor
peace, employee
motivation, and
morale.

5. Organizational Life-Cycle Stages and HR Activities
(cont’d)
Organizational
LIFE CYCLE
STAGE
HR LIFE-
CYCLE STAGE STAFFING COMPENSATION
TRAINING AND
DEVELOPMENT
LABOR /
EMPLOYEE
RELATIONS
Stable Maturity Encourage sufficient
turnover to minimize
layoffs and provide new
openings. Encourage
mobility as
reorganizations shift
jobs around.
Control compensation
costs.
Maintain flexibility and
skills of an aging
workforce.
Control labor costs
and maintain labor
peace. Improve
productivity.
Decline Decline Plan and implement
workforce reductions
and reallocations,
downsizing and
outplacement may
occur during this stage.
Implement tighter
cost control.
Implement retraining
and career consulting
services.
Improve productivity
and achieve flexibility
in work rules.
Negotiate job security
and employment-
adjustment policies

6. Human Resources Functions :
• Planning,
• Staffing,
• Employee development, and
• Employee maintenance.
Planning,
Staffing,
Employee
development,
and
Employee
maintenance.

7. 7
Strategic Planning
The process by which top management
determines overall organizational purposes
and objectives and how they are to be
achieved

8. 8
Human Resource Planning
The process of systematically
reviewing HR requirements to
ensure that the required
number of employees, with the
required skills, are available
when they are needed

9. 9
Human Resource Planning Process
External Environment
Internal Environment
Strategic Planning
Human Resource Planning
Forecasting
Human
Resource
Requirements
Comparing
Requirements
and Availability
Forecasting
Human Resource
Availability
Surplus of
Workers
Demand =
Supply
No Action Restricted Hiring,
Reduced Hours,
Early Retirement,
Layoff, Downsizing
Shortage of
Workers
Recruitment
Selection

10. 10
HR Forecasting Techniques
• Zero-based forecasting – uses
current level as starting point
for determining future staffing
needs
• Bottom-up approach – each
level of organization, starting
with lowest, forecasts its
requirements to provide
aggregate of employment
needs

11. 11
HR Forecasting Techniques (Continued)
• Mathematical models –Assist in
forecasting. Relationship
between sales demand and
number of employees needed is
positive one.
• Simulation – technique with
experimenting with real-world
situation through a
mathematical model

12. 12
The Relationship of Sales Volume to Number of Employees
Number of
Employees
500
400
300
200
100
0 10 20 30 40 50 60
Sales (thousands)

13. 13
Forecasting HR Requirements
• Estimate of numbers and
kinds of employees the
organization will need at
future dates
• Demand for firm’s goods
or services must be
forecast
• Forecast is then converted
into people requirements

14. 14
Forecasting HR Availability
• Determining whether the firm will be able to
secure employees with the necessary skills,
and from what sources these individuals may
be obtained
• Show whether the needed employees may be
obtained from within the company, from
outside the organization, or from a
combination of the two sources

15. 15
Surplus of Employees
• Restricted hiring – employees
who leave are not replaced
• Reduced hours
• Early retirement
• Layoffs

16. 16
Shortage of Workers Forecasted
• Creative recruiting
• Compensation incentives – premium
pay is one method
• Training programs – prepare previously
unemployable people for positions
• Different selection standards – alter
current criteria

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