Human resource planning


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Human resource planning

  1. 1. Chapter 4Human Resource Planning Falkenberg, Stone, and MeltzHuman Resource Management in Canada Fourth Edition Copyright © 1999 Harcourt Brace & Company Canada, Ltd.
  2. 2. Chapter Overviews The need for human resource plannings Purposes of human resource plannings Relation to other human resource functionss The human resource planning processs Projecting human resource supply 4.1
  3. 3. Chapter Overview (cont’d.)s Forecasting future human resource needss Comparing forecast needs with projected supplys Planning policies and programss Evaluating human resource planning effectivenesss The HRM audit 4.2
  4. 4. Purposes of Human Resource Plannings Setting goals and objectivess Examining the effects of alternative human resource policies and programs 4.3
  5. 5. Examples of Organizational Goalss To increase company profits by 10% in the next fiscal year (profitability)s To close 25 retail outlets in the next four years (downsizing)s To bottle 10% more diet pop in the next year (production)s To guarantee one-day delivery of all first-class mail within the province by 2001 (service level) 4.4
  6. 6. The Human Resource Planning Processs Project future human resource supplys Forecast future human resource needss Compare forecast needs with projected supplys Plan policies and programs to meet human resource needss Evaluate human resource planning effectiveness 4.5
  7. 7. Projecting Human Resource Supplys Assessment of current supplys Skills inventoriess Analysis of human resource flowss Stochastic models 4.6
  8. 8. Examples of Human Resource FlowsEmployees may- stay in the same job- move across to another, but not a higher-level job (transfer or lateral move)- move up to a higher-level job (promotion)- move out of the organization through voluntary termination (resignation) or involuntary termination (lay-off, dismissal)- move down (demotion) 4.7
  9. 9. Typical Data Elements in a Human Resources Information SystemEmployee personal data Salary administrationBenefits information Skills Benefits plans Attendance Employee benefits information Performance/Discipline Dependents Health and SafetyTraining and development PayrollEmployee work data Salary Performance review Job information Employment status information Hire/Termination information 4.8 Work information
  10. 10. Forecasting Future Human Resource Needss Planning for the status quos Rules of thumbs Unit forecastings The Delphi methods Scenarioss Computer simulation 4.9
  11. 11. Five Steps in the Delphi Method1. An issue, question, or problem is identified.2. A small group or panel of ten or fewer experts is identified.3. Independent judgements about the issue are obtained from each expert through a questionnaire or structured interview.4. An intermediary or facilitator collects, analyzes, and feeds back information from the first questionnaire or interview to each expert.5. Steps 3 and 4 are repeated until there is a consensus on the issue or problem. 4.10
  12. 12. Sample Questions from a Unit Forecasting Questionnaires List any jobs that have changed since the last forecasting period and any that will change in the next forecasting period.s If vacancy can be filled with present employees, note whether training will be required. Specify nature of training needs.s What percentage of employees are performing jobs up to standard?s How many employees will be absent in the next forecasting period because of disability, educational, or other leaves? 4.11
  13. 13. Planning for Anticipated Shortagess Transfer employees to jobs in which shortages exists Train employees to move up to jobs in which shortages exists Have employees work overtimes Increase employee productivitys Hire part-time employees 4.12
  14. 14. Planning for Anticipated Shortages (cont’d.)s Hire temporary full-time employeess Hire permanent full-time employeess Subcontract work to other firmss Forgo increases in productions Install equipment to perform some of the tasks that would be done by workers (capital substitution) 4.13
  15. 15. Ways to Increase Employee Productivitys Offer monetary incentives, e.g. bonuses, for higher productivity or performance levelss Improve employees’ job skills to produce more in less time or at lower costs Re-design work processes and methods so greater outputs are achieveds Use more efficient equipment so greater outputs are achieved 4.14
  16. 16. Planning for Anticipated Labour Surplusess Close plantss Lay off some workers permanentlys Give incentives for early retirements Let the workforce shrink by attritions Retrain and transfer workerss Shut down plants (or parts of them) temporarilys Lay off workers temporarilys Reduce the work weeks Use work sharings Cut or freeze pay and/or benefits 4.15
  17. 17. Evaluating Alternatives to the Problem of Labour Shortages or Surplusess Determine size of the anticipated shortages or surplusess Determine the expected duration of the change in the demand for human resourcess Determine the amount of lead time before shortages or surpluses occur 4.16
  18. 18. Information Needed to IdentifyAppropriate Ways to Deal with Labour Surplus/Shortages Financial and human costs and benefitss Effects on other organizational componentss Length of time to implement the alternatives and generate desired resultss Probability of success in reducing the shortage or surplus 4.17
  19. 19. Programs for Human Resource Plannings Linear programming, e.g. to minimize total labour costs within certain constraintss Goal programming, e.g. setting multiple goals such as increasing profits by 10% and hiring bilingual salespeoples Computer simulation, e.g. to examine the effects of various programs to reduce surpluses or shortages 4.18
  20. 20. HRM Auditing Models Strategic-Level HRM — determines the effectiveness of HRM functions in the overall strategic plan of the organizations Managerial-Level HRM — determines effectiveness of HRM functions within departments and unitss Operational-Level HRM — determines the effectiveness of HRM functions throughout the organization 4.19
  21. 21. Reasons for Conducting HRM Auditss When labour costs are large or the largest component of total product or service costss The personnel audit is used to justify the existence of budgets of staff and programss The personnel audit provides valuable feedback from employees and line managerss The personnel audit may uncover problems such as unqualified HRM staff, lack of HRM policy compliance, or low employee satisfaction 4.20