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HR PLANNING Key areas of Human Resource Planning 1. General Overview and Definition 2. Importance and Objectives of HRP 3. Four phases of HR planning 4.

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Presentation on theme: "HR PLANNING Key areas of Human Resource Planning 1. General Overview and Definition 2. Importance and Objectives of HRP 3. Four phases of HR planning 4."— Presentation transcript:

1 HR PLANNING Key areas of Human Resource Planning 1. General Overview and Definition 2. Importance and Objectives of HRP 3. Four phases of HR planning 4. HR (Demand) forecasting and Techniques 5. Analysis of Supply of Current Employees 6. HR Information Systems 7. Supply and Demand: organisational impacts 8. Catalysts or Constraints to Effective HRP

2 HR PLANNING Human Resource Planning ( Manpower Planning ) Definition: n The process used by an organisation to assess the demand for and supply of future human resources. It is the process used to determine the numbers and kinds of employees an organisation will recruit or retrench, consistent with the business strategy or strategic plan n Is performed by both line managers and HR managers (Ivancevich)

3 HR PLANNING Objectives of HRP… n To achieve more effective and efficient use of employees/human resources n To better recruit employees who possess the necessary skills and competences n To achieve a higher rate of satisfied and better developed employees

4 HR PLANNING Objectives of HRP… n To facilitate training and development programmes n To facilitate the roll-out of strategic plans/missions n To achieve more effective equal opportunity planning n To relieve the organisation of unnecessary/ unneeded labour

5 HR PLANNING Strategic Planning for Human Resources… n The process of developing plans (strategic & tactical) that integrate the separate HR activities into a cohesive functional whole, for the achievement of organisational objectives n These HR activities are: Acquisition, performance management, motivation, compensation & development

6 HR PLANNING The Role of Tactical Planning… n This involves contributing a general managerial knowledge and business appreciation, and internal affairs of the organisation; and contributing HR knowledge for the development of the tactical structures n Designing planning processes for behavioural change n Assisting in managing planned change

7 HR PLANNING The Four Phases of the HR Planning… 1. Situational Analysis/Environmental Scanning 2. Forecasting HR demand - Assessment future HR needs 3. HR supply analysis - Assessment of current HR 4. Action planning or programme of action to fulfil future HR needs (Ivancevich)

8 HR PLANNING HR (Demand) Forecasting Techniques… n Expert Estimate Technique n Trend-Projection Technique n Modelling and Multiple-Predictive Techniques n Unit-Demand Forecasting technique n Delphi Group Technique n Nominal Group Technique (Ivancevich)

9 HR PLANNING Analysis of Supply of Current Employees… n The Comprehensive Skills Inventory n Components of the Skills Inventory (SI) n Importance and relevance of the SI n Technology and the SI (Fisher et al)

10 HR PLANNING SUPPLY AND DEMAND : ORGANISATIONAL IMPACTS n Product demand and need for increased productivity, can create labour demand n The Internal and External Labour Markets are the sources of Labour Supply (Fisher et al)

11 HR PLANNING Labour Supply exceeds Labour Demand… RESPONSE: n Pay cuts n Reduced work hours n Voluntary early retirement n Layoffs n Work sharing n Attrition n Inducements to quit (Mondy & Noe)

12 HR PLANNING Labour Demand Exceeds Labour Supply… RESPONSE: n Training and Retraining n Succession Planning n Promotion from within n Recruitment and Selection from within (Mondy & Noe)

13 HR PLANNING Labour Demand Exceeds Labour Supply… n Sub-contracting n Part-timers n Temporary workers n Overtime

14 HR PLANNING Labour Demand equals Supply… RESPONSE: n Replacement of quits form inside or outside n Internal transfers and redeployment (Mondy & Noe)

15 HR PLANNING Catalysts or Constraints to Effective HRP… n Availability of Finance n Management commitment n Management support n Corporate culture n Human Resource development policies n Economic conditions n Size and complexity of organisation (Mondy & Noe; Fisher)

16 HR PLANNING Catalysts or Constraints to Effective HRP… n Technical and human competence n Research capabilities n Availability of technology n Time n Rewards policy and systems n Industrial Relations n Labour market conditions

17 HR PLANNING Global Trends in HR Planning… n More responsive to dynamic and rapidly changing environments n More responsive to strategic demands of organisation - strategic/business focus n Need for highly skilled/trained labour n More scientific approaches to HRP (Fisher et al )

18 HR PLANNING Global Trends in HR Planning… n HRP for competitive advantage n HRP for national sustainable development n Competencies based assessments n More high tech. Recruitment, Selection and Orientation policies, programmes and processes

19 HR PLANNING References… n John Ivancevich, Human Resource Management (1997) n Ian Beardwell & Leon Holden, Human Resource Management: a contemporary perspective (1997) n David Cherrington, The management of Human Resources (1995) n Wayne Mondy & Robert Noe, Human Resource Management n Fischer et al, Human Resource Management (1999)


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