Download presentation
Presentation is loading. Please wait.
1
HUMAN RESOURCE PLANNING
.
2
Human Resource Planning (HRP)
First component of HRM strategy All other functional HR activities are derived from & flow out of HRP process Basis in considerations of future HR requirements in light of present HR capabilities & capacities Proactive in anticipating & preparing flexible responses to changing HR requirements Both internal & external focus
3
Human Resource Planning (HRP)
Goes beyond simple hiring & firing Involves planning for deployment of human capital in line with organization &/or business unit strategy May involve: Reassignment Training & development Outsourcing Using temporary help or outside contractors Needs as much flexibility as possible
4
Key Objectives of HR Planning
Prevent overstaffing & understaffing Ensure organization has right employees with right skills in right places at right times Ensure organization is responsive to changes in environment Provide direction & coherence to all HR activities & systems Unite perspectives of line & staff managers
5
Types of Planning Aggregate Planning Succession Planning
Anticipating needs for groups of employees in specific, usually lower level jobs & general skills employees will need to ensure sustained high performance Succession Planning Focuses on ensuring key critical management positions in organization remain filled with individuals who provide best fit
6
Aggregate Planning Forecasting demand
Considers firm’s strategic plan’s effects on increases or decreases in demand for products or services Assumptions on which forecast is predicated should be written down & revisited when conditions change Unit forecasting (bottom-up planning) involves “point of contact” estimation of future demand for employees Top-down forecasting involves senior managers allocating a fixed payroll budget across organizational hierarchy Demand for employee skills requirements must also be considered
7
Aggregate Planning Forecasting supply
The level and quantities of abilities, skills & experiences can be determined using Skills Inventory. Annually updated human resource information system (HRIS) is dynamic source of HR information Markov analysis can be used to create transition probability matrix that predicts mobility of employees within organization
8
Strategies for Managing Shortages
Recruit new permanent employees Offer incentives to postpone retirement Rehire retirees part-time Attempt to reduce turnover Work current staff overtime Subcontract work out Hire temporary employees Redesign job processes so fewer employees are needed
9
Strategies for Managing Surpluses
Hiring freezes Do not replace those who leave Offer early retirement incentives Reduce work hours Voluntary severance leaves of absence Across-the-board pay cuts Layoffs Reduce outsourced work Employee training Switch to variable pay plan Expand operations
10
Succession Planning Involves identifying key management positions the organization cannot afford to have vacant Purposes of succession planning Facilitates transition when employee leaves Identifies development needs of high-potential employees & assists in career planning Many organizations fail to implement succession planning effectively Qualified successors may seek external career advancement opportunities if succession is not forthcoming
11
Guidelines for Effective Succession Planning
• Tie into organization’s strategy (and modified accordingly) • Monitor the progress and measure outcomes of succession planning initiatives • Ensure that all HR functions that impact the succession plan are iterated and working in tandem • Ensure centralized coordination of succession planning • Engage and involve managers throughout the organization
12
Stages in Human Resource Planning
Forecasting Goal Setting and Strategic Planning Program Implementation and Evaluation The Human Resources Planning Process—The process consists of forecasting, goal setting and strategic planning, and program implementation and evaluation.
13
Forecasting Stage of Human Resource Planning
Determining Labor Demand derived from product/service demanded external in nature Determining Labor Supply internal movements caused by transfers, promotions, turnover, retirements, etc. transitional matrices identify employee movements over time Determining Labor Surplus or Shortage Forecasting determines the demand and supply of human resources and predicts in what positions either surpluses or shortages will exist in the future. 1. Determining Labor Demand Labor demand can be predicted by the use of statistical techniques such as leading indicator, which is an objective measure that accurately predicts future labor demand 2. Determining Labor Supply Internal labor supply is determined by a detailed analysis of how many people are currently in various job categories, modified to reflect changes in the near future caused by retirements, promotions, transfers, voluntary turnovers, or terminations. A transitional matrix is a table used to project internal labor supply. The matrix shows the proportion or number, of employees in different job categories at different times and how people move from one job to another in the organization and how many people enter and leave the organization 3. Determining Labor Surplus or Shortage—By comparing forecasts for labor supply and demand for specific jobs, the organization can determine what it needs to do.
14
Downsizing Downsizing is the planned elimination of large numbers of personnel designed to enhance organizational competitiveness. Reasons for downsizing include: need to reduce labor costs technological changes reduce need for labor mergers and acquisitions reduce bureaucratic overhead organizations choose to change the location of where they do business Downsizing – the planned elimination of large numbers of personnel designed to enhance organizational competitiveness.. a. There were four major reasons that organizations engaged in downsizing: Cost reduction through decreased labor. Closing outdated plants or introducing technological change reduced the need for labor. Mergers and acquisitions reduced the need for large bureaucracies. For economic reasons, many firms relocated parts of operations. Although the jury is still our on whether these downsizing efforts have led to enhanced organizational effectiveness, some early reports indicate the results have not met expectations.
15
Effects of Downsizing Studies show that firms that announce a downsizing campaign show worse, rather than better financial performance. Reasons include: The long-term effects of an improperly managed downsizing effort can be negative. Many downsizing campaigns let go of people who turn out to be irreplaceable assets. Employees who survive the staff purges often become narrow-minded, self-absorbed, and risk-averse. One study of 52 Fortune 100 firms shows that most firms that announce a downsizing campaign show worse, rather than better, financial performance. Reasons include: Although the initial cost savings are a short-term plus, the long-term effects of an improperly managed downsizing effort can be negative. Many downsizing campaigns let go of people who turn out to be irreplaceable assets. Employees who survive the staff purges often become narrow-minded, self-absorbed, and risk-averse.
16
Early Retirement Programs
The average age of the U.S. workforce is increasing. Baby boomers are not retiring early for several reasons: improved health of older people a fear that Social Security will be cut mandatory retirement is outlawed Many employers try to induce voluntary attrition among older workers through early retirement incentive programs. The average age of the U.S worker is getting older. Because of improved health of the older worker and decrease in physical demand of the job individuals are able to work long past the traditional retirement age. Although older workers bring experience to the table, they also create problems like being more costly than younger workers because of seniority, higher medical costs, and higher pension contributions. Many employers are stressing early retirement by offering incentive programs to older employees.
17
Employing Temporary Workers
Hiring temporary workers helps eliminate a labor shortage. Temporary employment affords firms the flexibility needed to operate efficiently in the face of swings in demand. Other advantages include: temporary workers free a firm from many administrative tasks and financial burdens temporary workers are often times tested by a temporary agency many temporary agencies train employees before sending them to employees Some strategies can be turned on and off fairly painlessly, such as the use of overtime and/or temporary employees. Operational flexibility is the primary reason for this, although the use of temps also frees the firm from many administrative tasks and financial burdens (health insurance, pension, worker's compensation, life insurance, etc.). Smaller companies may use temporary agencies to do their employment screening for them. After 90 days, if the employee works out, he or she is often offered a permanent position. Training may be done by the agency as well. Finally, temporary employees bring a fresh perspective to the firm, particularly if they have temped in a number of other organizations.
18
Outsourcing and Offshoring
Outsourcing is an organization’s use of an outside organization for a broad set of services. Offshoring is a special case of outsourcing where the jobs that move actually leave one country and go to another. To help ensure the success of outsourcing: Choose an outsourcing vendor that is large and established. Jobs that are proprietary or require tight security should not be outsourced. It is a good idea to start small and monitor constantly. Outsourcing—This occurs when a firm is interested in a broad set of services performed by an outside organization. a. Offshoring is a special case of outsourcing where the jobs that move actually leave one country and go to another, like the example in the opening vignette. b. Steps to take that help ensure the success of outsourcing strategies include: - When choosing an outsourcing vendor, it is usually the bigger and older the better. - Jobs that are proprietary or require tight security should not be outsourced. - It is a good idea to start small and monitor constantly.
19
Affirmative Action Planning
It is important to plan for various subgroups within a labor force. A comparison of the proportion of workers in protected subgroups with the proportion that each subgroup represents is called a workforce utilization review. The steps required to execute an affirmative action plan are identical to the steps in the generic planning process discussed earlier. Work‑force utilization review is a comparison that examines the proportion of a company's workers in a subgroup to the proportion that each subgroup represents in the relevant labor market. This comparison is used to determine whether any subgroups may be underutilized. Underutilization occurs when the proportion of the subgroup in the organization is lower than that of the labor market. A voluntary affirmative action program may be implemented in which selection programs may be reviewed and revised to decrease the underutilization and/or increase the diversity of the organization and decrease the likelihood of a lawsuit. Steps for implementation are identical to the generic planning process discussed earlier.
20
The Human Resource Recruitment Process
Job Choice Job Choice Vacancy Characteristics Applicant Characteristics Human resource recruitment is any organizational activity that is designed to affect the number of people who apply for vacancies, the type of people who apply for them, and/or the likelihood that those applying for vacancies will accept positions if offered. The goal of recruitment is to ensure that when a vacancy occurs, the organization has a number of reasonably qualified applicants to choose from. Personnel Policies Recruiter Traits and Behaviors Recruitment Sources Recruitment Influences
21
Recruitment Sources Colleges and Universities - Internal Sources -
campus placement services Internal Sources - Faster, cheaper, more certainty Public & Private Employment Agencies - headhunters, can be expensive External Sources - New ideas and approaches JOBS JOBS Electronic Recruiting - the Internet Recruitment Sources—Since recruitment sources are unlimited, an organization must decide how to reach the best sources of potential employees. Internal versus External Sources—Relying on internal sources is useful since employees are well known and are knowledgeable about the organization and jobs. However, there may not be enough internal recruits 2. Direct Applicants and Referrals a. Direct applicants are people who apply for a vacancy without prompting from an organization. Referrals are people who are prompted to apply for a vacancy by someone within the organization. 3. Advertisements in newspapers and periodicals – typically are less effective than direct applicants or referrals and is more expensive. 4. Electronic Recruiting – The growth of the information highway as opened up new vistas for organizations trying to recruit talent. 5. Public and Private Employment Agencies—Agencies will search their computerized inventory of individuals searching for work for an organization at no charge. 6. Colleges and universities may be an important source for entry level professionals. To increase effectiveness, organizations employ internship programs to get early access to potential applicants and to assess their capabilities directly. Direct Applicants and Referrals - self selection, low cost Newspaper Advertising - large volume, low quality recruits
Similar presentations
