Chapter Four Human Resources Planning 4 Dessler, Cole, and Sutherland Human Resources Management in Canada Canadian Ninth Edition Chapter Four Human Resources Planning 4 © 2005 Pearson Education Canada Inc., Toronto, Ontario 4-1

Human Resources Planning -review human resources requirements to ensure: -the necessary number of employees -the necessary employee skills to meet organizational goals © 2005 Pearson Education Canada Inc., Toronto, Ontario

Human Resources Planning Forecast demand Analyze supply Plan and implement programs to balance supply and demand © 2005 Pearson Education Canada Inc., Toronto, Ontario

Human Resources Planning Importance of HR Planning (1 of 2) -achieve goals and objectives -plan staffing and development activities -achieve economies in hiring -make major labour market demands © 2005 Pearson Education Canada Inc., Toronto, Ontario

Human Resources Planning Importance of HR Planning (2 of 2) -anticipate and avoid staff shortages/surpluses -control/reduce labour costs -utilize employee capabilities effectively -establish employment equity goals/timetables © 2005 Pearson Education Canada Inc., Toronto, Ontario

Human Resources Planning Results of Inadequate HR Planning (1 of 3) -vacant positions create costly inefficiencies -overtime hours at premium cost -simultaneous layoffs and hiring -mass layoffs requiring: -severance pay -extended notice periods © 2005 Pearson Education Canada Inc., Toronto, Ontario

Human Resources Planning Results of Inadequate HR Planning (2 of 3) -vacant positions -costly inefficiency -overtime hours at premium cost -simultaneous layoffs and hiring -mass layoffs requiring: -extended notice periods -severance pay © 2005 Pearson Education Canada Inc., Toronto, Ontario

Human Resources Planning Results of Inadequate HR Planning (3 of 3) -ineffective training, development, career planning -turnover of high performers -problems with employment equity goals -inability to meet operational and strategic plans © 2005 Pearson Education Canada Inc., Toronto, Ontario

Human Resources Planning HR Planning Strategic Planning reciprocal and interdependent relationship -environmental scanning critical for both © 2005 Pearson Education Canada Inc., Toronto, Ontario

Human Resources Planning External Environmental Factors Monitored -economic conditions -market and competitive trends -government and legislative issues -social concerns -technological changes -demographic trends © 2005 Pearson Education Canada Inc., Toronto, Ontario

Elements of Effective HR Planning 4. Monitor and Evaluate Results 3. Implement Plans to Balance Supply and Demand 2. Forecast Future Internal/External Candidates (Supply) 1. Forecast Future HR Needs (Demand) © 2005 Pearson Education Canada Inc., Toronto, Ontario

Forecasting Future HR Needs (Demand) Forecasting based on: -demand for product/service -projected turnover -quality and nature of employees -decisions regarding product quality -plans for technological change -plans to reduce headcount -financial resources © 2005 Pearson Education Canada Inc., Toronto, Ontario

Forecasting Future HR Needs (Demand) Quantitative Approaches Trend analysis: review past employment levels Ratio analysis: ratio of business activity/employees Scatter plot: graph of business activity/employees Regression analysis: statistical relationship between business activity and employees Computerized forecasting techniques © 2005 Pearson Education Canada Inc., Toronto, Ontario

Forecasting Future HR Needs (Demand) Qualitative Approaches 1. Nominal Group Technique -experts meet face-to-face -group discussion facilitates exchange of ideas -possible subjectivity, group pressure 2. Delphi Technique -experts work independently -wide range of views -difficult to integrate diverse opinions © 2005 Pearson Education Canada Inc., Toronto, Ontario

Forecasting Future HR Supply Skills Inventories manual or computerized records used to identify internal candidates for transfer or promotion summary of each employee’s: education experience interests skills © 2005 Pearson Education Canada Inc., Toronto, Ontario

Forecasting Future HR Supply Management Inventories summary of each management employee’s: background qualifications interests skills managerial responsibilities duties in current/previous positions management training © 2005 Pearson Education Canada Inc., Toronto, Ontario

Forecasting Future HR Supply Replacement Charts visual representations of likely internal replacement employees for each position data on each candidate includes: age present performance rating promotability status © 2005 Pearson Education Canada Inc., Toronto, Ontario

Forecasting Future HR Supply Replacement Summaries lists of likely internal replacement employees for each position data on each candidate includes: relative strengths and weaknesses current position performance promotability age experience © 2005 Pearson Education Canada Inc., Toronto, Ontario

Forecasting Future HR Supply Computerized Skills Inventory Formal education Industry experience Work experience Product/service knowledge Training courses Language skills Relocation limitations Career interests Performance ratings © 2005 Pearson Education Canada Inc., Toronto, Ontario

Forecasting Future HR Supply Succession Planning analyze demand for managers/professionals audit existing executives, project future supply individual career planning/career counseling accelerated promotions performance-related training and development planned strategic recruitment © 2005 Pearson Education Canada Inc., Toronto, Ontario

Forecasting Future HR Supply Forecasting Supply of External Candidates general economic conditions national labour market conditions local labour market conditions occupational market conditions © 2005 Pearson Education Canada Inc., Toronto, Ontario

Balancing Supply and Demand Dealing with a Labour Surplus hiring freeze attrition buy-out and early retirement programs reducing hours (job sharing, reduced workweek, part-time work, work sharing) internal transfers layoffs (reverse seniority or juniority) termination with outplacement assistance © 2005 Pearson Education Canada Inc., Toronto, Ontario

Balancing Supply and Demand Dealing with a Labour Shortage overtime hiring temporary employees subcontracting work external recruitment transfers promotions © 2005 Pearson Education Canada Inc., Toronto, Ontario

HRP Evaluation Specific Criteria Assessed Actual staffing levels vs. staffing requirements Ratio of internal placement to external hiring Actual internal mobility flow vs. career plans Internal mobility flow vs. turnover Employment equity achievements vs. goals © 2005 Pearson Education Canada Inc., Toronto, Ontario