Moammad Algarni Lecturer Chapter 5 Human Recourse Planning

What is HRP? Human Resource Planning Process of determining human resource needs of an organization and ensuring that the organization has the right number of qualified people in the right jobs at the right time.

Human Resource Planning What is HRP? It is “the system of matching the supply of people internally (existing employees) and externally (those to be hired or searched for) with openings the organization expects to have over a given time frame” 5-3

How HRP Relates to Organizational Planning  Focuses on how organization can become better positioned and equipped to compete in its industry  To accomplish this, the planning process should provide 1. A clear statement of the organization’s mission 2. A commitment from staff members to the mission 3. An explicit statement of assumptions 4. A plan of action in light of available or acquirable resources, including trained and talented people 5-4 Human Resource Planning

Time Frame of HRP  Organizational plans are frequently classified as  Short-range (0to 2years)  Intermediate range (2to 5years)  Long-range (over 5 years) 5-5 Human Resource Planning

Factors Affecting the Time Frame of HRP 5-6 Human Resource Planning

4 Steps in HRP Process  Determining impact of organization’s objectives on specific organizational units  Defining skills, expertise, and total number of employees (demand) required to achieve organizational and departmental objectives  Determining additional human resource requirements in light of organization’s current human resources  Developing action plans to meet expected human resource needs 5-7 Human Resource Planning

Steps in Human Resource Planning Process 5-8 Human Resource Planning

Cascade Approach to Setting Objectives 5-9 Human Resource Planning

Environmental Factors Affecting Human Resource Needs Many external factors influence organization’s objectives and human resource needs  Government influences  Laws and regulations imposed by local, state, and federal governments  General economic conditions  Recession or economic boom  Interest rates and level of unemployment  Competition – Emergence or departure of  Direct competitors  Businesses that compete for same labor and other resources  Changes in workforce  Changes in technology 5-10 Human Resource Planning

Developing Action Plans – Adding Human Resource  Permanent hires – Plans to be made to recruit, select, orient, and train needed personnel, in given time frame  Lower cost of employment – Often do not have same benefits as permanent employees  Temporary agencies - Often provide testing and training for employees before they are hired 5-11 Human Resource Planning

Developing Action Plans – Reducing Human Resources Other approaches for reducing human resource costs  Approaches that do not result in employees leaving organization include reclassification, transfer, and work sharing  Reclassification  Involves demoting an employee, downgrading job responsibilities, or a combination of the two  Usually accompanied by a reduction in pay  Transfer  Involves moving employee to another part of the organization  Work sharing  Seeks to limit layoffs and terminations through proportional reduction of hours among employees (i.e., all employees in a department could be cut back to 35 hours per week instead of 40) 5-12 Human Resource Planning

Organizational and Human Resource Planning 5-13 Human Resource Planning