2. chapter 5
Human Resource Planning

3. Human Resource Planning
Both a process and a set of plans
How organizations assess the future supply of and demand for human resources
Provides mechanisms to eliminate any gaps between supply and demand
Determines the number and types of employees to be recruited into the organization or phased out of it

4. Factors Affecting Planning
Goals of the controlling interests in the organization
Government policies
Changing demographics and the future composition of the workforce

5. Strategic and Human Resource Planning
Strategic Planning –an organization’s decision about:
What it wants to accomplish (its mission)
How it wants to go about accomplishing it
HR planning is important for developing a strategic plan
HR planning is critical to the implementation of the strategic plan

6. Strategic Human Resource Management
The acknowledgement that HR policies and practices have critical linkages with an organization’s overall strategy
Central premise is that HR policies will have direct effects on an organization’s profitability
HR must “fit” strategically with the mission of the organization

7. The Human Resource Planning Process
Strategic Planning
HR Demand
HR Supply
Technology forecasts Economic forecasts Market forecasts Organizational planning Investment planning Annual operating plans
Annual employment requirements:
numbers
skills
occupation categories
Existing employment inventory:
After application of expected loss and attrition rates
Compared
with
If none
Variances
End
If Surplus
If Shortage
Layoff Retirement Termination
Overtime Recruitment Contractors
Action decisions
End
End

8. Four Stages of HR Planning
Situation analysis or environmental scanning
Forecasting demand for human resources
Analysis of the supply of human resources
Development of plans for action

9. Situation Analysis and Environmental Scanning
Strategic plan must adapt to environmental circumstances
HRM is a primary mechanism to be used during the adaptation process
e.g., rapid technological changes in the environment demand employees with new skills
an effective HR plan that supports recruitment and selection allows the firm to move quickly to remain competitive

10. Forecasting Demand for Employees
The Expert Estimate
Delphi technique
Nominal group technique (NGT)
Trend Projection
Markov chain analysis
Regression analysis
Unit-Demand Forecasting

11. Analyzing the Current Supply of Employees
Skills Inventory
Data summarizing the employee’s past
Data summarizing status of present skills
Data that focus on the future
Management Inventory
Maintaining the Skills Inventory
Interview
Questionnaire
Data storage and maintenance

12. Action Decisions in Human Resource Planning: Shortage of Employees
Overtime
Training and promotions of present employees
Recruitment and training of less-skilled employees
Recall of employees previously laid off
Use of part-time workers
Use of contingent workers

13. Action Decisions in Human Resource Planning:
4. Demotions
5. Layoffs
6. Terminations
2. Early
retirements
3. Creation of
work
1. Attrition
Surplus of Employees 5

14. Human Resource Information Systems (HRIS) (1 of 2)
Integrated approach to acquiring, storing, analyzing, and controlling the flow of information about an organization
Useful in nearly all HRM functions
Can increase efficiency and response times of labor/time intensive human resource activities

15. Human Resource Information Systems (HRIS) (1 of 2)
Specialized HRIS applications
Integrated HRIS for use by all employees
Executive information system (EIS)
Succession planning

16. Safeguarding Privacy in an HRIS (1 of 2)
Review information-gathering practices to determine the best way to collect data
Limit the information collected to what is relevant to a specific business decision
Inform employees about the types of information kept on file and how that information is used
Let employees inspect and (if necessary) correct the information maintained on them

17. Safeguarding Privacy in an HRIS (2 of 2)
Keep sensitive information separate from other records
Limit the internal use of personal information to those activities where it is necessary
Disclose personal information about an employee to outsiders only after the employee consents

18. Summary (1 of 3)
There is no one best method for conducting HR planning
Methods and techniques all differ from organization to organization
Many companies do not devote enough time and energy to the HR planning process

19. Summary (2 of 3)
An effective HR plan should work in partnership with a strategic plan
Human resource planning can be an integral part of the HRM program
It is directly related to: recruitment, selection, training, and promotion

20. Summary (3 of 3)
By matching supply and demand, the organization can know:
how many people of what type it needs to fill positions from within (by promotion and training)
how many people it must acquire from outside (by recruiting and selection)