1. Human Resource Planning
Chapter 4
Human Resource Planning
References:
Strategic Human Resource Management by Jeffrey A. Mello
Strategic Human Resource Management by Charles R. Greer
Fundamentals of Human Resource Management by DeCenzo/Robbins
Resource Person: Furqan-ul-haq Siddiqui

2. The Great Pyramid of Giza

3. The Great Pyramid of Giza is one of the greatest mysteries of time.
When it was first built it was 145 meters tall, making it the tallest structure on the earth for over 4,300 years.
Egyptologists argue that even with all of the human and technological advancements achieved to date, it would be nearly impossible to replicate the production of these pyramids.
The HR planning of the project would be among the biggest challenges to face.

4. Archaeologists have their own methods for determining how many workers (mostly slaves) were employed at Giza, but a majority agree that the Great Pyramid was built by approximately 4,000 primary laborers—quarry workers, haulers, and masons.
These primary laborers would have been supported by 16,000 to 20,000 secondary workers—ramp builders, tool-makers, mortar mixers, and those providing back-up services such as supplying food, clothing, and fuel. These estimates suggest a total of 20,000 to 25,000 employees who labored for 22 years to build the pyramids.
Some Egyptologists claim that at least workers were engaged at a time in the construction of pyramids .
Quarry workers= mine workets
Haulers= transporters
Masons= cuting and fixing bricks etc.

5. Human Resource Planning (HRP)
Once the corporate and business unit strategies have been established (with the consent of HR professionals), then the
Next Stage HRP.
The HR strategy involves taking the organization’s strategic goals and objectives and translating them into a consistent, integrated, complementary set of programs and policies for managing employees.

6. Linking Organizational Strategy to HR Planning
STRATEGIC DIRECTION
HR LINKAGE
mission
determining organization’s business
objectives and goals
setting goals and objectives
strategy
determining how to attain goals and objectives
structure
determining what jobs need to be done and by whom
people
matching skills, knowledge, and abilities to required jobs

7. Human Resource Planning (HRP)
The first component of human resource management strategy is human resource planning.
All other functional HR activities, such as staffing, training, performance management, compensation, labor relations, and employee separation, are derived and should flow from the HRP process.

8. Human Resource Planning (HRP)
Human resource planning is a process by which an organization ensures that
it has the right number and kinds of people
at the right place
at the right time
capable of effectively and efficiently completing those tasks that will help the organization achieve its overall strategic objectives
A process in which an organization attempts to estimate the demand for labor and evaluate the size, nature and sources of supply which will be required to meet the demand.

10. The Relationship between HRP and Strategic Planning
HR planning must be linked to the organization’s overall strategy to compete domestically and globally, translated into the number and types of workers needed
An organization’s strategic decision to expand, redirect, diverge, divest, partner, or merge will have an associated effect on the HR expectations and plans of the organization.

11. When undertaking human resource planning, the organization considers the implications of;
its future plans on the nature and types of individuals it will need to employ and
the necessary skills and training they will require.
The organization will also need to assess its current stock of employees as well as those available for employment externally.
The key facet of human resource planning is that it is a proactive process.

12. As human resource planning involves making assumptions about the future, therefore plans should be flexible.
Changes to any planning initiatives should not be viewed as a weakness in the planning process.
Rather, they should be a positive sign that the organization is carefully monitoring its external environment and responding appropriately to any changes taking place.

13. Major Objectives of HRP

14. HR Planning Process

15. Human Resource Planning
Human Resource Planning Process External Environment Internal Environment
Strategic Planning
Human Resource Planning
Forecasting Human Resource Requirements
Comparing Requirements and Availability
Forecasting Human Resource Availability
Demand =
Supply
Surplus of Workers
Shortage of Workers
Layoff is the temporary suspension or permanent termination of employment of an employee or (more commonly) a group of employees for business reasons
Downsizing is a commonly used euphemism which refers to reducing the overall size and operating costs of a company, most directly through a reduction in the total number of employees.
Restricted Hiring, Reduced Hours, Early Retirement, Layoff, Downsizing
Recruitment
No Action
Selection

16. Here are some examples of immediate workforce concerns:
Immediate versus Long-Term Workforce Considerations When Determining the Appropriate Planning Horizon
Here are some examples of immediate workforce concerns:
Replacing personnel known to be retiring
Promoting employees within departments when positions become available
Filling vacancies due to turnover
Here are some examples of long-term workforce concerns:
Succession planning for key management positions
Developing employee skill sets to launch new products or processes
Working with colleges or universities to increase the number of graduates with a specific desirable educational background
Responding to future government or union policy changes

17. Types of Planning Aggregate Planning Succession Planning
Anticipating the needs for groups of employees in specific, usually lower level jobs and the general skills employees will need to ensure sustained high performance.
Succession Planning
Focuses on ensuring that key individual management positions in the organization remain filled with individuals who provide the best fit for these critical positions.

18. Aggregate Planning: Forecasting Demand
The single greatest indicator of the demand for employees is demand for the organization’s product or service.
This may be done through unit forecasting sometimes called bottom-up planning and top-down planning, or some combination of both (see next slide for other methods)
Bottom-up planning- involves “point of contact” estimation of the future demand for employees.
Top-down planning- Involves senior managers allocating a fixed payroll budget across the organizational hierarchy.
The demand for employee skills requirements must also be considered.

23. Aggregate Planning: Forecasting Supply
This process involves estimating the actual number of employees and determining the skills that these employees must have and whether their backgrounds, training, and career plans will provide a sufficient fit for the organization’s future plans.
The level and quantities of abilities, skills and experiences can be determined using a Skills Inventory.
A human resource information system (HRIS), especially computerized databases, updated at least annually, is a dynamic source of HR information.
Markov analysis can be used to create a transition probability matrix that predicts the mobility of employees within an organization.

26. Estimating Internal Labor Supply for a Given Unit

27. Balancing HR Supply and Demand
Severance

28. 1996 Croatia USAF CT-43 crash
On April 3, 1996, a United States Air Force CT-43 crashed in Croatia while on an official trade mission. The aircraft was carrying United States Secretary of Commerce Ron Brown and 35 other people (including 16 corporate executives).

29. The September 11 attacks
Often referred to as September 11th or 9/11were a series of coordinated suicide attacks on the United States on September 11, 2001 through four hijacked commercial passenger jet airliners.
The death toll of the attacks was 2,996, including the 19 hijackers with more then 6000 injuries.
The hijackers intentionally crashed two of the airliners into the Twin Towers of the World Trade Center in New York City, killing everyone on board and many others working in the buildings.

30. Succession Planning
The process for identifying and developing people with the potential to fill key positions in the company once the position is vacant. Succession planning increases the availability of experienced and capable employees that are prepared to assume these roles as they become available.

31. Succession Planning
Involves identifying key management positions the organization cannot afford to have vacant.
Purposes of Succession Planning
Facilitates transition when an employee leaves.
Identifies the development needs of high-potential employees and assists in their career planning.
In actual practice, many organizations fail to implement succession planning effectively.
Qualified successors may seek external career advancement opportunities if succession is not forthcoming.

32. Succession Planning “Replacement chart” identifies Key positions
Possible successors for each of these positions
Whether each potential successor currently has the background to assume the job responsibilities
The expected amount of time it will take for the potential successor to be ready

33. Succession Planning (cont’d)
Objective measuring— Specific skills, competencies, and experiences are missing

35. Succession Planning
However, traditional succession planning (replacement charting) has become too time-consuming and inflexible to meet the leadership continuity needs when facing:
Continual corporate restructurings, reengineering
The increasing use of team-based work systems
M&As
More partnerships, JVs, and strategic alliances
Continual massive downsizing in middle management ranks.

36. Succession planning not only helps to ensure that key management positions remain filled, but it also helps to identify critical training and development needs of both individual managers and the organization as a whole.
Succession planning clearly involves taking an investment-oriented approach toward employees.
Although the benefits of a well-developed succession planning program can be significant, such programs can also come at a significant cost to an organization.

37. One key issue that organizations must address in their succession planning is the extent to which these efforts will be public or confidential and whether those targeted for grooming for higher level assignments are informed of their “high-potential” status or not.

39. Mentoring
One key tool often used in succession planning is mentoring, whereby an individual executive or manager assumes responsibility for the development of an individual employee.
In selecting individuals to be mentored, an organization will usually select an individual who has proven high levels of performance and/or is high potential in the case of a new hire.
Mentoring programs may be formal or informal although Informal mentoring programs have been criticized as being less effective.