1. Human Resource Management Lecture 3 Human Resource Planning MGT 350 1

2. Last Lecture – Job Analysis – Job Description – Job specification – Methods of Data collection for Jobs. – Importance of Job Analysis 2

3. Human Resource Management Process

4. HRP Human resources planning (HRP) is the process of forecasting future human resources requirements to ensure that the organization will have the required number of employees with the necessary skills to meet its strategic objectives. Effective HRP helps an organization achieve its strategic goals and objectives, anticipate and avoid shortages and surpluses of human resources, as well as control or reduce labor costs.

5. HRP Process

6. FORECASTING THE AVAILABILITY OF CANDIDATES (SUPPLY) Internal—present employees who can be trained, transferred, or promoted to meet anticipated needs. External—people in the labor market not currently working for the organization, including those who are employed elsewhere and those who are unemployed who can be expected to join the organization to meet anticipated needs.

7. Environment scanning Environment scanning involves assessing factors that affect the external labor market as well as an organization’s ability to find and secure talent from outside of the organization.

8. Skills inventories Skills inventories contain comprehensive information about the capabilities of current employees. Data gathered for each employee include name, age, date of employment, current position, present duties and responsibilities, educational background, previous work history, skills, abilities, and interests.

9. Replacement charts Replacement charts are typically used to keep track of potential internal candidates for the firm’s most critical positions.

11. Trend Analysis Trend analysis involves studying the firm’s employment levels over the last three to five years to predict future needs. Year Employees 2010 100 2011 110 2012 121 2013 133 2014 146

12. Succession Plans Forecasting the availability of inside candidates is particularly important in succession planning. Family Business Example Succession planning refers to the plans a company makes to fill its most important executive positions.

13. CORRELATIONS/PROJECTIONS SIZE OF HOSPITAL NUMBER OF NURSES 200240 300260 400470500 600620 700660 800820 900860

14. VACANCY ANALYSIS LEVEL# EMPLTURN %Expected VacanciesExpected to Remain TOP MGMT10020 % 20 80 MID MGMT20024 % 48152 LOW MGMT60022 %132468 SKILLED W60016% 96504 ASSY WKRS200012 %2401760 TOTALS35005362964 AVERAGE TURNOVER PERCENTAGE = 536 / 3500 =.1531

15. SUCCESSION PLANNING REPLACEMENT CHART FOR EXECUTIVE POSITIONS - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - POSITION WESTERN DIVISION SALES MANAGER DANIEL BEALERWestern Division Sales MgrOutstanding Ready Now PRESENTPROMOTION POSSIBLE CANDIDATES CURRENT POSITIONPERFORMANCEPOTENTIAL Candidate 1Western Oregon Sales ManagerOutstandingReady Now Candidate 2 California Sales ManagerOutstandingNeeds Training Candidate 3Idaho/Utah Sales Manager SatisfactoryNeeds Training - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

16. HUMAN RESOURCE INFORMATION SYSTEMS (HRIS) PERSONAL DATA Age, Gender, Dependents, Marital status, etc EDUCATION & SKILLS Degrees earned, Licenses, Certifications Languages spoken, Specialty skills Ability/knowledge to operate specific machines/equipment/software JOB HISTORY Job Titles held, Location in Company, Time in each position, etc. Performance appraisals, Promotions received, Training & Development MEMBERSHIPS & ACHIEVEMENTS Professional Associations, Recognition and Notable accomplishments CAPACITY FOR GROWTH Potential for advancement, upward mobility and growth in the company

17. PERSONNEL RATIOS Past experience has developed these ratios for recruiting a Cost Accountant: FOR EVERY 12 APPLICATIONS RECEIVED, ONLY 1 LOOKS PROMISING ENOUGH TO INVITE FOR AN INTERVIEW OF EVERY 5 PERSONS INTERVIEWED, ONLY 1 IS ACTUALLY OFFERED A POSITION IN THE ORGANIZATION OF EVERY 3 JOB OFFERS MADE, ONLY 2 ACCEPT THE POSITION OF EVERY 10 NEW WORKERS WHO BEGIN THE TRAINING PROGRAM, ONLY 9 SUCCESSFULLY COMPLETE THE PROGRAM THUS:100 APPLICATIONS MUST BE RECEIVED, so that 8.33 JOB INTERVIEWS CAN BE HELD, so that 1.67 JOB OFFERS CAN BE MADE, and 1.11 PEOPLE MUST BE TRAINED, so that we get ONE NEW COST ACCOUNTANT!!!

18. MARKOV ANALYSIS

19. Qualitative Approaches In contrast to quantitative approaches, which use statistical formulas, qualitative techniques rely solely on expert judgments. Two approaches used to forecast human resources demand (or supply) are the nominal group and Delphi techniques.

20. Nominal Group Technique 1.Managers and line managers meet face to face. 2.Each member develop an idea (demand/training). 3.All ideas are presented (no discussion is allowed). 4.Clarification is sought by all members (discussion) 5.Evaluation/ranking of each idea in private.

21. Delphi Technique 1. The problem is identified (in this case, estimates of demand) and each group member is requested to submit a potential solution by completing a carefully designed questionnaire. Direct face-to-face contact is not permitted. 2. After each member independently and anonymously completes the initial questionnaire, the results are compiled at a centralized location. 3. Each group member is then given a copy of the results. 4. If there are differences in opinion, each individual uses the feedback from other experts to fine-tune his or her independent assessment. 5. The third and fourth steps are repeated as often as necessary until a consensus is reached.

22. Summary What is HRP Supply measurement Demand Measurement FORECASTING HR REQUIREMENTS (DEMAND ANALYSIS) (Trying to predict future staffing needs) Sales Projections Vacancy Analysis (projected turnover) FORECASTING HR AVAILABILITY (SUPPLY ANALYSIS) (Predicting worker flows and availabilities) Succession or Replacement Charts Skills Inventories (use of HRIS) Markov Analysis (Transition Matrix) Personnel Ratios Regression Analysis Trend Analysis 22