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Definition
The process by which managers ensure that they have the right number and kinds of people in the right places, and at the right times, who are capable of effectively and efficiently performing their tasks.

Human Resource Planning (HRP)

Is the first component of HRM strategy All other functional HR activities are derived from and flow out of the HRP process. Has its basis in considerations of future HR requirements in light of present HR capabilities and capacities. Is proactive in anticipating and preparing flexible responses to changing HR requirements. Has both an internal and external focus.

Human Resource Planning (HRP)

How many people do we need? Product Demand X Labor Productivity Turnover Where are they coming from? Internal Labor Market
Existing employees

External Labor Market

Potential employees

Major Objectives of HRM Planning

Steps in HR planning
Prevent overstaffing and understaffing Right skills in place Monday morning Ensure responsiveness to change Alignment of all HRM systems Gain agreement between line and management on goals and objective

Assessing Current Human Resources

Assessing Future Human Resource Needs

Developing a Program to Meet Needs

Source: Robinson et al, 2005

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Current Assessment
Human Resource Inventory
A review of the current make-up of the organizations current resource status Job Analysis
An assessment that defines a job and the behaviors necessary to perform the job
Knowledge, skills, and abilities (KSAs)

Current Assessment (Contd)

Job Description
A written statement of what the job holder does, how it is done, and why it is done.

Job Specification
A written statement of the minimum qualifications that a person must possess to perform a given job successfully.

Requires conducting interviews, engaging in direct observation, and collecting the self-reports of employees and their managers.

Meeting Future Human Resource Needs

Supply of Employees Demand for Employees

HR Forecasts
Labor demand Labor supply
Labor markets Specific shortages Strategic Planning Succession Planning Managing Retention

Factors Affecting Staffing

Labor Demand Labor Supply

Strategic Goals Forecast demand for products and services Availability of knowledge, skills, and abilities

Forecasting Demand for Employees

Consider the firms strategic plans likely impact on the demand for the firms products or services. Assumptions on which the forecast is predicated should be written down and revisited when conditions change. Unit forecasting (bottom-up (bottom up planning) involves point point of contact estimation of the future demand for employees. Top-down forecasting involves senior managers allocating a fixed payroll budget across the organizational hierarchy.

Forecasting Demand for Employees

Budgeting Statistical Techniques
Trend analysis Regression Probability models

Qualitative Techniques
Ask the experts p / Delphi p Technique q

Needs are then compared to current workforce to identify gaps and decide staffing actions. Take into account:
Productivity and FTE employees Scheduling and shifts High volume / traffic times

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Developing a program to meet those future needs

Recruiting new employees Developing existing employees Retaining key employees Restructuring or redeployment Outsourcing functions Using contingent employees Reassigning shifts Decruitment