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Human resource

planning and human


resource information
systems

Chapter 5

Copyright 2003 McGraw-Hill Australia Pty Ltd.


PPTs t/a Human Resource Management in Australia: Strategy-People-Performance
by De Cieri & Kramar 1
Human resource planning (HRP)

Objectives
Discuss how to align a companys strategic
direction with its human resource planning.
Determine the labour demand of workers
in various job categories.
Discuss the advantages and disadvantages
of various ways of eliminating a labour
surplus and avoiding a labour shortage.

Copyright 2003 McGraw-Hill Australia Pty Ltd.


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Human resource planning (HRP)
The process through which organisational goals
are translated into human resource goals,
concerning with staffing levels and allocation.

Human resource planning involves forecasting


human resource needs for an organisation,
and planning the necessary steps to meet
these needs.

Copyright 2003 McGraw-Hill Australia Pty Ltd.


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Figure 5.1 Overview of the HRP
process

Copyright 2003 McGraw-Hill Australia Pty Ltd.


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Forecasting

The attempt to determine the supply


of and demand for various types of human
resources, in order to predict future labour
shortages or surpluses in areas within the
organisation.
Determining labour demand
Determining labour supply
transitional matrices

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by De Cieri & Kramar
Copyright 2003 McGraw-Hill Australia Pty Ltd.
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Goal setting and strategic
planning
Reducing an expected labour surplus, e.g.
Downsizing
Early retirement programs
or
Avoiding an expected labour shortage, e.g.
Employing temporary workers
Outsourcing
Overtime and expanding worker hours

Copyright 2003 McGraw-Hill Australia Pty Ltd.


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Downsizing

The planned elimination of large numbers


of personnel designed to enhance
organisational effectiveness.
Workforce reduction
Organisational redesign
Systemic change

Copyright 2003 McGraw-Hill Australia Pty Ltd.


PPTs t/a Human Resource Management in Australia: Strategy-People-Performance
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by De Cieri & Kramar
Major reasons for downsizing

Cost reduction
Introduction of new technology
Mergers and acquisitions leading to
reduced need for bureaucracy
Globalisation and changing location
of business

Copyright 2003 McGraw-Hill Australia Pty Ltd.


PPTs t/a Human Resource Management in Australia: Strategy-People-Performance
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by De Cieri & Kramar
Major reasons for the failure of
downsizing
Initial cost savings but long-term negative
effects
Loss of people who are irreplaceable
assets
Survivor syndrome: loss of motivation,
self-absorption, risk-aversion
Survivors seek new employment
Reputational damage

Copyright 2003 McGraw-Hill Australia Pty Ltd.


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Program implementation and
evaluation
Accountability
Authority and resources available to
accomplish the stated goals
Regular progress reports on implementation
Evaluation of results

Copyright 2003 McGraw-Hill Australia Pty Ltd.


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Formal HRP is more likely in
organisations that:
Are larger
Have greater overall business planning
sophistication
Have top management support for human
resource planning
Have more involvement of human resource
managers in the business planning process
Have greater integration across human
resource activities.
Copyright 2003 McGraw-Hill Australia Pty Ltd.
PPTs t/a Human Resource Management in Australia: Strategy-People-Performance
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A strategic approach to HRP
includes:
Top management and HR managers desire
proactive involvement of HRM in the achievement
of organisational goals
Integration of employee needs and wishes for
career development with organisational goals
Coordination across HRM activities in light of
organisational strategies and goals
Adherence to principles of equal opportunity
Focus on planning at the organisational level,
not only at industry or regional level.

Copyright 2003 McGraw-Hill Australia Pty Ltd.


PPTs t/a Human Resource Management in Australia: Strategy-People-Performance
5-13
by De Cieri & Kramar
Summary: HRP

When managed well, human resource


planning can enhance the success of the
organisation, while minimising difficulties
resulting from poorly anticipated labour
surpluses or shortages.

Copyright 2003 McGraw-Hill Australia Pty Ltd.


PPTs t/a Human Resource Management in Australia: Strategy-People-Performance
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by De Cieri & Kramar
Human resource information
systems (HRIS)
Objectives
Discuss the types of technology that
can improve the efficiency and
effectiveness of HR.
Discuss human resource information
systems and their various applications
to HR activities.

Copyright 2003 McGraw-Hill Australia Pty Ltd.


PPTs t/a Human Resource Management in Australia: Strategy-People-Performance
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by De Cieri & Kramar
Human resource information
systems (HRIS)
A system used to acquire, store,
manipulate, analyse, retrieve and distribute
information related to a companys human
resources.
May lead to e-HRM or virtual HRM?

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Factors leading to use of more
sophisticated HRIS
Development of increasingly complex and
comprehensive IT systems
Economic pressures in 1980s and 1990s
Increasing demands by government for
organisations to collect employee data

Copyright 2003 McGraw-Hill Australia Pty Ltd.


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HRIS are used for three broad
functions:
Transaction processing, reporting and
tracking
Decision support systems
Expert systems

Copyright 2003 McGraw-Hill Australia Pty Ltd.


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Technology: advantages or
disadvantages?
Employees gain complete control over their
training and benefits enrolments (self-service)
A paperless employment office can be created
Streamlining the HR departments work
Technology can provide knowledge-based
decision support
Employees and managers select the type of
media they want to use to send and receive
information
Work can be completed at any time, any
place, day or night
Closer monitoring of employees work

Copyright 2003 McGraw-Hill Australia Pty Ltd.


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by De Cieri & Kramar
HR technologies
Interactive voice technology
Internet
Networks and client-server architecture
Relational databases
Imaging
CD-ROM and laser disc
Expert systems
Groupware
Intranets

Copyright 2003 McGraw-Hill Australia Pty Ltd.


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HRIS: examples of applications
for HRM
HR planning
Succession planning
Workforce profile analysis
Workforce dynamics analysis
Staffing
Applicant recruiting and tracking
Employee database development

Copyright 2003 McGraw-Hill Australia Pty Ltd.


PPTs t/a Human Resource Management in Australia: Strategy-People-Performance
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HRIS: examples of applications
for HRM (continued)
Performance management
Learning and career development
Compensation and benefits
Payroll
Job evaluation
Salary surveys
Salary planning
International compensation
Benefits management

Copyright 2003 McGraw-Hill Australia Pty Ltd.


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Summary: HRIS

Increasingly, organisations will depend on


more sophisticated HRIS in order to support
human resource activities.
Key drivers will be:
Increasing globalisation of business
Development of more flexible, non-traditional
organisation structures
Development of information technology.

Copyright 2003 McGraw-Hill Australia Pty Ltd.


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