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Human Resource Planning

By: Dr Hassan Al-Dhaafri


Chapter 5 in the book

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Human Resource Planning

 Human resource planning (HRP)


 Process of determining the human resource
needs of an organization and ensuring that the
organization has the right number of qualified
people in the right jobs at the right time
 “Workforce planning”

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Human Resource Planning

Need for HRP is due to the


significant lead time that
normally exists between the Not always possible to go
recognition of the need to out and find an appropriate
fill a job and securing a person overnight.
qualified person to fill that
need.

Effective HRP can reduce


turnover by keeping
employees apprised of their
career opportunities within
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How HRP Relates to
Organizational Planning

Success of HRP depends on how


closely the human resource
department can integrate
effective people planning with the
organization’s business planning
process

A common error occurs when


human resource planners focus on
short-term replacement needs and
fail to coordinate their plans with
strategic and long-term plans of
the organization
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How HRP Relates to
Organizational Planning

To accomplish this, the planning process should provide:

 A clear statement of the organization’s mission


 A commitment from staff members to the
mission
 An explicit statement of assumptions
 A plan of action in light of available or
acquirable resources, including trained and
talented people
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Linking HRP to the Business
Strategy

Table 5.1

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Strategy-Linked HRP

 Human resource  Line managers, in


managers serve as turn, have a
consultants to line responsibility to
managers concerning respond to the
the people- business
management implications of
implications of human resource
business objectives objectives and
and strategies. strategies

Strategy-linked HRP
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based on a close working relationship between human
resource staff and line managers
Time Frame of HRP

Organizational plans are frequently classified as:


 Short-range (zero to two years)
 Intermediate range (two to five years)
 Long-range (beyond five years)

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HRP – An Evolving Process
 Stage 1
Companies have no long-term business plans, and do little or no human
resource planning
 Stage 2
Companies have a long-term business plan, but tend to be skeptical of
HRP
 Stage 3
Companies engage in some aspects of human resource planning, but these
efforts are not integrated into long-range business plan
 Stage 4
Companies do a good deal of human resource planning, and their top
managers are enthusiastic about the process
 Stage 5
Companies treat human resource planning as an important and vital part
of their long-term business plan
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Steps in Human Resource
Planning Process

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Environmental Factors Affecting
Human Resource Needs

Changes in
Government
the
influences
workforce

General
The
economic
competition
conditions

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Methods of Forecasting
Human Resource Needs
1. Managerial estimates
Judgmental method of forecasting that calls on
managers to make estimates of future staffing needs
2. Scenario analysis
Using workforce environmental scanning data to
develop alternative workforce scenarios
3. Benchmarking
Thoroughly examining internal practices and
procedures and measuring them against the ways
other successful organizations operate.
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Methods of Forecasting
Human Resource Needs
4. Delphi technique
 Uses a panel of experts to make initially independent
estimates of future demand.
 Intermediary then presents each expert’s forecast and
assumptions to the other members of the panel.
 Each expert is then allowed to revise his or her forecast
as desired.
 Process continues until some consensus or composite
emerges.

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Video: HR Management: Planning & Forecasting
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Skills Inventory Categories
Personal data
Skills
Special qualifications
Salary and job history
Company data
Capacity of individual
Special preferences of the individual
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Skills Inventory

 Advantages
 Furnishes a means to quickly and
accurately evaluate skills
available within organization
 Helps determine promotion and
transfer decisions
 Aids in planning future employee
training and management
development programs

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Adding Human Resources

 Contingency workers and outsourcing have the


advantage of allowing the organization to easily
accommodate swings in demand for human
resources

 Agencies often provide both testing and training


for employees before they are hired

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Reducing Human Resources -
Downsizing
Reclassification

Transfer

Work sharing

Job sharing
Layoffs

Terminations

Early retirement

Voluntary resignation
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Other Approaches for Reducing
Human Resource Costs
 Reclassification  Transfer
 demoting an  involves moving the
employee, employee to another
downgrading job part of the
responsibilities, or organization.
a combination of
the two.
 Work sharing  Job sharing
 seeks to limit  occurs when two
layoffs and or more part-time
terminations individuals
through the perform a job that
proportional would normally be
Spring2018/HRMreduction of hours held by one
5-19 full-

among employees time person


Succession Planning
 Succession planning
 Technique that identifies specific people to fill future
openings in key positions throughout the
organization.

1. Define what competencies people must possess to move the


organization forward both now and in the foreseeable future.
2. Focus on critical positions
3. Evaluate the current talent pools; distinguish between
current performance and future potential
Identify individual development needs.
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4.
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Human Resource Information
System (HRIS)
 Human resource information system (HRIS)
 A database system that contains all relevant human resource
information and provides facilities for maintaining and accessing
these data.

 Advantages
 Its potential for producing more accurate and more timely
information for operating, controlling, and planning purposes than
manual or payroll-based systems can produce
 Gets rid of paper files usually maintained
 New software packages are much more user-friendly and, thus,
require less training and time to implement

 Disadvantages
 Its financial cost and labor requirements for implementing
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system –
these problems have greatly diminished as a result of new software
Applications for HRIS

 Clerical  Succession planning


 Applicant search  Flexible-benefits
expenditures administration
 Risk management  Compliance
 Training management  Attendance reporting
 Training experiences and analysis

 Financial planning  Accident reporting


 Human resource
 Turnover analysis
planning

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Important QnA

Please refer to this link for questions and answers of this


topic:
 http://work911.com/planningmaster/faq/indexhrplanni
ng.htm

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