Human Resource Planning: Importance and Purpose

Shortage of qualified resources to fill jobs Wider span of retirement options Need for life-long learning Resistance of employees to change and organizational demand for it Reduce personnel costs by anticipating shortages and surpluses Provide informed base for planning employee development Provide equal opportunities

Levels of Strategic Planning

Corporate level:Board of Directors, CEO, Vice Presidents Business Level
Product Division 1 Product Division 2

Functional Level
HR Division, Marketing Division, Finance, etc

Link to Organizational Strategy

How do HR decisions affect external standards (EEO compliance, OSHA, community relations)? How do HR decisions affect internal standards? Do financial markets react to HR decisions, e.g., layoffs, hiring, training?

Human Resource Department & Assessing Added Value

Stakeholder opinions and perceptions Auditing human resource activities HR budgets Activity, cost or headcount ratios Human resource accounting -putting a $$ value on HR activities Human Resource competencies

Human Resource Plan

Organizational Goals HR Needs Forecast Employee Information

Monitor Results

HR Availability Projections

Implement Program

Generate,Test Alternatives

Analysis of HR Gaps

Employment Planning
Demand analysis Linking business plans to hr requirements Internal supply analysis External supply analysis Reconciling Supply and demand Activities for shortages and surpluses

Human Resource Planning Process

External Environment Internal Environment Strategic Planning

HR Planning Forecasting HR Requirements Comparing Requirement & Availability Forecasting HR Availability

Human Resource Planning Process, Cont.

Comparing Reqs & Availability Demand = Supply Surplus of Workers

Shortage of Workers

Status Quo

Retirement Layoff Downsize

Hire Overtime

Replacement Chart
Manager Training & Dev.: Ms. Jones Candy Kane: 0 Austin Ford: 0 Mark Time:2

Readiness Code 0= ready now 1=ready 1 yr. 2=ready 2 yrs

P. Button: 1 E. Silver: 2 C. Kane: Development

M. Monroe: 0 J. Russell: 0 S. Temple: 1 A. Ford: Training.

M. McGuire: 0 S. Sosa: 1 M. Time: Labor Rel.

Backwards & Forwards

Summing up Today we explored the links between organizational strategy and Human Resource Planning, at bench marks for the HR Department and at techniques of employment planning but for expansion and for downsizing
Looking ahead: Next time we take an in-depth look at Human Resource Information Systems. What types of information are typically stored, how these types of information can be used to identify problems and to make informed decisions.