PGP 2007-09

Understanding the meaning and importance of HRP y Linking fit between strategy and Organizational Objectives y Strategic flexibility in HRP planning y Understanding the Issues in HRP y To study the objectives of HRP y Knowing to design the Hrp Model y To know the techniques of demand and supply forecasting y Designing the HR plan after formulating HRP
y
PGP 2007-09

What do you mean, we re going to lose the government contract? asked the company president, Ted Sloane. we re going to lose it, said the human resource management vice president, Anne Wilson. we don t have trained personnel to meet the contract specifications. We have to furnish records to show that we have enough employees with the right technical specifications who meet the government s equal employment opportunity goals.
PGP 2007-09

I don t have those kinds of records available at a moment s notice. You know I asked you to let me set up a human resource information system (HRIS). Why didn t we get around it? Ted didn t know what Anne had in mind. Everything he ever heard about computer systems suggested that they were expensive and complex. Now he wanted to learn more about HRIS s.

PGP 2007-09

Human resource planning is the process of anticipating and making provision for the movement of people into, within, and out of an organization . Its purpose is to deploy these resources as effectively as possible, where and when they are needed, include anticipating labour shortages and surpluses, providing more employment opportunities for women, minorities and the disabled, and mapping out employee training programmes
PGP 2007-09

y y y

y y

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.

PGP 2007-09

Factors That Determine HR Plans

PGP 2007-09

2 7

Strategic Analysis
What human resources are needed and what are available?

Strategic Formulation
What is required and necessary in support of human resources?

Strategic Implementation
How will the human resources be acquired and allocated?
Human Resource Planning Strategic Planning

PGP 2007-09

Preventing understaffing and overstaffing y Ensure the organisation has the right employees with the right skills at the right place at the right time y Ensure the organisation is responsive to changes in its environment y Provide direction and coherence to all HR activities and systems
y

PGP 2007-09

. PGP 2007-09

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HR Strategies The means used to anticipate and manage the supply of and demand for human resources. Provide overall direction for the way in which HR activities will be developed and managed.
Overall Strategic Plan

Human Resources Strategic Plan

HR Activities
PGP 2007-09

Better view of the HR dimensions of business decisions Lower HR costs through better HR management. More timely recruitment for anticipate HR needs More inclusion of protected groups through planned increases in workforce diversity. Better development of managerial talent

y y y

. PGP 2007-09

Aggregate Planning Anticipating the needs for groups of employees in specific, usually lower level jobs and the general skills employees will need to ensure sustained high performance. y Succession Planning Focuses on ensuring that key individual management positions in the organization remain filled with individuals who provide the best fit for these critical positions.
y

PGP 2007-09

Environmental Scanning The systematic monitoring of the major external forces influencing the organization. Economic factors Competitive trends Technological changes Political and legislative issues Social concerns Demographic trends

PGP 2007-09

Auditing Jobs and Skills What jobs exist now? How many individuals are performing each job? How essential is each job? What jobs will be needed to implement future organizational strategies? What are the characteristics of anticipated jobs?
. PGP 2007-09

Organizational Capabilities Inventory HRIS databases sources of information about employees knowledge, skills, and abilities (KSAs) Components of an organizational capabilities inventory Workforce and individual demographics Individual employee career progression Individual job performance data
. PGP 2007-09

FORECASTING DEMAND Internal Considerations Techniques Technology Trend analysis Financial resources Managerial Organizational growth estimates Mgmt. philosophy Delphi technique

BALANCING SUPPLY AND DEMAND

(Shortage) Recruitment
FullFull-time / Part-time Part-

Techniques
HR inventories Markov analysis Skill inventories Replacement charts Succession Planning

External Considerations
Wkforce changes Mobility Govt policies Unemployment

(Surplus) Reductions
Layoffs Terminations Demotions Retirements

FORECASTING SUPPLY
PGP 2007-09

Forecasting The use of information from the past and present to identify expected future conditions. y Forecasting Methods Judgmental Estimates asking managers opinions, top-down or bottom-up Rules of thumb using general guidelines Delphi technique asking a group of experts Nominal groups reaching a group consensus in open discussion
y
. PGP 2007-09

Forecasting Methods (cont d) Mathematical Statistical regression analysis how the dependent variable reacts to an independent variable. Productivity ratios units produced per employee Staffing ratios estimates of indirect labor needs Forecasting Periods Short-term less than one year Intermediate up to five years Long-range more than five years
PGP 2007-09

Forecasting the Demand for Human Resources Organization-wide estimate for total demand Unit breakdown for specific skill needs by number and type of employee Develop decision rules ( fill rates ) for positions to be filled internally and externally. Develop additional decision rules for positions impacted by the chain effects of internal promotions and transfers. Forecasting the Supply for Human Resources External Supply Internal Supply
PGP 2007-09

Forecasting External HR Supply Factors affecting external Net migration for an area Individuals entering and leaving the workforce Individuals graduating from schools and colleges Changing workforce composition and patterns Economic forecasts Technological developments and shifts Actions of competing employers Government regulations and pressures Other factors affecting the workforce
2 21

PGP 2007-09

Forecasting Internal HR Supply Effects of promotions, lateral moves, and terminations Succession analysis Replacement charts Transition matrix (Markov matrix)

. PGP 2007-09

. PGP 2007-09