Professional Documents
Culture Documents
What is Planning?
The process of setting goals and deciding how best to achieve them.
It is concerned with the end (what is to be done) as well as with means (how it is to be done).
(HRP)
The process of anticipating an organizations future human resource needs and then developing action plans for fulfilling identified needs.
Introduction
Human resource planning is a process by which an organization ensures that it has the right number and kinds of people at the right place at the right time capable of effectively and efficiently completing those tasks that will help the organization achieve its overall strategic objectives.
Introduction
Linked to the organizations overall strategy and planning to compete domestically and globally. Overall plans and objectives must be translated into the number and types of workers needed. Senior HRM staff need to lead top management in planning for HRM issues.
HRP
The Required Number of Employees With The Required Skills
Enable organizations to anticipate their future HR needs To identify practices that will help them meet those needs
Benefits of HR Planning Helps in planning job assignments Helps cope with fluctuations in staffing
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Figure 23
Demand
Supply
Gap? HR Needs
Demand Forecasting
Statistical
approaches
Judgmental methods
Forecasting Methods
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Figure 28
Statistical approaches
1. Trend analysis
Trend Analysis
300 250 200 150 100 50 0 2000 2001 2002 2003 Employees Sales
Ratio Analysis
# patients = 100 # nurses = 25 patient/nurse ratio = 4/1
75
Regression Analysis
50
# Employees 25
0
50
100
150
# Customers
Judgmental methods
Managerial judgment
1. Monitoring current HR
programs and personnel staffing levels 2. Investigating future HR needs and concerns
Supply = Demand?
The goal of forecasting and planning is to keep a stable workforce that meets the needs of the organization.
Assessing HR Effectiveness
Diagnostic Measures of HR Effectiveness HR expense per employee Compensation as a percent of expenses HR department expense as a percent of total expenses Cost of hires Turnover rates Absenteeism rates Workers compensation per employee
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Figure 210
Assessing HR Effectiveness
HR Audit A formal research effort that evaluates the current state of HR management in an organization Audit areas: Legal compliance (e.g., EEO, OSHA, ERISA, and FMLA) Current job specifications and descriptions 230
Assessing HR Effectiveness
Valid recruiting and selection process Formal wage and salary system Benefits Employee handbook Absenteeism and turnover control Grievance resolution process Orientation program Training and development Performance management system
C ROI AB
from Jac 235 Source: Adapted 2002 Fitz-Enz, Top 10 Calculations for Your HRIS, HR Focus, April 1998, S-3. Southwestern
Figure 211a
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Figure 29
Forecasting the supply of human resources Forecasting the demand for human resources
Comparing forecasted supply and forecasted demand
HR Planning Process
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Figure 26
HRP has become more important in recent years for a number of reasons
Importance
1. Globalization of Business
2. New Technologies 3. The changing skill levels in
the Workforce
1. The changing
demographics of the workforce
2. Mergers and
Acquisitions
3. Legal developments
Effective HR Planning
Competitive Advantage
An Organizational Framework
A mission statement defines what business the organization is in, including why it exists and who its customers are. Strategic goals Set by senior management to establish targets for the organization to achieve. Generally defined for the next 5-20
years.
An Organizational Framework Corporate assessment Gap or SWOT (StrengthsWeaknesses-OpportunitiesThreats) analysis determines what is needed to meet objectives.
An Organizational Framework
Strengths and weaknesses and core competencies are identified. HRM determines what knowledge, skills and abilities are needed by the organizations human resources
An Organizational Framework
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Figure 21
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Figure 24
HR Planning Responsibilities
Top HR executive and subordinates gather information from other managers to use in the development of HR projections for top management to use in strategic planning and setting organizational goals
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outsiders Management succession between generations of owners Evolution of HR activities as business grows Family relationships and HR policies
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