Human Resource Planning

-Importance of HR Planning -Assessing Organizations

Strategy

HR Planning: What is it?



Human Resource (HR) Planning

The process of analyzing and identifying the need for and availability of human resources so that the organization can meet its objectives.

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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HR Planning: What is it? Human Resource Planning is the process by which an organization ensures that it has the right number and kind of people, at the right places, at the right time, capable of effectively and efficiently completing those tasks that will help the organization achieve its overall objectives.  ( Source: Decenzo and Robbins 2000,
Personnel/Human Resource Management)

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HR Planning: What is it? HR/ Manpower Planning is the process of acquiring and utilizing human resources in the organization. It ensures that the organization has the right number of employees in the right place at the right time.  ( Source: Adhikari, Dev Raj, 2001,Human Resource Management )

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HR Planning: What is it?



Employment planning is the process of formulating plans to fill future openings based on an analysis of the positions that are exppected to be open and whether these will be filled by inside or outside candidates. ( Source: Dessler, G. 2000,Human Resource Management )

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Factors That Determine HR Plans

Figure 23
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Human Resource Planning (contd)



HR Planning Issues
Attracting and retaining qualified outsiders Management succession between generations of owners/heads Evolution of HR activities as business grows Organisational effectiveness and HR policies

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HR Planning Process


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

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HR Planning
Assessing Current Human Resources Assessing Future Human Resource Needs

Developing a Programme to Meet Needs

FOM 9.9

Salient features of HRP

1. It s a systematic approach. Why??? because it ensures a continuous and proper staffing. It avoids or checks on occupational imbalances (shortage or surplus) occurring in any of the department of the organization. 2. There is a visible continuity in the process. 3. There is a certain degree of flexibility. That is, it is subject to modifications according to needs of the organization or the changing circumstances. Manpower plans can be done at micro or the macro levels depending upon various environmental factors.

HRP A Continuous Process

 

Forecasting future manpower requirements. Making an inventory of present manpower resources and assessing the extent to which these resources are employed optimally. Anticipating manpower problems by projecting present resources into the future Planning the necessary programmes of requirement, selection, training, development, utilization etc

Benefits of HR Planning


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

  

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Uses of HRP Improve the Utilization of human resources.  Match human resource related activities and future organization objectives efficiently.  Achieve economies in hiring new workers.  Coordination between various HR Programmes such a employment equity plan and hiring needs


Importance of HRP


Ensures optimum use of people  Forecast future requirements  Help determine recruitment/induction levels  To anticipate redundancies/surpluses  To determine training levels and works  Know the cost of manpower if there is a new project is being taken up

Importance of HRP

Linking business strategy with operational strategy: HRP is an important process to maintain the link between business strategy and it operation. It follows different procedures including the need to assess the impact of technological changes on new jobs and new skills

Importance of HRP

Minimizing the risk of loosing:

By forecasting the needs of technical and human resource requirements, HRP can minimize the future risk of loosing. Delay in recognizing human resources might be costly and expensive in the future.

Importance of HRP

HRP is pro-active, not reactive : proFor solving any sort of future HR problem HRP is propro-active rather than re-active. re-

Importance of HRP

HRP is not in isolation :

HRP recognizes that there must be an explicit link between planning function of human resources and other organizational functions, such as strategic planning and market forecasting.

Importance of HRP

HRP promotes awareness :

HRP promotes the awareness that human resource activities are equally important at every level of the organization. All employees have to be involved in HR planning activities.

Key Elements of HRP Process

Responsibilities of Human Resource Department in respect of manpower: Assist and counsel operating managers to plan and set objectives. Collect and summarise manpower data keeping long-run objectives and broad organizational interests in mind. Monitor and measure performance against the plan and keep top management informed about it. Provide proper research base for effective manpower and organizational planning. Thus, the three key elements of the process are

Forecasting the demand for labour, Performing a supply analysis, and Balancing supply and demand considerations.

Scanning the External Environment



Environmental Scanning
The process of studying the environment of the organization to pinpoint opportunities and threats.

Environment Changes Impacting HR

Governmental regulations Economic conditions Geographic and competitive concerns Workforce composition

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Analysing the demand

A.

B.

C.

Workforce analysis - to determine the rate of influx and outflow of employee Workload analysis, the amount of work to be done with which one can calculate the numbers of persons required for various jobs with reference to a planned output. Job analysis: Job analysis helps in finding out the abilities or skills required to do the jobs efficiently.

Internal Assessment of the Organizational Workforce



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?

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Managing Human Resource Surplus or Shortage



Workforce Realignment
Downsizing , Rightsizing , and Reduction in Force (RIF) all mean reducing the number of employees in an organization. Causes
Economicweak product demand, loss of market share to competitors Structuraltechnological change, mergers and acquisitions

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Managing Human Resource Surplus or Shortage



Downsizing approaches
Attrition and hiring freezes
Not replacing departing employees and not hiring new employees/

Early retirement buyouts

Offering incentives that encourage senior employees to leave the organization early.

Layoffs
Employees are placed on unpaid leave until called back to work when business conditions improve. Employees are selected for layoff on the basis of their seniority or performance or a combination of both.
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Managing Human Resource Surplus or Shortage



Downsizing approaches (cont d)

Outplacement services provided to displaced employees to give them support and assistance:
Personal career counseling Resume preparation and typing services Interviewing workshops Referral assistance Severance payments Continuance of medical benefits Job retraining

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Dealing with Downsizing

 

Investigate alternatives to downsizing Involve those people necessary for success in the planning for downsizing Develop comprehensive communications plans Nurture the survivors Outplacement pays off

  

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Assessing HR Effectiveness


HR Audit
A formal research effort that evaluates the current state of HR management in an organization Audit areas:
Legal compliance Current job specifications and descriptions Valid recruiting and selection process Formal wage and salary system Benefits Employee handbook Absenteeism and turnover control Grievance resolution process Orientation programme Training and development Performance management system
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