Description
This is a PPT highlighting about HR planning.
HR Planning : Learning Objectives
Following the lecture you should be able to:
Understand and Describe HRP as a concept and the importance of HRP in corporate planning ? Describe the steps and techniques of HRP ? Describe relationship between HRP and other HR functions ? Analyze Demand and Supply ? Provide some Practical examples
?
What is HRP
?
Review of Human Resource Requirements to ensure:
– Necessary number of employees – Necessary number of skill sets to meet organizational goals We can also summarize HRP lifecycle as : Forecast Demand Analyze supply
Plan & implement programs to balance SS & DD
Planning Period –Varies depending on the organization size.
?Usually
at least on annual basis with modifications ?Intermediate term planning (1 to 2 years) ?Long term planning (more than 3 yrs)
So What’s Strategic HR Planning ???
It is the process governing how an organization plans to acquire and utilize its human resources
Why is it so important
HRP enables Organizations to:
? ? ? ? ? ?
Achieve goals and objectives Plan staffing and development activities Achieve economies in hiring/control/labour costs Ensures proper utilization of human resources Establish employment equity goals / timetables Establish primary link between business strategy and HR functions
HRP and Strategic Planning
?
?
?
Strategic Analysis – What are the human resources requirements and what is currently available? Strategic Formulation – What is required and necessary in support of human resources? Strategic Implementation – How will the human resources be allocated?
Human Resources Planning Strategic Planning
Ensuring the Fit between HR and Strategy
?
External Fit (or External Alignment)
– Focuses on the connection between the business objectives and the major initiatives in HR.
?
Internal Fit (or Internal Alignment)
– Aligning HR practices with one another to establish a configuration that is mutually reinforcing.
Strategic Human Resource Planning
?
Goes beyond the traditional approach of taking organizational plans and goals as given and concerns itself with the staffing processes needed to carry out the plans.
Strategic HRM emphasizes a proactive role for the HR function in formulating strategic organizational plans and in providing an integrated array of HR programs to ensure effective implementation. Is directly tied to strategic business planning
?
?
Human Resource Planning Model
Demand Analysis Forecast Organizational Conditions Supply Analysis Forecast Internal Supply Forecast External Supply
Forecast Labor Demand
Reconcile Gaps
Human Resource Planning Model (source :Bohlander & Shell)
FORECASTING DEMAND
Considerations
• Product/service demand • Technology • Financial resources • Absenteeism/turnover • Organizational growth • Management philosophy
Techniques
• Trend analysis • Managerial Estimates • Delphi technique • Ratio Analysis • Scatter plot • Regression Analysis
BALANCING SUPPLY AND DEMAND
(Shortage) Recruitment
• Full-time • Part-time • Recalls
Techniques
• Staffing tables • Markov analysis • Skills inventories • Management inventories • Replacement charts • Succession Planning
External Considerations
• Demographic changes • Education of the workforce • Labor Mobility • Government policies • Unemployment rate
(Surplus) Reductions
• Layoffs • Terminations • Demotions • Retirements
FORECASTING SUPPLY
Demand Forecasting Techniques
Quantitative 1. Trend Analysis 2. Ratio analysis 3. Scatter Plot 4. Regression Analysis 5. Computerized Forecasting Technique Qualitative 1. Managerial Estimates 2. Delphi Technique 3. Bottom up - top down
Trend Analysis
Review past employment levels (source Bohlander & Shell)
BUSINESS FACTOR
YEAR
?
LABOR PRODUCTIVITY
(SALES/EMPLOYEE)
=
HUMAN RESOURCES DEMAND
(NUMBER OF EMPLOYEES)
(SALES IN THOUSANDS)
1997 1998 1999 2000 2001 2002 2003 2004* 2005* 2006*
$2,351 $2,613 $2,935 $3,306 $3,613 $3,748 $3,880 $4,095 $4,283 $4,446
14.33 11.12 8.34 10.02 11.12 11.12 12.52 12.52 12.52 12.52
164 235 352 330 325 337 310 327 342 355
Ratio Analysis
Ratio of business activity / employees
? Examine
the historical ratios involving workforce size or production ? Productivity ratio—Average number of units produced per direct labor employee over a given period ? Staffing ratio—Number of employees required in job, e.g.. Per supervisor. ? Assume ratio will be true in the future (or adjust). ? Use ratio to predict future requirements. ? Account for learning curves
Ratio Analysis Example
? 105
hotel rooms require 7 maids to clean per day. Because 105/7=15, the hotel requires 1 maid per 15 rooms. ? If we anticipate an average 45 room reservations per day for the upcoming season and we normally expect an additional third rooms sold to walk-ins, what number of maids do we require for the season? ?:
?Answer
45 + 33% = 60 projected rooms. ?60 / 15 = 4 maids required.
?
?
Scatter Plot: (Graph of business activity/ employees)
Regression Analysis: (Statistical relationship between business activity/employees) Computerized forecasting techniques
?
?
Qualitative Forecasting Techniques
Managerial Estimates/Nominal Group Technique
?
?
?
experts meet face-to-face group discussion facilitates exchange of ideas possible subjectivity, group pressure Identify a group of subject matter experts (SME’s). Give SME’s a description of the problem and ask for an employee demand estimate from each. Gather estimates and average responses. Give SME’s the average and range of responses and ask for a new response. Repeat steps 3 and 4 until responses converge to an answer.
Delphi Technique
? ?
? ?
?
Bottom up - top down
Human Resource Supply Forecasting Techniques
?
Staffing tables : Internal sources
?
?
Markov analysis:
A mathematical approach to forecast the internal supply of human resources. It requires a matrix to show the probability of an employees move or flow in an organization. (Transition probability matrix)
?
Skills inventories:
? ? ?
Manual or computerized records Used to identify internal candidates for transfer or promotion Summary of each employee’s: - HRIS ? education ? experience ? interests ? Skills ? Language ? Relocation
?
Management inventories
?
Summary of each management employee’s: ? background ? qualifications ? interests ? skills ? managerial responsibilities ? duties in current/previous positions ? management training
?
Replacement charts
? ?
? ?
Visual representations of likely internal replacement employees for each position Data on each candidate includes: ? age ? present performance rating ? promo ability status Lists of likely internal replacement employees for each position Data on each candidate includes: ? relative strengths and weaknesses ? current position ? performance ? promo ability ? age ? experience Analyze demand for managers/professionals Audit existing executives, project future supply Individual career planning/career counseling Accelerated promotions Performance-related training and development Planned strategic recruitment
?
Succession Planning
? ? ?
?
? ?
Replacement Chart Example
President HL MR VP-Mkt PN VP-Ops PS
•
{1} Promotability
– – – – – R= should be replaced HL= highest level PN= promotable now PS= promotable short PL= promotable long
VP-Mrktg. PN ER Mktg. Dir. PL Sales. Dir. PL
VP-Operations. PN MR Ops Manager1 PS Ops Manager2 PS
VP-HR PL MR Trng. Dir. PN Comp. Dir. PN
VP-Casinos PN MR GM, Casino1 PN GM, Casino2 PS
•
{2} Performance
– ER= exceeds – MR= meets – BR = below
VP-Acct/Fin HL BR Comptroller PL Controller PL
Mgr-Housekeep. PS MR Supervisor1 PN Supervisor2 PN
•
{3} Readiness
– use Promotability scale
Factors which influence Supply of External Candidates
? ? ? ?
General economic conditions National labour market conditions Local labour market conditions Occupational market conditions
Balancing Supply and Demand
Dealing with a Labour Surplus
? Hiring
freeze ? Attrition ? Buy-out and early retirement programs ? Reducing hours (job sharing, reduced ? Workweek, part-time work, work sharing) ? Internal transfers ? Layoffs (reverse seniority or juniority) ? Termination with outplacement assistance
Dealing with a Labour Shortage
? Overtime
? Hiring
temporary employees ? Subcontracting work ? External recruitment ? Transfers ? Promotions
Factors affecting
Why Manpower Planning fails …
… continued
Research and experience show that workforce planning fails when it is applied in a manner which is ? inconsistent with the needs of the organisation, ? If it is viewed as too complicated, ? lacking serious senior management support, ? focused on issues which are not important to the organisation's success, or ? it may be perceived as just another "personnel procedure".
Factors affecting
… or succeeds
… continued
However, it succeeds when … ?it involves managers in meaningful and significant ways ?when it provides useful information and stimulates effective decision making ?and when it addresses important issues before they become expensive problems … then workforce planning is seen as a valuable process of management.
Assignment No. 02( 10 marks)
A. Take up the case of any organization (the one where up work or the one with which you have some acquaintance) Discuss with key persons in HR and other functions and prepare a brief write up( Not more then 1000 words) outlining:
? ? ? ?
Profile Objectives and corporate plans Human resource planning practice Key issues in human resource planning/strategies
B.
Choose any company where you have worked or have some acquaintance. Assume that you have been a personnel computer and told to create HRIS. Identify and prepare an inventory of the type/nature of information that you need to put into your system.
doc_832990748.pptx
This is a PPT highlighting about HR planning.
HR Planning : Learning Objectives
Following the lecture you should be able to:
Understand and Describe HRP as a concept and the importance of HRP in corporate planning ? Describe the steps and techniques of HRP ? Describe relationship between HRP and other HR functions ? Analyze Demand and Supply ? Provide some Practical examples
?
What is HRP
?
Review of Human Resource Requirements to ensure:
– Necessary number of employees – Necessary number of skill sets to meet organizational goals We can also summarize HRP lifecycle as : Forecast Demand Analyze supply
Plan & implement programs to balance SS & DD
Planning Period –Varies depending on the organization size.
?Usually
at least on annual basis with modifications ?Intermediate term planning (1 to 2 years) ?Long term planning (more than 3 yrs)
So What’s Strategic HR Planning ???
It is the process governing how an organization plans to acquire and utilize its human resources
Why is it so important
HRP enables Organizations to:
? ? ? ? ? ?
Achieve goals and objectives Plan staffing and development activities Achieve economies in hiring/control/labour costs Ensures proper utilization of human resources Establish employment equity goals / timetables Establish primary link between business strategy and HR functions
HRP and Strategic Planning
?
?
?
Strategic Analysis – What are the human resources requirements and what is currently available? Strategic Formulation – What is required and necessary in support of human resources? Strategic Implementation – How will the human resources be allocated?
Human Resources Planning Strategic Planning
Ensuring the Fit between HR and Strategy
?
External Fit (or External Alignment)
– Focuses on the connection between the business objectives and the major initiatives in HR.
?
Internal Fit (or Internal Alignment)
– Aligning HR practices with one another to establish a configuration that is mutually reinforcing.
Strategic Human Resource Planning
?
Goes beyond the traditional approach of taking organizational plans and goals as given and concerns itself with the staffing processes needed to carry out the plans.
Strategic HRM emphasizes a proactive role for the HR function in formulating strategic organizational plans and in providing an integrated array of HR programs to ensure effective implementation. Is directly tied to strategic business planning
?
?
Human Resource Planning Model
Demand Analysis Forecast Organizational Conditions Supply Analysis Forecast Internal Supply Forecast External Supply
Forecast Labor Demand
Reconcile Gaps
Human Resource Planning Model (source :Bohlander & Shell)
FORECASTING DEMAND
Considerations
• Product/service demand • Technology • Financial resources • Absenteeism/turnover • Organizational growth • Management philosophy
Techniques
• Trend analysis • Managerial Estimates • Delphi technique • Ratio Analysis • Scatter plot • Regression Analysis
BALANCING SUPPLY AND DEMAND
(Shortage) Recruitment
• Full-time • Part-time • Recalls
Techniques
• Staffing tables • Markov analysis • Skills inventories • Management inventories • Replacement charts • Succession Planning
External Considerations
• Demographic changes • Education of the workforce • Labor Mobility • Government policies • Unemployment rate
(Surplus) Reductions
• Layoffs • Terminations • Demotions • Retirements
FORECASTING SUPPLY
Demand Forecasting Techniques
Quantitative 1. Trend Analysis 2. Ratio analysis 3. Scatter Plot 4. Regression Analysis 5. Computerized Forecasting Technique Qualitative 1. Managerial Estimates 2. Delphi Technique 3. Bottom up - top down
Trend Analysis
Review past employment levels (source Bohlander & Shell)
BUSINESS FACTOR
YEAR
?
LABOR PRODUCTIVITY
(SALES/EMPLOYEE)
=
HUMAN RESOURCES DEMAND
(NUMBER OF EMPLOYEES)
(SALES IN THOUSANDS)
1997 1998 1999 2000 2001 2002 2003 2004* 2005* 2006*
$2,351 $2,613 $2,935 $3,306 $3,613 $3,748 $3,880 $4,095 $4,283 $4,446
14.33 11.12 8.34 10.02 11.12 11.12 12.52 12.52 12.52 12.52
164 235 352 330 325 337 310 327 342 355
Ratio Analysis
Ratio of business activity / employees
? Examine
the historical ratios involving workforce size or production ? Productivity ratio—Average number of units produced per direct labor employee over a given period ? Staffing ratio—Number of employees required in job, e.g.. Per supervisor. ? Assume ratio will be true in the future (or adjust). ? Use ratio to predict future requirements. ? Account for learning curves
Ratio Analysis Example
? 105
hotel rooms require 7 maids to clean per day. Because 105/7=15, the hotel requires 1 maid per 15 rooms. ? If we anticipate an average 45 room reservations per day for the upcoming season and we normally expect an additional third rooms sold to walk-ins, what number of maids do we require for the season? ?:
?Answer
45 + 33% = 60 projected rooms. ?60 / 15 = 4 maids required.
?
?
Scatter Plot: (Graph of business activity/ employees)
Regression Analysis: (Statistical relationship between business activity/employees) Computerized forecasting techniques
?
?
Qualitative Forecasting Techniques
Managerial Estimates/Nominal Group Technique
?
?
?
experts meet face-to-face group discussion facilitates exchange of ideas possible subjectivity, group pressure Identify a group of subject matter experts (SME’s). Give SME’s a description of the problem and ask for an employee demand estimate from each. Gather estimates and average responses. Give SME’s the average and range of responses and ask for a new response. Repeat steps 3 and 4 until responses converge to an answer.
Delphi Technique
? ?
? ?
?
Bottom up - top down
Human Resource Supply Forecasting Techniques
?
Staffing tables : Internal sources
?
?
Markov analysis:
A mathematical approach to forecast the internal supply of human resources. It requires a matrix to show the probability of an employees move or flow in an organization. (Transition probability matrix)
?
Skills inventories:
? ? ?
Manual or computerized records Used to identify internal candidates for transfer or promotion Summary of each employee’s: - HRIS ? education ? experience ? interests ? Skills ? Language ? Relocation
?
Management inventories
?
Summary of each management employee’s: ? background ? qualifications ? interests ? skills ? managerial responsibilities ? duties in current/previous positions ? management training
?
Replacement charts
? ?
? ?
Visual representations of likely internal replacement employees for each position Data on each candidate includes: ? age ? present performance rating ? promo ability status Lists of likely internal replacement employees for each position Data on each candidate includes: ? relative strengths and weaknesses ? current position ? performance ? promo ability ? age ? experience Analyze demand for managers/professionals Audit existing executives, project future supply Individual career planning/career counseling Accelerated promotions Performance-related training and development Planned strategic recruitment
?
Succession Planning
? ? ?
?
? ?
Replacement Chart Example
President HL MR VP-Mkt PN VP-Ops PS
•
{1} Promotability
– – – – – R= should be replaced HL= highest level PN= promotable now PS= promotable short PL= promotable long
VP-Mrktg. PN ER Mktg. Dir. PL Sales. Dir. PL
VP-Operations. PN MR Ops Manager1 PS Ops Manager2 PS
VP-HR PL MR Trng. Dir. PN Comp. Dir. PN
VP-Casinos PN MR GM, Casino1 PN GM, Casino2 PS
•
{2} Performance
– ER= exceeds – MR= meets – BR = below
VP-Acct/Fin HL BR Comptroller PL Controller PL
Mgr-Housekeep. PS MR Supervisor1 PN Supervisor2 PN
•
{3} Readiness
– use Promotability scale
Factors which influence Supply of External Candidates
? ? ? ?
General economic conditions National labour market conditions Local labour market conditions Occupational market conditions
Balancing Supply and Demand
Dealing with a Labour Surplus
? Hiring
freeze ? Attrition ? Buy-out and early retirement programs ? Reducing hours (job sharing, reduced ? Workweek, part-time work, work sharing) ? Internal transfers ? Layoffs (reverse seniority or juniority) ? Termination with outplacement assistance
Dealing with a Labour Shortage
? Overtime
? Hiring
temporary employees ? Subcontracting work ? External recruitment ? Transfers ? Promotions
Factors affecting
Why Manpower Planning fails …
… continued
Research and experience show that workforce planning fails when it is applied in a manner which is ? inconsistent with the needs of the organisation, ? If it is viewed as too complicated, ? lacking serious senior management support, ? focused on issues which are not important to the organisation's success, or ? it may be perceived as just another "personnel procedure".
Factors affecting
… or succeeds
… continued
However, it succeeds when … ?it involves managers in meaningful and significant ways ?when it provides useful information and stimulates effective decision making ?and when it addresses important issues before they become expensive problems … then workforce planning is seen as a valuable process of management.
Assignment No. 02( 10 marks)
A. Take up the case of any organization (the one where up work or the one with which you have some acquaintance) Discuss with key persons in HR and other functions and prepare a brief write up( Not more then 1000 words) outlining:
? ? ? ?
Profile Objectives and corporate plans Human resource planning practice Key issues in human resource planning/strategies
B.
Choose any company where you have worked or have some acquaintance. Assume that you have been a personnel computer and told to create HRIS. Identify and prepare an inventory of the type/nature of information that you need to put into your system.
doc_832990748.pptx