Human Resource Planning (HRP)

TÜRKİYE'DE YÖNETİM DANIŞMANLIĞI

HUMAN RESOURCE PLANNING (HRP)

PREPARED BY BLOGGER:TÜRKİYE’DE YÖNETİM

DANIŞMANLIĞI (MANAGEMENT

CONSULTANCY IN TURKEY)


HUMAN RESOURCE PLANNING (HRP)Definition of Human Resource PlanningImportance of Human Resource PlanningHuman Resource Planning Process Human Resource Forecasting TechniquesLabor Supply and Demand Succession Planning

DEFINITON OF HUMAN RESOURCE PLANNING «Rigorous HR planning links people management to the organization's mission, vision, goals and objectives, as well as its strategic plan and budgetary resources. A key goal of HR planning is to get the right number of people with the right skills, experience and competencies in the right jobs at the right time at the right cost.»

(Government of Canada) As seen in the description, human resource plans are based on «organization’s mission, vision, goals and objectives, strategic plan»


PAST «organization’s

mission, vision, goals and objectives, strategic plan»

FUTURE«forecasting how many people will organization

need in the future?»qualitative and quantitative

analysis


DEFINITON OF HUMAN RESOURCE PLANNING


Recruitment of

Talented Personnel

Coping With

ChangeUncertainty Reduction

Proper Utilization of Human Resources

Development of

Human Resources

Future Manpower

Need

WHAT IS THE IMPORTANCE OF HUMAN RESOURCE MANAGEMENT PLANNING?


WHAT IS THE IMPORTANCE OF HUMAN RESOURCE MANAGEMENT PLANNING?The importance of human resource planning are as follows:Future Manpower Need: Human resource planning is regarded as a tool to assure the future availability of manpower to carry on the organizational activities. It determines the future needs of manpower in terms of number and kind.Coping With Change: Human resource planning is important to cope with the change associated with the external environmental factors. It helps assess the current human resources through HR inventory and adapts it to changing technological, political, socio-cultural, and economic forces.


WHAT IS THE IMPORTANCE OF HUMAN RESOURCE MANAGEMENT PLANNING?The importance of human resource planning are as follows:Recruitment Of Talented Personnel: Another purpose of HR planning is to recruit and select the most capable personnel to fill job vacancies.It determines human resource needs, assesses the available HR inventory level and finally recruit the personnel needed to perform the job. Development Of Human Resources: Human resource planning identifies the skill requirements for various levels of jobs. Then it organizes various training and development campaigns to impart the required skill and ability in employees to perform the task efficiently and effectively


WHAT IS THE IMPORTANCE OF HUMAN RESOURCE MANAGEMENT PLANNING?The importance of human resource planning are as follows:Proper Utilization Of Human Resources: Human resource planning measures that the organization acquires and utilizes the manpower effectively to achieve objectives. Human resource planning helps in assessing and recruiting skilled human resource. It focuses on the optimum utilization of human resource to minimize the overall cost of production.Uncertainty Reduction: This is associated with reducing the impact of uncertainty which are brought by unsudden changes in processes and procedures of human resource management in the organization.


STAFFING SUB- PROCESSES

Human resource planning (staffing constitutes the first step of this process )Determining Staffing authorityDeveloping supply sourcesEvaluation of applicationsEmployment decisions and recommendationsRecruitment and orientationPromotion, transfer and dismissal actions


2 BASIC DIMENSIONS OF HUMAN RESOURCES PLANNING

Expected Future Vacant Positions

Human Resources Inventory (expected future human resources)


2 BASIC DIMENSIONS OF HUMAN RESOURCES PLANNING Human Resources Inventory (expected future human resources) : determining the current ability and skills levels of people in the organization Qualitative and quantitative analysis about organization’s human resourcesHow many people are working in each department?What are their jobs and tasks?Their personal and vocational characteristicsHow many people will we need in future?


Expected Future Vacant Positions: the number of current and expected future vacant positionsRedundancy: Retirement , work out, transfer, promotion and diseaseAbsence or other reasons

2 BASIC DIMENSIONS OF HUMAN RESOURCES PLANNING


PURPOSES OF HUMAN RESOURCE PLANNING To achieve optimum employment levelPrevent company from «last minute staffing loss»Find right human resource number, compatible with the amount of workTry to work. If we dont plan it, may encounter some problems:Interruption of productiondelaying of customer orderscustomer unhappiness

To benefit maximum from employees efforts


OTHER REASONS OF HUMAN RESOURCE PLANNINGFollowing internal changes and constraints in human resourcesTraining and improvement of current staffAnnouncement of vacancies on timeRecruitment of new employeesPredicting labor costsAdapting rapidly to changing conditions in the communityResponding to technological innovations and market conditionsActing in accordance with the law and legal regulationsControlling labor costs that affect the profitability of capital


ORGANIZATIONAL STRATEGY AND HR PLANNINGHu

man

reso

urce

pl

anni

ng

Organizational strategy

Reconstruction strategy

(Downsizing)

Stable strategy

Reconstruction strategy (Growth)


INTELLECTUAL CAPITAL

"The only irreplaceable capital an organization possesses is the knowledge and ability of its people. The productivity of that capital depends on how effectively people share their

competence with those who can use it." Andrew Carnegie


THE WAR FOR TALENTThe war for talent is a term coined by Steven Hankin of McKinsey & Company in 1997, and a book by Ed Michaels, Helen Handfield-Jones, and Beth Axelrod, Harvard Business Press, 2001refers to an increasingly competitive landscape for recruiting and retaining talented employeesWhile talent is vague or ill-defined, the underlying assumption is that for knowledge-intensive industries, the knowledge worker (a term coined by Peter Drucker) is the key competitive resource. Knowledge-based theories of organizations consistently place knowledge workers as a primary, competitive resource.


THE WAR FOR TALENT The war for talent is intensified by demographic shifts (primarily in the United States and Europe).

This is characterized by increasing demand along with decreasing supply (demographically).

There are simply fewer post-baby-boom workers to replace the baby-boom retirement in the US and Europe (though this is not the case in most of East Asia, Southeast Asia, Central Asia, Central America, South America, or the Middle East; Eastern Europe also tends to have similar demographics, namely an aging and/or shrinking labor force).


ANALYSIS OF EXTERNAL ENVIRONMENTAL FACTORS The structure of the labor and labor marketLegal regulationsEconomic conditionsGeographic and competitive conditionsTechnologyUnions


Job analysisOrganizational culture and management styleWorkforce skills inventory

ANALYSIS OF INTERNAL ENVIRONMENTAL FACTORS


HUMAN RESOURCE PLANNING PROCESS (FROM COMPANY STRATEGY)

Control and

evaluation

Final plan and

implementation

Approval of Senior managem

ent

Budget adjustm

ent

Forecasting and Balancin

g HR supply

and demand

Information

collecting and

analysis

Human Resourc

e Plannin

g

Company

strategy


COMPANY STRATEGYMintzberg concludes that there are five types of strategies:Strategy as plan – a directed course of action to achieve an intended set of goals; similar to the strategic planning concept;

Strategy as pattern – a consistent pattern of past behavior, with a strategy realized over time rather than planned or intended. Where the realized pattern was different from the intent, he referred to the strategy as emergent;

Strategy as position – locating brands, products, or companies within the market, based on the conceptual framework of consumers or other stakeholders; a strategy determined primarily by factors outside the firm;

Strategy as ploy – a specific maneuver intended to outwit a competitor; andStrategy as perspective – executing strategy based on a "theory of the business" or natural extension of the mindset or ideological perspective of the organization.


MINTZBERG 5 TYPE OF STRATEGIES

Plan Pattern Position

Ploy Perspective


HUMAN RESOURCE PLANNING


INFORMATION COLLECTING AND ANALYSIS:HR INVENTORYThe human resources of the organization are divided into managerial and non-managerial categories, the skills inventory is related with non-managerial employees the management inventory is related with the management personnel.

The process of preparing a human resource inventory involves the determination of personnel whose inventory is to be made, cataloging the factual information of each employee, systematic and detailed appraisal of these employeesa thorough study of the individuals who have potential for growth.


MANAGER INVENTORY EXAMPLE


JOB ANALYSIS What kind of jobs are available in the business right now ?What is the relationship between different jobs ?How many employee perform each job?How important is each job ?


JOB ANALYSIS / JOB DESCRIPTION / JOB SPECIFICATION



BALANCING LABOR SUPPLY AND DEMANDHuman resource planning professionals should follow the following changes and developments: Changes occur in the quantity of production New products plans Products that company plans to stop production Sales quantity Changes in the organizational structure Technological innovations Financial situation


HOW CAN WE ESTIMATE THE AMOUNT OF PRODUCTION IN THE FUTURE?Calculation of the amount required to be produced for the next period is usually based on sales and orders. This plan is expressed in the form of a business unit such as «quantity, weight, box orders and similar»For exampleDuring 40-hours work a week, we want to produce1000 refrigeratorsassembly workers may require 9000 hours of operation.

If we divide 9000 hours /40 hours per weekWe need 225 assembly workers


SUCCESSION PLANNING Identification and development of potential successors for key positions in an organization, through a systematic evaluation process and training.

Unlike replacement planning (which grades an individual solely on the basis of his or her past performance) succession planning is largely predictive in judging an individual for a position he or she might never have been in.



REPLACEMENT PLANNING AND SUCCESSION PLANNINGReplacement planning is a sort of contingency plan. The idea is a company will name a next-in-line or “backup” for major positions with the idea that these people will not be needed unless something goes wrong. The thought that goes into naming such replacement is comparatively minimal; the focus is on meeting basic needs and ensuring that “must have” qualifications will be met.In contrast, succession planning is part of the long-term plan of a healthy company.The focus here is on planning for change as part of healthy growth, and acknowledging even top-level people leave. Succession planning means that replacements are mentored and developed, not just placed on a list outlining “Plan B.”


MARKOV ANALYSIS Markov Analysis is powerful analyses that can be applies on wide range of areas to help businesses forecast the future probabilities/outcome of an event.

For instance, it is used in HR planning of human resources, forecasting bad debts, forecasting brand loyalty, forecasting market shares and so on.

Suppose that the HR manager wish to forecast demand and supply of its workforce for future recruitment planning purposes. Based on historical data of its workforce transition activities, the HR manager had the following information about its workforce.


EXAMPLE

The table above indicates that of the initial 10 top managers in 2013, 80% of them will remain in their existing positions while 2% of them are predicted to be demoted and 18% of them will relinquish their position due to various reasons (e.g retirement). The HR manager wishes to know the supply of its workforce in the next coming two years 2014/15 to plan for recruitment purposes. This can be done via Markov Analysis of 2 transitional states.


FORECASTED 2014 WORKFORCE SUPPLY

The above single transition Markov Analysis shows that in year 2014, it is forecasted that a total supply of 9.5 top managers, 13 middle managers,16.2 low managers and 6.3 of them exited. Usually, the numbers are rounded to its nearest decimal values. If the same probabilities hold, the forecasted 2015 workforce supply is shown in the table below in a 2 transitional Markov Analysis.


The above two transition Markov Analysis shows that in year 2015, it is forecasted that a total supply of 8.9 top managers, 11.204 middle managers,13.156 low managers and 11.74 of them exited.

FORECASTED 2015 WORKFORCE SUPPLY