Chapter 1- HR Planning

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Core Concepts & Applications

Recruitmentand SelectionRecruitmentand Selection

.

Chapter 1

Human Resource Planning


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HR Planning Defned……

• Human resourceplanning is a process bywhich an organizationensures that – it has the right number and

inds o! people

– at the right place

– at the right time

– capable o! e"ecti#ely ande$ciently completing thosetass that will help theorganization achie#e itso#erall strategic ob%ecti#es


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Objectives of HRPlanning

• Pre#ent o#ersta$ng and understa$ng

• 'nsure the hiring o! right man !or the right %ob in the right place at the right time

• 'nsure the organization is responsi#e tochanges in its en#ironment

• Pro#ide direction and coherence to all HR

acti#ities and systems• (nite the perspecti#e o! line and sta"

managers


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Types of Planning

• Aggregate Planning

– Anticipates needs !or di"erent groups o! employees in specifc)usually lower*le#el %obs

– Anticipates the general sills needed by the employees toensure sustain high per!ormance

• Succession Planning

• +ocuses on ey indi#idual mgt positions that org needs to maesure remain flled & the type o! indi#iduals who might pro#ide thebest ft in these critical positions

– +ocuses on the ,top*layer- critical mass


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Assessing current human resources

– A human resources in#entoryreport summarizesin!ormation on currentworers and their sills

– A human resourceinventory can be de#elopedto pro%ect year*by*yearestimates o! !uture HR.needs !or e#ery signifcant %ob

le#el and type – +orecasts must be made o!

the need !or specifcnowledge) sills and abilities


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–Human ResourceInformation Systems1HR2S3 are increasingly

popular computerizeddatabases that containimportant in!ormation abut

employees


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Assessing current human resources

– Succession planning • includes the de#elopment o! replacement

charts

•

portray middle*to*upper le#el managementpositions that may become #acant in thenear !uture

• lists in!ormation about indi#iduals who might4uali!y to fll the positions


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Determining the demand and supply o!5abor

• Predicting the +uture 5abor Supply

– A unit6s supply o! human resources

comes !rom/• new hires

• contingent worers

• trans!ers*in

• indi#iduals returning !rom lea#es

– 7rans!ers are more di$cult to predictsince they depend on actions in otherunits


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Predicting the +uture 5abor Supply

– Decreases in internal supply come aboutthrough/• Retirements

•

Dismissals• 7rans!ers*out

• 5ay*o"s

• 8oluntary 4uits

• Sabbaticals

• Prolonged illnesses

• Deaths


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– Retirements are the easiest to !orecast

– 9ther !actors are much more di$cult topro%ect

– Dismissals) trans!ers) lay*o"s) andsabbaticals are more easily controlled bymanagement


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Estimated internal labour supply fora given firm

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5ining 9rganizational Strategy toHuman Resource Planning

• .atching 5abor Demand and Supply

– 'mployment planning compares!orecasts !or demand and supply o!

worers – Special attention should be paid to

current and !uture shortages ando#ersta$ng

– Decruitment or o!nsi"ing may beused to reduce supply and balancedemand


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Strategies for #anaging $mployeeShortages an Surpluses

Strategies for #anagingShortages

• Recruit new permanent

employees• 9"er incenti#es to postpone

retirement

• Rehire retirees part*time

• Attempt to reduce turno#er

• :or current sta" o#ertime• Subcontract wor out

• Hire temporary employees

• Redesign %ob processes so that!ewer employees are needed

Strategies for #anagingSurpluses

•

Hiring !reeze• 9"er early retirement

incenti#es

• 8oluntary se#erance) lea#eso! absence

• Across*the*board pay cuts

• 5ayo"s

• Reduce outsourced wor

• Switch to #ariable pay plan

• '0pand operations

Documents

Chapter 1- HR Planning