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HUMAN RESOURCE How do HR plan resource needs and sourcing?. Edited by Fabio Emanuele Noia, Link Campus University of Malta, 2006. Chapter 6 Human Resource Planning. - PowerPoint PPT Presentation
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HUMAN RESOURCEHUMAN RESOURCE
How do HR plan How do HR plan resource needs and resource needs and
sourcing?sourcing?
Freely Inspired from Bratton J., Gold J., Human Resource Management, Freely Inspired from Bratton J., Gold J., Human Resource Management, Theory and Practice, Palgrave, 2003 Theory and Practice, Palgrave, 2003 http://www.palgrave.com/business/brattonandgold/
Edited by Fabio Emanuele Noia, Link Campus University of Malta, 2006Edited by Fabio Emanuele Noia, Link Campus University of Malta, 2006
Chapter 6 Chapter 6
Human Resource PlanningHuman Resource Planning
HR PlanningHR Planning________________________
The process of The process of systematically systematically
forecasting the future forecasting the future demand and supply for demand and supply for
employees and the employees and the deployment of their deployment of their
skills within the skills within the strategic objectives of strategic objectives of
the organisation.the organisation.
Freely Inspired from Bratton J., Gold J., Human Resource Management, Freely Inspired from Bratton J., Gold J., Human Resource Management, Theory and Practice, Palgrave, 2003Theory and Practice, Palgrave, 2003
Manpower planningManpower planning________________________
Linear processLinear processdealing with numbers (heads):dealing with numbers (heads):
1. evaluation of existing 1. evaluation of existing resourcesresources
2. Estimation of proportion likely 2. Estimation of proportion likely to be within the firm by the to be within the firm by the
forecast dateforecast date3. Assessment of labor 3. Assessment of labor
requirements needed to meet requirements needed to meet objectivesobjectives
4. Measures to ensure necessary 4. Measures to ensure necessary resources are avilable when resources are avilable when
requiredrequired
Freely Inspired from Bratton J., Gold J., Human Resource Management, Freely Inspired from Bratton J., Gold J., Human Resource Management, Theory and Practice, Palgrave, 2003Theory and Practice, Palgrave, 2003
Manpower planningManpower planning________________________
Demand work – analysing, Demand work – analysing, reviewing, and attempting to predict reviewing, and attempting to predict the numbers, by kind, of manpower the numbers, by kind, of manpower
needed to achieve objectives.needed to achieve objectives.
Supply work – attempting to predict Supply work – attempting to predict what action was and would be what action was and would be necessary to ensure that the necessary to ensure that the
manpower needed is available when manpower needed is available when requiredrequired
Designing the interaction between Designing the interaction between demand and supply so that skills demand and supply so that skills are utilized to the best possible are utilized to the best possible
advantage and the legitimate advantage and the legitimate aspirations of the individual are aspirations of the individual are
taken into acconttaken into accont
Smith (1980)Smith (1980)Freely Inspired from Bratton J., Gold J., Human Resource Management, Freely Inspired from Bratton J., Gold J., Human Resource Management, Theory and Practice, Palgrave, 2003Theory and Practice, Palgrave, 2003
Manpower planningManpower planning________________________
Organizational strategy ad targetsOrganizational strategy ad targets
Organization practice and methodsOrganization practice and methods
Manpower review and analysisManpower review and analysisInternal ExternalInternal External
ForecastForecast
Demand SupplyDemand Supply
Adjust to BalanceAdjust to Balance
Recruit Retrain ReduceRecruit Retrain Reduce
Freely Inspired from Bratton J., Gold J., Human Resource Management, Freely Inspired from Bratton J., Gold J., Human Resource Management, Theory and Practice, Palgrave, 2003Theory and Practice, Palgrave, 2003
Manpower measurement Manpower measurement ToolboxToolbox
________________________
TurnoverTurnover
RetentionRetention
StabilityStability
AbsenteeismAbsenteeism__________________________________
Computerized Personnel Computerized Personnel Information Systems (CPISs)Information Systems (CPISs)www.acas.org.uk/publications
/pub_ab__absenceturnover.html
www.softwaresource.co.uk
Freely Inspired from Bratton J., Gold J., Human Resource Management, Freely Inspired from Bratton J., Gold J., Human Resource Management, Theory and Practice, Palgrave, 2003Theory and Practice, Palgrave, 2003
Manpower planningManpower planning________________________
Diagnostic approach Diagnostic approach include include monitoring and analysis in monitoring and analysis in the attempt to understand the attempt to understand
causes and plan accordingly.causes and plan accordingly.__________________________________
The most probable real-life The most probable real-life situation is one of continuous situation is one of continuous imbalance between demand imbalance between demand and supply, as a result of the and supply, as a result of the
dynamic conditions facing dynamic conditions facing any organization, the any organization, the
behavior of people and the behavior of people and the imperfections of manpower imperfections of manpower
models.models.
Freely Inspired from Bratton J., Gold J., Human Resource Management, Freely Inspired from Bratton J., Gold J., Human Resource Management, Theory and Practice, Palgrave, 2003Theory and Practice, Palgrave, 2003
Reasons for High Staff Reasons for High Staff TurnoverTurnover
________________________
Job not matching new Job not matching new employees expectationsemployees expectations
Lack of attention from line Lack of attention from line managers and a lack of trainingmanagers and a lack of training
Lack of autonomy, Lack of autonomy, responsibility, challenge, and responsibility, challenge, and
variety within the workvariety within the workDisappointment with the Disappointment with the
promotion and development promotion and development opportunitiesopportunities
Standards of management, Standards of management, including unapproachable, including unapproachable,
uncaring and distant behavior uncaring and distant behavior and a failure to consultand a failure to consult
Freely Inspired from Bratton J., Gold J., Human Resource Management, Freely Inspired from Bratton J., Gold J., Human Resource Management, Theory and Practice, Palgrave, 2003Theory and Practice, Palgrave, 2003
How to deal with worker How to deal with worker shortageshortage
________________________
Do nothingDo nothing
Identify new and substitute Identify new and substitute supplysupply
Improve use and Improve use and performance of existing performance of existing
workersworkers
Human Resource PlanningHuman Resource Planning
Freely Inspired from Bratton J., Gold J., Human Resource Management, Freely Inspired from Bratton J., Gold J., Human Resource Management, Theory and Practice, Palgrave, 2003Theory and Practice, Palgrave, 2003
HR PlanningHR Planning________________________________
HRP seeks to make the HRP seeks to make the links between strategy, links between strategy,
structure and people structure and people more explicit.more explicit.
Training, reward, Training, reward, quality and quality and
commitment to work commitment to work together in high together in high
peformance settingspeformance settings
Freely Inspired from Bratton J., Gold J., Human Resource Management, Freely Inspired from Bratton J., Gold J., Human Resource Management, Theory and Practice, Palgrave, 2003Theory and Practice, Palgrave, 2003
HR accounting (HRA)HR accounting (HRA)
Process of identifying, Process of identifying, quantifying, accounting and quantifying, accounting and
forecasting the value of human forecasting the value of human resources in order to facilitate resources in order to facilitate
effective HRM. effective HRM.
““people on the balance sheet – people on the balance sheet – as assets”as assets”
““People have a value that is People have a value that is greater than their cost”greater than their cost”
Difficult to capture, knowledge is Difficult to capture, knowledge is an intangible asset (intellectual an intangible asset (intellectual
capital)capital)
Freely Inspired from Bratton J., Gold J., Human Resource Management, Freely Inspired from Bratton J., Gold J., Human Resource Management, Theory and Practice, Palgrave, 2003Theory and Practice, Palgrave, 2003
HR accounting (HRA)HR accounting (HRA)
Intellectual capitalIntellectual capital in an in an organization is composed organization is composed of of structural capitalstructural capital (HW, (HW,
SW, brands and SW, brands and relationship with relationship with
customers and suppliers) customers and suppliers) and and human capitalhuman capital
(knowledge and skills as (knowledge and skills as well as employees values well as employees values
and culture).and culture).
Difference between book Difference between book value and market value.value and market value.
Freely Inspired from Bratton J., Gold J., Human Resource Management, Freely Inspired from Bratton J., Gold J., Human Resource Management, Theory and Practice, Palgrave, 2003Theory and Practice, Palgrave, 2003
e-HRe-HR
Human Resource Information SystemsHuman Resource Information Systems
1.1. Transaction Transaction processing/reporting/tracking processing/reporting/tracking
applications covering operational applications covering operational activities (payroll, recordkeeping, activities (payroll, recordkeeping,
and performance monitoring)and performance monitoring)
2.2. Expert systems to improve Expert systems to improve decision making based on an decision making based on an
analysis of decisions concerning analysis of decisions concerning such issues as sources of new such issues as sources of new recruits, salaries and training recruits, salaries and training
needsneeds3.3. Decision support systems to Decision support systems to
improve decision making through improve decision making through the use of scenario modelling in the use of scenario modelling in areas where there are no clear areas where there are no clear answers (team formation and answers (team formation and
management development management development programmes).programmes).
Freely Inspired from Bratton J., Gold J., Human Resource Management, Freely Inspired from Bratton J., Gold J., Human Resource Management, Theory and Practice, Palgrave, 2003Theory and Practice, Palgrave, 2003
FlexibilityFlexibilityLabor market Labor market
segmentation (Loveridge, segmentation (Loveridge, 1983)1983)
Freely Inspired from Bratton J., Gold J., Human Resource Management, Freely Inspired from Bratton J., Gold J., Human Resource Management, Theory and Practice, Palgrave, 2003Theory and Practice, Palgrave, 2003
Primary Primary internal internal marketmarket
Primary Primary external external marketmarket
Secondary Secondary external external marketmarket
Secondary Secondary internal internal marketmarket
Low span of discretion and Low span of discretion and unstable earningsunstable earnings
High span of discretion and High span of discretion and longterm stable earningslongterm stable earnings
Flexible Flexible but but specific specific skillsskills
SpecialiSpecialised but sed but general general skilsskils
FlexibilityFlexibility
Functional (through operations)Functional (through operations)Numerical (adjust to fluctuation)Numerical (adjust to fluctuation)
Distancing strategies Distancing strategies (outsource)(outsource)
Financial (pay and reward Financial (pay and reward structure)structure)
Core workersCore workersVs Vs
Peripheral workersPeripheral workers
Freely Inspired from Bratton J., Gold J., Human Resource Management, Freely Inspired from Bratton J., Gold J., Human Resource Management, Theory and Practice, Palgrave, 2003Theory and Practice, Palgrave, 2003
TeleworkingTeleworking
Multi-siteMulti-site
Tele-homeworkingTele-homeworking
Freelancing (go portfolio)Freelancing (go portfolio)
Mobile (on the road)Mobile (on the road)
Relocated back-functions (call Relocated back-functions (call centers)centers)
Freely Inspired from Bratton J., Gold J., Human Resource Management, Freely Inspired from Bratton J., Gold J., Human Resource Management, Theory and Practice, Palgrave, 2003Theory and Practice, Palgrave, 2003
Career management and Career management and developmetdevelopmet
Career = movement to Career = movement to predefined stagespredefined stages
But also personal growth and But also personal growth and development through development through
employees’ interaction with their employees’ interaction with their work environment.work environment.
Developing potential (Hirsch, Developing potential (Hirsch, 1990) – posts can be considered 1990) – posts can be considered as ephemeral and be designed as ephemeral and be designed
around people. around people.
Freely Inspired from Bratton J., Gold J., Human Resource Management, Freely Inspired from Bratton J., Gold J., Human Resource Management, Theory and Practice, Palgrave, 2003Theory and Practice, Palgrave, 2003
Career management and Career management and developmetdevelopmet
Adamson (1998) suggest:Adamson (1998) suggest:
An end to the long-term view of An end to the long-term view of employer-employee relationshipemployer-employee relationship
An end to hierarchical An end to hierarchical movement as being career movement as being career
progressionprogression
An end to logical, ordered and An end to logical, ordered and sequential careersequential career
Freely Inspired from Bratton J., Gold J., Human Resource Management, Freely Inspired from Bratton J., Gold J., Human Resource Management, Theory and Practice, Palgrave, 2003Theory and Practice, Palgrave, 2003
Career management and Career management and developmetdevelopmet
Segmented patterns of development Segmented patterns of development with a rhetoric of career development with a rhetoric of career development
for everyone but with different for everyone but with different patterns:patterns:
Senior managers and high potentialSenior managers and high potential staffstaff – careers managed by – careers managed by
organization, with succession organization, with succession planning to fill senior positionsplanning to fill senior positions
Highly skilled workersHighly skilled workers – attempt to – attempt to attract and keep key workers by attract and keep key workers by
offering career development pathsoffering career development paths
The wider workforceThe wider workforce – more limited – more limited development opportunities often development opportunities often
caused by and resulting in uncertainty caused by and resulting in uncertainty over career paths, expectation taht over career paths, expectation taht
they will look for themselves.they will look for themselves.
Freely Inspired from Bratton J., Gold J., Human Resource Management, Freely Inspired from Bratton J., Gold J., Human Resource Management, Theory and Practice, Palgrave, 2003Theory and Practice, Palgrave, 2003
Career management and Career management and developmetdevelopmet
Ball (1997) development of career Ball (1997) development of career management skills will benefit management skills will benefit
both organizations and both organizations and individuals:individuals:
1.1. Optimize the situation Optimize the situation
2.2. Career planningCareer planning
3.3. Engaging in personal Engaging in personal developmentdevelopment
4.4. Balance between work and non Balance between work and non workwork
Freely Inspired from Bratton J., Gold J., Human Resource Management, Freely Inspired from Bratton J., Gold J., Human Resource Management, Theory and Practice, Palgrave, 2003Theory and Practice, Palgrave, 2003
AssignmentAssignment______________________
VisitVisitwww.dfee.gov.uk/datasphere/
www.statistics.gov.UK/statbase/Product.asp?vlnk=550&More=N
Freely Inspired from Bratton J., Gold J., Human Resource Management, Freely Inspired from Bratton J., Gold J., Human Resource Management, Theory and Practice, Palgrave, 2003Theory and Practice, Palgrave, 2003