Human Resource ManagementLecture 3

Human Resource Planning

MGT 350

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Last Lecture

– Job Analysis– Job Description – Job specification – Methods of Data collection for Jobs.– Importance of Job Analysis

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Human Resource Management Process

HRP• Human resources planning (HRP) is the process

of forecasting future human resources requirements to ensure that the organization will have the required number of employees with the necessary skills to meet its strategic objectives.

• Effective HRP helps an organization achieve its strategic goals and objectives, anticipate and avoid shortages and surpluses of human resources, as well as control or reduce labor costs.

HRP Process

FORECASTING THE AVAILABILITY OFCANDIDATES (SUPPLY)

• Internal—present employees who can be trained, transferred, or promoted to meet anticipated needs.

• External—people in the labor market not currently working for the organization, including those who are employed elsewhere and those who are unemployed who can be expected to join the organization to meet anticipated needs.

Environment scanning

• Environment scanning involves assessing factors that affect the external labor market as well as an organization’s ability to find and secure talent from outside of the organization.

Skills inventories

• Skills inventories contain comprehensive information about the capabilities of current employees.

• Data gathered for each employee include name, age, date of employment, current position, present duties and responsibilities, educational background, previous work history, skills, abilities, and interests.

Replacement charts

• Replacement charts are typically used to keep track of potential internal candidates for the firm’s most critical positions.

Trend Analysis

• Trend analysis involves studying the firm’s employment levels over the last three to five years to predict future needs.

Year Employees

2010 100

2011 110

2012 121

2013 133

2014 146

Succession Plans

• Forecasting the availability of inside candidates is particularly important in succession planning.

• Family Business Example

• Succession planning refers to the plans a company makes to fill its most important executive positions.

CORRELATIONS/PROJECTIONS

SIZE OF HOSPITAL NUMBER OF NURSES

200 240300 260400 470500 500600 620700 660800 820900 860

VACANCY ANALYSIS

LEVEL # EMPL TURN % Expected Vacancies Expected to Remain

TOP MGMT 100 20 % 20 80

MID MGMT 200 24 % 48 152

LOW MGMT 600 22 % 132 468

SKILLED W 600 16% 96 504

ASSY WKRS 2000 12 % 240 1760

TOTALS 3500 536 2964

AVERAGE TURNOVER PERCENTAGE = 536 / 3500 = .1531

SUCCESSION PLANNING

REPLACEMENT CHARTFOR EXECUTIVE POSITIONS

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - POSITION WESTERN DIVISION SALES MANAGER

DANIEL BEALER Western Division Sales Mgr Outstanding Ready Now

PRESENT PROMOTIONPOSSIBLE CANDIDATES CURRENT POSITION PERFORMANCE POTENTIAL

Candidate 1 Western Oregon Sales Manager Outstanding Ready NowCandidate 2 California Sales Manager Outstanding Needs TrainingCandidate 3 Idaho/Utah Sales Manager Satisfactory Needs Training

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

HUMAN RESOURCE INFORMATION SYSTEMS (HRIS)

PERSONAL DATAAge, Gender, Dependents, Marital status, etc

EDUCATION & SKILLSDegrees earned, Licenses, CertificationsLanguages spoken, Specialty skillsAbility/knowledge to operate specific machines/equipment/software

JOB HISTORYJob Titles held, Location in Company, Time in each position, etc.Performance appraisals, Promotions received, Training & Development

MEMBERSHIPS & ACHIEVEMENTSProfessional Associations, Recognition and Notable accomplishments

CAPACITY FOR GROWTHPotential for advancement, upward mobility and growth in the company

PERSONNEL RATIOSPast experience has developed these ratios for recruiting a Cost Accountant:

FOR EVERY 12 APPLICATIONS RECEIVED, ONLY 1 LOOKS PROMISING ENOUGH TO INVITE FOR AN INTERVIEW

OF EVERY 5 PERSONS INTERVIEWED, ONLY 1 IS ACTUALLY OFFERED A POSITION IN THE ORGANIZATION

OF EVERY 3 JOB OFFERS MADE, ONLY 2 ACCEPT THE POSITION

OF EVERY 10 NEW WORKERS WHO BEGIN THE TRAINING PROGRAM, ONLY 9 SUCCESSFULLY COMPLETE THE PROGRAM

THUS: 100 APPLICATIONS MUST BE RECEIVED, so that8.33 JOB INTERVIEWS CAN BE HELD, so that1.67 JOB OFFERS CAN BE MADE, and1.11 PEOPLE MUST BE TRAINED, so that we getONE NEW COST ACCOUNTANT!!!

MARKOV ANALYSIS

Qualitative Approaches

In contrast to quantitative approaches, which use statistical formulas, qualitative techniques rely solely on expert judgments.

Two approaches used to forecast human resources demand (or supply) are the nominal group and Delphi techniques.

Nominal Group Technique

1. Managers and line managers meet face to face.

2. Each member develop an idea (demand/training).

3. All ideas are presented (no discussion is allowed).

4. Clarification is sought by all members (discussion)

5. Evaluation/ranking of each idea in private.

Delphi Technique

1. The problem is identified (in this case, estimates of demand) and each group member is requested to submit a potential solution by completing a carefully designed questionnaire. Direct face-to-face contact is not permitted.

2. After each member independently and anonymously completes the initial questionnaire, the results are compiled at a centralized location.

3. Each group member is then given a copy of the results.

4. If there are differences in opinion, each individual uses the feedback from other experts to fine-tune his or her independent assessment.

5. The third and fourth steps are repeated as often as necessary until a consensus is reached.

Summary • What is HRP• Supply measurement• Demand MeasurementFORECASTING HR REQUIREMENTS (DEMAND ANALYSIS)

(Trying to predict future staffing needs) Sales ProjectionsVacancy Analysis (projected turnover)

FORECASTING HR AVAILABILITY (SUPPLY ANALYSIS)

(Predicting worker flows and availabilities)Succession or Replacement ChartsSkills Inventories (use of HRIS)Markov Analysis (Transition Matrix)Personnel Ratios

Regression AnalysisTrend Analysis

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