Human Resource Planning - Dr. Nghia Trong Nguyen ?· Human Resource Planning ... Human Resource Information…

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  • Human Resource Planning

    Chapter 5

  • Learning Objectives

    1. Define human resource planning (HRP).

    2. Summarize the relationship between HRP and organizational planning.

    3. Explain strategy-linked HRP.

    4. Identify the steps in the HRP process.

    5. Describe the different methods used for forecasting human resource needs.


  • Learning Objectives (cont.)

    6. Discuss the purpose of a skills inventory.

    7. Describe succession planning.

    8. Define a human resource information system (HRIS).

    9. Differentiate between the Internet and an intranet.

    10.Explain what Web 2.0 is.

    11.Define the concept software as a service.


  • Human Resource Planning

    Human resource planning (HRP)

    Process of determining the human resource needs of an organization and ensuring that the organization has the right number of qualified people in the right jobs at the right time

    Workforce planning


  • Human Resource Planning

    Need for HRP is due to the significant lead time that normally exists between the recognition of the need to fill a job and securing a qualified person to fill that need.

    Not always possible to go out and find an appropriate person overnight.

    Effective HRP can reduce turnover by keeping employees apprised of their career opportunities within the company.


  • How HRP Relates to Organizational Planning

    Success of HRP depends on how closely the human resource department can integrate effective people planning with the organizations business planning process


  • How HRP Relates to Organizational Planning

    To accomplish this, the planning process should provide:

    A clear statement of the organizations mission

    A commitment from staff members to the mission

    An explicit statement of assumptions

    A plan of action in light of available or acquirable resources, including trained and talented people


  • How HRP Relates to Organizational Planning

    A common error occurs when human resource planners focus on short-term replacement needs and fail to coordinate their plans with strategic and long-term plans of the organization


  • Linking HRP to the Business Strategy


    Table 5.1

  • Strategy-Linked HRP

    Strategy-linked HRP

    based on a close working relationship between human resource staff and line managers


  • Strategy-Linked HRP

    Human resource managers serve as consultants to line managers concerning the people-management implications of business objectives and strategies.

    Line managers, in turn, have a responsibility to respond to the business implications of human resource objectives and strategies


  • Time Frame of HRP

    Organizational plans are frequently classified as:

    Short-range (zero to two years)

    Intermediate range (two to five years)

    Long-range (beyond five years)


  • HRP An Evolving Process

    Stage 1

    Companies have no long-term business plans, and do little or no human resource planning

    Stage 2

    Companies have a long-term business plan, but tend to be skeptical of HRP

    Stage 3

    Companies engage in some aspects of human resource planning, but these efforts are not integrated into long-range business plan


  • HRP An Evolving Process

    Stage 4

    Companies do a good deal of human resource planning, and their top managers are enthusiastic about the process

    Stage 5

    Companies treat human resource planning as an important and vital part of their long-term business plan


  • Steps in Human Resource Planning Process


    Figure 5.1

  • Determining Organizational Objectives

    Organizational objectives

    Statements of expected results that are designed to give the organization and its members direction and purpose.


  • Determining Organizational Objectives

    Cascade approach to setting objectives

    Objective-setting process designed to involve all levels of management in the organizational planning process.


  • Cascade Approach to Setting Objectives


    Figure 5.2

  • Environmental Factors Affecting Human Resource Needs


    Government influences

    General economic conditions

    The competition

    Changes in the


  • Methods of Forecasting Human Resource Needs

    Managerial estimates

    Judgmental method of forecasting that calls on managers to make estimates of future staffing needs

    Scenario analysis

    Using workforce environmental scanning data to develop alternative workforce scenarios


  • Methods of Forecasting Human Resource Needs

    Delphi technique

    Uses a panel of experts to make initially independent estimates of future demand.

    Intermediary then presents each experts forecast and assumptions to the other members of the panel.

    Each expert is then allowed to revise his or her forecast as desired.

    Process continues until some consensus or composite emerges.


  • Methods of Forecasting Human Resource Needs


    Thoroughly examining internal practices and procedures and measuring them against the ways other successful organizations operate.


  • Statistical Modeling Techniques Used to Forecast Human Resource Needs

    5-23 Table 5.3

  • Determining Additional (Net) Human Resource Requirements

    Skills inventory

    Consolidated list of biographical and other information on all employees in the organization


  • Skills Inventory Categories

    Personal data


    Special qualifications

    Salary and job history

    Company data

    Capacity of individual

    Special preferences of the individual


  • Skills Inventory


    Furnishes a means to quickly and accurately evaluate skills available within organization

    Helps determine promotion and transfer decisions

    Aids in planning future employee training and management development programs


  • Determining Additional (Net) Human Resource Requirements

    Management inventory

    Specialized, expanded form of skills inventory for an organizations current management team

    usually includes a brief assessment of past performance and potential for advancement.


  • Adding Human Resources

    Contingency workers and outsourcing have the advantage of allowing the organization to easily accommodate swings in demand for human resources

    Agencies often provide both testing and training for employees before they are hired


  • Reducing Human Resources - Downsizing




    Early retirement

    Voluntary resignation

  • Other Approaches for Reducing Human Resource Costs



    Work sharing

    Job sharing


  • Other Approaches for Reducing Human Resource Costs


    demoting an employee, downgrading job responsibilities, or a combination of the two.


    involves moving the employee to another part of the organization.


  • Other Approaches for Reducing Human Resource Costs

    Work sharing

    seeks to limit layoffs and terminations through the proportional reduction of hours among employees

    Job sharing

    occurs when two or more part-time individuals perform a job that would normally be held by one full-time person


  • Succession Planning

    Succession planning

    Technique that identifies specific people to fill future openings in key positions throughout the organization.


  • Succession Planning

    1. Define what competencies people must possess to move the organization forward both now and in the foreseeable future.

    2. Focus on critical positions

    3. Evaluate the current talent pools; distinguish between current performance and future potential

    4. Identify individual development needs.


  • Human Resource Information System (HRIS)

    Human resource information system (HRIS)

    A database system that contains all relevant human resource information and provides facilities for maintaining and accessing these data.


  • Human Resource Information Systems (HRIS)


    Its potential for producing more accurate and more timely information for operating, controlling, and planning purposes than manual or payroll-based systems can produce

    Gets rid of paper files usually maintained

    New software packages are much more user-friendly and, thus, require less training and time to implement

    36 5-36

  • Human Resource Information Systems (HRIS)


    Its financial cost and labor requirements for implementing system these problems have greatly diminished as a result of new software


  • Applications for HRIS


    Applicant search expenditures

    Risk management

    Training management

    Training experiences

    Financial planning

    Turnover analysis

    Succession planning

    Flexible-benefits administration


    Attendance report