HUMAN RESOURCE PLANNING (HRP) and HRAUDIT.pdf

8/14/2019 HUMAN RESOURCE PLANNING (HRP) and HRAUDIT.pdf

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LEARNING OBJECTIVES

Ms Shabnam

Define Human Resource Planning (HRP)

Understand the nature and importance of HRP

Analyse and evaluate the factors affecting HRP

Critically evaluate the HRP process


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HUMAN RESOURCE PLANNING (HRP)

Ms Shabnam

Human Resource Planning (HRP) refers to theprocess of evaluation and identification of HRrequirements for meeting organisational goals toensure competitive advantage in the marketplace.

HRP should be a key component of nearly everycorporationsstrategic business planning.

HRP translates the organisations objectives andplans in to the number of workers needed to meetthose objectives.


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HUMAN RESOURCE PLANNING (HRP)

Ms Shabnam

HRP planning approach addresses the followingquestions

How many employees do we have/need?

How are they distributed? Their department/branch locations

What is the age profile?

How many will leave in each of the next five years? How many will be required in one, five, ten years?


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Characteristics of Strategic HRP

Ms Shabnam

Having adequate number of employees

Having the right mixture of talent

Moves beyond the traditional role of HR as primarily

an administrative control function Adds value to the organisation


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The Importance of Strategic HRP

Ms Shabnam

Provides a road map for future staffing requirements-provides

future personnel needs

Business competition- to consider optimal solutions for the long-

term and under challenging economic conditions-enables to cope

with business changes

Employee Development-documents the talents and skills of

people who are in place and creates a highly talented workforce

Can anticipate resistance to change and re-location


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Factors that Affect HRP

Ms Shabnam

The stage of business- business growth, businesschange and business decline

Labour cost control- labour budgeting

Impact of Technology Labour market trends and regulations

Demographic trends


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Factors that Affect HRP

Ms Shabnam

Human Resources are unpredictable-they can easilyupset plans through resigning, being sick, refusing totake up certain roles

Surpluses and deficits are more difficult to manage Human Resources need careful and sensitive to

handling, which requires substantial thought andcare on the part of HR managers


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Human Resource Planning Process

Ms Shabnam

The HRP process has to take account of theorganisations likely future demand for labour and ofthe potential supply of labour

Demand forecasting

Supply forecasting


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Human Resource Planning Process

Ms Shabnam

Demand Forecasting: This entails estimating theorganisations future staffing requirement in terms ofnumbers and skills, by reference to its aims andobjectives and taking account of changes in working

practices and activity levels.

Supply Forecasting: This entails estimating thelikely future labour supply, both from and within the

organisation taking account of employee wastage,current skills mix, performance, etc. and from outsidethe organisation taking account of the potential pool ofstaff with the right levels of knowledge and skill.


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STEPS FOR EFFECTIVE HR PLANNING

Ms Shabnam

Demand Forecasting

Inventory Analysis and Supply Forecasting

Audit

Reconciliation Control


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Ms Shabnam

Inventory analysis is keeping track of the currentemployees in the organisation to determine the extentto which this meets the forecast

The HR Inventory Analysis Entails Skills inventory or keeping track of the number of

employees and the age, locations, qualifications, andskills of each employee to determine the specific role

each employee would fill in the short term and in thelong term


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Ms Shabnam

Forecasting resignations and recruitment andunderstanding their impact on the skills inventorylevels

Forecasting leaves, transfers, dismissals, sabbaticals,prolonged illness

Internal supply of HR include methods such as

replacement schedules, succession planning


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AUDIT

Ms Shabnam

Audit is the process of reconciling inventory with

forecast through a systematic analysis of demand and

supply forecasting and identifying areas where

shortages and surpluses exist


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AUDIT

Ms Shabnam

The audit phase also involves

Identifying reasons for resignations, the cost of suchresignations such resignations such as recruitmentand training costs of new hires, cost of lost

experience, skills and knowledge of the departingemployee and devise retention plans to retain keytalent

Review the effectiveness of the recruitment activities,

training and development initiatives, career planningexercises, succession planning and otherinterventions


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RECONCILIATION

Ms Shabnam

Action plans to bridge the gap between forecast and supply

The various alternatives include:

Strategy to recruit new employees

Adopting retrenchment or downsizing strategy to shedexcess workforce

Training and development plans to right-size theworkforce

Career planning and succession planning to identify key

personnel Changes in work regulation such as timings, overtime

policy etc


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CONTROL

Ms Shabnam

Monitoring and controlling the implementation ofthe HR plan

This entails ensuring implementation proceeds inaccordance with the plan and also taking timely coursecorrections

Documents

HUMAN RESOURCE PLANNING (HRP) and HRAUDIT.pdf