HUMAN RESOURCE PLANNING

1. HUMAN RESOURCE PLANNING .

2. Human Resource Planning (HRP) • First component of HRM strategy • All other functional HR activities are derived from & flow out of HRP process • Basis in considerations of future HR requirements in light of present HR capabilities & capacities • Proactive in anticipating & preparing flexible responses to changing HR requirements • Both internal & external focus

3. Human Resource Planning (HRP) • Goes beyond simple hiring & firing • Involves planning for deployment of human capital in line with organization &/or business unit strategy • May involve: • Reassignment • Training & development • Outsourcing • Using temporary help or outside contractors • Needs as much flexibility as possible

4. Key Objectives of HR Planning • Prevent overstaffing & understaffing • Ensure organization has right employees with right skills in right places at right times • Ensure organization is responsive to changes in environment • Provide direction & coherence to all HR activities & systems • Unite perspectives of line & staff managers

5. Types of Planning • Aggregate Planning • Anticipating needs for groups of employees in specific, usually lower level jobs & general skills employees will need to ensure sustained high performance • Succession Planning • Focuses on ensuring key critical management positions in organization remain filled with individuals who provide best fit

6. Aggregate Planning • Forecasting demand • Considers firm’s strategic plan’s effects on increases or decreases in demand for products or services • Assumptions on which forecast is predicated should be written down & revisited when conditions change • Unit forecasting (bottom-up planning) involves “point of contact” estimation of future demand for employees • Top-down forecasting involves senior managers allocating a fixed payroll budget across organizational hierarchy • Demand for employee skills requirements must also be considered

7. Aggregate Planning • Forecasting supply • The level and quantities of abilities, skills & experiences can be determined using Skills Inventory. • Annually updated human resource information system (HRIS) is dynamic source of HR information • Markov analysis can be used to create transition probability matrix that predicts mobility of employees within organization

8. Recruit new permanent employees Offer incentives to postpone retirement Rehire retirees part-time Attempt to reduce turnover Work current staff overtime Subcontract work out Hire temporary employees Redesign job processes so fewer employees are needed Strategies for Managing Shortages

9. Hiring freezes Do not replace those who leave Offer early retirement incentives Reduce work hours Voluntary severance leaves of absence Across-the-board pay cuts Layoffs Reduce outsourced work Employee training Switch to variable pay plan Expand operations Strategies for Managing Surpluses

10. Succession Planning • Involves identifying key management positions the organization cannot afford to have vacant • Purposes of succession planning • Facilitates transition when employee leaves • Identifies development needs of high-potential employees & assists in career planning • Many organizations fail to implement succession planning effectively • Qualified successors may seek external career advancement opportunities if succession is not forthcoming

11. Guidelines for Effective Succession Planning • Tie into organization’s strategy (and modified accordingly) • Monitor the progress and measure outcomes of succession planning initiatives • Ensure that all HR functions that impact the succession plan are iterated and working in tandem • Ensure centralized coordination of succession planning • Engage and involve managers throughout the organization

12. Stages in Human Resource Planning • Forecasting • Goal Setting and Strategic Planning • Program Implementation and Evaluation

13. Forecasting Stage of Human Resource Planning • Determining Labor Demand • derived from product/service demanded • external in nature • Determining Labor Supply • internal movements caused by transfers, promotions, turnover, retirements, etc. • transitional matrices identify employee movements over time • Determining Labor Surplus or Shortage

14. Downsizing • Downsizing is the planned elimination of large numbers of personnel designed to enhance organizational competitiveness. • Reasons for downsizing include: • need to reduce labor costs • technological changes reduce need for labor • mergers and acquisitions reduce bureaucratic overhead • organizations choose to change the location of where they do business

15. Effects of Downsizing • Studies show that firms that announce a downsizing campaign show worse, rather than better financial performance. • Reasons include: • The long-term effects of an improperly managed downsizing effort can be negative. • Many downsizing campaigns let go of people who turn out to be irreplaceable assets. • Employees who survive the staff purges often become narrow-minded, self-absorbed, and risk-averse.

16. Early Retirement Programs • The average age of the U.S. workforce is increasing. • Baby boomers are not retiring early for several reasons: • improved health of older people • a fear that Social Security will be cut • mandatory retirement is outlawed • Many employers try to induce voluntary attrition among older workers through early retirement incentive programs.

17. Employing Temporary Workers • Hiring temporary workers helps eliminate a labor shortage. • Temporary employment affords firms the flexibility needed to operate efficiently in the face of swings in demand. • Other advantages include: • temporary workers free a firm from many administrative tasks and financial burdens • temporary workers are often times tested by a temporary agency • many temporary agencies train employees before sending them to employees

18. Outsourcing and Offshoring • Outsourcing is an organization’s use of an outside organization for a broad set of services. • Offshoring is a special case of outsourcing where the jobs that move actually leave one country and go to another. • To help ensure the success of outsourcing: • Choose an outsourcing vendor that is large and established. • Jobs that are proprietary or require tight security should not be outsourced. • It is a good idea to start small and monitor constantly.

19. Affirmative Action Planning • It is important to plan for various subgroups within a labor force. • A comparison of the proportion of workers in protected subgroups with the proportion that each subgroup represents is called a workforce utilization review. • The steps required to execute an affirmative action plan are identical to the steps in the generic planning process discussed earlier.

20. The Human Resource Recruitment Process Job Choice Job Choice Vacancy Characteristics Applicant Characteristics Personnel Policies Recruiter Traits and Behaviors Recruitment Sources Recruitment Influences

21. Recruitment Sources Colleges and Universities - campus placement services Internal Sources - Faster, cheaper, more certainty Public & Private Employment Agencies - headhunters, can be expensive JOBS External Sources - New ideas and approaches JOBS Electronic Recruiting - the Internet Direct Applicants and Referrals - self selection, low cost Newspaper Advertising - large volume, low quality recruits