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Introduction to Human Resource Management. Chapter 3 HR Planning. Highlights. Examine parallels between strategic plans & HR planning methods to establish HR demand & supply shortages and surpluses - some suggestions HR info systems and approached for accounting for HR. Strategic Planning.

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Introduction to Human Resource Management


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    1. Introduction to Human Resource Management Chapter 3 HR Planning

    2. Highlights • Examine parallels between strategic plans & HR planning • methods to establish HR demand & supply • shortages and surpluses - some suggestions • HR info systems and approached for accounting for HR

    3. Strategic Planning • Organizations have LT & ST plans • need tie HR plans into these ones • look @ hiring plans, training, evaluation of labor mkts etc.

    4. Strategic Planning • Staffing shortages = lost business, lost mkt share, large overages • Staffing overages = large costly layoffs etc.

    5. Demand for HR • External factors - economic, social, political, legal, technology, & competition • all beyond Co control • monitor and plan as much as possible

    6. Strategic plans most influential examine LT plans growth rates, new products, mergers etc. budgets new ventures = new resources need some time to develop plan if merger acquisition causes immediate changes to plan and staffing levels structure changes = can create new jobs & reduce others, skill set changes too Organizational Factors

    7. Forecasting HR Needs • Attempts to predict future HR needs - How? • can survey managers to find out future expectations • informal or formal • discussion groups, interviews • data summarized then given back to managers for review

    8. Forecasting HR Needs • Trends - use extrapolation based on historical data or indexation (ie where no are tied to sale numbers etc.) • budgets for various areas can be helpful tools

    9. Review strategic plans look at other Co. with similar ventures can use complex computer modeling systems prediction of LT and ST staffing levels often shown on charts Charts aid in showing & facilitating planning and recruiting strategies good example p. 116 Forecasting HR Needs

    10. Supply • 2 main sources of supply - internal & external • Internal • need to ID supply by evaluating skills & abilities of current staff • common tool HR audit, survey supervisors or do interviews

    11. Internal Supply • Once complete = inventory of current staff • often computerized • need to be updated to be accurate • helps to prevent overlooking internal candidates • from internal info can create replacement charts

    12. Strategies to Match Supply & Demand • Do not have an exact match - need to make adjustments for over & under supply • Over Supply Strategies include: • Hiring Freeze - stop filling using external applicants, staff size reduced by attrition

    13. Voluntary leaves, retirements, resignations help to reduce work force slow method but fewer problems Early Retirement - set up plans designed to encourage long term staff to retire early Job sharing - split one full time job between 2 employees help decrease layoffs and increase employees free time Part Time/Temps/Terms - eliminate full time positions & replace with increase flex. Strategies to Match Supply & Demand

    14. Strategies to Match Supply & Demand • Internal Transfers & Retraining - attempts to find new internal jobs for the surplus/displaced workers • Layoffs - “temporary” withdrawal of employment

    15. Strategies to Match Supply & Demand • May be short term or long term • often severance pay instead of notice for satisfactory performers • severance pay not required if proper notice given

    16. Strategies to Match Supply & Demand • Outplacement Services - if employee is discharged this service/organization assist in job search • can provide office space, photocopier, computer, counseling, classes etc.

    17. Replacement charts show possible replacements both ready & up coming can focus on training and development to ensure coverage incase of unplanned illness Markov analysis is a technique for predicting probability of a person: 1) staying 2) moving on to another job within the company or 3) leaving the company can use for “what if” analysis as well Internal Supply

    18. External Supply • Need to look at 3 factors: 1)labor market 2)community & 3) demographics • may not have a qualified applicant to fill the position - over or under qualified

    19. External Supply - Labor Market & Community • Unemployment rate not always equal to corresponding skill sets (skill unemployment often lower) need research further • need to look at community growth rates as well • ie. smaller populations may lack of jobs and lack of population to draw from

    20. External Supply & Demographics • Info on demographics available from a variety of sources • Cdn Employment & Immigration Canada makes ST est. of HR supply and demands split by occupational group

    21. External Supply & Demographics • Cdn Occupational Projection System (COPS) = LT demographic & supply forecast by industry & province • Human Resource Development Canada (HRDC) & Statistics Canada

    22. Strategies to Match Supply & Demand • Shortage Strategies: • overtime • part time/ terms/ contract / freelance workers • temp agencies • internal transfers to broaden skill set • can cause ripple effect

    23. Strategies to Match Supply & Demand • Might end up with easier position to fill this way • promotions • full time employees • student co-op or work experience programs

    24. Used to collect, record, store , analze and retieve data on human resources need to be timely & accurate criticle to having a good HR department Can assist in output of traditional reports - salary, benefit info etc. can buy off the shelf or develop in house custom need to ensure appropriate access restriction both internal and external Human Resource Info Systems

    25. HR Accounting • Measures present and future value & costs of HR department activities • can retrieve info on costs of turnover, and compare cost vs benefits of training programs etc.

    26. HR Accounting • 2 models: • 1)cost model - places $$ value on human assets (acquisition, replacement, opportunity costs etc.) • 2)value model - measure the value of HR to the organization, subjective