020055 Human Resource Management

Week 2 – Human Resource Planning

 Course structure
Core Text
Week 1 Introduction to HRM
Fundamentals of Human Resource Week 2 Human Resource Planning
Management Week 3 Job Analysis & Design
by Gary Dessler Week 4 Recruitment & Selection
5th edition (global edition), 2019 Week 5 Training & Development
Pearson Week 6 Performance Appraisal
Week 7 Managing Careers & Retention
Week 8 Presentation
Week 9 Compensation
Week 10 Employee Health & Safety, Labor
Relations, and Unions
Week 11 Review
 Return to Last Week

Human Resource is the process of acquiring, training, appraising, and compensating employees,
Management and of attending to their labor relations, health and safety, and fairness
concerns.
recruiting, selecting, training, compensating, appraising, and developing
HRM functions & activities
serving for personnel, functional, organizational, and societal objectives

HR Department and HR Manager provide various staff services to line

HRM responsibilites management.
HR management is an integral part of every line manager’s responsibilities.
changes in workforce demographics, technological changes, the expanding
Trends shaping HRM
use of social media and digital tools, globalization, and economic
challenges.
the principles of conduct governing an individual or a group;
HRM and Ethics
specifically the standards you use to decide what your conduct should
be.

organization must set policies, definite procedures, and well-defined disciplines relating to its
fdd
personnel, and these contribute to the effectiveness, continuity and stability of the
organization.
 Moving to Week 2

HUMAN RESOURCE
PLANNING
 HEADLINE

technological advances major employers with

reduced demands for business factories in the region
jets
Beechcraft’s bankruptcy rejuvenate the aircraft industry in the city
Boeing’s relocation ◇ private and public organizations have banded
shortfall of skilled workers
together to attract more skilled workers.
a generational turnover ◇ build an innovation campus (Wichita State Uni.)
◇ offer free tuition to train workers
◇ partnerships between industry and education
a 25 percent reduction
institutions to make the city an employment
destination of choice for educated and skilled
over 69,000 people workers. Wichita, Kansas
2008
worked in aviation- the ‘air capital of the
related jobs world’
Learning
Objectives
By the end of this week, you should have a good
understanding of:

✔ Define human resource planning (HR planning)

✔ Identify key factors that influence HR planning
✔ Understand the basic approaches to HR planning
✔ Describe the ways of forecasting HR requirements
✔ Explain HR planning process and the prerequisites
for a successful HR planning process
Learning
Contents
01 Human Resource Management
Environment

02 Human Resource Planning

03 Workforce Forecasting

04 Strategic HRM
1 – Human Resource Management
Environment
Human Resource Management Environment

• the quality and quantity of labors

strengths & • organizational culture
weaknesses • employee pipeline, leadership bench
strength

internal
environment
• political, legislative, economic,
opportunitie sociocultural, technological, global,
s & threats demographic factors
• competitive forces
Human Resource Management Environment
Environmental scanning

Your Thought Matters

What are some of the frameworks that we

can use in order to analyze the external
environment?
2 – Human Resource Planning
PAUSE POINT

Marlene – Sales Manager for Epoch How could she get some
Holdings good candidates without
• responsibility: leading the sales team to sell violating the company’s HR
real estate and condominium apartments. policies?
• problem: most of the salesperson candidates
the HR department sent her simply don’t fill
the bill.
Human Resource Planning

workforce | employment | personnel planning

the process of deciding what positions the firm will have to fill, and how to fill them

▷ the required number of employees with the appropriate knowledge, skills, and
abilities

the current
organization’s employees who
forecasted might be
workforce suitable for
needs filling those
needs
Human Resource Planning
 Human Resource Planning
Human Resource Planning Process

Environmental Assess External Compile HR Develop HR

1 Scanning |
Reviewing
Strategic Plan
2 & Internal
Workforce 3 Planning
Forecasts 4
Staffing Plans &
Actions

▷ environmental ▷ external & internal ▷ demands for human ▷ employee

influencers workforce resources retention &
▷ organizational availability ▷ supply of human turnover
objectives & ▷ external conditions resources outside ▷ recruiting sources
business goals & influences and within the & means
▷ internal workforce organization ▷ selection process
capabilities & & actions
Human Resource Planning
Human Resource Planning Process

external workforce internal workforce

Planning for
availability availability
o economic and o current and future
political factors jobs audit
o geographic & o employee and
competitive organizational
evaluations capabilities
o changing workforce inventory
considerations
Human Resource Planning
Human Resource Planning Process

Your Thought Matters

What are major challenges or barriers to HR

Planning?
Human Resource Planning
Human Resource Planning: Reflective Points

✔ HR planing must be recognized as an integral part of strategic planning.

✔ Support from top management (with organizational objectives) is

essential
✔ It should be triggered from the systematic monitoring of the external
factors influencing the organization.
✔ Techniques used for HR planning should be those best suited to the data
available and degree of accuracy required.
✔ Data collection, techniques of planning and the plan themselves need to
be constantly revised and improved in light of experience.
3 – Workforce Forecasting
Workforce Forecasting
Forecasting HR Supply & Demand

1. demand for human resources within the organization [personnel needs]

2. supply of human resources available within the organization [supply of inside
candidates]
3. supply of external human resources to the organization [supply of outside candidates]
Workforce Forecasting
Forecasting Workforce Needs [Labor demand]
▷ forecasting revenues >> determining the volume of production needed to meet sales
requirements >> estimating the staff needed to maintain this volume of output
▷ basic tools: trend analysis | ratio analysis | scatter plot

Forecasting internal HR Supply & Demand

forecasting internal Qualitative methods
demand o Expert opinion | the Rule of Thumb | Delphi technique | Nominal group
technique
Quantitative methods
o Statistical regression | Simulation models | Productivity ratios | Staffing
ratios
Qualitative methods: Personnel replacement charts | Skills inventory |
forecasting internal supply
Succession planning
Quantitative methods: Markov analysis
 Valero Energy: Predicting Labor
Needs
Valero Energy created a ‘labor supply chain system’ for improving the
efficiency of its workforce planning, recruiting, and hiring process. It
includes a statistical tool that predicts Valero’s labor needs based on past
trends. And, it includes computer screen ‘dashboards’ that show how
components in the staffing chain, such ads placed on job boards, are
performing according to cost, speed, and quality. Before implementing
this system, it took 41 pieces of paper to bring on board an employee
and more than 120 days to fill a position; each hire cost about $12,000.
the new system eliminated most of the paper forms needed to hire an
employees, time-to-fill feel below 40 days, and cost per hire dropped to

case study
$2,300.
Questions:

Explain how Valero might use the Towers Watson analysis

workforce planning process to further improve its
processes.
(see next slide for the Towers Watson workforce planning process)
Towers Watson Workforce Planning Process
First, Towers Watson reviews the client’s business plan and
workforce data (for instance, on how revenue influences staffing
levels). This helps them understand how projected business changes Workforce
projection
may influence the client’s headcount and skills requirements.
model
Second, they forecast and identify what positions the firm will have
to fill and potential workforce gaps; this helps them understand what
new future positions they’ll have to fill, and what current employees
may be promotable into them.
Third, they develop a workforce strategic plan; here they prioritize
Dashboards
key workforce gaps (such as, what positions will have to be filled, and
who do we have, who can fill them?) and identify specific (recruitment,
training, and other) plans for filling any gaps.
Finally, they implement the plans (for instance, new recruiting and
training programs) and use various metrics to monitor the process.
Towers Watson clients can use its special MAPS software to
facilitate this workforce planning process. MAPS contain dashboards. External
The managers use these, for instance, to monitor key recruitment labor scan
metrics and to conduct a detailed analysis of the current workforce and
historical workforce trends.
4 – Strategic HRM
 Strategic HRM
strategic human resource management
formulating and executing HR policies and
practices that produce the employee
competencies and behaviors the company
needs to achieve its strategic aims.

‘WOW’ – delivering formulating new HRM policies,

Happiness to employees
practices, and plans to produce
the employee skills and
behaviors that the hotel would
need to achieve its strategy of
 IN SUMMARY
HR planning is the process of determining HRs required to achieve its goals; it also looks a broader
issues relating to which people are employed and developed, in order to improve organizational
effectiveness.

HR Planning
• the process of deciding what positions the firm will have to fill, and how to fill them .
HRM Environment
• environmental scanning helps pinpoint internal strengths & weaknesses, opportunities
and threats that organizations may face during the planning horizon
HR Planning process
• 04 basic steps: Environmental scanning, Assess external and internal workforce, Compile HRs
planning forecasts, Develop HR staffing plans and actions
Workforce forecasting
• forecasting personnel needs, forecasting the supply of inside and outside candidates by
quantitative and qualitative methods.
Strategic human resource management
• human resource policies and practices that produce the employee competencies and
behaviors the company needs to achieve its strategic aims
 CRITICAL THINKING

Self-Assessment Questions

◆ Explain the meaning of HR planning and its process.

◆ Choose two tools HR managers use for employment forecasting and explain how to use them.
To Our Next Week

Job Analysis & Design

Read
Chapter 4 – Job Analysis and Talent Management (pg.
113-134)