Human Resource Planning

Overview
Definition Objectives How HRP Relates to Organizational Planning / Strategy Steps in the HRP Process Tools and Techniques of HRP

What is Workforce Planning?

Human Resource / Manpower / Personnel/ Employment Planning The process of deciding what positions the firm will have to fill, and how to fill them. The development of a comprehensive staffing strategy for meeting the organizations future human resource needs.

HRP
Getting the right number of people with the right set of competencies in the right jobs at the right time. A management framework for making staffing decisions and related investments based on an organizations mission, strategic plan, budgetary resources, and desired workforce competencies.

Manpower Planning
Process by which a firm ensures that it has the Right number of people Right kind of people At the right places At the right time Doing work for which they are economically most useful (At the right cost)

Why do HRP?
Objectives
Provide a strategic basis for making HR decisions To maintain the required quantity & quality of HR To avoid over/under staffing To anticipate change rather than being surprised by events Provide means of identifying the competencies needed in the workforce in the present & future To forecast attrition rates To ensure optimum manpower utilization

Firm Mission and Goals

Strategy-Linked HRP
HR Goals & Strategy

Firm Business Strategy Staffing Goals & Strategy

Staffing Policies and Programs Core activities: Recruitment, selection, and employment decisions Support activities: Legal compliance, planning, and job analysis

Staffing System and Retention Management

Managing for Results

Organizational & Human Resource Planning

The HRP Model

Firm Mission & Goals Identify future human resource requirements Compare with Current HR inventory Determine the numbers, levels & criticality of vacancies Analyze the cost & time involved in managing the demand Choose the resources & methods of recruitment Determine the redundant numbers Analyze the cost & time required for managing surplus Redeploy Retrench

HR Planning Process
Forecast Labor Requirements Compare Forecast Labor Availabilities

External Scan

Determine Gaps (Shortages and Surpluses

Internal Scan

Develop Staffing Goals And Action Plans

Management Challenges in HRP

Careful Planning Understanding Pros & Cons

Assessing True Costs

Developing a Management Strategy

Factors That Determine HR Plans

Influences on Planning
External
Economic Conditions Labor Market Issues Labor Unions Government legislation Technology Globalization Competitive Conditions

Internal
Current workforce HR Philosophy & Values Current HR policies & programs Organizational & job structure (job levels & categories) Current HR problems

Identifying future HR requirements

Project revenues first then estimate the size of the staff required to achieve it

Staffing plans also must reflect:

Projected turnover Quality and skills of your employees Strategic decisions Technological and other changes Financial resources

Identifying future HR requirements

Computerized forecast
Determination of future staff needs by projecting sales, volume of production, and personnel required to maintain this volume of output, using software packages

Forecasting Personnel Requirements / Demands

Statistical Techniques
Assumes past is predictive of future Trend analysis / Time series Analysis Ratio analysis Scatter plots Regression analysis Linear programming

Judgmental techniques
Managerial judgment Executive reviews Delphi Technique Scenario Analysis Succession planning Vacancy analysis

Forecasting the Supply of Candidates

Internal Scanning External Scanning

Personnel replacement charts Position replacement card Skills/ Qualifications inventories Computerized Information system / HRIS

Forecasting the Supply of Outside Candidates Monitoring general economic conditions Professional publications Industry Surveys Futurist think tanks Conference reports

Internal Scanning
Sources of Internal Data
Surveys Interviews Key indicators such as turnover rates, promotion rates, absenteeism, accidents rates, performance reviews, employee complaints and grievances, training history, Human Resource Information Systems are useful here

Consider factors like transfers, promotions/ demotions, leaves, retirements, resignation, death etc.

Internal Scanning
Personnel replacement charts
Company records showing present performance and promotability of inside candidates for the most important positions

Position replacement card

A card prepared for each position in a company to show possible replacement candidates and their qualifications

Management Replacement Chart

Skills/Qualifications inventories
Manual or computerized records listing employees education, career and development interests, languages, special skills, and so on, to be used in selecting inside candidates for promotion Personnel inventory & development records help track employee qualifications

Computerized Information Systems

Work experience codes Product knowledge Industry experience Formal education Training courses Foreign language skills Relocation limitations Career interests Performance appraisals Skills

Estimating Internal Labor Supply for a Given Unit

Gap Analysis
Reconcile requirements and availability data in light of internal and external scanning Types and levels of shortages and surpluses determined across jobs

Gap Analysis
1 2 3 4 5 Current Position Expected promotions or transfers out of position Expected retirements Other turnover (dismissal, voluntary departures) Estimated FTE required as of projected date GAP Job A Job B 12 3 2 1 4 2 14 ? 0 0 1 ?

Admittance Trends Year No of patients/month No of nurses Patients per nurse

2002 2003 2004 2005*E 2006*E

1700 1800 1900 2000 2100

590 600 610

2.9 3 3.1 3.2(f) 3.3(f)

Turnover Rates

2002 Retirement Quit Discharged Total 20 20 5 45

2003 20 25 5 50

2004 20 30 5 55

Staffing Action Planning

Set staffing goals
(qualitative and quantitative)

Generate alternative staffing activities

Examples: hiring (permanent, temporary, contracted employees), overtime, redeployment, early retirements, etc.

Assess their feasibility (time, cost, success probability) Choose appropriate activities and implement decisions

Manpower Strategies
Recruitment Plan Redeployment Plan Redundancy Plan Training Plan Productivity Plan Retention Plan

Goal Setting and Strategy

Reducing Surpluses Retrenchment Lay offs Outplacement Attrition Loaning Work sharing VRS Hiring Freezes Training Leave of absence without pay Avoiding shortages New hires Temp workers Part-time Outsourcing Overtime Training

Outplacement
Outplacement services provided to displaced employees to give them support and assistance: Personal career counseling Resume preparation and typing services Interviewing workshops Referral assistance Severance payments Continuance of medical benefits Job retraining