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Introduction to HR Planning

Human Resource Planning & IS

Human Resources Planning

Human Resources Planning (HRP)
Process of anticipating and making provision for the movement (flow) of people into, within, and out of an organization. HRPs purpose is the the effective deployment of human resources through:
Anticipating organizational labor supply and demand. Providing expanded employment opportunities for women, minorities, and the disabled. Guiding the development and training the workforce.
Human Resource Planning & IS

Strategic Importance of Human Resource Planning

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Alterations in organizational strategy create the

necessity for change in organizational structure. Structural change affects both quantitative and qualitative characteristics of the human resource needs in an organization. The fluidity of human resources in organizations requires effective human resource planning that takes a careful and considered approach to workforce changes.

Human Resource Planning & IS

Definitions of HR Planning (1)

strategy for the acquisition, utilisation, improvement and preservation of an organisations human resources
(Department of Employment 1974) (cited by Bratton and Gold, 2003, p194)

the process for identifying an organisations current and future human resource requirements, developing and implementing plans to meet these requirements and monitoring their overall effectiveness (Beardwell and Claydon, 2007, p159)
Human Resource Planning & IS

Definitions of HR Planning (2)

the process of interpreting the environment, predicting its effects on the organisation, evaluating these effects, planning and controlling the appropriate measures in order that the right human resources are available when required (Boella, 2000)
Human Resource Planning & IS

Developmental Overview (1)

Bramham (1994) argues
Manpower Planning as QUANTITATIVE concerned with forecasting demand and supply of labour Human Resource Planning as far wider encompassing a whole range of activities:
Motivation of employees, employee attitudes, organisational culture

Human Resource Planning & IS

Developmental Overview (2)

According to Taylor (2002) MP and HRP are concerned with looking ahead, using systematic techniques, i.e. auditing skills to be able to meet org. requirements of the future. Having the right people, with the right skills, in the right places at the right time.
Human Resource Planning & IS

HR Planning Issues
Staffing Questions:
How do we manage staffing in times of recession or expansion? What impact does technology change, mergers or relocation have on staffing issues? Do we always have the right people in the right jobs at the right time? How do we get our human resources: buy them or make them or both?
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Human Resource Planning & IS

 HRP is the responsibility of all managers Its focus is labour demand and labour supply Effective HRP is critical to an organisations success because it matches organisational HR objectives with its people requirements Surplus employees require a review of HR policies regarding permanent employment, outsourcing and retrenchments. Excess low skilled employees face difficulties when introducing technological and other changes. A lack of a diverse employee mix create barriers to meeting EEO objectives.
Human Resource Planning & IS

IMPORTANCE OF HUMAN RESOURCE PLANNING

WHY HR PLANNING
Ensures optimum use of manpower and capitalize on the strength of HR. The organization can have a reservoir of talent at any point of time. Forecast future requirements by keeping track of the employee turnover and provide control measures about availability of HR labor time. Help determine recruitment/induction levels. To anticipate redundancies/ surpluses/obsolescence. To determine training levels and works as a foundation for management development programmes. Know the cost of manpower if there is a new project is being taken up. Assist in productivity bargaining. Management decisions to outsource an activity or not?
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Human Resource Planning & IS

Why is HRP important?

Helps link individual & organisational goals Organisational expansion & diversification Improves business planning - Input to strategic planning Technological/Social Changes Lead time in Training & Development HR's critical resources - Succession & Career Planning Computerised Human Resource Information Systems Helps evaluate effects of HR policies Reduce personnel costs
Human Resource Planning & IS

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EFFECTIVE HR PLANNING
Effective HR Planning ensures that:
the available talent is correctly allocated

labour costs are controlled

employee numbers are appropriate productivity is improved talented employees are retained

Human Resource Planning & IS

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Major Objectives of HRP

Preventing understaffing and overstaffing Ensure the organization has the right employees with the right skills at the right place at the right time Ensure the organization is responsive to changes in its environment Provide direction and coherence to all HR activities and systems

Human Resource Planning & IS

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MAJOR REASONS FOR EMPHASIS ON HRP:

Employment-Unemployment Situation Technological Changes Organizational Changes Demographic Changes Skill Shortages Governmental Influences Legislative Controls Impact of Pressure Groups Lead Time

Human Resource Planning & IS

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 Assist and counsel operating managers to plan and set objectives. Collect and summarize manpower data keeping longrun objectives and broad organizational interests in mind. Monitor and measure performance against the plan and keep top management informed about it. Provide proper research base for effective manpower and organizational planning.
Human Resource Planning & IS

Responsibilities of Human Resource Department in respect of manpower planning includes:

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Factors affecting HRP

Changing nature of a business e.g. from being product to market orientated Changes in the market e.g. consumers buying more or less of a companys product

Technology the introduction of automation

Competition e.g. a need to cut costs to compete might mean a reduction in staff Demographics reduction in school leavers could lead to labour shortage in some areas

Government e.g. the need to be aware of equal Human Resource Planning & IS opportunities legislation 16

 HRP must be seen as equally vital as business planning top-management support active involvement of line managers and co-ordination between line mgrs and HR function an excellent and up-to-date HRIS periodic review and revision of the forecasting techniques and the forecasts Caution is needed when collecting data - too much data to analyse can cause problems Without long range planning concentration becomes focussed on short-term needs resulting in crisis management reactions
Human Resource Planning & IS

REQUISITES FOR SUCCESSFUL HRP

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HR PLANNING BENEFITS
HR planning is a systematic process that ensures: a more effective and efficient use of human resources More satisfied and better developed employees More effective equal employment opportunity and affirmative action [AA] planning Reduced financial and legal costs Better view of the HR dimensions of business decisions

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 Lower HR costs through better HR management. More timely recruitment for anticipate HR needs More inclusion of protected groups through planned increases in workforce diversity. Better development of managerial talent

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Problems of HRP
People are unpredictable External influences e.g. recession Poor industrial relations if carried out badly Needs to be checked and monitored

Human Resource Planning & IS

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