STRATEGIC HUMAN RESOURCE PLANNING

Motiur Rahman

Planning?
What Is Planning A primary managerial activity that involves:
Defining the organizations goals Establishing an overall strategy for achieving those goals Developing plans for organizational work activities.

Types of planning
Informal: not written down, short-term focus; specific to an
organizational unit.

Formal: written, specific, and long-term focus, involves shared

goals for the organization.

Why Do Managers Plan?

Purposes of Planning
Provides direction Reduces uncertainty Minimizes waste and redundancy Sets the standards for controlling

Types of Plans
Strategic Plans
Apply to the entire organization. Establish the organizations overall goals.

Seek to position the organization in terms of its environment.

Cover extended periods of time.

Operational Plans
Specify the details of how the overall goals are to be achieved.

Cover short time period.

STRATEGIC HR PLANNING
Strategic Human Resource Planning is

required to translate corporate strategy

initiatives into a workable plan for

identifying persons needed to achieve the

corporate objectives

Strategic HR Planning
The process of identifying organizational objectives and the action needed to achieve those objectives
It involves analyzing such areas as finance, marketing, and human re-sources to determine the capacities of the organization. The process begins with identifying and recognizing the philosophy and mission of the organization.

Strategic HR Planning
This first step addresses the most fundamental questions about the organization
Why does the organization exist? What unique contribution does it make? What are the underlying values and motivations of owners and key managers

Strategic Planning Process

Define Philosophy and Mission

Implement, Monitor and Revise Plans

Scan External environment for Opportunity and Threat

Develop Plans (strategies and bjectives) Forecast Organizational Capabilities and opportunities in the Environment

Assess Internal Strengths and Weaknesses

Strategic HR Planning
Once the philosophy and mission of the organization are identified, the next requirement is to scan the environment. This scanning is especially important when rapid changes are occurring, such as in the last several years.

Strategic HR Planning
HR managers also need the results of environmental scanning. For example, some questions might be: What recruiting approaches are competitors currently using to attract scarce specialties? How are competitors using welfare-to-work programs? Will a new product under development require a production process using an expanded number of workers with different knowledge and skills?

Strategic HR Planning
Answers to these questions illustrate that HR managers must be able to predict what capabilities employees will have to implement the business strategy. Workforce patterns and conditions, social values and lifestyles, and technological developments are some external factors to consider.

Strategic HR Planning
After external forces are examined, an internal assessment is made of what the Organization can do before a decision is reached on what it should do. Internal Strengths and weaknesses must be identified in light of the philosophy and culture of the organization.
Factors such as current workforce skills, retirement patterns, and demographic profiles of current employees are items that relate to human re-source capabilities. Next comes forecasting organizational capabilities and future opportunities in the environment to match organizational objectives and strategies.

Strategic HR Planning
The development of strategies and objectives often is based on SWOT analyses, which examines the strength, and weaknesses of the organization internally and the opportunity and threat externally.
The purpose of SWOT analysis is to develop strategies that align organizational strengths with opportunities externally, to identify internal weaknesses to be addressed and to acknowledge threat that could affect organizational success Finally specific plan are developed to identify how strategies will be implemented

HR PLANNING
HRP systematically forecasts an organizations future demand for and supply of employees. HRP enables managers and HR Departments to develop staffing plans that supports the organization strategy by allowing it to fill job openings proactively

HR PLANNING OBJECTIVES
1. It should ensure adequate staff for the various department of the company. 2. It should see that the company recruits the right people with the right skills who work at the right place at the right time.
3. It ensure that the company is responsive to change in its environment

HR PLANNING OBJECTIVES
4. It should give direction and coherence to all other HR activities and systems 5. The perspective of line and staff managers should be linked.

TYPES OF PLANNING
HR Planning is undertaken at two levels. At the lower level jobs

- Key management level position

DEMAND FOR HUMAN RESOURCE

External challenges.
Organizations decisions. Workforce factors.

HR DEMAND
Cause of Demand.

External

Economic Social Political Legal Technology

HR DEMAND
Cause of Demand.

Organizational

Competitors Strategic Plan

Budgets
Sales and Production Forecast New Venture

Organization and Job Design

HR DEMAND
Cause of Demand.

Workforce

Retirement Resignation Termination

Death
Leaves of absence

HR DEMAND
Can be forecasted in two ways.

Bottom up planning: Top down planning

SUPPLY OF HUMAN RESOURCES

Once the demand is projected, the next steps is the supply of HR.
There are two sources of supply:

Internal And External

Internal supply consist of present employee who

can be promoted.

External supply consist of people who do not work

in the same organization.

FACTORS THAT DETERMINE THE FUTURE SUPPLY OF HR

Internal
Audit of Human Resource Succession Planning Within the Organization

Supply of Human Resource

Labor Marketing
External

Forecasting Techniques
HR forecast is an attempt to predict an organizations future demand for employees Techniques

Expert
-

Informal and instant decisions Formal expert survey Nominal group technique

Forecasting Techniques
Cont..

Techniques

Trend
-

Extrapolation Indexation

Statistical analyses

Forecasting Techniques
Cont
Techniques

Others
-

Budget and planning analyses

New-venture analyses
Computer model

Succession Planning
Succession planning:
Succession planning is the process used by
HR Planners to convert information about current employees, into decision, about future internal job placement.

Succession Planning
HR Audit.
Summarizes each employees skills, knowledge and abilities. These information are used by HR Planners to make judgment about possible promotions and transfers.

MAIN ELEMENTS OF HR PLANNING ARE

1. Defining and re defining organization objective. 2. Asses future requirements to meet objectives. 3. Asses current resources and availability of resources in the future. 4. Producing and implementing the plan.

STRATEGIC PLANNING
Define corporate philosophy.
Scan environmental condition. Evaluate corporate strengths and constraints. Develop objectives and goals. Develop strategies.

Link Between Corporate and Staff Planning

Strategic
Long range (5 years)

Operational
Middle Range Over 1,under 5yr

Budgeting
Annual (Next Year)

Assessment Of Current Resources

Age profile helps to inform decision about recruitment, development, succession planning and the potential consequences for organization.

No or
%

20

30 40 50 60 Average Age 40

B
No Or

%
20 30 40 50 60

B1 Modal
No. Or %

20

30

40

50

60

Avg. Age 55

SOUND HR PLANNING NEED TO BE BASED ON THE FOLLOWING

It has to be fully integrated with the Business goal.
Time span to be covered by the plan need to be defined. It should be based on most accurate information. It should be based on the assessment of future requirement.

It should be based on the assessment of current resource.

CASE STUDY Class Work

Suppose you manage a restaurant in a hill station, where people go for vacation during summer ( peak season is from June to August). During winter also it is profitable to keep the business open as people go to see snow fall, but you need only half the strength of worker like cooks, table server and cleaners.

Questions:

How will you workout the man power planning for this business? What action will you take in April for the beginning of the peak tourist season?

THANK YOU