HR Planning

HRM NIFT - Rajyalakshmi

Contents
Definition & objectives The process of Human Resource Planning Assessing current human resource & making inventory Forecasting Matching the inventory with future requirements Managing the forecasted demand/surplus Dealing with surplus manpower Current trends.
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Quote
At the end of every day, the assets of most companies walk out the door. The challenge facing those companies is to provide an environment that will encourage their assets to want to return the next morning.

HRM NIFT - Rajyalakshmi

Definition
Right number of people with right skills at right place at right time to implement organizational strategies in order to achieve organizational objectives In light of the organizations objectives, corporate and business level strategies, HRP is the process of analyzing an organizations human resource needs and developing plans, policies, and systems to satisfy those needs
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Objectives
Enable organizations to anticipate their future HRM needs Identify practices that will help them meet those needs. Prevent overstaffing & understaffing Ensure organization is responsive to changes in its environment. Provide direction & coherence to all HR activities & systems
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Benefits of HR Planning
Better view of the HR dimensions of business decisions Lower HR costs through better HR management.

More timely recruitment by anticipating HR needs

More inclusion of protected groups through planned increases in workforce diversity. Better development of managerial talent
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Process of HR Planning

Long range Objective & plans Overall requirements for HR Inventory present HR

Short term Goals ,Plans , Programs & Budget Work force requirement by occupational categories, skills, demographic basis Inventory by occupational categories, skills, demographic basis Needed replacements or additions Plans for developing, upgrading , transferring in recruiting & selecting
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New HR requirement

Action for Recruiting & Selecting Procedures evaluating effectiveness of HRP

Assessing current Human Resources

It begins by developing a profile of the current Status of human resources. It is an internal analysis that includes an inventory of the workers & skills already available within the organization & a comprehensive Job analysis.

HRM NIFT - Rajyalakshmi

Human Resource Inventory

The inputs to this report are derived from forms completed by employees , checked by supervisors & the personal department. These reports include details names, education, etc. for every employee in the organization. HRIS (Human Resource Information System): Computerized employee information system Uses transaction processing employee self-service decision support Succession Planning/Replacement Charts: Some organizations also generate a separate executive inventory report i.e. succession planning. These are organization charts indicating positions that may become vacant in the near future
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Forecasting
DEMAND FORECASTING

Choose HR programs Internal programs Promotion Transfer Career planning Training

SUPPLY FORECASTING

Determine organizational objectives Demand forecast for each objective Aggregate demand forecast

External programs

Recruiting
External selection Executive exchange

Turnover control

Does aggregate supply meet aggregate demand?

Yes

Internal supply forecast

External supply forecast

No

Aggregate supply forecast

Go to feasibility analysis steps

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Forecasting
The use of information from the past and present to identify expected future conditions. Estimating not only how many but also what kinds of employees will be needed Yields advance estimates or calculations of the organizations staffing requirements Apart from quantitative tools, a great deal of human judgement is involved Incredibly difficult tasks, especially in rapidly changing environment
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Forecasting Methods

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Forecasting HR Supply and Demand

Forecasting the Demand for Human Resources Organization-wide estimate for total demand Unit breakdown for specific skill needs by number and type of employee Develop decision rules (fill rates) for positions to be filled internally and externally. Develop additional decision rules for positions impacted by the chain effects of internal promotions and transfers.
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Forecasting the Supply for HR

External Supply Internal Supply

Forecasting External HR Supply Net migration for an area Individuals entering and leaving the workforce Individuals graduating from schools and colleges Changing workforce composition and patterns Economic forecasts Technological developments and shifts Actions of competing employers Government regulations and pressures Other factors affecting the workforce
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Forecasting Internal HR Supply

Effects of promotions, lateral moves, and terminations Succession analysis Replacement charts Transition matrix (Markov matrix) Exit Manager Supervisor Line Worker

Manager .15 Supervisor .10 Line Worker .20

.85 .15 .00

.00 .70 .15

.00. .05 .65

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HRM NIFT - Rajyalakshmi

Estimating Internal Labor Supply for a Given Unit

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Matching the inventory with future requirements

Shortage

Surplus

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Shortage
Recruitment Training Succession planning

The process of identifying a long-term plan for the orderly replacement of key employees

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Surplus Manpower

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Workforce Reductions
Identifies employer requirements for layoff advance notice.
60-day notice to employees and the local community before a layoff or facility closing involving more than 50 people. Does not cover part-time or seasonal workers. Imposes fines for not following notification procedure. Has hardship clauses for unanticipated closures or lack of business continuance capabilities.
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Workforce Realignment
Downsizing, Rightsizing, and Reduction in Force (RIF) all mean reducing the number of employees in an organization. Causes
Economicweak product demand, loss of market share to competitors

Structuraltechnological change, mergers and acquisitions

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Workforce Realignment
Positive consequences
Increase competitiveness Increased productivity

Negative consequences
Cannibalization of HR resources Loss of specialized skills and experience Loss of growth and innovation skills

Managing survivors
Provide explanations for actions and the future Involve survivors in transition/regrouping activities
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Downsizing approaches
Attrition and hiring freezes
Not replacing departing employees and not hiring new employees/

Early retirement buyouts

Offering incentives that encourage senior employees to leave the organization early.

Layoffs
Employees are placed on unpaid leave until called back to work when business conditions improve. Employees are selected for layoff on the basis of their seniority or performance or a combination of both.
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Downsizing approaches (contd)

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

Investigate alternatives to downsizing Involve those people necessary for success in the planning for downsizing

Develop comprehensive communications plans

Nurture the survivors

Outplacement pays off

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Role of HR Professionals
The Past The Future

Operational Monitor Short term Administrative Reactive Activity focus

Strategic Partner Long term Consultative Proactive Solution focus

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Emerging Roles for HR Professionals

Human Capital Developer

Employee Advocate

HR Leader

Strategic Partner

Functional Expert
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Thank you
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