Human Resources Planning 2002 Pearson Education Canada Inc., Toronto, Ontario 5-1 2002 Pearson Education Canada Inc., Toronto, Ontario 5-2 The Nature of Human Resources Planning HR Planning
-review human resources requirements to ensure: -the necessary number of employees -the necessary employee skills to meet organizational goals 2002 Pearson Education Canada Inc., Toronto, Ontario 5-3 The Nature of Human Resources Planning Forecast demand Analyze supply Plan and implement programs to balance supply and demand 2002 Pearson Education Canada Inc., Toronto, Ontario 5-4 The Nature of Human Resources Planning -achieve goals and objectives -plan staffing and development activities -achieve economies in hiring -make major labour market demands Importance of HR Planning (1 of 2) 2002 Pearson Education Canada Inc., Toronto, Ontario 5-5 The Nature of Human Resources Planning -anticipate and avoid staff shortages/surpluses -control/reduce labour costs -utilize employee capabilities effectively -establish employment equity goals/timetables Importance of HR Planning (2 of 2) 2002 Pearson Education Canada Inc., Toronto, Ontario 5-6 The Nature of Human Resources Planning -vacant positions create costly inefficiencies -overtime hours at premium cost -simultaneous layoffs and hiring -mass layoffs requiring: -severance pay -extended notice periods Results of Inadequate HR Planning (1 of 3) 2002 Pearson Education Canada Inc., Toronto, Ontario 5-7 The Nature of Human Resources Planning -ineffective training, development, career planning -inability to promote from within -turnover of high performers -problems with employment equity goals -inability to meet operational and strategic plans Results of Inadequate HR Planning (2 of 3) 2002 Pearson Education Canada Inc., Toronto, Ontario 5-8 The Nature of Human Resources Planning HR Planning Strategic Planning -reciprocal and interdependent relationship -environmental scanning critical for both 2002 Pearson Education Canada Inc., Toronto, Ontario 5-9 The Nature of Human Resources Planning -economic conditions -market and competitive trends -government and legislative issues -social concerns -technological changes -demographic trends External Environmental Factors Monitored 2002 Pearson Education Canada Inc., Toronto, Ontario 5-10 Elements of Effective HR Planning 3. Forecast Future Internal/External Candidates (Supply) 2. Forecast Future HR Needs (Demand) 1. Analyze HR Implications of Strategic Plans 4. Implement Plans to Balance Supply and Demand 5. Monitor and Evaluate Results 2002 Pearson Education Canada Inc., Toronto, Ontario 5-11 Forecasting Future HR Needs (Demand) Forecasting based on:
-demand for product/service -projected turnover -quality and nature of employees -decisions regarding product quality -plans for technological change -plans to reduce headcount -financial resources 2002 Pearson Education Canada Inc., Toronto, Ontario 5-12 Forecasting Future HR Needs (Demand) Trend analysis: review past employment levels Ratio analysis: ratio of business activity/employees
Productivity ratios calculate the average number of units produced per employee. Staffing ratios can be used to estimate indirect labor. For example, if the company usually uses one clerical person for every 25 production employees, that ratio can be used to estimate the need for clerical employees. 2002 Pearson Education Canada Inc., Toronto, Ontario 5-14 Forecasting Future HR Needs (Demand)
For example, a statistical relationship between gross sales and number of employees in a retail chain may be useful in forecasting the number of employees that will be needed if the retailers sales increase 15% or decrease 10%. Scatter plot: graph of business activity/employees Regression analysis: past statistical relationship between business activity and employees 2002 Pearson Education Canada Inc., Toronto, Ontario 5-15 Forecasting Future HR Needs (Demand) 1. Nominal Group Technique -experts meet face-to-face -group discussion facilitates exchange of ideas -possible subjectivity, group pressure( disad)
2. Delphi Technique -experts work independently -wide range of views -difficult to integrate diverse opinions ( disad) Qualitative Approaches 2002 Pearson Education Canada Inc., Toronto, Ontario 5-16 Forecasting Future HR Supply manual or computerized records used to identify internal candidates for transfer or promotion summary of each employees: education experience interests skills Skills Inventories 2002 Pearson Education Canada Inc., Toronto, Ontario 5-17 Forecasting Future HR Supply summary of each management employees: background qualifications interests skills managerial responsibilities duties in current/previous positions management training Management Inventories 2002 Pearson Education Canada Inc., Toronto, Ontario 5-18 Forecasting Future HR Supply visual representations of likely internal replacement employees for each position data on each candidate includes: age present performance rating promotability status Replacement Charts 2002 Pearson Education Canada Inc., Toronto, Ontario 5-19 Forecasting Future HR Supply lists of likely internal replacement employees for each position data on each candidate includes: relative strengths and weaknesses current position performance promotability age experience Replacement Summaries 2002 Pearson Education Canada Inc., Toronto, Ontario 5-20 Forecasting Future HR Supply Formal education Industry experience Work experience Product/service knowledge Training courses Language skills Relocation limitations Career interests Performance ratings
Computerized Skills Inventory 2002 Pearson Education Canada Inc., Toronto, Ontario 5-21 Forecasting Future HR Supply analyze demand for managers/professionals audit existing executives, project future supply individual career planning/career counseling accelerated promotions performance-related training and development planned strategic recruitment Succession Planning 2002 Pearson Education Canada Inc., Toronto, Ontario 5-22 Forecasting Future HR Supply general economic conditions national labour market conditions local labour market conditions occupational market conditions Forecasting Supply of External Candidates 2002 Pearson Education Canada Inc., Toronto, Ontario 5-23 Balancing Supply and Demand Dealing with a Labour Surplus hiring freeze attrition buy-out and early retirement programs reducing hours (job sharing, reduced workweek, part-time work, work sharing) internal transfers layoffs (reverse seniority or juniority) termination with outplacement assistance 2002 Pearson Education Canada Inc., Toronto, Ontario 5-24 Balancing Supply and Demand Dealing with a Labour Shortage overtime hiring temporary employees subcontracting work external recruitment transfers promotions 2002 Pearson Education Canada Inc., Toronto, Ontario 5-25 HRP Evaluation Actual internal mobility flow vs. career plans Internal mobility flow vs. turnover Employment equity achievements vs. goals Ratio of internal placement to external hiring Actual staffing levels vs. staffing requirements Specific Criteria Assessed 2002 Pearson Education Canada Inc., Toronto, Ontario 5-26 26