HUMAN RESOURCE
PLANNING PROCESS




      CHAPTER 2
       Slide editing by : mursyida mahshar
HRP (Definition)
• Process of analyzing and identifying the need for and
  availability of HR so that the org. can meet its
  objectives or
• Process that helps to provide adequate HR to achieve
  future organisational objective.
• It will include ; forecasting future needs for employees of
  various type, compare these needs with the present
  workforce and determine the no. or types of employees
  to be recruited into or phased out.
• Small Business and HR Planning Issues
   –   Attracting and retaining qualified outsiders
   –   Management succession between generations of owners
   –   Evolution of HR activities as business grows
   –   Family relationships and HR policies
Issues in forecasting HR requirements:
•   Increasingly of service oriented
•   Increasingly economy based on technology
•   Teams becoming more widely used
•   Needs for fewer managers with increasing technology

Issues in HR availability:
    •   Management inventories
    •   Succession planning
    •   Skill inventory
    •   External labor supply
Purpose of HR Planning
Benefits of HR Planning

• Better view of the HR dimensions of business
  decisions
• 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
Linking HRP & Strategy for
         Competitive advantage
Strategy of     Culture of       Competitive /           Current organization
organization    organization     Fin. Advantage          structure



     Need for HR Qty &                Available Financial
     Skill Levels                     Resources



               HR Plans and Policies for:
               Performance mgmt             Recruiting
               Selection                    Staffing mgmt
               HR Development               Compensation
HR Strategies
• Cost Leadership               • Differentiation
   – Competition on the basis      – Competition on the basis of
     of low price and high           either offering distinctively
     quality of product or           different products or services or
     service                         establishing an exclusive image
   – Relies on “building”            for quality products and
     employees to fit                services
     specialized needs             – Relies on hiring needed skills.
   – Requires a longer HR          – Needs a shorter planning time
     planning horizon                frame in order to be responsive
     approach                        to dynamic environments.
HR Strategies
Organizationa Strategic Focus     HR Strategy                 HR Activities
l Strategies
Cost           Efficiency         Long HR planning            Promote from within
Leadership     Stability          horizon                     Extensive training
               Cost control       Build skills in existing    Hire & train for
                                  employee                    specific capabilities
                                  Job & employee
                                  specialization efficiency

Differentiation Growth           Shorter HRP horizon          External staffing
                Innovation       Hire the HR capabilities     Less training
                Decentralization needed                       Hire & train for
                                 Broader, more flexible       broad competency
                                 jobs & employee
HR Responsibilities

• Top HR executive and subordinates gather
  information from other managers to use in the
  development of HR projections for top
  management to use in strategic planning and
  setting organizational goals
HR Unit                       Managers
 - Participates in strategic    -Identify supply and
 planning process.              demand needs for each
 - Identifies HR strategies.    department.
 - Designs HRP data             -Review / discuss HRP
 systems.                       info. With HR specialists.
 -Compiles and analyzes         -Integrate HR plan with
 data on staffing needs.        departmental plans.
                                -Monitor HR plan to
                                identify changes needed.

SP – The process of determining what org.’s mission and plan
to achieve organisational goals.
HR Planning Process
HRP Process



          ENVIRONMENTAL SCANNING
           & SITUATIONAL ANALYSIS




          FORECASTING THE DEMAND
             AND SUPPLY OF HR




           DEVELOPMENT OF PLANS
                FOR ACTION
Scanning the External Environment
• Environmental Scanning
   – The process of studying the environment of the organization
      to pinpoint opportunities and threats.
• Situational Analysis
   – HRM compares needed and available skills for training,
      promotion, transfer, productivity improvement and
      succession planning.
• Environmental Changes Impacting HR
   – Governmental Influences
   – Economic conditions
   – Geographic and competitive concerns
   – Workforce composition
Assessing the Internal Workforce

• Jobs and Skills Audit
   – What jobs exist now?
   – How many individuals are performing each job?
   – What are the reporting relationships of jobs?
   – How essential is each job?
   – What jobs will be needed to implement future
     organizational strategies?
   – What are the characteristics of anticipated jobs?
Assessing the Internal Workforce (cont’d)
• Organizational Capabilities Inventory
   – HRIS databases—sources of information about
     employees’ knowledge, skills, and abilities (KSAs)
   – Components of an organizational capabilities inventory
      • Individual employee demographics
      • Individual employee career progression
      • Individual job performance data
Forecasting HR Supply and Demand
• Forecasting
  – The use of information from the past and present to
    identify expected future conditions.
• Forecasting Methods
  – Judgmental
      • Estimates—asking managers’ opinions, top-down or
        bottom-up
      • Rules of thumb—using general guidelines
      • Delphi technique—asking a group of experts
      • Nominal groups—reaching a group consensus in open
        discussion
Forecasting HR Supply and Demand
                  (cont’d)
• Forecasting Methods (cont’d)
   – Mathematical
      • Statistical regression analysis (statistic compares the past r/ships
          among various factors)
        • Simulation models (representation of real situations in abstract
          form)
        • Productivity ratios—units produced per employee
        • Staffing ratios—estimates of indirect labor needs
• Forecasting Periods
   – Short-term—less than one year
   – Intermediate—up to five years
   – Long-range—more than five years
HR Forecasting
Forecasting the Demand for HR

•  To develop a forecast of the needs for HR by
   number and type for the forecasted period
• Estimate no. and type of employees for future
a) External Supply
b) Internal Supply

           Demand = Supply
Forecasting supply for HR

• Forecast the availability of HR internal and
  external supplies.
• Use “skill inventory” :
   – to assess the current supply of employees (past and
     present skills), used for future, and maintained
     through interview and questionnaires.
Estimating Internal Labor Supply for a
Given Unit
Managing HR Surplus / Shortage
 Action when Surplus of employees
  i) Layoff - Suspension or termination of employment (with or without
  notice) by the employer due to management problems. (merit & seniority)
  ii) Early retirement – encourage employees to leave org. early.
  iii) Restrict Attrition & freeze hiring – not replace the jobs been left out (quit
  @ retire), and those remain in the co. will be given more tasks.
  iv) Reduced Hours of work
 Suggestion to deal with downsizing
     Investigate alternatives to downsizing
     Involve those people necessary for success in the planning for downsizing
     Develop comprehensive communicate plans
     Nurture the survivors
     Outplacement pays off
Action When Shortage of Employees
• Promote Overtime - ask the workers to work
  after the standard working hours
• Hiring New employees
• Hire contingent worker – subcontract, contract,
  part time

• Outplacement services
   – A group of services provided to the displaced
     employee – to give them support and assistance.
   – E.g. personal career counseling, resume preparation,
     interviewing workshops and referral assistance.
HRIS?
Find information about HRIS

More Related Content

PPT
PPT
Hr planning
PPT
Human resource-planning-concept-and-need-factors-affecting-hrp-hrp-process-l-...
PPT
Human resource planning ppt.
PPT
Hr planning
PPT
PPT
Human Resources Planning (BBA-III, Sambalpur University)
Hr planning
Human resource-planning-concept-and-need-factors-affecting-hrp-hrp-process-l-...
Human resource planning ppt.
Hr planning
Human Resources Planning (BBA-III, Sambalpur University)

What's hot (20)

DOCX
HUMAN RESOURCE PLANNING - MG UNIVERSITY 3RD SEMESTER - FULL NOTES
PPTX
Hr planning
DOC
PPT
Human resource planning
PPT
Human resource planning
PPTX
HR Session 2 Human Resources Planning
PPTX
Human Resource Planning (HRP)
PPTX
Human resource planning and development
PPT
Humanresource planning
PPT
human resource planning
PPT
Human Resource Planning Ppt.
PDF
Human Resource Planning
PPTX
Human resources planning
PPTX
Human Resource Planning
PPT
Human resource planning ppt.
PPTX
Human Resource Planning
PPT
Human resource planning.l 4
PPT
HR planning in BIM
PPT
Hrp
HUMAN RESOURCE PLANNING - MG UNIVERSITY 3RD SEMESTER - FULL NOTES
Hr planning
Human resource planning
Human resource planning
HR Session 2 Human Resources Planning
Human Resource Planning (HRP)
Human resource planning and development
Humanresource planning
human resource planning
Human Resource Planning Ppt.
Human Resource Planning
Human resources planning
Human Resource Planning
Human resource planning ppt.
Human Resource Planning
Human resource planning.l 4
HR planning in BIM
Hrp
Ad

Viewers also liked (17)

PPTX
Mba ii hrm u-2.1 hrp
PPTX
Succession planning in HRP
PPT
Hr planning
PPT
Understanding HR objectives and strategies
PDF
MS Case study development for entrepreneur mark zuckerberg
PPTX
PDF
Human Resource Planning
PPTX
HUMAN RESOURCE PLANNING(SHRM)
PPT
Objectives of hr planning
PPTX
HR Needs Analysis and Cost Estimation
PPTX
Strategic human resource planning ppt
PPT
Introduction to HR Objectives & Strategies
PDF
HR Goals and Objectives 2014
PPT
Human Resource Planning
PPTX
Succession planning
PPT
Human Resource Planning – Concept And Need. Factors Affecting Hrp, Hrp Proces...
PPT
Human Resource planning
Mba ii hrm u-2.1 hrp
Succession planning in HRP
Hr planning
Understanding HR objectives and strategies
MS Case study development for entrepreneur mark zuckerberg
Human Resource Planning
HUMAN RESOURCE PLANNING(SHRM)
Objectives of hr planning
HR Needs Analysis and Cost Estimation
Strategic human resource planning ppt
Introduction to HR Objectives & Strategies
HR Goals and Objectives 2014
Human Resource Planning
Succession planning
Human Resource Planning – Concept And Need. Factors Affecting Hrp, Hrp Proces...
Human Resource planning
Ad

Similar to Ch 02 hr planning (20)

PPTX
Unit 2 HRP.pptx
PPT
PPTX
Unit 2- Human Resource Planning in Human Resources
PDF
moduleii-hrmiiibba-170113082336 (1).pdf
PPTX
HR PLANNING
PPTX
moduleii-hrmiiibba-
PPTX
3.Human Resource Planning presentation ppt
PPT
PPT
Hrm10e Chap02
PPT
Hrm10e chap02
PPT
Hrm10e chap02
PPTX
Hrp converted
PPT
Human Resource Management
PPT
Hr planning lecture
PPTX
Strategic hr management and planning
PPTX
Hr planning
PPT
Presentation on _HR Planning_ with you.ppt
PPT
HRP.ppt
Unit 2 HRP.pptx
Unit 2- Human Resource Planning in Human Resources
moduleii-hrmiiibba-170113082336 (1).pdf
HR PLANNING
moduleii-hrmiiibba-
3.Human Resource Planning presentation ppt
Hrm10e Chap02
Hrm10e chap02
Hrm10e chap02
Hrp converted
Human Resource Management
Hr planning lecture
Strategic hr management and planning
Hr planning
Presentation on _HR Planning_ with you.ppt
HRP.ppt

More from Bituin Faecho (20)

DOCX
DOCX
Custard puding jagung
PPT
Chapter 14
PPT
Chapter 13
PPT
Chapter 12
PPT
Chapter 11
PPT
Chapter 10
PPT
Chapter 9
PPT
Chapter 8
PPT
Chapter 7
PPT
Chapter 6
PPT
Chapter 5
PPT
Chapter 4
PPT
Chapter 3
PPT
Chapter 2
PPT
Chapter 1
PPT
Chapter 15
PPT
Ch 10 industrial relation
PPT
Ch 09 employee safety & health
PPT
Ch 08 employee compensation
Custard puding jagung
Chapter 14
Chapter 13
Chapter 12
Chapter 11
Chapter 10
Chapter 9
Chapter 8
Chapter 7
Chapter 6
Chapter 5
Chapter 4
Chapter 3
Chapter 2
Chapter 1
Chapter 15
Ch 10 industrial relation
Ch 09 employee safety & health
Ch 08 employee compensation

Ch 02 hr planning

  • 1. HUMAN RESOURCE PLANNING PROCESS CHAPTER 2 Slide editing by : mursyida mahshar
  • 2. HRP (Definition) • Process of analyzing and identifying the need for and availability of HR so that the org. can meet its objectives or • Process that helps to provide adequate HR to achieve future organisational objective. • It will include ; forecasting future needs for employees of various type, compare these needs with the present workforce and determine the no. or types of employees to be recruited into or phased out.
  • 3. • Small Business and HR Planning Issues – Attracting and retaining qualified outsiders – Management succession between generations of owners – Evolution of HR activities as business grows – Family relationships and HR policies
  • 4. Issues in forecasting HR requirements: • Increasingly of service oriented • Increasingly economy based on technology • Teams becoming more widely used • Needs for fewer managers with increasing technology Issues in HR availability: • Management inventories • Succession planning • Skill inventory • External labor supply
  • 5. Purpose of HR Planning
  • 6. Benefits of HR Planning • Better view of the HR dimensions of business decisions • 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
  • 7. Linking HRP & Strategy for Competitive advantage Strategy of Culture of Competitive / Current organization organization organization Fin. Advantage structure Need for HR Qty & Available Financial Skill Levels Resources HR Plans and Policies for: Performance mgmt Recruiting Selection Staffing mgmt HR Development Compensation
  • 8. HR Strategies • Cost Leadership • Differentiation – Competition on the basis – Competition on the basis of of low price and high either offering distinctively quality of product or different products or services or service establishing an exclusive image – Relies on “building” for quality products and employees to fit services specialized needs – Relies on hiring needed skills. – Requires a longer HR – Needs a shorter planning time planning horizon frame in order to be responsive approach to dynamic environments.
  • 9. HR Strategies Organizationa Strategic Focus HR Strategy HR Activities l Strategies Cost Efficiency Long HR planning Promote from within Leadership Stability horizon Extensive training Cost control Build skills in existing Hire & train for employee specific capabilities Job & employee specialization efficiency Differentiation Growth Shorter HRP horizon External staffing Innovation Hire the HR capabilities Less training Decentralization needed Hire & train for Broader, more flexible broad competency jobs & employee
  • 10. HR Responsibilities • Top HR executive and subordinates gather information from other managers to use in the development of HR projections for top management to use in strategic planning and setting organizational goals
  • 11. HR Unit Managers - Participates in strategic -Identify supply and planning process. demand needs for each - Identifies HR strategies. department. - Designs HRP data -Review / discuss HRP systems. info. With HR specialists. -Compiles and analyzes -Integrate HR plan with data on staffing needs. departmental plans. -Monitor HR plan to identify changes needed. SP – The process of determining what org.’s mission and plan to achieve organisational goals.
  • 13. HRP Process ENVIRONMENTAL SCANNING & SITUATIONAL ANALYSIS FORECASTING THE DEMAND AND SUPPLY OF HR DEVELOPMENT OF PLANS FOR ACTION
  • 14. Scanning the External Environment • Environmental Scanning – The process of studying the environment of the organization to pinpoint opportunities and threats. • Situational Analysis – HRM compares needed and available skills for training, promotion, transfer, productivity improvement and succession planning. • Environmental Changes Impacting HR – Governmental Influences – Economic conditions – Geographic and competitive concerns – Workforce composition
  • 15. Assessing the Internal Workforce • Jobs and Skills Audit – What jobs exist now? – How many individuals are performing each job? – What are the reporting relationships of jobs? – How essential is each job? – What jobs will be needed to implement future organizational strategies? – What are the characteristics of anticipated jobs?
  • 16. Assessing the Internal Workforce (cont’d) • Organizational Capabilities Inventory – HRIS databases—sources of information about employees’ knowledge, skills, and abilities (KSAs) – Components of an organizational capabilities inventory • Individual employee demographics • Individual employee career progression • Individual job performance data
  • 17. Forecasting HR Supply and Demand • Forecasting – The use of information from the past and present to identify expected future conditions. • Forecasting Methods – Judgmental • Estimates—asking managers’ opinions, top-down or bottom-up • Rules of thumb—using general guidelines • Delphi technique—asking a group of experts • Nominal groups—reaching a group consensus in open discussion
  • 18. Forecasting HR Supply and Demand (cont’d) • Forecasting Methods (cont’d) – Mathematical • Statistical regression analysis (statistic compares the past r/ships among various factors) • Simulation models (representation of real situations in abstract form) • Productivity ratios—units produced per employee • Staffing ratios—estimates of indirect labor needs • Forecasting Periods – Short-term—less than one year – Intermediate—up to five years – Long-range—more than five years
  • 20. Forecasting the Demand for HR • To develop a forecast of the needs for HR by number and type for the forecasted period • Estimate no. and type of employees for future a) External Supply b) Internal Supply Demand = Supply
  • 21. Forecasting supply for HR • Forecast the availability of HR internal and external supplies. • Use “skill inventory” : – to assess the current supply of employees (past and present skills), used for future, and maintained through interview and questionnaires.
  • 22. Estimating Internal Labor Supply for a Given Unit
  • 23. Managing HR Surplus / Shortage  Action when Surplus of employees i) Layoff - Suspension or termination of employment (with or without notice) by the employer due to management problems. (merit & seniority) ii) Early retirement – encourage employees to leave org. early. iii) Restrict Attrition & freeze hiring – not replace the jobs been left out (quit @ retire), and those remain in the co. will be given more tasks. iv) Reduced Hours of work  Suggestion to deal with downsizing  Investigate alternatives to downsizing  Involve those people necessary for success in the planning for downsizing  Develop comprehensive communicate plans  Nurture the survivors  Outplacement pays off
  • 24. Action When Shortage of Employees • Promote Overtime - ask the workers to work after the standard working hours • Hiring New employees • Hire contingent worker – subcontract, contract, part time • Outplacement services – A group of services provided to the displaced employee – to give them support and assistance. – E.g. personal career counseling, resume preparation, interviewing workshops and referral assistance.