Chapter 6 Human Resource Planning Mc GrawHillIrwin Copyright

Chapter 6 Human Resource Planning Mc. Graw-Hill/Irwin Copyright © 2009 by The Mc. Graw-Hill Companies, Inc. , All Rights Reserved.

HR Planning Process Overall Strategic Business Plan Human Resources Plan HR Planning Activities 3 -2

Overview: Human Resource Planning 1. 2. 3. 4. 5. Initial Decisions Forecasting HR Requirements Forecasting HR Availabilities Reconciliation and Gaps Action Planning 3 -3

The Basic Elements of Human Resource Planning 3 -4

The Basic Elements of Human Resource Planning 3 -5

HRP: Initial Decisions l Strategic planning Comprehensiveness l Linkages with larger organizational mission l l Planning time frame l Job categories and levels l What jobs will be covered by a plan? l Head count (current workforce) l Roles and responsibilities 3 -6

HRP: Forecasting HR Requirements l Quantitative l techniques Correlation and regression analysis Correlation – measures relationship between two or more variables l Regression analysis – measures the value of one variable in terms of the other variable l Disadvantage – based on the assumption that the future will resemble the past l l Simulation – computerized model that represents the key features/variables l Useful for “what if” questions 3 -7

HRP: Forecasting HR Requirements l Subjective l l techniques Qualitative information supplied by managers and supervisors Managerial Estimates - “bottom-up” approach Delphi Technique – panel of experts comes to a consensus Zero Base Forecasting – current staffing level is used as starting point for estimating future requirements l Filling vacant positions or creating new positions or jobs must be justified – vacancies are not automatically filled 3 -8

HRP: Forecasting HR Availabilities l Internal Sources Skills inventories l Management inventories l Ongoing training and development l Replacement planning l Succession planning l 3 -9

HRP: Forecasting HR Availabilities l External Sources Need to consider environmental factors that influence the potential availability of employees at a specific time l Ongoing process in order to meet availability needs l 3 -10

Examples of External Influences on Staffing 3 -11

Labor Markets: Demand for Labor l Employment patterns Demand for labor is a derived demand l Job growth projections l Employment growth projections l l KSAOs l sought KSAO requirements l Education levels Survey of skill deficiencies l Critically required skills l 3 -12

Labor Markets: Supply of Labor l Trends in supply of labor l Labor force trends relevant to staffing l l l Growth KSAOs Demographics Other trends ? ? ? KSAOs available l l l Educational attainment Literacy Related to technology 3 -13

Labor Markets: Other Issues l Labor shortages and surpluses “Tight” labor markets l “Loose” labor markets l 3 -14

Human Resource Planning l Reconciliation and Gaps l l l Coming to grips with projected gaps Likely reasons for gaps Assessing future implications l Action Planning l l Set objectives Generate alternative activities Assess alternative activities Choose alternative activities 3 -15

Staffing Planning Process l Staffing objectives – derived from gaps between requirements/availabilities Quantitative objectives (based on numbers) l Qualitative objectives (based on KSAOs) l l Generate alternative staffing activities to deal with employee shortages l employee surpluses l 3 -16

Staffing Alternatives to Deal With Employee Shortages 3 -17

Staffing Alternatives to Deal With Employee Surpluses 3 -18

Staffing Planning: Flexible Workforce l Advantages l Disadvantages l Two categories Temporary employees l Independent contractors l 3 -19

Staffing Planning: Outsourcing and Offshoring l Advantages l Disadvantages l Special issues Employer concerns regarding working conditions l Loss of control over quality l 3 -20