Hr Planning and Strategy

8/4/2019 Hr Planning and Strategy

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HR PLANNING AND STRATEGY


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HUMAN RESOURCE PLANNING


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Human resource Planning

HRP is a right number of people with right skills at

right place at right time to implement organizational

strategies in order to achieve organizationalobjectives

HRP is the process of analyzing an organizations

human resources needs and developing plans,

policies, and systems to satisfy those needs.


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Human Resource Planning

Is settinghuman resource objetives and deciding how

to meet then.

Ensuring HR resource supply meets human resource

demands.


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Importance Of HR Planning:

1) Each Organisation needs personnel with necessary

qualifications, skills, knowledge, experience &

aptitude .

2) Need for Replacement of Personnel - Replacing old,

retired or disabled personnel.

3) Meet manpower shortages due to labour turnover


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Importance Cont

4) Nature of present workforce in relation with

Changing Environment - helps to cope with changes

in competitive forces, markets, technology, productsand government regulations.


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How HRP could be used:

i) quantify job for producing product / service

ii) quantify people & positions required

ii) determine future staff-mixiii) assess staffing levels to avoid unnecessary costs

iv) reduce delays in procuring staff

v) prevent shortage / excess of staff

vi) comply with legal requirements


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HRP needs for HRD:

HRP is important for planning the investment in the

development and utilization of human resource. Any

investment in the human resource activities isconsidered an investment for the future growth and

development of the organization.


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HRP Process:


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Process Contd

Interfacing with strategic planning and scanning the

enviroment.

Taking an inventory of the companys current human

resource.

Forecastinng demand for human resource.

Forecasting the supply of HR from within the

organization and in the external labor market.

Comparing forecast of demand and supply.

Planning the actions needed to deal with anticipated

shortage or overages.

Feeding back such information into the strategic

planning process.


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Example Of Basic HRPModel:


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HRP should be

Done to guide and coordinate all HR activities so they

work together to support the overall strategy.

Responsive to internal and external environment.

Planning- done in advance

Strategic planning- linked with higher level planning


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FORECASTING:

The use of information

from the:

Past and present

situations.

To identify expected future

conditions.


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Forecasting HR supply anddemand:

Types of forecast:

HR demand

Internal supply

External supply

Forecasting Periods:

Short term-less than 1year

Intermediate-up to five

years

Long range-more than 5

years


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Human Resource Forecasting:

Process of projecting the organizations future HR

needs (demand) and how it will meet those needs

(supply) under a given set ofassumptions about theorganizations policies and the environmental

conditions in which it operates.

Without forecasting cannot assess the disparity

between supply and demand nor how effective an HR

program is in reducing the disparity.


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Internal Supply forecasting:

Organizational features (e.g. , staffing capabilities)

Productivity- rates of productivity, productivity

changes.

Rates of promotion, demotion, transfer and turnover.


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External Supply forecasting:

External labor market factors (retirements, mobility,

education. unemployment)

Controllable company factors on external factors

(recruiting, compensation)


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Demand forecasting information:

Organizational and unit strategic plans

Size of organization

Staff and managerial support

Organizational design


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HR STRATEGY


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Strategy

A strategy is a course of action.

The companys long term plan for how it will balance

its internal strengths and weaknesses with itsexternal opportunities and threats to maintain a

competitive advantage.


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The Meaning Of strategy:

A critical factor that effects

a firm performance.

A factor that contributes to

competitive advantage in

markets.

Having long term focus.

Plans that involve the top

executive and board ofdirectors of the firms.

A general frame work that

provides a perspective for

selecting specific policies

and procedures.


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Why is HR critical to firmperformance?

85% of all firms in US are services firm.

Services is delivered by people.

Low quality HR leads tolow quality customer services.

In 21st century effective knowledge management

translate into competitive advantage and profits.

Knowledge comes from a firms people.


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Levels of Strategy:


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Context HR:

1. Five factors influence HR system:

External environment

Social: Social values. Roles, trend etc.

Political: political forces, change E.g. Bush presidency

and its agenda for social security.

Lgal: laws. Court decisions, regulatory rules. Economic: produce labor, capital factor markets.


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CONT.

2. Work force:

demographics

3. Organizational Culture:

Weak VS. strong

type of culture

4. Organization strategy

5. Technology of production and organization of work.

Documents

Hr Planning and Strategy