Hr Planning St Dcp y

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Human Resource Management 1

HR Planning


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HR PlanningLearning

By the end of this unit you should be able to:

1. Define HR planning and explain its purpose

2. Describe the HR Planning process namely;

Stocktaking, Forecasting, Planning andImplementing

3. Define and calculate labour turnover and explain

its relevance to HR planning

4. Define and calculate absenteeism and explain its

relevance to HR planning


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General Comments on HR Planning

Key aspect of HR

Should link Business Strategy and HR

Arguments for and against HRP

Use of computers

Started in the 60s as Manpower Planning

Manpower Planning versus HR Planning HR Planning varies greatly across

companies


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of HR Planning?

The process by which an organisation ensures that

it has the right number and kinds of people, at

the right place, at the right time, and capableofeffectively & efficiently completing those tasks

that will help the organisation achieve its overall

strategic objectives

Human Resource Management, DeCenzo & Robbins, 1999

Forecasting the HR needs and

planning the steps necessary to meet them


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Aimsof HR Planning

1. Obtain & retain the

quantity and quality of

manpower needed

2. Make the best use of

manpower resources

3. Anticipate potential

surpluses/deficits


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Why is it important for an organisation

to conduct HR Planning?1. ..

2. ..

3. ..

4. ..

Marchington & Wilkinson, Core Personnel & Development 2000


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Benefitsof HR Planning

1. Reduced costs

2. Improved planning of employee

development

3. Improved business planning

4. Equality improvements

5. Promotion of HR planning

6. Useful tool for measuring HR success


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Human Resource Management, De Cenzo & Robbins1999


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HR Planning Process

1. Stocktaking / Analysing

2. Forecasting3. Planning

4. Implementation


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Personnel & HR Management, Gunnigle et al, 1997


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StocktakingInternal; HR

Workforce profile (age, experience, skills, ability) Age, experience, qualifications inventory

Skills inventory

Personnel replacement charts

Training and development plans

Performance reviews

Job analysis (what skills,knowledge, abilities are required) Job descriptions

Skill audit


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Forecasting

Demand Forecasting

How many employees will be required for the

future

Supply Forecasting

Where future employees are going to be found


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DemandForecasting

INTERNAL

organisational objectives

operational plansproduct demand

technology and administrative changes

Capital investment plans

Managerial judgement

EXTERNAL

economic climate, legislation, flexibility


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Supply Forecasting

Classify manpowerresources/Age analysis

Labourturnover/Wastageanalysis

Promotions/Transfers

Changes in

hours/patterns of work Absenceanalysis

Sources of supply


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Wastage analysis

Measuring turnover

number of employees who leave in one year x 100

average number employed in the past year

Labour Stability Index

number of employees with more than one years service x

100

total number employed one year ago


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How to calculate absenteeism

Total absence (days/hours) in a particular period x 100

Total possible time (day/hours)


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Exercise:Age Analysis

1. What do we mean by age analysis?2. Why would you conduct an age analysis?

3. What are the following statements saying about age in

the organisation

This organisation has a mature age profile

This organisation has a middle age profile

This organisation has a young age profile

4. List some advantages and disadvantages of each the

above profiles?


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Sources of External Supply

In establishing the sources of external labour supplyone needs to be mindful of the following:

Unemployment levels

Employment trends Local market conditions

Occupational market conditions

Legislation e.g. equality, Social Partnership


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Sources of supply - Local

Level of unemployment

Open & closure of new workplaces

Nos. and qualifications of school and

college leavers

Housing & transport developments

Employer reputation


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Exercise: Supply of labour local to organisations

List factors that influence the supply of employees in the area

LOCALto an organisation?


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Stage 3: Planning

By going through stages 1,2,3 an organisation

establishes whether it is going to have a

labour shortage or surplus. From this it willthen need to PLAN how it is going to

address this shortage or surplus. This is

called the planning stage.


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Exercise: Planning

List actions that an organisation can take if it identifies that it

will have a labour SHORTAGE


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Exercise: Planning

List actions that an organisation can take if it identifies that it

will have a labour SURPLUS


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Stage 4: Implementation

The implmentation stage involves

Putting the plan into action, setting the

cycle set in motion

Monitoring, Reviewing, Altering and

Evaluating that Plan regularly.


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But do organisations conduct HR Planning in

Practice?

U.K.: Cowling & Waters(1990) IPD survey, late 80s

Major uses of HRP were for

Identifying t&d needs

Analysing labour costs & productivity Assessing need for structural change

HR Planning takes place on Ad hoc basis

Public Sector is behind the Private Sector

Kinnie & Arthurs (1993) of organisations had computer systems, 1/3 usingthem for strategic purposes



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HR Planning in Practice cont.. U.S.A. Greer, Jackson & Fiorito (1989)

USA is not much better than the UK

137 organisations in mid 80s

Qualitative techniques (such as replacement charts, personnel

inventories, supervisor estimates)are more common than

quantitative techniques

Major uses of HR planning include; career planning, hrd,

affirmative action, avoiding shortages of key personnel

Huselid (1993)

Use of HR planning varies a great deal

Employers most likely to use HRP are large, r&d intensive orgswith sophisticated planning systems and HR managers who are

actively involved at a strategic levelMarchington & Wilkinson, Core Personnel & Development 2000


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Whydo so few organisations avoid HR

planning?

1. Models & techniques not really rooted in thereal world

2. Data is not held in user friendly form

3. The is no clear links between HR & Businessplans

4. Senior Line Managers have little interest in or

commitment to HR planning



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Summary

HR Planning has a long way to go

HR Planning is not a substitute for

managerial judgement but an aid to decisionmaking

Changing nature of organisations is going to

influence HR Planning


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Extra Readingall in Moodle!

Chapter 5 (pg 92103)in core text book

CIPD Factsheet: Absence Management

CIPD Factsheet: Employee Turnover Crown Hotel HR Planning Exercise



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Sample exam questions

1. Describe the four stages in the HR planning process.2. Describe 3 actions you could take to fill a labour shortage in acompany?

3. Describe 3 actions you could take to resolve a labour surplus in acompany?

4. Why is it important to know what the organisation mission andobjectives are before you commence HR planning?

5. Explain the term labour turnover. Discuss the reasons whyemployees leave organisations. Discuss the actions organisationscan take to improve employee retention.

6. According to the CIPD (2004) employee turnover is much higher inretailing, hotels & restaurants & call centres than among civilservants, fire fighter and the police. Discuss at least threereasons why this is so and describe at least 5 actions thatorganisations with unacceptably high turnover may take to reduceattrition rates

7. Imagine that you have just been given the task of devising a humanresource plan for Next clothing retail in Sligo. What informationwould you need in order to put this plan together.


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