Human Resource Planning Process
Human Resource Planning
Forecasting Human Resource Requirements
Comparing Requirements and Availability
Forecasting Human Resource Availability
Surplus of Workers
Demand = Supply
Restricted Hiring, Reduced Hours, Early Retirement, Layoff, Downsizing
Shortage of Workers
The Process of Human Resource Planning
- Organizations need to do human resource planning so they can meet business objectives and gain a competitive advantage over competitors.
Human resource planning compares the present state of the organization with its goals for the future
Then identifies what changes it must make in its human resources to meet those goals
Trends and events that affect the economy also create opportunities and problems in obtaining human resources.
To prepare for and respond to these challenges, organizations engage in human resource planning – defined in Chapter 1 as identifying the numbers and types of employees the organization will require to meet its objectives.
Overview of the Human Resource Planning Process
Figure 5.1 shows the human resource planning process.
The process consists of three stages:
- Goal setting and strategic planning
- Program implementation and evaluation
Human Resource Forecasting
- HR Forecasting attempts to determine the supply and demand for various types of human resources, and to predict areas within the organization where there will be labor shortages or surpluses.
There are three major steps to forecasting:
Forecasting the demand for labor
Determining labor supply
Determining labor surpluses and shortages
The first step in human resource planning is forecasting.
The primary goal is to predict which areas of the organization will experience labor shortages or surpluses.
HUMAN RESOURCE PLANNING
FORECASTING HR REQUIREMENTS (DEMAND ANALYSIS)
(Trying to predict future staffing needs)
Vacancy Analysis (projected turnover)
FORECASTING HR AVAILABILITY (SUPPLY ANALYSIS)
(Predicting worker flows and availabilities)
Succession or Replacement Charts
Skills Inventories (use of HRIS)
Labor Market Analysis
Markov Analysis (Transition Matrix)
Forecasting the Demand for Labor
- Constructing and applying statistical models that predict labor demand for the next year, given relatively objective statistics from the previous year.
- Objective measures that accurately predict future labor demand.
Usually an organization forecasts demand for specific job categories or skill areas.
After identifying the relevant job categories or skills, the planner investigates the likely demand for each.
The planner must forecast whether the need for people with the necessary skills and experience will increase or decrease.
There are several ways of making such forecasts.
Determining Labor Supply
Predicting Worker Flows and Availabilities
- Succession or Replacement Charts
Who has been groomed/developed and is ready for promotion right NOW?
- Human Resource Information Systems (HRIS)
An employee database that can be searched when vacancies occur.
- Transition Matrices (Markov Analysis)
A chart that lists job categories held in one period and shows the proportion of employees in each of those job categories in a future period.
It answers two questions:
“Where did people in each job category go?”
“Where did people now in each job category come from?
- Personnel / Yield Ratios
How much work will it take to recruit one new accountant?
Once a company has forecast the demand for labor, it needs an indication of the firm’s labor supply.
FOR EXECUTIVE POSITIONS
POSITION REPLACEMENT CARDS
FOR EACH INDIVIDUAL POSITION
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POSITION WESTERN DIVISION SALES MANAGER
DANIEL BEALER Western Division Sales Mgr Outstanding Ready Now
POSSIBLE CANDIDATES CURRENT POSITION PERFORMANCE POTENTIAL
SHARON GREEN Western Oregon Sales Manager Outstanding Ready Now
GEORGE WEI N. California Sales Manager Outstanding Needs Training
HARRY SHOW Idaho/Utah Sales Manager Satisfactory Needs Training
TRAVIS WOOD Seattle Area Sales Manager Satisfactory Questionable