Human Resource Planning

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Human Resource Planning
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What is HRP?

• The systematic process of planning HR
  requirements for the organisation

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The 4 stages of HR planning
Forecasting demand for employees
Analysing current employees
Planning external supply
Planning internal supply
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Factors affecting HRP

• Changing nature of a business e.g. from being
  product to market orientated
• Changes in the market e.g. consumers buying
  more or less of a companys product
• Technology the introduction of automation
• Competition e.g. a need to cut costs to compete
  might mean a reduction in staff
• Demographics reduction in school leavers could
  lead to labour shortage in some areas
• Government e.g. the need to be aware of equal
  opportunities legislation

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Problems of HRP

• People are unpredictable
• External influences e.g. recession
• Poor industrial relations if carried out badly
• Needs to be checked and monitored

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HRP Model
Employee Surveys
Focus Groups
Other Sources
Business Plan
Key Business Themes
Human Resource Implications
Human Resource Plan

• Organisation
• Organisational Shape
• Roles and Responsibilities
• Headcount
• Location

• People
• Key results analysis
• Current Skills
• Gap Analysis
• Employee Requirements
• Succession Planning

• Performance Reward
• - Common performance
• standard
• Performance Mngt
• Reward Mechanism
• Recognition Programmes

Environmental factors
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HRP Forecasting

• Demand
• Supply
• Net Needs
• Short, Mid and Long term

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Forecasting employee demand

• Any relevant historical information e.g. 3.5
  increase in staff for last 4 years
• Problem with this? uncertain business
  environments!
• Examine workers productivity and the work needing
  to be done

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• Work study examine the tasks to be completed
  before deciding on the labour required
• Existing knowledge a hotel manager will know
  she needs more staff in summer months
• Calculating staff loss through the labour
  turnover index.

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Personnel Performance Indicators

• Labour Turnover no of staff leaving each year
• average no. of staff x 100
• Absenteeism no. of staff absent
• staff total x 100
• Labour productivity output per period
• no. of employees per period x100

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Internal employee supply

• Through promotion also motivational
• Through training/development
• Affected by staff loss/retirement etc
• Increased flexibility shift work, part-time
  workers, short term contracts etc

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External employee supply

• This is affected by many factors.
• Housing
• Public transport
• Competition in the area
• Unemployment levels local and national
• Skills availability
• Availability of flexible workers
• Government training/subsidies
• Demographic trends