Chapter 3 Planning for Human Resources

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Chapter 3Planning for Human Resources
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HRM and Competitive Advantage
HR Planning Job Analysis
Recruitment Selection
Output Retention Legal Compliance Company Image
Competence Motivation Work Attitudes
Cost Leadership Product Differentiation
Training/Develop. Performance App. Compensation Pr
oductivity Imp.
Workplace Justice Unions Safety
Health International
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Linking HR Planning Practices to Competitive
Advantage
Transition Costs Are Minimized
Employee Movements Into, Within, and Out Of
Organization Are Smooth/ Less Disruptive
Lower Costs
Competitive Advantage
Effective HR Planning
Select High- Quality Applicants
Increased Employee Competence
Sound HRM Decision Making
Retain High- Performing Employees
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Human Resource Planning
process of identifying and responding
to organizational needs and charting new
policies, systems, and programs that will assure
effective human resource management under
changing conditions
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Objectives of Human Resource Planning

• Enable organizations to anticipate their future
  HRM needs
• To identify practices that will help them meet
  those needs

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Benefits of HR Planning

• Aids in planning job assignments
• Helps cope with fluctuations in staffing
• Identifies recruiting needs
• Provides other useful information

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Strategic Planning

• Determine the organizational mission.
• Scan the organizational environment.
• Set strategic goals.
• Formulate a strategic plan.

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Step 1 Determine the Organizational Mission

• Mission statement
• organizations overall purpose
• basic business scope and operations
• Answer questions
• Why does our organization exist?
• What unique contributions can it make?

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Step 2 Scan the Organizational Environment

• External Environment
• Political
• Legal
• Economic
• Social
• Technological
• Industry

• Internal Environment
• Organization culture
• Structure
• Current mission
• Past history
• Layers of management
• Span of control
• KSAs of employees

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Step 3 Set Strategic Goals

• Desired outcomes to accomplish mission
• Specific
• Challenging
• Measurable

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Formulate a Strategic Plan

• Courses of action to meet strategic goals
• Specifies functional or departmental goals

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Human Resource Planning
getting the right people at the right place at
the right time
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Human Resource Planning
Demand
Supply
Gap? HR Needs
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Demand Forecasting

• Statistical approaches
• Judgmental methods

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Statistical Approaches to Demand Forecasting

• Trend analysis
• Ratio analysis
• Regression analysis

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Trend Analysis
1992 1993 1994 1995 1996
Sales 12000 14500 13200 19100 22000
of Emps. 300 393 342
511 650
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Ratio Analysis
patients 100 nurses 25 patient/nurse
ratio 4/1
If there are 315 patients, how many nurses are
needed?
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Regression Analysis
75 50 25 0
Employees
50 100 150
Customers
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When Are Statistical Approaches to Demand
Forecasting Appropriate?

• Stable environment
• Business factor can be predicted with some
  accuracy
• The relationship between workforce size and
  business factor remains constant over time

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Judgmental Methods of Demand Forecasting

• Group brainstorming
• Sales force estimates

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Steps to Supply Forecasting

• Group positions by title, function, and level of
  responsibility
• Estimate within each job group how many of
  current employees remain, move to another
  position, or leave the organization

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Employee Flows in an Organization
External Recruits
promotions demotions internal transfers
Quits Retirements Deaths Layoffs
Recalls
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Forecasting Labor Supply
Beginning Inventory 125 - Quits
5 - Retirements 2 - Demotions Out
1 Total 117 Transfers In
3 Promotions In 2 Forecasted Internal
Supply 122
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Dealing with an Oversupply of Personnel

• Freeze hiring
• Restrict overtime
• Retrain/redeploy
• Switch to part-time employees
• Use unpaid vacations

• Use a shorter workweek
• Use pay reductions
• Use sabbaticals
• Encourage early retirements

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Dealing with an Undersupply of Personnel

• Hire additional workers
• Improve productivity through training
• Use overtime
• Add additional shifts

• Reassign jobs
• Use temporary workers
• Improve retention

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Human Resource Information System

• Record, store, manipulate, and communicate
• Information across wide geographic boundaries
• Access to many users

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Typical Job Information in an HRIS

• Job Information
• position title
• of current vacancies
• qualifications needed
• place in career ladder
• salary range
• replacement candidates
• turnover rate

HRIS
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Typical Employee Information in an HRIS

• payroll information
• attendance data
• tax deduction information
• pension contributions
• turnover
• career interests/obj.
• specialized skills
• honors awards
• benefits received
• licenses certifications

• biographical data
• EEO classification
• education
• date of hire
• position held with co.
• salary history
• performance ratings
• training received
• prior work experience
• developmental needs

HRIS
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Purposes Served by an HRIS

• Make budget-related calculations.
• Report turnover rates by department.
• Track external candidates.
• Track employee participation in each benefit
  option.
• Track accruals of vacation days and sick leave.

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Intranets and Extranets
Insurance Provider
Intranet

• Employee handbooks
• Benefits information
• Phone directories
• Job postings

Extranet

• Enroll in plan
• Select physician

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Line Managers and HR Planning

• Formulate unit and individual goals.
• Ensure proper staffing at all times.
• Improve retention by establishing good working
  relationships.

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The Role of the HR Department in Planning for
Human Resources

• Providing feasibility input in strategic planning
• Developing and implementing HR plans
• Evaluating HR plans