Human Resource Planning

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Human Resource Planning
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Overview

• Definitions and purposes
• Influences on planning activities
• HRP process
• Staffing planning strategies

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What is HRP?

• Process which specifies what a firm must do to
  develop human resources consistent with overall
  firm strategy
• Forecasting future HR needs and then developing
  staffing plans and programs to fulfill these
  needs
• Purpose To insure the right mix of the numbers
  and types of employees deployed across the firm
  to achieve strategic goals of the organization

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Firm Mission and Goals
HR Goals Strategy
Firm Business Strategy
Staffing Goals Strategy
Staffing Policies and Programs Core activities
Recruitment, selection, and employment decisions
Support activities Legal compliance, planning,
and job analysis
Staffing System and Retention Management
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Influences on Planning Activities

• External
• Economic Conditions
• Labor Market Issues
• Labor Unions
• Government Legislation
• Technology
• Globalization
• Competitive Conditions

• Internal
• Current workforce
• HR Philosophy Values
• Current HR policies and programs
• Organizational and job structure (job levels and
  categories)
• Current HR problems

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HR Planning Process
Forecast Labor Requirements
Forecast Labor Availabilities
Compare
Determine Gaps (Shortages and Surpluses
External Scan
Internal Scan
Develop Staffing Goals And Action Plans
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Forecasting Labor Requirements and Availability

• Statistical Techniques
• Regression analysis, ratio analysis, time series
  analysis, stochastic analysis, linear
  programming, markov analysis of labor flows and
  rates
• Assumes past is predictive of future
• Judgmental techniques
• Managers make estimates of labor needs, flows,
  and availabilities
• Executive reviews, succession planning, vacancy
  analysis

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Internal Scanning

• Sources of Internal Data
• Surveys, interviews, key indicators such as
  turnover rates, promotion rates, absenteeism,
  accidents rates, performance reviews, skills
  inventories, employee complaints and grievances,
  training history, cultural analysis
• Human Resource Information Systems are useful here

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External Scanning

• Sources
• Bureau of Labor Statistics Current Population
  Survey (unemployment rates, labor force
  participation rates) and Establishment Survey
  (industry wages and hours)
• http//www.bls.gov
• Professional publications (SHRM), futurist think
  tanks, conference reports
• External scanning varies across firms in terms of
  comprehensiveness and proactive stance

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Gaps Analysis

• Reconcile requirements and availability data in
  light of internal and external scanning
• Types and levels of shortages and surpluses
  determined across jobs

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Staffing Action Planning

• Set staffing goals (qualitative and quantitative)
• Generate alternative staffing activities
• Examples hiring (permanent, temporary,
  contracted employees), overtime, redeployment,
  early retirements, reduced/deferred payment,
  etc.
• Assess their feasibility (time, cost, success
  probability)
• Choose appropriate activities and implement
  decisions