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Human Resource Planning

Human Resource Planning

Human Resource (HR) Planning
The process of analyzing and identifying the need for and availability of human resources so that the organization can meet its objectives.

HR Planning Responsibilities
Top HR executive and subordinates gather information from other managers to use in the development of HR projections for top management to use in strategic planning and setting organizational goals.

HR Forecasting
Strategic HR Planning

Forecast HR requirements (demand)

Forecast HR availability (supply)




Develop programs to increase supply or reduce demand

Develop programs to decrease supply or increase demand

Attracting and retaining qualified outsiders

Management succession between generations of owners

HR Planning Issues in Businesses

Evolution of HR activities as the business grows

Family relationships and HR policies

HRP Model
Review of organizational environment and strategies Forecast the demand for human resources Forecast supply of human resources Internal (Assess the internal workforce) External

Plan and conduct needed programs Manage the excess supply or demand Develop career plans Develop succession

Feedback on planning process

Environmental Scanning
The process of studying the environment of the organization to pinpoint opportunities and threats. Government Economic
Influences Conditions

HR Planning

Workforce Composition

Geographic and Competition Concerns

Forecasting HR Supply and Demand

Forecasting The use of information from the past and present to identify expected future conditions. Types of Forecasts HR Demand (Employees needed for future) HR Supply ( Employees available for the future) Forecasting Periods Short-termless than one year Intermediateup to five years Long-rangemore than five years

Forecasting demand

Forecasting HR Supply
Forecasting External HR Supply

Factors affecting external supply:

Net migration for an area Individuals entering and leaving the workforce

Individuals graduating from schools and colleges

Changing workforce composition and patterns Economic forecasts

Technological developments and shifts

Actions of competing employers Government regulations and pressures

Other circumstances affecting the workforce

Forecasting internal supply

Assessing the Internal Workforce

Jobs and Skills Audit What jobs exist now? How many individuals are performing each job? What are the reporting relationships of jobs? How essential is each job? What jobs will be needed to implement future organizational strategies? What are the characteristics of anticipated jobs?

Assessing the Internal Workforce (contd)

Organizational Capabilities Inventory
HRIS databasessources of information about employees knowledge, skills, and abilities (KSAs) Components of an organizational capabilities inventory
Individual employee demographics Individual career progression Individual job performance data

Markov analysis Replacement charts and renewal analysis Succession planning

Forecasting HR Supply (contd)

Succession Planning
The process of identifying a long-term plan for the orderly replacement of key employees.

Managing a Human Resources Surplus

Do not hire/replace VRS Reduce work hours Lay off Transfer / reassign

Managing a Shortage of Employees

Use overtime

Add contingent workers

Bring back recent retirees

Human Resource Shortage

Outsource work

Reduce turnover