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Human Resources Planning andDevelopment

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Internal and External Trends1.Increasingly, legislative, socio-

demographic and business trends are

exerting pressures for organizational

change.

2.Many organizations are finding it

easier to make technical changes than

to make accompanying human resources

changes.

3.In fact, the ability to adapt theirhuman resources to new requirements

is proving to be a limiting factor to

success for many organizations.

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Reasons why HRP&D is becoming

more important

Skill shortages in key areas (e.g.,

systems analysts, engineers, data

base specialist,

information/communicationsspecialists) caused by a greater

demand for information

processing/skills along with a

shrinking labour force making it

increasingly important to plan for,

and to develop staff effectively.

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Reasons why HRP&D is Becoming More

Important (Contd)

the requirement to foster management teams

capable of "accomplishing more with less", and

with a more diverse workforce.

the challenge of containing human resources

costs in the context of the trend bygovernments to off-load training/development,

health, benefits, and other costs onto

corporations.

the pressures of accelerating social and

legislative changes (e.g., pay equity,employment equity, etc.).

the challenge of making the most of staff,

many of whom are educationally very well

qualified, but under utilized.

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Reasons why HRP&D is Becoming

More Important (Contd)

Corporate downsizing, restructuring, and the

move to organizational levelling is leading

to fewer, and more widely placed rungs on the

corporate ladder. This, along with more

sophisticated demands in many jobs, will make

the transition between levels more difficult,

rendering the probability of being able to

learn the skills required for successivelevels by osmosis alone, less likely.

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Important (Contd)

The available workforce is becoming more

diversely based; increasingly composed of new

Canadians; women, entering or re-entering the

workforce; and members of ethnic minorities.

Although these individuals will bring many

skills and abilities with them, the ability to

assess and keep track of: skills and

qualifications; as well as, progress on skillsrefocusing and upgrading programmes, will be

an increasingly important HRIS function

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Important (Contd)

Many organizations are finding that alarming

numbers of secondary and post-secondary

school graduates do not have the literacy,

numeracy, and technical skills that they

require. Some of these problems may stem from

the fact that increasing numbers of employees

are working in their second language, while

technological and other changes are creatingnew demands that the educational system

cannot respond to quickly enough.

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Importance of an HRIS

The need to plan more systematically

for the people required to staff and

manage organizations, now, and into

the future is critical.

Such planning cannot be done

effectively in organizations any size

beyond a few hundred employees without

the support of an HRIS

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Importance of an HRIS (Contd)

With the support of such tools human

resources staff have increasingly been able

to demonstrate that they have an important

contribution to make to bottom line

strategic corporate decision-making.

Those human resources executives that have

been able to show that they have something

important to contribute to the bottom-line

success of the organization are increasinglybeing welcomed to sit on senior executive

committees

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Human Resource Planning

Human

ResourcePlanning

Human

ResourceForecasting

Succession

Planning

Organizational

Design

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Human Resources Planning(Contd)

The objective of human resources

planning is to ensure that there

are sufficient numbers of

competent and motivated

employees to meet an

organization's need now, and for

the foreseeable future.

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Human Resources PlanningThe use of an HRIS in strategic corporatedecision-making should result in improved:

understanding of the human resources

implications of business/operationalstrategies;

awareness of the experience, knowledge and

ability in the organization's employees;

productivity; selection/development of potential

replacements for key/vulnerable positions.

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Demand and Supply Forecasting

The structure of an organization's

workforce, including the number of employees

that may be required, with specified skills,

in defined positions should be determined

from the organization's strategic/business

plans through Demand Forecasting

The availability of human resources to meet

these demands, whether from within the

organization, or from the external labour

market may be determined through Supply

Forecasting

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Human Resources/Succession Planning

There is sometimes confusion in the difference between

human resources and succession planning. We have

found the following rule of thumb to be useful in

distinguishing between the two

human resources planning is aimed at resolving gaps

that may exist for human resources of certain skills,whether across the organization, or in specificorganizational units.

Succession planning, is aimed at determining how

specific key, and/or vulnerable positions are to be

filled appropriately.Thus, in operating specifically at the position, or

individual level succession planning may be regarded

as a subset or special application of human resources

planning.

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Human Resources ReportsUsing information contained in the position, person, and

organization modules,of an HRIS reports can be done on: the structure of the organization, as well as units

within it relative to defined organizational

requirements;

the numbers of unfilled positions;

the qualifications and assessed performance of the

workforce relative to present and future defined

requirements;

the age distribution of the workforce, across the

organization, within organizational units, and within

specific functions;

employment equity reports, including the distributionof women, individuals with disabilities, native people,

and visible minorities in the workforce relative to the

distribution of such individuals in the population;

turnover statistics by unit, function, qualifications,

employment equity category, etc.

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Human Resources Reports (Contd)

May be used to help line management answer such

questions as:

are there any special business/economic

factors that are likely to have major

effects on the organization over the next

one to five years?

what will the organizational unit look

like one year from now? Two years from

now? Three years from now?

what organizational problems are being

experienced?

what human resources problems are being

experienced?

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Significant parts of the data required for

human resources planning (e.g., performance

appraisal results, academic qualifications,

skills inventories, applicant data, turnover

data, job description and job requirements

data) should be resident in the HRIS, as

should an analysis capability so that

relationships may be drawn in the data, and

the results of these analysis reported inclear, "user-friendly" form.

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Human Resources/Succession Planning (Contd)

Knowing what is on the system, as

well as how to conduct the requisite

analyses, and report the results

provides human resources personnelwith a golden opportunity for gaining

credibility with line management in

an area that is becoming increasingly

important to the long-term health ofan organization.

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The human resources practitioner should be able to usethe HRIS to provide statistical overviews for the

whole organization, as well as each unit involved in

human resources/succession planning. The overview

should summarize flow data, such as recruitment,

separations, promotions, transfers and turnover, and

personal data such as sex, designated group for

employment equity purposes, language(s), group and

level, age, and years of service. A preliminary

estimate of potential vacancies based on retirement

projections should also be provided. More detailed

assessments of these data may be conducted with linemanagement wherein information can be added that is

not formally contained on the HRIS, but may be known

in the work environment, such as possible transfers,

promotions, resignations, retirements, and so on

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The human resources practitioner should then

do summary analyses which can be provided toline management in advance of any HRP

meetings, and should be prepared to do

further "what if" modelling as part of the

planning process. Line management should use

this information to review job

descriptions/positions that will probably

become vacant in the next few years, and

or/those that have significant operational

impact. The job description informationshould be examined to help identify the major

qualities of experience, knowledge and

ability that will be required in successors

to the present incumbent

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The HRIS can then be used to provide

information on current employees, including

latest performance review and career

development reports that have been completed

and entered on the system. Summary reports

of this information prepared by human

resources practitioners and supplied to line

management beforehand can be used to refreshmemories regarding individual strengths,

areas that need improvement, career

interests, and development plans.

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A human resources practitioner can help linemanagement identify potential successors for

all positions that have been identified as "key

and or vulnerable. (S)he can also play a

special role in using the HRIS in identifying

appropriate individuals in organizational unitsother than the one in question. The human

resources/succession planning module of the

HRIS should have pre-established screens that

allow those responsible for human

resources/succession planning to document theadditional knowledge experience, or formal

training that is determined to be necessary for

the identified individuals to qualify as a

candidates when each position becomes vacant.

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(Contd)

The organizational charting function

of an HRIS should be able to show the

relation of such "key or vulnerable"

positions to each other, and to otherpositions in the organizational, thus

providing a graphic overview of the

health of management "depth" of the

organization, as well as where theremight be weaknesses

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(Contd)

Human resources/succession planning is often

done by committees formed from the senior

management team of the organizational unit

concerned, with the head of the unit as chair,

and a human resources practitioner as a resource

person. Such a committee attempts to reconcile

the demand of personnel with the required skill

mix and the available supply reflected in the

career planning and development information, and

summary reports available through the HRIS. The

committee examines this information in thecontext of what the unit requires now and for the

future, both generally and for specific positions

(including employment equity considerations).

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The main basis for human resources/succession plans

are organizational requirements (as determined by

the demand/supply forecasts as outlined earlier),

along with the resources to make them happen. It is

generally more effective and economical to develop

human resources internally. When, however, it is

evident that certain requirements will not, or may

not be met through such efforts, then the human

resources plan will have contingencies to ensure

that appropriate individuals are recruited

externally.

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