Human Resource Management1 HR Planning. Human Resource Management2 HR Planning – Learning By the end of this unit you should be able to: 1.Define HR planning.
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Slide 1
Human Resource Management1 HR Planning
Slide 2
Human Resource Management2 HR Planning Learning By the end of
this unit you should be able to: 1.Define HR planning and explain
its purpose 2.Describe the HR Planning process namely; Stocktaking,
Forecasting, Planning and Implementing 3.Define and calculate
labour turnover and explain its relevance to HR planning 4.Define
and calculate absenteeism and explain its relevance to HR
planning
Slide 3
Human Resource Management3 General Comments on HR Planning Key
aspect of HR Should link Business Strategy and HR Arguments for and
against HRP Use of computers Started in the 60s as Manpower
Planning Manpower Planning versus HR Planning HR Planning varies
greatly across companies
Slide 4
Human Resource Management4 of HR Planning? The process by which
an organisation ensures that it has the right number and kinds of
people, at the right place, at the right time, and capable of
effectively & efficiently completing those tasks that will help
the organisation achieve its overall strategic objectives Human
Resource Management, DeCenzo & Robbins, 1999 Forecasting the HR
needs and planning the steps necessary to meet them
Slide 5
Human Resource Management5 Aims of HR Planning 1.Obtain &
retain the quantity and quality of manpower needed 2.Make the best
use of manpower resources 3.Anticipate potential
surpluses/deficits
Slide 6
Human Resource Management6 Why is it important for an
organisation to conduct HR Planning? 1... 2... 3... 4...
Marchington & Wilkinson, Core Personnel & Development
2000
Slide 7
Human Resource Management7 Benefits of HR Planning 1.Reduced
costs 2.Improved planning of employee development 3.Improved
business planning 4.Equality improvements 5.Promotion of HR
planning 6.Useful tool for measuring HR success
Slide 8
Human Resource Management8 Human Resource Management, De Cenzo
& Robbins1999
Slide 9
Human Resource Management9 HR Planning Process 1.Stocktaking /
Analysing 2.Forecasting 3.Planning 4.Implementation
Slide 10
Human Resource Management10
Slide 11
Human Resource Management11 Personnel & HR Management,
Gunnigle et al, 1997
Slide 12
Human Resource Management12 Stocktaking Internal; HR Workforce
profile (age, experience, skills, ability) Age, experience,
qualifications inventory Skills inventory Personnel replacement
charts Training and development plans Performance reviews Job
analysis (what skills,knowledge, abilities are required) Job
descriptions Skill audit
Slide 13
Human Resource Management13 Forecasting Demand Forecasting How
many employees will be required for the future Supply Forecasting
Where future employees are going to be found
Slide 14
Human Resource Management14 Demand Forecasting INTERNAL
organisational objectives operational plans product demand
technology and administrative changes Capital investment plans
Managerial judgement EXTERNAL economic climate, legislation,
flexibility
Slide 15
Human Resource Management15 Supply Forecasting Classify
manpower resources/Age analysis Labour turnover/Wastage analysis
Promotions/Transfers Changes in hours/patterns of work Absence
analysis Sources of supply
Slide 16
Human Resource Management16 Wastage analysis Measuring turnover
number of employees who leave in one year x 100 average number
employed in the past year Labour Stability Index number of
employees with more than one years service x 100 total number
employed one year ago
Slide 17
Human Resource Management17 Personnel & HR Management,
Gunnigle et al, 1997
Slide 18
Human Resource Management18 Personnel & HR Management,
Gunnigle et al, 1997
Slide 19
Human Resource Management19 How to calculate absenteeism Total
absence (days/hours) in a particular period x 100 Total possible
time (day/hours)
Slide 20
Human Resource Management20 Exercise: Age Analysis 1.What do we
mean by age analysis? 2.Why would you conduct an age analysis?
3.What are the following statements saying about age in the
organisation This organisation has a mature age profile This
organisation has a middle age profile This organisation has a young
age profile 4.List some advantages and disadvantages of each the
above profiles?
Slide 21
Human Resource Management21 Sources of External Supply In
establishing the sources of external labour supply one needs to be
mindful of the following: Unemployment levels Employment trends
Local market conditions Occupational market conditions Legislation
e.g. equality, Social Partnership
Slide 22
Human Resource Management22 Sources of supply - Local Level of
unemployment Open & closure of new workplaces Nos. and
qualifications of school and college leavers Housing &
transport developments Employer reputation
Slide 23
Human Resource Management23 Exercise: Supply of labour local to
organisations List factors that influence the supply of employees
in the area LOCAL to an organisation?
Slide 24
Human Resource Management24 Stage 3: Planning By going through
stages 1,2,3 an organisation establishes whether it is going to
have a labour shortage or surplus. From this it will then need to
PLAN how it is going to address this shortage or surplus. This is
called the planning stage.
Slide 25
Human Resource Management25 Exercise: Planning List actions
that an organisation can take if it identifies that it will have a
labour SHORTAGE
Slide 26
Human Resource Management26 Exercise: Planning List actions
that an organisation can take if it identifies that it will have a
labour SURPLUS
Slide 27
Human Resource Management27 Stage 4: Implementation The
implmentation stage involves Putting the plan into action, setting
the cycle set in motion Monitoring, Reviewing, Altering and
Evaluating that Plan regularly.
Slide 28
Human Resource Management28 But do organisations conduct HR
Planning in Practice? U.K.: Cowling & Waters(1990) IPD survey,
late 80s Major uses of HRP were for Identifying t&d needs
Analysing labour costs & productivity Assessing need for
structural change HR Planning takes place on Ad hoc basis Public
Sector is behind the Private Sector Kinnie & Arthurs (1993) of
organisations had computer systems, 1/3 using them for strategic
purposes Marchington & Wilkinson, Core Personnel &
Development 2000
Slide 29
Human Resource Management29 HR Planning in Practice cont..
U.S.A. Greer, Jackson & Fiorito (1989) USA is not much better
than the UK 137 organisations in mid 80s Qualitative techniques
(such as replacement charts, personnel inventories, supervisor
estimates)are more common than quantitative techniques Major uses
of HR planning include; career planning, hrd, affirmative action,
avoiding shortages of key personnel Huselid (1993) Use of HR
planning varies a great deal Employers most likely to use HRP are
large, r&d intensive orgs with sophisticated planning systems
and HR managers who are actively involved at a strategic level
Marchington & Wilkinson, Core Personnel & Development
2000
Slide 30
Human Resource Management30 Why do so few organisations avoid
HR planning? 1.Models & techniques not really rooted in the
real world 2.Data is not held in user friendly form 3.The is no
clear links between HR & Business plans 4.Senior Line Managers
have little interest in or commitment to HR planning Marchington
& Wilkinson, Core Personnel & Development 2000
Slide 31
Human Resource Management31 Summary HR Planning has a long way
to go HR Planning is not a substitute for managerial judgement but
an aid to decision making Changing nature of organisations is going
to influence HR Planning
Slide 32
Extra Reading all in Moodle! Chapter 5 (pg 92 103) in core text
book CIPD Factsheet: Absence Management CIPD Factsheet: Employee
Turnover Crown Hotel HR Planning Exercise Human Resource
Management32
Slide 33
Sample exam questions 1.Describe the four stages in the HR
planning process. 2.Describe 3 actions you could take to fill a
labour shortage in a company? 3.Describe 3 actions you could take
to resolve a labour surplus in a company? 4.Why is it important to
know what the organisation mission and objectives are before you
commence HR planning? 5.Explain the term labour turnover. Discuss
the reasons why employees leave organisations. Discuss the actions
organisations can take to improve employee retention. 6.According
to the CIPD (2004) employee turnover is much higher in retailing,
hotels & restaurants & call centres than among civil
servants, fire fighter and the police. Discuss at least three
reasons why this is so and describe at least 5 actions that
organisations with unacceptably high turnover may take to reduce
attrition rates 7.Imagine that you have just been given the task of
devising a human resource plan for Next clothing retail in Sligo.
What information would you need in order to put this plan together.
Human Resource Management33