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From Manpower Planning to Human Resource Planning

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Title: From Manpower Planning to Human Resource Planning


1
From Manpower Planning to Human Resource Planning
  • Lecture Topic 3

2
Overview of Lecture
  • Developmental overview of HR Planning
  • Purpose of HR Planning
  • Various Stages of HR Planning
  • The Case Against/For HR Planning
  • Adapting Traditional HR Planning

3
Definitions of HR Planning (1)
  • strategy for the acquisition, utilisation,
    improvement and preservation of an organisations
    human resources
  • (Department of Employment 1974)
  • (cited by Bratton and Gold, 2003, p194)
  • the process for identifying an organisations
    current and future human resource requirements,
    developing and implementing plans to meet these
    requirements and monitoring their overall
    effectiveness
  • (Beardwell and Claydon, 2007, p159)

4
Definitions of HR Planning (2)
  • the process of interpreting the environment,
    predicting its effects on the organisation,
    evaluating these effects, planning and
    controlling the appropriate measures in order
    that the right human resources are available when
    required
  • (Boella, 2000)

5
Developmental Overview (1)
  • Bramham (1994) argues
  • Manpower Planning as QUANTITATIVE concerned
    with forecasting demand and supply of labour
  • Human Resource Planning as far wider encompassing
    a whole range of activities
  • Motivation of employees, employee attitudes,
    organisational culture

6
Developmental Overview (2)
  • According to Taylor (2002)
  • MP and HRP are concerned with
  • looking ahead, using systematic techniques,
    i.e. auditing skills to be able to meet org.
    requirements of the future.
  • Having the right people, with the right skills,
    in the right places at the right time.

7
Why Look ahead and Forecast?
  • To deal with changes
  • External Environmental Situations
  • Expansion
  • Competition
  • Globalisation
  • Technological
  • Political
  • Social
  • Economical
  • Ecological
  • Legal

8
Purpose of HR Planning
  • Recruitment Gaps
  • Training and Development
  • Staff Costings
  • Redundancy
  • Collective Bargaining
  • Accommodation
  • (Taylor 2002)

9
Stages in HR Planning
  • (Taylor 2002)

10
The HR Planning Cycle has four general stages
  • Forecasting future demand of HR
  • Forecasting future internal supply of HR
  • Forecasting future external supply of HR
  • Formulating responses to the forecasts

11
Stage 1 Forecasting Future Demand (1)
  • Requires looking at
  • Skills required
  • To achieve Business Targets (Goals, Design,
    Culture)
  • Assess skills available Vs Required
  • Predict how many people required
  • Skills will depend on
  • Timescale
  • Nature of Org. activities

12
Stage 1 Forecasting Future Demand (2)
  • Techniques Used to Forecast Demand
  • Systematic Techniques
  • Time series or ratio trend analysis
  • Work-study approach
  • Productivity trend analysis
  • Managerial Judgement
  • Combined Approach (12)
  • Working back from costs

13
Stage 2 Forecasting Internal Supply
  • Involves identifying/acknowledging the
  • existing staff employed by an organisation
  • department by department
  • grade by grade
  • Involves
  • Skills Audits
  • Predicting Staff Turnover
  • Internal promotion analysis

14
Stage 3 Forecasting External Supply (1)
  • Filling the GAP using the external labour market
  • Local
  • National
  • International
  • HR Planners must gain an understanding of the
    dynamics of the Labour Market to update plans as
    trends change and develop

15
Stage 3 Forecasting External Supply / Dynamics
of the Labour Market
  • The following statistics can be most useful
  • General population density
  • Population movements
  • Age distribution
  • Social class
  • Unemployment rates
  • School leavers
  • Proportion with higher education
  • Skill levels
  • Skills shortages
  • Sources of Info include Labour Market Trends,
    Labour Market Quarterly, Annual Social Trends
    survey, Chamber of Commerce, Training and
    Enterprise Councils

16
Stage 4 Formulating Responses to the
Forecasts/Action Planning
  • Forecasting should identify any potential
    mismatch between future demand and supply
  • If demand exceeds supply develop plans to match
    the shortfall
  • If supply is likely to exceed demand develop
    plans to reduce the surplus
  • (Taylor, 2002 Beardwell and Claydon, 2007)

17
Action Planning Alternative View point (Boella,
2000)
  • Outsourcing
  • Plans
  • Redundancy
  • Redeployment
  • Retirement
  • Recruitment
  • Training
  • Retention
  • Succession
  • Review
  • A plan will always need constant review E.g.
  • Extensions
  • External environmental factors
  • Turnover increases

18
Use of HR Planning in Practice
  • According to Rothwell, 1995 Flokowski, 1998 and
    Liff, 2000)
  • Systematic HR Planning is mainly restricted to
    large public sector organisations and firms
    operating in stable environments
  • Other organisations may use it in a casual way
    and may rely more on managerial judgement
  • (cited by Taylor, 2002)

19
The Case Against HR Planning
  • Based on the simple proposition that it is
    difficult to forecast demand and supply with any
    ACCURACY!
  • Forecasting relies on past experience to predict
    future developments
  • Forecasts are based on questionable assumptions
  • The future is uncertain for organisations!
  • (Taylor, 2002)

20
The Case for HR Planning
  • There are 2 main arguments for HRP
  • The need to view plans as adaptable
  • Plans should be continually updated in light of
    environmental developments
  • Turbulence requires more attention to planning
  • There is a greater need for organisations to
    develop their capacity to plan accurately
  • (Taylor, 2002 Beardwell and Claydon, 2007)

21
Adapting Traditional HR Planning
  • Many writers believe there is a need to adapt the
    traditional methods of HR planning to suit the
    needs of organisations operating in an
    unpredictable environment
  • Micro Planning
  • Contingency Planning
  • Succession Planning
  • Skills Planning
  • Soft HR Planning
  • (Taylor, 2002)

22
Summary
  • The term Manpower Planning (MP) has gradually
    been replaced by Human Resource Planning (HRP)
  • Concerned with looking ahead and using systematic
    techniques to assess the extent to which an
    organisation will be able to meet its
    requirements for labour in the future

23
References
  • Beardwell, J Claydon, T (2007), Human resource
    management a contemporary approach, 5th edition,
    London, Pearson Education
  • Boella, M.J (2000) Human Resource Management in
    the Hospitality Industry, 7th edition,
    Cheltenham, Nelson Thornes
  • Bramham, J. (1994) Human resource planning, 2nd
    edition, London, Institute of Personnel
    Development, 1994
  • Bratton, J Gold, J. (2003) Human resource
    management Theory and practice, 3rd edition,
    Basingstoke, Palgrave Macmillan.
  • Foot, M Hook, C. (2005) Introducing human
    resource management, 4th edition, Harlow, Pearson
    Education.
  • Taylor, S. (2002) People Resourcing, 3rd edition,
    London, Chartered Institute of Personnel and
    Development.

24
Revision Questions
  • What are the aims/objectives of HRP?
  • Outline the stages of HRP.
  • Highlight the case for and against HRP.
  • Outline alternative methods to the traditional
    approach to HRP
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