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HUMAN RESOURCE PLANNING PROCESS

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The process of analyzing an organization's human resource needs. ... HUMAN RESOURCE PLANNING. REQUIREMENTS ... Jobs. REQUIREMENTS & AVAILABILITY COMPARISON ... – PowerPoint PPT presentation

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Title: HUMAN RESOURCE PLANNING PROCESS


1
HUMAN RESOURCE PLANNING PROCESS
2
DEFINITION OF HR PLANNING
  • The process of analyzing an organizations human
    resource needs.
  • A systematic process for setting policies
  • governing the acquisition, use, and
    disposition of personnel.
  • 3. The process of systematically reviewing human
    resource requirements to ensure
  • right skills are available.

3
Strategic Business Planning HR Planning
  • Strategic business planning enables the
    organization to set goals and objectives and
    courses of action to fulfill its mission and
    strategic directions.
  • The organizations human resource needs must be
    integrated into the organizations strategic
    business plan.

4
THE HUMAN RESOURCE PLANNING SYSTEM
NORMAL
ATTRITION
STRATEGIC BUSINESS PLANNING
CREATION OF NEW JOBS
HUMAN RESOURCE PLANNING
INCREASES IIN POSITION
REQUIREMENTS FORECAST
ELIMINATION OF EXISTING JOBS
DECREASES IN
POSITIONS
NO CHANGES IN JOBS
PRO FORMA ORGANIZATION STRUCTURE
EXTERNAL
AVAILABILITY FORECAST
INTERNAL
COMPARISON OF REQUIREMENTS AND AVAILABILITY
DEMANDltSUPPLY
DEMAND SUPPLY
DEMAND gtSUPPLY
REDUCE SUPPLY
INCREASE SUPPLY
NO ACTION
5
REQUIREMENTS FORECASTING
  • Subjective Techniques
  • Managerial Estimates
  • Zero Base Forecasting
  • Quantitative Techniques
  • Correlation and Regression Analysis
  • Simulations
  • Manipulation of models with key features and
  • variables (usually technology driven).

6
The Pro Forma Organization Structure
  • Development of structure(s) that reflect
  • the organizations future form.
  • The elements include
  • HR Needs
  • Functions
  • Departments
  • Units
  • Jobs

7
REQUIREMENTS AVAILABILITY COMPARISON
  • Formulation of action oriented steps aimed at
    balancing the number and kind of employees needed
    and the number and kind available.
  • Examines Demand vs. Supply

8
Forecasting Personnel Needs
  • Consider
  • Demand for product or service
  • Staffing required to achieve projected output
  • Projected turnover
  • Quality Skills of employees
  • Decisions to upgrade product/services/new markets
  • Technological other changes
  • Increased productivity
  • Financial resources

9
AVAILABILITY FORECASTING
  • Need to examine
  • Internal Sources
  • External Sources

10
Forecasting Supply of Internal Candidates
  • Skills Inventories
  • Managerial Inventories
  • Manual Systems Replacement Charts
  • -Personnel replacement charts
  • -Position replacement card.
  • Computerised information systems
  • On-going training and development programmes

11
Forecasting Supply of External Candidates
  • Involves many activities
  • Knowledge of general economic conditions
  • Population changes and shifts
  • Societal attitudes towards careers, industries,
    institutions
  • Political conditions
  • Government regulations
  • The expected unemployment rate
  • The availability of potential job candidates in
    specific occupations
  • Technological changes
  • Knowledge of Sources

12
REQUIREMENTS AVAILABILITY COMPARISON
  • Staffing Conditions/Situations which require
    specific actions
  • Demand Equals Supply
  • Demand is Less Than Supply
  • Demand is Greater Than Supply

13
Product Demand
External Labour market
Internal Labour market
Labour productivity
Labour demand Labour
Supply
Conditions and Select Responses
  • 3. Labour Demand Equals Labour Supply
  • No replacements of quits from inside or outside
  • No recruiting
  • No early retirements
  • No additional training
  • Do internal transfers and redeployment

14
Product Demand
External Labour market
Internal Labour market
Labour productivity
Labour demand Labour
Supply
Conditions and Select Responses
  • 2. Labour demand is less than available supply
  • Pay Cuts
  • Reduced Hours
  • Work Sharing
  • Voluntary early retirement
  • Inducements to quit(severance pay)
  • Layoffs

15
Product Demand
External Labour market
Internal Labour market
Labour productivity
Labour demand Labour
Supply
Conditions and Select Responses
  • Labour Demand Exceeds Labour Supply
  • Training/ retraining
  • Succession Planning
  • Promotion from within
  • External recruitment
  • Subcontracting
  • Partime/temporary workers
  • Creative recruiting
  • Compensation incentives
  • Training programs
  • Different selection standards
  • Overtime work
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