Human Resource Management

(Lecture 5)

BSc. (Hons.) Applied Management(2008-10)

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Human Resource Planning (HRP)

Lecture outline:

1. The Integrated HR System – HRP2. HRP vs. Job Analysis3. Consequences of Poor HRP4. HRP Techniques

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HR strategy and policies

The Integrated HR System

Job analysis

Recruitment

Organisational vision, mission, objectives and strategy

Employee selection

Performance management

Training and development

Remuneration and other rewards

Discipline and termination

Human resource planning

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“The crux of human resource planning is neither a particular set of techniques nor their relative sophistication, but the capacity to help managers anticipate and meet changing needs relating to the acquisition, deployment, and utilization of people.” (Walker, 1980, p.10)

1. Human Resource Planning (HRP)

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2. HRP vs. Job Analysis HRP tells us:• how many people we need to do the work • where they are needed and when• where the necessary people might be found• how the above might change as a result of

events internal and external to a firmJob Analysis tells us:• what work needs to be done (tasks and duties) • what sort of people we need to do the work

(Key Skills & Abilities (KSAs) or competencies)

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HRP is a process of…• analysing a firm’s needs for human

resources (where and when)

• sizing the firm in terms of the numbers of employees required to get the work done (how many)

• planning the HR actions necessary to meet the firm’s needs

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Job analysis involves…• an analysis of the external environment in which a

firm operates

• gaining a clear understanding of the strategy and associated plans by which managers seek to achieve a firm’s objectives

• an analysis of the internal environment of the firm

• input from the job analysis process on the nature of the tasks/work to be done and the

KSAs/competencies needed to perform these tasks

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3. Consequences of Poor HRP i. Overstaffing • Reduced labour efficiency due to increased

labour costs • Poorer productivity as a result of too many

employees with too little work to do • Increased inventory levels due to over

production • Need for downsizing

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2. Under-staffing• Skills shortages• Increased lost opportunity costs• Poorer service or product quality• Missed deadlines and targets• Increased labour costs due to overtime• Role overload leading to increased staff stress,

higher employee turnover and poor morale

3. Consequences of Poor HRP (cont’d)

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4. HRP Techniques

• There is no ‘one-best-way’ of carrying out HRP

• It should be an ongoing activity rather than a one-off annual or episodic event

• There’s less emphasis now on ‘The Plan’ and HRP is less formal than in the past

• HRIS is also now much more important to the HRP process

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A normative HRP process Operations and HR issues analysis

Labour forecasting

Internal labour demand Labour supply analysis

Gap analysis

Policy and development planning

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A) HR Issues Analysis

• Analyse the internal and external context of the firm for HR implications

• For each implication, identify HR practices and policies for review (recruitment, training, etc)

• From this review, identify HR action areas to operationalise the strategy

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(How many people, of what type, where & when)

Use one or more of:• Line/operational manager expectations• Upcoming strategic initiatives • Absenteeism levels • Overtime monitoring• Employee turnover • Quantitative projection techniques• Reported intentions to leave• Exit Interviews

B) Labour Demand Forecasting

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Based on:• the geographical distribution of labour • regional unemployment levels• regional and projected numbers of new

entrants to the labour market• labour market participation rates • the numbers and educational levels of school

leavers and tertiary education graduates• going pay rates of competitors• migration data

C) External Labour Supply Evaluation

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D) The Internal Labour Supply• Draw up a ‘staffing chart’/’replacement chart’ - jobs,

number of incumbents in each job (positions), vacancies, anticipated vacancies

• Profile each employee - tenure, work experience, qualifications, training history, performance review outcomes, career path, mobility, etc

• Develop succession plans• Develop a skills inventory for each employee (KSAs,

competencies held)