Human Resource Planning Chapter 5

Developing Talent at Proctor and Gamble

Hiring at the entry level and developing and promoting its manages and executives from

within.

Human Resource Planning

Component of HRM strategy

It is a proactive process

All other functional HR activities flow from human

resource planning process

Human resource planning process

should be flexible

Objective of Human Resource Planning

Prevent overstaffing and understaffing

Ensures the organization has the right employee with the right skills in the right place at the right time Ensures that the organization is responsive to changes in its environment Provides direction and coherence to all HR activities and system

Unite the perspectives of line and staff managers

aggregate

succession

planning

Types of Planning

Aggregate Planning Forecasting the demand of employees •  Multiple regression •  Linear programming •  Judgement of experienced

managers

Aggregate Planning

•  Bottom up planning (Unit Forecasting)

•  Top down planning •  combination

Aggregate Planning

Bottom Up Planning (Unit Forecasting) •  each individual unit, department, branch

estimates its future needs for employee •  Responsive to the need of the market

place because it estimates need t the point of contact

Aggregate Planning

Top down planning •  Involves senior allocating

budgeted amount for employee payroll expenditure

•  Promotes organizational efficiency in resource allocation

Succession Planning

Identifying key management positions that the organization can not afford to have vacant.

Succession Planning

Purpose 1. facilitate transition when an employee leaves

2. identifies the development needs of high potential employees and assist with their career planning.

Succession Planning Criticism: Their timing often does not remain in synch with ongoing and evolving business need resulting in constant shortages or surpluses.

Sample Replacement Chart

J Smith ( Vice President for Marketing)

R Jones (Sales Director) Ready

Now

C Williams (Promotions

Manager) 15 months

S Anderson (Dir. Of

Marketing) 1 year

Guidelines for Effective Succession

Planning •  Tie into organizations strategy •  Monitor the progress and measure

outcome •  Ensure that all HR functions that impact

the succession plan are iterated and working

•  Ensure the centralized coordination •  Engage and involve managers

throughout the organization

Pros and Cons of Disclosing Succession Planning

High performance may

leave the organization,

unsure of their future

Allows flexibility as business need

change

Unrealistic expectations and implied contracts

Retention strategy

Disadvantage Advantage

Do not tell

Tell

Mentoring

•  Often used in succession planning tool.

•  Mentoring programs may be formal and informal

•  Mentoring should be holistic in nature and consider the needs of the individual being mentored.

Model of an Effective Mentoring

Mentoring Program (specific

assignment goals and measures)

Background of mentor (skills, experience,

understanding, motivation)

Needs of mentees

(personal, professional)

Needs of the organization (strategy, skill gaps, diversity)

Diverse Succession Planning Practices and

Competencies

Strategic implications of

effective diverse succession planning

and strategic integration

Business strategy

leadership

Planning practices

Development practices

Suggestions for Diverse Succession Planning

Strategic Integration

• Obtain alignment between business strategy and diverse succession planning

•  Frame programs with emphasis on developing high potentials

Leadership •  Establish a value basis for diverse succession • Obtain commitment of top executives to

personally mentor diverse successor

Planning Process

•  Identify behavioural competencies for the future while recognizing that these may change

• Disseminate descriptions of specific behavioural competencies required for top position

Suggestions for Diverse Succession Planning

Development Practices

•  Development behavioural competencies for training, development planning, and evaluation

•  Focus on the advantages of same race/ gender or cross race/gender mentorship

Program Management

Practices

•  Monitor flows of diverse successors into core areas as opposed to periphery functions

•  Identify effective mentors and leverage their skills