1. Differentiate between the internal labour supply techniques know as replacement charts and succession plans. Explain why the employer may prefer either strategy. 2. Suppose that you are the HR manager at a firm in which a hiring freeze has just been declared. The plan is to downsize through attrition. Define the meaning of attrition. What steps would you take to ensure that you reap the advantages of this strategy, while minimizing the disadvantages? Please, read the slide carefully and answer 2 questions.1. Differentiate between the internal labour supply techniques know as replacement charts
and succession plans. Explain why the employer may prefer either strategy.
2. Suppose that you are the HR manager at a firm in which a hiring freeze has just been
declared. The plan is to downsize through attrition. Define the meaning of attrition. What steps
would you take to ensure that you reap the advantages of this strategy, while minimizing the
disadvantages?
AGENDA
•
•
•
•
•
HR Planning Defined
Strategic Importance Of Planning
HR Planning Steps
Forecasting Supply & Demand
Balancing Supply & Demand
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STRATEGIC IMPORTANCE OF HRP
Human Resources Planning (HRP)
“The process of forecasting future human
resources requirements to ensure that the
organization will have the required number of
employees with the necessary skills to meet its
strategic objectives.”
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THINK PAIR SHARE
• What are the costs associated with inadequate
Human Resources Planning (HRP)?
• Have you ever worked in an organization with
inadequate HRP?
• If so, describe the experience.
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STRATEGIC IMPORTANCE OF HRP
Helps organization:
• Meet strategic goals and objectives
• Achieve economies in hiring new workers
• Make major market labour demands
successfully
• Anticipate and avoid shortages and surpluses
of human resources
• Control or reduce labour costs
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STRATEGIC IMPORTANCE OF HRP
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STRATEGIC IMPORTANCE OF HRP
The Relationship between HRP and Strategic
Planning
• An HR plan (HRP) does not occur independently of
the other departments within an organization
(such as finance, marketing, research and
development).
• The HRP must align with the overall goals of the
organization as well as both the long-term and
short-term strategic plans set by the organization.
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STRATEGIC IMPORTANCE OF HRP
The Importance of Environmental Scanning
External environmental factors monitored include:
• Economic conditions
• Market and competitive trends
• New or revised laws relating to HR
• Social concerns (health care, childcare, educational
priorities)
• Technological changes
• Demographic trends
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STEPS IN THE HRP PROCESS
Step 1:
Forecasting the
Availability of
Candidates
(Supply)
Step 2:
Forecasting Future
HR Needs
(Demand)
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Step 3: Gap
Analysis –
Summarizing HR
needs
Step 4: Planning
and Implementing
HR Programs to
Balance Supply
and Demand
FORECASTING THE AVAILABILITY OF
CANDIDATES
Internal
• present employees who can be trained,
transferred, or promoted to meet needs
External
• people in labour market not currently working
for organization, including those employed
elsewhere and those unemployed, who can be
expected to join the organization to meet needs
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FORECASTING SUPPLY OF INTERNAL
CANDIDATES
• skills inventories and management inventories
• replacement charts and replacement
summaries
• succession planning
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FORECASTING THE AVAILABILITY OF
CANDIDATES (SUPPLY)
Skills Inventories
• Summary of current employees’ education,
experience, interests, and skills
• Used to identify eligibility for transfer/promotion
Management Inventories
• Summary of management employees qualifications,
skills, interests, managerial responsibilities
• Used to identify eligibility for transfer/promotion
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FORECASTING THE AVAILABILITY OF
CANDIDATES (SUPPLY)
Replacement Charts
• Depiction of who will replace whom in the event of a
job opening
• Internal candidates age, present performance rating,
and promotability status are listed
Replacement Summaries
• Lists of likely replacements for each position
• Indicates relative strengths/weaknesses, current
position, performance, promotability, age, and
experience
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FORECASTING THE AVAILABILITY OF
CANDIDATES (SUPPLY)
Succession Planning
• Ensuring supply of successors for key jobs so that
careers can be effectively planned and managed
• Includes:
– Analysis of demand for managers and professionals
– Audit and projection of likely future supply
– Planning individual career paths, career counseling
– Accelerated promotions
– Planned strategic recruitment
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FORECASTING THE AVAILABILITY OF
CANDIDATES (SUPPLY)
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FORECASTING THE AVAILABILITY OF
CANDIDATES (SUPPLY)
Forecasting Supply of External Candidates
Market conditions assessed:
•
General economic conditions
– Interest rates, wage rates, inflation, unemployment rates
•
Labour market conditions
– Demographics: education levels, age, gender, marital
status
•
Occupational market conditions
– Relevant occupations (as applicable): e.g. Engineers, skilled
labour, accountants, etc.
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FORECASTING FUTURE HUMAN
RESOURCES NEEDS (DEMAND)
Factors that should be considered:
• projected turnover
• quality and nature of employees
• decisions to upgrade
• planned technological and
administrative changes
• financial resources
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FORECASTING FUTURE HUMAN
RESOURCES NEEDS (DEMAND)
Trend Analysis
• predict future needs based on past employment levels
Ratio Analysis
• ratio of business activity and number of employees needed, e.g.
sales revenue per salesperson
Scatter Plot
• used to determine whether two factors (business activity and
staffing levels) are related
Regression Analysis
• examines the statistical relationship between business activity
and employees
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BALANCE SUPPLY AND DEMAND
Staffing Table
• A pictorial representation of all jobs within the
organization, along with the number of current
incumbents and future employment
requirements (monthly or yearly) for each
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STAFFING TABLE
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BALANCE SUPPLY AND DEMAND
Labour Surplus
• The internal supply of employees exceeds the
organization’s forecasted demand
Labour Shortage
• The internal supply of human resources cannot
meet the organization’s needs
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BALANCE SUPPLY AND DEMAND
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BALANCE SUPPLY AND DEMAND
Responding to a labour surplus
• Hiring freeze/attrition
• Early retirement buyout programs
• Job sharing
• Work sharing
• Reduced workweek
• Layoff
• Termination
• Leave of absence
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BALANCE SUPPLY AND DEMAND
Considerations:
• Survivor syndrome
• Supplemental unemployment benefits
• Severance package
• Pay
• Benefits
• Golden parachute
• Outplacement assistance
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BALANCE SUPPLY AND DEMAND
Responding to a Labour Shortage
Internal solutions:
– transfer
– promotion
External solutions:
– recruiting
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BALANCE SUPPLY AND DEMAND
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