HRM Lecture 2 Notes
HRM Lecture 2 Notes
HRM Lecture 2 Notes
HUMAN RESOURCE
PLANNING
Definition of HR Planning
It is the process of assessing the
future supply of and demand for
human resources
It also provides mechanisms to
eliminate any gaps that may exist
between supply and demand
It is a process of determining what
positions in the firm will have to be
filled and when.
Definition of HR Planning
contd
Thus, HR planning determines the
number and types of employees to
be
recruited into the erpamsation-oc
phased out of it
Process of HR planning
Review your current organizational
strategic
plan
Review the current human resources
situation
Forecast on the future HR needs (supply
and
demands)
Planning on meeting HR needs
Implement the plan - recruit, select,
training,
Forecasting Demand
How many?, at what levels? and
when?
The demand is closely tied to the
strategic
direction that the organization has
decided to take. Are we engaged in
reengineering that we shrink the
workforce in the coming years
Forecasting demand
(cont)
Consider:
major customer requirements and hence forecast
on revenue and seasonal fluctuations
Projected staff turnover ( as a result of resignation
or termination or retirement)
Strategic decisions to upgrade the quality of
products or services or enter new markets
Technological and other changes resulting in
increased productivity
Financial resources available to you
Staff movements and transfers
Techniques of forecasting
demand
Experts estimates
Trend Projections
Statistical modeling
Unit demand forecasting
All these require close collaboration
between HR department and line
management
Experts Estimates
Expert(s) provide the organization with demand
estimates based on experience, guesses,
intuition,
and subjective assessment of available economic
and labour force indicators
.
This can be done an individual providing
estimates,
which are then revised based on estimates of
other
individuals estimates. This is called Delphi
technique
Or individuals develop estimates, followed by a
group
brainstorming sessions in the hope of generating
one
Trend projections
This involves developing a forecast
based on past relationship between a
factor related to employment and
employment itself
E.g .. for many businesses, sales
levels
are related to employment needs.
The
planner can develop a table showing
past relationship between sales and
employment
Forecasting supply
Internal supply
The main task is to determining which current
employees might be qualified for the projected
openings
This determines how many, and what kind of
employees are currently available. in terms of
skills and
training necessary for the future.
The major tool used to assess the current supply
of
employees is the skills inventory
In some organizations, there will be a separate
inventory just for managers called a management
inventory
Contents of a skills
inventory
Once a decision has been made to
create a skills inventory, the HR
manager must determine what
information will be contained in the
system.
The only data available to the
organization for late use will be whatever
has been designed into the system
Components of a skills
inventory
Components of a skills inventory are
therefore as follows:
1. Data summarizing the employeespast
2. Data summarizing status of present
skills
3. Data that focus on the future
Action decisions in HR
planning
After HR planning system has analyzed
both
the supply and demand for future workers,
these two forecasts are compared to
determine what if any actions should be
taken.
Whenever there is a discrepancy between
the
two estimates, organizations need to
choose a
course of action to eliminate the gaps