Module 2 HR Planning

MODULE 2
Human
Resource
Planning
HUMAN RESOURCE PLANNING
A process in which an organization attempts to
estimate its demands for labor and to evaluate the
size, nature and sources of the supply that will be
required to meet the demand
Intention to identify areas for action resulting from the analysis
Examples:
Developmental planning for strategic leadership succession planning
Assess strategic alternatives
Forecast availability of employees with certain critical skills
Contributions to HRM developing HR, avoiding shortages, information for
decisions,, budgeting, strategic salary planning compatibility with
organizational goals and strategies
HR PLANNING PROCESS
External Environment
Internal Environment
Strategic Planning
Human Resource Planning
Forecasting Comparing Forecasting Human

Human Resource Requirements and Resource Availability
Requirements Availability
Demand = Supply Surplus of Workers Shortage of Workers
No Action Restricted Hiring, Recruitment

Reduced Hours, Early
Retirement, Layoff,
Downsizing Selection
HR Forecasting Techniques
Judgmental Methods:
Bottom-up approach
Top-down forecasting
Mathematical models :
Multiple regression
Productivity ratios
Staffing ratios.
FORECASTING HR REQUIREMENTS
Estimate of numbers and kinds of employees the

organization will need at future dates
Demand for firms goods or services must be
forecast
Forecast is then converted into people
requirements
FORECASTING HR AVAILABILITY
Determining whether the firm will be able to

secure employees with the necessary skills,
and from what sources these individuals may
be obtained
Show whether the needed employees may be
obtained from within the company, from
outside the organization, or from a
combination of the two sources
SHORTAGE OF EMPLOYEES
Recruitment
Incentives for retirement postponement
Rehire retired employees
Try to reduce turnover
Overtime
Subcontract
Temporary staff
Re-engineering
SURPLUS OF EMPLOYEES
Restricted hiring
Reduced hours
Early retirement
Transfer
Use slack time for
training or equipment
maintenance
Layoffs
STRATEGIC HUMAN RESOURCE INFORMATION
Any information that enable HR strategists

to understand better
The contribution of HR strategy to the overall
business strategy (how the effective use of HR
can give us CA)
The impact of business strategy on HR (what
the strategy means in terms of the type of HR
needed)
The Managerial Pyramid
Time Frame Typical responsibility
HR Director/Division
2-5-10 years Strategic Or function director
HR manager/senior
Tactical/
1 mth-1 year Personnel officer/
Decision support Senior line manager
Day to day
Operational/ HR officer/ HR
Administrative Assistant Line
Manager
INFORMATION SYSTEM FOR HR
IS an interrelated set of procedures and

processes to provide information for
decisions
HRIS IS especially developed for HRM
REPOSITORIES OF INFORMATION
3 major types
Employees
Technologies used ways of doing work which is
continually improved
Subsidiary information storage devices include
computer, paper files & data bases
Differ in types of info stored, capacity to serve as

active & passive stores of info, & in cost of storing &
updating info.
HUMAN RESOURCE INFORMATION SYSTEM
Goal: Integrate Core Processes into Seamless System
Input Data Types Output Data Uses* Contribute Toward Achievement of:
Job Analysis Employee Tracking
Recruitment Diversity Programs
Selection/Job Posting/ Hiring Decisions Organizational
Employee Referral Strategic Plans
Training Programs/E-
T&D learning/Management
Human Succession
Performance Appraisal
Resource Compensation Programs
Compensation Information
System Benefit Programs (e.g.,
Benefits
prescription drug programs)
Human
Safety
Health Programs (e.g., Resource
Health Employee Assistance Management
Programs) Plans
Labor Relations
Bargaining Strategies
Employee Relations
Employee Services
*Certain data are available to employees at work or at home. Examples: supervisors might
access just-in-time training for conducting performance appraisal reviews. Operative employees
might enter time and labor data. All employees may be able to review leave balances, transfer
funds, make benefit elections, set annual performance goals, update personnel data.
COMPUTER-AIDED MANAGEMENT
Degree of structure of tasks performed determine

the system to be used:
Transaction processing system

Highly
structured tasks
example: handling hourly payroll
MIS
Moderately structured tasks
Example: prepare reports about trends in overtime
Decision support system:
Unstructured tasks
Example: planning to ensure balance of overtime costs &
hiring temporary workers
MANAGING A HRIS FOR HR PLANNING
A) Determining information needs
Information provided must support planning
Information needed to determine future & to evaluate
current status
Strategic planning information on the environment
Tactical & Business level information about the
organization: structure, culture & budgetary process
Operational planning information on movement of
employees & key persons and systems that support
movements
Information base can be modified and improved upon as
planning evolves
B) Choosing Repositories
Combination of repositories that allow storage & retrieval of
the most useful information in a cost-efficient manner
A technology can be a very efficient repository for
information to be used for a specific purpose. Example:
How to carry out planning
Tracking & planning for management of HR flows
Use of outside repositories
Using information in storage devices of other
organizations
Hiring consultants for short-term work
C) Promoting effectiveness
Information delivered - timely, current, accurate, reliable,
& relevant

Module 2 HR Planning

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MODULE 2

Intention to identify areas for action resulting from the analysis

Human Resource Planning

Forecasting Comparing Forecasting Human

Demand = Supply Surplus of Workers Shortage of Workers

No Action Restricted Hiring, Recruitment

Estimate of numbers and kinds of employees the

Determining whether the firm will be able to

Any information that enable HR strategists

Time Frame Typical responsibility

IS an interrelated set of procedures and

Differ in types of info stored, capacity to serve as

Degree of structure of tasks performed determine

Transaction processing system

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