chapter05-human resource planning

8/9/2019 Chapter05-Human Resource Planning

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Human ResourcePlanning and Alignment

McGraw-Hill/IrwinHuman Resource Management,10/e 2007 The McGraw-Hill Comanies, Inc! "ll rights reser#e$!


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Introduction

Success in business is dependent on:Reacting quickly to opportunities

Rapid access to accurate information

Human resource planning (HR planning):How organizations assess the future supply of, and

demand for, human resources

Provides mechanisms to eliminate gaps that may exist

between supply and demand

Requires readjustment as labor market conditions

change


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Introduction

If effective utilization of human resources is not asignificant goal for the organization:

mployment planning is likely to be informal and

slipshod

If top management values stable growth:

HR planning will be less important than if the goals

include rapid expansion or diversification


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Introduction

HR related government policies and regulations:qual opportunity and promotion call for more HR

planning for women and minorities

!he age of mandatory retirement is being raised

"rganizations are encouraged to hire veterans and the

disabled


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Introduction

The types of people employed and the tass theyperform determine the ind of planning necessary

HR planning is critical for implementation of the

organization#s strategic plan

HR policies have direct effects on profitability

Strategic human resource management (SHR!)

means acknowledging that HR policies$practices have

critical links to an organization#s overall strategy


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The HR Planning Process

The four phases or stages of HR planning:%ituation analysis or

environmental scanning

&orecasting demand

'nalysis of the supply

(evelopment of action plans


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Situation Analysis & Environmental Scanning

The first stage of HR planning is the point at whichHR! and strategic planning first interact

!he strategic plan must adapt to environmental

circumstances

HR) is one of the primary mechanisms anorganization can use during the adaptation process

"ithout a plan to support recruitment and selection#

it is impossible to stay competitive!he problems associated with changing environments

are greater today than ever before

%uccess now depends on being a *global scanner+


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Forecasting Demand for Employees

This phase of the process involves estimating:How manyemployees will be needed

What kindsof employees will be needed

$uantitative tools can help with forecasting# but itinvolves a great deal of human %udgment

!he demand for employees is closely tied to the

strategic direction that the organization has chosen

rowth

Reengineering

Reorganization


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Forecasting Demand for Employees

Techni&ues to help reduce the uncertainty inherentin HR planning:

xpert estimates

!rend projections

%tatistical modeling

-nit.demand forecasting

'ey to effective planning is accurately and freely

sharing information


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The Epert Estimate

ne or more e*perts+ provide the organizationwith demand estimates based on:

xperience

uesses

/ntuition

%ubjective assessments of

available economic and

labor force indicators!his is the least mathematically sophisticated approach


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The Epert Estimate

The ,elphi techni&ueelicits e*pert estimates from a

number of individuals in an iterative manner

(eveloped by the Rand 0orporation

stimates are revised by each individual based on

knowledge of the other individuals# estimates

"ith the nominal group techni&ue (-.T)#

individual estimates are followed by group

brainstorming!he goal is to generate a group decision that is

preferred over any individual decision


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Trend Pro!ection

This top/down techni&ue:

(evelops a forecast based on a past

relationship between a factor related

to employment and employmentitself

xample1 %ales levels are related to

employment needs


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"odeling & "ultiple#Predictive Techni$ues

This top/down approach uses the most sophisticated

forecasting and modeling techni&ues

!rend projections relate a single factor, such as sales,

to employment

nvironmental factors could be gross nationalproduct or discretionary income

"r, the organization may be mathematically modeled

so that simulations can be run


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"odeling & "ultiple#Predictive Techni$ues

Regression analysis is a mathematical procedure:

/t predicts the dependent variableon the basis of

factors 2independent variables3

"ith simple linear regression# one dependent and

one independent variable are studied

4ith multiple regression, more than one independent

variable is studied


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%nit Demand Forecasting

This is a bottom/up approach

-nit managers analyze current and

future needs person.by.person

and job.by.job

Headquarters totals the unit forecasts

!he sum is the corporate employment forecast

If both bottom/up and top/down approaches are

used# the forecasts may conflict!his can be resolved by averaging the variances

!he (elphi technique or 5! could also be used

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Analying the 'urrent Supply of Employees

This phase of HR planning should answer the

&uestion:

*How many and what kinds of employees do /

currently have, in terms of the skills and training

necessary for the future6+

This involves more than simply counting current

employees

!he smaller and more centralized the organization,the easier it is to conduct a skills inventory

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The S(ills Inventory

0oth a sills inventoryand a management

inventory:

/dentify the skills, abilities, experiences, and training

employees currently have

're useful for career planning, managementdevelopment, and related activities

In its simplest form# a sills inventory is a list of:

5ames0haracteristics

%kills

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The S(ills Inventory

Sills inventories vary greatly in their sophistication

%ome are as simple as a file drawer of index cards

"thers involve expensive and complex computer

databases

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'ontents of the S(ills Inventory

The only data available to the organization for later

use is what was designed into the system

)ame Employee num*er

Present location Date of *irth

Date of employment +o* classification

S(ills, (no-ledge, education Foreign language s(ill

Professional $ualifications Pu*lications.icenses and patents Ho**ies

Supervisory evaluations Salary range

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'ontents of the S(ills Inventory

ften omitted# but increasingly important# are:

mployees# stated career goals

eographical preferences

/ntended retirement date

The main categories within a sills inventory:

(ata summarizing the employee#s past

(ata summarizing present skills(ata that focus on the future

Today# many sills inventories are more comple*

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"aintaining the S(ills Inventory

The two principal methods for gathering data:

the interviewand the questionnaire

!he questionnaire is faster and cheaper, but can be

inaccurate

%ome contend that a trained interviewer can completequestionnaires more quickly and accurately

1lans for eeping files updated must be made

!he more often changes are made and the data isused, the more often updates should be performed

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"aintaining the S(ills Inventory

Should data be stored in a manual system or

on a computer2

How much does the computer system cost6

How frequently the data will be used6

' computer allows comparative analysis over time

Sills inventories are useful only if management

uses the data to mae significant decisions

7efore accessing the data, managers must be trained

to avoid abuse of the system

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Action Decisions in HR Planning

3fter the supply of and demand for worers has

been analyzed# the two forecasts must be compared

4henever there is a gap between the two estimates, acourse of action must be chosen

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If the supply of worers is less than the demand:

/t can be filled with present employees who are

willing to work overtime

If there is a shortage of silled employees:

!rain and$or promote present employees

Recruit less.skilled employees

Recall employees who were previously laid off

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rganizations are using more:

Part.time workers

%ubcontractors

/ndependent professionals

This is in response to:

/ntense global competition

Rapid technological change

&ears caused by recent workforce reductions

ver 4 million 56S6 citizens are contingent worers

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1ossible solutions to an employee surplus:

'ttrition

arly retirements

(emotions

8ayoffs

!erminations

7mployees who are considered surplus are seldom

responsible for the conditions leading to the surplus

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!ost organizations avoid layoffs by using attrition#

early retirement# creation of wor# and so on

'ttrition can be accelerated by encouraging

employees to leave early

,rawbacs to losing worers over the age of 48:

!hey tend to be healthier than younger workers

!hey have fewer work.related injuries

!hey are less likely to change jobs

!hey take critical skills and experience with them

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0y 988# the median age of the56S6 worforce will be ;86< years

"ver half the workforce will be

protected by the 'ge (iscrimination

in mployment 'ct

1romises should not be made that can=t be ept

"nce promised, it may be illegal to change them

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If voluntary reductions don=t eliminate the gap

between supply and demand# layoffs may be

necessary

0orporations too frequently and quickly turn to

layoffs!hey fail to consider the consequences

'bout one.third lay off too many workers

Poorly designed workforce reductions can kill morale

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Human Resource Information Systems

Information is the ey to successful HR planning

' human resource information system 2HR/%3 is an

integrated way to acquire,store, analyze,

and controlinformation flow through an organization

3 highly developed HRIS can increase the efficiency

and response times of:

!racking applicants

%kills inventory0areer planning

mployee service programs

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>omputer technology maes it possible to integrate

multiple HR needs into a single system:

nrolling in benefits programs

Processing employee transactions 2pay increases3

-sing learning modules

3n HRIS developed for use by upper/level e*ecutives

is called an e*ecutive information system (7ISs)

0omputerized HR/%s have allowed organizations to

broaden their view of succession planning

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?actors that mae succession planning for e*ecutive

level positions more important than ever:

8arge numbers of aging executives

/ncreasingly popular early retirement

&ortune 9:: companies anticipate ;; percent turnover

among their executives over the next five years

!any companies now realize the critical need for

a comprehensive retention plan!his plan may include consulting and part.time

assignments

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Employee Privacy, Identity Theft, & HRIS

HRIS maes it easier to invade employee privacy

(anger lies both within and outside the organization

!he friendlier the system, the easier it can be for

unauthorized access

Identity theft occurs when:

%omeone uses another#s name, address, social

security number, or other information1

4ithout the person#s knowledge

4ith the intent to commit fraud or other crimes

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Safeguards to minimize privacy riss in an HRIS:

(etermine the best way to collect data

8imit the information collected to what is relevant

!ell employees what information is kept on file and

how it is used

8et employees inspect and correct their information


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rganizations should carefully evaluate their

policies regarding access to HRIS data to determine:

How much information, legally

and ethically, should be disclosed

How much control employeesshould have over the release of

personal information

-o federal legislation guarantees employees the rightto inspect and amend data in an HRIS

The greatest

threat to privacy is

-hen employees

don/t retain the

right to authorie

the release

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