human resource how do hr plan resource needs and sourcing?

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HUMAN RESOURCE HUMAN RESOURCE How do HR plan How do HR plan resource needs resource needs and sourcing? and sourcing? Freely Inspired from Bratton J., Gold J., Human Resource Freely Inspired from Bratton J., Gold J., Human Resource Management, Theory and Practice, Palgrave, 2003 Management, Theory and Practice, Palgrave, 2003 http://www.palgrave.com/business/brattonandgold/ Edited by Fabio Emanuele Noia, Link Campus University of Edited by Fabio Emanuele Noia, Link Campus University of Malta, 2006 Malta, 2006 Chapter 6 Chapter 6 Human Resource Planning Human Resource Planning

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HUMAN RESOURCE How do HR plan resource needs and sourcing?. Edited by Fabio Emanuele Noia, Link Campus University of Malta, 2006. Chapter 6 Human Resource Planning. - PowerPoint PPT Presentation

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Page 1: HUMAN RESOURCE How do HR plan resource needs and sourcing?

HUMAN RESOURCEHUMAN RESOURCE

How do HR plan How do HR plan resource needs and resource needs and

sourcing?sourcing?

Freely Inspired from Bratton J., Gold J., Human Resource Management, Freely Inspired from Bratton J., Gold J., Human Resource Management, Theory and Practice, Palgrave, 2003 Theory and Practice, Palgrave, 2003 http://www.palgrave.com/business/brattonandgold/

Edited by Fabio Emanuele Noia, Link Campus University of Malta, 2006Edited by Fabio Emanuele Noia, Link Campus University of Malta, 2006

Chapter 6 Chapter 6

Human Resource PlanningHuman Resource Planning

Page 2: HUMAN RESOURCE How do HR plan resource needs and sourcing?

HR PlanningHR Planning________________________

The process of The process of systematically systematically

forecasting the future forecasting the future demand and supply for demand and supply for

employees and the employees and the deployment of their deployment of their

skills within the skills within the strategic objectives of strategic objectives of

the organisation.the organisation.

Freely Inspired from Bratton J., Gold J., Human Resource Management, Freely Inspired from Bratton J., Gold J., Human Resource Management, Theory and Practice, Palgrave, 2003Theory and Practice, Palgrave, 2003

Page 3: HUMAN RESOURCE How do HR plan resource needs and sourcing?

Manpower planningManpower planning________________________

Linear processLinear processdealing with numbers (heads):dealing with numbers (heads):

1. evaluation of existing 1. evaluation of existing resourcesresources

2. Estimation of proportion likely 2. Estimation of proportion likely to be within the firm by the to be within the firm by the

forecast dateforecast date3. Assessment of labor 3. Assessment of labor

requirements needed to meet requirements needed to meet objectivesobjectives

4. Measures to ensure necessary 4. Measures to ensure necessary resources are avilable when resources are avilable when

requiredrequired

Freely Inspired from Bratton J., Gold J., Human Resource Management, Freely Inspired from Bratton J., Gold J., Human Resource Management, Theory and Practice, Palgrave, 2003Theory and Practice, Palgrave, 2003

Page 4: HUMAN RESOURCE How do HR plan resource needs and sourcing?

Manpower planningManpower planning________________________

Demand work – analysing, Demand work – analysing, reviewing, and attempting to predict reviewing, and attempting to predict the numbers, by kind, of manpower the numbers, by kind, of manpower

needed to achieve objectives.needed to achieve objectives.

Supply work – attempting to predict Supply work – attempting to predict what action was and would be what action was and would be necessary to ensure that the necessary to ensure that the

manpower needed is available when manpower needed is available when requiredrequired

Designing the interaction between Designing the interaction between demand and supply so that skills demand and supply so that skills are utilized to the best possible are utilized to the best possible

advantage and the legitimate advantage and the legitimate aspirations of the individual are aspirations of the individual are

taken into acconttaken into accont

Smith (1980)Smith (1980)Freely Inspired from Bratton J., Gold J., Human Resource Management, Freely Inspired from Bratton J., Gold J., Human Resource Management, Theory and Practice, Palgrave, 2003Theory and Practice, Palgrave, 2003

Page 5: HUMAN RESOURCE How do HR plan resource needs and sourcing?

Manpower planningManpower planning________________________

Organizational strategy ad targetsOrganizational strategy ad targets

Organization practice and methodsOrganization practice and methods

Manpower review and analysisManpower review and analysisInternal ExternalInternal External

ForecastForecast

Demand SupplyDemand Supply

Adjust to BalanceAdjust to Balance

Recruit Retrain ReduceRecruit Retrain Reduce

Freely Inspired from Bratton J., Gold J., Human Resource Management, Freely Inspired from Bratton J., Gold J., Human Resource Management, Theory and Practice, Palgrave, 2003Theory and Practice, Palgrave, 2003

Page 6: HUMAN RESOURCE How do HR plan resource needs and sourcing?

Manpower measurement Manpower measurement ToolboxToolbox

________________________

TurnoverTurnover

RetentionRetention

StabilityStability

AbsenteeismAbsenteeism__________________________________

Computerized Personnel Computerized Personnel Information Systems (CPISs)Information Systems (CPISs)www.acas.org.uk/publications

/pub_ab__absenceturnover.html

www.softwaresource.co.uk

Freely Inspired from Bratton J., Gold J., Human Resource Management, Freely Inspired from Bratton J., Gold J., Human Resource Management, Theory and Practice, Palgrave, 2003Theory and Practice, Palgrave, 2003

Page 7: HUMAN RESOURCE How do HR plan resource needs and sourcing?

Manpower planningManpower planning________________________

Diagnostic approach Diagnostic approach include include monitoring and analysis in monitoring and analysis in the attempt to understand the attempt to understand

causes and plan accordingly.causes and plan accordingly.__________________________________

The most probable real-life The most probable real-life situation is one of continuous situation is one of continuous imbalance between demand imbalance between demand and supply, as a result of the and supply, as a result of the

dynamic conditions facing dynamic conditions facing any organization, the any organization, the

behavior of people and the behavior of people and the imperfections of manpower imperfections of manpower

models.models.

Freely Inspired from Bratton J., Gold J., Human Resource Management, Freely Inspired from Bratton J., Gold J., Human Resource Management, Theory and Practice, Palgrave, 2003Theory and Practice, Palgrave, 2003

Page 8: HUMAN RESOURCE How do HR plan resource needs and sourcing?

Reasons for High Staff Reasons for High Staff TurnoverTurnover

________________________

Job not matching new Job not matching new employees expectationsemployees expectations

Lack of attention from line Lack of attention from line managers and a lack of trainingmanagers and a lack of training

Lack of autonomy, Lack of autonomy, responsibility, challenge, and responsibility, challenge, and

variety within the workvariety within the workDisappointment with the Disappointment with the

promotion and development promotion and development opportunitiesopportunities

Standards of management, Standards of management, including unapproachable, including unapproachable,

uncaring and distant behavior uncaring and distant behavior and a failure to consultand a failure to consult

Freely Inspired from Bratton J., Gold J., Human Resource Management, Freely Inspired from Bratton J., Gold J., Human Resource Management, Theory and Practice, Palgrave, 2003Theory and Practice, Palgrave, 2003

Page 9: HUMAN RESOURCE How do HR plan resource needs and sourcing?

How to deal with worker How to deal with worker shortageshortage

________________________

Do nothingDo nothing

Identify new and substitute Identify new and substitute supplysupply

Improve use and Improve use and performance of existing performance of existing

workersworkers

Human Resource PlanningHuman Resource Planning

Freely Inspired from Bratton J., Gold J., Human Resource Management, Freely Inspired from Bratton J., Gold J., Human Resource Management, Theory and Practice, Palgrave, 2003Theory and Practice, Palgrave, 2003

Page 10: HUMAN RESOURCE How do HR plan resource needs and sourcing?

HR PlanningHR Planning________________________________

HRP seeks to make the HRP seeks to make the links between strategy, links between strategy,

structure and people structure and people more explicit.more explicit.

Training, reward, Training, reward, quality and quality and

commitment to work commitment to work together in high together in high

peformance settingspeformance settings

Freely Inspired from Bratton J., Gold J., Human Resource Management, Freely Inspired from Bratton J., Gold J., Human Resource Management, Theory and Practice, Palgrave, 2003Theory and Practice, Palgrave, 2003

Page 11: HUMAN RESOURCE How do HR plan resource needs and sourcing?

HR accounting (HRA)HR accounting (HRA)

Process of identifying, Process of identifying, quantifying, accounting and quantifying, accounting and

forecasting the value of human forecasting the value of human resources in order to facilitate resources in order to facilitate

effective HRM. effective HRM.

““people on the balance sheet – people on the balance sheet – as assets”as assets”

““People have a value that is People have a value that is greater than their cost”greater than their cost”

Difficult to capture, knowledge is Difficult to capture, knowledge is an intangible asset (intellectual an intangible asset (intellectual

capital)capital)

Freely Inspired from Bratton J., Gold J., Human Resource Management, Freely Inspired from Bratton J., Gold J., Human Resource Management, Theory and Practice, Palgrave, 2003Theory and Practice, Palgrave, 2003

Page 12: HUMAN RESOURCE How do HR plan resource needs and sourcing?

HR accounting (HRA)HR accounting (HRA)

Intellectual capitalIntellectual capital in an in an organization is composed organization is composed of of structural capitalstructural capital (HW, (HW,

SW, brands and SW, brands and relationship with relationship with

customers and suppliers) customers and suppliers) and and human capitalhuman capital

(knowledge and skills as (knowledge and skills as well as employees values well as employees values

and culture).and culture).

Difference between book Difference between book value and market value.value and market value.

Freely Inspired from Bratton J., Gold J., Human Resource Management, Freely Inspired from Bratton J., Gold J., Human Resource Management, Theory and Practice, Palgrave, 2003Theory and Practice, Palgrave, 2003

Page 13: HUMAN RESOURCE How do HR plan resource needs and sourcing?

e-HRe-HR

Human Resource Information SystemsHuman Resource Information Systems

1.1. Transaction Transaction processing/reporting/tracking processing/reporting/tracking

applications covering operational applications covering operational activities (payroll, recordkeeping, activities (payroll, recordkeeping,

and performance monitoring)and performance monitoring)

2.2. Expert systems to improve Expert systems to improve decision making based on an decision making based on an

analysis of decisions concerning analysis of decisions concerning such issues as sources of new such issues as sources of new recruits, salaries and training recruits, salaries and training

needsneeds3.3. Decision support systems to Decision support systems to

improve decision making through improve decision making through the use of scenario modelling in the use of scenario modelling in areas where there are no clear areas where there are no clear answers (team formation and answers (team formation and

management development management development programmes).programmes).

Freely Inspired from Bratton J., Gold J., Human Resource Management, Freely Inspired from Bratton J., Gold J., Human Resource Management, Theory and Practice, Palgrave, 2003Theory and Practice, Palgrave, 2003

Page 14: HUMAN RESOURCE How do HR plan resource needs and sourcing?

FlexibilityFlexibilityLabor market Labor market

segmentation (Loveridge, segmentation (Loveridge, 1983)1983)

Freely Inspired from Bratton J., Gold J., Human Resource Management, Freely Inspired from Bratton J., Gold J., Human Resource Management, Theory and Practice, Palgrave, 2003Theory and Practice, Palgrave, 2003

Primary Primary internal internal marketmarket

Primary Primary external external marketmarket

Secondary Secondary external external marketmarket

Secondary Secondary internal internal marketmarket

Low span of discretion and Low span of discretion and unstable earningsunstable earnings

High span of discretion and High span of discretion and longterm stable earningslongterm stable earnings

Flexible Flexible but but specific specific skillsskills

SpecialiSpecialised but sed but general general skilsskils

Page 15: HUMAN RESOURCE How do HR plan resource needs and sourcing?

FlexibilityFlexibility

Functional (through operations)Functional (through operations)Numerical (adjust to fluctuation)Numerical (adjust to fluctuation)

Distancing strategies Distancing strategies (outsource)(outsource)

Financial (pay and reward Financial (pay and reward structure)structure)

Core workersCore workersVs Vs

Peripheral workersPeripheral workers

Freely Inspired from Bratton J., Gold J., Human Resource Management, Freely Inspired from Bratton J., Gold J., Human Resource Management, Theory and Practice, Palgrave, 2003Theory and Practice, Palgrave, 2003

Page 16: HUMAN RESOURCE How do HR plan resource needs and sourcing?

TeleworkingTeleworking

Multi-siteMulti-site

Tele-homeworkingTele-homeworking

Freelancing (go portfolio)Freelancing (go portfolio)

Mobile (on the road)Mobile (on the road)

Relocated back-functions (call Relocated back-functions (call centers)centers)

Freely Inspired from Bratton J., Gold J., Human Resource Management, Freely Inspired from Bratton J., Gold J., Human Resource Management, Theory and Practice, Palgrave, 2003Theory and Practice, Palgrave, 2003

Page 17: HUMAN RESOURCE How do HR plan resource needs and sourcing?

Career management and Career management and developmetdevelopmet

Career = movement to Career = movement to predefined stagespredefined stages

But also personal growth and But also personal growth and development through development through

employees’ interaction with their employees’ interaction with their work environment.work environment.

Developing potential (Hirsch, Developing potential (Hirsch, 1990) – posts can be considered 1990) – posts can be considered as ephemeral and be designed as ephemeral and be designed

around people. around people.

Freely Inspired from Bratton J., Gold J., Human Resource Management, Freely Inspired from Bratton J., Gold J., Human Resource Management, Theory and Practice, Palgrave, 2003Theory and Practice, Palgrave, 2003

Page 18: HUMAN RESOURCE How do HR plan resource needs and sourcing?

Career management and Career management and developmetdevelopmet

Adamson (1998) suggest:Adamson (1998) suggest:

An end to the long-term view of An end to the long-term view of employer-employee relationshipemployer-employee relationship

An end to hierarchical An end to hierarchical movement as being career movement as being career

progressionprogression

An end to logical, ordered and An end to logical, ordered and sequential careersequential career

Freely Inspired from Bratton J., Gold J., Human Resource Management, Freely Inspired from Bratton J., Gold J., Human Resource Management, Theory and Practice, Palgrave, 2003Theory and Practice, Palgrave, 2003

Page 19: HUMAN RESOURCE How do HR plan resource needs and sourcing?

Career management and Career management and developmetdevelopmet

Segmented patterns of development Segmented patterns of development with a rhetoric of career development with a rhetoric of career development

for everyone but with different for everyone but with different patterns:patterns:

Senior managers and high potentialSenior managers and high potential staffstaff – careers managed by – careers managed by

organization, with succession organization, with succession planning to fill senior positionsplanning to fill senior positions

Highly skilled workersHighly skilled workers – attempt to – attempt to attract and keep key workers by attract and keep key workers by

offering career development pathsoffering career development paths

The wider workforceThe wider workforce – more limited – more limited development opportunities often development opportunities often

caused by and resulting in uncertainty caused by and resulting in uncertainty over career paths, expectation taht over career paths, expectation taht

they will look for themselves.they will look for themselves.

Freely Inspired from Bratton J., Gold J., Human Resource Management, Freely Inspired from Bratton J., Gold J., Human Resource Management, Theory and Practice, Palgrave, 2003Theory and Practice, Palgrave, 2003

Page 20: HUMAN RESOURCE How do HR plan resource needs and sourcing?

Career management and Career management and developmetdevelopmet

Ball (1997) development of career Ball (1997) development of career management skills will benefit management skills will benefit

both organizations and both organizations and individuals:individuals:

1.1. Optimize the situation Optimize the situation

2.2. Career planningCareer planning

3.3. Engaging in personal Engaging in personal developmentdevelopment

4.4. Balance between work and non Balance between work and non workwork

Freely Inspired from Bratton J., Gold J., Human Resource Management, Freely Inspired from Bratton J., Gold J., Human Resource Management, Theory and Practice, Palgrave, 2003Theory and Practice, Palgrave, 2003

Page 21: HUMAN RESOURCE How do HR plan resource needs and sourcing?

AssignmentAssignment______________________

VisitVisitwww.dfee.gov.uk/datasphere/

www.statistics.gov.UK/statbase/Product.asp?vlnk=550&More=N

Freely Inspired from Bratton J., Gold J., Human Resource Management, Freely Inspired from Bratton J., Gold J., Human Resource Management, Theory and Practice, Palgrave, 2003Theory and Practice, Palgrave, 2003