hrp introduction

Introduction to HR Planning

Human Resource Planning & IS

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Human Resource Planning & IS 2

Human Resources PlanningHuman Resources Planning Human Resources Planning (HRP)Human Resources Planning (HRP)

– Process of anticipating and making provision Process of anticipating and making provision for the movement (flow) of people into, for the movement (flow) of people into, within, and out of an organization.within, and out of an organization.

– HRP’s purpose is the the effective HRP’s purpose is the the effective deployment of human resources through:deployment of human resources through: Anticipating organizational labor supply and Anticipating organizational labor supply and

demand.demand. Providing expanded employment opportunities for Providing expanded employment opportunities for

women, minorities, and the disabled.women, minorities, and the disabled. Guiding the development and training the Guiding the development and training the

workforce.workforce.

Strategic Importance of Human Resource Planning

Human Resource Planning & IS

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Alterations in organizational strategy create the necessity for change in organizational structure. Structural change affects both quantitative and qualitative characteristics of the human resource needs in an organization.

The fluidity of human resources in organizations requires effective human resource planning that takes a careful and considered approach to workforce changes.


Definitions of HR Planning (1)Definitions of HR Planning (1)“…“…strategy for the acquisition, utilisation, strategy for the acquisition, utilisation,

improvement and preservation of an improvement and preservation of an organisation’s human resources” organisation’s human resources”

(Department of Employment 1974)(Department of Employment 1974)

(cited by Bratton and Gold, 2003, p194)(cited by Bratton and Gold, 2003, p194)

“…“…the process for identifying an organisation’s the process for identifying an organisation’s current and future human resource current and future human resource requirements, developing and implementing requirements, developing and implementing plans to meet these requirements and plans to meet these requirements and monitoring their overall effectiveness” monitoring their overall effectiveness”

((Beardwell and Claydon, 2007, p159) Beardwell and Claydon, 2007, p159)


Definitions of HR Planning (2)Definitions of HR Planning (2)

“…“…the process of interpreting the the process of interpreting the environment, predicting its effects on environment, predicting its effects on the organisation, evaluating these the organisation, evaluating these effects, planning and controlling the effects, planning and controlling the appropriate measures in order that the appropriate measures in order that the right human resources are available right human resources are available when required”when required”

(Boella, 2000) (Boella, 2000)


Developmental Overview Developmental Overview (1)(1)

Bramham (1994) arguesBramham (1994) argues– Manpower Planning as QUANTITATIVE – Manpower Planning as QUANTITATIVE –

concerned with forecasting demand and concerned with forecasting demand and supply of laboursupply of labour

– Human Resource Planning as far wider Human Resource Planning as far wider encompassing a whole range of activities:encompassing a whole range of activities: Motivation of employees, employee attitudes, Motivation of employees, employee attitudes,

organisational culture organisational culture


Developmental Overview Developmental Overview (2)(2)

According to Taylor (2002) According to Taylor (2002)

MP and HRP are concerned with MP and HRP are concerned with ‘‘looking ahead’, using systematic looking ahead’, using systematic

techniques, i.e. auditing skills to be able techniques, i.e. auditing skills to be able to meet org. requirements of the future. to meet org. requirements of the future.

Having ‘the right people, with the right Having ‘the right people, with the right skills, in the right places at the right time. skills, in the right places at the right time.


HR Planning IssuesHR Planning Issues

Staffing Questions:Staffing Questions: How do we manage staffing in times of How do we manage staffing in times of

recession or expansion?recession or expansion? What impact does technology change, mergers What impact does technology change, mergers

or relocation have on staffing issues?or relocation have on staffing issues? Do we always have the right people in the right Do we always have the right people in the right

jobs at the right time?jobs at the right time? How do we get our human resources: buy them How do we get our human resources: buy them

or make them or both?or make them or both?


IMPORTANCE OF HUMAN IMPORTANCE OF HUMAN RESOURCE PLANNINGRESOURCE PLANNING

HRP is the responsibility of HRP is the responsibility of allall managersmanagers Its focus is Its focus is labourlabour demanddemand and and labour supplylabour supply EffectiveEffective HRP is critical to an organisation’s success HRP is critical to an organisation’s success

because it matches organisational HR objectives with its because it matches organisational HR objectives with its people requirementspeople requirements

SurplusSurplus employees require a review of HR policies employees require a review of HR policies regarding permanent employment, outsourcing and regarding permanent employment, outsourcing and retrenchments.retrenchments.

ExcessExcess low skilled employees face difficulties when low skilled employees face difficulties when introducing technological and other changes.introducing technological and other changes.

A lack of a A lack of a diversediverse employee mix create barriers to employee mix create barriers to meeting EEO objectives.meeting EEO objectives.


WHY HR PLANNING……WHY HR PLANNING…… Ensures optimum use of manpower and capitalize on Ensures optimum use of manpower and capitalize on

the strength of HR. The organization can have a the strength of HR. The organization can have a reservoir of talent at any point of time.reservoir of talent at any point of time.

Forecast future requirements by keeping track of the Forecast future requirements by keeping track of the employee turnover and provide control measures employee turnover and provide control measures about availability of HR labor time. about availability of HR labor time.

Help determine recruitment/induction levels. Help determine recruitment/induction levels. To anticipate redundancies/ surpluses/obsolescence.To anticipate redundancies/ surpluses/obsolescence. To determine training levels and works as a foundation To determine training levels and works as a foundation

for management development programmes.for management development programmes. Know the cost of manpower if there is a new project is Know the cost of manpower if there is a new project is

being taken up. being taken up. Assist in productivity bargaining. Assist in productivity bargaining. Management decisions to outsource an activity or not? Management decisions to outsource an activity or not?


Why is HRP important?Why is HRP important?

Helps link individual & organisational goalsHelps link individual & organisational goals Organisational expansion & diversificationOrganisational expansion & diversification Improves business planning - Input to strategic Improves business planning - Input to strategic

planningplanning Technological/Social ChangesTechnological/Social Changes Lead time in Training & DevelopmentLead time in Training & Development HR's critical resources - Succession & Career PlanningHR's critical resources - Succession & Career Planning Computerised Human Resource Information SystemsComputerised Human Resource Information Systems Helps evaluate effects of HR policiesHelps evaluate effects of HR policies Reduce personnel costsReduce personnel costs


EFFECTIVE HR PLANNINGEFFECTIVE HR PLANNING

Effective HR Planning ensures that:Effective HR Planning ensures that:

the available talent is correctly allocatedthe available talent is correctly allocated

labour costs are controlledlabour costs are controlled

employee numbers are appropriateemployee numbers are appropriate

productivity is improvedproductivity is improved

talented employees are retainedtalented employees are retained


Major Objectives of HRPMajor Objectives of HRP

Preventing understaffing and overstaffingPreventing understaffing and overstaffing Ensure the organization has the right employees Ensure the organization has the right employees

with the right skills at the right place at the right with the right skills at the right place at the right timetime

Ensure the organization is responsive to Ensure the organization is responsive to changes in its environmentchanges in its environment

Provide direction and coherence to all HR Provide direction and coherence to all HR activities and systems activities and systems


MAJOR REASONS FOR EMPHASIS ON MAJOR REASONS FOR EMPHASIS ON HRP:HRP:

•• Employment-Unemployment SituationEmployment-Unemployment Situation

• • Technological Changes Technological Changes

• • Organizational ChangesOrganizational Changes

• • Demographic ChangesDemographic Changes

• • Skill ShortagesSkill Shortages

• • Governmental Influences Governmental Influences

• • Legislative Controls Legislative Controls

• • Impact of Pressure GroupsImpact of Pressure Groups

• • Lead Time Lead Time


Responsibilities of Human Resource Responsibilities of Human Resource Department in respect of manpower Department in respect of manpower

planning includes:planning includes: • • Assist and counsel operating managers to plan and set Assist and counsel operating managers to plan and set

objectives. objectives.

• • Collect and summarize manpower data keeping long-Collect and summarize manpower data keeping long-run objectives and broad organizational interests in run objectives and broad organizational interests in mind. mind.

• • Monitor and measure performance against the plan Monitor and measure performance against the plan and keep top management informed about it. and keep top management informed about it.

• • Provide proper research base for effective manpower Provide proper research base for effective manpower and organizational planning. and organizational planning.


Factors affecting HRPFactors affecting HRP Changing nature of a business e.g. from being product Changing nature of a business e.g. from being product

to market orientatedto market orientated

Changes in the market – e.g. consumers buying more Changes in the market – e.g. consumers buying more or less of a company’s productor less of a company’s product

Technology – the introduction of automationTechnology – the introduction of automation

Competition – e.g. a need to cut costs to compete Competition – e.g. a need to cut costs to compete might mean a reduction in staffmight mean a reduction in staff

Demographics – reduction in school leavers could lead Demographics – reduction in school leavers could lead to labour shortage in some areasto labour shortage in some areas

Government e.g. the need to be aware of equal Government e.g. the need to be aware of equal opportunities legislationopportunities legislation


REQUISITES FOR SUCCESSFUL REQUISITES FOR SUCCESSFUL HRPHRP

HRP must be seen as equally vital as business HRP must be seen as equally vital as business planningplanning

top-management supporttop-management support active involvement of line managers and co-ordination active involvement of line managers and co-ordination

between line mgrs and HR functionbetween line mgrs and HR function an excellent and up-to-date HRISan excellent and up-to-date HRIS periodic review and revision of the forecasting periodic review and revision of the forecasting

techniques and the forecaststechniques and the forecasts Caution is needed when collecting data - too much Caution is needed when collecting data - too much

data to analyse can cause problemsdata to analyse can cause problems Without long range planning concentration becomes Without long range planning concentration becomes

focussed on short-term needs resulting in “crisis focussed on short-term needs resulting in “crisis management” reactionsmanagement” reactions


HR PLANNING BENEFITSHR PLANNING BENEFITSHR planning is a systematic process that ensures:HR planning is a systematic process that ensures:

a more a more effectiveeffective and efficient use of human and efficient use of human resourcesresources

More More satisfiedsatisfied and better developed employees and better developed employees More More effectiveeffective equal employment opportunity and equal employment opportunity and

affirmative action [AA] planningaffirmative action [AA] planning Reduced Reduced financial and legal financial and legal costscosts Better view of the HR dimensions of business Better view of the HR dimensions of business

decisionsdecisions


Lower HR costs through better HR Lower HR costs through better HR management.management.

More timely recruitment for anticipate HR More timely recruitment for anticipate HR needsneeds

More inclusion of protected groups through More inclusion of protected groups through planned increases in workforce diversity.planned increases in workforce diversity.

Better development of managerial talentBetter development of managerial talent


Problems of HRPProblems of HRP People are unpredictablePeople are unpredictable External influences e.g. recessionExternal influences e.g. recession Poor industrial relations if carried out Poor industrial relations if carried out

badlybadly Needs to be checked and monitoredNeeds to be checked and monitored

hrp introduction

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