H R Planning

definition

• Process by which a company decides how an organisation should move from its current manpower position to its desired manpower position.

Need for HRP

• To carry on work
• People need to be replaced
• People leave the organization
• Companies expand
• Changing needs that cannot be met by old labor force
• To rightsized the company

Relation between organizational planning & HR planning

• Organization’s business or strategic planning process is the first planning process done by the company
• The organisational strategy should :
• A clear statement of the company’s mission
• A clear statement of the company’s purpose, plans
• An action plan based on the available resources

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• Human resource planning depends on the organizational strategy or plan
• Contributes a lot to the main organizational strategic plan

HR trends in Post covid –Sage HR research

• Increase in remote work
• Expanded data collection :
• Call and email monitoring
• Time tracking
• GSP tracking
• Health tracking
• Corporate socail services of employers
• Separation of critical skills and critical roles
• The sift from being efficiency to resilience
• Increase in organization complexity

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HR planning process

• Current HR Supply
• Future HR Demand
• Demand forecast
• HR sourcing strategy and implementation

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THE PLANNING PROCESS

HR needs

Forecast

HR supply

Forecast

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Corporate objectives

and policies

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HR Programs

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HRP Implementation

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Control and evaluation

Of programs

Surplus

Restricted hiring

Reduced hours

VRS, layoff etc

Shortages

Recruitment

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Environmental scanning

Hr planning

• Should be aware of business strategy

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• See that human resource programs satisfy the top management

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• Convert business objectives into HR objectives

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Strategy-linked HRP

• HRP is not the responsibility of HR managers only
• Has to be do done together with operating managers

-a close working relationship

• Hr managers provide with the structure and support
• Top Management support should be there

Time frame of HRP

• Short term : (0-2) years

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• Intermediate : (2-5) years

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• Long Range :(beyond 5 years)

Organizational Life-Cycle Stages and HR Activities

Organizational Life-Cycle Stages and HR Activities (cont’d)

Linking and Aligning HR / Workforce Planning to

Business Planning

Step 2 – Scan the Environment

Step 1 – Determine Your Business Goals

I N T E R N A L S C A N

Anticipated changes in funding or budgets

Changes in leadership and priorities

Health and safety

Corporate culture

Employee engagement

Organizational restructuring

Management practices

Leadership styles

Internal policies (ex. diversity, etc.) that could affect the workforce

E X T E R N A L S C A N

Current workforce trends

Demand and supply of employees in certain

occupations

Candidate pools

Current and projected economic conditions

Technological advancements which could create new

employment or negatively impact certain occupations

or positions

Migration patterns

In-take for occupational groups at post-secondary

institutions

Employment practices of competing organizations

Step 3 – Conduct a Gap Analysis

Step 4 – Set HR Priorities to Help Achieve the Goals

S A M P L E S T R A T E G I E S

Developing a talent pool

Work environment improvements

Organizational development

Competency / Skills development

Employee engagement

Workplace well-being

Recruitment / staffing

Retention

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Step 5 – Monitor, Evaluate, and Report on Progress

Consider the following questions:

• Have clear and measurable HR goals been identified?
• Are the HR performance measures aligned with other existing accountability measures
• (ex. measures that already exist in departmental strategic plans, etc.)?
• Are systems in place to track performance indicators and analyze any cost benefit?
• Do results from performance indicators inform priority setting for the next fiscal year?
• What is the degree of success that has been achieved?

How does HR Planning occur?

Are resources available

Internal

• Replacement charts

• Promotability

• Succession planning

• Skills inventory

• Transition (Markov) matrix
• Personnel Ratios

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INTERNAL SUPPLY

• Inflows and outflows

current personnel level – outflows + inflows = internal supply

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• Turn over rate

turnover = total number of separations during one year x 100

average number of employees during the year

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• Conditions of work and absenteeism

Assessment of change in work conditions such as normal weekly hours, retirement policy, overtime policy, holidays, policy for employment of part time workers, and shifts provides fair assessment of internal supply

Absenteeism when person supposed to work but does not report for duty

Absenteeism= number of persons- days lost x 100

average number of persons x number of working days

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• Productivity level

Change in productivity level affect the number of workers required for per unit production

• Movement among jobs

Some jobs provide supply for other jobs such as stenographer may be fit for position of Secretary

INTERNAL SUPPLY

Succession planning

• Identifies specific people to fill key positions
• Organizational replacement chart is used
• Shows incumbents
• Shows potential replacements
• Replacement charts needs to be updated from time to time

SUCCESSION PLANNING

REPLACEMENT CHART

FOR EXECUTIVE POSITIONS

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POSITION REPLACEMENT CARDS

FOR EACH INDIVIDUAL POSITION

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- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

POSITION WESTERN DIVISION SALES MANAGER

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DANIEL BEALER Western Division Sales Mgr Outstanding Ready Now

PRESENT PROMOTION

POSSIBLE CANDIDATES CURRENT POSITION PERFORMANCE POTENTIAL

SHARON GREEN Western Oregon Sales Manager Outstanding Ready Now

GEORGE WEI N. California Sales Manager Outstanding Needs Training

HARRY SHOW Idaho/Utah Sales Manager Satisfactory Needs Training

TRAVIS WOOD Seattle Area Sales Manager Satisfactory Questionable

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Employee Replacement Chart for Succession Planning

A Sample Transition Matrix

Part A: Personnel Supply� Estimated Personnel Classification in Year T + 1 (%)

Classifications in Year T P M S Sr A Exit

Partner .70 .30�Manager .10 .80 .10�Supervisor .12 .60 .28�Senior .20 .55 .25�Accountant .15 .65 .20

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Part B. Staffing Levels� Estimated Personnel Availabilities in Year T + 1 (%)

Beginning

Classifications in Year T Levels P M S Sr A Exit

Partner 10 7 3�Manager 30 3 24 3�Supervisor 50 6 30 14�Senior 100 20 55 25�Accountant 200 30 130 40

10 30 50 85 130

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SKILLS INVENTORY (HRIS)

PERSONAL DATA

Age, Gender, Dependents, Marital status, etc

EDUCATION & SKILLS

Degrees earned, Licenses, Certifications

Languages spoken, Specialty skills

Ability/knowledge to operate specific machines/equipment/software

JOB HISTORY

Job Titles held, Location in Company, Time in each position, etc.

Performance appraisals, Promotions received, Training & Development

STRENGTHS AND WEAKNESS

MEMBERSHIPS & ACHIEVEMENTS

Professional Associations, Recognition and Notable accomplishments

PREFERENCES & INTERESTS

Career goals, Types of positions sought

Geographic preferences

CAPACITY FOR GROWTH

Potential for advancement, upward mobility and growth in the company

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PERSONNEL / YIELD RATIOS

Past experience has developed these yield ratios for recruiting a Cost Accountant:

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FOR EVERY 12 APPLICATIONS RECEIVED, ONLY 1 LOOKS PROMISING ENOUGH TO INVITE FOR AN INTERVIEW

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OF EVERY 5 PERSONS INTERVIEWED, ONLY 1 IS ACTUALLY OFFERED A POSITION IN THE ORGANIZATION

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OF EVERY 3 JOB OFFERS MADE, ONLY 2 ACCEPT THE POSITION

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OF EVERY 10 NEW WORKERS WHO BEGIN THE TRAINING PROGRAM, ONLY 9 SUCCESSFULLY COMPLETE THE PROGRAM

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THUS: 100 APPLICATIONS MUST BE RECEIVED, so that

8.33 JOB INTERVIEWS CAN BE HELD, so that

1.67 JOB OFFERS CAN BE MADE, and

1.11 PEOPLE MUST BE TRAINED, so that we get

ONE NEW COST ACCOUNTANT!!!

THE PLANNING PROCESS

HR Demand Forecast

• The process of estimating organization's quantity and quality

of future workforce

• HR demand forecast must consider both internal (budget

constraints, production level, new products and services,

employment policy etc.) and external factors (local and global

competition, economy, political and legal conditions etc.)

HR demand forecast help to

1) Quantify the jobs required to produce number of goods or

offering service

2) Identify desirable staff mix

3) Determine appropriate level of staff in each department

4) Prevent shortages

5) Monitor compliance

Forecasting Techniques

Managerial Judgments

• Managers brainstorm and decide the future demand
• In bottom up approach line managers submit their future demands
• In top down approach top management decides company's and departments future workforce demand

Ratio Trend Analysis

• Quick and easy way to forecast demand
• Past ratio between sales volume and number of workers are reviewed to determine future demands

Regression Analysis

• Statistical analysis technique that depicts the relationship between sales volume and workforce size

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Workforce Study Techniques

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Calculation of amount of labour required by determining length of operations and units of production

Planned output for next year 20,000 unit

Standard hours per unit 5

Planned hours for the year 100,000

Productive hours per man 2,000

(allowing normal overtime, absenteeism and idle time)

Number of direct labour required 50

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Delphi Technique

• Experts estimated HR needs
• The responses are summarized and then send again to experts for further processing
• The process continues till consensus reach or opinion begins to match

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New Venture Analysis

• Useful for new business ventures
• Estimating HR needs based on analysis of existing companies in same business
• For example: Company starting coal mine operation can predict future personnel needs by analyzing the workforce demand of companies operating in industry

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The Delphi Technique

Leader identifies judgment issues and develops questionnaire.

Prospective participants are identified and asked to cooperate.

Leaders send questionnaire to willing participants, who record their judgments and recommendations and return the questionnaire.

Leaders compiles summaries and reproduces participants’ responses.

Leader sends the compiled list of judgment to all participants.

Participants comment on each other’s ideas and propose a final judgment.

Leader looks

for consensus

Leader accepts consensus judgment as group’s choice.

Statistical Techniques Used to Project Staffing Demand Needs

Name

Regression analysis

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Productivity ratios

Description

Past levels of various work load indicators, such as sales, production levels, and value added, are examined for statistical relationships with staffing levels. Where sufficiently strong relationships are found, a regression (or multiple regression) model is derived. Forecasted levels of the retained indicator(s) are entered into the resulting model and used to calculate the associated level of human resource requirements.

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Historical data are used to examine past levels of a productivity index (P):�

P = Work load / Number of People

�Where constant, or systematic, relationships are found, human resource requirements can be computed by diving predicted work loads by P.

Statistical Techniques Used to Project Staffing Demand Needs (cont’d)

Name

Personnel ratios

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Time series analysis

Description

Past personnel data are examined to determine historical relationships among the employees in various jobs or job categories. Regression analysis or productivity ratios are then used to project either total or key-group human resource requirements, and personnel ratios are used to allocated total requirements to various job categories or to estimate for non-key groups.���Past staffing levels (instead of work load indicators) are used to project future human resource requirements. Past staffing levels are examined to isolate and cyclical variation, long-tem terms, and random movement. Long-term trends are then extrapolated or projected using a moving average, exponential smoothing, or regression technique.

Determining the Relationship Between Hospital Size and Number of Nurses

Staffing Alternatives to Deal with Employee Surpluses

Staffing Alternatives to Deal with Employee Shortages

THE PLANNING PROCESS

HR needs

Forecast

HR supply

Forecast

​

Corporate objectives

and policies

​

HR Programs

​

HRP Implementation

​

Control and evaluation

Of programs

Surplus

Restricted hiring

Reduced hours

VRS, layoff etc

Shortages

Recruitment

​

Environmental scanning

Steps in hrp

1. Determining organizational Objectives

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2. Determining the skills and required

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3. Determining Additional(Net) Human Resource Requirements

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4. Developing Action Plans