H R Planning

?
1
HR Planning Model
Organisational Plans & Objectives
Identify Future human resource Requirements
Compare with current HR inventory
Determine the Nos., Levels &
Criticality of Vacancies/ demand
Determine
Redundant Nos.
Analyse cost & time involved
in managing the Demand
Analyse cost & time involved
in managing the Surplus
Choose resources &
methods to fill vacancies
Redeploy Retrench
2
2. It works best when it is tied to:
a. the organizations strategic planning
process
b. all available forecasts (technological,
economic, market, etc.)
How do you do it?
1. It is a process of comparing human
resource supply with human resource demand.
A. General Comments:
3
3. When there are variances, action
plans must be formulated, e.g.,
a. for surpluses, will organization use
layoffs, retirement incentives, reduced
hours, or something else?
b. for shortages, will organization use
overtime, temporary workers, or recruit
new permanent workers?
How do you do it?...contd.
4
1. Approaches to forecasting:
a. Qualitative:
Methods Used for Human Resource Planning:
i. Expert opinions
ii. Delphi technique


b. Quantitative (mathematical modeling):
i. Regression analysis / Trend analysis
ii. Markov analysis
5
2. Supply Analysis
a. Skills inventories
Methods Used for Human Resource
Planningcontd.:
Human Resource Information
Systems (HRIS)
b. Replacement charts / Succession plans
6
7
HUMAN RESOURCE INFORMATION SYSTEM
Goal: Integrate Core Processes into Seamless System
Input Data Types
Job Analysis
Recruitment
Selection/Job Posting/
Employee Referral
T&D
Performance Appraisal
Compensation
Benefits
Safety
Health
Labor Relations
Employee Relations

Output Data Uses*
Employee Tracking
Diversity Programs
Hiring Decisions
Training Programs/E-
learning/Management Succession

Compensation Programs
Benefit Programs (e.g.,
prescription drug programs)
Health Programs (e.g., Employee
Assistance Programs)
Bargaining Strategies
Employee Services
Organizational
Strategic
Plans
Human
Resource
Management
Plans
Contribute Toward Achievement of:
Human
Resourc
e
Informati
on
System
*Certain data are available to employees at work or at home. All employees may
be able to review 401(k) balances, transfer funds, make benefit selections, set
annual performance goals, update personnel data etc.
7
How many people do we need?
Product Demand () Productivity per employee
Turnover


Where are they coming from?
Internal Labor Market
Existing employees
External Labor Market
Potential employees

HR Planning
8
HR Forecasts
Labor demand
Strategic Planning
Succession Planning
Managing Retention




Labor supply
Labor markets
Specific shortages

Labor Supply Labor Demand
9
Objectives of HR Planning
10
Process of HR Planning

?
11
HR Planning (Types) at different levels
Corporate - level planning :
Intermediate-level planning : ( at SBU level)
Operations level planning :
Short term & Long term plans :
12
Dealing with surplus manpower
Retrenchment / voluntary retirement:
Outplacement : ( helping employees search for other
employment opportunities )
Lay-offs : ( demand of products going down, raw material not
available etc.)
Leave of absence without pay : ( employees have options
to come back to same organisation after leave period or after
looking for another job during the leave period).
Loaning : ( loaning employees to other organisations for
specified period ).
Work-sharing : ( 2 or more workers share the job & salary of
1 worker; operate on shorter shifts & take home
corresponding lower salaries.
Reduced work-hours & pay / Freeze new recruitments :
13
Growing Importance of HR Planning
Current trends :
Restrictions due to legal & political
environment
Outsourcing
14
HUMAN RESOURCE INFORMATION SYSTEMS
(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
J ob Titles held, Location in Company, Time in each position, etc.
Performance appraisals, Promotions received, Training & Development
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
15
PERSONNEL RATIOS
Past experience has developed these ratios for recruiting a Cost Accountant:

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

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

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

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

THUS (statistically): 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!!!
16
Trend Analysis for HR Demand
1997 $2,351 14.33 164
1998 $2,613 11.12 235
1999 $2,935 8.34 352
2000 $3,306 10.02 330
2001 $3,613 11.12 325
2002 $3,748 11.12 337
2003 $3,880 12.52 310
2004* $4,095 12.52 327
2005* $4,283 12.52 342
2006* $4,446 12.52 355
Total productivity or sales expected productivity or sales per
employee = Total number of employees required.


YEAR (SALES IN THOUSANDS) (SALES/EMPLOYEE) (NUMBER OF EMPLOYEES)
*Projected figures
17
Succession / Career Planning
18
Markov Analysis
Markov Analysis
A method for tracking the pattern of employee
movements through various jobs.
19
Hypothetical Markov Analysis for a Retail Company
20
Calculating Turnover and
Absenteeism
21
Employee Turnover Rates
Computing Turnover Rates:
22
Employee Turnover Rates
(contd)
Computing Turnover Rates (contd):
23
Highlights in HRM 6
Example: Costs Associated With The Turnover Of One Computer
Programmer
(Turnover costs = Separation costs + Replacement costs + Training costs)

Separation costs
1. Exit interview cost for salary and benefits of both interviewer and departing employee during the exit
interview = $30+$30 = $60
2. Administrative and record-keeping action = $30
Total separation costs = $60 + $30 = $90
Replacement costs
1. Advertising for job opening = $2,500
2. Preemployment administrative functions and record-keeping action = $100
3. Selection interview = $250
4. Employment tests = $40
5. Meetings to discuss candidates (salary and benefits of managers while participating in meetings )= $250
Total replacement costs = $2,500 + $100 + $250 + $40 + $250 = $3,140
Training costs
1. Booklets, manuals, and reports = $50
2. Education = $240/day for new employees salary and benefits x 10 days of workshops, seminars, or
courses = $2,400
3. One-to-one coaching = ($240/day/new employee + $240/day/staff coach or job expert) x 20 days of one-
to-one coaching = $9,600
4. Salary and benefits of new employee until he or she gets up to par = $240/day for salary and benefits x
20 days = $4,800
Training costs = $50 + $2,400 + $9,600 + $4,800 = $16,850
Total turnover costs= $90 + $3,140 + $16,850 = $20,080
24
Employee Absenteeism Rates
Computing Absenteeism Rates
25