Human Resource Planning: Methods and Applications

I. What is it?
Human resource planning involves getting the right number of qualified people into the right jobs at the right time.

I. What is it?
The techniques of human resource planning are some of the most complex activities carried out by employee resourcing professionals. There are different uses of the term human resource planning by different authors. The focus is on forecasting the supply and demand of labour and developing plans to reconcile any future gap that is identified between the human resources an organisation needs and those to which it is likely to have access.

II. Why is it important?

A. often long lag times to fill positions B. often influences both turnover and productivity C. the demographic imperative demands more such planning

III. How do you do it?

A. General Comments:
1. It is a process of comparing human resource supply with human resource demand. It works best when it is tied to:
a. the organizations strategic planning process b. all available forecasts (technological, economic, market, etc.)

2.

III. How do you do it?

A. General Comments:
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?

III. How do you do it?

B. Methods Used for Human Resource Planning:
1. Approaches to forecasting:
a. Qualitative.
b. Quantitative (mathematical modeling).

III. How do you do it?

B. Methods Used for Human Resource Planning: Stages in an HR planning cycle:
1. Forecasting future demand for human resources 2. Forecasting future internal supply 3. Forecasting future external supply 4. Formulating responses to the forecasts.

Stages in an HR planning cycle:

1. Forecasting future demand for human resources 2. Forecasting future internal supply 3. Forecasting future external supply 4. Formulating responses to the forecasts.

1.Forecasting future demand

1.Forecasting future demand

The process of assessing demand can be defined as analysing, reviewing and attempting to predict the numbers, by kind, of the manpower needed by the organisation to achieve its objectives . It depends on:
the time-scale that the forecast is intended to cover the nature of the activities carried out by the organisation.

Four basic categories of techniques: systematic techniques managerial judgement combining systematic and subjective approaches working back from costs.

Systematic techniques Time series estimating future requirements from an analysis of past and current experience. Appropriate only in relatively stable business environments. Work study study of individual tasks or processes in order to establish the numbers required to complete them most effectively and efficiently.

Managerial judgement Bases decisions on the subjective views of managers about likely future human resource needs. This is often the only option in situations where the business environment is highly volatile. Delphi technique a systematic approach to decision-making that aims to introduce a measure of objectivity into the process by which forecasts are made on the basis of managerial judgement.

Working back from costs The process begins with the future budget for staff costs. The HR planner then works out, given that constraint, how many people and at what salary level will be affordable. The focus is on designing organisational structures and methods of working that will permit the budget to be met

2.Forecasting internal supply

2.Forecasting internal supply Analysing the current workforce department by department or by grade before estimating the numbers likely to remain employed and the skills they are likely to possess.

Techniques:
wastage analysis stability analysis cohort analysis internal promotion analysis.

3.Forecasting external supply

3.Forecasting external supply Having established the future demand for different kinds of employee, and how these needs will or will not be met internally, it is necessary to give attention to filling the gap and reconciling supply and demand using the external labour market. Organisations must turn to statistical information on local, national and even international labour markets.

Computer applications There are many different ways in which IT can be used to support and undertake human resource planning. Three broad categories:
Information provision Computerised personnel information systems (CPIS) allow more data to be stored, and permit far swifter generation of reports. Modelling The ability of computers to handle vast quantities of data permits highly complex formulae concerning numerous variables to be built up, and results to be calculated in seconds. Presentation User-friendly reports make data easy to interpret. This can help significantly with HR efficiency and credibility.