Lecture 3

Human resource planning in a changing environment

Introduction

Human Resource Planning: ‘The bridge between HR strategies and HR functions is the formulation of human resource plans that incorporate the desired outcomes of HR strategies, are responsive to continual changes in dynamic national and global industry environments, and can be implemented through efficient and effective HR functions...’ (Nankervis, Compton, Baird & Coffey 2011, p.120)

Human Resource Planning

• Ensure organisational objectives are met through effective utilisation of human resources • Considerate of changing circumstances within and outside the organisation • Is an ongoing process, focused on the long-term • Cognisant of contemporary changes in both internal and external environments • A series of processes, with long-, medium- and short-term contingency options • Based upon efficient, effective and user-friendly HRIMS

Strategic alignment

Human resource planning (HRP)

• Sometimes called ‘workforce planning’ – translates the organisation’s objectives – ensures that organisations have the right people in the right place, with the right skills, at the right time and at the right place – translates organisational plans into HR plans that guide the long-term acquisition, use and development of intellectual capital and knowledge assets

Group discussion

Discuss the following statement: ‘Strategic HRP is impossible given the dynamism and complexity of the global economy and with the short-term perspectives of most companies and governments’.

HRP and strategic organisational planning

• Determination of necessary labour requirements

(demand)

• Prediction of likely sources

(supply)

• Environmental scanning • Evaluation of strengths and weaknesses • Development of objectives and goals • Formulation of suitable strategies

Approaches to SHRP

Effective integration of HR and strategic plans

• Depends on many factors including: – nature and stage of organisation – organisational size – history, culture and philosophy – nature of business strategies – location and level of the HR function – values and skills of senior HR managers

Group discussion

Discuss the following statement:

‘Talent management and talent retention are the only priorities for HR planners in today’s organisations ’.

A model of strategic human resource management

Group discussion

Following the recent global financial crisis, which HRM issues should HR professionals be focusing on to ensure their organisations’ sustainability?

The process of HRP

Labour demand forecasting Labour supply analysis (internal and external sources) Balancing supply and demand Staffing strategies to meet organisational needs

Labour demand forecasting

• Estimating in advance the number and type of employees required • Complex or simple techniques can be used • Dependent upon: – expertise of HR – complexity of organisational structures – market factors – external environment

Group discussion

Consider the nature of the future fast food or retail industries workforces. Is there likely to be more or less employees, ore highly skills or less skills staff, and/or greater use of technology to replace labour?

Labour supply analysis

• Determining if labour requirements are available: – when and where needed?

– internal or external sources?

– internal supply analysis – skills inventory

Group discussion

Consider the relative advantages and disadvantages of global versus local labour markets in relation to an organisation of your choice.

Human resource information management systems (HRIMS)

• Originally manual • Increasingly complexity of legislation • Payroll systems • Development of flexible and comprehensive systems • Increasingly computerised and information technology focused • Strategic tool for HR planning and cost-effective HRM

A model of strategic HRP using HRIMS

Benefits and features of HRIMS

• Improved planning and program development • Faster information processing • Improved response times • Decreased administrative and HR costs • Accuracy of information • Enhanced communication at all levels

Types of HRIMS data

• • • Aggregated data on all aspects of the employment relationship including:

Administrative

– industrial awards, HR policies, salary, leave…

Operational

– personal and job histories, records on recruitment and selection…

Strategic reasons

– all the above plus wastage, staff positions, labour market trends…

The role of HR information in the HR strategic planning process

‘Ownership’, confidentiality and privacy of HRIMS data

• Who has access? – keys and codes • Protection of data • Ethical issues • Outsourcing • Data ownership • Freedom of Information legislation versus Privacy legislation

Successful HRIMS

• Accurate employee and job data • Flexible and adaptable • Clear link with and contribution to HR plans • Modular and integrated • Clear control of HR costs

External supply

• Considered when: – lack sufficient internal supply – entry-level positions • Influenced by many complex factors • Other options?

The external environment

• Crucial success factors include: – recruiting and retaining skilled employees – increasing customer satisfaction – employing and developing leaders – sustaining a competitive advantage – managing risk – managing change and corporate culture – becoming an innovative organisation

Group discussion

Argue the cases for: 1. Maintaining an HRIMS wholly within the organisation 2. Integrated HRIMS, including internal and external service providers 3.

An entirely ‘outsourced’ HRIMS

Human resource planning Drawbacks

• Time-consuming

Benefits

• Better match between employee and organisational objectives • Difficult/complex • Increased productivity and profitability • Costly • Better integration • Inadequate support • Obstruction • Timely staffing and skill requirements

Summary

Effective HRP • Management commitment • Importance placed on human resources • Links between external and internal environments and organisational strategies • Effective linkages between HRP and HRM • Adequate staff, time and resources • Effective HR information systems