Transcript Foundations of Organizational Behavior

HR Planning
Human Resource Planning (HRP)
• Is the first component of HRM strategy
• All other functional HR activities are derived from and
flow out of the HRP process.
• Has its basis in considerations of future HR
requirements in light of present HR capabilities and
capacities.
• Is proactive in anticipating and preparing flexible
responses to changing HR requirements.
• Has both an internal and external focus.
HR Planning
How many people do we need?
• Product Demand X Labor Productivity
• Turnover
Where are they coming from?
• Internal Labor Market
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Existing employees
• External Labor Market
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Potential employees
HR Forecasts
• Labor demand
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Strategic Planning
Succession Planning
Managing Retention
Labor Demand
• Labor supply
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Labor markets
Specific shortages
Labor Supply
Major Objectives of HRM Planning
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Prevent overstaffing and understaffing
Right skills in place Monday morning
Ensure responsiveness to change
Alignment of all HRM systems
Gain agreement between line and
management on goals and objective
Forecasting Demand for Employees
• Consider the firm’s strategic plan’s likely impact on the
demand for the firm’s products or services.
• Assumptions on which the forecast is predicated should
be written down and revisited when conditions change.
• Unit forecasting (bottom-up planning) involves “point of
contact” estimation of the future demand for employees.
• Top-down forecasting involves senior managers allocating
a fixed payroll budget across the organizational hierarchy.
Forecasting Demand for Employees
• Budgeting
• Statistical Techniques
 Trend analysis
 Regression
 Probability models
• Qualitative Techniques
 Ask the experts / Delphi Technique
• Needs are then compared to current workforce to identify gaps
and decide staffing actions.
• Take into account:
 Productivity and FTE employees
 Scheduling and shifts
 High volume / traffic times
Trend Analysis of HR Demand
BUSINESS
FACTOR
YEAR

(SALES IN THOUSANDS)
LABOR
PRODUCTIVITY
(SALES/EMPLOYEE)
=
HUMAN RESOURCES
DEMAND
(NUMBER OF EMPLOYEES)
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
*Projected figures
Forecasting Supply of Employees
• Staffing Tables
• Markov Analysis
• Skill Inventories
• Succession Planning
Forecasting Internal Labor Supply
Staffing Tables
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Graphic representations of the number of
employees currently occupying certain jobs
and future (monthly or yearly) employment
requirements.
Markov Analysis
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A method for tracking the pattern of employee
promotions up through and organization.
Markov Analysis for a Retail Company
Forecasting Internal Labor Supply
Skill Inventories
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Databases of employee KSA’s, education, and used to
match job openings with employee backgrounds.
Succession Planning
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The process of identifying, developing, and tracking key
individuals for executive positions.
Listings of current jobholders and persons who are
potential replacements if an opening occurs.
Succession Planning
Staffing Actions
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Recruiting new employees
Developing existing employees
Retaining key employees
Restructuring or redeployment
Outsourcing functions
Using contingent employees
Reassigning shifts