Transcript Human Resource Management, 7e (Byars, Rue)
STAFFING THE ORGANIZATION
Human Resource Planning
Overview
How HRP Relates to Organizational Planning Linking HRP to the Business Strategy Steps in HRP Process Tools and Techniques of HRP Time Frame of HRP Common Pitfalls in HRP
HRP Defined
Human Resource Planning is the process of systematically reviewing HR requirements to ensure that the required number of employees, with the required skills, are available when needed
Relationship to Organizational Planning
Derived from long-term operational plans of organization Seeks to identify various HR factors critical to success of organization Should provide for Clear statement of organization’s mission Commitment of staff members to mission Explicit statement of assumptions Plan of action
HRP Link to the Business Strategy
Be familiar with the business strategy.
Ensure that all traditional human resource programs are satisfying the needs of senior and functional management.
Identify the human resource implications of the organization’s business strategy.
Source: G. Christopher Wood, “Planning for People” (letters to the editor), Harvard Business Review , November-December 1985, p. 230; David R. Leigh, Business Planning Is People Planning,” Personal Journal , May 1984, pp. 44-54.
Linking HRP to the Business Strategy
Identify those human resource issues that may affect business objectives, and notify the appropriate functional managers.
Convert business objectives into human resource objectives that can provide the foundation for a strategic human resource plan.
Review the strategic-planning process to identify new opportunities to involve human resource personnel.
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Steps in the HR Planning Process
Cascade Approach to Setting Objectives
| Source: Redrawn from Anthony P. Raia, Managing by Objectives (Glenview, IL: Scott Foresman and Company, 1974), p. 30. Reprinted by permission of the author.
Methods Used to Forecast HR Planning Needs
Managerial estimates Delphi techniques Scenario analysis Mathematical methods Judgmental forecasts Benchmarking
Some Statistical Modeling Techniques Used to Forecast HR Needs
Technique
1.Time
series analysis 2.Personnel
ratios
Description
Past staffing levels (instead of workload indicators) are used to project future human resource requirements. Past staffing levels are examined to isolate seasonal and cyclical variations, long-term trends, and random movements. Long-term trends are then extrapolated or projected using a moving average, exponential smoothing, or regression technique.
Past personnel data are examined to determine historical relationships among the number of 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 allocate total requirements to various job categories or to estimate requirements for non-key groups.
Source: Lee Dyer, “Human Resource Planning,” in Personnel Management , ed. Kendrith M. Rowland and Gerald R. Ferris (Boston: Allyn & Bacon, 1982), p. 59.
Some Statistical Modeling Techniques Used to Forecast HR Needs (Continued)
Technique Description
3. Productivity ratios 4. Regression analysis Historical data are used to examine past levels of a productivity index, Workload
P
= Number of people Where constant, or systematic, relationships are found, human resource requirements can be computed by dividing predicted workloads by
P
.
Past levels of various workload 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 related indicator(s) are entered into the resulting model and used to calculate the associated level of human resource requirements.
Source: Lee Dyer, “Human Resource Planning,” in Personnel Management , ed. Kendrith M. Rowland and Gerald R. Ferris (Boston: Allyn & Bacon, 1982), p. 59.
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Organizational & HR Planning
Some Tools to Aid HRP
Skills and management inventories Commitment manpower planning (CMP) Ratios and use of vitality index (OVI) analysis
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Skills Inventory Form
Used by PPG Industries
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Simple Org. Replacement Chart
Source: D. L. Chicci, “Four Steps to an Organization/Human Resource Plan,”
Personnel Journal
, June 1979, p. 392.
Factors Affecting the Time Frame of HRP
Forecast Factor Short Range (0-2 Years) Intermediate Range (2-5 Years) Long Range (Beyond 5 Years)
Demand Supply Authorized employment including growth, changes, and turnover Operating needs from budgets and plans In some organizations, the same as “intermediate”; in others, an increased awareness of changes in environment and technology — essentially judgmental.
Employee consensus less expected losses plus expected promotions from subordinate groups Human resource vacancies expected from individual promotability data derived from development plans Management expectations of changing characteristics of employees and future available human resources.
Net needs Numbers and kinds of employees needed Numbers, kinds, dates and levels of needs Source: Adapted from J. Walker, “Forecasting Manpower Needs,” in Manpower Planning and Programming , ed. E. H. Burack and J. W. Walker (Boston: Allyn & Bacon, 1972), p. 94.
Management expectations of future conditions affecting immediate decisions.
Common Pitfalls in HRP
Lack of top management support Size of initial effort Coordination with other management and HR functions Integration with organizational Plans
Common Pitfalls in HRP, cont
Quantitative vs Qualitative approaches Noninvolvement of operating managers The techniques trap