MHR 523 Chapter Notes - Chapter 3: Succession Planning, Delphi Method, Markov Chain
28 Jun 2018
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MHR Chapter 3 - Human Resource Planning
Human Resource Planning (HRP)- a process used to determine future human
resource requirements by anticipating future business demands, analyzing the
impacts of these demands on the organization, and making decisions on how to
effectively acquire and utilize firm’s human resources
Identifies what human resources are needed to ensure that the organization
can respond to change and provide resource plans to help the organization
respond effectively
Ensuring the organization has the right people with the right skills at the
right time
An organizations strategic plan involves a primary mission, new business
acquisitions, divestiture of current business units, or new ways of doing business
Five Stages of planning from a very basic approach to more robust planning
activities - figure 3-2 pg. 89
Stage one - companies not engaged in any form of planning, recruitment and
training are considered an after thought (i.e. small family owned business)
Stage Two - engage in some long-term business planning, minimal HR. Planning is
static and of little importance
Stage Three - engage in moderate planning activities, create longer term forecasts.
Still do not integrate their people planning efforts into long-term business plan
Stage Four and Five - advanced in terms of planning, long range HR planning. HR
planning is core process and priority. Plan if formal, flexible and dynamic, adjusts to
change and circumstances. Stage 5 organizations utilize robust evaluation tools and
advanced technology to create long-term plans.
The Human Resource Planning Process
1. Forecast demand for Resources
Forecasts demand by looking at the many factors that cause a labour
need to exist and uses various forms of forecasting techniques
How many resources will we need? When will we need them? Where
will we need them?
2. Assess Supply of Resources
Assesses internal and external supply of labour
What resources do we have available and what skills/competencies
do these resources possess?
3. Develop HR Objectives
What the planners expect to accomplish as a result of their actions
find more resources at oneclass.com
find more resources at oneclass.com
Carry out an analysis to determine the differences between demand
and supply, and write objectives that will determine the choice of
programs
4. Design and Implement HR Programs to Balance Demand & Supply
Decide what type of HR programs will be developed to achieve
objectives
Attempt to balance demand and supply
5. Establish Program Evaluation
Important to evaluate its effectiveness
Is there a tangible link between investments in HR programs and
organizational sustainability and to what degree?
Causes of increased demand for human capital: External, Organizational, and
Workforce
External Challenges
Economic developments - developments are difficult for HR specialists to
predict in the short run and almost impossible to estimate in the long-run
Social-political-legal changes - easier to predict. As demographics change so
do employee attitudes
Technological changes - difficult to predict, affects both demand for and
supply of HR. Can reduce employment in one department while increasing it
in another
Competitors - employment in some tradition sectors barely grows because of
foreign competition and push for productivity improvement. High-tech
industries competition causes lower prices, larger markets and additional
employment
Organizational Decisions
Strategic Plan - determine the numbers and types of employees needed in the
future
Budgets - increases or cuts are the most significant short-run influence on HR
needs
Sales and production forecasts - less exact than budgets, quicker notice of
short-run changes in HR demand
New ventures - new HR demands, allow to develop short-run and long-run
employment plans
Organizational and job design - changes in structure may have major
implications for HR needs
Workforce Factors
Modified by employee actions: retirement, resignations, terminations, deaths,
leaves of absence all increase the needs for HR
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
Identifies what human resources are needed to ensure that the organization can respond to change and provide resource plans to help the organization respond effectively. Ensuring the organization has the right people with the right skills at the right time. An organizations strategic plan involves a primary mission, new business acquisitions, divestiture of current business units, or new ways of doing business. Five stages of planning from a very basic approach to more robust planning activities - figure 3-2 pg. Stage one - companies not engaged in any form of planning, recruitment and training are considered an after thought (i. e. small family owned business) Stage two - engage in some long-term business planning, minimal hr. Stage three - engage in moderate planning activities, create longer term forecasts. Still do not integrate their people planning efforts into long-term business plan. Stage four and five - advanced in terms of planning, long range hr planning.
