TOPIC 2:
HUMAN RESOURCES PLANNING
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HUMAN RESOURCES PLANNING (HRP)
INTRODUCTION
• In an ideal world managers plan their human
resources just as they plan any other resources.
• This is done to ensure that they have the required
number of people in the right place at the time to
deliver organization's strategic plan.
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THE MEANING AND PURPOSE OF HRP
DEFINITIONS
Human resources planning sometimes referred to
as workforce planning, manpower planning or
personnel planning
• Is a systematic and continuing process of analyzing
an organization’s human resources needs under
changing conditions and developing human
resources policies appropriate to the longer-term
effectiveness of the organization.
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Cont…
• Is the process of anticipating and making
provision for the movement of people into, within
and out of the organization.
• Movement into: Through (recruitment)
• Movement within: Through (transfer, job recategorization, promotion and demotion),
• Movement out: Through
firing, death, etc).
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(retiring, resigning,
Cont…
• These are done to enable the organization
maximize the utilization of its human resources
by ensuring that the right number of people of
the right abilities are available to perform right
jobs at the right time.
• It is an integral part of corporate planning and
budgeting procedures since human resource
costs and forecasts both affect and are affected
by longer-term corporate plans.
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KEY ASPECTS OF HRP
• It is a continuing process, because of the
surrounding dynamic environment
• It is both short term and long term but with
emphasis on longer term survival
• Linked to corporate planning process, since this
will determine the organizations policies and
priorities which in turn will be affected by the
availability of human resources
• The level of resources depends on what can be
afforded
• The resources should be at a level required for
organizational effectiveness
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PURPOSES OF HUMAN RESOURCES PLANNING
The main reasons to undertake HRP is to ensure that
the organization is able to;
• Attract and retain staff in sufficient numbers and
appropriate skills to be able to operate
effectively for attaining corporate objectives
• Utilize fully the staff employed
• Provide training and development necessary to
its employees for effective performance in their
current roles .
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Cont…
•
•
•
•
Anticipate and meet changes in the demand for
labor/manpower supply
Meet future human resources requirements from
its own internal resources
Ensure that equal opportunities for promotion
and development are available to all staff
Keep control over human resources costs and
effectively anticipate the staffing costs of any
new activity.
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FACTORS INFLUENCING HRP
There are internal and external factors that influence
human resources planning in organizations. These
are:-
Internal Factors
• Organizational objectives: Performance of general
and specific objectives need people. The processes
to attain these also relate to number of people.
Decisions are made to recruit either additional or
reduced number of staff to meet these objectives.
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• The nature of work:
The nature of work influences human resources
planning.
• Leadership style: Supervisors’ or managers'
leadership style (knowledge, experiences, etc)
determines the number of employees necessary
to execute a particular task.
• Work group dynamics: These influence HRP. For
example, if a group member is transferred, the
dynamics of his/her group need be considered.
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External Factors
• Government
policies:
May
stipulate
requirements or regulations for carrying out
particular activities. e.g. NBAA-CPA for an
accountant.`
• Economic conditions: Influence planning for
employment. For example, economic crash deactivates economy and hence constrains
employment.
• Labour market conditions: The generally
changing labour market has influence on
particular professions.
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• Trade unions:
These can set specific requirements as regards the
number and type of employees for particular
tasks.
• Technological changes: Are causing a shift from
employing manual labour to IT expertise and
hence influence human resources planning. e.g.
few use of typewriters nowadays.
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HUMAN RESOURCES PLANNING PROCESS
Includes two main steps which are needs
forecasting and programme planning.
I:NEEDS FORECASTING
The process of predicting for the organization's
future demand for human resources. Achieved
through three analyses. External environmental
constraints, future human resources demand
and future human resources supply.
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Analysis of external environmental constraints
This assesses the impacts of the technological,
social, political, legal and demographic elements on
origination's future human resources demands.
• Technological factors: Despite their rapid
changes, these have to be assessed as they
globally affect the market of some jobs.
• Economic factors: Changes on fiscal policies,
living costs, unemployment etc. have impacts on
manpower requirements of an organization.
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• Social factors:
Social programmes in the organization's
community or country may for example require
the organization to consider some jobs for the
community groups.
• Political factors: The country’s political stability
may affect the manpower need of an
organization.
• Legal factors: Country's present labour laws may
be a catalyst or a constriction for effective labour
supply.
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Future demand analysis
Involves analyzing the organization structure,
job designs, plans, budgets, management policies
and technology and use these to determine future
human resources demanded.
• Organization structure: Changes in it can either
lead to an increase or reduction in the demand of
human resources.
• Job designs: Changes in these normally disturb
human resources positions. e.g. Job enlargement
reduce employees while job simplification
increase number of jobs hence more employees.
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• Plans, budgets, management policies:
If these are favorable, they encourage planning
for recruitment and if are poor and squeezed,
they discourage recruitment and promotion.
Future supply analysis
This considers assessment of the internal and
external factors as they affect both the internal and
external supply market. It assesses:-
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• The internal human resources inventory:
Looks on the current number, skill levels and
relevance of employees in an organization.
The internal variables considered include:• Organization's strategic plan for adding or closing
facilities
• The organization's plan to add or drop product /
service
• Attrition/slow destruction during the period
• Effects of employee training and development
programme.
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• External human resources supply
This involves assessment of the external sources of
future manpower demanded.
Variables to be considered include:• Immigration in and out the area
• Current graduates from colleges, universities etc.
• Changing workforce patterns
• Technological developments and shifts
• Behaviour of competing employers
• Government laws and regulations
• Security situations surrounding the nation
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B:PROGRAMME PLANNING
Once the future human resources needs are
determined, the programme planning part is
then done. This involves performance management
planning and career management.
• Performance management
Planning for broader organizational matters. These
include performance standards, quality of work life,
core human resources management programmes
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• Career management
Involves planning for recruitment policies and
systems through: recruitment, selection, training,
management succession.
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METHODS OF HUMAN RESOURCES FORECASTING
Future human resources needs can be forecasted
through different methods as follows.
• Time series analysis
In this, past staff levels are used to project future
staff requirements. Past staff levels are analyzed to
isolate seasonal variations, long term trends and
random movements. Long term trends are then
projected using moving averages or regression
techniques.
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• Stochastic models
These are commonly used by organizations such as
government contractors and consultancies in which
their human resources is derived from many
projects.
Issues that are used in determining human
resources are:• Varied probabilities of securing each project
• Uncertainties about pending project start-up date
• Uncertainties of the required manpower over life
cycle of a project
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• Regression/correlation models
These are used where the level of manpower
required depends on production, sales and unit
cost factors.
In practice, past levels of various workload
indicators as mentioned above are examined to
establish their statistical relationships with
staffing levels.
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• Extrapolation
This is a method of estimating future employment
needs by extending past rates of change into the
future.
For example: 4 sales persons on average were
employed per month in the past two years, after
extrapolating this trend we expect 4 * 12 or 48
sales persons to be employed next year.
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• Personnel ratios
Personnel data are examined to determine
historical relationships among the number of
employees in various jobs/categories.
Regression analysis or productivity ratios are then
used to project the total or key group staff
requirements.
Then personnel ratios are used to allocate total
requirements to various job categories.
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• Delphi techniques
In this, each member of a panel of experts
independently estimates the future human
resources demands. Then an intermediary presents
each expert’s forecast to others.
This process continues until some consensus
estimate is attained.
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• Managerial estimates
Basically, these are judgmental methods by
managers to make estimates of future staff
requirements.
Three approaches are used.
• Top level managers make estimates and pass them
to lower level managers.
• Supervisory/lower level managers make estimates
and pass them up to top level managers.
• Or the estimates are conceived through a
participatory process involving top and lower level
managers.
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• Succession analysis
This analysis rely on use of replacement charts.
Replacement charts are succession plans developed
to identify potential human resources changes,
identify back up candidates and consider attrition
for each department.
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Replacement charts
A replacement chart is a visual representation of
which employee will replace whom in case of a job
opening. (Refer to Figure 1).
It shows various jobs in the organization and the
status of their potential candidates.
The replacement depends on current employee
performance and his/her promotability both
determined by his her supervisor's appraisal.
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Replacement charts
CEO: Joseph Mbando (63)
A1: D. Kiponzi (53)
B1: W. Yombo (55)
Chief Auditor: B. Athumani (57)
A1; M. Parandya(51)
B2: J. Khalid (43)
DHR: L. Swai (50)
DIS: A. Kaiza (51)
A2: H.Luhaga (49)
A1: U. Ellia (42)
B3: R. Msema(42)
DFN: S. Kajinge
(44)
DMK: A. Mambo
(54)
B1: H. Katto
A2: M. Kessy (42)
B2: S. Jumaa
A3: T. Minga (35)
Figure 1
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Key
A – Ready for promotion
B – Requires more experience
C – Unsuitable for Job
1. Excellent performance
2. Acceptable performance
3. Poor performance
4. Unacceptable performance
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Advantages of Replacement Charts
• It maintains stability, the organization does not
have to fumble when an employee leaves his/her
job position
• It gives ample time to gradually develop the
identified successor
• It boosts employee’s working morale
• It reduces power struggle among employees
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OVERSTAFFING
Definition
Overstaffing is a situation whereby an organization
carries many employees in relation to the available
amount of work to be done.
This is a problem to effective performances in an
organization. Therefore organizations are to do
human resources planning to avoid this problem.
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Symptoms of overstaffing
The following are the common symptoms that
indicate existence of overstaffing problem in an
organization.
• Idleness
• Gossiping
• Failure to accomplish organizational goals
• Role ambiguity
• Absenteeism
• Organizational politics
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Measures to overcome overstaffing
• Doing job analysis to establish job categories and
their respective positions
• Negotiate job re-categorization to reduce
overstaffed jobs
• Retrench employees not willing to be
re-categorized
• Redesign jobs to ensure that employees are
adequately utilized.
• Retain core overstaffed employees but adopt
strategies of increasing output to accommodate
employees.
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PROBLEMS FACING HUMAN RESOURCES PLANNING
HRP is more complex than planning other resources.
This causes a challenge to it since:• People are unpredictable, they can easily upset
planning through resigning, being sick, refusing to
do certain things, etc.
• People are all different ,so it is difficult to produce
policies and approaches that are equally
appropriate to all.
• Organization's requirement is not for homogenous
human resources but for heterogeneous such as
Accountants, Secretaries, Lawyers, etc.
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cont…
•
•
•
Unlike other resources, human resources exit
cannot be done at a stroke of a pen and human
resources entry is time consuming and costly.
While other resources like money can be kept in
a safe, people need offices, car parks, canteen,
etc.
Other challenges include lacking top
management support, insufficient funds,
shortage of experts, poor information base, etc.
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