A framework for HRM analysis

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OHT 5.1
Human Resource Planning
• HRP & MPP – is there a difference?
• Hard v. Soft HRP
• HRP is the process for identifying an
organisation’s current and future human
resource requirements, developing and
implementing plans to meet these
requirements and monitoring their overall
effectiveness
Human Resource Management, 4th Edition
© Pearson Education Limited 2004
OHT 5.2
Demand forecasting
• Objective methods
– Time trends
– Ratio analysis
– Work study
• Subjective methods
– Managerial judgement
– Delphi technique
• Budgets
Human Resource Management, 4th Edition
© Pearson Education Limited 2004
OHT 5.3
Supply forecasting – quantitative
methods
• Labour turnover index
No. of leavers in a specified period
x 100%
Average no. employed in same period
• Stability index
No. of employees with 1 year’s service x 100%
No. employed 1 year ago
• Census method
• Survival rate
Human Resource Management, 4th Edition
© Pearson Education Limited 2004
OHT 5.4
Supply forecasting – qualitative
methods
•
•
•
•
Exit interviews
Leaver questionnaires
Attitude surveys
Risk analysis
Human Resource Management, 4th Edition
© Pearson Education Limited 2004
OHT 5.5
Figure 5.3 Employee ‘movements’ in an organisation
Human Resource Management, 4th Edition
© Pearson Education Limited 2004
OHT 5.6
Reconciling supply and demand
• If demand exceeds supply:
– Increase external supply
– Increase internal supply
– Reduce demand
• If supply exceeds demand:
– Decrease supply
– Discourage retention
– Increase demand
Human Resource Management, 4th Edition
© Pearson Education Limited 2004
OHT 5.7
Figure 5.5 HRP – A contemporary approach
Source: Adapted from Armstrong (2001) A Handbook of Human Resource
Management Practice, p. 363. Reprinted with permission of Kogan Page.
Human Resource Management, 4th Edition
© Pearson Education Limited 2004
OHT 5.8
Variants on HRP
•
•
•
•
•
Micro-planning
Contingency planning
Succession planning
Skills planning
Soft human resource planning
Human Resource Management, 4th Edition
© Pearson Education Limited 2004
OHT 5.9
Advantages and disadvantages
of HRP
• Advantages:
– Can help reduce uncertainty
– Integration of HR policies and practices
– Can build flexibility
• Disadvantages:
– Difficult to forecast in turbulent times
– Plans are inaccurate due to lack of personnel
data and/or clear business plan
Human Resource Management, 4th Edition
© Pearson Education Limited 2004
OHT 5.10
Explanation for lack of empirical
evidence of HRP
• Planning seen as too problematic in
changing environment
• Low organisational priority + weak HR
function = inadequate resources
• Preference for pragmatism
• Research is over-theoretical and fails to
recognise much HRP activity
Human Resource Management, 4th Edition
© Pearson Education Limited 2004
OHT 5.11
HRP and Strategic HRM
• Planning is critical to strategy because it
identifies:
– Gaps in capabilities that would prevent
successful implementation
– Surpluses in capabilities that suggest
opportunities for improving efficiencies and
responsiveness
– Poor utilisation of highly valued organisational
resources
Lam & Schaubroeck, 1998: 5
Human Resource Management, 4th Edition
© Pearson Education Limited 2004
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