Lecture 3
Human resource planning in a
changing environment
Introduction
Human Resource Planning:
‘The bridge between HR strategies and HR functions is the
formulation of human resource plans that incorporate the
desired outcomes of HR strategies, are responsive to
continual changes in dynamic national and global industry
environments, and can be implemented through efficient and
effective HR functions...’
(Nankervis, Compton, Baird & Coffey 2011, p.120)
Human Resource Planning
• Ensure organisational objectives are met through effective
utilisation of human resources
• Considerate of changing circumstances within and outside
the organisation
• Is an ongoing process, focused on the long-term
• Cognisant of contemporary changes in both internal and
external environments
• A series of processes, with long-, medium- and short-term
contingency options
• Based upon efficient, effective and user-friendly HRIMS
Strategic alignment
Human resource planning (HRP)
• Sometimes called ‘workforce planning’
– translates the organisation’s objectives
– ensures that organisations have the right people in the right place,
with the right skills, at the right time and at the right place
– translates organisational plans into HR plans that guide the long-term
acquisition, use and development of intellectual capital and
knowledge assets
Group discussion
Discuss the following statement: ‘Strategic
HRP is impossible given the dynamism and
complexity of the global economy and with
the short-term perspectives of most
companies and governments’.
HRP and strategic
organisational planning
• Determination of necessary labour requirements (demand)
• Prediction of likely sources (supply)
• Environmental scanning
• Evaluation of strengths and weaknesses
• Development of objectives and goals
• Formulation of suitable strategies
Approaches to SHRP
Effective integration of HR and
strategic plans
• Depends on many factors including:
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nature and stage of organisation
organisational size
history, culture and philosophy
nature of business strategies
location and level of the HR function
values and skills of senior HR managers
Group discussion
Discuss the following statement:
‘Talent management and talent retention are
the only priorities for HR planners in today’s
organisations’.
A model of strategic human resource
management
Group discussion
Following the recent global financial crisis,
which HRM issues should HR professionals
be focusing on to ensure their organisations’
sustainability?
The process of HRP
Labour demand forecasting
Labour supply analysis (internal and external sources)
Balancing supply and demand
Staffing strategies to meet organisational needs
Labour demand forecasting
• Estimating in advance the number and type of
employees required
• Complex or simple techniques can be used
• Dependent upon:
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expertise of HR
complexity of organisational structures
market factors
external environment
Group discussion
Consider the nature of the future fast food or
retail industries workforces. Is there likely
to be more or less employees, ore highly-
skills or less skills staff, and/or greater use
of technology to replace labour?
Labour supply analysis
• Determining if labour requirements are available:
– when and where needed?
– internal or external sources?
– internal supply analysis
– skills inventory
Group discussion
Consider the relative advantages and
disadvantages of global versus local labour
markets in relation to an organisation of your
choice.
Human resource information
management systems (HRIMS)
• Originally manual
• Increasingly complexity of legislation
• Payroll systems
• Development of flexible and comprehensive systems
• Increasingly computerised and information technology
focused
• Strategic tool for HR planning and cost-effective HRM
A model of strategic HRP using
HRIMS
Benefits and features of HRIMS
• Improved planning and program development
• Faster information processing
• Improved response times
• Decreased administrative and HR costs
• Accuracy of information
• Enhanced communication at all levels
Types of HRIMS data
Aggregated data on all aspects of the employment relationship
including:
• Administrative
– industrial awards, HR policies, salary, leave…
• Operational
– personal and job histories, records on recruitment and
selection…
• Strategic reasons
– all the above plus wastage, staff positions, labour market
trends…
The role of HR information in the HR
strategic planning process
‘Ownership’, confidentiality and
privacy of HRIMS data
• Who has access?
– keys and codes
• Protection of data
• Ethical issues
• Outsourcing
• Data ownership
• Freedom of Information legislation versus Privacy
legislation
Successful HRIMS
• Accurate employee and job data
• Flexible and adaptable
• Clear link with and contribution to HR plans
• Modular and integrated
• Clear control of HR costs
External supply
• Considered when:
– lack sufficient internal supply
– entry-level positions
• Influenced by many complex factors
• Other options?
The external environment
• Crucial success factors include:
– recruiting and retaining skilled employees
– increasing customer satisfaction
– employing and developing leaders
– sustaining a competitive advantage
– managing risk
– managing change and corporate culture
– becoming an innovative organisation
Group discussion
Argue the cases for:
1. Maintaining an HRIMS wholly within the organisation
2. Integrated HRIMS, including internal and external
service providers
3. An entirely ‘outsourced’ HRIMS
Human resource planning
Drawbacks
Benefits
• Time-consuming
• Better match between employee
and organisational objectives
• Difficult/complex
• Costly
• Increased productivity and
profitability
• Inadequate support
• Better integration
• Obstruction
• Timely staffing and skill
requirements
Summary
Effective HRP
• Management commitment
• Importance placed on human resources
• Links between external and internal environments and
organisational strategies
• Effective linkages between HRP and HRM
• Adequate staff, time and resources
• Effective HR information systems