Human Resource Planning:
Importance and Purpose
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Shortage of qualified resources to fill jobs
Wider span of retirement options
Need for life-long learning
Resistance of employees to change and
organizational demand for it
• Reduce personnel costs by anticipating
shortages and surpluses
• Provide informed base for planning employee
development
• Provide equal opportunities
Levels of Strategic Planning
• Corporate level:Board of Directors, CEO,
Vice Presidents
• Business Level
– Product Division 1
– Product Division 2
• Functional Level
– HR Division, Marketing Division, Finance, etc
Link to Organizational
Strategy
• How do HR decisions affect external
standards (EEO compliance, OSHA,
community relations)?
• How do HR decisions affect internal
standards? Do financial markets
react to HR decisions, e.g., layoffs,
hiring, training?
Human Resource Department
& Assessing Added Value
• Stakeholder opinions and
perceptions
• Auditing human resource activities
• HR budgets
• Activity, cost or headcount ratios
• Human resource accounting -putting a $$ value on HR activities
• Human Resource competencies
Human Resource Plan
Organizational
Goals
HR Needs
Forecast
HR Availability
Projections
Monitor
Results
Implement
Program
Employee
Information
Generate,Test
Alternatives
Analysis of
HR Gaps
Employment Planning
• Demand analysis
• Linking business plans to hr
requirements
• Internal supply analysis
• External supply analysis
• Reconciling Supply and demand
• Activities for shortages and
surpluses
Human Resource Planning
Process
External Environment
Internal Environment
Strategic Planning
HR Planning
Forecasting
HR
Requirements
Comparing
Requirement
& Availability
Forecasting
HR
Availability
Human Resource Planning
Process, Cont.
Comparing
Req’s &
Availability
Demand =
Supply
Surplus of
Workers
Shortage of
Workers
Status
Quo
Retirement
Layoff
Downsize
Hire
Overtime
Replacement Chart
Manager Training & Dev.: Ms. Jones
Candy Kane: 0
Austin Ford: 0
Mark Time:2
P. Button: 1
E. Silver: 2
C. Kane:
Development
Readiness Code
0= ready now
1=ready 1 yr.
2=ready 2 yrs
M. Monroe: 0
J. Russell: 0
S. Temple: 1
M. McGuire: 0
S. Sosa: 1
A. Ford:
Training.
M. Time:
Labor Rel.
Backwards & Forwards
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Summing up — Today we explored the links
between organizational strategy and Human
Resource Planning, at bench marks for the HR
Department and at techniques of employment
planning but for expansion and for downsizing
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Looking ahead: Next time we take an in-depth look
at Human Resource Information Systems. What
types of information are typically stored, how these
types of information can be used to identify problems
and to make informed decisions.