STAFFING THE
ORGANIZATION
Human Resource Planning
Overview
 How HRP Relates to Organizational Planning
 Linking HRP to the Business Strategy
 Steps in HRP Process
 Tools and Techniques of HRP
 Time Frame of HRP
 Common Pitfalls in HRP
HRP Defined
 Human Resource Planning is the process of
systematically reviewing HR requirements to
ensure that the required number of
employees, with the required skills, are
available when needed
Relationship to Organizational
Planning
 Derived from long-term operational plans of
organization
 Seeks to identify various HR factors critical
to success of organization
 Should provide for




Clear statement of organization’s mission
Commitment of staff members to mission
Explicit statement of assumptions
Plan of action
HRP Link to the Business Strategy
 Be familiar with the business strategy.
 Ensure that all traditional human resource
programs are satisfying the needs of senior
and functional management.
 Identify the human resource implications of
the organization’s business strategy.
Source: G. Christopher Wood, “Planning for People” (letters to the editor), Harvard Business Review, November-December 1985, p. 230;
David R. Leigh, Business Planning Is People Planning,” Personal Journal, May 1984, pp. 44-54.
Linking HRP to the Business Strategy
 Identify those human resource issues that may
affect business objectives, and notify the
appropriate functional managers.
 Convert business objectives into human resource
objectives that can provide the foundation for a
strategic human resource plan.
 Review the strategic-planning process to identify
new opportunities to involve human resource
personnel.
Steps in the HR Planning Process
|
Cascade Approach to Setting Objectives
|
Source: Redrawn from
Anthony P. Raia,
Managing by Objectives
(Glenview, IL: Scott
Foresman and Company,
1974), p. 30. Reprinted by
permission of the author.
Methods Used to Forecast HR
Planning Needs
 Managerial estimates
 Delphi techniques
 Scenario analysis
 Mathematical methods
 Judgmental forecasts
 Benchmarking
Some Statistical Modeling Techniques
Used to Forecast HR Needs
Technique
1.Time
series
analysis
2.Personnel
ratios
Description
Past staffing levels (instead of workload indicators) are used to project
future human resource requirements. Past staffing levels are examined
to isolate seasonal and cyclical variations, long-term trends, and random
movements. Long-term trends are then extrapolated or projected using
a moving average, exponential smoothing, or regression technique.
Past personnel data are examined to determine historical relationships
among the number of employees in various jobs or job categories.
Regression analysis or productivity ratios are then used to project either
total or key group human resource requirements, and personnel ratios
are used to allocate total requirements to various job categories or to
estimate requirements for non-key groups.
Source: Lee Dyer, “Human Resource Planning,” in Personnel Management, ed. Kendrith
M. Rowland and Gerald R. Ferris (Boston: Allyn & Bacon, 1982), p. 59.
Some Statistical Modeling Techniques
Used to Forecast HR Needs (Continued)
Technique
Description
3. Productivity Historical data are used to examine past levels of a productivity index,
ratios
Workload
P=
Number of people
Where constant, or systematic, relationships are found, human resource
requirements can be computed by dividing predicted workloads by P.
4. Regression Past levels of various workload indicators, such as sales, production levels, and
analysis
value added, are examined for statistical relationships with staffing levels.
Where sufficiently strong relationships are found, a regression (or multiple
regression) model is derived. Forecasted levels of the related indicator(s) are
entered into the resulting model and used to calculate the associated level of
human resource requirements.
Source: Lee Dyer, “Human Resource Planning,” in Personnel Management, ed. Kendrith
M. Rowland and Gerald R. Ferris (Boston: Allyn & Bacon, 1982), p. 59.
Organizational & HR Planning
|
Some Tools to Aid HRP
 Skills and management inventories
 Commitment manpower planning (CMP)
 Ratios and use of vitality index (OVI)
analysis
Skills Inventory Form
Used by PPG Industries
|
Simple Org. Replacement Chart
|
Source: D. L. Chicci,
“Four Steps to an
Organization/Human
Resource Plan,”
Personnel Journal,
June 1979, p. 392.
Factors Affecting the Time Frame of HRP
Forecast
Factor
Demand
Supply
Short Range
(0-2 Years)
Intermediate Range
(2-5 Years)
Long Range
(Beyond 5 Years)
Authorized
Operating needs from
employment including budgets and plans
growth, changes, and
turnover
In some organizations, the
same as “intermediate”; in
others, an increased
awareness of changes in
environment and
technology— essentially
judgmental.
Employee consensus
less expected losses
plus expected
promotions from
subordinate groups
Management expectations
of changing characteristics
of employees and future
available human resources.
Human resource vacancies
expected from individual
promotability data derived
from development plans
Numbers and kinds of Numbers, kinds, dates and Management expectations
employees needed
levels of needs
of future conditions
affecting immediate
Source: Adapted from J. Walker, “Forecasting Manpower Needs,” in Manpower Planning and
Programming, ed. E. H. Burack and J. W. Walker (Boston: Allyn & Bacon, 1972), p. 94.
decisions.
Net
needs
Common Pitfalls in HRP
 Lack of top management support
 Size of initial effort
 Coordination with other management and
HR functions
 Integration with organizational Plans
Common Pitfalls in HRP, cont
 Quantitative vs Qualitative approaches
 Noninvolvement of operating managers
 The techniques trap
Questions