CANADIAN HUMAN RESOURCE MANAGEMENT
Eleventh Edition
Human Resource
Planning
chapter
three
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Eleventh Edition
Learning Objectives
1. Explain the importance of human resource plans for strategic success.
2. Describe the Human Resource Planning Process.
3. Discuss methods for estimating an organizations demand for human
resources.
4. Explain the various methods of estimating a firms supply of human
resources.
5. Identify solutions to shortages or surpluses of human resources.
6. Discuss the major contents of a human resource information system
(HRIS).
7. Explain how HRIS has contributed to enhancing HR service delivery.
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Human Resource Planning
Forecasts an organizations future demand for and supply
of employees, and matches supply with demand
HR department contributes to success:
Proper staffing is critical
Different strategies require varying HR plans
HR planning facilitates proactive responses
Successful tactical plans require HR plans
HR planning can vary (Levels 1-5)
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Relationship Between Strategic and
Human Resource Plans
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Human Resource Planning
Human resource planning can vary from capturing basic
information to a more sophisticated approach
Stage 1: No formal planning
Stage 2: Minimal; focus on headcount
Stage 3: Long term forecasts
Stages 4 & 5: HRP is a core strategic process
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The 5 Levels of Planning Activities
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The Human Resource Planning Process
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Forecasting: Identifying the Causes that
will Drive Demand
Demographic Impacts
Turnover
Legal Changes
Technological Changes
Competitors
Strategic Plan
Budgets and Revenue Forecasts
New Ventures
Organizational and Job Design
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Forecasting Techniques for Estimating
Human Resource Demand
Expert Trend Other
Informal and instant Extrapolation Budget and planning
decisions analysis
Formal expert survey Indexation New-venture analysis
Delphi technique Statistical Predictive models
analysis
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Trend Projection Forecasts
Extrapolation
Extending past rates of change into the future
Indexation
Matching employment growth with an index e.g. ratio
of production employees to sales
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Other Forecasting Methods
Budget & Planning Analysis
Organizations that need HR planning generally have
detailed budgets and long-range plans
New Venture Analysis
Planners estimate human resource needs by making
comparisons with similar operations
Computer-Based Simulation and Predictive Models
More sophisticated approaches
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The Supply of Human Resources: Internal
Supply Estimates
Skills Inventories
Summary of worker skills and abilities
Management and Leadership Inventories
Reports of management capabilities
Replacement Charts
Lists of likely replacements for each job
Replacement Summaries
Lists of likely replacements for each job and their relative
strengths and weaknesses.
Transition Matrices & Markov Analysis
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The Supply of Human Resources:
External Supply Estimates
Labour Market Analysis
Study of the firms labour market to evaluate the present
or future availability
Community Attitudes
Affects nature of the labour market
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The Supply of Human Resources:
External Supply Estimates
Demographic Trends
Affects the availability of external supply
HRSDC publishes labour force projections
Statistics Canada publishes reports
Canadian Occupational Projection System (COPS)
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Summary of HR Tools used to Estimate
Internal and External Supply of Labour
Internal Supply External Supply
Indicators Indicators
Human Resource Audits Labour market analysis
Skill inventories Community attitudes
Management inventories Demographic trends
Replacement
charts/summaries
Transition matrices &
Markov analysis
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Strategies to Manage an Oversupply of
Human Resources
When the internal supply of workers exceeds the firms
demand, a surplus exists. There are various HR strategies:
Headcount reduction
Layoffs
Leave without pay
Termination
Outplacement procedures
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Strategies to Manage an
Oversupply of Human Resources
Attrition
Hiring freeze
Early and phased retirement officers
Incentives for voluntary separation
Alternative Work Arrangements
Job sharing
Using part-time employees
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Strategies to Manage
a Shortage of Employees
Labour shortage
Hire Source Develop Employees Existing Work
Employees Service Internally Arrangements
Providers
Full-time Independent Replacement charts Overtime
Part-time Contractor Succession planning Flexible schedules
Third Party Career Development Flexible time and
Outsource Float & transfer location
Crowdsource Flex policies
Alternative Staffing Strategies
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Strategies to Manage
a Shortage of Employees
Hire Employees
e.g. Full-time; part-time
Source service providers
e.g. independent contractor/consultants/outsource/crowdsourcing
Develop employees internally
e.g. replacement charts; succession planning
Create existing work arrangement
e.g. overtime, flexible schedules
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Staffing Option #1:
Hire Employees
Hire part-time workers
Popular strategy for meeting human resource needs
Hire full-time employees
Where internal transfer or promotion is not feasible,
hiring full-time employees may be required
Results in additional fixed cost
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Staffing Option #2:
Contract Out the Work
Source service providers - 3rd party e.g. temporary
employment agencies
Temps work for a temporary employment agency
Independent contractor - freelancer (self-employed)
Outsource - contracting tasks to outside agencies or persons
Crowdsource - takes a function once performed by employees
and outsources it to an undefined network of people as an open
call
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Staffing Option #3:
Developing Employees Internally
Develop employees internally
Float and transfer
Movement of an employee from one job to another
that is relatively equal in pay, responsibility, and
organizational level
Promotions
Movement of an employee from one job to another
that is higher in pay, responsibility, and/or
organizational level
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Staffing Option #4:
Creating Flexible Work Arrangements
Overtime
Employees work beyond the normal hours
Flexible schedules
Flexible time and location
e.g. telecommuting, virtual organization
Flexible policies
e.g. flexible retirements
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Human Resource Information Systems
A Human Resource Information System (HRIS) is used
to collect record, store, analyze, and retrieve data
concerning an organizations human resources
The major stakeholders who use the information from an
HRIS are HR professionals, managers, and employees.
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HRIS Functions - Breadth and Size
There are many different systems to choose depending on
organizational requirements.
Key considerations:
Size
Information that needs to be captured
Volume of information transmitted
Firms objectives
Technical capabilities
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Components of an Human Resource
Information System with Relational Features
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Access to HRIS Information - Privacy
and Security Considerations
Security is an important aspect of an HRIS system
Access to HRIS Information
Determining who should have access and who
should have the right to change input data
Security
Concerns about unauthorized disclosure of
information, viruses, etc.
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HRIS An Important Tool
for Strategic HRM
Increased efficiency
Enhanced service delivery
Increased effectiveness
Helping stakeholders make better decisions
Increased contribution to organizational sustainability
Talent management
Increased visibility
Enhanced HR competencies
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Human Resource Accounting
Human Resource Accounting (HRA)
A process to measure the present cost and value of
human resources as well as their future worth to the
organization.
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