HUMAN RESOURCE PLANNING

Job Analysis: A Basic Human Resource Management Tool

Human Resource
Tasks Responsibilities Duties Planning
Recruitment
Selection
Training and
Job
Development
Descriptions
Job Performance Appraisal
Analysis Job Compensation and
Specifications Benefits
Safety and Health
Employee and Labor
Relations
Knowledge Skills Abilities Legal Considerations
Job Analysis for Teams
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 Definitions
• Job - Consists of a group of tasks that
must be performed for an organization to
achieve its goals
• Position - Collection of tasks and
responsibilities performed by one person;
there is a position for every individual in
an organization

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 Definitions (Continued)
• Job analysis - Systematic process of
determining the skills, duties, and knowledge
required for performing jobs in an
organization
• Job description – document providing
information regarding tasks, duties, and
responsibilities of job
• Job specification – minimum qualifications to
perform a particular job
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 Strategic Planning

The process by which top

management determines overall
organizational purposes and
objectives and how they are to be
achieved

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 HUMAN RESOURCE PLANNING

• Right number of people with right skills at right

place at right time to implement organizational
strategies in order to achieve organizational
objectives
• In light of the organization’s objectives,
corporate and business level strategies, HRP is
the process of analyzing an organization’s
human resource needs and developing plans,
policies, and systems to satisfy those needs
 Human Resource Planning
The process of systematically reviewing HR
requirements to ensure that the required
number of employees, with the required
skills, are available when they are needed

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 Human Resource Planning Process
External Environment
Internal Environment
Strategic Planning

Human Resource Planning

Forecasting Comparing Forecasting

Human Requirements Human Resource
Resource Availability
Requirements and Availability

Demand = Surplus of Shortage of

Supply Workers Workers

No Action Restricted Hiring, Recruitment

Reduced Hours,
Early Retirement, Selection
Layoff, Downsizing

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 HRP Process
• Interfacing with strategic planning and
scanning the environment
• Taking an inventory of the company’s
current human resources
• Forecasting demand for human
resources
• Forecasting the supply of HR from within
the organization and in the external
labor market
 HRP Process Cont.
• Comparing forecasts of demand and
supply
• Planning the actions needed to deal
with anticipated shortage or overages
• Feeding back such information into
the strategic planning process.
 Example of the Basic Human Resources Planning
Model

Organizational Human Resource Human Resource Feasibility

Requirements Programs
Objectives Analysis
 HRP should be :
• Done to guide and coordinate all HR activities so
they work together to support the overall
strategy

• Responsive to internal and external environment

• Planning - done in advance

• Strategic - linked with higher level planning

 Forecasting as a Part of HRP
SUPPLY
Choose human FORECASTING
DEMAND resource programs
FORECASTING

Determine
Internal programs External programs
organizational
objectives •Promotion • Recruiting
• External selection
•Transfer
•Executive exchange
•Career planning
Demand •Training
forecast for
each objective •Turnover control

Aggregate Internal supply forecast External supply forecast

demand
forecast Does aggregate
supply meet Aggregate supply
aggregate forecast
demand? No

Yes

Go to feasibility analysis steps

 Human Resource Forecasting
• Process of projecting the organization’s
future HR needs (demand) and how it will
meet those needs (supply) under a given
set of assumptions about the
organization’s policies and the
environmental conditions in which it
operates.
• Without forecasting cannot assess the
disparity between supply and demand nor
how effective an HR program is in
reducing the disparity.
Internal Supply Forecasting
Information

• Organizational features (e.g.,

staffing capabilities)
• Productivity - rates of
productivity, productivity
changes
• Rates of promotion, demotion,
transfer and turnover
 External Supply Forecasting
Information
• External labor market factors
(retirements, mobility, education,
unemployment)
• Controllable company factors on
external factors (entry-level openings,
recruiting, compensation)
 Demand Forecasting
Information
• Organizational and unit strategic
plans
• Size of organization
• Staff and Managerial Support
• Organizational design
 Considerations in Establishing a
Forecasting System

• How sophisticated
• Appropriate time frame
• Subjective versus objective
forecasting methods
 System Sophistication
• Organizational size
– large organizations require more complex forecasting
systems and likely to have the required skilled staff
• Organizational complexity
– complex career paths and diverse skill requirements
lead to more complex forecasting systems
• Organizational objectives
– the greater the gap between current HR situation and
desired HR situation the more sophisticated the
system
• Organizational plans and strategies
– the complex the plans are the more complex the
forecasting system
 Forecasting Time Frame
Depends on degree of environmental
uncertainty
Factors creating uncertainty (shortening
time frame)
– many new competitors, changes in technology,
changes in social, political and economic climate,
unstable product demand
Factors promoting stability (longer time
frame)
– strong competitive position, slowly developing
technology, stable product demand.
 Subjective VS. Objective
Forecasting
Objective is inappropriate when:
– Lack expertise to use objective methods
– Lack the historical data or HR data base
is inadequate
– Forecasting horizon is too long for the
available objective method
 HR Forecasting Techniques
• Zero-based forecasting – uses current level as
starting point for determining future staffing
needs
• Bottom-up approach – each level of
organization, starting with lowest, forecasts its
requirements to provide aggregate of
employment needs

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HR Forecasting Techniques (Continued)

• Mathematical models –Assist in forecasting.

Relationship between sales demand and
number of employees needed is positive one.
• Simulation – technique with experimenting
with real-world situation through a
mathematical model

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 Forecasting HR Requirements
• Estimate of numbers and kinds of employees
the organization will need at future dates
• Demand for firm’s goods or services must be
forecast
• Forecast is then converted into people
requirements

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 Forecasting HR Availability
• Determining whether the firm will be able to secure
employees with the necessary skills, and from what
sources these individuals may be obtained
• Show whether the needed employees may be
obtained from within the company, from outside the
organization, or from a combination of the two
sources

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 Surplus of Employees

• Restricted hiring – employees who leave are

not replaced
• Reduced hours
• Early retirement
• Layoffs

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 Shortage of Workers Forecasted

• Creative recruiting
• Compensation incentives – premium pay is one
method
• Training programs – prepare previously
unemployable people for positions
• Different selection standards – alter current
criteria

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