HRM Techniques I - Unit 3: HR Planning

HRM Techniques I - Unit 3: HR Planning

• HR planning is a core business process ensuring human resource needs are met.
• It involves identifying and planning to meet these needs, essentially answering "how many people" and "what sort of people." (Bulla & Scott, 1994)
• Hard HR planning focuses on quantitative analysis ensuring the right numbers of people are available.
• Soft HR planning focuses on ensuring appropriate attitudes, motivation, and commitment from employees.

Content of HR Planning

• Introduction: Basic HR processes (Job Analysis, Job Design/Re-design, then HR Planning) are described.
• Definition of HR Planning: The process of ensuring the human resource needs of an organization are identified and planned for to satisfy these needs.
• Objectives of HR Planning: The aims of planning depend on the organization's context, typically including attracting/retaining people with suitable skills, and anticipating surpluses/deficits.
• HR Planning Process: A process with several key stages is described, including scenario planning, demand/supply forecasting, and labor turnover analysis.
• HR Planning Responsibilities: HR units and managers have differing responsibilities. HR units typically handle the strategic planning and data management aspects. Managers usually focus on identifying needs, reviewing the plan, and monitoring it within their department.

Key Elements of the HR Planning Process

• Business strategic plans: Define future activity levels, demanding new skills.
• Resourcing strategy: Planning to achieve a competitive advantage by intellectual capital development.
• Scenario planning: Assessing where the organization is going in the future and how these environmental factors apply to HR requirements.
• Demand/supply forecasting: Estimating future demand for people (number and skills), and the number of people available inside and outside the organization.
• Labour turnover analysis: Analyzing actual turnover figures and trends.
• Work environment analysis: Analyzing current work environments in terms of the potential that these environments provide workforce skills development.
• Operational Effectiveness Analysis: Investigating workforce productivity and flexibility for adapting to new challenges.
• Resourcing plans: Covering plans for finding people, training, and attracting/retaining talent.
• Flexibility plans: Planning increased flexibility using approaches like part-time work, job sharing, home working, sub-contracting, flexible hours, etc.
• Retention plans: Planning for retaining the people the organization needs.

Other Models of HR Planning

• Workforce planning process: A cyclical planning method that involves understanding the organizational environment, analyzing the current and future workforce, determining workforce needs, acting to address shortages or surplus, and monitoring and evaluating actions.
• Human Resource Planning Process (Step-by-Step): This 5-step process includes analyzing organizational objectives, evaluating the current workforce, forecasting future requirements, developing and implementing a plan, and monitoring, reviewing, and re-evaluating.
• CIPD Model (Workforce planning Factsheet): A model that emphasizes the cyclical relationship between understanding the context, analyzing current workforce, determining needs, and adapting accordingly.
• Sample Replacement Chart: A tool to identify potential replacements for key leadership roles based on employee readiness.

Scenario Planning

• Scenario planning involves brainstorming potential future situations impacting organizational direction and labor requirements– considering technological, economic, or governmental changes.

SWOT Analysis

• SWOT Analysis is strategic planning and a tool used to evaluate Strengths, Weaknesses, Opportunities, and Threats, either internal or external, in the current environment. This can be very effective in deciding how best to improve.

Class Activity

• Class activity focuses on the relationships between labor turnover, stability index, demand forecasting, survival rate, work study techniques, labor turnover index, cost and reasons for turnover, supply forecasting, and benchmarking.

Action Planning

• Actions planning involves strategic planning to address the need for resourcing, identifying recruitment, or talent acquisition plans using internal and external talent pools, employer of choice plans to help keep staff, increase flexibility for a variety of workforce options including part-time workers, hiring, sub-contracting, or temporary employees.

HR Planning Responsibilities

• HR Units and managers have differentiated responsibilities, each playing critical roles in the strategic planning, execution and monitoring of human resource needs.