Schwind13e_PPT_ch03.pdf

Human Resource Planning Chapter 3 Krista Uggerslev, NAIT © 2022 McGraw-Hill Ltd. Schwind 13th Edition 3-1  Learning Objectives 1. Explain t...

Human Resource Planning Chapter 3 Krista Uggerslev, NAIT © 2022 McGraw-Hill Ltd. Schwind 13th Edition 3-1  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 organization’s demand for human resources. 4. Explain the various methods of estimating a firm’s 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. © 2022 McGraw-Hill Ltd. Schwind 13th Edition 3-2  Human Resource Planning Forecasts an organization’s 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 from capturing basic information to live-time predictive analytics © 2022 McGraw-Hill Ltd. Schwind 13th Edition 3-3  Relationship Between Strategic and Human Resource Plans Schwind 13th Edition, Figure 3-1 © 2022 McGraw-Hill Ltd. Schwind 13th Edition 3-4  Human Resource Planning Human resource planning can vary in sophistication across organizations: No formal planning – small companies where HR activities may be done in a reactionary way Basic planning – companies recognizing the need to plan for HR activities and may engage in a mix of proactive and reactionary planning focus on the short term (1-2 years) Advanced planning – direct tie between strategy and HR planning anticipating needs 3-5 years in advance Sophisticated planning – Senior HR professionals are integral to the strategic process with planning for 5+years out relying on strong expertise and technologies to support planning © 2022 McGraw-Hill Ltd. Schwind 13th Edition 3-5  The Workforce Planning Process Schwind 13th Edition, Figure 3-3 © 2022 McGraw-Hill Ltd. Schwind 13th Edition 3-6  Forecasting: Identifying the Causes that will Drive Demand Strategic Plan Demographic Impacts Turnover Legal Changes Technological Changes Competitors Budgets and Revenue Forecasts New Ventures Organizational and Job Design © 2022 McGraw-Hill Ltd. Schwind 13th Edition 3-7  Forecasting Techniques for Estimating Human Resource Demand Techniques for Estimating Future Human Resource Needs Expert Trend Other Informal and instant Budget and planning Extrapolation decisions analysis Formal expert survey Indexation New-venture analysis Delphi technique Statistical analysis Simulation models Schwind 13th Edition, Figure 3-3 © 2022 McGraw-Hill Ltd. Schwind 13th Edition 3-8  Expert Projection Forecasts Informal and Instant Decisions Expert forecasts of future HR needs Nominal Group Technique Groups of managers are asked to make forecasts and the manager’s ideas are discussed by the group and ranked Delphi Technique Surveys of groups of experts, summaries are shared back with the group, and they are surveyed again until opinions converge © 2022 McGraw-Hill Ltd. Schwind 13th Edition 3-9  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) Statistical Analysis More sophisticated statistical analyses allow for changes in the underlying causes of demand © 2022 McGraw-Hill Ltd. Schwind 13th Edition 3-10  Other Forecasting Methods Budget and 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 Simulation and Predictive Models More sophisticated approaches © 2022 McGraw-Hill Ltd. Schwind 13th Edition 3-11  Converting a Forecast Into Human Resource Requirements Schwind 13th Edition, Partial Representation Figure 3-4 © 2022 McGraw-Hill Ltd. Schwind 13th Edition 3-12  Overview of HR Tools used to Estimate Internal and External Supply of Labour Internal Supply Indicators External Supply Indicators Human Resource Audits Labour market analysis Skill inventories Community attitudes Management inventories Replacement Demographic trends charts/summaries Transition matrices & Markov analysis Schwind 13th Edition, Figure 3-8 © 2022 McGraw-Hill Ltd. Schwind 13th Edition 3-13  The Supply of Human Resources: Internal Supply Estimates HR Audits 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 (see Schwind Figure 3-7) © 2022 McGraw-Hill Ltd. Schwind 13th Edition 3-14  Transition Matrices and Markov Analysis (a) Transition Probability Matrix Year Beginning Year End Job A Job B Job C Job D Exit Job A 0.80 0.10 0.05 0.00 0.05 Job B 0.10 0.70 0.00 0.10 0.10 Job C 0.00 0.00 0.90 0.05 0.05 Job D 0.00 0.00 0.00 0.90 0.10 (b) Expected Movements of Employees Initial Job A Job B Job C Job D Exit Staffing Level Job A 200 160 20 10 0 10 Job B 70 7 49 0 7 7 Job C 60 0 0 54 3 3 Job D 100 0 0 0 90 10 Predicted End-of-the- 167 69 64 100 30 Year Staffing Level © 2022 McGraw-Hill Ltd. Schwind 13th Edition, Figure 3-7 Schwind 13th Edition 3-15  The Supply of Human Resources: External Supply Estimates Labour Market Analysis Study of the firm’s labour market to evaluate the present or future availability Community Attitudes Affects nature of the labour market © 2022 McGraw-Hill Ltd. Schwind 13th Edition 3-16  The Supply of Human Resources: External Supply Estimates Cont’d Demographic Trends Affects the availability of external supply ESDC publishes labour force projections Statistics Canada publishes reports Canadian Occupational Projection System (COPS) © 2022 McGraw-Hill Ltd. Schwind 13th Edition 3-17  Constant Balancing Act Oversupply Shortage © 2022 McGraw-Hill Ltd. Schwind 13th Edition 3-18  Strategies to Manage an Oversupply of Human Resources When the internal supply of workers exceeds the firm’s demand, a surplus exists. There are various HR strategies: Headcount reduction Layoffs Leave without pay Incentives for voluntary separation Termination © 2022 McGraw-Hill Ltd. Schwind 13th Edition 3-19  Strategies to Manage an Oversupply of Human Resources Attrition Hiring freeze Early and phased retirement officers Alternative Work Arrangements Job sharing Using part-time employees © 2022 McGraw-Hill Ltd. Schwind 13th Edition 3-20  Strategies to Manage a Shortage of Employees Develop Source Service Existing Work Hire Employees Employees Providers Arrangements Internally Full-time Independent Replacement Overtime Part-time contractor charts Flexible Temporary Third party Succession schedules Outsource planning Flexible time Crowdsource Career and location development Flex policies Float and transfer Schwind 13th Edition, Figure 3-9 © 2022 McGraw-Hill Ltd. Schwind 13th Edition 3-21  Staffing Option #1: Hire Employees Hire full-time employees Where internal transfer or promotion is not feasible, hiring full-time employees may be required Results in additional fixed cost Hire part-time workers Popular strategy for meeting human resource needs © 2022 McGraw-Hill Ltd. Schwind 13th Edition 3-22  Staffing Option #2: Contract Out the Work Source service providers Independent contractor: freelancer (self-employed) Consultants: hired to provide expert advice and counsel in a particular area 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 Co-source: a form of contracting that brings an external team to support and work with an internal team © 2022 McGraw-Hill Ltd. Schwind 13th Edition 3-23  Staffing Option #3: Develop Employees Internally Promotions Movement of an employee from one job to another that is higher in pay, responsibility, and/or organizational level Succession and career plans Training and development © 2022 McGraw-Hill Ltd. Schwind 13th Edition 3-24  Staffing Option #4: Creating Flexible Work Arrangements Overtime Employees work beyond the normal hours Flexible retirement Target those employees close to retirement to extend their contributions (e.g., retiree return) Float and transfer Movement of an employee from one job to another that is relatively equal in pay, responsibility, and organizational level © 2022 McGraw-Hill Ltd. Schwind 13th Edition 3-25  Program Measurement and Evaluation The final step in the planning process is to evaluate workforce planning activities against organizational goals E.g., were vacancies in key roles reduced? Was the target of internal or external recruits achieved? Improvement should be measured year over year © 2022 McGraw-Hill Ltd. Schwind 13th Edition 3-26  Human Resource Information Systems A Human Resource Information System (HRIS) is used to collect record, store, analyse, and retrieve data concerning an organization’s human resources The major stakeholders who use the information from an HRIS are HR professionals, managers, and employees. © 2022 McGraw-Hill Ltd. Schwind 13th Edition 3-27  HRIS Functions There are many different systems to choose depending on organizational requirements Key considerations: Size Information that needs to be captured Volume of information transmitted Firm’s objectives Technical capabilities Reporting capabilities © 2022 McGraw-Hill Ltd. Schwind 13th Edition 3-28  Components of a Human Resource Information System with Relational Features Schwind 11th Edition, Figure 3-11 © 2022 McGraw-Hill Ltd. Schwind 13th Edition 3-29  Access to HRIS Information Access to HRIS Information Determining who should have access and who should have the right to change input data with consideration for privacy Security Concerns about unauthorized disclosure of information, viruses, etc. © 2022 McGraw-Hill Ltd. Schwind 13th Edition 3-30  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 © 2022 McGraw-Hill Ltd. Schwind 13th Edition 3-31  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. © 2022 McGraw-Hill Ltd. Schwind 13th Edition 3-32 3 Human Resource Planning Summary After mastering this chapter content, you should be able to: 1. Explain the importance of human resource plans for strategic success. 2. Describe the human resource planning process. 3. Discuss methods for estimating an organization’s demand for human resources. 4. Explain the various methods of estimating a firm’s 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. © 2022 McGraw-Hill Ltd. Schwind 13th Edition 3-33