Human Resource Planning - Week 4 PDF

HUMAN RESOURCE PLANNING WEEK 4  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 variou...

HUMAN RESOURCE PLANNING WEEK 4  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. WHAT DOES IT MEAN TO PLAN? What is the importance of planning? IF THE US AND CANADA MERGED INTO ONE COUNTRY What would happen to our labour market? How would you plan for this?  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 CLASS ACTIVITY Given an example for each: 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 R E L AT I O N S H I P B E T W E E N S T R AT E G I C A N D H U M A N R E S O U R C E PLANS Schwind 13th Edition, Figure 3-1  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 THE WORKFORCE PLANNING PROCESS  FO R ECAST ING: ID ENT IFYING T HE CAUSES T HAT W ILL D R IVE D EM AND Strategic Plan Demographic Impacts Turnover Legal Changes Technological Changes Competitors Budgets and Revenue Forecasts New Ventures Organizational and Job Design CLASS DISCUSSION For a high-tech organization where job specifications and customer needs continually change, which of the forecasting techniques discussed in the text are likely to be relevant? Why? 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  EXPERT PROJECTION InformalFORECASTS 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  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  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 CONVERTING A FORECAST INTO HUMAN RESOURCE REQUIREMENTS  OV E R V I E W O F H R T O O L S U S E D T O E S T I M AT E I N T E R N A L A N D E X T E R N A L S U P P LY O F L A B O U R 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  T H E S U P P LY O F H U M A N RESOURCES: INTERNAL S U P P LY E S T I M AT E S 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 HR SHARK TANK Objective: In teams, you must pitch a creative HR planning solutions to "investors" in a Shark Tank-style format, defending your ideas and competing for the "investment.“ In teams, choose from one of these objectives: 1. Reducing turnover in high-stress industries. 2. Planning for diversity and inclusion in hiring. 3. Addressing skill gaps for future technology needs. 4. Designing a remote work strategy for a hybrid organization. HR SHARK TANK Instructions 1.Preparation (15 minutes): Teams create a pitch for their HR solution, including: 1.The Problem: Define the HR planning challenge. 2.The Solution: Present a unique and actionable HR strategy. 3.The Benefits: Highlight how the solution will improve organizational outcomes. 4.The Cost: Estimate the investment needed to implement the plan. 2.Pitch Round (5 minutes per team): 1. Each team presents their pitch to the Sharks. 2. Sharks can ask questions or challenge the feasibility of the plan. 3.Debrief and Voting (10 minutes): 1. Sharks deliberate and choose the team with the best strategy based on creativity, feasibility, and ROI.  T H E S U P P LY O F H U M A N RESOURCES: EXTERNAL S U P P LY E S T I M AT E S 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  T H E S U P P LY O F H U M A N RESOURCES: EXTERNAL S U P P LY E S T I M AT E S C O N T ’ D Demographic Trends Affects the availability of external supply ESDC publishes labour force projections Statistics Canada publishes reports Canadian Occupational Projection System (COPS) CONSTANT BALANCING ACT Oversu pply Shortag e  S T R AT E G I E S T O M A N A G E A N OV E R S U P P LY O F H U M A N RESOURCES When the internal supply of workers exceeds the firm’s demand, a surplus exists. There are various HR strategies: Headcount reduction o Layoffs o Leave without pay o Incentives for voluntary separation o Termination  S T R AT E G I E S T O M A N A G E A N OV E R S U P P LY O F H U M A N RESOURCES Attrition o Hiring freeze o Early and phased retirement officers Alternative Work Arrangements o Job sharing o Using part-time employees  STRATEGIES TO MANAGE A SHORTAGE OF EMPLOYEES Existing Source Develop Hire Work Service Employees Employees Arrangeme Providers Internally nts Full-time Independent Replacemen Overtime Part-time contractor t charts Flexible Temporary Third party Succession schedules Outsource planning Flexible time Crowdsourc Career and location e development Flex policies Float and transfer  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  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  S TA F F I N G O P T I O N # 3 : D E V E LO P E M P LOY E E S I N T E R N A L LY Promotions o 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  S TA F F I N G O P T I O N # 4 : C R E AT I N G F L E X I B L E W O R K 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 o Movement of an employee from one job to another that is relatively equal in pay, responsibility, and organizational level  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  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.  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 COMPONENTS OF A HUMAN R E S O U R C E I N F O R M AT I O N S Y S T E M W I T H R E L AT I O N A L F E AT U R E S 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.  HRIS – AN IMPORTANT TOOL FOR STRATEGIC HRM efficiency Increased Enhanced service delivery Increased effectiveness Helping stakeholders make better decisions Increased contribution to organizational sustainability Talent management Increased visibility Enhanced HR competencies RETURNING TO MAPLE LEAF SHOES…IN-CLASS CASE STUDY IN-CLASS CASE STUDY!  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. 3 HUMAN RESOURCE PLANNING SUMMARY What did we learn? 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.