AboutLeo Lingham Expertise human resource management, human resource planning, strategic planning in resource, management development, training, business coaching, management training, coaching, counseling, recruitment,
selection, performance management.
Experience 18 years of managerial working exercise which covers business planning , strategic planning, marketing, sales management,
management service, organization development
PLUS
24 years of management consulting which includes business planning, corporate planning, strategic planning, business development, product management, human resource management/ development,training,
business coaching, etc
Question The present state of recession in the IT Industry - as a Human Resource Manager how are you going to undertake Human Resource Planning at Macro Level to tide over the crisis
Answer DIBYENDU,
HERE IS SOME USEFUL MATERIAL.
REGARDS
LEO LINGHAM
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WHAT IS 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
Setting human resource objectives and deciding how to meet them
Ensuring HR resource supply meets human resource demands.
WHAT IS HUMAN RESOURCE PLANNING 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
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.
1.Basic Human Resources Planning Model
2.Organizational Objectives
3.Human Resource Requirements
4.Human Resource Programs
5.Feasibility Analysis
Strategic Human Resource Planning
-Links 1 & 5: HR objectives are linked to organizational objectives and planning
-Designed to insure consistency between organization's strategic planning process and HRP.
-So objectives of strategic plan are feasible and
-HR programs are designed around what organizational objectives and strategies require in terms of human resource goals
Operational Human Resource Operation Planning model.
-Steps 2,3, & 4
-Ensure HRP programs are coordinated and allows the organization to meet its human resource requirements.
Link 1: Determine Demand
(labor requirements)
How many people need to be working and in what jobs to implement organizational strategies and attain organizational objectives.
Involves forecasting HR needs based on organizational objectives
Involves consideration of alternative ways of organizing jobs (job design, organizational design or staffing jobs)
Example - Peak production could be handled by temporary workers or assigning overtime. Machine breakdowns assigned to maintenance department or handled by machine operators.
Link 2: Determine HR Supply (availability)
Choose HRM programs (supply)
Involves forecasting or predicting effect of various HR programs on employee flowing into, through and out various job classifications.
First determine how well existing programs are doing then forecast what additional programs or combination of programs will do
Need to know capabilities of various programs and program combinations.
Determine Feasibility
Links 3 & 4
Capable of being done
Requires knowledge of programs, how programs fit together and external environmental constraints (e.g., labor force, labor unions, technology created skill shortages) and internal environmental constraints (skill shortages within the organization, financial resources, managerial attitudes, culture)
Do the benefits outweigh the costs
Difficulty in quantifying costs and benefits.
Forecasting as a Part of Human Resource Planning
DEMAND FORECASTING / SUPPLY FORECASTING
-Determine organizational objectives
-Demand forecast for each objective
-Aggregate demand forecast
-Does aggregate
-supply meet
-aggregate
-demand?
-Go to feasibility analysis steps
Choose human resource programs
External programs
Recruiting
External selection
Executive exchange
Internal programs
Promotion
Transfer
Career planning
Training
Turnover control
Internal supply forecast
External supply forecast
Aggregate supply forecast
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.
Demand Forecasting Methods
Delphi Method
Staffing Table Approach
Regression Analysis
Time Series Analysis
Linear Programming.
Supply Forecasting Methods
Skills Inventory
Replacement Charts
Succession Planning
Flow Modeling/Markov Analysis
Computer Simulations
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THIS IS THE APPROACH
TO HR PLANNING.
STEP ONE ---IDENTIFYING
***FIRST STAGE
THE DIFFICULT factors, YOU MUST KEEP IN MIND WHILE ''HR PLANNING''.
FACTORS COULD INCLUDE --- GOVERNMENT/ ECONOMIC/LEGAL/SOCIAL
**************************************************************************************
-as the economy grows/declines, the demand for HR resources
changes not only in quantity but also in quality/ types.
-social pressure to provide the right environment for employees.
-political pressure to employ local population, irrespective
of skills/ knowledge.
-legal challenges to recruitment / compensation on
discrimination .
-technology changes means getting right type of people
or provide the right type of training.
-competitive pressure to get the right talent at the right
compensation.
*MANAGING WORK OPTIONS
-shorter weeks
-flexitime
-telecommuting
-virtual organizations.
==================================
***SECOND STAGE
HR PLANNING SHOULD TAKE INTO CONSIDERATION
INTERNAL COMPANY FACTORS LIKE
******************************************************************
1.Corporate VISION
=============================================
***THIRD STAGE
AS PART OF HR PLANNING , review the following
CHANGING FACTORS WHICH AFFECTS HUMAN RESOURCES
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1.The impact of technological change on task needs.
2. Variations in the efficiency, productivity, flexibility of labor as a
result of training, work study organizational change, new motivations, etc.
3. Changes in employment practices [ e.g. subcontractors or
outsourcing etc ]
4.Other variations due to new legislations like new health requirements,
safety requirements etc.
5.Changes in government policies like tax/ tariff etc
6. Labor demand and supply .
7. Skills levels availability
What should emerge from this analysis / reviews is a "thought out"
and logical staffing demand schedule for varying dates in the future
which can then be compared with the crude supply schedule.
The comparison will then indicate what steps must be taken to
achieve a balance.
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*** FOURTH STAGE
HR SUPPLY FORECASTING -- CONSIDER THE FOLLOWING
DEMAND AND SUPPLY IN THE JOB MARKET
**********************************************************************************
1.EXPERT
-informal internal surveys.
managers prepare their own estimates based on workload.
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-formal external surveys.
planners survey managers, using questionnaires or
or focused discussion.
----------------------------------------------------------------------------------
-delphi techniques
solicit estimates from a group of managers, until the
estimates converge.
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2.TREND PROJECTIONS
-extrapolations
extending past rates of change into the future.
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-indexation
matching employment growth with , say, sales.
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-statistical analysis
=================================================
3. OTHERS
-planning and budgeting systems
based on strategic and corporate plannings/ budgeting.
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-new venture analysis
making comparisons with similar operations.
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-computer models
using multiple variables.
=================================================
***FIFTH STAGE
HR DEPARTMENT IS A SUPPORT FUNCTION.
HENCE HR PLANNING RELIES HEAVILY ON THE ANNUAL CORPORATE
PLANNING, OBJECTIVES, STRATEGIES AND PLANS.
***************************************************************************************************************
In THIS company, HRM is part of senior management.
HRM makes contribution to the development of
-corporate mission statement
-corporate objectives
-corporate strategy.
The senior management team or TOP management would
consists of
-ceo or managing director
-corporate planning manager
-finance manager
-marketing manager
-product sourcing manager
-sales manager
-supply chain manager
-HR manager
etc.
STEP 1[a]
TOP management would
-evaluate the current [ last 12 months] performance against the
objectives / target set previously, which includes return on investment,
profitability , etc and also the performance of various departments
like marketing, sales, HR, product sourcing , etc etc.
STEP 1 [b]
TOP management will also evaluate the current mission,objectives,
strategies and policies.
-----------------------------------------------
STEP 2[a ]
MD will take the summary of the evaluation of the current
performance to the board for review.
STEP 2 [ b ]
Based on the review plus the external environmental factors,
the board will make decisions on
-new mission statement
-new corporate objectives
-new corporate governance
-------------------------------------------------------------
STEP 3 [ a ]
TOP management will scan and assess the company's
external environment --political/ economic/social/ technology.
to determine the strategic factors that pose as
OPPORTUNITIES / THREATS.
STEP 3 [ b ]
TOP management will scan and assess the company's
internal environment --structure/ culture/resources etc
to determine the strategic factors that pose as
OPPORTUNITIES / THREATS.
STEP 3[ c ]
TOP MANAGEMENT will analyze the the strengths / weaknesses
of the organization and pinpoint the problems areas that needs
attention and the strengths that could be exploited.
STEP 4
Based on the above analyses, TOP management will generate,
evaluate, and select the best strategic factors.
STEP 5
TOP management will review and revise [ if necessary ] the
mission statement and corporate objectives.
STEP 6
TOP management will generate and evaluate strategy alternatives
and objectives.
STEP 7
This final corporate mission statement, objectives and strategies
becomes the foundation information for the various departments
to work out their departmental objectives/strategies/plans.
STEP 8
After working out their respective objectives/strategies/plans
and the budgets , the departmental managers send their
respective information to the TOP management for
approval.
STEP 9
On receiving the approved package from the TOP management,
the departmental managers develop the implementation plan.
STEP 10.
NOW you have mission/objectives/strategies/plans/budget/schedules.
*** SIX STAGE
IN case of HR, which is a department by itself,
MUST discuss with other departments of their
expectations/ intentions on HUMAN RESOURCES.
****************************************************************************
This final corporate mission statement, objectives and strategies
becomes the foundation information for the HR department
to work out your departmental objectives/strategies/plans.
STEP A
Discuss with the various other departments like sales/ production/
distribution/accounting/ IT etc about their requirements
-for manpower
-recruitments
-replacements
-training
etc etc
Once you get their departmental requirements, HRM develops
*INTERNAL SUPPLY ESTIMATES FOR EACH DEPARTMENT/TOTAL
-staff skills inventories
-management inventories
-replacements requirements
-transition requirements
*MANAGING WORK OPTIONS FOR EACH DEPARTMENT / TOTAL
-shorter weeks
-flexitime
-telecommuting
-virtual organizations.
==================================
*** SEVENTH STAGE
-HR PLANNING
HR Planning includes
CURRENT SITUATION/ ANALYSIS OF COMPANY HR
1.Assessment / Audit of the current manpower profile
-numbers
-skills
-ages
-flexibility
-sex
-experience
-capabilities
-character
-potential
and also
-normal turnover,
-staff movements planned
-retirements
-succession planning
etc.
-Recruitment/ Selection PLAN
-Induction / Orientation PLAN
-Training / Developement PLAN
-Compensation PLAN
-Salary administration PLAN
-Payroll Administration PLAN
-Performance Appraisal PLAN
-Performance Management PLAN
-Industrial Relations PLAN
-Promotions PLAN [ IF ANY ]
-Terminations PLAN
-Transfers PLAN
-Staff amenities. PLAN
-retraining plan
-early retirement plan
-redundancy plan
-changes in workforce utilization plan
-career path plan
-succession plan.
-personnel and career plans
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===========================================
LASTLY BASED ON THE ABOVE PLANS,
YOU DEVELOP HR BUDGET.
The elements in HR department budget would vary with
-company policy
-budget process
-company accounting system
-nature of the business operation
-HR PLANNING
etc
HERE is a broad set of guidelines.
-recruitment/ selection [ internal/ outsourcing ]
-PLACEMENT contractors [external ]
-salary/ wages
-training/ development [ includes induction/ orientation]
-staff benefits
-staff amenities
-workplace facilities
-workplace safety [ OHS]
-salary contingency
-workers compensation
-staff communication [ includes newsletter/ intranet ]
-labor relations [ legal/ investigations]
-HR administration
-HR travels
etc etc.
======================================================
These plans will help to bring supply and demand into equilibrium,
not just as a one-off but as a continual workforce planning
exercise the inputs to which will need constant varying to reflect
the actual as against predicted experience on the supply side
and changes in production actually achieved as against forecast
on the demand side.
THE ABOVE APPROACH / CONTENTS IS FOCUSED ON
-achieving the corporate objectives/ results.
-achieving the productivity improvements.
-achieving the organization effectiveness.
-achieving the organization efficiency.
