HUMAN RESOURCE How do HR plan resource needs and sourcing?

1. HUMAN RESOURCE How do HR plan resource needs and sourcing? Edited by Fabio Emanuele Noia, Link Campus University of Malta, 2006 Chapter 6 Human Resource Planning Freely Inspired from Bratton J., Gold J., Human Resource Management, Theory and Practice, Palgrave, 2003 http://www.palgrave.com/business/brattonandgold/

2. HR Planning ____________ The process of systematically forecasting the future demand and supply for employees and the deployment of their skills within the strategic objectives of the organisation. Freely Inspired from Bratton J., Gold J., Human Resource Management, Theory and Practice, Palgrave, 2003

3. Manpower planning ____________ Linear process dealing with numbers (heads): 1. evaluation of existing resources 2. Estimation of proportion likely to be within the firm by the forecast date 3. Assessment of labor requirements needed to meet objectives 4. Measures to ensure necessary resources are avilable when required Freely Inspired from Bratton J., Gold J., Human Resource Management, Theory and Practice, Palgrave, 2003

4. Manpower planning ____________ Demand work – analysing, reviewing, and attempting to predict the numbers, by kind, of manpower needed to achieve objectives. Supply work – attempting to predict what action was and would be necessary to ensure that the manpower needed is available when required Designing the interaction between demand and supply so that skills are utilized to the best possible advantage and the legitimate aspirations of the individual are taken into accont Smith (1980) Freely Inspired from Bratton J., Gold J., Human Resource Management, Theory and Practice, Palgrave, 2003

5. Manpower planning ____________ Organizational strategy ad targets  Organization practice and methods  Manpower review and analysis Internal External   Forecast Demand Supply  Adjust to Balance Recruit Retrain Reduce Freely Inspired from Bratton J., Gold J., Human Resource Management, Theory and Practice, Palgrave, 2003

6. Manpower measurement Toolbox ____________ Turnover Retention Stability Absenteeism _________________ Computerized Personnel Information Systems (CPISs) www.acas.org.uk/publications/pub_ab__absenceturnover.html www.softwaresource.co.uk Freely Inspired from Bratton J., Gold J., Human Resource Management, Theory and Practice, Palgrave, 2003

7. Manpower planning ____________ Diagnostic approach include monitoring and analysis in the attempt to understand causes and plan accordingly. _________________ The most probable real-life situation is one of continuous imbalance between demand and supply, as a result of the dynamic conditions facing any organization, the behavior of people and the imperfections of manpower models. Freely Inspired from Bratton J., Gold J., Human Resource Management, Theory and Practice, Palgrave, 2003

8. Reasons for High Staff Turnover ____________ Job not matching new employees expectations Lack of attention from line managers and a lack of training Lack of autonomy, responsibility, challenge, and variety within the work Disappointment with the promotion and development opportunities Standards of management, including unapproachable, uncaring and distant behavior and a failure to consult Freely Inspired from Bratton J., Gold J., Human Resource Management, Theory and Practice, Palgrave, 2003

9. How to deal with worker shortage ____________ Do nothing Identify new and substitute supply Improve use and performance of existing workers Human Resource Planning Freely Inspired from Bratton J., Gold J., Human Resource Management, Theory and Practice, Palgrave, 2003

10. HR Planning ________________ HRP seeks to make the links between strategy, structure and people more explicit. Training, reward, quality and commitment to work together in high peformance settings Freely Inspired from Bratton J., Gold J., Human Resource Management, Theory and Practice, Palgrave, 2003

11. HR accounting (HRA) Process of identifying, quantifying, accounting and forecasting the value of human resources in order to facilitate effective HRM. “people on the balance sheet – as assets” “People have a value that is greater than their cost” Difficult to capture, knowledge is an intangible asset (intellectual capital) Freely Inspired from Bratton J., Gold J., Human Resource Management, Theory and Practice, Palgrave, 2003

12. HR accounting (HRA) Intellectual capital in an organization is composed of structural capital (HW, SW, brands and relationship with customers and suppliers) and human capital (knowledge and skills as well as employees values and culture). Difference between book value and market value. Freely Inspired from Bratton J., Gold J., Human Resource Management, Theory and Practice, Palgrave, 2003

13. e-HR Human Resource Information Systems Transaction processing/reporting/tracking applications covering operational activities (payroll, recordkeeping, and performance monitoring) Expert systems to improve decision making based on an analysis of decisions concerning such issues as sources of new recruits, salaries and training needs Decision support systems to improve decision making through the use of scenario modelling in areas where there are no clear answers (team formation and management development programmes). Freely Inspired from Bratton J., Gold J., Human Resource Management, Theory and Practice, Palgrave, 2003

14. High span of discretion and longterm stable earnings Primary internal market Primary external market Flexibility Labor market segmentation (Loveridge, 1983) Specialised but general skils Flexible but specific skills Secondary internal market Secondary external market Low span of discretion and unstable earnings Freely Inspired from Bratton J., Gold J., Human Resource Management, Theory and Practice, Palgrave, 2003

15. Flexibility Functional (through operations) Numerical (adjust to fluctuation) Distancing strategies (outsource) Financial (pay and reward structure) Core workers Vs Peripheral workers Freely Inspired from Bratton J., Gold J., Human Resource Management, Theory and Practice, Palgrave, 2003

16. Teleworking Multi-site Tele-homeworking Freelancing (go portfolio) Mobile (on the road) Relocated back-functions (call centers) Freely Inspired from Bratton J., Gold J., Human Resource Management, Theory and Practice, Palgrave, 2003

17. Career management and developmet Career = movement to predefined stages But also personal growth and development through employees’ interaction with their work environment. Developing potential (Hirsch, 1990) – posts can be considered as ephemeral and be designed around people. Freely Inspired from Bratton J., Gold J., Human Resource Management, Theory and Practice, Palgrave, 2003

18. Career management and developmet Adamson (1998) suggest: An end to the long-term view of employer-employee relationship An end to hierarchical movement as being career progression An end to logical, ordered and sequential career Freely Inspired from Bratton J., Gold J., Human Resource Management, Theory and Practice, Palgrave, 2003

19. Career management and developmet Segmented patterns of development with a rhetoric of career development for everyone but with different patterns: Senior managers and high potentialstaff – careers managed by organization, with succession planning to fill senior positions Highly skilled workers – attempt to attract and keep key workers by offering career development paths The wider workforce – more limited development opportunities often caused by and resulting in uncertainty over career paths, expectation taht they will look for themselves. Freely Inspired from Bratton J., Gold J., Human Resource Management, Theory and Practice, Palgrave, 2003

20. Career management and developmet Ball (1997) development of career management skills will benefit both organizations and individuals: Optimize the situation Career planning Engaging in personal development Balance between work and non work Freely Inspired from Bratton J., Gold J., Human Resource Management, Theory and Practice, Palgrave, 2003

21. Assignment ___________ Visit www.dfee.gov.uk/datasphere/ www.statistics.gov.UK/statbase/Product.asp?vlnk=550&More=N Freely Inspired from Bratton J., Gold J., Human Resource Management, Theory and Practice, Palgrave, 2003