Dessler, Cole, and Sutherland Human Resources Management in Canada Canadian Eighth Edition

1. Dessler, Cole, and Sutherland Human Resources Management in Canada Canadian Eighth Edition Chapter Five Human Resources Planning 5 © 2002 Pearson Education Canada Inc., Toronto, Ontario 5-1

2. The Nature of Human Resources Planning HR Planning -review human resources requirements to ensure: -the necessary number of employees -the necessary employee skills to meet organizational goals

3. The Nature of Human Resources Planning Forecast demand Analyze supply Plan and implement programs to balance supply and demand

4. The Nature of Human Resources Planning Importance of HR Planning (1 of 2) -achieve goals and objectives -plan staffing and development activities -achieve economies in hiring -make major labour market demands

5. The Nature of Human Resources Planning Importance of HR Planning (2 of 2) -anticipate and avoid staff shortages/surpluses -control/reduce labour costs -utilize employee capabilities effectively -establish employment equity goals/timetables

6. The Nature of Human Resources Planning Results of Inadequate HR Planning (1 of 3) -vacant positions create costly inefficiencies -overtime hours at premium cost -simultaneous layoffs and hiring -mass layoffs requiring: -severance pay -extended notice periods

7. The Nature of Human Resources Planning Results of Inadequate HR Planning (2 of 3) -vacant positions -costly inefficiency -overtime hours at premium cost -simultaneous layoffs and hiring -mass layoffs requiring: -extended notice periods -severance pay

8. The Nature of Human Resources Planning Results of Inadequate HR Planning (3 of 3) -ineffective training, development, career planning -inability to promote from within -turnover of high performers -problems with employment equity goals -inability to meet operational and strategic plans

9. The Nature of Human Resources Planning HR Planning Strategic Planning • reciprocal and interdependent relationship • -environmental scanning critical for both

10. The Nature of Human Resources Planning External Environmental Factors Monitored -economic conditions -market and competitive trends -government and legislative issues -social concerns -technological changes -demographic trends

11. Elements of Effective HR Planning 5. Monitor and Evaluate Results 4. Implement Plans to Balance Supply and Demand 3. Forecast Future Internal/External Candidates (Supply) 2. Forecast Future HR Needs (Demand) 1. Analyze HR Implications of Strategic Plans

12. Forecasting Future HR Needs (Demand) Forecasting based on: -demand for product/service -projected turnover -quality and nature of employees -decisions regarding product quality -plans for technological change -plans to reduce headcount -financial resources

13. Forecasting Future HR Needs (Demand) Quantitative Approaches Trend analysis: review past employment levels Ratio analysis: ratio of business activity/employees Scatter plot: graph of business activity/employees Regression analysis: statistical relationship between business activity and employees Computerized forecasting techniques

14. Forecasting Future HR Needs (Demand) Qualitative Approaches 1. Nominal Group Technique -experts meet face-to-face -group discussion facilitates exchange of ideas -possible subjectivity, group pressure 2. Delphi Technique -experts work independently -wide range of views -difficult to integrate diverse opinions

15. Forecasting Future HR Supply Skills Inventories • manual or computerized records • used to identify internal candidates for transfer • or promotion • summary of each employee’s: • education • experience • interests • skills

16. Forecasting Future HR Supply Management Inventories • summary of each management employee’s: • background • qualifications • interests • skills • managerial responsibilities • duties in current/previous positions • management training

17. Forecasting Future HR Supply Replacement Charts • visual representations of likely internal • replacement employees for each position • data on each candidate includes: • age • present performance rating • promotability status

18. Forecasting Future HR Supply Replacement Summaries • lists of likely internal replacement employees • for each position • data on each candidate includes: • relative strengths and weaknesses • current position • performance • promotability • age • experience

19. Forecasting Future HR Supply Computerized Skills Inventory Formal education Industry experience Work experience Product/service knowledge Training courses Language skills Relocation limitations Career interests Performance ratings

20. Forecasting Future HR Supply Succession Planning • analyze demand for managers/professionals • audit existing executives, project future supply • individual career planning/career counseling • accelerated promotions • performance-related training and development • planned strategic recruitment

21. Forecasting Future HR Supply Forecasting Supply of External Candidates • general economic conditions • national labour market conditions • local labour market conditions • occupational market conditions

22. Balancing Supply and Demand Dealing with a Labour Surplus • hiring freeze • attrition • buy-out and early retirement programs • reducing hours (job sharing, reduced • workweek, part-time work, work sharing) • internal transfers • layoffs (reverse seniority or juniority) • termination with outplacement assistance

23. Balancing Supply and Demand Dealing with a Labour Shortage • overtime • hiring temporary employees • subcontracting work • external recruitment • transfers • promotions

24. HRP Evaluation Specific Criteria Assessed Actual staffing levels vs. staffing requirements Ratio of internal placement to external hiring Actual internal mobility flow vs. career plans Internal mobility flow vs. turnover Employment equity achievements vs. goals