Human Resources Planning

Human Resources Planning

According to Crane (1974) in Rudman (2002) HR planning is concerned with much more than efficient recruitment of new or replacement employees – so that organisations have “the right number and kind of people in the right place, at the right time, doing things for which they are economically most useful”.

What is HR planning? Human resource planning is the systematic and continuing process of analysing an organisation’s human resource needs under changing conditions and integrating this analysis with the development of personnel policies appropriate to meet these needs

It might be better to regard HR planning less as a process of producing specific and measurable plans than one of identifying options and preparing for possibilities.

Three critical questions 

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What human resources will the organisation need to fulfill its goals and plans and cope with its possible futures? What are the gaps between that future ‘demand’ for human resources and the ‘supply’ available to the organisation at present? What HR programmes and activities will be needed so that the organisation can bridge those gaps?

The Benefits of HR Planning 

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a systematic and integrated approach to HR policies and programmes an improved framework for communicating clearly defined goals and strategies improved employee relations and higher productivity higher quality products or services greater security and stability of employment lower turnover improved succession planning improved competitiveness and ‘survivability’

Challenges for HR planning 

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continuing competitive pressures to develop new or different markets, products and services greater demand for better services at lower costs introduction of new technologies restructuring and relocations changes in work systems and methods changing attitudes among various groups in the workforce

Levels of HR planning International level  policies to encourage migration  programmes for the international recognition of occupational or professional qualifications  agreements that allow people to work in foreign countries

Levels of HR planning National level  monitoring labour markets and employment patterns  reviewing education and training policies  providing employment and training advice and assistance  financial assistance for the unemployed

Levels of HR planning Industry and occupation level  professional societies  industry associations (ITO’s)  close involvement in planning and providing education and training for potential members  regulation of entry  monitor and control standards of performance and behaviour of members

Levels of HR planning Organisation or enterprise level  Acquiring human resources  Developing human resources  Managing and motivating human resources  Renewing human resources

HR roles and responsibilities in HR planning    

HR department Corporate management Line managers Individual employees

HR roles and responsibilities in HR planning 

HR department      

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Inform about importance of planning HR policies and programmes Highlighting potential problems Inform about appropriate approaches Monitor and adapt HR plans on a continuing basis Encourage the allocation of sufficient resources Foster (employee’s) involvement, commitment and acceptance of responsibility for own department Facilitate the business planning process

HR roles and responsibilities in HR planning 

Corporate management 

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Develop and monitor business plan for the organisation Take a long-term view of the organisations goals and strategies Facilitate systematic interaction and debate between ‘top-down’ and ‘bottom-up” strategies Implement the HR planning activities needed Ensure the allocation of appropriate resources Work with HR function to establish appropriate development and career paths

HR roles and responsibilities in HR planning 

Line managers        

Implement HR plans Systematically consider the factors likely to affect their part of the organisation Communicate standards of performance Discuss training and development needs with employees Identify employee’s training and development needs Ensure employees are aware of their development needs Ensure that performance problems are addressed Establish regular communication with employees

HR roles and responsibilities in HR planning 

Individual employees  Identify

own training and development

needs  Recognise the need to train and retrain and to change the roles and work practices  Involve themselves, as appropriate, in plans and decisions which will affect them as individuals or the organisation as a whole

HR planning process Organisation’s strategies and plans

Human resources requirements

Human resources availability

Assessment of human resources needs •Gap analysis Action planning Implementation

HR planning process 1. Agree strategies and plans 2. 3. 4. 5. 6.

Assess requirements Assess available human resources Gap analysis Plan action to close gaps Implement and monitor plans

Organisation level activities 

Acquiring 

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Developing 

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Career planning and counselling, performance planning and review, training, development

Maintaining 

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Job analysis, job description, person profile, recruitment, selection, induction, initial training

job design, management style, communication, involvement, rewards, remuneration, ‘people management’

Renewing 

termination, redundancy, retirement, outplacement

Benefits for organisation 

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Contributes to overall corporate planning process Part of process of implementing agreed organisational strategies and plans

Uses of HR planning 

Assessing present resources  human

resources inventory  workforce profiles  forecasting HR requirements Statistical  Non-statistical techniques 

 replacement

and succession planning

Source (unless otherwise specified): Rudman, R. 2002, Human Resources Management in New Zealand, 4th ed Pearsom Education, New Zealand