Industrial Psychology: Chapter 4

Human Resource Planning (HRP)

The process of anticipating and providing for the movement of people into, within and out of an organisation with the aim of finding the best fit between employees and jobs.

Strategic HR Planning

Translating organizational goals and plans into HR objectives to ensure that the organisation is neither over- nor understaffed, and that employees with the appropriate talents, skills and desire are available to carry out their tasks/duties in the right jobs at the right times.

Types of HR planning

•Proactive vs Reactive –

• Proactive: anticipates future needs.

• Reactive: responds to needs as they arise.

• Breadth of planning –

  • Narrow: focus on few areas (e.g. recruitment).

  • Broad: includes training, compensation, etc.

• Formality of plan –

  • Informal: handled quietly by HR/managers.

  • Formal: documented, data-supported plan.

• Degree of fit –

  • How closely HR plans align with the company’s strategic plan — from loosely tied to fully integrated.

Planning Horizon

•Short-range objectives: 1 year or shorter

•Intermediate objectives: 2-4 years

•Long-range objectives: 5-15 years

Managers responsibilities in SHRP

Identify demand and supply needs for each department, Review/discuss HR planning information with HR specialists, integrate the HR plan with departmental plans, monitor the HR plan to identify changes needed, review employee succession plans associated with the HR plan

Why is SHRP so important

•Creates competitive advantage

•Achieve immediate and long-term goals

•Improve profitability of the organisation

•A better understanding of the HR implications of organisational strategies

•Recruiting experienced talent well in advance of needs

•Improved planning of assignments and other employee developmental actions

•Improved analysis and control of personnel-related costs

•Strategic change (radical and incremental)

Steps in the SHRP process

1.) Establish the mission, vission & values

2.) Conduct an external analysis

3.) Conduct an internal analysis

4.) Forecasting demand

5.) Forecasting supply

6.) Developing, formulating and implementing strategy

7.) Succession planning

Common Pitfalls in the SHRP

• Identity Crisis – HR Must Define a Clear Mission to Avoid Being Sidelined.

• Top management support – Full backing is essential for success.

• Size of effort – Start small; overly complex beginnings cause failure.

• Coordination – Align HR plans with those of other internal and external functions.

• Integration – HR plans must link with the overall company strategy.

• Non-involvement of managers – Operating managers must participate actively.

HR Research & Metrics

•Types of research

•Basic research

• Advance knowledge through theory

Explain underlying principles/processes

•Applied research

• Discovery through application

• Solve problems/ improve situation

•The Researcher

government

private organizations

professional associations

universities

Research Techniques

•Surveys

•Exit interviews

•Historical study

Controlled experiments

Cost-Benefit Analysis

• Employee turnover – Costs include separation, replacement, and training.

• Absenteeism – Costs: lost salaries, benefits, supervisor time, and replacement costs.

• Smoking – Adds costs from absenteeism, health care, property damage, and lost time.

• Employee attitudes – Job dissatisfaction increases absenteeism, turnover, and grievances.

• Labour costs – Major expense; need to analyse costs during wage bargaining to protect financial stability.