Dr. Edward O’Connor, Maynooth University School of Business
HRP – What is it?
Human resource planning (HRP) systematically forecasts an organization’s future HR requirements.
Key Objective: Get all the rights right—ensuring the right people with the right skills are in the right places at the right times for the right price.
Characteristics:
Continuous, data-driven process.
Optimizes the company’s most valuable asset, its people, by avoiding shortages or surpluses.
Importance of HRP
Aligns changing organizational needs with people strategy.
Balances labor supply against future demand.
Supports organization’s objective of securing a competitive advantage.
General Objectives of HRP
Continuity Flow
Right people in right place at right time with necessary skills.
Policies related to recruitment, succession planning, training, and retention.
Maintenance
Retain stability in workforce through pay, benefits, and individual career planning.
Response to Change
Implement changes from major operational strategies (e.g., relocation, retraining).
Control
Ensure staff movement aligns with standards and performance systems, building long-term relationships.
Specific steps determined by the organization’s strategic plan (e.g., launching new products/services).
HRP – Forecasting
Components
Demands/Requirements Forecast: Determine the number, skill, and location of employees for future goals.
Supply/Availability Forecast: Assess whether the firm can secure needed skills from various sources.
HRP – Importance of Forecasting
Predicts how staffing needs will change over time, helping to prepare for informed hiring decisions.
Supports efficient operations, avoiding costs from lost productivity and overstaffing.
Aims to protect financial health and overall success of the business.
HRP - Process
Demand Supply Process: Analyze strategic plans through HRM, workforce gaps, and future needs.
Manpower utilization and productivity analysis to fill identified gaps.
HRP – Requirements Forecast
Estimation of future staffing based on business goals, growth projections, turnover rates, and external changes.
Determine specific skills and qualifications needed to support strategic objectives.
HRP – Supply/Availability Forecast
Measures number of people available from internal vs. external sources.
Internal Supply Forecast: Inventory of the firm’s current competencies.
External Supply: Potential recruits from the labor force.
Balance between 'Make' (internal development) versus 'Buy' (external recruitment).
Strategic Human Resource Management (SHRM)
Designing The Strategic Analysis
Scan internal and external environments.
Understand the company mission and values.
Understand the HRM department mission and values.
Recognize challenges facing the company and HR department.
PEST/PESTEL Analysis: Identifies macro forces and is followed by SWOT analysis.
SWOT Analysis: Evaluates Strengths, Weaknesses, Opportunities, and Threats.
HRP – External Environment
Conduct PESTLE analysis before SWOT to gather valuable information for SWOT analysis, particularly in the opportunities and threats sections.
HRP - Internal Environment
SWOT Analysis
Value System: Identify useful attributes of the organization and environment.
Strengths and Weaknesses: Internal attributes that influence achievement of objectives.
Opportunities and Threats: External environmental attributes.
HRM – Externalities
Organisation as an Open System
Consider both intended and emergent strategies in workforce planning.
Knowt
Note
Studied by 13 people
