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Human Resource Planning
and The process of analyzing and identifying the need for and availability of human resources so that the organization can meet its objectives.

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Human Resource
  Human Resource Planning
• Human Resource (HR) Planning
  – The process of analyzing and identifying the need for
    and availability of human resources so that the
    organization can meet its objectives.
      Benefits of HR Planning
• Better view of the HR dimensions of business
• Lower HR costs through better HR
• More timely recruitment for anticipate HR needs
• More inclusion of protected groups through
  planned increases in workforce diversity.
• Better development of managerial talent
Human Resource Planning
HR Planning Process
    Scanning the External Environment

• Environmental Scanning
  – Process of studying the environment of the
    organization to pinpoint opportunities and threats
     Internal Assessment of the
     Organizational Workforce

• Analyzing the jobs that will need to be done
  and the skills of people currently available to
  do them is the next part of HR planning.
  – Auditing jobs and skills
  – Organizational Capabilities Inventory
     Internal Assessment of the
     Organizational Workforce
• Auditing Jobs and Skills
  – What jobs exist now?
  – How many individuals are performing each
  – How essential is each job?
  – What jobs will be needed to implement future
    organizational strategies?
  – What are the characteristics of anticipated
     Internal Assessment of the
     Organizational Workforce
 Organizational Capabilities Inventory
  – HRIS databases—sources of information about employees’
    knowledge, skills, and abilities (KSAs)

 Components of an organizational capabilities
   – Workforce and individual demographics
   – Individual employee career progression
   – Individual job performance data
Human Resource Information Systems
• Human resource information systems (HRIS)
  – Database systems containing the records and
    qualifications of each employee that can be accessed
    to facilitate employment planning decision.


  – An integrated system of hardware, software, and
    databases designed to provide information used in
    HR decision making.

Human Resource Information Systems

 – Benefits of HRIS
      Administrative and operational efficiency in compiling HR data
      Availability of data for effective HR strategic planning
      Helpful in all HR activities
      Time and cost saving
       User Friendly (quick & responsive)

 – Uses of HRIS
      Automation of payroll and benefit activities
      To gain competitive advantage
      To track EEO data
      To make personnel decision
   Uses of an HR
Information System

Designing and Implementing an
• HRIS Design Issues
  – What information available and what is
    information needed?
  – To what uses will the information be put?
  – What output format compatibility with other
    systems is required?
  – Who will be allowed to access to the
  – When and how often will the information be
    needed?             2–14
           Accessing the HRIS
• Intranet
  – An organizational (internal) network that operates
    over the Internet.
• Extranet
  – An Internet-linked network that allows employees
    access to information provided by external entities.
• Web-based HRIS Uses
  –   Bulletin boards
  –   Data access
  –   Employee self-service
  –   Extended linkage
   Forecasting HR Supply and

• Forecasting is the use of information from
  the past and present to identify expected
              future conditions.
 Forecasting Demand for Human

– Organization-wide estimate for total demand
– Unit breakdown for specific skill needs by
  number and type of employee
  • Develop decision rules (―fill rates‖) for positions to
    be filled internally and externally.
  • Develop additional decision rules for positions
    impacted by the chain effects of internal
    promotions and transfers.
  Forecasting Supply for Human

• Forecasting the Supply for Human
  – External Supply
  – Internal Supply
 Forecasting Supply for Human Resources

• Forecasting External HR Supply
  – Factors affecting external
     •   Net migration for an area
     •   Individuals entering and leaving the workforce
     •   Individuals graduating from schools and colleges
     •   Changing workforce composition and patterns
     •   Technological developments and shifts
     •   Actions of competing employers
     •   Government regulations and pressures
Forecasting Supply for Human Resources

• Forecasting Internal HR Supply
  – Effects of promotions, lateral moves, and
  – Succession analysis
    • Replacement charts
    • Transition matrix (Markov matrix)
 Managing Human Resource Surplus or
• Workforce Realignment
  – ―Downsizing‖, ―Rightsizing‖, and ―Reduction in
    Force‖ (RIF) all mean reducing the number of
    employees in an organization.
  – Causes
    • Economic—weak product demand, loss of market
      share to competitors
    • Structural—technological change, mergers and
• Downsizing approaches
  – Attrition and hiring freezes
     • Not replacing departing employees and not hiring new
  – Early retirement buyouts
     • Offering incentives that encourage senior employees to leave
       the organization early.
  – Layoffs
     • Employees are placed on unpaid leave until called back to
       work when business conditions improve.
     • Employees are selected for layoff on the basis of their
       seniority or performance or a combination of both.
     HR Strategies and Plan
• HR Strategies
  – The means used to anticipate and manage the supply
    of and demand for human resources.
     • Provide overall direction for the way in which HR activities
       will be developed and managed.

     Strategic Plan

                     Human Resources
                       Strategic Plan

                                            HR Activities
HR Management
   and Jobs
       HR Management and Jobs

• Approaches to Understanding Jobs
  –   Workflow analysis
  –   Job design
  –   Job analysis
  –   Job descriptions and job specifications
             Workflow Analysis
• Workflow Analysis
  – A study of the way work (inputs, activities, and
    outputs) moves through an organization.

                     Activities            Outputs
                     Tasks and             Goods and
                       Jobs                 Services

Developing Jobs for Individuals
         and Teams
• Job Design
  – Organizing tasks, duties, and responsibilities into
    a productive unit of work.

                     Job Design

      Job                Job            Physical and
  Performance        Satisfaction       Mental Health
          Nature of Job Design
• Job Enlargement
  – Broadening the scope of a job by expanding the
    number of different tasks to be performed.
• Job Enrichment
  – Increasing the depth of a job by adding the
    responsibility for planning, organizing , controlling,
    and evaluating the job.
• Job Rotation
  – The process of shifting a person from job to job.
              Nature of Job Design
•   Ergonomics is the science of fitting the job to the worker. When there is a
    mismatch between the physical requirements of the job and the physical
    capacity of the worker, work-related musculoskeletal disorders (WMSDs)
    can result.

•   Work-related musculoskeletal disorders (WMSDs) can be prevented by
    simple and inexpensive changes in the workplace.
   The Nature of Job Analysis

• Job Analysis
  –A systematic way of gathering and analyzing
   information about the content, context, and the
   human requirements of jobs.
• Phases of Job analysis
• Methods & Uses of Job Analysis
   The Phases of Job Analysis
Steps in the Job Analysis Process
  1. Determine who will do the analysis and get
     top management buy in to the process.
  2. Choose jobs that are critical to the success
     of the company and have a sufficient
     number of employees in them.
  3. Review what has already been written
     about the job.
The Phases of Job Analysis
4. Select job agents such as incumbents, supervisors
   or job analysts.
5. Collect job information through interviews,
   questionnaires and observations
6. Create a job description that identifies skills, effort
   responsibilities and working conditions of the job.
7. Creating Job Specifications. The final step uses job
   analysis information to create job specifications.
   Job specifications identify the knowledge, skills,
   and abilities that workers need in order to perform
   the tasks listed in the job description.
The Phases of Job Analysis
Analysis in
Typical Areas Covered in a
Job Analysis Questionnaire
 Job Descriptions and Job Specifications

• Job Description
  – Identification of the tasks, duties, and
    responsibilities of a job
• Job Specification
  – The knowledge, skills, and abilities (KSAs) an
    individual needs to perform a job
Sample of Job Description
   and Specification
       Job Description Components
• Identification                      • Essential Functions and
  –   Job title                         Duties
  –   Reporting relationships           – Lists major tasks, duties and
  –   Department                          responsibilities
  –   Location                        • Job Specifications
  –   Date of analysis                  – Knowledge, skills, and
• General Summary                         abilities
  – Describes the job’s                 – Education and experience
    distinguishing responsibilities     – Physical requirements
    and components                    • Disclaimer
                                        – Of implied contract
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