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Human Resource Planning

HRP & MPP – is there a difference? Hard v. Soft HRP HRP is the process for identifying an organisation’s current and future human resource requirements, developing and implementing plans to meet these requirements and monitoring their overall effectiveness. Human Resource Planning.

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Human Resource Planning

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  1. HRP & MPP – is there a difference? Hard v. Soft HRP HRP is the process for identifying an organisation’s current and future human resource requirements, developing and implementing plans to meet these requirements and monitoring their overall effectiveness Human Resource Planning

  2. Objective methods Time trends Ratio analysis Work study Subjective methods Managerial judgement Delphi technique Budgets Demand forecasting

  3. Labour turnover index • No. of leavers in a specified period • Average no. employed in same period • Stability index • No. of employees with 1 year’s service • No. employed 1 year ago • Census method • Survival rate x 100% x 100% Supply forecasting – quantitative methods

  4. Exit interviews Leaver questionnaires Attitude surveys Risk analysis Supply forecasting – qualitative methods

  5. Figure 5.3Employee ‘movements’ in an organisation

  6. If demand exceeds supply: Increase external supply Increase internal supply Reduce demand If supply exceeds demand: Decrease supply Discourage retention Increase demand Reconciling supply and demand

  7. Figure 5.5HRP – A contemporary approach Source: Adapted from Armstrong (2001) A Handbook of Human Resource Management Practice, p. 363. Reprinted with permission of Kogan Page.

  8. Micro-planning Contingency planning Succession planning Skills planning Soft human resource planning Variants on HRP

  9. Advantages: Can help reduce uncertainty Integration of HR policies and practices Can build flexibility Disadvantages: Difficult to forecast in turbulent times Plans are inaccurate due to lack of personnel data and/or clear business plan Advantages and disadvantages of HRP

  10. Planning seen as too problematic in changing environment Low organisational priority + weak HR function = inadequate resources Preference for pragmatism Research is over-theoretical and fails to recognise much HRP activity Explanation for lack of empirical evidence of HRP

  11. Planning is critical to strategy because it identifies: Gaps in capabilities that would prevent successful implementation Surpluses in capabilities that suggest opportunities for improving efficiencies and responsiveness Poor utilisation of highly valued organisational resources Lam & Schaubroeck, 1998: 5 HRP and Strategic HRM

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