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Human Resource Planning: Importance and Purpose

Human Resource Planning: Importance and Purpose. Shortage of qualified resources to fill jobs Wider span of retirement options Need for life-long learning Resistance of employees to change and organizational demand for it Reduce personnel costs by anticipating shortages and surpluses

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Human Resource Planning: Importance and Purpose

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  1. Human Resource Planning: Importance and Purpose • Shortage of qualified resources to fill jobs • Wider span of retirement options • Need for life-long learning • Resistance of employees to change and organizational demand for it • Reduce personnel costs by anticipating shortages and surpluses • Provide informed base for planning employee development • Provide equal opportunities

  2. Levels of Strategic Planning • Corporate level:Board of Directors, CEO, Vice Presidents • Business Level • Product Division 1 • Product Division 2 • Functional Level • HR Division, Marketing Division, Finance, etc

  3. Link to Organizational Strategy • How do HR decisions affect external standards (EEO compliance, OSHA, community relations)? • How do HR decisions affect internal standards? Do financial markets react to HR decisions, e.g., layoffs, hiring, training?

  4. Human Resource Department & Assessing Added Value • Stakeholder opinions and perceptions • Auditing human resource activities • HR budgets • Activity, cost or headcount ratios • Human resource accounting -- putting a $$ value on HR activities • Human Resource competencies

  5. Human Resource Plan Organizational Goals HR Needs Forecast Employee Information HR Availability Projections Monitor Results Analysis of HR Gaps Implement Program Generate,Test Alternatives

  6. Employment Planning • Demand analysis • Linking business plans to hr requirements • Internal supply analysis • External supply analysis • Reconciling Supply and demand • Activities for shortages and surpluses

  7. Human Resource Planning Process External Environment Internal Environment Strategic Planning HR Planning Forecasting HR Requirements Comparing Requirement & Availability Forecasting HR Availability

  8. Human Resource Planning Process, Cont. Comparing Req’s & Availability Demand = Supply Surplus of Workers Shortage of Workers Retirement Layoff Downsize Hire Overtime Status Quo

  9. Replacement Chart Manager Training & Dev.: Ms. Jones Readiness Code 0= ready now 1=ready 1 yr. 2=ready 2 yrs Candy Kane: 0 Austin Ford: 0 Mark Time:2 P. Button: 1 E. Silver: 2 M. Monroe: 0 J. Russell: 0 S. Temple: 1 M. McGuire: 0 S. Sosa: 1 M. Time: Labor Rel. C. Kane: Development A. Ford: Training.

  10. Backwards & Forwards • Summing up — Today we explored the links between organizational strategy and Human Resource Planning, at bench marks for the HR Department and at techniques of employment planning but for expansion and for downsizing • Looking ahead: Next time we take an in-depth look at Human Resource Information Systems. What types of information are typically stored, how these types of information can be used to identify problems and to make informed decisions.

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