Hrm in hsc lo1.1
Download as PPTX, PDF0 likes68 views
This document provides an overview of human resource planning and recruitment processes. It discusses forecasting human resource needs and supply, identifying potential shortages or surpluses, strategies for addressing them such as transferring or training employees, and planning for retention. The goals of human resource planning are to ensure the organization has the right number and skills of employees required and to reduce reliance on external recruitment. Forecasting techniques include trend analysis, ratio analysis, and managerial judgement. Factors that influence supply include the current workforce, external labor market conditions, and organizational changes.
Hrm in hsc lo1.1
- 1. Managing Human Resources Lecture Week 2 Recruitment Planning Lecturer: P.Bembridge 1
- 2. Lecture Plan Human Resource Planning Forecasting HR Needs Forecasting Supply Planning Anticipated Shortages Labour Turnover and Stability Increasing Employee Productivity Retention Planning 2
- 3. HRP may be defined as a strategy for the acquisition, utilisation, improvement and retention for the human resources required by the enterprise in pursuit of its objectives. 3
- 4. Traditional Manpower Planning Forecast demand for specific skills, competences or grades of employee. Forecast supply of these Plan to remove any discrepancy between demand and supply. 4
- 5. HRP and corporate planning HR Planning is critical to organisation strategy, because it is able to identify: Shortfalls in organisational capability (skills, knowledge, people) Surpluses in organisational capability Poor utilisation of people 5
- 6. AIMS of HRP To attract and retain the number of people required, with the skills, expertise and competences required. To anticipate potential surpluses or shortfalls which will need to be adjusted. To develop a well-trained and flexible workforce To reduce dependence on external recruitment To improve the utilisation of people 6
- 7. Forecasting Supply Internal Factors: Skills and productivity level of current workforce Structure of the workforce; age, hours, rates of pay, skills Likelihood of changes to the productivity: Wastage, promotions, transfers, absenteeism etc. Employee trainability, morale and motivation. Organisational, cultural, technological, and other changes that may affect productivity 7
- 8. Forecasting Supply External Factors Skill availability Changes in skill availability Competitor activity Demographic changes Wage and salary rates 8
- 9. DISCUSSION Make a group of 3-4 Select an organisation you are familiar with. Is its need for labour growing, shrinking or moving into new skill areas? What is the organisation doing about this? What specific challenges are posed by the current economic recession for HR planning? 9
- 10. Forecasting HR Needs First step in HR planning Forecast revenue Estimate the number of persons needed to achieve this volume 5–10 Figure: Forecast Techniques in HR Planning
- 11. Forecasting HR Needs Trend analysis The study of a firm’s past employment needs over a period of years to predict future needs. Ratio analysis A forecasting technique for determining future staff needs by using ratios between a causal factor and the number of employees needed. Assumes that the relationship between the causal factor and staffing needs is constant. 5–11
- 12. Forecasting HR Needs Scatter plot A graphical method used to help identify the relationship between two variables. Size of Hospital Number of (Number of Beds) Registered Nurses 200 240 300 260 400 470 500 500 600 620 700 660 800 820 900 860
- 13. Determining the Relationship Between Hospital Size and Number of Nurses 13 Forecasting HR Needs Scatter plot
- 14. Forecasting HR Needs Computerized forecasts The use of software packages to determine of future staff needs by projecting sales, volume of production, and personnel required to maintain a volume of output. Generates figures on average staff levels required to meet product demands, as well as forecasts for direct labor, indirect staff, and exempt staff. Typical metrics: direct labor hours required to produce one unit of product (a measure of productivity), and three sales projections—minimum, maximum, and probable. 5–14
- 15. Forecasting HR Needs Managerial Judgment To modify forecast based on factors e.g. entering into a new market Difficult to take a long-term perspective when market conditions change dramatically 5–15
- 16. Sample Questions from a Unit Forecasting Questionnaire List any jobs that have changed since the last forecasting period and any that will change in the next forecasting period. If vacancy can be filled with present employees, note whether training will be required. Specify nature of training needs. What percentage of employees are performing jobs up to standard? How many employees will be absent in the next forecasting period because of disability, educational, or other leaves? 16
- 17. Planning for Anticipated Shortages Transfer employees to jobs in which shortages exist Train employees to move up to jobs in which shortages exist Have employees work overtime Increase employee productivity Hire part-time employees 17
- 18. Planning for Anticipated Shortages (cont’d.) Hire temporary full-time employees Hire permanent full-time employees Subcontract work to other firms Forgo increases in production Install equipment to perform some of the tasks that would be done by workers (capital substitution) 18
- 19. Ways to Increase Employee Productivity Offer monetary incentives, e.g. bonuses, for higher productivity or performance levels Improve employees’ job skills to produce more in less time or at lower cost Re-design work processes and methods so greater outputs are achieved Use more efficient equipment so greater outputs are achieved 19
- 20. Planning for Anticipated Labour Surpluses Close plants Lay off some workers permanently Give incentives for early retirement Let the workforce shrink by attrition Retrain and transfer workers Shut down plants (or parts of them) temporarily Lay off workers temporarily Reduce the work week Use work sharing Cut or freeze pay and/or benefits 20
- 21. Labour Turnover and Retention LT is the number of employees leaving an organisation and being replaced. The rate is often expressed as the number of people leaving, as a percentage of the average number of people employed in a given period. The term natural wastage is used to describe a normal flow of people out of an organisation through retirement, career or job change, relocation, illness and so on. 21
- 22. Labour turnover rate Number of leavers in a period X100 = % turnover Avg no. employed in that period Normally quoted as an annual rate May be used as turnover per organisation, department or group of employees. Disadvantages: 1. Does not tell who is leaving. 2. High turnover won’t reflect any instability if the core experienced staff consistently remains. 22
- 23. Labour stability and Activity No. of employees with 1 or more year’s service X100% No. of employees employed at the beginning of the year = % Stability Activity: Suppose a company has 20 employees at the beginning of 2008, and 100 at the end of the year. Disliking the culture created by the expansion, 18 of the original experienced labour force resign. Calculate: The crude labour turnover rate The stability rate Comment on the significance of your result. 23
- 24. Answer: BIM Index: 18 leavers x100 = 30% 60 avg. employees Stability index: 2 x 100 = 10% Stability 20 24
- 25. Causes of labour turnover Natural wastage occurs through: a) Illness or accident b) A move from the locality c) Changes to the family situation d) Retirement e) Career change Other factors: a) Economic climate and the state of the job market b) The age structure and length of service of the work force. 25
- 26. Is turnover a bad thing? ADVANTAGES: Opportunity to inject new blood Balance in the age structure Opportunities for offering promotion Ability to cope with labour surpluses 26
- 27. Disadvantages of labour turnover Broken continuity of knowledge, relationships, culture and succession Lead time and lost performance to cover Morale problems The cost of turnover, including: Replacement costs Preventive costs 27
- 28. Retention Planning A systematic investigation into causes of high turnover: Exit interviews with leaving staff Attitude surveys Information on variable related to turnover (ageing workforce, higher pay rates). 28
- 29. The Human Resource Plan Resourcing plan Internal resource plan Recruitment plan Training plan Re-development plan Flexibility plan Productivity plan Downsizing plan Retention plan 29
- 30. THANK YOU! 30