UNIT 03 HUMAN RESOURCE PLANNING

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1 UNIT 03 HUMAN RESOURCE PLANNING NGÔ QUÝ NHÂM

2 WHAT DO I NEED TO KNOW? 1. Discuss Strategic HRM and the linkage between organizational strategy and HRM activities. 2. Discuss how to plan for human resources needed to carry out the organization s strategy. 3. Determine the labor demand for workers in various job categories. 4. Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage.

3 INTRODUCTION v The goal of strategic management in an organization is to deploy and allocate resources in a way that gives it a competitive advantage. v Human resource managers should: ² have input into the strategic plan, ² have specific knowledge of the organization s strategic goals, ² know what types of employee skills, behaviors, and attitudes are needed to support the strategic plan, and ² develop programs to ensure that employees have those skills, behaviors, and attitudes. McGraw-Hill/Irwin 2006 The McGraw-Hill Companies, Inc. All rights reserved.

4 WHAT IS STRATEGIC MANAGEMENT? v Strategic Management is a process for ² analyzing a company's competitive situation, ² developing the company's strategic goals, ² and devising a plan of action and allocation of resources that will help a company achieve its goals. v Strategic human resource management is the pattern of planned human resource deployments and activities intended to enable an organization to achieve its goals. McGraw-Hill/Irwin 2006 The McGraw-Hill Companies, Inc. All rights reserved

5 WHAT IS HR STRATEGY? v HR strategy means a system of human resource practices for a particular job or collection of jobs aimed at the best employee performance possible to meet the firm s ultimate goals.

6 WHAT IS HR STRATEGY?

7 MODEL OF THE STRATEGIC MANAGEMENT PROCESS Strategy Formulation Strategy Implementation Mission Goals External Analysis Opportunities Threats Strategic Choice Human Resource Needs Skills Behavior Culture HR Practices Recruiting, Training, Performance management, Labor relations, Employee relations, Job analysis Job design, Selection, Development, Pay structure, Incentives, Benefits Firm Performance Productivity, Quality, Profitability Internal Analysis Strengths Weaknesses Human Resource Capability Skills, Abilities, Knowledge Human Resource Actions Behaviors, Results McGraw-Hill/Irwin 2006 The McGraw-Hill Companies, Inc. All rights reserved.

8 WHAT IS HR STRATEGY?

9 PROCESS OF BUILDING HUMAN RESOURCE STRATEGY Industry analysis Analyze strategy & recognize value chain Recognize the key processes Identify key people Build the HR strategy Industry growth Customers taste trends Competition Clarify strategic goals, competitive advantage, core competenci es Recognize value chain Identify key processes s are the ones that are most critical to the successful implementation of each component of the value chain. The most valuable and unique people are those who are critical to the execution of the most important parts of your value chain. Recruitment Selection Training Development Performance Management Rewards Communicati on

10 DELL S HR STRATEGY

11 DELL S HR STRATEGY

12 THE PROCESS OF HUMAN RESOURCE PLANNING v Organizations should carry out human resource planning so as to meet business objectives and gain a competitive advantage over competitors. ² Human resource planning compares the present state of the organization with its goals for the future ² Then identifies what changes it must make in its human resources to meet those goals

13 THE HUMAN RESOURCE PLANNING PROCESS

14 FORECASTING v Forecasting: attempts to determine the supply and demand for various types of human resources to predict areas within the organization where there will be labor shortages or surpluses. There are three major steps to forecasting: 1. Forecasting the demand for labor 2. Determining labor supply 3. Determining labor surplus or shortage

15 FORECASTING THE DEMAND FOR LABOR TREND ANALYSIS v Constructing and applying statistical models that predict labor demand for the next year, given relatively objective statistics from the previous year. LEADING INDICATORS v Objective measures that accurately predict future labor demand.

16 DETERMINING LABOR SURPLUS OR SHORTAGE v Based on the forecasts for labor demand and supply, the planner can compare the figures to determine whether there will be a shortage or surplus of labor for each job category. v Determining expected shortages and surpluses allows the organization to plan how to address these challenges.

17 GOAL SETTING AND STRATEGIC PLANNING v The purpose of setting specific numerical goals is to focus attention on the problem and provide a basis for measuring the organization s success in addressing labor shortages and surpluses. v The goals should come directly from the analysis of supply and demand. v For each goal, the organization must choose one or more human resource strategies.

18 OPTIONS FOR REDUCING A SURPLUS Downsizing Pay reductions Demotions Transfers Work sharing Hiring freeze Natural attrition Early retirement Retraining

19 OPTIONS FOR AVOIDING A SHORTAGE Overtime Temporary employees Outsourcing Retrained transfers Turnover reductions New external hires Technological innovation

20 HR STRATEGIES FOR ADDRESSING A LABOR SHORTAGE OR SURPLUS

21 IMPLEMENTING AND EVALUATING THE HR PLAN v When implementing the HR strategy, the organization must hold some individual accountable for achieving the goals. v That person must also have the authority and resources needed to accomplish those goals. v Regular progress reports should be issued. v The evaluation of results should not only look at the actual numbers, but should also identify which parts of the planning process contributed to success or failure.