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• Human Resource Planning (HRP)

  The process of forecasting future human resources requirements to ensure that the organization will have the required number of employees with the necessary skills to meet its strategic objectives
• Importance of HRP


  • Helps an organization achieve its strategic goals and objectives
  • Achieve economies in hiring new workers
  • Make major labor market demands more successfully
  • Anticipate and avoid shortages and surpluses of human resources
  • Control or reduce labor costs
• Steps in Human Resources Planning


  1. Analyzing Organizational Objectives

  2. Inventory of Present Human Resources

  3. Forecasting Demand and Supply of Human Resource

  4. Estimating Manpower Gaps

  5. Formulating the Human Resource Action Plan

  6. Monitoring, Control, and Feedback
• Analyzing Organizational Objectives


  The objectives to be achieved in various fields such as production, marketing, finance, expansion, and sales explain the work to be done in the organization
• Inventory of Present Human Resources

  Analyzing the current number of employees, their capacity, performance, and potential
• Internal Supply


  Present employees who can be trained, transferred, or promoted to meet anticipated needs
• External Supply


  People in the labor market not currently working for the organization, including those employed elsewhere and unemployed expected to join the organization to meet the anticipated needs
• Forecasting Demand and Supply of Human Resource

  1. Estimating the human resources required at different positions

  2. Measuring the available internal and external sources to fulfill those requirements
• Skills Inventories


  Manual or computerized records summarizing an employee's education, experience, interests, and skills used to identify internal candidates eligible for transfer or promotion
• Management Inventories


  Records summarizing the qualifications, interests, and skills of management employees, the number and types of employees supervised, the duties of such employees, total budget managed, previous managerial duties and responsibilities, and managerial training received
• Replacement Charts


  Visual representations of who will replace whom in the event of a job opening. Likely, internal candidates are listed and their age, current performance rating, and promotability status
• Replacement Summaries


  Lists of likely replacements for each position and their relative strengths and weaknesses, as well as information about the current position, performance, promotability, age, and experience
• Succession Planning


  The process of ensuring a suitable supply of successors for current and future senior or key jobs so that the careers of individuals can be effectively planned and manage
• Markov Analysis


  A method of forecasting internal labor supply that involves tracking the pattern of employee movements through various jobs and developing a transitional probability matrix
• Forecasting Future Human Resources Needs (Demand)

  Considering projected turnover, changing needs of the organization, planned technological and administrative changes, and financial resources available
• Trend Analysis


  The study of a firm's past employment levels over a period of years to predict future needs
• Ratio Analysis


  A forecasting technique used to determine future staff needs by using ratios between some causal factor (such as sales volume) and the number of employees needed
• Scatter Plot


  A graphical method used to help identify the relationship between two variables
• Regression Analysis


  A statistical technique involving the use of a mathematical formula to project future demands based on an established relationship between an organization's employment level (dependent variable) and some measurable factor of output (independent variable)
• Nominal Group Technique


  A decision-making technique that involves a group of experts meeting face-to-face. Steps include independent idea generation, clarification and open discussion, and private assessment
• Delphi Technique


  A judgmental forecasting method used to arrive at a group decision, typically involving outside experts as well as organizational employees. Ideas are exchanged without face-to-face interaction, and feedback is provided and used to finetune independent judgments until a consensus is reached
• Equilibrium


  When the expected supply matches the actual demand, organizations do not need to change their course of action
• Shortage


  When the internal supply of human resources cannot meet the organization's needs
• Surplus


  When the internal supply of employees exceeds the organization's demand
• Formulating the Human Resource Action Plan


  Finalizing the plan for new recruitment, training, interdepartmental transfer in case of shortage, or voluntary retirement schemes and redeployment in case of surplus
• Monitoring, Control, and Feedback


  Implementing the human resource action plan, updating inventories, and comparing the human resource plan and its actual implementation
• Relationship between HR and Strategic Planning

  The HR plan must align with the overall goals of the organization as well the long- and short-term strategic plans set by the organization
• Career


  A series of work-related positions, paid or unpaid, that allows a person to grow in job skills, success, and fulfillment
• Five Career Stages


  • Exploration (Ages 21-25)
  • Establishment (Ages 25-35)
  • Advancement (Ages 35-45)
  • Maintenance (Ages 45-55)
  • Decline (Ages 55+)
• Exploration Stage


  The stage before gaining permanent employment, where individuals may be finishing an undergraduate or graduate degree and begin to eliminate many options and focus on several professions that interest them
• Establishment Stage


  Includes the individual's initial job search, applying for a job, and accepting their first long-term position, likely an entry-level or mid-level position with comparably minor responsibilities
• Career exploration stage


  1. Eliminate many options

  2. Focus on several professions that interest

  3. Explore many different career paths through shadowing, internships, part-time work, and volunteering

  4. Speak to teachers and counselors about courses and training required

  5. Use college career center to make connections with employers
• Establishment stage (ages 25-35)

  1. Initial job search

  2. Applying for a job

  3. Accepting first long-term position

  4. Learning, career development, and establishing place in organization

  5. Uncertainty and anxiety entering workforce

  6. Excitement for new phase and anticipation of future
• Mid-career stage (ages 35-45)

  1. Career stability and progression or new profession/field transition

  2. Reach peak productivity levels

  3. Maintain skill set specific to role

  4. Demonstrate commitment to work and solidify position

  5. Expect promotion or pay increase

  6. Reassess role if this does not occur

  7. Work-life balance is a concern
• Late-career stage (ages 45-55)


  1. Less demanding work environment

  2. Teach others and identify/train successor

  3. Fewer opportunities for advancement

  4. Enjoy mentoring younger employees

  5. Envision life after retirement and spend less time working
• Decline stage (ages 55-65)

  1. Enjoy break from working by spending more time with family/friends and traveling

  2. Channel skills and knowledge into reviving past hobbies, developing new interests, or volunteering
• Career planning


  Deliberate process through which someone becomes aware of personal skills, interests, knowledge, motivations, and other characteristics; acquires information about opportunities and choices; identifies career-related goals; and establishes action plans to attain specific goals
• Career development


  Lifelong series of activities that contribute to a person's career exploration, establishment, success, and fulfillment
• Career development for older workers is just as important as it is for younger employees
• Importance of career planning and development

  • Attract and retain talent
  • Achieve better productivity
  • Reduce employee turnover
  • Improve employee morale and motivation
  • Meet the immediate and future needs of the organization