HR Planning is forecasting the supply and demand for labor in a firm or unit, and planning programs to assure that supply matches demand in the future.
Who Is Planned For?
Aggregate level (total headcount, headcount in job or job family)
Individual positions (managerial succession planning)
When Is Planning Done?
At least annually
Time horizons vary
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What is Human Resource Planning?
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Figure 3.1 A Model for Human Resource Planning
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Human Resource Planning Model
Demand Analysis
Supply Analysis
Reconcile Gaps
Forecast Organizational Conditions
Forecast Labor Demand
Forecast Internal Supply
Forecast External Supply
Internal and External Information Collection
Judgmental Methods (use human insight, experience, and intuition)
Bottom-Up (Unit) Forecasting – sum the forecasts of each unit
Top-Down Forecasting – top management anticipate future employment requirements
Delphi Technique – experts respond to rounds of opinion surveys, eventually converging on a forecast
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Forecasting the Demand for Labor: How many people will we need?
Simple Mathematical Methods
Use sales forecasts plus productivity and staffing ratios to predict labor requirements.
If we need 1 secretary per 8 salespersons, and each salesperson averages $2,000,000 in sales per year, how many of each are required if we anticipate total sales of $32,000,000 next year?
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Forecasting the Demand for Labor: How many people will we need?
16 sales people and 2 secretaries
Complex Mathematical Methods
Multiple regression
Linear programming
Workforce modeling
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Forecasting the Demand for Labor: How many people will we need?
Skills Inventories manual or computerized lists of employee experience, training, skills, and preferences
Human Resource Information Systems (HRIS)
database management systems
screens for inputting data
programs for cross checking accuracy
modules for specific purposes/reports
query features
self-serve interfaces
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Tracking the Internal Supply of Labor: Who have we got?
Markov analysis
Transition Probability Matrix shows the likelihood of moving from one “state” (job) to another in a year.
When multiplied by numbers starting the year in each state, predicts the number in each state at the end of the year.
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Predicting the Internal Supply of Labor: Who will we have next year?
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Table 3.1 Applying Markov Analysis
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