HUMAN RESOURCE PLANNING
The nature of HR planning
• Hard dimension – quantitative analysis of employment issues. Soft dimension – creating and shaping the culture – which looks at integrating corporate culture and; employee belief and behavior (Marchington and Wilkinson, 1996)
The aims of HR planning
Aim is basically to obtain and retain the people in terms of quantity and quality by:
• Anticipating problems
• Developing a well training and flexible workforce
• Acquiring the capability to reduce the organizations dependence on external recruitment
The stages of HR planning
• Internal and external auditing make up for the major part of the LSF.
• LF produces the following data:
• Organizational demography
• Adequate recruitment, performance appraisal and performance management system
• Projected changes in staffing level due to technological and other developments
• Several methods: labour turnover analysis, stability indices and survival rates
Labour Turnover Analysis
- predicted from the historical pattern of their length of service
number of leavers in a specified period of time (usually 1 yr)
number of employees in the company over the same period of time
- some weakness as it does not take into consideration of the voluntarily termination specially if they are core skilled employees – known as voluntary wastage. Could be expensive as it involves aspect of recruitment, training and personal replacement. Psychologically team work based employment will affected as new induction with norming period takes a long time.
- Critics: 1. may be influenced by high turn over in small groups; 2. average number of workers used may not represent the current trend.
- More accurate which shows those remain in the company and their length of service
Number of employees with one year’s service or more
Number of employed one year ago
- but the method does differentiate departments with long service vs short service employment
- Are the proportion of employees who enter a company’s employment at a given date and are still in the company’s employment after a period of months / years.
- Example – the rate of survival for graduate who enter the company – which will enable planners to predict the behaviour pattern of a group of similar pattern of entrant for company resourcing provided policies remain unchanged.
• Rice, Trist and Banforth (1950) labour wastage is predictable within broad parameters and therefore capable of being forecast and they identified labour turn-over into 3 discrete period:
- the induction crisis
- the transit period after induction where they begin to bond with the organization.
- The settled and committed stage
• Detailed wastage pattern may inspire organizational decisions related to:
- planning recruitment, training and retaining staff
- developing policies to minimize the loss of core people
- managing career progression
(refer to Career Progression Diagram)
• LSF also involves auditing the external labour market to identify:
- local demographic patterns such as the age group, skill groups, numbers of projected school and college leavers, the migration of people, and etc.
- levels of unemployment, data on...