HRM chap 1 Overview on human resource management

Chap 2 HR planning

ÿþChapter 2  

HR PLANNING  

I. Introduction to HR planning  

II. Forecast HR demand  

III. Forecast labor supply  

IV. Balance labor demand and supply  

I. Overview on HR planning  

1. Definiton  

" Human resource planning is a process of evaluating, estimating HR demand to meet organization s business objectives and making labor plans to achieve these objectives.  

" Human resource planning is a process by which an organization ensures that  

" it has the right number and kinds of people  

" at the right place  

" at the right time  

" capable of effectively and efficiently completing those tasks that will help the organization achieve its overall strategic objectives  

Contents of Human Resource Planning  

" Forecast human demand  

" Forecast human supply  

" Balance human demand and supply  

2. Roles of HR planning  

" Takes central role in strategic HRM.  

" Directly affect on implementation of firm s business strategy.  

" Be base for employment, training and HR development activities.  

" Support to implement and harmonize HR activities.  

3. Types of HR planning  

" Long-term planning  

" Intermediate planning  

" Short-term planning  

" Long term planning (>=3 years)  

o Bases: Mission, vision, primes, goals, overall objective, overall strategy..  

A mission statement defines what business the organization is in, including  

Øð why it exists  

Øð who its customers are  

Øð Goals are generally defined for the next 5-20 years.  

Øð Forecast human demand for future through consider and evaluate inside and outside organization s environment.  

Øð For organization with large scale, specific activities, high skill labor requirement, HR planning may be longer (5, 10, 20& years).  

Øð Intermediate planning (1-3 years)  

Øð Base on specific objectives need to achieve: Product quantity, Revenue, market shares&  

Øð Forecast human demand for each activities, quantity of labor movement between divisions of organization, changes in human productivities.&  

Øð Short term HR planning (<= 1 year)  

Øð Base on specific objectives and operation plan  

Øð Estimates human demand for organization base on experiences, skills to meet organizational objectives and operational plans.  

4. Factors affecting HR planning  

a. External factors  

b. Operational factors