Human Resource Planning: An HR function

The process of systematically reviewing human resource requirements to ensure that the required number of employees, with the required knowledge, skills and abilities are available when needed.
Strategies
 Retrenchment
 Stability
 Growth



Importance of HRP :
It ensures:
 that the available talent is correctly allocated
 labour costs are controlled
 the headcount is appropriate
 productivity is improved
 talented employees are retained
Managing Human Resource Surplus or Shortage:
 Workforce Realignment
 “Downsizing”, “Rightsizing”, and “Reduction in Force” (RIF) all mean reducing the number of employees in an organization.
 Causes
 Economic—weak product demand, loss of market share to competitors
 Structural—technological change, mergers and acquisitions
 Positive consequences
 Increase competitiveness
 Increased productivity
 Negative consequences
 Cannibalization of HR resources
 Loss of specialized skills and experience
 Loss of growth and innovation skills
 Managing survivors
 Provide explanations for actions and the future
 Involve survivors in transition/regrouping activities
 Downsizing approaches
 Attrition and hiring freezes
 Not replacing departing employees and not hiring new employees/
 Early retirement buyouts
 Offering incentives that encourage senior employees to leave the organization early.
 Layoffs
 Employees are placed on unpaid leave until called back to work when business conditions improve.
 Employees are selected for layoff on the basis of their seniority or performance or a combination of both.
 Outplacement services provided to displaced employees to give them support and assistance:
 Personal career counseling
 Resume preparation and typing services
 Interviewing workshops
 Referral assistance
 Severance payments
 Continuance of medical benefits
 Job retraining
Benefits of HR Planning
 Better view of the HR dimensions of business decisions.
 Lower HR costs through better HR management.
 More timely recruitment for anticipate HR needs.
 More inclusion of protected groups through planned increases in workforce diversity.
 Better development of managerial talent.
Successful HRP the role of HR
 HR personnel to understand the role of HRP processes.
 Top management to be supportive.
 Not to start with an overly complex system.
 Healthy communications between HR personnel and line managers.
 HR plan to be integrated with the organisation’s strategic plan.
 Balance between qualitative and quantitative approaches.