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What is human resources planning?

Process of systematically reviewing HR requirements to ensure that the required number of people with the required knowledge, skills and abilities are available when needed.


What is human resources planning also known as?

Employment planning


What is the relationship between human resources planning and the organisations overall strategic plan?

HRP must be integrated part of overall organisational strategic plan


What precedes human resource planning?

Strategic HRM planning


What is strategic HRM planning?

Defining of the philosophy, objects and strategy


Why is HR planning important?

- Critical because it matches organisations and HR objectives with its people requirements
- Focus of it is on labour demand (number of people needed) and labour supply (number of qualified people available)
- Ensures available talent is correctly allocated, labour costs are controlled, employee head count is appropriate, productivity is improved and talented employees are retained


What does HR planning involve?

Involve entry of people (acquisition), development of peoples skills (development) and exit of people (departure) from the organisation


What could an organisation do if it had surplus employees?

- Review HR policies regarding permanent employment
- Outsourcing
- Retrenchment


What problems could an organisation face if it has too many low skilled/poorly qualified employees ?

- May face obstacles when introducing new technology or other change initiatives


What questions must be asked when doing HR planning?

o What mix of knowledge, skills and abilities do we require?
o What mix is required in the future?
o Do we have the right number of qualified employees today?
o How will numbers change in the future?
o How do our labour costs and productivity compare with those of our competitors?
o Where will we find the people we need?


What are the requirements for successful HR planning?

- HR personnel to understand HR planning process
- Top management is supportive
- Communication between HR and line management is healthy
- HR plan integrated with business strategic business plan
- Balance between quantitative and qualitative approaches to HR plan


What effect will a labour shortage have on employees?

o Burnout
o Working longer hours
o Increased pressure
o Reduced performance/productivity
o Decrease morale
o Increase labour turnover


What effect will a labour shortage have on the organisation?

o Inadequate supply of talent
o Increased overtime costs
o Production delays
o Reduced profit
o Lost business opportunities
o Industrial relations problems


What does HR need to do if there is a labour shortage?

o Increase overtime
o Increase casuals/part timers
o Postpone retirements
o Start recruiting
o Accelerate training and development
o Use outsourcing


What effect will a labour surplus have on employees?

o Rust out
o Job insecurity
o Decreased moral
o Reduced job performance
o Talents not fully utilised
o Loss of motivation
o Restricted career opportunities


What effect will labour surplus have on organisation?

o Excessive payroll costs
o Employees underutilised
o Low productivity
o Loss of competitiveness
o Retrenchment and downsizing costs
o Industrial relations problems
o Danger of losing top talent


What does HR need to do if there is a labour surplus?

o Stop recruiting
o Reduce casual and part timers
o Start early retirements
o Start retrenching
o Reduce work hours/overtime


What is a common mistake when in comes to HR planning?

Only focus on short term plans/goals


What factors should be considers when it comes to HR planning?

Must consider both internal and external factors such as economy, social, demographic, technological, legal and political.
Also need to take into consideration, age groups, sex and academic standards required


What forecasts are required by the HR manager?

1.Forecast of demand for HR within organisation
2.Forecast supply of human resource available within organisation
3.Forecast of the supply of external HR


Why are forecasts used in HR planning?

Forecasts are used to attempt to predict changes in organisations need for human resources


What are forecasts influenced by?

Influenced by strategic business objectives, demand for product and services, projected labour turnover, quality and type of state of economy


What are the two types of forecasts?

Quantitative approach and qualitative approach


What is the quantitative approach?

o Uses stats and maths to forecast demand for and supply of labour
o Uses employees as number and groups them via age, sex, experience, skills, qualifications, job level, pay level, performance rating etc


What is the qualitative approach?

o Use of opinions of experts (usually line manager) to predict future HR requirements
o Focus is on evaluations of employee performance and promotability as well as management and career development
o Not as sophisticated as quantitative method but more popular because they are simple, cheap and fast


What is succession planning?

Systematic, long term career development activity that focuses on preparing high-potential employees to fill key professional and management positions so that the organisation can achieve its strategic objectives


What is job analysis?

A systemic investigation of the tasks, duties and responsibilities of a job and the necessary knowledge, skills and abilities a person needs to perform the job adequately.
Put simply, it identifies what employees are expected to do


What does job analysis focus attention on?

Focuses attention on job content, job requirements and job context


What is job content?

Duties and responsibilities of job in manner that can range from global statements to detailed descriptions of tasks and procedural steps


What is job requirements?

Identifies formal qualifications, knowledge, skills, abilities and personal characteristics that employees need to perform the job