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Human Resources Planning - Coggle Diagram
Human Resources Planning
The relationship between strategic HRM planning and operational HR planning
The two often get confused
HR planning is better described as employment planning
strategic HRM planning is concerned with defining philosophy, objectives and strategy, and precedes HR planning
The importance of HR planning
HR planning is focused on the number of people needed by the organisation
HR planning involves the entry of people into the organisation (acquisition), the development of people skills (development), appraisal (performance measurement) and the exit of people from the organisation (departure).
HR planning is critical to the organisation’s success because it matches the organisation’s strategic objectives and its HR objectives with its people requirements
Effective HR planning ensures that the available talent is correctly allocated, labour costs are controlled, the employee headcount is appropriate, productivity is improved and talented employees are retained.
Talent is the prime source of competitive advantage, not raw materials, capital or technology.
A common mistake for HR managers is to concentrate on short-term replacement needs rather than on the organisation’s long-range HR requirements.
Key environmental influences on HR planning
HR planning must reflect the environmental trends and issues that affect an organisation’s management of its human resources
HR planning considers both the internal and external environmental influences on an organisation, its objectives, culture, structure, systems and HRM policies and practices
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GLOBALISATION is making academics leave for better prospects
Multigenerational gaps (baby boomers want to less guidance from management, millennia's want praise)
Women in the workplace
Education standards
Immigration, ageing population
the casualisation of the workforce; employee literacy levels; skill shortages, outsourcing
The basic approaches to HR planning
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influenced by the organisation’s strategic business objectives, the demand for its products and services, projected labour turnover, the quality and type of employees required and available, technological changes, financial resources and the general state of the economy.
Forecast the future HR needs of the company
quantitative approach
Statistics & maths
Groups people into numbers & stats
Probably more appropriate for larger organisations
Qualitative approach
Simple, cheap and fast
The focus is on evaluations of employee performance and promotability as well as management and career development.
uses expert opinion (usually a line manager) to predict the future
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Some ways of forecasting HR requirements
skill inventory, replacement charts, succession planning, turnover analysis and Markov analysis.
Some experts furthermore argue that rapid changes in business and a mobile job market have made management development and succession superfluous.
Present employees who can be promoted, transferred, demoted or developed make up the internal supply. The external supply consists of people who do not currently work for the organisation.
The basics of exit management
The requirements for effective HR planning.
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