3.3 HR Planning also called workforce planning (HR Function) - Coggle…
HR Planning also called workforce planning (HR Function)
What is HR planning?
the aim of HR planning is to ensure that an organisation has “the right number of the right employees in the right place at the right time” (Torrington et al., 2014, p.68).
HR planning needs to balance two key elements:
Demand for Labour: the expected demand for labour in an organisation, derived from assessing corporate and business level strategy, objectives, and the performance of current employees
Supply for Labour: including both the internal pool of employees (taking into account expected promotions, retirements and people leaving the organisation) and potential external candidates.
HR planning strategically contributes to the competitive advantage of any business, since it reveals:
, i.e. business areas, units and teams with a lack of sufficient skill, people and knowledge
, i.e. areas, units or teams where new opportunities for capitalising on skills, people and knowledge might be exercised
poor workforce utilisation
and reasons for this (these usually come from inappropriate HR practices that have to be changed)
talent pool development
– for which the internal supply of employees suitable for promotion, and for the leadership pipeline, has to be ensured
The four processes of HR planning
An integrated framework for HR planning should encompass the following four circular and overlapping processes
analysing where we want to be (forecasting future HR needs)
planning for behaviour and culture – which we can call
soft or qualitative HR goals
The task of translating organisational strategic objectives and environmental influences into soft or qualitative HR goals is not an easy one
techniques used are:
Strategic Brain Storming
HR implication checklist
employee numbers and skills – which are more traditional and
quantitative HR planning goals.
Methods Used are:
, i.e. operational or technical staff estimates of workforce demand based on past experience and current developments.
that try to relate employee numbers or skills demand with one or more of the parameters that the organisation has an influence on (e.g. production or sales output)
, where the work tasks and time to complete these are analysed, and person-hours data is produced from this. This further leads to developing standards and norms across work types and positions. This method has been widely used in manufacturing, but also in the construction industry.
analysing where are we now (the current situation and projecting forward)
For qualitative initiatives, methods for assessing the current situation is
,focus group, and managerial judgement
n order to respond to potential disruptive change conditions, an organisation needs to have regular snapshots of its current employee supply (quantitative aspect).
analysing the external environment
External environment analysis also called macro is vital in strategic management
Tools such as PESTLE analysis and VRIO and Value chain analysis
HR planning needs to identify any changes in the external environment that could affect the ability of the organisation to recruit, develop and retain employees with adequate knowledge, skills, attitudes and behaviour.
comparing the last two and forming plans to bridge the gap.
If the assessed demand is higher than supply, an organisation can:
make the organisation a more attractive place to work (with increased efforts in employer branding for example) to alter the supply forecast
shift its objectives towards more realistic goals, based on available HR.
introduce changes to employee utilisation to change the demand
if the assessed internal supply is higher than demand,
an organisation can consider options to reduce costs of overemployment.
changes in utilisation, or the possible change of organisational objectives.