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Chapter Seven Human resource planning and human resource information systems.

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Chapter Seven Human resource planning and human resource information systems
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Page 1: Chapter Seven Human resource planning and human resource information systems.

Chapter SevenHuman resource planning and human resource information systems

Page 2: Chapter Seven Human resource planning and human resource information systems.

Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Human Resource Management in Australia 2e by De Cieri, Kramar, Noe, Hollenbeck, Gerhart & Wright.Slides prepared by Helen De Cieri

7-2

Human resource planning (HRP)

Objectives

1 Discuss how to align a company’s human resource planning with its strategic direction.

2 Determine the labour demand of workers in various job categories.

3 Discuss the advantages and disadvantages of various ways of eliminating a labour surplus and avoiding a labour shortage.

Page 3: Chapter Seven Human resource planning and human resource information systems.

Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Human Resource Management in Australia 2e by De Cieri, Kramar, Noe, Hollenbeck, Gerhart & Wright.Slides prepared by Helen De Cieri

7-3

The human resource planning (HRP) process

The process through which organisational goals are translated into human resource goals, concerning staffing levels and allocation.

Human resource planning involves forecasting human resource needs for an organisation and planning the necessary steps to meet these needs.

Page 4: Chapter Seven Human resource planning and human resource information systems.

Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Human Resource Management in Australia 2e by De Cieri, Kramar, Noe, Hollenbeck, Gerhart & Wright.Slides prepared by Helen De Cieri

7-4

Figure 7.1 Overview of the HRP process

Page 5: Chapter Seven Human resource planning and human resource information systems.

Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Human Resource Management in Australia 2e by De Cieri, Kramar, Noe, Hollenbeck, Gerhart & Wright.Slides prepared by Helen De Cieri

7-5

Forecasting

The attempt to determine the supply of and demand for various types of human resources, in order to predict future labour shortages or surpluses in areas within the organisation.• Determining labour demand• Determining labour supply

• Transitional matrices• Matrices showing the proportion or number of employees in

different job categories at different times.

Page 6: Chapter Seven Human resource planning and human resource information systems.

Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Human Resource Management in Australia 2e by De Cieri, Kramar, Noe, Hollenbeck, Gerhart & Wright.Slides prepared by Helen De Cieri

7-6

Table 7.1

A hypothetical transitional matrix for a car parts manufacturer

Page 7: Chapter Seven Human resource planning and human resource information systems.

Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Human Resource Management in Australia 2e by De Cieri, Kramar, Noe, Hollenbeck, Gerhart & Wright.Slides prepared by Helen De Cieri

7-7

Goal setting and strategic planning

Reducing an expected labour surplus, for example:• Downsizing• Early retirement programs

or

Avoiding an expected labour shortage, for example:• Employing temporary workers• Outsourcing• Overtime and expanding worker hours

Page 8: Chapter Seven Human resource planning and human resource information systems.

Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Human Resource Management in Australia 2e by De Cieri, Kramar, Noe, Hollenbeck, Gerhart & Wright.Slides prepared by Helen De Cieri

7-8

Downsizing

The planned elimination of large numbers of personnel designed to enhance organisational effectiveness. • Workforce reduction

• a type of downsizing strategy, using a cost-cutting approach emphasising short-term results and redundancies

• Organisational redesign• restructuring or delayering of the organisation, with

elimination of functions, layers and work processes

• Systemic change• a program of organisational cultural change involving all staff

Page 9: Chapter Seven Human resource planning and human resource information systems.

Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Human Resource Management in Australia 2e by De Cieri, Kramar, Noe, Hollenbeck, Gerhart & Wright.Slides prepared by Helen De Cieri

7-9

Major reasons for downsizing

Cost reduction

Introduction of new technology

Globalisation and changing location of business

Mergers and acquisitions leading toreduced need for bureaucracy

Page 10: Chapter Seven Human resource planning and human resource information systems.

Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Human Resource Management in Australia 2e by De Cieri, Kramar, Noe, Hollenbeck, Gerhart & Wright.Slides prepared by Helen De Cieri

7-10

Major reasons for the failure of downsizing

Initial cost savings but long-term negative effects

Loss of people who are ‘irreplaceable assets’

‘Survivor syndrome’: loss of motivation, self-absorption, risk-aversion

‘Survivors’ seek new employment

Reputational damage

Page 11: Chapter Seven Human resource planning and human resource information systems.

Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Human Resource Management in Australia 2e by De Cieri, Kramar, Noe, Hollenbeck, Gerhart & Wright.Slides prepared by Helen De Cieri

7-11

Program implementation and evaluation

Accountability

Authority and resources available to accomplish the stated goals

Regular progress reports on implementation

Evaluation of results

Page 12: Chapter Seven Human resource planning and human resource information systems.

Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Human Resource Management in Australia 2e by De Cieri, Kramar, Noe, Hollenbeck, Gerhart & Wright.Slides prepared by Helen De Cieri

7-12

Formal HRP is more likely in organisations that:

are larger

have greater overall business planning sophistication

have top-management support for human resource planning

have more involvement of human resource managers in the business planning process

have greater integration across human resource activities.

Page 13: Chapter Seven Human resource planning and human resource information systems.

Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Human Resource Management in Australia 2e by De Cieri, Kramar, Noe, Hollenbeck, Gerhart & Wright.Slides prepared by Helen De Cieri

7-13

A strategic approach to HRP includes the following:

Top management and HR managers that desire proactive involvement of HRM in the achievement of organisational goals.

The integration of employee needs and wishes for career development with organisational goals.

Coordination across HRM activities in light of organisational strategies and goals.

Adherence to principles of equal opportunity.

A focus on planning at the organisational level, not only at the industry level or regional level.

Page 14: Chapter Seven Human resource planning and human resource information systems.

Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Human Resource Management in Australia 2e by De Cieri, Kramar, Noe, Hollenbeck, Gerhart & Wright.Slides prepared by Helen De Cieri

7-14

Summary of human resource planning

When managed well, human resource planning can enhance the success of the organisation while minimising difficulties resulting from poorly anticipated labour surpluses or shortages.

Page 15: Chapter Seven Human resource planning and human resource information systems.

Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Human Resource Management in Australia 2e by De Cieri, Kramar, Noe, Hollenbeck, Gerhart & Wright.Slides prepared by Helen De Cieri

7-15

Human resource information systems (HRIS)

Objectives

1 Discuss the types of technologies that can improve the efficiency and effectiveness of HR.

2 Discuss human resource information systems and their various applications for HR activities.

Page 16: Chapter Seven Human resource planning and human resource information systems.

Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Human Resource Management in Australia 2e by De Cieri, Kramar, Noe, Hollenbeck, Gerhart & Wright.Slides prepared by Helen De Cieri

7-16

Human resource information systems (HRIS)

A system used to acquire, store, manipulate, analyse, retrieve and distribute information that is related to a company’s human resources.

Page 17: Chapter Seven Human resource planning and human resource information systems.

Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Human Resource Management in Australia 2e by De Cieri, Kramar, Noe, Hollenbeck, Gerhart & Wright.Slides prepared by Helen De Cieri

7-17

Factors leading to use of more sophisticated HRIS

Development of increasingly complex and comprehensive IT systems

Economic pressures

Increasing demands by government for organisations to collect employee data

Page 18: Chapter Seven Human resource planning and human resource information systems.

Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Human Resource Management in Australia 2e by De Cieri, Kramar, Noe, Hollenbeck, Gerhart & Wright.Slides prepared by Helen De Cieri

7-18

HRISs are used for three broad functions

Transaction processing, reporting and tracking

Decision support systems

Expert systems

Page 19: Chapter Seven Human resource planning and human resource information systems.

Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Human Resource Management in Australia 2e by De Cieri, Kramar, Noe, Hollenbeck, Gerhart & Wright.Slides prepared by Helen De Cieri

7-19

Information technology and HRM

• Technology: advantages or disadvantages?– Employees gain complete control over their training and benefits enrolments (self-service).– A paperless employment office can be created.– There is streamlining the HR department’s work.– Technology can provide knowledge-based

decision support.– Employees and managers select the type of

media they want to use to send and receive information.

– Work can be completed at any time, any place, day or night.– Enables closer monitoring of employees’ work.

Page 20: Chapter Seven Human resource planning and human resource information systems.

Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Human Resource Management in Australia 2e by De Cieri, Kramar, Noe, Hollenbeck, Gerhart & Wright.Slides prepared by Helen De Cieri

7-20

HR technologies

Interactive voice technology

Internet

Networks and client-server architecture

Relational databases

Imaging

Laser disc technology

Groupware, intranets and portals

Page 21: Chapter Seven Human resource planning and human resource information systems.

Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Human Resource Management in Australia 2e by De Cieri, Kramar, Noe, Hollenbeck, Gerhart & Wright.Slides prepared by Helen De Cieri

7-21

HRIS: software applications for HRM

HR planning applications• Succession planning• Workforce profile analysis• Workforce dynamics analysis

Staffing applications• Applicant recruiting and tracking• Employee database development

Page 22: Chapter Seven Human resource planning and human resource information systems.

Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Human Resource Management in Australia 2e by De Cieri, Kramar, Noe, Hollenbeck, Gerhart & Wright.Slides prepared by Helen De Cieri

7-22

HRIS: software applications for HRM (continued)

Performance management applications

Learning and career development applications

Compensation and benefits applications• Payroll• Job evaluation• Salary surveys• Salary planning• International compensation• Benefits management

Page 23: Chapter Seven Human resource planning and human resource information systems.

Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Human Resource Management in Australia 2e by De Cieri, Kramar, Noe, Hollenbeck, Gerhart & Wright.Slides prepared by Helen De Cieri

7-23

Summary of human resource informations systems

Increasingly, organisations depend on more sophisticated HRIS in order to support human resource activities.

Key drivers are:• the increasing globalisation of business• the development of more flexible, non-traditional

organisation structures• the development of information technology.


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