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HR PLANNING AND STRATEGY
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HUMAN RESOURCE PLANNING
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Human resource Planning
HRP is a right number of people with right skills at
right place at right time to implement organizational
strategies in order to achieve organizationalobjectives
HRP is the process of analyzing an organizations
human resources needs and developing plans,
policies, and systems to satisfy those needs.
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Human Resource Planning
Is settinghuman resource objetives and deciding how
to meet then.
Ensuring HR resource supply meets human resource
demands.
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Importance Of HR Planning:
1) Each Organisation needs personnel with necessary
qualifications, skills, knowledge, experience &
aptitude .
2) Need for Replacement of Personnel - Replacing old,
retired or disabled personnel.
3) Meet manpower shortages due to labour turnover
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Importance Cont
4) Nature of present workforce in relation with
Changing Environment - helps to cope with changes
in competitive forces, markets, technology, productsand government regulations.
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How HRP could be used:
i) quantify job for producing product / service
ii) quantify people & positions required
ii) determine future staff-mixiii) assess staffing levels to avoid unnecessary costs
iv) reduce delays in procuring staff
v) prevent shortage / excess of staff
vi) comply with legal requirements
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HRP needs for HRD:
HRP is important for planning the investment in the
development and utilization of human resource. Any
investment in the human resource activities isconsidered an investment for the future growth and
development of the organization.
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HRP Process:
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Process Contd
Interfacing with strategic planning and scanning the
enviroment.
Taking an inventory of the companys current human
resource.
Forecastinng demand for human resource.
Forecasting the supply of HR from within the
organization and in the external labor market.
Comparing forecast of demand and supply.
Planning the actions needed to deal with anticipated
shortage or overages.
Feeding back such information into the strategic
planning process.
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Example Of Basic HRPModel:
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HRP should be
Done to guide and coordinate all HR activities so they
work together to support the overall strategy.
Responsive to internal and external environment.
Planning- done in advance
Strategic planning- linked with higher level planning
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FORECASTING:
The use of information
from the:
Past and present
situations.
To identify expected future
conditions.
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Forecasting HR supply anddemand:
Types of forecast:
HR demand
Internal supply
External supply
Forecasting Periods:
Short term-less than 1year
Intermediate-up to five
years
Long range-more than 5
years
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Human Resource Forecasting:
Process of projecting the organizations future HR
needs (demand) and how it will meet those needs
(supply) under a given set ofassumptions about theorganizations policies and the environmental
conditions in which it operates.
Without forecasting cannot assess the disparity
between supply and demand nor how effective an HR
program is in reducing the disparity.
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Internal Supply forecasting:
Organizational features (e.g. , staffing capabilities)
Productivity- rates of productivity, productivity
changes.
Rates of promotion, demotion, transfer and turnover.
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External Supply forecasting:
External labor market factors (retirements, mobility,
education. unemployment)
Controllable company factors on external factors
(recruiting, compensation)
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Demand forecasting information:
Organizational and unit strategic plans
Size of organization
Staff and managerial support
Organizational design
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HR STRATEGY
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Strategy
A strategy is a course of action.
The companys long term plan for how it will balance
its internal strengths and weaknesses with itsexternal opportunities and threats to maintain a
competitive advantage.
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The Meaning Of strategy:
A critical factor that effects
a firm performance.
A factor that contributes to
competitive advantage in
markets.
Having long term focus.
Plans that involve the top
executive and board ofdirectors of the firms.
A general frame work that
provides a perspective for
selecting specific policies
and procedures.
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Why is HR critical to firmperformance?
85% of all firms in US are services firm.
Services is delivered by people.
Low quality HR leads tolow quality customer services.
In 21st century effective knowledge management
translate into competitive advantage and profits.
Knowledge comes from a firms people.
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Levels of Strategy:
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Context HR:
1. Five factors influence HR system:
External environment
Social: Social values. Roles, trend etc.
Political: political forces, change E.g. Bush presidency
and its agenda for social security.
Lgal: laws. Court decisions, regulatory rules. Economic: produce labor, capital factor markets.
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CONT.
2. Work force:
demographics
3. Organizational Culture:
Weak VS. strong
type of culture
4. Organization strategy
5. Technology of production and organization of work.