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Unformatted text preview: CHAPTER 5- HUMAN RESOURCES PLANNING The strategic importance of Human Resources Planning Human resources planning (HRP): the process of forecasting future human resources requirements to ensure that the organization will have required number of employees with the necessary skills to meet its strategic objectives.- proactive process that anticipates and influences an organizations future by systematically forecasting and developing plans and activities to satisfy needs- effective HRP helps achieve organization goals, make major labor market demands more successfully, anticipate and avoid shortages ad surpluses of human resources and control/reduce labor costs- key steps in HRP process include; forecasting, demand for labor supply, and planning and implementing HR programs to balance supply and demand- lack of HRM might cause for significant costs when un-staffed positions create costly inefficiencies and when severance pay required for large numbers of employees - can lead to inability to accomplish short-term operational plans and / or long range strategic plans the Relationship between HRP and strategic Planning - strategic plans carried out by people, thus it is dependent on the number of people available - must also be integrated with other aspects of HR plans- such as, those pertaining to training current and new employees, appraising performance and terminating, transferring, or promoting staff members- failure to implement HRP has serious consequences; short staffed , leading to overworking of current staff the importance of environmental scanning - external environmental factors that are most frequently monitored include; economic conditions, market and competitive trends, new/ revised laws and decisions of courts and quasi-judicial bodies, social concerns related to health care, childcare, and educational priorities , technological changes and demographic trends steps in HRP 1.) forecasting future human resources needs (demand) 2.) forecasting availability of internal and external candidates (supply) 3.) planning and implementing HR programs to balance supply and demand step 1: forecasting future human resources needs (demand)- several factors must be considered; 1. projected turnover as resulf of resignations or terminations 2. quality and nature of employees in relation to what management sees as changing needs of organization 3. decisions to upgrade quality of products or services or enter into new market, which might change required employee skill mix 4. planned technological and administrative changes aimed at increasing productivity and reducing employee headcount 5. financial resources available to each department- primarily quantitative nature- quantitiattive techniques for determing human resources requirements include; trend analysis, ratio analysis , scatter plot analysis, regression analysis and computerized forecasting- qualitative approaches to forecasting range from sophisticated analytical models to informal expert opinions about future needs...
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- Spring '11