Human Resources Planning

Human Resource Planning

HR Planning Process

Step 1: Formulation of Corporate/ Business Strategy including Production, Research & Design, Finance, Marketing, Human Resource management, External factors

Step 2: Formulation of integrated HRM Strategy.

Factors:

* Talent Management

* Diversity

* Employee engagement

* High- performance workplace

* Culture & Values

* Organizational Structure

* Other functional strategies

Step 3: HR Planning

This step, HR will do assessment of Demand (D) and Supply (S) of HR (Internal & External)

Step 4: Formulation of HRM Action Plans

Step 5: Monitoring and evaluation of strategic goals

1. Estimating the demand for HR

* No previous measures: engage in work study techniques by determining how tasks can be performed most proficiently and timing the operation

* Prior data:

* Use past production figures and calculate the ratio of operatives to products

* Use managerial judgment by basing your calculation on a task (qualitative data)

2. Estimating the internal supply of HR

a. Calculate labor turn- over rate to forecast fluctuations and the number of employees needed

Turn-over rate (%) = (the number of leavers/ total staffs)x 100

b. Another calculation:

Stability index= (number of people currently employed with one year or more of service/ number of people employed one year ago)x100

Turn-over/ stability index highlight some issues deserved to take into consideration including:

* Numbers for recruitment

* The distribution across the workforce

* Age profiles

* Length of service for each gender (female/ male) of the above

From that, managers can find new approaches or policies to help organizations reach its goals.

3. Assessing the external supply of HR