W6: HRP Flashcards
HRP
Predict future supply and demand gap for human capital, aim to close the gap
Transform organisational plans into people plan
What type of analysis should HR planning take into account?
SWOT analysis
PEST/PESTEL analysis
What is included in the HR planning process?
Labour demand forecasting –> Labour supply analysis –> Balancing supply and demand
Why should organisations engage in HR planning?
To anticipate competition in the labour market –> HR Planning is a competitive advantage to the human capital of an organisation
What is involved in the Labour demand forecasting process?
The process focuses on predicting future human capital shortages and/or surpluses in areas within the organisation
The process involves quantitative data ( indexation, Markov model) and judgemental qualitative data (managerial judgement, Delphi technique)
What are some methods to forecast labour demand?
Quantitative:
- Indexation
- Markov Model (using statistics)
Qualitative:
- Delphi technique (consulting experts, info then analysed by one expert)
- Managerial judgement
What is included in labour supply analysis?
External labour supply forecasting:
- Interested in employing locally
- Using statistics such as school leavers, enrolment of specific skills to assess labour supply of the local area
Internal labour supply forecasting:
- Succession plan: more systematic, long term needs, systematic approach to fill-up roles
- Replacement charts: short term needs, ensure continuity in operations
Why is there a need to balance the demand-supply gap?
Determining expected shortages and surpluses allows the organisation to plan how to address these challenges
External and internal ways to avoid labour shortage
Internal labour market:
- Overtime
- Retained transfers/promotions
- Secondment
- Turnover reduction
- Soft HRM strategies (e.g. career development, work and family policies)
External labour market:
- New external recruits
- Temporary and casual employees
- Outsourcing
- Internships
- Use of migrant labour
Ways to avoid labour surplus
- Downsizing
- Redundancies
- Pay reductions
- Demotions
- Work sharing
- Transfers
- Retirement
Advantages of HR Planning Process
Strategic rather than reactionary decision making process
Anticipates resourcing requirements
Stronger alignment between organisational objectives and people practices
Enable the organisation to adjust to technological change
Increased productivity and profitability
Cost effective (e.g. controlling of labour surpluses)
Disadvantages of HR Planning Process
Time consuming
Questions over how essential it is to organisational effectiveness
Resistance/hostility to use statistical techniques
Tendency to focus on short-term priorities
Ignorance of existing HR planning techniques
Complexity and turbulence of business environment
What is the role of HR information management system (HRIMS)?
HRIMS is developed due to technological changes and the increased requirements of government reporting
Thus it facilitates more cost efficient management of low-value added HR and payment activities
Advantages of HRIMS
Improved planning and program development
Reduce administrative and HR costs
More rapid information and processing and improving response time
Standardise HR processes
Capacity for greater global orientation for multinational companies
Why is it important to complete job analysis before giving a job description?
Job analysis gathers detailed information about the job, including legal information and required competency
