from manpower planning to human resource planning

8/14/2019 From Manpower Planning to Human Resource Planning

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From ManpowerPlanning to Human

Resource PlanningLecture Topic 3


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Definitions of HR Planning (1)

strategy for the acquisition, utilisation,

improvement and preservation of an organisations

human resources

(Department of Employment 1974)(cited by Bratton and Gold, 2003, p194)

the process for identifying an organisations

current and future human resource requirements,

developing and implementing plans to meet theserequirements and monitoring their overall

effectiveness

(Beardwell and Claydon, 2007, p159)


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Definitions of HR Planning (2)

the process of interpreting the

environment, predicting its effects on the

organisation, evaluating these effects,planning and controlling the appropriate

measures in order that the right human

resources are available when required

(Boella, 2000)


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Developmental Overview (1)

Bramham (1994) argues

Manpower Planning as QUANTITATIVE

concerned with forecasting demand andsupply of labour

Human Resource Planning as far wider

encompassing a whole range of activities:

Motivation of employees, employee attitudes,organisational culture


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Developmental Overview (2)

According to Taylor (2002)

MP and HRP are concerned with

looking ahead, using systematictechniques, i.e. auditing skills to be

able to meet org. requirements of the

future. Having the right people, with the right

skills, in the right places at the right

time.


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Why Look ahead and

Forecast?

To deal with changes

External Environmental Situations

Expansion

Competition

Globalisation

Technological

Political

Social Economical

Ecological

Legal


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Purpose of HR Planning

Recruitment Gaps

Training and Development

Staff Costings

Redundancy

Collective Bargaining

Accommodation

(Taylor 2002)


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Stages in HRPlanning

(Taylor 2002)


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The HR Planning Cycle has

four general stages:1. Forecasting future demand of HR

2. Forecasting future internal supply of

HR

3. Forecasting future external supply of

HR

4. Formulating responses to the

forecasts


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Stage 1: Forecasting Future

Demand (1)

Requires looking at:

Skills required

To achieve Business Targets (Goals, Design,

Culture)

Assess skills available Vs Required

Predict how many people required

Skills will depend on:

Timescale

Nature of Org. activities


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Stage 1: Forecasting Future

Demand (2)

Techniques Used to Forecast Demand:

1 Systematic Techniques

Time series or ratio trend analysis Work-study approach

Productivity trend analysis

2 Managerial Judgement

3 Combined Approach (1+2)

4 Working back from costs


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Stage 2: Forecasting Internal

Supply

Involves identifying/acknowledging the

existing staff employed by an organisation

department by department

grade by grade

Involves:

Skills Audits

Predicting Staff Turnover Internal promotion analysis


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Stage 3: Forecasting External

Supply (1)

Filling the GAP using the external labourmarket: Local

National International

HR Planners must gain an understanding of thedynamics of the Labour Market to update plans

as trends change and develop


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Stage 3: Forecasting External

Supply / Dynamics of the Labour Market

The following statistics can be most useful

General population density

Population movements

Age distribution

Social class Unemployment rates

School leavers

Proportion with higher education

Skill levels Skills shortages

Sources of Info include: Labour Market Trends,Labour Market Quarterly, Annual Social Trends survey,

Chamber of Commerce, Training and EnterpriseCouncils


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Stage 4: Formulating Responses

to the Forecasts/Action Planning

Forecasting should identify any

potential mismatch between future

demand and supply If demand exceeds supply develop

plans to match the shortfall

If supply is likely to exceed demanddevelop plans to reduce the surplus

(Taylor, 2002; Beardwell and Claydon, 2007)


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Action Planning Alternative View

point (Boella, 2000)

Outsourcing

Plans:

Redundancy

Redeployment

Retirement Recruitment

Training

Retention

Succession Review:

A plan will always need constant review: E.g.:

Extensions

External environmental factors

Turnover increases


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Use of HR Planning in

PracticeAccording to Rothwell, 1995; Flokowski, 1998;

and Liff, 2000)

Systematic HR Planning is mainly restrictedto large public sector organisations and

firms operating in stable environments Other organisations may use it in a casual

way and may rely more on managerialjudgement

(cited by Taylor, 2002)


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The Case Against HR

Planning

Based on the simple proposition that it is

difficult to forecast demand and supply with

any ACCURACY!

Forecasting relies on past experience to

predict future developments

Forecasts are based on questionable

assumptions The future is uncertain for organisations!

(Taylor, 2002)


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The Case for HR Planning

There are 2 main arguments for HRP:

1. The need to view plans as adaptable Plans should be continually updated in light

of environmental developments2. Turbulence requires more attention to

planning There is a greater need for organisations to

develop their capacity to plan accurately

(Taylor, 2002; Beardwell and Claydon, 2007)


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Adapting Traditional HR

Planning

Many writers believe there is a need toadapt the traditional methods of HRplanning to suit the needs of organisations

operating in an unpredictable environment: Micro Planning

Contingency Planning

Succession Planning

Skills Planning Soft HR Planning

(Taylor, 2002)


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Summary

The term Manpower Planning (MP)

has gradually been replaced by

Human Resource Planning (HRP) Concerned with looking ahead and

using systematic techniques to assess

the extent to which an organisation

will be able to meet its requirements

for labour in the future


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References

Beardwell, J & Claydon, T (2007), Human resourcemanagement: a contemporary approach, 5th edition,London, Pearson Education

Boella, M.J (2000) Human Resource Management inthe Hospitality Industry, 7th edition, Cheltenham,Nelson Thornes

Bramham, J. (1994) Human resource planning, 2ndedition, London, Institute of Personnel Development,1994

Bratton, J & Gold, J. (2003) Human resourcemanagement: Theory and practice, 3rd edition,

Basingstoke, Palgrave Macmillan. Foot, M & Hook, C. (2005) Introducing human

resource management, 4th edition, Harlow, PearsonEducation.

Taylor, S. (2002) People Resourcing, 3rd edition,London, Chartered Institute of Personnel and

Development.


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Revision Questions

What are the aims/objectives of HRP?

Outline the stages of HRP.

Highlight the case for and againstHRP.

Outline alternative methods to the

traditional approach to HRP

from manpower planning to human resource planning

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