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People Resourcing

Managing People
October 2014

Lecture objectives
To define and outline the importance of HR planning
To identify key considerations and stages in the HR
planning process
To outline labour market influences on HR decisionmaking
To introduce concepts of talent management and
succession planning
To discuss issues surrounding labour turnover,
retention and terminating the employment
relationship

Defining HR planning
Process of assessing current HR
capabilities and forecasting future
labour supply and demand, to
produce HR plans that will enable an
organisation to achieve its strategic
objectives.
Ensuring the right people in the
right place at the right time

The importance of HR
Planning
Marchington and Wilkinson (2005) suggest four
sets of reasons for the continued importance of
HRP:
It encourages employers to develop clear and
open links between their business and HR plans
It allows for better control over staffing costs and
numbers employed
It enables employers to make more informed
judgements about the skills and attitude mix in
the organisation
It provides a profile of current staf

Key considerations in
HRP
How best to arrange people and processes to achieve
sustained competitive advantage
Whether required capacity can be sourced internally or
externally
Future demand for labour
hard and soft attributes

Torrington et al. (2008; 51) suggest that HRP supports


HR strategy by identifying:
gaps in capabilities
surpluses in capabilities
poor utilisation of people in the organisation
Areas of workforce potential

The process of human resource


planning

Source: Adapted from Human Resource Planning by Bramham (1994)

The planning process:


Demand Forecasting
Predicting the impact of future developments (for
example, changes in market conditions or
proposed organisational restructuring) on the
firms requirement for labour.
Use of statistical techniques to make an
assessment of future labour requirements, such
as market trends or past experience
More subjective forms of planning based on
managerial judgement are increasingly common
(Arnold and Pulich 2007)
Scenario planning represents an early warning
system to enable a firm to beat the future.

The planning process:


Supply Forecasting
Assessing current capacity in the form of workforce profiling
Forecast future internal supply

Identify patterns in the movement of labour, both


internally and into and out of the organisation
Internal promotion, transfer, redundancy, temporary
withdrawal (for example, on maternity leave,
sabbatical or secondment) and dismissal.
Monitoring of recruitment trends
Assessment of labour market dynamics- but to take into account
external factors such as changing demography, skills mix amongst
population and competition.
The soft element of current and future HR capability: Staf attitude
surveys, focus groups and exit interviews.

The planning process:


Responses to the Forecasts
There are a wide variety of organizational
responses to demand and supply forecasts,
beyond workforce downsizing or the future
recruitment of required labour.

The planning process:


Responses to the Forecasts
New equipment or technology to replace or expand workforce skills
Change the organisation of work processes
Increase or change the focus of individual and organisational
development
Workforce restructuring
Relocate operations to obtain necessary labour
Seek to improve individual and group performance and
productivity
Attempt to change the culture of the firm to promote required
behaviour or values

Issues in HR planning
Value of HR planning in times of uncertainty or in
unpredictable markets?
Grand HR planning unfeasible and impractical for
decentralised and flexible organisations
HR planning remains important, particularly for organisations
with the following characteristics (Taylor 2008) :
Large enough to have dedicated HRP function, such as public
sector organisations
Operating in reasonable stable product and labour markets
Having key staf groups who require lengthy or expensive training
Competing in industries in which decisions concerning future
investment are made years ahead

Labour market influence on


HR decision-making
Employee resourcing practices difer according
to:
Labour market conditions
Ability of organisations to respond to these
conditions in a novel or creative manner.

Labour markets which have an abundant supply


of required labour are often referred to as loose
Where required labour is scarce, labour markets
are tight

Succession planning and


talent management
Contingency planning
Succession planning provides long-term development plans
for individuals identified as possible successors for senior
managerial posts
Broader approach of talent management concerned with
creation of a pipeline or pool of talented people
Two approaches to talent management (Cunningham 2007):
Aligning people with roles (treating roles as fixed and
developing people to fit these jobs)
Aligning roles with people (creating and adapting roles to
satisfy the objective of the most talented)

Succession Planning &


Talent Management early on
Sainsburys approach - Growing your talent
Talent management and succession planning are
key strategic areas for business in general, and at
Sainsbury's there is more focus on this than ever
before. As a graduate, you will be included in the
annual Talent Review taking into account your
performance and potential, enabling us to identify
the right career development opportunities for
you. Source:http://sainsburys.jobs/signature/information/learning-and-development
Jaguar Purchasing Talent

Employee retention and


turnover
Acceptable levels of labour turnover vary by occupation,
sector and organisation
Excessive labour turnover typically considered
problematic
Labour turnover can, however, be positive:
Recruitment of fresh blood
Exit of poor performers
Important of monitoring employee turnover and
investigating the reasons for exit, analysing patterns of
attrition to identify problem areas and benchmarking
turnover rates with competitors.

Explanations for employee exit can be


categorised as representing either
Pull factors
Attraction and
availability of
alternative employment
Relocation for non-work
reasons
Employees changing
personal circumstances
Outside the control of
management?

Push factors
Employee dissatisfaction with:
organisational practices or
policies
the nature of the work
personal relationships at
work
Low levels of commitment

Addressing labour turnover


The costs of addressing turnover must be
balanced against the cost of losing the
employee
Maximise the retention of all staf or
alternatively concentrate on retaining
high-performing employees or those with
scarce skills?
All HRM practices have a function in
minimising labour turnover

Terminating the
employment relationship
Resignation, dismissal or retirement
Voluntary and compulsory redundancy
Related to factors external to the individual
Importance of retention of knowledge and skill

Good practice in managing redundancy


(UK legal obligations)

Consult with employees


Compensate according length of service
Ensure fair selection for redundancy
Reasonable attempts made to find alternative post for afected
employees

Importance of managing survivor syndrome

Summary Points
HR planning is the process of forecasting future labour
supply and demand involving the assessment of hard
and soft dimensions of HR capability and current
practices and policies
Range of HR responses to the planning process
The feasibility of HR planning in unpredictable
environments has been questioned
Labour turnover a critical concern in many but not all
firms
Terminating the employment relationship creates a
number of responsibilities for managers

References
Arnold, E. and Pulich, M. (2007) The Department Manager and Efective Human Resource Planning: An
overview, The Health Care Manager, 26, 43-52
Beardwell, J. (2006) Recruitment and Selection in, Beardwell, J. and Claydon, T. (2006) Human Resource
Management: A contemporary approach, Harlow: FT Prentice Hall
Cunningham, I. (2007) Talent Management: Making it real, Development and Learning in Organizations,
21, 4-8
Farnham and Stevens (2000) Developing and implementing competence-based recruitment and selection
in a social services department, International Journal of Public Sector Management, 13:4, 369-382
Griffin, B., Hesketh, B. and Grayson, D. (2004) Applicants faking good: evidence of item bias in the NEOPI-R, Personality and Individual Differences, 36:7, 1545-1554
Marchington, M. and Wilkinson, A. (2005) Human Resource Management at Work (3rd Edition), London:
Chartered Institute of Personnel and Development
Newell, S. (2006) Selection and assessment, in Redman, T. and Wilkinson, A. (eds.) Contemporary Human
Resource Management (2nd Edition), Harlow: FT Prentice Hall
Taylor, S. (2008) People Resourcing (4th Edition), London: CIPD
Torrington, D. Hall, L. and Taylor, S. (2008) Human Resource Management (7th Edition), Harlow: FT
Prentice Hall
Worren, N. and Koestner, R. (1996), Seeking innovating team players: contextual determinants of
preferred applicant attributes, International Journal of Human Resource Management, 7:2, 521-33

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