HRIS stands for Human Resource Information System. It is a software or online solution used by HR departments to manage employee data. Some key things about HRIS include: - Stores data related to employees such as personal details, compensation, benefits, skills, training, performance reviews etc. - Provides analytical capabilities to track trends in hiring, retention, compensation etc. and help with strategic decision making. - Automates routine HR processes like managing payroll, time & attendance, recruitment etc. to improve efficiency. - Integrates with other systems used by the organization like finance, project management etc. to share employee data across departments. - Improves data security, ensures regulatory compliance and provides reports on demand.

1. HUMAN RESOURCE
PLANNING PROCESS
CHAPTER 2
Slide editing by : mursyida mahshar

2. HRP (Definition)
• Process of analyzing and identifying the need for and
availability of HR so that the org. can meet its
objectives or
• Process that helps to provide adequate HR to achieve
future organisational objective.
• It will include ; forecasting future needs for employees of
various type, compare these needs with the present
workforce and determine the no. or types of employees
to be recruited into or phased out.

3. • Small Business and HR Planning Issues
– Attracting and retaining qualified outsiders
– Management succession between generations of owners
– Evolution of HR activities as business grows
– Family relationships and HR policies

4. Issues in forecasting HR requirements:
• Increasingly of service oriented
• Increasingly economy based on technology
• Teams becoming more widely used
• Needs for fewer managers with increasing technology
Issues in HR availability:
• Management inventories
• Succession planning
• Skill inventory
• External labor supply

5. Purpose of HR Planning

6. Benefits of HR Planning
• Better view of the HR dimensions of business
decisions
• Lower HR costs through better HR management.
• More timely recruitment for anticipate HR needs
• More inclusion of protected groups through
planned increases in workforce diversity.
• Better development of managerial talent

7. Linking HRP & Strategy for
Competitive advantage
Strategy of Culture of Competitive / Current organization
organization organization Fin. Advantage structure
Need for HR Qty & Available Financial
Skill Levels Resources
HR Plans and Policies for:
Performance mgmt Recruiting
Selection Staffing mgmt
HR Development Compensation

8. HR Strategies
• Cost Leadership • Differentiation
– Competition on the basis – Competition on the basis of
of low price and high either offering distinctively
quality of product or different products or services or
service establishing an exclusive image
– Relies on “building” for quality products and
employees to fit services
specialized needs – Relies on hiring needed skills.
– Requires a longer HR – Needs a shorter planning time
planning horizon frame in order to be responsive
approach to dynamic environments.

9. HR Strategies
Organizationa Strategic Focus HR Strategy HR Activities
l Strategies
Cost Efficiency Long HR planning Promote from within
Leadership Stability horizon Extensive training
Cost control Build skills in existing Hire & train for
employee specific capabilities
Job & employee
specialization efficiency
Differentiation Growth Shorter HRP horizon External staffing
Innovation Hire the HR capabilities Less training
Decentralization needed Hire & train for
Broader, more flexible broad competency
jobs & employee

10. HR Responsibilities
• Top HR executive and subordinates gather
information from other managers to use in the
development of HR projections for top
management to use in strategic planning and
setting organizational goals

11. HR Unit Managers
- Participates in strategic -Identify supply and
planning process. demand needs for each
- Identifies HR strategies. department.
- Designs HRP data -Review / discuss HRP
systems. info. With HR specialists.
-Compiles and analyzes -Integrate HR plan with
data on staffing needs. departmental plans.
-Monitor HR plan to
identify changes needed.
SP – The process of determining what org.’s mission and plan
to achieve organisational goals.

12. HR Planning Process

13. HRP Process
ENVIRONMENTAL SCANNING
& SITUATIONAL ANALYSIS
FORECASTING THE DEMAND
AND SUPPLY OF HR
DEVELOPMENT OF PLANS
FOR ACTION

14. Scanning the External Environment
• Environmental Scanning
– The process of studying the environment of the organization
to pinpoint opportunities and threats.
• Situational Analysis
– HRM compares needed and available skills for training,
promotion, transfer, productivity improvement and
succession planning.
• Environmental Changes Impacting HR
– Governmental Influences
– Economic conditions
– Geographic and competitive concerns
– Workforce composition

15. Assessing the Internal Workforce
• Jobs and Skills Audit
– What jobs exist now?
– How many individuals are performing each job?
– What are the reporting relationships of jobs?
– How essential is each job?
– What jobs will be needed to implement future
organizational strategies?
– What are the characteristics of anticipated jobs?

16. Assessing the Internal Workforce (cont’d)
• Organizational Capabilities Inventory
– HRIS databases—sources of information about
employees’ knowledge, skills, and abilities (KSAs)
– Components of an organizational capabilities inventory
• Individual employee demographics
• Individual employee career progression
• Individual job performance data

17. Forecasting HR Supply and Demand
• Forecasting
– The use of information from the past and present to
identify expected future conditions.
• Forecasting Methods
– Judgmental
• Estimates—asking managers’ opinions, top-down or
bottom-up
• Rules of thumb—using general guidelines
• Delphi technique—asking a group of experts
• Nominal groups—reaching a group consensus in open
discussion

18. Forecasting HR Supply and Demand
(cont’d)
• Forecasting Methods (cont’d)
– Mathematical
• Statistical regression analysis (statistic compares the past r/ships
among various factors)
• Simulation models (representation of real situations in abstract
form)
• Productivity ratios—units produced per employee
• Staffing ratios—estimates of indirect labor needs
• Forecasting Periods
– Short-term—less than one year
– Intermediate—up to five years
– Long-range—more than five years

19. HR Forecasting

20. Forecasting the Demand for HR
• To develop a forecast of the needs for HR by
number and type for the forecasted period
• Estimate no. and type of employees for future
a) External Supply
b) Internal Supply
Demand = Supply

21. Forecasting supply for HR
• Forecast the availability of HR internal and
external supplies.
• Use “skill inventory” :
– to assess the current supply of employees (past and
present skills), used for future, and maintained
through interview and questionnaires.

22. Estimating Internal Labor Supply for a
Given Unit

23. Managing HR Surplus / Shortage
 Action when Surplus of employees
i) Layoff - Suspension or termination of employment (with or without
notice) by the employer due to management problems. (merit & seniority)
ii) Early retirement – encourage employees to leave org. early.
iii) Restrict Attrition & freeze hiring – not replace the jobs been left out (quit
@ retire), and those remain in the co. will be given more tasks.
iv) Reduced Hours of work
 Suggestion to deal with downsizing
 Investigate alternatives to downsizing
 Involve those people necessary for success in the planning for downsizing
 Develop comprehensive communicate plans
 Nurture the survivors
 Outplacement pays off

24. Action When Shortage of Employees
• Promote Overtime - ask the workers to work
after the standard working hours
• Hiring New employees
• Hire contingent worker – subcontract, contract,
part time
• Outplacement services
– A group of services provided to the displaced
employee – to give them support and assistance.
– E.g. personal career counseling, resume preparation,
interviewing workshops and referral assistance.

25. HRIS?
Find information about HRIS