3 Time Horizons of HR Planning Forecasting Demand and Supply

3 Time Horizons of HR Planning
Short Term (up to 1 year)
Intermediate Term ( 2 to 3 years )
Long Term ( More than 3 years )
Short Term HR
Intermediate Term HR
Long Term Hr
1. What jobs need to be
filled and vacated?
2. How and where will we
get people to fill and
vacate jobs?
Demand :
predict organizational outputs in
combination with the technology
that the organization intends to use,
dictate the human resource needs
of the organization.
1. Succession planning
programs are complex
systems designed to
safeguard the long-term
health of the organization.
Supply :
2 basic techniques to forecast
internal labor supply
2. The key activities in
succession planning are
identifying high-potential
employees, identifying
needed competencies, and
providing learning
experiences to develop
these competencies.
Judgmental technique :
Replacement Planning
Statistical technique
2 steps of statistical method
- generating an inventory of
current supply
- predicting how the supply is
likely to change over time
Short Term HR
Intermediate Term HR
1. Increase applicant pool
2. Attracting different mix
of applicants
3. Improving qualifications
of new hires
4. Increasing the length of
time that desirable
employees & decreasing
for those undesirable
employees stay with the
5. Help newly hired
employees develop the
skills needed by the
Short-term objectives include
accessing, and assigning
employees to jobs, intermediateterm objectives are more likely
to include readjusting
employees' skills, attitudes, and
behaviors to fit major changes in
the needs of the business,' as
well as adjusting human
resource practices to fit changes
in the needs of employees.
Long Term Hr
Short Term HR
Intermediate Term HR
Recruiting programs are used to
influence the size and quality of the
applicant pool.
Intermediate-Term Programs to Help
Employees Adjust to Changing
Selection programs are developed for
making hiring decisions.
- Technology creates the need for
Performance appraisal systems
identify performance deficiencies to
be corrected and competencies to be
- Service-related jobs require new
management styles
Training programs emphasize
developing skills for use in the near
Compensation systems are designed
to attract new employees, to
motivate people to perform well, and
retain employees
- A shortage of well-prepared new
spurs outreach programs.
- Economic conditions force
- Organizations must adapt to a
Long Term Hr
Psychological testing
program to integrate its
business needs and long
term human resource
Short Term HR
Short-term planning
objectives are generally
stated in terms that are
relatively easy to quantify
(e.g., numbers of
applicants, numbers of
hires & performance levels
of employees), systematic
evaluation of human
resource programs to meet
short-term organizational
needs is quite feasible, and
some types of program
evaluations are actually
common in large
Intermediate Term HR
Long Term Hr
Intermediate time horizon
encompasses more
uncertainties and contingencies
because programs are often
larger in scope and the
appropriate unit of analysis for
evaluation is often the
productivity level of an entire
department or business unit
-Presently most of our knowledge
about how to develop and improve
long-term human resource
programs has been generated
through trial-and-error rather than
through systematic research.
Nevertheless, much knowledge
about individual behavior and
development has been gained by
analysis of the massive amounts of
data generated by large-scale,
ongoing management planning
- Evaluation of succession planning
programs have emphasized the
ability to predict individual
outcomes, such as career progress
and satisfaction.
1. Setting the strategic direction
2. Designing the Human Resource Management System
3. Planning the total workforce
4. Generating the required human resources
5. Investing in human resource development and performance
6. Assessing and sustaining organizational competence and performance
A Strategic Human Resource Planning Model
1.Setting the strategic
Recommended actions
1. Conduct an external environmental scan and evaluate its impact on
the organization
2. Identify the organization’s vision, mission and guiding principles
3. Identify the mission's outcomes and strategic goals
4. Consult all relevant stakeholders
5. Evaluate the impact of legislation on the organization
2.Designing the Human Resource
Management System
Recommended Actions:
1.Identify appropriate human resource plans, policies and practices needed
to support organizational objectives
2.Identify relevant human resource best practices
3.Conduct an employment systems review
3. Planning the Total Workforce
Recommended Actions:
1.Determine the appropriate organizational structure to support the strategic
2.Structure jobs (competencies, tasks and activities) around key activities
3.Develop a workforce plan designed to support the organizations strategic
4.Compile workforce profiles, identifying designated groups, an inventory of
current workforce competencies, competencies required in the future and
identified gaps in competencies
4. Generating the required human resources

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