Chapter 2 in Human Resources Management

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    Copyright 2011 Pearson Education, Inc.

    publishing as Prentice Hall

    PowerPoint Presentation by Charlie Cook

    The University of West Alabama

    Chapter 5

    Personnel Planning

    and Recruiting

    Part Two | Recruitment and Placement

    CHAPTER 2

    HUMAN RESOURCEPLANNING

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    Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall 32

    Why Strategic Planning Is ImportantTo All Managers

    The firms strategic plan guides much of what is done by

    all to accomplish organizational goals.

    Decisions made by managers depend on the goals set

    at each organizational level in support of higher level

    goals.

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    Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall 33

    Fundamentals of Management Planning

    1

    2

    3

    4

    5

    The Planning Process

    Make forecasts and check assumptions.

    Set an objective.

    Determine/develop alternative courses of action.

    Evaluate the alternatives.

    Implement and evaluate your plan.

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    Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall 34

    Specific

    Measureable

    Attainable

    Relevant

    Timely

    How Managers Set Objectives:SMART Goals

    S

    M

    A

    R

    T

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    How to Set Motivational Goals

    Assign

    specific

    goals

    Assign

    measurable

    goals

    Assign

    challenging but

    doable goals

    Motivational Goal Setting

    Encourage

    employee

    participation

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    Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall 36

    The Strategic Management Process

    Strategy

    A course of action the organization intends to pursue to achieveits strategic aims.

    Strategic Plan

    How an organization intends to match its internal strengths and

    weaknesses with its external opportunities and threats tomaintain a competitive advantage over the long term.

    Strategic Management

    The process of identifying and executing the organizations

    mission by matching its capabilities with the demands of its

    environment.

    Leveraging

    Capitalizing on a firms unique competitive strength while

    underplaying its weaknesses.

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    Business Vision and Mission

    Vision

    A general statement of an organizations intended direction thatevokes emotional feelings in organization members.

    Mission

    Spells out who the firm is, what it does, and where its headed.

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    FIGURE 35 The Strategic Management Process

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    FIGURE 38 Type of Strategy at Each Company Level

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    Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall 310

    Types of Corporate Strategies

    Concentration

    Vertical

    integration

    Diversification

    Corporate Strategy Possibilities

    Consolidation

    Geographic

    expansion

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    Types of Competitive Strategies

    Cost leadership Differentiation

    Business-Level

    Competitive Strategies

    Focus/Niche

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    Achieving Strategic Fit

    The Fit Point of View (Porter)

    All of the firms activities must be tailored to or fit the chosenstrategy such that the firms functional strategies support its

    corporate and competitive strategies.

    Leveraging (Hamel and Prahalad)

    Stretch in leveraging resourcessupplementing what you haveand doing more with what you havecan be more important

    than just fitting the strategic plan to current resources.

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    Departmental ManagersStrategic Planning Roles

    Help devise

    the strategicplan

    Formulate

    supporting,

    functional/departmental

    strategies

    Department Managers

    and Strategy Planning

    Execute

    the strategicplans

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    Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall 314

    Strategic Human Resource Management

    Human Resources Planning (HRP)

    Process of anticipating and making provision for the movement(flow) of people into, within, and out of an organization

    Strategic Human Resource Management

    The linking of HRM with strategic goals and objectives in orderto improve business performance and develop organizational

    cultures that foster innovation and flexibility.

    Involves formulating and executing HR systemsHR policies

    and activitiesthat produce the employee competencies and

    behaviors that the company needs to achieve its strategic aims.

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    FIGURE 310 Linking Company-Wide and HR Strategies

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    FIGURE 311 Basic Model of How to Align HR Strategy

    and Actions with Business Strategy

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    Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall 517

    FIGURE 51 Steps in Recruitment and Selection Process

    The recruitment and selection process is a series of hurdles aimed at selecting the best candidate for the job.

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    FIGURE 52 Linking Employers Strategy to Plans

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    2010 South-Western, a part of Cengage Learning. All rights reserved. 219

    FIGURE

    2.4Model of HR Forecasting

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    Planning and Forecasting

    Employment or Personnel Planning

    The process of deciding what positionsthe firm will have to fill, and how to fill them.

    Succession Planning

    The process of deciding how to fill the

    companys most important executive jobs.

    What to Forecast?

    Overall personnel needs

    The supply of inside candidates

    The supply of outside candidates

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    Forecasting Personnel Needs

    Trend analysis Ratio analysis

    Forecasting Tools

    Scatter plotting

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    Drawbacks to Traditional ForecastingTechniques

    They focus on projections and historical relationships.

    They do not consider the impact of strategic initiatives on

    future staffing levels.

    They support compensation plans that reward managersfor managing ever-larger staffs.

    They bake in the idea that staff increases are

    inevitable.

    They validate and institutionalize present planning

    processes and the usual ways of doing things.

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    Using Computers to Forecast PersonnelRequirements

    Computerized Forecasts

    Software that estimates future staffing needs by:

    Projecting sales, volume of production, and personnel

    required to maintain different volumes of output.

    Forecasting staffing levels for direct labor, indirect staff, and

    exempt staff.

    Creating metrics for direct labor hours and three sales

    projection scenariosminimum, maximum, and probable.

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    Forecasting the Supply ofInside Candidates

    Manual systems and

    replacement charts

    Computerized skills

    inventories

    Qualification

    Inventories

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    FIGURE 54 Management Replacement Chart Showing Development

    Needs of Potential Future Divisional Vice Presidents

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    The Matter of Privacy

    Ensuring the Security of HR Information

    Control of HR information through access matrices

    Access to records and employee privacy

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    Forecasting Outside Candidate Supply

    Factors In Supply of Outside Candidates

    General economic conditions

    Expected unemployment rate