Part 2Support Activities

Chapter 3:

Planning

McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc., All Rights Reserved.

Organization StrategyOrganization Strategy HR and Staffing StrategyHR and Staffing Strategy

Staffing Policies and Programs

Staffing System and Retention Management

Support Activities

Legal compliance

Planning

Job analysis

Core Staffing Activities

Recruitment: External, internal

Selection:External, internalEmployment:Decision making & final match

OrganizationMission

Goals and Objectives

Staffing Organizations Model

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Chapter Outline

External Influences Economic Conditions Labor Markets Technology Labor Unions

Human Resource Planning Process and Example Initial Decisions Forecasting HR

Requirements Forecasting HR

Availabilities Reconciliation and Gaps Action Planning

Staffing Planning Staffing Planning Process Core Workforce Flexible Workforce Outsourcing

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Discussion Questions for This Chapter

What are ways that the organization can ensure that KSAO deficiencies do not occur in its workforce?

What are the types of experiences, especially staffing- related ones, that an organization will be likely to have if it does not engage in HR and staffing planning?

Why are decisions about job categories and levels so critical to the conduct and results of HRP?

What are the advantages and disadvantages of doing succession planning for all levels of management, instead of just top management?

What is meant by reconciliation, and why can it be useful as an input to staffing planning?

What criteria would you suggest using for assessing the staffing alternatives shown in Exhibit 3.14?

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Ex. 3.1: Examples of ExternalInfluences on Staffing

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Labor Markets: Demand for Labor

Employment patternsDemand for labor is a derived demandJob growth projectionsEmployment growth projections

KSAOs soughtKSAO requirements

Education levelsSurvey of skill deficienciesCritically required skills

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Labor Markets: Supply of Labor

Trends in supply of labor Quantity of labor - Exh. 3.2: Labor Force Statistics Labor force trends relevant to staffing

Growth KSAOs Demographics Other trends ???

KSAOs available Educational attainment Literacy Motivation

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Labor Markets: Other Issues

Labor shortages and surpluses “Tight” labor markets “Loose” labor markets

Employment arrangementsFull-time vs. part-timeRegular or shift workAlternative employment arrangements

Exh. 3.4: Usage of Alternative Employment Arrangements and Contingent Workers

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Technology

Reduces demands for some jobsReplacement for laborMakes products or services obsolete

Increases demands for othersChange in market compositionNew product development

Changes in required skills

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Labor Unions

Trends in union membershipPercentage of labor force unionizedPrivate sector unionization ratePublic sector unionization rate

Contract clauses affecting staffingImpacts on staffing

“Spillover effects” – management copy pay, benefit and staffing practices in unionized settings

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Labor Unions: ContractClauses Affecting Staffing

Management rights Jobs and job structure External staffing Internal staffing

Job posting Lines of movement Seniority

Grievance procedure Guarantees against discrimination

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Discussion Questions

What are ways that the organization can ensure that KSAO deficiencies do not occur in its workforce?

What are the types of experiences, especially staffing- related ones, that an organization will be likely to have if it does not engage in HR and staffing planning?

Why are decisions about job categories and levels so critical to the conduct and results of HRP?

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Overview: HumanResource Planning

Process and ExampleInitial DecisionsForecasting HR RequirementsForecasting HR AvailabilitiesReconciliation and GapsAction Planning

Ex. 3.5: The Basic Elementsof Human Resource Planning

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Ex. 3.6: The Basic Elementsof Human Resource Planning

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HRP: Initial DecisionsStrategic planning

ComprehensivenessLinkages with larger organizational mission

Planning time frameJob categories and levels

What jobs will be covered by a plan?Head count (current workforce)- normal

work/full time definition (ex. 48)Roles and responsibilities, HR propose,

decision made by line manager

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HRP: Forecasting HR Requirements

Statistical techniques – integrated workforce planning softwareExh. 3.7: Examples of Statistical Techniques to

Forecast HR RequirementsRatio analysis -

Judgmental techniques- use human decision-making models “Top-down” approach “Bottom-up” approach – planning from lower level

manager

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HRP: Forecasting HR Availabilities

Approach Determine head count data for current

workforce and their availability in each job category/level – manager judgment ex. Exh. 3.8

Statistical techniquesMarkov analysisLimitations of Markov analysis

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HRP: Forecasting HR Availabilities (cont.)

Approach

Managerial judgment exh. 3.6 & 3.8

Either - promotion -upward change job level within ex. A1 to A2 or between job categories, ex. A1 to B2, transfer or demotion

To be reliable manager must be very knowledge about O buss plans & E buss plans/preferences

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HRP: Forecasting HR Availabilities (cont.)

Markov analysis

base on the historical patterns of job stability & movement among employees

Detail – pg. 105

Limitation – size – big at least 20 or more; does not detect multiple move by employee; job categories must be broad; cause of movement – assume each of employee have an equal probability of movement

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Ex. 3.9 Use of Markov Analysis to Forecast Availabilities

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HRP: Forecasting HR Availabilities (continued)

Replacement and Succession Planning – focus on the identification of individual E – who will be promoted – focus quality and quantity, normally in management levelReplacement planning

Exh. 3.10: Replacement Chart ExampleSuccession planning

Exh. 3.11: Succession Plan Example

Data from HRIS

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Human Resource Planning – enhance its occurrence

Reconciliation and Gaps exh. 3.9 Coming to grips

with projected gaps Likely reasons for

gaps Assessing future

implications

Action Planning Set objectives Generate

alternative activities Assess alternative

activities Choose alternative

activities

Ex. 3.12: Operational Format for Human Resource Planning

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Discussion Questions

What are the advantages and disadvantages of doing succession planning for all levels of management, instead of just top management?

What is meant by reconciliation, and why can it be useful as an input to staffing planning?

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Staffing Planning Process

Staffing objectives – base on gaps requirement & availabilitiesQuantitative objectives – head count or FTE

form for each jobQualitative objectives

Generate alternative staffing activitiesStaffing alternatives to deal with employee

shortages and surpluses

Ex. 3.14 Staffing Alternatives to Deal With Employee Shortages

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Ex. 3.14 Staffing Alternatives to Deal With Employee Surpluses

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Discussion Questions

What criteria would you suggest using for assessing the staffing alternatives shown in Exhibit 3.14?

Exhibit 3.15 Internal Versus External Staffing

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Staffing Planning: Flexible Workforce

Advantages – pg. 121DisadvantagesTwo categories

Temporary employeesStaffing firms

Exh. 3.16: Factors to Consider When Choosing a Staffing Firm

Independent contractors – contract for service

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Staffing Planning: Outsourcing - drastic

AdvantagesDisadvantagesSpecial issues

Employer concerns regarding working conditions

Loss of control over qualityOffshoring