Human Resource Planning (adapted from Gomez

et al., 1998, p. 144)

Service and Product Employee Organizatioanl External
Demand Productivity Labor Market Labor Market

Labor Demand Labor Supply

Conditions and Select Responses

Scenario 1: Labor Demand Exceeds Labor Supply
•Training or retraining
•Succession planning
•Promotion from within
•Subcontracting
•Recruitment from outside
•Use of overtime
•Use of part-timers or temporary workers

Scenario 2: . Labor Supply Exceeds Labor Demand

•Pay cuts •Layoffs
•Reduced hours •Work Sharing
•Voluntary early retirements
•Inducements to quit (for example, severance pay)

Scenario 3: Labor Demand Equals Labor Supply

•Replacement of quits from inside or outside
•Internal transfers and redeployment

MHR 5- 1
 Traditional HRM Models
• Industrial Model
– detailed workplace rules and procedures
– narrow, rigid job definitions
– broad management discretion
• constrained only by CLAs
– job controlled unionism
– seniority rules
– no job security
• but provisions for seniority
• Salaried Model
– less rigid rules and terms of employment
– broadly defined jobs
– greater job security
– white collar
– usually seen as non-union
– less emphasis on seniority and more on merit
– no job security
 Factors driving new HRM
• Changing environment
– competition and cost pressure
• globalization, freer trade agreements, brain drain
– technology
– work organization
• teams
– labour force changes
• demographics and diversity
– legislation and regulation
– economy
• no longer stable, mass production economy
 New HRM Models
• Low Labour Cost Strategy
– Canadian labour costs relatively high
• emphasis on global cost competition
– reduce costs by:
• layoff
• part-time and contingent workers
 High Performance Strategy
• High Performance Strategy
– differentiation strategy
• win markets by:
– product innovation, quality, service, specialization
– Requires:
• employee involvement / empowerment
• employee commitment
• organizational commitment
– Can be compensation or participation based
 Comparisons
Traditional Participative Compensation
Themes Taylorism Broad Job Design, Varied
teams Compensation
Participation Limited High varies
HR Link to Org Low High varies
Strategy
Investment in Low High Varies-use of
Employees career ladders
Compensation Straight May use incentives High use of
incentives
Goals Low cost High value product
 Elements of High Performance
Workplace-Participation Based

• Flexible work
• Commitment to training
• Employee involvement and participation
• Sharing of benefits, risks, information
• Improved work processes to reduce stress
and improve health
• Family-friendly policies