INTERNAL - EXTERNAL INFLUENCES

HR PLANNING

CHAPTER 2
STAFFING PLANNING
PLANNING
DIVERSITY PLANNING

LEGAL ISSUES
 LEARNING OBJECTIVES
• Recognize internal and external influences that will shape the planning
process
• Understand how strategic plans integrate with staffing plans
• Become familiar with statistical and judgmental techniques for
forecasting HR requirements and availabilities
• Know the similarities and differences between replacement and
succession planning
• Understand the advantages and disadvantages of a core workforce, a
flexible workforce, and outsourcing strategies for different groups of
employees • Learn how to incorporate diversity into the planning process
• Recognize the fundamental components of an affirmative action plan
HR Planning

External
Environment
Staffing Planning
•Government
regulation
•Economics HR
•Market trends Compliance L&D Planning
•Technology
•Competition
Vision
Business Performance Management
Mission HR Strategy
Strategy Planning
Core Value

Internal
HR Total Rewards Planning
Environment
Information
•Culture
Systems
•Structure
•Politics Employee
•Employee skills Relations Planning

Adapted from Strategic Human Resource Management by Jeffrey A. Mello

I. INTERNAL & EXTERNAL INFLUENCES

External Environment
• Government regulation
• Economics
• Market trends
• Technology
• Competition
HR Strategy
• HR planning
Vision
• Design of jobs and work systems
Mission Business Strategy - what staff do
Core Value
- what staff need
- how jobs interface with others

Internal Environment
• Culture
• Structure
• Politics
• Employee skills

Adapted from Strategic Human Resource Management by Jeffrey A. Mello

4
Organizational Strategy

Current financial and human resources in the organization

Demand for products and/or services

Competitors and partners

Financial and marketing goals

Organizational Culture

The expressed vision of executives

The degree of hierarchy and bureaucracy

Style of communication
Labor Markets

Labor demand
Labor demand: employment patterns
Labor demand: KSAOs sough

Labor supply
Labor supply: the labor force and its trends
Labor supply; KSAOs available

Labor shortages and surpluses

Employment arrangements
Technology

Elimination of jobs

Creation of jobs

Changes in skill requirements

Advantages and Disadvantages of Internal - External Staff
Advantages
• Positive employee reactions to
promotion from within
• Quick method to identify job
Internal applicants
• Less expensive
• Less time required to reach full
productivity
• Brings in employees with new KSAOs
• Larger number of minorities and
women to draw from
External • Large labor market to draw from
• Experienced employees may require
less training time
Disadvantages
• No new KSAOs into the organization
• May perpetuate current
underrepresentation of minorities and
women
• Small labor market to recruit from
• Inexperienced employees may require
more training time
• Negative reaction by internal
applicants
• Time-consuming to identify applicants
• Expensive to search external labor
market
• More time required to reach full
productivity
 II. STAFFING PLANNING PROCESS
Process and Example

(1) Forecast Labor Requirements

Compare (3) Determine Gaps (4) Develop Action Plans

(2) Forecast Labor Availabilities

**** See more exhibit 3.6 page 104 for an example

Initial Decisions

1. Strategic Planning
2. Planning Time Frame
3. Job Categories and Levels
4. Headcount (Current Workforce)
5. Roles and Responsibilities
Forecasting HR Requirements (Demand Forecasting)

Scenario Planning Trend Analysis

Judgmental Techniques Ratio Analysis

Nominal Group/Delphi Regression Analysis

Technique
Forecasting HR Availabilities (Supply Forecasting)

HRIS Replacement Charts

Markov Analysis Succession Planning

Manager Judgment/ Turnover Analysis

Departmental Estimates
Flow Analysis (Manager Judgment)
Reconciliation and Gaps
 III. STAFFING PLANNING
Staffing planning

• Staffing Objectives respond to shortages and surpluses in both quantitative

and qualitative target.
Ø Quantitative staffing objectives refer to number of headcount.
Ø Qualitative staffing objectives refer to KSAOs.
• Should the organization use a core workforce or a flexible workforce?
• Should parts of the workforce be outsourced?
Staffing Planning

Ø “Building” the talent refers to redeploying as well as training and

developing the current workforce to meet the future needs of the
organization.
Ø “Buying” the talent refers to recruiting and hiring employees.
Ø “Borrowing” the talent refers to outsourcing, leasing, and contracting
with others to get the work done.”
Generating alternative staffing activities
Generating alternative staffing activities
Types of Workforce

Core Workforce: regular full-time and part-time employees of

organization.
Ø Advantages: stability, continuity, predictability
Ø Disadvantages: a potential loss of flexibility, high cost, legal
obligations, restriction of getting new technical knowledge.
Types of Workforce

Flexible Workforce: temporary employees provided by staffing firms

and independent contractors.
Ø Advantages: flexibility in adjusting staffing quickly, cost advantages,
and legal obligations.
Ø Disadvantages: bahaviors, loss of control, friction between core and
flexible employees, poor performance.
Types of Workforce

Outsourcing: transfer of a business process to an external organizations.

Offshoring: ourside the country outsource
Ø Advantages:
• Cost saving for workforce
• High availability
• Access to high skilled labor force
Ø Disadvantages:
• Language barriers
• Culture
• Security issues
• Quality control problems
 IV. DIVERSITY PLANNING

Diversity is described as “the similarities and differences between

individuals”.
Purposes:
• Attract and recruit a diverse workforce
• Develop and retain a diverse workforce
• Provide equal employment opportunities to everyone
Business case for diversity
Area of Concern
Legal and policy compliance
Staffing levels
Employee attitudes and behavior
Product/service market
Effective Diversity Management
• Avoids lawsuits
• Minimizes operational disturbances
• Prevents negative press due to government investigations
• Broadens base of candidates from which to select
• Increases diversity of employee KSAO
• Improves potential to respond to environmental change
• Improves retention of employees
• Enhances engagement
• Creates perceptions of justice
• Fosters cooperation and collaboration among employees
• Increases insight into diverse customer groups’ preferences
• Heightens sensitivity in interacting with the public
• Improves relationships with communities and regulatory agencies
Planning for diversity

Active diversity strategy: the organization goes a step further by

encouraging underrepresented groups to apply for positions, actively
recruiting from a variety of sources that are likely to be seen by
underrepresented groups, and providing additional training and
mentoring to encourage the advancement of underrepresented groups.
Passive diversity strategy: the organization reviews all policies and
practices to ensure there is no discrimination on the basis of race,
religion, national origin, gender, disability status, age, or other protected
classes covered locally
 V. LEGAL ISSUES
Affirmative Action Plans (AAPs)

There are 3 major components:

1. Availability analysis of woman and minorities
2. Placement goals derived from comparing availability with
incumbency
3. Action-oriented programs for meeting the placement goals.
 DISCUSSION QUESTIONS

1. What are ways in which the organization can ensure that KSAO deficiencies do
not occur in its workforce?
2. What types of experiences, especially staffing-related ones, will an organization
be likely to have if it does not engage in HR and staffing planning?
3. Why are decisions about job categories and levels so critical to the conduct and
results of HRP?
4. What are the advantages and disadvantages of doing succession planning for all
levels of management instead of just top management?
5. What is meant by reconciliation, and how can it be useful as an input to staffing
planning?
6. What criteria would you suggest using for assessing the staffing alternatives
shown in Exhibit 3.14?
 ETHICAL ISSUES

• Does an organization have an ethical responsibility to share

with all of its employees the results of its forecasting of HR
requirements and availabilities? Does it have an ethical
responsibility not to do this?