STRATEGIC WORKFORCE PLANNING

.
 Strategic
Strategic Workforce
Workforce Planning
Planning

•• First
First component
component of of HRM
HRM strategy
strategy
•• All
All other
other functional
functional HRHR activities
activities are
are derived
derived
from
from & & flow
flow out
out of
of HRP
HRP process
process
•• Basis
Basis in in considerations
considerations ofof future
future HR
HR requirements
requirements
in
in light
light of
of present
present HR
HR capabilities
capabilities && capacities
capacities
•• Proactive
Proactive in in anticipating
anticipating &&preparing
preparing flexible
flexible
responses
responses to to changing
changing HR
HR requirements
requirements
•• Both
Both internal
internal & & external
external focus
focus
 Strategic
Strategic Workforce
Workforce Planning
Planning

•• Goes
Goes beyond
beyond simple
simple hiring
hiring &
& firing
firing
•• Involves
Involves planning
planning forfor deployment
deployment of of human
human
capital
capital in
in line
line with
with organization
organization &/or
&/or business
business
unit
unit strategy
strategy
•• May
May involve:
involve:
–– Reassignment
Reassignment
–– Training
Training&&development
development
–– Outsourcing
Outsourcing
–– Using
Usingtemporary
temporaryhelp
helpororoutside
outsidecontractors
contractors
•• Needs
Needs as
as much
much flexibility
flexibility as
as possible
possible
 Key
Key Objectives
Objectives
•• Prevent
Prevent overstaffing
overstaffing & & understaffing
understaffing
•• Ensure
Ensure organization
organization has has right
right employees
employees
with
with right
right skills
skills in
in right
right places
places at
at right
right times
times
•• Ensure
Ensure organization
organization isis responsive
responsive to to
changes
changes in in environment
environment
•• Provide
Provide direction
direction & & coherence
coherence to to all
all HR
HR
activities
activities && systems
systems
•• Unite
Unite perspectives
perspectives of of line
line && staff
staff managers
managers
 Types
Types of
of Planning
Planning

•• Aggregate
Aggregate Planning
Planning
–– Anticipating
Anticipatingneeds
needsfor forgroups
groupsofofemployees
employeesinin
specific,
specific,usually
usuallylower
lowerlevel
leveljobs
jobs&&general
generalskills
skills
employees
employeeswill
willneed
needtotoensure
ensuresustained
sustainedhigh
high
performance
performance
•• Succession
Succession Planning
Planning
–– Focuses
Focuseson onensuring
ensuringkey
keycritical
criticalmanagement
management
positions
positionsininorganization
organizationremain
remainfilled
filledwith
with
individuals
individualswho
whoprovide
providebest
bestfitfit
 Aggregate
Aggregate Planning
Planning

•• Forecasting
Forecasting demand
demand
–– Considers
Considersfirm’s
firm’sstrategic
strategicplan’s
plan’seffects
effectson
onincreases
increasesoror
decreases
decreasesinindemand
demandfor forproducts
productsororservices
services
–– Assumptions
Assumptionson onwhich
whichforecast
forecastisispredicated
predicatedshould
shouldbebe
written
writtendown
down&&revisited
revisitedwhen
whenconditions
conditionschange
change
–– Unit
Unitforecasting
forecasting(bottom-up
(bottom-upplanning)
planning)involves
involves“point
“pointofof
contact”
contact”estimation
estimationofoffuture
futuredemand
demandforforemployees
employees
–– Top-down
Top-downforecasting
forecastinginvolves
involvessenior
seniormanagers
managersallocating
allocatingaa
fixed
fixedpayroll
payrollbudget
budgetacross
acrossorganizational
organizationalhierarchy
hierarchy
–– Demand
Demandfor foremployee
employeeskills
skillsrequirements
requirementsmust
mustalso
alsobe
be
considered
considered
 Aggregate
Aggregate Planning
Planning

•• Forecasting
Forecasting supply
supply
–– The
Thelevel
leveland
andquantities
quantitiesofofabilities,
abilities,skills
skills&&
experiences
experiencescan
canbebedetermined
determinedusingusingSkills
Skills
Inventory
Inventory..
–– Annually
Annuallyupdated
updatedhuman
humanresource
resourceinformation
information
system
system(HRIS)
(HRIS)isisdynamic
dynamicsource
sourceofofHR HRinformation
information
–– Markov
Markovanalysis
analysiscan
canbebeused
usedtotocreate
createtransition
transition
probability
probabilitymatrix
matrixthat
thatpredicts
predictsmobility
mobilityofofemployees
employees
within
withinorganization
organization
 Strategies
Strategies for
for Managing
Managing Shortages
Shortages
•• Recruit
Recruit new
new •• Work
Work current
current staff
staff
permanent
permanent employees
employees overtime
overtime
•• Offer
Offer incentives
incentives to
to •• Subcontract
Subcontract work
work out
out
postpone
postpone retirement
retirement •• Hire
Hire temporary
temporary
•• Rehire
Rehire retirees
retirees part-
part- employees
employees
time
time •• Redesign
Redesign job
job
•• Attempt
Attempt toto reduce
reduce processes
processes soso fewer
fewer
turnover
turnover employees
employees areare needed
needed
 Strategies
Strategies for
for Managing
Managing Surpluses
Surpluses

•• Hiring
Hiring freezes
freezes •• Across-the-board
Across-the-board paypay
•• Do
Do not
not replace
replace those
those cuts
cuts
who
who leave
leave •• Layoffs
Layoffs
•• Offer
Offer early
early retirement
retirement •• Reduce
Reduce outsourced
outsourced
incentives
incentives work
work
•• Reduce
Reduceworkwork hours
hours •• Employee
Employee training
training
•• Voluntary
Voluntary severance
severance •• Switch
Switch to
to variable
variable pay
pay
leaves
leaves of
of absence
absence plan
plan
•• Expand
Expand operations
operations
 Succession
Succession Planning
Planning

•• Involves
Involves identifying
identifying key
key management
management positions
positions
the
the organization
organization cannot
cannot afford
afford to
to have
have vacant
vacant
•• Purposes
Purposes ofof succession
succession planning
planning
–– Facilitates
Facilitatestransition
transitionwhen
whenemployee
employeeleaves
leaves
–– Identifies
Identifiesdevelopment
developmentneeds
needsofofhigh-potential
high-potentialemployees
employees&&
assists
assistsinincareer
careerplanning
planning
•• Many
Many organizations
organizations fail
fail to
to implement
implement succession
succession
planning
planning effectively
effectively
–– Qualified
Qualifiedsuccessors
successorsmaymayseek
seekexternal
externalcareer
careeradvancement
advancement
opportunities
opportunitiesififsuccession
successionisisnot
notforthcoming
forthcoming
 Guidelines
Guidelines for
for Effective
Effective Succession
Succession Planning
Planning

•• Tie
Tieinto
intoorganization’s
organization’sstrategy
strategy(and
(andmodified
modifiedaccordingly)
accordingly)

••Monitor
Monitorthe
theprogress
progressand
andmeasure
measureoutcomes
outcomesof
ofsuccession
succession
planning
planninginitiatives
initiatives

••Ensure
Ensurethat
thatall
allHR
HRfunctions
functionsthat
thatimpact
impactthe
thesuccession
succession
plan
planare
areiterated
iteratedand
andworking
workingin intandem
tandem

••Ensure
Ensurecentralized
centralizedcoordination
coordinationof
ofsuccession
successionplanning
planning

••Engage
Engageand
andinvolve
involvemanagers
managersthroughout
throughoutthe
theorganization
organization
 Reading
Reading5.1
5.1
Designing
DesigningSuccession
SuccessionPlanning:
Planning:Lessons
Lessonsfrom
fromthe
theIndustry
Industry
Leaders
Leaders

Typically
Typicallyorganization
organizationhave
haveutilized
utilizedone
oneof
ofthree
threeapproaches
approaches
to
tomanaging
managingdiversity
diversity

•• an
anassimilation
assimilationview
viewthat
thatdownplays
downplaysdifferences;
differences;
•• an
anaccess
accessview
viewthat
thatfocuses
focuseson
onbuilding
buildingdiversity
diversityin
inorder
order
to
togain
gainaccess
accesstotoethnic
ethnicconsumer
consumergroups;
groups;
•• an
anintegrated
integratedview
viewthat
thatemphasizes
emphasizesuniform
uniformperformance
performance
standards,
standards,personal
personal
•• development,
development,openness,
openness,acceptance
acceptanceofofconstructive
constructive
conflict,
conflict,empowerment,
empowerment,egalitarianism,
egalitarianism,and
andaa
nonbureaucratic
nonbureaucraticstructure
structurethat
thatencourages
encourageschallenges
challengesto
to
the
thestatus
statusquo
quo
 Reading
Reading5.1
5.1
Designing
DesigningSuccession
SuccessionPlanning:
Planning:Lessons
Lessonsfrom
fromthe
theIndustry
Industry
Leaders
Leaders
•• An
Anintegrated
integratedapproach
approachcombined
combinedwith
withaaculture
cultureof
ofinclusiveness
inclusivenessare
are
needed
neededtotoensure
ensurediverse
diversesuccession
successionplanning.
planning.

•• Commitment
Commitmentfromfromand
anddirect
directinvolvement
involvementby bythe
theCEO
CEOand
andsenior
senior
leadership
leadershipteam
teamare
aremandatory
mandatoryforfordiverse
diversesuccession
successionplanning
planning

•• Employees
Employeesshould
shouldbe
beencouraged
encouragedtotolook
lookupward
upwardininthe
theorganizational
organizational
hierarchy
hierarchytotoindentify
indentifypeople
peoplewho
whoare
arelike
likethemselves
themselves

•• Specific
Specificprograms
programswhich
whichtarget
targetwomen
womenand andminorities
minoritiesare
areneeded
neededtoto
bring
bringabout
aboutchange
changeininthe
thestatus
statusquo
quoas
asthey
theymay
maynot
notsee
seepeople
peoplelike
like
themselves
themselvesininpositions
positionshigher
higherthan
thanthe
theone
onethey
theyhold
hold
 Reading
Reading5.1
5.1
Designing
DesigningSuccession
SuccessionPlanning:
Planning:Lessons
Lessonsfrom
fromthe
theIndustry
Industry
Leaders
Leaders

•• Cross-race
Cross-race mentoring
mentoring requires
requiresthat
that mentors
mentors have
have
skills
skills related
related to
to understanding
understanding diversity
diversity
•• Cross-gender
Cross-gender relationships
relationships need
need to
to be
be carefully
carefully
managed
managed to to prevent
prevent any
any perceptions
perceptions ofof
impropriety
impropriety
•• Organization’s
Organization’s such such as
as Denny’s
Denny’s have
have made
made
thresholds
thresholds of of representation
representation of
of minorities
minorities and
and
women
women in in management
management aa keykey component
component of of
executives’
executives’ annual
annual bonuses
bonuses
 Reading
Reading5.2
5.2
The
TheAnnual
AnnualHR
HRStrategic
StrategicPlanning
PlanningProcess:
Process:Design
Designand
andFacilitation
Facilitation
Lessons from Corning Incorporated Human Resources
Lessons from Corning Incorporated Human Resources

As
As part
part of
of the
the planning
planning process,
process, four
four transformation
transformation
goals
goals were
were developed
developed which
which guide
guide the
the
organization’s
organization’s growth
growth (see
(see Figure
Figure 1)1)
 Reading
Reading5.2
5.2
The
TheAnnual
AnnualHR
HRStrategic
StrategicPlanning
PlanningProcess:
Process:Design
Designand
andFacilitation
FacilitationLessons
Lessons
from Corning Incorporated Human Resources
from Corning Incorporated Human Resources
 Reading
Reading5.2
5.2
The
TheAnnual
AnnualHR
HRStrategic
StrategicPlanning
PlanningProcess:
Process:Design
Designand
andFacilitation
FacilitationLessons
Lessons
from Corning Incorporated Human Resources
from Corning Incorporated Human Resources

These
These goals
goals resulted
resulted in
in aa four-step
four-step process
process which
which gave
gave
business
business unit
unit generalists
generalists comment
comment tools
tools land
land
language
language forfor translating
translating strategies
strategies into
into action
action steps
steps
for
for talent
talent development
development and and allow
allowconsistency
consistency and and
comparison
comparison for for prioritization
prioritization across
acrossbusiness
businesslines
lines
(see
(see Figure
Figure2)2)
 Reading
Reading5.2
5.2
The
TheAnnual
AnnualHR
HRStrategic
StrategicPlanning
PlanningProcess:
Process:Design
Designand
andFacilitation
Facilitation
Lessons from Corning Incorporated Human Resources
Lessons from Corning Incorporated Human Resources
 Reading
Reading5.2
5.2
The
TheAnnual
AnnualHR
HRStrategic
StrategicPlanning
PlanningProcess:
Process:Design
Designand
andFacilitation
Facilitation
Lessons from Corning Incorporated Human Resources
Lessons from Corning Incorporated Human Resources

Corning’s
Corning’sannual
annualstrategic
strategicplanning
planningprocess
processfor
forHR
HRbrings
brings
together
togetherseveral
severalkeykeycomponents
componentsincluding:
including:
•• corporate
corporatestrategy
strategyand
andthe
theimplications
implicationsofofthat
thatstrategy
strategyfor
for
HR
HR
•• HR
HRfunction
functionstrategy
strategyincluding
includingthe
thestrategic
strategicdirection
directionfor
for
each
eachof
ofthe
theCOEs
COEs
•• the
theoutputs
outputsofofthe
theHuman
HumanCapital
CapitalPlanning
Planningprocess
processforfor
each
eachof
ofthe
thebusiness
businessunits,
units,which
whichisisessentially
essentiallythe
theHRHR
implications
implicationsofofeach
eachof
oftheir
theirbusiness
businessstrategies
strategies

(see
(seefigure
figure3)
3)
 Reading
Reading5.2
5.2
The
TheAnnual
AnnualHR
HRStrategic
StrategicPlanning
PlanningProcess:
Process:Design
Designand
andFacilitation
Facilitation
Lessons from Corning Incorporated Human Resources
Lessons from Corning Incorporated Human Resources