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Part 2

Support Activities
Chapter 3:
Planning

McGraw-Hill/Irwin

Copyright 2009 by The McGraw-Hill Companies, Inc., All

Ex. 3.1: Examples of External


Influences on Staffing

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Labor Markets: Demand for Labor


Employment

patterns

Demand

for labor is a derived demand


Job growth projections
Employment growth projections
KSAOs
KSAO

sought
requirements

Education

levels

Survey

of skill deficiencies
Critically 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

arrangements

Full-time

vs. part-time
Regular or shift work
Alternative employment arrangements
Exh.

3.4: Usage of Alternative Employment


Arrangements and Contingent Workers
3-5

Technology
Reduces

demands for some jobs

Replacement

for labor
Makes products or services obsolete
Increases

demands for others

Change

in market composition
New product development
Changes

in required skills

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Labor Unions
Trends

in union membership

Percentage

of labor force unionized


Private sector unionization rate
Public sector unionization rate
Contract

clauses affecting staffing


Impacts on staffing
Spillover

effects

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Labor Unions: Contract


Clauses 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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HR Planning Process
Overall
Strategic Plan
Human Resources
Strategic Plan
HR Activities

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Overview: Human
Resource Planning
Process

and Example
Initial Decisions
Forecasting HR Requirements
Forecasting HR Availabilities
Reconciliation and Gaps
Action Planning

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Ex. 3.5: The Basic Elements


of Human Resource Planning

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Ex. 3.6: The Basic Elements


of Human Resource Planning

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HRP: Initial Decisions


Strategic

planning

Comprehensiveness
Linkages

with larger organizational mission

Planning

time frame
Job categories and levels
What

jobs will be covered by a plan?

Head

count (current workforce, FTEs)


Roles and responsibilities
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HRP: Forecasting HR Requirements


Statistical

techniques

Exh.

3.7: Examples of Statistical


Techniques to Forecast HR Requirements

Judgmental

techniques

Top-down

approach
Bottom-up approach

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HRP: Forecasting HR Availabilities


Approach
Determine

head count data for current


workforce and their availability in each job
category/level

3-16

Approaches to forecasting
availabilities.

Manager

Judgment
Markov Analysis
Replacement and succession planning

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Manager Judgment
Individual

managers may use their


judgment to make availability forecasts
for their work units.
This is especially appropriate in smaller
organizations or ones
that lack centralized workforce internal
mobility data and
statistical forecasting capabilities.
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Markov analysis
Markov

Analysis is used to predict


availabilities on the basis of historical
patterns of job stability and movement
among employees.

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Markov Analysis
As

illustrated in Figure, such an analysis


shows the actual number (and
percentage) of employees who remain in
each job from one year to the next,
as well as the proportions promoted,
demoted, transferred, and leaving the
organization. These proportions
(probabilities) are used to forecast human
resources supply.
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Replacement and Succession


Planning

Replacement and succession planning


focus on the identification of individual
employees who will be considered
promotion candidates, along with
thorough assessment of their current
capabilities and deficiencies, coupled
with training and development plans to
erase any deficiencies.
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Replacement and Succession


Planning
It

may also be used for linchpin positions


ones that are critical to organization
effectiveness (such as senior scientists
in the research and development
function of a technology-driven
organization)

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Succession Planning
Succession

plans build upon


replacement plans and directly tie into
leadership development.
The intent is to ensure that candidates
for promotion will have the specific
KSAOs and general competencies
required for success on the new job.

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Succession Planning
Acceleration

pool.
This pool contains hotshots i.e.
employees from around the organization
who are being groomed for management
positions generally, and for rapid
acceleration upward, rather than
progressing through the normal
promotion paths.
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Succession Planning
Replacement

and succession planning


software (for example, see
www.successionwizard.com or
www.authorial.com) might be helpful in
this regard.

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External and Internal


Environmental Scanning
External

Scanning
This is the term applied to the process of
tracking trends and developments in the
outside world, documenting their
implications for the management of
human resources, and ensuring that
these implications receive attention in
the HRP process.
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Example of Environmental Scan for


Employment Outlook
Health

care costs will continue to rise


Employees demand more flexible work
schedules to create better work/life
balance.
Attempts to link pay to performance will
continue, but will be difficult.
A growth in knowledge-based jobs may
lead to more telecommuting.
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Internal Scanning
Thus,

planners must be out and about in


their organizations, taking advantage of
opportunities to learn what is going on.
Informal discussions with key managers
can help, as can employee attitude
surveys, special surveys, and the
monitoring of key indicators such as
employee performance, absenteeism,
turnover, and accident rates.
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Internal Scanning
Of

special interest is the identification of


nagging personnel problems, as well as
prevailing managerial attitudes
concerning HR.

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Nagging

personnel problems refer to


recurring difficulties that threaten to
interfere with the attainment of future
business plans or other important
organizational goals.

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Human Resource Planning


Reconciliation

and

Gaps
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

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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

Quantitative

objectives
Qualitative objectives
Generate

alternative staffing activities

Staffing

alternatives to deal with employee


shortages and surpluses

Assessing and choosing alternatives

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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?

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Staffing Planning: Flexible


Workforce
Advantages
Disadvantages
Two

categories

Temporary
Staffing

employees

firms

Exh. 3.16: Factors to Consider When Choosing a


Staffing Firm

Independent

contractors

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Staffing Planning: Outsourcing


Advantages
Disadvantages
Special

issues

Employer

concerns regarding working


conditions
Loss of control over quality
Offshoring

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