SHRM 1–1

SHRM 1–2
Critical new skills are scarce—and
their uneven distribution around the
world is forcing companies to
develop innovative new ways to find
people, develop capabilities, and
share expertise.

SHRM 1–3
 First component of HRM strategy
 All other functional HR activities are derived from &
flow out of HRP process.
 Basis in considerations of future HR requirements in
light of present HR capabilities & capacities.
 Proactive in anticipating & preparing flexible
responses to changing HR requirements
 Both internal & external focus

SHRM 1–4
 Goes beyond simple hiring & firing
 Involves planning for deployment of human capital in
line with organization &/or business unit strategy
 May involve:
1. Reassignment
2. Training & development
3. Outsourcing
4. Using temporary help or outside contractors

 Needs as much flexibility as possible

SHRM 1–5
 Prevent overstaffing & understaffing
 Ensure organization has right employees
with right skills in right places at right
times
 Ensure organization is responsive to
changes in environment
 Provide direction & coherence to all HR
activities & systems
 Unite perspectives of line & staff
managers
SHRM 1–6
SHRM 1–8
SHRM 1–9
 Aggregate Planning
 Anticipating needs for
groups of employees in
specific, usually lower level
jobs & general skills
employees will need to
ensure sustained high
performance.

SHRM 1–10
 SHRM MODEL

SHRM 1–11
 Forecasting demand
 Considers firm’s strategic plan’s effects on increases or decreases in demand
for products or services
 Assumptions on which forecast is predicated should be written down &
revisited when conditions change (bottom-up planning) involves “point of
contact” estimation of future demand for employees
 involves senior managers allocating a fixed payroll budget across
organizational hierarchy
 Demand for employee skills requirements must also be considered

SHRM 1–12
 Forecasting supply
 The level and quantities of abilities, skills & experiences can be
determined using:
1. Annually updated human resource information system (HRIS) is
dynamic source of HR information
2. Markov analysis can be used to create transition probability matrix that
predicts mobility of employees within organization

SHRM 1–13
 Recruit new permanent  Work current staff overtime
employees
 Subcontract work out
 Offer incentives to postpone
 Hire temporary employees
retirement
 Redesign job processes so
 Rehire retirees part-time
fewer employees are needed
 Attempt to reduce turnover

Recruitment
SHRM 1–14
 Hiring freezes
 Do not replace those who leave
 Offer early retirement
incentives
 Reduce work hours
 Voluntary severance leaves of
absence
SHRM
 Across-the-board pay cuts
 Layoffs
 Reduce outsourced work
 Employee training
 Switch to variable pay plan
 Expand operations
Downsizing
1–15
SHRM 1–18
SHRM 1–19
 Succession Planning
 Focuses on ensuring key critical
management positions in
organization remain filled with
individuals who provide best fit.

SHRM 1–20
 Involves identifying key management positions the organization cannot
afford to have vacant
 Purposes of succession planning
 Facilitates transition when employee leaves
 Identifies development needs of high-potential employees & assists in career
planning
 Many organizations fail to implement succession planning effectively
 Qualified successors may seek external career advancement opportunities if
succession is not forthcoming

SHRM 1–21
SHRM 1–22
• Tie into organization’s strategy (and modified accordingly)

• Monitor the progress and measure outcomes of succession planning

initiatives

• Ensure that all HR functions that impact the succession plan are iterated
and working in tandem

• Ensure centralized coordination of succession planning

• Engage and involve managers throughout the organization

SHRM 1–23
SHRM 1–24
 Reading 5.1: Talent Management for the Twenty-First Century
 Reading 5.2: Designing Succession Planning: Lessons from the
Industry Leaders.
 Reading 5.3:The Annual HR Strategic Planning Process: Design and
Facilitation Lessons from Corning Incorporated Human Resources

SHRM 1–25
Parallels of talent management to supply chain management are numerous and include:
 
• forecasting product demand is comparable to forecasting talent needs;
• estimating the cheapest and fastest ways to manufacture products is the equivalent of
cost-effectively developing talent;
• outsourcing certain aspects of manufacturing processes is like hiring outside;
• ensuring timely delivery relates to planning for succession events.

The issues and challenges in managing an internal talent pipeline – how employees
advance through development jobs and experiences – are remarkably similar to how
products move through a supply chain: reducing bottlenecks that block advancement,
speeding up processing time, improving forecasts to avoid mismatches.

SHRM 1–26
The most innovative approaches to managing talent use four particular
principles drawn from operations and supply chain management.

Two of them address uncertainty on the demand side:

• how to balance make-versus-buy decisions
• how to reduce the risks in forecasting the demand for talent

The other two address uncertainty on the supply side:

• how to improve the return on investment in development efforts
• how to protect that investment by generating internal opportunities that
encourage newly trained managers to stick with the firm

SHRM 1–27
Four principles of supply chain management applied to talent
management

 Make AND buy to manage risk

 Adapt to the uncertainty in talent demand
 Improve the return on investment in developing employees
 Preserve the investment by balancing employee-employer interests

SHRM 1–28
Typically organization have utilized one of three approaches to
managing diversity

 an assimilation view that downplays differences;

 an access view that focuses on building diversity in order to gain
access to ethnic consumer groups;
 an integrated view that emphasizes uniform performance
standards, personal
 development, openness, acceptance of constructive conflict,
empowerment, egalitarianism, and a nonbureaucratic structure
that encourages challenges to the status quo

SHRM 1–29
• An integrated approach combined with a culture of inclusiveness are needed
to ensure diverse succession planning.

• Commitment from and direct involvement by the CEO and senior leadership
team are mandatory for diverse succession planning

• Employees should be encouraged to look upward in the organizational

hierarchy to indentify people who are like themselves

• Specific programs which target women and minorities are needed to bring
about change in the status quo as they may not see people like themselves in
positions higher than the one they hold

SHRM 1–30
• Cross-race mentoring requires that mentors have skills related to
understanding diversity
• Cross-gender relationships need to be carefully managed to prevent any
perceptions of impropriety
• Organization’s such as Denny’s have made thresholds of representation
of minorities and women in management a key component of
executives’ annual bonuses

SHRM 1–31
As part of the planning process, four transformation goals were developed
which guide the organization’s growth (see Figure 1)

SHRM 1–32
SHRM 1–33
These goals resulted in a four-step process which gave business unit
generalists comment tools land language for translating strategies into
action steps for talent development and allow consistency and
comparison for prioritization across business lines (see Figure 2)

SHRM 1–34
SHRM 1–35
Corning’s annual strategic planning process for HR brings together
several key components including:
• corporate strategy and the implications of that strategy for HR
• HR function strategy including the strategic direction for each of
the COEs
• the outputs of the Human Capital Planning process for each of the
business units, which is essentially the HR implications of each of
their business strategies

(see figure 3)

SHRM 1–36
SHRM 1–37