Planning for People

Mohammed Najib
Zaky Wardhana
Sarrah Dwiananda
 LEADERSHIP SUCCESSION—A KEY
CHALLENGE FOR ALL
Today, McDonald’s is one of the world’s largest and most successful food
service retailers, earning over US$21 billion in annual revenues worldwide.
This success can only be attributed to the company’s deep and well-
developed leadership bench. If Bell had not been prepared to replace
Cantalupo, and Skinner to replace Bell, McDonald’s may not have made it
past 2004. But they did, and what followed was an unprecedented “Golden
Age for the Golden Arches.” And that’s how McDonald’s got CEO succession
planning right.
Key Takeaways:-
1. Have a plan – “It’s a lot easier to put the train on the track than to find the
track in the first place” – Dennis Lombardi, EVP, Technomic Inc.7
2. Have a back-up plan –This type of planning enables companies to respond
when multiple unexpected departures occur.
 BUSINESS STRATEGY—FOUNDATION FOR ALL
ORGANIZATIONAL DECISIONS

Business strategy consists of the decisions, processes, and choices that firms
make to position themselves for sustainable success.
HR strategy consists of the decisions, processes, and choices that firms make about how to manage their
people.
Strategy formulation answers the basic question, “How will we compete?” It is a vital role of senior
leaders within an organization, and it typically considers the external environment, customer trends,
competitive positioning, and internal strengths and weaknesses.
Strategy analysis defines the crucial (or pivotal) elements for the strategy’s success. Analyzing the
overall strategy to reveal implications of these pivotal elements focuses attention on the execution of the
broader business strategy.
Strategy implementation (execution), in which firms take the necessary actions to implement their
strategies. After all, decisions are of little use unless they are acted upon. Strategy implementation makes
the intended strategy real.
Strategic management, is the ongoing planning, monitoring, analysis and assessment of all necessities
an organization needs to meet its goals and objectives.
 BUSINESS STRATEGY—FOUNDATION FOR ALL
ORGANIZATIONAL DECISIONS

Successful firms strive to develop bases for competitive advantage; that is, they try to do something
that is valuable, rare, and difficult to imitate. For example, they may achieve competitive advantage
through cost leadership or differentiation, or by focusing narrowly on a market segment.
Consider differentiation as an example. It consists in creating differences in a firm’s product or
services by creating something that is perceived industrywide as unique and valued by customers, for
example:
■ Prestige (Ritz-Carleton hotels or BMW automobiles).
■ Technology (Bose sound systems, Apple).
■ Innovation (3M, Medtronic medical equipment, Intel).
■ Customer service (Lexus, Nordstrom department stores).
 Ensuring Coherence in Strategic
Direction
• Strategic coherence results from your ability to connect what you sell (your products and services)
with your unique and differentiating capabilities (what you, as a company, do to be great) — all
within the framework of a clear way to play (your way of creating value for your customers).
• An organization’s vision should be “massively inspiring, overarching, and long term.” Emotionally driven, it is a fundamental statement of an
organization’s values, aspirations, and goals.
• Here are some examples for mottoes:-
■ “To be the happiest place on earth” (Disneyland). “Where Dreams Come True.”
■ “Restoring patients to full life” (Medtronic).
■ “To be the world’s best quick-service restaurant” (McDonald’s).

• NOTE:- ((A mission statement defines the organization's business, its objectives, and how it will
reach these objectives. A vision statement details where the organization aspires to go. Why does
your company exist? What do you hope to accomplish in the next several years?)) It includes both
the purpose of the company as well as the basis of competition and competitive advantage.
To continually provide our members with quality goods and services at the lowest possible prices. In
order to achieve our mission we will conduct our business with the following Code of Ethics in mind:
■ Obey the law.
■ Take care of our members.
■ Take care of our employees.
■ Respect our vendors.
 If we do these four things throughout our organization, then we will realize our ultimate goal, which is to reward our
shareholders.

Goals must be SMART:-that is, they are Specific, Measurable, Appropriate (consistent with
the vision and mission), Realistic (challenging but do able), and Timely.
 SMART objectives have several advantages:-
• They help to channel the efforts of all employees toward common goals.
• They can motivate and inspire employees to higher levels of commitment and effort.
• They can provide a yardstick to measure performance, and thus the distribution of rewards and incentives.
 how to plan for the future when
the future changes so quickly?

 The answer is to make the planning process more democratic. Instead of relegating strategic
planning to a separate staff—as in the past—it needs to include a wide range of people, from
line managers to customers to suppliers.
 Top managers must listen and be prepared to shift plans in midstream, if conditions demand
it. This is exactly the approach that Cisco Systems takes. It is not wedded to any particular
technology, because it recognizes that customers are the arbiters of choice. It listens carefully
to its customers and then offers solutions that customers want.
 RELATIONSHIP OF HR STRATEGY
TO BUSINESS STRATEGY
 At a general level, high-performance work practices include such workplace features as the following:
■ Worker empowerment, participation, and autonomy.
■ The use of self-managed and cross-functional teams.
■ Commitment to superior product and service quality.
■ Flat organizational structures.
■ Use of contingent workers.
■ Flexible or enriched design of work that is defined by roles, processes, output requirements, and distal criteria
(e.g., customer satisfaction), rather than (or in addition to) rigidly prescribed job-specific requirements.
■ Rigorous staffing and performance management practices.
■ Various worker- and family-friendly HR policies that reward employee development, continuous learning, and
support work-life fit.
HR metrics serve as a kind of overlay to the model itself.
HR metrics should reflect the key drivers of individual, team, and organizational performance. When they do,
the organization is measuring what really matters.
Strategic Workforce Plans
They focus on questions such as these: What do the proposed business strategies imply with respect to human resources?
What kinds of internal and external constraints will (or do) we face?
Alternative Perspective on Jobs
Sisi Lain dari Sebuah “Pekerjaan”
Dewasa ini, ada banyak sudut pandang yang berbeda tentang konteks sebuah pekerjaan. Tidak semerta
hanya mengikuti perintah dan melakukan tugas, namun lebih esensial dan kritis.

Siapa yang Bagaimana

Siapa yang Apa kualifikasi
memutuskan berapa seharusnya kinerja
menentukan isi dari minimum untuk
banyak pekerja yang pada setiap
pekerjaan? pekerjaan tersebut?
diperlukan? pekerjaan diukur?

Maturitas ini menghasilkan suatu konsep dalam sebuah bidang pekerjaan. Meliputi Job
Design, Job Analysis, Identifikasi pekerjaan, dan competency models, yang akan dibahas di
presentasi kali ini.
Job Design
• Proses memperoleh Contoh Job design akibat modernisasi teknologi
dampak teknologi terhadap perubahan dalam
informasi tentang Job Design) -> SYSCO adalah sebuah
pekerjaan. Desain perusahaan yang bergantung pada process
delivery makanan sampai ke customer. Karena
pekerjaan difokuskan majunya teknologi, kini system ERP (Enterprise
pada bagaimana Requirements Planning system) membuat
pekerjaan akan perubahan yang signifikan pada Task tim
Gudang. Dari yang mulanya melakukan
dilakukan atau diubah. pengecekan dengan manual ke setiap rak,
Termasuk tugas dari namun kini semua tersentralisasi. Hanya
dengan 1 computer, registrasi barang, input
seorang pekerja. database, bahkan callout barang dapat
dilakukan hanya dengan mouse-click.
 Contoh perubahan system akibat teknologi

Salah satu contoh supplier yang memberikan

pelayanan ERP.
Dengan melakukan optimisasi dan simplifikasi
pekerjaan pergudangan dengan invoasi
teknologi

#1 Warehouse Management System | Axanta ERP

Job Analysis
Staffing, training design, dan evaluasi performa

Proses memperoleh informasi tentang pekerjaan, termasuk tugas yang harus dilakukan pada
pekerja dan karakteristik pribadi yang diperlukan untuk seorang pekerja. Hasil job analisis dapat
berupa penilaian secara numerik kuantitatif / kualitatif.

Tujuan job analysis adalah untuk

• mendapatkan informasi tentang Pekerja secara pribadi,
• mendapatkan informasi terkait dengan persyaratan dari suatu pekerjaan tertentu,
• menentukan karakteristik yang diperlukan untuk mengukur sukses tidaknya kinerja pekerjaan,
• melakukan evaluasi terhadap suatu pekerjaan (Overlapping task, Overload, Underload)
• Dan untuk melakukan impact analysis dari konteks Staffing, Training Design, dan Evaluasi Performa.
 Job Analysis Method
Staffing, training design, dan evaluasi performa

• Melakukan • Metode • Metode ini • Metode ini • Metode ini

Job Performance

Observation

Interviews

Critical Incidents

Structured Questionnaire
evaluasi ini dapat focus secara adalah yang
terhadap memberikan langsung paling mudah.
dilakukan informasi. kepada Namun
kinerja untuk Namun pekerja. umumnya
sangat
umum dan mengama pekerja Bagaimana membutuhkan
umumnya pekerja waktu dan
mudah ti lebih dapat bertindak cost untuk
dilakukan. dalam merasakan pada dinamika mengembangk
Namun tentang adanya pekerjaanya. an
memerlukan pekerja motives dan Namun questionnaire
banyak kecurigaan metode ini yang baik dan
dan yang membutuhkan relevan
proses pekerjaan menyebabkan waktu untuk dengan tujuan
pengembang ya. penyimpangan mendapatkan dilakukanya
an keahlian. terhadap hasil hasil yang Job Analysis
wawancara. objektif
Aplikasi tiap metode Job Analysis
Jobdescrip Development Development Job Training Performacnce Career Parth
Method
tions of Test interviews evaluation design appraisal design Planning design

Job X X X X
performance

Observation X X X

Interviews X X X X X X

Critical X X X X X
incidents
Questionnair
es:
Task
X X X X X X
checklists
Behavior X X X X X
checklists
 Competency Models
• Model kompetensi yang digunakan untuk mengidentifikasi variabel yang terkait dengan organisasi secara
keseluruhan dan mengidentifikasi karakteristik kepribadian yang cocok dengan visi misi organisasi
(misalnya, kepribadian yang Result-Driving, ketekunan, inovasi, fleksibilitas).
Apa perbedaan pemodelan kompetensi dengan Job analisis?
Perbandingan yang ketat menyimpulkan bahwa pendekatan kompetensi biasanya mencakup secara adil
upaya substansial untuk memahami konteks bisnis organisasi dan kompetitif strategi dan untuk membangun
beberapa garis pandang langsung antara individu. Oleh karena itu, seperti yang saat ini dipraktikkan, kompetensi
pemodelan bukanlah pengganti atau pengganti analisis pekerjaan.
Competency Models
Strategi yang berasal dari Visi dan Misi
perusahaan akan menurunkan beberapa target
yang jelas terkait dengan model kompetensi
yang dibutuhkan.
Staffing strategy yang diperlukan, Succession
Planning yang diukur dalam bentuk KPI,
Compensation yang diberikan, Training and
Development untuk pekerja, seta mengukur
performa management.
STRATEGIC WORKFORCE PLANNING
SWP secara luas didefinisikan sebagai sebagai
upaya mengantisipasi tuntutan bisnis dan
lingkungan di masa depan pada sebuah
organisasi, dan untuk menyediakan orang-
orang yang memenuhi syarat untuk memenuhi
bisnis itu dan memuaskan tuntutan itu.
Pandangan umum ini melibatkan beberapa
bidang spesifik yang saling terkait
Talent Inventory
• An organized database of the existing skills, abilities, career interests,
and experience of the current workforce
• Data collection:
• Who should be included in the inventory?
• What specific information must be included for each individual?
• How can this information best be obtained?
• What is the most effective way to record such information?
• How can inventory results be reported to top management?
• How often must this information be updated?
• How can the security of this information be protected?
Talent Inventory
• Information such as the following is typically included in a profile developed for each
employee:
• Current and previous position in the company
• Other significant work experience (e.g., other companies, military)
• Education (including degrees, licenses, certifications)
• Language skills and relevant international experience
• Training and development programs attended
• Community or industry leadership responsibilities
• Current and past performance appraisal data
• Disciplinary actions
• Awards received
• Information provided by individuals may also be included (personal carreer goal,
family, hobbies)
Workforce Forecast
• Purpose: to estimate labor requirements at some future time period
• 2 types of forecast:
• External and internal supply of labor
• Aggregate external and internal demand for labor
• Internal supply forecasts relate to conditions inside the organization (age
distribution of the workforce, terminations, retirements, and new hires
within job classes)
• Internal and external demand forecasts depend primarily on the behavior
of some business factor (projected number of retail outlets, projected
sales, product volume) to which human resource needs can be related
Forecasting External Workforce Supply
• The recruiting and hiring of new employees are essential activities for virtually all firms, at least over
the long run
• Whether due to projected expansion of operations or normal workforce attrition, forays into the labor
market are necessary
• Several agencies regularly make projections of external labor market conditions and estimates of the
supply of labor to be available in general categories
• These include the Bureau of Labor Statistics of the U.S. Department of Labor, the National Science
Foundation, the Department of Education, and the Public Health Service of the Department of Health
and Human Services. For new college and university graduates, the National Association of Colleges
and Employers conducts a quarterly salary survey of starting salary offers to new college graduates at
the bachelor's degree level (www.naceweb. org), and salary offers reflect supply/demand conditions
in the external labor market. Organizations in industries as varied as oil and gas, nuclear power,
digital-media advertising, construction, and heavy-equipment service are finding such projections of
the external labor market to be helpful in preventing surpluses or deficits of employees.54
Forecasting Internal Workforce Supply
• A reasonable starting point for projecting a firm's future supply of labor is its current supply of labor. It's a form of risk management.
Thus, when CNA Financial Corporation analyzed the demographics of the incumbents of various mission-critical jobs, it learned that
85 percent of its risk-control safety engineers, who inspect boilers and other machinery in buildings, were eligible for retirement. The
company wanted to hold on to their specialized skills because they were so important to retaining current business. The forecast
prompted the company to take action to ensure that proiected deficits did not materialize 56
• Perhaps the simplest type of internal-supply forecast is the succession plan, a concept that has been discussed in the planning
literature for decades. Succession plans may be developed for management employees, nonmanagement employees, or both. In fact,
an active succession-planning process is similar to an insurance policy; it should be there when you need it. When there is a crisis of
leadership, for example, after a death or a departure, a robust succession-planning process provides needed assurance.
• In a recent international study by the Society for Human Resource Management Foundation, more than 500 senior executives from a
variety of functional areas were asked to identify the top human-capital challenges that could derail their firms' ability to achieve key,
strategic business objectives in the next 3-5 years. Fully 75 percent of executives from companies both large and small identified
"leadership-succession planning" as their most pressing challenge, followed closely by the need to develop a pipeline of leaders at all
levels.57 As the chapter-opening vignette showed, there are some deep-seated reasons why some firms don't deal with succession
issues: personally, ego, power, and, most importantly, mortality. Assuming that that barriers can be overcome, the actual mechanics
for developing such a plan include steps such as the following: setting a planning horizon, assessing current performance and
readiness for promotion, identifying replacement candidates for each key position, identifying career-development needs, and
integrating the career goals of individuals with company goals. The overall objective, of course, is to ensure the availability of
competent executive talent in the future or, in some cases, immediately.58 In view of its importance, let's examine leadership-
succession further in the next sections.
Forecasting Workforce Demand
• Demand forecasting is beset with multiple uncertainties (changes in
technology, consumer attitudes and patterns of buying behavior,
economies, government regulations that might open new markets or
close off old ones)
• Forecasts of workforce demand are often more subjective than
quantitative
Identifying Pivotal Talent
• Begin the process by identifying pivotal jobs that drive strategy and
revenue, and differentiate your organization in the marketplace
• Segmentation forces you to look at human capital as you would an
inventory of physical assets or a financial portfolio, as a starting point
for a business strategy (Matthew Brush)
Assessing Future Workforce Demand
• It is important to tap into the collective wisdom of managers who are close to the
scene of operations
• Consider asking them questions such as the following: (Hirschman in Cascio 2009)
• What are our key business goals and objectives for the next two years?
• What are the top three priorities we must execute well in order to reach our goals over that
time period?
• What are the most critical workforce issues we currently face?
• What are the 3-5 core capabilities we need to win in our markets?
• What the required knowledge, skills, and abilities needed to execute the strategy?
• What types of positions will be required? What types will no longer be needed?
• Which types of skills should we have internally, versus buy or rent?
• What actions are necessary to align our resources with priorities?
• How will we know if we are effectively executing our workforce plan and staying on track?
How Accurate is Accurate?
• Roughly from a 5 to 35 percent error factor, one study found an overall
30 percent error rate for a one-year forecast (Cappelli, 2008 in Cascio 2009)
• Accuracy in forecasting the demand for labor varies considerably by firm
and by industry type (e.g., utilities versus women's fashions)
• Factors: the duration of the planning period, the quality of the data on
which forecasts are based, the degree of integration of SWP with
strategic business planning
• Accuracy of labor-demand forecast depends on the degree of flexibility
in staffing the workforce  as long as people are geographically mobile,
multi-skilled, and easily hired, there is no need for precise forecasts
Integrating Supply and Demand Forecast
• If forecasts are useful to managers, they must result in an end product
that is understandable and meaningful
Make or Buy?
• To avoid mismatched costs, balance "make" and "buy”.
• Some guidelines for determining when “buying” is more effective
than “making”: (Cappelli, 2008 in Cascio 2009)
• How accurate is your forecast of demand? If not accurate, do more buying
• Do you have the "scale" to develop? If not, do more buying
• Is there a job ladder to pull talent through? If not long, do more buying
• How long will the talent be needed? If not long, do more buying
• Do you want to change culture/direction? If yes, do more buying
Control and Evaluation of SWP Systems
• To guide SWP activities and identifying deviation from the plan and the causes
• Workforce planners should attempt to assess the following: (Walker, 1980 in Cascio 2009)
• The extent to which they are tuned in to workforce problems and opportunities, and the
extent to which their priorities are sound
• The quality of their working relationships with staff specialists and line managers who
supply data and use SWP results. How closely do the planners work with these specialists
and line managers on a day-to-day basis?
• The extent to which decision makers, from line managers who hire employees to top
managers who develop business strategy, are making use of SWP forecasts, action plans,
and recommendations
• The perceived value of SWP among decision makers. Do they view the information
provided by human resource planners as useful to them in their own jobs?
Control and Evaluation of SWP Systems
• Compare the final data to the actual condition: (Dyer and Holder, 1988 in Cascio 2009)
• Actual staffing levels against forecast staffing requirements
• Actual levels of labor productivity against anticipated levels of labor
productivity
• Action programs implemented against action programs planned (Were there
more or fewer? Why?)
• The actual results of the action programs implemented against the expected
results (e.g., improved applicant flows, lower quit rates, improved
replacement ratios)
• Labor and action-program costs against budgets
• Ratios of action-program benefits to action-program costs