PLANNING CHAPTER 3

Planning HR Planning is the process of forecasting the organization’s future employment needs and then developing action staffing plans and programs

Constraints Internal External Strategy Government Laws and Regulations Goals Organizational Culture Nature of Task Work Group Composition Leadership Style External Government Laws and Regulations Union Economic Conditions Labor Market/Force

Economic Conditions Economic expansion and contraction Job growth & job opportunities Internal labor market mobility Turnover rates

Labor Markets Labor demand: employment patterns KSAOs sought Labor supply: labor force, demographic trends, KSAOs available Labor shortages & surpluses Employment arrangements

Labor Unions Negotiations Labor contracts: staffing levels, staffing quality, internal movement Grievance systems

Human Resource Planning (Ex. 3.5) 1. Determine future Human Resource requirements 2. Determine future Human Resource availabilities 3. Conducting external and internal environmental scanning 4. Determine gaps 5. Develop action plans to close gaps

Initial Decisions Comprehensiveness of Planning Planning Time Frame Job Categories & Levels Head Count (Current Workforce)- FTEs Roles & Responsibilities

Forecasting HR Requirements Statistical Techniques- Ex. 3.7 Ratio Analysis Regression Analysis Judgmental Techniques (Human Decision Making) Ratio analysis: examine historical ratios assume same ratio in future use ratio to predict future requirements (New product - expect increase in sales Past ratio: 4,000 in sales 1.0 FTE

Forecasting HR Availabilities Existing employees may: stay in same job be promoted transfer be demoted exit

Forecasting HR Availabilities Statistical Techniques Markov Analysis Judgmental Techniques Executive reviews Succession Planning (Ex. 3.10) Vacancy Analysis (Ex. 3.11)

Markov Analysis (Ex. 3.9) Limitations Small samples yield unstable estimates of future availabilities Can’t detect multiple moves during specified time period Job category shouldn’t be too broad (unit of analysis) Doesn’t explain underlying causes among specific employees

Environmental Scanning External Tracking trends & developments in the outside world Conferences Publications Media “What does the labor market look like for geologists over the next 5 years?” Internal Understanding and keeping current on developments within the organization Quality of work life Strategic plans Attitudinal surveys Accident reports Training “Will current employees be available in the next 5 years?”

Gap Reconciliation (Ex. 3.13) Review Current Workforce Determine Gap Requirements - Availabilities = Surplus or (Shortage) Considerations Promotions Transfers Retirements Voluntary Turnover Layoffs When is the gap material?

“What do we do and how? Any contingencies?” Action Planning Staffing Objectives (headcount or qualifications) Generating Alternative Staffing Activities Assessing Alternatives Choosing Alternatives “What do we do and how? Any contingencies?”

Alternative Staffing Activities (Ex. 3.15) Surplus Hiring freeze/attrition Layoffs Transfer Retrain Retirement incentives Reduce work week Reduce part-time and contingency workers Transfer work in Shortage New Hires Recalls Transfer Training/Retrain Overtime Part-time Contingent workers Transfer work out

Workforce Core Workforce: Regular Full-time Part-time (Job Sharing) + Stability, Continuity, Predictability & Qualification Control - Costly, “Lock-in”, Legal Compliance Flexible Workforce: Temporary (agency) or staffing firms (Ex. 3.19) Independent Contractors + Flexibility, Cost effectiveness, Market Abilities, & “Fit” - Qualification Control, Learning Curves, Morale

Staffing Philosophy (Ex. 3.17) INTERNAL Advantages: Positive employee reactions to promotion within Quick method to identify job applicants Less expensive Little orientation time required Disadvantages: No new KSAOs into the organization May perpetuate under representation issues Small labor market to recruit from Employees may require more training time

Staffing Philosophy (Ex. 3.17) EXTERNAL Advantages: Brings employees in with new KSAOs Larger number of minorities to draw from Large Labor market to draw from Employees may require less training time Disadvantages: Negative reaction by internal applicants Time consuming to identify applicants Expensive to search external labor market New Employees require more orientation time

Staffing Flows (Ex. 3.18) Eligible labor force Potential applicant population Applicants Candidates Finalists Offer Receiver New Hires

Affirmative Action Plans (AAPs) (See Ex. 3.20) 1. Quantitative analysis 2. Placement goals 3. Action plans

AA Programs Regulations Organizational profile Job group analysis Availability determination Placement goals Designation of responsibility Identification of problem areas Action-oriented programs Internal audit and reporting

Legality of AAPs The plan should have as its purpose remedying specific past discrimination. There should be definite underutilization of women and/or minorities currently in the organization. Regarding non-minorities/males, the plan should not unsettle their legitimate expectations result in their discharge, and not create an absolute bar to their promotion. The plan should be temporary, and eliminated once aa goals have been achieved. All candidates should be qualified for the positions. The plan should include enforcement mechanisms and a grievance procedure.