Part 2 Support Activities Chapter 3: Planning McGraw-Hill Education Copyright © 2015 by McGraw-Hill Education, All Rights Reserved.

Staffing Organizations Model Mission Goals and Objectives Organization Strategy HR and Staffing Strategy Staffing Policies and Programs Support Activities Core Staffing Activities Legal compliance Recruitment: External, internal Planning Selection: Measurement, external, internal Job analysis Employment: Decision making, final match Staffing System and Retention Management 3-2

Chapter Outline Internal and External Influences Organizational Strategy Organizational Culture Labor Markets Technology Human Resource Planning Process and Example Initial Decisions Forecasting HR Requirements Forecasting HR Availabilities Reconciliation and Gaps Staffing Planning Staffing Planning Process Core Workforce Flexible Workforce Outsourcing Diversity Planning Demography of the American Workforce Business Case for Diversity Planning for Diversity Legal Issues AAPs Legality of AAPs EEO and Temporary Workers

Learning Objectives for This Chapter Recognize external influences that will shape the planning process Understand how strategic plans integrate with staffing plans Become familiar with statistical and judgmental techniques for forecasting HR requirements and availabilities Know the similarities and differences between replacement and succession planning Understand the advantages and disadvantages of core workforce, flexible workforce, and outsourcing strategies for different groups of employees Learn how to incorporate diversity into the planning process Recognize the fundamental components of an affirmative action plan

Discussion Questions for This Chapter 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? 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? What criteria would you suggest using for assessing the staffing alternatives shown in Exhibit 3.14? What problems might an organization encounter in creating an AAP that it might not encounter in regular staffing planning?

Ex. 3.1: Examples of External Influences on Staffing Organizational strategy Current financial and human resources Demand for products and/or services Competitors and partners Financial and marketing goals Organizational culture Expressed vision of executives Degree of hierarchy and bureaucracy Style of communication

Ex. 3.1: Examples of External Influences on Staffing Labor markets Labor demand Labor supply Labor shortages and surpluses Employment arrangements Technology Elimination of jobs Creation of jobs Changes in skill requirements

Exhibit 3.2 Internal Versus External Staffing 3-8

Ex. 3.4: Major Workforce Trends Continuing high cost of healthcare Increased global competition for jobs, markets, and talent Growing complexity of legal compliance Large numbers of baby boomers leaving the workforce at around the same time Economic growth of emerging markets Greater need for cross-cultural understanding

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?

Overview: Human Resource Planning Process and Example Initial Decisions Forecasting HR Requirements Forecasting HR Availabilities Reconciliation and Gaps

Ex. 3.5: The Basic Elements of Human Resource Planning 3-12

Ex. 3.6: The Basic Elements of Human Resource Planning 3-13

HRP: Initial Decisions Strategic planning Linkages with larger organizational mission Comprehensiveness Planning time frame Job categories and levels What jobs will be covered by a plan? Head count (current workforce) Roles and responsibilities

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 Scenario planning Incorporating manager judgment of potential future outcomes into statistical models

HRP: Forecasting HR Requirements

HRP: Forecasting HR Requirements

HRP: Forecasting HR Requirements

HRP: Forecasting HR Availabilities Approach Determine head count data for current workforce and their availability in each job category/level Statistical techniques Markov analysis Limitations of Markov analysis

Ex. 3.9 Use of Markov Analysis to Forecast Availabilities

Exhibit 3.10 Replacement Chart

Exhibit 3.11 Succession Plan

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

Ex. 3.12: Operational Format for Human Resource Planning 3-24

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?

Staffing Planning Process Staffing objectives Quantitative objectives Qualitative objectives Generate alternative staffing activities Staffing alternatives to deal with employee shortages and surpluses

Ex. 3.14 Staffing Alternatives to Deal With Employee Shortages 3-27

Ex. 3.14 Staffing Alternatives to Deal With Employee Surpluses 3-28

Discussion Questions What criteria would you suggest using for assessing the staffing alternatives shown in Exhibit 3.14?

Staffing Planning: Flexible Workforce Advantages Disadvantages Two categories Temporary employees Independent contractors

Exhibit 3.15: Factors to Consider When Choosing a Staffing Firm Agency and its reputation Types of workers Planning and lead time Services: recruiting, selection, training, wages and benefits, supervision Worker effectiveness Cost

Staffing Planning: Outsourcing Advantages Disadvantages Special issues Employer concerns regarding working conditions Loss of control over quality Offshoring

Diversity Planning Business case for diversity strategies The American workforce is highly diverse Women make up ½ the labor force Immigration Civil Rights Legislation Age Business case for diversity strategies Expanded talent pools Better understand diverse customer base Enhance creativity of teams Reduce turnover

Exhibit 3.16: Making the Business Case for Diversity Legal and policy compliance Avoid lawsuits, operational disturbances, and negative press Staffing levels Broader base of candidates, diverse KSAOs, flexibility, and retention Employee attitudes and behavior Engagement, justice, and cooperation Product/service market Increased insight into diverse customers, sensitivity, and community relationships

Diversity Planning Planning for diversity Recruiting activities Selecting schools and colleges to recruit from Show commitment to diversity in recruiting efforts Selection activities Eliminate requirements not related to job performance Include objective standards for judging candidate qualifications

Legal Issues Affirmative Action Plans (AAPs) Guidelines for AAPs Purpose is remedying past discrimination. Definite underutilization of women and/or minorities Should not penalize majority group members Should be eliminated once goals have been achieved All candidates should be qualified Include organizational enforcement mechanisms EEO and temporary workers

Ex. 3.18 Comparing Incumbency to Availability 3-37

Discussion Questions What problems might an organization encounter in creating an AAP that it might not encounter in regular staffing planning?

Ethical Issues Issue 1 Issue 2 Does an organization have any ethical responsibility to share with all of its employees the results of its forecasting of HR requirements and availabilities? Does it have any ethical responsibility not to do this? Issue 2 Identify examples of ethical dilemmas an organization might confront when developing an affirmative action plan (AAP).