1. PLANNING
CHAPTER 3

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

3. 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

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

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

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

7. 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

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

9. 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

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

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

12. 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

13. 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?”

14. 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?

15. “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?”

16. 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

17. 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

18. 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

19. 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

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

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

22. 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

23. 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.