1. Stages in Human Resource Planning Forecasting –Labor Demand –Labor Supply Goal Setting and Strategic Planning Program Implementation and Evaluation Forecasting –Labor Demand –Labor Supply Goal Setting and Strategic Planning Program Implementation and Evaluation ©a Times Mirror Higher Education Group, Inc., company, 1997 IRWIN

2. Forecasting Stage of Human Resource Planning Determining Labor Demand –derived from product / service demand –external in nature Determining Labor Supply –internal movements caused by transfers, promotions, turnover, retirements,etc. –transitional matrices identify employee movements over time –useful for AA / EEO purposes Determining Labor Surplus or Shortage Determining Labor Demand –derived from product / service demand –external in nature Determining Labor Supply –internal movements caused by transfers, promotions, turnover, retirements,etc. –transitional matrices identify employee movements over time –useful for AA / EEO purposes Determining Labor Surplus or Shortage ©a Times Mirror Higher Education Group, Inc., company, 1997 IRWI N

3. Strategies for Reducing an Expected Labor Surplus ©a Times Mirror Higher Education Group, Inc., company, 1997 IRWI N StrategySpeed Extent of Human Suffering 1. Downsizing 2. Pay reductions 3. Demotions 4. Tranfers 5. Worksharing 6. Retirement 7. Natural attrition 8. Retraining Fast Slow High Moderate Low

4. Strategies for Avoiding an Expected Labor Shortage ©a Times Mirror Higher Education Group, Inc., company, 1997 IRWI N StrategySpeedReversibility 1. Overtime 2. Temporary employees 3. Outsourcing 4. Retrained transfers 5. Turnover reductions 6. New external hires 7. Technological innovations Fast Slow High Moderate Low

5. Reasons for Downsizing Need to reduce labor costs Reduced need for labor due to technology Reduced need for professional staff due to mergers Changes in facility locations Need to reduce labor costs Reduced need for labor due to technology Reduced need for professional staff due to mergers Changes in facility locations ©a Times Mirror Higher Education Group, Inc., company, 1997 IRWI N

6. Reasons for Downsizing NOT Living Up to Expectations Long-term negative effect when improperly managed Loss of valued human assets Survivors become narrow-minded and risk-adverse Long-term negative effect when improperly managed Loss of valued human assets Survivors become narrow-minded and risk-adverse ©a Times Mirror Higher Education Group, Inc., company, 1997 IRWI N

7. Advantages of Employing Temporary Workers Increases organizational flexibility Acts as a source of permanent hires Reduces training and orientation costs Brings objective (outside) perspective to firm Increases organizational flexibility Acts as a source of permanent hires Reduces training and orientation costs Brings objective (outside) perspective to firm ©a Times Mirror Higher Education Group, Inc., company, 1997 IRWI N

8. Disadvantages of Employing Temporary Workers Tension between “temps” and full-timers Outsourcing can have long-term negative consequences Tension between “temps” and full-timers Outsourcing can have long-term negative consequences ©a Times Mirror Higher Education Group, Inc., company, 1997 IRWI N

10. C Particular Salary Level Renewal Model Calculations Internal promotions to salary level Number promoted from salary level Losses from salary level External recruits to salary level change in staffing Requirements for a staffing level = B + C + change in staffing B To meet these needs, recruit from D + E D E