1. Part 2 Support Activities Chapter 3: Planning McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc., All Rights Reserved.

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

3. 3-3 Chapter Outline External Influences Economic Conditions Labor Markets Technology Labor Unions Human Resource Planning Process and Example Initial Decisions Forecasting HR Requirements Forecasting HR Availabilities Reconciliation and Gaps Action Planning Staffing Planning Staffing Planning Process Core Workforce Flexible Workforce Outsourcing

4. 3-4 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?

5. 3-5 Ex. 3.1: Examples of External Influences on Staffing

6. 3-6 Labor Markets: Demand for Labor Employment patterns Demand for labor is a derived demand Job growth projections Employment growth projections KSAOs sought KSAO requirements Education levels Survey of skill deficiencies Critically required skills

7. 3-7 Labor Markets: Supply of Labor Trends in supply of labor Quantity of labor - Exh. 3.2: Labor Force Statistics Labor force trends relevant to staffing Growth KSAOs Demographics Other trends ??? KSAOs available Educational attainment Literacy Motivation

8. 3-8 Labor Markets: Other Issues Labor shortages and surpluses “Tight” labor markets “Loose” labor markets Employment arrangements Full-time vs. part-time Regular or shift work Alternative employment arrangements Exh. 3.4: Usage of Alternative Employment Arrangements and Contingent Workers

9. 3-9 Technology Reduces demands for some jobs Replacement for labor Makes products or services obsolete Increases demands for others Change in market composition New product development Changes in required skills

10. 3-10 Labor Unions Trends in union membership Percentage of labor force unionized Private sector unionization rate Public sector unionization rate Contract clauses affecting staffing Impacts on staffing “Spillover effects” – management copy pay, benefit and staffing practices in unionized settings

11. 3-11 Labor Unions: Contract Clauses Affecting Staffing Management rights Jobs and job structure External staffing Internal staffing Job posting Lines of movement Seniority Grievance procedure Guarantees against discrimination

12. 3-12 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?

13. 3-13 Overview: Human Resource Planning Process and Example Initial Decisions Forecasting HR Requirements Forecasting HR Availabilities Reconciliation and Gaps Action Planning

14. Ex. 3.5: The Basic Elements of Human Resource Planning 3-14

15. Ex. 3.6: The Basic Elements of Human Resource Planning 3-15

16. 3-16 HRP: Initial Decisions Strategic planning Comprehensiveness Linkages with larger organizational mission Planning time frame Job categories and levels What jobs will be covered by a plan? Head count (current workforce)- normal work/full time definition (ex. 48) Roles and responsibilities, HR propose, decision made by line manager

17. 3-17 HRP: Forecasting HR Requirements Statistical techniques – integrated workforce planning software Exh. 3.7: Examples of Statistical Techniques to Forecast HR Requirements Ratio analysis - Judgmental techniques- use human decision-making models “Top-down” approach “Bottom-up” approach – planning from lower level manager

18. 3-18 HRP: Forecasting HR Availabilities Approach Determine head count data for current workforce and their availability in each job category/level – manager judgment ex. Exh. 3.8 Statistical techniques Markov analysis Limitations of Markov analysis

19. 3-19 HRP: Forecasting HR Availabilities (cont.) Approach Managerial judgment exh. 3.6 & 3.8 Either - promotion -upward change job level within ex. A1 to A2 or between job categories, ex. A1 to B2, transfer or demotion To be reliable manager must be very knowledge about O buss plans & E buss plans/preferences

20. 3-20 HRP: Forecasting HR Availabilities (cont.) Markov analysis base on the historical patterns of job stability & movement among employees Detail – pg. 105 Limitation – size – big at least 20 or more; does not detect multiple move by employee; job categories must be broad; cause of movement – assume each of employee have an equal probability of movement

21. 3-21 Ex. 3.9 Use of Markov Analysis to Forecast Availabilities

22. 3-22 HRP: Forecasting HR Availabilities (continued) Replacement and Succession Planning – focus on the identification of individual E – who will be promoted – focus quality and quantity, normally in management level Replacement planning Exh. 3.10: Replacement Chart Example Succession planning Exh. 3.11: Succession Plan Example Data from HRIS

23. 3-23 Human Resource Planning – enhance its occurrence Reconciliation and Gaps exh. 3.9 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

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

25. 3-25 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?

26. 3-26 Staffing Planning Process Staffing objectives – base on gaps requirement & availabilities Quantitative objectives – head count or FTE form for each job Qualitative objectives Generate alternative staffing activities Staffing alternatives to deal with employee shortages and surpluses

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

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

29. 3-29 Discussion Questions What criteria would you suggest using for assessing the staffing alternatives shown in Exhibit 3.14?

30. Exhibit 3.15 Internal Versus External Staffing 3-30

31. 3-31 Staffing Planning: Flexible Workforce Advantages – pg. 121 Disadvantages Two categories Temporary employees Staffing firms Exh. 3.16: Factors to Consider When Choosing a Staffing Firm Independent contractors – contract for service

32. 3-32 Staffing Planning: Outsourcing - drastic Advantages Disadvantages Special issues Employer concerns regarding working conditions Loss of control over quality Offshoring