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CHAPTER THREECHAPTER THREE

PlanningPlanning

Screen graphics created by:Jana F. Kuzmicki, PhD

Troy State University-Florida and Western Region

McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved.

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Organization StrategyOrganization Strategy HR and Staffing StrategyHR 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:Measurement, external, internalEmployment:Decision making, final match

OrganizationVision and Mission

Goals and Objectives

Staffing Organizations ModelStaffing Organizations Model

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Chapter OutlineChapter Outline

External Influences Economic Conditions Labor Markets Labor Unions

Human Resource Planning Process and Example Initial Decisions Forecasting HR

Requirements Forecasting HR Availabilities External and Internal

Environmental Scanning Reconciliation and Gaps Action Planning

Staffing Planning Staffing Planning Process Core Workforce Flexible Workforce

Legal Issues AAPs Legality of AAPs Diversity Programs EEO and Temporary

Workers

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Exh. 3.1: Examples of ExternalExh. 3.1: Examples of ExternalInfluences on StaffingInfluences on Staffing

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

Economic Conditions Economic Conditions

Labor demand: Employment patterns, KSAOs sought Labor supply: Labor force, demographic trends, KSAOs available Labor shortages and surpluses Employment arrangements

Labor Markets Labor Markets

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

Labor Unions Labor Unions

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General Economic Conditions,General Economic Conditions,Job Growth, HR Movement ImpactsJob Growth, HR Movement Impacts

HR Movement Impacts

New labor force entrantsCurrent labor forceUnemployedEmployed

PromotionTransferDemotion

New hires Internal labor market Exit

Out of labor forceUnemployedTo new job

General Economic Conditions

Product marketsLabor markets

Inflation

Interest ratesForeign exchange ratesGovernment regulations

Job GrowthPositive = Expansion Neutral = Stagnation

Negative = Contraction

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Labor Markets: Demand for LaborLabor Markets: Demand for Labor

Employment patternsDemand for labor is a derived demandJob growth projectionsEmployment growth projections

KSAOs soughtKSAO requirements

Education levelsManufacturing sector - Survey of skill

deficienciesManagerial skills - Critically required skills

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Labor Markets: Supply of LaborLabor Markets: Supply of Labor

Trends in supply of laborQuantity of labor - Exh. 3.2: Labor Force StatisticsLabor force trends relevant to staffing

Growth KSAOs Demographics Other trends ???

KSAOs availableEducational attainmentLiteracyMotivation

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Labor Markets: Other IssuesLabor Markets: Other Issues

Labor shortages and surpluses“Tight” labor markets

“Loose” labor markets

Employment arrangementsFull-time vs. part-time

Regular or shift work

Alternative employment arrangements Exh. 3.3: Usage of Alternative Employment Arrangements

and Contingent Workers

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Labor UnionsLabor 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”

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Labor Unions: ContractLabor Unions: ContractClauses Affecting StaffingClauses Affecting Staffing

Management rights Jobs and job structure External staffing Internal staffing

Job postingLines of movementSeniority

Grievance procedure Guarantees against discrimination

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What is Human Resource Planning (HRP)?What is Human Resource Planning (HRP)?

Involves activities to

Forecast an organization’s

Labor demand -- Requirements

Internal labor supply -- Availabilities

Compare projections to determine employment gaps

Develop action plans to addressing the gaps

Staffing planning

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Overview: HumanOverview: HumanResource PlanningResource Planning

Process and example

Initial decisions

Forecast HR requirements

Forecast HR availabilities

External and internal environmental scanning

Reconciliation and gaps

Action planning

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Exh. 3.4: The Basic ElementsExh. 3.4: The Basic Elementsof Human Resource Planningof Human Resource Planning

(5) Develop Action Plans

(5) Develop Action PlansCompare

(1) Forecast Labor Requirements

(1) Forecast Labor Requirements

(2) Forecast Labor Availabilities

(2) Forecast Labor Availabilities

(3) Conduct Environmental Scans

(3) Conduct Environmental Scans

(4) Determine Gaps

(4) Determine Gaps

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HRP: Process and ExampleHRP: Process and Example

1. Determine future HR requirements

2. Determine future HR availabilities

3. Conduct external and internal environmental scanning

4. Reconcile requirements and availabilities - determine gaps

5. Develop action plans to close projected gaps Exh. 3.5: Operational Format and Example for

HRP

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HRP: Initial DecisionsHRP: Initial Decisions

Comprehensiveness of planningPlan-based HRPSpecial projects HRPPopulation-based HRP

Planning time frame Job categories and levels Head count - current workforce

Ignores scheduled time worked by each employee relative to a full workweek - FTEs

Ignores vacancies Roles and responsibilities

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HRP: Forecasting HR RequirementsHRP: Forecasting HR Requirements

Statistical techniques

Exh. 3.6: Examples of Statistical Techniques to Forecast HR Requirements

Judgmental techniques

“Top-down” approach

“Bottom-up” approach

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HRP: Forecasting HR AvailabilitiesHRP: Forecasting HR Availabilities

ApproachDetermine head count data for current workforce and

their availability in each job category/level See Exh. 3.5

Statistical techniquesMarkov analysis

Exh. 3.8: Use of Markov Analysis to Forecast Availabilities

Limitations of Markov analysis

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HRP: Forecasting HR Availabilities HRP: Forecasting HR Availabilities (continued)(continued)

Replacement and Succession Planning

Replacement planning

Exh. 3.9(pg.105): Replacement Chart Example

Succession planning

Exh. 3.10 (p. 107): Succession Plan Example

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HRP: External Environmental ScanningHRP: External Environmental Scanning

External scanning involves

Tracking trends and developments in external environment,

Documenting implications for management of human resources, and

Ensuring implications receive attention

Exh. 3.11: Example of Environmental Scan

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HRP: Internal Environmental ScanningHRP: Internal Environmental Scanning

Internal scanning involves Informal discussions with key managersConducting employee attitude surveysMonitoring key indicators

Employee performance Absenteeism Turnover Accidents

Identifying nagging personnel problemsAssessing managerial attitudes regarding HR

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HRP: Reconciliation and GapsHRP: Reconciliation and Gaps

Phase involves

Coming to grips with projected gaps

Likely reasons for gaps

Assessing future implications

Exhibit 3.12: Format and Example for Human Resource Planning (HRP)

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HRP: Action PlanningHRP: Action Planning

Set objectives

Generate alternative activities

Assess alternative activities

Choose alternative activities

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Staffing Planning ProcessStaffing Planning Process

Staffing objectivesQuantitative objectives

Exh. 3.13: Setting Numerical Staffing ObjectivesQualitative objectives

Generate alternative staffing activitiesExh. 3.14: Staffing Alternatives to Deal with

Employee Shortages and Surpluses Assess and choose alternatives

Exh. 3.16: Organizations’ Responses to Staffing Strategies Survey

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Exh. 3.14: Staffing Alternatives to DealExh. 3.14: Staffing Alternatives to Dealwith Employee Shortages and Surpluses with Employee Shortages and Surpluses

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Staffing Planning: Core WorkforceStaffing Planning: Core Workforce

Advantages Disadvantages Staffing philosophy

Internal vs. external staffing Exh. 3.15: Internal vs. External Staffing

EEO / AA practicesApplicant reactions

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Exh. 3.15: Internal vs. External StaffingExh. 3.15: Internal vs. External Staffing

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Staffing Planning: Flexible WorkforceStaffing Planning: Flexible Workforce

Advantages

Disadvantages

Two categories

Temporary employees

Staffing firms

Exh. 3.16: Factors to Consider When Choosing a Staffing Firm

Independent contractors

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Legal IssuesLegal Issues

Affirmative Action Plans (AAPs)

Exh. 3.17: Determining Availability of Minorities and Women

Example of AAP: Essential Components

Affirmative Action Programs Regulations

Legality of AAPs

Guidelines for AAPs

Diversity programs

EEO and temporary workers

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Ethical IssuesEthical Issues

Issue 1Does 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).