Duchon Ch3 Kleiman

8/14/2019 Duchon Ch3 Kleiman

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Chapter 3Planning for

Human Resources


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Objectives

HR Planning Contributes to anorganizations competitive advantage

Why & How firms engage in Strategic

Planning Why & How HR planning activities are

conducted

How HRM practices developed inresponse to an HR Plan

Role of HRIS in HRM activities


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Gaining Competitive Advantage

Nature of AT&Ts business changed needed toreexamine many of its HRM practices

Realign staffing practices with its new business

plans New breed managers

Knowledgeable about the firms new products andservices

Manage mergers and acquisitions Function effectively in an uncertain environment


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Solutiondevelop a career progression

system

Purpose of system:

Identify management skills required by the

companys new global business plans

Track skill levels of all managers aspiring to top

management positions

Groom and select individuals for

positions as vacancies developed


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System has the following information(People File): Job history

Education Strengths and Weaknesses

Leadership Development needs

Developmental Plans Training

Special skills


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What has the system enabled AT&T to do:

Leaderships skills for top mgmt positions

Specific employees qualified to move into a

position

Positions with insufficient numbers of local

candidates

Developmental plans for each candidate


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Linking HR Planning to Competitive

Advantage Business environment is rapidly changing HRM strategies are developed based on internal

and external variables Human Resource Planning ties human

resource issues to the organizationsbusiness needs

HR planningprocess of identifying andresponding to organizational needs and

charting new policies, systems and programsthat will assure effective HRM underchanging conditions


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Advantage

Purpose of HR Planning:

Enable organization to anticipate their future

HRM needs

Identify practices that will help them meet

those needs

HR planning is the thread that ties all other

HR activities and integrates these with therest of the organization


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Advantage

FordMission Statement Produce high

quality products at low cost

Fulfill mission organization needed to

change HRM practices to increase

commitment and motivation of its

employees

Discuss Figure 3-1 on page 62


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Serving as a Building Block for

Future HRM Practices

Implementation of many HRM practices

discussed in this book require careful HR

planning(KSAs required)

Discuss Exhibit 3-1 page 63 Consequences associated with failure to plan

Forced to respond to events after they occur become

reactive instead of proactivecant forecast demand

for employees accurately

Causes stress in current ees due to increased

workloads


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HRM Issues & Practices

Strategic Planning ensures organizations

know where they are going

Strategic Planning Activities:

Determine the organizational mission

Scan the organizational environment

Set strategic goals

Formulate a strategic plan, part of which

addresses human resource needs


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Strategic Planning Steps

Step I Development of organizational mission (orgs

purpose for existing)

Step 2 Scan the organizational environment (both

internally and externally)Conduct a SWOT analysis

External environment Political

Social

Legal

Economic

Technological issues


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Internal

Culture

Structure

Current mission Past history

Number of layers of management

Span of control of management

Skills of the human resources

Leadership and power

Number of functional areas


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Obtain environmental informationnot only the

CEO by it also rests with management and all other

employees

VPs of functional areas provide input into decisionsregarding new strategic direction for the firm

(Discuss Figure 3-2 page 65

Step 3Set Strategic Goals

Desired outcomes if org is going to accomplish itsmission

Goals need to be specific, measurable, and achievable


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Step 4Formulate a Strategic Plan

Once internal and external are scanned

goals are set and org formulates its

strategic plan


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HR Planning

Now we link firms HRM practices to its

strategic business needs identified by the

strategic planning process

HR Planning can be both short term and

long term (three or more years)

Identify future needs

Plan for meeting them


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Demand Forecasting

Demand forecasting involves predicting the

number and types of people the org will need at

some future point

Statistical approaches org predicts the neededworkforce size based on certain business

factors

Statistical approach is used when an org operates in

a stable environment (patient load to predict numberof nurses needed)explosive growth need more of a

judgmental approach


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Demand Forecasting

Trend analysismost commonly used

statistical method

Demand for future human resources predicted

on past business trends regarding a businessfactor (Discuss Figure 3-3 page 67

Ratio Analysisprocess of determining

future HR demand by computing exactratio between the specific business factor

and the number of ees needed


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Demand Forecasting

Ratio Analysis Student-faculty ratio10,000 students and 500

professors 20:1 faculty student ratio. For every 20students you have one professor. If enrollment

increases by 1,000 students we would need to hire anadditional 50 faculty

Regression Analysissimilar to both trend andratio analyses in that forecasts are based on therelationship between business factor andworkforce size.

This method is more statistically basedregressionanalysisscatter diagramDiscuss Figure 3-2 page 68


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Demand Forecasting

Estimating future hr needs;

Supply and demand of each group25

engineersfive positions becoming vacant

due to turnover and we need to fill three newjobstotal of 8


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Outcomes of HR Planning Process

Oversupply employees: Smaller workforcerestructuringdue to downsizing

Hiring freezes

Early retirements

Restricted overtime

Job sharing Pay reductions

Undersupply employees: Hire additional staff

Fill jobs internally or externallytarget protected groupsolder, disabled, foreign-origin individuals

Internal recruitment programs with career developmentprograms


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Alternatives to additional hiring: Improve productivity of existing workforce through

additional training

Overtime

Additional shifts

Job reassignments

Temporary workers

Improve retention ratesgive candidates a realisticpreview of what their jobs would actually be like

Workers want to feel valued by their org

Orgs need to train managers to be good managers


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Improve retention by having ees activelyparticipate in the welfare of theorganization

Workers want recognition for theircontributionbut must be tailored to theindividual needs of the worker

Telecommuting, job sharing, shorter workweeks (9/80 at Babcock and Wilcox)

Cafeteria style benefits


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HRIS

Management can record, store, manipulate, andcommunicate information across wide geographicboundaries with access to many users

Discuss Exhibit 3-4 page 73

Purposes served by an HRIS: Central repository for information on benefits, HR

policies, and processes

Allow users to compare different benefit packages

Provide managers with instructions on how to implement

15 different HR practices Basis for succession planning program


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HRIS

Through automation HRIS can reduce

paperwork and cut administrative costs

Organizational members outside HR can

access the data

HRIS on the NETInternet and Intranet

Employee handbook

Benefit info

Training courses


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HR PlanningManagers Guide

HR Planning is an essential function for all

line managers

Staffingmost important activity

Employee retentionestablish good working

relationships with their employees

Need to be effective communicators,

motivators, and effective teachers


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How the HR Department Can Help

Now hr professional are included in the

strategic planning process

Now we plan our futures looking at hr

needs on the front end of the strategic

planning process

HR is now a full partner with finance,

operations, and marketing


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Developing & Implementing HR

Plans HR professionals plans must be aligned with

changes spurred by the organizations strategicplan. Plan interventions: Greater flexibility in the workforce

Greater rigor in training

Increased responsibilities for management

Increased worker participation

The use of performance incentives

As programs get implemented HR must considerthe corporate culture (pattern of shared values,mores and behaviors)


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Evaluation of HR Plans

Only when the operational plans of the HR

department are evaluated can the

organization know if the HR strategies

were effective (Discuss Exhibit 3-7 page78)

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Duchon Ch3 Kleiman