PLANNING

CHAPTER 3

Planning

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

Constraints

External Government Laws

and Regulations Union Economic

Conditions Labor Market/Force

Internal Strategy Goals Organizational Culture Nature of Task Work Group

Composition Leadership Style

Economic Conditions

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

Labor Markets

Labor demand: employment patterns KSAOs sought

Labor supply: labor force, demographic trends, KSAOs available

Labor shortages & surpluses Employment arrangements

Labor Unions

Negotiations Labor contracts: staffing levels, staffing

quality, internal movement Grievance systems

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

Initial Decisions

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

Forecasting HR Requirements

Statistical Techniques- Ex. 3.7Statistical Techniques- Ex. 3.7 Ratio Analysis Regression Analysis

Judgmental TechniquesJudgmental Techniques (Human Decision Making)

Forecasting HR Availabilities

Existing Existing employees may: employees may:

stay in same jobstay in same job be promotedbe promoted transfertransfer be demotedbe demoted exitexit

Forecasting HR Availabilities

Statistical TechniquesStatistical Techniques Markov Analysis

Judgmental TechniquesJudgmental Techniques Executive reviews Succession Planning (Ex. 3.10) Vacancy Analysis (Ex. 3.11)

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

Environmental Scanning

ExternalExternal

Tracking trends & developments in the outside world

Conferences Publications Media

““What does the labor market What does the labor market look like for geologists over look like for geologists over the next 5 years?”the next 5 years?”

InternalUnderstanding and keeping current

on developments within the organization

Quality of work life Strategic plans Attitudinal surveys Accident reports Training

““Will current employees be available Will current employees be available in the next 5 years?”in the next 5 years?”

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 When is the gap material?material?

Action Planning

Staffing Objectives (headcount or qualifications)

Generating Alternative Staffing Activities Assessing Alternatives Choosing Alternatives

““What do we do and how? Any What do we do and how? Any contingencies?”contingencies?”

Alternative Staffing Activities (Ex. 3.15)

SurplusSurplus Hiring freeze/attrition Layoffs Transfer Retrain Retirement incentives Reduce work week Reduce part-time and

contingency workers Transfer work in

ShortageShortage New Hires Recalls Transfer Training/Retrain Overtime Part-time Contingent workers Transfer work out

Workforce

Core Workforce:Core Workforce: Regular Full-time Part-time (Job Sharing)

+ Stability, Continuity, Predictability & Qualification Control+ Stability, Continuity, Predictability & Qualification Control

- Costly, “Lock-in”, Legal Compliance- Costly, “Lock-in”, Legal Compliance

Flexible Workforce:Flexible Workforce: Temporary (agency) or staffing firms (Ex. 3.19) Independent Contractors

+ Flexibility, Cost effectiveness, Market Abilities, & “Fit”+ Flexibility, Cost effectiveness, Market Abilities, & “Fit”

- Qualification Control, Learning Curves, Morale - Qualification Control, Learning Curves, Morale

Staffing Philosophy (Ex. 3.17)

INTERNALAdvantages: Positive employee reactions to promotion

withinQuick method to identify job applicantsLess expensiveLittle orientation time required

Disadvantages: No new KSAOs into the organizationMay perpetuate under representation issuesSmall labor market to recruit fromEmployees may require more training time

Staffing Philosophy (Ex. 3.17)

EXTERNALAdvantages: Brings employees in with new KSAOsLarger number of minorities to draw fromLarge Labor market to draw fromEmployees may require less training time

Disadvantages: Negative reaction by internal applicants

Time consuming to identify applicantsExpensive to search external labor marketNew Employees require more orientation time

Staffing Flows (Ex. 3.18)

Eligible labor force Potential applicant

population Applicants Candidates Finalists Offer Receiver New Hires

Affirmative Action Plans (AAPs)(See Ex. 3.20)

1. Quantitative analysis

2. Placement goals

3. Action plans

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

Legality of AAPs

1. The plan should have as its purpose remedying specific past discrimination.

2. There should be definite underutilization of women and/or minorities currently in the organization.

3. 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.

4. The plan should be temporary, and eliminated once aa goals have been achieved.

5. All candidates should be qualified for the positions.6. The plan should include enforcement mechanisms

and a grievance procedure.