MHR 5- 1

Human Resource Planning (adapted from Gomez et al., 1998, p. 144)

Service and ProductDemand

EmployeeProductivity

OrganizatioanlLabor Market

ExternalLabor Market

Labor Demand Labor Supply

Conditions and Select ResponsesConditions and Select ResponsesScenario 1: Labor Demand Exceeds Labor Supply

•Training or retraining•Promotion from within•Recruitment from outside•Use of part-timers or temporary workers

Scenario 2: . Labor Supply Exceeds Labor Demand•Pay cuts•Reduced hours•Voluntary early retirements•Inducements to quit (for example, severance pay)

•Succession planning•Subcontracting•Use of overtime

•Layoffs •Work Sharing

Scenario 3: Labor Demand Equals Labor Supply•Replacement of quits from inside or outside•Internal transfers and redeployment

Traditional HRM Models• Industrial Model

– detailed workplace rules and procedures– narrow, rigid job definitions– broad management discretion

• constrained only by CLAs

– job controlled unionism– seniority rules– no job security

• but provisions for seniority

• Salaried Model– less rigid rules and terms of employment– broadly defined jobs– greater job security– white collar – usually seen as non-union– less emphasis on seniority and more on merit– no job security

Factors driving new HRM• Changing environment

– competition and cost pressure• globalization, freer trade agreements, brain drain

– technology– work organization

• teams

– labour force changes • demographics and diversity

– legislation and regulation– economy

• no longer stable, mass production economy

New HRM Models

• Low Labour Cost Strategy– Canadian labour costs relatively high

• emphasis on global cost competition

– reduce costs by:• layoff

• part-time and contingent workers

High Performance Strategy

• High Performance Strategy– differentiation strategy

• win markets by:– product innovation, quality, service, specialization

– Requires:• employee involvement / empowerment• employee commitment• organizational commitment

– Can be compensation or participation based

Comparisons

Traditional Participative Compensation

Themes Taylorism Broad Job Design, teams

Varied Compensation

Participation Limited High varies

HR Link to Org Strategy

Low High varies

Investment in Employees

Low High Varies-use of career ladders

Compensation Straight May use incentives High use of incentives

Goals Low cost High value product

Elements of High Performance Workplace-Participation Based

• Flexible work

• Commitment to training

• Employee involvement and participation

• Sharing of benefits, risks, information

• Improved work processes to reduce stress and improve health

• Family-friendly policies