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CHAPTER THREE

Planning
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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Staffing Organizations Model

Organization
Vision and Mission Goals and Objectives

Organization Strategy

HR and Staffing Strategy

Staffing Policies and Programs Support Activities Core Staffing Activities

Legal compliance Planning Job analysis Recruitment: Selection:
External, internal

Measurement, external, internal

Employment:

Decision making, final match

Staffing System and Retention Management

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Chapter Outline
 External

Influences

 Staffing
 Core

Planning
Process

 Economic

Conditions  Labor Markets  Labor Unions

 Human

 Staffing Planning

Workforce  Flexible Workforce

 Legal

Resource Planning

Issues

 Process

and Example  Initial Decisions  Forecasting HR Requirements  Forecasting HR Availabilities  External and Internal Environmental Scanning  Reconciliation and Gaps  Action Planning

 AAPs  Legality

of AAPs  Diversity Programs  EEO and Temporary Workers

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Exh. 3.1: Examples of External Influences on Staffing

Economic Conditions
   

Economic expansion and contraction Job growth and 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 and surpluses Employment arrangements

Labor Unions
  

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

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General Economic Conditions, Job Growth, HR Movement Impacts

General Economic Conditions
Product markets Labor markets Inflation Interest rates Foreign exchange rates Government regulations

Job Growth
Positive = Expansion Neutral = Stagnation Negative = Contraction

HR Movement Impacts
New hires
New labor force entrants Current labor force Unemployed Employed

Internal labor market

Promotion Transfer Demotion

Exit
Out of labor force Unemployed To new job

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Labor Markets: Demand for Labor

 Employment
Demand

patterns

for labor is a derived demand Job growth projections Employment growth projections
 KSAOs

sought
requirements sector - Survey of skill

KSAO

 Education levels

Manufacturing

deficiencies Managerial skills - Critically required skills

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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
attainment

 Educational  Literacy  Motivation

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Labor Markets: Other Issues

 Labor

shortages and surpluses

labor markets labor markets

 Tight

 Loose

 Employment
 Full-time  Regular

arrangements

vs. part-time employment arrangements

or shift work

 Alternative
 Exh.

3.4: Usage of Alternative Employment Arrangements and Contingent Workers

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Labor Unions
 Trends

in union membership
of labor force unionized

 Percentage  Private  Public

sector unionization rate

sector unionization rate

 Contract  Impacts

clauses affecting staffing

on staffing
effects

 Spillover

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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

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What is Human Resource Planning (HRP)?

 Involves

activities to
an organizations

 Forecast
 Labor

demand -- Requirements labor supply -- Availabilities

 Internal

 Compare  Develop

projections to determine employment gaps

action plans to addressing the gaps

planning

 Staffing

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Overview: Human Resource Planning

 Process  Initial

and example

decisions HR requirements HR availabilities and internal environmental scanning and gaps

 Forecast  Forecast  External

 Reconciliation  Action

planning

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Exh. 3.4: The Basic Elements of Human Resource Planning

(3) Conduct Environmental Scans (1) Forecast Labor Requirements

Compare

(4) Determine Gaps

(5) Develop Action Plans

(2) Forecast Labor Availabilities

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HRP: 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. 3.6: Operational Format and Example for HRP

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HRP: Initial Decisions



Comprehensiveness of planning
 Plan-based

HRP  Special projects HRP  Population-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 Requirements

 Statistical
 Exh.

techniques

3.6: Examples of Statistical Techniques to Forecast HR Requirements

 Judgmental

techniques
approach

 Top-down

 Bottom-up approach

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HRP: Forecasting HR Availabilities

 Approach
 Determine
 See

head count data for current workforce and their availability in each job category/level
Exh. 3.6

 Statistical
 Markov
 Exh.

techniques
analysis

3.8: Use of Markov Analysis to Forecast Availabilities

 Limitations

of Markov analysis

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HRP: Forecasting HR Availabilities

(continued)
 Replacement

and Succession Planning

planning

 Replacement
 Exh.

3.9: Replacement Chart Example

 Succession
 Exh.

planning

3.10: Succession Plan Example

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HRP: External Environmental Scanning

 External

scanning involves

 Tracking

trends and developments in external environment, implications for management of human

 Documenting

resources, and
 Ensuring
 Exh.

implications receive attention

3.11: Example of Environmental Scan

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HRP: Internal Environmental Scanning

 Internal

scanning involves

 Informal

discussions with key managers  Conducting employee attitude surveys  Monitoring key indicators
 Employee

performance

 Absenteeism  Turnover  Accidents

 Identifying

nagging personnel problems  Assessing managerial attitudes regarding HR

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HRP: Reconciliation and Gaps

 Phase

involves
to grips with projected gaps

 Coming  Likely

reasons for gaps future implications

 Assessing

 Exhibit

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

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HRP: Action Planning

 Set

objectives alternative activities

 Generate

 Assess

alternative activities alternative activities

 Choose

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Staffing Planning Process

 Staffing

objectives
objectives
3.14: Setting Numerical Staffing Objectives

 Quantitative
 Exh.

 Qualitative

objectives

 Generate
 Exh.

alternative staffing activities

3.15: Staffing Alternatives to Deal with Employee Shortages and Surpluses

 Assess
 Exh.

and choose alternatives

3.16: Organizations Responses to Staffing Strategies Survey

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

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Staffing Planning: Core Workforce

Advantages  Disadvantages  Staffing philosophy

 Internal
 Exh.

vs. external staffing

3.17: Internal vs. External Staffing

 EEO

/ AA practices  Applicant reactions



Staffing flows
 Organization
 Exh.

staffing flowchart

3.18: Staffing Flowchart for Medium-Sized Printing Company

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Exh. 3.15: Internal vs. External Staffing

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Staffing Planning: Flexible Workforce

 Advantages  Disadvantages  Two

categories
employees

 Temporary
 Staffing

firms

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

 Independent

contractors

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Legal Issues
 Affirmative
 Exh.

Action Plans (AAPs)

3.20: Example of AAP: Essential Components Action Programs Regulations

 Affirmative

 Legality

of AAPs
for AAPs

 Guidelines

 Diversity  EEO

programs

and temporary workers

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Ethical Issues
 Issue

 Does

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

 Identify

examples of ethical dilemmas an organization might confront when developing an affirmative action plan (AAP).