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Chapter 3 Planning for Human Resources Learning Objectives n Understand how human resource planning contributes to a firms competitive advantage. n Identify the advantages of integrating human resources planning and strategic planning. n Explain why and how human resource planning activities are conducted. n Describe how HRM practices are developed in response to an HR plan HR Planning Job Analysis Recruitment Selection Workplace Justice Unions Safety & Health International Competence Motivation Work Attitudes Output Retention Legal Compliance Company Image Cost Leadership Product Differentiation Training/Develop. Performance App. Compensation Productivity Imp. HRM and Competitive Advantage Opening Case: Gaining Competitive Advantage at General Motors n Problem: Time spent completing HR transactions hurts employee and HR productivity n Solution: Developing an employee services center website n The website has saved GM time and money by: Costing less than a nickel a minute Freeing employees time, improving speed and quality of their work Improving the productivity of the HR Department Human Resource Planning “process of identifying and responding to organizational needs and charting new policies, systems, and programs that will assure effective human resource management under changing conditions” The Definition of HRP n HRP is the process through which organizational goals, as defined in business plans and mission statements, are translated into staffing-level objectives and integrated personnel programs and policies. It is concerned with the flow of people into, through, and out of an organization. It involves forecasting the need for labor and the supply of labor, then planning the programs necessary to assure that the organization has the right mix of employees and skills when and where they are needed. Employee Flows in an Organization External Recruits Recalls Quits Retirements Deaths Layoffs promotions demotions internal transfers Human Resource Planning getting the right people at the right place at the right time Five Major Objectives of HRP Linking HR Planning Practices to Competitive Advantage Effective HR Planning Employee Movements Into, Within, and Out Of Organization Are Smooth/ Less Disruptive Sound HRM Decision Making Transition Costs Are Minimized Select High- Quality Applicants Retain High- Performing Employees Lower Costs Increased Employee Competence Competitive Advantage Strategic Planning nThrough the strategic planning process, organizations determine where they are going. The process typically consists of the following activities: 1.Determine the organizational mission. 2.Scan the organizational environment. 3.Set strategic goals. 4.Formulate a strategic plan, part of which addresses human resource needs. Strategic Planning nStep 1: Determine the organizational mission Mission statement A declaration of the organizations overall purpose Defines the basic business scope and operations that distinguish the organization from others of a similar nature Answers the questions: n“Why does our organization exist?” n“What unique contributions can it make? Strategic Planning n Step 2: Scan the organizational environment The firms external and internal environments must be scanned to identify threats and opportunities. External environment Challenges posed by political, legal, economic, social, and technological issues Planners must also scan their industry environment. Internal environment Assess the firms strengths and weaknesses in order to form strategic goals that take advantage of strengths The task of gathering information for strategy formulation rests with all managers and employees. Strategic Planning nStep 3: Set strategic goals Specify the desired outcomes that must be reached if the firm is to accomplish its mission Strategic goals should be: Specific Challenging Measurable Strategic Planning nStep 4: Formulate a strategic plan Specifies the courses of action a firm must take in order to meet its strategic goals Formulated by: 1.Translating organizational goals into more narrow functional or departmental goals 2.Devising strategies for meeting these goals HRP and Strategic Planning n Strategic Analysis What human resources are needed and what are available? n Strategic Formulation What is required and necessary in support of human resources? n Strategic Implementation How will the human resources be allocated? Human Resources Planning Strategic Planning Clarify performance expectations and future management methods: values, guiding principles business mission objectives and priorities resource allocations Identify people- related business issues Define HR strategies, objectives, and action plans Implement HR processes, policies and practices Implement processes to achieve desired results: business goals company strengths/weaknesses external opportunities/threats source of competitive advantage Establish the context: business goals company strengths/weaknesses external opportunities/threats source of competitive advantage Strategic Analysis Strategy Formulation Strategy Implementation Human Resource Planning Integrating HRP and Strategic Planning Adapted from: James W. Walker, “Integrating the Human Resource Function with the Business,” Human Resource Planning 14, no. 2 (1996): 5977. Reprinted with permission. Human Resource Planning Model n . Collect Information n A. From the External Environment n 1.Economy-General and Specific Industry n 2. Technology n 3. Competition n 4. Labor Markets n 5. Demographic and Social Trends n 6. Government Regulations Human Resource Planning Model n . Collect Information n B. From Inside the Organization n 1. Strategy n 2. Business Plans n 3. Current Human Resources n 4. Rates of Turnover and Mobility Human Resource Planning Model n .Forecast Demand for Human Resources n A. Short-and Long-Term n B. Aggregate or Individual Positions n . Forecast Supply of Human Resources n A. Internal Supply n B. External Supply Human Resource Planning Model n . Plan and Conduct Needed Programs n A. Increase or Reduce Work Force Size n B. Change Skill Mix n C. Develop Managerial Succession Plans n D. Develop Career Plans n . Feedback on the Planning Process n A. Were the Forecasts Accurate? n B. Did the Programs Meet the Needs? Forecasting Demand for Employees nDefinition nMethods Definition nDemand forecasting: A process used in HRP that entails predicting the number and types of people the organization will need at some future point time. Methods nQuantitative Methods /Managerial judgement /Judgmental methods nQualitative Methods /Statistical approaches Statistical Approaches to Demand Forecasting n Trend analysis n Ratio analysis n Regression analysis When Are Statistical Approaches to Demand Forecasting Appropriate? nStable environment nBusiness factor can be predicted with some accuracy nThe relationship between workforce size and business factor remains constant over time Judgmental Methods of Demand Forecasting n Group brainstorming n Sales force estimates n Delphi Method Supply Forecasting nDefinition nMethods Definition nSupply forecasting:A process used to estimate which organizational positions will be filled at some future point in time. Supply Analysis Markov Analysis Skills Inventories Replacement Charts Staffing Tables Succession Planning Tools of Internal Supply Analysis An Executive Replacement Chart Management Replacement Chart Showing Development Needs of Future Divisional Vice President Markov analysis ( 马可夫分析法)马可夫分析法) nMethod for tracking the pattern of employee movements through various jobs. Hypothetical Markov Analysis for a Retail Company Forecasting Labor Supply Beginning Inventory 125 - Quits 5 - Retirements 2 - Demotions Out 1 Total 117 + Transfers In 3 + Promotions In 2 Forecasted Internal Supply 122 Forecasting Supply of Employees: External Labor Supply nFactors Influencing the External Labor Supply: Demographic changes in the population National and regional economics Education level of the workforce Demand for specific employee skills Population mobility Governmental policies If a shortage of employee is expected n Re-engineer to reduce needs n Attempt to reduce turnover n Work present staff overtime n Postpone retirement n Rehire retired employees part-time n Recruit new full-time employees n Subcontract work to another firm n Hire temporary employees If

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