Workforce_Planning.ppt

copyright 2010 pearson education, inc. publishing as prentice hall,5-1,human resource management,chapter five workforce planning,framework for the strategic management of employees,job design,copyright 2010 pearson education, inc. publishing as prentice hall,5-3,importance of workforce planning,having the right number of employees with the right skill sets will enable a firm to take advantage of business opportunities operating in excess of staffing requirements is an inefficient use of financial resources a companys effectiveness is directly affected by the quality of workforce planning decisions,copyright 2010 pearson education, inc. publishing as prentice hall,5-4,definition of workforce planning,making sure individuals with the right skills sets are where they need to be at the right time to meet current and future needs labor demand number and types of employees the company needs labor supply current or potential employees to perform jobs labor shortage when demand for labor exceeds available supply labor surplus when supply of labor is greater than demand,copyright 2010 pearson education, inc. publishing as prentice hall,5-5,framework for workforce planning,copyright 2010 pearson education, inc. publishing as prentice hall,5-6,forecasting labor supply & labor demand,internal factors external factors,copyright 2010 pearson education, inc. publishing as prentice hall,5-7,internal factors,(1) turnover: voluntary and involuntary termination of employees loses a talented employee creates stress on co-workers who must pick up the slack adds costs and time demands associated with filling open positions,copyright 2010 pearson education, inc. publishing as prentice hall,5-8,internal factors (contd),(2) employee movements: promotions moving to higher level positions transfers moving to jobs with similar responsibility demotions moving to lower-level positions,copyright 2010 pearson education, inc. publishing as prentice hall,5-9,tracking employee movements,replacement charts identifying potential replacement employees for positions that could open up within the organization succession planning identifying employees who might be viable successors for top managerial positions transition matrix model for tracking movement of employees throughout the organization to plan for the future,copyright 2010 pearson education, inc. publishing as prentice hall,5-10,transition matrix,chapter 5,11,employee movement - transition matrix,chapter 5,12,transition matrix,chapter 5,13,transition matrix,copyright 2010 pearson education, inc. publishing as prentice hall,5-14,internal factors (contd),(3) employee productivity: productivity is the level of a firms output (products or services) relative to inputs (employees, equipment, materials, etc.) productivity ratio the number of employees needed to achieve a certain output level managers can calculate the number of employees needed once they have productivity ratios,copyright 2010 pearson education, inc. publishing as prentice hall,5-15,internal factors (contd),productivity ratio example:,copyright 2010 pearson education, inc. publishing as prentice hall,5-16,internal factors (contd),(4) company performance company performance influences its demand for labor (5) strategic direction company evolution merger and acquisition,copyright 2010 pearson education, inc. publishing as prentice hall,5-17,external factors,local labor market size and composition of the local labor market economic conditions unemployment rate industry trends e.g. retail establishments, actions of competition,chapter 5,18,industry trends,consumer demand,copyright 2010 pearson education, inc. publishing as prentice hall,5-19,tactics for labor shortages,overtime quick solution for short duration but will be costly and may lead to stress, burnout, turnover outsourcing sending work to other companies (payroll, cafeteria, maintenance),copyright 2010 pearson education, inc. publishing as prentice hall,5-20,tactics for labor shortages (contd),(2) outsourcing (contd) contingent labor hiring employees on a temporary or contractual basis numerical flexibility adjusting number of employees quickly to meet seasonal demands functional flexibility modifying composition of workforce by using workers with different knowledge and skills,copyright 2010 pearson education, inc. publishing as prentice hall,5-21,tactics for labor shortages (contd),(3) retention lowering turnover lowers a firms costs of recruiting, selecting, and training new employees employee satisfaction is a key predictor of turnover (4) promotion, transfers, and demotions effective and fast way to deal with labor shortage (5) new hires,copyright 2010 pearson education, inc. publishing as prentice hall,5-22,labor surplus tactics,(1) layoffs quickly reducing the number of workers employed used to quickly adjust the size and composition of the workforce focused on short-term cost containment can produce feelings of job insecurity and lead to lower commitment and higher turnover (2) attrition decision not to fill vacant positions hiring freeze ban on all hiring for a period of time,copyright 2010 pearson education, inc. publishing as prentice hall,5-23,labor surplus tactics (contd),(3) early retirement financial incentive to have employees retire early (can result in mass exodus) (4) promotions, transfers, demotions can move people to other areas of the firm facing shortages,copyright 2010 pearson education, inc. publishing as prentice hall,4-24,workforce planning in practice: meeting challenges,strategy company characteristics culture employee concerns,labor force trends technology globalization ethics & social responsibility,copyright 2010 pearson education, inc. publishing as prentice hall,5-25,strategy & workforce planning,required speed to deal with shortages and surpluses different strategies affect how firms must cope with labor shortages and surpluses companies focused on cost will deal with labor surplus quickly (layoffs) criticality of employee groups strategy affects which employees are most critical to its success example a firm focusing on differentiation strategy depends on developing r&d skills,copyright 2010 pearson education, inc. publishing as prentice hall,5-26,company characteristics & workforce planning,relative impact of labor shortages and surpluses smaller companies will feel a greater impact of shortages or surpluses who carries out workforce planning larger companies use hr department and technology to track labor force smaller companies look to managers and supervisors companies in early development often require managers to “wear many hats”,copyright 2010 pearson education, inc. publishing as prentice hall,5-27,culture & workforce planning,companies loyal to employees may be hesitant to implement layoffs, others are more willing to take drastic measures tactics consistent with culture will strengthen values of company tactics inconsistent with culture may lead to lower employee morale and greater turnover,copyright 2010 pearson education, inc. publishing as prentice hall,5-28,employee concerns & workforce planning,stress and work/life balance layoffs create stress not only on employees who lose jobs but also on families and communities where they live in the time of labor shortages, employees also experience stress due to extra work to make sure additional tasks are performed promotion, transfers, or demotions also create stress,copyright 2010 pearson education, inc. publishing as prentice hall,5-29,employee concerns & workforce planning (contd),perception of procedural and distributive justice it is important that employees understand the rationale behind the decisions (procedural justice) even if employees agree with decision, they may disagree with how the practice is implemented (distributive justice) key is open lines of communication to maximize employee involvement and acceptance,copyright 2010 pearson education, inc. publishing as prentice hall,5-30,labor force trends & workforce planning,availability of internal and external workers stay current on emerging labor force trends that affect company (occupational and demographic trends) many companies are increasingly competing with other companies for limited supply of workers bureau of labor statistics of the u.s. department of labor is good source ,copyright 2010 pearson education, inc. publishing as prentice hall,5-31,labor force trends & workforce planning (contd),selecting tactics to use actively retain employees to prepare for labor shortages modify the nature of the job actively recruit older employees,copyright 2010 pearson education, inc. publishing as prentice hall,5-32,technology & workforce planning,automation machines performing tasks that could otherwise be performed by people technological improvements help companies redesign processes and improve productivity ratios technology also changes types of skills employees need to service customers,copyright 2010 pearson education, inc. publishing as prentice hall,5-33,technology & workforce planning (contd),companies can track skill sets of employees and identify potential matches for jobs replacement charts and succession planning increase a firms ability to identify and track future replacements,copyright 2010 pearson education, inc. publishing as prentice hall,5-34,globalization & workforce planning,labor force trends vary across countries globalization has fueled trend toward offshoring and global opportunities for u.s. workers (it jobs, call centers) offshoring: enables a large labor supply, lower labor cost, and opportunities to operate a firm “24/7” without any downtime includes risks associated with maintaining product and service quality,copyright 2010 pearson education, inc. publishing as prentice hall,5-35,ethics & workforce planning,communities affected by workforce planning decisions have social, political and competitive implications example: labor costs in central europe employers sometimes offer outplacement assistance programs to help employees find new jobs,copyright 2010 pearson education, inc. publishing as prentice hall,5-36,requirements for mass layoffs & plant closings,worker adjustment and retraining notification (warn) act mandates 60 days notice in advance of a plant closing or mass layoff for, companies with 100 or more employees, not counting part-time employees companies with 100 or more employees, including part0time employees who in the aggregate work at least 4,000 hours per week,copyright 2010 pearson education, inc. publishing as prentice hall,5-37,employee vs. independent contractor,independent contracto