Chapter 3—Planning for Human Resources - Department of ...

obnoxiouspotpieManagement

Nov 8, 2013 (3 years and 11 months ago)

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Chapter 3

Planning for
Human Resources

Objectives


HR Planning Contributes to an
organization’s competitive advantage


Why & How firms engage in Strategic
Planning


Why & How HR planning activities are
conducted


How HRM practices developed in
response to an HR Plan


Role of HRIS in HRM activities

Gaining Competitive Advantage


Nature of AT&T’s business changed needed to
reexamine many of its HRM practices


Realign staffing practices with its new business
plans


New breed managers


Knowledgeable about the firm’s new products and
services


Manage mergers and acquisitions


Function effectively in an uncertain environment



Gaining Competitive Advantage


Solution

develop a career progression
system


Purpose of system:


Identify management skills required by the
company’s new global business plans


Track skill levels of all managers aspiring to
top management positions

Groom and select individuals for positions
as vacancies developed

Gaining Competitive Advantage


System has the following information
(People File):


Job history


Education


Strengths and Weaknesses


Leadership Development needs


Developmental Plans


Training


Special skills

Gaining Competitive Advantage


What has the system enabled AT&T to do:


Leaderships skills for top mgmt positions


Specific employees qualified to move into a
position


Positions with insufficient numbers of “local
candidates”


Developmental plans for each candidate

Linking HR Planning to Competitive
Advantage


Business environment is rapidly changing


HRM strategies are developed based on internal
and external variables


Human Resource Planning ties human
resource issues to the organization’s
business needs


HR planning

process of identifying and
responding to organizational needs and
charting new policies, systems and
programs that will assure effective HRM
under changing conditions

Linking HR Planning to Competitive
Advantage


Purpose of HR Planning:


Enable organization to anticipate their future
HRM needs


Identify practices that will help them meet
those needs


HR planning is “the thread that ties all other
HR activities and integrates these with the
rest of the organization

Linking HR Planning to Competitive
Advantage


Ford

Mission Statement


“Produce high
quality products at low cost”


Fulfill mission organization needed to
change HRM practices to increase
commitment and motivation of its
employees


Discuss Figure 3
-
1 on page 62

Serving as a Building Block for
Future HRM Practices


Implementation of many HRM practices
discussed in this book require careful HR
planning

(KSAs required)


Discuss Exhibit 3
-
1 page 63


Consequences associated with failure to plan


Forced to respond to events after they occur become
reactive instead of proactive

can’t forecast demand
for employees accurately


Causes stress in current ees due to increased
workloads

HRM Issues & Practices


Strategic Planning ensures organizations
know where they are going


Strategic Planning Activities:


Determine the organizational mission


Scan the organizational environment


Set strategic goals


Formulate a strategic plan, part of which
addresses human resource needs

Strategic Planning Steps


Step I


Development of organizational
mission

(org’s
purpose for existing)


Step 2


Scan the
organizational environment

(both
internally and externally)

Conduct a SWOT analysis


External environment


Political


Social


Legal


Economic


Technological issues

Strategic Planning Steps


Internal


Culture


Structure


Current mission


Past history


Number of layers of management


Span of control of management


Skills of the human resources


Leadership and power


Number of functional areas

Strategic Planning Steps


Obtain environmental information

not only the
CEO by it also rests with management and all
other employees


VPs of functional areas provide input into
decisions regarding new strategic direction for
the firm
(Discuss Figure 3
-
2 page 65


Step 3

Set Strategic Goals


Desired outcomes if org is going to accomplish its
mission


Goals need to be specific, measurable, and achievable


Strategic Planning Steps


Step 4

Formulate a Strategic Plan


Once internal and external are scanned
goals are set and org formulates its
strategic plan


HR Planning



Now we link firm’s HRM practices to its
strategic business needs identified by the
strategic planning process


HR Planning can be both short term and
long term (three or more years)


Identify future needs


Plan for meeting them

Demand Forecasting


Demand forecasting involves predicting the
number and types of people the org will need at
some future point


Statistical approaches


org predicts the needed
workforce size based on certain
business
factors


Statistical approach is used when an org operates in
a stable environment (patient load to predict number
of nurses needed)

explosive growth need more of a
judgmental approach

Demand Forecasting


Trend analysis

most commonly used
statistical method


Demand for future human resources predicted
on past business trends regarding a business
factor (
Discuss Figure 3
-
3 page 67


Ratio Analysis

process of determining
future HR demand by computing exact
ratio between the specific business factor
and the number of ees needed

Demand Forecasting


Ratio Analysis


Student
-
faculty ratio

10,000 students and 500
professors 20:1 faculty student ratio. For every 20
students you have one professor. If enrollment
increases by 1,000 students we would need to hire an
additional 50 faculty


Regression Analysis

similar to both trend and
ratio analyses in that forecasts are based on the
relationship between business factor and
workforce size.


This method is more statistically based

regression
analysis

scatter diagram

Discuss Figure 3
-
2 page 68

Demand Forecasting


Estimating future hr needs;


Supply and demand of each group

25
engineers

five positions becoming vacant

due to turnover and we need to fill three new
jobs

total of 8

Outcomes of HR Planning Process


Oversupply employees:


Smaller workforce

restructuring

due to downsizing


Hiring freezes


Early retirements


Restricted overtime


Job sharing


Pay reductions


Undersupply employees:


Hire additional staff


Fill jobs internally or externally

target protected
groups

older, disabled, foreign
-
origin individuals


Internal recruitment programs with career
development programs


Outcomes of HR Planning Process


Alternatives to additional hiring:


Improve productivity of existing workforce through
additional training


Overtime


Additional shifts


Job reassignments


Temporary workers


Improve retention rates

give candidates a realistic
preview of what their jobs would actually be like


Workers want to feel valued by their org


Orgs need to train managers to be good managers

Outcomes of HR Planning Process


Improve retention by having ees actively
participate in the welfare of the
organization


Workers want recognition for their
contribution

but must be tailored to the
individual needs of the worker


Telecommuting, job sharing, shorter work
weeks (9/80 at Babcock and Wilcox)


Cafeteria style benefits

HRIS


Management can record, store, manipulate, and
communicate information across wide
geographic boundaries with access to many
users


Discuss Exhibit 3
-
4 page 73


Purposes served by an HRIS:


Central repository for information on benefits, HR
policies, and processes


Allow users to compare different benefit packages


Provide managers with instructions on how to
implement 15 different HR practices


Basis for succession planning program


HRIS


Through automation HRIS can reduce
paperwork and cut administrative costs


Organizational members outside HR can
access the data


HRIS on the “NET”

Internet and Intranet


Employee handbook


Benefit info


Training courses

HR Planning

Manager’s Guide


HR Planning is an essential function for all
line managers


Staffing

most important activity


Employee retention

establish good working
relationships with their employees


Need to be effective communicators,
motivators, and effective teachers

How the HR Department Can Help


Now hr professional are included in the
strategic planning process


Now we plan our futures looking at hr
needs on the front end of the strategic
planning process


HR is now a full partner with finance,
operations, and marketing

Developing & Implementing HR
Plans


HR professionals’ plans must be aligned with
changes spurred by the organization’s strategic
plan. Plan interventions:


Greater flexibility in the workforce


Greater rigor in training


Increased responsibilities for management


Increased worker participation


The use of performance incentives

As programs get implemented HR must consider
the corporate culture (pattern of shared values,
mores and behaviors)

Evaluation of HR Plans


Only when the operational plans of the HR
department are evaluated can the
organization know if the HR strategies
were effective
(Discuss Exhibit 3
-
7 page
78)