Part 2
Support Activities
Chapter 03:
Planning
McGraw-Hill/Irwin
Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.
Staffing Organizations Model
Organization
Mission
Goals and Objectives
Organization Strategy
HR and Staffing Strategy
Staffing Policies and Programs
Support Activities
Core Staffing Activities
Legal compliance
Planning
Recruitment:
Selection:
External, internal
Measurement, external, internal
Job analysis
Employment:
Decision making, final match
Staffing System and Retention Management
3-2
Chapter Outline


External Influences
 Economic Conditions
 Labor Markets
 Technology
 Labor Unions
Human Resource Planning
 Process and Example
 Initial Decisions
 Forecasting HR
Requirements
 Forecasting HR
Availabilities
 Reconciliation and Gaps


Staffing Planning
 Staffing Planning Process
 Core Workforce
 Flexible Workforce
 Outsourcing
Diversity Planning




Demography of the American
Workforce
Business Case for Diversity
Planning for Diversity
Legal Issues
 AAPs
 Legality of AAPs
 EEO and Temporary
Workers
3-3
Learning Objectives for This Chapter
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
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
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Recognize external influences that will shape the planning
process
Understand how strategic plans integrate with staffing plans
Become familiar with statistical and judgmental techniques
for forecasting HR requirements and availabilities
Know the similarities and differences between replacement
and succession planning
Understand the advantages and disadvantages of core
workforce, flexible workforce, and outsourcing strategies for
different groups of employees
Learn how to incorporate diversity into the planning process
Recognize the fundamental components of an affirmative
action plan
3-4
Discussion Questions for This Chapter


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

What are ways that the organization can ensure that KSAO
deficiencies do not occur in its workforce?
What are the types of experiences, especially staffing-related
ones, that an organization will be likely to have if it does not
engage in HR and staffing planning?
Why are decisions about job categories and levels so critical to
the conduct and results of HRP?
What are the advantages and disadvantages of doing succession
planning for all levels of management, instead of just top
management?
What is meant by reconciliation, and why can it be useful as an
input to staffing planning?
What criteria would you suggest using for assessing the staffing
alternatives shown in Exhibit 3.14?
What problems might an organization encounter in creating an
AAP that it might not encounter in regular staffing planning?
3-5
Ex. 3.1: Examples of External
Influences on Staffing
3-6
Labor Markets: Demand for Labor

Employment patterns
Demand for labor is a derived demand
 Job growth projections
 Employment growth projections


KSAOs sought

KSAO requirements

Education levels
Survey of skill deficiencies
 Critically required skills

3-7
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



Educational attainment
Literacy
Motivation
3-8
Labor Markets: Other Issues

Labor shortages and surpluses
“Tight” labor markets
 “Loose” labor markets


Employment arrangements
Full-time vs. part-time
 Regular or shift work
 Alternative employment arrangements


Exh. 3.4: Usage of Alternative Employment
Arrangements and Contingent Workers
3-9
Technology

Reduces demands for some jobs
Replacement for labor
 Makes products or services obsolete


Increases demands for others
Change in market composition
 New product development


Changes in required skills
3-10
Labor Unions

Trends in union membership
Percentage of labor force unionized
 Private sector unionization rate
 Public sector unionization rate

Contract clauses affecting staffing
 Impacts on staffing


“Spillover effects”
3-11
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
3-12
Discussion Questions

What are ways that the organization can
ensure that KSAO deficiencies do not occur in
its workforce?
 What are the types of experiences, especially
staffing-related ones, that an organization will
be likely to have if it does not engage in HR
and staffing planning?
 Why are decisions about job categories and
levels so critical to the conduct and results of
HRP?
3-13
Overview: Human
Resource Planning
Process
and Example
Initial Decisions
Forecasting HR
Requirements
Forecasting HR Availabilities
Reconciliation and Gaps
3-14
Ex. 3.5: The Basic Elements
of Human Resource Planning
3-15
Ex. 3.6: The Basic Elements
of Human Resource Planning
3-16
HRP: Initial Decisions

Strategic planning
Comprehensiveness
 Linkages with larger organizational mission

Planning time frame
 Job categories and levels


What jobs will be covered by a plan?
Head count (current workforce)
 Roles and responsibilities

3-17
HRP: Forecasting HR Requirements

Statistical techniques


Exh. 3.7: Examples of Statistical
Techniques to Forecast HR Requirements
Judgmental techniques
“Top-down” approach
 “Bottom-up” approach

3-18
HRP: Forecasting HR Requirements
3-19
HRP: Forecasting HR Requirements
3-20
HRP: Forecasting HR Requirements
3-21
HRP: Forecasting HR Availabilities

Approach


Determine head count data for current
workforce and their availability in each job
category/level
Statistical techniques
Markov analysis
 Limitations of Markov analysis

3-22
Ex. 3.9 Use of Markov Analysis to
Forecast Availabilities
3-23
Exhibit 3.10 Replacement Chart
3-24
Exhibit 3.11 Succession Plan
3-25
Human Resource Planning

Reconciliation and
Gaps



Coming to grips
with projected gaps
Likely reasons for
gaps
Assessing future
implications

Action Planning




Set objectives
Generate
alternative activities
Assess alternative
activities
Choose alternative
activities
3-26
Ex. 3.12: Operational Format for
Human Resource Planning
3-27
Discussion Questions
What are the advantages and
disadvantages of doing succession
planning for all levels of management,
instead of just top management?
 What is meant by reconciliation, and why
can it be useful as an input to staffing
planning?

3-28
Staffing Planning Process

Staffing objectives
Quantitative objectives
 Qualitative objectives


Generate alternative staffing activities

Staffing alternatives to deal with employee
shortages and surpluses
3-29
Ex. 3.14 Staffing Alternatives to Deal With
Employee Shortages
3-30
Ex. 3.14 Staffing Alternatives to Deal With
Employee Surpluses
3-31
Discussion Questions

What criteria would you suggest using
for assessing the staffing alternatives
shown in Exhibit 3.14?
3-32
Exhibit 3.15 Internal Versus External Staffing
3-33
Staffing Planning: Flexible
Workforce
Advantages
 Disadvantages
 Two categories


Temporary employees

Staffing firms


Exh. 3.16: Factors to Consider When Choosing a
Staffing Firm
Independent contractors
3-34
Staffing Planning: Outsourcing
Advantages
 Disadvantages
 Special issues

Employer concerns regarding working
conditions
 Loss of control over quality
 Offshoring

3-35
Diversity Planning

The American workforce is highly diverse





Women make up ½ the labor force
Immigration
Civil Rights Legislation
Age
Business case for diversity strategies
Expanded talent pools
 Better understand diverse customer base
 Enhance creativity of teams
 Reduce turnover

3-36
Diversity Planning

Planning for diversity
 Recruiting activities
Selecting schools and colleges to recruit from
 Show commitment to diversity in recruiting
efforts


Selection activities
Eliminate requirements not related to job
performance
 Include objective standards for judging
candidate qualifications

3-37
Legal Issues


Affirmative Action Plans (AAPs)
Guidelines for AAPs







Purpose is remedying past discrimination.
Definite underutilization of women and/or minorities
Should not penalize majority group members
Should be eliminated once goals have been
achieved
All candidates should be qualified
Include organizational enforcement mechanisms
EEO and temporary workers
3-38
Ex. 3.18 Comparing Incumbency to
Availability
3-39
Discussion Questions

What problems might an organization
encounter in creating an AAP that it
might not encounter in regular staffing
planning?
3-40
Ethical Issues

Issue 1


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 2

Identify examples of ethical dilemmas an
organization might confront when developing an
affirmative action plan (AAP).
3-41