Part 2
Support Activities
Chapter 3:
Planning
McGraw-Hill/Irwin
Copyright © 2009 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
Job analysis
Recruitment: External, internal
Selection:
External, internal
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
 Action Planning

Staffing Planning
 Staffing Planning Process
 Core Workforce
 Flexible Workforce
 Outsourcing
3-3
Discussion Questions for This Chapter






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?
3-4
Ex. 3.1: Examples of External
Influences on Staffing
3-5
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

3-6
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
3-7
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
3-8
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
3-9
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” – management copy pay,
benefit and staffing practices in unionized
settings
3-10
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
3-11
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?
3-12
Overview: Human
Resource Planning
Process and Example
 Initial Decisions
 Forecasting HR Requirements
 Forecasting HR Availabilities
 Reconciliation and Gaps
 Action Planning

3-13
Ex. 3.5: The Basic Elements
of Human Resource Planning
3-14
Ex. 3.6: The Basic Elements
of Human Resource Planning
3-15
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)- normal
work/full time definition (ex. 48)
 Roles and responsibilities, HR propose,
decision made by line manager

3-16
HRP: Forecasting HR Requirements

Statistical techniques – integrated
workforce planning software
Exh. 3.7: Examples of Statistical
Techniques to Forecast HR Requirements
 Ratio analysis 

Judgmental techniques- use human
decision-making models
“Top-down” approach
 “Bottom-up” approach – planning from lower
level manager
3-17

HRP: Forecasting HR Availabilities

Approach


Determine head count data for current
workforce and their availability in each job
category/level – manager judgment ex. Exh.
3.8
Statistical techniques
Markov analysis
 Limitations of Markov analysis

3-18
HRP: Forecasting HR Availabilities (cont.)
Approach
Managerial judgment exh. 3.6 & 3.8
Either - promotion -upward change job level
within ex. A1 to A2 or between job categories,
ex. A1 to B2, transfer or demotion
 To be reliable manager must be very
knowledge about O buss plans & E buss
plans/preferences

3-19
HRP: Forecasting HR Availabilities (cont.)
Markov analysis
base on the historical patterns of job stability &
movement among employees
Detail – pg. 105
Limitation – size – big at least 20 or more; does
not detect multiple move by employee; job
categories must be broad; cause of movement
– assume each of employee have an equal
probability of movement

3-20
Ex. 3.9 Use of Markov Analysis to
Forecast Availabilities
3-21
HRP: Forecasting HR Availabilities
(continued)

Replacement and Succession Planning –
focus on the identification of individual E –
who will be promoted – focus quality and
quantity, normally in management level

Replacement planning


Exh. 3.10: Replacement Chart Example
Succession planning
Exh. 3.11: Succession Plan Example
Data from HRIS

3-22
Human Resource Planning –
enhance its occurrence

Reconciliation and
Gaps exh. 3.9



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
3-23
Ex. 3.12: Operational Format for
Human Resource Planning
3-24
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?

3-25
Staffing Planning Process

Staffing objectives – base on gaps
requirement & availabilities
Quantitative objectives – head count or FTE
form for each job
 Qualitative objectives


Generate alternative staffing activities

Staffing alternatives to deal with employee
shortages and surpluses
3-26
Ex. 3.14 Staffing Alternatives to Deal With
Employee Shortages
3-27
Ex. 3.14 Staffing Alternatives to Deal With
Employee Surpluses
3-28
Discussion Questions

What criteria would you suggest using
for assessing the staffing alternatives
shown in Exhibit 3.14?
3-29
Exhibit 3.15 Internal Versus External Staffing
3-30
Staffing Planning: Flexible
Workforce
Advantages – pg. 121
 Disadvantages
 Two categories


Temporary employees

Staffing firms


Exh. 3.16: Factors to Consider When Choosing a
Staffing Firm
Independent contractors – contract for
service
3-31
Staffing Planning: Outsourcing drastic
Advantages
 Disadvantages
 Special issues

Employer concerns regarding working
conditions
 Loss of control over quality
 Offshoring

3-32