Stages in
Human Resource Planning
• Forecasting
– Labor Demand
– Labor Supply
• Goal Setting and Strategic Planning
• Program Implementation and Evaluation
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©a Times Mirror Higher Education Group, Inc., company, 1997
Forecasting Stage of
Human Resource Planning
• Determining Labor Demand
– derived from product / service demand
– external in nature
• Determining Labor Supply
– internal movements caused by transfers,
promotions, turnover, retirements,etc.
– transitional matrices identify employee
movements over time
– useful for AA / EEO purposes
• Determining Labor Surplus or Shortage
IRWI
N
©a Times Mirror Higher Education Group, Inc., company, 1997
Strategies for Reducing
an Expected Labor Surplus
Speed
Extent of
Human Suffering
1. Downsizing
Fast
High
2. Pay reductions
Fast
High
3. Demotions
Fast
High
4. Tranfers
Fast
Moderate
5. Worksharing
Fast
Moderate
6. Retirement
Slow
Low
7. Natural attrition
Slow
Low
8. Retraining
Slow
Low
Strategy
IRWI
N
©a Times Mirror Higher Education Group, Inc., company, 1997
Strategies for Avoiding
an Expected Labor Shortage
Strategy
Speed
Reversibility
1. Overtime
Fast
High
2. Temporary employees
Fast
High
3. Outsourcing
Fast
High
4. Retrained transfers
Slow
High
5. Turnover reductions
Slow
Moderate
6. New external hires
Slow
Low
7. Technological
innovations
Slow
Low
IRWI
N
©a Times Mirror Higher Education Group, Inc., company, 1997
Reasons for Downsizing
• Need to reduce labor costs
• Reduced need for labor due to technology
• Reduced need for professional staff due to
mergers
• Changes in facility locations
IRWI
N
©a Times Mirror Higher Education Group, Inc., company, 1997
Reasons for Downsizing
NOT Living Up to Expectations
• Long-term negative effect when
improperly managed
• Loss of valued human assets
• Survivors become narrow-minded and
risk-adverse
IRWI
N
©a Times Mirror Higher Education Group, Inc., company, 1997
Advantages of
Employing Temporary Workers
•
•
•
•
Increases organizational flexibility
Acts as a source of permanent hires
Reduces training and orientation costs
Brings objective (outside) perspective to firm
IRWI
N
©a Times Mirror Higher Education Group, Inc., company, 1997
Disadvantages of
Employing Temporary Workers
• Tension between “temps” and full-timers
• Outsourcing can have long-term negative
consequences
IRWI
N
©a Times Mirror Higher Education Group, Inc., company, 1997
DEMAND
Strategic Planning
SUPPLY
Organizational Supply
Current Staff
Organization Planning
Staffing needed
by level
Management
Development
Key
Staffing
Areas
1. Succession
2. Management
3. Technical
4. Targeted groups
5. Workforce
6. Recruitment
adjustments
-turnover
-retirements
-promotions
Renewal Model Calculations
Number promoted
from salary level
B
External recruits
to salary level
D
Particular
Salary
change
in staffing
Level
C
Losses from
salary level
E
Internal promotions
to salary level
Requirements for a staffing level
=
B + C + change in staffing
To meet these needs,
recruit from D + E