duchon ch3 kleiman
TRANSCRIPT
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Chapter 3Planning for
Human Resources
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Objectives
HR Planning Contributes to anorganizations competitive advantage
Why & How firms engage in Strategic
Planning Why & How HR planning activities are
conducted
How HRM practices developed inresponse to an HR Plan
Role of HRIS in HRM activities
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Gaining Competitive Advantage
Nature of AT&Ts business changed needed toreexamine many of its HRM practices
Realign staffing practices with its new business
plans New breed managers
Knowledgeable about the firms new products andservices
Manage mergers and acquisitions Function effectively in an uncertain environment
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Gaining Competitive Advantage
Solutiondevelop a career progression
system
Purpose of system:
Identify management skills required by the
companys new global business plans
Track skill levels of all managers aspiring to top
management positions
Groom and select individuals for
positions as vacancies developed
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Gaining Competitive Advantage
System has the following information(People File): Job history
Education Strengths and Weaknesses
Leadership Development needs
Developmental Plans Training
Special skills
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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
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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 organizationsbusiness needs
HR planningprocess of identifying andresponding to organizational needs and
charting new policies, systems and programsthat will assure effective HRM underchanging conditions
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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 therest of the organization
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Linking HR Planning to Competitive
Advantage
FordMission 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
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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 proactivecant forecast demand
for employees accurately
Causes stress in current ees due to increased
workloads
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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
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Strategic Planning Steps
Step I Development of organizational mission (orgs
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
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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
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Strategic Planning Steps
Obtain environmental informationnot only the
CEO by it also rests with management and all other
employees
VPs of functional areas provide input into decisionsregarding new strategic direction for the firm
(Discuss Figure 3-2 page 65
Step 3Set Strategic Goals
Desired outcomes if org is going to accomplish itsmission
Goals need to be specific, measurable, and achievable
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Strategic Planning Steps
Step 4Formulate a Strategic Plan
Once internal and external are scanned
goals are set and org formulates its
strategic plan
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HR Planning
Now we link firms 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
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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 neededworkforce size based on certain business
factors
Statistical approach is used when an org operates in
a stable environment (patient load to predict numberof nurses needed)explosive growth need more of a
judgmental approach
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Demand Forecasting
Trend analysismost commonly used
statistical method
Demand for future human resources predicted
on past business trends regarding a businessfactor (Discuss Figure 3-3 page 67
Ratio Analysisprocess of determining
future HR demand by computing exactratio between the specific business factor
and the number of ees needed
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Demand Forecasting
Ratio Analysis Student-faculty ratio10,000 students and 500
professors 20:1 faculty student ratio. For every 20students you have one professor. If enrollment
increases by 1,000 students we would need to hire anadditional 50 faculty
Regression Analysissimilar to both trend andratio analyses in that forecasts are based on therelationship between business factor andworkforce size.
This method is more statistically basedregressionanalysisscatter diagramDiscuss Figure 3-2 page 68
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Demand Forecasting
Estimating future hr needs;
Supply and demand of each group25
engineersfive positions becoming vacant
due to turnover and we need to fill three newjobstotal of 8
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Outcomes of HR Planning Process
Oversupply employees: Smaller workforcerestructuringdue to downsizing
Hiring freezes
Early retirements
Restricted overtime
Job sharing Pay reductions
Undersupply employees: Hire additional staff
Fill jobs internally or externallytarget protected groupsolder, disabled, foreign-origin individuals
Internal recruitment programs with career developmentprograms
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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 ratesgive candidates a realisticpreview 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
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Outcomes of HR Planning Process
Improve retention by having ees activelyparticipate in the welfare of theorganization
Workers want recognition for theircontributionbut must be tailored to theindividual needs of the worker
Telecommuting, job sharing, shorter workweeks (9/80 at Babcock and Wilcox)
Cafeteria style benefits
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HRIS
Management can record, store, manipulate, andcommunicate information across wide geographicboundaries 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
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HRIS
Through automation HRIS can reduce
paperwork and cut administrative costs
Organizational members outside HR can
access the data
HRIS on the NETInternet and Intranet
Employee handbook
Benefit info
Training courses
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HR PlanningManagers Guide
HR Planning is an essential function for all
line managers
Staffingmost important activity
Employee retentionestablish good working
relationships with their employees
Need to be effective communicators,
motivators, and effective teachers
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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
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Developing & Implementing HR
Plans HR professionals plans must be aligned with
changes spurred by the organizations strategicplan. 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 considerthe corporate culture (pattern of shared values,mores and behaviors)
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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 page78)