Jeffrey a mello 4e chapter 5 strategic workforce planning

Strategic Workforce Planning Strategic Workforce Planning • Goes beyond simple hiring & firing • Involves planning for deployment of human capital in line with organization &/or busine

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STRATEGIC WORKFORCE PLANNING

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Strategic Workforce Planning

• First component of HRM strategy

• All other functional HR activities are derived from

& flow out of HRP process

• Basis in considerations of future HR requirements

in light of present HR capabilities & capacities

• Proactive in anticipating & preparing flexible

responses to changing HR requirements

• Both internal & external focus

• First component of HRM strategy

• All other functional HR activities are derived from

& flow out of HRP process

• Basis in considerations of future HR requirements

in light of present HR capabilities & capacities

• Proactive in anticipating & preparing flexible

responses to changing HR requirements

• Both internal & external focus

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Strategic Workforce Planning

• Goes beyond simple hiring & firing

• Involves planning for deployment of human

capital in line with organization &/or business unit strategy

• May involve:

– Reassignment

– Training & development

– Outsourcing

– Using temporary help or outside contractors

• Needs as much flexibility as possible

• Goes beyond simple hiring & firing

• Involves planning for deployment of human

capital in line with organization &/or business unit strategy

• May involve:

– Reassignment

– Training & development

– Outsourcing

– Using temporary help or outside contractors

• Needs as much flexibility as possible

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Key Objectives

• Prevent overstaffing & understaffing

• Ensure organization has right employees

with right skills in right places at right times

• Ensure organization is responsive to

changes in environment

• Provide direction & coherence to all HR

activities & systems

• Unite perspectives of line & staff managers

• Prevent overstaffing & understaffing

• Ensure organization has right employees

with right skills in right places at right times

• Ensure organization is responsive to

changes in environment

• Provide direction & coherence to all HR

activities & systems

• Unite perspectives of line & staff managers

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Types of Planning

• Aggregate Planning

– Anticipating needs for groups of employees in

specific, usually lower level jobs & general skills employees will need to ensure sustained high performance

• Succession Planning

– Focuses on ensuring key critical management

positions in organization remain filled with

individuals who provide best fit

• Aggregate Planning

– Anticipating needs for groups of employees in

specific, usually lower level jobs & general skills employees will need to ensure sustained high performance

• Succession Planning

– Focuses on ensuring key critical management

positions in organization remain filled with

individuals who provide best fit

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Aggregate Planning

• Forecasting demand

– Considers firm’s strategic plan’s effects on increases or

decreases in demand for products or services

– Assumptions on which forecast is predicated should be

written down & revisited when conditions change

– Unit forecasting (bottom-up planning) involves “point of

contact” estimation of future demand for employees

– Top-down forecasting involves senior managers allocating a

fixed payroll budget across organizational hierarchy

– Demand for employee skills requirements must also be

considered

• Forecasting demand

– Considers firm’s strategic plan’s effects on increases or

decreases in demand for products or services

– Assumptions on which forecast is predicated should be

written down & revisited when conditions change

– Unit forecasting (bottom-up planning) involves “point of

contact” estimation of future demand for employees

– Top-down forecasting involves senior managers allocating a

fixed payroll budget across organizational hierarchy

– Demand for employee skills requirements must also be

considered

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Aggregate Planning

• Forecasting supply

– The level and quantities of abilities, skills &

experiences can be determined using Skills

Inventory

– Annually updated human resource information

system (HRIS) is dynamic source of HR information

– Markov analysis can be used to create transition

probability matrix that predicts mobility of

employees within organization

• Forecasting supply

– The level and quantities of abilities, skills &

experiences can be determined using Skills

Inventory

– Annually updated human resource information

system (HRIS) is dynamic source of HR information

– Markov analysis can be used to create transition

probability matrix that predicts mobility of

employees within organization

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Strategies for Managing

• Work current staff

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Strategies for Managing Surpluses Strategies for Managing Surpluses

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Succession Planning

• Involves identifying key management positions

the organization cannot afford to have vacant

• Purposes of succession planning

– Facilitates transition when employee leaves

– Identifies development needs of high-potential employees &

assists in career planning

• Many organizations fail to implement succession

planning effectively

– Qualified successors may seek external career

advancement opportunities if succession is not forthcoming

• Involves identifying key management positions

the organization cannot afford to have vacant

• Purposes of succession planning

– Facilitates transition when employee leaves

– Identifies development needs of high-potential employees &

assists in career planning

• Many organizations fail to implement succession

planning effectively

– Qualified successors may seek external career

advancement opportunities if succession is not forthcoming

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Guidelines for Effective Succession

Planning

Guidelines for Effective Succession

Planning

• Tie into organization’s strategy (and modified accordingly)

• Monitor the progress and measure outcomes of succession planning initiatives

• Ensure that all HR functions that impact the succession plan are iterated and working in tandem

• Ensure centralized coordination of succession planning

• Engage and involve managers throughout the organization

• Tie into organization’s strategy (and modified accordingly)

• Monitor the progress and measure outcomes of succession planning initiatives

• Ensure that all HR functions that impact the succession

plan are iterated and working in tandem

• Ensure centralized coordination of succession planning

• Engage and involve managers throughout the organization

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to gain access to ethnic consumer groups;

standards, personal

conflict, empowerment, egalitarianism, and a

nonbureaucratic structure that encourages challenges to the status quo

Typically organization have utilized one of three approaches

to managing diversity

to gain access to ethnic consumer groups;

standards, personal

conflict, empowerment, egalitarianism, and a

nonbureaucratic structure that encourages challenges to the status quo

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• An integrated approach combined with a culture of inclusiveness are

needed to ensure diverse succession planning.

• Commitment from and direct involvement by the CEO and senior

leadership team are mandatory for diverse succession planning

• Employees should be encouraged to look upward in the organizational

hierarchy to indentify people who are like themselves

• Specific programs which target women and minorities are needed to

bring about change in the status quo as they may not see people like themselves in positions higher than the one they hold

• An integrated approach combined with a culture of inclusiveness are

needed to ensure diverse succession planning.

• Commitment from and direct involvement by the CEO and senior

leadership team are mandatory for diverse succession planning

• Employees should be encouraged to look upward in the organizational

hierarchy to indentify people who are like themselves

• Specific programs which target women and minorities are needed to

bring about change in the status quo as they may not see people like themselves in positions higher than the one they hold

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• Cross-race mentoring requires that mentors have

skills related to understanding diversity

• Cross-gender relationships need to be carefully

managed to prevent any perceptions of

impropriety

• Organization’s such as Denny’s have made

thresholds of representation of minorities and

women in management a key component of

executives’ annual bonuses

• Cross-race mentoring requires that mentors have

skills related to understanding diversity

• Cross-gender relationships need to be carefully

managed to prevent any perceptions of

impropriety

• Organization’s such as Denny’s have made

thresholds of representation of minorities and

women in management a key component of

executives’ annual bonuses

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Reading 5.2

The Annual HR Strategic Planning Process: Design and Facilitation

Lessons from Corning Incorporated Human Resources

Reading 5.2

As part of the planning process, four transformation goals were developed which guide the

organization’s growth (see Figure 1)

As part of the planning process, four transformation goals were developed which guide the

organization’s growth (see Figure 1)

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Reading 5.2

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Reading 5.2

These goals resulted in a four-step process which gave

business unit generalists comment tools land

language for translating strategies into action steps for talent development and allow consistency and comparison for prioritization across business lines (see Figure 2)

These goals resulted in a four-step process which gave

business unit generalists comment tools land

language for translating strategies into action steps for talent development and allow consistency and comparison for prioritization across business lines (see Figure 2)

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Reading 5.2

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Reading 5.2

Corning’s annual strategic planning process for HR brings together several key components including:

• corporate strategy and the implications of that strategy for

HR

• HR function strategy including the strategic direction for

each of the COEs

• the outputs of the Human Capital Planning process for

each of the business units, which is essentially the HR

implications of each of their business strategies

(see figure 3)

Corning’s annual strategic planning process for HR brings

together several key components including:

• corporate strategy and the implications of that strategy for

HR

• HR function strategy including the strategic direction for

each of the COEs

• the outputs of the Human Capital Planning process for

each of the business units, which is essentially the HR

implications of each of their business strategies

(see figure 3)

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Reading 5.2

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