Jeffrey a mello 4e chapter 5 strategic workforce planning

STRATEGIC WORKFORCE PLANNING Strategic Strategic Workforce Workforce Planning Planning •• First Firstcomponent component of of HRM HRM strategy strategy •• All All other other functional functional HR HR activities activities are are derived derivedfrom from & & flow flow out outof of HRP HRPprocess process •• Basis Basis in in considerations considerations of of future future HR HR requirements requirements in in light lightof of present presentHR HR capabilities capabilities & & capacities capacities •• Proactive Proactive in in anticipating anticipating & & preparing preparing flexible flexible responses responses to to changing changing HR HR requirements requirements •• Both Both internal internal & & external external focus focus Strategic Strategic Workforce Workforce Planning Planning •• Goes Goes beyond beyond simple simple hiring hiring & & firing firing •• Involves Involves planning planning for for deployment deployment of of human human capital capital in in line line with with organization organization &/or &/or business business unit unit strategy strategy •• May May involve: involve: –– Reassignment Reassignment –– Training Training&&development development –– Outsourcing Outsourcing –– Using Usingtemporary temporaryhelp helpororoutside outsidecontractors contractors •• Needs Needs as as much much flexibility flexibility as as possible possible Key Key Objectives Objectives •• Prevent Prevent overstaffing overstaffing & & understaffing understaffing •• Ensure Ensure organization organization has has right right employees employees with with right right skills skills in in right right places places at at right right times times •• Ensure Ensure organization organization isis responsive responsive to to changes changes in in environment environment •• Provide Provide direction direction & & coherence coherence to to all all HR HR activities activities & & systems systems •• Unite Unite perspectives perspectives of of line line & & staff staff managers managers Types Types of of Planning Planning •• Aggregate Aggregate Planning Planning –– Anticipating Anticipatingneeds needsfor forgroups groupsofofemployees employeesinin specific, specific,usually usuallylower lowerlevel leveljobs jobs&&general generalskills skills employees employeeswill willneed needtotoensure ensuresustained sustainedhigh high performance performance •• Succession Succession Planning Planning –– Focuses Focuseson onensuring ensuringkey keycritical criticalmanagement management positions positionsininorganization organizationremain remainfilled filledwith with individuals individualswho whoprovide providebest bestfitfit Aggregate Aggregate Planning Planning •• Forecasting Forecastingdemand demand –– Considers Considersfirm’s firm’sstrategic strategicplan’s plan’seffects effectson onincreases increasesoror decreases decreasesinindemand demandfor forproducts productsororservices services –– Assumptions Assumptionson onwhich whichforecast forecastisispredicated predicatedshould shouldbe be written writtendown down&&revisited revisitedwhen whenconditions conditionschange change –– Unit Unitforecasting forecasting(bottom-up (bottom-upplanning) planning)involves involves“point “pointofof contact” contact”estimation estimationofoffuture futuredemand demandfor foremployees employees –– Top-down Top-downforecasting forecastinginvolves involvessenior seniormanagers managersallocating allocatingaa fixed fixedpayroll payrollbudget budgetacross acrossorganizational organizationalhierarchy hierarchy –– Demand Demandfor foremployee employeeskills skillsrequirements requirementsmust mustalso alsobe be considered considered Aggregate Aggregate Planning Planning •• Forecasting Forecasting supply supply –– The Thelevel leveland andquantities quantitiesofofabilities, abilities,skills skills&& experiences experiencescan canbe bedetermined determinedusing usingSkills Skills Inventory Inventory –– Annually Annuallyupdated updatedhuman humanresource resourceinformation information system system(HRIS) (HRIS)isisdynamic dynamicsource sourceofofHR HRinformation information –– Markov Markovanalysis analysiscan canbe beused usedtotocreate createtransition transition probability probabilitymatrix matrixthat thatpredicts predictsmobility mobilityofof employees employeeswithin withinorganization organization Strategies Strategies for for Managing Managing Shortages Shortages •• Recruit Recruit new new permanent permanent employees employees •• Offer Offer incentives incentives to to postpone postpone retirement retirement •• Rehire Rehire retirees retirees partparttime time •• Attempt Attempt to to reduce reduce turnover turnover •• Work Work current current staff staff overtime overtime •• Subcontract Subcontract work work out out •• Hire Hire temporary temporary employees employees •• Redesign Redesign job job processes processes so so fewer fewer employees employees are are needed needed Strategies Strategies for for Managing Managing Surpluses Surpluses •• Hiring Hiringfreezes freezes •• Do Do not notreplace replacethose those who who leave leave •• Offer Offer early early retirement retirement incentives incentives •• Reduce Reduce work work hours hours •• Voluntary Voluntary severance severance leaves leaves of of absence absence •• Across-the-board Across-the-boardpay pay cuts cuts •• Layoffs Layoffs •• Reduce Reduce outsourced outsourced work work •• Employee Employee training training •• Switch Switch to to variable variable pay pay plan plan •• Expand Expandoperations operations Succession Succession Planning Planning •• Involves Involves identifying identifying key key management managementpositions positions the the organization organization cannot cannotafford afford to to have have vacant vacant •• Purposes Purposes of of succession succession planning planning –– Facilitates Facilitatestransition transitionwhen whenemployee employeeleaves leaves –– Identifies Identifiesdevelopment developmentneeds needsofofhigh-potential high-potentialemployees employees&& assists assistsinincareer careerplanning planning •• Many Many organizations organizations fail fail to to implement implementsuccession succession planning planningeffectively effectively –– Qualified Qualifiedsuccessors successorsmay mayseek seekexternal externalcareer career advancement advancementopportunities opportunitiesififsuccession successionisisnot notforthcoming forthcoming Guidelines Guidelines for for Effective Effective Succession Succession Planning Planning •• Tie Tieinto intoorganization’s organization’sstrategy strategy(and (andmodified modifiedaccordingly) accordingly) ••Monitor Monitorthe theprogress progressand andmeasure measureoutcomes outcomesof ofsuccession succession planning planninginitiatives initiatives ••Ensure Ensurethat thatall allHR HRfunctions functionsthat thatimpact impactthe thesuccession succession plan planare areiterated iteratedand andworking workingin intandem tandem ••Ensure Ensurecentralized centralizedcoordination coordinationof ofsuccession successionplanning planning ••Engage Engageand andinvolve involvemanagers managersthroughout throughoutthe theorganization organization Reading Reading5.1 5.1 Designing Designing Succession Succession Planning: Planning: Lessons Lessons from from the the Industry Industry Leaders Leaders Typically Typicallyorganization organizationhave haveutilized utilizedone oneof ofthree threeapproaches approaches to tomanaging managingdiversity diversity •• •• •• •• an anassimilation assimilationview viewthat thatdownplays downplaysdifferences; differences; an anaccess accessview viewthat thatfocuses focuseson onbuilding buildingdiversity diversityin inorder order to togain gainaccess accessto toethnic ethnicconsumer consumergroups; groups; an anintegrated integratedview viewthat thatemphasizes emphasizesuniform uniformperformance performance standards, standards,personal personal development, development,openness, openness,acceptance acceptanceof ofconstructive constructive conflict, conflict,empowerment, empowerment,egalitarianism, egalitarianism,and andaa nonbureaucratic nonbureaucraticstructure structurethat thatencourages encourageschallenges challengesto tothe the status statusquo quo Reading Reading5.1 5.1 Designing Designing Succession Succession Planning: Planning: Lessons Lessons from from the the Industry Industry Leaders Leaders •• An Anintegrated integratedapproach approachcombined combinedwith withaaculture cultureof ofinclusiveness inclusivenessare are needed neededtotoensure ensurediverse diversesuccession successionplanning planning •• Commitment Commitmentfrom fromand anddirect directinvolvement involvementby bythe theCEO CEOand andsenior senior leadership leadershipteam teamare aremandatory mandatoryfor fordiverse diversesuccession successionplanning planning •• Employees Employeesshould shouldbe beencouraged encouragedtotolook lookupward upwardininthe theorganizational organizational hierarchy hierarchytotoindentify indentifypeople peoplewho whoare arelike likethemselves themselves •• Specific Specificprograms programswhich whichtarget targetwomen womenand andminorities minoritiesare areneeded neededtoto bring bringabout aboutchange changeininthe thestatus statusquo quoas asthey theymay maynot notsee seepeople peoplelike like themselves themselvesininpositions positionshigher higherthan thanthe theone onethey theyhold hold Reading Reading5.1 5.1 Designing Designing Succession Succession Planning: Planning: Lessons Lessons from from the the Industry Industry Leaders Leaders •• Cross-race Cross-race mentoring mentoringrequires requires that that mentors mentors have have skills skills related related to to understanding understanding diversity diversity •• Cross-gender Cross-gender relationships relationships need needto to be be carefully carefully managed managedto to prevent preventany any perceptions perceptions of of impropriety impropriety •• Organization’s Organization’s such such as as Denny’s Denny’s have have made made thresholds thresholds of of representation representation of of minorities minorities and and women women in in management managementaa key key component component of of executives’ executives’annual annual bonuses bonuses Reading Reading5.2 5.2 The TheAnnual AnnualHR HRStrategic StrategicPlanning PlanningProcess: Process:Design Designand andFacilitation Facilitation Lessons Lessonsfrom fromCorning CorningIncorporated IncorporatedHuman HumanResources Resources As As part part of of the the planning planningprocess, process, four four transformation transformation goals goals were were developed developed which which guide guide the the organization’s organization’s growth growth (see (see Figure Figure 1) 1) Reading Reading5.2 5.2 The TheAnnual AnnualHR HRStrategic StrategicPlanning PlanningProcess: Process:Design Designand andFacilitation Facilitation Lessons Lessonsfrom fromCorning CorningIncorporated IncorporatedHuman HumanResources Resources Reading Reading5.2 5.2 The TheAnnual AnnualHR HRStrategic StrategicPlanning PlanningProcess: Process:Design Designand andFacilitation Facilitation Lessons Lessonsfrom fromCorning CorningIncorporated IncorporatedHuman HumanResources Resources These These goals goals resulted resulted in in aa four-step four-step process process which which gave gave business business unit unitgeneralists generalistscomment commenttools tools land land language language for for translating translating strategies strategies into into action action steps steps for for talent talentdevelopment developmentand and allow allow consistency consistency and and comparison comparison for for prioritization prioritization across across business business lines lines (see (see Figure Figure2) 2) Reading Reading5.2 5.2 The TheAnnual AnnualHR HRStrategic StrategicPlanning PlanningProcess: Process:Design Designand andFacilitation Facilitation Lessons Lessonsfrom fromCorning CorningIncorporated IncorporatedHuman HumanResources Resources Reading Reading5.2 5.2 The TheAnnual AnnualHR HRStrategic StrategicPlanning PlanningProcess: Process:Design Designand andFacilitation Facilitation Lessons Lessonsfrom fromCorning CorningIncorporated IncorporatedHuman HumanResources Resources Corning’s Corning’sannual annualstrategic strategicplanning planningprocess processfor forHR HRbrings brings together togetherseveral severalkey keycomponents componentsincluding: including: •• corporate corporatestrategy strategyand andthe theimplications implicationsof ofthat thatstrategy strategyfor for HR HR •• HR HRfunction functionstrategy strategyincluding includingthe thestrategic strategicdirection directionfor for each eachof ofthe theCOEs COEs •• the theoutputs outputsof ofthe theHuman HumanCapital CapitalPlanning Planningprocess processfor for each eachof ofthe thebusiness businessunits, units,which whichisisessentially essentiallythe theHR HR implications implicationsof ofeach eachof oftheir theirbusiness businessstrategies strategies (see (seefigure figure3) 3) Reading Reading5.2 5.2 The TheAnnual AnnualHR HRStrategic StrategicPlanning PlanningProcess: Process:Design Designand andFacilitation Facilitation Lessons Lessonsfrom fromCorning CorningIncorporated IncorporatedHuman HumanResources Resources ... external focus focus Strategic Strategic Workforce Workforce Planning Planning •• Goes Goes beyond beyond simple simple hiring hiring & & firing firing •• Involves Involves planning planning for for.. .Strategic Strategic Workforce Workforce Planning Planning •• First Firstcomponent component of of HRM HRM strategy strategy... forecasting(bottom-up (bottom-upplanning) planning) involves involves“point “pointofof contact” contact”estimation estimationofoffuture futuredemand demandfor foremployees employees –– Top-down Top-downforecasting