Applied Psychology in Human Resource Management seventh edition Cascio & Aguinis PowerPoint Slides developed by Ms. Elizabeth Freeman University of South Carolina Upstate Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Chapter 10 Strategic Workforce Planning Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

What is Strategic Workforce Planning? Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Strategic Workforce Planning (WP). Assessment of current. employees Strategic Workforce Planning (WP) Assessment of current employees Plan to find new employees Development of all employees Part of organizational goals Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Why do we need workforce planning? Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

To operate organization efficiently To operate organization profitably To follow EEO requirements To improve diversity management To increase cultural assimilation Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Workforce Plans may include: Talent inventories – existing employees Workforce forecasts - future HR needs Action Plans - reach the HR needs Control & Evaluation – manage & adjust to organizational changes Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Levels of Planning. Strategic. long range in scope Levels of Planning Strategic long range in scope heavy resource commitment repetitive rather than fixed Operational day-to-day plan receptive but resistant Tactical may be forced by outside changes may be result of strategic changes Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Workforce plans follow business plans and may be:. Strategic Workforce plans follow business plans and may be: Strategic long range in scope resource commitments repetitive rather than fixed Operational day-to-day plan receptive but resistant Tactical may be forced by outside changes may be result of strategic change Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

What about the business plans? Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Business Plans (Strategic & Workforce) Strategies are competition plans Plans are ways to manage the future Plans lead to: More successful outcomes Greater sense of control Clarified organizational objectives Improved organizational management Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

What is the planning process? Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Conventional Strategic Planning Process Define company philosophy Formulate statements of identity, purpose, and objectives Evaluate strengths and weaknesses Determine organizational design Develop strategies to achieve objectives Devise implementation programs Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Alternative Strategic Planning Process Values-Based Define basic, fundamental values of the company. Identify management practices/policies that support these values. Determine what company does better than competition. Arrange delivery products or services. Manage the organizational values. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Benefits & Payoffs of Strategic Planning Process Focus on & plan for growth Changes emphasis from cost cutting Cost or Risk of Strategic Planning Process May lock organization into limited vision To reduce this risk, make the process more democratic and flexible Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

How does HR Strategy, the workforce plan, fit in with the Business Strategy? Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

The workforce plan. Focuses on the “people” impacts of The workforce plan Focuses on the “people” impacts of any major changes Must maintain day-to-day operations Must be prepared for future operations Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

The workforce plan strives: to give employees capability opportunity motivation to improve organization Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

The workforce plan supports: high performance practices The workforce plan supports: high performance practices responsibility pushed down give line managers HR responsibility become a learning organization decentralize decision making link performance to financial reward Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

TALENT INVENTORIES Definition: organized database of skills, abilities, career interests, & experience current workforce Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Provide answers to questions Who to include TALENT INVENTORIES Provide answers to questions Who to include What information per person How to collect the information How to record & store information How & to whom to report information How often to update What are security/privacy issues Will information be part of overall HRIS Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

TALENT INVENTORY CONTENTS Current position Previous position(s) Other significant work experience Education, continuing education Languages & international experience Training & Development programs Community or industry leadership Current & past performance appraisals Disciplinary actions Awards received Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Talent Inventories must work within context of supply & demand What the organization has or can develop Where Human Resources need to be added &/or replaced What is availability of external workforce What other pressures does the talent face (consumer behaviors, technologies, general economy) Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

External Workforce Supply Information Bureau of Labor Statistics National Science Foundation Department of Education Public Health Service U. S. Employment Service Local Chambers of Commerce Area Universities, Colleges, Technical Schools Major employers in a given region Professional organizations Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Internal Workforce Supply Information Talent Inventory Department / Division Managers Past HR turnover records Industry growth projections Hiring needs discussions with education institutions Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Internal Workforce Supply Information Management Succession Planning pervasive, accepted, indicates strong management Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Internal Workforce Supply Information GE & IBM procedures used as models Goal - management ready as needed Line supervision maintains HR administers w/in organization Committees review candidates Candidates ranked by committee Career paths directed and encouraged by the committee Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Chief Executive Officer Succession not as common, definitely important Workforce Supply - CEO Chief Executive Officer Succession not as common, definitely important Promote from within, bring in outside talent Follow industry standards for selection or organization’s preferences Repercussions if outsider brought in Repercussions if promote from within Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Workforce Demands Understanding will improve with experience, experimentation, & plan adjustments. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Workforce demands analysis considers: 1. Identifying critical business factor 2. Knowing history of factors relative to existing employees 3. Computing productivity ratios 4. Determining trends 5. Adjusting trends historically and futuristically 6. Projecting trends’ impacts on target hiring time frames Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Critical Business Factors Comments Workforce Demands Critical Business Factors Comments Determine correct predictor for each business Each predictor serves plans, changes Organization staffing methods may be unique to the organization Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Control and Evaluation Monitoring Performance Short-term objectives & evaluations provide changes to Mid-term objectives & evaluations which provide data to Long-term objectives & evaluations which determine the… Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Control and Evaluation Evaluation criteria/costs: Turnover, recruiting, salary, salary-to-profit ratio, benefits Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Control and Evaluation Time Horizons WPs vary per the length of planning period Shorter plans more detailed than longer plans Rules for planning period lengths: Provide adequate time to adjustment Relate WPs to other organizational plans Various HR WPs needed to support each BP Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Responsibility for Workforce Planning Every line manager should participate Every staff manager All business plan participants should review and participate as needed Every level of participant in the organization should participate Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Responsibility for Workforce Planning HR roles to assist line management to plan to facilitate this management through all levels of the organization to act as information channel between line & executive management and with general employee base Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall