1. HA 7712: Human Resource Management Professor Sturman, Spring 2010 Human Resource Planning February 23, 2010

2. HA 7712: Human Resource ManagementProfessor Sturman, Spring 2010 HR Strategy and Mission How is HR going to support the organization’s goals?  HR Mission  HR Strategic Plan Develop specific, measurable goals Assess needs Assess environment

3. HA 7712: Human Resource ManagementProfessor Sturman, Spring 2010 Human Resource Planning Definition: An effort to anticipate future business and environmental demands on the organization, and to provide qualified people to fulfill that business and satisfy those demands Entails: Setting human resource objectives Forecasting capabilities Identifying the strategies to achieve those objectives Evaluating implementation

4. HA 7712: Human Resource ManagementProfessor Sturman, Spring 2010 The Planning Process Where are we now? Where do we want to be? How do we get from here to there? How did we do? Where are we now?

5. HA 7712: Human Resource ManagementProfessor Sturman, Spring 2010 Where Are We Now? Your Intellectual Capital Human Capital Organizational Capital Social Capital Employee and customer surveys Talk to your managers Policies and Procedures

6. HA 7712: Human Resource ManagementProfessor Sturman, Spring 2010 Organizational Objectives (Strategic Business Plan) Human Resource Requirements Human Resource Programs Feasibility Analysis Where Do We Want to Be?

7. HA 7712: Human Resource ManagementProfessor Sturman, Spring 2010 How Do We Get There? THE MAJOR LEVERS OF HR Staffing Training Compensation Be proactive Multiple ways to get the same result Many more ways to mess it all up

8. HA 7712: Human Resource ManagementProfessor Sturman, Spring 2010 How Did We Do? Continually reevaluate Are you achieving your HR goals? Are you achieving your business goals? What could work better?

9. HA 7712: Human Resource ManagementProfessor Sturman, Spring 2010 HR as Supply Chain Supply chain The system of organizations, people, activities, information, and resources involved in moving a product or service from supplier to customer. Transforms raw materials to finished product that is delivered to the customer Supply chain management Goal is to fulfill customer demands through the most efficient use of resources, including distribution capacity, inventory, and labor Key outcomes are product design and information sharing Key considerations Cost Waste Quality

10. HA 7712: Human Resource ManagementProfessor Sturman, Spring 2010 Raw materials Manufacturing Plant Distribution Center Customers

11. HA 7712: Human Resource ManagementProfessor Sturman, Spring 2010 Labor Force HR Functions Managers, Supervisors, and Service Tasks Customers

12. HA 7712: Human Resource ManagementProfessor Sturman, Spring 2010 How (And How Well) Does Your HR Supply Chain Work? What processes are involved? Cost Waste Quality What processes are your competitive advantage? Outsourcing?

13. HA 7712: Human Resource ManagementProfessor Sturman, Spring 2010 Promoted/ transfer in External Hires Promoted/ Transfer Out Quit/Fired Job Incumbents Forecasting: Single-Job Flow Model

14. HA 7712: Human Resource ManagementProfessor Sturman, Spring 2010 Example 1: Simple Model Housekeepers Number of incumbents: 40 Average turnover: 20% Average promotion rate out: 5% Average promotion rate in: 0% Number needed to hire?

15. HA 7712: Human Resource ManagementProfessor Sturman, Spring 2010 Forecasting: Multi-Job Flow Model External Hires Promoted Quit/Fired Job A: Incumbents External Hires Quit/Fired Job B: Incumbents

16. HA 7712: Human Resource ManagementProfessor Sturman, Spring 2010 Example 2: Fast Food Employees Job A: Line employees Number of incumbents: 40 Average turnover: 50% Job B: Shift supervisors Number of incumbents: 5 Average turnover: 20% Year 1: How many hires and promotions? Year 2: The company will start offering late-night drive thru Will require 3 more shift supervisors and 10 new employees Turnover will increase to 60% for line employees and 25% for supervisors How many hires and promotions in year 2?

17. HA 7712: Human Resource ManagementProfessor Sturman, Spring 2010 Forecasting: Modeling Performance Flows Average performance of those promoted in Average performance of new hires Average performance of those promoted out Average performance of leavers Job Incumbents (average change in performance over 1 time period)

18. HA 7712: Human Resource ManagementProfessor Sturman, Spring 2010 Example 3: Sales Employees Number of incumbents New employees: 20 Experienced employees: 80 Average turnover New employees: 50% Experienced employees: 20% Employee performance New employees: $125,000 Experienced employees: $250,000 Question 1: What are sales forecasted to be for the next 3 years? Question 2: What HR program is more valuable? Option 1: Retention program that reduces turnover to 40% and 10% Option 2: Training that increases sales of new employees to $150,000