1. PART TWO
EMPLOYMENT Chapters 5-7

2. Chapter 5 Planning for People McGraw-Hill/Irwin
Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.

3. Questions This Chapter Will Help Managers Answer
How can business strategy be integrated with strategic workforce planning?
How might job-design principles and job analysis be useful to the practicing manager?
What is strategic workforce planning, and how should I begin that process?
How can organizations balance “make” versus “buy” decisions with respect to talent?
How should organizations manage leadership succession?

4. Business Strategy – Foundation For All Organizational Decisions
Strategy formulation answers the basic question, “How will we compete?”
Strategy analysis defines the crucial elements for the strategy’s success
In strategy implementation, firms take the necessary actions to implement their strategies
How firms compete with each other and how they attain and sustain competitive advantage is known as strategic management

5. Ensuring Coherence in Strategic Direction
SMART objectives - Specific, Measurable, Appropriate, Realistic, Timely
Business strategy provides an overall direction and focus for the organization as a whole, including for each functional area of the business

6. Human Resource Strategy
A set of priorities a firm uses to align its resources, policies, and programs with its strategic business plan

7. Relationship Of HR Strategy To Business Strategy
High-performance work practices include the following features:
Pushing responsibility down to employees operating in flatter organizations
Increased emphasis on line managers as HR managers
Instilling learning as a priority
Decentralizing decision making to autonomous units and employees
Linking performance measures for employees to financial performance indicators

8. Figure 5–1: The Relationship of HR Strategy to the Broader Strategy of a Business

9. Figure 5-2 Impact of Three Levels of Business Planning on Workforce Planning

10. Questions to Ask in Managing People to Work Efficiently
Who specifies the content of each job?
Who decides how many jobs are necessary?
How are the interrelationships among jobs determined and communicated?
Has anyone looked at the number, design, and content of jobs from the perspective of the entire organization?
What are the minimum qualifications for each job?
What should training programs stress?
How should performance on each job be measured?
How much is each job worth?

11. Job Analysis and Job Design
Job analysis describes the process of obtaining information about jobs
Job design focuses on the processes and outcomes of how work is structured, organized, experienced, and enacted.

12. Scientific Management “One Best Way”
The dominant approach to job design in the industrial society of the 20th century
Frederick W. Taylor was its prophet
Taylor believed that once the best way to perform work was identified, workers should be selected on the basis of their ability to do the job, trained in the standard way to perform the job, and offered monetary incentives to motivate them to do their best
This approach to designing work is fully consistent with a cost-leadership business strategy

13. Job Description and Job Specification
Job description is an overall written summary of task requirements
Job specification is an overall written summary of worker requirements

14. Job Analysis and the Americans with Disabilities Act of 1990
Job analyses are not legally required under the ADA, but professional practice suggests they be done for three reasons:
Applicants must be able to understand what the functions of a job are before they can respond to the question “Can you perform the essential functions of the job for which you are applying?”
Existing job analyses may need to be updated to reflect additional dimensions of jobs
A written job description may result in some candidates self-selecting out

15. Competency Models
Competency models attempt to identify variables related to overall organizational fit and identify personality characteristics consistent with the organization’s vision and mission (e.g., drive for results, persistence, etc.)

16. Methods of Job Analysis
Structured questionnaires
Critical incidents
Observation
Interview
Job performance

17. Categories in the Position Analysis Questionnaire (PAQ)
Information input
Mental processes
Work output
Relationship with other persons
Job context
Other job characteristics

18. Table 5–2: Job Analysis Methods And The Purpose(s) Best Suited To Each

19. Strategic Workforce Planning
An effort to anticipate future business and environmental demands on an organization, and to provide qualified people to fulfill that business and satisfy those demands

20. Figure 5–7: An integrated, strategic workforce planning system

21. Activities That Comprise an SWP System
A talent inventory
A workforce forecast
Action plans
Control and evaluation

22. Workforce Forecasts Forecasting external workforce supply
Agencies regularly make projections of external labor market conditions and estimates of the supply of labor
Organizations find such projections helpful
Forecasting internal workforce supply
The simplest type is the succession plan
The overall objective is to ensure the availability of competent executive talent

23. Leadership-Succession Planning
Five key lessons:
The CEO must drive the talent agenda
Identify and communicate a common set of leadership attributes
Use performance reviews as the building block for assessment, development, and management consensus about performance and potential
Keep to a schedule for performance reviews, broader talent reviews outside one’s functional area, and the identification of talent pools
Link all decisions about talent to the strategy of the organization

24. Forecasting Workforce Demand
Identify pivotal talent
Assess future workforce demand
Accuracy in forecasting the demand for labor varies considerably by firm and by industry type: roughly from 5 to 35 percent error factor

25. Make or Buy?
Guidelines for determining when “buying” is more effective than “making:”
How accurate is your forecast of demand? If not accurate, do more buying
Do you have the “scale” to develop? If not, do more buying
Is there a job ladder to pull talent through? If not long, do more buying
How long will the talent be needed? If not long, do more buying
Do you want to change culture/direction? If yes, do more buying

26. Control And Evaluation of SWP Systems
Quantitative objectives make the control and evaluation process more objective and measure deviations from desired performance more precisely
In newly instituted SWP systems, evaluation is likely to be more qualitative than quantitative, with little emphasis placed on control
The advantage of quantitative information is that it highlights potential problem areas and can provide the basis for constructive discussion of the issues

27. Leadership Succession – A Key Challenge For All Organizations
Key steps to take to avoid a future crisis in leadership succession:
Ensure that the sitting CEO understand the importance of this task and makes it a priority
Focus on an organization’s future needs, not past accomplishments
Encourage differences of opinion
Provide broad exposure
Provide access to the Board

28. Key Terms Discussed in This Chapter
Job analysis
Job design
Job description
Job specification
Competency models
SMART objectives
Business strategy
Competencies
HR strategy
Workforce forecasting
Succession planning
Strategic workforce
planning