Human Resource Planning

1. Human Resource Planning

2. Four Phases to HR Planning • “What will we need?” • Determine future HR requirements • “What’s available?” • Determine future HR availabilities • Internally • Externally • Reconcile requirements and availabilities • Anticipate “gaps” • Develop action plans • Control and evaluate

3. HR Planning Process Losses, Internal Moves, Accessions Other HR Activities Forecasted HR Availabilities Current Workforce Action Plans External & Internal Scanning Reconciliation (Gaps) Business Plans Forecasted HR Requirements Staffing Activities Organization Plans

4. Seven strategic staffing decisions: HR Planning Strategy Organization Mission Goals & Objectives Organization Strategy HR Strategy Staffing Strategy Acquire or Develop Talent Staffing as a Lag or Lead System Specific or General Competencies Exceptional or Acceptable Workforce Quality External or Internal Hiring Active or Passive Pursuit of Diversity Core or Flexible Workforce

5. Determining Requirements • Begin with strategic plan • Identify: • Relevant changes in technologies • Plans to restructure the organization • Business needs or changes • Techniques • Statistical • Judgmental

6. Determining Requirements

7. Determining Availabilities: Internal • Inventory current numbers and types of employees available • Anticipate losses through terminations, turnover, etc. • Figure impact of promotions, transfers, recruitment

8. Transition (Markov) Matrix

9. Vacancy Analysis

10. Replacement Chart Mgr. Trng. & Devel. C.D. Smith J.H. Doe: 0 G.M. Jones: 0 C.B. Mills: 2 Qualification Codes for Readiness 0: Ready to move up now 1: Ready in a year 2: Ready in two years Mgr. Mgmt. Devel. J.H. Doe Mgr. Training G.M. Jones Mgr. Exempt Comp. C.B. Mills W.K. Rule: 1 K.A. Dyer: 2 M.W. Field: 0 S.B. Moore: 0 L.S. Wood: 2 L.Q. Brush: 0 H.L. Shaw: 2

11. Determining Availabilities: Internal • Techniques • Statistical • Past employee flow patterns • Transition or Markhov matrices • Judgmental • Executive reviews • Succession planning • Vacancy analysis

12. Determining Availabilities: External • Monitoring of • Major environmental trends • Publications • Media • Consultants • Labor market(s) • College enrollment • BLS and other labor statistics

13. Reconcile • Anticipate, clarify and define “gaps” • Set objectives to satisfy needs • Generate alternatives • Determine action plans • Specific managerial behaviors are identified through decision making • Brainstorming • Delphi technique

14. Long-term Options Short-term Options Action Plan Options Employee Shortage Recalls Hires Permanent In-transfers Retrain Transfer Work Out Increase OT or PT Increase Subcontracts Increase Productivity Buy-back Vac. or Hol. Temporary Assignments Temporary Hires Transfer Work Out

15. Excused Absences Temporary Assignments Train or Retrain Accumulate Surplus Action Plan Options Employee Surplus Long-term Options Short-term Options Freeze Hires Use Attrition Permanent Out-transfers Layoffs Retirement Incentives Retrain Transfer Work In Freeze Hires Use Attrition Reduce OT or PT Transfer Work In Reduce Workweek Temp. Shut-Down or Layoff

16. Control and Evaluate • In new HR plans, qualitative evaluation should assess • Extent to which HR problems and opportunities are correctly assessed • Quality of working relationships with specialists and managers who supply data • Extent to which decision-makers are using the HR plan • Perceived value of the HR plan to the decision-makers

17. Control and Evaluate • In established plans, quantitative evaluation should assess • Actual staffing levels against forecasted requirements • Actual productivity to anticipated productivity • Actual personnel flow against desired rates • Action programs implemented against those planned • Costs relative to the budget • Comparison of benefits to costs

18. STAFFING Recruitment and Selection Human Resource Management

19. Recruitment, Selection and HR • Recruitment and selection are two-way processes that affect each other • Applicants self-select throughout recruitment • Organizations select throughout recruitment • Recruitment goes on throughout evaluation of candidates

20. Recruitment, Selection and HR • Recruitment affects other activities • Selection system effectiveness • Training • Compensation • Employee relations • Affirmative action goals • If incumbents are not qualified, recruiters have to look at different populations • Overqualified employees become bored • Public relations activities

21. Common Recruitment Mistakes • Lack of specificity in job ads • Too many unqualified applicants • Word of mouth recruitment used exclusively • Perpetuates the current workforce • Not communicating accurate information about the job and/or organization • Employees may become dissatisfied and leave

22. Designing Recruitment Programs • Must be integrated into the strategic planning process • Must be carefully done • Potentially qualified candidates may not hear of opening • Treatment candidates receive during recruitment will impact job choices

23. Internal advantages Easier to evaluate applicants Less expensive Faster More familiar with organization; less training Motivational for current employees External advantages New ideas and innovation Reduces some training costs Does not disrupt current organizational chart Usually more rapid accomplishment of affirmative action goals Signal to employees that business is changing Often no viable internal candidate Recruitment Philosophy

24. Recruitment Strategy • Where to recruit • Whom to recruit • How to recruit • When to recruit • Choice of recruiters • Information to communicate

25. Number of jobs filled Number and quality of resumes/applications Acceptance to offer ratio Salary offered Analysis of rejected offers Time in which jobs were filled Cost per hire Cost of operations Affirmative action goals met Quality of new employee performance Determination of most effective methods Recruitment Evaluation

26. Reliability Over time Across different samples of items Across different raters or judges Validity Job-relatedness “Content Validity:” Content of test is representative of job content “Criterion-related Validity:” Strength of predictive relationship between selection test and job performance Measurement Issues in Selection

27. Measurement Issues in Selection

28. What is a “Test?” • EEOC Uniform Guidelines • A “test” is anything that has an impact on the terms and conditions of employment • Application blank? • Interview? • Performance appraisal? • Training programs?

29. Steps in Developing Selection Tests Systematic processes that define job (work) content Job analysis Elements of work that are organized around one unique purpose Tasks Knowledge, skills, abilities & other characteristics KSAOs Anything having an effect on the terms & conditions of employment Test

30. Steps in Developing Selection Tests Job analysis Tests that measure ability on the task: Job content valid tests Tasks Examples: Word processing tests “Ten-key” tests Role plays of tasks Driving tests Work samples tests

31. Steps in Developing Selection Tests Examples: Intelligence tests Personality tests Aptitude tests Ability tests Job analysis Tasks Tests that measure the underlying KSAO which the task requires KSAOs

32. Screening and Selection Methods • Drug testing • Integrity tests • Mental ability tests • Objective personality and interest • Employment interviews • Work sample tests

33. Choosing the Right Predictor • Depends on • The nature of the job • Established validity of the predictor • Selection ratio (ratio of hires to applicants) • Cost of the predictor • Adverse impact caused by the predictor