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Session 3. 4e - Chapter 5

The document discusses strategic workforce planning. It defines strategic workforce planning as the first component of HRM strategy that involves anticipating future HR requirements based on present capabilities to deploy human capital in line with organizational strategy. The key objectives are to prevent overstaffing/understaffing and ensure the right employees with the right skills are in the right places. Types of planning discussed include aggregate planning to anticipate group staffing needs and succession planning to ensure key positions remain filled. Strategies for managing shortages or surpluses like recruiting, layoffs, or training are also covered.

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60 views12 pages

Session 3. 4e - Chapter 5

The document discusses strategic workforce planning. It defines strategic workforce planning as the first component of HRM strategy that involves anticipating future HR requirements based on present capabilities to deploy human capital in line with organizational strategy. The key objectives are to prevent overstaffing/understaffing and ensure the right employees with the right skills are in the right places. Types of planning discussed include aggregate planning to anticipate group staffing needs and succession planning to ensure key positions remain filled. Strategies for managing shortages or surpluses like recruiting, layoffs, or training are also covered.

Uploaded by

toan_lee
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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STRATEGIC WORKFORCE PLANNING

By Dr. Chau Ly
16 October 2021

Strategic Workforce Planning

 First component of HRM strategy


 All other functional HR activities are derived from &
flow out of HRP process
 Basis in considerations of future HR requirements in
light of present HR capabilities & capacities
 Proactive in anticipating & preparing flexible responses
to changing HR requirements
 Both internal & external focus

1
Strategic Workforce Planning

 Goes beyond simple hiring & firing


 Involves planning for deployment of human capital in
line with organization &/or business unit strategy
 May involve:
 Reassignment
 Training & development
 Outsourcing
 Using temporary help or outside contractors
 Needs as much flexibility as possible

Key Objectives

 Prevent overstaffing & understaffing


 Ensure organization has right employees
with right skills in right places at right
times
 Ensure organization is responsive to
changes in environment
 Provide direction & coherence to all HR
activities & systems
 Unite perspectives of line & staff
managers

2
Types of Planning

 Aggregate Planning
 Anticipating needs for groups of
employees in specific, usually lower
level jobs & general skills employees
will need to ensure sustained high
performance
 Succession Planning
 Focuses on ensuring key critical
management positions in organization
remain filled with individuals who
provide best fit

Aggregate Planning

 Forecasting demand
 Considers firm’s strategic plan’s effects on increases or
decreases in demand for products or services
 Assumptions on which forecast is predicated should be
written down & revisited when conditions change
 Unit forecasting (bottom-up planning) involves “point of
contact” estimation of future demand for employees
 Top-down forecasting involves senior managers allocating
a fixed payroll budget across organizational hierarchy
 Demand for employee skills requirements must also be
considered

3
Aggregate Planning

 Forecasting supply
 The level and quantities of abilities,
skills & experiences can be determined
using Skills Inventory.
 Annually updated human resource
information system (HRIS) is dynamic
source of HR information
 Markov analysis can be used to create
transition probability matrix that
predicts mobility of employees within
organization

4
Strategies for Managing
Shortages
 Recruit new permanent  Work current staff
employees overtime
 Offer incentives to  Subcontract work out
postpone retirement
 Hire temporary
 Rehire retirees part- employees
time
 Redesign job processes
 Attempt to reduce so fewer employees are
turnover needed

Strategies for Managing


Surpluses
 Hiring freezes  Across-the-board pay
cuts
 Do not replace those
who leave  Layoffs
 Offer early retirement  Reduce outsourced work
incentives
 Employee training
 Reduce work hours
 Switch to variable pay
 Voluntary severance plan
leaves of absence
 Expand operations

5
Succession Planning

 Involves identifying key management positions the


organization cannot afford to have vacant
 Purposes of succession planning
 Facilitates transition when employee leaves
 Identifies development needs of high-potential employees
& assists in career planning
 Many organizations fail to implement succession
planning effectively
 Qualified successors may seek external career
advancement opportunities if succession is not
forthcoming

6
Guidelines for Effective Succession
Planning

• Tie into organization’s strategy (and modified accordingly)

• Monitor the progress and measure outcomes of succession


planning initiatives

• Ensure that all HR functions that impact the succession plan


are iterated and working in tandem

• Ensure centralized coordination of succession planning

• Engage and involve managers throughout the organization

7
Reading 5.1
Designing Succession Planning: Lessons from the
Industry Leaders

Typically organization have utilized one of three


approaches to managing diversity

 an assimilation view that downplays differences;


 an access view that focuses on building diversity in
order to gain access to ethnic consumer groups;
 an integrated view that emphasizes uniform
performance standards, personal
 development, openness, acceptance of
constructive conflict, empowerment,
egalitarianism, and a nonbureaucratic structure
that encourages challenges to the status quo

Reading 5.1
Designing Succession Planning: Lessons from the
Industry Leaders

• An integrated approach combined with a culture of inclusiveness are


needed to ensure diverse succession planning.

• Commitment from and direct involvement by the CEO and senior


leadership team are mandatory for diverse succession planning

• Employees should be encouraged to look upward in the organizational


hierarchy to indentify people who are like themselves

• Specific programs which target women and minorities are needed to


bring about change in the status quo as they may not see people like
themselves in positions higher than the one they hold

8
Reading 5.1
Designing Succession Planning: Lessons from the
Industry Leaders

• Cross-race mentoring requires that mentors have skills


related to understanding diversity
• Cross-gender relationships need to be carefully
managed to prevent any perceptions of impropriety
• Organization’s such as Denny’s have made thresholds of
representation of minorities and women in management
a key component of executives’ annual bonuses

Reading 5.2
The Annual HR Strategic Planning Process: Design and
Facilitation Lessons from Corning Incorporated Human
Resources

As part of the planning process, four transformation goals


were developed which guide the organization’s growth
(see Figure 1)

9
Reading 5.2
The Annual HR Strategic Planning Process: Design and Facilitation Lessons from
Corning Incorporated Human Resources

Reading 5.2
The Annual HR Strategic Planning Process: Design and Facilitation Lessons from
Corning Incorporated Human Resources

These goals resulted in a four-step process which gave business unit


generalists comment tools land language for translating strategies into
action steps for talent development and allow consistency and
comparison for prioritization across business lines (see Figure 2)

10
Reading 5.2
The Annual HR Strategic Planning Process: Design and
Facilitation Lessons from Corning Incorporated Human
Resources

Reading 5.2
The Annual HR Strategic Planning Process: Design and
Facilitation Lessons from Corning Incorporated Human
Resources

Corning’s annual strategic planning process for HR


brings together several key components including:
• corporate strategy and the implications of that
strategy for HR
• HR function strategy including the strategic
direction for each of the COEs
• the outputs of the Human Capital Planning process
for each of the business units, which is essentially
the HR implications of each of their business
strategies

(see figure 3)

11
Reading 5.2
The Annual HR Strategic Planning Process: Design and
Facilitation Lessons from Corning Incorporated Human
Resources

12

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