Stages in Human Resource Planning

1
Stages inHuman Resource Planning

• Forecasting
• Labor Demand
• Labor Supply
• Goal Setting and Strategic Planning
• Program Implementation and Evaluation

IRWIN

• a Times Mirror Higher Education Group, Inc.,
  company, 1997

2
Forecasting Stage ofHuman Resource Planning

• Determining Labor Demand
• derived from product / service demand
• external in nature
• Determining Labor Supply
• internal movements caused by transfers,
  promotions, turnover, retirements,etc.
• transitional matrices identify employee movements
  over time
• useful for AA / EEO purposes
• Determining Labor Surplus or Shortage

IRWIN

• a Times Mirror Higher Education Group, Inc.,
  company, 1997

3
Strategies for Reducing an Expected Labor
Surplus
Extent of Human Suffering
Strategy
Speed
1. Downsizing 2. Pay reductions 3.
Demotions 4. Tranfers 5. Worksharing 6.
Retirement 7. Natural attrition 8. Retraining
Fast Fast Fast Fast Fast Slow Slow Slow
High High High Moderate Moderate Low Low Lo
w
IRWIN

• a Times Mirror Higher Education Group, Inc.,
  company, 1997

4
Strategies for Avoiding an Expected Labor
Shortage
Strategy
Speed
Reversibility
1. Overtime 2. Temporary employees 3.
Outsourcing 4. Retrained transfers 5. Turnover
reductions 6. New external hires 7.
Technological innovations
Fast Fast Fast Slow Slow Slow Slow
High High High High Moderate Low Low
IRWIN

• a Times Mirror Higher Education Group, Inc.,
  company, 1997

5
Reasons for Downsizing

• Need to reduce labor costs
• Reduced need for labor due to technology
• Reduced need for professional staff due to
  mergers
• Changes in facility locations

IRWIN

• a Times Mirror Higher Education Group, Inc.,
  company, 1997

6
Reasons for Downsizing NOT Living Up to
Expectations

• Long-term negative effect when improperly managed
• Loss of valued human assets
• Survivors become narrow-minded and risk-adverse

IRWIN

• a Times Mirror Higher Education Group, Inc.,
  company, 1997

7
Advantages of Employing Temporary Workers

• Increases organizational flexibility
• Acts as a source of permanent hires
• Reduces training and orientation costs
• Brings objective (outside) perspective to firm

IRWIN

• a Times Mirror Higher Education Group, Inc.,
  company, 1997

8
Disadvantages of Employing Temporary Workers

• Tension between temps and full-timers
• Outsourcing can have long-term negative
  consequences

IRWIN

• a Times Mirror Higher Education Group, Inc.,
  company, 1997

9
(No Transcript)
10
Renewal Model Calculations
Number promoted from salary level
B
Particular Salary Level
C
D
Losses from salary level
External recruits to salary level
change in staffing
E
Internal promotions to salary level
To meet these needs, recruit from D E
Requirements for a staffing level
B C change in staffing