Strategic Workforce Planning

Strategic Workforce Planning

1. Hr and Top management problems

   • - Finding the specialized and technical talent needed to staff specific programs of planned business expansions. - Finding Seasoned talent to manage new and expanding operations including people with the capability eventually to assume senior management positions. - Developing competent, equitable HR management practices that will ensure compliance with EEO requirements and thus avoid the potentially large settlement costs of discrimination suits. - Devising Alternatives to layoffs or if layoffs become necessary, implementing equitable and workable layoff policies that acknowledge the needs of all parties. - Improving productivity especially among managerial and technical employees - Managing Career development opportunities so that an effective pool of talented people can be attracted, motivated and retained over long periods of time.
   • Although improved HR practice is acknowledged, very few companies are practicing strategic HR Business HR will not succeed until they fully utilize their HR by answering the following questions 1. What talents, abilities, and skills are available in the organization today 2. Who are the people we can dependably build on for tomorrow 3. How are we blending the talent available with the organizations needs 4. What are the qualitative, as well as, quantitative HR demands of our growth plan

2. What is workforce planning?

   • Anticipate and respond to the needs emerging within and outside the organization. Determine priorities and allocate resources where they can do the most good.
   • A Workforce Planning suggests several specific, interrelated activities.
     • 1. Talent Inventory – To assess current resources (skills, abilities, and potential ) and analyse current use of employees.
     • 2. 2. Workforce forecast – to predict future HR requirements (numbers, skills, mix, internal versus external labor supply.
     • 3. 3. Action plus – to enlarge the pool of qualified individuals by recruitment, selection, training, placement, transfer, promotion, development and compensation.
     • 4. Control and Evaluation – to provide closed-loop feedback to the rest of the system and to monitor the degree of attainment of HR goals and objectives
   • Note how labor markets also affect the supply of and demand for labour. When labor markets are loose the supply of available workers exceeds the demand for them and unemployment is high. Under these circumstances turnover tends to decrease as does employee mobility. Conversely when labor markets are tight demand for workers exceeds supply and unemployment is lo. Under these Circumstances jobs are plentiful and employee mobility tends to increase.

3. Strategic Business and Workforce Plans

   • Strategies are the means that organizations use to compete through innovation, quality, speed or cost leadership.
     • 1. Planning leads to success
     • 2. Planning helps organizations do a better job of coping with change – technological, social, regulatory and environmental.
     • 3. Requires managers to define the organizations objectives
     • 4. Without objectives effective control is impossible

4. Levels of Planning

   • Strategic
   • Operational
   • Tactical

5. The Strategic Planning Process

   • - Defining company philosophy by looking at – why the company exists, what unique contibutions it makes, and what businesses it should be in.
   • - Formulating company and divisional statements of identity, purpose and objectives
   • - Evaluating the company’s strengths weaknesses opportunities and threats – in order to identify the facts that may enhance or limit the choice of any future courses of action
   • - Determine the organization design – (structure, processes, interrelationships, ) appropriate for managing the company’s chosen business.
   • - Developing appropriate strategies for achieving objectives – (time-based points of measurement) including qualitative and quantitative subgoals.
   • - Devising programs to implement the strategies.
   • This asks the questions…. Who are we and how do we cope?

6. The Alternative approach

   • A values based approach, these values are used to evaluate management policies and practices. Values and capabilities comes before strategy. Values create the alignment between values and people.

7. Relationship of HR strategy to Business strategy

   • High performance work practices include the following 5 dimensions.
     • 1. Pushing responsibility down to employees operating in flatter organizations
     • 2. Increasing the emphasis on line managers as HR managers
     • 3. Instilling learning as a priority in al organizational systems
     • 4. Decentralizing decision making to autonomous units and employees
     • 5. Linking performance measures for employees to financial performance indicators.

8. Talent Inventory

   • 1. Who should be included in the inventory
   • 2. Wat specific information should be included for each individuals
   • 3. How can this information best be obtained
   • 4. What is the most effective way to record such information
   • 5. How can inventory results be reported to top managers
   • 6. How often must this information be updated
   • 7. How can the security of this information be protected

9. Information Type

   • - Current position information - Previous positions in the company - Other significant work experience (other companies, military - Education (Including degrees, Licenses, Certifications) - Language skills and relevant international experience - Training and development program attended - Community or Industry leadership responsibilities - Current and past performance appraisal data - Disciplinary actions - Awards Received

10. Uses

    • - Identification of candidates for promotion
    • - Succession planning
    • - Assignments to special projects
    • - Transfer
    • - Training
    • - Workforce-diversity planning and reporting
    • - Compensation planning
    • - Career planning
    • - Organisational analysis

11. Forecasting Workforce supply and demand

    • The techniques are basically simple and easy to describe, but applying them successfully may be enormously complex and difficult After the forecast has been made, it may prove to be useful when it proves to be least accurate as a vision of the future.
    • Used to Anticipate the supply of human resources Anticipating organizational demand for different types of workers
    • Internal supply refers to the organisations employees And demand refers to organizational success

12. External workforce suppply

    • Organizations are finding that they require projections of the external labor market as a starting point for planning, for preventing potential employee shortages from arising and for dealing effectively with those that are to some extent unavoidable.

13. Internal workforce supply

    • Is a form of risk management, internal supply forecast called leadership succession planning.

14. Leadership succession planning

    • - Setting a planning horizon - Assessing current performance - Readiness for promotion - Identifying replacement candidates for each key position - Identifying career development needs - Integrating the career goals of individuals with company goals .
      • Leadership attributes
        • - Think from the outside in - Drive innovation and growth - Developes, teaches and engages with others - Makes courageous decisions - Leads with energy, passion, urgency, - Lives 3M values

15. Chief Executive Officer (CEO) succession

    •  Ensuring that the sitting CEO understands the importance of this task and makes it a priority  Focus on an organisations future needs  Encourage differences of opinion  Provide broad exposure to a variety of jobs  Change responsibilities every 3-5 years  Provide access to the board so that managers get a sense of what matters to directors

16. Workforce demand

    • Identify Pivotol jobs
    • Assess future workforce demand
    • The degree of accuracy in demand work forecasts depends on the degree of flexibility in staffing work
    • What is required is a concise statement of projected staffing requirements that integrate demand and supply requirements

17. Control and evaluation---

    • Difficulty in establishing adequate and accurate criteria does not eliminate the responsibility to evaluate programs

18. Monitoring performance

    • Examination of the costs of current procedures, Employee and management perceptions of results, measurement and analysis of costs and variations in costs under alternative decisions

19. Identifying an appropriate strategy for evaluation

    • HR should attempt to assess the following
      • - Extent to which they are tuned in to workforce problems and opportunities, and the extent to which their priorities are sound. - The quality of their working relationships with line managers who supplied data and use WP results. how closely do they work with these managers on a day-to-day basis . - the extent to which decision makers from line managers who hire employees to Top managers who develop business strategy or making use of workforce forecasts action plans and recommendations . - the value of WP among decision makers do they view the information provided by HL specialists as useful to them in their own jobs .
    • in established WP systems
      • - actual staffing levels against forecast staffing requirements - actual levels of Labor productivity against anticipated levels of Labor productivity - programs implemented against action programs planned - actual results of the action programs implemented against the expected results - labor action program costs against budgets - ratios of action program benefits to action program costs.

20. Responsibility for Workforce Planning

    • Basic responsibility every line manager in the organization , ultimately responsible for integrating HR management functions . supervision , performance appraisal , job assignment

21. Summary

    • we plan in order to reduce the uncertainty of the future .
    • we do not have an infinite supply of any resource people capital information or materials and it's important not only that we anticipate the future but also that we actively try to influence it
    • ultimately success in WP rest on the quality of the action programs established to achieve HR objectives and on the organization's ability to implement these programs.