labour market analysis

Part 2Support Activities

Chapter 03:

Planning

McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.

Organization StrategyOrganization Strategy HR and Staffing StrategyHR and Staffing Strategy

Staffing Policies and Programs

Staffing System and Retention Management

Support Activities

Legal compliance

Planning

Job analysis

Core Staffing Activities

Recruitment: External, internal

Selection:Measurement, external, internal

Employment:Decision making, final match

OrganizationMission

Goals and Objectives

Staffing Organizations Model

3-2

3-3

Chapter Outline

External Influences Economic Conditions Labor Markets Technology Labor Unions

Human Resource Planning Process and Example Initial Decisions Forecasting HR

Requirements Forecasting HR

Availabilities Reconciliation and Gaps

Staffing Planning Staffing Planning Process Core Workforce Flexible Workforce Outsourcing

Diversity Planning Demography of the American

Workforce Business Case for Diversity Planning for Diversity

Legal Issues AAPs Legality of AAPs EEO and Temporary

Workers

3-4

Ex. 3.1: Examples of ExternalInfluences on Staffing

3-5

Labor Markets: Demand for Labor

Employment patternsDemand for labor is a derived demandJob growth projectionsEmployment growth projections

KSAOs soughtKSAO requirements

Education levelsSurvey of skill deficienciesCritically required skills

3-6

Labor Markets: Supply of Labor

Trends in supply of labor Quantity of labor - Exh. 3.2: Labor Force Statistics Labor force trends relevant to staffing

Growth KSAOs Demographics Other trends ???

KSAOs available Educational attainment Literacy Motivation

3-7

Labor Markets: Other Issues

Labor shortages and surpluses “Tight” labor markets “Loose” labor markets

Employment arrangementsFull-time vs. part-timeRegular or shift workAlternative employment arrangements

Exh. 3.4: Usage of Alternative Employment Arrangements and Contingent Workers

3-8

Technology

Reduces demands for some jobsReplacement for laborMakes products or services obsolete

Increases demands for othersChange in market compositionNew product development

Changes in required skills

3-9

Labor Unions

Trends in union membershipPercentage of labor force unionizedPrivate sector unionization ratePublic sector unionization rate

Contract clauses affecting staffingImpacts on staffing

“Spillover effects”

3-10

Labor Unions: ContractClauses Affecting Staffing

Management rights Jobs and job structure External staffing Internal staffing

Job posting Lines of movement Seniority

Grievance procedure Guarantees against discrimination

3-11

Overview: HumanResource Planning

Process and ExampleInitial DecisionsForecasting HR

RequirementsForecasting HR AvailabilitiesReconciliation and Gaps

Ex. 3.5: The Basic Elementsof Human Resource Planning

3-12

Ex. 3.6: The Basic Elementsof Human Resource Planning

3-13

3-14

HRP: Initial Decisions

Strategic planningComprehensivenessLinkages with larger organizational mission

Planning time frameJob categories and levels

What jobs will be covered by a plan?Head count (current workforce)Roles and responsibilities

3-15

Human Resource Planning

Reconciliation and Gaps Coming to grips

with projected gaps Likely reasons for

gaps Assessing future

implications

Action Planning Set objectives Generate

alternative activities Assess alternative

activities Choose alternative

activities

3-16

Staffing Planning Process

Staffing objectivesQuantitative objectivesQualitative objectives

Generate alternative staffing activitiesStaffing alternatives to deal with employee

shortages and surpluses

Forecasting techniques

Future human resource needs can be determined by some methods

Forecasts are mathematical or judgemental

Judgemental methods

1. Managerial estimates:

-future staffing needs based on past experience

-made by top level management or middle level and lower level together

3-18

2. Delphi technique:

-panel of experts

-each expert independently estimates future demand

-a mediator presents each expert’s forecast to the others

-experts can revise their comments

-process continues till agreement between all experts

3-19

m

Scenario Analysis:

-scenarios are developed in brainstorming sessions (by operating and hr managers)

-5 or more years scenario is done

Benchmarking:

- Deeply examines the company’s internal practices and processes and measures them against successful company practices

3-20

Mathematical or statistical methods

Time-series analysis:

-past staffing levels indicate future requirements

(moving average, exponential smoothing or regression technique)

Regression analysis:

-past study of work load indicators like sales, production levels are studied

-linked with staffing levels

3-21

Productivity ratios:

Historical or past data are used to examine past levels of productivity index

P= Workload/ No. of People

3-22

Ex. 3.14 Staffing Alternatives to Deal With Employee Shortages

3-23

Ex. 3.14 Staffing Alternatives to Deal With Employee Surpluses

3-24

Exhibit 3.15 Internal Versus External Staffing

3-25

3-26

Staffing Planning: Flexible Workforce

AdvantagesDisadvantagesTwo categories

Temporary employeesStaffing firms

Exh. 3.16: Factors to Consider When Choosing a Staffing Firm

Independent contractors

3-27

Staffing Planning: Outsourcing

AdvantagesDisadvantagesSpecial issues

Employer concerns regarding working conditions

Loss of control over qualityOffshoring

3-28

Diversity Planning

The American workforce is highly diverse Women make up ½ the labor force Immigration Civil Rights Legislation Age

Business case for diversity strategiesExpanded talent poolsBetter understand diverse customer baseEnhance creativity of teamsReduce turnover

3-29

Diversity Planning

Planning for diversityRecruiting activities

Selecting schools and colleges to recruit fromShow commitment to diversity in recruiting

effortsSelection activities

Eliminate requirements not related to job performance

Include objective standards for judging candidate qualifications