PART 2

SUPPORT ACTIVITIES

Chapter 3: Planning
 STAFFING ORGANIZATIONS MODEL
Organization
Mission
Goals and Objectives

Organization Strategy HR and Staffing Strategy

Staffing Policies and Programs

Support Activities Core Staffing Activities
Legal compliance Recruitment: External, internal
Selection:
Planning Measurement, external, internal
Employment:
Job analysis Decision making, final match
Staffing System and Retention Management 2
 LEARNING OBJECTIVES FOR CHAPTER 3
• Recognize external influences that will shape the planning process
• Understand how strategic plans integrate with staffing plans
• Become familiar with statistical and judgmental techniques for
forecasting HR requirements and availabilities
• Know the similarities and differences between replacement and
succession planning
• Understand the advantages and disadvantages of core workforce,
flexible workforce, and outsourcing strategies for different groups of
employees
• Learn how to incorporate diversity into the planning process
• Recognize the fundamental components of an affirmative action plan
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 HR PLANNING

Process of forecasting the

organization’s future employment
needs and then developing action
plans and programs for fulfilling
These needs in ways that align with
the staffing strategy.

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• HR plans form the basis of all other activities
conducted during staffing.
• An organization that thoroughly considers its staffing
needs and how these needs fit with the external
environment will find it much easier to recruit the right
number and type of candidates, develop methods for
selecting the right candidates, and evaluate whether
its programs are successful.

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INTERNAL & EXTERNAL INFLUENCES
7

ON STAFFING
 INTERNAL INFLUENCES ON STAFFING

1. Organizational strategy
• Current financial and human
resources
 Hiring the right number of
people with the right
KSAOs at the right time.

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• Effective staffing planning must begin with a
dialogue between HR representatives and
organizational leaders.
• HR managers should be aware of core aspects of
the organization’s operations:
 Demand for products and/or services
 Competitors
 Financial and marketing goals
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• Additionally, it is important to see how the organization
sees itself changing in the future so that staffing
strategies to meet these needs can be developed.
• Participating in activities like annual planning meetings
and reviewing financial statements are essential.
• Strategic HR experts emphasize that this dialogue must
be a two-way communication.

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 INTERNAL INFLUENCES ON
STAFFING
2. Organizational culture
• In essence, culture is the set of intangibles that
influences attitudes and behavior in organizations.
• Expressed vision of executives (CEO/ top
management)
• Degree of hierarchy and bureaucracy
• Style of communication (top down / bottom up)
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• To understand culture, HR managers should spend
time talking with senior executives, administer and
evaluate employee survey data, and conduct
focus groups.
• Deciding the types of attitudes and values that
employees should have in order to achieve a
person/organization fit is entirely dependent on
culture.
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• An organization with a participative culture should ensure
that planning involves representatives from many different
perspectives.
• Decisions related to how succession planning should be
managed are also influenced by the degree to which the
organization’s members value opportunities for growth and
development relative to stability and predictability.
• These are just a few of the ways in which culture can impact
the planning process

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 EXTERNAL INFLUENCES ON
STAFFING
•Labor markets
• labor demand,
• labor supply,
• Labor shortages and surpluses

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 LABOR DEMAND : EMPLOYMENT
PATTERNS

• When producing goods and services, businesses

require labor and capital as inputs to their
production process.
• Labor demand is a derived demand, meaning it is
a result of consumer demands for the
organization’s products & services.

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• Knowing the organization’s strategy and projections for
future KSAO needs will guide the search for labor
demand information
• To learn about labor demand, national employment
statistics are collected and analyzed.
• Employment projections through 2024 indicate that job
growth is expected to be especially strong for health
care practitioners and health care support
occupations, consistent with long-range trends.

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 LABOR DEMAND : KSAOS SOUGHT

• The increasing demand for education is most likely

reflects advances in technology that have made
many jobs more complex & technically
demanding.
• Survey of skill deficiencies
• Critically required skills

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 LABOR SUPPLY: THE LABOR FORCE &
ITS TRENDS

• Quantity of labor - Labor Force Statistics

• Labor force trends relevant to staffing
• Shortages
• Surplus

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• When labor demand exceeds labor supply for a given
pay rate, the labor market is said to be “tight” and the
organization experiences labor shortages.
• Shortages tend to be job or occupation specific.
• Low unemployment rates, surges in labor demand in
certain occupations, and skill deficiencies fuel labor
quantity and labor quality shortages for many
organizations.

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 TECHNOLOGY
• Changes in technology can influence the staffing
planning process significantly.
• Elimination of jobs
• E.g. bank cashier, telephone operators (chat bots) &
manufacturing operators
• Creation of jobs
• Increased demand for technical occupations like
robotics engineers, systems & database analysts
• Changes in skill requirements

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CREATION OF NEW JOBS
• Driverless car engineer. Are
driverless cars the future of
automobiles? ...
• Social media influencer. ...
• Blockchain analyst. ...
• Podcast producer. ...
• Telemedicine physician. ...
• Cloud architect. ...
• GRAB driver. ...
• Drone operator.
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• Social media manager. ...
• Web developer. ...
• Apple genius. ...
• SEO consultant. ...
• App Developer. ...
• UX designer. ...
• Cloud services specialist. ...
• Software engineer.
 HUMAN RESOURCE PLANNING
• A ongoing process & set of activities undertaken to
forecast an organization’s
1. labor demand (requirements) &
2. internal labor supply (availabilities)
3. to compare these projections to determine
employment gaps &
4. to develop action plans for addressing these gaps.
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 HRP: INITIAL DECISIONS
• Strategic planning
• Linkages with larger organizational mission
• Plan based HRP – HRP as an integral part of an
organization’s strategic planning
• Project based HRP – ensure necessary creation of new
jobs & changes in requirements & rewards
• Population based HRP – planning focused on a
specific employee group

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• Planning time frame
• Long term ( > 3 years ) e.g. Plan based HRP
• Intermediate ( 1 – 3 years) e.g. Project based HRP
• Short term ( < 1 year )

• Job categories and levels

• What jobs will be covered by a plan?
• These job category/level of combinations & the types &
paths of employee movement among them, form the
structure of an internal labor market

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• Head count (current workforce)
• How does an organization count the number of people in
its current workforce for forecasting & planning purposes?
• Not sufficient to just count the no of employees on the
payroll at the beginning of the planning period.
• Roles and responsibilities
• Generally, line managers are ultimately responsible for
completion & quality of HRP with the assistance of HR staff

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 (1) FORECASTING HR
REQUIREMENTS

a)Statistical techniques
• Exh. 3.7: Examples of Statistical Techniques to
Forecast HR Requirements
 Ratio analysis
 Use ratio to predict future HR
requirements

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POSSIBLE RATIOS
• Production to employees
• Revenue per employee
• Managers to employees
• Inventory levels to employees
• Number of customers or
customer orders to employees
• Labor costs to all production
costs
• The percent utilization of
production capacity to
employees

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 Regression analysis

 Use equation to predict future HR Requirement

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 Trend analysis

 Predict trend in employee demand by

fitting a line to trends in historical
staffing

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 DETERMINING THE RELATIONSHIP 58

BETWEEN HOSPITAL SIZE AND NUMBER

OF NURSES
Size of Hospital
(Number Number of
of Beds) Registered Nurses
200 240
300 260
400 470
500 500
600 620
700 660
800 820
900 860
Note: After fitting the line, you can project how many employees you’ll need, given your
Trend Analysis
projected volume.
b)Judgmental techniques
• Uses a decision maker who collects & weighs the
information subjectively & then turns it into forecasts of
HR requirements

• “Top-down” approach
• Top managers rely on their knowledge of business &
organizational plans to make predictions about what
the future head count will be

• “Bottom-up” approach
• Lower level managers makes initial estimates for their
unit based on what they have been told or presume
are the business & organization plans. 59
 (2) FORECASTING HR
AVAILABILITIES
• Approach
–Determine head count data for current workforce
and their availability in each job category/level
• Approaches to forecasting availabilities
a)Manager judgment
b)Markov Analysis
c)Succession planning
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 a) Manager judgment
• Human decision-making models that are used for
forecasting HR requirements.
• Managers use their judgment to make availability
forecasts for their work units.
• The decision maker’s forecasts may or may not
agree very closely with those derived from
statistical techniques.

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• To provide reliable estimates, the manager must
be very knowledgeable about both
organizational business plans & individual
employee preference for staying in their current
job versus moving to another job.

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• Usually in smaller organizations or in ones
that lack centralized workforce internal
mobility data & statistical forecasting
capabilities

• Complexity of forecasting – if there are

large numbers of employees & job
category/level in the work unit.
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 MARKOV ANALYSIS

• Used to predict availabilities on the basis of

historical patterns on job stability & movement
among employees.

• Past flows & rates may be measured & then used

to forecast the future availability of current
employees,

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1. Job stability (remain in A1, A2, B1, or B2)
2. Promotion (move to a higher level: A1 to A2, A1 to
B2, B1 to B2, or B1 to A2)
3. Transfer (move at the same level: A1 to B1, B1 to A1,
A2 to B2, or B2 to A2)
4. Demotion (move to a lower level: A2 to A1, A2 to B1,
B2 to B1, or B2 to A1)
5. Exit (move to another organizational unit or leave
the organization)

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 REPLACEMENT AND SUCCESSION
PLANNING
• Focus on the identification of individual employees who
will be considered promotion candidates, along with
thorough assessment of their current capabilities &
deficiencies, coupled with training & development
plans to erase any deficiencies.

• Focus is on both the quantity & quality of HR availability.

• The organization ensure steady & known flows of

qualified employees to higher levels of responsibility

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• Replacement
planning
• Many HRIS make
it possible to
keep data on
KSAOs for each
employee based
on job history,
training & outside
education
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MANAGEMENT
REPLACEMENT
CHART SHOWING
DEVELOPMENT
NEEDS OF
POTENTIAL FUTURE
DIVISIONAL VICE
PRESIDENTS
REPLACEMENT CHART

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 SUCCESSION PLANNING

Ensure candidates for promotion will have the

specific KSAOs & general competencies required
for success on the job.

Assess each promotable employee for KSAO or

competency gaps & where there are gaps,
create employee training & development plans
that will close the gap.
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EXAMPLE OF HR SUCCESSION
PROGRAM

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 (3) RECONCILIATION AND GAPS

• Coming to grips with projected gaps

• Likely reasons for gaps need to be identified

• Assessing future implications – action to be

taken to respond to the forecasting results

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 (4) ACTION PLANNING

1 •Set objectives

2 •Generate alternative activities

3 •Assess alternative activities

4 •Choose alternative activities

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 CORE WORKFORCE

• Defined as regular full time employee of the

organization
• Hiring is long term and high commitment
• The regularity of the employment relationship
fosters a sense of commitment & shared purpose
toward the organization’s mission.

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•Labor cost may be greater due to
Higher wages, salaries & benefits
Fixed nature of these labor costs
Legal obligations

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 ADVANTAGES

• Stability, continuity & predictability

• Organization can depend on its core workforce &
build strategic plans based on it
• The regularity of the employment relationship
fosters a sense of commitment & shared purpose
toward the organization’s mission.

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• Organization maintains the legal right to control
employees working in its behalf, in terms of both
work process & expected results
• Organization can directly control how it acquires
its workforce & the qualifications of those it
employs through the management of its own
staffing

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 DISADVANTAGES

• Potential loss of staffing flexibility to rapidly

increase, reduce or redeploy its workforce in
response to changing market conditions
• Reductions of the core workforce can be costly in
terms of severance pay package, low morale &
damage to the organization’s reputation as a
good employer

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• Organization may not have exposure to new
technical & administrative knowledge without
the use of flexible workers such as consultants

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 FLEXIBLE WORKFORCE
• 2 categories
• Temporary employees
• Staffing firms ( temporary help agencies )
• The firm charges the organization a
general fee for its labor costs ( wages &
benefits) plus a ‘markup’ % of labor costs (
usually 40 – 50%)to cover these services
plus a profit

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 INDEPENDENT CONTRACTORS

• Provides specific tasks & project assistance to the

organization, such as maintenance, bookkeeping,
advertising, programming & consulting

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 ADVANTAGES
• Staffing flexibility – able to adjust staffing levels quickly
in response to changing technological or consumer
demand conditions
• Ability to quickly staff new areas or projects & the
ability to fill in for core workers absent de to illness, &
holidays.
• Labor cost advantages – lower pay & benefits, variable
labor costs & reduced training costs

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• Less tax & legal obligations
• Organization do not need to design & manage its
own staffing systems
• Organization might use flexible workers on a
‘tryout’ basis and then hire into its core workforce
those who turn out to be a solid person/job match.

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 DISADVANTAGES
• Legal loss of control over flexible workers because
they are not employees of the organization
• Limited in the amount of surpervision &
performance management
• Core workers may feel that flexible workers lack
knowledge & experience & do not act like
committed team players
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• Lack familiarity with equipment, policies,
procedures & important customers & lack of
training in specific job requirements
• Quality of the flexible workforce will depend
heavily on the quality of the staffing & training
systems used by the provider

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