2- HR Planning Flashcards
failure of employees to report to work when their schedule requires it, whether or not such failure to report is an excused.
absenteeism
a formal process for dispute resolution, yet not so formal that the rules of a
court must be followed
arbitration
code that informs employees that they are expected to conduct business in a way that upholds high standards of integrity
code of ethics
an European regulation that sets restrictions on what
personal information can be collected and stored; it applies to all areas of everyday activity and to all EU countries
data protection directive
employees’ belief that the outcomes they experience are fair in comparison to the outcomes of others
distributive justice
the assumption that employers have the right to terminate employees for (almost) any reason
employment at will rule
procedures that encourage employees to voice their concerns to the company instead of to the courts and to seek constructive resolutions without
litigation
grievance procedures
conduct that creates a hostile, intimidating, or offensive work environment; that unreasonably interferes with the individual’s work; or that adversely
affects the individual’s employment opportunities
harassment
human capital return on investment
HC ROI
Total of HR expenses divided by total operating expenses
HR expense ratio
Total revenue divided by total number of Full time equivalent
employees
HR revenue ratio
employees’ belief that managers are sensitive to their situations, give them the information they need, and treat them politely and respectfully
interactional justice
important legal decisions that were made in the past and used as the basis for making a decision in a new case
legal precedents
a process in which all concerned parties present their case to a neutral
third party; the mediator
mediation
perceptions about fairness in the process used to determine outcomes
procedural justice
to succeed under new competitive conditions, companies must change and adapt to change
why change happens
-Changes in HR policies and practices encourage and support
behaviors needed for organizational change.
- HRM helps align the organization with its chosen strategy
how change affects HR
when the HRM system fits with all other elements
of the organizational environment—the culture, strategy, structure, etc
vertical alignment
Exists when all the HR policies & practices that comprise
the HRM system are consistent with each other
=> present a coherent message to employees
concerning how employees should behave while at work
horizontal alignment
Major adjustments in
the ways a firm does
business
radical change
Evolves over time
from many small routine
changes
incremental change
Forced radical or
incremental action
reactive change
Action taken in
anticipation of upcoming
events or early in the
cycle of a new trend.
anticipatory change
major planned change due to
- mergers and acquisitions
- international expansions
radical anticipatory change
major unexpected change due to
- environmental disaster
- new competitor
radical reactive change
small planned change due to
- normal growth
- changing work-force demographics
incremental anticipatory change
small unexpected change due to
- departure of top executive
- customer feedback
incremental reactive change
fear
misunderstandings
cynicism
reasons for resistance to change
Criticism
Malicious compliance
Sabotage
Silence
forms of resistance
Loss of attachment
Lack of information
Perception of managerial capriciousness
Fear of future reductions
challenge: Maintaining employee morale & regaining employee trust
while the actions of the company seem to say, “You are not valuable”
Causes of Negative Reactions to Workforce Reductions and challenges
Success of products & services offered in the
internal marketplace should be monitored.
Human resource information system (HRIS) provides the
means for collection & dissemination of evaluation data.
Make sure there are “short-term wins” to celebrate
managing resistance to change - review, revise and refocus
Continually finds new ways to satisfy customers & other
stakeholders by integrating information resources, technology,
and people to produce & then effectively use new knowledge.
Constantly changing through experimentation & learning
from others.
Planning ensures the HRM system provides learning
opportunities to build competencies & keeps employees
motivated & interested in learning.
learning organization
making sure business strategy (learning as a core competency), company culture (continuous innovation) and technology all help learning
- recruit, hire and promote based on capacity for future learning, make knowledge accessible (training and development)
- assess individuals growth and contribution to others’ growth
- rewards in line with long term growth and development of self
- employees who experiment, think critically, learn from others, share and apply knowledge, help create change and adjust to change quickly
aligning HRM in learning organizations
Line managers
-provide information, help establish specific objectives, act as role model for change, communicate constantly and revise change initiatives
HR professionals
-participate in environmental scanning, forecast labor needs and supplies, develop detailed HR objectives, serve as facilitator of change, disseminate formal communication, assist in evaluations of change and revision of plans
Employees
-provide input during early phases of planning and change, approach change with positive attitude, collaborate in collection and interpretation of data, take personal initiative to ensure understanding of changes
HR Triad in HR Planning
HRP: process of forecasting future human resources requirements to
ensure that the organization will have the required number of
employees with the necessary skills to meet its strategic objectives
shortages/surpluses
HR Planning
forecasting demand for labour
analyzing the labour supply
planning & implementing HR programs to balance supply and
demand
key steps in HRPlanning
- forecast demand for labour (trend analysis, strategic plans, economic conditions, market trends etc)
- analyse supply
- implement HR programs to balance supply and demand
HR Planning model
-scheduling overtime
-hiring temp workers
-subcontracting
-external recruitment
-internal promotions/transfers
(performance management, training and career development play key role)
balancing supply and demand considerations - when labor demand exceeds labor supply
- hiring freeze (reassign current workers to job openings)
- attrition: standard employee resignation, retirement
- incentives to leave organization (buyouts, early retirement programs)
- job sharing
- reducing positions to PT
- work sharing and reduced workweek
- finding employees alternative jobs within organizations
- employee layoffs
- termination of employment
balancing supply and demand considerations - when labor supply exceeds labor demand
- personnel plans
- personnel forecaste
- recruitment
- employee selection
- training and development
- compensation
- labor relations
- security and safety
HR planning in relation to strategic planing
organizations replace employees who leave the firm with
individuals transferred or promoted from inside or hired
from outside.
as in shortage situations, performance management,
training, and career development play crucial roles
balancing supply and demand considerations - when labor supply meet labor demand
- Scanning & assessing the external & organizational
environments. Forecasting future HR needs (demand) - Specifying the objectives to be achieved by HR activities along with the measures to be used to assess the achievement of
those objectives. Forecasting availability of internal &
external candidates (supply) - Developing specific plans for HR policies & practices, along with timetables for implementing those plans. Planning & implementing HR programs to balance supply & demand
The Elements of HR Planning
Globalization Political Landscape Labor Markets Country Cultures Legal Institutions Unionization
external environment elements
technology
company culture
business strategy
-analysis done through: employee opinions, hr forecasts, models and maps (provide insight in why employees behave the way they do, show cause/effect)
important organizational environment elements
estimates firm’s future HR needs - two types:
Judgmental forecasts: informed experts predict business trends
Statistical forecasts: rely on objective data and formal models, use historical data to predict future
HR Forecasts
Forecasting based on:
projected turnover.
quality & nature of employees relative to needs.
decisions regarding product quality & new markets.
plans for technological & administrative changes to
increase productivity & reduce headcount.
financial resources available
forecasting future HR needs - demand
trend analysis: review past employment levels.
ratio analysis: ratio of business activity (e.g. sales) &
number of employees needed
scatter plot: used to determine whether two factors (business activity & staffing levels) are related.
regression analysis: examines the statistical
relationship between business activity & employees
forecasting future HR needs - quantitative approaches
- Nominal Group Technique
decision making technique that involves a group of experts
meeting face to face.
steps include independent idea generation, clarification &
open discussion, and private assessment. - Delphi Technique
judgmental forecasting method used to arrive at a group
decision, typically involving outside experts as well as
organizational employees.
ideas are exchanged without face-to-face interaction and
feedback is provided and used to fine-tune independent
judgements until a consensus is reached. - Managerial judgment
- Markov Analysis
a method of forecasting internal labour supply that
involves tracking the pattern of employee movements
through various jobs & developing a transitional
probability matrix.
qualitative approaches
Skills Inventories
manual or computerized records summarizing employees’
education, experience, interests, skills, & so on, which are used to identify internal candidates eligible for transfer
and/or promotion.
Management Inventories
records summarizing the qualifications, interests, & skills
of management employees, along with the number &
types of employees supervised, duties of such employees, total budget managed, previous managerial duties and responsibilities, & managerial training received.
Replacement Charts
visual representations of who will replace whom in the
event of a job opening.
likely internal candidates are listed, along with their age,
present performance rating, & promotability status.
Replacement Summaries
lists of likely replacements for each position and their
relative strengths and weaknesses, as well as information about current position, performance, promotability, age, & experience.
forecasting availability of internal and external candidates (Supply)
Process of ensuring suitable supply of successors for current & future senior or key jobs so that careers of individuals can be effectively planned & managed.
Includes:
analysis of the demand for managers & professionals to prepare individuals for future roles.
accelerated promotions, with development targeted at future in the company.
audit of existing executives & projection of likely future supply.
planning of individual career paths based on objective estimates of future needs, performance appraisal data, & assessments of potential.
career counselling & performance-related training and development business needs.
planned strategic recruitment, aimed at obtaining people with the
potential to meet future needs, as well as at filling current openings
Succession planning
general economic conditions
national labour market conditions
local labour market conditions
occupational market conditions
employees assess in order to project supply of outside candidates
- HR objectives must be tied to strategic business goals.
- The metrics must be well aligned with the specified HR
objectives.
Business objectives focus attention on:
Employees needed for growth or decline of the firm.
Competencies & behaviors for higher performance.
Higher levels of productivity
Linking HR Objectives to Strategic Business
Objectives
- accepted as legitimate
- relatively easy to use
- connected to HR and business objectives
best HR metrics must be:
- staffing plan
- training plan
- leader development plan
- talent management plan
building a complete HR plan
- succession planning (ensures key positions can be filled when vacancies occur)
- talent pool (list of employees with high potential for advancing)
- replacement charts (lists of key jobs and employees)
ensuring supply matches demand- talent management
Challenges.
Building deadlines & scheduling checkpoints to
keep change moving.
Developing challenging but achievable deadlines.
Developing realistic expectations about change.
timetables
involving employees with
- task forces
- focus groups
- surveys
- hot lines
- informal conversations
establishing accountability
Specifying who is responsible for making needed changes.
Implications for holding people accountable for change
efforts:
Improved performance measurement systems.
Changes in incentive pay, promotion, & bonus systems.
implementing HR Action plans and facilitating change
Global Talent Management
Where is the competition?
Where are the customers?
Where & how to get employees?
Will HR activities transfer to operations abroad?
Socially Responsible Corporations
What impact is the organization having on the environments in
which it operates?
How can the firm minimize its footprint in an environmentally and
socially responsible manner?
current issues
