ModuleTwoStrategyandPlanninginHumanResourceManagementThismoduletargetsoneofthemostimportantconceptsofthecourse-TheIntegratedModelofhumanresourcemanagementandprovidesaframeworkforhumanresourcemanagement.Stakeholders•Stakeholdersincludeallofthosewhomightbeaffectedinasignificantwaybythedecisionsofthefirm.•Shareholdersactuallyownsharesofthecompany,whilestakeholdersmayormaynotownapartofthecompany.•Internalstakeholdersincludeemployees,unionrepresentativesandunions,executives,interestgroups.•Externalstakeholdersincludecustomers,stockholders,community,unions,suppliers,debtors,governments.StakeholderTensions•HRdecisionsarelikelytocreatetensionamonginternalandexternalstakeholdergroups(andevenwithinsubgroups)•Ex.shareholdersvs.employeesshareholdersvs.communitymaleemployeesvs.femaleemployeesworkingmothersvs.singlewomenEnvironmentalScanning•Systematicsurveyingtoidentifyandinterpretrelevanteventsandconditions,i.e.expandingmarkets–Whatiscoming?–Whatwillitmeantous?Thecompany–Whatactionsshouldwetake?ManagementdecisionsEnvironmentalScanningSocial/demographicchangesEconomicconditionsInternationalcompetitionTechnologicalchangeGovernmentregulationsUnionactionsMonitorScreenResearchActStrategyFormulation•Higherlevelphilosophyandpolicyandgoals•Hannon’sStrategicHRDiagnosticToolArethefirm’sHRPRACTICESintegrated?AretheSTAKEHOLDERS’INTERESTSofthefirmbalanced?Arethefirm’sBUSINESSSTRATEGIESandHRSTRATEGIESaligned?StrategyFormulation,Cont.BusinessStrategiesHRStrategiesHRPracticesStakeholderInterestsCustomerserviceAttractRecruit/selectEfficiencyProductqualityProductcostMotivateAppraisal,pay,benefitsEquityLaborCostSpeedDevelopTrain,developLegalcomplianceIntrapreneurshipAgilityRetainEmployeerelationsStrategyImplementation•Specificpractices,“nutsandbolts”,practical•Ex.ArthurAndersen:Hirethebestandbrightestandretainthem–Payabovemarketaverage–Opportunityandspecificcareerpath(voice)–Offermoveandbetterbenefits–Selectonlythebestofferbesttraining•Importanceof“fairness”and“equity”betweengroups–Internalandexternalequity–PerceivedfairnessS.W.O.T.Technique•Usethistechniquetoidentifythecompany’sstrengths,weaknesses,opportunities,andthreatsinordertodevisethebeststrategy.•Internal:strengths,weaknesses.•External:opportunities,threats.–Businessenvironment(thingsthatthecompanycan’tcontrol,butmustlookat).–Benchmarking-compareyourpracticesto“bestinclasspractices.”SWOTIBMExampleStrengths$$$TechnologiesPeopleWeaknessesBureaucraticInflexibleOpportunitiesEmergingMarketsSoftware&hardware&consultingThreatsStartUpsForeignCompetitionBalancedScorecardExternalPerformanceFinancial—sales,income,sharepriceCustomers—satisfaction,repeatbuyingInternalPerformanceBusinessProcesses—productivityLearningandGrowth—humancapitalimprovement,employeesatisfactionHRPlanningObjectives•Preventoverstaffingandunderstaffing•Ensuretheorganizationhastherightemployeeswiththerightskillsintherightplacesattherighttimes•Ensuretheorganizationisresponsivetochangesinitsenvironment•ProvidedirectionandcoherencetoallHRactivitiesandsystems•UnitetheperspectivesoflineandstaffmanagersForecasting•Usedtodeterminewhatyourfutureneedswillbe,andhowbesttofulfillthoseneeds.•Compareyourdemandforlabortoavailablesupply.•Mustberealistic.•PepsicoExample:–Forecast:givencurrentturnoverandworkforcecompositiontheywouldneedtohire1outof3teenstostafftheirexistingrestaurantsandallowforgrowthHRPlanning•“RingsofDefense”approachisnownecessarybecauseofpreviouspoorHRplanningthatledtolargedownsizingevents.•OldDays:permanentfull-timecorewastoobig.•Now:Morepainlessapproachtoshavingworkforce.StrategiesforManagingShortagesStratagiesforManagingSurplusesRecruitnewpermanentemployeesHiringfreezesOfferincentivestopostponeretirementDonotreplacethosewholeaveRehireretireespart-timeOfferearlyretirementincetivesAttempttoreduceturnoverReduceworkhoursWorkcurrentstaffovertimeVoluntaryseverance,leavesofabsenceSubcontractworkoutAcross-the-boardpaycutsHiretemporaryemployeesLayoffsRedesignjobprocessessothatfeweremployeesareneededReduceoutsourcedworkEmployeeTrainingEmployeetrainingSwitchtovariablepayplanExpandoperationsExhibit5-3:StrategiesforManagingEmployeesShortagesandSurplusesAdaptedfromFisher,Schoenfeldt,andShaw.HumanResourceManagement,4d,1999.Downsizing•Companiesarecontinuingtodothismoreandmoreinanefforttosavemoney.•HR’schallengeistodownsizethecompanyandincreasethebottomline,withoutviolatingandofthemanystatutesthatgovernemployers.HRPlanning•GathersandusesinformationtosupportdecisionsaboutinvestingresourcesinHRactivities.Thisinformationincludesfutureobjectives,trendsandgapbetweendesiredandactualoutcomes.•EnsurethatyouhaveadequateflowandappropriatemixofemployeesTransitionalMatrix•Howdoesagroupflowthroughthecompany?•Looksathowacohortofpeoplemovesuppromotionladder.•HRandentry:–Useofjobanalysisinhiring.–Realisticjobpreviews.–Orientation.–Initialtraining.TransitionalMatrix,Cont.•HRandinternalmovement–Promotionsandtransfers–HRplanning–Performanceappraisal–Careerplanning•HRandexit–Retirementcounseling–Outplacementcounseling–Severanceadminist