HR Supply

1
HR Supply

• Consider
• Trends in the labour market
• Community attitudes
• Demographic trends- The baby boom generation is
  aging. In fact, studies show that the number of
  workers age 55 and over will jump 47 percent by
  2010.

2
HR Supply

• According to recent studies
• Only 29 percent of 428 HR professionals polled
  have implemented succession planning programs or
  charts, and nearly a third say they are not
  prepared for widespread departures.
• Of 200 HR professionals surveyed, 94 percent
  say they have not readied younger workers to
  advance.
• But older employees will remain in the workforce
  indefinitely because their retirement funds are
  dwindling, right?

3
HR Supply

• Forecast Supply Method
• Succession planning
• Linked to HRIS skills/management inventories
• Long-term succession linked to training and
  development
• Short-term succession immediate needs

4
Big companies rarely pick from outside. To do so
is usually a sign that they are in trouble.

• Why do it?
• - provides continuity
• - employee development - cultivating leadership
  from within
• - Motivating promotion is a reward
• Reduces dependability on any one employee
• Saves time and money as no external search
• Improve retention and corporate performance
• Ripple and chain effects (blockages)
• See figure 9.1

5
Succession

• In its simplest form, succession planning might
  be described more accurately as replacement
  planning, in which managers identify and help
  groom their replacements before moving on to
  another position themselves.
• One variation is leadership transition planning,
  which focuses only on a process of planning for
  the transition of the top two or three positions
  in an organization.
• Another approach is continuity or leadership
  development planning, which takes a broader
  assessment of management talent throughout the
  organization without attempting to identify
  single individuals to fill specific positions.

6
Succession

• Start with an assessment process --
  characteristics, talents, and skills
  (competencies) of the individuals involved should
  be cataloged (HRIS).
• Integrate performance management system.

7
Succession

• Equally important, the general characteristics
  and requirements of future leaders (in the case
  of continuity planning) or requirements of a
  specific position (in the case of replacement
  planning) should be delineated--what's necessary
  to do the job in the current and future
  environment competencies of the ideal
  performer.

8
Succession

• Once the individual's competencies have been
  identified, the next step is to create an
  individual development plan or promotability
  forecast that outlines what the person needs to
  do to be considered for the next level of
  management.
• To fill the gap between desired and actual
  competencies, some organizations assign to
  managers new responsibilities that are outside
  their primary area of expertise.

9
Succession

• assessment of the manager's interest in being
  promoted.
• saying no to an opportunity will not be held
  against a potential candidate.

10
Markov analysis

• Used for long-term forecasting in large companies
• Uses historic information from personnel
  movements in the internal labour supply to
  predict what will happen in the future
• Transition probability matrix
• Requires about 50 people in each cell to ensure
  adequate reliability

11
Matching supply demand

• Compare the demand side and supply (gap)
• Feedback to organizational strategy
• Implement the HR strategy
• e.g., down-sizing, recruit, train etc.
• Control and evaluation
• Actual staffing levels against established
  staffing requirements

12
Forecasting

• Productivity levels against established goals
• Actual personnel flow rates against desired rates
• Programs implemented against action plans

13
Forecasting

• Program results against expected outcomes
• Labour and program costs against budget
• Ratio of program results (benefits) to program
  costs

14
Forecasting

• Markov
• Consider a company that is expanding by adding a
  new plant. What is the internal HR supply?
• What do we know at time 1?
• At time 2 ? 2 regular shifts and 1 half
• Projection