Chapter 10 Strategic Human Resource Planning

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Chapter 10 Strategic Human Resource Planning
Compatibility of Human Resource Management,
Industrial Relations, and Engineering Under Mass
Production and Lean Production An
ExplorationINP 6935September 18, 2001Dave
Lewis
Human Resource Management
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Cascio - Chapter 10 (pg 153)
Dr. Wayne F. Cascio

• Strategic Human Resource Planning

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Examples of HR problems

• Finding specialized technical talent
• Finding seasoned managers
• Developing fair HR management practices (i.e..
  EEO compliant)
• Devising fair workable layoff policies
• Improving productivity
• Managing career development opportunities

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Human Resource Planning (HRP)

• an effort to anticipating future business and
  environmental demands on an organization and to
  meet the HR requirements dictating by these
  conditions

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Human Resource Planning (HRP)
2 step process

• Step 1 - Needs forecasting
• Step 2 -
• Performance management
• Career management
• Note Figure 10-1 p. 155

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Human Resource Planning (HRP)

• Integral parts
• Recruitmentdevelopmentcompensationperformance
  management
• Linked to external and organizational factors,
  and specific HR programs.

dynamic process
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HRP planning process

• the talent inventory
• HR forecasts of supply and demand
• action plans
• control and evaluation procedures

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Importance of Planning

• Deal with change--technological , social,
  regulatory, and environmental
• Objectives
• "if you don't know where you are going, any road
  will get you there."

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HR Planning
Strategic Planning
CH10 - Strategic Human Resource Planning
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Strategic Planning

• Defining company philosophy
• Formulating company and divisional statements of
  identity, purpose, and objectives
• Evaluating the company 's strengths and
  weaknesses
• Determining the organization design
• Developing appropriate strategies for achieving
  objectives
• Devising programs to implement the strategies.

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Strategic HRM In Action
Six Strategic Principles

• Make people a key priority
• Win customers for life
• Use the total quality management approach to run
  the business
• Profitably grow by being the leader in
  customer-led applications of technology
• Rapidly and profitably globalize the business
• Be the best value supplier.

Global Business Communication Systems
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HRP planning process

• the talent inventory
• HR forecasts of supply and demand
• action plans
• control and evaluation procedures

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Talent inventory

• Who should be included in the inventory?
• What specific pieces of information must be
  included for each individual?
• How can this information best be obtained?
• What is the most effective way to record such
  information?
• How can inventory results be reported to top
  management?
• How often most this in format on be updated ?
• How can the security of this information be
  protected?

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Talent Inventory Information Types

• biographical data
• selection test scores
• present and past company training and
  development activities
• salary history
• language skills
• professional qualifications
• travel attitudes and preferences
• career interests and assignment preferences
• experience in foreign countries

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Uses of Talent inventories

• identification of candidates for promotion
• assignment to special projects
• transfer, and training
• for organization analysis
• for human resource planning

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HRP planning process

• the talent inventory
• HR forecasts of supply and demand
• action plans
• control and evaluation procedures

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HR forecasts of supply and demand

• Estimates current data
• Projections projected data
• External Human Resource Supply
• Internal Human Resource Supply
• Management Succession Planning

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HR Forecasts
4X (target year)
2003
Labor productivity
ratio-output per individual
predictor
Productivityratio
Note Figure 10-6 p. 166
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HRP planning process

• the talent inventory
• HR forecasts of supply and demand
• action plans
• control and evaluation procedures

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Action Plans

• talent inventory

HR forecasts
action plans What you gonna do?
Career Management?
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Career Management

• Scarce promotions
• frustrated expectations
• job-hopping

Baby Boomers
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Career Management Career Paths

• Examine the paths followed in the past to the
  top rungs of the ladders.
• Identify entry and exit points into the career
  path, usually at the bottom only.
• Define entry-level position requirements
• Identify important job experiences leading to the
  top "rung"

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HRP planning process

• the talent inventory
• HR forecasts of supply and demand
• action plans
• control and evaluation procedures

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Control And Evaluation

• Goals Objectives!
• Monitoring Performance
• short-run objectives
• long-range planning efforts

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Human Resource Planning (HRP)
2 step process

• Step 1 - Needs forecasting
• Step 2 -
• Performance management
• Career management
• Note Figure 10-1 p. 155

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The HR Planning Process

• Plan in order to reduce the uncertainty of the
  future!
• Success in HRP rests on the quality of the action
  programs

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Compatibility of Human Resource Management,
Industrial Relations, and Engineering Under Mass
Production and Lean Production An Exploration

• Koji Taira
• University of Illinois Urbana Champaign
• August 1995

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Lean Production

• A refinement of Mass production developed in
  Japan characterized by
• Continuous improvement (kaizen)
• Attempts to minimize waste (muda)
• simple tasks are automated (jidoka)

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Objectives of this paper

• to develop an integrative perspective on the
  nature and problems of transition from mass
  production to lean production
• to utilize firm theoretic insights for the
  evaluation of the place and prospects of lean
  production in strategic choices of the firm
• lean production for Europe is explored

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Lean Production
?

• Empowers employee involvement/representation/parti
  cipation at three levels of the firm
• Strategic
• Executive/administrative
• Manufacturing
• Even beyond the firm (suppliers and
  distributors)!

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Core Firm Car Manufacture
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Suppliers
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Multiple Countries
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Convergence Hypothesis

• Kerr, Dunlop, Harbison, and Meyers (1960)

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Models Contrasted

• Mass Production associated with Taylorism -
  ergonomic aspects of production process are
  streamlined
• The ceaseless simplification of tasks
• interchangeable worker - workers were to be
  reduced to brainless voiceless automatons
• Lean Production - minimizes waste maximizes the
  value-adding portion of work
• The ultimate is a job that is automated

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Lean Production

• "It transfers the maximum number of tasks and
  responsibilities to those workers actually adding
  value to the car on the line, and it has in place
  a system of detecting defects that quickly traces
  every problem, once discovered, to its ultimate
  cause"

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Implications for HR

• Transfer of Power
• The maximum transfer of tasks and
  responsibilities to workers
• Humanization of the blue collar position
• implies a drastic reorganization of management
  process and a revolutionary redistribution of
  power

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Lean Production

• A refinement of Mass production developed in
  Japan characterized by
• Continuous improvement (kaizen)
• Attempts to minimize waste (muda)
• simple tasks are automated (jidoka)

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Problems of Transition to Lean Production

• What should be done about the existing workforce
  that has been "dumbed down"
• shut down the plant?
• transform the current workforce

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Problems of Transition to Lean Production

• Forms of Resistance
• Management dislikes empowerment
• Workers want simple easy jobs
• Incremental changes cost money
• unions are also hesitant

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American Example

• United Auto Workers/ Ford - a good example
• Early 80s Ford goes to Japan to learn lean
  production from Mazda

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The Six Guiding Principles
adopted in November 1984

• Quality comes first
• Customers are the focus of everything we do
• Continuous improvement is essential to our
  success
• Employee involvement is our way of life
• Dealers and suppliers are our partners
• Integrity is never compromised

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Ford Employees

• Employees have participated in advance reviews of
  products
• they have participated in rearranging lines and
  machines
• they have taken action to eliminate scrap and
  rework
• they have visited suppliers to seek improved
  quality
• and they have proposed ways to prevent problems
  from happening

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Phase II Joint Governance

• Joint governance
• Co-management
• highly developed system of employee/union
  participation in the firm's decision making
• begins with problem solving through collective
  bargaining with an explicit mutual interest in
  productivity enhancing
• THE enterprise goals are a top priority!

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Cultural Transfer?

• No country can import or transplant foreign
  institutions intact.

?
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Cultural Transfer?
Taylorism, Fordism, American Plan
Kaizen Muda Jidoka
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Europe?

• Historically, Europes HRM/IR has been on its path

Lean Production?
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Europe?

• Humanistic HRM/IR - Europe has gone beyond the
  types of HRM/IR expected under lean production.
• labor-management cooperation are taken for
  granted in Europe

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Europe?

• Lean production should only be a matter of
  technical adjustment for Europe
• Not a traumatic overhauling of the entire HRM/IR
  system as in the United States

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Conclusions

• Generated out of a Japanese need for Competitive
  advantages
• This transition has been forced on American firms
  
• Europe's transition to it is likely to be less
  traumatic than that of the United States.
• more research and more careful analysis

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