Unit 4: HR & Succession Planning
Complexity
many elements in the environment affect firm individuals and simultaneously
Methods to forecast external supply
monitor general economic conditions, Journal reports (business week, economist, fortune, and wall street journal), government reports
Why is HR planning important
-Identify HR skill gaps -Identify constraints and opportunities -proactive -stimulate critical thinking and examine assumptions
Strategies to align HR imbalances/ matching HR demand with supply when there is a surplus
-natural attrition -encourage early retirement -downsize -transfer out -worksharing or reduced work hours/ day -pay reduction
Measures of appropriateness
-number of employees -types of employees -timing (when needed?) -location/right department (where needed?)
Strategies to align HR imbalances/ matching HR demand with supply when there is a shortage
-overtime -outsourcing -temp workers -retrained transfers in -new external hires -technological innovations
Considerations for replacement planning
-planning for specific positions -look at subordinates based on hrm education or training background, work experiences, and previous projects
Importance of succession planning
-unforeseen circumstances -to preserve institutional memory -increase span of control has made it more difficult to identify replacements -hyper-competitive provides little slack in leadership transition process
Steps in volatile HR planning
1. Identify business need 2. Forecast HR supply and demand (what is needed) using judgmental forecasts or statistical projections and consider where employees are coming from 3. Match HR demand with supply 4. Evaluate, revise, and refocus HR plan to ensure that business needs are met
Steps in management succession process
1. Identify critical management positions 2. Determine organizations impending shortage 3. Identify skills needed for future business needs 4. Identify high potential individuals 5. Assess strengths and skill gaps of HiPos 6. Develop HiPos for key positions 7. Continuously monitor process
Hyper- Competitive/ Turbulent Environment
4 types (uncertainty, volatile, magnitude of change, complexity); planning is more dynamic
Markov Analysis
A method for tracking the pattern of employee movements through various jobs
HR Planning
A process whereby firms systematically identify human resources to align with their business needs
Methods to forecast internal supply (where employees are coming from)
HRIS (HR Information Systems)(experience, product knowledge, education, training, skills, etc.)
Succession Planning
a type of replacement planning for higher positions and is a deliberate and systemic process be which an organization ensures leadership continuity in top management positions
Uncertainty
accurate info is not readily available to make appropriate business decisions
Magnitude of Change
drastic changes
Volatility
frequent environmental changes
Stable Environment
has very few changes; HR planning focuses on matching demand of HR with supply of HR based on historical employee turnovers and replacement needs
Methods to forecast staffing demand (what we need)
judgmental forecasts (managerial estimates) and statistical projections (scatter plot, regression analysis, and Markov analysis)
