Professional Documents
Culture Documents
Resources Planning
Human Resource
Managing
Human Resources
Management
14 edition
Bohlander Snell
14th edition
Snell Bohlander
2007 Thomson/South-Western.
All rights reserved.
Objectives
After studying this chapter, you should be able to:
1. Identify the advantages of integrating human
resources planning and strategic planning.
2. Understand how an organizations
competitive environment influences strategic
planning.
3. Recognize the importance of internal
resource analysis.
4. Describe the basic tools for human resources
forecasting.
5. Explain the linkages between competitive
strategies and HR.
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Objectives
(contd)
After studying this chapter, you should be able to:
6. Understand the requirements of strategy
implementation.
7. Recognize the methods for assessing and
measuring the effectiveness of strategy.
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Strategic Planning
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Strategic Formulation
What is required and necessary in support of human
resources?
Strategic Implementation
How will the human resources be allocated?
Human
HumanResources
Resources
Planning
Planning
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Strategic
Strategic
Planning
Planning
26
Figure 21
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Strategic Vision
A statement about where the company is going and
what it can become in the future; clarifies the longterm direction of the company and its strategic intent
Core Values
The strong and enduring beliefs and principles that
the company uses as a foundation for its decisions
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2.
3.
4.
5.
6.
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Figure 22
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Competencies
Internal
Analysis
Composition
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Core Competencies
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Alliance/partners
Individuals and groups with unique skills, but those
skills are not directly related to a companys core
strategy.
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Figure 23
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Forecasting involves:
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Figure 24
Model of HR Forecasting
FORECASTING
FORECASTINGDEMAND
DEMAND
Considerations
Considerations
Product/service
Product/servicedemand
demand
Technology
Technology
Financial
Financialresources
resources
Absenteeism/turnover
Absenteeism/turnover
Organizational
Organizationalgrowth
growth
Management
philosophy
Management philosophy
Techniques
Techniques
Staffing
Staffingtables
tables
Markov
Markovanalysis
analysis
Skills
inventories
Skills inventories
Management
Managementinventories
inventories
Replacement
charts
Replacement charts
Succession
Successionplanning
planning
Techniques
Techniques
Trend
Trendanalysis
analysis
Managerial
Managerialestimates
estimates
Delphi
technique
Delphi technique
External
ExternalConsiderations
Considerations
Demographic
Demographicchanges
changes
Education
Educationof
ofthe
theworkforce
workforce
Labor
mobility
Labor mobility
Government
Governmentpolicies
policies
Unemployment
Unemploymentrate
rate
BALANCING
BALANCING
SUPPLY
SUPPLYAND
ANDDEMAND
DEMAND
(Shortage)
(Shortage)
Recruitment
Recruitment
Full-time
Full-time
Part-time
Part-time
Recalls
Recalls
(Surplus)
(Surplus)
Reductions
Reductions
Layoffs
Layoffs
Terminations
Terminations
Demotions
Demotions
Retirements
Retirements
FORECASTING
FORECASTINGSUPPLY
SUPPLY
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Quantitative
QuantitativeMethods
Methods
Forecasting
Forecasting Demand
Demand
Qualitative
QualitativeMethods
Methods
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Figure 25
BUSINESS
FACTOR
YEAR
(SALES IN THOUSANDS)
LABOR
PRODUCTIVITY
(SALES/EMPLOYEE)
HUMAN RESOURCES
DEMAND
(NUMBER OF EMPLOYEES)
2000
$2,351
14.33
164
2001
$2,613
11.12
235
2002
$2,935
8.34
352
2003
$3,306
10.02
330
2004
$3,613
11.12
325
2005
$3,748
11.12
337
2006
$3,880
12.52
310
2007*
$4,095
12.52
327
2008*
$4,283
12.52
342
2009*
$4,446
12.52
355
*Projected figures
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Qualitative Approaches
Management Forecasts
The opinions (judgments) of supervisors, department
managers, experts, or others knowledgeable about
the organizations future employment needs.
Delphi Technique
An attempt to decrease the subjectivity of forecasts
by soliciting and summarizing the judgments of a
preselected group of individuals.
The final forecast represents a composite group
judgment.
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Markov Analysis
A method for tracking the pattern of employee
movements through various jobs.
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Figure 26
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Replacement Charts
Listings of current jobholders and persons who are
potential replacements if an opening occurs.
Succession Planning
The process of identifying, developing, and tracking
key individuals for executive positions.
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Highlights in HRM 2
SuccessionPlanning Checklist
RATE THE SUCCESS OF YOUR
SUCCESSION PLANNING
For each characteristic of a
best-practice successionplanning and management
program appearing in the left
column below, enter a number
to the right to indicate how well
you believe your organization
manages that characteristic.
Ask other decision makers in
your organization to complete
this form individually. Then
compile the scores and
compare notes.
Scores
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Source: From William J. Rothwell, Putting Success into Your Succession Planning,
The Journal of Business Strategy 23, no. 3 (May/June 2002): 3237. Republished with
permissionThomson Media, One State Street, 26th Floor, New York, NY 10004.
227
Figure 27
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SWOT analysis
A comparison of strengths, weaknesses,
opportunities, and threats for strategy formulation
purposes.
Use the strengths of the organization to capitalize on
opportunities, counteract threats, and alleviate
internal weaknesses.
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Corporate Strategy
Growth and
Diversification
Mergers and
Acquisitions
Corporate
Strategy
Strategic Alliances
and Joint Ventures
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Business Strategy
Value Creation
What the firm adds to a product or service by virtue of
making it; the amount of benefits provided by the
product or service once the costs of making it are
subtracted.
Low-cost strategy: competing on productivity and
efficiency
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Highlights in HRM 4
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Figure 28
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HR metrics
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Highlights in HRM 5
The Top Ten Measures Of Human Capital
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Source: The Top 10 Measures of Human Capital Management, HRFocus 78, no. 5 (May 2001): 8.
Copyright 2001. Reprinted by permission of the publisher via Copyright Clearance Center.
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financial
customer
processes
learning
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Figure 29
Balanced Scorecard
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Figure 210
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Organizational Capability
Resource flexibility
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Key Terms
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replacement charts
skill inventories
staffing tables
strategic human resources
management (SHRM)
strategic planning
strategic vision
succession planning
SWOT analysis
trend analysis
value creation
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Calculating Turnover
and Absenteeism
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Highlights in HRM 6
Costs Associated With The Turnover Of One Computer Programmer
(Turnover costs = Separation costs + Replacement costs + Training costs)
Separation costs
1. Exit interview cost for salary and benefits of both interviewer and departing employee
during the exit interview = $30+$30 = $60
2. Administrative and record-keeping action = $30
Total separation costs = $60 + $30 = $90
Replacement costs
1.
2.
3.
4.
5.
Training costs
1. Booklets, manuals, and reports = $50
2. Education = $240/day for new employees salary and benefits x 10 days of workshops,
seminars, or courses = $2,400
3. One-to-one coaching = ($240/day/new employee + $240/day/staff coach or job expert) x 20
days of one-to-one coaching = $9,600
4. Salary and benefits of new employee until he or she gets up to par = $240/day for salary
and benefits x 20 days = $4,800
Training costs = $50 + $2,400 + $9,600 + $4,800 = $16,850
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