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Stages in Human Resource Planning

Stages in Human Resource Planning . Forecasting Labor Demand Labor Supply Goal Setting and Strategic Planning Program Implementation and Evaluation. IRWIN. a Times Mirror Higher Education Group, Inc., company, 1997. Forecasting Stage of Human Resource Planning . Determining Labor Demand

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Stages in Human Resource Planning

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  1. Stages inHuman Resource Planning • Forecasting • Labor Demand • Labor Supply • Goal Setting and Strategic Planning • Program Implementation and Evaluation IRWIN • a Times Mirror Higher Education Group, Inc., company, 1997

  2. Forecasting Stage ofHuman Resource Planning • Determining Labor Demand • derived from product / service demand • external in nature • Determining Labor Supply • internal movements caused by transfers, promotions, turnover, retirements,etc. • transitional matrices identify employee movements over time • useful for AA / EEO purposes • Determining Labor Surplus or Shortage IRWIN • a Times Mirror Higher Education Group, Inc., company, 1997

  3. Strategies for Reducing an Expected Labor Surplus Extent of Human Suffering Strategy Speed 1. Downsizing 2. Pay reductions 3. Demotions 4. Tranfers 5. Worksharing 6. Retirement 7. Natural attrition 8. Retraining Fast Fast Fast Fast Fast Slow Slow Slow High High High Moderate Moderate Low Low Low IRWIN • a Times Mirror Higher Education Group, Inc., company, 1997

  4. Strategies for Avoiding an Expected Labor Shortage Strategy Speed Reversibility 1. Overtime 2. Temporary employees 3. Outsourcing 4. Retrained transfers 5. Turnover reductions 6. New external hires 7. Technological innovations Fast Fast Fast Slow Slow Slow Slow High High High High Moderate Low Low IRWIN • a Times Mirror Higher Education Group, Inc., company, 1997

  5. Reasons for Downsizing • Need to reduce labor costs • Reduced need for labor due to technology • Reduced need for professional staff due to mergers • Changes in facility locations IRWIN • a Times Mirror Higher Education Group, Inc., company, 1997

  6. Reasons for Downsizing NOT Living Up to Expectations • Long-term negative effect when improperly managed • Loss of valued human assets • Survivors become narrow-minded and risk-adverse IRWIN • a Times Mirror Higher Education Group, Inc., company, 1997

  7. Advantages of Employing Temporary Workers • Increases organizational flexibility • Acts as a source of permanent hires • Reduces training and orientation costs • Brings objective (outside) perspective to firm IRWIN • a Times Mirror Higher Education Group, Inc., company, 1997

  8. Disadvantages of Employing Temporary Workers • Tension between “temps” and full-timers • Outsourcing can have long-term negative consequences IRWIN • a Times Mirror Higher Education Group, Inc., company, 1997

  9. Renewal Model Calculations Number promoted from salary level B Particular Salary Level D C External recruits to salary level Losses from salary level change in staffing E Internal promotions to salary level To meet these needs, recruit from D + E Requirements for a staffing level B + C + change in staffing =

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