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Labour market analysis


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Labour market analysis

  1. 1. Part 2 Support Activities Chapter 03: Planning McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.
  2. 2. Organization StrategyOrganization Strategy HR and Staffing StrategyHR and Staffing Strategy Staffing Policies and Programs Staffing System and Retention Management Support Activities Legal compliance Planning Job analysis Core Staffing Activities Recruitment: External, internal Selection: Measurement, external, internal Employment: Decision making, final match Organization Mission Goals and Objectives Staffing Organizations Model 3-2
  3. 3. 3-3 Chapter Outline  External Influences  Economic Conditions  Labor Markets  Technology  Labor Unions  Human Resource Planning  Process and Example  Initial Decisions  Forecasting HR Requirements  Forecasting HR Availabilities  Reconciliation and Gaps  Staffing Planning  Staffing Planning Process  Core Workforce  Flexible Workforce  Outsourcing  Diversity Planning  Demography of the American Workforce  Business Case for Diversity  Planning for Diversity  Legal Issues  AAPs  Legality of AAPs  EEO and Temporary Workers
  4. 4. 3-4 Ex. 3.1: Examples of External Influences on Staffing
  5. 5. 3-5 Labor Markets: Demand for Labor Employment patterns Demand for labor is a derived demand Job growth projections Employment growth projections KSAOs sought KSAO requirements  Education levels Survey of skill deficiencies Critically required skills
  6. 6. 3-6 Labor Markets: Supply of Labor  Trends in supply of labor  Quantity of labor - Exh. 3.2: Labor Force Statistics  Labor force trends relevant to staffing  Growth  KSAOs  Demographics  Other trends ???  KSAOs available  Educational attainment  Literacy  Motivation
  7. 7. 3-7 Labor Markets: Other Issues Labor shortages and surpluses “Tight” labor markets “Loose” labor markets Employment arrangements Full-time vs. part-time Regular or shift work Alternative employment arrangements  Exh. 3.4: Usage of Alternative Employment Arrangements and Contingent Workers
  8. 8. 3-8 Technology Reduces demands for some jobs Replacement for labor Makes products or services obsolete Increases demands for others Change in market composition New product development Changes in required skills
  9. 9. 3-9 Labor Unions Trends in union membership Percentage of labor force unionized Private sector unionization rate Public sector unionization rate Contract clauses affecting staffing Impacts on staffing “Spillover effects”
  10. 10. 3-10 Labor Unions: Contract Clauses Affecting Staffing  Management rights  Jobs and job structure  External staffing  Internal staffing  Job posting  Lines of movement  Seniority  Grievance procedure  Guarantees against discrimination
  11. 11. 3-11 Overview: Human Resource Planning Process and Example Initial Decisions Forecasting HR Requirements Forecasting HR Availabilities Reconciliation and Gaps
  12. 12. Ex. 3.5: The Basic Elements of Human Resource Planning 3-12
  13. 13. Ex. 3.6: The Basic Elements of Human Resource Planning 3-13
  14. 14. 3-14 HRP: Initial Decisions Strategic planning Comprehensiveness Linkages with larger organizational mission Planning time frame Job categories and levels What jobs will be covered by a plan? Head count (current workforce) Roles and responsibilities
  15. 15. 3-15 Human Resource Planning  Reconciliation and Gaps  Coming to grips with projected gaps  Likely reasons for gaps  Assessing future implications  Action Planning  Set objectives  Generate alternative activities  Assess alternative activities  Choose alternative activities
  16. 16. 3-16 Staffing Planning Process Staffing objectives Quantitative objectives Qualitative objectives Generate alternative staffing activities Staffing alternatives to deal with employee shortages and surpluses
  17. 17. Forecasting techniques Future human resource needs can be determined by some methods Forecasts are mathematical or judgemental
  18. 18. Judgemental methods 1. Managerial estimates: -future staffing needs based on past experience -made by top level management or middle level and lower level together 3-18
  19. 19. 2. Delphi technique: -panel of experts -each expert independently estimates future demand -a mediator presents each expert’s forecast to the others -experts can revise their comments -process continues till agreement between all experts 3-19
  20. 20. m Scenario Analysis: -scenarios are developed in brainstorming sessions (by operating and hr managers) -5 or more years scenario is done Benchmarking: - Deeply examines the company’s internal practices and processes and measures them against successful company practices 3-20
  21. 21. Mathematical or statistical methods Time-series analysis: -past staffing levels indicate future requirements (moving average, exponential smoothing or regression technique) Regression analysis: -past study of work load indicators like sales, production levels are studied -linked with staffing levels 3-21
  22. 22. Productivity ratios: Historical or past data are used to examine past levels of productivity index P= Workload/ No. of People 3-22
  23. 23. Ex. 3.14 Staffing Alternatives to Deal With Employee Shortages 3-23
  24. 24. Ex. 3.14 Staffing Alternatives to Deal With Employee Surpluses 3-24
  25. 25. Exhibit 3.15 Internal Versus External Staffing 3-25
  26. 26. 3-26 Staffing Planning: Flexible Workforce Advantages Disadvantages Two categories Temporary employees  Staffing firms  Exh. 3.16: Factors to Consider When Choosing a Staffing Firm Independent contractors
  27. 27. 3-27 Staffing Planning: Outsourcing Advantages Disadvantages Special issues Employer concerns regarding working conditions Loss of control over quality Offshoring
  28. 28. 3-28 Diversity Planning  The American workforce is highly diverse  Women make up ½ the labor force  Immigration  Civil Rights Legislation  Age Business case for diversity strategies Expanded talent pools Better understand diverse customer base Enhance creativity of teams Reduce turnover
  29. 29. 3-29 Diversity Planning  Planning for diversity Recruiting activities  Selecting schools and colleges to recruit from  Show commitment to diversity in recruiting efforts Selection activities  Eliminate requirements not related to job performance  Include objective standards for judging candidate qualifications