[TM] L5: Workforce Planning

Workforce Planning

Ensuring that the right people with the right skills are in the right place at the right time to meet an organization’s goals.

Workforce Planning

A systematic process of identifying, acquiring, developing, and retaining employees to meet the needs of an organization.

Workforce Planning

The “strategic” element denotes the integration between ____________ and an organization’s strategic plan—its mission, goals, and objectives.

Organizational Structure

Outlines the hierarchy within an organization and describes the roles, responsibilities and lines of command that exist to achieve the organization's business goals.

Functional, Divisional, Matrix, Flat

What are the 4 types of Organizational Structures?

Functional, Divisional

What are the 2 types of Siloed Organizational Structures?

Matrix, Flat

What are the 2 types of Open Organizational Structures?

Functional Organizational Structure

This organizational structure is organized based on the company’s key functions.

Divisional Organizational Structure

This organizational structure is organized based on the company’s key products.

Matrix Organizational Structure

This organizational structure is organized based on cross-functional teams and functions.

Flat Organizational Structure

This organizational structure is organized based on self-management and a lack of managerial structures.

Functional Organizational Structure

Organizational Structures

• People are grouped according to their area of professional competence and specialization.

• Very bureaucratic and has a top-down approach.

Functional Organizational Structure

Organizational Structures

Pros of this organizational structure include:

• Establishing clearly defined roles and expectations.

• Facilitating improved performance and productivity.

• Allowing for skill development and specialization.

Functional Organizational Structure

Organizational Structures

Cons of this organizational structure include:

• Creating barriers, or silos, between functions.

• Limiting employees’ communication and knowledge with other departments.

• Inhibiting collaboration and innovation.

Divisional Organizational Structure 

Organizational Structures

• Groups are organized according to the projects, or products the company focuses on.

• Structure is more flexible to the hierarchical organization.

Divisional Organizational Structure 

Organizational Structures

Pros of this organizational structure include:

• Allowing divisions to work independently.

• Meeting individual divisions' needs more quickly and specifically.

• Promoting focus on specific products or services.

Divisional Organizational Structure 

Organizational Structures

Cons of this organizational structure include:

• Duplicating resources or activities.

• Decentralizing decision-making.

Matrix Organizational Structure

Organizational Structures

• Blends elements of a functional and divisional structure

• Resembles a grid in which employees with similar skills are grouped together and report to more than one manager.

Matrix Organizational Structure

Organizational Structures

Pros of this organizational structure include:

• Enabling a flexible work environment.

• Fostering a balanced decision-making process.

• Promoting open communication and shared resources across the business.

Matrix Organizational Structure

Organizational Structures

Cons of this organizational structure include:

• Creating confusion about authority.

• Tracking budgets and resources can be difficult.

• Limiting efficiency of key performance indicators (KPIs)

Flatarchy Organizational Structure

Organizational Structures

• Born from the startup way of acknowledging more independence and autonomy for employees.

• Employees are given more responsibility and decision-making power without the usual hierarchical pressures or supervision, and can often be more productive.

Flatarchy Organizational Structure

Organizational Structures

Pros of this organizational structure include:

• Reducing budget costs due to a lack of middle management.

• Building relationships between staff and superiors.

• Facilitating a quicker, easier decision-making process

Flatarchy Organizational Structure

Organizational Structures

Cons of this organizational structure include:

• Requiring extensive planning to be effective.

• Causing confusion over who makes decisions.

• Requiring contingency plans to resolve conflicts.

Definition and clarity of roles, Goals alignment, Culture development, Productivity that uses people in the best possible way, Efficiency in the allocation of resources, Better decision-making processes

6 Important Points about an Organizational Structure

Work Specialization, Departmentalization, Formalization

Impact of organizational size on structure and design (3)

Supply Analysis, Demand Analysis, Gap Analysis, Solution Analysis, Monitoring and Evaluation

What are the 5 steps in Workforce Planning?

Talent Inventory, HR Forecast, Action Planning

What are the 3 components of effective workforce planning?

Talent Inventory

Components of an Effective Workforce Planning

To assess the current available resources and analyze current role of employees.

HR Forecast

Components of an Effective Workforce Planning

To predict HR requirements considering the following:

• headcount

• skills mix

• internal versus external labor supply

Action Planning

Components of an Effective Workforce Planning

To enlarge the pool of qualified individuals by recruitment, selection, training, placement, transfer, promotion, development and compensation

Productivity Ratio

Components of an Effective Workforce Planning

• A measure of how much output (goods or services) a worker or organization produces per unit of labor.

• Includes Input and Output.

Input

Productivity Ratio

Can be measured in terms of the number of hours worked, the number of workers, or the amount of capital invested.

Output

Productivity Ratio

Can be measured in terms of revenue generated or in physical units produced.

Strategic Basis for Decision Making, Anticipate workforce needs rather than react to surprises, Contingency planning, Provide better understanding of the areas of the workforce that needs to be strengthened, Creates a connection between mission, strategic plans, and human resource needs

What are the 5 Benefits of Workforce Planning?