Strategic Forecasts And Staffing Formulation
Steven W Speakman
MAN674GH3-107022018: Global Human Resources Management
Dr. Gerald F. Sullivan
An organization that has a success recruitment process puts the hiring manager and the new hire in the best possible position to hire quickly and efficiently as possible and provide the new hire with a great candidate experience. Hiring managers, line managers, talent acquisition, the new hires themselves and various support teams must work together effectively to drive the end to end process. It is important to keep in mind that the end to end recruitment process takes you from requisition approval to creation of the new hire record and through to the new hire starting in the organization. Managers and talent acquisition must work together with human resources (HR) to the ensure the following is met:
Ensure all prerequisites are completed to be able to hire;
Partner with talent acquisition to support sourcing and selection of candidates;
Engagement of candidates through offer and preboarding to ensure a great candidate experience;
Ensure that everything is ready for the new hire to hit the ground running.
The sourcing forecasts and staffing formulation is triggered by a hiring manager that identified hiring needs based on attrition, growth, or transformation. With this case study, Bosch is looking at staffing current needs as well as future needs along with planning for the addition of the subsidiary in Kazakhstan. In order for any business to recruit internally or externally they must follow the appropriate process that the business unit defines to allow HR to commence activities based on an executive’s behalf. A detailed staffing plan is required for the Bosch executive and managerial planning that will use strategic forecasting to plan for additional staff that may be required. The annual global executive staffing needs for the selected country are derived from each division’s long-term strategic planning activities, CITATION Dow13 l 1033 (Dowling, Festing, & Engle, 2013). Therefore, HR is required to support the staffing plan and delivering the full end to end recruitment service from sourcing to offer management and will also support and guide the executives through the hiring process when needed.
Workforce planning is the process of predicting an organization’s future employment needs, as well as the availability of current employees and external hires to meet those employment needs, develop talent capabilities, and execute the organization’s business strategy. For Bosch to carry out their executive and managerial planning for their subsidiary in Kazakhstan, they will start their workforce planning process that typically includes five steps, CITATION Lee17 l 1033 (Lee, 2017):
1. Identify the business strategy and competitive advantage. A firm’s strategic vision, mission, and strategy affect current and future staffing requirements by influencing the types and numbers of employees needed. It is also important to understand the behaviors and skills your company needs from employees to execute its business strategy so that you can enhance these behaviors through talent management.
2. Articulate the firm’s talent philosophy and strategic staffing decisions. Firms differ in their commitment to tasks such as promoting workers and retaining workers as well as in their preference for hiring people with certain skills or training them after they are hired. Because these factors influence the nature of the firm’s future labor supply and the type of workers it will need, they are important to understand when forecasting and planning.
3. Conduct a workforce analysis. Forecast both labor demand and labor supply and identify any gaps between the two.
4. Develop and implement action plans. Develop action plans to address any gaps between labor-demand and labor-supply forecasts. The action plans should be consistent with the firm’s talent philosophy. If not, the talent philosophy should be refined to close the gaps. Action plans can include recruiting, retention, compensation, succession management, and training and development. Action plans can be short-term or long-term, depending on the firm’s needs and the predictability of the environment. Organizations usually develop both short-term and long-term plans, and review and update the long-term plans based on external and internal changes. Action plans to address aging workforce issues, or workforces that have a disproportionate number of similarly aged employees, may need a longer time frame, as would a strategy to redesign benefits and compensation to retain employees in tight labor markets.
5. Monitor, evaluate, and revise the forecasts and action plans. Evaluate the effectiveness of the workforce plan in meeting recruiting and hiring goals. As the environment changes, forecasts and action plans may need to change.
Forecasting is not an exact science and it is rare for a forecast to be exactly right. Given this uncertainty, it is usually best to construct estimates as a range, providing low, probable, and high estimates. Recalculate estimates as changes happen in Bosch’s internal and external environments and as the firm’s relevant assumptions and expectations change. Although creating forecasts and plans is easier when organizations are stable and more challenging when a company faces rapidly changing conditions such as an acquisition as is the case with the subsidiary in Kazakhstan. Planning is most valuable for firms experiencing or bracing for the experience with rapid change because of the greater need to guide actions in the face of uncertainty. The time frame for workforce planning should reflect the length of the business planning cycle. Business plans typically have both a long-term (i.e., three to five years) and a short-term aspect like a new acquisition. Workforce planning typically reflects both time frames. Short-term workforce planning involves the necessary sourcing, recruiting, development, and separation activities to be accomplished in the coming year, although these short-term actions should also support the long-term human resource and staffing strategies. Therefore, forecast the organization’s demand for labor given its forecasted business activity and business needs, which depend on Bosch’s business strategy.
One of the most important external forces affecting Bosch’s staffing policies and practices is the legal system. Virtually every phase of staffing starting with recruitment through selection, then moving to compensation through termination, and from performance appraisal through promotion or salary increase is covered in some manner by international business and trade laws. In addition, the labor code of the Republic of Kazakhstan will need to be followed when staffing for this subsidiary, CITATION Emp181 l 1033 (Employment and Labour Law: Kazakhstan, 2018). For Bosch’s headquarters, there are common law provisions that are required to be applied to different aspects of staffing. The result is a plethora of legal complexities with which human resource professionals must deal with.
The success for Bosch’s Kazakhstan strategic forecast and staffing formulation from their executive and managerial planning will be based on how well the company can integrate with human resource management. It is logical to assume that Bosch must focus on its strategic, financial, and technological capabilities to compete successfully. It is vastly important that these capabilities are supplemented with organizational capabilities generated by attracting, retaining, motivating, and developing talented employees, CITATION Rot11 l 1033 (Roth, Switzer III, Van Iddekinge, & Oh, 2011). Organizations that pursue different competitive strategies require different staffing strategies to execute them. Bosch must continually invest in their hiring practices to ensure they have the correct strategy in place to fulfill all their staffing needs to foster creativity and risk-taking among high performing employees, CITATION Han13 l 1033 (Hansen & Alewell, 2013). Acquiring, developing, and retaining the right talent helps to create the organizational capability and intellectual capital that drives business strategy execution. Successful business strategies are grounded in creating and maintaining a sustainable competitive advantage, which exists any time an organization has an edge over rivals in attracting customers and defending itself against competition. Hiring and retaining the right people are critical to business strategy execution, because it is an organization’s people who are responsible for gaining and keeping a competitive advantage, CITATION Gag09 l 1033 (Gagne, 2009). Because staffing influences the skills, motivations, and interests of Bosch’s employees, unintended strategies may emerge within the organization as employees exercise their interests and skills. These emergent strategies can open new market opportunities and influence future business strategy, CITATION Chi05 l 1033 (Chitakornkijsil, 2010). Therefore, Bosch’s recruiting focus for their subsidiary in Kazakhstan should be on identifying and attracting the best and brightest talent to support this part of their business.
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Employment and Labour Law: Kazakhstan. (2018). Retrieved from HG.org Legal Resources: https://www.hg.org/legal-articles/employment-and-labour-law-kazakhstan-35532
Gagne, M. (2009). A Model Of Knowledge-Sharing Motivation. Human Resource Mangement, Vol. 48, No. 4, 571-589.
Hansen, N. K., ; Alewell, D. (2013). Employment systems as governance mechanisms of human capital and capability development. International Journal of Human Resource Management, Vol. 24, No. 11, 2131-2153.
Lee, R. (2017, February 27). What are the steps in workforce planning? Retrieved from careerminds: http://blog.careerminds.com/blog/what-are-the-steps-in-workforce-planning
Roth, P. L., Switzer III, F. S., Van Iddekinge, C. H., ; Oh, I.-S. (2011). Toward Better Meta-Analytic Matrices: How Input Values Can Affect Research Conclusions In Human Resource Management Simulations. Personnel Psychology, 64, 899-935.