HR STRATEGY AND PLANNING - HRM Lecture 02

so we started talking with HR strategy and planning so my first question is we gonna talk about a company strategy now you will hear this term multiple times during studies in your career for attitude the question here is how is the company strategy related to HR strategy this question must sound very ver to you yeah what does that mean I'm going to talk about this as part of an HR strategy which company functions should be of highest priority to talk about the question what which is more important research and development marketing sales what is of highest importance now that's a really key aggression and then the next question is can we predict or in other terms can we plan how many people of what kind a company needs in the upcoming years of course there are some methods and I'd like to share with you some of the most important methods okay but let's start with the first question here are some strategies or sometimes we also name it strategic priorities the question is what is of highest priority for a company what I've shown you here are five different strategies and I try to assign companies where we know or at least I think that this should be the strategy is particular company again what is tragically what is strategy sir a plan it's about the future it's a long-term plan a strategy is not about what I do tomorrow the strategy is about what I do in the upcoming years 5 10 15 years right so strategy is always long-term and it's in the future but there's one important aspect which I want you to see whenever we talk about strategy there is a management thinker who said strategy means to say no I mean it's true strategy means to say no strategy means to be focused a company cannot be a leader in quality in generation in price in brain in global presence and everything companies cannot be the best in everything that's not possible you know because resources are limited once you can't be the best in everything price quality presence brand and zone you must focus ok and the question for a company is always where do we want to be strong is it we want to deliver the most innovative product yeah like like Apple or BMW or companies like harsh pharmaceutical they really differentiate themselves through innovation if you ask the CEO chief executive officer for strands faucets none of these companies what is of highest importance for our company for your company so that you will be there still in five or ten years yeah the strategy is the answer at Apple I would say because we will exist in five years because we are more innovative than the others okay they will not say because we produce products which are cheaper than those of the others no it's not about price it's about innovation vial here those companies rightfully that good is not about innovation not at all I mean this guy who founded this company he really worked long a couple of years to really define this essence which makes up the red bull but then it's it stopped changing like like coca-cola yeah it's not about innovation it's even not about price i mean it's terribly expensive it would yeah it's simply about the brand brand brand brand brand means people know us the people like us and the people they have very clear associations without without with the name with the logo and everything there's a clear promise in the market that people understand so you compare like wool with wash well tell the different priorities price there are companies out there say well we will exist in five or ten years will still exist because why because we will make it to offer products and services at the cheapest possible price again it's not about innovation yeah Aldi is not about innovation not at all it's the opposite stick to things don't change things yeah changing things is expensive yeah ah so at least our price only yeah Lyonya and it's about price only then some companies differentiate themselves against their compare through design say well we are not the cheapest one we are not very innovative but we have best design in the world for stuff all the right one quality Lufthansa why should somebody use new pencil because of falling because people say fly with Newtons are compared to climate line here a look at our German reliability they are inside good service yeah it's about quality it's not about price it's not about innovation it's not about the friend it's the same with General Electric they focus so much on quality yeah zero tolerance with regards to quality quality quality quality we produce the best possible quality or IWC Schaffhausen yeah watches about quality of course the best decide in the world but it's about quality you buy this watch one time in your life and the upcoming generation they will can use it it's not damageable it's perfect precise now what I want to show you here is whenever we talk about strategy it's about the question what is of highest importance for the company's future yeah and again compare the different brands like Ryan and Lufthansa same same industry but different priorities here's the question that company has to have like two of these companies right could be like the best yes there is it yeah I have for example Apple absolute yeah it's really innovation in design is it necessary price but is it necessary that they have innovation and design I was not necessary that also reflects the minds of the executives I mean Steve Jobs ah it was crazy about design yeah cooking love design yeah you and say the biggest problem is Microsoft is that I have no chance as well as must look good must look sexy magic design up that was Steve Jobs the other founder Steve wasn't yet it was about innovation this combination these two guys yes brother building blocks of apples having the news technology brought into the best design and this combination that was the ultimate strategic priority Apple it was never prize okay of course don't get me wrong it's not that companies that are focused on innovation don't take care about brand rise design why of course B&W they take they have designers but it's it's if you ask a sec you t'v that BMW why should somebody by BMW and not receive they will never ever say because of the design Thursday yes Spinalonga cars curved but that's not the ultimate reason yeah if it's about the Sun yeah then your ology buddy right so the first point is that you understand this term strategy you can have entire lecture BOTS like she but that's enough for us now the question now is companies have strategies these are just some terms that relate to this company like like BMW or certain strategic challenges how can we come up with a competitive evie eagle electronic vehicle how can we cope with the Chinese competition how can we become more efficient yeah to protect the climate yeah we talked about strategic priorities despite business objectives well one what do you want to be in the next ten years what is our market share in the next ten years how is the profit revenue and what our competitive advantages or in other terms what do we want to be better than the others what is our vision where do we want to be in the future these are just some terms around this term strategy huh you see it's about the future it's about challenges priorities so this is one paper the question now is what does that mean all the people okay that gives you an example look at the Deutsche telecom German telecommunication company this company was formerly owned by public yeah was a monopolist it happened like like with every monopolist they really had a lousy quality really it was bad then Deutsche Telekom's become became a normal oven yeah that need to compete against others and they defined a clear strategy ten years ago also dirty Telecom said our strategy is we will provide the best service in our industry best service at the lowest price . quality price now question to you a company like Rocha typical like any other telecommunication companies if they want to deliver the best possible quality service quality what does that mean for the employees have to work better what does that mean no guys huh okay yeah longer working out better education think of sync think and easier terms yeah here you enter a sales shop of telecom motivation motivation how do you see motivation benefits gifts and send it think about very simple things if telecom wants to deliver best possible quality the people must be friendly and they have to have a smile on their face they must respond parsley yeah if you enter a telecom shop they must be well informed about their products and their services they must be able to cope even with the most difficult client yes so these are very simple competencies yeah saying thank you yeah please okay now in the customer knowing the price if a company wants deliver as possible quality that means that people have certain she's like good knowledge friendliness empathy all these things you know and then the question is if you want to have this because it's necessary to to translate this strategy success what should we do in HR another example a similar song Deutsche Bahn verse 30 upon 20 years ago trying to the train that was a mess well there was no thank you thank you for choosing Deutsche Bahn thank you for traveling yeah thank you for traveling it was no thank you no please nothing that was really worse yeah when the train finished the message was eyeless all shaken it's wrong it means I lik o string I listen I listen okay all out you know there was a German term used by the deutsche bahn people it was not the guest you were a total but logistic case so just it's really worse stop but don't you bond really did a lot to say well we want to compete in the market we have to increase our service quality so let me throw the people if they have to be motivated to be friendly they have to be able to be friends yeah they won't be friendly they can be friendly racin during the world championship soccer the Dutch Japan said well we have a lot of thousands millions of foreign guests striving now trying so the people in the train language must be able to speak English since then you hear this message thank you for traveling such abundant before 2006 there was no English match started from 2006 with a world championship that meant no masculist we have to have employees which are able to speak English that meant on each are such human resource management that they had to try 50,000 people in speaking e ok now you see the linkage and this is just one simple example here is a strategy is the question was that me for the people what do we have to do to have these employees which we have to have at the end of the day so your exercise is really for the preparation of the exam take any company you like yeah McDonald's Google r2 syncope I don't care and think about what is the strategy of this company and if this distr deceive the company what does that mean for the people and if this is what it means for the people what must HR have to do in terms of training coogee layoffs or other things sorry but may ask you can check the national okay got it wait went from that from that to it like no no no and he hit hit the blackboard and E company the world when I think of mid-sized companies here in the blackboard for many companies they have very specific challenge strategic challenge they have to expand to Asia for it if this is a strategy to to expand to grow to follow your customers that means that employees must be able to work on a global basis it's much smaller just talking to speaking range with the cultural skills and so on yeah doing business in China do it to ensure this you must do something in a jar you can always apply this this this this logic it's it's quite simple now there is a next idea which is really important before we come to the next idea about how to translate a strategy into an HR strategy ah here you see an overview of the most common functions in companies and probably you know about most let let me let me say some comments about prorack minutes this is a function where people think about the products in the future all the existing products yeah in a company like Procter & Gamble for instance you have hundreds of products and for every product there somebody was responsible for this toothbrush yeah okay so product management is about thinking what should we do in the future which products will we'll be successful in the market which are demanded and so on and then we have R&D which means research and development fossil wood and pickle research and development there you primarily find scientists and BMW you have you are in the department they do research about how to build engines which are more efficient than Department now or in the pharmaceutical industry you have a lot of researchers okay and then beside know how much the product look like and then production blanket how do we produce it where do we produce the product and then the actual production engineering where the products are produced and then we have marketing okay some would say marketing must be at the beginning we don't care marketing the four piece what is the price of the product how to promote the product and all these things and then of course sales see how to sell the product not only doing marketing communicate going to sell it is tributed yeah and for the big appliance we have some things you call a key account management key accomplishment a key account he account is very big important client yeah and there are key account managers taking care for the relationship to these very important clients and then we have servicing support you have problems with your car okay call the service and support department hotline call centers and there are some functions which support these cool functions quality management yeah ITT controlling accounting you know better what that is a charge was facility myself public relations communications purchase and make off principally careful shaving products material machines which here is when the logistics and above all we have management now I don't care whether or not you understand these different functions yeah my question is what is the most important function don't say HR it's definitely not research and development yes of course research and development is the most important part because if they don't do well I mean you cannot be innovative you will not come up with latest products you cannot compete with innovative products and so Rd is the most important function do you all agree definitely into the human factors strategy and we will see that for Red Bull already are laughing because fish not needed actually this is something else we can talk so I think it just dissolves on the company it's not like there is no question that I can say that this is the most important function no nothing sir yes you don't have to yell actually but a function is something that works not only for one time that works all right yeah you know taking get rid of this but important because even if you have the most useless for us in the world if you have right marketing right commercial yes yes so if you have the best product in the world ah if you don't have a proper marketing you lose yeah of course yeah are even if you have the lousy product with a good marketing you still can do work you still can win yes of course marketing is the most important function your cell phone like a timetable like 14 of oh yeah like are you a life-sized the lifecycle abroad if you have functions yes my lord it's nothing that's interesting that it's very rigid juice like this yeah at some point our ID is the most important but then if they got that job within the chopper all protective ready yeah which is the most important you also can say it's silly question because every function is important if a function is not important it wouldn't be there and can you imagine a company like BMW without design can you imagine a company like BMW without IT know without purchase no you have to add all these functions it's a silly question the thing about what is the most important that you're all involved that's a perspective but you can also could be that everything is of equal importance so there must be something which is more important than the rest I guess we can categorize the core functions as being vital and not so vital research and development obviously is vital if you don't have seed let's say or you need to start with something and you can live without marketing your products than a stock it's not going to sell but you're still going to have something to sell so I guess research development in my opinion definitely starts the chain of importance and continues on with other things okay or may not live with okay good very good I agree I think even though marketing we need to do research first like which is our target group and not at what time product do we need to deliver to them and the first comes R&D and marketing but without in the only so-called supported options like IT Rd commuting start that's right working that's why I teach the most important function because with IT the ITU take care for they that's like a nerve system of a company yeah down IT and the company will stock yep I would say is thank you thank you absolutely you have a wonderful already wonderful marching hey somebody has to produce yourself yeah if you don't have this production manufacturing assembly you can forget about there is somebody has to produce this car yeah and this is where the the value is created in the production not on the paper and not on the ad it's in the production you all right that's why production is the most important function confused huh now let's stop this here ah I think you really depends on it is something I really want you we spoke about strategy different strategic priorities there is a company which is which is a which is focused on innovation if innovation is the strategic priority of a company which function is the most important one already if it is print which function design marketing marketing if it is price sale soon purchase right if you can purchase material and machine she puts low chorus and you can sell your products at a low price yeah absolutely if you look at Aldi they must have strong purchase department yeah the best purchases in the walls are maybe okay so this is something which I want you really to to understand them and this leads me to this last slide for today and you must understand this light it's key what we thought about on the nozzles have now because there are functions in companies which are of high strategic relevance and there are functions which are lower strategic relevance again what does that mean you focus on innovation innovation is your highest priority then our DS of highest strategic relevance while the others are of lower strategic relevance you have to have these you have to have IT you have to have logistics and all these things may be but it's not so important yeah or in other terms question is really where do you have to have maybe the best people in the market in rnd or in marketing and design product where do you have to have the best people and where do you have to have good people this is this dimension and I really want you that I give you a name of a company a well-known company it was a question in exam question was something like Monique what might be a key function OD which function and all these apply this variety please argue we have to understand the scrunchie then what is important to this company and then tell which function is of highest importance this is something you should be able to do okay quality please whether it's right or wrong you have to be able to argue okay so that I can see that you have a mysterious idea so there is the other dimension which is talent availability availability of work in the labor market alright not how easy is it to find somebody for purchase how easy is it to find somebody for our ad for marketing so these circles here they represent functions so as you can see now there are awesome functions which are on the right side maybe on top and those are functions which are absolutely critical for the company at the same time the availability of people is low on top it's hard to find people for this for this function while the function is absolutely critical wash water focusing on innovation grading the newest innovative product in the pharmaceutical industry and they focus very much on oncology yeah it's about cancer for us it's very hard to find oncologists really scientists which are specialized on oncology cancer but it's important for us so this front on the right side it's a key function all functions on the right side are key functions teaching me important and in my sound what function would be on top that's a totally different story for you with resources than having a function here yeah well the function is necessary in or the highest importance and at the same time it's easy to find people for this function high availability ok little bit misleading and high availability this there are a lot of people in the labor market yeah function is easy to be filled easy to recruit to you because there are a lot of people out there when we love them there is a second dimension which is talent availability what does that mean you know it's it's a difference it's functions differ with regards to how easy it is to get people all right look at a company like let's say let's take a German one I'll D are you all know I'll D how difficult is it to hire and cashier Casio knows it's easy now you post an ad you collect the applications you make a choice it's done it's easy because there are enough people out there who need a job ok and there are enough people who are enough qualified for a job like this now we learned last time that in a company like this in a discounter purchase department is of high strategic relevance ah how hard is it to hire one of the best purchase managers for a company like this it's incredibly difficult okay so don't be confused here when I say talent availability hi that means that there are many people out there which you can hire it's easy while talent availability low on the top of the picture means that there are in there are not enough people out there so that a company can fill their positions okay so now when we combine these two dimensions and you look at these circles these circles represent functions you will find functions there - strategic relevance they are they are necessary no doubt about they are necessary but they are not of high strategic relevance like the cashiers right they are necessary it's easy to find people for a function like before a function like this now when we look at the other side the right hand top side you find function there which are of highest fatigue relevance they are really important for a company not only necessary they are critical you not only have to have good people on these functions you maybe need to have the best people really good people and at the same time it's very hard to find people for these functions so now here is a third time I mention in this picture is indicated by the size of the circle what does that mean the bigger the circle the higher is the future quantitative workforce demand the demand for employees if the circle is high as big it means that this company in this particular function will need to hire a lot of people in the upcoming years if the circle is small that means that this company will only hire a few people in the upcoming years okay that leads us to a second very important concept look at the circle on the left hand top side is a big one a big circle significant quantitative workforce demand at the same time the availability of talents is very very limited in the labor market okay I give you a typical example look at hospitals at least in Germany or in the Western industries in hospitals it's quite hard to hire nurses it's really hard working conditions are not so attractive compensation is low but at the same time most hospitals have the huge quantitative workforce demand so once you have this huge quantitative demand at the same time it's hard to meet this demand then we name such a function so-called bottleneck function bottleneck function German in Cusco funciona okay why is this important whenever I work with the company it's a consultant I always start with this picture always yeah because this gives me a good understanding about where the company's gains and I see where is the biggest pain where's the need because you can you match recruiting for a function like this one on the on the bottom left hand side recruiting for this function is quite easy while recruiting for such a function on the right hand top side is quite hard yeah and you have to do different things here for those functions on the left hand bottom side you just use ads why for those functions which are hard to be filled and where you have a significant demand so you have to do different things you just don't don't just use ads you have to do a lot of things we'll talk about the script in the upcoming sessions right even compensation is different compensation for a non-critical function is different than compensation for critical functions maybe for critical functions you need to pay above market average while for the others you pay market average or maybe below so this exercise has a lot of implication for everything we do in HR right so hmm this was the first step understanding what are our bottleneck functions and what are our key functions this is a starting point now HR planning starts from here a important question is how many people do we need in the future how can you really tell how many engineers we need in the future how many managers we need in the future how many cashiers do we need in the future how much purchase experts do we need in the future and the question is can we really anticipate how many people we need in the future this is related to HR planning right question to you is it possible really to say how many people we will need in the upcoming years is that possible yeah please yeah absolutely so you don't know about the environment and how it will change how will the market change market will determine the growth maybe revenue and everything so yes I would agree other thoughts stuff can have a roughly information about what would you need because as an HR manager or someone who's working in this company that's working on a strategy then you're supposed to know what are the goals that you want to achieve yes and based on that you can roughly know what would you need maybe not specifically but tell you can have an idea yeah I would agree so the point here is even though we can't predict the future precisely we have a goal now we have objectives revenue growth or whatever so once we have a goal once we have an objective the next question is to achieve these goals how many people do we need on which function right so the first step and this is a very important step for many companies is to look at their age structure and this is a this is a an example of what you can see here is how many employees or managers you have of which age right here are much difference between the employees gray bars and the managers the red bars so question to you when you look at this picture what does that picture tell us the people are relatively old especially the managers wonderful yeah what we can tell from this picture now look five five five years into the future or ten years into the future you can exactly tell how many managers how many employees will retire that's a that's a easy game or you can easily make such an H structure analysis and you can easily tell what will happen in the upcoming years so this is point one is there anything else from which we can determine the future demand so one thing is we will lose people because of retirement is there anything else where does demand come from what is lead to demand consume that means the people need things and so companies after surviving until the companies have so you have you have it you have a plan for future revenue right and maybe you you have you anticipate certain curve you will crow in the future if you say well we will grow in the upcoming years by 5% every year then we have a workforce demand yeah so the second thing as you pointed out exactly is growth what else Jaden the magnet rings three changing the megatons like many people to the Vietnam okay I would say this belongs to to grow yeah future developments things we're going to do in the future Lily to some probe yeah yeah globalization could mean that you want to enter new markets yeah in other terms that means growth yeah okay technological improvements absolutely think about telecommunication industry yeah for instance today totally different technology than in the past you have to have totally different people in the future than you had in the past because they deal with totally different services that deal was totally different technologies right even though that the chart says that we shall happen for this but not a lot of managers because people are going to promote from one stage to another so probably will have a lot of beautiful who we prepared to be managers but not mmm-hmm okay so sometimes your deaf employees is going to be like higher okay so sometimes you you look at the ratio of employees and managers yeah and maybe that's not really fit to what you really want so you have to adjust accordingly yeah let me add some other points one thing is turnover you lose people people quit that job do you know as a company do you know how many people work with the chop next year you don't exactly know it but but you can guess it from the past you can guess you have a turnover rate once you know that in the past you always lost 5% of your workforce probably you will lose 5% in the future more or less okay so this picture is a summary but we just spoken about and it's a little bit more more differentiated differentiated in the middle of this picture you see one layer of a company yeah one hierarchical layer and let's focus on this when I look at this layer let's say this is middle management to put it simply middle management and the question is how many people do we need in middle management in the upcoming years and we ask ourselves where does the demand come from we said that okay there is growth the company will grow you say will grow by 5% every year that will determine the wall force team on a calling me we have losses people retire and we know how many people will retire in the upcoming years that's a easy game we'll have to know people will leave the company voluntarily and we can guess how many people will leave but also we have promotion promotion out of this layer to the next label okay and that's it that's it so we can say it's promotion it's a tire Minh its turnover its growth yeah and at least from an academic perspective I must say it's quite easy to calculate something like this in practice it's not so easy because many companies do not have the data for doing something like this no we will talk about HR controlling in England in the next course but to give you just the kind of impression if you if you ask a company how many 30 millimetres screws do you have on stock can tell you the exact number okay they have systems supply chain management systems they can tell you the exact number if I ask a company how many people do you have some companies really struggle don't even know how many employees they have yeah that's true if you ask how many sales managers do you have they struggle really so so this is a this is a kind of visionary view yeah but again if you just take some numbers if you take future retirement if you take former turnover and you anticipate that turnover in the future will be the same once you have growth you can have at least a rough guess about the future workforce demand which can look like this this is really a very simplified example of how strategic Workforce Planning can look like okay so this is the strategic perspective very high level very general relates to the company as such now let's look at the more at a more operational level okay and here is a list of some major workforce planning methods I will not go through these methods now but want to show you two examples once we have had a look at these examples you will immediately understand what these methods really mean so this is example number one a company okay so here in the lines we have different years and in the second column from the left-hand side we have the revenue of this company so in 2003 we have six million in revenue 2012 we have around 12 million okay in the next column you see the number of salespeople I have to be more precise you find the term here FTE FTE is a very important term in HR controlling it means as indicated below full-time equivalent alright you should know this term what is a full-time equivalent I give an example and you will immediately see if you have two employees working part-time let's say 50% yeah both work half a day so to speak then you have two employees but you have one full-time equivalent okay okay so from a controlling perspective we think in terms of full-time equivalent and we don't care about how many people these are okay so here's the number of sales FTE and from there we can easily calculate the revenue per sales FTE this is simply revenue divided by the number of sales people say it's ft to be more precise okay then we have also other people people that are not related to sales so you can see from this picture that this is probably a sales company they primarily sell okay so then we have the total number of FTE which is simply the number of sales people added by by it by the others and the number of managers what can we do with these numbers we can do some things yeah I'll show you the question now is now we are in 2012 and the question is how many people will we need in 2013 yeah in the future we can tell from this numbers that there is a kind of fixed ratio to tell us that the average revenue per salesperson per sales FTE is around 200,000 okay when we look at the revenue growth in the past we can see that revenue growth is about eight percent every year and to put it simply we simply anticipate that in next year we will crow by 8 percent again maybe there are reasons to say well it's more or less depending on the market okay but we simply tell from the past how things going to be in the future okay so if revenue growth is 8% and revenue in 2013 will be around 30 million okay and now from this ratio average revenue per sales FTE we can tell that that we will probably need 65 sales FTE now we have 60 so we need five additional ft that's easy okay that's a very simple statistical method to anticipate the future there are some more things so in this picture I'll look at the the number of managers the right-hand column we can tell from this numbers that there is a span of control in this company which is around 7 span of control what does that mean it's a number of managers it's the number of employees divided by the number of managers to put it very simply yeah it's the span of control tell us how many employees report to one manager ok so if the span of control is is low then each manager has to take care only about a few people the span of control is this big managers have to deal with a lot of people in their team what is better smarty hey y-yes he said coming today not easier to treat people fairly yeah what is the doubt yeah oh yes it's expensive you have a lot of managers if you have a small kind of control you need to have a lot of managers and as we learned we could have less yeah what is the other downside of a small span of control more managers right many teams the nation between these things yes we are going to be a mess dealing with a lot of teams also the hierarchy you have a lot of hierarchical levels once you have a small span of control right many levels yeah and that means that the communication from the bottom to the top yes is much more heart than having limited levels yeah once the distance from the bottom level to the top level is smaller okay so there is no there is no clear answer which is better small span of control a big span of control okay here we have seven so we can tell from the number of required people how many managers we need in 2012 we had a lab manager next year we're going to have probably a five people so we have to have one mention more very simple very very simple okay next example my question here is how many people do we need to run a Italian restaurant Pizza yeah okay and that's a real question in a recent exam I asked the question how many people do you need to run a McDonald's restaurant yeah there was one student who said well I know it I worked there it's 12 this is not what I expect you know it's I don't care how many people work in a McDonald's restaurant I I care whether you can really calculate this can you guess it and when we talk about Workforce Planning from professional point of view I want you to see that that you can use some method that you can work with some assumptions to calculate this number okay so let's simply do this by using a method which is named the task analysis so the first thing is what we do is we we we have some assumptions some really simple assumptions and here my assumption are we have 200 guests per day okay I don't know whether this is valid reliable or not just let's simply assume this okay we have three guests per table on average so we have sixty seven tables per day the restaurant opens 15 hours a day and I assume that every guest on average has two drinks so from there I can easily tell how many times we have to do which task now we have some core tasks 67 times you have to prepare variable 67 times you have to take an order because I assume that every guest will eat in pizza do we have to we have to prepare 200 pizzas Billy 67 times we have to check with the people 67 times we have to prepare 400 tricks now the next step is I simply look at how much time do we need per task so how much time does it need to prepare a table I would say two minutes how much time does it take to take an order three minutes prepare a pizza four minutes it's it's not the total time for preparing a pizza it's really only the work time yeah in four minutes and so on so multiplying the number of tasks by by the duration per task will lead us to the right-hand column duration in hours so two hours preparing table 13 hours for preparing pizza and so so in total 28 hours but people in a intelligent restaurant they they not only do the core task they do some additional tasks they have praised operation as well this is a task but happens we have prayed some administrative tasks counting the money and so on our miscellaneous things 20% just just guessing so on top to the 28 hours we have we have 10 hours in total 38 hours working hours per day are eight hours per ftes of Italy which lead us to total 47 full-time equivalent simply 38 hours divided by 8 so if you ask me how many people do you need to run a Italian restaurant this is the answer now there are probably two reactions yeah some of you might say wow now I understand that makes totally sense no some of you might say sorry that's no restaurant works like this it's much more complicated these assumptions are wrong you can't tell that that you have 200 guests in a day you have some days where you have 100 now the day you have 3 300 so you can't assume that that to trinks per guest I mean sorry if you have a lot of students in the restaurants probably more so you could say well this is this is this is crap probably the truth is somewhere in between yeah it's much better than just guessing if you ask an HR director how many people do we need for running an Italian restaurant said I don't know uh eight or I don't know let's say six No Oh nobody would rely to say on this HR director but as soon as you use some assumptions some calculations I lead to certain numbers on top of this you can say well we assume this what with knowing that this is not really precise Oh to be saved to stare twenty percent on this and then we got to be safe okay in practice you do Workforce Planning like you do it when you plan workforce demand for projects you simply look at what will be the task how much time do we need for this task and then you come to a to an answer now let me flip back to to this small boring slide we have taught through all these methods the first one are the leading indicators what is that a leading indicator is a fixed ratio between performance and the workforce demand right it's we have so many employees there is a span of control which says that we have seven employees per manager if we have 70 employees we have to have 10 managers it's a fixed ratio or as indicated here some universities have a fixed ratio of how many professors do we need per student or how many students do we have professor ok or how many nurses in a company in a hospital per per an amount of patients okay trend analysis we had this example where we had to look at revenue development in the past and we simply anticipate that the future going to be the same we look at the trend at the past and anticipate in the future will be the same and from there we can tell the future demand they tell your restaurant example was about task analysis looking at the task analyze how much time the different tasks will require and from there recalculate the workforce demand a final one is conclusion by analogy if you really build a McDonald's restaurant on the Korean field you not always start a scratch you know you do you know it's it's we already have set up a lot of McDonald's restaurant we knew from the past from other cities how many people we need so and probably we will need the same amount of people year yeah okay you just tell from other cases from other companies how many people you need okay most importantly I want you to understand the top three methods

Channel: Armin Trost

Views: 403,565

Rating: 4.9003177 out of 5

Keywords: Strategic Priority, Strategy, Business-HR-Strategy Linkage, HR Strategy, Value Chain, Key Function, Bottleneck Function, Age Structure Analysis, Workforce Demand, Strategic Workforce Planning, Operational Workforce Planning, Planning with leading Indicators, Task Analysis

Id: rVyJXnZEp2A

Length: 67min 28sec (4048 seconds)

Published: Sat Sep 28 2013