Strategic Human Resources Management and Planning 33
will be eligible to retire. The Senior Executive Service (SES), estab-
lished by the Civil Service Reform Act of 1978 and effective in July 1979,
is designed to improve the executive management of the government
and to select and develop a cadre of highly competent senior executives
with leadership and managerial expertise. Approximately 60 percent of
federal jobs are in professional and administrative occupations, which
implement the predominantly knowledge - based work of the government
(Nelson, 2007; Partnership for Public Service, 2005). Montgomery County,
Virginia, estimates that 50 percent of its senior managers will be eligible
for retirement in 2010 (Ibarra, 2006; Turque, 2006).
Across the United States, there is a concern that city manager posi-
tions will go unfi lled as increasing numbers of city and county managers
retire. As far back as 2002, 43 percent of city and county managers were
between the ages of fi fty - one and sixty (Blumenthal, 2007). A survey of
New York businesses found that six in ten surveyed reported it is likely that
their organizations will face a shortage of qualifi ed workers in the next fi ve
years (Bridges & Cicero, 2007).
Impending retirements are not the only reason for public orga-
nizations to implement SHRM. SHRM is also important for public
and nonprofi t agencies facing layoffs and job cuts. State and local gov-
ernments across the country are facing severe revenue shortfalls and
are planning to eliminate funding for many programs and services.
The strategies they are using to balance their budgets are to reduce or
eliminate services, lay off employees, and increase and institute user
fees for many of the services that will remain. Individuals remaining
after the layoffs need to possess the requisite knowledge, skills, abilities,
and other characteristics (KSAOCs) to keep the programs and services
operating effectively.
This chapter discusses SHRM, the changing role of HRM, and
human resources planning and illustrates the importance of all these con-
cerns to organizational vitality and success.
The Changing Role of Human Resources Management
Public, nonprofi t, and for - profi t organizations are facing some daunting
challenges. For HRM departments to play a strategic role, they must focus
on the long - term implications of HRM issues. For example, how will
changing workforce demographics and workforce shortages affect the
organization, and what strategies will be used to address them?
