Ch 6: ASCERTAINING HR SUPPLY Flashcards
Internal supply
Existing employees who can be retrained, promoted, transferred or redeployed to fulfil future HR needs
External Supply
Members of the workforce not currently employed in the organization
Why would companies want to hire from within instead of externally?
- Current employees already understand company culture
- Employer already knows worker skills and performance (from HR)
- Internal labour markets provide employees with protection such as economic downturns
Employee Segmenting
- The grouping of employees based on characteristics relevant to the employee experience
- Career preferences, demographics, work/life preferences or benefit
Three questions to understand and influence supply internally
What are the critical human capital segments? Which activities bring value to customer
What response do we need from each of these segments?
What features of the employment deal create the best response at the lowest cost
Skills Gap
Human capital available inadequate to meet the present hr demands
HR Supply Programs
- Employers influencing supply
- Other labour pools
- Influence of Govt programs
- Hr Retention Programs
Role of employers in influencing supply
- Redesigning job perception
- Change working conditions
Other labour Pools
- Choosing minority/stigmatized groups
- disabled,
Influence of Govt programs
- professional programs for specific areas- nurses, teachers, STEM professionals (they provide subsidies for students to pursue the programs also)
HR Retention Programs
- creating an enjoyable working atmosphere
-designing meaningful jobs
- Compensation systems that can be traced to performance and is based off of clearly communicated standards
-attractive work arrangements- flextime, cafeteria, transportation allowance/provisions
Mass customization in HR
The ability to customize HR practices at the employee level efficiently and at a low cost
Methods for Modellng Supply
Skills and Management Inventories
Markov models
Linear Programming and Simulation
Movement Analysis
Vacancy model
Skills inventory
An individualized personnel record on all employees except managers/professional position
Information contained in a skill inventory
Personal info
Education, training, skill competencies(certification, diplomas, areas of specialization)
Work history(D.O.H, seniority, previous jobs held in organization)
Performance ratings- numerical score of performance
Career information- future job desired, those recommended by supervisors
Hobbies and Interests: community impacts, volunteerism, willingness to relocate
Management Inventories
Individualized personnel record for managerial, professional, or technical personnel- has specialised duties, responsibilities, accountabilities
Info included in management inventories
History of management.professional jobs held
Record of management/professional training courses and dates of completion
Key accountabilities for the current job( no of subordinate, org resources)
Assessment centre and appraisal data
Professional and industry association memberships
Markov Model
A model that produces a series of matrices that details the various patterns of movement to and from the various jobs in the organization.
When considering employee movement patterns in the organization, there
are five mutually exclusive states in which an employee can reside:
- Remaining in the current job
- Promotion to a higher-classified job
- A lateral transfer to a job with a similar classification level
- Exit from the job (e.g., termination, layoff, voluntary leaving by the employee)
- Demotion (which is relatively rare)23
The markov model is refered to as a ___________ or ____________ model
probabilistic or stochastic model
Steps to using the model
- Collect historical data on mobility rates between jobs in the org
- Develop matrix based on the data to forecast future movement
- Use forecasts to analyse HR policies and programs and instigate necessary measures.
Transitional Probability
The proportion of employees who have historically resided in a given employment state/number of employees in the job currently
Markov give great value in finding the following
- number of employees who move annually
movement patterns for promotion, termination, transitions
Linear Programming
Acomlex mathematical procedure used for project analysis in engineering and business
Use of linear programming in HR
allows us to determine the future supply of human capital based on achieving the best staffing outcome while taking into account certain constraints such as labour costs.
How to use linear programming
- make assumptions similar to regression analysis- model must have variables with linear relationships
Simulation relaxes need for linear relationships, but at the expense on the greater dependency on the algorithms
Movement analysis
Tehcnique used to analyze ripple effect that promotions or job losses have on the movement of other employees in org
Details on movement analysis
Conducting at the departmental level , analysis considers change in staffing levels and calculates losses requiring replacement, avoiding double-counting
Vacancy Model
Aka- renewal or sequencing model
analyzes human capital flows throughout the organization by examining inputs and outputs at each hierarchical or compensation level.
Substitution and other GAP strategies
- Outsourcing the outstanding need
- focusing on retention strategies
- increasing training and development to build internal pool
Bullwhip effect
- estimated supply becomes inflated along the supply chain
- clothing store gives an estimate, but adds on more to be safe, and higher up it goes the more is added on “to be safe”
How to manage bullwhip effect
- (1) estimate the amount of error in forecasting, (like setting a margin of error like in poll voting)
consider the costs of underestimates versus the costs of overestimates. this determine what is really “safe”
