Chapter 3 Flashcards
What is human resource planning (HRP)
Is a strategic and proactive process used to determine future human resource requirements and business processes that will be needed to support and enable those resources
- Helps identify what human resources are neded to ensure that the organiozarion can respond to change and respondd effectively
- The objective is to ensure the organization has the right people with the right skills at the right time in order to fulfill organizational goals.
- Helps create the right environment and enable and motivate people to do the right things.
What is the link between strategic HR planning and organizational goals?
- Strategic HR planning helps managers anticipate long-term needs of people and processes.
- Tactical activities (e.g., new systems, inventory management) require proper short-term staffing to align with long-range goals.
- HR planning is crucial to managing human capital in alignment with organizational strategy.
What are four levels of sophistication when it comes to HR planning?
1) No formal planning: HR is reactive
2) Basic planning: planning is a mix of proactive and reactive, focoused on short term needs
3) Advanced planning: making a direct connection between organizations strategy and HR strategy.
4) Sophisticated planning: senior HR professionals are integral to the organizations strategy
What are the 5 steps of human resource planning process?
1) Forecast demand for resources (how many, when where do we need human resources)
2) Assess supply of resources (labour resources internal and external)
3) Develop HR objectives (what planners expect to accomplish)
4) Design and implement wokforce systems to balance demand and supply
5) Establish and condust evaluation
What is forecasting labour demand?
Oragnizations continually have a changing environment with too many or not enough employees (people are rerely in a state of being perfectly balanced). They must have a clear understanding of what they need in terms of employees, what they have and the difference between the two.
HR forecasting considers the factors that cause demands to change and attempts to predict an organizations future demand for employees.
What are some causes that will drive organizations demand for human resources?
need for employees (many options)
- Strategic plan (where is the firm going? number and type of employees needed)
- Demographic impacts (consider the desired demographic profile and the unconscious biases of hiring managers)
- Turnover (be prepared to understand and predict employee departures)
- Legal changes (easy to predict but implications are not clear)
- Technological changes (Not easily predicted impacts Ex: skilled employeees or less jobs needed for manual tasks)
- Competitors
- Budgets and revenue forecasts (increases or cuts in the budget)
- New ventures (mergers or acquisitions cause immediate revision human resource demand)
- Organizational and job design (roles created or eliminated)
What are examples of forecasting techniques for estimating human resource demand?
- Expert forecasts
- Trend forecasts
- Other: Budget/planning analysis, new-venture analysys, simulation models
What is an expert forecast? What are the two techniques that can be used?
Relying on people who are knowledgeable to estimate future human resource needs.
1) Expert group work together through pool, questionnaires, and group discussions like Nominal Group Technique (presents a group of managers with a problem statement, everyones ideas are shares and votes on 5 best answers)
2) Deliph Technique: Surveing managers and others who have experience in the industry and using HR planners as intermediaries to summarize various responses and report findings back to experts, experts are serveyed again and again until agreement begins to develope.
What is a trend projection forecast? and what are the two simplest methods?
Projecting past trends to predict future trends. (inaccurate for long range, quickest technique)
1) Extrapolation: extending past rates of employee growth change into the future
2) Indexation: matching employee growth with a selected index such as the ratio of production to sales employees
What are some of the other methods for estimating demand for human resources?
- Budget and planning analysis (short run estimates)
- New-venture analysis (comparison with firms that perform similar operations)
- Simulation and predictive models (mathematical formulas and algorithms)
What is a staffing table? and what does it summarize?
A list of anticipated or approxamated openings for each type of job in the business and summarises forecasts of job needs short and long-term (only approximations)
Once HR department makes forecasts about future human resource demands from what sources will they fill projected job openings?
Internal supply: Present employees who can be promoted, transfered or demoted to meet anticipated needs (audit present workforce)
External supply: Talent from outside the organization
What are some of the ways companies audit internal employees to estimate if they can fill job openings?
1) Skills inventory: Brings together data about specific employees (skills/abilities/potentials/faults) planners learn about skills and abilities of current employees but it must be updated regularly.
2) Management and leadership inventories: Management or leaderships capabilities data
3) Replacement charts/summaries: visual representation of who will replace who (summaries supplies more data than charts)
What is Markov Analysis?
Forecast of a firms future internal human resource supplies, using transitional probability matrices reflecting historical/expected movements of employees across jobs (rank) in the company by multipling probability it by the number of employees in each job to forecast the number of people who will remain in the job at the end of the year.
- Easy to use
- Approprate for medium size companies
When would a company need to fill a position with external talent?
- When internal employees dont have the correct skills/experiance to fill the roles
- Entry level opsitions are needed
