CHAPTER 4

Question 1

Determining the net requirement for human capital by assessing the demand for and supply of human resources now and in the future.

Answer 1

HR FORECASTING

Question 2

4 skills necessary for effective planning:

Answer 2

1. COMMUNICATION SKILLS
2. QUANTITATIVE SKILLS
3. STRATEGIC SKILLS
4. PROCESS MANAGEMENT SKILLS

Question 3

Advantages of HR forecasting:

Answer 3

1. REDUCE HR COSTS
2. INCREASE ORG FLEXIBILITY
3. ENSURE LINKAGE TO THE MACRO BUSINESS FORECASTING PROCESS
4. ATTAINMENT OF DESIRED ORG GOALS AND OBJECTIVES

Question 4

Also referred to as “job specifications”, the knowledge, skills, abilities, and other characteristics that are necessary for a person to perform well in a job.

Answer 4

KSAO

Question 5

A shortage of human capital such that the organization is unable to meet its current or forecasted human capital requirements.

Answer 5

HR GAPS

Question 6

A situation in which the organization has more human capital than it requires in order to meet its current or forecasted human capital requirements.

Answer 6

HR SURPLUS

Question 7

The organization’s projected requirement for human capital.

Answer 7

HR DEMAND

Question 8

The source of human capital to meet demand requirements, obtained either internally or externally.

Answer 8

HR SUPPLY

Question 9

Suggests that it takes time for investments in human capital to produce financial or productivity-based returns to the firm.

Answer 9

HUMAN CAPITAL THEORY

Question 10

The competencies, knowledge, skills, and abilities that are held by individual employees and that are useful to the firm.

Answer 10

GENERIC HUMAN CAPITAL

Question 11

Represents the skills that employees have based on their tacit knowledge and learned from experience in the firm and through mentorship.

Answer 11

FIRM-SPECIFIC HUMAN CAPITAL

Question 12

The amount of any specific form of human capital that is available to the firm at any given time.

Answer 12

HUMAN CAPITAL STOCK

Question 13

The change in the stock of human capital over time.

Answer 13

HUMAN CAPITAL FLOW

Question 14

4 factors that affect human capital flow:

Answer 14

1. PROMOTIONS
2. LATERAL MOVEMENTS
3. DEMOTIONS
4. TERMINATIONS

Question 15

4 categories of human capital requirements:

Answer 15

1. SPECIALIST/TECHNICAL/PROFESSIONAL WORKERS
2. DESIGNATED GROUPS
3. MANAGERS AND EXECUTIVES
4. RECRUITS

Question 16

5 categories of forecasting methods:

Answer 16

1. SURVEY BUSINESS LINE
2. NORM-BASED RULES
3. TIME SERIES- AND REGRESSION-BASED MODELS
4. MATHEMATICAL AND ECONOMIC MODELS
5. QUALITATIVE MODELS

Question 17

3 types of analytical models:

Answer 17

1. TIME-SERIES MODELS
2. CAUSE-AND-EFFECT MODELS
3. JUDGMENTAL MODELS

Question 18

The process of determining the organization’s requirement for specific forms of human capital.

Answer 18

DEMAND FORECASTING

Question 19

The process of determining the source of sources of human capital to satisfy the organization’s demand.

Answer 19

SUPPLY FORECASTING

Question 20

4 typical HR forecasting time horizons:

Answer 20

1. CURRENT FORECAST
2. SHORT-RUN FORECAST
3. MEDIUM-RUN FORECAST
4. LONG-RUN FORECAST

Question 21

A single numerical estimate of HR requirements associated with a specific time horizon and set of assumptions.

Answer 21

PREDICTION

Question 22

Several HR estimates based on a variety of assumptions.

Answer 22

PROJECTION

Question 23

The range of plausible values of a prediction based on a given set of assumptions.

Answer 23

ENVELOPE

Question 24

Plans to be implemented when severe, unanticipated changes to organizational or environmental factors completely negate the usefulness of the existing HR forecasting predictions or projections.

Answer 24

CONTINGENCY PLANS

Question 25

Proposed sequence of events with their own set of assumptions and assocated program details.

Answer 25

SCENARIOS

Question 26

When two or more employees perform the duties of one full-time position, each sharing the work activities on a part-time basis.

Answer 26

JOB SHARING

Question 27

The process of reducing an HR surplus by allowing the size of the workforce to decline naturally from the normal pattern of losses associated with retirements, deaths, and voluntary turnover.

Answer 27

ATTRITION