Chapter 5 - HR Planning

Question 1

Define human resources planning (HRP) and discuss its strategic importance.

Answer 1

Human resources planning (HRP) is the process of reviewing HR requirements to ensure that the organization has the required number of employees with the necessary skills to meet its strategic goals.

Question 2

Discuss the strategic importance human resources planning (HRP)

Answer 2

Forecasting future labour demand and supply is a critical element of the strategic planning process. HRP and strategic planning become effective when a reciprocal and interdependent relationship exists between them.

Question 3

Describe four quantitative and two qualitative techniques used to forecast human resources demand. ***

Answer 3

Four quantitative techniques for forecasting future HR demand are:

trend analysis, ratio analysis, scatter plots, and regression analysis.

Two qualitative techniques used to forecast demand are the:

nominal group technique and the Delphi technique.

Question 4

Discuss briefly the four strategies used to forecast internal human resources supply and three types of market conditions assessed when forecasting external human resources supply.

Answer 4

Four strategies used to forecast internal HR supply are:

1. Markov analysis,

2. skills and management inventories,

3. replacement charts and summaries, and

4. succession planning.

Forecasting external HR supply requires:

1. an assessment of general economic conditions, 2. labour market conditions, and
2. occupational labour conditions.

Question 5

Describe the ways in which a surplus of human resources can be handled. ***

Answer 5

Strategies to manage a labour surplus include:

> a hiring freeze;

> downsizing through attrition;

> early retirement buyout programs;

> reduced hours through job sharing,

> part-time work,

> work sharing, or

> reduced workweeks;

> leaves of absence; and

> termination of employment.

Question 6

Explain how organizations deal with a shortage of human resources. ***

Answer 6

Strategies to manage a human resources shortage include internal and external solutions, such as:

> hiring employees,

> employee transfers and promotions, and

> retention programs.

Question 7

attrition

Answer 7

The normal separation of employees from an organization because of resignation, retirement, or death.

Question 8

termination

Answer 8

Permanent separation from the organization for any reason

Question 9

ratio analysis

Answer 9

A forecasting technique for determining future staff needs by using ratios between some causal factor (such as sales volume) and the number of employees needed.

Question 10

early retirement buyout programs

Answer 10

Strategies used to accelerate attrition that involve offering attractive buyout packages or the opportunity to retire on full pension with an attractive benefits package.

Question 11

supplemental unemployment benefits (SUBs) 

Answer 11

A top-up of EI benefits to bring income levels closer to what an employee would receive if on the job.

Question 12

nominal group technique

Answer 12

A decision-making technique that involves a group of experts meeting face to face. Steps include independent idea generation, clarification and open discussion, and private assessment.

Question 13

succession planning

Answer 13

The process of ensuring a suitable supply of successors for current and future senior or key jobs so that the careers of individuals can be effectively planned and managed.

Question 14

replacement charts

Answer 14

Visual representations of who will replace whom in the event of a job opening. Likely internal candidates are listed, along with their age, present performance rating, and promotability status

Question 15

Markov analysis

Answer 15

A method of forecasting internal labour supply that involves tracking the pattern of employee movements through various jobs and developing a transitional probability matrix.

Question 16

promotion

Answer 16

Movement of an employee from one job to another that is higher in pay, responsibility, or organizational level, usually based on merit, seniority, or a combination of both.

Question 17

management inventories

Answer 17

Records summarizing the qualifications, interests, and skills of management employees, along with the number and types of employees supervised, duties of such employees, total budget managed, previous managerial duties and responsibilities, and managerial training received.

Question 18

work sharing

Answer 18

Employees work three or four days a week and receive EI benefits on their non-workday(s).

Question 19

layoff

Answer 19

The temporary or permanent withdrawal of employment to workers for economic or business reasons.

Question 20

staffing table

Answer 20

A pictorial representation of all jobs within the organization, along with the number of current incumbents and future employment requirements (monthly or yearly) for each.

Question 21

environment scanning

Answer 21

An assessment of external factors influencing the organization’s ability to find and secure talent from the external labour market, including economic, competitive, legislative, social, technological and demographic trends.

Question 22

scatter plot

Answer 22

A graphical method used to help identify the relationship between two variables.

Question 23

severance package

Answer 23

A lump-sum payment, continuation of benefits for a specified period of time, or other benefits that are provided to employees who are being terminated.

Question 24

leave of absence

Answer 24

Allows those who may be interested in taking time away from work for a variety of reasons (e.g., personal, educational, etc.) to have a set period of time away from their position without pay, but with a guarantee that their job will be available upon their return.

Question 25

job sharing

Answer 25

A strategy that involves dividing the duties of a single position between two or more employees.

Question 26

survivor syndrome

Answer 26

A range of negative emotions experienced by employees remaining after a major restructuring initiative, which can include feelings of betrayal or violation, guilt, or detachment, and can result in stress symptoms, including depression, increased errors, and reduced performance.

Question 27

hiring freeze

Answer 27

A common initial response to an employee surplus; openings are filled by reassigning current employees and no outsiders are hired.

Question 28

reduced workweek

Answer 28

Employees work fewer hours and receive less pay.

Question 29

human resources planning (HRP)

Answer 29

The process of forecasting future human resources requirements to ensure that the organization will have the required number of employees with the necessary skills to meet its strategic objectives.

Question 30

replacement summaries

Answer 30

Lists of likely replacements for each position and their relative strengths and weaknesses, as well as information about current position, performance, promotability, age, and experience.

Question 31

transfer

Answer 31

Movement of an employee from one job to another that is relatively equal in pay, responsibility, or organizational level.

Question 32

trend analysis

Answer 32

The study of a firm’s past employment levels over a period of years to predict future needs.

Question 33

regression analysis

Answer 33

A statistical technique involving the use of a mathematical formula to project future demands based on an established relationship between an organization’s employment level (dependent variable) and some measurable factor of output (independent variable).

Question 34

skills inventories

Answer 34

Manual or computerized records—summarizing employees’ education, experience, interests, skills, and so on—that are used to identify internal candidates eligible for transfer or promotion.

Question 35

Delphi technique

Answer 35

A judgmental forecasting method used to arrive at a group decision, typically involving outside experts as well as organizational employees. Ideas are exchanged without face-to-face interaction and feedback is provided and used to fine-tune independent judgments until a consensus is reached

Question 36

How would you forecast/consider potential employee demand?

Answer 36

> Projected turnover > Quality and nature of employees with respect to changing needs of the firm > Decisions to change/upgrade the quality of products or services > Planned technological and administrative changes > Financial resources available > Organizational restructuring and job redesign