Chapter 5: Human Resource Planning Flashcards
Human Resource Planning
process of forecasting future human resource requirements to ensure that the organization will have the required number of employees with the necessary skills to meet its strategic objectives
Steps in HR Planning
- review business plan
- supply and demand forecast
- gap analysis
- solutions analysis
Environment Scanning
assessing factors that affect the external labour market as well as an organization’s ability to find and secure talent from outside the organization
Internal Labour Supply
present employees who can be trained, transferred, or promoted to meet anticipated needs
External Labour Supply
people in the labour market not current working for the organization, including those who are employed elsewhere and those who are unemployed but can be expected to join the organization and meet needs
Skills Inventories
records that contain information about an employees education, experience, skills that are used to identify internal candidates eligible for transfer or promotion
Management Inventories
records employees as well as information about managerial responsibilities and management training, used to identify internal candidates eligible for promotion or transfer opportunities
Succession Planning
the plans of a company makes to fill its most important executive positions
Markov Analysis
technique to track the pattern of employee movements through various jobs and develop a transitional probability matrix for forecasting internal supply by specific categories
Forecasting Internal Labour Supply methods
- skills inventories
- management inventories
- succession planning
- markov analysis
Forecasting External Labour Supply methods
- general economic conditions
- labour market conditions
- occupational market conditions
Forecasting Labour Demand Quantitative Technique
- Trend analysis
- ratio analysis
- scatter plot analysis
- regression analysis
Trend Analysis
Involves studying the firm’s employment levels over the last three to five years to predict future needs
Ratio Analysis
involves making forecasts based on the ratio between some factor and number of employees required
Scatterplot
graphical visualization used to determine whether two factors, a measure of business activity and staffing levels, are related
Regression Analysis
the use of a mathematical formula to project future demands based on an established relationship between an organization’s employment levels and some measurable factor of output
Forecasting Labour Demand Qualitative Approaches
nominal group technique
delphi technique
Nominal Group Technique
decision making technique that involves a group of experts meeting face to face
Delphi Technique
a long range forecasting method used to arrive at a group decision, typically involving outside experts as well as company employees. Not face to face.
Staffing Table
a pictorial representation of all jobs within the organization, along with the number of current incumbents and future employment requirements for each
Equilibrium
projected labour demand matches labour supply
Surplus
project labour supply exceeds projected demand
Strategies to Reduce Surplus
- hiring freeze
- attrition
- early retirement buyout
- job sharing
- work sharing
- reduced work week
- layoff
- termination
- leave of absence
Hiring Freeze
no openings are filled by reassigning current employees and no outsiders are hired
Attrition
normal seperation of employees because of resignation, retirement, or death
Early Retirement Buyout
used to accelerate attrition by offering incentives to employees to leave
Job Sharing
dividing the duties of a single position between 2+ employees
Work Sharing
employees work less than five days a week and receive EI for non-workdays
Reduced work week
employees work fewer hours and receive less pay
layoff
temporary withdrawal of employment to workers for economic or business reasons
Termination
broad term that encompasses permanent separation of the worker from the organization due to problems that are deemed to be within employee’s control
Leave of Absence
allows those who may be interested in time off to have a set period of time away from their position with the guarantee that their job will be available upon their return
High Cost of Downsizing: Survivor Syndrom
range of negative emotions experienced by remaining employees that can include feelings of betrayal, guilt, anxiety, reduced performance
To ease burned of Layoffs: Supplemental Unemployment Benefits (SUBs)
top-up EI benefits to bring income levels of temporarily laid-off workers closer to their regular on-the-job pay
To ease burden of Layoffs: Severance Package
lump-sum payments, continuation of benefits, or other benefits provided to employees who are being terminated through no fault of their own
Shortage
project labour demand exceeds projected labour supply
Strategies to deal with Shortage
- scheduling overtime hours
- subcontracting work
- hiring temporary employees
- transfer
- promotion
- external hiring
