Chapter 5: Human Resources Planning Flashcards
Human resources planning (HRP) BLUE definition
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
HRP is a _______ process, which both anticipates and influences an organization’s future by systematically forecasting the supply of and demand for employees under changing conditions and by developing plans and activities to satisfy these needs
proactive
Effective HRP helps an organization achieve its strategic goals and objectives, ____________________, make major labour market demands more successfully, _____________________ and surpluses of human resources, and ____________________ labour costs.
achieve economies in hiring new workers
anticipate and avoid shortages
control or reduce
From 2013 to 2022, a total of ________ job openings (those due to economic growth plus those due to replacement needs) have been forecasted
5.8 million
Demographic forces, particularly in the area of retirements, will see a greater demand than the supply of labour, particularly in certain occupations found in _______, ______, ________, _________ and in the primary sector.
health, management, trades, transport, and equipment
Approximately _______ of the projected job openings will be in occupations requiring a high school education or on-the-job training
one-third
As illustrated in Figure 5.1, key steps in the HRP process include _____________________, _____________________, and then ______________ to balance supply and demand.
analyzing forecasted labour supply,
forecasting labour demands
planning and implementing HR programs
HR plan
HRP - same acronym
The ______ must align with the overall goals of the organization as well as both the long-term and short-term strategic plans set by the organization
HRP
An organization’s strategic decision to expand, redirect, diverge, divest, partner, or merge will have an associated effect on the HR expectations and _________________
plans of the organization.
HR by the Numbers: Strategic Workforce Planning
Listed below are metrics associated with the use of HR planning in Canada.
53%
of organizations surveyed identify that their strategic workforce plan supports their organization’s long-term business strategy objectives
29%
of organizations surveyed identify that they use a robust workforce planning process
65.8%
the labour force participation rate in Canada in 2017, defined as the percent of the population over 15 years of age that were able and willing to work (regardless of if they were employed or unemployed)
80%
of organizations report challenges with recruiting candidates who have required critical skills
One consulting firm’s approach illustrates workforce planning
This is for Towers Watson
1) reviews the client’s business plan and workforce data (e.g., how sales influence staffing levels)
2) identify what positions the firm will have to fill and potential workforce gaps
3) develop a workforce strategic plan
4) they implement the changes (e.g., new recruiting and training programs), and use various metrics to monitor the process
Environment scanning BLUE definition
Environmental scanning
assessing factors that affect the external labour market, as well as an organization’s ability to find and secure talent from outside of the organization
External environmental factors most frequently monitored
1) Economic conditions
2) Market and competitive trends
3) New or revised laws and the decisions of courts and quasi-judicial bodies
4) Social concerns
5) Technological changes
6) Demographic trends
1) Economic conditions
(local, regional, national, and international);
for example, if the unemployment rate in a region is low, an organization would have to be more aggressive in recruiting talent, as selection may be more scarce
2) Market and competitive trends
for example, compensation policies that lag behind competitors’ policies may result in higher turnover or more difficulties in attracting talent
3) New or revised laws and the decisions of courts and quasi-judicial bodies
for example, a raise in the minimum wage rate can inflate the cost of labour in an organization, therefore creating budgetary pressure to reduce labour expenses
4) Social concerns
such as healthcare, childcare, and educational priorities; for example, a trend toward securing higher education can reduce the size of the available external workforce in the short run, but in the longer run can result in retaining applicants with more specialized training
5) Technological changes
affecting processes, products, and people; for example, a new technology developed at a local university can be implemented in the organization and significantly reduce labour demands through automation of a previously labour-intensive process
6) Demographic trends
of an internal and external labour force; for example, if an organization is situated in a community largely inhabited by senior citizens, it may face difficulties securing a diverse or full-time workforce from the local area.
An element of HR planning that is often taken for granted is the availability and accuracy of information regarding the __________________
current HR situation.
Therefore, before embarking on an HR planning exercise, the _______________ must be assessed.
current HR levels
An ___________ can provide HR planners and managers with an understanding of the organizational structure, business units, and possible career paths.
organization chart
Organizational chart
An organization must ____________ (the number of employees and the skill sets needed in the future) and __________ (internal availability of workers).
forecast future HR demand
forecast future HR supply
Only after demand and supply is forecast can an organization identify potential ______________________, which leads to the development and implementation of plans to balance HR.
labour imbalance issues
Short-term and long-range HR demand forecasts only provide half of the staffing equation by answering the question, _________________________
“How many employees will we need?”
There are two sources of supply:
AKA how we will fill our wokers spots
1) Internal
2) External
1) Internal supply
present employees who can be trained, transferred, or promoted to meet anticipated needs
2) External supply
people in the labour market not currently working for the organization, including those who are employed elsewhere and those who are unemployed who can be expected to join the organization to meet anticipated needs.
Skills inventories BLUE Definition
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
Management inventories BLUE definition
Records summarizing the qualifications, interest, 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
Replacement charts BLUE definition
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
Hiring freeze or attrition
From Class Lecture
Normal separation for various reasons
Early retirement buyout program
From Class Lecture
Accelerates attrition
Job sharing
From Class Lecture
Single position done by more than one employee
Work sharing
From Class Lecture
Work three / four days a week
Reduced workweek
From Class Lecture
Work fewer hours
Layoff
From Class Lecture
Temporary or permanent withdrawal of employment for economic or business reasons
Termination
From Class Lecture
Usually relates to job performance
Leave of absence
From Class Lecture
Period of time away from work; job will be guaranteed on return
Without _______ you have nothing
From Class Lecture
Trust
______ is the bottom of the pyramid for the most important components of a team
From Class Lecture
Trust
There is a direct correlation between the 13 psychosocial factors and _____
From Class Lecture
profit
MIDTERM QUESTIONS
What are the five minority groups in Canada
Aboriginal
People with Disabilities
Women
Visible minorities
Replacement summaries BLUE
Lists of likely replacements for reach position and their relative strengths and weaknesses, as well as information about current position, performance, promotability, age, and experince
Succession planning BLUE
The process of ensuring a suitable supply of successors for current and future senior key jobs so that the careers of individuals can be effectively planned and managed
In short, the plans a company makes to fill its most important executive positions
It should be noted that replacement charts, replacement summaries, and succession plans are considered highly _______ in most organizations
confidential
Markov Analysis BLUE definition
Method of forecasting internal labour supply that involves tracking the pattern of employee movements through various jobs and developing a transitional probability matrix
An analysis shows the actual number (and percentage) of employees who remain in each job from one year to the next, as well as the proportion promoted, demoted, transferred, and leaving the organization.
To project the supply of outside candidates, employers assess three conditions, what are they?
1) general economic conditions,
2) labour market conditions,
3) and occupational market conditions.
General Economic Conditions
refer to the impact of natural fluctuations in economic activity, which impacts all businesses
These include factors such as interest rates, wage rates, rate of inflation, and unemployment rates
2) labour market conditions,
Labour market conditions refer to the demographics of those in the population, such as education levels, age, gender, marital status, and so on.
Can be forecasted quite easily!
3) and occupational market conditions
Organizations also generally want to forecast the availability of potential candidates in specific occupations (engineers, drill press operators, accountants, and so on) for which they will be recruiting
A key component of_____ is forecasting the number and type of people needed to meet organizational objectives.
HRP
In addition to this “basic requirement” for staff, several other factors should be considered, including
1) Projected turnover: as a result of resignations or terminations
2) Quality and nature of employees: in relation to what management sees as the changing needs of the organization
3) Decisions to upgrade: the quality of products or services or enter into new markets, which might change the required employee skill mix
4) Planned technological and administrative changes aimed at increasing productivity and reducing employee head count: such as the installation of new equipment or introduction of a financial incentive plan
5) Financial resources: available to each department; for example, a budget increase may enable managers to pay higher wages or hire more people; conversely, a budget crunch might result in wage freezes or layoffs.
Quantitative techniques for determining human resources requirements include
trend analysis, ratio analysis, scatter plot analysis, and regression analysis
Qualitative approaches to forecasting
range from sophisticated analytical models to informal expert opinions about future needs, often involving subjective interpretations or estimates, such as the nominal group technique or the Delphi technique.
Trend Analysis BLUE
Involves studying the firm’s employment levels over the last three to five years to predict future needs
Ratio analysis BLUE
Involves making forecasts based on the ratio between some causal factor (such as sales volume) and the number of employees required (for example, the number of salespeople)
Scatter plots BLUE
Graphical measure used to help identify the relationship between two variables
Regression Analysis BLUE
Statistical technique to determine the line of best fit, often involving multiple variables (rather than just two, as per the example earlier).
As a statistical tool used to investigate the effect of one variable on another, the investigator is able to determine the magnitude and direction of the relationship between variables to develop future predictions.
Nominal Group Technique BLUE
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
Steps for the Nominal group technique
1) Each member of the group independently writes down his or her ideas on the problem or issue (in this case, estimates demand of).
2) Going around the table, each member then presents one idea. No discussion is permitted
3) Clarification is then sought, as necessary, followed by group discussion and evaluation.
4) Finally, each member is asked to rank the ideas. This is done independently and in silence.
Delphi Technique BLUE
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
The Delphi technique involves the following steps:
1) The problem is identified (in this case, estimates of demand) and each group member is requested to submit a potential solution by completing a carefully designed questionnaire. Direct face-to-face contact is not permitted.
2) After each member independently and anonymously completes the initial questionnaire, the results are compiled at a centralized location.
3) Each group member is then given a copy of the results.
4) If there are differences in opinion, each individual uses the feedback from other experts to fine-tune his or her independent assessment.
5) The third and fourth steps are repeated as often as necessary until a consensus is reached.
A staffing table BLUE
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
Specific strategies must be formulated to balance supply and demand considerations. There are three possible scenarios:
1) projected labour demand matches projected labour supply (equilibrium)
2) projected labour supply exceeds projected demand (surplus)
3) projected labour demand exceeds projected supply (shortage)
Labour Surplus
exists when the internal supply of employees exceeds the organization’s demand
Hiring freeze BLUE
openings are filled by reassigning current employees and no outsiders are hired
Attrition BLUE
normal separation of employees because of resignation, retirement, or death.
Early retirement buyout programs BLUE
involves offering attractive buyout packages or the opportunity to retire on full pension with an attractive benefits package at a relatively early age (often 50 or 55)
Job Sharing BLUE
dividing the duties of a single position between two or more employees
Work-sharing
Work sharing BLUE
involves employees working three or four days a week and receiving employment insurance (EI) benefits on their nonworkday(s)
Reduced workweek BLUE
Employees work fewer hours and receive less pay
Layoff BLUE
the temporary or permanent withdrawal of employment to workers for economic or business reasons
Termination BLUE
permanent separation of the worker from the organization
Leave of absence BLUE
allows those who may be interested in time off for personal, educational, or other reasons to have a set period of time away from their position, with a guarantee that their job will be available upon their return
Survivor syndrome BLUE
a range of emotions that can include feelings of betrayal or violation, guilt, or detachment. The remaining employees, anxious about the next round of terminations, often suffer stress symptoms, including depression, increased errors, and reduced performance.
Supplemental unemployment benefits (SUBs)
a top-up of EI benefits to bring income levels of temporarily laid-off workers closer to their regular, on-the-job pay
A severance package BLUE
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
Golden parachute clause
which is a guarantee by the employer to pay specified compensation and benefits in the case of termination because of downsizing or restructuring
Outplacement assistance
can assist affected employees in finding employment elsewhere
Labour Shortage
exists when the internal supply of human resources cannot meet the organization’s needs
Scheduling overtime hours is often the initial response
Transfer BLUE
involves a lateral movement from one job to another that is relatively equal in pay, responsibility, or organizational level
Promotion Blue
movement of an employee from one job to another that is higher in pay, responsibility, or organizational level
Merit-based promotions
MIDTERM KNOW THIS
are awarded in recognition of a person’s outstanding performance in his or her present job or as an assessment of his or her future potential.
From a practical point of view, according to the textbook, what should be considered first when forecasting the number and type of people needed to meet organizational objectives for a manufacturing firm?
QUIZ QUESTION
Sales
With which of the following strategies for handling a labour surplus is the potential for a human rights violation most likely?
QUIZ QUESTION
Forcing early retirements
Roslyn is the HR Manager at a small but successful app development company that is growing quickly. She is explaining the steps in human resources planning to the CEO and informs the CEO that projected openings can be filled with two major sources of supply. These sources are
QUIZ QUESTION
Internal and External
Francis is the HR Manager of a growing transportation company. The economy is booming and unemployment rates are low. What will Francis face when he starts hiring workers?
QUIZ QUESTION
A smaller labour supply
What do supplemental unemployment benefits do?
QUIZ QUESTION
Provide a top-up of employment insurance benefits
You are the HR Manager of a company experiencing the loss of market share and declining profits. The CEO would like you to recommend a strategy for gradually reducing staff while avoiding involuntary turnover. Which of the following would be the best recommendation?
QUIZ QUESTION
Down sizing through ATTRITION
DO NOT CHOOSE Offering attractive early retirement packages
A decision-making technique that involves experts meeting face to face and can also be used for HR forecasting is known as
QUIZ QUESTION
the nominal group technique.
Anthony is a company’s HR Manager and he is helping the production department determine seasonal employment needs. Anthony tracks multiple variables and determines the line of best fit in order to predict future employment levels. Which forecasting method is Anthony using?
QUIZ QUESTION
Regression Analysis
A Markov analysis tracks an employee’s previous career movements prior to joining a company.
QUIZ QUESTION
FALSE
Which of the following HR strategies will cost a company a great deal of money up front?
QUIZ QUESTION
Offering early retirement packages
The drawbacks of which forecasting technique include the time and costs involved as well as the potential difficulty in integrating diverse opinions?
QUIZ QUESTION
Delphi Technique
The guarantee by the employer to pay specified compensation and benefits to executives in the case of termination due to downsizing or restructuring is known as
QUIZ QUESTION
Golden Parachute
According to the textbook, the initial response to a labour shortage is often
QUIZ QUESTION
Scheduling Overtime hours
Regression analysis determines the line of best fit and often involves multiple variables.
QUIZ QUESTION
TRUE
General economic conditions refer to
QUIZ QUESTION
the impact of fluctuations in economic activity.
