Chapter 5 - Human Resources Planning

Question 1

“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.”

Answer 1

Human Resources Planning (HRP)

Question 2

Importance of HRP

Answer 2

1. meet strategic goals and objectives
2. achieve economies in hiring new workers
3. make major market labour demands successfully
4. anticipate and avoid shortages and surpluses of human resources
5. control or reduce labour costs

Question 3

does not occur independently of the other departments within an organization (such as finance, marketing, research and development);
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.

Answer 3

The Relationship between HRP and Strategic Planning

Question 4

The Importance of Environmental Scanning

Answer 4

External environmental factors monitored include:

1. economic conditions
2. market and competitive trends
3. new or revised laws relating to HR
4. social concerns (health care, childcare, educational priorities)
5. technological changes
6. demographic trends

Question 5

Steps in the HRP Process

Answer 5

1. Forecasting the Availability of Candidates (Supply)
2. Forecasting Future HR Needs (Demand)
3. Planning and Implementing HR Programs to Balance Supply and Demand

Question 6

skills inventories and management inventories;
replacement charts and replacement summaries;
succession planning

Answer 6

Forecasting the Availability of Candidates (Supply)

Question 7

Summary of current employees’ education, experience, interests, and skills;
used to identify eligibility for transfer/promotion

Answer 7

Skills Inventories

Question 8

Summary of management employees qualifications, skills, interests, managerial responsibilities;
used to identify eligibility for transfer/promotion

Answer 8

Management Inventories

Question 9

Depiction of who will replace whom in the event of a job opening;
internal candidates age, present performance rating, and promotability status are listed

Answer 9

Replacement Charts

Question 10

Lists of likely replacements for each position;

indicates relative strengths/weaknesses, current position, performance, promotability, age, and experience

Answer 10

Replacement Summaries

Question 11

Ensuring supply of successors for key jobs so that careers can be effectively planned and managed;
includes:
*analysis of demand for managers and professionals
*audit and projection of likely future supply
*planning individual career paths, career counseling
*accelerated promotions
*planned strategic recruitment

Answer 11

Succession Planning

Question 12

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

Answer 12

Markov Analysis

Question 13

Market conditions assessed:

Answer 13

1. General economic conditions
2. Labour market conditions
3. Occupational market conditions

Question 14

Interest rates, wage rates, inflation, unemployment rates

Answer 14

General Economic Conditions

Question 15

Demographics: education levels, age, gender, marital status

Answer 15

Labour Market Conditions

Question 16

Relevant occupations (as applicable): e.g. engineers, skilled labour, accountants, etc.

Answer 16

Occupational Market Conditions

Question 17

Predict future needs based on past employment levels

Answer 17

Trend Analysis

Question 18

Ratio of business activity and number of employees needed, e.g. sales revenue per salesperson

Answer 18

Ratio Analysis

Question 19

Used to determine whether two factors (business activity and staffing levels) are related

Answer 19

Scatter Plot

Question 20

Examines the statistical relationship between business activity and employees

Answer 20

Regression Analysis

Question 21

Involves a group of experts meeting face to face;

Steps include independent idea generation, clarification and open discussion, and private assessment

Answer 21

Nominal Group Technique

Question 22

Judgmental forecasting method involving outside experts as well as organizational employees;
ideas are exchanged without face-to-face interaction and feedback is used to fine-tune until consensus is reached

Answer 22

Delphi Technique

Question 23

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

Answer 23

Staffing Table

Question 24

The internal supply of employees exceeds the organization’s forecasted demand

Answer 24

Labour Surplus

Question 25

The internal supply of human resources cannot meet the organization’s needs

Answer 25

Labour Shortage

Question 26

Responding to a Labour Surplus

Answer 26

1. hiring freeze/attrition
2. early retirement buyout programs
3. job sharing
   work sharing
4. reduced workweek
5. layoff
6. termination
7. leave of absence

Question 27

Considerations:

Answer 27

1. survivor syndrome
2. supplemental unemployment benefits
3. severance package
4. pay
5. benefits
6. golden parachute
7. outplacement assistance

Question 28

Responding to a Labour Shortage

Answer 28

Internal solutions:

1. transfer
2. promotion
3. employee retention

External solutions:
4. recruiting