Quiz 2 Flashcards
What is human resources planning?
- The continual process of anticipating the future workplace needs of the organization
- Steps to get the RIGHT number of RIGHT people in the RIGHT place at the RIGHT time
Why is human resources planning important?
- Avoid having too many people (labour surplus)
- Avoid having too few people (labour shortage)
- Risk of wrong people (overqualified, underemployed)
Describe the major external environmental influences on the organization’s ability to find and secure talent from the external labor market, and give relevant examples.
- Environmental scanning: an assessment of external factors that may influence organization’s ability to find talent from external labour market
• Economic conditions (eg. mass layoffs = people will be looking for jobs)
• Competitive trends (eg. compensation policy)
• New or revised laws relating to HR (eg. minimum wage laws)
• Social concerns (eg. childcare)
• Technological changes (eg. new IT devices)
• Demographic trends (eg. international students)
What are the steps in human resources planning?
- Forecasting Labour Supply
- Employees should report changes to their qualifications to HR department
- Skills and management inventories must be updated regularly - Forecasting Labour Demand
- Identifies future workforce requirements needed to maintain the organizations mission and goals
- Main factors in demand analysis:
• New products
• Estimated productivity
• Budgets or financial resources
• Competitive pressures (eg. hire employees to prevent them from going to rivals) - Gap Analysis
- Comparing forecasted demand to forecasted supply to determine if there is a projected labour equilibrium, shortage, or surplus - Solutions Analysis
What 4 methods can you use when forecasting labour supply?
SKILL INVENTORIES:
- Summary of current employees’ education, experience, interests, and skills
- Used to identify eligibility for transfer/promotion
MANAGEMENT INVENTORIES:
- Summary of management employees’ qualifications, skills, interests, and managerial responsibilities
- Used to identify eligibility for transfer/promotion
REPLACEMENT CHARTS:
- Depiction of who will replace whom in the event of a job opening
- Should pick the person who is ready and has sufficient performance
- Internal candidates age and education, present performance rating, and promotional potential are listed
REPLACEMENT SUMMARIES:
- Lists of likely replacements for each position
- Can often be found below the replacement charts to offer more details
- Indicates relative strengths/weaknesses, current position, performance, promotional potential, age, and experience
List the techniques used to forecast labour demand.
QUANTITATIVE: useful to predict # of employees needed
- Trend Analysis
- Ratio Analysis
- Scatter Plot
- Regression Analysis
QUALITATIVE: used when we lack data for a quantitative model or we are interested in quality/human capital (judgement is necessary)
- Delphi Technique
- Nominal Group Technique
What is trend analysis?
- Predicts labour demand based on projections of past relationship patterns between an operational index and # of employees
• Use historical data (over time) - Eg. If a housekeeper can clean 20 rooms/day (an operational index), the hotel has 1,000 rooms, and projected capacity in the winter is 80%, how many housekeepers do we need?
• 40
What is ratio analysis?
- Predicts labour demand using ratios between assumed causal factors and # of employees need
- Key difference from trend analysis = no requirement for significant historical data (only 1 year is sufficient)
- Eg. Each salesperson can bring in $200K per year. We want 600K in revenue, so need 3 employees.
What is scatter plot?
- Summarizes relationship between 2 factors using a correlation coefficient (-1 to +1)
• Positive correlation ⟶ increasing sales revenue with more salespeople
• Negative correlation ⟶ increasing sales revenue with less salespeople - Cannot determine causality
What is regression analysis?
- Determines the line of best fit to investigate the effect of 1 variable on another
• Collect data at 2 different time points - Determine the magnitude and direction of the relationship between variables to develop future predictions
• Can establish causality!
What is the Delphi technique? What are the cons?
- Process in which judgements of a selected group of experts is solicited and summarized in an attempt to determine the future HR demand
• Experts do not meet face-to-face and work independently (less personal bias, group conformity pressures, and issues with shyness)
• Good equalizer and can elicit feedback from a wide range of experts - Cons ⟶ difficult to integrate diverse opinions, costly, time-consuming, results cannot be validated statistically (evidence is opinions), project coordinators may be burnt out (high workload)
What is the nominal group technique? What are the cons?
- Experts (managers) meet face-to-face
- Group discussion facilitates exchange of ideas
- Cons ⟶ possible subjectivity, group pressure could lead to a less accurate assessment
What is a staffing table?
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
What is a labour surplus? Discuss the differences between layoffs and terminations.
- Internal supply of employees exceeds the organization’s forecasted demand
SOLUTIONS:
- Layoff: temporary of permanent withdrawal of employment due to business or economic reasons (not the employee’s fault)
- Termination: permanent separation from the organization because of job performance reasons (the employee’s fault)
What is employee turnover? What is the difference between voluntary and involuntary?
- The end of an individual’s employment within an organization
- Voluntary
• Initiated by employees, dysfunctional for employers
• Uncontrollable and unpredictable
• Threat to organizational effectiveness - Involuntary
• Initiated by employer (termination or layoff)
• Traditionally seen as functional
• Within the control of organizational leaders