Chapter 3 Flashcards
What is human resource planning?
The process used to determine future human resource requirements and the business processes needed to support and enable those resources
by anticipating future business demands, analyzing the impacts of these demands on the organization, determining the current availability of human resources and the applicable business processes, and making decisions on how to adapt and utilize firms’ human resources.
WANT TO RESPOND EFFECTIVELY TO CHANGE
What are the 5 steps in HR planning?
Step 1: Forecast demand for human resources
Step 2: Access internal and external supply of human resources
Step 3: Develop human resource objectives
Step 4: Design and implement HRM programs
Step 5: Establish program evaluation
What impacts an organization’s need (demand) for labour?
- strategic plan
- demographic profile (ppl aging, etc.)
- internal rate of natural turnover (want some but not tons!)
- changes in legal env. (ex: laws for equity in workplace)
- tech changes (needing new skillsets)
- actions of competitors (maybe need to follow their lead, especially in turbulent times)
- forecasts of budget/revenue changes (more/less money = can hire/need less people)
- new ventures/acquisitions (need new skills, just more hands on deck in general)
- org restructuring and job design changes (redundancies outta there)
What techniques are there for forecasting HR demands?
1) expert forecasts = get smart people to think about it!
- group brainstorm
- nominal group technique (brainstorm then evaluate options)
- Delphi technique (probabilities around certain areas)
2) trend projection forecast
- extrapolation (future probably similar to rn)
- indexation (link things together – increase in sales force means sell more means need to increase production!)
3) other methods
- budget + planning analysis (base off past planning cycles)
- venture analysis (base off others or own past successes)
- stimulation + prediction models (AI or big databases)
What is a staffing table? Why make one?
A simple visual understanding of an organization’s staffing level within each department and the organization as a whole.
Why: to help understand the combination of employees that make up an organization’s internal workforce.
– evaluate staffing levels, types at each level, and combination of staff in all categories
What are the two sources of HR supply and what do they mean?
1) internal sources = inside the org! (often organizations have policy to start internally before checking outside)
2) external sources = outside the org!
What are 2 ways to assess internal supply of human resources?
a) human resources audits = skills inventories of all parts/positions, leadership inventories, replacement charts (visual representation of who replace who – potential, skills, etc. *beware though big mess if people find out whats on the chart O.O)
b) empirical analysis = Markov analysis (forecast future HR supply w/ probability matrices from historical employee movements – where ppl go, which jobs are ‘hot’), transition matrices (probability how quickly a certain job turns over and what that employee may do over a forecast period of time – speed @ which people move around, where they jump from and where to)
What are 3 ways to assess external supply of human resources?
a) Labour market analysis = study of a firms labour market to evaluate present or future avail. of different types of workers. (employment rates, labour participation rates (ppl with job but looking for diff one), degree of labour movement between firms, separation rates, etc.)
b) Community attitudes = local community attitudes concerning the nature of the labour market (what they think about org, is org an ‘employer of choice’?)
c) Demographic trends = what are the long-term trends in supply for various occupations that may create potential labour shortages? (ex: hard to find a milkman now bc the job has been completely phased out!)
Can internal supply ever be the complete solution?
Not really. In the long term, those who are promoted to fill holes/etc. leave holes behind so will always need an external hire to fill those lower holes.
What are the ways to manage an OVERSUPPLY of human resources? What do you need to consider?
Consider:
- reducing the right supply (those who actually aren’t right for the job)
- the timeline (short term or long term reduction?)
Strategies:
- reducing headcount = eliminate employees and restructure jobs
- attrition = loss of employees through voluntary departures
- alternate work arrangements = changes in established work setup
What are the strategies an org can use to reduce headcount?
- layoffs (temporary)
- leaves without pay (temporary, ‘hey you, feel like taking some time off to go get that degree you wanted?’)
- incentives for voluntary separation (entice employees to leave permanently - risky bc can be expensive, hard to find right amount to offer (too much = everyone leaves, not enough = no one leaves and you gotta up the price, making people who did already leave mad))
- terminations (permanent, usually severance package and counselling and outplacement services)
What are the strategies an org can use to impact attrition?
- hiring freeze = let ppl leave that want to, no body coming in so numbers slowly decrease
- early and phased retirement offer = gradual, no loss of pension benefits
What are the alternate work arrangement options that an org could introduce?
- job sharing = available work shared among workers (eliminates need for layoffs) - voluntary though bc harddd to find someone who would be up for doing only 60% of x job.
- part time employees = switch FT out for PT (can be costly still though)
What are the ways to manage a SHORTAGE of human resources?
- hire people!
- contract out the work (transfer work from the org - someone else can do it better and cheaper? then they should be doin it)
- develop employees inernally (leverage existing HR supply – succession planning)
- create flexible work arrangements (work hours, schedules, and location – to ensure goals and needs are optimally met)
What kinds of employees can an organization hire? What is important to keep in mind when choosing this strategy (hiring strategy).
- full time (more expensive sometimes bc benefits and etc.)
- part time (sometimes also have benefits so not always cheaper)
- temporary employees (maybe pay more bc temp agency takes a cut)
Keep in mind:
Process takes time! need time for recruiting, interviews, time for employee to get fully trained and get ability up to actually cover 100% of what previous employee did.
