CHAPTER 4 Flashcards
Determining the net requirement for human capital by assessing the demand for and supply of human resources now and in the future.
HR FORECASTING
4 skills necessary for effective planning:
- COMMUNICATION SKILLS
- QUANTITATIVE SKILLS
- STRATEGIC SKILLS
- PROCESS MANAGEMENT SKILLS
Advantages of HR forecasting:
- REDUCE HR COSTS
- INCREASE ORG FLEXIBILITY
- ENSURE LINKAGE TO THE MACRO BUSINESS FORECASTING PROCESS
- ATTAINMENT OF DESIRED ORG GOALS AND OBJECTIVES
Also referred to as “job specifications”, the knowledge, skills, abilities, and other characteristics that are necessary for a person to perform well in a job.
KSAO
A shortage of human capital such that the organization is unable to meet its current or forecasted human capital requirements.
HR GAPS
A situation in which the organization has more human capital than it requires in order to meet its current or forecasted human capital requirements.
HR SURPLUS
The organization’s projected requirement for human capital.
HR DEMAND
The source of human capital to meet demand requirements, obtained either internally or externally.
HR SUPPLY
Suggests that it takes time for investments in human capital to produce financial or productivity-based returns to the firm.
HUMAN CAPITAL THEORY
The competencies, knowledge, skills, and abilities that are held by individual employees and that are useful to the firm.
GENERIC HUMAN CAPITAL
Represents the skills that employees have based on their tacit knowledge and learned from experience in the firm and through mentorship.
FIRM-SPECIFIC HUMAN CAPITAL
The amount of any specific form of human capital that is available to the firm at any given time.
HUMAN CAPITAL STOCK
The change in the stock of human capital over time.
HUMAN CAPITAL FLOW
4 factors that affect human capital flow:
- PROMOTIONS
- LATERAL MOVEMENTS
- DEMOTIONS
- TERMINATIONS
4 categories of human capital requirements:
- SPECIALIST/TECHNICAL/PROFESSIONAL WORKERS
- DESIGNATED GROUPS
- MANAGERS AND EXECUTIVES
- RECRUITS
5 categories of forecasting methods:
- SURVEY BUSINESS LINE
- NORM-BASED RULES
- TIME SERIES- AND REGRESSION-BASED MODELS
- MATHEMATICAL AND ECONOMIC MODELS
- QUALITATIVE MODELS
3 types of analytical models:
- TIME-SERIES MODELS
- CAUSE-AND-EFFECT MODELS
- JUDGMENTAL MODELS
The process of determining the organization’s requirement for specific forms of human capital.
DEMAND FORECASTING
The process of determining the source of sources of human capital to satisfy the organization’s demand.
SUPPLY FORECASTING
4 typical HR forecasting time horizons:
- CURRENT FORECAST
- SHORT-RUN FORECAST
- MEDIUM-RUN FORECAST
- LONG-RUN FORECAST
A single numerical estimate of HR requirements associated with a specific time horizon and set of assumptions.
PREDICTION
Several HR estimates based on a variety of assumptions.
PROJECTION
The range of plausible values of a prediction based on a given set of assumptions.
ENVELOPE
Plans to be implemented when severe, unanticipated changes to organizational or environmental factors completely negate the usefulness of the existing HR forecasting predictions or projections.
CONTINGENCY PLANS
