Chapter 4

Question 1

the Conference Board of Canada found that the most important long-term HR priorities reported by organizations are:

Answer 1

(1) developing leaders

(2) workforce planning

(3) succession management

Question 2

Workforce planning in most Canadian organizations today has what kind of focus?

Answer 2

> Workforce planning in most Canadian organizations today has a short-term focus (no more than two years), and tends to plan based on the firm’s immediate needs or gaps between human capital demand and supply.

> These planning activities are based largely on current headcounts of employees or historical requirements for employees

Question 3

As HR planning becomes more strategic, the focus moves from headcounts to asking what?

Answer 3

> how human capital can be involved in solving organizational challenges that relate to delivering value to the customer.

Question 4

What is HR forecasting?

Answer 4

HR forecasting can be defined as the process of ascertaining the net requirement for human capital by determining the demand for and supply of human resources now and in the future.

Question 5

HR planning takes many forms and uses a variety of methods. In many smaller organizations, planning is initiated in what way?

Answer 5

> HR planning takes many forms and uses a variety of methods. In many smaller organizations, planning is initiated in the business line and submits a request to HR for the expected number of new hires needed.

Question 6

The following skills have been proposed as critical to the planning function:

Answer 6

1) Communication skills - Forecasting involves the entire business, not just a single functional area.

2) Quantitative skill - As artificial intelligence and the types of algorithms used to develop forecasts become more advanced, the need for quantitative skills to perform basic statistical analyses will likely decrease, but for now, many forecasting methods rely on basic knowledge of statistical methods.

3) Strategic skills - Forecasting is ultimately linked to the resources that are necessary to implement the firm’s strategy.

4) Process management skills - the information and the people necessary to arrive at a forecast often come from multiple functional departments within the organization, and often need to coordinate with external consultants.

Question 7

In general, forecasting is most beneficial when:

Answer 7

> demand is high for jobs, in particular for specialized jobs.

Question 8

A few of the other important advantages of HR forecasting are :

Answer 8

> reducing HR costs, increasing organizational flexibility, ensuring a close linkage to the macro business ­forecasting process, and ensuring that organizational requirements take ­precedence over issues of resource constraint and scarcity.

Question 9

Effective HR forecasting focuses on what comparison?

Answer 9

> Effective HR forecasting focuses on a comparison between the organization’s current job-related knowledge, skills, abilities, and other characteristics (KSAOs)

> This inherent comparison facilitates a proactive, sequential approach to developing internal workers and is concurrent with activities focused on obtaining the best external recruits from competitors, universities, and training programs

Question 10

An oft-cited advantage of HR forecasting is that:

Answer 10

> An oft-cited advantage of HR forecasting is that its proactive process increases the number of viable policy options available to the organization, thereby enhancing flexibility

Question 11

With regard to labour supply considerations, forecasting processes develop program options that can:

Answer 11

> that can determine whether it is more advantageous and cost-effective to retrain or develop current members of the workforce to fill anticipated job openings, or fill these openings with external recruits who already possess the required competencies and skills.

Question 12

Finally, by keeping the level of available human capital in step with operational requirements, the organization minimizes what?

Answer 12

> Any HR gaps or surpluses

Question 13

When do HR gaps occur? How about surpluses?

Answer 13

> An HR gap occurs when the organization has insufficient human capital to meet its operational needs

> conversely, an HR surplus is when the organization has more human capital than needed.

Question 14

How do HR professionals respond to gaps or surpluses?

Answer 14

> Where an HR gap will require more hiring or training, the firm would respond to an HR surplus generally through a hiring freeze, attrition, or even layoffs.

Question 15

When operating costs are able to vary with revenues, organizations have what?

Answer 15

> more operating leverage.

Question 16

A problem can develop in organizations when the HR planning process is not aligned to what?

Answer 16

> when the HR planning process is not aligned to the overall business goals of the organization

> HR forecasting, although an ongoing process, takes its lead from specific production, market share, profitability, and operational objectives set by the organization’s top management.

Question 17

What can management due as a result of human resources forecasting?

Answer 17

> Management can then determine whether the explicit objectives, with their associated specific performance parameters, can be met with the organization’s current HR policies and programs, or whether ­specific changes have to be instituted, with their associated costs, to achieve the objectives.

Question 18

HR forecast summaries to senior management help to ensure that the top decision-makers in the organization are:

Answer 18

(1) are aware of key HR issues and constraints that might affect organizational plans for success and

(2) ensure that the HR objectives are closely aligned with the organization’s operational business objectives

Question 19

Leaving aside a compensation scheme that pays a premium over prevailing market rates for top-quality personnel,
other factors that enable successful retention of key performers include

Answer 19

> ample opportunities for further ­education and learning, organizational support for corporate social responsibility and community improvement initiatives, and a comprehensive and integrated awards and recognition program.

Question 20

HR forecasting processes are based upon what?

Answer 20

> HR forecasting processes are based upon ongoing, real-time bottom-up and top-down forecasting processes.

Question 21

What is the first step in the process of HR forecasting?

Answer 21

> the first step in the process is the calculation of organizational requirements, or demand

Question 22

Determining the source of human capital—that is, the availability or supply of workers—is done only once what has been finalized?

Answer 22

> Determining the source of human capital—that is, the availability or supply of workers—is done only once the process of evaluating human capital requirements for current and future time horizons has been finalized.

Question 23

What is job analysis?

Answer 23

> Job analysis is a systematic process for determining the KSAOs that are relevant to performance in a particular job.

> ob. These KSAOs are known as employee specifications, and in addition to determining these employee specifications, job analysis is also the source for a job description.

Question 24

Job analysis can be any systematic method to arrive at KSAOs, provided that the chosen method leads to what?

Answer 24

> Job analysis can be any systematic method to arrive at KSAOs, provided that the chosen method leads to valid and reliable (that is, job-relevant) knowledge, skills, abilities, and other attributes.

Question 25

When the focus of job analysis is on specific jobs in which the primary outputs of the job can be observed, what choice is best for employee specifications?

Answer 25

> KSAOs are the most prudent choice of employee specifications.

Question 26

when the duties required in the job are frequently in flux, or when the outputs of the job cannot be directly observed, then what choice is best for employee specifications?

Answer 26

> then competency modelling might be the preferred method for determining employee specifications.

Question 27

In order to determine job relevant knowledge, skills, abilities, and other attributes, a job analyst asks subject matter experts (for example, job incumbents, supervisors) five questions: what are they?

Answer 27

1) What do you get paid for? 2) What knowledge do you draw on to produce the outputs? What do you need to know to do what you get paid for? 3) What knowledge or skill do you need to apply your knowledge? 4) What do you do to get work done? 5) How do you know a job is well done? What do you look for?

Question 28

What do the 5 questions of a job analyst lead to? What flows from those answers?

Answer 28

> The answers to these questions guide job analysts to the duties, tasks, and work outcomes associated with a job. > the knowledge, skills, abilities, and other attributes that are job-relevant flow directly from these aspects of the job.

Question 29

The main differences between job analysis and competency models is that:

Answer 29

> The main differences between job analysis and competency models is that job analysis arrives at a very detailed, granular set of job requirements (that is, KSAOs), whereas competency models are not so fine-grained, and the outcomes of a competency model are often more abstract than KSAOs.

Question 30

What is the Hogan Competency model?

Answer 30

> is a set of 58 general competencies from which a given subset can be used to describe the requirements of most jobs > The Hogan competency inventory overcomes this ambiguity by providing context around each competency and a clear definition of the competency.

Question 31

What is a competency?

Answer 31

> a competency can be thought of as an aggregation of several KSAOs, that when put together form an attribute that is useful for high performance in a job or work role.

Question 32

When job analysis or competency modelling (or a combination of the two) is performed on all jobs in the organization, the HR function is equipped with what?

Answer 32

> is equipped with an inventory of all known KSAOs or competencies held within the firm.

Question 33

Human capital theory suggests what about investments in human capital?

Answer 33

> Human capital theory suggests that it takes time for investments in human capital to produce financial or productivity-based returns to the firm. > The reason for this is that human capital generally comes to the firm in the form of generic human capital, which over time develops into firm-specific human capital.

Question 34

What is generic human capital?

Answer 34

> Generic human capital represents the knowledge, skills, and abilities that are held by employees and that are useful to the firm. > This is called generic human capital because these types of skills are of equal value to most any company, and so this value can be priced in the labour market.

Question 35

What is firm-specific capital?

Answer 35

> Firm-specific human capital represents the skills that employees have based on their tacit knowledge and learned from experience in the firm and through mentorship. > Because firm-specific human capital is valuable to the firm but cannot be easily transferred across organizations, it is very difficult for the employee to determine its value in the labour market. Consequently, the firm is able to retain much of the value of firm-specific human capital, which represents a potential source of competitive advantage from human capital.

Question 36

What is human capital stock? How about human capital flow?

Answer 36

> Human capital stock refers to the amount of human capital within the firm at any given time, whereas human capital flow represents how human capital stock changes over time

Question 37

How does forecasting acknowledge human capital and firm-specific human capital

Answer 37

> Forecasting human capital requires that planners consider not just how many employees may be required at a given time (i.e., the stock of human capital), but also whether the requisite level of firm-specific human capital will be available for the firm to compete

Question 38

The consideration of stock and flow will depend on what?

Answer 38

> the type of human capital required

Question 39

Forecasting tools that are dependent on succession management and that integrate turnover rates and employee movement such as promotions, including Markov analysis, are more focused on what?

Answer 39

> are more focused on human capital flows.

Question 40

Current methods of planning in HR are based on what? Is that enforceable over time?

Answer 40

> the job. > However, organizations are beginning to move away from the job to examine how to align human capital with specific tasks, even if it means outsourcing a small part of a job or a few tasks from a range of jobs. The implication is that using the job as the unit of analysis for human capital requirements might be becoming redundant.

Question 41

As organizations move away from full-time employment, planners must also begin to think less in terms of the types and numbers of jobs that are required to fulfill organizational needs and more in terms of what?

Answer 41

> in terms of the the kinds of skills or competencies that are required to fulfill strategic organizational challenges.

Question 42

What is a project?

Answer 42

> A project is any form of temporary assignment that is intended to produce an outcome such as a product, service, or policy. Projects are generally worked on by a team of experts with skills that are relevant to producing the desired outcome, and the outcome of the project is usually related to increasing value for the customer, or supporting some aspect of the business function

Question 43

What is an advantage to a project?

Answer 43

> The advantage to a project is that the structure, function, and capabilities of the project team can exist according to its needs, and outside the organization's customary set of norms, policies, and practices.

Question 44

Projects are typically described as having four stages. How are they categorized and what are the four steps?

Answer 44

> sequential, linear 1) Initiation 2) Planning 3) Execution 4) Closure

Question 45

The most suitable method to deliver a particular project is dictated by :

Answer 45

> dictated by the type of project and desired outcomes.

Question 46

What is the waterfall project management style?

Answer 46

> RESULTS: - Communicated clearly at project outset > STYLE: - Holistic planning from start to finish > FOCUS: - Implement the project plan according to initial specifications > CULTURE: - Careful documentation; stable structure and resources' > HUMAN CAPITAL NEEDS: - Clear role and responsibilities; ability to adhere to schedules and team requirements; high degree of organization

Question 47

What is agile project management?

Answer 47

>RESULTS: - General requirements are outlined at the beginning > STYLE: - Uses short planning cycles; communicates frequently with concerned parties such as customers > FOCUS: - Frequent testing of hypotheses and plans to enable quick reactions to changes in product requirements > CULTURE: - Comfortable with ambiguity > HUMAN CAPITAL NEEDS: - Ability to react flexibly and quickly; high motivation to succeed as a team; high level of conscientiousness

Question 48

What are some drawbacks to the waterfall approach?

Answer 48

> Incorrect initial project requirements can have large impact on results

Question 49

What are some drawbacks to the agile approach?

Answer 49

> - May not fit the organization's culture in terms of hierarchy and leadership.

Question 50

What is scrum?

Answer 50

> Scrum was developed in the early 1990s for use mostly in software development teams. Scrum is a form of Agile project management that is intended to help plan and schedule the activities necessary to complete a particular objective. A Scrum project team is typically no more than seven to 10 people; larger Scrum teams are divided into smaller groups with distinct sets of goals.

Question 51

While a Scrum team has no formal hierarchy, there are three common roles (Schwaber and Sutherland 2020). The roles are as follows:

Answer 51

1) Product owner: This role guides the team and ensures that the team delivers maximum value to the customer. 2) Scrum master: This is the team facilitator, ensuring that the team is adequately resourced with personnel and other resources. 3) Development team: A group of usually around five to seven people who work very closely together to develop the product (Figure 4.15).

Question 52

One of the benefits of Scrum project management is that it:

Answer 52

> enables the team to revise its goals while in the process of achieving its final deliverables, and to integrate new learning and new information while working toward its objectives

Question 53

Scrum is a way of scheduling and planning work that divides work into three basic phases, describe them:

Answer 53

Phase 1 - List of work that needs to be done Phase 2 - List of items from the work that need to get done that will be implemented in this work cycle Phase 3 - End product of end goal of the work cycle

Question 54

These phases are broken into the following categories: (agile method)

Answer 54

> Product backlog: A set of features, goals, or solutions that is continuously being updated. It is essentially the to-do list. > Sprint backlog: The list of features, goals, or solutions from the product backlog that the team has chosen to act on. > Increment: The end state of a particular period of work. This represents what the team intends to complete by the end of the work cycle. This work cycle is referred to as a sprint, so the increment is known as the sprint goal.

Question 55

Scrum uses the following activities to achieve its outcomes:

Answer 55

1) Organizing the backlog: This is done by the leader or product owner. The product owner is tasked with ensuring the product or end result achieves its vision. To do this, the product owner must be knowledgeable about the customer and the market 2) Sprint planning: A meeting in which the entire team determines what work will be done in a particular sprint. 3) Sprint: The time period over which a team works to complete an increment. One of the goals of Scrum is to offer employees a way to see the fruits of their labour, and so sprints are generally not much longer than a couple of weeks to a month in duration. 4) Daily scrum: A daily meeting in which the group ensures that everyone is aware of the current status of the work. It is designed to be a quick meeting that ensures that everyone is on the same page. 5) Sprint review: A review of the work that was done during the sprint. From here, the team decides what aspects of the product backlog to tackle next. 6) Sprint retrospective: A meeting in which the team discusses what worked and what didn’t work, with a focus on what went well. The intention is to improve the process for the next round of work.

Question 56

human capital needs flow from what?

Answer 56

> flow from strategic business challenges, and so the question of human capital needs is derived from asking how human capital can be used to solve a business problem. > In addition to a focus on strategic human capital requirements, workforce planners must also bear in mind the kinds of human capital needs that flow from the strategy to the kinds of activities that are necessary to implement the strategy.

Question 57

What kind of workers constitute a key area of focus for HR forecasting?

Answer 57

> Workers holding trade qualifications that are in high demand or that require lengthy preparatory training for attainment of skill competency constitute a key area of focus for HR forecasting.

Question 58

Avoiding the supply constraints that arise from skills gaps can be ­difficult, especially in specialized skills areas, so organizations should:

Answer 58

> identify jobs with specialized skill requirements, and have programs in place to ensure that this strategic human capital is available when needed.

Question 59

Four designated groups require special attention with respect to the degree to which they are used as a source of labour in organizations:

Answer 59

1) Women 2) Indigenous peoples 3) Persons with disabilities 4) Members of visible minorities

Question 60

What should be noted about HR forecasting and diversity, equity, and inclusion:

Answer 60

> Organizations might have strategic reasons for seeking out members of an underrepresented part of their community. > Federal and provincial governments in Canada have enacted employment-equity legislation and guidelines that require organizations to ensure employment practices are fair and equitable and that the composition of their workforce reflects the rapidly changing face of Canadian society > Particular attention must be paid to monitoring members of these designated groups with respect to organizational opportunities

Question 61

What balance is a key factor in HR forecasting?

Answer 61

> The relative balance of internal to external human capital supply is a key factor in the HR forecasting process.

Question 62

The forecasting process is dependent on many factors including:

Answer 62

> including features that are internal to the organization, and external factors that influence the firm

Question 63

the forecasting process in general can be described as:

Answer 63

> can be described as following a basic pattern that flows from a macro perspective to a micro perspective. > The macro perspective takes into account general trends in society and the economy (refer to HR Planning Notebook 4.6.1 for a discussion of planning at the macro level), whereas the micro level focuses more directly on challenges that are specific to the organization.

Question 64

The planning process often moves from the macro level to the micro level in the following manner as general organizational needs become specific departmental requirements:

Answer 64

1) Determine the staffing needs by skills, skill levels, or jobs > macro-level activity 2) Perform the analyses to determine the number of required employees. 3) Create a budget to determine the costs involved in fulfilling the stated ­organizational requirements. 4) Put HR programs and policies into place to ensure that the demand and supply requirements are met, and track the results.

Question 65

Under the Canadian Occupational Projection System (COPS), what does forecasting process look like?

Answer 65

> The forecasting process begins with estimates of the demand for labour by industry and job type, and also gathers the sources of supply for the same types of human capital. > The analysis then seeks to determine the areas of imbalance between the demand for human capital and its supply. > The ultimate objective is to identify jobs where potential labour market imbalances are expected to occur over the next decade.

Question 66

Some of the measures that COPS uses to perform its forecasting include the following:

Answer 66

> Job vacancy rate. This measure provides an estimate of the level of unoccupied positions and is calculated as the number of vacant positions divided by the total labour demand for a job. > Job openings by skill level. This category divides jobs into skill levels ranging between management, university education, college education, high skill, and on-the-job training. > Employment growth projections by industry.

Question 67

The COPS system takes job information from what?

Answer 67

> The COPS system takes job information from the National Occupation Classification, and assesses labour market conditions using unemployment rate, wages, and employment as its primary sources of data to forecast the demand for human capital.

Question 68

Between 2019 and 2028, the COPS system projects that what amount of occupations will show signs of labour shortage?

Answer 68

> projects that 25 occupations will show signs of labour shortage, mostly coming from areas that require postsecondary education or apprenticeship, and many coming from areas relating to health, skilled trades, and applied sciences.

Question 69

COPS projects eight occupations to show signs of labour surplus, coming from areas that require what?

Answer 69

> that require a high-school diploma or on-the-job training, and that are primarily in sales and service occupations

Question 70

What industry has the highest employment growth?

Answer 70

1) Design of computer system design and related services

Question 71

What is the main difference between demand and supply forecasting?

Answer 71

> Whether forecasting the requirement for human capital (i.e., demand forecasting), or the source of that human capital (i.e., supply forecasting),

Question 72

What kind of process do firms do through when they are forecasting?

Answer 72

> tend to go through a cyclical process of gravitating toward more complex forecasting technologies, then back to simpler ones, and then increasingly complex methods again until a balance is formed

Question 73

The decision to use more complex forecasting methods is predicated on what?

Answer 73

. predicated on the availability and quality of data.

Question 74

popular methods of forecasting fall into the following categories:

Answer 74

1) Surveys to determine a business line's anticipated needs. 2) Norm-based rules. 3) Time series and regression-based models. 4) Mathematical and econometric models - include Markov models, simulations, and structural equation modelling. 5) Qualitative models - includes methods such as the Delphi technique, focus groups, nominal group technique, and scenario planning.

Question 75

Complex models tend to be used most when:

Answer 75

> tend to be used most when the environment can be characterized as fairly low in uncertainty.

Question 76

When are qualitative models used?

Answer 76

> In highly uncertain environments, less sophisticated and more qualitative models are more frequently put to use.

Question 77

When deciding on the type of forecasting model to use, planners should gauge their decision on the extent to which the environment is;

Answer 77

> the extent to which the environment is complex versus simple, and dynamic versus stable.

Question 78

Forecasting models like the general types discussed earlier in this chapter can be categorized into three types of analytical models:

Answer 78

1) Time-series models use historical data in order to extrapolate and extend trends into the future. These models can be simple to use and are typically confined to short-term forecasting. An example of a time-series model is trend forecasting. 2) Cause-and-effect models assume that an ongoing relationship exists between one or more causal or “independent” variables that produce change in the target or “dependent” variable. An example is the significant negative relationship existing between market rate of interest (cost of capital) and the demand for construction workers. Cause-and-effect models are used for short-, medium-, and long-term HR forecasting; forecasting models such as regression, and other mathematical and econometric models are forms of cause-and-effect models. 3) Judgmental models are used for new ventures, in situations where past data do not exist or are unreliable, in situations that are highly novel or that involve a great deal of uncertainty, or when the forecasting period extends into the distant future. They rely on the subjective judgments of experts to derive the forecasts, and include basic survey and norm-based models as well as more structured models such as the Delphi technique.

Question 79

As environmental and organizational factors increase the level of uncertainty for HR forecasters, what is neccessary?

Answer 79

> flexibility in the programs they devise to balance human capital demand and supply is necessary.

Question 80

The typical HR forecasting time horizons are as follows:

Answer 80

1) Current forecast: The current forecast is the one being used to meet the immediate operational needs of the organization. The associated time frame is up to the end of the current operating cycle, or a maximum of one year into the future. 2) Short-run forecast: The short-run forecast extends forward from the current forecast and states the HR requirements for the next one- to two-year period beyond the current operational requirements. 3) Medium-run forecast: Most organizations define the medium-run forecast as the one that identifies requirements for two to five years into the future. 4) Long-run forecast: Due to uncertainty and the significant number and types of changes that can affect the organization’s operations, the long-run forecast is by necessity extremely flexible and is a statement of probable requirements given a set of current assumptions. The typical long-run forecast extends five or more years ahead of the current operational period (Bechet and Walker 1993, 1–16; Walker 1980).

Question 81

The outcome of forecasts derived from these four time horizons leads to :

Answer 81

> leads to predictions and projections. > A prediction is a single numerical estimate of HR requirements associated with a specific time horizon and set of assumptions, whereas a projection incorporates several HR estimates based on a variety of assumptions

Question 82

When changes occur that fall outside the set of assumptions that led to a particular forecast, what can't be relied on? What is done as a result?

Answer 82

> the current prediction envelope cannot be relied upon. > HR forecasters therefore devise a set of alternative scenarios, each with its own set of assumptions and program details associated with HR functions such as training and development, staffing

Question 83

A common envelope range is what percentage?

Answer 83

> 95%

Question 84

What do HR managers have to prepare if forecasts fall outside the assumptions?

Answer 84

> contingency planning to have HR policy responses ready if substantive unanticipated changes occur > Contingency plans are brought into action when such severe changes to organizational or environmental factors completely negate the usefulness of the existing HR forecasting predictions or projections

Question 85

The net HR requirement is what?

Answer 85

> The net HR requirement is the gap or surplus that results from the forecasting exercise.

Question 86

n HR surplus is a condition in which the organization needs to shed human capital. Rather than instituting layoffs or downsizing to deal with an HR surplus, the HR function should do what first?

Answer 86

> should first consider less damaging methods whenever possible. These methods include job sharing, redeploying human capital to other areas of the firm, or a hiring freeze, where the process of attrition through voluntary terminations, or a combination of these methods is used to achieve the necessary reduction in the size of the workforce.

Question 87

HR forecasting models attempt to align an organization’s human capital with its strategic business direction by :

Answer 87

> projecting future demand and supply requirements.

Question 88

First, a key problem for HR forecasting is the dilemma between :

Answer 88

> is the dilemma between desiring simple, easy-to-use HR processes that are readily understood by a variety of organizational decision makers, and the reality that a multitude of individual, organizational, and environmental factors significantly impact human resources supply and demand.

Question 89

What are 3 additional dilemmas for HR forecasting?

Answer 89

1) Second, the issue of data collection time intervals should be considered when evaluating your HR forecasting model. Time lags in data collection lead to discrepancies between HR forecasts and actual requirements for human capital. 2) Third, researchers investigating HR forecasting for the information security industry found that frequent feedback of relevant forecasting information helped reduce the problems caused by time lags between separate forecasting of HR demand and HR supply models. 3) Finally, the whole concept of HR forecasting may seem daunting to many small enterprises, but successful HR forecasting models don’t have to be comprehensive or expensive, just systematic and sustained.