study deck mid term 1

Question 1

What is a corporate strategy?

Answer 1

Overall, long-term, survival

Corporate Strategies are focused on overall strategy for the company and its businesses or interests. These strategies are usually focused on long-term growth and survival goals.

Question 2

Identify the three major corporate or organization-wide strategies

Answer 2

There are three corporate strategy options:
∙ Restructuring (turnaround, divestiture, liquidation, bankruptcy)
∙ Growth (incremental growth, international growth, mergers and acquisitions)
∙ Stability (maintain the status quo)

Question 3

Compare and contrast corporate and business strategy. What is the difference between the two?

Answer 3

Business strategy is an action plan for managing one line of business. Business strategy asks, “How should we compete? Should we compete by offering products at prices lower than those of the competition or by offering the best service?”

Corporate strategy asks, “Should we be in business? What business should we be in?”

Question 4

List the steps (from initial planning to end stages) in strategic planning.

Answer 4

ED AID IE

1. Establish the mission, vision, and values
2. Develop objectives
3. Analyze the external environment
4. Identify the competitive advantage
5. Determine the competitive position
6. Implement the strategy
7. Evaluate the performance

Question 5

What are some of the benefits of strategy formulation to organizations? Identify and briefly describe five benefits.

Answer 5

CCC IE

∙ Clarity – to help focus and guide decision-making about resource allocations

∙ Coordination – everyone working together towards the same goals

∙ Change – if major change is under consideration, then understanding current strategy is essential

∙ Incentives – employees understanding the behaviours and performance that will be rewarded

∙ Efficiency – daily decision-making guided toward the question “does it fit our strategy?”

Question 6

Compare and contrast the HRM practices of a company using a low-cost provider strategy with one using a differentiation strategy

Answer 6

Low-cost providers provide a product or service at a price lower than that of its competitors while appealing to a broad range of customers. A major emphasis with this type of strategy is to reduce cost; therefore: CTC
> contingent workers are recruited and paid minimal hourly wages.
> There is a high turnover of staff and minimal on-the-job training.
> There are minimal opportunities for career growth and advancement.

Businesses using a differentiation strategy seek to differentiate their products in ways that will appeal to a broad range of buyers. SKA
> More staff training may be required in businesses employing this type of strategy.
> There is more emphasis on product knowledge and customer service.
> There may be more opportunities for advancement in this type of business.

Question 7

List the three categories of resources and describe one example of a resource that a firm would have that would allow them to perform more effectively or efficiently than its competitors.

Answer 7

Tangible assets: These are future economic resources that have substance and form from which an organization will benefit. Examples are land, inventory, building, location, cash, and technology.

Intangible assets: These are future economic resources that have been generated from past organizational events. These assets lack substance and form. Examples are human capital, reputation, goodwill, trust, and copyright.

Capabilities: These are a complex combination of people and processes that represent the firm’s capacity to exploit resources to achieve the firm’s objectives. Examples are managerial capabilities, innovative capabilities, marketing capabilities, and organizational cultures

Question 8

According to the resource-based view, an organization’s sustained competitive advantage must meet four criteria. List these four criteria.

Answer 8

VRIO

They are valuable to the firm’s strategy (they help generate value/reduce cost).
∙ They are rare (competitors don’t have them).
∙ They are inimitable (they cannot easily be copied by competitors).
∙ They can be organized by the firm (the firm can exploit the resources

Question 9

What is a SWOT analysis

Answer 9

A SWOT analysis is a tool for analyzing a company’s resource capabilities and deficiencies, its market opportunities, and the external threats to its future.

SWOT is an acronym for Strengths, Weaknesses, (both internal) Opportunities, and Threats. (Both External)

Question 10

Describe one step in the strategic planning process.

Answer 10

One Step: Analyze the external environment. To achieve the company’s objectives, managers must be aware of threats and opportunities in the external environment. By scanning and monitoring PESTEL managers can make reactive and proactive changes to the strategic plan.

Question 11

Concepts of strategy are numerous. Describe five.

Answer 11

Strategic intent: A tangible corporate goal; a point of view about the competitive positions a company hopes to build over a decade

Strategic planning: The systematic determination of goals and the plans to achieve them

Strategy implementation: Those activities that employees and managers of an organization undertake to enact the strategic plan and achieve the performance goals

Objectives: The end, the goals

Plans: The product of strategy, the means to the end

Policies: Broad guidelines to action, which establish the parameters or rules

Question 12

Are employees always an organization’s most valuable resource? Why or why not? What criteria is required for organizations to achieve competitive advantage through their human resources?

Answer 12

In order to determine whether an organization’s resources will contribute to competitive advantage, four criteria must be satisfied. The resources must be:
VIRS
a. valuable
b. difficult to imitate
c. rare
d. hard to substitute

Question 13

Define “strategic human resources management” and discuss some of the major elements it encompasses

Answer 13

PPP

Strategic HRM is a set of interrelated practices, policies, and philosophies whose goal is to enable the achievement of organizational strategy.

These practices, policies, and philosophies form a system that attracts, selects, develops, trains, and motivates employees to ensure the effective functioning and survival of the organization and its members.

Question 14

What is human capital? What comprises human capital?

Answer 14

Sum

Human capital is the sum of employees’ knowledge, skills, experience, and commitment invested in the organization.

It is an intangible asset that comprises all the knowledge, education, vocation qualifications, professional certifications, work-related experience, and competence of an organization’s employees.

Question 15

What employee skills do employers look for if they have a differentiation strategy?

Answer 15

CLRB HOC W

∙ creative behaviour
∙ long-term focus
∙ interdependent activity
∙ risk-taking
∙ ability to work in ambiguous and unpredictable environment
∙ broad skills
∙ highly involved
∙ open communication
∙ ability to communicate
∙ willingness to accept feedback

Question 16

Identify and describe three ways that HR processes can be linked to business strategy

Answer 16

1. Start with organizational strategy and then create HR strategy.
   > Corporate strategy drives HR strategy – personnel needs are based on corporate plans
   > Resources are made to “fit” the corporate and business strategies.
   > Employees are considered a means to an end, not part of the strategy formulation equation.
2. Start with HR competencies and then craft corporate strategies based on these competencies.
   > This view argues that organizations cannot implement a strategy if they do not have the necessary human resources.
   > Tap into employee capabilities to develop new products and services
3. Do a combination of both in a form of a reciprocal relationship.
   > HR strategy contributes to business-level strategy and vice versa.
   > Senior HR vice-presidents are asked to provide input into strategic plans based on HR strategy and to generate the strengths and weaknesses for each plan.
   > HR determines business strategy, and business strategy determines HR strategy (reciprocal interdependence).

Question 17

What are the three ways in which HR becomes a strategic business partner?

Answer 17

Concurrent, insider, understand

∙ Concurrent strategy formulation – strategy development based on environmental analysis is conducted at the same time as HRM strategy.

∙ The HR senior management team moves from outsider status to insider status in terms of business decision-making.

∙ HR managers must understand the language of business or the outcome expectations of non-profit organizations. This includes analyses presented by marketing, financial, and operational managers.

Question 18

Describe one reason why strategic planning is important to organizations.

Answer 18

There are at least two reasons why strategic HR planning is so important:

(1) employees help an organization achieve success because they are strategic resources, and
(2) the planning process itself results in improved goal attainment.

Strategic HRM can improve an organization’s performance. An articulated vision for the future may result in a more effective organization through increased motivation and performance, lowered absenteeism and turnover, and heightened stability, satisfaction, and involvement.

Question 19

Explain external and internal fit.

Answer 19

HR programs must align with, or fit, the overall strategy of the organization. If the business strategy is to differentiate from competitors based on superior service, then selection and training programs should be developed to hire and train people in the skills and behaviours necessary to deliver superior service.

internal fit: a fit with other functional areas, such as marketing, and a fit among all HR programs.

Question 20

Discuss what makes HR planning so difficult. List three practical and three perceptual and attitude barriers to workforce planning

Answer 20

Practical Barriers - LLP SMU
• Leaders lack planning and business acumen
• Multiple planning horizons
• Organizational silos
• Moving targets—business goals are not clear
• Union restrictions, and barriers to internal
employee mobility

Perception and Attitude Barriers - RHM DL
• Resistance to change: “We always got by
in the past”
• Lack of a holistic approach
• It is Hard to measure success
• Seen as too daunting to change
• Considered to lack credibility

Question 21

Describe three ways Canadian companies are differentiating talent.

Answer 21

HMM KC

∙ Hot skills: skills that are in short supply and high demand in the labour market

∙ Mission critical skills: capabilities needed within an occupation (leadership skills)

∙ Mission critical roles: these are highly skilled, highly trained individuals who bring drive organizational value

∙ Key job family positions: these workers are well trained on core organizational processes, but are more easily replaced

∙ Contingent labour: temporary, demand-based and project-based workers

Question 22

How can employees provide a firm with competitive advantage?

Answer 22

If an organization manages its resources and capabilities, these advantages will result in competitive advantage.

∙ Typical resources might include human resources, proprietary knowledge, and reputation.

∙ Typical capabilities might include organizational adaptability, flexibility, and the speed of bringing new products to market.

Question 23

Identify and briefly describe the four sources that HR planners use to keep current with business and HR trends.

Answer 23

PPCP

Publications – HR professionals can actively scan Canadian newspapers, business publications, and HR magazines, journals, and newsletters. These publications can originate in Canada and/or the U.S.

Professional associations – These are organizations that professionals join to keep current with what is going on in their fields of study. Examples of these include the Human Resources Professionals Association (HRPA),

Conferences and seminars – Conferences, seminars, and workshops are an excellent way to stay current within the field. These have an educational component and usually include information on leading-edge trends and changes in the field.

Professional consultants – Experts in particular fields specialize in certain areas, such as human resource information systems or organizational development. Organizations that want the most up-to-date information on a particular area will hire external consultants to assist them.

Question 24

Identify three challenges in environmental scanning.

Answer 24

Can’t predict, much change. trends are not in isolation

1. It is not possible to accurately predict the future and to isolate what is really important to HR.
2. So much change is occurring in so many areas that scanners have trouble selecting the significant events.
3. Few trends exist in isolation. It is difficult to correlate a particular issue such as a labour shortage in a particular area with one particular causal factor.

Question 25

Identify and describe two of the six environmental factors affecting HRM.

Answer 25

1. Economic climate – Several economic factors, such as unemployment rates, the value of the Canadian dollar, and interest rates, may have an impact on HRM.
2. Globalization
3. Demographic factors – Population changes affect HR significantly. Examples of these are the retirement of baby boomers, the influence of women in the workforce, and Generation X and Y employees.
4. The labour market is the area from which an organization recruits its employees. This could include local, regional, provincial, national, or international areas. The number of people available for work depends on factors such as unemployment rates, geographic migration, and graduation rates
5. Social and cultural factors

Question 26

Define “stakeholders” and identify five major stakeholders influencing strategy in today’s workplace.

Answer 26

Stakeholders are groups of people who have an interest in the projects, policies, or outcomes of an organization’s decisions.

Typically, the most powerful stakeholders will include:
> the board of directors and senior executives
> senior management
> supervisors
> employees
> unions
Other stakeholders will include: shareholders, customers, vendors/suppliers, the public, government, non-government organizations, and any interested party who might be influenced by an organization’s decisions.

Question 27

Identify and briefly describe the four stages that HR planners use to analyze the external environment

Answer 27

SMFA

1. Scanning: an attempt to identify early signals of changes and trends in the environment. This information is ambiguous, incomplete, and unconnected.
2. Monitoring: a systematic approach to following some key indicators that may affect the organization, such as legislative changes.
3. Forecasting: after monitoring a trend, an attempt to project the possible impact on the organization.
4. Assessing: an attempt to describe the impact of the monitored trend on the organization and make a judgment of the probability of each of several possible outcomes.

Question 28

Identify and briefly describe the four criteria suggested for HR planners to use for identifying significant trends

Answer 28

RiPrScEn

1. Are there ripple effects (change in one aspect impacts another, such as social networking sites affecting both friendships and professional relationships)?
2. How profound are the impacts on people’s priorities, roles, and expectations?
3. How large is the impact scope (number of people impacted)?
4. Will the changes endure over time?

Question 29

Describe three actions that can be taken by HR managers to cope with economic uncertainty

Answer 29

Link increased expectations emphasis on leadership and succession rewards

> linking employee performance with organizational goals,
increasing expectations of employee productivity,
putting emphasis on succession planning and readiness,
investing in leadership development,
using non-cash rewards such as time off, time flexibility, learning opportunities, and retraining employees for new jobs.

Question 30

Define competitive intelligence (or business intelligence) and two methods that HR professionals can use to understand their competitors.

Answer 30

Formal approach to…

Competitive intelligence (or business intelligence) is a formal approach to obtain information about competitors.

WTH ask RC

> The simplest method is to study competitors’ websites for information about their strategies and plans for product launches.
Training employees to ask questions from vendors about the purchasing decisions of their competitors is another method.
Some organizations hire competitors’ employees to obtain insider information about future plans. These practices border on illegal or unethical.
Competitive intelligence methods must be subjected to two evaluation questions: Is the source reliable, and what is the likelihood of the information being correct?

Question 31

Describe the impact of technology on human resource management

Answer 31

RELTE

Requires changes in skills and work habits of employees: Employees have to be provided with constant training, and skills are no longer viable for decades.

Elimination of some lower-level positions and layers of management: Routine tasks, normally done by those lowest in the organization hierarchy, are automated, and the surviving employees need more advanced skills. Fewer managers and fewer layers of management are needed.

Less hierarchy, more collaboration: The adoption of technology decreases the need for management as a supervisory control technique. Power has shifted from management to technical workers, who hold the knowledge about system processes.

Telecommuting options: Telecommuting allows employees to locate farther from their offices, and allows employers to choose office facilities farther from major cities.

Electronic monitoring and employee privacy: Employers monitor email, social media etc. for several reasons, including legal compliance and liability, performance assessment and productivity measures, and security concerns.

Question 32

The Conference Board of Canada found that organizations reported three most important long-term HR priorities. What are they?

Answer 32

dws

> developing leaders
workforce planning
succession management

All these activities, including leader development, relate to the HR planning area. It is clear from these results that HR planning is a top priority of organizations.

Question 33

What is HR forecasting? Briefly describe the advantages that accrue to organizations from instituting effective HR forecasting procedures.

Answer 33

It constitutes the heart of the HR planning process and can be defined as ascertaining the net requirement for personnel by determining the demand for and supply of human resources now and in the future.

Benefits of HR Forecasting:
∙ reduces HR costs
∙ increases organizational flexibility
∙ ensures a close linkage to the macro business forecasting process
∙ ensures that organizational requirements take precedence over issues of constraint and scarcity

Question 34

Identify and describe the key personnel categories that are given the most attention by human resource forecasters

Answer 34

SEMR

∙ Specialist/Technical/Professional – workers holding trade qualifications that are in high demand or that require lengthy preparatory training for attainment of competency

∙ Employment-Equity Designated Group Membership – four main designated groups: people of Aboriginal descent, women, people with disabilities, and members of visible minorities

∙ Managerial and Executive Personnel – executives such as the CEO, president, vice-president, and other managers in the organization

∙ Recruits (New Entrants) – recruiting trainees either internally or externally

Question 35

Describe the macro- and micro-level perspectives of HR forecasting

Answer 35

The macro perspective takes into account general trends in society and the economy, whereas the micro level focuses more directly on challenges that are specific to the organization.

The planning process often moves from the macro level to the micro level as general organizational needs become specific departmental requirements.

Question 36

The human resource forecasting process in general can be described as following a basic pattern that flows from a macro perspective to a micro perspective. Describe this human resource forecasting process.

Answer 36

Determine staffing needs, Analysis of number required, create a budget, put programs in place.

∙ Determine the staffing needs by skills, skill levels, or jobs. This macro-level activity begins with a thorough understanding of the organization’s strategy and environmental scanning in order to determine the relevant pieces of information and types of analyses that are most suited to what is being forecast.

∙ Perform the analyses to determine the number of required employees. This involves an assessment of in-house skills and other internal supply characteristics as well as a determination of the demand requirement that must be met from external sources. The type of analysis can be qualitative or quantitative, and the focus of the analysis can range from simple headcounts to strategic scenario planning.

∙ Create a budget to determine the costs involved in fulfilling the stated organizational requirements.

∙ Put HR programs and policies into place to ensure that the demand and supply requirements are met, and track the results. Measures of production, efficiency, employee performance, or group performance may be used to assess the results of the forecasting process.

Question 37

List and briefly describe the HR programs that can be implemented to address HR surpluses and HR shortages

Answer 37

∙ HR shortages are addressed by: 
> recruitment, selection, and compensation schemes to attract new personnel
>  hiring part-time employees
> recalling laid-off workers or retirees
>  hiring temporary workers

HR surpluses are addressed through:
o employee layoffs or terminations
o job sharing
o reduction of hours or shifts
o hiring freeze and natural attrition

Question 38

Describe the methods used by organizations to fill its anticipated future requirements for personnel.

Answer 38

Internal, External

∙ Internal supply, which refers to current members of the organizational workforce who can be retrained, promoted, and transferred to fill anticipated future HR requirements

∙ External supply, which refers to potential employees who are currently undergoing training (e.g., university students), working for competitors, members of unions or professional associations, or in a transitional stage, between jobs, or unemployed.

Typically, most organizations use a mix of both internal and external supply, rewarding loyal employees who perform well with promotion and advancement possibilities and recruiting outside individuals who possess competencies not held by the present workforce.

Question 39

Discuss two skills that must be available to human resource forecasters

Answer 39

∙ Communication skills. Forecasting involves the entire business, not just a single functional area. Communication skills are necessary to deal with multiple departments and stakeholders, and to ensure that the processes used (both quantitative and qualitative) have gathered as much information as possible.

∙ Quantitative skills. 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. Fortunately, a variety of statistical software packages are available today, as well as many tutorials, both in class and online, to help users develop the skills to use the software.

∙ Strategic skills. Forecasting is ultimately linked to the resources that are necessary to implement the firm’s strategy. HR planners must be able to connect business challenges and business requirements to human capital requirements in order to be successful. Understanding the actions and outcomes that drive success in the business is critical to the ability to forecast the human capital necessary to perform those actions.

Question 40

Discuss one advantage of HR forecasting

Answer 40

Reduce HR costs

One advantage is reduced HR costs. Effective HR forecasting focuses on a comparison between the organization’s current job-related knowledge, skills, abilities, and other characteristics (KSAOs) that workers must have to perform successfully in the position and those desired in the workforce of the future.

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.

In this manner, organizations can reduce their HR costs as they take a long-run planning approach to HR issues. This means that organizations will be less likely to have to react in a costly last-minute crisis mode to unexpected developments in the internal or external labour markets. Proper planning will ensure that any inefficiencies can be avoided as much as possible.

Question 41

Define and provide an example of generic human capital and firm-specific human capital

Answer 41

Generic human capital represents the knowledge, skills, and abilities that are held by employees and that are useful to the firm. It 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.

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.

Question 42

Describe ratio analysis and outline the steps involved in conducting this forecasting method.

Answer 42

> it is a quantitative forecasting technique
it reveals the historical relationship between the operational index and the number of employees required by the organization (the demand for labour)

STTCC

Steps in conducting a trend analysis:

1. Select the appropriate business/operational index.
2. Track the business index over time.
3. Track the workforce size over time.
4. Calculate the average ratio of the business index to the workforce size.
5. Calculate the forecasted demand for labour.

Question 43

What are the most common operational indices used by organizations?

Answer 43

Common operational indices:
> sales level
> number of units produced
> number of clients serviced
> production hours (direct labour hours – DLH; indirect labour hours – ILH)

Question 44

Describe what an “expert” demand forecast is and list five different types of experts who could be involved.

Answer 44

An expert forecast is a qualitative process for determining future labour requirements, a detailed process of stating assumptions, considering potential organizational and environmental changes, and deriving a rationale to support the numerical estimate. Different experts that can be involved in the process are:
∙ line managers
∙ HR and business planning staffs
∙ business consultants
∙ financial analysts
∙ university researchers
∙ union staff members
∙ industry spokespersons
∙ federal, provincial, and local government staff (e.g., Human Resources Development Canada, Statistics Canada)

Question 45

Identify and describe two different types of expert forecasting methods.

Answer 45

Two different types of expert forecasting methods are:

> the Delphi technique and the nominal group technique.

> The Delphi technique is a carefully designed program of sequential, individual interrogations (usually conducted through questionnaires) interspersed with information feedback on the opinions expressed by the other participants in previous rounds.

> Nominal group technique is a qualitative long-run forecasting technique utilizing expert assessments. Groups of experts meet face-to-face to discuss their individual findings on a specific issue and then silently vote or rank their findings on that issue.

Question 46

What are some the advantages and disadvantages of the Delphi technique?

Answer 46

Advantages include:
> It avoids problems associated with face-to-face groups: mainly, reluctance of individual experts to participate because of shyness, perceived lower status or authority, perceived communications deficiencies, issues of individual dominance, and groupthink.
> It serves as a great equalizer.
> It elicits valid feedback from all members.
> It can draw information from people located in a variety of geographical areas.

Disadvantages of this method include:
> Time and costs increase due to questionnaire series administered.
> Results cannot be validated statistically.
> It is dependent on individual knowledge and commitment of experts.
> If experts are drawn from one professional field, their common professional training will guide them along a single line of inquiry rather instead of pursuing more innovative courses of action.
> If insufficient attention has been paid to developing criteria for the identification and selection of experts, the personnel selected to derive the demand forecasts may lack sufficient expertise or information.

Question 47

Describe how HR Budgets are applied in HR demand forecasting.

Answer 47

HR budgets are quantitative, operational, or short-run demand estimates that contain the number and types of personnel required by the organization as a whole and for each sub-unit, division, or department.
> HR budgets are prepared by the HR staff in conjunction with line managers.
> They consider historical trend information, competitor staffing practices, industry and professional associations, and Statistics Canada.
> They give a prediction or single estimate of future HR demand.
> The HR budget process produces a staffing table.

Question 48

Describe how HR staffing tables are applied in HR demand forecasting.

Answer 48

> The HR budget process produces a staffing table.
Staffing tables have information related to specific operational assumptions (for example, increasing sales by five percent over last year).
Staffing tables present the total HR demand requirement for operational or short-run periods.

Question 49

What is envelope/scenario forecasting? Describe some of its features.

Answer 49

Envelope/scenario forecasting uses projections, or multiple-predictor estimates, of future HR demand for personnel based on a variety of differing assumptions as to how future organizational events will unfold.

> comprehensive future planning of operational and short-run HR demand
multiple-predictor estimates
several plausible outcomes developed based on the premise that we have certain knowledge of future events
cause and effect events linked together
brainstorming sessions with line managers and HR managers to develop scenarios
combined expert view of the workforce over the next five years formulated
works backwards to identify key change points

Question 50

Describe the process of scenario planning, including its strengths and limitations in determining HR demand.

Answer 50

Scenario planning is a method for imagining future possible conditions in which the organization might operate. As a technique, it requires participants to challenge existing assumptions and to generate vivid pictures of possible future states.

The general process of scenario planning is as follows:

1. State the question about the future state of the firm or environment.
2. Generate a list of factors that are likely to influence the outcome in question.
3. Sort the factors into naturally occurring groups and rank the groups according to their importance to the change initiative and the ability of the firm to control the factor. Factors that the firm has less ability to control should receive higher rankings.
4. Select the two groups of factors that are likely to have the strongest and most unpredictable impact on the question.
5. Name and describe in story form each of the four worlds in the four resulting quadrants.
6. Suggest the skills, competencies, and other organizational requirements that would be necessary for the firm to be able to operate in each of these four worlds.
7. Generate a demand forecast necessary to fulfill the firm’s requirements in each of the four worlds

Question 51

There are two main factors that determine whether a quantitative model or qualitative model is a better choice in determining HR demand. Describe these two factors.

Answer 51

The two main factors that determine whether a quantitative model or qualitative model is a better choice are:

> the degree of uncertainty involved in the demand forecast, and
the volume and complexity of the data that are available to assist in creating the demand forecast.

In general, quantitative models are better when forecasting demand in stable markets when there is a high degree of certainty in the relationship between the demand for labour and the indicators of that demand. As the volume and complexity of data that are available increase, quantitative models can deal with higher levels of uncertainty, but when uncertainty becomes very high, qualitative models become preferable.

Question 52

There are six steps associated with using the Delphi technique for HR demand forecasting. List these steps.

Answer 52

DIO IIC

1. Define and refine the issue or question.
2. Identify the experts, terms, and time horizon.
3. Orient the experts.
4. Issue the first-round questionnaire.
5. Issue the first-round questionnaire summary and the second round of questionnaires.
6. Continue issuing questionnaires.

Question 53

In reference to forecasting HR demand, define simulation.

Answer 53

Simulation is a blend of qualitative and quantitative modelling that incorporates a set of assumptions about relationships among variables in a mathematical algorithm. Simulation can simultaneously model demand and supply, and is very useful for testing the impact of assumptions on the outcome of the model.

Question 54

The simulation process can be broken down into several steps; list these five steps.

Answer 54

The simulation process can be broken down into several steps:

1. Using qualitative methods, collect the relevant variables. This process can use interviews, focus groups, Delphi, or NGT to collect the information.
2. Describe how these variables interact together by developing a process model to map the relationships between variables. Line managers who have direct experience with the manner and ways in which the demand for human capital changes over time and with sales are in an excellent position to provide insights to this process.
3. Use simulation software and develop the algorithms to estimate the model. The range of assumptions developed qualitatively are used to run the simulation several thousand times. The output of the simulation presents a range of outcomes that occur most of the time. This range of outcomes represents the envelope of estimates over which a demand estimate is likely to occur given the current set of assumptions.
4. Test the model using historical data to validate the assumptions used in its development.
5. Different assumptions can be easily tested in the model by inputting new scenarios and re-running the simulation.

Question 55

Identify five specific strategies that organizations can employ to help retain existing staff.

Answer 55

Some possible strategies include;
• All managers should be held responsible for the retention of their personnel, and managerial performance evaluation should incorporate specific measurable goals in this regard.

• Greater emphasis should be placed on high-performing and high-potential employees by offering training and development opportunities, special assignments, transfers, and promotions, etc.
• Form a “retention task force” comprised of HR personnel, line managers, and senior executives to examine specific practices and programs that can be implemented to increase retention.
• Reinforce employee loyalty by promoting from within wherever possible.
• Review and address compensation and working conditions before they become issues for dissatisfaction that prompt employees to leave the organization.
• Measure turnover on an ongoing basis at a corporate, divisional, and local level.

Question 56

Using the Markov model, what are the five possible movements/changes that an employee can make in an organization?

Answer 56

1. remaining in the current job
2. promotion to a higher-classified job
3. a lateral transfer to a job with a similar classification level
4. exit from the job:
   o termination
   o lay-off
   o voluntary leaving by the employee
5. demotion

Question 57

What is the difference between a skills inventory and a management inventory?

Answer 57

∙ A skills inventory is an individualized personnel record prepared on each employee except those currently in management or professional positions. A typical skills inventory will include the following:
o employee number
o job classification
o certificates
o licenses
o diplomas
o degrees

A management inventory is an individualized personnel record for managerial, professional, or technical personnel that includes all elements in the skills inventory with the addition of information on specialized duties, responsibilities, and accountabilities.

∙ history of management or professional jobs held
∙ record of management or professional training courses and their dates of completion
o size of budget controlled
o number of subordinates,

Question 58

Why do many organizations give preference to internal human resource supply?

Answer 58

∙ Selecting employees for training and development and subsequent promotion enables the organization to reinforce employee loyalty and performance.

∙ Employees are already socialized to the rules, norms, and procedures of the organization.

∙ Employee motivation and commitment to the organization may increase when you reinforce their past loyalty and performance.

∙ Employers possess knowledge (e.g., HRMS files) on their performance and knowledge, skills, and abilities (KSAs) (e.g., work history and experience).

∙ Internal labour markets provide employees some protection from economic downturns, as employees can move from one job type to others.

Question 59

If an organization cannot find a sufficient supply of external labour for certain jobs, what might it consider?

Answer 59

∙ Changing the nature of the job
∙ Training workers
∙ Looking at other labour pools (such as designated groups, older workers)
∙ Making jobs more attractive
∙ Changing the working conditions
∙ Changing the perceptions about the job
∙ Lobbying government to increase training programs

Question 60

It has been found that older workers (50 and over) desire many of the same things that other workers feel are important in their workplace. List five of these factors.

Answer 60

∙ Flexible working options
∙ Training and development
∙ Job design
∙ Recognition and respect
∙ Performance evaluation
∙ Compensation

Question 61

describe two steps an organization can take to help attract and retain talented employees?

Answer 61

∙ Pay is not the main reason for losing talent. Pay attention to “toxic” bosses and co-workers, bad management practices, and a lack of autonomy and respect at work.

∙ Implement flexible working arrangements to facilitate work–life balance (e.g., flexible work hours, compressed workweek, telecommuting, job sharing, daycare centres, and so on)

∙ Hold regular feedback and career development discussions with employees.

∙ Recognize that talented, highly motivated employees do not view training as a discretionary item that should get cut during the first round of annual budget reviews!

∙ Deal with “slackers” and underperformers! Talented employees resent being burdened with additional stress and workload.

∙ Review and pare to a minimum the following potential “dissatisfiers”: rules, regulations, micromanagement, policy manuals, meetings, and so on.

Question 62

Discuss the disadvantages of internal staffing and the advantages of external staffing.

Answer 62

Some possible disadvantages of internal recruiting include:
> poor morale (leading to possible turnover) for workers not promoted;
> overtime costs; internal competition that can reduce worker cooperation;
> current employees who lack the knowledge, experience, or skills needed for placement in a vacant or new position; and new ideas may be limited.

Some possible advantages of external recruiting include:
> the ability to acquire competencies that may not be available within,
> new ideas and novel ways of solving problems that may emerge,
> reduced overtime costs.