week 4 Flashcards
- Is an HRM practice that helps
managers in predicting the
various HR needs relating to
acquiring,
positioning
utilizing employees - The aim is to aid managers in
placing employees where they
fit (qualifications-wise), so as to
help the company achieve its
goals
Human Resource
Planning
is an organization’s process of formulating and implementing its strategies
and assessing their effects on the internal and external environment of the firm.
Strategic Planning
Corporate Strategic Plan activities:
- Specify long term-goals
- Environtmental scanning
- Industry/ competitor
- Forecast demand for employees
- Action plan
Human Resource Planning
- Formulate management philosophy
- Create healthy company culture
- Competitor benchmarking
- Outline code of conduct
- Predict HR demand
jointly set objectives in
relation to the firm’s processes and human resources.
Strategic planning and HR Planning
The Process of Human Resource Planning
- Organizational Mission, Goals, Objectives, and strategic requirements
- Current manpower inventory
- Forecasting demand and supply
- Manpower gaps
- Employee plan
- Decide action
new hires, contingent workers, transfers, re-instated employees
increase
resignation, retirement, study leaves, dismissal, lay-off, job
abandonment, death and other factors
Decrease
Factors that Affect HRP:
- Company’s goals, objectives, and strategies.
- Time spent for planning HR needs
- Uncertainties of business activities
- Exactness of forecasting manpower needs.
- Structural design of the c Internal and external availability of manpowerompany
- Internal and external availability of manpower
Managers need to regularly predict their HR needs and the core competencies of
the firm as part of their strategic planning activity and won’t end up experiencing
surpluses or shortages of people.
Forecasting
Focus on three
major
considerations:
- Predicting demand for labor;
- Predicting supply of labor;
- Reconciling the gap between demand and supply of labor
Two Methods of Predicting HR Needs:
- Quantitative approaches
- Qualitative approaches
It covers the use of numerical
information or mathematical
procedures in analyzing data
Quantitative Approaches
- Is based on the concept that what was happened in the past will give the HR officer an
idea what will take place in the future. - Ties past employment flows to subsequent labor needs
Trend Analysis
Managers chart trends that affect the number of employees based on certain
variables such as:
➢ sales volume and employee
➢ count during a certain business
➢ period
The process of anticipating future HR demands by
calculating the precise ratio between certain variables. This
methods is considered more accurate than trend analysis.
Ratio Analysis
- In this method, the organization draws lines and marks called a scatter diagram. It then
calculates a regression line which goes through the middle of the marks on the scatter
diagram - Is identical to both trend and ratio analyses in such a way that forecasts are based upon the
relation between certain predictors like sales volume and number of employees
Regression Analysis
- This is based on the opinions or gut feel of some selected members of the
organization outside experts or others concerned with the future labor needs of
the company. - This methods is often seen as subjective and judgmental hence, biases are most
likely to occur
Qualitative Approaches
Is a type of qualitative forecasting method that aims to minimize biases of
forecast by seeking expert opinions and summing up their decisions
Delphi Technique
The process where the company needs to execute the work at a
specific time
Supply forecasting
:the organization forms a cluster showing the line of positions from which
employees can anticipate growth
Supply Forecasting step 1
each work group, state which of the incumbents will stay in their
current positions, how may are listed for possible transfer, promotion, and retirement
Supply Forecasting step 2
If there are more workers than jobs, the first action is to downsize, which typically refers to
Lay-off
due to some undesirable effects of lay-offs, managers may consider options such as:
- Suspend hiring
- Sets limits to overtime
- Avoid contingent workers
- Early retirement
- Reduce pay
- Job sharing
- Offer career breaks like study leave
