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Chapter 3 mhr.docx

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Human Resources
MHR 523
Pat Sniderman

Chapter 3 MHR - Human resource planning can help the company succeed, or fail where a business may have an office full of workers, but those workers may not have the qualifications to do their jobs properly Relationship of HRP to strategic planning 92 - Human resource planning predicts the future demand and supply of employees and tries to meet the demand in the future with supply Proper staffing is critical for success - If an organization is not staffed with the people with the necessary qualifications or there isnt enough people, strategic success is in danger Different strategies require varying HRP - Companys growth and expansion strategies are associate with aggressive hiring, training and maybe even promoting employees - A retrenchment or a strategy that focuses on reducing costs, because we are reducing costs we lay people off or try to make people retire early Human resource planning facilitates proactive responses - Human resource planning improves the recruiting, selection and training strategies which help companies meet their legal obligations but they also help them face their challenges proactively Successful tactical plans require appropriate human resource plans - Strategic plans are carried out through short range, tactical plans that focus on current operations - The organizational strategy sets the objectives for HR which HR achieves through HR plans. - HR planning involves the creation of an HR vision for the future where it answers questions i) What should our employees look like? What skills should they possess, how would we prepare our employees for future challenges and opportunities? - employment planning is used by large organizations as it helps them page 94 - HR planning benefits both small and large corporations where for small businesses it shows the HR considerations they must take into account if they want to expand. For large employers, they benefit from the knowledge of employment planning as it helps them discover ways to make HR more effective The demand for HR - Future demand for people is important to employment planning Causes of demand - The demand for HR is affected by changes in the environment, organization and the workforce, some changes are controlled by the organization, some are not External challenges. - Economic developments: Changes in the environment are difficult for people to know in the short run and impossible to determine in the long run. - Social-political-legal changes: Changes that occur in the social-political-legal level are easy to predict but the outcomes of these changes are not clear. As demographics changes, the employees attitudes toward work and their employers change. - Technological changes: Are difficult to predict, affect demand and supply for HF - Technological changes reduce employment in one department while increasing employment in another Organizational decisions - these are Major organizational decisions affect demand for HR i) Strategic plan - The strategic plan is what commits the business to long term objectives - Strategic plans clarify the mission and objectives of the organization and the plans for achieving these objectives - The objectives determine the type of person and the quantity of people needed to be able to fulfill these objectives ii) Budget - Budget increases/cuts are the most important short run influence on HR demands iii) Sales and production forecasts - Are less accurate than budgets, but provides a quicker way to notice a change in HR demand iv) New ventures - New ventures create new human resource demands. - When a new venture commences within the organization, there is enough time to develop short run and long run employment plans but new ventures that are caused by an acquisition or a merger causes an immediate change to the human resource demands. - As a result of an acquisition or merger, jobs may be lost in order to avoid duplication while creating new jobs to smoothen the operation of the merged units v) Organizational and job design - Changes in the structure of the business have implications for HR needs - Automation, computerization and job redesign cause changes in human resource need estimates Workforce factors - Demand for HR is influenced by what an employee does that affects their employment status Forecasting human resource needs - Forecasts are what we think we will need in the future and the changes as well - HR forecasts is a method of determining what the organization will need in terms of staffing - Sophisticated techniques are not perfectly accurate, therefore they are seen as an estimates Expert forecasts - Expert forecasts are made by those who are well informed to determine future HR needs - Nominal group technique is a focused, group discussion where members first document their ideas and share them. They then discuss this information with each other and are recorded and ranked in terms of importance. - A good way to determine future demand for HR is to survey managers about their departments future employment needs, this allows them to create a formal plan that will determine the organizations future demand - If we cannot arrange a meeting with the managers, we must use the Delphi technique which is where we ask questions about future events to experts using repeated surveys until we reach a conclusion that is shared by all of them. Trend projection forecasts - Two methods of trend projection forecasts are extrapolation and indexation - Extrapolation is where we apply trends in the past to the future - Indexation is where we estimated the future employment needs by matching employment growth with a chosen driver - In indexation, it is important to note that the growth or decline rate in the labor force will be different in growth and downsizing periods. - Both of the aforementioned methods are short run approximations as they assume that the causes of demand will not change, they are inaccurate for long range HR projections. Other forecasting methods Budgeting and planning analysis - Employers that need HRP have detailed budgets and long range plans New venture analysis - New venture analysis can be used when new ventures complicate employment planning therefore it requires planners to estimate the HR needs by comparing the two firm that perform similar operations Computer based simulation models - The more complicated forecasting approaches involve computers
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