MHR 523 Lecture Notes - Lecture 3: Job Sharing, Employee Retention, Golden Parachute
2 Jul 2018
School
Department
Course
Professor
01/02/18 Week 3
Human Resource Planning
● The process of forecasting future human resource requirements to ensure the
organization will have the required number of employees with the necessary skills to
meet its strategic objectives.
Human Resource Planning Model
Forecasting Labour Supply Forecasting Labour Demand
Considerations
● Organization’s current and expected
organizational and HR policies.
● Changes to the external labour force
(general economic conditions, labour
market conditions, occupational
market conditions).
Techniques Used
● Skills inventory and management
inventories.
● Replacement charts and replacement
summaries.
● Success plans
● Markov analysis
Quantitative Techniques
● Trend analysis
● Ratio analysis
● Scatterplots
● Regression analysis
Qualitative Techniques
● Nominal group technique
● Delphi technique
Gap Analysis
Comparing forecasted demand to forecasted supply to determine if there is a projected labour
equilibrium, shortage, or surplus.
Solution Analysis
Determine the next course of action to reach the point of a labour equilibrium.
Steps in Human Resource Planning
1. Forecasting the availability of candidates (supply).
find more resources at oneclass.com
find more resources at oneclass.com
2. Forecasting future HR needs (demand).
3. Planning and implementing HR programs to balance supply and demand.
Forecasting the Supply of Internal Candidates
● Skills inventories
○ Manual or computerized records summarizing employee’s education, experiece,
interests, skills and so on, which are used to identify internal candidates eligible
for transfer or promotion.
● Replacement charts
○ Visual representation of who will replace whom in the event of a job opening.
Likely, internal candidates are listed along with their age, present performance
training, and ‘promotability status’.
● Succession plans
○ The process of ensuring a suitable supply of successors for current and future
senior or key jobs so that the careers of individuals can be effectively planned
and managed.
● Markov analysis
○ A method of forecasting internal labour supply that involves tracking the pattern
of employee movements through various jobs and developing transitional
probability matrix.
Forecasting the Supply of External Candidates
Market conditions assessed:
● General economic conditions
○ Interest rates, wage rates, inflation, unemployment rates.
● Labour market conditions
○ Demographics: education levels, age, gender, marital status.
● Occupational market conditions
○ Relevant occupations (as applicable): e.g. engineers, skilled labour, accountants.
Forecasting Future Human Resources Needs (Demand)
● Quantitative techniques
○ Trend analysis
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
The process of forecasting future human resource requirements to ensure the organization will have the required number of employees with the necessary skills to meet its strategic objectives. Regression analysis market conditions, occupational market conditions). Comparing forecasted demand to forecasted supply to determine if there is a projected labour equilibrium, shortage, or surplus. Determine the next course of action to reach the point of a labour equilibrium. Steps in human resource planning: forecasting the availability of candidates (supply), forecasting future hr needs (demand), planning and implementing hr programs to balance supply and demand. Manual or computerized records summarizing employee"s education, experiece, interests, skills and so on, which are used to identify internal candidates eligible for transfer or promotion. Visual representation of who will replace whom in the event of a job opening. Likely, internal candidates are listed along with their age, present performance training, and promotability status".
