Textbook Notes (368,794)
Canada (162,165)
MHR 523 (321)
Chapter 5

Human Resources Management Chapter 5

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Human Resources
MHR 523
Kristyn Scott

Chapter 5 STRATEGIC IMPORTANCE OF HUMAN RESOURCES PLANNING Human resources planning (HRP): the process of forecasting future human resources requirements to ensure that the organization will have the required number of employees with the necessary skills -existing labour shortage in Canada is forecast to increase to one million workers over the next 15 years -Human resources planning model: step 1) Forecast demand for labour -considerations & techniques utilized Step 2) Analyze Supply -internal & external analysis Step 3) Implement human resources programs to balance supply and demand -labour shortage & surplus -Conditions and possible solutions: A) When labour demand exceeds labour supply -performance management, training and retraining, and career development play a critical role B) When labour supply exceeds labour demand -evaluating the effectiveness of layoffs and downsizing is critical, as is managing ^ZµŒÀ]À}ŒZ] lLZZ_ C) When labour demand equals labour supply -performance management, training, and career development are critical in achieving balance THE RELATIONSHIP BETWEEN HRP AND STRATEGIC PLANNING -determining how many people will be available is a critical element of the strategic planning process; decisions regarding how positions will ]ooKµZš]Lš2ŒšÁ]šZ}šZŒZ‰ šZ}šZ]ŒK[Z,Z plans -HRP and strategic planning become effective when a reciprocal and interdependent relationship exists between them THE IMPORTANCE OF ENVIRONMENTAL SCANNING -external environmental factors most frequently monitored: -economic conditions (general, regional, and local) -market and competitive trends -new or revised laws and the decisions of courts and quasi-judicial bodies -social concerns related to health care, childcare, and educational priorities -technological changes -demographic trends www.notesolution.com STEPS IN HRP 1) Forecasting future human resources needs (demand) 2) Forecasting the availability of internal and external candidates (supply) 3) Planning and implementing HR programs to balance supply and demand STEP 1: FORCASTING FUTURE HUMAN RESOURCES NEEDS (DEMAND) 1) Manufacturing firm, sales are projected first 2) Volume of production required to meet these sakes requirement 3) Staff needed to maintain this volume of output is estimated In addition: 1) Projected turnover as a result of resignations or terminations 2) Quality and nature of employees in relation to what management sees as the changing needs of the organization 3) Decisions to upgrade the quality of products or services or enter into new markets, which might change the required employee skill mix 4) Planned technological and administrative changes aimed at increasing productivity and reducing employee headcount, such as the installation of new equipment or introduction of a financial incentive plan 5) The financial resources available to each department QUANTITATIVE APPROACHES @ŒLLoÇZ]Z9]LÀ}oÀZZšµÇ]L2šZ]ŒK[ZK‰o}ÇKLšoÀoZ}ÀŒšZoZš]ÀÇŒZ}ŒZ}š}‰Œ] š future needs Ratio analysis: involves making forecasts based on the ratio between some casual factor (such as sales volume) and the number of employees required (e.g. # of salespeople) Scatter plot: determines whether two factors are related Regression analysis: a statistical technique to determine the line of best fit QUALITATIVE APPROACHES Nominal group technique: involves a group of experts (e.g. first line supervisors and managers) meeting face to face Delphi technique: a judgemental forecasting method used to arrive at a group decision, typically involving outside experts as w
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