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Chapter 5

Chapter 5 – Human Resources Planning.docx

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Ryerson University
Human Resources
MHR 523
Pat Sniderman

Chapter 5 – Human Resources Planning The 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 to meet its strategic objectives The Relationship between HRP and Strategic Planning - strategic plans are created and carried out by people  determining how many people will be available is a critical element of the strategic planning process - failure to integrate HRP and strategic planning can have very serious consequences The Importance of Environmental Scanning - most successful organizations are prepared for changes before they occur - the external environmental factors monitors: o economic conditions (general, regional, and local) o market and competitive trends o new or revised laws and the decision of courts and quasi-judicial bodies o technological changes o demographic trends - economic conditions affect supply and demand for products and services  affects the # and types of employees required Steps In Human Resource Planning - Step 1: Forecasting Future Human Resources Needs (Demand) 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 5. The financial resources available to each department - needs forecasting is primarily quantitative - qualitative approaches to forecasting range from sophisticated analytical models to informal expert opinions about future needs - Quantitative Approaches: o Trend analysis: the study of a firm’s past employment levels over a period of years to predict future needs o Ratio analysis: a forecasting technique for determining future staff needs by using ratios between some causal factor (such as sales volume) and the number of employees needed o Scatter plot: a graphical method used to help identify the relationship between two variables o Regression analysis: a statistical technique involving the use of a mathematical formula to project future demands based on an established relationship between an organization’s employment level (dependent variable) and some measurable factor of output (independent variable) - Qualitative Approaches: o Nominal group technique: a decision-making technique that involves a group of experts meeting face to face. o Delphi technique: a judgmental forecasting method used to arrive at a group decision, typically involving outside experts as well as organizational employees. Ideas are exchanged without face-to-face interaction and feedback is provided and used to fine tune independent judgments until a consensus is reached. - Managerial Judgment: judgment is needed to modify the forecast based on anticipated changes - Staffing table: a pictorial representation of all jobs within the organization, along with the number of current incumbents and future employment requirements (monthly/yearly) for each. - Step 2: Forecasting the Availability of Internal and External Candidates (Supply) 1. Internal – present employees who can be transferred or promoted to met anticipated needs 2. External – people in the labour market not currently working for the organization, including those who are employed elsewhere and those who are unemployed - Forecasting the Supply of Internal Candidates: o Markov analysis: a method of forecasting internal labour supply that involves tracking the pattern of employee movements through various jobs and developing a transitional probability matric o Skills inventories: manual or computerized records summarizing employees’ education, experience, interests, skills, and so on, which are used to identify internal candidates eligible for transfer and/or promotion o Management inventories: records summarizing the qualifications, interests, and skills of management employees, along with the number and types of employees supervised, duties of such employees, total budget managed, previous managerial duties and respon
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