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Canada (161,710)
LS 222 (19)
Chapter 6

Chapter 6: HR forecasting process

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Department
Legal Studies
Course
LS 222
Professor
Jennifer Schulenberg
Semester
Winter

Description
Chapter 6: HR Forecasting Process • HR forecasting: heart of HR planning process, can be defined as ascertaining the net requirement for personnel by  determining demand for and supply of human resources now and in the future Forecasting Activity Categories • Transaction based forecasting: forecasting that focuses on tracking internal change instituted by the organization’s  managers • Event based forecasting: forecasting concerned with changes in the external environment • Process based forecasting: not focused on specific internal organizational event but on flow or sequencing of several work  activities • More successful HR forecasting processes use qualitative and quantitative data o Accuracy of prediction improves significantly when using variety of forecasting techniques Benefits of HR Forecasting 1. Reduces HR Cost  a. Comparison between organization’s current stock of workforce KSAs and numbers, skills competencies, etc b. Facilitates proactive, sequential approach to developing internal workers and is concurrent with activities focused on  obtaining best external recruits from competitors, universities and training programs c. Less likely to have to react in costly last minute crisis mode to unexpected developments in internal and external  labour markets 2. Increases Organizational Flexibility a. Proactive process increases number of viable policy options available to organization i. Enhancing flexibility b. Processes develop program options that can determine whether it is more advantageous and cost effective to retrain  current members of workforce i. Fill anticipated job openings or fill openings with external recruits who has competencies and skills c. Predicted to trends, assumptions, scenarios, and various planning time horizons i. Encourages development of wide range of possible policy options and programs 3. Ensures a Close Linkage to the Macro Business Forecasting Process a. Serious problem develops when personnel planning process becomes divorced and disconnected b. Implementing of forecasting process helps to eliminate possibility that personnel policies of organization i. Takes lead from specific production, market share, profitability, and operational objectives set by top  management 1. Established from proactive internal and environmental scans of market and competitor SWOT,  resources and policy actions c. once established, forecasting analyses are set in motion i. determine feasibility of proposed operational objectives with respect to time, cost, resource allocation and  other criteria of program success d. establishes overall organizational objectives, put into forecasting process e. staff analyze whether objectives can be met with policies and programs f. Decision makers must i. Be aware of key HR issues and constraints that might affect organizational plans for success ii. Ensure HR objectives are aligned with organization’s operational business objectives 4. Ensures Organizational Requirements Take Precedence over Issues of Resource Constraint and Scarcity a. Demand: organization’s projected requirement for human resource b. Supply: source of workers to meet demand requirements, obtained either internally or from external agencies c. Sequence is not accidental; reinforces fact that attainment of desired organizational goals and objectives must take  priority over all issues concerning scarcity and other implementation issues Key Personnel Analyses Conducted by HR Forecasters 1. Specialist / Technical / Professional Personnel a. Workers hold trade qualifications that are in high demand / require lengthy preparatory training for attainment of  skill competency b. Give attention to benchmarking compensation schemes to meet or lead industry standards to attract and retain  people who perform well in these categories 2. Employment Equity – Designated Group Membership Chapter 6: HR Forecasting Process a. Designated groups: identifiable groups deemed to need special attention; in case of Canadian HR, they are  Aboriginal descent, women, people with disabilities, and members of visible minorities b. Attention be paid to monitoring members with respect to opportunities for employment, promotion, training and so  on 3. Managerial and Executive Personnel a. Ensure execs and managers possess skills required for success in their specific environmental niche i. Interacts with key stakeholder groups and are responsible for goal setting b. Leadership talent must be identified; assessments and appraisals must be conducted 4. Recruits a. External or internal? b. Goal of HR forecasting: i. Identify organizational goals, objectives and plans ii. Determine overall demand requirements for personnel iii. Assess in house skills and other internal supply characteristics iv. Determine net demand requirements that must be met from external, environmental supply sources v. Develop HR plans and programs to ensure that right people are in the right place Environmental and Organizational Factors Affecting HR Forecasting • HR forecasting process is complex o Specific numerical and skill competency targets Organizational • Corporate mission, strategic goals • Operational goals, production budgets • HR policies • Organizational structure, restructuring, mergers, and so on • Worker KSAs/ competencies and expectations • HRMS level of development  • Organizational culture, workforce climate and satisfaction, and internal communication • Job analysis: workforce coverage, current data External / Environmental • Economic Situation • Labour markets and unions • Government laws and regulations • Industry product life cy
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