(Week 5) Ch.5 Comprehensive Human Resources Planning: Forecasting Supply, Demand, and Balancing Strategies

Human Resources Planning

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.

Forecasting the Availability of Candidates

Supply

Forecasting Future HR Needs

Demand

Planning and implementing HR Programs

To Balance Supply and Demand

Internal Labour Supply Monitoring

Skills inventories and Management Inventories

Replacement Charts

Replacement Summaries

Succession Planning

A strategy for identifying and developing future leaders.

Markov Analysis

A tool used to forecast internal human resources supply.

External Labour Supply Monitoring

Economic conditions, Market and competitive trends, New or revised laws relating to HR, Social Concerns, Technological Changes, Demographic Trends.

Trend Analysis

Predicts future needs based on past employment levels.

Ratio Analysis

Ratio of business activity and number of employees needed (Ex. Sales revenue per salesperson).

Scatter Plot

Used to determine whether two factors (business activity and staffing levels) are related.

Regression Analysis

Examines the statistical relationship between business activity and employees.

Nominal Group Technique

Involves a group of experts meeting face to face.

Delphi Technique

Judgmental forecasting method involving outside experts as well as organizational employees.

Staffing Table

A pictorial representation of all jobs within the organization, along with number of current incumbents and future employment requirements.

Labour Surplus

The internal supply of employees exceeds the organization's forecasted demand.

Labour Shortage

The internal supply of human resources cannot meet the organization's needs.

Labour Reduction Methods

Hiring Freeze/ Attrition, Job Sharing, Work Sharing, Reduced Workweek, Early retirement buyout programs, Layoff, Termination, Leave of absence.

Internal Solutions to Labour Shortage

Transfer, Promotion, Employee Retention.

External Solutions to Labour Shortage

Recruitment.