HRM for MBA Chapter 2

8/12/2019 HRM for MBA Chapter 2

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Dessler, Cole, and Sutherland

Human Resources Management in Canada

Canadian Eighth Edition

Chapter Two

Human Resources

Planning

2002 Pearson Education Canada Inc., Toronto, Ontario 5-1


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The Nature of Human Resources

Planning

HR Planning

-review human resources requirements to

ensure:

-the necessary number of employees

-the necessary employee skillsto meet organizational goals


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Planning

Forecastdemand

Analyzesupply

Plan and implement

programs to balance

supply and demand


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Planning

-achieve goals and objectives

-plan staffing and development activities

-achieve economies in hiring

-make major labour market demands

Importance of HR Planning (1 of 2)


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Planning

-anticipate and avoid staff shortages/surpluses

-control/reduce labour costs

-utilize employee capabilities effectively

-establish employment equity goals/timetables

Importance of HR Planning (2 of 2)


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Planning

-vacant positions create costly inefficiencies-overtime hours at premium cost

-simultaneous layoffs and hiring

-mass layoffs requiring:

-severance pay

-extended notice periods

Results of Inadequate HR Planning (1 of 3)


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Planning

-ineffective training, development, career planning

-inability to promote from within

-turnover of high performers

-problems with employment equity goals-inability to meet operational and strategic plans

Results of Inadequate HR Planning (2 of 3)




Planning

HR Planning Strategic Planning

-reciprocal and interdependent relationship

-environmental scanning critical for both




Planning

-economic conditions

-market and competitive trends

-government and legislative issues

-social concerns

-technological changes

-demographic trends

External Environmental Factors Monitored



Elements of Effective HR Planning

3. Forecast Future Internal/External Candidates (Supply)

2. Forecast Future HR Needs (Demand)

1. Analyze HR Implications of Strategic Plans

4. Implement Plans to Balance Supply and Demand

5. Monitor and Evaluate Results



Forecasting Future HR Needs

(Demand)

Forecasting based on:

-demand for product/service-projected turnover

-quality and nature of employees

-decisions regarding product quality

-plans for technological change

-plans to reduce headcount

-financial resources


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(Demand)

Productivity ratios calculate the average number of units

produced per employee.

Staffing ratios can be used to estimate indirect labor.

For example, if the company usually uses one clericalperson for every 25 production employees, that ratio can

be used to estimate the need for clerical employees.




(Demand)

For example, a statistical relationship between gross sales

and number of employees in a retail chain may be useful

in forecasting the number of employees that will be

needed if the retailers sales increase 15% or decrease

10%.

Scatter plot: graph of business activity/employees

Regression analysis: past statistical relationship

between business activity and employees




(Demand)

1. Nominal Group Technique

-experts meet face-to-face-group discussion facilitates exchange of ideas

-possible subjectivity, group pressure( disad)

2. Delphi Technique-experts work independently

-wide range of views

-difficult to integrate diverse opinions ( disad)

Qualitative Approaches


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Forecasting Future HR Supply

manual or computerized records

used to identify internal candidates for transferor promotion

summary of each employees:

education

experience

interests

skills

Skills Inventories


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summary of each management employees:

background qualifications

interests

skills

managerial responsibilities

duties in current/previous positions

management training

Management Inventories


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visual representations of likely internalreplacement employees for each position

data on each candidate includes:

age

present performance rating

promotability status

Replacement Charts


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lists of likely internal replacement employees

for each position

data on each candidate includes:

relative strengths and weaknesses

current position

performance promotability

age

experience

Replacement Summaries


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Formal educationIndustry experience

Work experience

Product/serviceknowledge

Training courses

Language skillsRelocation

limitations

Career interestsPerformance ratings

Computerized Skills Inventory


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analyze demand for managers/professionals

audit existing executives, project future supply

individual career planning/career counseling

accelerated promotions

performance-related training and development

planned strategic recruitment

Succession Planning


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general economic conditions

national labour market conditions

local labour market conditions

occupational market conditions

Forecasting Supply of External Candidates


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Balancing Supply and Demand

Dealing with a Labour Surplus

hiring freeze

attrition buy-out and early retirement programs

reducing hours (job sharing, reduced

workweek, part-time work, work sharing)

internal transfers

layoffs (reverse seniority or juniority)

termination with outplacement assistance


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Balancing Supply and Demand

Dealing with a Labour Shortage

overtime hiring temporary employees

subcontracting work

external recruitment

transfers

promotions


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HRP Evaluation

Actual internal mobility flow vs. career plans

Internal mobility flow vs. turnover

Employment equity achievements vs. goals

Ratio of internal placement to external hiring

Actual staffing levels vs. staffing requirements

Specific Criteria Assessed


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2002 Pearson Education Canada Inc Toronto Ontario 5 2626

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HRM for MBA Chapter 2