MGMT 340: Unit 4

Judgemental forecasts

managerial estimates: benchmarking, scenario planning

Complexity

many elements in the environment affect the firm individually or simultaneously

Forecast HR of supply of external job candidates

monitor economic conditions, reports from Business week, fortune, and etc, US Gov't Reports

statical projections

scatterplot, markov analysis, regression analysis

Importance of HR Planning

- Identify HR Skill gaps for the organizations (difference between current HR skills and future HR requirements) - proactive (more prepared for the future) - Identify constraints and opportunities - Stimulate critical thinking and examine assumptions

Steps in HR Planning in a Volatile Environment

- Identify business needs (what business are we in, specific strategy) - Forecast HR Demand/ HR supply (what we need, where the employees are coming from) - Match HR supply with HR supply (align imbalances) - Evaluate, revisit, and focus HR plan too ensure that business needs are met

Steps in the Management Succession Process

- Identify critical management positions - Determine organization's impending shortage - Identify skills needed for future business needs - Identify high potential individual (high positions) - Assess strengths, skill gaps of Hi positions - Develop high positions for key positions - Continuously monitor process

Balance HR Shortage

- Overtime - Outsource - Temporary workers - Retained transfer in - New External Hires - Technological innovations

Balance HR Surplus

- natural attrition - Early retirement - Transfer out - Worksharing or reduced work hrs/days (furlough) - Pay Reduction - Downsizing (Last option)

Importance of Succession Planning

- unforeseen circumstances - to preserve institutional memory - increased span of control has made it more difficult to identify replacements - Hyper-competition provides little slack in leadership transition process

HR Planning

A process whereby firms systematically identify human resources to align with their business needs. - Number of employees - Types of employees - Timing - Location

Stable Environment

HR Planning focuses on matching of demand of HR with supply of HR - forecasting/ planning based on historical employees turnover and replacement needs

Uncertainty

accurate information is not readily available to make appropriate business decisions

Magnitude of changes

drastic changes

Volatility

frequent environmental changes

Succession Planning

the deliberate, systematic process by which an organization ensures leadership in continuity in the top management positions

Hyper-competitive environment

uncertainty, volatility, magnitude of changes, complexity

HR supply

use HRIS system on internal workforce and economic forecasts on external labor market

HR demand

what we need, use judgmental forecasts or statical projections