3.10 - End of Topic Review
Budget vs. desired rates Budget vs. desired rates is not a criterion of evaluation that could be used as they are both forecasted projections and are not related. The following is a list of possible criteria and/or standards for evaluating HRP: 1) Actual staffing levels vs. established staffing requirements 2) Productivity levels vs. established goals 3) Actual HRM flow rates vs. desired rates 4) Programs implemented vs. action plans 5) Program results vs. expected outcomes 6) Labor and program costs vs. budget 7) Ratios of program results to program costs
Criteria for evaluating HRP need to balance what is forecasted vs. what is actual. Which of the following is NOT a criterion that could be used to evaluate HRP? - Budget vs. desired rates - Actual staffing levels vs. established staffing requirements - Programs implemented vs. action plans - Productivity levels vs. established goals
Unqualified human resources is as serious a production bottleneck as scarcity of capital In recent years, organizational leaders are acknowledging that the quality of the workforce is often responsible for organizational performance. Many corporate executives have concluded that insufficient or unqualified human resources are as serious a production bottleneck as scarcity of capital, and that HR investments are as important a factor in company planning as the acquisition of plants, equipment, or materials.
Organizational leaders are acknowledging many things about HR. Which of the following are corporate executives concluding about human resources? - Unqualified human resources is as serious a production bottleneck as scarcity of capital - HRP is great in helping the workforce, but it does not help with overall expenses - The quantity of the workforce is responsible for organizational performance - HR investments are important to company planning, but not as important as equipment or materials
Provide more opportunities for women and majority groups in future growth The purpose is not to provide more opportunities for women and majority groups, but for women and minority groups. The purposes of human resource planning discussed in this section are to: 1) Reduce costs by helping management anticipate shortages or surpluses of human resources and correct imbalances before they become unmanageable and expensive. 2) Provide a better basis for planning employee development that makes optimum use of workers' strengths. 3) Improve the overall business planning process. 4) Provide more opportunities for women and minority groups in the future growth and strategic plans of the organization. 5) Promote greater awareness of the importance of sound HRM throughout all levels of the organization. 6) Provide a tool for evaluating the effect of alternative HR actions and policies.
There are six purposes of human resource planning talked about in this topic. Which of the following is not one of those purposes? - Provide a tool for evaluating different HR policies - Provide a better basis for planning that makes optimum use of worker's strengths - Improve the overall business planning process - Provide more opportunities for women and majority groups in future growth
False Human resource planning, also known as HR planning or HRP, is one of the first steps in creating an effective human resource management program. HRP involves forecasting the human resource needs of the organization and planning the steps necessary to meet those needs. Because the purpose of HR planning is to understand the firm's human capital needs (the demand), and then determine who is available to fill those needs (the supply), HR planning is also referred to as HR forecasting and/or workforce planning. To successfully determine an organization's needs, firms must examine both internal and external factors.
True or False: Because human resource management is about managing the human capital needs within the organization, when implementing HRP, the organization only needs to focus on the organization's internal factors.
True Human resource planning ( HRP) is the process of developing and implementing plans and programs to ensure that the right number and type of individuals are available—at the right time and place—to meet organizational needs. Because any effective human resource management (HRM) program helps the organization achieve its strategic goals, HRP is one of the fastest growing and most important areas of human resource management. In the past, human resource planning may not have moved many people to action, but changing demographic and business demands, along with the new economy, have pushed HRP to the forefront of most HR programs.
True or False: Being able to forecast demand and supply is crucial to remaining competitive in the marketplace.
False Human resource information systems (HRIS) facilitate HR program control and evaluation by allowing rapid and frequent collection of data to back up the HR forecast. This data collection is important not only as a means of control, but also as a method for evaluating plans and programs and making adjustments.
True or False: Data collection is important only as a means of control for HR plans and programs.
False An organization's demand for human resources can be determined by a variety of simple and complex forecasting methods. Forecasting results in approximations, not absolutes or certainties. The quality of the forecast depends on the accuracy of information and the predictability of events. Because forecasting is not absolute, the shorter the time horizon is, the more predictable the events, and the more accurate the information.
True or False: Forecasting creates certainties about the future of the company.
True Since an important part of HR planning is forecasting supply and demand, HR planning can be assessed by how well its forecasts compare with reality. Accuracy is very important as it is highly unlikely that HR planning can be effective if it fails to do well in accurately forecasting supply and demand. Another important criterion against which HR planning can be assessed is the selection and appropriateness of the tools it uses to engage employees in its activities, and the success in linking them to corporate goals.
True or False: HR planning is often assessed by how well its forecasts compared with reality. Another criterion is to see if the tools it uses and the activities it takes part in are linked to corporate goals.
False In many organizations, HR planning may include redesigning jobs, restructuring work, engaging in outsourcing activities, and adjusting staffing needs to meet the strategic direction of the firm.
True or False: Human resource planning is all about the programs and policies that an organization is going to implement and so it is about training, not about restructuring the company.
True Human resource planning, also known as HR planning or HRP, is one of the first steps in creating an effective human resource management program. HRP involves forecasting the human resource needs of the organization and planning the steps necessary to meet those needs. Because the purpose of HR planning is to understand the firm's human capital needs (the demand), and then determine who is available to fill those needs (the supply), HR planning is also referred to as HR forecasting and/or workforce planning. To successfully determine an organization's needs, firms must examine both internal and external factors.
True or False: Human resource planning is the process of making and executing plans to ensure that the right number of employees are available at the right time and place for the organization's needs.
False HR analysis begins with taking inventory of both the current workforce and jobs within the organization. Analysis of both elements is necessary if the organization is to determine its capability to meet current and future needs. Knowing the skills abilities, interests, and preferences of the current workforce is only half the inventory. The other half consists of knowing the characteristics of current jobs and the skills to perform them.
True or False: Knowing the skills, abilities, interests, and preferences of the workforce is all that is needed to prepare an HR analysis for completing phase one of HR planning.
True Without effective HRP, an organization may find itself with a plant or office, but without the people to run it. Organizations can no longer assume that the right number of appropriately qualified people will be ready when and where the organization wants them. So, on a broad level, HRP activity can be assessed on the basis of whether or not the organization has the people it needs.
True or False: Without effective HRP, an organization may end up with a plant or office, but without the right people to run it.
True In order to attract additional employees, the HR planner can assist in developing a workable organizational structure. Workable structures serve the objectives of planning and programming, which include attracting, retaining, and motivating employees.
True or False: Workable structures serve the objective in planning and programming.
Work that does not change - job security Values toward work are also changing. People still value work, but the type of work that interests them changes constantly. For the most part, workers today want jobs that provide a challenge, and in which they have the freedom and support to make decisions that they feel will help the organization reach its strategic goals and objectives.
Values about work are changing, which means that HR planning activities need to also change. Which of the following is something that the majority of today's workers are NOT valuing more? - Work that does not change - job security - Work that provides a challenge - Work that gives them freedom - Work that supports them in making decisions that help the organization
External labor demand HRP is based on an organization's human resource supply and demand or in other words, the organization's human resource needs. The external labor demand means, outside of the company, how much is a specific position demanded.
What is the type and number of competitors' openings considered when looking at supply and demand within HR? - External labor demand - Internal labor supply - Internal labor demand - External labor supply
Establishing HR objectives and policies Human resource planning typically includes four phases: 1) Gathering, analyzing, and forecasting data in order to develop an HR supply and demand forecast 2) Establishing HR objectives and policies and gaining approval and support for them from top management 3) Designing and implementing plans and action programs in such areas as recruitment, training, and promotion that will enable the organization to achieve its HR objectives 4) Controlling and evaluating HRM plans and programs to facilitate progress toward HR objectives
What is typically the second phase of human resource planning (as shown in this topic)? - Designing and implementing plans and action programs - Establishing HR objectives and policies - Gathering, analyzing and forecasting data - Controlling and evaluating HRM plans and programs
Replacement planning Replacement planning is a judgmental technique used by organization to make supply forecasts as well as succession planning. Replacement planning uses charts that show the names of the current occupants of positions in the organization and the names of likely replacements. Replacement charts make potential vacancies readily apparent, based on the present performance levels of employees currently in jobs. Openings are most likely to occur in those jobs in which the incumbents are not outstanding performers. Those individuals likely to fill the potential vacancies are listed directly under the incumbent. Such a listing can provide the organization with a good estimate of what jobs are likely to become vacant and who will be ready to fill them.
Which of the following is a strategy to forecast supply, but not demand? - Time series analysis - Replacement planning - Managerial estimates - Simple linear regression
Primary focus on productivity Over the last few decades, in an effort to recruit more capable employees, many organizations have been shifting from the "traditional" model to an organizational structure that includes greater self-control, more employee participation in workplace decisions, bottom-up as well as top-down communications, recognition of employee rights, an emphasis on intrinsic rewards, more broadly designed jobs that allow more worker discretion, and additional concerns to the quality of work life for employees.
Which of the following is not a characteristic of the new organizational model that is shifting from the traditional model as reviewed in this topic? - Recognition of employee rights - Employee participation in decisions - Broadly designed jobs - Primary focus on productivity
Policies that focus on highly repetitive behavior Employee characteristics and HR policies vary depending on the organization's strategy. For example, employee characteristics and HR policies will be different if a firm adopts an entrepreneurial strategy instead of a rationalization/maximize-the-profit strategy. In the case of entrepreneurial strategy, the organization needs to adopt HR policies that lead employees to take risks and be innovative. As such, policies may be more relaxed and not integrated completely, emphasizing results instead, as well as focusing on being future-oriented, encouraging high employee participation, and recognizing the accomplishment of groups rather than single individuals. In contrast, the rationalization/maximize-the-profit strategy, used by organizations at a mature stage, needs employees to focus on high-output, low-risk, and highly repetitive behavior in the short term.
Which of the following is not an HR policy that an organization would implement if they were looking at adopting an entrepreneurial strategy? - Policies that focus on incomplete integration - Policies that focus on risk taking - Policies that focus on highly repetitive behavior - Policies that focus on high employee participation
It helps the company get a more accurate idea of how many employees will be needed in the future. Although there may be a relationship between sales and employment, the relationship may be influenced by other factors such as an organizational learning phenomenon. For example, even though sales may double, the level of employment necessary to support this increase may be less than double. And if sales double again, the incremental amount of employment necessary to meet this new doubling may be even less than that necessary to meet the first doubling of sales. An organizational learning curve can usually be determined by logarithmic calculations. Once the learning curve has been determined, a more accurate projection of future employment levels can be established.
Why is it important to know what an organization's learning curve is when forecasting demand? - It tells the company how much employee turnover will occur - It helps the company see how far it has come in the last 5 years - It tells the organization exactly how many people will be needed in the next year - It helps the company get a more accurate idea of how many employees will be needed in the future.
