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
2002 Pearson Education Canada Inc., Toronto, Ontario 5-2
The Nature of Human Resources
Planning
HR Planning

-review human resources requirements to
ensure:
-the necessary number of employees
-the necessary employee skills
to meet organizational goals
2002 Pearson Education Canada Inc., Toronto, Ontario 5-3
The Nature of Human Resources
Planning
Forecast
demand
Analyze
supply
Plan and implement
programs to balance
supply and demand
2002 Pearson Education Canada Inc., Toronto, Ontario 5-4
The Nature of Human Resources
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)
2002 Pearson Education Canada Inc., Toronto, Ontario 5-5
The Nature of Human Resources
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)
2002 Pearson Education Canada Inc., Toronto, Ontario 5-6
The Nature of Human Resources
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)
2002 Pearson Education Canada Inc., Toronto, Ontario 5-7
The Nature of Human Resources
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)
2002 Pearson Education Canada Inc., Toronto, Ontario 5-8
The Nature of Human Resources
Planning
HR Planning
Strategic Planning
-reciprocal and interdependent relationship
-environmental scanning critical for both
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The Nature of Human Resources
Planning
-economic conditions
-market and competitive trends
-government and legislative issues
-social concerns
-technological changes
-demographic trends
External Environmental Factors Monitored
2002 Pearson Education Canada Inc., Toronto, Ontario 5-10
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
2002 Pearson Education Canada Inc., Toronto, Ontario 5-11
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
2002 Pearson Education Canada Inc., Toronto, Ontario 5-12
Forecasting Future HR Needs
(Demand)
Trend analysis: review past employment levels
Ratio analysis: ratio of business activity/employees



Quantitative Approaches
Productivity ratios
Staffing ratios
2002 Pearson Education Canada Inc., Toronto, Ontario 5-13
Forecasting Future HR Needs
(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 clerical
person for every 25 production employees, that ratio can
be used to estimate the need for clerical employees.
2002 Pearson Education Canada Inc., Toronto, Ontario 5-14
Forecasting Future HR Needs
(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
2002 Pearson Education Canada Inc., Toronto, Ontario 5-15
Forecasting Future HR Needs
(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
2002 Pearson Education Canada Inc., Toronto, Ontario 5-16
Forecasting Future HR Supply
manual or computerized records
used to identify internal candidates for transfer
or promotion
summary of each employees:
education
experience
interests
skills
Skills Inventories
2002 Pearson Education Canada Inc., Toronto, Ontario 5-17
Forecasting Future HR Supply
summary of each management employees:
background
qualifications
interests
skills
managerial responsibilities
duties in current/previous positions
management training
Management Inventories
2002 Pearson Education Canada Inc., Toronto, Ontario 5-18
Forecasting Future HR Supply
visual representations of likely internal
replacement employees for each position
data on each candidate includes:
age
present performance rating
promotability status
Replacement Charts
2002 Pearson Education Canada Inc., Toronto, Ontario 5-19
Forecasting Future HR Supply
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
2002 Pearson Education Canada Inc., Toronto, Ontario 5-20
Forecasting Future HR Supply
Formal education
Industry experience
Work experience
Product/service
knowledge
Training courses
Language skills
Relocation
limitations
Career interests
Performance ratings

Computerized Skills Inventory
2002 Pearson Education Canada Inc., Toronto, Ontario 5-21
Forecasting Future HR Supply
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
2002 Pearson Education Canada Inc., Toronto, Ontario 5-22
Forecasting Future HR Supply
general economic conditions
national labour market conditions
local labour market conditions
occupational market conditions
Forecasting Supply of External Candidates
2002 Pearson Education Canada Inc., Toronto, Ontario 5-23
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
2002 Pearson Education Canada Inc., Toronto, Ontario 5-24
Balancing Supply and Demand
Dealing with a Labour Shortage
overtime
hiring temporary employees
subcontracting work
external recruitment
transfers
promotions
2002 Pearson Education Canada Inc., Toronto, Ontario 5-25
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
2002 Pearson Education Canada Inc., Toronto, Ontario 5-26
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