The Forecasting Process - Chapter 4 - Week 8

Question 1

Forecasting is…

Answer 1

Process of asserting the NET REQUIREMENTS for people (human capital) in an organization by assessing the demand for and the supply of Human Resources now and in the future

Question 2

HR forecasting is important because ….

Answer 2

• attempts to create a balance between the work that needs to be done and the workforce that performs the tasks to do the work
  -insufficient work and too many employees leads to inefficiencies and lower productivity (employees become bored, unmotivated and engage in counterproductive behaviours)
  -too much work and insufficient number leads to high OT, wage expenses, while increasing stress and fatigue of overworked employees
  —>both scenarios result in ineffective org. & might compromise ability to meet goals and objectives

Question 3

Strategic importance of HR forecasting (4)

Answer 3

1. Reduces HR costs
2. Increases organizational flexibility
3. ensures a close linkage to the macro business forecasting process
4. Ensures that organizational requirements take precedence over issues of resource constraints and scarcity (HR supply and HR demand)

Question 4

What is HR demand?

Answer 4

An organization’s projected need for people AKA human resource

Question 5

What is HR supply?

Answer 5

The source of workers to meet demand requirements

Question 6

Who do HR forecasters look at and why? (4)

Answer 6

1. Specialist/ technical/ professional personnel
   - hold high demand qualifications or lengthy prep training to be competent in skills
2. Employment equity— designated group membership
   - legislation and guidelines require orgs. employment practices are fair
3. Managerial and executive personnel
   - leadership and management are important — need dynamic and transformational leaders
4. Recruits
   - externally for new ideas or bring employees at lower level & necessary to promote your culture by developing employees within

Question 7

HR forecasting process (4 steps)

Answer 7

1. Determine staffing a needs by skills, skill levels, or jobs
2. Analyze and determine # of employees required
3. Create a budget to determine cost involved
4. Put HR programs and policies in place to meet demand and supply and track results

Question 8

Define job analysis:

Answer 8

Process used to collect info about the duties, responsibilities and necessary skills, outcomes and work environment of a job

Question 9

Used to meet the immediate needs of an organization

Answer 9

Current forecast

Question 10

Occurs when demand for HR exceeds the current personnel resources available in the organization’s workforce

demand > supply

Answer 10

HR shortage

Question 11

Occurs when the internal workforce supply exceeds the organization’s requirement or demand for personnel

Supply > demand

Answer 11

HR surplus

Question 12

Hiring freeze:

Answer 12

A prohibition on all external recruiting activities

Question 13

The process of reducing an HR surplus by allowing the size of the workforce to decline naturally because of the normal pattern of losses associated with retirements, deaths, voluntary turnover, and so on

Answer 13

Attrition

Question 14

Worksharing:

Answer 14

A federal gov’t program that aims to help organizations mitigate temp layoffs through a redistribution of work, earnings, and leisure time

Question 15

Job sharing

Answer 15

Occurring when 2 or more employees perform the duties of one full-time position, each sharing the work activities on a p/t basis

Question 16

This theory suggests that it takes time for investments in human capital ie. people to produce financial gains

Answer 16

Human Capital Theory… the reason is the people come to an organization in a generic form and develop into form-specific human capital