Chapter 4 - Human Resource Planning, Recruitment, and Selection

Future employment needs markov analysis method for

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: and larger organizations Small, entrepreneurial organizations tend to approach HR staffing needs on a more short- term basis HR Planning Approaches • • • • • • • • Need to forecast demand for employees Trend analysis – quantitative approach to forecasting labour demand on an organizational index (sales or units of production) Management forecasts – opinions and judgements of supervisors or managers and others that are knowledgeable about the organization’s future employment needs (develops scenarios that can be used for planning purposes) Also need to look at supply of employees (look internally and externally- larger labour market) Staffing tables – graphic representations of organizational jobs along with the numbers of employees currently occupying those jobs and future employment needs Markov analysis – method for tracking the pattern of employee movements through various jobs o Percentage of employees who remain in each job from one year to the next o Proportions of those who are promoted, demoted, or transferred, or leave Skills inventory – information about the education experiences, skills, etc. of staff (skill mix) When assessing organization’s supply, organization’s identify key skills or core competencies necessary for organizational success Results of HR Planning • • • Outcome of HR planning is to achieve a useable balance between the demand for and supply of employees Demand for and supply of labour is a function of the economic environment HR planning does not guarantee there might not come a time when organization has too many employees for its immediate or long- term needs o Result of severe economic conditions or major company collapses Ways to Deal with an Oversupply of Labour • Employees are key to success- need to reduce employee numbers would be done by attrition o Attrition – natural departure of employees through people quitting, retiring, or dying o Company can avoid downsizing because it knows that people will leave o If too many people leave, it can cost company more money than intended o Replacing employee is costly and time- consuming o Costs of turnover can be as high as two times the annual compensation o More serious business issues of 21st century is retaining key employees • If organization can predict excess supply of employees is short- term...
View Full Document

Ask a homework question - tutors are online