MHR 849 Lecture Notes - Lecture 4: Organizational Culture, Job Analysis, Job Sharing
5 Jun 2018
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Chapter 4: HR Forecasting
Why is strategic HR planning important to organizations?
• It attempts to 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 lead to inefficiencies and lower productivity
• Employees may become bored and unmotivated and engage in counterproductive
behaviours
• Too much work and insufficient number of employees lead to higher overtime and wages
expenses, while at the same time increases the stress and fatigue of the overworked
employees
• Both scenarios will result in an ineffective organization that might compromise its ability
to meet its goals and objectives
3 Forecasting categories:
1. Transactional-based forecasting: focuses on tracking internal change instituted by the
organizations managers
2. Event-based forecasting: concerned with changes in the external environment
3. Process-based forecasting: not focused on a specific internal organization event, but
on the flow or sequences of several work activities
Benefits of HR Forecasting:
• Reduces HR costs
• Increases organizational flexibility (having the right people for the job gives us more
flexibility) (ex. Hiring someone who can do various tasks and roles as opposed to do
only one thing then we have to hire a new person just to do another role)
• Ensures a close linkage to the macro business forecasting process
• Ensures that organizational requirements take precedence over issues of resource
constraint and scarcity (HR demand/supply) (employee referral programs)
Human Resources Supply and Demand
Human resources supply- the source of workers to meet the demand requirements, obtained
either internally (current members of the organizations workforce) or from external agencies
Human resources demand- the organizations projected requirement (in terms of number of
people we need) for human resources
Key Personnel Analyses Conducted by HR Forecasters (what do we forecast for?) (what
positions)
1. specialist/technical/professional personnel - people like accountants, engineers, IT, hr
people
2. Employment equity-designated group membership
3. Managerial and executive personnel
4. Recruits
What is a Designated Group?
• Identifiable groups deemed to need special attention because they typically receives the
most discrimination within organizations
• In canada these include: 1) Aboriginals 2) women 3) disabilities 3) visible minorities
Organizational Factors Affecting HR Forecasting
• Corporate mission, strategic goals (what business we’re in and how do we compete in it)
• Operational goals, production budgets (how much money do we need to spend)
• HR policies
• Organizational structure, restructuring (how wide/tall of an organization do you want to
have)
• Workers KSAO’s, competencies, expectations
• HRMS level of development (hr technology)
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
It attempts to balance between the work that needs to be done and the workforce that performs the tasks to do the work. Benefits of hr forecasting: reduces hr costs. Increases organizational flexibility (having the right people for the job gives us more flexibility) (ex. Human resources supply- the source of workers to meet the demand requirements, obtained either internally (current members of the organizations workforce) or from external agencies. Human resources demand- the organizations projected requirement (in terms of number of people we need) for human resources. Key personnel analyses conducted by hr forecasters (what do we forecast for?) (what positions: specialist/technical/professional personnel - people like accountants, engineers, it, hr people, employment equity-designated group membership, managerial and executive personnel, recruits. Identifiable groups deemed to need special attention because they typically receives the most discrimination within organizations. In canada these include: 1) aboriginals 2) women 3) disabilities 3) visible minorities. Environmental factors affecting hr forecasting (outside the organization)
