Copyright © 2013 by Nelson Education Ltd. Chapter 6 Determining HR Demand Copyright © 2013 by Nelson Education Ltd.
Copyright © 2013 by Nelson Education Ltd. Learning Outcomes After reading this chapter, you should be able to: Understand the importance of demand forecasting in the HR planning process Recognize the linkages between the HR plan, labour demand forecasting techniques, and the subsequent supply stage Copyright © 2013 by Nelson Education Ltd. 2
Copyright © 2013 by Nelson Education Ltd. HR Demand HR demand: The organization’s projected requirement for human resources Thinkstock Copyright © 2013 by Nelson Education Ltd. 3
Two Approaches to HR Demand Quantitative Trend/Ratio analysis Regression analysis Qualitative Envelope/scenario planning Impact analysis Delphi technique Nominal group technique Copyright © 2013 by Nelson Education Ltd.
Copyright © 2013 by Nelson Education Ltd. Trend Analysis Trend analysis: Reveals the historical relationship between an operational index and the number of employees required by the organization (demand for labour) Copyright © 2013 by Nelson Education Ltd. 5
Copyright © 2013 by Nelson Education Ltd. Ratio Analysis Ratio analysis: A quantitative method of projecting HR demand by analyzing the relationship between an operational index and the number of employees required ©atm2003/Shutterstock Copyright © 2013 by Nelson Education Ltd.
Copyright © 2013 by Nelson Education Ltd. Trend/Ratio Analysis Copyright © 2013 by Nelson Education Ltd.
Copyright © 2013 by Nelson Education Ltd. Regression Analysis Regression analysis: Very effective, quantitative forecasting technique for short-, medium-, and long-range time horizons Can be easily updated and changed Uses SPSS or SAS Copyright © 2013 by Nelson Education Ltd. 8
Copyright © 2013 by Nelson Education Ltd. HR Budgets HR budgets: Quantitative, operational, or short-run demand estimates that contain the number and types of personnel required by the organization as a whole and for each sub-unit, division, or department Copyright © 2013 by Nelson Education Ltd. 9
HR Budgets: Staffing Table Staffing table: Total HR demand requirements for operational or short-run time periods Thinkstock Copyright © 2013 by Nelson Education Ltd. 10
HR Budgets: Staffing Table Copyright © 2013 by Nelson Education Ltd.
Two Approaches to HR Demand Quantitative Trend/Ratio analysis Regression analysis Qualitative Envelope/scenario planning Impact analysis Delphi technique Nominal group technique Copyright © 2013 by Nelson Education Ltd.
Envelope/Scenario Forecasts Envelope/scenario forecasts: Projections, or multiple-predictor estimates, of future demand for personnel predicated on a variety of differing assumptions about how future organizational events will unfold Copyright © 2013 by Nelson Education Ltd. 13
Envelope/Scenario Forecasts Copyright © 2013 by Nelson Education Ltd.
Copyright © 2013 by Nelson Education Ltd. Impact Analysis Impact analysis: A forecasting method in which past trends are analyzed by a panel of experts to predict future HR demand Copyright © 2013 by Nelson Education Ltd.
Copyright © 2013 by Nelson Education Ltd. Delphi Technique Delphi technique: A process in which the forecasts and judgments of a selected group of experts are solicited and summarized in an attempt to determine the future HR demand Usually do not meet in person; predictions anonymously circulated and revised Copyright © 2013 by Nelson Education Ltd. 16
Nominal Group Technique Nominal Group Technique: Long-run forecasting technique utilizing expert assessments Usually do meet and jointly determine forecast Copyright © 2013 by Nelson Education Ltd. 17