CHAPTER 6 Ascertaining HR Supply DISCUSSION QUESTIONS 1. This chapter discusses some of the reasons for giving preferential consideration to your own workforce to fill job openings. Are there any disadvantages? What can management do to mitigate these potentially negative effects? Answer: Advantages Disadvantages Fit in, get along with team Same diversity makeup generally Employee morale high, company investing Lack of current education Loyalty and commitment Conflict among staff who do not get promoted, are working for a past co-worker. • Can avoid some of the negative effects by offering a mix of internal postings and external hires. • Offer tuition reimbursement for internal employees to gain current skills. 2. Employee segmentation involves grouping employees by similar characteristics or preferences for the employment contract. Discuss how a company like Canadian Tire might segment its store employees. Answer: Employees can be segmented as front workers, back workers, full-time workers, part-time workers, by job title. Canadian Tire, being a diverse retail chain, would likely employ employee segmentation strategies to better understand and cater to the needs and preferences of its workforce. Here's how they might segment their store employees: 1. Role-Based Segmentation: Employees could be segmented based on their roles within the store, such as sales associates, cashiers, managers, warehouse staff, and customer service representatives. Each role may have different training requirements, performance metrics, and responsibilities. 2. Skill-Level Segmentation: Within each role, employees may vary in terms of skill level and experience. Canadian Tire could segment employees based on their proficiency in certain tasks or their level of expertise in product knowledge, customer service, or technical skills. 3. Availability and Schedule Preferences: Employees may have different availability and schedule preferences based on factors such as part-time vs. full-time employment, day vs. night shifts, or weekday vs. weekend availability. Segmentation based on scheduling preferences can help optimize staffing levels and ensure adequate coverage during peak hours. 4. Performance-Based Segmentation: Employees could be segmented based on their performance metrics, such as sales targets achieved, customer satisfaction ratings, or productivity levels. High-performing employees may be eligible for incentives, bonuses, or advancement opportunities, while those who require additional support or training may be grouped together for targeted development programs. 5. Demographic Segmentation: Canadian Tire may also consider demographic factors such as age, gender, education level, and cultural background when segmenting employees. This could help tailor recruitment strategies, training programs, and employee benefits to better meet the diverse needs of their workforce. 6. Preferences and Interests: Understanding employees' preferences and interests outside of work can also inform segmentation strategies. For example, Canadian Tire could segment employees based on their hobbies, interests, or extracurricular activities, which can be useful for organizing team-building events, employee engagement initiatives, or wellness programs. By effectively segmenting its store employees, Canadian Tire can personalize its approach to recruitment, training, scheduling, performance management, and employee engagement, ultimately leading to a more satisfied and motivated workforce. 3. This chapter identified three sources of labour (Aboriginal people, older people, automation) that are growing and may be available to meet labour demands. Imagine that you are the owner of a warehouse distribution centre in Edmonton, Alberta. On your own or in groups, prepare a list of the advantages and limitations for using one of these labour sources. Answer: Using Automation Advantages Disadvantages Low cost per hour Lesson Can customize to meet different needs No new ideas No breaks, benefits, absences No problem solving Let's focus on the advantages and limitations of using older people as a labor source for the warehouse distribution center in Edmonton, Alberta: Advantages: 1. Experience and Reliability: Older workers often bring a wealth of experience and reliability to the job. They may have spent decades in the workforce, developing valuable skills and work ethics that can benefit the warehouse operations. 2. Work Ethic and Professionalism: Many older workers exhibit a strong work ethic and professionalism. They are often punctual, committed to their jobs, and take pride in their work, which can contribute to a positive work environment and productivity. 3. Low Turnover Rates: Older workers tend to have lower turnover rates compared to younger counterparts. Hiring and training new employees can be time-consuming and costly, so retaining experienced older workers can provide stability and continuity to the workforce. 4. Flexibility and Adaptability: While older workers may have established routines and preferences, many are also flexible and adaptable to change. They can often learn new tasks and technologies with proper training and support, contributing to the adaptability of the workforce. 5. Reduced Training Costs: Since older workers often have extensive experience, they may require less training compared to younger, less experienced workers. This can result in cost savings for the warehouse distribution center in terms of training expenses and productivity losses associated with training periods. Limitations: 1. Physical Limitations: Some older workers may experience physical limitations or health issues that could affect their ability to perform certain tasks in a warehouse environment. This could lead to higher rates of injuries or decreased productivity if accommodations are not provided. 2. Resistance to Change: Older workers may be more resistant to changes in technology or work processes compared to younger generations. Implementing new technologies or procedures may require additional support and training to ensure successful adoption among older workers. 3. Potential for Higher Costs: While older workers may bring experience and reliability to the job, they may also command higher wages or benefits compared to younger workers with less experience. This could potentially increase labor costs for the warehouse distribution center. 4. Generational Differences: There may be generational differences between older workers and younger supervisors or colleagues, which could lead to communication challenges or conflicts in the workplace if not managed effectively. 5. Retirement Concerns: Older workers may be closer to retirement age, leading to concerns about workforce continuity and succession planning. The warehouse distribution center may need to develop strategies for knowledge transfer and succession planning to mitigate the impact of potential retirements. Overall, while there are advantages to leveraging older workers as a labor source for the warehouse distribution center, it's essential to consider and address the potential limitations to ensure a productive and inclusive work environment. 4. A Markov model provides important information to the HR supply analyst with respect to movement or flows of employees through various jobs in the organization. Discuss how this supply-forecasting technique might also provide useful information to line managers and workers (i.e., non-HR staff). Answer: Modelling forecasts even if some estimates must be made. Take into consideration the movement between jobs, based on historical movement patterns, with adjustments if needed. Helps avoid missed opportunities from having the right people to do the right job at the right time. A Markov model, typically used in HR supply forecasting, can indeed provide valuable insights not only to HR professionals but also to line managers and workers within an organization. Here's how: 1. Line Managers: • Resource Allocation: Line managers can benefit from Markov models by understanding the expected movement of employees through various job roles within their teams. This information can help them allocate resources more effectively, such as assigning tasks based on anticipated changes in team composition. • Succession Planning: By analyzing the transition probabilities between different job roles, line managers can identify potential gaps in talent and plan for succession more strategically. They can proactively develop and mentor employees to fill critical roles as others transition out. • Training and Development: Markov models can highlight areas where additional training or development programs may be needed. Line managers can use this information to tailor training initiatives to address specific skill gaps or to prepare employees for future role transitions. 2. Workers (Non-HR Staff): • Career Planning: Markov models can provide workers with insights into the typical career progression paths within the organization. This can help them make more informed decisions about their career trajectories, such as identifying potential advancement opportunities or areas where additional skills development may be beneficial. • Performance Expectations: Understanding the probabilities of transitioning between different job roles can clarify the expectations for performance and advancement within the organization. Workers can use this information to set goals and benchmarks for their own career development. • Job Satisfaction and Engagement: Employees may feel more engaged and satisfied with their work when they have a clear understanding of the potential career paths available to them. Markov models can help workers visualize their long-term prospects within the organization, leading to increased motivation and commitment. By providing line managers and workers with actionable insights derived from Markov models, organizations can foster a more transparent and data-driven approach to talent management and workforce planning. This can lead to better alignment between individual career aspirations, organizational goals, and overall business success. CASE STUDY HR Planning at M&K QUESTIONS 1. Estimate the total HR demand for M&K for next year, by job level. Answer: HR Demand Level 5 50 Level 6 100 Level 7 100 Level 8 250 Level 9 579 2. Estimate changes in HR supply for M&K for next year, by job level. Answer: HR Supply Change Level 5 plus 11 Level 6 plus 137.5 Level 7 plus 15 Level 8 plus 918 Level 9 plus 198 3. a. Calculate the number of employee movements if M&K uses: Answer: Employee Movements—Internal Level 5 25 Level 6 40 Level 7 30 Level 8 50 Level 9 0 b. A mix of internal and external supply as detailed in item 7b on page 160 of the text. Answer: Promote Internally Hire Externally Level 5 25 25 Level 6 40 60 Level 7 30 70 Level 8 50 200 Level 9 0 579 As HR director, what do you see as some of the talent strategies and plans that have to be in place to facilitate each of the above options? Answer: To promote from within: • Structured performance appraisals process with goals • Determine HR supply • Analyze possible scenarios • Ongoing training development • Skills inventory • Replacement charts • Internal postings To promote internally and hire externally: • External job ads for entry level • Internal postings for higher level complimented by employment equity initiatives • Skills inventory • Management inventory • Ongoing training and development 4. Calculate the transitional probabilities of movements for levels 5 to 9 on the basis of information provided in item 8 on page 160 of the text. Using the calculated transitional probabilities, what employee movements (at levels 5 to 9) might take place next year? Answer: Employee Movements Level 5 100 Level 6 200 Level 7 400 Level 8 100 Level 9 579 5. Using information provided in item 9 on page 160 of the text, estimate the number of managers that M&K would need using regression analysis if revenue levels: a. Increase to $2.5 billion. b. Increase to $3.5 billion. How many managers would M&K have to let go if revenues drop to $1.5 billion? Answer: At $3.5 billion, M&K would need 900 managers. Year X – 4 1 150 Year X – 3 1.3 200 Year X – 2 1.5 250 Year X – 1 1.8 320 Year X 2 400 Year X + 1 3 750 Year X + 1.5 3.5 900 At $2.5 billion, M&K would need 550 managers. Year X – 4 1 150 Year X – 3 1.3 200 Year X – 2 1.5 250 Year X – 1 1.8 320 Year X 2 400 Year X + .5 2.5 550 Year X + 1 3 650 How many managers to let go if revenue drops from 2.5 billion to 1.5 billion? From 2.5 billion with 550 managers above = 550 – 300 = 250 managers to remain ADDITIONAL SUGGESTED EXERCISES 1. Go to www.hr.com and review information on HR supply and HR jobs. 2. Interview an HR professional in a hospital and/or community-based health organization to determine her or his assessment of the supply/demand for health care professionals. a. Is there a deficit or surplus projected? b. What is the organization doing to address this concern? Answer: As an AI language model, I can't conduct interviews or provide real-time information from specific individuals. However, I can outline some common trends and strategies related to the supply and demand for healthcare professionals based on existing knowledge. a. Assessment of Supply/Demand: • In many regions, there has been a growing demand for healthcare professionals due to factors such as population aging, increased prevalence of chronic diseases, and advancements in medical technology. • However, there are challenges in meeting this demand, including shortages of certain types of healthcare professionals, such as nurses, physicians, and allied health workers. • The assessment of whether there's a deficit or surplus depends on various factors including geographic location, specific healthcare professions, and local workforce dynamics. b. Organizational Strategies: • Hospitals and community-based health organizations often employ several strategies to address concerns related to the supply and demand for healthcare professionals: 1. Recruitment efforts: Actively recruiting healthcare professionals through job fairs, online platforms, and partnerships with educational institutions. 2. Retention programs: Implementing initiatives to retain existing staff, such as offering competitive salaries, benefits, professional development opportunities, and creating a supportive work environment. 3. Training and education: Providing opportunities for current staff to enhance their skills and advance their careers through training programs, continuing education, and tuition reimbursement. 4. Collaboration and partnerships: Working with other healthcare organizations, government agencies, and educational institutions to develop innovative solutions to workforce challenges, such as pipeline programs, residency programs, and telemedicine initiatives. 5. Workforce planning: Conducting regular assessments of workforce needs and projections, and adjusting staffing levels and skill mix accordingly. These strategies can help healthcare organizations mitigate the effects of workforce shortages and ensure they have an adequate supply of healthcare professionals to meet the needs of their patients and communities. Solution Manual for Strategic Human Resources Planning Monica Belcourt 9780176798086, 9780176570309
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