HUMAN RESOURCES MANAGEMENT
CHECK POINT 25: EMPLOYEE PLANNING AND FORECASTING

Please Select Any Topic In Check Point 25 Below And Click.

1. The purpose of employee planning and forecasting
2. EMPLOYEE DEMAND FORECASTING
3. SHORT-TERM EMPLOYEE DEMAND FORECASTING
4. SMALL BUSINESS EXAMPLE
EMPLOYEE ALLOCATION STATUS REPORT
5. SMALL BUSINESS EXAMPLE
EMPLOYEE REQUIREMENTS REPORT
6. EMPLOYEE SUPPLY FORECASTING
7. MANAGEMENT REPLACEMENT CHART
8. SMALL BUSINESS EXAMPLE
MANAGEMENT REPLACEMENT CHART
9. EMPLOYEE RECORD
10. SMALL BUSINESS EXAMPLE
EMPLOYEE RECORD
11. FACTORS WHICH INFLUENCE THE AVAILABILITY OF EMPLOYEES
12. ADVANTAGES OF THE EMPLOYEE PLANNING PROCESS
13. FOR SERIOUS BUSINESS OWNERS ONLY
14. THE LATEST INFORMATION ONLINE

1. THE PURPOSE OF EMPLOYEE PLANNING AND FORECASTING

THE PURPOSE OF EMPLOYEE PLANNING AND FORECASTING

Business owners and managers must be familiar with employee planning and forecasting procedures which represent an integral part of the human resources management process.

Job descriptions and job specifications are widely used by management throughout the Employee Planning And Forecasting Process.

The main purpose of the employee planning and forecasting process is to secure the availability of specific types of people with the skills, experience, and background necessary to meet the company's forthcoming objectives.

The actual employee planning and forecasting process consists of two stages illustrated below.

THE EMPLOYEE PLANNING AND FORECASTING PROCESS

Stage 1: Employee Demand Forecasting

Stage 2: Employee Supply Forecasting

2. EMPLOYEE DEMAND FORECASTING

ELEMENTS OF EMPLOYEE PLANNING AND FORECASTING

Employee Planning deals with short- and long-term forecasting issues and is designed to provide sufficient information about employee requirements in the future as illustrated below.

EMPLOYEE DEMAND FORECASTING

 

Short-Term
Employee Demand Forecasting

 

Long-Term
Employee Demand Forecasting

This is designed to assess the level of employee requirements to enable the company to meet its objectives during the forthcoming fiscal year. This type of forecasting has an immediate effect on the company's current situation.   This provides an optional indication of the company's future requirements based on one- to five-year periods.

3. SHORT-TERM EMPLOYEE DEMAND FORECASTING

SHORT-TERM EMPLOYEE DEMAND FORECASTING

It is appropriate to begin the Short-Term Employee Demand Forecasting with a detailed analysis of current employee allocation.

This involves completing an Employee Allocation Status Report and summarizing relevant details about employees in various departments, sections, and shops. A typical Employee Allocation Status Report is presented below. This report also indicates the possible need for replacing a particular employee, based on the employee's past performance evaluation. Various methods of employee performance evaluation are discussed in detail in Tutorial 2.

The next stage in short-term employee demand forecasting entails examination of the company's immediate operational objectives and assessment of relevant human resources requirements. The main factors which should be considered during this examination are outlined next.

SHORT-TERM EMPLOYEE DEMAND FORECASTING FACTORS

No.

Details

1.

Current corporate budget.

2.

Current operational requirements.

3.

Current sales demands.

4.

Current economic situation.

5.

Current capabilities of employees.

 

SHORT-TERM EMPLOYEE DEMAND FORECASTING IMPLEMENTATION

Upon completing the examination of all short-term employee demand forecasting factors, management should prepare a detailed Employee Requirements Report for the forthcoming fiscal period. This report contains detailed information summarizing specific human resources requirements. A typical example of an Employee Requirements Report for a small business is also presented below.

4. SMALL BUSINESS EXAMPLE
EMPLOYEE ALLOCATION STATUS REPORT

EMPLOYEE ALLOCATION STATUS REPORT

Work Center: Department, Section, Shop

Name Of Employee

Current 
Position

Work
Period (Years)

Annual
Income
($)

Need To Be Replaced? Yes/Maybe/No

Administration Department

A. Boss

President

10

100,000

No

Administration Department

B. White

Secretary

4

35,000

Maybe

Administration Department

C. Green

Receptionist

0.5

30,000

Yes

Financial Department

D. Brown

Vice President Finance

5

70,000

No

Financial Department

E. Gray

Bookkeeper

4

40,000

No

Financial Department

F. Rose

Filing Clerk

1

30,000

Yes

Operations Department

G. Black

Vice President Operations

7

70,000

No

Operations Department

F. Blue

Foreman

5

50,000

No

Sales
Department

K. Violet

Vice President Sales

3

70,000

No

Sales
Department

L. Pink

Sales Person

2

50,000

No

Sales
Department

O. Orange

Sales Person

1

50,000

Yes

Name: A. Boss

Position: President

Date: January 1,  2100

5. SMALL BUSINESS EXAMPLE
EMPLOYEE REQUIREMENTS REPORT

EMPLOYEE REQUIREMENTS REPORT

Work Center: Department, Section, Shop

Position

Annual
Compensation
( $ )

Fringe
Benefits

When
Required?

Administration Department

Receptionist

30,000

Medical Insurance

Immediately

Financial
Department

Invoice Clerk

30,000

Med. Insurance

Immediately

Operations Department:

 

 

 

 

Press Shop

Operator

40,000

Med. Insurance

Immediately

Press Shop

Operator

40,000

Med. Insurance

Immediately

Machine Shop

Operator

40,000

Med. Insurance

Immediately

Machine Shop

Operator

40,000

Med. Insurance

Immediately

Assembly Shop

Operator

40,000

Med. Insurance

Immediately

Sales
Department

Sales Person

50,000

Med. Insurance

Immediately

Sales
Department

Sales Person

50,000

Med. Insurance

Immediately

Name: A. Boss

Position: President

Date: January 1, 2100

6. EMPLOYEE SUPPLY FORECASTING

EMPLOYEE SUPPLY FORECASTING

Once all employee requirements for the forthcoming fiscal period are summarized, business owners and managers should proceed with identifying appropriate sources of employee supply. This task represents an integral part of the process known as Employee Supply Forecasting.

The process of employee supply forecasting requires that management evaluate and identify the hidden talents of people already employed by the company. This will provide employees with an opportunity for continuous challenge, development and growth within the organization and motivate them for a better performance on the job.

In order to keep track of the employees' qualifications and development, it is necessary to introduce and maintain an updated Employee Record System. There are several types of manual and computerized systems applicable for this purpose as illustrated below.

EMPLOYEE RECORD SYSTEM

 

Management 
Replacement Chart

 

Employee 
Record

7. MANAGEMENT REPLACEMENT CHART

MANAGEMENT REPLACEMENT CHART

A Management Replacement Chart represents an important element of an employee record system.

The Management Replacement Chart includes names of several candidates for the most important management positions within the organization and summarizes the level of present performance, promotion potential and additional training requirements for each candidate.

A typical Management Replacement Chart is presented next.

8. SMALL BUSINESS EXAMPLE
MANAGEMENT REPLACEMENT CHART

9. EMPLOYEE RECORD

EMPLOYEE RECORD

Employee Record contains information that is compiled on each employee within the organization. This record includes information such as details of education, professional courses, career and development interests, additional training requirements, and details of skills and experience.

A typical Employee Record in a small or medium-sized company is presented below.

10. SMALL BUSINESS EXAMPLE
EMPLOYEE RECORD

11. FACTORS WHICH INFLUENCE THE AVAILABILITY OF EMPLOYEES

AVAILABILITY OF EMPLOYEES

Sometimes business owners and managers are not able to find suitable Candidates within the organization to fill certain positions in order to meet new organizational objectives. In this instance, it becomes necessary to look for suitable candidates outside the organization.

The availability of suitable candidates in the open job marketplace depends upon several factors outlined below.

FACTORS WHICH INFLUENCE THE AVAILABILITY OF EMPLOYEES

General Economic Conditions.

These conditions depend upon overall economic conditions in the country, rate of unemployment, and anticipated economic trends.

Local Labor Conditions.

These conditions depend upon the economic situation in a specific city, county, or state.

Occupational Market Conditions.

These conditions depend upon the availability and demand for professional people, such as engineers, accountants, computer programmers, and trade people.

12. ADVANTAGES OF THE EMPLOYEE PLANNING PROCESS

ADVANTAGES OF THE EMPLOYEE PLANNING PROCESS

The main advantage of the Employee Planning Process is that it enables business owners and managers to make correct decisions regarding the company's needs for employees who can meet the company's objectives. Moreover, the employee planning process helps management to deal more effectively with several important issues, as outlined below. These issues represent an integral part of the human resources management process and are discussed in detail throughout Tutorial 2.

APPLICATION OF THE EMPLOYEE PLANNING PROCESS

No.

Details

1.

Employee hiring.

2.

Employee training.

3.

Design of career management programs.

4.

Design of productivity programs.

5.

Design of sales programs.

6.

Employee organization programs.

13. FOR SERIOUS BUSINESS OWNERS ONLY

ARE YOU SERIOUS ABOUT YOUR BUSINESS TODAY?

Reprinted with permission.

14. THE LATEST INFORMATION ONLINE

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