Page 64 - DMGT106_MANAGING_HUMAN_ELEMENTS_AT_WORK

Managing Human Element at Work

Notes Staffing tables and Marko analysis focus on the number of employees in particular
jobs. Forecasting the supply of human resources requires that managers have a good
understanding of employee turnover and absenteeism. The other methods explained
below are more oriented towards the types of employees and their skills, knowledge
and experiences.

(c) Talent Inventories: Skill inventories can be prepared to include the employee’s education,
past work experience, vocational interests, specific abilities and skills, job tenure, etc.
This inventory requires that confidentiality is maintained in its preparation. The skill
inventory allows managers to quickly match job openings with employee backgrounds.
When data is gathered on managers, the term used is not skill inventories but
management inventories. Both skill and management inventories are broadly referred
to as talent inventories.

(d) Replacement Chart: Talent inventories are used to develop employee replacement charts
which current jobholders are identified with possible replacements should openings
occur. Thus replacement chart provides information on the current job performance
and promo ability of possible replacements.
(e) Succession Planning: Succession planning is the process of identifying, developing, and
tracking key individuals for executive positions. In today’s fast-moving environment,
succession planning may be more important and difficult to conduct. Here we must
note that replacement chart provides information on the current job performances and
this information can be used for succession planning where key individuals may be
shortlisted to eventually assume top-level positions in the organization.
Balancing Supply and Demand for Human Resources: Organizations strive for a proper
balance between demand and supply considerations in their human resource planning.
Demand considerations are based on forecast trends in business activities while supply
considerations involve the determination of where and how suitable candidates can be
found. The difficulties in locating applicants for the increasing number of jobs and greater
planning efforts are also needed in recruiting. In an effort to meet the demand for labour,
organizations have several staffing possibilities, including hiring full-time employees, having
the existing workers work overtime, recalling laid-off workers if any and using temporary
employees to man the work.
Additionally, organizations today reduce their workforce by relying on attrition a gradual
process of reducing employees through resignations, retirement or deaths-to reduce the
excess work force. The methods used by companies to reduce their work force are discussed
here:
Organizational Downsizing: Organizations have undertaken the extremely painful task of
downsizing and restructuring to reduce their “head count”. Because of either economic or
competitive pressures, organizations have found themselves with too many employees or
with employees who have the wrong kinds of skills. In order to reconcile labour supply and
demand considerations organizations have eliminated thousands of jobs. Downsizing is part
of a longer-term process of restructuring to take advantage of new technology, corporate
partnerships and cost minimization.
Layoff: Employee layoff decisions are usually based on seniority and/or performance. The
rights of employees during layoffs, their conditions concerning their eligibility for recall,
and their obligations in accepting recall should be decided in advance. In cases where
economic conditions have brought about layoffs, employees who were asked to go while
in good standing may be recalled to their jobs when the economic outlook brightens and
job openings occur.

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