1. Define and explain the significance of the term ‘derived demand’ as it applies to Strategic Human Resources Planning. (5 marks)
The indirect demand for something that has value based on other goods that can be derived or made from it: such as raw materials or other inputs to a process of production. Derived demand for a material is driven by changes in demand for the end product whose creation or production requires that material. [1]
Strategic Human Resource planning is the process of anticipating and providing for the movement of people with the skills and experience, into, within, and out of an organization to meet the long term strategic needs of the organization. [2]
Derived demand applies to strategic human resources planning
There is a challenge in HR planning to prepare for those boomers’ retirement and make plans to ensure that their replacements will be adequately trained.
Labor environment such as labour market trend and labour relations also impacts Stonewall’s HR planning. Stonewall has its operation scattered over several provinces of Canada, hence it needs to consider the availability of the talent in each geographic area it operates. If the local talent pool can’t satisfy the demand of the company, contingency would then need to be built in its human resources planning. And again, the union plays a key role here: the existence of an anti-business union would significantly hinder the decision of the management to further expand its workforce.
Yet beyond all the factors mentioned, strategic human resources planning needs to be put into the framework of the corporate strategy: HR planning should facilitate the attainment of the strategic business goals, either under the corporate strategy for merger and acquisition or under the business strategy for expansion or downsizing.
4. Identify and explain the various techniques for forecasting labour supply and labour demand. What can organizations do in the short run when they recognize a gap in which supply far exceeds demand. What could Stonewall do in this situation? (20 marks)
There are two categories of techniques that can be used to perform demand forecasts: qualitative techniques and