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Concluding case

Invincibility System

Prepared for
Assoc. Prof. Dr. Chen Chew Shen

By
Natticha

Worathanawong

5743240426

Nutnaree

Silamahakul

5743241026

Nattavadee

Krongphanich

5743242726

Nattavadee

Suchato

5743243326

2602313 Management/Organization
Bachelor of Business Administration
Chulalongkorn University
Fall, Semester 2015

Team Members

Nutnaree Silamahakul
5743241026

Nattavadee Suchato

Nattavadee Krongphanich

5743243326

5743242726

Natticha Worathanawong
5743240426

Preface
Preface

Human resource planning is the forecasting of HR


needs and the projected matching of individuals with expected
vacancies. It is widely used in most organizations to increase
the performance of the company. Invincibility is one of the
companies that use HR planning in the organization.
The purpose of this report is to discuss HR planning
adopted in Invincibility. It can also be used to be an example
for the next generations. This report consists of factors of HR
planning, legal concerns and how to improve the companys
training programs.
We hope our report would contribute beneficial
knowledge toward everyone who reads this report. If there is
any mistake, we would apologize in advance.

Table of Contents
Content

Content

Page

Company Background

Human resource planning

Question 1

10

Question 2

16

Question 3

22

Reference

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Invincibility System

Company Background
Background

Invincibility Systems

The 17,000 employees of Invincibility Systems design


and make aerospace and defense equipment such as rockets,
spacecraft propulsion systems, and missile propulsion systems.
Along with cutting-edge engineering, the company stands out
for its cutting-edge human resource management. Invincibility
has hire quantitative experts to analyze HR data with the same
care it uses to analyze rocket trajectories.

A few years ago, the company hired a statistician and


an HR planner to join a team that would collect and analyze
data, looking for factors that would predict human resource
needs. The team started by looking for ways to improve
recruiting.

Company Background
They collected data on the various sources of
candidates that the company was using and the candidates
actually selected. Then they used a statistical method called
regression analysis to identify which sources of candidates
generated the most hired--as well as the sources that generated
hires who went on to perform well. Using the results of the
analysis, Invincibility made its recruiting effort more efficient.
By focusing on the most productive sources of top employees,
it save time and money that formerly had gone toward
recruiting through channels that were less fruitful.

Next the HR team turned its efforts toward workforce


planning. For each department of Invincibility, the team
collects data describing the workforce--for example, job

Company Background
categories, years with the company, and labor force
projections. It runs regression analysis to predict the likelihood
that employees will leave the company in the coming year. The
results, coupled with sales forecasts, enable the company to
predict how many new employees will need to be hired in each
department.

Other companies do this kind of planning, but the


extent of the analysis at Invincibility is unusual. For one thing,
the analysis is conducted on the level of individual employees.
Thus, it shows not only that turnover may rise or fall, but also
which employees are most likely to leave. That level of
analysis

is

important

to

Invincibility

because

unlike

organizations where many people perform the same type of

Company Background
work and can step in when someone leaves, employees at
Invincibility typically fill highly specialized, highly skilled
roles. If an engineer with years of experience in developing
high-caliber ammunition suddenly departs, there may be no
one else on the team with that persons knowledge and skill
set.
Another unusual quality of Invincibilitys HR planning
is the variety of factors that the planners consider when they
run their regression analyses. For example, the company has
run regression to determine whether turnover is related to
changes in employee benefits and even the mouth of the year.
If the analysis shows that a factor has been significant in the
past the planners take it into account in their forecasts. In one
situation, the planners found that retirements in a department
rose after the company announced that it would be phasing out
health insurance benefits for retirees. More experienced
workers left before the phase-out took effect. When the
company prepared to phase out similar benefits in another
division, the planners knew they would need to step up
recruiting efforts there in preparation for an uptick retirements.
4

Company Background
Some of the data Invincibility uses for planning are
unsuitable for other kinds of HR decisions. For example, the
company has found that employees ages and marital status are
relevant for predicting whether they are likely to leave the
company. Turnover rates are higher among unmarried
employees and recently hired employees (who tend to be
younger). Thus, the company should plans greater recruiting
efforts in departments where it has higher levels of young and
unmarried employees. It also may consider stepping up its
efforts to mentor and train employees in these departments.
However, it does not make employment decisions such as
hiring and promotion based on these factors.

HR Planning
HR Planning
It is an ongoing process of systematic planning to
achieve optimum use of an organization's most valuable asset its human resources. The objective of human resource (HR)
planning is to ensure the best fit between employees and jobs,
while avoiding manpower shortages or surpluses. The three
key elements of the HR planning process are forecasting labor
demand, analyzing present labor supply, and balancing
projected labor demand and supply.
HR planning is an important component of HR
management. It links HR management directly to the strategic
plan of your organization. Most mid- to large sized
organizations have a strategic plan that guides them in
successfully meeting their missions. Organizations routinely
complete financial plans to ensure they achieve organizational
goals and while workforce plans are not as common, they are
just as important. Even a small organization with as few as 10
staff can develop a strategic plan to guide decisions about the
future.
6

HR Planning
Based on the strategic plan, your organization can
develop a HR plan that will allow you to make HR
management decisions now to support the future direction of
the organization. HR planning is also important from a
budgetary point of view so that you can factor the costs of
recruitment, training, etc. into your organization's operating
budget.
The overall purpose of strategic HR planning is to:
- Ensure adequate human resources to meet the strategic goals
and operational plans of your organization - the right people
with the right skills at the right time
- Keep up with social, economic, legislative and technological
trends that impact on human resources in your area and in the
sector
- Remain flexible so that your organization can manage change
if the future is different than anticipated

HR Planning
HR planning predicts the future HR management needs
of the organization after analyzing the organization's current
human resources, the external labor market and the future HR
environment that the organization will be operating in. The
analysis of HR management issues external to the organization
and developing scenarios about the future are what
distinguishes strategic planning from operational planning.

HR Planning
The basic questions to be answered for strategic planning are:
-

Where are we going?

How will we develop HR strategies to successfully get


there, given the circumstances?

What skill sets do we need?

The strategic HR planning process has four steps:


-

Assessing the current HR capacity

Forecasting HR requirements

Gap analysis

Developing HR strategies to support organizational


strategies

Question 1
Besides the factors
identified, what other
factors should
Invincibility Systems
take into account in its
HR planning?

Question 1 Besides the factors identified, what


other factors should Invincibility Systems take into
account in its HR planning?
HR planning is the way which allows the company to
identify current and future human resources needs for an
organization to achieve its goals. In other words, it predicts
how many new employees will need to be hired. At the
moment Invincibility Systems has already performed a very
unique work on internal research, which has given a chance to
its decision making managers to discover very individual
aspects of the company. The firms research has looked at
factors such as health phase out plan, marital status, age of
employees, year at the company, and job category to predict
the future turnover rate and therefore forecast their hiring
levels.

12

Question 1 Besides the factors identified, what


other factors should Invincibility Systems take into
account in its HR planning?

In addition to these factors, the company must also take


into consideration sales numbers such as current sales as well
as projected future sales growth as they estimate the sales force
required to meet the needs of the clients. The costs associated
with the following years demand are also very important to be
looked at by the firm if they want to predict the workforce
needed to work in the near future. The firm should also
consider its industrys strength and how well are the
competitors risking the firms profit, in order to determine the
workforce needed to compete in the industry.
A key aspect of HR planning is not only to predict the
demand of labor as mentioned in the previous paragraph, but
also the supply of labor as this factor will also affect the labor
force planning process of the firm. In the supply area,
Invincibility Systems must consider workforce trends before its
HR team makes projections. Considering most jobs at the firm
being highly specialized and require a great set of skill, the
company must look at the city its operating because most
highly skilled workers are found on the bigger industrialized
cities of the world. The firm must also look at the level and
13

Question 1 Besides the factors identified, what


other factors should Invincibility Systems take into
account in its HR planning?
trends of students graduating with highly skilled degrees and
what areas theses students are coming from.

Moreover, Invincibility System has to look at


demographic trends at the cities it is recruiting, and it must be
concerned with the fact that baby boomers are now retiring and
a great portion of highly skilled workers are getting off the
market while not the same amount of workers is replacing the
retirees. In addition, government programs of granting working
visas to foreign highly skilled students, as well as
technological investments and incentives also affect labor
force.

14

Question 1 Besides the factors identified, what


other factors should Invincibility Systems take into
account in its HR planning?
In conclusion, there are many much more factors
mentioned above which Invincibility System should take into
consideration for its HR planning. With these additional
factors, it could help the company to predict the future HR
management needs of the organization more accurately.

15

Question 2
What legal concern
does the data analysis
at Invincibility raise?
How should the
company address
those issues?

Question 2 What legal concern does the data


analysis at Invincibility raise? How should the
company address those issues?
When the company started using the statistical data
from regression analysis method, Invincibility will gain not
only the benefits but also there will be some risks that the firm
may face due to the legal concern. Invincibility will gain the
advantage, in term of legal, as all kind of decisions that the
firm has made will be supported by the documented data from
regression analysis. However, the company may counter the
problems of discriminating the potential of the employees or
eliminate the staff by using the information based on the
statistical analysis which is against to the law. For example, if
the company uses the statistical analysis data to hire or
terminate the employee due to the specific race, gender or
religion, the firm will surely do against the law.

18

Question 2 What legal concern does the data


analysis at Invincibility raise? How should the
company address those issues?
According to the federal law, there are the laws that
have been passed to ensure equal employment opportunity or
EEO. The main reason of issuing this law is to stop the
discriminatory practices that are unfair to specific groups and
to balance the pay given to men and women; provide
employment opportunities without the concerning of race,
religion, national origin, and gender. Also, to ensure that
employees of all ages will receive fair treatments as well as to
avoid discrimination against disabled individuals.
For the point of discrimination that may arise from
applying statistical analysis information, Invincibility must
carefully concern about this issue as the Civil Rights Act of
1964 has created The Equal Employment Opportunity
Commission (EEOC) to initiates investigations in response to
complaints concerning discrimination. Discrimination may
occur when hiring and promotion decisions are made based on
criteria that are not job-relevant. Failure to comply with EEO
legislation can result in substantial fines and penalties for
employees.

19

Question 2 What legal concern does the data


analysis at Invincibility raise? How should the
company address those issues?
Here are the examples of the laws that concern about
this discrimination and unfair opportunity for employees are as
followed:
1) Civil Rights Act (1991): Provides for possible
compensatory and punitive damages plus traditional
back pay for cases of intentional discrimination
brought under Title VII of the 1964 Civil Rights
Act Shifts the burden of proof to the employer.
2) Age Discrimination (1967 amended 1978,1986):
Prohibits age discrimination and restrict mandatory
retirement
3) Civil Right Act, Title VII (1964): Prohibits
discrimination in employment on the basis of race,
religion, color, sex, or national origin.
Moreover, even the firm has used those analyzed data,
that information might not be 100% fully correct; some error
may be occurred due to the mistakes during the part of filling
information in the regression analysis system. In addition, the
decision to hire or terminate the employees should be

20

Question 2 What legal concern does the data


analysis at Invincibility raise? How should the
company address those issues?
depended on each person, as not all of those people will have
the same characteristic or potential as the statistical data.
Therefore, in order to eliminate the risks that may arise
due to the issue of legal, Invincibility should make the
decisions that have to deal with the hiring employees by not
based on the statistical analysis knowledge as it will lead to the
problems of discriminate the potential of some employees and
may eliminate their chance to show up their efficiency in the
work; this kind of statistical data is more suitable with the
decision making of planning, developing, or training in the
future.

21

Question 3
Besides its use for HR
planning and
recruiting, how might
Invincibilitys data
analysis be applied to
improve the companys
training?

Question 3 Besides its use for HR planning and


recruiting, how might Invincibilitys data analysis
be applied to improve the companys training?
programs?
At the beginning, Invincibility has hired quantitative
experts to analyze Human resources data and the company has
recently hired a statistician and an HR planner to join a team
that would interpret and analyze data, looking for factors that
would predict human resource needs. The team started by
looking for ways to improve recruiting. They collected data on
various sources of candidates that the company was using and
the candidates actually selected. Then they used a statistical
method called regression analysis to identify which sources of
candidates generated the most hired and performed well. This
helps the company to save time and money using for recruiting
employees. For Human resources planning, the invincibility
system allows planners to consider variety of factors when they
run regression analysis. The team also collects data describing
the workforce for each department of Invincibility. In addition,
it also provides the data on the level of individual employees
which is very important because it can specifically understand
each employee.

24

Question 3 Besides its use for HR planning and


recruiting, how might Invincibilitys data analysis
be applied to improve the companys training?
programs?
Invincibility Systems data analysis has influenced
greatly the firms planning and hiring processes in the past.
However, the company also has a chance to use the same
method and improve the training programs which are not the
strongest area of the firm at the moment.
The first step of a training program in such a firm is to
discover who needs the training, which is referred as the needs
assessment part. In order to discover such a thing, Invincibility
System can use its data found in the research and look at what
individuals and departments have the highest rates of turnover.
The company can separate these individuals and areas in terms
of age, years at the company and marital status as mentioned in
the case and according to the results start the training in the
sections of the firm needed.
Moreover, the company can do a second data analysis
based on skills needed and based on what areas are lacking the
most level of highly skill personnel. Also, what areas have the
most chance of losing important expertise such as engineers
and scientists, Invincibility system can start training other
individuals in those departments, so this gap of knowledge and
25

Question 3 Besides its use for HR planning and


recruiting, how might Invincibilitys data analysis
be applied to improve the companys training?
programs?
expertise can be filled within the company rather than hiring
someone from the outside.
Second, the company can use the data obtained
previously, on what skills are missing to discover how to train
and what type of programs and training methods are conducted
with its employees. The data found in part one will directly
affect the way a company will put in place a role playing,
business simulation, behavior modeling, or any other type of
training.
Finally, the company can perform another data analysis
research after the training has been done, to evaluate the
effectiveness of the program and the level of learning of the
employees after passing by the training experience.

26

References
Human Resource Planning - HRP. (2008, July 14). Retrieved
October 17, 2015, from http://www.investopedia.com
/terms/h/human-resource-planning.asp
Strategic Human Resource Planning. (n.d.). Retrieved October
19, 2015, from https://en.wikipedia.org/wiki/
Strategic_human_resource_planning
Understanding Management. (n.d.). Retrieved October 27,
2015, from https://books.google.co.th

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