Reference: Adapted from Human Resource Forecasting Assignment, pp 108 110 in Nkomo, S. M., Fottler, M. D., McAfee, R. B. (2008) Human Resource Management Applications:

Cases, Exercises, Incidents, and Skill Builders, 6th Edition

Aim: To forecast the human resource needs of Northwest Regional Hospital (the Company)

that currently employs approximately 700 people.

Learning Objectives

Practice in forecasting an organisations people needs

To familiarise you with some of the factors that affect an organisations future people needs

To familiarise you with the complexities involved in making human resource forecasts

To point out that all human resource forecasting is based on assumptions and that these assumptions are critical to the accuracy of the forecast

Instructions

1. You have been given the assignment of forecasting the human resource needs of

Northwest Regional Hospital (the Company) that currently employs approximately

700 people. The Company presently has 15 outreach sites located throughout

tropical Northern Australia, each of which employs approximately 17 individuals.

2. The Company is planning an expansion into additional regional areas and expects to

add 22 new outreach sites over the next three years. Each outreach site within the

Company varies in size according to the needs of the community, so the figures

represent averages.

3. During the past month, the Company has placed an order for 3 new dialysis

machines to increase its renal support services. These machines are scheduled to be

in operation December 31, one year from now in existing outreach sites. The

Company has found that for each new machine purchased, 4 additional nurses are

needed, on average.

4. A breakdown of the Companys current staffing is shown in Table 1.

Table 1: Present staffing

Total Employees

700

Number of Outreach Sites

15

Number of Doctors (15 sites x 5 per site)

75

Number of Nurses (15 sites x 12 per site)

180

Outreach Facility Employees (15 sites x 17 per site)

255

Inpatient Facility Employees

445

5. The Company has asked you to perform four human resource forecasting tasks:

Task One: Role of Forecasting and Workforce Planning (20 marks)

Provide a summary (about 300 words) of the role of forecasting and workforce

planning. Locate two human resource management articles that discuss forecasting

and incorporate these into your summary.

Task Two: Human Resource Forecasting, Complete Table 2 (5 marks)

Based on the assumptions given below, you are required to determine employee

turnover for the inpatient facility office, the old outreach sites and the new outreach

sites. The CEO would like to know this information for each of the next three years

and for each of the major personnel categories (i.e., doctors, nurses, and inpatient

facility administrative staff). Your job is to complete Table 2.

Table 2: Turnover

Employee Category

Year 1

Year 2

Year 3

Old Outreach Site Doctors

Old Outreach Site Nurses

Inpatient Facility

New Outreach Site Doctors

New Outreach Site Nurses

Task Three: Human Resource Forecasting, Complete Table 3 (5 marks)

Your CEO would like to know the number of new employees the Company will need

to hire for each major personnel category for each of the next three years. Your job

is to complete Table 3.

Table 3: Number of Employees to be Hired

Employee Category

Year 1

Year 2

Year 3

Old Outreach Site Doctors

Old Outreach Site Nurses

Inpatient Facility

New Outreach Site Doctors

New Outreach Site Nurses

Task Four: Human Resource Forecasting, Complete Table 4 (5 marks)

Your CEO would like to know the total number of employees who will be working

for the Company as of the end of each of the next three years. Your job is to

complete Table 4.

Table 4: Year-End Employment

Employee Category

Year 1

Year 2

Year 3

Old Outreach Site Doctors

Old Outreach Site Nurses

Inpatient Facility

New Outreach Site Doctors

New Outreach Site Nurses

6. To complete your assignment, your CEO has told you to make a few assumptions as

follows:

A. You are making all projections in December for subsequent years ending

December 31.

B. With regard to the existing outreach sites, assume:

a. The 15 existing outreach sites employ 5 doctors and 12 nurses each.

b. On December 31 (one year hence), 3 new dialysis machines are placed in

operation and require an additional 12 nurses (4 per machine).

c. Turnover is 40 percent for nursing personnel, and 20 percent for doctors.

C. With regard to new outreach sites, assume:

a. New outreach sites are added as follows: 6 in Year 1, 10 in Year 2, and 6

in Year 3.

b. Each new outreach site employs 17 individuals (5 doctors and 12

nurses).

c. New outreach sites are added evenly throughout the year. Thus, for the

purpose of calculating turnover, on average, there are 3 new outreach

sites in Year 1 (50% x 6); 11 in year 2 [6 in Year 1 plus 5 (50% x 10)]; and

19 in Year 3 (16 in year 2 plus 3 (50% x 6)].

d. Turnover is 30 percent for nurses, and 20 percent for doctors.

D. With regard to the inpatient facility, assume that turnover will be 15 percent

per year.