Convenience

Chapter 8:
Managing Human Resources in Organizations
2 3 1
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Forecasting the supply of labor is really two tasks: forecasting the internal supply (the
number and type of employees who will be in the firm at some future date) and forecast-
ing the external supply (the number and type of people who will be available for hiring
in the labor market at large).
10
The simplest approach merely adjusts present staffing
levels for anticipated turnover and promotions. Again, though, large organizations use
extremely sophisticated models to make these forecasts. At higher levels of the organiza-
tion, managers plan for specific people and positions. The technique most commonly
used is the
replacement chart
, which lists each important managerial position, who
occupies it, how long he or she will probably stay in it before moving on, and who (by
name) is now qualified or soon will be qualified to move into the position. This tech-
nique allows ample time to plan developmental experiences for persons identified as
potential successors to critical managerial jobs.
11
In February 2012, Warren Buffett
announced that he has a successor in mind to replace him as CEO of Berkshire Hath-
away and stated the eventual transfer of power would be seamless.
12
To facilitate both planning and identifying persons for current transfer or promotion,
some organizations also have an