Human resource management practice I also available by michael armstrong

Scenario planning

Scenario planning is an assessment of the environ-

mental changes that are likely to affect the organ-

ization  so  that  a  prediction  can  be  made  of  the  

possible situations that may have to be dealt with 

in the future. The scenario may list a range of pre-

dictions  so  that  different  responses  can  be  con-

sidered.  The  scenario  is  best  based  on  systematic 

environmental scanning, possibly using the PESTLE 

approach (an assessment of the political, economic, 

social,  legal,  technological  and  economic  factors 

that  might  affect  the  organization). The  implicat-

ions  of  these  factors  on  the  organization’s  labour 

markets and what can be done about any human 

resource issues can then be considered.

Data collection

The information used in workforce planning can be 

collected under the following headings:

 

●

Qualitative internal data: business 

information on product/market 

developments, proposed work system and 

organizational changes; HR information on 

people (skills, performance, etc).

 

●

Quantitative internal data: workforce data 

on turnover, absence, demographics, skills 

audits, etc.

 

●

Qualitative external data: PESTLE analysis 

covering the following factors: political, 

economic, social, technological, legal and 

environmental.

 

●

Quantitative external data: labour market – 

demographics, skills availability.

Analysis

The  analysis  stage  brings  all  the  information  

together  from  the  business  plan,  the  activity  fore-

cast,  scenarios  and  internal  and  external  data  to 

provide the basis for demand and supply forecasts.