The document discusses several strategies for dealing with labour shortages, including overtime, hiring temporary employees, subcontracting work, external recruitment, transfers, and promotions. It also discusses flexible work arrangements that can appeal to different worker groups and assist with meeting customer needs, such as allowing employees to build their workday around core hours or working from home. The document then outlines several diagnostic measures that can assess HR effectiveness, such as HR expenses, compensation costs, and turnover and absenteeism rates. Finally, it discusses tools for HR strategic planning like HR audits, economic value added analysis, and human resource information systems.

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2. Dealing with a Labour Shortage:
- Overtime
- Hiring temporary employees
- Subcontracting work
- External recruitment
- Transfers
- Promotions

3. Flexible Work Arrangements:
- Sought by younger workers to achieve work-
life balance.
- Sought by older workers to bridge to
retirement.
- Also assists in meeting customer needs.

4. - Employees build workday around core of mid-
day hours
- Reduces absenteeism
- Reduces use of sick leave for personal matters
- Increases receptiveness to change
- Can be complicated to administer

5. - Use of computers and telecommunications to
work at home.
- Improves cost savings, productivity and
morale.
- Many managers uncomfortable due to loss of
control over workers; trust is required.

6. Job Sharing,
- Duties of single position divided between two or more
employees.
Compressed Workweek,
- Work less than five days of more than eight hours
instead of five eight-hour days.
Flexyear,
- Every six months, choose number of hours to work
each month for next year.

7. - Investigate alternatives to downsizing.
- Involve those people necessary for success in the
planning for downsizing.
- Develop comprehensive communications plans
- Nurture the survivors.

8. - Diagnostic Measures of HR Effectiveness,
 HR expense per employee.
 Compensation as a percent of expenses.
 HR department expense as a percent of total
expenses.
 Cost of hires.
 Turnover rates.
 Absenteeism rates.
 Worker’s compensation per employee.

9. - HR Audit..
 A formal research effort that evaluates the current state
of HR management in an organization.
 Audit areas:
 Legal compliance.
 Current job specifications and descriptions.
 Valid recruiting and selection process.
 Formal wage and salary system. • Benefits.
 Employee handbook.
 Absenteeism and turnover control.
 Grievance resolution process.
 Orientation program. • Training and
development.
 Performance management system.

10. - Economic Value Added (EVA):
 A firm’s net operating profit after the cost of capital
(minimum rate of return demanded by the
shareholders) is deducted.
 Cost of capital is the benchmark for returns for all
HR activities.
- Utility analysis:
 Analysis in which economic or other statistical
models are built to identify the costs and benefits
associated with specific HR activities.

11. - Human resource information systems (HRIS):
 An integrated system of hardware, software, and
databases designed to provide information used in
HR decision making.
 Benefits of HRIS:
 Administrative and operational efficiency in compiling
HR data.
 Availability of data for effective HR strategic planning.
 Uses of HRIS:
 Automation of payroll and benefit activities.
 EEO/affirmative action tracking.