1

Part Two: Acquisition and Preparation of Human Resources

Part Two: Acquisition and Preparation of Human Resources

Chapter 5 - Human Resource Planning and Recruitment

Chapter 6 - Selection and Placement

Chapter 7 - Training

Chapter

5

© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

Human Resource Planning and Recruitment

Human Resource Planning and Recruitment

Discuss how to align a company’s strategic direction with its human resource planning.Determine the labor demand for workers in various job categories.Discuss the advantages and disadvantages of various ways of eliminating a labor surplus and avoiding a labor shortage.

McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

5Chapter

Human Resource Planning and Recruitment

Human Resource Planning and Recruitment

Describe the various recruitment policies that organizations adopt to make job vacancies more attractive.List the various sources from which job applicants can be drawn, their relative advantages and disadvantages, and the methods for evaluating them.Explain the recruiter’s role in the recruitment process, the limits the recruiter faces, and the opportunities available.

5Chapter

McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

Stages in Human Resource PlanningStages in Human Resource Planning

Forecasting Labor DemandLabor Supply

Goal Setting and Strategic Planning

Program Implementation and Evaluation

McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

Forecasting Stage of Human Resource Planning

Forecasting Stage of Human Resource Planning

Determining Labor Demandderived from product/service demandedexternal in nature

Determining Labor Supplyinternal movements caused by transfers, promotions,

turnover, retirements, etc.transitional matrices identify employee movements over

timeuseful for AA / EEO purposes

Determining Labor Surplus or Shortage

McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

Strategies for Reducing an Expected Labor Surplus

Strategies for Reducing an Expected Labor Surplus

Option Speed Extent of Human Suffering

FastFastFastFastFastSlowSlowSlowSlow

HighHighHighModerateModerateLowLowLowLow

1. Downsizing2. Pay reductions3. Demotions4. Transfers5. Work sharing6. Hiring freeze7. Natural attrition8. Early retirement9. Retraining

McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

Strategies for Reducing an Expected Labor Surplus

Strategies for Reducing an Expected Labor Surplus

Option Speed Extent of Human Suffering

FastFast

FastSlowSlowSlowSlow

HighHigh

HighHighModerateLowLow

1. Overtime2. Temporary employees3. Outsourcing4. Retrained transfers5. Turnover reductions6. New external hires7. Technological innovation

McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

DownsizingDownsizing

Downsizing is the planned elimination of large numbers of personnel designed to enhance organizational competitiveness.

Reasons for downsizing include:need to reduce labor coststechnological changes reduce need for labormergers and acquisitions reduce bureaucratic overheadorganizations choose to change the location of where

they do business

McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

Effects of DownsizingEffects of Downsizing

Studies show that firms that announce a downsizing campaign show worse, rather than better financial performance.

Reasons include:The long-term effects of an improperly managed

downsizing effort can be negative.Many downsizing campaigns let go of people who turn

out to be irreplaceable assets.Employees who survive the staff purges often become

narrow-minded, self-absorbed, and risk-averse. McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

Early Retirement ProgramsEarly Retirement Programs

The average age of the U.S. workforce is increasing.Baby boomers are not retiring early for several reasons:

improved health of older peoplea fear that Social Security will be cutmandatory retirement is outlawed

Many employers try to induce

voluntary attrition among older

workers through early

retirement incentive programs.

McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

Employing Temporary WorkersEmploying Temporary Workers

Hiring temporary workers helps eliminate a labor shortage.Temporary employment affords firms the flexibility needed

to operate efficiently in the face of swings in demand.Other advantages include:

temporary workers free a firm from many administrative tasks and financial burdens

temporary workers are often times tested by a temporary agency

many temporary agencies train employees before sending them to employees

McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

Outsourcing and OffshoringOutsourcing and Offshoring

Outsourcing is an organization’s use of an outside organization for a broad set of services.

Offshoring is a special case of outsourcing where the jobs that move actually leave one country and go to another.

To help ensure the success of outsourcing:outsource only those jobs that are repetitive, predictable, and

easily trained. Choose an outsourcing vendor that is large and established. Jobs that are proprietary or require tight security should not be

outsourced. It is a good idea to start small and monitor constantly.

McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

Affirmative Action PlanningAffirmative Action Planning

It is important to plan for various subgroups within a labor force.

A comparison of the proportion of workers in protected subgroups with the proportion that each subgroup represents is called a workforce utilization review.

The steps required to execute an affirmative action plan are identical to the steps in the generic planning process discussed earlier.

McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

The Human Resource Recruitment Process

The Human Resource Recruitment ProcessJob Choice

Recruitment Influences

JobChoice

ApplicantCharacteristics

PersonnelPolicies

Recruiter Traitsand Behaviors

RecruitmentSources

Vacancy Characteristics

McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

Personnel PoliciesPersonnel Policies

Characteristics of the vacancy are more important than recruiters or recruiting sources.

Personnel Policies vary:Internal versus External recruiting

opportunity for advancementMarket leader pay strategyEmployment-at-will policies- either party can terminate the

relationship at any time Due-process policy - employees can appeal a termination

decisionImage advertising

McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

Recruitment SourcesRecruitment Sources

Internal Sources -Faster, cheaper,more certainty

External Sources - New ideas and

approaches

Direct Applicantsand Referrals -

self selection, low cost

Newspaper Advertising -large volume, low

quality recruits

Electronic Recruiting - the Internet

Public & PrivateEmployment Agencies -

headhunters, can beexpensive

Colleges and Universities - campus placement services

JOBSJOBS

McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

RecruitersRecruiters

Functional Area HR- versus operating area-

specialistTraits

warm and informativeRealism

realistic job preview, honesty

McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

1. Provide timely feedback

2. Avoid rude behavior

3. Recruit in teams

Steps to Enhance Recruiter ImpactSteps to Enhance Recruiter Impact

1. Provide timely feedback

2. Avoid rude behavior

3. Recruit in teams

McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.