Chapter 05 Human Resource Planning and Recruitment McGraw-Hill/Irwin Copyright © 2013 by The...

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Chapter 05 Human Resource Planning and Recruitment McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. Human Resource Management: Gaining a Competitive Advantage

Transcript of Chapter 05 Human Resource Planning and Recruitment McGraw-Hill/Irwin Copyright © 2013 by The...

Page 1: Chapter 05 Human Resource Planning and Recruitment McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. Human Resource.

Chapter 05

Human Resource Planning and Recruitment

McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.

Human Resource Management:Gaining a Competitive Advantage

Page 2: Chapter 05 Human Resource Planning and Recruitment McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. Human Resource.

Learning ObjectivesDiscuss how to align company’s strategic

direction with its HR planning.

Determine labor demand for workers in various job categories.

Discuss advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage.

Describe various recruitment policies to make job vacancies more attractive.

List various sources from which job applicants can be drawn, their advantages and disadvantages and evaluation methods.

Explain the recruiter’s role, limits and opportunities.

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Page 3: Chapter 05 Human Resource Planning and Recruitment McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. Human Resource.

3 Stages in HR

Planning

Process

1. Forecasting

2. Goal Setting

& Strategic Planning 3. Program

Implementation &

Evaluation

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Page 4: Chapter 05 Human Resource Planning and Recruitment McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. Human Resource.

Forecasting Stage of HR Planning

Determine Labor Demandderived from product/service demandedexternal in nature

Determine Labor SupplyInternal movements caused by transfers,

promotions, turnover, retirements, etc.transitional matrices identify employee

movements in different job categories over time to chart historical trends in company’s labor supply

useful for AA / EEO purposes

Determine Labor Surplus or Shortage

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Page 5: Chapter 05 Human Resource Planning and Recruitment McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. Human Resource.

Options for Reducing Expected Labor Surplus

Option Speed Human Suffering

FastFastFastFastFastSlowSlowSlowSlow

HighHighHighModerateModerateLowLowLowLow

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

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Page 6: Chapter 05 Human Resource Planning and Recruitment McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. Human Resource.

Options for Avoiding Expected Labor Surplus

Option SpeedRevocability

FastFastFastSlowSlowSlowSlow

HighHighHighHighModerateLowLow

1. Overtime2. Temporary

employees3. Outsourcing4. Retrained transfers5. Turnover reductions6. New external hires7. Technological innovation 5-6

Page 7: Chapter 05 Human Resource Planning and Recruitment McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. Human Resource.

Downsizing

Downsizing -planned elimination of large numbers of personnel to enhance organizational competitiveness.

4 Reasons for Downsizing:1. reduce labor costs2. technological changes reduce need for labor*3. mergers and acquisitions reduce bureaucratic

overhead4. organizations change location of where they do

business* Economy wide, capital spending ratio increased over 300% between 1990-

2010, indicating employers substituting technology for labor.

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Page 8: Chapter 05 Human Resource Planning and Recruitment McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. Human Resource.

Possible Negative Effects of Downsizing

Long-term effects of an improperly managed downsizing effort can be negative.

Lower long-term profit, performance and productivity

Loss of talent

Disrupts social networks needed for creativity and innovation

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Page 9: Chapter 05 Human Resource Planning and Recruitment McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. Human Resource.

Early Retirement Programs

The average age of U.S. workforce is increasing.

Baby boomers are not retiring early due to: improved health fear that Social Security will be cut mandatory retirement is outlawed collapse of the financial and housing markets made

it economically unviable to retire

Many employers try voluntary attrition among older workers through early retirement incentive programs.

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Page 10: Chapter 05 Human Resource Planning and Recruitment McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. Human Resource.

Employing Temporary Workers

Hiring temporary workers helps eliminate a labor shortage and affords flexibility needed to operate efficiently during demand swings.

3 Advantages:1. Temporary workers free a company from

administrative tasks and financial burdens.2. Temporary workers are often times tested

by a temporary agency.3. Many temporary agencies train employees

before sending them to employers.

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Page 11: Chapter 05 Human Resource Planning and Recruitment McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. Human Resource.

Outsourcing and Offshoring

Outsourcing uses an outside organization for a broad set of services.

Offshoring is outsourcing where jobs leave one country and go to another.

To help ensure the success of outsourcing: Choose an established, large outsourcing

vendor. Jobs that are proprietary or require tight

security should not be outsourced. Start small and monitor constantly.

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Page 12: Chapter 05 Human Resource Planning and Recruitment McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. Human Resource.

Affirmative Action Planning

Plan for various subgroups within a labor force.

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

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Page 13: Chapter 05 Human Resource Planning and Recruitment McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. Human Resource.

HR Recruitment Process

Job Choice

Recruitment Influences

JobChoice

ApplicantCharacteristics

Personnel PoliciesRecruiter Traits& Behaviors

Recruitment Sources

Vacancy Characteristics

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Page 14: Chapter 05 Human Resource Planning and Recruitment McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. Human Resource.

Personnel Policies

Organizational decisions that affect the nature of the vacancies for which people are recruited. Characteristics of the vacancy are more

important than recruiters or recruiting sources.

Personnel Policies vary: Internal versus external

recruiting Extrinsic versus intrinsic rewards Employment-at-will policies Image advertising

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Page 15: Chapter 05 Human Resource Planning and Recruitment McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. Human Resource.

Recruitment Sources

Internal Sources faster, cheaper,more certainty

External Sources new ideas & approaches

Direct Applicants& Referrals

self selection, low cost

Newspaper Advertising -large volume, low quality

recruits

Electronic Recruiting Internet

Public & Private Employment Agencies -

headhunters can beexpensive

Colleges & Universities campus placement services

JOBSJOBS

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Page 16: Chapter 05 Human Resource Planning and Recruitment McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. Human Resource.

Recruiters

Functional Area HR versus operating area specialist

Traitswarm and informative

Realism realistic job previewhonesty

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Page 17: Chapter 05 Human Resource Planning and Recruitment McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. Human Resource.

2 Steps to Enhance Recruiter Impact

1. Provide timely feedback

2. Recruit in teams

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Page 18: Chapter 05 Human Resource Planning and Recruitment McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. Human Resource.

Summary

HR planning uses labor supply and demand forecasts to anticipate labor shortages and surpluses to enhance organization’s success and reduce human suffering.

HR recruiting creates an applicant pool should a labor shortage occur.

Organizations can use recruiters to influence individuals’ perceptions of jobs.

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