3 question in HR chapter ( Human Resource Planning and Recruitment)

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Chapter 5 Human Resource Planning

and Recruitment

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Learning Objectives

LO 5-1 Discuss how to align a company’s strategic direction with its

human resource planning.

LO 5-2 Determine the labor demand for workers in various job

categories.

LO 5-3 Discuss the advantages and disadvantages of various ways of

eliminating a labor surplus and avoiding a labor shortage.

LO 5-4 Describe the various recruitment policies that organizations

adopt to make job vacancies more attractive.

LO 5-5 List the various sources from which job applicants can be

drawn, their relative advantages and disadvantages, and the

methods for evaluating them.

LO 5-6 Explain the recruiter’s role in the recruitment process, the limits

the recruiter faces, and the opportunities available.

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Introduction

Societal trends and events affect employers

through

• consumer markets

• labor markets

Keys to effectively utilizing labor markets

• clear idea of current configuration of human

resources

• know where the organization is going in the

future, how the present configuration of human

resources relates to the configuration that will be

needed

• address discrepancies

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Figure 5.1 Overview of the Human Resource

Planning Process

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The Human Resource Planning Process 1 of 13

Forecasting

• Ascertain the supply of and demand for various

types of human resources

• Predict areas within the organization where there

will be future labor shortages or surpluses

• Can use statistical or judgmental methods

LO 5-1

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The Human Resource Planning Process 2 of 13

Forecasting continued

Determining labor demand

• Demand forecasts are developed around specific job

categories or skill areas relevant to the organization’s

current and future state

• May use statistical models

• Leading indicator predicts future labor demand

• Useful when there is a long, stable history that can

be used to reliably detect relationships among

variables

LO 5-2

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The Human Resource Planning Process 3 of 13

Forecasting continued

Determining labor supply

• Internal labor supply analyzes how many people are

currently in various job categories within the company

• Transitional matrices show the proportion (or number)

of employees in different job categories at different times

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The Human Resource Planning Process 4 of 13

Forecasting continued

Determining labor surplus or shortage

• ascertain whether there will be a labor shortage or labor surplus

for the respective job categories

• determine what to do about these potential problems

LO 5-3

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The Human Resource Planning Process 5 of 13

Goal Setting and Strategic Planning

• Focus attention on the problem and provide a

benchmark for determining the relative success of

any programs aimed at redressing a pending labor

shortage or surplus

• Analyze labor supply and demand and include a

figure for what should happen with the job

category or skill area and a timetable

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Table 5.2 Options for Reducing an Expected

Labor Surplus

Option Speed

Human

Suffering

Downsizing FAST High

Pay reductions FAST High

Demotions FAST High

Transfers FAST Moderate

Work sharing FAST Moderate

Hiring Freeze SLOW Low

Natural attrition SLOW Low

Early retirement SLOW Low

Retraining SLOW Low

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Table 5.3 Options for Avoiding an Expected

Labor Shortage

Option Speed Revocability

Overtime FAST High

Temporary employees FAST High

Outsourcing FAST High

Retrained transfers SLOW High

Turnover reductions SLOW Moderate

New external hires SLOW Low

Technological

innovation

SLOW Low

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The Human Resource Planning Process 6 of 13

Goal Setting and Strategic Planning continued

Downsizing

• Reduce labor costs

• Technological changes reduce need for labor

• Organizations change business location for economic

reasons

• Has negative effects on long-term organizational

effectiveness

• Leads to a loss of talent, disrupts the social

networks needed to promote creativity and flexibility

• Lets go of irreplaceable assets

• Motivation levels drop off

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The Human Resource Planning Process 7 of 13

Goal Setting and Strategic Planning continued

Early Retirement Programs and Buyouts

• Baby Boomers delaying retirement

• Employers concerned about losing the experience,

implicit knowledge of older workers

• Older workers cost more

• Older workers block advancement of younger workers

• Voluntary attrition through early retirement incentive

programs

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Figure 5.2 Aging of the U.S. Population

2000–2020

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The Human Resource Planning Process 8 of 13

Goal Setting and Strategic Planning continued

Temporary Workers and Independent Contractors

• The most widespread means of eliminating a labor

shortage

• Advantages

• Frees the firm from administrative tasks and financial

burdens associated with being the “employer of record”

• Agencies may test employees

• Agencies may train employees

• The temporary person brings an objective perspective to

the organization’s problems and procedures

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The Human Resource Planning Process 9 of 13

Goal Setting and Strategic Planning continued

Temporary Workers and Independent Contractors continued

• Independent contractors

• Freelancers, not part of an agency

• Agree to do specific tasks for specific time periods as

part of a written contract between the worker and the

employer

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The Human Resource Planning Process 10 of 13

Goal Setting and Strategic Planning continued

Outsourcing, offshoring, and immigration

• Outsourcing uses an outside organization for a broad

set of services.

• Jobs that are proprietary or require tight security

should not be outsourced.

• Offshoring is outsourcing where jobs leave one country

and go to another.

• Immigration

• H2-A and H2-B visas

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The Human Resource Planning Process 11 of 13

Goal Setting and Strategic Planning continued

Altering Pay and Hours

• Garner more hours from current employees

• Cut salaries

• Reduce contributions to 401(k) plans

• Reduce number of hours of all workers

• Furloughs

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The Human Resource Planning Process 12 of 13

Program Implementation and Evaluation

• Make sure that some individual is held accountable

for achieving the stated goals and has the

necessary authority and resources to accomplish

them

• Regular progress reports

• Evaluate the results

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The Human Resource Planning Process 13 of 13

The Special Case of Affirmative Action Planning

• Plan for subgroups within the labor force

• Affirmative action plans forecast and monitor the

proportion of various protected group members,

such as women and minorities

• Workforce utilization review

• Controversial because some non-minorities see

them as unfair

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Figure 5.4 Overview of the Individual Job Choice–

Organizational Recruitment Process

Jump to long description in appendix

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The Human Resource Recruitment Process 1 of 8

Personnel Policies

• Internal versus External Recruiting: Job Security

• A vacancy provides opportunity for advancement and

promotion (promote-from-within policies)

• Sometimes upsets current managers of employees who

are recruited away

• Bringing in recruits from external sources often helps

spur creativity and innovation

• Due process policies

• Employment-at-will policies

LO 5-4

The Human Resource Recruitment Process 2 of 8

Personnel Policies continued

Extrinsic and intrinsic rewards

• “Lead-the-market” approach to pay

• Paying higher-than-current-market wages

Image advertising

• When an organization promotes itself to help draw

applicants

• Influence the degree to which the person feels attracted

to the organization

The Human Resource Recruitment Process 3 of 8

Recruitment Sources

Internal versus External Sources

• Internal

• Applicants are well known to the firm and relatively knowledgeable about the job

• Cheaper and faster to fill vacancies internally

• Inside hires often outperform outsiders

• External

• May not be any internal recruits

• Exposure to new ideas or ways of doing business

• Good way to strengthen one’s own company and weaken one’s competitors at the same time

LO 5-5

The Human Resource Recruitment Process 4 of 8

Recruitment Sources continued

Direct applicants and Referrals

• Self-selection

• Liftout

The Human Resource Recruitment Process 5 of 8

Recruitment Sources continued

• Electronic Recruiting (e-cruiting)

• Use the organization’s web page to solicit applications

• LinkedIn, Craigslist, Monster.com

• Social networking

The Human Resource Recruitment Process 6 of 8

Recruitment Sources continued

Public and Private Employment Agencies

• State employment office

• Primarily serve the blue-collar market

• Private agencies

• Charge the employer for referrals

• Don’t have to be unemployed to use them

• Executive search firms (headhunters)

The Human Resource Recruitment Process 7 of 8

Recruitment Sources continued

Colleges and Universities

• Placement services

• Internship programs

• High school recruiting

Evaluating the Quality of a Source

• Yield ratios

• Cost-per-hire data

The Human Resource Recruitment Process 8 of 8

Recruiters

• Functional area

• Traits

• Realism

• Enhancing recruiter impact

• Provide timely feedback

• Recruit in teams

LO 5-6

Appendix of Image Long

Descriptions

Appendix 1 Figure 5.4 Overview of the Individual Job Choice–

Organizational Recruitment Process

Recruitment influences of personnel policies, recruiter traits

and behaviors, and recruitment sources affect vacancy

characteristics and applicant characteristics.

Vacancy and applicant characteristics, in turn, affect job

choice.

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