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.
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1Part Two: Acquisition and Preparation of Human ResourcesChapter 5 - Human Resource Planning and RecruitmentChapter 6 - Selection and PlacementChapter 7 - TrainingChapter5© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/IrwinHuman Resource Planning and RecruitmentDiscuss 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.5ChapterHuman Resource Planning and RecruitmentDescribe 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.5ChapterMcGraw-Hill/Irwin© 2006 The McGraw-Hill Companies, Inc. All rights reserved.Stages in Human Resource PlanningForecasting Labor DemandLabor SupplyGoal Setting and Strategic PlanningProgram Implementation and EvaluationMcGraw-Hill/Irwin© 2006 The McGraw-Hill Companies, Inc. All rights reserved.Forecasting Stage of Human Resource PlanningDetermining Labor Demandderived from product/service demandedexternal in natureDetermining Labor Supplyinternal movements caused by transfers, promotions, turnover, retirements, etc.transitional matrices identify employee movements over timeuseful for AA / EEO purposesDetermining Labor Surplus or ShortageMcGraw-Hill/Irwin© 2006 The McGraw-Hill Companies, Inc. All rights reserved.Strategies for Reducing an Expected Labor SurplusOption Speed Extent of Human Suffering FastFastFastFastFastSlowSlowSlowSlowHighHighHighModerateModerateLowLowLowLow1. Downsizing2. Pay reductions3. Demotions4. Transfers5. Work sharing6. Hiring freeze7. Natural attrition8. Early retirement9. RetrainingMcGraw-Hill/Irwin© 2006 The McGraw-Hill Companies, Inc. All rights reserved.Strategies for Reducing an Expected Labor SurplusOption Speed Extent of Human Suffering FastFastFastSlowSlowSlowSlowHighHighHighHighModerateLowLow1. Overtime2. Temporary employees3. Outsourcing4. Retrained transfers5. Turnover reductions6. New external hires7. Technological innovationMcGraw-Hill/Irwin© 2006 The McGraw-Hill Companies, Inc. All rights reserved.DownsizingDownsizing 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 businessMcGraw-Hill/Irwin© 2006 The McGraw-Hill Companies, Inc. All rights reserved.Effects of DownsizingStudies 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 ProgramsThe 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 outlawedMany 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 WorkersHiring 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 burdenstemporary workers are often times tested by a temporary agencymany temporary agencies train employees before sending them to employeesMcGraw-Hill/Irwin© 2006 The McGraw-Hill Companies, Inc. All rights reserved.Outsourcing and OffshoringOutsourcing 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 PlanningIt 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 ProcessJob ChoiceRecruitment InfluencesJobChoiceApplicantCharacteristicsPersonnelPoliciesRecruiter Traitsand BehaviorsRecruitmentSourcesVacancy CharacteristicsMcGraw-Hill/Irwin© 2006 The McGraw-Hill Companies, Inc. All rights reserved.Personnel PoliciesCharacteristics of the vacancy are more important than recruiters or recruiting sources.Personnel Policies vary:Internal versus External recruitingopportunity for advancementMarket leader pay strategyEmployment-at-will policies- either party can terminate the relationship at any timeDue-process policy - employees can appeal a termination decisionImage advertisingMcGraw-Hill/Irwin© 2006 The McGraw-Hill Companies, Inc. All rights reserved.Recruitment SourcesInternal Sources -Faster, cheaper,more certaintyExternal Sources - New ideas andapproachesDirect Applicantsand Referrals - self selection, low cost Newspaper Advertising -large volume, lowquality recruitsElectronic Recruiting - the InternetPublic & PrivateEmployment Agencies - headhunters, can beexpensiveColleges and Universities - campus placement servicesJOBSJOBSMcGraw-Hill/Irwin© 2006 The McGraw-Hill Companies, Inc. All rights reserved.RecruitersFunctional Area HR- versus operating area-specialistTraitswarm and informativeRealismrealistic job preview, honestyMcGraw-Hill/Irwin© 2006 The McGraw-Hill Companies, Inc. All rights reserved.1. Provide timely feedback2. Avoid rude behavior3. Recruit in teamsSteps to Enhance Recruiter Impact1. Provide timely feedback2. Avoid rude behavior3. Recruit in teamsMcGraw-Hill/Irwin© 2006 The McGraw-Hill Companies, Inc. All rights reserved.
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