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Copyright © 2014 by the McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin
FUNDAM
ENTALS
O
F
HUM
AN
RESO
UR...
5-2
Need to Know
1. How to plan for HR needed to carry out organization’s
strategy.
2. Labor demand for workers in various...
5-3
Process of HR
• Organizations should carry out HR planning so
as to meet business objectives and gain a
competitive ad...
5-4
Figure 5.1: Overview of HR Planning
Process
Forecasting
Fo re casting : attempts
to determine supply
and demand for
various types of HR to
predict areas within the
or...
Forecasting Labor Demand
• Constructing and
applying statistical
models that predict
labor demand for next
year, given rel...
Determine Labor Supply
• Transitional matrix: a
chart that lists job
categories held in one
period and shows
proportion of...
5-8
Table 5.1: Transitional Matrix –
Auto Parts Manufacturer Example
5-9
Determine Labor Surplus or Shortage
• Based on forecasts for labor demand and supply,
planner can compare figures to d...
5-10
Goal Setting and Strategic Planning
• Purpose of setting specific numerical goals is to
focus attention on the proble...
5-11
Options for Reducing a Surplus
5-12
As the average age of many workers in skilled trades grows, the coming
demand for workers in many trades is expected ...
5-13
Options for Avoiding a Shortage
5-14
Table 5.2: HR Strategies for Addressing
a Labor Shortage or Surplus
5-15
Test Your Knowledge
• A public accounting firm of 250 employees
realizes they have a surplus of 15 support
personnel ...
5-16
Implement and Evaluate HR Plan
• When implementing the HR strategy,
organizations must hold individuals
accountable f...
Apply HR Planning to Affirmative
Action
• Wo rkfo rce Utiliz atio n
Re vie w: comparison of
employees in
protected groups ...
5-18
Recruit HR
• Role of HR recruitment is to build a supply of
potential new hires that the organization can
draw on if ...
5-19
Figure 5.2: Three Aspects of Recruiting
Personnel
Policies
Several
personnel
policies are
especially
relevant to
recruitment:
5-20
Image advertising,
such as in this
campaign to recruit
nurses, promotes a
whole profession or
organization as
opposed to a...
5-22
Recruitment Sources: Internal Sources
Jo b Po sting : process of communicating
information about a job vacancy:
– On ...
5-23
Advantages of Internal Sources
1. It generates applicants who are well known to
the organization.
2. These applicants...
5-24
4 in 10 Positions Are Filled with Insiders
Recruitment Sources: External Sources
5-25
5-26
Figure 5.3: External Recruiting Sources –
Percentage of Employees Hired
Evaluating the Quality of a
Source
•A ratio that expresses
percentage of applicants
who successfully move
from one stage o...
5-28
Table 5.3: Results of a Hypothetical
Recruiting Effort
5-29
Recruiter Traits and Behaviors
5-30
Recruiter Characteristics and Behavior
 True = A False = B
• Applicants respond more positively when the recruiter
i...
5-31
Figure 5.4: Recruits Who Were
Offended by Recruiters
5-32
Enhance Recruiter’s Impact
• Recruiters should provide timely feedback and
avoid offensive behavior.
• They should av...
5-33
Summary
• First step in HR planning is personnel
forecasting. Through trend analysis and good
judgment, planner deter...
5-34
Summary
 To reduce a surplus, downsizing, pay reductions,
and demotions deliver fast results but at a high
cost in h...
5-35
Summary
 Lead-the-market pay strategies make jobs
economically desirable.
 Internal sources are usually not suffici...
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Chapter 5 powerpoint

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Chapter 5 powerpoint

  1. 1. Copyright © 2014 by the McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin FUNDAM ENTALS O F HUM AN RESO URCE M ANAG EM ENT 5 TH EDITIO N BY R.A. NO E, J.R. HO LLENBECK, B. G ERHART, AND P.M . W RIG HT CHAPTER 5 PLANNING FO R AND RECRUITING HUM AN RESO URCES
  2. 2. 5-2 Need to Know 1. How to plan for HR needed to carry out organization’s strategy. 2. Labor demand for workers in various job categories. 3. Advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage. 4. Recruitment policies organizations use to make job vacancies more attractive. 5. Sources of job applicants. 6. Recruiter’s role in recruitment process- limits and opportunities. 1. How to plan for HR needed to carry out organization’s strategy. 2. Labor demand for workers in various job categories. 3. Advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage. 4. Recruitment policies organizations use to make job vacancies more attractive. 5. Sources of job applicants. 6. Recruiter’s role in recruitment process- limits and opportunities.
  3. 3. 5-3 Process of HR • Organizations should carry out HR planning so as to meet business objectives and gain a competitive advantage over competitors. • HR planning compares the present state of the organization with its future goals • Then identifies what changes it must make in its HR to meet those goals • Organizations should carry out HR planning so as to meet business objectives and gain a competitive advantage over competitors. • HR planning compares the present state of the organization with its future goals • Then identifies what changes it must make in its HR to meet those goals
  4. 4. 5-4 Figure 5.1: Overview of HR Planning Process
  5. 5. Forecasting Fo re casting : attempts to determine supply and demand for various types of HR to predict areas within the organization where there will be labor shortages or surpluses. Fo re casting : attempts to determine supply and demand for various types of HR to predict areas within the organization where there will be labor shortages or surpluses. Forecasting steps: 1. Forecast labor demand Determine labor supply 2. Determine labor surplus or shortage Forecasting steps: 1. Forecast labor demand Determine labor supply 2. Determine labor surplus or shortage 5-5
  6. 6. Forecasting Labor Demand • Constructing and applying statistical models that predict labor demand for next year, given relatively objective statistics from previous year. • Constructing and applying statistical models that predict labor demand for next year, given relatively objective statistics from previous year. • Objective measures that accurately predict future labor demand. • Objective measures that accurately predict future labor demand. Trend Analysis Leading Indicators 5-6
  7. 7. Determine Labor Supply • Transitional matrix: a chart that lists job categories held in one period and shows proportion of employees in each of those job categories in a future period. • Transitional matrix: a chart that lists job categories held in one period and shows proportion of employees in each of those job categories in a future period.  It answers two questions: 1. “Where did people in each job category go?” 2. “Where did people now in each job category come from?”  It answers two questions: 1. “Where did people in each job category go?” 2. “Where did people now in each job category come from?” 5-7
  8. 8. 5-8 Table 5.1: Transitional Matrix – Auto Parts Manufacturer Example
  9. 9. 5-9 Determine Labor Surplus or Shortage • Based on forecasts for labor demand and supply, planner can compare figures to determine whether there will be a shortage or surplus of labor for each job category. • Determining expected shortages and surpluses allows the organization to plan how to address these challenges. • Based on forecasts for labor demand and supply, planner can compare figures to determine whether there will be a shortage or surplus of labor for each job category. • Determining expected shortages and surpluses allows the organization to plan how to address these challenges.
  10. 10. 5-10 Goal Setting and Strategic Planning • Purpose of setting specific numerical goals is to focus attention on the problem and provide a basis for measuring the organization’s success in addressing labor shortages and surpluses. • Goals should come directly from analysis of supply and demand. • For each goal, organization must choose one or more HR strategies. • Organizations should retain and attract employees who provide a core competency (what makes it better than competitors) • Purpose of setting specific numerical goals is to focus attention on the problem and provide a basis for measuring the organization’s success in addressing labor shortages and surpluses. • Goals should come directly from analysis of supply and demand. • For each goal, organization must choose one or more HR strategies. • Organizations should retain and attract employees who provide a core competency (what makes it better than competitors)
  11. 11. 5-11 Options for Reducing a Surplus
  12. 12. 5-12 As the average age of many workers in skilled trades grows, the coming demand for workers in many trades is expected to outstrip supply in the United States. There is a potential for employers in some areas to experience a labor shortage because of this.
  13. 13. 5-13 Options for Avoiding a Shortage
  14. 14. 5-14 Table 5.2: HR Strategies for Addressing a Labor Shortage or Surplus
  15. 15. 5-15 Test Your Knowledge • A public accounting firm of 250 employees realizes they have a surplus of 15 support personnel (not auditors). What should they do? A. Hire temporary workers B. Offer early retirement C. Downsize people in those positions D. Wait for attrition and implement a hiring freeze for those positions
  16. 16. 5-16 Implement and Evaluate HR Plan • When implementing the HR strategy, organizations must hold individuals accountable for achieving goals. • They must also have authority and resources needed to accomplish those goals. • Regular progress reports should be issued. • Evaluation of results should look at tactual numbers and identify which parts of planning process contributed to success or failure. • When implementing the HR strategy, organizations must hold individuals accountable for achieving goals. • They must also have authority and resources needed to accomplish those goals. • Regular progress reports should be issued. • Evaluation of results should look at tactual numbers and identify which parts of planning process contributed to success or failure.
  17. 17. Apply HR Planning to Affirmative Action • Wo rkfo rce Utiliz atio n Re vie w: comparison of employees in protected groups with proportion that each group represents in relevant labor market. • Steps in a workforce utilization review are identical to steps in HR planning process. • Wo rkfo rce Utiliz atio n Re vie w: comparison of employees in protected groups with proportion that each group represents in relevant labor market. • Steps in a workforce utilization review are identical to steps in HR planning process. • Organization must assess current utilization patterns, then forecast how they are likely to change in near future. • If analyses forecast underutilization of certain groups, then goals and a plan will be established. • Organization must assess current utilization patterns, then forecast how they are likely to change in near future. • If analyses forecast underutilization of certain groups, then goals and a plan will be established. 5-17
  18. 18. 5-18 Recruit HR • Role of HR recruitment is to build a supply of potential new hires that the organization can draw on if need arises. • Recruiting: any activity carried on by the organization with the primary purpose of identifying and attracting potential employees. • Role of HR recruitment is to build a supply of potential new hires that the organization can draw on if need arises. • Recruiting: any activity carried on by the organization with the primary purpose of identifying and attracting potential employees.
  19. 19. 5-19 Figure 5.2: Three Aspects of Recruiting
  20. 20. Personnel Policies Several personnel policies are especially relevant to recruitment: 5-20
  21. 21. Image advertising, such as in this campaign to recruit nurses, promotes a whole profession or organization as opposed to a specific job opening. This ad is designed to create a positive impression of the profession, which is now facing a shortage of workers. 5-21
  22. 22. 5-22 Recruitment Sources: Internal Sources Jo b Po sting : process of communicating information about a job vacancy: – On company bulletin boards – In employee publications – On corporate intranets – Anywhere else organization communicates with employees Jo b Po sting : process of communicating information about a job vacancy: – On company bulletin boards – In employee publications – On corporate intranets – Anywhere else organization communicates with employees
  23. 23. 5-23 Advantages of Internal Sources 1. It generates applicants who are well known to the organization. 2. These applicants are relatively knowledgeable about the organization’s vacancies, which minimizes the possibility of unrealistic job expectations. 3. Filling vacancies through internal recruiting is generally cheaper and faster than looking outside the organization. 1. It generates applicants who are well known to the organization. 2. These applicants are relatively knowledgeable about the organization’s vacancies, which minimizes the possibility of unrealistic job expectations. 3. Filling vacancies through internal recruiting is generally cheaper and faster than looking outside the organization.
  24. 24. 5-24 4 in 10 Positions Are Filled with Insiders
  25. 25. Recruitment Sources: External Sources 5-25
  26. 26. 5-26 Figure 5.3: External Recruiting Sources – Percentage of Employees Hired
  27. 27. Evaluating the Quality of a Source •A ratio that expresses percentage of applicants who successfully move from one stage of the recruitment and selection process to the next. •By comparing yield ratios of different recruitment sources, we can determine which source is best or most efficient for type of vacancy. •A ratio that expresses percentage of applicants who successfully move from one stage of the recruitment and selection process to the next. •By comparing yield ratios of different recruitment sources, we can determine which source is best or most efficient for type of vacancy. •Find cost of using a particular recruitment source for a particular type of vacancy. •Divide that cost by number of people hired to fill that type of vacancy. •A low cost per hire means the recruitment source is efficient. •Find cost of using a particular recruitment source for a particular type of vacancy. •Divide that cost by number of people hired to fill that type of vacancy. •A low cost per hire means the recruitment source is efficient. Yield Ratios Cost Per Hire 5-27
  28. 28. 5-28 Table 5.3: Results of a Hypothetical Recruiting Effort
  29. 29. 5-29 Recruiter Traits and Behaviors
  30. 30. 5-30 Recruiter Characteristics and Behavior  True = A False = B • Applicants respond more positively when the recruiter is an HR specialist than line managers or incumbents. • Applicants respond positively to recruiters whom are warm and informative • Personnel policies are more important than the recruiter when deciding whether or not to take a job. • Realistic job previews should highlight the positive characteristics of the job rather than the negative.
  31. 31. 5-31 Figure 5.4: Recruits Who Were Offended by Recruiters
  32. 32. 5-32 Enhance Recruiter’s Impact • Recruiters should provide timely feedback and avoid offensive behavior. • They should avoid behaving in ways that might convey the wrong impression about the organization. • Organization can recruit with teams rather than individual recruiters. • Recruiters should provide timely feedback and avoid offensive behavior. • They should avoid behaving in ways that might convey the wrong impression about the organization. • Organization can recruit with teams rather than individual recruiters.
  33. 33. 5-33 Summary • First step in HR planning is personnel forecasting. Through trend analysis and good judgment, planner determines supply and demand for HR. • Next step - determine labor demand for workers in various job categories. • Analysis of a transitional matrix helps identify which job categories can be filled internally and where high turnover is likely. • First step in HR planning is personnel forecasting. Through trend analysis and good judgment, planner determines supply and demand for HR. • Next step - determine labor demand for workers in various job categories. • Analysis of a transitional matrix helps identify which job categories can be filled internally and where high turnover is likely.
  34. 34. 5-34 Summary  To reduce a surplus, downsizing, pay reductions, and demotions deliver fast results but at a high cost in human suffering that may hurt surviving employees’ motivation and future recruiting.  To avoid a labor shortage, requiring overtime is easiest and fastest strategy.  Internal recruiting generally makes job vacancies more attractive because candidates see opportunities for growth and advancement.  To reduce a surplus, downsizing, pay reductions, and demotions deliver fast results but at a high cost in human suffering that may hurt surviving employees’ motivation and future recruiting.  To avoid a labor shortage, requiring overtime is easiest and fastest strategy.  Internal recruiting generally makes job vacancies more attractive because candidates see opportunities for growth and advancement.
  35. 35. 5-35 Summary  Lead-the-market pay strategies make jobs economically desirable.  Internal sources are usually not sufficient for all of an organization’s labor needs.  Through their behavior and other characteristics, recruiters influence the nature of the job vacancy and kinds of applicants generated.  Lead-the-market pay strategies make jobs economically desirable.  Internal sources are usually not sufficient for all of an organization’s labor needs.  Through their behavior and other characteristics, recruiters influence the nature of the job vacancy and kinds of applicants generated.

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