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Human Resource Management


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Planning for and Recruiting Human Resources

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Human Resource Management

  1. 1. fundamentals of Human Resource Management 4th edition by R.A. Noe, J.R. Hollenbeck, B. Gerhart, and P.M. Wright CHAPTER 5 Planning for and Recruiting Human ResourcesMcGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All Rights Reserved.
  2. 2. What Do I Need to Know?1. Discuss how to plan for human resources needed to carry out the organization’s strategy.2. Determine the labor demand for workers in various job categories.3. Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage. 5-2
  3. 3. What Do I Need to Know? (continued)1. Describe recruitment policies organizations use to make job vacancies more attractive.2. List and compare sources of job applicants.3. Describe the recruiter’s role in the recruitment process, including limits and opportunities. 5-3
  4. 4. The Process of Human Resource Planning• Organizations should carry out human resource planning so as to meet business objectives and gain a competitive advantage over competitors. – Human resource planning compares the present state of the organization with its goals for the future – Then identifies what changes it must make in its human resources to meet those goals 5-4
  5. 5. Figure 5.1: Overview of the HumanResource Planning Process 5-5
  6. 6. Forecasting• Forecasting: attempts There are three major to determine the supply steps to forecasting: and demand for various 2. Forecasting the demand types of human for labor resources to predict 3. Determining labor areas within the supply organization where there will be labor 4. Determining labor shortages or surpluses. surplus or shortage 5-6
  7. 7. Forecasting the Demand for Labor Trend Analysis Leading Indicators• Constructing and • Objective measures that applying statistical accurately predict models that predict future labor demand. labor demand for the next year, given relatively objective statistics from the previous year. 5-7
  8. 8. Determining Labor Supply• Transitional matrix: a It answers two questions: chart that lists job 2. “Where did people in categories held in one each job category go?” period and shows the 3. “Where did people now proportion of employees in each job category in each of those job come from? categories in a future period. 5-8
  9. 9. Table 5.1: Transitional Matrix – Examplefor an Auto Parts Manufacturer 5-9
  10. 10. Determining Labor Surplus or Shortage• Based on the forecasts for labor demand and supply, the planner can compare the 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. 5-10
  11. 11. Goal Setting and Strategic Planning• The 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.• The goals should come directly from the analysis of supply and demand.• For each goal, the organization must choose one or more human resource strategies.• Organizations should retain and attract employees who provide a core competency (what makes it better than competitors) 5-11
  12. 12. Options for Reducing a Surplus 5-12
  13. 13. As the average age of many workers in skilled trades grows, the comingdemand for workers in many trades is expected to outstrip supply in theUnited States. There is a potential for employers in some areas toexperience a labor shortage because of this. 5-13
  14. 14. Options for Avoiding a Shortage 5-14
  15. 15. Table 5.2: HR Strategies for Addressing aLabor Shortage or Surplus 5-15
  16. 16. 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 5-16
  17. 17. Implementing and Evaluating the HR Plan• When implementing the HR strategy, the organization must hold some individual accountable for achieving the goals.• That person must also have the authority and resources needed to accomplish those goals.• Regular progress reports should be issued.• The evaluation of results should not only look at the actual numbers, but should also identify which parts of the planning process contributed to success or failure. 5-17
  18. 18. Applying HR Planning to Affirmative Action• Workforce Utilization • The organization must Review: a comparison of assess current utilization employees in protected patterns, then forecast groups with the how they are likely to proportion that each group represents in the change in the near future. relevant labor market. • If the analyses forecast• The steps in a workforce underutilization of certain utilization review are groups, then goals and a identical to the steps in plan will be established. the HR planning process. 5-18
  19. 19. Recruiting Human Resources• The role of human resource recruitment is to build a supply of potential new hires that the organization can draw on if the need arises.• Recruiting: any activity carried on by the organization with the primary purpose of identifying and attracting potential employees. 5-19
  20. 20. Figure 5.2: Three Aspects of Recruiting 5-20
  21. 21. PersonnelPoliciesSeveral personnelpolicies areespecially relevantto recruitment: 5-21
  22. 22. • Image advertising, suchas in this campaign torecruit nurses, promotesa whole profession ororganization as opposedto a specific job opening.• This ad is designed tocreate a positiveimpression of theprofession, which is nowfacing a shortage ofworkers. 5-22
  23. 23. Recruitment Sources: Internal Sources• Job Posting: the process of communicating information about a job vacancy: – On company bulletin boards – In employee publications – On corporate intranets – Anywhere else the organization communicates with employees 5-23
  24. 24. Advantages of Internal Sources1. 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. 5-24
  25. 25. One in Three Positions Are Filled with Insiders 5-25
  26. 26. Recruitment Sources: External Sources 5-26
  27. 27. Figure 5.3: External Recruiting Sources –Percentage of Employees Hired 5-27
  28. 28. Evaluating the Quality of a Source Yield Ratios Cost Per Hire• A ratio that expresses the • Find the cost of using a percentage of applicants who particular recruitment source successfully move from one for a particular type of vacancy. stage of the recruitment and • Divide that cost by the number selection process to the next. of people hired to fill that type• By comparing the yield ratios of of vacancy. different recruitment sources, • A low cost per hire means that we can determine which source the recruitment source is is the best or most efficient for efficient. the type of vacancy. 5-28
  29. 29. Table 5.3:Results of a Hypothetical Recruiting Effort 5-29
  30. 30. Your Experience• In your last job search, what was your experience with a recruiter or other point of contact before you were offered the job? A. Lousy, I didn’t take the job B. Lousy, but I took the job anyway C. Great, but I didn’t take the job D. Great, I took the job E. The experience wasn’t memorable. 5-30
  31. 31. Recruiter Traits and Behaviors 5-31
  32. 32. Recruiter Characteristics and BehaviorTrue = 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. 5-32
  33. 33. Figure 5.4:Recruits Who Were Offended by Recruiters 5-33
  34. 34. Enhancing the Recruiter’s Impact• Recruiters should provide timely feedback.• Recruiters should avoid offensive behavior.• They should avoid behaving in ways that might convey the wrong impression about the organization.• The organization can recruit with teams rather than individual recruiters. 5-34
  35. 35. Recruiting Exercise (1 of 2)• You are the regional HR director of the restaurant chain (e.g., Ruby Tuesday’s or TGI Fridays) and responsible for recruiting all staff for the restaurants in your region.• One of the stores in your region needs to hire servers. 5-35
  36. 36. Recruiting Exercise (2 of 2)1. What knowledge, skills, and abilities are required for the positions you are recruiting?2. Will your sources of applicants be internal, external, or both? Explain.3. What recruiting strategies will you use?4. What metrics will you use to measure your success? 5-36
  37. 37. Summary• The first step in human resource planning is personnel forecasting. Through trend analysis and good judgment, the planner tries to determine the supply and demand for various human resources.• The next step is to determine the labor demand for workers in various job categories. Analysis of a transitional matrix can help the planner identify which job categories can be filled internally and where high turnover is likely. 5-37
  38. 38. Summary (continued)• 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 the easiest and fastest strategy.• Internal recruiting generally makes job vacancies more attractive because candidates see opportunities for growth and advancement. 5-38
  39. 39. Summary (continued)• 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 the kinds of applicants generated. 5-39