Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.

Part 2

Acquisition and Preparation of Human Resources

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.

ObjectivesAfter reading this chapter, you should be able to:

Chapter

1. Discuss how to align a company’s strategic direction with its human resource planning.

2. Determine the labor demand of workers in various job categories.

3. Discuss the advantages and disadvantages of various ways of eliminating a labor surplus and avoiding a labor shortage.

4. Describe the various recruitment policies organizations adopt to

make the job vacancies more attractive.

5. List the various sources from which job applicants can be drawn, their relative advantages and disadvantages, and methods for evaluating them.

6. Explain the recruiter’s role in the recruitment process, the limits the recruiter faces, and the opportunities available.

Human Resource Planning and Recruitment

5

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.

Stages in Human Resource Planning

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Forecasting Labor Demand Labor Supply

Goal Setting and Strategic Planning Program Implementation and

Evaluation

Forecasting Labor Demand Labor Supply

Goal Setting and Strategic Planning Program Implementation and

Evaluation

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.

Forecasting Stage of Human Resource Planning

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Determining Labor Demand derived from product / service demand external in nature

Determining Labor Supply internal movements caused by transfers, promotions,

turnover, retirements,etc. transitional matrices identify employee movements over time useful for AA / EEO purposes

Determining Labor Surplus or Shortage

Determining Labor Demand derived from product / service demand external in nature

Determining Labor Supply internal movements caused by transfers, promotions,

turnover, retirements,etc. transitional matrices identify employee movements over time useful for AA / EEO purposes

Determining Labor Surplus or Shortage

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.

Strategies for Reducing an Expected Labor Surplus

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Strategy SpeedExtent of

Human Suffering1. Downsizing

2. Pay reductions

3. Demotions

Fast

Fast

Fast

High

High

High

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.

Strategies for Reducing an Expected Labor Surplus

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Strategy SpeedExtent of

Human Suffering

1. Downsizing

2. Pay reductions

3. Demotions

4. Transfers

5. Worksharing

Fast

Fast

Fast

Fast

Fast

High

High

High

Moderate

Moderate

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.

Strategies for Reducing an Expected Labor Surplus

5-6

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Strategy SpeedExtent of

Human Suffering1. Downsizing

2. Pay reductions

3. Demotions

4. Transfers

5. Worksharing

6. Retirement

7. Natural attrition

8. Retraining

Fast

Fast

Fast

Fast

Fast

Slow

Slow

Slow

High

High

High

Moderate

Moderate

Low

Low

Low

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.

Strategies for Avoiding an Expected Labor Shortage

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Strategy Speed1. Overtime

2. Temporary employees

3. Outsourcing

4. Retrained transfers

5. Turnover reductions

6. New external hires

7. Technological innovations

Fast

Fast

Fast

Slow

Slow

Slow

Slow

High

High

High

High

Moderate

Low

Low

Reversibility

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.

Reasons for Downsizing5-8

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Need to reduce labor costs Reduced need for labor due to technology Reduced need for professional staff due to

mergers Changes in facility locations

Need to reduce labor costs Reduced need for labor due to technology Reduced need for professional staff due to

mergers Changes in facility locations

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.

Reasons for Downsizing NOT Living Up to Expectations

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Long-term negative effect when improperly managed

Loss of valued human assets Survivors become narrow-minded and

risk-adverse

Long-term negative effect when improperly managed

Loss of valued human assets Survivors become narrow-minded and

risk-adverse

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.

Advantages ofEmploying Temporary Workers

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Increases organizational flexibility Acts as a source of permanent hires Reduces training and orientation

costs Brings objective (outside)

perspective to firm

Increases organizational flexibility Acts as a source of permanent hires Reduces training and orientation

costs Brings objective (outside)

perspective to firm

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.

Disadvantages ofEmploying Temporary Workers

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Tension between “temps” and full-timers

Outsourcing can have long-term negative consequences

Tension between “temps” and full-timers

Outsourcing can have long-term negative consequences

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.

Recruitment Activities5-12

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Number of applicants Type of applicant Those likely to accept position if

offered

Number of applicants Type of applicant Those likely to accept position if

offered

Are designed to affect :

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.

The Human Resource Recruitment Process

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Personnel Policies Recruitment Sources Recruiter Characteristics

Personnel Policies Recruitment Sources Recruiter Characteristics

Decisions are made in 3 areas :

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.

Overview of the Individual Job Choice-Organizational Recruitment Process

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JOB CHOICE

Vacancy Characteristics

Vacancy Characteristics

PersonnelPolicies

RecruitmentSources

RecruiterCharacteristics

ApplicantCharacteristics

ApplicantCharacteristics

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.

Personnel Policies5-15

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Internal vs. External recruiting opportunity for advancement

Market Leader Pay strategy Employment-at-Will policy Image Advertising

Internal vs. External recruiting opportunity for advancement

Market Leader Pay strategy Employment-at-Will policy Image Advertising

Specific features include :

Can affect the nature of Job Vacancy characteristics

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.

Recruitment Sources

Internal sources faster, cheaper, more

certainty External sources

new ideas & approaches Direct applicants &

referrals self-selection, low cost

Newspaper advertising

Internal sources faster, cheaper, more

certainty External sources

new ideas & approaches Direct applicants &

referrals self-selection, low cost

Newspaper advertising

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Public employment agencies blue-collar jobs

Private employment agencies white-collar jobs

Colleges & Universities Electronic recruiting - the

Internet

Public employment agencies blue-collar jobs

Private employment agencies white-collar jobs

Colleges & Universities Electronic recruiting - the

Internet

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.

Recruiter Characteristics5-17

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Functional Area HR specialist v. operating area

Traits warmth, informative

Realism realistic job preview

Functional Area HR specialist v. operating area

Traits warmth, informative

Realism realistic job preview

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.

Steps to Enhance Recruiter Impact

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Provide timely feedback

Avoid rude behavior Recruit in teams

Provide timely feedback

Avoid rude behavior Recruit in teams