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2006 The McGraw-Hill Companies, Inc. All rights reserved.

Chapter

5
Part Two: Acquisition and Preparation of Human Resources
Chapter 5 - Human Resource Planning and Recruitment Chapter 6 - Selection and Placement Chapter 7 - Training

McGraw-Hill/Irwin

2006 The McGraw-Hill Companies, Inc. All rights reserved.

Chapter

5
Human Resource Planning and Recruitment
Discuss

how to align a companys 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.

Chapter

5
Human Resource Planning and Recruitment
Describe

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 recruiters role in the recruitment process, the limits the recruiter faces, and the opportunities available.
McGraw-Hill/Irwin 2006 The McGraw-Hill Companies, Inc. All rights reserved.

Stages in Human Resource Planning


Forecasting
Labor

Demand Labor Supply


Goal

Setting and Strategic Planning Program Implementation and Evaluation

McGraw-Hill/Irwin

2006 The McGraw-Hill Companies, Inc. All rights reserved.

Forecasting Stage of Human Resource Planning


Determining
derived

Labor Demand

from product/service demanded external in nature


Determining
internal

Labor Supply

movements caused by transfers, promotions, turnover, retirements, etc. transitional matrices identify employee movements over time useful for AA / EEO purposes
Determining
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Labor Surplus or Shortage


2006 The McGraw-Hill Companies, Inc. All rights reserved.

Strategies for Reducing an Expected Labor Surplus


Option Speed Fast Fast Fast Fast Fast Slow Slow Slow Slow Extent of Human Suffering High High High Moderate Moderate Low Low Low Low
2006 The McGraw-Hill Companies, Inc. All rights reserved.

1. 2. 3. 4. 5. 6. 7. 8. 9.

Downsizing Pay reductions Demotions Transfers Work sharing Hiring freeze Natural attrition Early retirement Retraining

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Strategies for Reducing an Expected Labor Surplus


Option Speed Fast Fast Fast Slow Slow Slow Slow Extent of Human Suffering High High High High Moderate Low Low

1. Overtime 2. Temporary employees 3. Outsourcing 4. Retrained transfers 5. Turnover reductions 6. New external hires 7. Technological innovation
McGraw-Hill/Irwin

2006 The McGraw-Hill Companies, Inc. All rights reserved.

Downsizing
Downsizing

is the planned elimination of large numbers of personnel designed to enhance organizational competitiveness. Reasons for downsizing include:
need

to reduce labor costs technological changes reduce need for labor mergers and acquisitions reduce bureaucratic overhead organizations choose to change the location of where they do business
McGraw-Hill/Irwin 2006 The McGraw-Hill Companies, Inc. All rights reserved.

Effects of Downsizing
Studies

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 Programs


The

average age of the U.S. workforce is increasing. Baby boomers are not retiring early for several reasons:
improved

health of older people a fear that Social Security will be cut mandatory retirement is outlawed
Many

employers try to induce voluntary attrition among older workers through early retirement incentive programs.
2006 The McGraw-Hill Companies, Inc. All rights reserved.

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Employing Temporary Workers


Hiring

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 burdens temporary workers are often times tested by a temporary agency many temporary agencies train employees before sending them to employees
McGraw-Hill/Irwin 2006 The McGraw-Hill Companies, Inc. All rights reserved.

Outsourcing and Offshoring


is an organizations 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:
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 Planning


It

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 Process


Job Choice
Vacancy Characteristics

Job Choice

Applicant Characteristics

Personnel Policies

Recruiter Traits and Behaviors

Recruitment Sources

Recruitment Influences
McGraw-Hill/Irwin 2006 The McGraw-Hill Companies, Inc. All rights reserved.

Personnel Policies
Characteristics

of the vacancy are more important than recruiters or recruiting sources. Personnel Policies vary:
Internal

versus External recruiting

opportunity for advancement

Market

leader pay strategy Employment-at-will policies- either party can terminate the relationship at any time

Due-process policy - employees can appeal a termination decision

Image
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Recruitment Sources
Colleges and Universities Internal Sources Faster, cheaper, more certainty campus placement services

Public & Private Employment Agencies headhunters, can be expensive


JOBS JOBS

External Sources New ideas and approaches

Electronic Recruiting the Internet

Direct Applicants and Referrals self selection, low cost


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Newspaper Advertising large volume, low quality recruits


2006 The McGraw-Hill Companies, Inc. All rights reserved.

Recruiters
Functional
HR-

Area

versus operating areaspecialist and informative


job preview, honesty

Traits
warm

Realism
realistic

McGraw-Hill/Irwin

2006 The McGraw-Hill Companies, Inc. All rights reserved.

Steps to Enhance Recruiter Impact


1. Provide timely feedback
1. Provide timely feedback

2. Avoid rude behavior


2. Avoid rude behavior

3. 3. Recruit in teams Recruit in teams

McGraw-Hill/Irwin

2006 The McGraw-Hill Companies, Inc. All rights reserved.

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