Chapter 5

Human Resource Management
TWELFTH EDITION
GARY DESSLER BIJU VARKKEY

Part 2 | Recruitment and Placement
Chapter 5
Human Resources Planning and Recruiting

Copyright 2011 Dorling Kindersley (India) Pvt. Ltd Authorized adaptation from the United States edition of Human Resource Management, 12/e
After studying this chapter, you should be able to:

1. List the steps in the recruitment and selection process. 2. List and discuss the main outside sources of candidates. 3. Effectively recruit job candidates. 4. Name and describe the main internal sources of candidates. 5. Develop a help wanted ad. 6. Explain how to recruit a more diverse workforce.
52
The Recruitment and Selection Process

1. Decide what positions to fill through personnel planning and forecasting. forecasting. 2. Build a candidate pool by recruiting internal or external candidates. 3. Have candidates complete application forms and undergo initial screening interviews. 4. Use selection tools to identify viable candidates. 5. Decide who to make an offer to, by having the supervisor and others interview the candidates.
53
FIGURE 51
Steps in Recruitment and Selection Process
The recruitment and selection process is a series of hurdles aimed at selecting the best candidate for the job.
54
FIGURE 52
Linking Employers Strategy to Plans
55
Planning and Forecasting

Employment or Personnel Planning
The process of deciding what positions the firm
will have to fill, and how to fill them.
Succession Planning
The process of deciding how to fill the companys
most important executive jobs.
What to Forecast?
Overall personnel needs The supply of inside candidates The supply of outside candidates
56
Forecasting Personnel Needs
Forecasting Tools
Trend Analysis
Ratio Analysis
Scatter Plotting
57
FIGURE 53 Determining the Relationship Between Hospital Size and Number of Nurses
Note: After fitting the line, you can project how many employees youll need, given your projected volume. Size of Hospital (Number of Beds) 200 300 400 500 600 700 800 900 Number of Registered Nurses 240 260 470 500 620 660 820 860
58
Drawbacks to Traditional Forecasting Techniques

They focus on projections and historical relationships. They do not consider the impact of strategic initiatives on future staffing levels. They support compensation plans that reward managers for managing ever-larger staffs. ever They bake in the idea that staff increases are inevitable. They validate and institutionalize present planning processes and the usual ways of doing things.
59
Using Computers to Forecast Personnel Requirements

Computerized Forecasts
Software that estimates future staffing needs by:
Projecting
sales, volume of production, and personnel required to maintain different volumes of output. staffing levels for direct labor, indirect staff, and exempt staff.
Forecasting
Creating
metrics for direct labor hours and three sales projection scenariosminimum, maximum, scenarios and probable.
510
FIGURE 54 Management Replacement Chart Showing Development Needs of Potential Future Divisional Vice Presidents
511
Forecasting the Supply of Inside Candidates
Qualification Inventories
Manual Systems and Replacement Charts
Computerized Information Systems
512
The Matter of Privacy

Ensuring the Security of HR Information
Control of HR information through access matrices Access to records and employee privacy
513
Forecasting Outside Candidate Supply

Factors In Supply of Outside Candidates
General economic conditions Expected unemployment rate
Sources of Information
Periodic forecasts in business publications Online economic projections
514
Effective Recruiting
External Factors Affecting Recruiting
Supply of workers Outsourcing of white-collar jobs white Fewer qualified candidates
Other Factors Affecting Recruiting

Consistency of recruitment with strategic goals Types of jobs recruited and recruiting methods Nonrecruitment HR issues and policies Successful prescreening of applicants Public image of the firm
515
Effective Recruiting (continued)

Advantages of Centralizing Recruitment
Strengthens employment brand Facilitates applying strategic priorities Reduces duplication of HR activities Reduces cost of new HR technologies Builds teams of HR experts Provides better measurement of HR performance Allows for sharing of applicant pools
516
Measuring Recruiting Effectiveness
Evaluating Recruiting Effectiveness
What to Measure
How to Measure
517
FIGURE 55
Recruiting Yield Pyramid
518
Internal Candidates: Hiring from Within

Advantages
Foreknowledge of candidates strengths and weaknesses More accurate view of candidates skills Candidates have a stronger commitment to the company Increases employee morale Less training and orientation required
Disadvantages
Failed applicants become discontented Time wasted interviewing inside candidates who will not be considered Inbreeding strengthens tendency to maintain the status quo.
519
Finding Internal Candidates
Job Posting
Rehiring Former Employees
Hiring from Within
Succession Planning (HRIS)

520
Outside Sources of Candidates

Locating Outside Candidates
1 2 3 4 5 Recruiting via the Internet Advertising Employment Agencies Temp Agencies and Alternative Staffing Offshoring/Outsourcing 6 7 8 9 Executive Recruiters On Demand Recruiting Services (ODRS) College Recruiting Referrals and Walk-ins
521
Outside Sources of Candidates (continued)

Recruiting via the Internet
Advantages

CostCost-effective way to publicize job openings More applicants attracted over a longer period Immediate applicant responses Online prescreening of applicants Links to other job search sites Automation of applicant tracking and evaluation Exclusion of older and minority workers Excessive number of unqualified applicants Personal information privacy concerns of applicants
Disadvantages

522
FIGURE 56
An Indian Online Employment Portal
Source: http://www.timesjobs.com, accessed in September 2010. 523
FIGURE 57
Ineffective and Effective Web Ads
Source: Workforce, December 2001, Crain Communication, Inc. Reprinted with permission. 524
Advertising for Outside Candidates

The Media Choice
Selection of the best medium depends on the
positions for which the firm is recruiting.

Newspapers: Trade
local and specific labor markets
and professional journals: specialized employees job sites: global labor markets
Internet
Effective Ads
Create attention, interest, desire, and action (AIDA). Create a positive impression of the firm.
525
Employment Agencies
Types of Employment Agencies
Government Employment Exchanges
Nonprofit Agencies
Private Agencies
526

Why Use a Private Employment Agency
No HR department: firm lacks recruiting and
screening capabilities.
To attract a pool of qualified applicants. To fill a particular opening quickly. To attract more minority or female applicants. To reach currently employed individuals who are
more comfortable dealing with agencies.

To reduce internal time devoted to recruiting.
527

Avoiding Problems with Employment Agencies
Provide the agency with accurate and complete job
descriptions.
Make sure tests, application blanks, and interviews
are part of the agencys selection process.

Review candidates accepted or rejected by your firm
or the agency for effectiveness and fairness of agencys screening process.

Screen agency for effectiveness in filling positions. Supplement the agencys reference checking by
checking the final candidates references yourself.

528
Temp Agencies and Alternative Staffing

Benefits of Temps
Increased productivitypaid only when working productivity Allows trial run for prospective employees No recruitment, screening, and payroll
administration costs
Costs of Temps
Increased labor costs due to fees paid to temp
agencies
Temp employees lack of commitment to the firm
529
Concerns of Temp Employees

Dehumanizing, impersonal, and discouraging treatment by employers. Insecurity about employment and pessimism about the future. Worry about the lack of insurance and pension benefits. Being misled about job assignments and whether temporary assignments are likely to become full-time fullpositions. Being underemployed while trying return to the fullfulltime labor market. Anger toward the corporate world and its values; expressed as alienation and disenchantment.
530
FIGURE 59 Things Managers Should Avoid When Supervising Temp Employees 1. Do not train your contingent workers. Ask their staffing agency to handle training. 2. Do not negotiate the pay rate of your contingent workers. The agency should set pay. 3. Do not coach or counsel a contingent worker on his/her job performance. Instead, call the persons agency and request that it do so. 4. Do not negotiate a contingent workers vacations or personal time off. Direct the worker to his or her agency. 5. Do not routinely include contingent workers in your companys employee functions. 6. Do not allow contingent workers to utilize facilities intended for employees. 7. Do not let managers issue company business cards, nameplates, or employee badges to contingent workers without HR and legal approval. 8. Do not let managers discuss harassment or discrimination issues with contingent workers. 9. Do not discuss job opportunities and the contingent workers suitability for them directly. Instead, refer the worker to publicly available job postings. 10. Do not terminate a contingent worker directly. Contact the agency to do so.
Source: Adapted from Bohner and Selasco, Beware the Legal Risks of Hiring Temps, Workforce, October 2000, p. 53. 531
Working with a Temp Agency

Invoicing. Make sure the agencys invoice fits your companys needs. Time sheets. The time sheet is a verification of hours worked and an agreement to pay the agencys fees. Temp-toTemp-to-perm policy. What is the policy if you want to hire a temp as a permanent employee? Recruitment of and benefits for temp employees. How does the agency plan to recruit and what sorts of benefits it will it pay? Dress code. Specify the attire at each of your offices or plants. Equal employment opportunity statement. Get a statement from the agency that it does not discriminate when filling temp orders. Job description information. Ensure that the agency understands the job to be filled and the sort of person you want to fill it.
532

Executive Recruiters (Headhunters)
Contingent-based recruiters Contingent Retained executive searchers Internet technology and specialization trends
Guidelines for Choosing a Recruiter

1. Make sure the firm is capable of conducting a
thorough search.
2. Meet individual who will handle your assignment. 3. Ask how much the search firm charges. 4. Never rely solely on the recruiter to do reference
checking.
533

College Recruiting
On-campus recruiting On On-site visits On
goals

Invitation letters Assigned hosts Information packages Planned interviews Timely employment offer FollowFollow-up
To determine if the candidate is worthy of further consideration To attract good candidates
Internships
534

Employee Referrals
Referring employees become stakeholders. Referral is a cost-effective recruitment program. cost Referral can speed up diversifying the workforce. Relying on referrals may be discriminatory.
Walk-ins Walk Seek employment through a personal direct
approach to the employer.

Courteous treatment of any applicant is a good
business practice.
535
Improved Productivity Through HRIS: An Integrated Technology Approach to Recruiting
Requisition Management System
Integrated Recruiting Solution Integrated Employee Recruitment System Screening Services
Hiring Management
536
Recruiting A More Diverse Workforce

Single Parents
The Disabled
Older Workers
Welfare-to-Work
Minorities and Women
537
Developing and Using Application Forms

Uses of Application Information
Applicants education and experience
Applicants progress and growth
Applicants employment stability
Applicants likelihood of success
538
FIGURE 513 Employment Application
539
KEY TERMS
employment or personnel planning trend analysis ratio analysis scatter plot computerized forecast qualifications inventories personnel replacement charts position replacement card recruiting yield pyramid job posting succession planning alternative staffing on demand recruiting services (ODRS) application form
540

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Human Resource Management

GARY DESSLER BIJU VARKKEY

Human Resources Planning and Recruiting

After studying this chapter, you should be able to:

The Recruitment and Selection Process

Steps in Recruitment and Selection Process

Linking Employers Strategy to Plans

Planning and Forecasting

will have to fill, and how to fill them.

most important executive jobs.

Forecasting Personnel Needs

Drawbacks to Traditional Forecasting Techniques

Using Computers to Forecast Personnel Requirements

Forecasting the Supply of Inside Candidates

Manual Systems and Replacement Charts

Computerized Information Systems

The Matter of Privacy

Forecasting Outside Candidate Supply

Other Factors Affecting Recruiting

Effective Recruiting (continued)

Measuring Recruiting Effectiveness

Evaluating Recruiting Effectiveness

Recruiting Yield Pyramid

Internal Candidates: Hiring from Within

Finding Internal Candidates

Rehiring Former Employees

Hiring from Within

Succession Planning (HRIS)

Outside Sources of Candidates

Outside Sources of Candidates (continued)

An Indian Online Employment Portal

Source: http://www.timesjobs.com, accessed in September 2010. 523

Ineffective and Effective Web Ads

Advertising for Outside Candidates

positions for which the firm is recruiting.

local and specific labor markets

Types of Employment Agencies

Government Employment Exchanges

Outside Sources of Candidates (continued)

more comfortable dealing with agencies.

Outside Sources of Candidates (continued)

are part of the agencys selection process.

or the agency for effectiveness and fairness of agencys screening process.

checking the final candidates references yourself.

Temp Agencies and Alternative Staffing

Concerns of Temp Employees

Working with a Temp Agency

Outside Sources of Candidates (continued)

Guidelines for Choosing a Recruiter

Outside Sources of Candidates (continued)

To determine if the candidate is worthy of further consideration To attract good candidates

Outside Sources of Candidates (continued)

Walk-ins Walk Seek employment through a personal direct

approach to the employer.

Improved Productivity Through HRIS: An Integrated Technology Approach to Recruiting

Requisition Management System

Integrated Recruiting Solution Integrated Employee Recruitment System Screening Services

Recruiting A More Diverse Workforce

Minorities and Women

Developing and Using Application Forms

Applicants education and experience

Applicants progress and growth

Applicants employment stability

Walk-ins Walk Seek employment through a personal direct