Dessler, Cole, Goodman and Sutherland Fundamentals of Human Resources Management in Canada Chapter Four Human Resources Planning and Recruitment © 2004 Pearson Education Canada Inc., Toronto, Ontario 4-1

© 2004 Pearson Education Canada Inc., Toronto, Ontario 4-2 The Nature of Human Resources Planning HR Planning –review human resources requirements to ensure: the necessary number of employees the necessary employee skills to meet organizational goals HR Planning –review human resources requirements to ensure: the necessary number of employees the necessary employee skills to meet organizational goals

© 2004 Pearson Education Canada Inc., Toronto, Ontario 4-3 The Nature of Human Resources Planning Forecast demand Forecast demand Analyze supply Analyze supply Plan and implement programs to balance supply and demand Plan and implement programs to balance supply and demand

© 2004 Pearson Education Canada Inc., Toronto, Ontario 4-4 The Nature of Human Resources Planning - plan staffing and development activities –achieve economies in hiring –anticipate and avoid staff shortages/surpluses –establish employment equity goals/timetables - plan staffing and development activities –achieve economies in hiring –anticipate and avoid staff shortages/surpluses –establish employment equity goals/timetables Importance of HR Planning

© 2004 Pearson Education Canada Inc., Toronto, Ontario 4-5 The Nature of Human Resources Planning HR Planning Strategic Planning –reciprocal and interdependent relationship –environmental scanning critical for both –reciprocal and interdependent relationship –environmental scanning critical for both

© 2004 Pearson Education Canada Inc., Toronto, Ontario 4-6 Elements of Effective HR Planning 3. Forecast Future Internal/External Candidates (Supply) 2. Forecast Future HR Needs (Demand) 1. Analyze HR Implications of Strategic Plans 4. Implement Plans to Balance Supply and Demand 5. Monitor and Evaluate Results

© 2004 Pearson Education Canada Inc., Toronto, Ontario 4-7 Forecasting Future HR Needs (Demand) Forecasting based on: –quality and nature of employees –decisions regarding product quality –plans for technological change –financial resources Forecasting based on: –quality and nature of employees –decisions regarding product quality –plans for technological change –financial resources

© 2004 Pearson Education Canada Inc., Toronto, Ontario 4-8 Forecasting Future HR Needs (Demand) Trend analysis: review past employment levels Ratio analysis: ratio of business activity/employees Scatter plot: graph of business activity/employees Computerized forecasting techniques: software Trend analysis: review past employment levels Ratio analysis: ratio of business activity/employees Scatter plot: graph of business activity/employees Computerized forecasting techniques: software Quantitative Approaches

© 2004 Pearson Education Canada Inc., Toronto, Ontario 4-9 Forecasting Future HR Needs (Demand) 1. Nominal Group Technique –experts meet face-to-face –group discussion facilitates exchange of ideas –possible subjectivity, group pressure 2. Delphi Technique –experts work independently –wide range of views –difficult to integrate diverse opinions 1. Nominal Group Technique –experts meet face-to-face –group discussion facilitates exchange of ideas –possible subjectivity, group pressure 2. Delphi Technique –experts work independently –wide range of views –difficult to integrate diverse opinions Qualitative Approaches

© 2004 Pearson Education Canada Inc., Toronto, Ontario 4-10 Forecasting Future HR Supply –manual or computerized records –used to identify internal candidates for transfer or promotion –summary of each employee’s: education experience interests skills –manual or computerized records –used to identify internal candidates for transfer or promotion –summary of each employee’s: education experience interests skills Skills Inventories

© 2004 Pearson Education Canada Inc., Toronto, Ontario 4-11 Forecasting Future HR Supply –visual representations of likely internal replacement employees for each position –data on each candidate includes: age present performance rating promotability status –visual representations of likely internal replacement employees for each position –data on each candidate includes: age present performance rating promotability status Replacement Charts

© 2004 Pearson Education Canada Inc., Toronto, Ontario 4-12 Forecasting Future HR Supply –lists of likely internal replacement employees for each position –data on each candidate includes: relative strengths and weaknesses current position performance promotability age experience –lists of likely internal replacement employees for each position –data on each candidate includes: relative strengths and weaknesses current position performance promotability age experience Replacement Summaries

© 2004 Pearson Education Canada Inc., Toronto, Ontario 4-13 Forecasting Future HR Supply –general economic conditions –national labour market conditions –local labour market conditions –occupational market conditions –general economic conditions –national labour market conditions –local labour market conditions –occupational market conditions Forecasting Supply of External Candidates

© 2004 Pearson Education Canada Inc., Toronto, Ontario 4-14 Balancing Supply and Demand Dealing with a Labour Surplus –hiring freeze –attrition –buy-out and early retirement programs –reducing hours (job sharing, reduced workweek, part-time work, work sharing) –layoffs –termination with outplacement assistance –hiring freeze –attrition –buy-out and early retirement programs –reducing hours (job sharing, reduced workweek, part-time work, work sharing) –layoffs –termination with outplacement assistance

© 2004 Pearson Education Canada Inc., Toronto, Ontario 4-15 Balancing Supply and Demand Dealing with a Labour Shortage –overtime –hiring temporary employees –subcontracting work –external recruitment –transfers –promotions –overtime –hiring temporary employees –subcontracting work –external recruitment –transfers –promotions

© 2004 Pearson Education Canada Inc., Toronto, Ontario 4-16 Recruitment –process of managing a labour shortage by searching for job candidates: adequate number qualified from whom to select staff needed to meet job requirements –process of managing a labour shortage by searching for job candidates: adequate number qualified from whom to select staff needed to meet job requirements

© 2004 Pearson Education Canada Inc., Toronto, Ontario 4-17 Recruitment –generate adequate pool of candidates at minimum cost –increase success rate of selection process –achieve employment equity goals –attract qualified candidates suited to organizational culture –generate adequate pool of candidates at minimum cost –increase success rate of selection process –achieve employment equity goals –attract qualified candidates suited to organizational culture Purposes of Recruitment

© 2004 Pearson Education Canada Inc., Toronto, Ontario 4-18 The Recruitment Process HR planning Managers’ requests Job openings are identified Review of job description and job specification Job require- ments are specified Source(s) and method(s) of recruit- ment are selected Pool of qualified recruits is generated Constraints on recruitment Managers’ comments

© 2004 Pearson Education Canada Inc., Toronto, Ontario 4-19 Constraints on the Recruitment Process –organizational policies –organizational plans –inducements of competitors –job requirements –environmental conditions –organizational policies –organizational plans –inducements of competitors –job requirements –environmental conditions

© 2004 Pearson Education Canada Inc., Toronto, Ontario 4-20 Recruiting Within the Organization –enhanced morale if competence is rewarded –more commitment to company goals –more accurate assessment of candidate’s skills –less orientation required –enhanced morale if competence is rewarded –more commitment to company goals –more accurate assessment of candidate’s skills –less orientation required Advantages

© 2004 Pearson Education Canada Inc., Toronto, Ontario 4-21 Recruiting Within the Organization –discontent of unsuccessful candidates –time consuming to post and interview all candidates if one is already preferred –employee dissatisfaction with insider as new boss –possibility of ‘inbreeding’ –discontent of unsuccessful candidates –time consuming to post and interview all candidates if one is already preferred –employee dissatisfaction with insider as new boss –possibility of ‘inbreeding’ Disadvantages

© 2004 Pearson Education Canada Inc., Toronto, Ontario 4-22 Recruiting Within the Organization Job Posting Job Posting Skills Inventories Skills Inventories Requirements Human Resources Records Human Resources Records

© 2004 Pearson Education Canada Inc., Toronto, Ontario 4-23 Recruiting Outside the Organization –larger, more diverse pool of qualified candidates –acquisition of new skills and knowledge for creative problem solving –elimination of rivalry for transfers/promotions –cost savings from hiring skilled individuals with no need for training –larger, more diverse pool of qualified candidates –acquisition of new skills and knowledge for creative problem solving –elimination of rivalry for transfers/promotions –cost savings from hiring skilled individuals with no need for training Advantages

© 2004 Pearson Education Canada Inc., Toronto, Ontario 4-24 Recruiting Outside the Organization –type of job –yield ratios - amount of lead time –type of job –yield ratios - amount of lead time Planning External Recruitment

© 2004 Pearson Education Canada Inc., Toronto, Ontario 4-25 Recruiting Outside the Organization –walk-ins and write-ins –employee referrals –educational institutions –Human Resource Centres (HRDC) –private employment agencies –executive search firms –walk-ins and write-ins –employee referrals –educational institutions –Human Resource Centres (HRDC) –private employment agencies –executive search firms Methods (1 of 2)

© 2004 Pearson Education Canada Inc., Toronto, Ontario 4-26 Recruiting Outside the Organization –advertising –professional and trade associations –labour organizations –military personnel –online recruiting –open house –information sessions/job fairs –advertising –professional and trade associations –labour organizations –military personnel –online recruiting –open house –information sessions/job fairs Methods (2 of 2)

© 2004 Pearson Education Canada Inc., Toronto, Ontario 4-27 Recruiting Outside the Organization Advantages: –low cost –skilled employees may know others in their field –recruits have realistic impression of the firm –candidates generally of high quality Advantages: –low cost –skilled employees may know others in their field –recruits have realistic impression of the firm –candidates generally of high quality Employee Referrals

© 2004 Pearson Education Canada Inc., Toronto, Ontario 4-28 Recruiting Outside the Organization Disadvantages: –nepotism and inbreeding –employee dissatisfaction when referral not hired –systemic discrimination in non-diverse workplace Disadvantages: –nepotism and inbreeding –employee dissatisfaction when referral not hired –systemic discrimination in non-diverse workplace Employee Referrals

© 2004 Pearson Education Canada Inc., Toronto, Ontario 4-29 Recruiting Outside the Organization –no HR department –past difficulty in generating pool of qualified candidates –position must be filled quickly –desire to recruit designated group members –no HR department –past difficulty in generating pool of qualified candidates –position must be filled quickly –desire to recruit designated group members Use of Private Employment Agency

© 2004 Pearson Education Canada Inc., Toronto, Ontario 4-30 Recruiting Outside the Organization –often specialize in particular type of talent –adept at approaching employed candidates not currently looking for a job –confidentiality –often specialize in particular type of talent –adept at approaching employed candidates not currently looking for a job –confidentiality Executive Search Firms

© 2004 Pearson Education Canada Inc., Toronto, Ontario 4-31 Recruiting Outside the Organization –media to be used depends on: type of position type of candidate –construction of the ad: AIDA (attention; interest; desire; action) want ads vs. blind ads –media to be used depends on: type of position type of candidate –construction of the ad: AIDA (attention; interest; desire; action) want ads vs. blind ads Advertising

© 2004 Pearson Education Canada Inc., Toronto, Ontario 4-32 Recruiting Outside the Organization Three approaches: 1. Internet job boards 2. Company Website and intranet 3. Application Service Provider software rental Three approaches: 1. Internet job boards 2. Company Website and intranet 3. Application Service Provider software rental Online Recruiting

© 2004 Pearson Education Canada Inc., Toronto, Ontario 4-33 Recruiting Outside the Organization Temporary Help Agencies Temporary Help Agencies Employee Leasing Employee Leasing Recruiting Non-Permanent Staff Contract Workers Contract Workers Outsourcing/ Sub- contracting Outsourcing/ Sub- contracting

© 2004 Pearson Education Canada Inc., Toronto, Ontario 4-34 Recruiting a More Diverse Workforce –older workers –younger workers –designated group members: women visible minorities disabled Aboriginal –older workers –younger workers –designated group members: women visible minorities disabled Aboriginal