1

Part Two: Acquisition and Preparation of Human Resources 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.

Human Resource Planning and Recruitment Chapter 5 Human Resource Planning and Recruitment Discuss how to align a company’s 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.

Human Resource Planning and Recruitment 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 recruiter’s 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 Labor Demand derived from product/service demanded 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 McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

Strategies for Reducing an Expected Labor Surplus Option Speed Extent of Human Suffering 1. Downsizing 2. Pay reductions 3. Demotions 4. Transfers 5. Work sharing 6. Hiring freeze 7. Natural attrition 8. Early retirement 9. Retraining Fast Slow High Moderate Low McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

Strategies for Reducing an Expected Labor Surplus Option Speed Extent of Human Suffering 1. Overtime 2. Temporary employees 3. Outsourcing 4. Retrained transfers 5. Turnover reductions 6. New external hires 7. Technological innovation Fast Slow High Moderate Low 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. McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

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 Outsourcing is an organization’s 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: 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 Job Choice Vacancy Characteristics 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 advertising McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

Recruitment Sources Colleges and Universities - Internal Sources - campus placement services Internal Sources - Faster, cheaper, more certainty Public & Private Employment Agencies - headhunters, can be expensive External Sources - New ideas and approaches JOBS JOBS Electronic Recruiting - the Internet Direct Applicants and Referrals - self selection, low cost Newspaper Advertising - large volume, low quality recruits McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

Recruiters Functional Area Traits Realism HR- versus operating area-specialist Traits warm and informative Realism realistic job preview, honesty McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

Steps to Enhance Recruiter Impact 1. Provide timely feedback 2. Avoid rude behavior 3. Recruit in teams 1. Provide timely feedback 2. Avoid rude behavior 3. Recruit in teams McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.