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.

Stages in Human Resource Planning 5-2 Irwin/McGraw-Hill 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 5-3 Irwin/McGraw-Hill 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 5-4 Irwin/McGraw-Hill StrategySpeed Extent of Human Suffering 1. Downsizing 2. Pay reductions 3. Demotions Fast High

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Strategies for Reducing an Expected Labor Surplus 5-5 Irwin/McGraw-Hill StrategySpeed Extent of Human Suffering 1. Downsizing 2. Pay reductions 3. Demotions 4. Transfers 5. Worksharing Fast High Moderate

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Strategies for Reducing an Expected Labor Surplus 5-6 Irwin/McGraw-Hill StrategySpeed Extent of Human Suffering 1. Downsizing 2. Pay reductions 3. Demotions 4. Transfers 5. Worksharing 6. Retirement 7. Natural attrition 8. Retraining Fast Slow High Moderate Low

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Strategies for Avoiding an Expected Labor Shortage 5-7 Irwin/McGraw-Hill StrategySpeed 1. Overtime 2. Temporary employees 3. Outsourcing 4. Retrained transfers 5. Turnover reductions 6. New external hires 7. Technological innovations Fast Slow High Moderate Low Reversibility

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Reasons for Downsizing 5-8 Irwin/McGraw-Hill 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 5-9 Irwin/McGraw-Hill 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 of Employing Temporary Workers 5-10 Irwin/McGraw-Hill 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 of Employing Temporary Workers 5-11 Irwin/McGraw-Hill 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 Activities 5-12 Irwin/McGraw-Hill 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 5-13 Irwin/McGraw-Hill 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 5-14 Irwin/McGraw-Hill JOB CHOICE Vacancy Characteristics Vacancy Characteristics Personnel Policies Recruitment Sources Recruiter Characteristics Applicant Characteristics Applicant Characteristics

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Personnel Policies 5-15 Irwin/McGraw-Hill 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 5-16 Irwin/McGraw-Hill 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 Characteristics 5-17 Irwin/McGraw-Hill 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 5-18 Irwin/McGraw-Hill Provide timely feedback Avoid rude behavior Recruit in teams Provide timely feedback Avoid rude behavior Recruit in teams