1. Chapter 05 Human Resource Planning and Recruitment
Human Resource Management: Gaining a Competitive Advantage
Chapter 05
Human Resource Planning and Recruitment
McGraw-Hill/Irwin
Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.

2. Learning Objectives
Discuss how to align company’s strategic direction with its HR planning.
Determine labor demand for workers in various job categories.
Discuss advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage.
Describe various recruitment policies to make job vacancies more attractive.
List various sources from which job applicants can be drawn, their advantages and disadvantages and evaluation methods.
Explain the recruiter’s role, limits and opportunities.
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3. 3. Program Implementation &
3 Stages in HR
Planning Process
1. Forecasting
2. Goal Setting
&
Strategic Planning
3. Program Implementation &
Evaluation
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4. Forecasting Stage of HR Planning
Determine Labor Demand
derived from product/service demanded
external in nature
Determine Labor Supply
Internal movements caused by transfers, promotions, turnover, retirements, etc.
transitional matrices identify employee movements in different job categories over time to chart historical trends in company’s labor supply
useful for AA / EEO purposes
Determine Labor Surplus or Shortage
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5. Options for Reducing Expected Labor Surplus
Option Speed 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
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6. Options for Avoiding Expected Labor Surplus
Option Speed Revocability
1. Overtime
Temporary employees
3. Outsourcing
4. Retrained transfers
5. Turnover reductions
6. New external hires
7. Technological
innovation
Fast
Slow
High
Moderate
Low
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7. Downsizing
Downsizing -planned elimination of large numbers of personnel to enhance organizational competitiveness.
4 Reasons for Downsizing:
reduce labor costs
technological changes reduce need for labor*
mergers and acquisitions reduce bureaucratic overhead
organizations change location of where they do business
* Economy wide, capital spending ratio increased over 300% between , indicating employers substituting technology for labor.
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8. Possible Negative Effects of Downsizing
Long-term effects of an improperly managed downsizing effort can be negative.
Lower long-term profit, performance and productivity
Loss of talent
Disrupts social networks needed for creativity and innovation
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9. Early Retirement Programs
The average age of U.S. workforce is increasing.
Baby boomers are not retiring early due to:
improved health
fear that Social Security will be cut
mandatory retirement is outlawed
collapse of the financial and housing markets made it economically unviable to retire
Many employers try voluntary attrition among older workers through early retirement incentive programs.
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10. Employing Temporary Workers
Hiring temporary workers helps eliminate a labor shortage and affords flexibility needed to operate efficiently during demand swings.
3 Advantages:
Temporary workers free a company from administrative tasks and financial burdens.
Temporary workers are often times tested by a temporary agency.
Many temporary agencies train employees before sending them to employers.
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11. Outsourcing and Offshoring
Outsourcing uses an outside organization for a broad set of services.
Offshoring is outsourcing where jobs leave one country and go to another.
To help ensure the success of outsourcing:
Choose an established, large outsourcing vendor.
Jobs that are proprietary or require tight security should not be outsourced.
Start small and monitor constantly.
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12. Affirmative Action Planning
Plan for various subgroups within a labor force.
Workforce utilization review is a comparison of the proportion of workers in protected subgroups with the proportion that each subgroup represents.
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13. HR Recruitment Process
Job Choice
Job
Choice
Vacancy
Characteristics
Applicant
Characteristics
Personnel Policies
Recruiter Traits
& Behaviors
Recruitment
Sources
Recruitment Influences
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14. Personnel Policies
Organizational decisions that affect the nature of the vacancies for which people are recruited.
Characteristics of the vacancy are more important than recruiters or recruiting sources.
Personnel Policies vary:
Internal versus external recruiting
Extrinsic versus intrinsic rewards
Employment-at-will policies
Image advertising
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15. Recruitment Sources JOBS Colleges & Universities Internal Sources
campus placement services
Internal Sources
faster, cheaper,
more certainty
Public & Private
Employment Agencies -
headhunters can be
expensive
External Sources
new ideas & approaches
JOBS
JOBS
Electronic Recruiting
Internet
Direct Applicants
& Referrals
self selection, low cost
Newspaper Advertising -
large volume, low quality
recruits
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16. Recruiters Functional Area Traits Realism
HR versus operating area specialist
Traits
warm and informative
Realism
realistic job preview
honesty
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17. 2 Steps to Enhance Recruiter Impact
1. Provide timely feedback
2. Recruit in teams
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18. Summary
HR planning uses labor supply and demand forecasts to anticipate labor shortages and surpluses to enhance organization’s success and reduce human suffering.
HR recruiting creates an applicant pool should a labor shortage occur.
Organizations can use recruiters to influence individuals’ perceptions of jobs.
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