HUMAN RESOURCESPLANNING ANDRECRUITMENT

| RACHELLE E . RONA

C H A P T E R 5

LEARNING

|PLANNING PROCESS

❶Learn the Steps in Developing & Implementing a Human Resource Plan

|RECRUITMENT PROCESS❷Understand the Process by which individuals find and choose jobs and the Role of Personnel Recruitment in Reaching these individuals and Shaping their choices

Objectives

PLANNING Proc

ess

Human ResourceForecast of Labor surplus or shortage

Goal Setting and Strategic Planning

Program Implementation and Evaluation

1

2

3

|Part I

HR Manager ascertain the supply of and demand for various type of Human Resources

STEP

1#

Forecast of Labor surplus or shortage

Goal Setting and Strategic Planning

Program Implementation and Evaluation

1

2

3

FORECASTING(Merriam-Webster)

Forecast-to calculate or predict (some future event or condition ) usually as a result of study and analysis of pertinent data

GoalTo predict areas within the

organization where there will be future labor shortages or surpluses

FORECASTING

FORECASTING

❶Statistical❷Judgmental❸Balanced Approached

Methods

AscertainingLa

bor Surplus

or Shortag

es

Determining Labor Demand

Determining Labor Supply

VS.

FORECASTINGProcess

Strategic Planning

Goal Setting

&

STEP

2#Forecast of Labor surplus or shortage

Goal Setting and Strategic Planning

Program Implementation and Evaluation

3

2

1

|Specific quantitative|Should come directly from the analysis of labor supply and labor demand

|Should include:❶Specific figure for what should happen with the job category or skill area❷Specific timetable for when results should be achieved.

GOAL

① GOAL

SETTING

Goal SettingPurposeFocus attention on

the problem

②STRATEGIC PLANNING|Choosing from the many different strategies

available for redressing labor shortages and surpluses.

|Critical stage because the many choices available differ widely in their:

❶Expense❷Speed❸Effectiveness❹Amount of Human Suffering❺Revocability ( How easily the change can be

undone)

Options for Reducing an Expected Labor Suplus

OPTION SPEED HUMAN SUFFERING

① Downsizing Fast High②Pay reduction Fast High③ Demotions Fast High④ Transfers Fast Moderate⑤ Work Sharing Fast Moderate⑥ Hiring Freeze Slow Low⑦ Natural Attrition Slow Low⑧ Early retirement Slow Low⑨ Retraining Slow Low

Options for Avoiding an Expected Labor Shortage

OPTION SPEED REVOCABILITY❶ Overtime Fast High❷ Temporary employees Fast High❸ Outsourcing Fast High❹ Retrained transfers Slow High❺ Turnover reductions Slow Moderate❻ New external hires Slow Low❼ Technological innovation

Slow Low

Provide a benchmark for determining the relative success of any programs aimed at addressing a pending labor shortage or surplus.

STRATEGIC CHOICE STAGEPurp

ose

Organizational Response to Labor Surplus

❷Early Retirement Program and buy-outs

❶Downsizing

❸Employing Temporary Workers

❹Outsourcing, Off shoring, and Immigration

❺Altering Pay and Hours

-Planned elimination of large numbersof personnel.

❶Downsizing

General Purpose:| To enhance organizational effectiveness.

Specific Purpose:

❶To reduce cost❷Reduced need for labor ❸Changing Location

Short-term suffering to Employees

Pay Financial Bankruptcies

Benefits Physical Sickness

Meaningful Work

Psychological Depression

Long-term suffering to Employees

Can stigmatized the individual

Many laid-off workers will take any work within their area.

❶When not complemented with changes in nature of work roles performance tends to suffer.❷Devastating impact on productivity.

Negative Effects on the Long-term Organizational Effectiveness

Key to Avoiding

❶Ensure the need for lay- off is well-explained.❷Procedures for implementing the lay-off is fair.

Reputation Damage

❷Early Retirement Program and buy-outs

|.

Old Employees Problems posed:

|Higher Seniority + Higher Medical Costs + Higher Pensions Contributions

|Sometimes prevent the hiring or block the advancement of younger workers

Buy-outs|Specific workers that have nothing to do with age.

❸Employing Temporary Workers

Afforded firms the flexibility needed to operate efficiently in the face of swings in the demand for goods and services.

ADVANTAGES DISADVANTAGES❶Frees the firm from many administrative tasks and financial burdens associated with being the “employer of record”.

❶Low levels of commitment to the organization and its customers on the part of temporary employees

❷Those who can’t afford own testing programs get employees who have been tested by temporary agencies.

❷There is often tension between a firm’s temporary employees and its full-time employees.

❸Reduces training costs.

❹Brings objective perspective to the organization’s problems.

Employing TemporaryWorkers

How to deal with these problems: Key to Managing

❷ “Non-Threatening” Temporaries

❶ Organization needs to have bottomed out in terms of any downsizing effort before it starts bringing in temporaries.

❸Ensure temporary agency provides benefits to the temporaries that are at least minimally comparable to those employed by the fulltime workers.

Outsourcing Off shoring Immigration

Logical choice when a firm simply does not have certain expertise and is not willing to invest time and effort into developing it.

special case of outsourcing where the jobs that move actually leave one country and go to another.

if one cannot take the work overseas, but still wishes to tap into less expensive global talent to fill a labor shortage, then one might simply bring foreign workers into the country.

❹Outsourcing, Off shoring, and Immigration

√Altering Pay √Altering Hourssometimes avoid lay-offs if they can get their employees to take pay cuts or reduce the number of hours of all the workers.

Garnering more hours out of the existing labor force.-see this as preferable to hiring and training new employees.

❺ Altering Pay and Hours

Problem with this:Employees experience stress and frustrations from being overworked in this manner

STEP

3#Forecast of Labor surplus or shortage

Goal Setting and Strategic Planning

Program Implementation and Evaluation

1

2

3Program Implementation and Evaluation

putting plans into practice.

Program Implementation

important to have regular progress reports to be sure that all programs are in place by specified times.

HR PLANNING PROCESSPART I

FORCASTINGLabor Demand vs.

Labor Supply

Labor Shortage or Labor Surplus

GOAL SETTING & STRATEGIC PLANNING

Labor Surplus Responses

DownsizingEarl Retirement Progs /BuyoutsEmploying TemporariesOutsourcing/Offshoring/Immigration Altering pay and hours

PROGRAM IMPLEMENTATION &

EVALUATION

1

2

3

Personnel requirementForecast

Personnel supplyForecast

Comparison

Differences

Yes No

PersonnelSurplus(100-125)

PersonnelShortage(100-75)

Lay-offTermination

Over-timeRecruitment/hiringSubcontracting

SUMMARY

|Any practice or activity carried on by the organization with the primary purpose of: Identifying and attracting potential Employees

|Creates buffer between planning and selection

|Part II

RecruitmentProc

ess

Human Resource

Recruitment

Depths:❶Not simply to generate large numbers of applicants

❷Its not only to finely discriminateamong reasonably qualified applicants

|It is a complex process|Have to make decisions in three areas of recruiting

❶Personnel Policies❷Recruitment Sources❸Characteristics and Behaviors of the Recruiters

Recruiting3 Areas

❶Internal Vs. External Recruiting❷Extrinsic Vs. Intrinsic Rewards ❸Image Advertising

①Personnel Policies|Organizational Decisions that affect the nature of the vacancies for which people are recruited

❶Internal Vs. External❷Direct Vs. Referrals❸Advertisements: Newspapers and Periodicals❹Electronic Recruiting❺Public and Private Employment Agencies❻Colleges and Universities

Critical Aspects of HR General Recruitment Strategy

②RecruitmentSources

❶Internal Vs. External

Advantages: (Internal)①Generates a sample of applicants who are well-known to the firm.②These applicants are relatively knowledgeable about the company vacancies which minimizes the possibility of inflated expectations about the job.③Generally cheaper and faster to fill vacancies internally

Reason for Using: (External)①For entry level position②For some specialized upper level positions

❷Direct Vs. Referrals

DIRECT Vs. REFERRAL

people who apply for a vacancy without prompting from the organization

People who are prompted to apply by someone within the organization.

❸Advertisements: Newspapers and Periodicals

2 most important questions to be asked:① What do we need to say?②To whom do we need to say it?

❹Electronic Recruiting

Ways to use the web:①E-cruiting②Interact with the large well-known job site③Social Networking

❺Public and Private Employment AgenciesPublic Employment Agencies

Private Employment Agencies

|makes referrals to the organizations at no charge, and these individuals can be interviewed or tested by the employer for potential vacancies.

|charge the organization for referrals.

|serve primarily the blue-collar labor market

|serve for the white-collar labor market.

❻Colleges and Universities

Have placement services that seek to help their graduates obtain employment.

Programs:①College internship.②University Job fairs

Evaluating The quality of source

Means of Evaluation:- Develop and compare yield ratios for each source to determine which is best or most efficient for the type of vacancy being investigated

Yield Ratio-Express the percentage of applicants who successfully move from one stage of the recruitment and selection process to the next.

❷Traits2 traits that stand out when applicants’ reaction to recruiters are examined:①Warmth -Reflects the degree to which the recruiter seems to care about the applicant and is enthusiastic about her potential to contribute to the company.②Informativeness

③Recruiters❶Functional Area: HR Specialist vs. Experts at particular jobs -applicants find a job less attractive and the recruiters less credible when he is personnel specialist. -specialist need to take extra steps to ensure

❹Enhancing ImpactSteps to increase the impact of recruiters on recruits①Provide timely Feedback -delays make unwarranted feedback②Recruiting can be done in teams rather than by individuals.√Line personnel -Job incumbent or supervisor -viewed as more credible than personnel specialists -perceived recruiting as a small part of their “real” job.√Personnel Specialist-Have knowledge that is not shared by line personnel

❸Realism-there must be a realistic job previewsThere are pressure to exaggerate the positive features of the vacancy while down playing the negative features.

③Recruiters

Reference:

Q&A