© 2008 by Prentice Hall4-1 Shortage of Workers Forecasted Creative recruiting Compensation incentives – Premium pay is one method Training programs – Prepare previously unemployable people for positions Different selection standards

© 2008 by Prentice Hall4-2 Surplus of Employees Restricted hiring – Employees who leave are not replaced Reduced hours Early retirement Downsizing - Layoffs

© 2008 by Prentice Hall4-3 Downsizing Also known as restructuring and rightsizing, is reverse of company growing and suggests one-time change in organization and number of people employed Retention bonuses are used to entice terminated employees to remain for short periods of time to ensure continued services

© 2008 by Prentice Hall4-4 Negative Aspects of Downsizing Cost associated with low morale of those remaining Layers removed, making advancement in organization more difficult Workers may seek better opportunities, fearing they may be in line for lay offs

© 2008 by Prentice Hall4-5 Negative Aspects of Downsizing (Cont.) Employee loyalty significantly reduced Institutional memory lost Remaining workers required to do more When demand for products/services returns, firm may realize it has cut too deep

© 2008 by Prentice Hall4-6 Outplacement Laid-off employees given assistance in finding employment elsewhere Companies use outplacement to take care of employees by moving them successfully out of company rather than having to do it on their own

© 2008 by Prentice Hall4-7 Succession Planning Process of ensuring that qualified persons are available to assume key managerial positions once the positions are vacant Goal is to help ensure a smooth transition and operational efficiency

© 2008 by Prentice Hall4-8 Human Resource Information Systems (HRIS) Any organized approach for obtaining relevant and timely information on which to base HR decisions

© 2008 by Prentice Hall4-9 HUMAN RESOURCE INFORMATION SYSTEM Goal: Integrate Core Processes into Seamless System Input Data Types Job Analysis Recruitment Selection/Job Posting/ Employee Referral T&D Performance Appraisal Compensation Benefits Safety Health Labor Relations Employee Relations Output Data Uses* Employee Tracking Diversity Programs Hiring Decisions Training Programs/E- learning/Management Succession Compensation Programs Benefit Programs (e.g., prescription drug programs) Health Programs (e.g., Employee Assistance Programs) Bargaining Strategies Employee Services Organizational Strategic Plans Human Resource Management Plans Contribute Toward Achievement of: Human Resource Information System *Manager and employee self-service is available.

© 2008 by Prentice Hall4-10 Trends & Innovations: Manager Self-Service Use of software and corporate network to automate paper-based processes requiring manager’s approval, record- keeping or input, and processes that support manager’s job MSS can help managers develop and grow staff and assist employees in determining their career paths and developing required competencies

© 2008 by Prentice Hall4-11 Employee self-service (ESS) Processes that automate transactions formerly labor-intensive for employees and HR professionals ESS applications can free up valuable HR staff time, reducing administrative time and costs

© 2008 by Prentice Hall4-12 Job Design Process of determining specific tasks to be performed, methods used in performing these tasks, and how job relates to other work in organization Job enrichment - Basic changes in content and level of responsibility of job, to provide greater challenge to worker

© 2008 by Prentice Hall4-13 Job Design (Cont.) Job enlargement - Changes in scope of job to provide greater variety to worker Reengineering - Fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical measures of performance, such as cost, quality, service and speed

© 2008 by Prentice Hall4-14 A Global Perspective: A Database of Repatriate Skills Vast majority of U.S. companies have failed to realize importance of creating databases of repatriate skills Colgate-Palmolive’s database is primarily for succession planning. It also contains data on each manager’s experience with or awareness of particular cultures

© 2008 by Prentice Hall4-15