Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Chapter Human Resource Planning and Recruitment 5

5-2 Human Resource Planning (HRP)  Six steps of effective HRP  environmental scanning—identify and anticipate sources of threats and opportunities, scanning the external environment (competitors, regulation) and internal environment ( strategy, technology, culture)  labor analysis—project how business needs will affect HR needs, using qualitative methods (e.g., Delphi, nominal) and quantitative methods (trend analysis, simple and multiple linear regression analysis)  supply analysis—project resource availability from internal and external sources  gap analysis—reconcile the forecast of labor supply and demand  action programming—implement the recommended solution from the gap analysis  evaluation—monitor the effects of the HRP by defining and measuring critical criteria (e.g., turnover costs, break-even costs of new hires)

5-3 Environmental Scanning  Should always keep the “big picture” in mind.  frame of reference for scanning should be on strategic goals with customer- driven focus  Need to determine characteristics of relevant labor market.  relevant labor market defined by occupation, geography, employer competition  is labor market is loose or tight?  Global labor market an important influence.  future offshoring will be for services requiring higher skills  cost savings not always worth increased complexity, quality control problems, and loss of institutional knowledge  Affirmative Action/diversity programs may be illegal if not specifically directed at recruitment efforts.

5-4 Workforce Diversity

5-5 Labor Demand Forecast  Qualitative methods for projecting labor demands  centralized approach—the HR department examines the current business situation and determines staffing requirements for the rest of the firm  decentralized approach—each unit or functional manager subjectively derives his/her own staffing needs, and the projections are aggregated to create an overall composite forecast for the company  Delphi technique—formalized problem-solving method which avoids face- to-face group discussion by use of an intermediary and utilizes several rounds of estimates by experts to ultimately conclude a forecast  nominal group technique—formalized problem-solving method similar to the Delphi method but instead the experts meet in a face-to-face group discussion and rank ideas by member vote

5-6 Labor Demand Forecast  Quantitative methods for projecting labor demands  trend analysis—projects changes in the business factor and/or the productivity ratio in order to forecast changes in the labor demand  regression analysis—uses information from the past relationship between the organization’s employment level and some criterion known to be related to employment

5-7 Labor Supply Forecast  Categories of labor supply forecasts.  internal supply—individuals and jobs currently available within the firm  personnel/skills inventories  Markov analysis (Figure 5-7)  external supply—individuals in the labor force who are potential recruits of the firm (including those working for another firm)  Immigration Reform and Control Act (IRCA) of 1986  immigration options for U.S. Employers – H-1B, I-129, and L-1 classifications.  computer modeling

5-8 Gap Analysis  ID potential shortages or surpluses of employees, skills and jobs.  Can use information to simulate business situations and prepare for future events.  strategies for effective downsizing  alternative solutions to downsizing  use of temporary employees  job sharing  telecommuting  dealing with diversity issues

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5-10 Employment Restructuring and Downsizing

5-11 Action Programming and Evaluation  Action Programming - includes internal and external steps.  internal programming- changes such as job design and assignments  external programming-interacting with constituents such as labor unions and competitors  Evaluation – monitoring the effectiveness of HR plans over time.  long-rang planning requires meeting short-range goals.

5-12 Essential Steps for Recruitment Planning  Job Analysis – job descriptions and job specifications particularly helpful to recruiters and HR planners.  Time Lapse Data – average time that elapses between points of decision making.  Yield Ratios – yield ratios reflect the number of candidates available at one step and then at the next step. Used as basis for future recruiting Can focus on specific recruiting methods DISCREPANCY- ACADEMICS RECOMMEND

5-13 Internal Recruiting  Internal recruiting—recruiting source seeking applicants for positions from among the ranks of those currently employed.  advantages  better assessment of candidates  reduces training time  faster  cheaper  motivates employees  High Performance Work System characteristic  disadvantages  creates vacancies  stifles diversity  insufficient supply of candidates

5-14 External Recruiting  External recruiting—recruiting source seeking applicants for positions from outside the organization.  advantages  increases diversity  facilitates growth  shortens training time  A theory that you get new/novel problem solving (not proven)  disadvantages  expensive  slower  less reliable data  stifles upward movement of personnel

5-15 External Recruitment Sources  Methods available for external recruiting.  walk-ins/unsolicited applicant files  referrals  advertising  employment agencies  search firms  campus visits  electronic recruiting on the World Wide Web

5-16 Recruitment Media Reprinted with permission of Personnel Journal, Costa Mesa, CA..

5-17 Effective Recruiting  Measures used for evaluating recruiting program effectiveness.  time taken to fill position  retention rates  turnover rates  cost per hire  number of applicants generated  job performance of new hires after specified period of time  EEO/diversity impact  total cost of recruiting

5-18 Effective Recruiting: Frequency of Measures Used Time to fill Retention rates Turnover rates Cost per hire Number of applicants generated Job performance of new hires EEO/diversity impact Total cost of recruiting

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5-21 EEO and Recruitment Practices  EEO issues in recruitment.  referrals  EEOC v. Detroit Edison—“the practice of relying on referrals by a predominantly white workforce rather than seeking new employees in the marketplace for jobs” was found to be discriminatory by the court  advertising  a person knowledgeable about EEO law should review all ad copy for potential legal problems  internet  “digital divide” may result in increased disparate impact if recruiting solely from on-line job sites.  A temporary problem