2-1 Stages in Human Resource Planning Forecasting Goal Setting and Strategic Planning Program Implementation and Evaluation

2-2 Forecasting Stage of Human Resource Planning Determining Labor Demand –derived from product/service demanded Determining Labor Supply –Internal movements caused by transfers, promotions, turnover, retirements, etc. –Labor Supply Chart –Outstanding Perf. 2. Acc Perf. 3. Poor Perf. 4. Unacc. Perf –Ready for Promotion B. needs more exp. C. No substitute Determining Labor Surplus or Shortage

2-3 Strategies for Reducing an Expected Labor Surplus Option Speed Extent of Human Suffering Fast Slow High Moderate Low 1. Downsizing 2. Pay reductions 3. Demotions 4. Transfers 5. Work sharing 6. Hiring freeze 7. Natural attrition 8. Early retirement 9. Retraining

2-4 Strategies for Reducing an Expected Labor Deficit Option SpeedHuman Suffering Fast Slow High Moderate Low 1. Overtime 2. Temporary Employees 3. Outsourcing 4. Retrained transfers 5. Turnover reductions 6. New external hires 7. Technological innovation

2-5 Downsizing Downsizing is the planned elimination of large numbers of personnel designed to enhance organizational competitiveness. Reasons for downsizing include: –need to reduce labor costs –technological changes reduce need for labor –mergers and acquisitions reduce bureaucratic overhead –organizations choose to change the location of where they do business

2-6 Effects of Downsizing Studies show that firms that announce a downsizing campaign show worse, rather than better financial performance. Reasons include: –The long-term effects of an improperly managed downsizing effort can be negative. –Many downsizing campaigns let go of people who turn out to be irreplaceable assets. –Employees who survive the staff purges often become narrow-minded, self-absorbed, and risk- averse.

2-7 Employing Temporary Workers Hiring temporary workers helps eliminate a labor shortage. Temporary employment affords firms the flexibility needed to operate efficiently in the face of swings in demand. Other advantages include: –temporary workers free a firm from many administrative tasks and financial burdens –temporary workers contracts can be easily terminated without complicated consequences if there are indications to do so

2-8 Outsourcing and Offshoring Outsourcing is an organization’s use of an outside organization for a broad set of services. Offshoring is a special case of outsourcing where the jobs that move actually leave one country and go to another. To help ensure the success of outsourcing: –Choose an outsourcing vendor that is large and established. –Jobs which require tight security should not be outsourced. –It is a good idea to start small and monitor constantly.

2-9 Recruitment Human Resource Activity designed to: –Affect the number of people who apply for vacancies, –Meet the qualities of people who apply for vacancies, –Improve the likelihood that those applying for vacancies will accept positions if offered. The goal of recruitment is to ensure that when a vacancy occurs, the organization has a number of reasonably qualified applicants to choose from.

2-10 The Human Resource Recruitment Process Job Choice Recruitment Influences Job Choice Applicant Characteristics Personnel Policies Recruiter Traits and Behaviors Recruitment Sources Vacancy Characteristics

2-11 Personnel Policies Characteristics of the vacancy are more important than recruiters or recruiting sources. Personnel Policies vary: –Internal versus External recruiting –Extrinsic versus Intrinsic Payments or Rewards –Employment-at-will policies –Image Advertising

2-12 Recruitment Sources Internal Sources - Faster, cheaper, more certainty External Sources - New ideas and approaches Direct Applicants and Referrals - self selection, low cost Newspaper Advertising - large volume, low quality recruits Electronic Recruiting - the Internet Public & Private Employment Agencies - headhunters, can be expensive Colleges and Universities - campus placement services JOBS

2-13 Recruiters Functional Area & Background –HR- versus operating area-specialist Recruiter Personal Traits –warm and informative Recruiter Realism –Deceiving Candidates about the negative elements of a job may increase later turnover; –Also, telling candidates about negative elements does not appear to immune them against disappointment nor make negative elements go away.

Provide timely feedback 2. Avoid rude behavior 3. Recruit in teams Steps to Enhance Recruiter Impact 1. Provide timely feedback 2. Avoid rude behavior 3. Recruit in teams