Copyright © 2014 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin FUNDAMENTALS OF HUMAN RESOURCE MANAGEMENT 5 TH EDITION BY R.A. NOE, J.R. HOLLENBECK, B. GERHART, AND P.M. WRIGHT CHAPTER 5 PLANNING FOR AND RECRUITING HUMAN RESOURCES

5-2 Process of HR Organizations should carry out HR planning so as to meet business objectives and gain a competitive advantage over competitors. HR planning compares present state of the organization with its future goals to identify what changes it must make in its HR to meet those goals. Forecasting- determines supply and demand to predict areas within the organization where there will be labor shortages or surpluses. Organizations should carry out HR planning so as to meet business objectives and gain a competitive advantage over competitors. HR planning compares present state of the organization with its future goals to identify what changes it must make in its HR to meet those goals. Forecasting- determines supply and demand to predict areas within the organization where there will be labor shortages or surpluses.

5-3 Goal Setting and Strategic Planning Purpose of setting specific numerical goals is to focus attention on the problem and provide a basis for measuring the organization’s success in addressing labor shortages and surpluses. Goals should come directly from analysis of supply and demand. For each goal, organization must choose one or more HR strategies. Organizations should retain and attract employees who provide a core competency (what makes it better than competitors) Purpose of setting specific numerical goals is to focus attention on the problem and provide a basis for measuring the organization’s success in addressing labor shortages and surpluses. Goals should come directly from analysis of supply and demand. For each goal, organization must choose one or more HR strategies. Organizations should retain and attract employees who provide a core competency (what makes it better than competitors)

5-4 Options for Reducing a Surplus Downsizing Pay reductions Demotions Transfers Work sharing Hiring freeze Natural attrition Early retirement Retraining

5-5 Options for Avoiding a Shortage Overtime Temporary employees Outsourcing Retrained transfers Turnover reductions New external hires Technological innovation

5-6 Implement and Evaluate HR Plan When implementing HR strategy, organizations must hold individuals accountable for achieving goals and give them authority and resources needed to accomplish those goals. Regular progress reports should be issued. Evaluation of results should look at tactual numbers and identify which parts of planning process contributed to success or failure. Workforce Utilization Review- compares employees in protected groups with proportion that each group represents in relevant labor market. When implementing HR strategy, organizations must hold individuals accountable for achieving goals and give them authority and resources needed to accomplish those goals. Regular progress reports should be issued. Evaluation of results should look at tactual numbers and identify which parts of planning process contributed to success or failure. Workforce Utilization Review- compares employees in protected groups with proportion that each group represents in relevant labor market.

5-7 Figure 5.2: Three Aspects of Recruiting

5-8 Personnel Policies Several personnel policies are especially relevant to recruitment: Internal versus external recruiting Lead-the-market pay strategies Employment-at-will policies Image advertising

5-9 Recruitment Sources: External Sources Direct applicantsReferrals Advertisements in newspapers and magazines Electronic recruiting Public employment agencies Private employment agencies Colleges and universities

5-10 Evaluating the Quality of a Source A ratio that expresses percentage of applicants who successfully move from one stage of the recruitment and selection process to the next. By comparing yield ratios of different recruitment sources, we can determine which source is best or most efficient for type of vacancy. A ratio that expresses percentage of applicants who successfully move from one stage of the recruitment and selection process to the next. By comparing yield ratios of different recruitment sources, we can determine which source is best or most efficient for type of vacancy. Find cost of using a particular recruitment source for a particular type of vacancy. Divide that cost by number of people hired to fill that type of vacancy. A low cost per hire means the recruitment source is efficient. Find cost of using a particular recruitment source for a particular type of vacancy. Divide that cost by number of people hired to fill that type of vacancy. A low cost per hire means the recruitment source is efficient. Yield Ratios Cost Per Hire

5-11 Recruiter Traits and Behaviors Characteristics of Recruiter Behavior of Recruiter Enhancing Recruiter’s Impact