1. 1– 1 MGT-351 Human Resource Management Chapter-5 MGT-351 Human Resource Management Chapter-5 Personnel Planning and Recruiting

2. 5–2 The Recruitment and Selection Process 1.Decide what positions to fill through personnel planning and forecasting. 2.Build a candidate pool by recruiting internal or external candidates. 3.Have candidates complete application forms and undergo initial screening interviews. 4.Use selection tools to identify viable candidates. 5.Decide who to make an offer to, by having the supervisor and others interview the candidates.

3. 5–3 FIGURE 5–1Steps in Recruitment and Selection Process The recruitment and selection process is a series of hurdles aimed at selecting the best candidate for the job.

4. 5–4 FIGURE 5–2Linking Employer’s Strategy to Plans

5. 5–5 Planning and Forecasting Employment or Personnel PlanningEmployment or Personnel Planning  The process of deciding what positions the firm will have to fill, and how to fill them. Succession PlanningSuccession Planning  The process of deciding how to fill the company’s most important executive jobs. What to Forecast?What to Forecast?  Overall personnel needs  The supply of inside candidates  The supply of outside candidates

6. 5–6 Forecasting Personnel Needs Trend AnalysisScatter Plotting Forecasting Tools Ratio Analysis

7. 5–7 Drawbacks to Traditional Forecasting Techniques They focus on projections and historical relationships.They focus on projections and historical relationships. They do not consider the impact of strategic initiatives on future staffing levels.They do not consider the impact of strategic initiatives on future staffing levels. They support compensation plans that reward managers for managing ever-larger staffs.They support compensation plans that reward managers for managing ever-larger staffs. They “bake in” the idea that staff increases are inevitable.They “bake in” the idea that staff increases are inevitable. They validate and institutionalize present planning processes and the usual ways of doing things.They validate and institutionalize present planning processes and the usual ways of doing things.

8. 5–8 Using Computers to Forecast Personnel Requirements Computerized ForecastsComputerized Forecasts  Software that estimates future staffing needs by:  Projecting sales, volume of production, and personnel required to maintain different volumes of output.  Forecasting staffing levels for direct labor, indirect staff, and exempt staff.  Creating metrics for direct labor hours and three sales projection scenarios—minimum, maximum, and probable.

9. 5–9 Forecasting the Supply of Inside Candidates Manual Systems and Replacement Charts Qualification Inventories Computerized Information Systems

10. 5–10 Forecasting Outside Candidate Supply Factors In Supply of Outside CandidatesFactors In Supply of Outside Candidates  General economic conditions  Expected unemployment rate Sources of InformationSources of Information  Periodic forecasts in business publications  Online economic projections

11. 5–11 Internal Candidates: Hiring from Within Foreknowledge of candidates’ strengths and weaknesses More accurate view of candidate’s skills Candidates have a stronger commitment to the company Increases employee morale Less training and orientation required Failed applicants become discontented Time wasted interviewing inside candidates who will not be considered Inbreeding strengthens tendency to maintain the status quo AdvantagesDisadvantages

12. 5–12 Finding Internal Candidates Hiring from Within Job Posting Succession Planning (HRIS) Rehiring Former Employees

13. 5–13 Outside Sources of Candidates 12 345 Advertising Recruiting via the Internet Employment Agencies Temp Agencies and Alternative Staffing Offshoring/Outsourcing 67 89 On Demand Recruiting Services (ODRS) Executive Recruiters College Recruiting Referrals and Walk-ins Locating Outside Candidates

14. 5–14 Outside Sources of Candidates (cont’d) Recruiting via the InternetRecruiting via the Internet  Advantages  Cost-effective way to publicize job openings  More applicants attracted over a longer period  Immediate applicant responses  Online prescreening of applicants  Links to other job search sites  Automation of applicant tracking and evaluation  Disadvantages  Exclusion of older and minority workers  Excessive number of unqualified applicants  Personal information privacy concerns of applicants

15. 5–15 FIGURE 5–8 Top Job Boards Ranked According to Average Number of Job Listings Source: Workforce Management, May 22, 2006, p. 12.

16. 5–16 Advertising for Outside Candidates The Media ChoiceThe Media Choice  Selection of the best medium depends on the positions for which the firm is recruiting.  Newspapers: local and specific labor markets  Trade and professional journals: specialized employees  Internet job sites: global labor markets Effective AdsEffective Ads  Create attention, interest, desire, and action (AIDA).  Create a positive impression of the firm.

17. 5–17 Employment Agencies Public Agencies Private Agencies Types of Employment Agencies Nonprofit Agencies

18. 5–18 Outside Sources of Candidates (cont’d) Why Use a Private Employment AgencyWhy Use a Private Employment Agency  No HR department: firm lacks recruiting and screening capabilities.  To attract a pool of qualified applicants.  To fill a particular opening quickly.  To attract more minority or female applicants.  To reach currently employed individuals who are more comfortable dealing with agencies.  To reduce internal time devoted to recruiting.

19. 5–19 Outside Sources of Candidates (cont’d) Avoiding Problems with Employment AgenciesAvoiding Problems with Employment Agencies  Provide the agency with accurate and complete job descriptions.  Make sure tests, application blanks, and interviews are part of the agency’s selection process.  Review candidates accepted or rejected by your firm or the agency for effectiveness and fairness of agency’s screening process.  Screen agency for effectiveness in filling positions.  Supplement the agency’s reference checking by checking the final candidate’s references yourself.

20. 5–20 Temp Agencies and Alternative Staffing Benefits of TempsBenefits of Temps  Increased productivity—paid only when working  Allows “trial run” for prospective employees  No recruitment, screening, and payroll administration costs Costs of TempsCosts of Temps  Increased labor costs due to fees paid to temp agencies  Temp employees’ lack of commitment to the firm

21. 5–21 Working with a Temp Agency Invoicing. Make sure the agency’s invoice fits your company’s needs.Invoicing. Make sure the agency’s invoice fits your company’s needs. Time sheets. The time sheet is a verification of hours worked and an agreement to pay the agency’s fees.Time sheets. The time sheet is a verification of hours worked and an agreement to pay the agency’s fees. Temp-to-perm policy. What is the policy if you want to hire a temp as a permanent employee?Temp-to-perm policy. What is the policy if you want to hire a temp as a permanent employee? Recruitment of and benefits for temp employees. How does the agency plan to recruit and what sorts of benefits it will it pay?Recruitment of and benefits for temp employees. How does the agency plan to recruit and what sorts of benefits it will it pay? Dress code. Specify the attire at each of your offices or plants.Dress code. Specify the attire at each of your offices or plants. Equal employment opportunity statement. Get a statement from the agency that it does not discriminate when filling temp orders.Equal employment opportunity statement. Get a statement from the agency that it does not discriminate when filling temp orders. Job description information. Ensure that the agency understands the job to be filled and the sort of person you want to fill it.Job description information. Ensure that the agency understands the job to be filled and the sort of person you want to fill it.

22. 5–22 Offshoring/Outsourcing White-Collar and Other Jobs Political and Military Instability Cultural Misunderstandings Customers’ security and privacy concerns Foreign contracts, liability, and legal concerns Special training of foreign employees Costs of foreign workers Resentment and anxiety of U.S. employees/unions Main Issues

23. 5–23 Outside Sources of Candidates (cont’d) Executive Recruiters (Headhunters)Executive Recruiters (Headhunters)  Contingent-based recruiters  Retained executive searchers  Internet technology and specialization trends Guidelines for Choosing a RecruiterGuidelines for Choosing a Recruiter 1. Make sure the firm is capable of conducting a thorough search. 2. Meet individual who will handle your assignment. 3. Ask how much the search firm charges. 4. Never rely solely on the recruiter to do reference checking.

24. 5–24 Outside Sources of Candidates (cont’d) College RecruitingCollege Recruiting  On-campus recruiting goals  To determine if the candidate is worthy of further consideration  To attract good candidates  On-site visits  Invitation letters  Assigned hosts  Information packages  Planned interviews  Timely employment offer  Follow-up  Internships

25. 5–25 Outside Sources of Candidates (cont’d) Employee ReferralsEmployee Referrals  Referring employees become stakeholders.  Referral is a cost-effective recruitment program.  Referral can speed up diversifying the workforce.  Relying on referrals may be discriminatory. Walk-insWalk-ins  Seek employment through a personal direct approach to the employer.  Courteous treatment of any applicant is a good business practice.

26. 5–26 FIGURE 5–12Best Recruiting Sources Percentage of employers reporting best-performing sources for hiring without regard to cost, 2004. Source: Workforce Management, December 2004, p. 98. Note: Survey of 2,294 organizations.

27. 5–27 Developing and Using Application Forms Applicant’s education and experience Applicant’s likelihood of success Applicant’s progress and growth Uses of Application Information Applicant’s employment stability

28. 5–28 FIGURE 5–13 Employment Application