1. Managing Human Resources Bohlander  Snell  Sherman
Notes
Chapter 4
Human Resources
Planning & Recruitment
Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning

2. Chapter 4 Learning Objectives
Identify the advantages of integrating HR planning and strategic planning.
Describe the basic approaches to HR planning.
Explain the advantages and disadvantages of recruiting from within the organization.
Explain the advantages and disadvantages of external recruitment.
Describe how recruitment activities are integrated with diversity and equal employment opportunity initiatives
Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning

3. Human Resources Planning (HRP)
The process of anticipating and making
provision for the movement of people
into, within, and out of an organization
Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning

4. The Importance of HRP Key Areas of HRP Reducing Intangible Costs
Recruitment
Foundation for Effective HRM
HRP and Strategic Planning
Reducing Intangible Costs
Human Resources Planning (HRP) is the process of anticipating and making provision for the movement of people into, within, and out of an organization. The dramatic shifts in the composition of the labor force and the increasing reliance on a company’s human resources to create competitive advantage in a global marketplace means that effective HRP is becoming even more important in every organization. Key areas of HRP importance include:
Recruitment. On its most basic level, HRP must ensure that the organization has the personnel it needs to meet organizational objectives.
Foundation for Effective HRM. Planning provides the insight and vision for developing and implementing a successful human resources management program. HRM is necessary to help management make the most of its human resources.
Reducing Intangible Costs. Effective HRP increases efficiency and effectiveness. Conversely, inadequate HRP can lead to vacancies in key position, often resulting in reactive hiring under less than optimal conditions. Also, poor HRP can lead more competent and ambitious employees to seek opportunity elsewhere because they perceive the infrastructure needed to advance in the organization to be lacking.
HRP and Strategic Planning. Through strategic planning, organizations set major objectives and develop comprehensive plans to achieve those objectives. HRP helps in the process of strategic planing by determining whether people are available, internally or externally, to carry out the organization’s goals.
Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning

5. Integrating HRP and Strategic Planning Identify people-related
Presentation Slide 4-1
Integrating HRP and Strategic Planning
Strategic
Analysis
Strategy
Formulation
Strategy
Implementation
Clarify performance expectations and future management methods:
values, guiding principles
business mission
objectives and priorities
resource allocations
Implement processes to
achieve desired results:
business goals
company strengths/weaknesses
external opportunities/threats
source of competitive advantage
Establish the context:
business goals
company strengths/weaknesses
external opportunities/threats
source of competitive advantage
Identify people-related
business issues
Define HR strategies,
objectives, and
action plans
Implement HR
processes, policies
and practices
Human Resource Planning
Adapted from: James W. Walker, “Integrating the Human Resource Function with the Business,” Human Resource Planning 14, no. 2 (1996): 59–77. Reprinted with permission.
Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning

6. Mapping an Organization’s Human Capital Architecture
Presentation Slide 4-2
Mapping an Organization’s Human Capital Architecture
Unique skills
Alliance/ Partners
Core knowledge workers
Lower
strategic
value
High strategic value
Employee Functions
Traditional job-based employees
Production
R&D
Quality
Info. Systems
Marketing
Accounting HR
Contract labor
Generic skills
Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning

7. Organizational Capability
The capacity to act and change in pursuit
of sustainable competitive advantage
Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning

8. Environmental Scanning
Economic Factors
Technological Changes
Environmental Scanning is the systematic, regular monitoring of the major external forces influencing the organization. The five most frequently monitored factors (forces) include:
Economic Factors. Macroeconomic conditions affect how the organization performs. For example, changes in exchange rates affect prices and profits in foreign markets. Changes in interest rates affect the cost of borrowing money, which in turn can influence when or if new facilities are brought on line and when people are hired to work in them. Recognizing the key economic factors affecting the organization is extremely important. The sooner new developments are identified, the better the organization can anticipate how to deal with them.
Technological Changes. It is hard to over estimate the impact changes in technology have on business. Of course, this is true for information-based companies (such as Microsoft, Intel, and EDS), but it is also true of virtually every industry. HR planners must scan developments in the technological environment to identify changes affecting the organization or its competitors.
Teaching Tip: The late Sam Walton of Wal-Mart built an inventory ordering and control system based on telecommunications that gave Wal-Mart a cost advantage over its competitors. Embracing that new technology has made Wal-Mart the world’s largest retailer.
Political/Legislative Issues. HRM must always be aware of changes in laws affecting hiring and termination of personnel. Even more, HR planners cannot afford to be surprised by pending major changes.
Social Concerns. How work force social and cultural factors are addressed by the company can have strategic implications for employee morale.
Demographic Trends. Because HRM must recruit from society at large, it must know the makeup and level of preparation of that pool. Education, age, availability, and other demographic information are extremely important.
Political/
Legislative Issues
Demographic Trends
Social Concerns
Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning

9. Cultural Audits
Audit of the organizational culture and quality of work life in an organization
Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning

10. Presentation Slide 4-3 Human Resources Planning Model
Employment Forecasting
Supply Analysis
Balance Supply and Demand
Leads to
Resulting in
CONSIDERATIONS
INTERNAL
RECRUITMENT
Product/Service
Economics
Technology
Financial Resources
Absenteeism/
Turnover
Growth
Management Philosophy
Staffing Tables
Markov Analysis
Skills Inventories
Management Inventories
Replacement Charts
Succession Planning
Full-Time
Part-Time
Recalls
Manager follow a systematic process, or model, when undertaking HRP. The three key elements of the process are outlined below and developed in more detail on subsequent slides. Key elements of HRP include:
Employment Forecasting. HRP assesses the current and future needs of the organization for employment and helps to prepare to meet those needs at the direction of management.
Supply Analysis. Supply analysis seeks to identify whether there are sufficient number and types of employees available to staff anticipated openings. Supply analysis activities encompass both internal and external sources of recruitment.
Balancing Supply and Demand Considerations. HRP also must provide management with plans for managing supply and demand over time. This includes provisions for expanding and contracting the size of the organization’s work force.
REDUCTIONS
Terminations
Layoffs
Demotions
Retirement
EXTERNAL
TECHNIQUES
Demographic Changes
Education of Workforce
Labor Mobility
Governmental Policies
Unemployment Rate
Trend Analysis
Managerial Estimate
Delphi Technique
Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning

11. Employment Forecasting
Trend
Analysis
Management
Forecasts
Delphi
Technique
A key component of HRP is to forecast the number and type of people needed to meet organizational objectives. Internal factors such as business strategy, technology, structure, and productivity, influence forecasting. External factors such as business cycles, interest rates, and legislative changes, also can affect forecasts. HR forecasting uses both quantitative and qualitative approaches. Quantitative approaches use statistical or mathematical techniques. Qualitative approaches use management judgment. Three commonly used techniques include:
Trend Analysis. A quantitative technique, trend analysis uses a business factor to predict human resources needs. Changes in this factor (such as sales) plotted historically over time are used to determine the ratio of employees needed at a given level of the business factor (productivity level). By calculating the likely level of the business factor in the future, the number of employees needed can be estimated.
Management Forecasts. Here the opinions (judgments) of supervisors, department managers, experts, or others knowledgeable about the organization’s future employment needs are used for developing a forecast.
Delphi Technique. This technique attempts to decrease the subjectivity of forecasts by soliciting and summarizing the judgments of a preselected group of individuals. The final forecast represents a composite group judgment.
Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning

12. Trend Analysis A quantitative approach to forecasting
labor demand based on an
organizational index such as sales
Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning

13. Management Forecasts The opinions (judgments) of supervisors,
department managers, or others
knowledgeable about the organization’s
future employment needs
Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning

14. Tools of Supply Analysis
Staffing Tables
Succession Planning
Markov Analysis
Skills Inventories
Replacement Charts
Supply analysis seeks to determine whether there are sufficient numbers and types of employees available to staff anticipated openings. Supply analysis encompasses both internal and external sources:
Internal Labor Supply. Several tools are used to evaluate internal labor supply:
Staffing Tables. These are pictorial representations of all organizational jobs, number of current employees in those jobs, and future needs.
Markov Analysis. This shows the percentage of employees who remain in each job from one year to the next and the proportions of those who are promoted, demoted, or transferred, or who exit the organization.
Skills Inventories. These index employees’ education, past work experience, vocational interests, abilities and skills, compensation history, and job tenure.
Replacement Charts. This is a list of current jobholders and possible replacements should openings occur.
Succession Planning. This is the process of identifying, developing, and tracking key individuals for top-level positions.
External Labor Supply. Many factors influence labor supply, including demographic changes in the population, national and regional economics, education level of the work force, demand for specific employee skills, population mobility, and governmental policies.
Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning

15. Staffing Tables Pictorial representations of all
organizational jobs, along with the numbers
of employees currently occupying those jobs
and future (monthly or yearly)
employment requirements
Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning

16. Markov Analysis Method for tracking the pattern of
employee movements through various jobs
Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning

17. Skill Inventories Files of personnel education, experience,
interests, skills, and so on, that allow
managers to quickly match job
openings with employee backgrounds
Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning

18. Replacement Charts Listings of current jobholders and
persons who are potential replacements
if an opening occurs
Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning

19. Succession Planning The process of identifying, developing,
and tracking key individuals
for executive positions
Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning

20. Job Posting and Bidding
Posting vacancy notices and
maintaining lists of employees looking
for upgraded positions
Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning

21. Recruitment External Sources of Recruitment Advertisements
Employee Leasing
Public Employment Agencies
External
Sources of
Recruitment
Temporary Help Agencies
Private Employment Agencies
Recruitment is the process of locating and encouraging potential applicants to apply for existing or anticipated job openings. Recruitment from within the organization offers the advantages of leveraging the investment the firm has made in developing its current employees. It is also generally good for morale. Disadvantages include a lack of possible needed external experience and perspective. Methods of recruiting from within include:
Computerized Record Systems. Similar to the skills inventories, computerized records can allow an organization to screen its entire workforce in a matter of minutes to locate suitable candidates to fill an internal opening.
Job Posting and Bidding. This process consists largely of publicizing vacancy notices via internal media such as bulletin boards, company newsletters, company intranets and , mailings, flyers, handouts and public-address messages.
Sources of external recruitment include:
Advertisements. These are ads announcing opportunities in various media such as radio, television, and newspapers.
Public Employment Agencies. All fifty states maintain employment offices to assist employers in finding personnel.
Private Employment Agencies. These firms often specialize in developing candidates with specific skills.
Executive Search Firms. These firms seek out candidates with qualifications that match the requirements of the positions their clients are seeking to fill.
Educational Institutions. Schools provide sources for recruitment for many entry-level positions in various industries.
Employee Referrals. Here employees recommend friends and associates.
Unsolicited Applications and Resumes. These are contacts initiated by the jobseeker who has specifically targeted the organization as a place to work.
Professional Organizations. Many professional associations sponsor job placement services for their members.
Labor Unions. These organizations provide some quality control.
Temporary Help Agencies. So-called “temps,” are typically used for short-term assignments, but increasingly are being used to cover once permanent positions.
Employee Leasing. These are employees who work for a leasing firm that places them in another company on a permanent basis.
Labor Unions
Executive Search Firms
Professional Organizations
Educational Institutions
Unsolicited Applications
Employee Referrals
Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning

22. The area from which applicants
Labor Market
The area from which applicants
are to be recruited
Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning

23. A preference for hiring relatives
Nepotism
A preference for hiring relatives
of current employees
Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning

24. Employee Leasing Process of dismissing employees who are
then hired by a leasing company (which
handles all HR-related activities)
and contracting with that company
to lease back the employees
Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning

25. Yield Ratio The percentage of applicants from
a recruitment source that make it
to the next phase of the selection process
Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning

26. Realistic Job Preview Informing applicants about all aspects
of the job, including both its desirable
and undesirable facets
Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning