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2. Part Two: Acquisition and Preparation of Human Resources
Chapter 5
Part Two: Acquisition and Preparation of Human Resources
Chapter 5 - Human Resource Planning and Recruitment
Chapter 6 - Selection and Placement
Chapter 7 - Training
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© 2006 The McGraw-Hill Companies, Inc. All rights reserved.

3. Human Resource Planning and Recruitment
Chapter 5
Human Resource Planning and Recruitment
Discuss how to align a company’s strategic direction with its human resource planning.
Determine the labor demand for workers in various job categories.
Discuss the advantages and disadvantages of various ways of eliminating a labor surplus and avoiding a labor shortage.
McGraw-Hill/Irwin
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.

4. Human Resource Planning and Recruitment
Chapter 5
Human Resource Planning and Recruitment
Describe the various recruitment policies that organizations adopt to make job vacancies more attractive.
List the various sources from which job applicants can be drawn, their relative advantages and disadvantages, and the methods for evaluating them.
Explain the recruiter’s role in the recruitment process, the limits the recruiter faces, and the opportunities available.
McGraw-Hill/Irwin
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.

5. Stages in Human Resource Planning
Forecasting
Labor Demand
Labor Supply
Goal Setting and Strategic Planning
Program Implementation and Evaluation
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© 2006 The McGraw-Hill Companies, Inc. All rights reserved.

6. Forecasting Stage of Human Resource Planning
Determining Labor Demand
derived from product/service demanded
external in nature
Determining Labor Supply
internal movements caused by transfers, promotions, turnover, retirements, etc.
transitional matrices identify employee movements over time
useful for AA / EEO purposes
Determining Labor Surplus or Shortage
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© 2006 The McGraw-Hill Companies, Inc. All rights reserved.

7. Strategies for Reducing an Expected Labor Surplus
Option Speed Extent of Human Suffering
1. Downsizing
2. Pay reductions
3. Demotions
4. Transfers
5. Work sharing
6. Hiring freeze
7. Natural attrition
8. Early retirement
9. Retraining
Fast
Slow
High
Moderate
Low
McGraw-Hill/Irwin
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.

8. Strategies for Reducing an Expected Labor Surplus
Option Speed Extent of Human Suffering
1. Overtime
2. Temporary
employees
3. Outsourcing
4. Retrained transfers
5. Turnover reductions
6. New external hires
7. Technological
innovation
Fast
Slow
High
Moderate
Low
McGraw-Hill/Irwin
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.

9. 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
McGraw-Hill/Irwin
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.

10. 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.
McGraw-Hill/Irwin
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.

11. Early Retirement Programs
The average age of the U.S. workforce is increasing.
Baby boomers are not retiring early for several reasons:
improved health of older people
a fear that Social Security will be cut
mandatory retirement is outlawed
Many employers try to induce
voluntary attrition among older
workers through early
retirement incentive programs.
McGraw-Hill/Irwin
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.

12. 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 are often times tested by a temporary agency
many temporary agencies train employees before sending them to employees
McGraw-Hill/Irwin
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.

13. 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:
outsource only those jobs that are repetitive, predictable, and easily trained.
Choose an outsourcing vendor that is large and established.
Jobs that are proprietary or require tight security should not be outsourced.
It is a good idea to start small and monitor constantly.
McGraw-Hill/Irwin
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.

14. Affirmative Action Planning
It is important to plan for various subgroups within a labor force.
A comparison of the proportion of workers in protected subgroups with the proportion that each subgroup represents is called a workforce utilization review.
The steps required to execute an affirmative action plan are identical to the steps in the generic planning process discussed earlier.
McGraw-Hill/Irwin
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.

15. The Human Resource Recruitment Process
Job Choice
Job
Choice
Vacancy
Characteristics
Applicant
Characteristics
Personnel
Policies
Recruiter Traits
and Behaviors
Recruitment
Sources
Recruitment Influences
McGraw-Hill/Irwin
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.

16. Personnel Policies
Characteristics of the vacancy are more important than recruiters or recruiting sources.
Personnel Policies vary:
Internal versus External recruiting
opportunity for advancement
Market leader pay strategy
Employment-at-will policies- either party can terminate the relationship at any time
Due-process policy - employees can appeal a termination decision
Image advertising
McGraw-Hill/Irwin
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.

17. Recruitment Sources Colleges and Universities - Internal Sources -
campus placement services
Internal Sources -
Faster, cheaper,
more certainty
Public & Private
Employment Agencies -
headhunters, can be
expensive
External Sources -
New ideas and
approaches
JOBS
JOBS
Electronic Recruiting -
the Internet
Direct Applicants
and Referrals -
self selection,
low cost
Newspaper Advertising -
large volume, low
quality recruits
McGraw-Hill/Irwin
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.

18. Recruiters Functional Area Traits Realism
HR- versus operating area-specialist
Traits
warm and informative
Realism
realistic job preview, honesty
McGraw-Hill/Irwin
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.

19. Steps to Enhance Recruiter Impact
1. Provide timely feedback
2. Avoid rude behavior
3. Recruit in teams
1. Provide timely feedback
2. Avoid rude behavior
3. Recruit in teams
McGraw-Hill/Irwin
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.