Human Resources Management 12e Gary Dessler

Human Resources Management 12e Gary Dessler
Copyright © 2011 Pearson Education

This chapter explains the process of forecasting personnel requirements, discusses the pros and cons of methods used for recruiting job candidates, describes how to develop an application form, and explains how to use application forms to predict job performance. The Internet has changed the face of recruiting, particularly in advertising for applicants. Employers can now reach more potential applicants in less time and at less expense. However, this tool has generated some challenges. Employers may get too many applicants, or fail to reach certain segments of the population.

Copyright © 2015 Pearson Education, Inc.
Learning Objectives Explain the main techniques used in employment planning and forecasting. Explain and give examples for the need for effective recruiting. Name and describe the main internal sources of candidates. After studying this chapter, you will be able to: 1. Explain the main techniques used in employment planning and forecasting. 2. Explain and give examples for the need for effective recruiting. 3. Name and describe the main internal sources of candidates. Copyright © 2015 Pearson Education, Inc.

Copyright © 2015 Pearson Education, Inc.
Learning Objectives List and discuss the main outside sources of candidates. Explain how to recruit a more diverse workforce. Developing and Using Application Forms: Discuss practical guidelines for obtaining application information. After studying this chapter, you will be able to: 4. List and discuss the main outside sources of candidates. 5. Explain how to recruit a more diverse workforce. 6. Developing and Using Application Forms: Discuss practical guidelines for obtaining application information. Copyright © 2015 Pearson Education, Inc.

Explain the basic steps of Recruitment and Selection Process?

The Recruitment and Selection Process
Human Resources Management 12e Gary Dessler The Recruitment and Selection Process Decide what positions to fill through personnel planning and forecasting. Build a candidate pool by recruiting internal or external candidates. Have candidates complete application forms and undergo initial screening interviews. Use selection tools to identify viable candidates. Decide who to make an offer to, by having the supervisor and others interview the candidates. Job analysis identifies the duties and human requirements for each of the company’s jobs. The next step is to decide how many of these jobs you need to fill, and to recruit and select employees for them. Copyright © 2011 Pearson Education

FIGURE 5–1 Steps in Recruitment and Selection Process The best way to envision recruitment and selection is as a series of hurdles as shown in Figure 5-1. The recruitment and selection process is a series of hurdles aimed at selecting the best candidate for the job. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

FIGURE 5–2 Linking Employer’s Strategy to Plans Employment planning should flow from the firm’s strategic plans. Figure 5-2 summarizes the link between strategic and personnel planning. Copyright © 2011 Pearson Education Copyright © 2011 Pearson Education

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

Forecasting HR Needs First step in HR planning Forecast revenue
Estimate the number of persons needed to achieve this volume

Forecasting Personnel Needs
1-Trend analysis The study of a firm’s past employment needs over a period of years to predict future needs. 2- Ratio analysis A forecasting technique for determining future staff needs by using ratios between a causal factor and the number of employees needed. Assumes that the relationship between the causal factor and staffing needs is constant

The Scatter Plot 3- Scatter plot
A graphical method used to help identify the relationship between two variables. Size of Hospital Number of (Number of Beds) Registered Nurses

FIGURE 5–3 Determining the Relationship Between Hospital Size and Number of Nurses Hospital Size (Number of Beds) Number of Registered Nurses 200 240 300 260 400 470 500 600 620 700 660 800 820 900 860 Figure 5-3 shows hospital size on the horizontal axis. It shows number of nurses on the vertical axis. If these two factors are related, then the points will tend to fall along a straight line, as they do here. If you carefully draw in a line to minimize the distances between the line and each one of the plotted points, you will be able to estimate the number of nurses needed for each hospital size. Thus, for a 1,200-bed hospital, the human resource director would assume she needs about 1,210 nurses. Note: After fitting the line, you can project how many employees are needed, given your projected volume. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Using Computers to Forecast Personnel Requirements
4- Computerized forecasts The use software packages to determine of future staff needs by projecting sales, volume of production, and personnel required to maintain a volume of output.

5- Managerial Judgment Managerial judgment considers the following factors that may influence forecasts: Projected turnover Quality and skills of employees Strategic decisions to upgrade quality or enter new markets Technological and other changes resulting in increased productivity Financial resources available to the department

Forecasting the Supply of Inside Candidates
Human Resources Management 12e Gary Dessler Forecasting the Supply of Inside Candidates Manual systems and replacement charts Computerized skills inventories Qualification Inventories Knowing your staffing needs satisfies only half the staffing equation. Next, you have to estimate the likely supply of both inside and outside candidates. Most firms start with the inside candidates. Department managers or owners of smaller firms often use manual devices to track employee qualifications. Thus a personnel inventory and development record form compiles qualifications information on each employee. Computerized skills inventory data typically include items like work experience codes, product knowledge, the employee’s level of familiarity with the employer’s product lines or services, the person’s industry experience, and formal education. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Forecasting the Supply of Inside Candidates
1-Qualifications inventories Manual or computerized records listing employees’ education, career and development interests, languages, special skills, and so on, to be used in selecting inside candidates for promotion. 2- Personnel replacement charts Company records showing present performance and promotability of inside candidates for the most important positions. 3- Position replacement card A card prepared for each position in a company to show possible replacement candidates and their qualifications

FIGURE 5–4 Management Replacement Chart Showing Development Needs of Potential Future Divisional Vice Presidents Figure 5-4 is a personnel replacement chart for some of a firm’s top positions. It shows the present performance and promotability for each position’s potential replacement. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Computerized Information Systems
4- Human Resource Information System (HRIS) Computerized inventory of information that can be accessed to determine employees’ background, experience, and skills that may include: Work experience codes Product or service knowledge Industry experience Formal education

The Matter of Privacy of HR Information
The need to ensure the security of HR information There is a lot of HR information to keep secure. Control of HR information can be established through the use of access matrices that limit users. Legal considerations: The Federal Privacy Act of 1974 gives employees rights regarding who has access to information about their work history and job performance.

Forecasting the Supply of Outside Candidates
Factors impacting the supply of outside candidates General economic conditions Expected unemployment rate Sources of information Periodic forecasts in business publications Online economic projections U.S. Congressional Budget Office (CBO) Bureau of Labor Statistics U.S. Department of Labor: O*Net Other federal agencies

Effective Recruiting External factors affecting recruiting:
Looming undersupply of workers Lessening of the trend in outsourcing of jobs Increasingly fewer “qualified” candidates Internal factors affecting recruiting: The consistency of the firm’s recruitment efforts with its strategic goals The available resources, types of jobs to be recruited and choice of recruiting methods Non-recruitment HR issues and policies Line and staff coordination and cooperation

Effective Recruiting Recruiting Yield Pyramid
Historical arithmetic relationships between recruitment leads and invitees, interviews and offers made, and offers made and offers accepted Used to calculate the number of applicants they must attract to hire the required number of employees

Effective Recruiting Advantages of centralizing recruitment
Strengthens employment brand Ease in applying strategic principles. Reduces duplication of HR activities Reduces the cost of new HR technologies Builds teams of HR experts Provides for better measurement of HR performance

Internal Sources of Candidates
Human Resources Management 12e Gary Dessler Internal Sources of Candidates Advantages Disadvantages 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 Recruiting of current employees, or “hiring from within,” is often the best source of candidates. However, there are advantages and disadvantages to using internal candidates. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Internal Sources of Candidates: Hiring from Within

Finding Internal Candidates
Human Resources Management 12e Gary Dessler Finding Internal Candidates Posting open job positions Rehiring former employees Hiring-from-Within Tasks Succession planning (HRIS) Hiring from within ideally relies on job posting and the firm’s skills inventories. Job posting means publicizing the open job to employees (usually by literally posting it on company intranets or bulletin boards). These postings list the job’s attributes, like qualifications, supervisor, work schedule, and pay rate. Qualifications skills banks also play a role. For example, the database may reveal persons who have potential for further training or who have the right background for the open job. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Finding Internal Candidates
Job posting Publicizing an open job to employees (often by literally posting it on bulletin boards) and listing its attributes. Rehiring former employees Advantages: They are known quantities. They know the firm and its culture. Disadvantages: They may have less-than positive attitudes. Rehiring may sent the wrong message to current employees about how to get ahead.(to leave and come bac)

Finding Internal Candidates (cont’d)
Succession planning The process of ensuring a suitable supply of successors for current and future senior or key jobs. Succession planning steps: Identifying and analyzing key jobs. Creating and assessing candidates. Selecting those who will fill the key positions.

Succession Planning Step 1: Identify and analyze key jobs
Based on the company’s strategic goals, top management and the HR manager identify what the company’s future key positions will be. They then write job descriptions and specifications for these positions. For instance, if the company plans to expand abroad, it may look for talent in its international division. Step 2: Assess candidates After identifying future key positions, the management team assesses candidates for these jobs. It then provides them with the developmental experience they need in these positions. Step 3: Select those who will fill the positions Top management selects those who will fill the key positions.

Outside Sources of Candidates
Human Resources Management 12e Gary Dessler Outside Sources of Candidates Locating Outside Candidates 1 6 3 2 7 8 Recruiting via the Internet Executive Recruiters 4 9 Advertising On Demand Recruiting Services (ODRS) 5 Employment Agencies College Recruiting Temp Agencies and Alternative Staffing Referrals and Walk-ins Firms can’t always get all the employees they need from their current staff, and sometimes they just don’t want to. This slide lists some of the sources that firms use to find outside candidates. Offshoring/Outsourcing Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

1-Recruiting via the Internet
Human Resources Management 12e Gary Dessler 1-Recruiting 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 . Unqualified applicants overload the system . Personal information privacy concerns of applicants. Internet recruiting is a cost-effective way to publicize openings; it generates more responses quicker and for a longer time at less cost than just about any other method. However, Internet recruiting can present problems such as discrimination, application overload, and privacy. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

FIGURE 5–8 Ineffective and Effective Web Ads The best Web ads don’t just transpose newspaper ads to the Web. Figure 5-8 shows both an example of an ineffectively recycled print ad and an effective Web ad. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

2-Advertising for Outside Candidates
Human Resources Management 12e Gary Dessler 2-Advertising for Outside Candidates The Media Choice Selection of the best medium depends on the positions for which the firm is recruiting. Newspapers Trade and professional journals Internet job sites: global labor markets . Constructing (Writing) Effective Ads Wording related to job interest factors should evoke the applicant’s attention, interest, desire, and action (AIDA) and create a positive impression of the company While Web-based recruiting is rapidly replacing help wanted ads, a glance at almost any paper or business or professional magazine will confirm that print ads are still popular. To use help wanted ads successfully, employers have to address two issues: the advertising medium and the ad’s construction. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

3- Employment Agencies Public agencies Private agencies Types of Employment Agencies Nonprofit agencies There are three main types of employment agencies: (1) public agencies operated by federal, state, or local governments; (2) agencies associated with nonprofit organizations; and (3) privately owned agencies. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Outside Sources of Candidates (cont’d)
Types of employment agencies: Public agencies operated by federal, state, or local governments Agencies associated with nonprofit organizations Privately owned agencies

Why Use a Private Employment Agency?
Reasons for using a private employment agency: When a firm doesn’t have an HR department and is not geared to doing recruiting and screening. The firm has found it difficult in the past to generate a pool of qualified applicants. The firm must fill a particular opening quickly. There is a perceived need to attract a greater number of minority or female applicants. The firm wants to reach currently employed individuals, who might feel more comfortable dealing with agencies than with competing companies.

Avoiding Problems with Employment Agencies
Human Resources Management 12e Gary Dessler Avoiding Problems with Employment Agencies Give agency an accurate and complete job description. 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.. Using employment agencies requires avoiding potential pitfalls. For example, the employment agency’s screening may let poor applicants go directly to the supervisors responsible for hiring, who may in turn naively hire them. Conversely, improper screening at the agency could block potentially successful applicants. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Temporary Agencies and Alternative Staffing
Human Resources Management 12e Gary Dessler Temporary Agencies and Alternative Staffing 4-Alternative Staffing In-house contingent (casual, seasonal, or temporary) workers employed by the company, but on an explicit short-term basis. Contract technical employees supplied for long-term projects under contract from outside technical services firms. Employers increasingly supplement their permanent workforces by hiring contingent or temporary workers, often through temporary help employment agencies. Also known as part-time or just-in-time workers, the contingent workforce is big and growing. The contingent workforce isn’t limited to clerical or maintenance staff. It includes thousands of engineering, science, or management support occupations, such as temporary chief financial officers, human resource managers, and CEOs. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Temp Agencies and Alternative Staffing
Human Resources Management 12e Gary Dessler Temp Agencies and Alternative Staffing Benefits of Temps Increased productivity—paid only when working Allows “trial run” for prospective employees. No recruitment, screening, and payroll administration costs Costs of Temps Increased labor costs due to fees paid to temp agencies, Temp employees’ lack of commitment to the firm. Employers have long used “temps” to fill in for permanent employees who were out sick or on vacation. But the desire for ever-higher productivity also contributes to temp workers’ growing popularity. Productivity is measured in terms of output per hour paid. Many firms also use temporary hiring to give prospective employees a trial run before hiring them as regular employees. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Working with a Temp Agency
Invoicing. Get a sample copy of the agency’s invoice. Make sure it fits your company’s needs. Time sheets. With temps, the time sheet is not just a verification of hours worked. Temp-to-perm policy. What is the policy if the client wants to hire one of the agency’s temps as a permanent employee? Recruitment of and benefits for temp employees. Dress code. Specify the attire at each of your offices or plants. Equal employment opportunity statement. Job description information..

5-Executive recruiters (headhunters) Special employment agencies retained by employers to seek out top-management talent for their clients. Contingent-based recruiters collect a fee for their services when a successful hire is completed. Internet technology and specialization trends are changing how candidates are attracted and how searches are conducted.

External Sources of Candidates pros and cons
Advantages of using executive recruiters: Able to contact qualified, currently employed candidates who are not actively looking to change jobs Can keep your company’s name confidential until late into the search process. Save top management’s time by advertising for the position and screening applicants Recruiter’s fee may turn out to be insignificant compared with cost of executive time saved

External Sources of Candidates
Disadvantages of using executive recruiters: Employer has to provide comprehensive explanation of what sort of candidate is required and why. Some recruiters may be more interested in persuading to the employer to hire a candidate rather than finding one who will really do the job.

Guidelines for Choosing a Recruiter
Human Resources Management 12e Gary Dessler Guidelines for Choosing a Recruiter Guidelines for Choosing a Recruiter Make sure the firm is capable of conducting a thorough search. Meet individual who will handle your assignment. Ask how much the search firm charges. Make sure the recruiter and you agree on what sort of person you need for the position. Never rely solely on the recruiter to do reference checking. Executive recruiters (also known as headhunters) are special employment agencies retained by employers to seek out top-management talent for their clients. For executive positions, headhunters may be your only source of candidates. The employer always pays the fees. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

6- College 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 College recruiting—sending an employer’s representatives to college campuses to prescreen applicants and create an applicant pool from the graduating class—is an important source of management trainees and professional and technical employees. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

College Recruiting and Interns as a Source of Candidates
Two main problems It is relatively expensive and time consuming for the recruiters Recruiters themselves are sometimes ineffective

Sources of Outside Applicants
Human Resources Management 12e Gary Dessler Sources of Outside Applicants Employee referrals Walk-ins Telecommuters Other Sources of Outside Applicants Military personnel Employee referral campaigns are an important recruiting option. A firm may post announcements of openings and requests for referrals on its Web site, bulletin, and/or wallboards. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

7-Employee referrals Applicants who are referred to the organization by current employees Referring employees become stakeholders. Referral is a cost-effective recruitment program. Referral can speed up diversifying the workforce

External Sources of Candidates
8-Walk-in Direct applicants who seek employment with or without encouragement from other sources. Courteous treatment of any applicant is a good business practice.

Recruiting A More Diverse Workforce
Human Resources Management 12e Gary Dessler Recruiting A More Diverse Workforce Single parents Older workers Welfare-to-work Minorities and women The disabled Recruiting a diverse workforce isn’t just socially responsible. Given globalization and the rapid increase in minority, older worker, and women candidates, it is a necessity. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Developing and Using Application Forms
The form that provides information on education, prior work record, and skills. Uses of information from applications Judgments about the applicant’s educational and experience qualifications Conclusions about the applicant’s previous progress and growth Indications of the applicant’s employment stability Predictions about which candidate is likely to succeed on the job

Developing and Using Application Forms
Employers should carefully review application forms to ensure that they comply with equal employment laws. Questions to beware of include: Education Arrest record Notify in case of emergency Membership in organizations Physical handicaps Marital status Housing

Application Forms and the Law
Human Resources Management 12e Gary Dessler Application Forms and the Law Educational Achievements Notification in case of emergency Membership in organizations Physical handicaps Marital status Housing arrangements Areas of Personal Information Carefully review application forms to ensure that they comply with equal employment opportunity laws in the proper use of questions that the applicant is asked to answer. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Two-Stage Process Conditional Job Offer Is Applicant Qualified? Make conditional job offer contingent on meeting all “second stage” conditions Review application information, personal interview, testing, and do background check Yes In choosing what to ask on the application, some experts suggest using a two-stage process. Ascertain the applicant qualification for the job, and then make a conditional job offer. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

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