HRM gaining a competitive advantage chapter 005 3rd ed

Part II

Acquisition and
Preparation of Human
Resources
Standard Slide Sample

Chapter 5
Human Resource Planning and Recruitment
Chapter 6
Selection and Placement
Chapter 7
Training
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5

Human Resource Planning
Chapter and Recruitment
Objectives

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• Discuss how to align a company’s strategic direction
with its human resource planning.
• Determine the labor demand of workers in various job
categories.
• Discuss the advantages and disadvantages of various

ways of eliminating a labor surplus and avoiding a labor
shortage.
• Describe the various recruitment policies organizations
adopt to make the job vacancies more attractive,
• List the various sources from which job applicants can
be drawn, their relative advantages and disadvantages,
and methods for evaluating them.
• Explain the recruiter’s role in the recruitment process,
the limits the recruiter faces, and the opportunities
available.
© The McGraw-Hill Companies, Inc., 2000


Stages in Human Resource
Planning

5-2






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Forecasting
Forecasting
LaborDemand
Demand
 Labor

LaborSupply
Supply
 Labor
GoalSetting
Settingand
and Strategic
Strategic Planning
Planning
Goal
ProgramImplementation
Implementationand
and Evaluation
Evaluation
Program

© The McGraw-Hill Companies, Inc., 2000


Forecasting Stage of Human
Resource Planning

5-3







DeterminingLabor

LaborDemand
Demand
Determining
derived from
fromproduct
product//service
service demand
demand
 derived
external in
innature
nature
 external
DeterminingLabor
LaborSupply
Supply
Determining
internal movements
movementscaused
caused by
bytransfers,
transfers,
 internal
promotions,turnover,
turnover,retirements,etc.
retirements,etc.
promotions,
transitionalmatrices
matricesidentify
identifyemployee

employee movements
movements
 transitional
overtime
time
over
usefulfor
forAA
AA// EEO
EEOpurposes
purposes
 useful
DeterminingLabor
LaborSurplus
Surplusor
orShortage
Shortage
Determining

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© The McGraw-Hill Companies, Inc., 2000


Strategies for Reducing an
Expected Labor Surplus

5-4

Speed

Extent of
Human Suffering

1. Downsizing

Fast

High

2. Pay reductions

Fast

High

3. Demotions

Fast

High

Strategy

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© The McGraw-Hill Companies, Inc., 2000


Strategies for Reducing an

Expected labor Surplus

5-5

Speed

Extent of
Human Suffering

1. Downsizing

Fast

High

2. Pay reductions

Fast

High

3. Demotions

Fast

High

4. Transfers

Fast

Moderate

5. Worksharing

Fast

Moderate

Strategy

Irwin/McGraw-Hill

© The McGraw-Hill Companies, Inc., 2000


Strategies for Reducing an
Expected Labor Surplus

5-6

Speed

Extent of
Human Suffering

1. Downsizing

Fast

High

2. Pay reductions

Fast

High

3. Demotions

Fast

High

4. Transfers

Fast

Moderate

5. Worksharing

Fast

Moderate

6. Retirement

Slow

Low

7. Natural attrition

Slow

Low

8. Retraining

Slow

Low

Strategy

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© The McGraw-Hill Companies, Inc., 2000


Strategies for Avoiding an
Expected Labor Shortage

5-7

Strategy

Speed

Reversibility

1. Overtime

Fast

High

2. Temporary employees

Fast

High

3. Outsourcing

Fast

High

4. Retrained transfers

Slow

High

5. Turnover reductions

Slow

Moderate

6. New external hires

Slow

Low

7. Technological
innovations

Slow

Low

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© The McGraw-Hill Companies, Inc., 2000


Reasons for Downsizing

5-8







Need to
to reduce
reduce labor
labor costs
costs
Need
Reducedneed
need for
forlabor
labor due
due to
to technology
technology
Reduced
Reducedneed
need for
forprofessional
professionalstaff
staff due
dueto
to
Reduced
mergers
mergers
Changesin
infacility
facilitylocations
locations
Changes

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© The McGraw-Hill Companies, Inc., 2000


Reasons for Downsizing NOT
Living Up to Expectations

5-9






Irwin/McGraw-Hill

Long-termnegative
negativeeffect
effectwhen
whenimproperly
improperly
Long-term
managed
managed
Lossof
ofvalued
valued human
human assets
assets

Loss
Survivorsbecome
becomenarrow-minded
narrow-minded and
and
Survivors
risk-adverse
risk-adverse

© The McGraw-Hill Companies, Inc., 2000


5-10

Advantages of
Employing Temporary Workers
Increases organizational
organizational flexibility
flexibility
Increases
Acts as
as aa source
source of
of permanent
permanent
 Acts
hires
hires
Reduces training
training and

and orientation
orientation
 Reduces
costs
costs
Brings objective
objective (outside)
(outside)
 Brings
perspective to
to firm
firm
perspective


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Disadvantages of
Employing Temporary Workers

5-11

Tension between
between “temps”
“temps” and
and
 Tension

full-timers
full-timers
Outsourcing can
can have
have long-term
long-term
 Outsourcing
negative consequences
consequences
negative

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© The McGraw-Hill Companies, Inc., 2000


Recruitment Activities

5-12

Are designed to affect :




Irwin/McGraw-Hill

Numberof
ofapplicants

applicants
Number
Typeof
ofapplicant
applicant
Type
Thoselikely
likelyto
toaccept
acceptposition
positionifif
Those
offered
offered

© The McGraw-Hill Companies, Inc., 2000


The Human Resource
Recruitment Process

5-13



Decisions are made in 3 areas :




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PersonnelPolicies
Policies
Personnel
RecruitmentSources
Sources
Recruitment
RecruiterCharacteristics
Characteristics
Recruiter

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Overview of the Individual Job ChoiceOrganizational Recruitment Process

5-14

JOB CHOICE
Vacancy
Vacancy
Characteristics
Characteristics

Personnel
Policies

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Applicant
Applicant
Characteristics
Characteristics

Recruiter
Characteristics

Recruitment
Sources

© The McGraw-Hill Companies, Inc., 2000


Personnel Policies

5-15



can affect the nature of Job Vacancy
characteristics
Specific features include :






Irwin/McGraw-Hill

Internalvs..
vs..External
Externalrecruiting
recruiting
Internal
opportunity for
foradvancement
advancement
 opportunity
MarketLeader
LeaderPay
Paystrategy
strategy
Market
Employment-at-Will policy
policy
Employment-at-Will
ImageAdvertising
Advertising
Image

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Recruitment Sources

5-16

Internalsources

sources
 Internal
faster,cheaper,
cheaper,more
morecertainty
certainty
 faster,
Externalsources
sources
 External
newideas
ideas&&approaches
approaches
 new
Directapplicants
applicants&&referrals
referrals
 Direct
self-selection,low
lowcost
cost
 self-selection,
Newspaperadvertising
advertising
 Newspaper
Publicemployment
employmentagencies
agencies
 Public
blue-collarjobs

jobs
 blue-collar
Privateemployment
employmentagencies
agencies
 Private
white-collarjobs
jobs
 white-collar
Colleges&&Universities
Universities
 Colleges
Electronicrecruiting
recruiting--the
theInternet
Internet
 Electronic
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Recruiter Characteristics

5-17







FunctionalArea
Area
Functional
HRspecialist
specialistv.
v.operating
operatingarea
area
 HR
Traits
Traits
warmth,informative
informative
 warmth,
Realism
Realism
realisticjob
jobpreview
preview
 realistic

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5-18

Steps to Enhance Recruiter
Impact




Irwin/McGraw-Hill

Provide timely
timely feedback
feedback
Provide
Avoid rude
rudebehavior
behavior
Avoid
Recruitin
inteams
teams
Recruit

© The McGraw-Hill Companies, Inc., 2000