Strategic human resource management ch05

1

Chapter 5

Personnel Planning and Recruiting


FIGURE 5–1

Steps in Recruitment and Selection Process

The recruitment and selection process is a series of hurdles aimed at selecting the best candidate for the job.

5–2


FIGURE 5–2

Linking Employer’s Strategy to Plans

5–3


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
5–4


Forecasting Personnel Needs
Forecasting
Tools

Trend Analysis

Ratio Analysis

Scatter Plotting

5–5


FIGURE 5–3
Determining the
Relationship
Between Hospital
Size and Number
of Nurses
Note: After fitting the

line, you can project
how many employees
you’ll need, given your
projected volume.

Size of Hospital
(Number
of Beds)

Number of
Registered
Nurses

200

240

300

260

400

470

500

500

600

620

700

660

800

820

900

860
5–6


Drawbacks to Traditional Forecasting
Techniques
• They focus on projections and historical relationships.
• 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 “bake in” the idea that staff increases are
inevitable.
• They validate and institutionalize present planning
processes and the usual ways of doing things.

5–7

Using Computers to Forecast Personnel
Requirements
• Computerized 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.
5–8


Forecasting the Supply of
Inside Candidates

Qualification
Inventories

Manual
Systems and
Replacement
Charts

Computerized
Information
Systems

5–9


The Matter of Privacy
• Ensuring the Security of HR Information
 Control of HR information through access matrices
 Access to records and employee privacy

• Legal Considerations
 The Federal Privacy Act of 1974
 New York Personal Privacy Act of 1985
 HIPAA
 Americans with Disabilities Act

5–10


FIGURE 5–5

Keeping Data Safe

Since intruders can strike from outside an organization or from within, HR
departments can help screen out potential identity thieves by following four
basic rules:
1.

Perform background checks on anyone who is going to have access
to personal information.

2.

If someone with access to personal information is out sick or on leave,
don’t hire a temporary employee to replace him or her. Instead,
bring in a trusted worker from another department.

3.

Perform random background checks such as random drug tests.
Just because someone passed five years ago doesn’t mean their
current situation is the same.

4.

Limit access to information such as SSNs, health information, and
other sensitive data to HR managers who require it to do their jobs.

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Forecasting Outside Candidate Supply

• Factors In Supply of Outside Candidates
 General economic conditions
 Expected unemployment rate

• Sources of Information
 Periodic forecasts in business publications
 Online economic projections
 U.S.

Department of Labor’s O*NET™

 Bureau
 Other

of Labor Statistics (BLS)

federal agencies and private sources
5–12


Effective Recruiting
• What Makes Recruiting a challenge
 Consistency of recruitment with strategic goals
 Types of jobs recruited and recruiting methods
 Nonrecruitment HR issues and policies
 Public image of the firm
 Employment laws

5–13

Effective Recruiting (cont’d)
• Advantages of Centralizing Recruitment
 Facilitates applying strategic priorities
 Reduces duplication of HR activities
 Reduces cost of new HR technologies
 Builds teams of HR experts
 Provides better measurement of HR performance
 Allows for sharing of applicant pools

5–14


TABLE 5–1

Selection Devices that Could be Used to Initially Screen Applicants

Selection Device

Validity for Predicting Job
Performance*

Construct
General mental ability tests

0.51

Conscientiousness tests

0.31

Integrity tests

0.41

Method
Work sample tests

0.54

Job knowledge tests

0.48

Structured interviews

0.51

Biographical data

0.35

Grade point average

0.23

Ratings of training and experience

0.11

Note: *Higher is better.

Source: Kevin Carlson et al., “Recruitment Evaluation: The Case for Assessing
the Quality of Applicants Attracted,” Personnel Psychology 55 (2002), p. 470.
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FIGURE 5–7

Recruiting Yield Pyramid

5–16


Internal Candidates: Hiring from Within
Advantages
• 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

Disadvantages

• Failed applicants become
discontented
• Time wasted interviewing
inside candidates who will
not be considered
• Inbreeding strengthens
tendency to maintain the
status quo

5–17


Finding Internal Candidates

Rehiring Former
Employees

Job Posting

Hiring from
Within

Succession
Planning (HRIS)

5–18


Succession Planning
•

•
•

Identify key needs
Develop inside candidates
Assess and choose

5–19


Outside Sources of Candidates
Locating Outside Candidates
1

Recruiting via the Internet

6

Executive Recruiters

2

Advertising

7

On Demand Recruiting
Services (ODRS)

3

Employment Agencies

8

College Recruiting

4

Temp Agencies and Alternative
Staffing

9

Referrals and Walk-ins

5

Offshoring/Outsourcing

5–20


Outside Sources of Candidates (cont’d)
• 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



Excessive number of unqualified applicants



Personal information privacy concerns of applicants
5–21


FIGURE 5–9

Ineffective and Effective Web Ads

Source: Workforce, December 2001, © Crain Communication, Inc. Reprinted with permission.
5–22


Advertising for Outside Candidates
• 1.The 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

• 2.Constructing the Ad
 Create attention, interest, desire, and action (AIDA).
 Create a positive impression of the firm.
5–23


FIGURE 5–10

Help Wanted Ad That Draws Attention

Source: The New York Times, May 13, 2007, Business p. 18.
5–24


Employment Agencies
Types of
Employment
Agencies

Public
Agencies

Nonprofit
Agencies

Private
Agencies

5–25