Lecture Human resource management: Gaining a competitive advantage (9/e) – Chapter 5: Human resource planning and recruitment

Chapter 5

Human Resource
Planning and Recruitment
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Forecasting Stage of HR Planning
Determine Labor Demand
derived from product/service demanded
external in nature

Determine Labor Supply
Internal movements caused by transfers, promotions,
turnover, retirements, etc.
transitional matrices identify employee movements
in different job categories over time to chart historical
trends in company’s labor supply
useful for AA / EEO purposes

Determine Labor Surplus or Shortage
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Downsizing
Downsizing - planned elimination of large numbers of
personnel to enhance organizational competitiveness.

Long-term effects of an improperly managed downsizing
effort can be negative.
4 Reasons for Downsizing:
1. reduce labor costs
2. technological changes reduce need for labor*
3. mergers and acquisitions reduce bureaucratic overhead
4. organizations change location of where they do business

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Early Retirement Programs
 The average age of U.S. workforce is
increasing.

 Baby boomers are not retiring early due to:





improved health
fear that Social Security will be cut
mandatory retirement is outlawed
collapse of the financial and housing markets made it
economically unviable to retire

 Many employers try voluntary attrition among

older workers through early retirement incentive

programs.
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Employing Temporary Workers
Hiring temporary workers helps eliminate a
labor shortage and affords flexibility needed to
operate efficiently during demand swings.

3 Advantages:
1. Temporary workers free a company from
administrative tasks and financial burdens.
2. Temporary workers are often times tested and
trained by a temporary agency.
3. Many temporary workers brings an objective
perspective and experience.
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Outsourcing and Offshoring
Outsourcing uses an outside organization for a
broad set of services.

Offshoring is outsourcing where jobs leave one
country and go to another.

To help ensure the success of outsourcing:
 Choose an established, large outsourcing vendor.
 Jobs that are proprietary or require tight security
should not be outsourced.

 Start small and monitor constantly.

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Altering Pay and Hours
Garner more hours from current employees
Cut salaries
Reduce contributions to 401(k) plans
Reduce number of hours of all workers.

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HR Recruitment Process
Job Choice

Vacancy
Characteristics

Job
Choice

Applicant
Characteristics

Recruitment Influences
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Recruitment Sources

JOBS

Newspaper Advertising large volume, low quality
recruits

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Summary
 HR planning uses labor supply and demand
forecasts to anticipate labor shortages and
surpluses to enhance organization’s success
and reduce human suffering.

 HR recruiting creates an applicant pool should
a labor shortage occur.

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