Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights res Part 2 Acquisition and Preparation of Human Resources
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Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Part 2
Acquisition and Preparation of Human Resources
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
ObjectivesAfter reading this chapter, you should be able to:
Chapter
1. Discuss how to align a company’s strategic direction with its human resource planning.
2. Determine the labor demand of workers in various job categories.
3. Discuss the advantages and disadvantages of various ways of eliminating a labor surplus and avoiding a labor shortage.
4. Describe the various recruitment policies organizations adopt to
make the job vacancies more attractive.
5. List the various sources from which job applicants can be drawn, their relative advantages and disadvantages, and methods for evaluating them.
6. Explain the recruiter’s role in the recruitment process, the limits the recruiter faces, and the opportunities available.
Human Resource Planning and Recruitment
5
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Stages in Human Resource Planning
5-2
Irwin/McGraw-Hill
Forecasting Labor Demand Labor Supply
Goal Setting and Strategic Planning Program Implementation and
Evaluation
Forecasting Labor Demand Labor Supply
Goal Setting and Strategic Planning Program Implementation and
Evaluation
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Forecasting Stage of Human Resource Planning
5-3
Irwin/McGraw-Hill
Determining Labor Demand derived from product / service demand 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
Determining Labor Demand derived from product / service demand 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
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Strategies for Reducing an Expected Labor Surplus
5-4
Irwin/McGraw-Hill
Strategy SpeedExtent of
Human Suffering1. Downsizing
2. Pay reductions
3. Demotions
Fast
Fast
Fast
High
High
High
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Strategies for Reducing an Expected Labor Surplus
5-5
Irwin/McGraw-Hill
Strategy SpeedExtent of
Human Suffering
1. Downsizing
2. Pay reductions
3. Demotions
4. Transfers
5. Worksharing
Fast
Fast
Fast
Fast
Fast
High
High
High
Moderate
Moderate
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Strategies for Reducing an Expected Labor Surplus
5-6
Irwin/McGraw-Hill
Strategy SpeedExtent of
Human Suffering1. Downsizing
2. Pay reductions
3. Demotions
4. Transfers
5. Worksharing
6. Retirement
7. Natural attrition
8. Retraining
Fast
Fast
Fast
Fast
Fast
Slow
Slow
Slow
High
High
High
Moderate
Moderate
Low
Low
Low
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Strategies for Avoiding an Expected Labor Shortage
5-7
Irwin/McGraw-Hill
Strategy Speed1. Overtime
2. Temporary employees
3. Outsourcing
4. Retrained transfers
5. Turnover reductions
6. New external hires
7. Technological innovations
Fast
Fast
Fast
Slow
Slow
Slow
Slow
High
High
High
High
Moderate
Low
Low
Reversibility
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Reasons for Downsizing5-8
Irwin/McGraw-Hill
Need to reduce labor costs Reduced need for labor due to technology Reduced need for professional staff due to
mergers Changes in facility locations
Need to reduce labor costs Reduced need for labor due to technology Reduced need for professional staff due to
mergers Changes in facility locations
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Reasons for Downsizing NOT Living Up to Expectations
5-9
Irwin/McGraw-Hill
Long-term negative effect when improperly managed
Loss of valued human assets Survivors become narrow-minded and
risk-adverse
Long-term negative effect when improperly managed
Loss of valued human assets Survivors become narrow-minded and
risk-adverse
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Advantages ofEmploying Temporary Workers
5-10
Irwin/McGraw-Hill
Increases organizational flexibility Acts as a source of permanent hires Reduces training and orientation
costs Brings objective (outside)
perspective to firm
Increases organizational flexibility Acts as a source of permanent hires Reduces training and orientation
costs Brings objective (outside)
perspective to firm
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Disadvantages ofEmploying Temporary Workers
5-11
Irwin/McGraw-Hill
Tension between “temps” and full-timers
Outsourcing can have long-term negative consequences
Tension between “temps” and full-timers
Outsourcing can have long-term negative consequences
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Recruitment Activities5-12
Irwin/McGraw-Hill
Number of applicants Type of applicant Those likely to accept position if
offered
Number of applicants Type of applicant Those likely to accept position if
offered
Are designed to affect :
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
The Human Resource Recruitment Process
5-13
Irwin/McGraw-Hill
Personnel Policies Recruitment Sources Recruiter Characteristics
Personnel Policies Recruitment Sources Recruiter Characteristics
Decisions are made in 3 areas :
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Overview of the Individual Job Choice-Organizational Recruitment Process
5-14
Irwin/McGraw-Hill
JOB CHOICE
Vacancy Characteristics
Vacancy Characteristics
PersonnelPolicies
RecruitmentSources
RecruiterCharacteristics
ApplicantCharacteristics
ApplicantCharacteristics
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Personnel Policies5-15
Irwin/McGraw-Hill
Internal vs. External recruiting opportunity for advancement
Market Leader Pay strategy Employment-at-Will policy Image Advertising
Internal vs. External recruiting opportunity for advancement
Market Leader Pay strategy Employment-at-Will policy Image Advertising
Specific features include :
Can affect the nature of Job Vacancy characteristics
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Recruitment Sources
Internal sources faster, cheaper, more
certainty External sources
new ideas & approaches Direct applicants &
referrals self-selection, low cost
Newspaper advertising
Internal sources faster, cheaper, more
certainty External sources
new ideas & approaches Direct applicants &
referrals self-selection, low cost
Newspaper advertising
5-16
Irwin/McGraw-Hill
Public employment agencies blue-collar jobs
Private employment agencies white-collar jobs
Colleges & Universities Electronic recruiting - the
Internet
Public employment agencies blue-collar jobs
Private employment agencies white-collar jobs
Colleges & Universities Electronic recruiting - the
Internet
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Recruiter Characteristics5-17
Irwin/McGraw-Hill
Functional Area HR specialist v. operating area
Traits warmth, informative
Realism realistic job preview
Functional Area HR specialist v. operating area
Traits warmth, informative
Realism realistic job preview
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Steps to Enhance Recruiter Impact
5-18
Irwin/McGraw-Hill
Provide timely feedback
Avoid rude behavior Recruit in teams
Provide timely feedback
Avoid rude behavior Recruit in teams
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