chapter 005 planning for & recruiting human resources
TRANSCRIPT
![Page 1: Chapter 005 Planning For & Recruiting Human Resources](https://reader036.vdocuments.us/reader036/viewer/2022081419/586b65b91a28ab42788b5a74/html5/thumbnails/1.jpg)
Copyright © 2014 by the McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin
FUNDAMEN
TALS OF
HUMAN RESOURCE
MANAGEMENT
5TH ED
ITION
BY R.A. N
OE, J.R. H
OLLENBECK, B
.
GERHART,
AND P.M. W
RIGHT
CHAPTER 5 PL
ANNING FOR
AND RECRUITING HUMAN
RESOURCES
![Page 2: Chapter 005 Planning For & Recruiting Human Resources](https://reader036.vdocuments.us/reader036/viewer/2022081419/586b65b91a28ab42788b5a74/html5/thumbnails/2.jpg)
5-2
Need to Know
1. How to plan for HR needed to carry out organization’s strategy.
2. Labor demand for workers in various job categories.3. Advantages and disadvantages of ways to eliminate a labor
surplus and avoid a labor shortage.4. Recruitment policies organizations use to make job vacancies
more attractive.5. Sources of job applicants.6. Recruiter’s role in recruitment process- limits and
opportunities.
![Page 3: Chapter 005 Planning For & Recruiting Human Resources](https://reader036.vdocuments.us/reader036/viewer/2022081419/586b65b91a28ab42788b5a74/html5/thumbnails/3.jpg)
5-3
Process of HR
• Organizations should carry out HR planning so as to meet business objectives and gain a competitive advantage over competitors.
• HR planning compares the present state of the organization with its future goals
• Then identifies what changes it must make in its HR to meet those goals
![Page 4: Chapter 005 Planning For & Recruiting Human Resources](https://reader036.vdocuments.us/reader036/viewer/2022081419/586b65b91a28ab42788b5a74/html5/thumbnails/4.jpg)
5-4
Figure 5.1: Overview of HR Planning Process
![Page 5: Chapter 005 Planning For & Recruiting Human Resources](https://reader036.vdocuments.us/reader036/viewer/2022081419/586b65b91a28ab42788b5a74/html5/thumbnails/5.jpg)
Forecasting
Forecasting: attempts to determine supply and demand for various types of HR to predict areas within the organization where there will be labor shortages or surpluses.
Forecasting steps:1. Forecast labor demand Determine labor supply 2. Determine labor surplus or shortage
5-5
![Page 6: Chapter 005 Planning For & Recruiting Human Resources](https://reader036.vdocuments.us/reader036/viewer/2022081419/586b65b91a28ab42788b5a74/html5/thumbnails/6.jpg)
Forecasting Labor Demand
•Constructing and applying statistical models that predict labor demand for next year, given relatively objective statistics from previous year.
•Objective measures that accurately predict future labor demand.
Trend Analysis Leading Indicators
5-6
![Page 7: Chapter 005 Planning For & Recruiting Human Resources](https://reader036.vdocuments.us/reader036/viewer/2022081419/586b65b91a28ab42788b5a74/html5/thumbnails/7.jpg)
Determine Labor Supply
•Transitional matrix: a chart that lists job categories held in one period and shows proportion of employees in each of those job categories in a future period.
It answers two questions:
1. “Where did people in each job category go?”
2. “Where did people now in each job category come from?”
5-7
![Page 8: Chapter 005 Planning For & Recruiting Human Resources](https://reader036.vdocuments.us/reader036/viewer/2022081419/586b65b91a28ab42788b5a74/html5/thumbnails/8.jpg)
5-8
Table 5.1: Transitional Matrix –Auto Parts Manufacturer Example
![Page 9: Chapter 005 Planning For & Recruiting Human Resources](https://reader036.vdocuments.us/reader036/viewer/2022081419/586b65b91a28ab42788b5a74/html5/thumbnails/9.jpg)
5-9
Determine Labor Surplus or Shortage
• Based on forecasts for labor demand and supply, planner can compare figures to determine whether there will be a shortage or surplus of labor for each job category.
• Determining expected shortages and surpluses allows the organization to plan how to address these challenges.
![Page 10: Chapter 005 Planning For & Recruiting Human Resources](https://reader036.vdocuments.us/reader036/viewer/2022081419/586b65b91a28ab42788b5a74/html5/thumbnails/10.jpg)
5-10
Goal Setting and Strategic Planning
• Purpose of setting specific numerical goals is to focus attention on the problem and provide a basis for measuring the organization’s success in addressing labor shortages and surpluses.
• Goals should come directly from analysis of supply and demand.
• For each goal, organization must choose one or more HR strategies.
• Organizations should retain and attract employees who provide a core competency (what makes it better than competitors)
![Page 11: Chapter 005 Planning For & Recruiting Human Resources](https://reader036.vdocuments.us/reader036/viewer/2022081419/586b65b91a28ab42788b5a74/html5/thumbnails/11.jpg)
5-11
Options for Reducing a Surplus
![Page 12: Chapter 005 Planning For & Recruiting Human Resources](https://reader036.vdocuments.us/reader036/viewer/2022081419/586b65b91a28ab42788b5a74/html5/thumbnails/12.jpg)
5-12
As the average age of many workers in skilled trades grows, the coming demand for workers in many trades is expected to outstrip supply in the United States. There is a potential for employers in some areas to experience a labor shortage because of this.
![Page 13: Chapter 005 Planning For & Recruiting Human Resources](https://reader036.vdocuments.us/reader036/viewer/2022081419/586b65b91a28ab42788b5a74/html5/thumbnails/13.jpg)
5-13
Options for Avoiding a Shortage
![Page 14: Chapter 005 Planning For & Recruiting Human Resources](https://reader036.vdocuments.us/reader036/viewer/2022081419/586b65b91a28ab42788b5a74/html5/thumbnails/14.jpg)
5-14
Table 5.2: HR Strategies for Addressing a Labor Shortage or Surplus
![Page 15: Chapter 005 Planning For & Recruiting Human Resources](https://reader036.vdocuments.us/reader036/viewer/2022081419/586b65b91a28ab42788b5a74/html5/thumbnails/15.jpg)
5-15
Test Your Knowledge
• A public accounting firm of 250 employees realizes they have a surplus of 15 support personnel (not auditors). What should they do?A. Hire temporary workersB. Offer early retirementC. Downsize people in those positionsD. Wait for attrition and implement a hiring
freeze for those positions
![Page 16: Chapter 005 Planning For & Recruiting Human Resources](https://reader036.vdocuments.us/reader036/viewer/2022081419/586b65b91a28ab42788b5a74/html5/thumbnails/16.jpg)
5-16
Implement and Evaluate HR Plan
• When implementing the HR strategy, organizations must hold individuals accountable for achieving goals.
• They must also have authority and resources needed to accomplish those goals.
• Regular progress reports should be issued.• Evaluation of results should look at tactual
numbers and identify which parts of planning process contributed to success or failure.
![Page 17: Chapter 005 Planning For & Recruiting Human Resources](https://reader036.vdocuments.us/reader036/viewer/2022081419/586b65b91a28ab42788b5a74/html5/thumbnails/17.jpg)
Apply HR Planning to Affirmative Action•Workforce Utilization Review: comparison of employees in protected groups with proportion that each group represents in relevant labor market.•Steps in a workforce utilization review are identical to steps in HR planning process.
•Organization must assess current utilization patterns, then forecast how they are likely to change in near future.• If analyses forecast underutilization of certain groups, then goals and a plan will be established.
5-17
![Page 18: Chapter 005 Planning For & Recruiting Human Resources](https://reader036.vdocuments.us/reader036/viewer/2022081419/586b65b91a28ab42788b5a74/html5/thumbnails/18.jpg)
5-18
Recruit HR
• Role of HR recruitment is to build a supply of potential new hires that the organization can draw on if need arises.
• Recruiting: any activity carried on by the organization with the primary purpose of identifying and attracting potential employees.
![Page 19: Chapter 005 Planning For & Recruiting Human Resources](https://reader036.vdocuments.us/reader036/viewer/2022081419/586b65b91a28ab42788b5a74/html5/thumbnails/19.jpg)
5-19
Figure 5.2: Three Aspects of Recruiting
![Page 20: Chapter 005 Planning For & Recruiting Human Resources](https://reader036.vdocuments.us/reader036/viewer/2022081419/586b65b91a28ab42788b5a74/html5/thumbnails/20.jpg)
Personnel Policies
Several personnel policies are especially relevant to recruitment:
5-20
![Page 21: Chapter 005 Planning For & Recruiting Human Resources](https://reader036.vdocuments.us/reader036/viewer/2022081419/586b65b91a28ab42788b5a74/html5/thumbnails/21.jpg)
Image advertising, such as in this campaign to recruit nurses, promotes a whole profession or organization as opposed to a specific job opening.This ad is designed to create a positive impression of the profession, which is now facing a shortage of workers.
5-21
![Page 22: Chapter 005 Planning For & Recruiting Human Resources](https://reader036.vdocuments.us/reader036/viewer/2022081419/586b65b91a28ab42788b5a74/html5/thumbnails/22.jpg)
5-22
Recruitment Sources: Internal Sources
Job Posting: process of communicating information about a job vacancy:
– On company bulletin boards– In employee publications– On corporate intranets– Anywhere else organization communicates
with employees
![Page 23: Chapter 005 Planning For & Recruiting Human Resources](https://reader036.vdocuments.us/reader036/viewer/2022081419/586b65b91a28ab42788b5a74/html5/thumbnails/23.jpg)
5-23
Advantages of Internal Sources
1. It generates applicants who are well known to the organization.
2. These applicants are relatively knowledgeable about the organization’s vacancies, which minimizes the possibility of unrealistic job expectations.
3. Filling vacancies through internal recruiting is generally cheaper and faster than looking outside the organization.
![Page 24: Chapter 005 Planning For & Recruiting Human Resources](https://reader036.vdocuments.us/reader036/viewer/2022081419/586b65b91a28ab42788b5a74/html5/thumbnails/24.jpg)
5-24
4 in 10 Positions Are Filled with Insiders
![Page 25: Chapter 005 Planning For & Recruiting Human Resources](https://reader036.vdocuments.us/reader036/viewer/2022081419/586b65b91a28ab42788b5a74/html5/thumbnails/25.jpg)
Recruitment Sources: External Sources
5-25
![Page 26: Chapter 005 Planning For & Recruiting Human Resources](https://reader036.vdocuments.us/reader036/viewer/2022081419/586b65b91a28ab42788b5a74/html5/thumbnails/26.jpg)
5-26
Figure 5.3: External Recruiting Sources – Percentage of Employees Hired
![Page 27: Chapter 005 Planning For & Recruiting Human Resources](https://reader036.vdocuments.us/reader036/viewer/2022081419/586b65b91a28ab42788b5a74/html5/thumbnails/27.jpg)
Evaluating the Quality of a Source
•A ratio that expresses percentage of applicants who successfully move from one stage of the recruitment and selection process to the next.•By comparing yield ratios of different recruitment sources, we can determine which source is best or most efficient for type of vacancy.
•Find cost of using a particular recruitment source for a particular type of vacancy.•Divide that cost by number of people hired to fill that type of vacancy.•A low cost per hire means the recruitment source is efficient.
Yield Ratios Cost Per Hire
5-27
![Page 28: Chapter 005 Planning For & Recruiting Human Resources](https://reader036.vdocuments.us/reader036/viewer/2022081419/586b65b91a28ab42788b5a74/html5/thumbnails/28.jpg)
5-28
Table 5.3: Results of a Hypothetical Recruiting Effort
![Page 29: Chapter 005 Planning For & Recruiting Human Resources](https://reader036.vdocuments.us/reader036/viewer/2022081419/586b65b91a28ab42788b5a74/html5/thumbnails/29.jpg)
5-29
Recruiter Traits and Behaviors
![Page 30: Chapter 005 Planning For & Recruiting Human Resources](https://reader036.vdocuments.us/reader036/viewer/2022081419/586b65b91a28ab42788b5a74/html5/thumbnails/30.jpg)
5-30
Recruiter Characteristics and Behavior
True = A False = B• Applicants respond more positively when the recruiter
is an HR specialist than line managers or incumbents.• Applicants respond positively to recruiters whom are
warm and informative• Personnel policies are more important than the
recruiter when deciding whether or not to take a job.• Realistic job previews should highlight the positive
characteristics of the job rather than the negative.
![Page 31: Chapter 005 Planning For & Recruiting Human Resources](https://reader036.vdocuments.us/reader036/viewer/2022081419/586b65b91a28ab42788b5a74/html5/thumbnails/31.jpg)
5-31
Figure 5.4: Recruits Who Were Offended by Recruiters
![Page 32: Chapter 005 Planning For & Recruiting Human Resources](https://reader036.vdocuments.us/reader036/viewer/2022081419/586b65b91a28ab42788b5a74/html5/thumbnails/32.jpg)
5-32
Enhance Recruiter’s Impact
• Recruiters should provide timely feedback and avoid offensive behavior.
• They should avoid behaving in ways that might convey the wrong impression about the organization.
• Organization can recruit with teams rather than individual recruiters.
![Page 33: Chapter 005 Planning For & Recruiting Human Resources](https://reader036.vdocuments.us/reader036/viewer/2022081419/586b65b91a28ab42788b5a74/html5/thumbnails/33.jpg)
5-33
Summary
• First step in HR planning is personnel forecasting. Through trend analysis and good judgment, planner determines supply and demand for HR.
• Next step - determine labor demand for workers in various job categories.
• Analysis of a transitional matrix helps identify which job categories can be filled internally and where high turnover is likely.
![Page 34: Chapter 005 Planning For & Recruiting Human Resources](https://reader036.vdocuments.us/reader036/viewer/2022081419/586b65b91a28ab42788b5a74/html5/thumbnails/34.jpg)
5-34
Summary
To reduce a surplus, downsizing, pay reductions, and demotions deliver fast results but at a high cost in human suffering that may hurt surviving employees’ motivation and future recruiting.
To avoid a labor shortage, requiring overtime is easiest and fastest strategy.
Internal recruiting generally makes job vacancies more attractive because candidates see opportunities for growth and advancement.
![Page 35: Chapter 005 Planning For & Recruiting Human Resources](https://reader036.vdocuments.us/reader036/viewer/2022081419/586b65b91a28ab42788b5a74/html5/thumbnails/35.jpg)
5-35
Summary
Lead-the-market pay strategies make jobs economically desirable.
Internal sources are usually not sufficient for all of an organization’s labor needs.
Through their behavior and other characteristics, recruiters influence the nature of the job vacancy and kinds of applicants generated.