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

Chapter 5 - Human resource planning and recruitment. After reading this chapter, you should be able to: Discuss how to align a company''s strategic direction with its human resource planning; determine the labor demand for workers in various job categories; discuss the advantages and disadvantages of various ways of eliminating a labor surplus and avoiding a labor shortage;...

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

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

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.

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

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

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.

HR Recruitment Process

Job Choice

Recruitment Influences

Job Choice

Applicant Characteristics Vacancy

Characteristics

Recruitment Sources

Newspaper Advertising

-JOBS

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.