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Chapter 5 Summary - HRM

This document discusses human resource planning and recruitment. It covers the process of human resource planning which includes forecasting labor demand and supply, setting goals, and evaluating programs. It also discusses using strategies like downsizing, temporary workers, outsourcing to address surpluses or shortages. The recruitment process discusses attracting potential employees through policies, sources like referrals, colleges, and ensuring quality recruiters.

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96 views4 pages

Chapter 5 Summary - HRM

This document discusses human resource planning and recruitment. It covers the process of human resource planning which includes forecasting labor demand and supply, setting goals, and evaluating programs. It also discusses using strategies like downsizing, temporary workers, outsourcing to address surpluses or shortages. The recruitment process discusses attracting potential employees through policies, sources like referrals, colleges, and ensuring quality recruiters.

Uploaded by

Thy
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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CHAPTER 5: HUMAN RESOURCE PLANNING AND RECRUITMENT

A. The Human Resource Planning Process


I. Forecasting
- The first step in the planning process
- Primary goal: predict areas within the organization where there will be labor
shortages/surpluses
- Can use either statistical or judgmental methods
- Statistical methods: excellent for capturing historic trends, under the right conditions give
predictions that are much more precise than subjective judgment of a human forecaster
- Many important events occur in the labor market have no historical precedent, must rely on the
pooled subjective jdgment of experts
- Because of the complementary strengths and weaknesses of the two methods, companies that
engage in human resource planning use a balanced approach.
1. Determining labor demand
- Are developed around specific job categories/skills areas relevant to the organization’s state
- A leading indicator: an objective measure that accurately predicts future labor demand
- Statistical planning models are useful when there is a long, stable history that can be used to
reliably detect relationships among variables.
- These models have to be complemented by subjective judgments of people who have expertise
in the area
2. Determining labor supply
- Once a company has projected labor demand, it needs to get an indicator of the firm’s labor
supply.
- Determining the internal labor supply calls for a detailed analysis of how many people are
currently in various job categories (or who have specific skills) within the company.
- Modified to reflect changes in the near future caused by retirements, promotions, transfers,
voluntary turnover, and terminations.
- One type of statistical procedure that can be employed for this purpose involves transitional
matrices.
- Transitional matrices show the proportion of employees in different job categories at different
times
- Show how many people move from one state or job category to another
3. Determining labor surplus/shortage
- Can compare the figures whether will be a labor shortage/surplus for the respective job
categories
- The organization can determine what to do with potential problems
II. Goal setting and strategic planning
- The second step in human resource planning
- Purpose: focus attention on the problem and provide a benchmark for determining the relative
success of any programs
- Should be directly from the analysis of labor supply and demand
- Should include a specific figure for what should happen with the job category or skill area and a
specific timetable for when results should be achieved.
- Needs to choose from many different strategies for redressing labor shortages and surpluses

- Many options  critical stage


1. Downsizing
- The planned elimination of large numbers of personnel designed to enhance organizational
effectiveness.
- Many companies that are doing quite well still downsize their workforce regularly for strategic
reasons.
- 3 main reasons that organizations engage in downsizing:

+ Many organizations are looking to reduce costs, and because labor costs represent a big part of a
company’s total costs, this is an attractive place to start.

+ In some organizations, the introduction of new technologies or robots reduces the need for a large
number of employees.

+ Many firms downsized for economic reasons by changing the location where they do business.

2. Temporary workers and independent contractors


- Hiring temporary workers offers several other advantages:
 The use of temporary workers frees the firm from many administrative tasks and financial
burdens associated with being the “employer of record.”
 Small companies that cannot afford their own testing programs often get employees who have
been tested by a temporary agency.
 Many temporary agencies train employees before sending them to employers, which reduces
training costs and eases the transition for both the temporary worker and the company.
 Because the temporary worker has little experience in the host firm, the person brings an
objective perspective to the organization’s problems and procedures that is sometimes valuable.
3. Outsourcing, offshoring, and immigration
- Outsourcing: a logical choice when a firm simply does not have certain expertise and is not
willing to invest time and effort into developing it.
- Offshoring: a special case of outsourcing, in which the jobs that move leave one country and go
to another.
4. Altering pay and hours
- Companies facing a shortage of labor may be reluctant to hire new fulltime or part-time
employees.
- The firms may have the option of trying to garner more hours out of the existing labor force.
- In the face of a labor surplus, organizations can sometimes avoid layoffs if they can get their
employees to take pay cuts.
- Furlough: a cut in hours is targeted at salaried workers rather than hourly workers
III. Program implementation and evaluation
- Are put into practice in the program-implementation stage
- Make sure some individual is held accountable for achieving the stated goals and has the
necessary authority and resources to accomplish this goal.
- Important to have regular progress reports on the implementation
- Final step: evaluate the results
- Consists of comparing results to goals, as well as an “after-action-review” of what worked or
failed to work when it came to accomplishing goals.
IV. The special case of affirmative action planning
B. The Human Resource Recruitment Process
- Any practice or activity carried on by the organization with the primary purpose of identifying
and attracting potential employees.

I. Personnel policies
- Internal vs external recruiting: job security
- Lead-the-market pay strategies
- Employment-at-will policies
- Image advertising
- Extrinsic and intrinsic rewards
II. Recruitment sources
- Internal vs external sources
- Direct applicants and referrals
- Electronic recruiting
- Public and private employment agencies
- Colleges and universities
- Evaluating the quality of a source
III. Recruiters
- Recruiter’s fuctional area
- Recruiter’s traits
- Recruiter’s realism
- Enhancing recruiter impact

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