1
Chapter
5
Part Two: Acquisition and
Preparation of Human Resources
McGraw-Hill/Irwin
Chapter 5 - Human Resource Planning and Recruitment
Chapter 6 - Selection and Placement
Chapter 7 - Training
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.
Chapter
5
McGraw-Hill/Irwin
Human Resource Planning and
Recruitment
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.
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.
Chapter
5
McGraw-Hill/Irwin
Human Resource Planning and
Recruitment
Describe
the various recruitment policies that
organizations adopt to make job vacancies more attractive.
List the various sources from which job applicants can be
drawn, their relative advantages and disadvantages, and the
methods for evaluating them.
Explain the recruiter’s role in the recruitment process, the
limits the recruiter faces, and the opportunities available.
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.
Stages in Human Resource Planning
Forecasting
 Labor
Demand
 Labor Supply
Goal
Setting and Strategic
Planning
Program Implementation and
Evaluation
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Forecasting Stage of Human
Resource Planning
Determining
Labor Demand
 derived
from product/service demanded
 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
McGraw-Hill/Irwin
Labor Surplus or Shortage
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Strategies for Reducing an Expected
Labor Surplus
Option
1.
2.
3.
4.
5.
6.
7.
8.
9.
Downsizing
Pay reductions
Demotions
Transfers
Work sharing
Hiring freeze
Natural attrition
Early retirement
Retraining
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Speed
Fast
Fast
Fast
Fast
Fast
Slow
Slow
Slow
Slow
Extent of Human Suffering
High
High
High
Moderate
Moderate
Low
Low
Low
Low
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Strategies for Reducing an Expected
Labor Surplus
Option
1. Overtime
2. Temporary
employees
3. Outsourcing
4. Retrained transfers
5. Turnover reductions
6. New external hires
7. Technological
innovation
McGraw-Hill/Irwin
Speed
Extent of Human Suffering
Fast
Fast
High
High
Fast
Slow
Slow
Slow
Slow
High
High
Moderate
Low
Low
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Downsizing
Downsizing
is the planned elimination of large
numbers of personnel designed to enhance
organizational competitiveness.
Reasons for downsizing include:
 need
to reduce labor costs
 technological changes reduce need for labor
 mergers and acquisitions reduce bureaucratic overhead
 organizations choose to change the location of where
they do business
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Effects of Downsizing
Studies
show that firms that announce a
downsizing campaign show worse, rather than
better financial performance.
Reasons include:
 The
long-term effects of an improperly managed
downsizing effort can be negative.
 Many downsizing campaigns let go of people who turn
out to be irreplaceable assets.
 Employees who survive the staff purges often become
narrow-minded, self-absorbed, and risk-averse.
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Early Retirement Programs
 The
average age of the U.S. workforce is increasing.
 Baby boomers are not retiring early for several reasons:
 improved
health of older people
 a fear that Social Security will be cut
 mandatory retirement is outlawed
 Many
employers try to induce
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.
 Temporary employment affords firms the flexibility needed
to operate efficiently in the face of swings in demand.
 Other advantages include:
 temporary
workers free a firm from many administrative tasks
and financial burdens
 temporary workers are often times tested by a temporary
agency
 many temporary agencies train employees before sending
them to employees
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Outsourcing and Offshoring
is an organization’s use of an outside
organization for a broad set of services.
 Offshoring is a special case of outsourcing where the jobs
that move actually leave one country and go to another.
 To help ensure the success of outsourcing:
 Outsourcing
 outsource
only those jobs that are repetitive, predictable, and
easily trained.
 Choose an outsourcing vendor that is large and established.
 Jobs that are proprietary or require tight security should not be
outsourced.
 It is a good idea to start small and monitor constantly.
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Affirmative Action Planning
 It
is important to plan for various subgroups within a labor
force.
 A comparison of the proportion of workers in protected
subgroups with the proportion that each subgroup
represents is called a workforce utilization review.
 The steps required to execute an affirmative action plan are
identical to the steps in the generic planning process
discussed earlier.
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The Human Resource Recruitment
Process
Job Choice
Vacancy
Characteristics
Personnel
Policies
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Applicant
Characteristics
Job
Choice
Recruiter Traits
and Behaviors
Recruitment
Sources
Recruitment Influences
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Personnel Policies
 Characteristics
of the vacancy are more important than
recruiters or recruiting sources.
 Personnel Policies vary:
 Internal

versus External recruiting
opportunity for advancement
 Market
leader pay strategy
 Employment-at-will policies- either party can terminate the
relationship at any time

Due-process policy - employees can appeal a termination
decision
 Image
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advertising
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Recruitment Sources
Colleges and Universities -
Internal Sources -
campus placement services
Public & Private
Employment Agencies -
Faster, cheaper,
more certainty
External Sources New ideas and
approaches
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Direct Applicants
and Referrals self selection,
low cost
headhunters, can be
expensive
JOBS
JOBS
Electronic Recruiting the Internet
Newspaper Advertising large volume, low
quality recruits
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Recruiters
Functional Area
 HR-
versus operating areaspecialist
Traits
 warm
and informative
Realism
 realistic
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job preview, honesty
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Steps to Enhance Recruiter Impact
McGraw-Hill/Irwin
1. Provide timely feedback
1. Provide timely feedback
2. Avoid rude behavior
2. Avoid rude behavior
3. 3.Recruit
in teams
Recruit in teams
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.