Chapter 5 HR Planning and Recruiting Summary This chapter describes the process an organization uses to plan and recruit so that there will be adequate human resources. The steps described are linking business strategies to future needs, forecasting labor demand and supply, determining in what positions there will exist a labor shortage or surplus, setting goals regarding future human resource needs, and identifying strategies to solve the problems of shortages and/or surpluses. The ability to recruit successfully is described as depending upon personnel policies such as job posting (an internal strategy), level of pay in comparison to the market, and the extent of job security. The chapter describes sources for recruiting as well as the use of yield ratios and costs to evaluate the effectiveness of sources. Lastly, the role of the recruiter and how to enhance his or her impact on the candidate is presented. Learning Objectives After studying this chapter, the student should be able to: 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 or avoiding a labor shortage. 4. Describe the various recruitment policies organizations adopt to make job vacancies more attractive. 5. List the various sources from which job applicants can be drawn, their relative advantages and disadvantages, and the methods for evaluating them. 6. Explain the recruiter’s role in the recruitment process, the limits the recruiter faces, and the opportunities available. Below please find specific terms/concepts that you definitely want to know before you open Chapter 5 Quiz for completion Leading Indicator of labor demand Transition probability matrix “Tight” and “Loose” labor markets – (remember, HR defines these from the employer’s perspective, which is opposite to an applicant’s perspective) Downsizing, Outsourcing, Offshoring Affirmative Action Planning Workforce Utilization Review Employment at will doctrine “due process” policies What are the advantages/disadvantages of recruiting job applicants from within the firm? How about from the external labor force? Are anti-poaching agreements legal among employers competing for the same external labor supply? What does the Social Security Act of 1935 require of people receiving unemployment compensation? How do we evaluate the quality of varied recruitment sources?