Human resource management gaining a competitive advantage 2014 chapter 5

Chapter 05Human Resource Planning and Recruitment Human Resource Management: Gaining a Competitive Advantage... Forecasting Stage of HR Planning external in nature  Determine Labor Su

Chapter 05

Human Resource Planning and

Recruitment Human Resource Management:

Gaining a Competitive Advantage

Forecasting Stage of HR Planning

 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

 Determine Labor Surplus or Shortage

Options for Reducing Expected

Labor Surplus

Option Speed Human Suffering

Fast Fast Fast Fast Fast Slow Slow Slow Slow

High High High Moderate Moderate Low

Low Low Low

1 Downsizing

2 Pay reductions

3 Demotions

4 Transfers

5 Work sharing

6 Hiring freeze

7 Natural attrition

8 Early retirement

9 Retraining

Options for Avoiding Expected

Labor Surplus

Fast Fast Fast Slow Slow Slow Slow

Downsizing -planned elimination of large numbers of

personnel to enhance organizational competitiveness

4 Reasons for Downsizing:

overhead

business

* Economy wide, capital spending ratio increased over 300% between

1990-Possible Negative Effects of Downsizing

Long-term effects of an improperly managed

downsizing effort can be negative

innovation

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

shortage and affords flexibility needed to operate

efficiently during demand swings

3 Advantages:

administrative tasks and financial burdens

temporary agency

sending them to employers

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

should not be outsourced

Recruitment Sources

Newspaper Advertising

-JOBS