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 Human Resource Planning and Recruitment Copyright © 2015 McGraw­Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw­Hill Education 5­2 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 5­3 Downsizing Downsizing - planned elimination of large numbers of personnel to enhance organizational competitiveness Long-term effects of an improperly managed downsizing effort can be negative Reasons for Downsizing: reduce labor costs technological changes reduce need for labor* mergers and acquisitions reduce bureaucratic overhead organizations change location of where they business 5­4 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 5­5 Employing Temporary Workers Hiring temporary workers helps eliminate a labor shortage and affords flexibility needed to operate efficiently during demand swings 3 Advantages: Temporary workers free a company from administrative tasks and financial burdens Temporary workers are often times tested and trained by a temporary agency Many temporary workers brings an objective perspective and experience 5­6 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 5­7 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 5­8 HR Recruitment Process Job Choice Vacancy Characteristics Job Choice Applicant Characteristics Recruitment Influences 5­9 Recruitment Sources JOBS Newspaper Advertising large volume, low quality recruits 5­10 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 5­11 ... Temporary workers free a company from administrative tasks and financial burdens Temporary workers are often times tested and trained by a temporary agency Many temporary workers brings an objective... Influences 5­9 Recruitment Sources JOBS Newspaper Advertising large volume, low quality recruits 5­10 Summary  HR planning uses labor supply and demand forecasts to anticipate labor shortages and surpluses... incentive programs 5­5 Employing Temporary Workers Hiring temporary workers helps eliminate a labor shortage and affords flexibility needed to operate efficiently during demand swings 3 Advantages: