5 Human Resource Planning and Recruitment

Chapter
5
Part Two: Acquisition and
Preparation of Human Resources
Chapter 5 - Human Resource Planning and Recruitment

Chapter 6 - Selection and Placement
Chapter 7 - Training
Chapter
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.
Chapter
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
McGraw-Hill/Irwin 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
McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved

Overview of the Human Resource
Planning Process
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
Determining Labor Surplus or Shortage

A Hypothetical Transitional Matrix
for an Auto Parts Manufacturer
2023
2020
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

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.
Early Retirement Programs
 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.

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

Outsourcing and Offshoring
 Outsourcing 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:
 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.
Affirmative Action Planning
 Itis 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.

Human Resource Recruitment
is defined as any practice or activity carried on by

the organization with the primary purpose of
identifying and attracting potential employees.
The Human Resource Recruitment
Process
Job Choice
Vacancy Applicant
Characteristics Job
Characteristics
Choice
Personnel Recruiter Traits Recruitment

Policies and Behaviors Sources
Recruitment Influences
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 advertising
Recruitment Sources
Colleges and Universities -

campus placement services
Internal Sources - Public & Private
Faster, cheaper, Employment Agencies -
more certainty headhunters, can be
expensive
External Sources - JOBS

JOBS
New ideas and
approaches Electronic Recruiting -
the Internet
Direct Applicants
and Referrals - Newspaper Advertising -
self selection, large volume, low
low cost quality recruits

Recruiters
Functional Area
 HR- versus operating area-
specialist
Traits
 warm and informative
Realism
 realistic job preview, honesty

Steps to Enhance Recruiter Impact
1. Provide timely feedback

1. Provide timely feedback
2. Avoid rude behavior
2. Avoid rude behavior
3. 3.Recruit
Recruitin
in teams
teams

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Chapter

Chapter 5 - Human Resource Planning and Recruitment

Human Resource Planning and

Discuss how to align a company’s strategic direction

Human Resource Planning and

Describe the various recruitment policies that

Goal Setting and Strategic

McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved

Determining Labor Supply

McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved

 mergers and acquisitions reduce bureaucratic overhead

 organizations choose to change the location of where

McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved

 mandatory retirement is outlawed

 Many employers try to induce

McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved

McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved

 Jobs that are proprietary or require tight security should not be

McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved

is defined as any practice or activity carried on by

Personnel Recruiter Traits Recruitment

Colleges and Universities -

External Sources - JOBS

McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved

McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved

1. Provide timely feedback

McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved

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