Lecture5&6 - Human Resource Human Management...

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Unformatted text preview: Human Resource Human Management Management 1 ELEVENTH EDITION G A R Y D E S S L E R Part 2 | Recruitment and Placement Chapter 4 Personnel Planning and Recruiting The Recruitment and Selection Process 1. Decide what positions to fill through personnel planning Decide what and forecasting. and 2. Build a candidate pool by recruiting internal or external Build candidate recruiting candidates. candidates 3. Have candidates complete application forms and Have application undergo initial screening interviews. screening 4. Use selection tools to identify viable candidates. Use selection identify 5. Decide who to make an offer to, by having the Decide who offer supervisor and others interview the candidates. interview 5–2 FIGURE 4–1 Steps in Recruitment and Selection Process The recruitment and selection process is a series of hurdles aimed at selecting the best candidate for the job. 5–3 Planning and Forecasting • Employment or Personnel Planning The process of deciding what positions the firm will have to fill, The what fill and how to fill them. how fill Systematic process of matching the internal and external Systematic supply of people with job openings anticipated in the supply openings organization over a specified period of time organization • Succession Planning The process of deciding how to fill the company’s most The fill important executive jobs. important • What to Forecast? Overall personnel needs (Requirements forecast) Overall personnel Comparing requirements and availability Comparing requirements Forecasting HR available Forecasting available The supply of inside candidates The supply of outside candidates 5–4 Strategic Planning Human Resource Planning/Forecasting Forecasting HR requirements Comparing requirements and availability Forecasting HR availability Demand = Supply Surplus of workers Shortage of workers Recruitment No Action Restricted hiring, reduced hours, early retirement, layoffs, downsizing Selection 5–5 Forecasting HR requirements • Changes in the environment, organization, and Changes workforce workforce Environment (External challenges): Environment Difficult to predict in the short run and sometimes impossible Difficult to estimate in the long run. Examples include inflation, unemployment, and changing workforce pattern, etc. unemployment, Social, political, and legal challenges. Examples include Social, Equal Employment Opportunity, retirement age, worker demographics, war, etc. demographics, Technology change. Examples include use of robots, other Technology forms of computerized automation forms Competitors have forced many firms, around the world, Competitors especially in North America, to reduce their workforces in order to regain the strategic initiative by means of consolidating operations and lowering labor costs consolidating 5–6 Forecasting HR requirements • Changes in the environment, organization, and workforce Organizational decisions The strategic plan commits the firm to long-range objectives, such The as growth rates and new products, markets, or services. These objectives dictate the number and types of employees need in the future future To achieve long-term objectives, HR specialists must develop longrange HR plans that accommodate the strategic plan In the short run, planners find that strategic plans become In operational in the form of budgets. Budget increases or cuts are the most significant short-run influence on HR needs the Sales and production forecasts are less exact than budgets but Sales may provide even quicker notice of short-run changes in the demand for human resources demand New ventures mean changing HR demand. But new ventures may New begin through acquisitions and mergers cause an immediate revision of HT demands and can lead to new organization and job designs designs 5–7 Forecasting HR requirements • Changes in the environment, organization, and Changes workforce workforce Workforce factors Retirement, Retirement, resignations, terminations, deaths, and leaves of absence, etc. and 5–8 Forecasting Personnel Needs Forecasting Tools Trend Analysis Ratio Analysis Scatter Plotting 5–9 Forecasting Personnel Needs • Trend analysis Study of a firm’s past employment needs over a Study period of years to predict future needs period • Ratio analysis A forecasting technique for determining future staff forecasting needs by using ratios between some causal factor, e.g. sales volume, and number of employees needed, e.g. number of salespeople needed, • Scatter Plot A graphic method used to help identify the graphic relationship between two variables relationship 5–10 FIGURE 4–3 Determining the Relationship Between Hospital Size and Number of Nurses Note: After fitting the line, you can project how many employees you’ll need, given your projected volume. Size of Hospital (Number of Beds) 200 300 400 500 600 700 800 900 Number of Registered Nurses 240 260 470 500 620 660 820 860 5–11 Forecasting Personnel Needs • Zero-base forecasting Forecasting method which uses the organization’s Forecasting current level of employment as the starting point for determining future staffing needs determining • Bottom-up approach Forecasting method in which each successive level Forecasting in the organization, starting with the lowest, forecasts its requirements, ultimately providing an aggregate forecast of employees needed forecast 5–12 Forecasting Personnel Needs • Computerized Forecasts Software that estimates future staffing needs by: Projecting sales, volume of production, and personnel Projecting required to maintain different volumes of output. required Input: direct labor hours required to produce one unit of Input: product (a measure of productivity) and three sales projection scenarios—minimum, maximum, and probable. projection Output: average staff levels required and staffing levels for Output: direct labor (e.g. assembly workers), indirect staff (e.g. secretaries), and exempt staff (e.g. executives). secretaries), Personnel forecasting: Personnel 5–13 Forecasting HR availability: the Supply of Inside Candidates Inside Qualification Inventories Manual Systems and Replacement Charts Computerized Information Systems 5–14 Forecasting HR availability: the Supply of Inside Candidates Candidates • Qualifications inventories Manual or computerized records listing employees’ Manual education, career and development interests, language, special skills, and so on, to be used in selecting inside candidates for promotion Manual systems and replacement charts Personnel replacement charts: company records Personnel showing present performance and promotability of inside candidates for the most important positions inside Position replacement cards: company card Position prepared for each position in a company to show possible replacement candidates and their qualifications qualifications 5–15 FIGURE 4–4 Management Replacement Chart Showing Development Needs of Potential Future Divisional Vice Presidents Personnel Replacement Charts 5–16 Computerized Information Systems: The Matter of Privacy • Ensuring the Security of HR Information Control of HR information through access matrices Access to records and employee privacy • Legal Considerations Privacy Act Privacy 5–17 Forecasting Outside Candidate Supply • Factors In Supply of Outside Candidates General economic conditions Expected unemployment rate • Sources of Information Periodic forecasts in business publications Online economic projections Online annual occupation projections (e.g. US Online Department of Labor) Department 5–18 Comparing requirements and availability • Requirements forecast Determining the number, skill, and location of Determining employees the organization will need at future dates employees future in order to meet its goals in • Availability forecast Determination of whether the firm will be able to Determination secure employees with the necessary skills, and secure from what sources from 5–19 Comparing requirements and availability : Comparing Surplus of employees forecasted Surplus • Restricted hiring Reduces the workforce by not replacing employees who leave • Reduced hours Reduce the total number of hours worked E.g. from 40-hour week to 30-hour week • Early retirement Accept early retirement if the retirement package is attractive Accept early • Downsizing (restructuring or rightsizing) Reverse of a company growing and suggests a one-time company change in the organization and the number of people employed change • Outplacement A procedure where by laid-off employees are given assistance procedure laid-off assistance in find employment elsewhere employment 5–20 The traditional approach—Mechanistic HR The planning planning • Objective: A perfect equilibrium between Objective: demand and supply demand • Analysis: Identifying gaps (shortfalls and/or Analysis: excess) excess) • Response: Corrective actions to bring about Response: equilibrium between demand and supply equilibrium 5–21 The modern approach—Diagnostic HR The planning planning • Objective: To minimize imbalance • Analysis: Understand reasons for imbalance • Response: Relating action to that Response: understanding understanding • Philosophy: Before any manager seeks to bring Philosophy: about changes or to reduce the degree of imbalance, one must be fully aware of the reason behind the imbalance in the first place. reason 5–22 HR planning–The reality • There will never be a perfect balance between There the supply and demand for human skills, in reality, such a balance is impossible to obtain reality, • The numerical or quantitative aspects of HR The planning have given rise to False Expectations planning • The heart of the broader approach to HR The planning is to understand more about why the imbalance between demand and supply of human skills occur human 5–23 The Diagnostic HR planning—Causes of The imbalance imbalance • Economic activities (e.g. local, overseas, and Economic international recession) international • Mismatch between output from the education Mismatch sector and the skill requirements of the labor market (co-existence of excess labor supplies and scarcity of relative skills) and • Social demands for education and other Social services being inflexible and out of step with economic and labor market realities economic • Changes in methods of working, technology, Changes organizational structure, or attitude organizational 5–24 The Diagnostic HR planning—Causes of The imbalance imbalance • Changes in age or employment structures • Pay relatives between public and private sector; Pay pay and employment structures within public sector sector • Adjustments to products, or introduction of new Adjustments products/services products/services • Modifications to policies for recruitment, Modifications training, retraining, or redevelopment training, • Changes in pay structures and/or conditions of Changes services services 5–25 Employee recruiting • Finding and/or attracting applicants with Finding outstanding credentials for the employer’s open positions positions • Developing a large pool of applicants from Developing which to select which • Involving those organizational activities that: Influence the number and/or the types of applicants Influence who apply for a position and/or who Affect whether a job offer is accepted 5–26 Common recruiting mistakes • Job advertisement not accurate and not specific Attracting large number of unqualified applicants, Attracting resulting in waste of resources and ill will created by rejecting so many applicants rejecting • Use of semi-open way of external recruitment May lead to complaints of discriminator (say, in UK) May and create an unnecessary sense of secrecy and • Insufficient information provided to job Insufficient applicants (e.g. promotion criteria) applicants Will lead to early wastage and therefore waste of Will recruitment and selection cost recruitment 5–27 Effective Recruiting • External Factors Affecting Recruiting Supply of workers Outsourcing of white-collar jobs Fewer “qualified” candidates • Other Factors Affecting Recruiting Consistency of recruitment with strategic goals Types of jobs recruited and recruiting methods Nonrecruitment HR issues and policies Successful prescreening of applicants Public image of the firm Employment laws 5–28 Effective Recruiting (cont’d) • Advantages of Centralizing Recruitment Strengthens employment brand Facilitates applying strategic priorities Reduces duplication of HR activities Reduces cost of new HR technologies Builds teams of HR experts Provides better measurement of HR performance Allows for sharing of applicant pools 5–29 Effective Recruiting (cont’d) • Decentralized training to the firm’s various Decentralized offices offices • If the firm’s division are autonomous, or their If recruitment needs are varied, it may be more sensible to decentralize the recruitment function sensible 5–30 Measuring Recruiting Effectiveness Evaluating Recruiting Effectiveness What to Measure How many applicants did a company generate through each recruitment source? How to Measure How then to measure each recruiting source’s effectiveness? 5–31 TABLE 4–1 Selection Devices that Could be Used to Initially Screen Applicants Selection Device Construct General mental ability tests Conscientiousness tests Integrity tests Method Work sample tests Job knowledge tests Structured interviews Biographical data Grade point average Ratings of training and experience Note: *Higher is better. Validity for Predicting Job Performance* 0.51 0.31 0.41 0.54 0.48 0.51 0.35 0.23 0.11 Source: Kevin Carlson et al., “Recruitment Evaluation: The Case for Assessing the Quality of Applicants Attracted,” Personnel Psychology 55 (2002), p. 470. 5–32 FIGURE 5–7 Recruiting Yield Pyramid 5–33 Recruiting Yield Pyramid • The historical arithmetic relationships between The recruitment leads and invitees, invitees and interviews, interviews and offers made, and offers made and offers accepted offers 5–34 Internal Candidates: Hiring from Within Advantages • Foreknowledge of candidates’ strengths and weaknesses • More accurate view of candidate’s skills • Candidates have a stronger commitment to the company • Increases employee morale • Less training and orientation required Disadvantages • Failed applicants become discontented • Time wasted interviewing inside candidates who will not be considered • Inbreeding strengthens tendency to maintain the status quo 5–35 Finding Internal Candidates Job Posting Rehiring Former Employees Hiring from Within Succession Planning (HRIS) 5–36 Finding Internal Candidates • Job posting Publicizing an open job to employees (often by Publicizing literally posting it on bulletin boards) and listing its attributes, like qualifications, supervisor, working schedule, and pay rate schedule, • Succession planning The ongoing process of systematically identifying, The assessing, and developing organizational leadership to enhance performance to 5–37 Outside Sources of Candidates Locating Outside Candidates 1 2 3 4 5 Recruiting via the Internet Advertising Employment Agencies Temp Agencies and Alternative Staffing Offshoring/Outsourcing 6 7 8 9 Executive Recruiters On Demand Recruiting Services (ODRS) College Recruiting Referrals and Walk-ins 5–38 Outside Sources of Candidates • On Demand Recruiting Services (ODRS) Provide short-term specialized recruiting assistance Provide to support specific projects without the expense of retaining traditional search firms retaining Make charge by the hour or project, rather than per Make hire hire Handle recruiting, analysis, and prescreening and Handle left the client with a short list of qualified candidates left 5–39 What job applicants normally do to get What employed employed • Job search Directed towards locating job openings • Job investigation Gathering information on job opportunities that may Gathering exist exist • Job evaluation Making decisions about the attractiveness of a job Making opportunity opportunity 5–40 Job applicant’s behavior: job search 1. Sources of information • • • • • Formal information sources Advertisement, recruitment agency, student affairs office, Advertisement, etc. etc. Informal information sources Word of mouth, referral, introduction Self-initiated recruitment Low esteem individuals did reply more heavily on formal Low sources of information about job openings sources Choices of methods may be influenced by difference in Choices motivation, personality, and access to and familiarity with various job search methods various 2. Factors affecting the choice of job search methods 5–41 Job applicant’s behavior: job investigation 1. Investigating organizations and the jobs they Investigating may offer may • • • Published documents People Direct observation 2. Self-assessment: investigating what one wants Self-assessment: and what one offers and • • Self-assessment of one’s wants/desires Self-assessment of what one offers an employers 5–42 Job applicant’s behavior: job evaluation • For students choosing their first jobs, one study For has resulted in the following very important factors: factors: Opportunities for advancement Social status and prestige—the feeling of doing Social something important and the recognition of this by others others Responsibility Opportunities to use special aptitudes and Opportunities educational background educational Challenge and adventure Opportunity to be creative and original High salary 5–43 Implications of job applicants’ behaviors on Implications recruiter’s strategies recruiter’s • Should view a job candidate as both information Should gatherer and a processor gatherer • Should understand the three key behaviors of Should job applicants: job Job candidate uncertainty Information overload Tendency of decision makers to simplify job-choice Tendency decisions decisions 5–44 Recruiter’s strategies: organizational Recruiter’s visibility visibility • Visibility does not mean simply that potential Visibility recruits have heard of you. It means they think of you as a desirable place to work of Image advertising to create a positive public Image awareness awareness Sponsoring community events, career days, Sponsoring donation to museums, hospitals or other charities, presentation at professional meetings, sponsor scholarships and awards, develop internship and co-op programs co-op 5–45 Recruiter’s strategies: recruitment Recruiter’s communications communications • How much information to present? Avoid information overload Investigate what information job seekers see as Investigate important for making job choice important • Credibility of the information sources it uses Use job incumbents as an information source to present a realistic view of what the job in question entails Job candidates can therefore self-select out of jobs Job that are not perceived as meeting important need that 5–46 Likely Likely Recruiter’s strategies: recruitment Recruiter’s communications communications • Whether to report only the positive aspects of Whether the job or both positive and negative? the Present the most important job attribute information Present in a vivid manner, e.g. tour of worksite in Provide written document summarizing job features Creating good first impression 5–47 Recruiter’s strategies: recruitment Recruiter’s communications communications • Five key properties of information content of Five recruitment communication: recruitment Information accuracy Information specificity Information sufficiently broad in scope Job-related information should be credible Information provided should be those important ones 5–48 Recruiter’s strategies: recruitment Recruiter’s communications communications • Important characteristics of the information Important recipients recipients Understand the ability and motivation of the intended Understand audience of the recruitment communication audience Aware of the intended audiences’ ability to Aware understand the terminology used in the recruitment communication and the information provided should not overwhelm the audience not • Medium used to convey the job-related Medium information information One-way recruitment media Two-way recruitment media 5–49 The design of recruitment advertisement Selling point analysis • Psychographic profile of target audience Hypothetically, the target audience should bear similar Hypothetically, psychographic characteristics in their interest and needs psychographic They should be interested in the housing allowance, and the They area of new employment, such as cost of living, quality of public schools, availability of leisure facilities, etc. schools, They would place high value on tangible rational desires like They salary and benefits, emotional needs like work style, image and reputation of the organization and motivational needs like career development, training, personal development, and work exposure and variety exposure 5–50 The design of recruitment advertisement • Features and benefits analysis for the vacancy With the understanding of the psychographic profile With of the target audience, it is possible to review the company’s internal and external environment and the job characteristics to sort out those features about the job and the company, which would appeal to the interests and needs of the target audience interests • Effective Ads Create attention, interest, desire, and action (AIDA). Create a positive impression of the firm. 5–51 FIGURE 5–9 Ineffective and Effective Web Ads Source: Workforce, December 2001, © Crain Communication, Inc. Reprinted with permission. 5–52 FIGURE 5–10 Help Wanted Ad That Draws Attention Source: The New York Times, May 13, 2007, Business p. 18. 5–53 Recruiter’s strategies: timing and Recruiter’s recruitment-related actions recruitment-related • Job applicant is likely to prefer the certainty of a Job good job offer over the possibility or uncertainty of receiving a better job offer of • Job applicant may question the employer’s Job interest in him if a long period of time elapses between the end of the formal selection process and the receipt of a job offer and • To prevent backing out, periodic contacts are To important important • Not only the recruitment exercise should be Not timely, all organizational responses should be timely to convey strong interest in the candidate timely 5–54 Recruiter’s strategies: maximizing personjob fit • The two parties should facilitate an open exchange of The accurate information accurate • Employer should not hide or downplay undesirable Employer features of the specific job opening or of the organization in general organization • An accurate open exchange will allow a job candidate to An decide whether a position provides certain features that he may view as important or even as essential he • Job applicants should present accurate information Job about themselves and aggressively seek the information they need from employers in order to be able to intelligently evaluate job openings able 5–55 ...
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