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Human Resource Management 4: Fundamentals of
Human Resource Management 4: Fundamentals of
Human Resource Management 4: Fundamentals of
CHAPTER 5
Planning for and Recruiting
Human Resources
McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All Rights Reserved.
What Do I Need to Know?
5-2
What Do I Need to Know? (continued)
5-3
The Process of Human Resource Planning
5-4
Figure 5.1: Overview of the Human
Resource Planning Process
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Forecasting
• Forecasting: attempts There are three major
to determine the supply steps to forecasting:
and demand for various 1. Forecasting the demand
types of human for labor
resources to predict 2. Determining labor
areas within the
supply
organization where
there will be labor 3. Determining labor
shortages or surpluses. surplus or shortage
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Forecasting the Demand for Labor
5-7
Determining Labor Supply
• Transitional matrix: a It answers two questions:
chart that lists job 1. “Where did people in
categories held in one each job category go?”
period and shows the 2. “Where did people now
proportion of employees in each job category
in each of those job come from?
categories in a future
period.
5-8
Table 5.1: Transitional Matrix – Example
for an Auto Parts Manufacturer
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Determining Labor Surplus or Shortage
5-10
Goal Setting and Strategic Planning
5-12
As the average age of many workers in skilled trades grows, the coming
demand for workers in many trades is expected to outstrip supply in the
United States. There is a potential for employers in some areas to
experience a labor shortage because of this.
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Options for Avoiding a Shortage
5-14
Table 5.2: HR Strategies for Addressing a
Labor Shortage or Surplus
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Test Your Knowledge
5-16
Implementing and Evaluating the HR Plan
5-18
Recruiting Human Resources
5-19
Figure 5.2: Three Aspects of Recruiting
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Personnel
Policies
Several personnel
policies are
especially relevant
to recruitment:
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• Image advertising, such
as in this campaign to
recruit nurses, promotes
a whole profession or
organization as opposed
to a specific job opening.
• This ad is designed to
create a positive
impression of the
profession, which is now
facing a shortage of
workers.
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Recruitment Sources: Internal Sources
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Advantages of Internal Sources
5-24
One in Three Positions Are
Filled with Insiders
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Recruitment Sources: External Sources
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Figure 5.3: External Recruiting Sources –
Percentage of Employees Hired
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Evaluating the Quality of a Source
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Table 5.3:
Results of a Hypothetical Recruiting Effort
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Your Experience
5-30
Recruiter Traits and Behaviors
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Recruiter Characteristics and Behavior
True = A False = B
• Applicants respond more positively when the recruiter
is an HR specialist than line managers or incumbents.
• Applicants respond positively to recruiters whom are
warm and informative
• Personnel policies are more important than the
recruiter when deciding whether or not to take a job.
• Realistic job previews should highlight the positive
characteristics of the job rather than the negative.
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Figure 5.4:
Recruits Who Were Offended by Recruiters
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Enhancing the Recruiter’s Impact
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Recruiting Exercise (1 of 2)
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Recruiting Exercise (2 of 2)
5-36
Summary
• The first step in human resource planning is
personnel forecasting. Through trend analysis and
good judgment, the planner tries to determine the
supply and demand for various human resources.
• The next step is to determine the labor demand for
workers in various job categories. Analysis of a
transitional matrix can help the planner identify
which job categories can be filled internally and
where high turnover is likely.
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Summary (continued)
• To reduce a surplus, downsizing, pay reductions, and
demotions deliver fast results but at a high cost in
human suffering that may hurt surviving employees’
motivation and future recruiting.
• To avoid a labor shortage, requiring overtime is the
easiest and fastest strategy.
• Internal recruiting generally makes job vacancies
more attractive because candidates see
opportunities for growth and advancement.
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Summary (continued)
• Lead-the-market pay strategies make jobs
economically desirable.
• Internal sources are usually not sufficient for all of an
organization’s labor needs.
• Through their behavior and other characteristics,
recruiters influence the nature of the job vacancy
and the kinds of applicants generated.
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