HR CHAP 5 HR PLANNING AND RECRUITMENT

FORECASTING STAGE OF HR PLANNING can compare figures wether there will be

a labor shortage or surplus. Organisation can determine what is going todo
about potential problems.
Forecasting- determine the demand and supply of HR resources, and predicts what
position in surpluss or shortage that exist in future.
1. Determine labour demand PREDICTED by use statistical techniques such as
leading indicator, which objective measure accurately predicts futre labor
demand.
2. Determine labor Supply DETAILED analysis of how many people currently in
jobs categories, to reflect Changes in near future A transitional matrix is a table
used to project internal labor supply.
3. Determining Labor Surplus or ShortageBy comparing forecasts for labor
supply and demand for specific jobs, the organization can determine what it
needs to do.

Downsizing- the planned elimination of large numbers of personnel designed to

enhance organizational competitiveness.
Reasons why organizations downsize:

Cost reduction through decreased labor.

Technological changes reduce need for labor
Closing outdated plants.
Organizations changed location of where they do business.
Mergers and acquisitions reduced the need for large bureaucracies.
For economic reasons, many firms relocated parts of operations.

Although downsizing has an immediate effect on costs, much of the evidence suggests
that it has negative effects on long-term organizational effectiveness, especially for
some types of firms.
EMPLOYING TEMPORARY WORKERS

Hiring temporary workers helps eliminate a labor shortage and affords flexibility

needed to operate efficiently during demand swings.

Some strategies can be turned on and off fairly painlessly, such as the use of
overtime and/or temporary employees.

Operational flexibility is the primary

reason for this, although the use of temps also frees the firm from many
administrative tasks and financial burdens (health insurance, pension, worker's
-

compensation, life insurance, etc.).

Smaller companies may use temporary agencies to do their employment
screening for them. Training may be done by the agency as well. Temporary
employees bring a fresh perspective to the firm, particularly if they have
temped in a number of other organizations.

- 3- advantages of temporary workers

1. Temporary workers free a company from admin task and financial burdens
2. Often time tested and trained by temporary agencies
3. brings an objective , perspective and experience
PERSONNEL POLICIES, in relationship to recruitment, affect the nature of the
vacancies for which people are required and impact the ability of the organization to
recruit and its level of success.
-

Internal versus External RecruitingA decision must be made on whether

to recruit from within or outside the organization.

Extrinsic and Intrinsic RewardsLead-the-market pay strategy is a policy of

paying higher than current market wages.

Employment-at-will policies state that either party in the employment
relationship can terminate that relationship at anytime, regardless of cause.
Companies that do not have employment at will typically have extensive due
process policies that describe steps an employee can take to appeal a

termination decision.
Due process policies formally lay out the steps an employee can take to

appeal a termination decision.

Image advertising promotes an organization as a good place to work in
general and may be particularly important for organizations in highly

competitive labor markets that perceive themselves as having a bad.

1. INTERNAL VS EXTERNAL RECRUITING
INTERNAL RECRUITING identify internal candidates for jobs within the
organisation. Organisation that have larger employees, can be easily to search
for matches when a vacancies occurs. Can saved cost in firms fees and other
recruiting

cost.

Increase

jobs

security

and

promotion

opportunity.

The

disadvantages; pushback from current managers, and resist from current

managers that loss their employees.
EXTERNAL RECRUITING - identify candidates outside sources. Certain entry
level position and specialized upper level, doesnt have any current employees
to drwabacks. Bring outsiders, create new ideas, and strengthen the company,

and weaker other company ( hiring expertise from other company, give
advantages to own company, and previous company loss their expertise)
2. INTERVIEW AND REFERAL CHECKS REFERRALS are people who are
prompted to apply by someone within the organisation.
Self-selection applicant do some homework about the company,. A form of
aided self selection occurs with referrals (friends, relatives, and acquintances in
helping find employment)
Curent employees do their homework and conclude that is a fit between the
person ( referrals ) and the vacancy. They then sell the person on the job ( word
of mouth ) endorsement from credible sources have a strong effect in
requirement process.
RECRUITMENT SOURCES organisation must decide how to reach the best sources
of potential employees.
1. DIRECT APPLICANTS AND REFERRALS
a. Direct applicants are people who apply for a vacancy without prompting
from an organization.
b. Referrals are people who are prompted to apply for a vacancy by someone
within the organization.
2. PUBLIC AND PRIVATE EMPLOYMENT AGENCIES
Agencies will search their computerized inventory of individuals searching for
work for an organization at no charge. Executive search firms generate a
small list of highly qualified, interested applicants, but this is an expensive
source compared with other alternatives.
3. COLLEGES AND UNIVERSITIES
may be an important source for entry level professionals.

To increase

effectiveness, organizations employ internship programs to get early access to

potential applicants and to assess their capabilities directly.