Professional Documents
Culture Documents
Lecture Objective: To understand the processes involved in planning for and attracting
adequate human resources and then deciding whom to hire.
I. Human Resource Planning - Definition: the process an organization uses to ensure that
it has the right amount and the right kind of people to deliver a particular level of output
or service in the future.
A. Labor Supply - Definition: the availability of workers with the required skills
to meet the firms labor demand.
1. Comes from: internal labor market (existing employees) and external labor
market (those available & wanting to be hired).
B. Labor Demand - Definition: how many workers the organization needs in the
future.
1. Increases & decreases as a function of demand for firms products and
changes in labor productivity.
2. When labor supply exceeds labor demand, firm can cut pay, layoff, reduce
hours, offer early retirement incentives, severance pay, etc.
3. When labor demand equals labor supply, firm replaces quits from inside or
outside, and does internal transfers and deployment.
3. Those in different jobs within the firm want different abilities from the
same new hire.
3. System factors (see page 227 in chapter 7); the context around the new
hire.
2. Reasons for line managers to decide: they are more familiar with the
jobs to be filled, must work with the new hires, and are responsible for
their performance.
III. Recruitment - Definition: the process of generating a pool of qualified candidates for
a particular job in order to fill a job opening.
7. Temporary help agencies: allow the firm to observe the temps work and
can help to control benefit costs.
3. Advantages of internals are less cost for recruiting & compensation, and
good for employee morale.
IV. Selection - Definition: the process of making the decision to fill a job opening.
(Selection is the hiring decision.)
1. Content validity assesses the extent to which the content of the selection
method is representative of the job content.
3. Cognitive and physical ability tests are valid to the extent they measure
job related abilities.
a. Work sample tests involve actual tasks of the job. These tests are
generally the best selection tool as they predict job performance better
than any other selection tool.
2. Manager want selection tools that are quick and easy to do.
D. Re-entry Problems
1. Lack of appreciation for acquired skills.