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HR planning process

1. Forecasting
2. Goal setting and strategic planning
3. Program implementation and evaluation


Predict areas within the organization

where there will be labor shortage or

Transitional Matrix

a chart that lists job categories held in one

period and shows proportion of
employees in each of those job categories
in a future period.

2nd step in HR Planning: Goal setting and

strategic planning

Purpose of setting specific numerical goals

is to focus attention on the
problem/provide a basis for measuring the
organizations success in addressing labor

First three ways you can do to reduce a


1. Downsizing
2. Pay reductions
3. Demotions

The next three ways you can use to reduce

a surplus?

Methods to avoid a shortage?

Pro: Fast Results

Con: Hurt future recruiting

1. Transfers
2. Work sharing
Fast methods, consequences to
human suffering are less severe
3. Hiring Freeze
Slow method, less painful then layoffs

Any activity carried on by the organization with the primary

purpose of identifying and attracting potential employees.


All companies have to

make decisions in three
areas of recruiting:

Personal Policies

An organizations _________are its decisions about how it

will carry out HR management, including how it will fill job

Job Posting

Process of communicating information about a job vacancy

1. Personnel policies
2. Recruitment sources
3. Characteristics and behavior of the recruiter

Yield Ratios

A ratio that expresses percentage of applicants who

successfully move from one stage of the recruitment and
selection process to the next.

Cost per hire

Find cost of using a particular recruitment source for a

particular type of vacancy.

Ch. 5 Summary

First step in HR planning is personnel forecasting. Through

trend analysis and good judgment, planner determines
supply and demand for HR.
Next step - determine labor demand for workers in various
job categories.
Analysis of a transitional matrix
helps identify which job categories
can be filled internally and where
high turnover is likely.


Personal Selection

Process through which organizations make

decisions about who will

Criteria for measuring the effectiveness of

selection tools and methods?

1. Method provides reliable information.

2. Method provides valid information.
3. Information can be generalized to apply to
4. Method offers high utility.
5. The selection criteria are legal.


Extent to which a measurement is free

from random error.


Extent to which performance on a

measure (such as a test score) is related to
what the measure is designed to assess
(such as job performance).

3 ways the Federal Government measures

validity by the Uniform Guidelines on
Employee Selection Procedures?

1. Criterion-related
2. Content
3. Construct

Predictive Validation

Research that uses test scores of all

applicants and looks for a relationship
between scores and future performance of
applicants who were hired.

Concurrent Validation

Research that consists of administering a

test to people who currently hold a job,
and then comparing their scores to
existing measures of job performance

Content Validity

Consistency between test items or

problems and kinds of situations or
problems that occur on the job.

Construct Validity

Consistency between a high score on a

test and high level of a construct (i.e.,
intelligence or leadership ability) as well as
between mastery of this construct and
successful performance of the job.

Generalizable Selection

Method applies not only to the conditions

in which the method was originally
developed job, organization, people,
time period, etc.

4 things used to gather background



Application Forms

Low-cost way to gather basic data from

applicants such as
Contact information
Work experience
Educational background
Technical experience
Memberships in professional or trade

Background Checks

Way to verify that applicants are as they

represent themselves.

Types of Employment Tests

1. Aptitude Test
2. Achievement Test

1. Access how well a person can learn or

acquire skills and abilities
2. Measure a persons existing knowledge
and skills.

Application forms
Reference checks
Background checks

Five major personality dimensions

measured by personality inventories?
1. Sociable, gregarious, assertive, expressive
2. Emotionally stable, secure, content
3. Courteous, trusting, good-natured,
tolerant, cooperative, forgiving
4. Dependable, organized, preserving,
thorough, achievement-oriented
5. Curious, imaginative, artistically sensitive,
broad-minded, playful



Interviewing Effectively

Multiple Hurdle Model

Compensatory Model

How do organizations select Employees?

Multiple Hurdle Model

Process of arriving at a selection decision

by eliminating some candidates at each
stage of the selection process.

Compensatory Model

Process of arriving at a selection decision

in which a very high score on one type of
assessment can make up for a low score
on another.

Ch. 6 Summary

Be prepared
Put applicant at ease
Ask about past behavior
Take notes
At the end of the interview, make
sure the candidate knows what to
expect next

Selection typically begins with a review of

candidates applications and rsums.
The organization administers tests to
candidates who meet basic requirements,
and qualified candidates undergo one or
more interviews.
Organizations check references and
conduct background checks.
A candidate is selected to fill each vacant

Ch. 6 Summary
Organizations need to measure
success of selection methods. Criteria
used include?

Ch. 6 Summary Cont.

An important principle of selection is to

combine several sources of information
about candidates, rather than relying
solely on interviews or a single type of
Sources should be chosen carefully to
relate to characteristics identified in job
description to increase validity of decision
Organizations are more likely to make
decisions that are fair and unbiased and
choose the best candidate.

Ch. 6 Summary Cont.

Selection process must be conducted in a

way that avoids discrimination and
provides access to persons with
Selection methods must be valid for job
performance, and scores may not be
adjusted to discriminate against or give
preference to any group.
Focus on finding the person who will be
best fit with job and organization. This
includes an assessment of ability and