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Planning and Forecasting

A. Forecasting Personnel Needs Forecast revenues, and then
estimate the size of the staff required to achieve this sales
1. Trend Analysis means studying a firms employment levels
over a period of years to predict future needs.
2. Ratio Analysis means making forecasts based on the ratio
between (1) some causal factor, like sales volume, and (2)
number of employees required, like number of salespeople.
3. The Scatter Plot shows graphically how two variables (such
as a measure of business activity and a firms staffing levels)
are related.
4. Using Computers to Forecast Personnel Requirements The
use of software programs can enable employers to quickly
translate projected productivity and sales levels into
forecasts of personnel needs, while estimating how
personnel requirements will be affected by various
productivity and sales levels.
B. Forecasting the Supply of Inside Candidates
1. Manual Systems and Replacement Charts Simple manual
devices can be used to keep inventories and development
records to compile qualifications information on each
employee. Personnel replacement charts show the present
performance and promotability for each positions potential
replacement. Position replacement cards can also be created
for each position to show possible replacements as well as
their present performance, promotion potential, and training.

2. Computerized Information Systems are used to track the

qualifications of hundreds or thousands of employees. The
system can provide managers with a listing of candidates
with specified qualifications after scanning the database.
3. The Matter of Privacy Employers must balance an
individuals right to privacy while making HR information
legitimately available to those in the firm who need it.
C Forecasting the Supply of Outside Candidates This may involve
considering general economic conditions and the expected rate of
unemployment. Helpful sources include: Business Week, Fortune, the
Economist, the Wall Street Journal, and prepared reports from the U.S.
Council of Economic Advisors, the regional Federal Reserve banks, the
Bureau of Labor Statistics of the U.S. Department of Labor, the National
Science Foundation, the U.S. Public Health Service, the U.S.
Employment Service, and the U.S. Office of Education.


Effective Recruiting
Recruiting is a more complex activity than most managers think it
is. Recruitment efforts should make sense in terms of the
companys strategic plans. Some recruiting methods are superior
to others, depending on who you are recruiting for and what your
resources are. The success you have with your recruiting actually
depends on non-recruitment HR issues and policies, including pay
levels. Applicants should be pre-screened to determine that they
have a real interest in the job. A companys image may also
contribute to success or failure in recruitment efforts.
Know Your Employment Law: PreEmployment Activities.
The key question in all recruitment procedures is whether
the method limits qualified applicants from applying. It is
generally best to avoid limiting recruitment efforts to just
one recruitment method; use multiple sources to reach out as
widely as possible.

A. Organizing the Recruitment Function Companies make a

choice to centralize their recruiting efforts or to decentralize to
various locations. Advantages of centralizing are that it is
easier to apply the companys strategy priorities company-wide.
In addition, it reduces duplication, makes it easier to spread the
cost of new technologies over more departments, and builds a
team of recruitment experts, and makes it easier to assess the
effectiveness of the function. However, if divisions are
autonomous or needs are varied, decentralization is a more
sensible choice.
1. Line and Staff Cooperation Since the recruiting HR
manager is seldom responsible for supervising the
performance for the vacant position, he/she must
communicate with the supervisor to find out exactly what
the job entails.
B. Measuring Recruiting Effectiveness Assessing the quality of
each recruitment source will help HR managers to determine
where the most cost effective recruiting sources are and thus
determine where they want to direct their recruiting dollars,
Prescreening selection devices shown in table 5-1 are helpful
tools to get quick assessments on whether applicants are
qualified. An example of GE Medical is described here as a
best practice in terms of measurement techniques.
1. A High-Performance Example GE Medical applies best
practices measurement techniques to the job of hiring highly
technical workers.
C. The Recruiting Yield Pyramid is used by some employers to
calculate the number of applicants they must generate to hire
the required number of new employees. Figure 5-7 illustrates
the pyramid.


Internal Sources of Candidates

A. Finding Internal Candidates To be effective, promotion from

within requires using job posting, personnel records, and skill

Rehiring Rehiring former employees has its pros and cons.

positive side, they are known quantities and are already
organization. But former employees may return with negative
attitudes. Current employees may perceive that the way to get
ahead is to leave and come back.

C. Succession Planning Planning ensures a suitable supply of

successors for senior or key jobs. It can include the following
activities: determining the projected need for managers and
professionals by company level, function, and skill; auditing
current executive talent to project the likely future supply for
internal sources; planning individual career paths based on
objective estimates of future needs and assessments of
potential; career counseling based on the needs of the individual
and the firm; accelerated promotions, with development targets
against the future needs of the business; performance-related
training and development; planned strategic recruitment to fill
short-term needs and to provide people to meet future needs;
and actually filling the positions.
IV. Outside Sources of Candidates
A. Recruiting Via the Internet Most employers find that
the Internet is their best choice for recruitment efforts.
Social networking also provides recruiting assistance.
Figure 5-8 lists top online recruiting job sites.
1 Advantages The Web is cost efficient, generating
more responses more quickly and providing exposure
for a longer time at less cost.

2 Disadvantages Gathering applications online may

exclude higher numbers of older applicants and
certain minorities. An employer may also get too
many applications because of the Webs broad reach
and speed. Applicant tracking has required a specific
definition for what constitutes an Internet applicant.
For an individual to be considered an Internet
The employer has acted to fill a particular
The individual has followed the employers
standard procedures for submitting an
The individual has indicated an interest in the
particular position.

Using Applicant Tracking ASP Web-based ads

generate so many applicants that most firms are
installing tracking systems to help attract, gather,
screen, compile and manage applications.

4. Designing Effective Internet Ads and Systems Employers

have only about four minutes to get job seeker attention, so
ease of use is key in design. Figure 5-9 shows effective and
ineffective ads. Many job sites may have ads from
recruiters with questionable legitimacy. Potential
applicants should be cautious about giving such personal
details as Social Security numbers
B. Advertising
1. The Media The best medium should be selected based on
the positions for which you are recruiting.
2. Constructing the Ad Many experienced advertisers use a
four-point guide called AIDA (attention, interest, desire,
action) to construct their ads.

3. Employment Ads and Image recent studies show that it

pays for employers to formulate marketing campaigns aimed
at making themselves more attractive to potential recruits.
C. Employment Agencies
1. Public and Nonprofit Agencies Every state has a public,
state-run employment service agency supported by the
Department of Labor, in part through grants and other
assistance, such as a nationwide computerized job bank.
Many professional and technical societies, and public
welfare agencies have units that try to help their members or
people in special categories find jobs.
2. Private Agencies charge fees for each applicant they place.
Typically, market conditions determine whether the
candidate or employer pays the fee.
C. Temp Agencies and Alternative Staffing
1. Benefits and Costs The benefits of contingency staffing
include increases in overall productivity, and time and
expenses saved by not having to recruit, train, and document
new employees. The costs include fees paid to agency and
individuals psychological reference to their place of
employment. Many employers use temporary agencies as a
way to test drive prospective employees before hiring
2. Alternative Staffing refers to the use of nontraditional
recruitment sources.
Know Your Employment Law: Contingent Workers Temp
workers can pose legal risks to the employer. Wal-Mart was
raided by federal agents who found illegal contract
workers handling after-hours store cleaning. In a case with
Microsoft, a federal court held that despite their temp titles,
the temps were actually regular Microsoft employees,
eligible for benefits. Temporary workers, like all workers,
have significant legal rights. The degree to which the client

firm controls temp agencys employees activities

determines how many rights these employees have, and the
dual employment view is espoused by many courts. The
basic prescription is to treat the temp employee in all ways
as if the agency is in fact his employer.

Guidelines for Success: See Figure 5-8. Provide honest

information to both temp agencies and temp workers about
the length of the job assignment; implement personnel
policies that ensure fair, non-discriminatory treatment of
temp workers; use independent contractors and permanent
part-time employees to complement the conventional temp
agency workforce; consider the potential impact on regular
full time employees before hiring temp workers; provide the
necessary training and orientation for temp workers; and
beware of legal snares in payroll decisions.

D Offshoring/Outsourcing White Collar and Other Jobs Hiring

workers abroad is becoming more and more common. There
are several specific issues that the HR manager should keep in
mind when considering this option.
E Executive Recruiters, also called headhunters, are special
employment agencies retained by employers to seek out topmanagement talent for their clients.
1. Pros and Cons Recruiters can be useful and can save a
managers time, but they can be more interested in
persuading you to hire a candidate than in finding the one
who will really do the job.
2. Guidelines Make sure the recruiting firm is capable, meet
the individual who will handle your assignment, and ask
how much the firm charges. Never rely on the recruiter to do
all the reference checking.
When Youre On Your Own: HR and Small Business
Expanding the Management Team - This dialogue talks
about entrepreneurs engaging the services of a search firm to
help them select the right candidate when the time comes for

them to expand. While the initial cost of doing so could

appear to be intimidating, there are many good reasons to
consider this as an option when it comes to key management
positions, including identifying a high quality pool of
candidates, time and energy of the business owners, as well
as potential legal pitfalls. When the opportunity costs are
considered, there is little money actually saved by doing it
F On Demand Recruiting Services (ODRS) This service
provides short-term specialized recruiting to support specific
projects without the expense of retaining traditional search
firms. Basically, recruiters get paid by the hour or project,
instead of a percentage fee. Two trends technology and
specialization are changing the executive search business.
Executive recruiters are being more specialized, and large ones
are creating new businesses aimed specifically at specialized
functions or industries.
G. College Recruiting involves sending employers representatives
to college campuses to prescreen applicants and create an
applicant pool of management trainees, promotable candidates,
and professional and technical employees.
1. Recruiting Goals are to determine whether a candidate is
worthy of further consideration, and to attract good
candidates. The schools reputation and the performance of
previous hires from that source affect school selection.
2. On Site Visits are usually extended to good candidates.
3. Internships are a recruiting approach that can be a win-win
situation for the employer and the student. For employers,
interns can make useful contributions while being evaluated
for possible full-time employment. Students, are able to
hone business skills, check out potential employers, and
learn more about their likes and dislikes.
H. Referrals and Walk-Ins - are alternatives for identifying
potential candidates. Referrals tend to generate high quality

candidates. Walk-in candidates may be attracted by posting a

Help Wanted sign.
I Recruiting Source Use and Effectiveness Figure 5-12
summarizes a survey of best recruiting sources. Table 5-2 gives
guidelines to improve a firms recruiting efforts. The
experiences of Cheesecake Factory , Borders and Barnes &
Noble are related.


HRIS: an integrated technology approach to recruiting.

Elements should include a requisition management system, a
recruiting solution, screening services and hiring management

Recruiting a More Diverse Workforce


Single Parents Formulating an intelligent program for

attracting single parents should begin with understanding the
considerable problems they often encounter in balancing work
and family life.


Older Workers With the entire population aging, many

employers are encouraging retirement-age employees not to
leave, or are actively recruiting employees who are at or beyond
retirement age by making their companies an attractive place in
which older workers can work. An image of older workerfriendliness and flexibility in scheduling are vital.
The New Workforce
Supervising older workers,
especially when the manager is 20-30 years younger can be
a challenge. Maintaining authority and earning respect
through hard work and getting to know employees are some
of the keys to success in this situation.

C. Recruiting Minorities and Women requires employers to tailor

their way of thinking and to design HR practices that make their
firms attractive to them.


D. Welfare-to-Work The Federal Personal Responsibility and

Welfare Reconciliation Act of 1996 prompted many employers
to implement programs to attract and assimilate former welfare
E. The Disabled Employers can do several things to tap into this
huge potential workforce. The Department of Labors Office of
Disability Employment Policy offers several programs, and all
states have local agencies that provide placement services and
other recruitment and training tools.


Developing and Using Application Forms

A. Purpose of Applications Forms Application forms are a good
way to quickly collect verifiable and fairly accurate historical
data from the candidate.
B. Application Forms and the Law Employers should carefully
review their application forms to ensure they comply with equal
employment laws. Questions to review include those asking
about dates of graduation, arrest records, emergency contacts,
physical disabilities, marital status, and housing arrangements.
C Using Application Forms to Predict Job Performance Some
firms use application forms to predict which candidates will be
successful and which will not by conducting statistical studies
to find the relationship between (1) responses on the application
form and (2) measures of success on the job.
Know Your Employment Law: Mandatory Arbitration
Though mandatory alternative dispute resolution clauses are
generally enforceable, management should remember that
individual agreements can be struck down by the courts,
based on the merits of the agreement. Such clauses can
inhibit recruiting, since they may have a negative impact on

1. What are the pros and con of five sources of job candidates? The text lists
several sources of job candidates, both internal and external. The student
should clearly identify the differences as well as comparative strengths and
weaknesses of each. There are at least the following sources to choose from:
advertising, employment agencies, executive recruiters, state job services,
college recruiting, referrals, employee database, internal, and talent searches.
2. What are the four main types of information application forms provide?
The application form is a good means of quickly collecting verifiable, and
therefore potentially accurate, historical data from the candidate. It usually
includes information on education, prior work history, and other experience
related to the job The application form can provide four types of information:
1. substantive matters (such as education and experience); 2. applicant's
previous progress and growth; 3. stability based on previous work history; 4.
prediction of job success.
3. How, specifically, do equal employment laws apply to personnel planning
and recruiting activities. The student should be able to discuss the areas in
which the laws and regulations covered in Chapter 2 apply to the issues of
planning and recruiting. This would include constraints on sources used for
candidates (i.e. not excessive reliance on referrals), the wording of questions
asked on application forms or in interviews, and planning decisions that must
not be overly detrimental to a protected group.
4. What are five things employers should keep in mind when using internet
sites to find job candidates? Keyword searches, dont recycle your newspaper
ads, give quick feedback, ensure privacy, applicant tracking, etc.
5. What are the five main things you would do to recruit and retain a more
diverse workforce? The student should first be able to identify groups that would
create a diverse workforce. Examples found in the text are: single parents, older
workers, minorities and women, welfare recipients, and global candidates. In order
to retain these employees, students would first need to understand the needs of
each group, and then create plans and programs that accommodate these specific
needs. For example, to attract and keep single mothers, employers could give

employees schedule flexibility, and train the supervisors to have an increased

awareness of and sensitivity to the challenges single parents face