Professional Documents
Culture Documents
Business Administration
(In collaboration with UCSI
University)
Assignment CoverSheet
No Student’s Name Student’s ID
1 NguyễnNgọcTrà My 1002060887
2 PhạmTrungTín 1002060895
3 MaiKỳAnh 1002060871
4 PhạmThànhĐạt 1002060872
5 Nguyễn Tấn Vỹ 1002060923
Module/Subject Information
Human resources are the most valuable asset of an organization. Talented employees in an
organization’s workforce can strengthen their sustainability in the market. However, the labor
market is currently lacking these gems. With the national unemployment rates at
approximately close to 3%, American employers are competing with each other to recruit
employees. They often make their company’s job more appealing by raising wages, but as
this chapter discuss, there is more to know to recruit more effectively. Hence, the purposes of
this chapter are:
● to examine factors that influence the supply and demand for labor and, in particular,
● to focus on what HR managers can do in terms of planning and executing policies that
give their firms competitive advantage in a dynamic environment.
In this study, the three keys to effectively utilizing labor market to strengthen companies’
competitive advantage are introduced, including:
● The company needs to know the strengths and weaknesses of their current workforce.
● The company needs to be aware of the changes related to the workforce that might
happen and need to happen in the future.
● If there are discrepancies between the present configuration and the future
configuration, companies need programs to point out these discrepancies.
2. The Human Resource Planning Process
2.1. Alignment between company strategic direction with its human resource planning
Human resources include labor force and labor resources.
The labor force is defined to include the totality of the human potential in the company
includes all employees of the company from ordinary workers to senior management in the
company.
Labor resources are the resources of each individual, including fitness and intellectual
resources.
Human resource planning is to map out the project how to ensure that the intention is
“right person – right job – right time”. When the company Planning and defining human
resources will help the company answer the following questions :
How many people with qualifications does the organization need?
How is the ability to adapt and carry out the tasks or goals that the company has set?
When will the company need them?
Many people believe that mapping out and deciding to implement the workforce only
provides numbers but does not determine the fluctuations of the workforce. But in reality,
human resource plans are often concretized by projects that do not take much time. These
projects can be flexibly adjusted according to the actual working situation of the organization
To implement workforce planning and definition, an organization needs to follow these five
steps:
For example: Only a decade ago, no one would have heard the job title “cloud
computing engineer,” yet this is projected to be one of the fast-growing areas when it comes
to the demand for labor in the future. Thus, there is no historical data for a job like this.
Experts in this area rely instead on subjective judgments; hence, Robert Patrick, vice
president for marketing at Hewlett-Packard, confidently predicts that “the cloud skill gap is
the single biggest barrier to the future adoption of cloud infrastructures.”
Table 1: Hypothetical Transactional Matrix for an Auto Parts Manufacture (Sources: Human
Resource Management textbook, Noe et al., 2020)
2.2.3. Determine labor surplus or shortage
STEP 1:
Once forecasts for labor demand and supply are known, the planner can compare the figures
to ascertain whether there will be a labor shortage or labor surplus
For example:
In the assessment report on the current situation of human resource quality in the
construction industry of the General Construction Association, the whole country has about
78,000 enterprises operating in the construction industry with about 4 million employees.
However, this number of human resources has not yet met the requirements of the market.
Identifying the underlying reason for the shortage or surplus is also important, because this
will have a big impact when it starts to solve the problem.
Working in the auto sector, for example, was traditionally not regarded as "women's
employment" in Japan; nevertheless, when confronted with significant labor shortages due to
an aging domestic population, corporations such as Honda, Nissan, and Toyota began to hire
many more women.
Table 3: Option for avoiding labor shortage (Sources: Human Resource Management
textbook, Noe et al., 2020)
This stage is very important because it clearly plans the cost, speed, efficiency, and
human tolerance level.
For example, if an organization can anticipate a labor surplus, it will suspend hiring.
If successful, an organization can avoid layoffs altogether, so that no one has to lose their
jobs.
2.3. Goal Setting and Strategic Planning
2.3.1. Downsizing
Definition of downsizing: The planned elimination of large numbers of personnel, designed
to enhance organizational effectiveness.
In addition, many companies that are doing quite well still regularly cut staff for strategic
reasons. However, in times of recession or in the face of operational inefficiencies,
organizations still perform downsizing to strengthen the company.
For example: Because of the current complicated covid situation, French hotel group Accor
plans to cut another 1,800 jobs in 2021, the first wave of layoffs involving 1,000. On the part
of British and American brands such as IHG, Marriott or Hilton, these corporations have also
been forced to lay off 12% to 17% of their employees.
However, downsizing is not really effective and has a negative impact on long-term
performance.
● While downsizing can achieve cost savings for short-term benefits, it also results in
the loss of talent. In many cases, it also disrupts the social networks needed to foster
creativity and flexibility.
● Many downsizing campaigns let go of people who turn out to be irreplaceable assets.
For example:
Several companies such as Procter & Gamble, JCPenney, Nike, PepsiCo, and Toys
“R” Us have tapped former executives to lead their management team. These
individuals come in knowing the company well, but they also bring a new perspective
achieved by having success at some other venture.
● Workers became more negative after downsizing campaigns that made it harder to
recruit employees later.
In addition, the recruitment manager needs to recruit more qualified and knowledgeable staffs
in the provided internal and external fields.
● Offshoring:
Also, a form of outsourcing but directed to individuals from abroad, including many other
factors such as management structure, legal value, and cooperation interests.
By this way, it can help businesses absorb knowledge and techniques from other countries to
help increase value for businesses, and at the same time meet export needs.
However, outsourcing can face many barriers such as labor value and incompatibility,
security leaks, and inadequate labor value.
For example, a sales company intends to hire highly trained skilled workers from
abroad to make a difference for the company, however, the company's infrastructure does not
allow it, as well as the lack of experience of cooperation. The missing of management's
experience in that field causes a lack of understanding of how to guide and orient the business
2.3.5. Immigration
Can be understood as both individuals working abroad and immigrants seeking local work
As career support for foreign individuals, there should be transparency about the records and
background of them. Individual migrant workers should receive patronage policies from
multinational associations, as well as receive fair and consistent treatment among cooperating
countries to individuals.
2.3.6. A close look at H2-A Visas
The government provides H2-A visas that allow foreign workers into this country to do
seasonal work, mostly in agriculture. (The cultivation of rice, soybean and wheat, and other
high economic value crops such as fruits and berries require human labor ).
→ The H2-A visa has no restrictions; however, it takes almost four weeks to process, which
loses its purpose when it comes to time-sensitive seasonal products.
H1-B visa
For fiscal year 2012, the level of 65,000 applications was reached on 11/22/2011.
For Fiscal Year 2012, the 20,000 H-1B level for applicants with a master's degree or higher
from US universities was reached on October 19, 2011.
Disadvantages:
Reducing workers' hours may create a lost "opportunity cost" of lost sales.
Such a situation creates a poor working environment, which may also affect your
business.
Dissatisfied employees may become less productive, leading to lower sales. In
addition, a worker may view his reduced hours in comparison to other workers as
favoritism, which may affect his morale
Managing Hours:
Setting a performance benchmark such as monthly sales, including projections for
future sales, allows you to monitor workers' hours and plan your employees' work
schedules ahead of time.
Utilization review is the process of comparing the proportions of that group of workers in the
labor market and the proportions of that group of workers within the organization. If there is
a huge gap between these two number, the organization might be underutilized or
overutilized that source of employees.
For example, EEOC statistics showed that, in the banking industry, African
Americans held only 5% of the positions at several of the major banks, despite reflecting 15%
of the overall population. Jamie Dimon, CEO of JP ; Morgan Chase and Company, frankly,
admitted that “there is one area in where we simply have not met the standards, we have set
for ourselves—and that is increasing African American talent in the firm.” Still, the bank did
make a $5 million investment toward improving diversity, much of which was channeled into
scholarships that have an impact much further
It is good to plan for various subgroups within the organization since categorizing workers
into many small groups can help HR managers to monitor and control the entire workforce
more easily.
For example, only 15% of software engineers in Silicon Valley are women, a
proportion that is far short of their general participation rate.” The proportion is even lower
for African Americans, who represent just 1% of software engineers versus a 13% general
participation rate. Some firms are trying to respond to this situation. For example, Google has
sent several workers to predominantly African American colleges like Howard University to
help cultivate future coders.”!
3. Human Resource Recruitment Process
3.1. Introducing to the recruitment process
Human resource recruitment is the practice or activity operated by the organization in order
to identify and attract potential employees.
Recruiting is not just about the number of applicants that the company attracts, it is also about
the quality of these applicants and the organization’s expense to employ them.
For example, if a company posts a job vacancy on social media and receives a
thousand applicants, but only few of them are actually qualified for the job, then the
recruitment is not effective. Or a company hires a private employment agency to get them a
superior and talented applicant, but the cost to get that referral and the salary expense for that
employee are too high, then the recruitment is also not effective.
To avoid ineffective recruitment, there are three aspects of recruiting that the organization
must consider when doing this practice, namely,
● Personnel Policies: about the job that the organization has to offer
● Recruitment Source: about the people who apply
● Recruiter's characteristics and behavior
The figure 5.3 below will helps in visualizing how these three aspects of recruiting affect the
job choice of an applicant
“Personnel policies” is a generic term we use for organizational decisions that affect the
nature of the vacancies for which people are recruited.
For example, if the business innovates and requires a fairly new position, your staff
will have other specialties and may not be able to fill this skills gap. Relying solely on
internal recruiting means you may be missing out on the opportunity to hire people with new
skills and ideas.
Research indicates that job applicants find companies with due process policies more
attractive than companies with ‘employment-at-will policies”. Some policies to attract job
applicants:
Due process policies
Employment-at-will policies
Paying is also a possible way to compensate for less desirable characteristics of the
job - for example, paying higher wages to employees who have to work midnight
shifts or overtime. → The “lead” policy makes any given vacancy more attractive to
candidates.
However, there are limits to the use of wages to attract people to certain jobs.
For example, the U.S. The Army cannot compete on salary, because as General
Michael Rochelle, then head of recruitment, noted: "The reality is that though we must at
least maintain competitiveness, we will never be able to pay as much as the private sector.”
To offset this disadvantage in external financial reward, the military must rely on more
intrinsic rewards related to patriotism and personal growth opportunities that people associate
with military service.
A more realistic and easy-to-understand example is that with the current complicated
situation of the covid epidemic, doctors and volunteers volunteered to fight the epidemic on
the front lines. The factors of money and salary became almost an inconsequential issue but
largely related to patriotism and opportunities for personal growth.
In the past, the practice of apologizing would be done by people seeking forgiveness
by sending a letter and printing it out in a series of national papers. However, now, this
practice is no longer common, apology campaigns are conducted similar to broadcast
television events, digital advertising...
3.3. Recruitment Sources
3.3.1. Internal versus External Sources
Through LO 5-4, we have known that employers can search and recruit their employees, from
both inside and outside their organization. Internal sources of employees include the
employees within the organization, it can be from promoting and demoting employees or
moving and putting employees in different positions. External sources of employees are
applicants who come from outside of the organization which come mostly from hiring.
Internal sources versus External sources.
Cold Calling: Attempting to hire employees who are currently working for competitors. It is a
A famous case of cold calling was Apple's attempt to recruit Tim Cook when he was in an
executive role in Compaq company, the most successful computer company at that time. The
result was that Tim Cook joined Apple in 1998.
Lift out is to convince a team of employees that is currently working for your
competitor to work for you. The competitive advantage of a company will be threatened if
their crucial team were lifted out, hence HR must ensure that they can retain the company's
talented and promising teams.
3.3. Recruiter
The recruiter could be separated into HR specialists or carried also by the line managers, in a
similar way giving information, guidance, and employee training. The main purpose of a
recruiter is to guide internships for employees to create useful human resources, at the same
time evaluate employee’s productivity and define the roles of those individuals.
The recruitment agencies can bring opportunities to company in many aspects, including:
The recruitment team is usually professionally trained, so they can clearly understand
the candidate's role and capabilities, as well as understand the surrounding conditions
and the market situation
The recruitment team often has connections with many individuals outside of the
company, as well as ways to specialize in keeping in touch with them in the form of a
broader association than within the company
Instead of spending a certain amount of money to train existing employees, the
recruitment department can help hire employees who specialize in those jobs, which
is also very necessary in the stages that require a high level of expertise
4. Conclusion
Human resource planning anticipates labor shortages and surpluses by using labor supply and
demand predictions. It also includes measures for reducing a labor surplus and eliminating
labor shortages.
Human resources planning can enhance the success of the organization while
minimizing the humans suffering resulting from poorly anticipated labor surplus and
shortages. Human resources recruiting is a buffer activity that creates an applicant pool that
the organization can draw from in the event of a labor shortage that is to be filled with the
new hires. Organizational recruitment programs affect applications through personnel
policies that affect the attributes of the vacancies themselves. They can also impact the nature
of people who apply for positions by using different recruitment sources. Organizations can
use recruiters to influence individuals’ perceptions of jobs or perceptions of themselves.
5. References
Noe, R., Hollenbeck, J., Gerhart, B., & Wright, P. (2020). Human Resource Management