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Dessler, Cole, Goodman, and Sutherland

In-Class Edition
Management of Human Resources
Canadian Edition

Chapter Four

Human Resources
Planning and
Recruitment

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The Strategic Role of Human
Resources Planning

HR Planning
review human resources requirements to
ensure:
the necessary number of employees
the necessary employee skills
to meet organizational goals

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The Strategic Role of Human
Resources Planning

Importance of HR Planning

-plan staffing and development activities


achieve economies in hiring
anticipate and avoid staff shortages/surpluses
establish employment equity goals/timetables

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The Strategic Role of Human
Resources Planning

HR Planning Strategic Planning

reciprocal and interdependent relationship


environmental scanning critical for both

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The HR Planning Process

3. Balance Supply and Demand

2. Forecast Future Internal/External Candidates


(Supply)

1. Forecast Future HR Needs (Demand)

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Forecasting Future HR Demand

Forecasting based on:


quality and nature of employees
decisions regarding product quality
plans for technological change
financial resources

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Forecasting Future HR Demand

Quantitative Approaches

Trend analysis: review past employment levels


Ratio analysis: ratio of business activity/employees
Scatter plot: graph of business activity/employees
(regression or forecasting software can enhance
the scatter plot)

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Forecasting Future HR Demand

Qualitative Approaches
1. Nominal Group Technique
experts meet face-to-face
group discussion facilitates exchange of ideas
possible subjectivity, group pressure
2. Delphi Technique
experts work independently
wide range of views
difficult to integrate diverse opinions
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Forecasting Future HR Supply
(Internal Candidates)

Skills Inventories
manual or computerized records
used to identify internal candidates for transfer
or promotion
summary of each employees:
education
experience
interests
skills
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Forecasting Future HR Supply

Replacement Charts

visual representations of likely internal


replacement employees for each position
data on each candidate includes:
age
present performance rating
promotability status

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Forecasting Future HR Supply

Succession Planning

plans to fill key executive positions


maintains a supply of successors for current
and future jobs
balances organization's needs for top
managers with the potential and aspiration of
internal candidates
support individual career development

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Forecasting Future HR Supply
(External Candidates)

general economic conditions


national labour market conditions
local labour market conditions
occupational market conditions

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Balancing Supply and Demand

Dealing with a Labour Surplus

hiring freeze
attrition
buy-out and early retirement programs
reducing hours (job sharing, reduced
workweek, part-time work, work sharing)
layoffs
termination with outplacement assistance

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Balancing Supply and Demand

Dealing with a Labour Shortage

overtime
hiring temporary employees
subcontracting work
external recruitment
transfers
promotions

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Recruitment

process of managing a labour shortage by


searching for job candidates:
adequate number
qualified
from whom to select staff needed to meet
job requirements

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Recruitment

Purposes of Recruitment
generate adequate pool of candidates at
minimum cost
increase success rate of selection process
achieve employment equity goals
attract qualified candidates suited to
organizational culture

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The Recruitment Process

Generate pool of qualified candidates

Select methods of recruitment

Specify job requirements

Identifying job openings

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Constraints on the Recruitment
Process

organizational policies and plans


job specifications
inducements of competitors
environmental factors

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Recruiting Within the Organization

Advantages

enhanced morale if competence is rewarded


more commitment to company goals
longer-term perspective on business decisions
more accurate assessment of candidates skills
less orientation required

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Recruiting Within the Organization

Disadvantages

discontent of unsuccessful candidates


time consuming to post and interview all
candidates if one is already preferred
employee dissatisfaction with insider as new
boss
possibility of inbreeding
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Recruiting Within the Organization

Requirements

Human
Job Skills
Resources
Posting Inventories
Records

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Recruiting Outside the Organization

Advantages

larger, more diverse pool of qualified candidates


acquisition of new skills and knowledge for
creative problem solving
elimination of rivalry for transfers/promotions
cost savings from hiring skilled individuals with
no need for training

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Recruiting Outside the Organization

Yield Pyramid

50 New hires

100 Offers made (2:1)

150 Candidates interviewed (3:2)

200 Candidates invited (4:3)


1200
Leads generated (6:1)
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Recruiting Outside the Organization

Methods

online recruiting
print advertising
private employment agencies
executive search firms
educational institutions
other (walk-ins, employee referrals, HRDC etc)

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Recruiting Outside the Organization

Non-Permanent Staff

temporary help agencies


contract workers
employee leasing
outsourcing/subcontracting

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Recruiting Outside the Organization

Online Recruiting

Three approaches:
1. Internet job boards
2. Company Website and intranet
3. Application Service Provider software rental

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Recruiting Outside the Organization

Advertising

media to be used depends on:


type of position
type of candidate
construction of the ad:
AIDA (attention; interest; desire; action)
want ads vs. blind ads

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Recruiting Outside the Organization

Use of Private Employment Agency

no HR department
past difficulty in generating pool of qualified
candidates
position must be filled quickly
desire to recruit designated group members

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Recruiting Outside the Organization

Executive Search Firms

often specialize in particular type of talent


adept at approaching employed candidates
not currently looking for a job
confidentiality

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Recruiting a More Diverse
Workforce

older workers
younger workers
designated group members:
women
visible minorities
disabled
Aboriginal
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