Human Resource Management PDF

Definition of Human Resource Management planning, where the organization forecasts its current and future staffing needs by analyzing Designing management systems to ensure workforce trends and the labor market. This i...

Definition of Human Resource Management planning, where the organization forecasts its current and future staffing needs by analyzing Designing management systems to ensure workforce trends and the labor market. This is that human talent is used effectively and followed by recruitment or decruitment, where efficiently to accomplish organizational recruitment focuses on attracting qualified goals (Mathis, 2010). candidates to fill positions, while decruitment addresses reducing the workforce when necessary “the process of managing human talent due to organizational changes like downsizing. to achieve an organization’s objectives.” The selection process is crucial for identifying and (Snell & Morris, 2019). choosing the most suitable candidates through methods like interviews, tests, and background a function in organizations designed to checks. Once selected, new employees undergo maximize employee performance in service orientation, where they are introduced to the of an employer’s strategic objectives. HR is company’s policies, culture, and job-specific roles primarily concerned with the management to ease their integration. The next stage, training, of people within organizations, focusing on equips employees with updated skills and policies and on systems (Lumen Learning). knowledge to ensure they are capable of performing their duties effectively. Performance the process of employing people, training management involves monitoring, evaluating, and them, compensating them, developing providing feedback on employee performance to policies relating to them, and developing ensure alignment with organizational goals. To strategies to retain them” (Principles of retain employees, compensation and benefits Management) are designed to provide fair and motivating rewards, such as competitive salaries, health benefits, and bonuses. Career development Functional Approach Strategic Approach offers employees opportunities to grow and First definition The second definition advance through skill-building programs, considers it as a considers HRM in a promotions, or mentorship, ensuring long-term specific approach to more comprehensive career progression. Finally, retention strategies manner,... , but as a focus on keeping competent and high-performing manage employment broader function relationships that is employees by fostering a positive work directly linked to a oriented to firm’s strategy. environment, recognizing their achievements, and commitment offering opportunities for further career growth within the organization. National Cash Register Co. — believed that the HRM PROCESS (FUNCTIONAL) first personnel management department began here.. The Relationship of Organizational Behaivor to Other Closely Related Disciplines The Human Resource Management (HRM) process includes several critical stages to ensure the effective management of an organization’s workforce. It begins with human resource  At the macro-theoretical level, OB The Ulrich model outlines the evolution of Human connects with disciplines like Resource Management (HRM) through four key organizational theory and sociology, waves. The first wave, HR Administration, which explore how organizations operate focused on basic administrative tasks like payroll as complex systems. and record-keeping, emphasizing efficiency in At the macro-applied level, OB overlaps routine functions. In the second wave, HR with strategic management and Practices, organizations began developing organizational development, where standardized processes for recruitment, training, theories are applied to improve overall and performance management, leading to more organizational performance, structure, and consistent HR operations. The third wave, HR culture. Strategy, saw HR becoming a strategic partner At the micro-theoretical level, OB is that aligned HR initiatives with business goals, closely related to psychology, particularly focusing on talent management and organizational social and industrial-organizational culture. Finally, the fourth wave, HR Outside-In, psychology, which explores individual and shifted the perspective to consider external factors group behavior in organizations. such as market trends and customer needs, At the micro-applied level, OB links to highlighting the importance of adaptability and human resource management and responsiveness in HR practices. Together, these leadership studies, where the focus is on waves illustrate HR's transformation from an applying behavioral theories to improve administrative role to a vital component of individual and group performance within organizational success. organizations. In this framework, Organizational Behavior sits at the intersection of these fields, drawing from both macro and micro perspectives and bridging theory with practical application to understand and influence behavior within organizations. The Evolution of HRM HRM as a core competency A unique capability that creates high value and differentiates an organization from its competition. Productivity, quality, employee skills, and innovative operations are the core competencies in HR ares (PIOQE) Human Capital — collective value of the capabilities, knowledge, skills, live experiences, and motivation of an organizational workforce. Also known as intellectual capital. Industrial and Organizational Psychology — relevant branch of psychology to HR Management and HR — Management is the central role in driving business success and planning, organizing, leading, and controlling of fostering organizational growth. human and other resources to achieve organizational goals efficiently and effectively. ——————— End of Topic 1A —————— FUNCTIONS OF HRM 1. Human Resource Planning Strategy — An organization’s proposition for how 2. Recruitment and Selection to compete successfully and thereby survive and 3. Training and Development grow. May either be formal or informal. Usually 4. Motivating Employees/Compensation and encompasses a 5-year period with objectives and Benefits goals for each unit. 5. Performance assessment and management Levels of Strategy 6. Labor relations / dealing with employment 1. Corporate level laws and policies 2. Business level 3. Functional level Objectives of HRM 1. Effective utilization of human resources The three levels of strategy in an organization are 2. Desirable working relationships among all corporate strategy, business strategy, and members of the organization functional strategy. Corporate strategy focuses 3. maximum individual development on the overall direction of the organization, determining what industries or markets to operate Dave Ulrich’s HR Roles in and how to allocate resources among different business units. Business strategy is concerned with how to compete successfully in a particular market, emphasizing competitive positioning, market differentiation, and customer engagement. Finally, functional strategy involves specific plans and actions within departments such as marketing, finance, and human resources, ensuring that each function supports the overall corporate and business strategies. Together, these three levels create a cohesive framework for achieving organizational goals and responding to market demands. The evolution of Human Resource Management (HRM) through the Ulrich model outlines how HR Forward Integration — This strategy involves a has transformed from administrative functions to company taking control of the distribution and sale becoming a strategic partner in business. Initially, of its products or services, typically by acquiring or HR focused on personnel management, handling merging with distributors, retailers, or other entities basic tasks like payroll and employee records. As that are closer to the end customer. organizations grew more complex, HR shifted to Market Penetration — focuses on increasing the Ulrich model, which introduced four key roles: sales of existing products or services within an Strategic Partner, aligning HR strategies with existing market. business goals; Administrative Expert, improving Backward Integration — control over its supply efficiency in HR processes; Employee Champion, chain by acquiring or merging with suppliers or addressing employee needs and concerns; and producers of raw materials.By doing this, the Change Agent, leading organizational company can ensure a steady supply of materials, transformations. This model emphasizes HR's reduce costs, and improve efficiency, ultimately evolution from operational tasks to playing a gaining more control over its production process. Horizontal Integration — This means that a scope(narrow vs. broad), while the X-axis business expands its operations by buying or represents the source of competitive advantage combining with competitors or firms that offer (cost vs. differentiation). In the Cost Leadership similar products or services. The main goals of quadrant, companies aim to be the lowest-cost horizontal integration are to increase market producers in their industry, serving a broad market share, reduce competition, achieve economies of by minimizing operational costs, which allows scale, and enhance the company's overall market them to offer lower prices than competitors, as presence. seen in companies like Walmart. The Differentiation quadrant focuses on creating Retrenchment — used by organizations to reduce unique products or services that provide distinct their scale of operations or cut back on expenses value to a broad market, enabling companies to in response to financial difficulties, declining command higher prices; Apple is a prime example, market conditions, or other adverse known for its innovative design and technology. circumstances. This strategy often involves The Cost Focus strategy targets a specific niche downsizing the workforce, selling off non-core or market segment while striving to be the business units, or reducing product lines to lowest-cost provider within that segment, often improve efficiency and profitability. tailoring offerings to meet particular customer needs, similar to discount retailers that cater to Divestiture — when a company sells or gets rid of specific demographics. Finally, the Differentiation a part of its business, like a subsidiary or asset. Focus strategy aims to deliver unique products or Companies often do this to focus on their main services tailored to a narrow market, allowing activities, improve their finances, or respond to companies to stand out from competitors by market changes. By selling off parts of the understanding and addressing the specific business that are not essential or not performing preferences of their niche audience, such as well, a company can streamline its operations and luxury brands offering bespoke products. Overall, use its resources more effectively. Divestitures can this framework helps businesses determine how to happen in different ways, such as selling to compete effectively by choosing their scope and another company, making a part of the business competitive advantage approach. its own independent company, or even taking a subsidiary public. This strategy helps companies Functional Strategy concentrate on what they do best and stay competitive. Liquidation — process of closing down a business and selling off its assets to pay creditors and shareholders. This strategy is typically employed when a company is unable to meet its financial obligations, faces bankruptcy, or decides to exit a particular market or industry. Functional strategy refers to the specific plans and Business Level Strategies actions that different departments within an organization undertake to support the overall The table of business strategy. This can be broken down into business-level four key quadrants: Marketing, Financial, strategies is Operational, and Human Resources. The organized into Marketing strategy focuses on promoting and four quadrants selling products or services, identifying target based on two markets, and developing branding and advertising axes: the campaigns to attract customers. The Financial Y-axis strategy involves managing the company’s represents the finances, including budgeting, forecasting, investment decisions, and optimizing cash flow to translating the mission, vision and values into job ensure financial stability and growth. The descriptions and specific behaviors and Operational strategy centers on improving the recognizing and rewarding employees based on efficiency of production processes and service them. delivery, ensuring that resources are used effectively to meet customer demands and External Analysis enhance productivity. Lastly, the Human Benchmarking is the process of looking at your Resources strategy is concerned with managing practices and performance in a given area and the workforce, including recruitment, training, then comparing with those of other companies. performance management, and employee Human Capital Metrics- assess aspects of development, to build a motivated and skilled the workforce team. Together, these functional strategies align HR metrics- assess the performance of the with the organization’s overall goals, ensuring that HR function itself. each department works cohesively to drive success. HR Metrics Strategic Planning is the process of defining an organizational strategy, or direction, and making decisions on allocating the resources of the organization to pursue this strategy. Strategic Planning Process 1. Organizational mission 2. SWOT analysis 3. Establish Goals and Objectives 4. Formulate Organizational Strategy 5. Formulate Supporting Functional Strategies 6. Implement Internal Analysis 7. Evaluate and Reassess 1. Type of talent and their composition in the workforce Strategic HR management strategic knowledge workers refers to the use of human resource core employees management (HRM) practices to gain a supporting workers competitive advantage. complementary(external) partners. entails providing input into organizational 2. Corporate culture strategic planning and developing specific 3. Forecasting HR initiatives to help achieve the 4. Gap analysis – human capital organizational goals. means adding value by improving the Strategy Formulation – A firm’s HR strategy must performance of the organization. work in tandem with its corporate and business strategies. HR’s Roles in Establishing and Reinforcing a Firm’s Mission, Vision, Values Establishing: formulating, vetting, and fine-tuning a firm’s mission, vision and values Reinforcing: communicating the firm’s mission, vision and values frequently, both informally and formally; recruiting and hiring employees whose values are consistent with the organization; At the corporate level, strategy is concerned with ❖ Vertical fit/alignment – connection the overall scope of the organization. It involves between business initiatives and HR decisions about which industries or markets to initiatives compete in and how to allocate resources across ❖ Horizontal fit/alignment – internal various business units. Corporate strategy aims to alignment of HR practices create long-term value by expanding or ❖ Strategic alignment & the balanced diversifying the company's portfolio, whether scorecard – helps managers translate the through entering new markets, merging with other firms’ strategic goals into operational companies, or divesting from underperforming objectives. segments. The focus is on setting broad objectives that shape the future of the entire organization. Balanced Scorecard Framework The business-level strategy focuses on individual business units or product lines. Here, the primary goal is to develop competitive advantages within a specific market. Business units decide how they will compete, whether through cost leadership, differentiation, or niche focus. The decisions made at this level determine how to attract and retain customers, innovate, and outperform competitors in their respective markets. Finally, the functional-level strategy is concerned with the operations of specific departments like The Balanced Scorecard is a strategic marketing, finance, or human resources. This level management tool developed by Robert Kaplan ensures that each function contributes to the and David Norton. It helps organizations translate business unit's success. Functional strategies their vision and strategy into a coherent set of involve detailed actions and practices that help performance measures. Unlike traditional support business-level goals, ensuring efficiency performance measurement systems that focus and alignment with the broader organizational only on financial outcomes, the Balanced objectives. Scorecard provides a more comprehensive view by balancing financial and non-financial measures Strategy Execution – (1) Remaining agile in across four key perspectives: terms of coordination and allocation of resources (2) Reconciling supply and demand ❖ Financial ❖ Internal business processes ❖ Customer ❖ ;Learning and growth ——————— End of Topic 1B —————— Human Resource Planning – process of analyzing and identifying the need for and availability of human resources so that the organization can meet its objectives. Focuses on the right number of human resources, with the right capabilities, at the right times, and in the right places. Strategy Evaluation – firms need to establish a Time frame: long-term set of “desired” objectives as well as the metrics they will use to monitor how well their organizations delivered against those objectives.  Steps in the HR Process HR Planning Process 1. Consider the organizational strategic planning objectives 2. Assessing the External and Internal Workforce a. External Workforce Economic Factors– interest rates, inflation, and economic decline or growth Governmental Factors– laws, policies, and regulations Competitive evaluations– net emigration, direct competitors, international competition Changing workforce considerations– aging workforce, diversity, female workers and work-life balance, contingent workers, outsourcing. The HR planning process begins with reviewing b. Internal Workforce the organization's HR strategic plans to ensure Current and future jobs audit alignment between workforce planning and overall Employee and organizational capabilities business objectives. This step involves inventory – demographics, career understanding the company’s long-term goals, progression, individual performance data such as growth, restructuring, or technological advancements, and determining how HR can support these initiatives. Next, HR professionals 3. Forecasting HR Supply & Demand assess the external and internal workforce, Forecasting uses information from the past and analyzing factors like the current talent pool, present to identify expected future conditions. employee skills, and demographics, as well as Forecasting Methods external labor market conditions, including industry ❖ Judgemental (Qualitative) Methods trends, competition, and economic shifts. This Estimates assessment helps identify gaps between the The rule of thumb current workforce and future needs. Following this, The Delphi technique HR teams compile HR planning forecasts, Nominal groups where they predict future staffing needs based on anticipated changes in the organization, such as Judgmental (qualitative) methods in forecasting expansion, new projects, or retirements. This HR needs rely on subjective assessments and forecasting helps determine the number and types expert opinions to predict future staffing of employees required in the short, medium, and requirements. One common technique is using long term. Finally, HR develops staffing plans estimates, where managers or HR professionals and actions to address the identified workforce make educated guesses about future labor needs needs. This includes recruitment strategies, based on their experience and understanding of employee training and development programs, the business. For example, a department head succession planning, and restructuring initiatives might estimate the need for additional staff based to ensure the organization has the right talent in on anticipated growth in project volume. The rule place to meet its strategic objectives. This of thumb is another qualitative method, where structured process helps organizations manage organizations apply established heuristics or workforce requirements effectively and proactively. general principles to predict HR needs. For instance, a company might use a rule of thumb that suggests hiring one new employee for every ten percent increase in sales. The Delphi and productivity of their workforce. For instance, a technique involves gathering insights from a manufacturing company might calculate the ratio panel of experts through a series of iterative of units produced per employee to forecast how surveys. Experts provide their forecasts changes in production targets might influence independently and anonymously, and after each staffing needs. Staffing ratios, on the other hand, round, a summary of findings is shared, allowing relate the number of employees needed to specific experts to adjust their predictions. For example, a business metrics, such as sales or customer panel of industry specialists might forecast future service levels. For example, a retail chain might labor trends in a technology sector, refining their use a staffing ratio of one employee per X number predictions through multiple rounds of feedback. of customers to determine how many staff Finally, the nominal group technique is a members are required based on expected structured method where a group of experts meets customer traffic. These quantitative methods offer to discuss and rank their predictions. Participants a rigorous, data-based approach to forecasting HR individually list their forecasts, share and discuss needs, providing organizations with valuable them in a group setting, and then collectively rank insights for strategic workforce planning. the most likely scenarios. For example, a team of HR managers might use this technique to prioritize Forecast Horizons future staffing needs based on various Time Horizons of HR Planning departmental demands. Each of these methods ❖ Short term (up to 1 year) offers a unique approach to forecasting HR needs, ❖ Intermediate term (1-3 years) emphasizing the importance of expert judgment ❖ Long term (more than 3 years) and collaborative input in the planning process. Forecasting the Demand of Labor Resources ❖ Mathematical (Quantitative) Methods Aggregate Forecast– forecast for the entire Statistical regression analysis organization Simulation models Disaggregated Forecast– forecast per unit or Productive ratios department Staffing ratios Consideration on: Mathematical (quantitative) methods in Creation of new jobs forecasting HR needs employ data-driven Reduction of current jobs techniques to predict future staffing requirements Promotions with greater precision. Statistical regression Transfers analysis is one such method, which involves Turnovers using statistical techniques to identify relationships Termination between variables and forecast future needs based on historical data. For instance, a company Decision rules or “fill rates”: might use regression analysis to determine how Hiring from within– x % of 100% changes in sales volume correlate with the number Hiring from outside- y % of 100% of employees required, helping to predict staffing Promotions- z % of 100% needs based on projected sales growth. Simulation models provide a dynamic approach Forecasting the Supply of Labor Resources by creating various scenarios and testing how different factors impact staffing requirements. For ❖ External Supply example, a company might use simulation models Net migration into and out of the area to assess how different economic conditions or Individuals entering and leaving the business strategies could affect future staffing workforce needs, allowing for more flexible and responsive Changing workforce composition and planning. Productive ratios involve calculating patterns the ratio of output to the number of employees, ❖ Internal Supply helping organizations understand the efficiency  Considers the number of external hires External supply refers to recruiting talent from Employees who move from their current outside the organization, which involves seeking jobs into others through promotions, candidates from the broader labor market. This lateral moves, and terminations. can include various methods such as job postings, recruitment agencies, and professional networking. External supply is often used to bring in fresh perspectives, new skills, and experiences that may not be available within the current workforce. In contrast, internal supply involves filling positions with existing employees through promotions, transfers, or internal training programs. This approach leverages the current workforce's existing knowledge of the organization’s culture and processes, potentially leading to a smoother transition and faster integration into new roles. While external recruitment can introduce innovative ideas and fill skills gaps, internal supply focuses on employee development and retention, promoting a sense of loyalty and career growth among current staff. This approach in estimating internal labor supply Each method has its advantages and is typically provides a clear and systematic method for used in combination to address various workforce planning. To estimate the internal organizational needs. labor supply for the next year, begin with the current staffing level of a unit. From this baseline, 4. Analyzing Current workforce and skill Gaps subtract the projected outflows for the year, which encompass various factors such as promotions (when employees move to different roles or departments), turnover (voluntary separations by employees), terminations (involuntary separations), demotions (downward job changes), retirements, deaths, and layoffs. These outflows represent the expected reduction in the workforce. Next, add the projected inflows, which include external hires (new employees recruited from outside the organization), internal transfers (employees moving from one unit to another within the organization), promotions (advancements of current employees to higher positions), and recalls (reinstatement of former employees). By adjusting the current staffing level with these inflows and outflows, the formula yields an estimate of the HR forecasting Model - is a structured approach internal labor supply available for the next to predicting the needed future workforce of an year. This estimation helps organizations organization (demand) and the availability of the anticipate workforce changes and manage employees available to meet those needs (supply) staffing levels effectively to meet future operational needs. This model helps an organization in aligning their workforce with strategic goals The difference between external and internal by accurately estimating the number and supply of labor the type of employees required in the future. Forecasting Demand A growth in organization can drive the need for an additional employees and - It involves anticipation of the quantity and conversely, downsizing may reduce the quality the need of workforce Considerations 7. Management Philosophy 1. Product/ service demand The attitudes and approaches of the Refers to the anticipated demand for organization’s management towards the org’s product and services, which human resources, such as their directly impacts the needs for approach to employee development, employees recruitment, and retention, can i. Higher demand for services influence HR forecasting. means more staff needed ii. Lower Demand for products Techniques means less workforce or 1. Trend Analysis - using hist data to project may lead to reduced future needs and (such as employee workforce headcount, turnover rates, and productivity) to identify patterns or trends 2. Economics over time. Economic conditions of the country and overall economic health, can 2. Ratio Analysis - Determining the affect the hiring needs relationship between business metrics i. Economic Boom - increased (e.g., sales volume) and staffing levels. hiring 3. Managerial Estimates - managerial ii. Economic recession - estimates involve leveraging the layoffs or reduced experience and judgment of managers and employment HR professionals to forecast HR needs 3. Technology 4. Delphi Technique - gathers expert opinions Tech advancements can impact the to reach a consensus on future HR needs skills required within the org. May include the opinions of internal New tech may create create the need and external consultants for employees with more enhanced skills, and may reduce the need for FORECASTING HR SUPPLY certain types of roles Involves assessing the availability of the 4. Financial Resources current and future employees who can Budget determines the ability of an meet the demand. org to recruit, retain, and compensate Techniques the employees. It can limit the hiring or lead to adjustments in 1. Staffing tables - visual tool that displays compensation and benefits. the current workforce. It helps in visualizing and planning 5. Absenteeism/Turnover for future staffing needs and It affects the stability of the workforce identifying areas where addtl and the org’s need for replacement resources may be needed staff. Monitoring and managing these 2. Markov analysis - a statistical method used factors is crucial to maintain a to predict the movement of employees consistent workforce within an organization over time Includes the hist data of an 6. Organizational Growth employee (promotions, transfers,  exits) to forecast future movement While replacement charts address and identify potential staffing immediate needs, succession planning ensures a continuous pipeline of talent for 3. Skills inventories - Maintaining an future transitions and leadership roles. up-to-date list of employee skills, experience, and qualifications Helps in assessing available talents External Considerations within the orgs and identifying skill 1. Demographic changes - Changes in the gaps that need to be addressed to population's age structure, size, and meet future demands. composition can impact the labor supply 4. Management inventories - focuses on the 2. Education level - The overall education qualifications, performance, and potential level of the labor force affects the supply of of individuals within an organization. qualified candidates. An increase in Helps in planning for managerial educational attainment generally raises the succession and identifying future number of skilled and qualified individuals candidates for key leadership roles available for various roles. 5. Replacement charts - charts that outline 3. Labor mobility - This refers to the ease with the potential internal candidates who can which workers can move between jobs, fill key positions in the event of a vacancy. industries, or geographic locations. High Helps in identifying and preparing labor mobility can affect the supply of backup candidates for critical roles candidates for specific roles and may in case of departures influence recruitment strategies. 6. Succession planning - a strategic approach 4. Government policies - Policies such as to identifying and developing internal labor laws, immigration regulations, and talents to fill key positions in the future. minimum wage requirements can impact Technique that involves creating the supply of labor. Changes in these development plans for potential policies can either constrain or expand the successors and ensuring that there pool of available talent is available to step into critical role as they became available 5. Unemployment rate - The unemployment rate is an indicator of the number of people Difference of Replacement charts vs. succession actively seeking work. A high planning unemployment rate typically means a larger pool of job seekers, making it easier Replacement charts focus on identifying to find candidates. internal candidates who are immediately ready to fill key positions in the event of a sudden vacancy, providing a short-term 5. Developing strategies to address workforce solution for backup planning. They visually gaps (1) represent current employees and their potential to step into critical roles quickly. SHORTAGE In contrast, succession planning is a 1. Recruitment/ selection plan - covers the strategic, long-term approach that sources and methods of recruitment emphasizes developing and preparing including advertisement campaigns, employees for future leadership and key selection testing and proposals for positions. It involves creating development deadlines with particularly difficult plans to nurture high-potential employees recruitment areas. and align their growth with organizational These include creating strategies goals. to attract and select qualified  candidates, identifying skill a) Recruiting - Developing plans to attract shortages, and targeting qualified talent, especially in areas where recruitment efforts to fill those gaps. there are skills shortages. b) Training and retraining - Investing in employee development to enhance current 2. Retention plans - conducting exit interviews skills or teach new ones to provide detailed information as to the c) Contingent staffing - Contingent workers causes of staff turnover and can be the include freelancers, gig workers, and other catalyst for the interview of new initiatives. types of non-full-time staff. focus on retaining key employees to d) Temporary workers - temporary employees reduce turnover for specific projects i. offering competitive salaries e) Part-time employees - Hiring employees to ii. growth opportunities work fewer hours than full-time staff iii. positive workplace culture f) Contract workers and consultants - Hiring iv. work-life balance initiatives professionals on a contractual basis for 3. The “soft” aspects - need for their expertise in specific areas. organizational, cultural, and behavioral g) Outsourcing- Contracting out specific changes, and are essentially long-term business processes or tasks to third-party processes providers These refer to intangible or less quantifiable elements like employee h) Succession planning - the process of engagement, workplace culture, identifying, developing, and tracking key leadership style, communication, individuals for executive positions and interpersonal relationships. i) Preparing for the future by Addressing the "soft" aspects is identifying and developing internal essential for creating an attractive employees to take over key roles work environment, fostering loyalty, when current leaders or critical staff and ensuring long-term retention. members leave. SURPLUS 4. Disposal Plans - elimination of the surplus SURPLUS (timing, legal consultation, compulsory or voluntary a. Reduce employees work hours redundancies. b. Implement hiring freeze Disposal plans are a component of c. Lay-off or furlough employees workforce planning that involves making d. Offer employees early retirement decisions about how to handle surplus staff or those who are no longer a good fit. i. Layoffs ii. Voluntary exit plans iii. Reassignment iv. Retraining v. Redeployment vi. First in first out 5. Developing strategies to address workforce gaps (2) SHORTAGE  TOPIC 2: EMPLOYMENT RECRUITMENT i. Creating accurate and detailed job descriptions is critical in Before launching fully into a recruitment process, recruitment. some factors should be considered: They should clearly outline the duties, 1. have all the strategies to address the responsibilities, and qualifications required for the shortage already explored? role. 2. Succession plan This ensures that applicants know what is - are there talents who are ready to expected and helps to attract the right take on the new role candidates. 3. immediately? or does the talent need further development? Parts of a Job description: 4. Internal promotion or lateral move 1. Identification - done instead of recruitment - basic information that identifies the job and creates a domino effect in the its place within the organization. It may organization include: example: instead of recruiting a Job title: The official title of the department supervisor, the position. assistant department supervisor is Department: The department or promoted to the vacant role, and division the job belongs to. the recruitment shifts to a staff Reports to: The supervisor or position manager to whom the position ! What if the talent needs further development? reports. - “developmental assignment” - the talent Job code: If applicable, a code to is assigned to the role on an acting classify the job within the capacity supported by a development plan. company's HR system. Job location: Where the job is PRE-RECRUITMENT ACTIVITIES based (physical location, remote, etc.). 1. Roles and Responsibilities a. HR Manager: Oversees the entire 2. General Summary recruitment and hiring process. - a brief overview or description of the job’s i. They ensure that recruitment primary purpose. strategies align with: This section usually consists of a company policies, long-term few sentences that outline the goals, and workforce needs. main objective of the role and ii. The HR manager is responsible for how it fits into the organization. It creating an efficient process, answers the question: managing budgets, and ensuring ! What is the job designed to accomplish? compliance with labor laws. Example: Sales Manager might be: "The b. HR Recruiter: Focuses on sourcing, Sales Manager is responsible for leading interviewing, and selecting candidates. the sales team, developing sales i. They actively seek qualified strategies, and ensuring the company candidates using a variety of meets its revenue goals. This role also methods, handle initial screenings, involves identifying new markets and and serve as the primary contact maintaining relationships with key clients." between the company and applicants. 3. Essential Job Functions and Duties/Tasks, Duties, and Responsibilities c. Job Descriptions - This section lists the core responsibilities that the job entails.  These are the primary tasks that the without having to rewrite the entire job employee is expected to perform, which description. could include both day-to-day duties - Example: "The above statements are and long-term responsibilities. They intended to describe the general nature must be specific and clearly defined to set and level of work being performed. They clear expectations for performance. are not intended to be an exhaustive list of all responsibilities, duties, and skills ★ Essential job functions: Critical duties that required of the employee." are fundamental to the role and cannot be removed without changing the job itself. Approvals: This part is where the job ○ Ex. Prepare and deliver sales description is formally approved by the presentations to potential clients. relevant parties, such as the department ★ Duties/Tasks: Regular tasks the employee head, HR manager, or legal team. will perform as part of their daily activities. - It includes signatures and dates to ○ Ex. Manage and oversee the ensure the document is reviewed activities of the sales team. and accepted by those in authority. ★ Responsibilities: Broader areas of It ensures accountability and accountability, such as overseeing compliance with internal and projects, managing teams, or meeting external policies. performance targets. —---------------------------------------------------------------- ○ Ex. Develop sales forecasts and -- ensure sales targets are met. 2. Employer Branding - Refers to the process of promoting a 4. Job Specifications company as a desirable place to work. - Outlines the qualifications, skills, It involves creating a positive experience, and other requirements reputation to attract top talent. needed for a candidate to be considered Companies with strong employer for the job. It includes: brands are perceived as great Education: Required degrees, places to work, which helps them certifications, or licenses (e.g., Bachelor’s attract and retain talent more degree in Marketing). effectively. Experience: Number of years and type of ! How to Enhance Employer Branding relevant work experience (e.g., 3-5 years of Highlight their company culture, values, sales experience). and mission. Skills: Specific skills necessary for the job Offer competitive benefits and (e.g., proficiency in CRM software, strong opportunities for growth. communication skills). Share employee success stories and Physical requirements: If the job demands testimonials. specific physical capabilities (e.g., ability to Utilize social media and online platforms to lift 50 lbs.). showcase the work environment. Other qualifications: Language fluency, technical expertise, or other relevant qualifications. 3. Additional Considerations 5. Disclaimers and Approvals a) Recruitment Budget Disclaimers: Job descriptions often - Budget planning is vital in pre-recruitment. include a disclaimer that duties and HR managers need to allocate resources responsibilities can change over time. efficiently to cover advertising costs, - This gives the employer flexibility to adjust the job role based on organizational needs  candidate sourcing, and other Example: If a company needs a project manager recruitment-related expenses. with 5 years of experience and a certification in PMP, then these are non-negotiable recruitment b) Quick Results Recruitment Sources goals that must be included in the plan. - These are recruitment methods designed to generate results quickly, such as: b) Review of Success Profiles or Job Descriptions Employee referrals: Asking current - Success profiles or job descriptions provide employees to refer candidates. a clear understanding of what makes Online job boards: Posting openings on someone successful in the role. platforms like LinkedIn, Indeed, or Reviewing these profiles ensures that the Glassdoor. recruitment process is aligned with the Job fairs and campus recruitment: company's expectations for performance. Targeting fresh graduates or candidates from specific industries. Success profile: Includes not only the job description but also traits, behaviors, and skills c) Broad-Based Recruiting that contribute to exceptional performance. - This strategy involves casting a wide net to Job description: refer to the definition prior to this attract a diverse pool of applicants from various backgrounds, industries, or c) Recruitment Timeline regions. - A recruitment timeline outlines the steps in It may include: the hiring process and the time allocated to - online recruiting, social media, and each step. It ensures the recruitment advertising in different regions or process is structured and completed within job platforms. a reasonable timeframe to avoid delays. d) Exemption Status Steps in the timeline: Posting job ads, - This refers to the classification of job screening resumes, conducting interviews, positions as exempt or non-exempt from and making offers. overtime pay under labor laws. Proper Why it’s important: A clear timeline helps classification ensures that employers avoid extended vacancies, ensures the comply with wage regulations. company can act quickly to secure top talent, and allows the HR team to manage 4. Effective Recruitment Plan their time effectively. a) Recruitment Goals d) Recruitment Budget - refer to the specific objectives a company - The recruitment budget involves allocating aims to achieve during the hiring process. financial resources to cover the costs These goals typically include identifying the associated with hiring. This includes skills, experience, and qualifications expenses such as advertising job postings, needed to perform the job successfully. using recruitment agencies, conducting They may also include diversity targets, background checks, and paying for cultural fit, or job-specific requirements. recruitment software or tools. Non-negotiable competencies or "must-haves": Components of the budget: Job board fees, - These are the qualifications that external recruiters, candidate travel candidates must possess to be considered expenses, or referral bonuses. for the role. For instance, if the job requires Why it matters: Without a well-planned a high school diploma, that becomes a budget, recruitment efforts can become "must-have" or a baseline qualification. costly and inefficient. Budgeting helps the company control costs while still being competitive in attracting top talent.  Long hiring process: Lengthy recruitment e) Identification of All Viable Sources processes can cause candidates to lose interest or - Identifying all viable sources for candidates accept offers from other companies. ensures that the company is reaching a diverse and qualified pool of talent. These - Mitigation strategies: sources include: Talent shortages: Offer additional training or development programs to less-experienced Internal sources: Promoting or transferring candidates. current employees. High competition: Enhance employer branding and External sources: Using job boards, offer competitive compensation packages. professional networks, recruitment Long hiring process: Streamline the interview agencies, or employee referrals. process and maintain regular communication with Social media and networking: Platforms candidates to keep them engaged. like LinkedIn can be valuable for reaching passive candidates. DEFINITION AND IMPORTANCE OF RECRUITMENT f) Respective Responsibilities - Collaboration Def: - Effective recruitment involves collaboration discovering of potential candidates for between different stakeholders. Respective actual or anticipated organizational responsibilities outline who will be involved vacancies in the recruitment process and what their a linking activity - bringing together those roles are. with jobs to fill and those seeking jobs process of identifying an organizational gap HR Team: Typically handles sourcing, screening, and attracting, evaluating, and hiring and initial interviews. employees to fill that role Hiring Managers: Provide input on job “process of generating a pool of qualified requirements, participate in interviews, and make applicants for organizational jobs.” - Mathis final hiring decisions. and Jackson (2010) Other departments: May be involved in specialized Imp: roles or for cross-functional positions. “It is important that recruiting be treated as a part of strategic HR planning because it g) Factors That Will Screen Out Applicants is a key mechanism for filling positions - Screening factors refer to the criteria that necessary to get the work done.” disqualify candidates who do not meet the Recruiting decisions can identify not only minimum qualifications. These factors can the kinds and numbers of applicants, but include: also how difficult or successful recruiting efforts may be by type of jobs. (1) Lack of required education (e.g., a degree or Effective recruiting focuses on discovering certification); (2) Insufficient experience; (3) talent before it is needed. Inability to meet specific job requirements (e.g., physical demands, technical skills); (4) Unavailability to work required hours or shifts. INTERNAL VS EXTERNAL RECRUITMENT h) Obstacles and How to Mitigate Them a) Internal Recruitment - Recruitment obstacles are challenges - Internal recruitment focuses on promoting that may arise during the hiring process. or transferring employees who are already These can include: part of the organization. This approach is Talent shortages: A lack of qualified candidates in typically preferred by companies operating a specific field or location. in stable environments, where the pace High competition: Competing with other employers of change is slower, and the required skills for top talent. can be developed internally.  Suitable for organizations that face rapidly Characteristics: changing competitive environments and Suitable for organizations that exist in conditions: environments that change slowly: - Companies in industries that - Internal recruitment works well for experience fast technological industries where external market advancements or shifts in conditions, technology, and consumer preferences often need customer demands evolve to bring in talent with cutting-edge gradually. Employees have time to skills or innovative thinking that may grow and develop within the not be available internally. organization, aligning their skills Greater emphasis on external sources in with its needs. addition to hiring from within: Emphasis on promotion from within: - While internal recruitment is still - Companies that use internal valuable, external recruitment recruitment often prioritize nurturing becomes more critical when talent by offering opportunities for organizations need to access advancement. This can include specialized expertise or new promotions, lateral moves, or competencies that are not present transfers to different departments, among current employees. helping to retain institutional Example Industries: knowledge and experience. Tech Companies: Technology companies operate in an industry where rapid Example Industries: innovation is key to success. External Shipping: The logistics and shipping recruitment helps these companies stay industries typically operate in stable ahead by hiring experts in emerging environments where employees build technologies such as artificial intelligence, expertise over time. Promotion from within cloud computing, or cybersecurity. ensures that critical operations remain Science: Research and development in efficient. scientific fields often require new skill sets Power Generation: Power plants and or cutting-edge knowledge. External energy companies often have highly recruitment allows for the hiring of specialized internal roles where knowledge specialists with specific expertise in fields of specific systems is critical, making like biotechnology or environmental internal recruitment a strong strategy. science. Trading Companies: These firms may rely Agriculture and Fisheries: These on long-term knowledge of markets, industries are increasingly impacted by making it advantageous to promote technological innovations, global trade internally and maintain a stable workforce conditions, and environmental challenges. familiar with company operations. Hiring externally can bring in individuals b) External Recruitment with the latest knowledge in sustainable - External recruitment is geared toward practices, technology-driven farming, or attracting candidates from outside the fisheries management. organization. This strategy is more suitable Academe: Universities and research for companies operating in fast-paced, institutions often seek external candidates competitive environments where new to bring in fresh academic perspectives, ideas, innovative skills, and fresh new teaching methodologies, or expertise perspectives are needed to stay ahead of in emerging fields of study. the competition. Summary Characteristics:  Feature Internal External ~ If being a student were a job, what are its Recruitment Recruitment technical competencies? behavioral competencies? Environment Stable, Fast-paced, Purpose of Job Analysis slow-changing competitive HR planning, recruiting, and selection all environments environments should be based on job requirements and the capabilities of individuals identified by Focus Promotion from Emphasis on job analysis. within external Compensation, training, and employee sources performance appraisals should be based on the specific identified needs of the jobs. Useful in identifying job factors and duties Example Shipping, power Tech Industries generation, companies, that may contribute to workplace trading science, health/safety and employee/labor relations agriculture, issues. fisheries, Helpful in making the distinction among academe jobs 4. Job Analysis and Job Descriptions Methods Job analysis observation - Systematic way of gathering and analyzing interviewing information about the content, context, and human questionnaires requirements of job - position analysis questionnaires (POQ) - managerial job analysis questionnaire a) Task-based job analysis computerized job analysis systems - use of IT - most common or traditional form and and web-based resources focuses combination methods on the tasks, duties, and responsibilities performed in a job Task - distinct, identifiable, work activity composed of motions. Duty - work segment composed of several tasks that are performed by an individual. Responsibilities - are obligations to perform certain tasks and duties ~ If being a student were a job, what are its task, duties, and responsibilities? b) Competency-based job analysis - considers how knowledge and skills are used in the job This diagram presents a structured perspective on Competencies are individual capabilities that Job Analysis and how it feeds into different areas can be linked to performance by individuals or of human resource management, such as job teams. descriptions, job specifications, and subsequent technical - referring to specific knowledge and HR functions. Here's a breakdown: skills behavioral - customer focus, team orientation. Job Analysis decisiveness, among others  Methods: These are the techniques used Applications of Job Descriptions and to collect job-related data. Specifications ○ Questionnaires: Employees are asked to fill out surveys about their Both job descriptions and specifications are critical roles. in various HR functions, including: ○ Interviews: HR professionals or job analysts speak to employees or EEO/ADA: Ensuring compliance with supervisors to gather insights. Equal Employment Opportunity (EEO) laws ○ Observation: Direct observation of and the Americans with Disabilities Act employees while they perform their (ADA). tasks. HR Planning: Aligning staffing needs with ○ Logs/Diaries: Employees maintain business goals. records of their daily activities. Recruiting: Identifying the right candidates Sources of Data: The information for job based on job descriptions and analysis can come from different people specifications. within the organization. Selection: Choosing the best candidate by ○ Employees: Those performing the comparing their qualifications to job job provide firsthand information. specifications. ○ Supervisors: They provide an Compensation: Determining pay based on overview and understanding of the the complexity and responsibilities of the role from a managerial perspective. job. ○ Managers: They contribute insights Training: Identifying training needs to fill on how the job fits into the broader gaps in skills. company objectives. ○ Job Analyst: A professional Also, these outputs are used in: responsible for the analysis. Conducted by: Performance Management: Evaluating ○ Job Analyst (HR): Typically, a employees based on job performance. human resource professional Health, Safety, and Security: Ensuring conducts the analysis. that jobs are designed with employee ○ Outside Consultant: In some safety in mind. cases, external experts are brought Employee/Labor Relations: Clarifying in. roles to avoid disputes and ensure smooth ○ Supervisor/Manager: Sometimes, employee relations. the person overseeing the In summary, job analysis is the foundation of employee conducts the job many HR activities, and its results inform job analysis. descriptions and specifications, which in turn influence everything from hiring to employee Outputs of Job Analysis management and compliance with laws. Job Descriptions: These are created based on the job analysis and detail the Job Descriptions tasks, duties, and responsibilities of a Job descriptions - identification of the tasks, particular role. duties, and responsibilities of a job. Job Specifications: These describe the Job specifications - the knowledge, skills, and qualifications and requirements needed for abilities (KSAs) an individual needs to an individual to perform the job, including perform skills, education, and experience. a job satisfactorily. Performance standards - indicators of what the  job accomplishes and how performance is This diagram illustrates the Sources of External measured in key areas of the job description. Recruitment and categorizes them based on how active or passive both the company and the Parts of a job description*: applicants are during the recruitment process. Identification Let’s break down the key elements: General Summary Essential job functions and duties/Tasks, Axes Duties, and Responsibilities Job specifications Horizontal Axis (Company): Ranges from Disclaimers and approvals passive to active recruitment efforts by the *the specific content of a job description will vary company. Passive methods involve according to the particulars of the job, specific minimal engagement from the company, work environment, and needs of an organization while active methods require more direct efforts to attract candidates. Sourcing candidates: Methods and Channels Vertical Axis (Applicant): Ranges from (External) passive to active applicants. Passive candidates may not be actively seeking a a) advertisements job but could be drawn into the process, b) Walk-ins and unsolicited applications and while active applicants are proactively resumes looking for employment. c) the Internet d) social media - LinkedIn, FB groups, Recruitment Sources e) mobile recruiting f) job fairs 1. Walk-Ins: g) employee referrals ○ Company: Passive consideration on nepotism ○ Applicant: Active h) re-recruiting ○ Individuals actively seeking i) executive search firms aka headhunters employment visit the company in j) educational institutions person without an appointment or work-study programmers prior advertisement, hoping to apply internships for available positions. k) professional associations and labor unions 2. Job Fairs: l) public employment agencies - PESO ○ Company: Active m) private employment agencies ○ Applicant: Active n) staffing agencies - temporary positions ○ Companies actively participate in o) independent contractors job fairs, and applicants are also p) employee leasing actively searching for jobs by attending these events. 3. Educational Institutions: ○ Company: Moderately Active ○ Applicant: Moderately Active ○ Companies collaborate with schools, colleges, or universities to recruit students and recent graduates. Both the company and applicants are somewhat proactive in the process. 4. Social Networking: ○ Company: Moderately Active ○ Applicant: Moderately Active  ○ Recruitment through platforms like by these firms to be considered for LinkedIn, where both the company positions. and applicants are engaged in networking and job search efforts. This diagram provides an overview of external 5. Unions: recruitment sources based on the level of activity ○ Company: Passive and engagement from both the company and the ○ Applicant: Moderately Active applicants. The more active the approach (such ○ Unions provide a pool of candidates as job fairs or headhunters), the greater the effort for companies, and applicants rely to target and attract specific talent, while passive on unions to advocate for job methods (such as advertisements or job boards) opportunities. may cast a broader net, relying more on applicants 6. Employment Agencies: to come forward. ○ Company: Moderately Active ○ Applicant: Moderately Passive Sourcing candidates: Methods and Channels - ○ Companies work with agencies that (Internal) source candidates on their behalf. a) Internal job postings Applicants may rely on these bulletin boards agencies to find suitable jobs for email dissemination them. workforce sites 7. Job Boards: b) Identifying Talent through Performance ○ Company: Moderately Active Appraisals ○ Applicant: Moderately Passive c) Skills Inventories and Replacement Charts ○ Companies post job openings on succession plans online job boards like Indeed, and d) Internal Recruiting Databases candidates can search for job talent banks opportunities, sometimes passively through alerts or notifications. 8. Advertisements: ○ Company: Passive ○ Applicant: Moderately Passive ○ The company posts advertisements (newspapers, websites, etc.), but typically waits for candidates to respond without direct engagement. 9. Employee Referrals: ○ Company: Moderately Active ○ Applicant: Moderately Passive ○ Current employees refer people from their network to open This diagram outlines the Elements of a positions. The company taps into Recruitment Strategy, showing the key existing employee connections, and considerations when developing a strategy for candidates may passively hear recruiting talent. The image breaks the strategy about opportunities through the into six overlapping areas, each addressing a referral process. critical question for the recruitment process. 10. Search Firms (Headhunters): ○ Company: Active 1. Brand ○ Applicant: Passive ○ Companies actively engage search Key Question: "Why does someone want firms to find specific talent. The to work for us?" applicants may not be actively This element focuses on the company’s looking for jobs but are approached employer brand—how the organization is  perceived as a workplace. The company's also impacts whether recruitment efforts reputation and value proposition to should be continuous or time-bound. potential employees are crucial for attracting top talent. A strong brand can differentiate the company from its competitors in the job market. 6. Decision 2. Focus Key Question: "Who is responsible for the decision?" Key Question: "What positions and This part clarifies who in the organization KSAOs (Knowledge, Skills, Abilities, and is responsible for making recruitment Other characteristics) are most important?" decisions. It could be HR professionals, This part defines the specific roles and hiring managers, or senior executives. This competencies that the company is looking ensures that the recruitment process is to fill. It ensures that recruitment efforts are streamlined and that those responsible for targeted at the right positions and that hiring are clearly identified. there is clarity on the skills and qualifications needed. A successful recruitment strategy incorporates all these elements: 3. Location Brand: Makes the company attractive to Key Question: "Where do we need job seekers. talent?" Focus: Ensures recruitment is aligned with This refers to the geographic focus of the the company’s needs for specific roles. recruitment efforts. It could involve Location: Targets areas where talent is determining whether to recruit locally, needed. nationally, or even globally, depending on Method: Uses the right channels to reach where the company needs to fill positions potential employees. and where the desired talent is available. Timing: Matches recruitment efforts with the company’s immediate or future needs. 4. Method Decision: Identifies the right people to make hiring decisions. Key Question: "What sources are best for finding talent?" Together, these components create a This element addresses the recruitment comprehensive approach to recruiting talent channels and techniques the company will effectively. use, such as online job boards, social Legal and Ethical considerations in recruitment media, employee referrals, headhunters, or a) Legal considerations campus recruitment. The choice of method Prohibits requiring the declaration of age or depends on where the target candidates birth date during the application process are most likely to be found. (Anti-Age Discrimination in Employment Act or RA 10911). 5. Timing The applicant or data subject has a right to be informed if personal data is being Key Question: "Is our need immediate or collected for purposes of profiling, or for in the future?" other forms of data processing (Data Timing is about determining when the Privacy Act or RA 10173). company needs to fill positions. Some roles Prohibits the rejection of a job application may need to be filled immediately due to solely or partially on the basis of actual, vacancies or high demand, while others perceived, or suspected HIV status (The may involve planning for future needs. It  Philippine HIV and AIDS Policy Act). A. Layoff Procedure Access to personal data relating to an In cases of furlough or layoff, who will be laid employee’s hepatitis B status is bound by the off first? rules of confidentiality and is strictly limited to on-call employees medical personnel or if legally required part-time employees (DOLE contractual employees (outsourced) Department Advisory No. 05-10). project-based employees Discrimination under the Magna Carta for probationary employees Persons with Disability includes using regular employees qualification standards, employment tests or - LIFO or FIFO? Last in, First Out other selection criteria that screen out or tend B. Recall Procedure to screen out a disabled person unless such In cases of return to work, who will be standards, tests or other selection criteria are recalled shown to be job-related for the position in first? question and are consistent with business regular employees necessity. LIFO or FIFO? part-time employees Guidelines for the Implementation of a probationary employees Drug-Free Workplace Policies and project-based employees Programs contractual employees (outsourced) for the Private Sector (DOLE Department part-time employees Order No. 053-03), which states that only on-call employees drug-testing centres accredited C. Process for new applicants/Filling in of by the Department of Health shall be utilised vacancies for drug testing. qualified members of the union first, then, non-union members before looking for an b) Ethical considerations: external hire communicating timely and professionally D. Probationary Period unbiased employee assessment the law says probationary period is 6 months ensuring transparency in job postings but this can be shortened in a CBA provision ensuring compliance with laws - age, gender E. Subcontracting preference the company discusses first with the union preventing exploitation before entering into a subcontracting agreement F. Non-discrimination race, gender, ethnicity, etc. G. Hours of Work H. Work schedules/Rest and Lunch Periods I. Workloads J. Vacancies K. Job Duties L. Health and Safety Workplace Negotiation Simulation What are recruitment (decruitment) activities that can be topics in a bargaining agreement? Bargaining Topics related to Recruitment (Decruitment)