Chapter 5 Human Resource Planning - McGraw Hill PDF

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Create an interactive class with Poll Everywh This deck includes slides that may be converted to interactive polling questions through the use of Poll Everywhe polling software. Slides designed to convert are indicated by a bar on the left side that reads “Polling Question.” S web browser or text message to respond. Getting Started as Easy as 1-2-3 Download and sign-up for Poll Everywhere. 1. Go to the prebuilt Polling Question slide and click “Poll Everywhere” tab at the top of your PowerPoint screen. 2. After logging in, click on “Convert to poll” and select the proper question type and click insert. 3. View the presentation as a Slide Show to see the poll in action. Visit Poll Everywheretips for on how to get started. Visit Poll Everywherepresenter’s for tips and tricks. © McGraw Hill 1  Chapter 5 Planning For and Recruiting Human Resources freesoulproduction/Shutters © 2022 McGraw Hill. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution permitted without the prior written consent of McGraw Hill. 2  What Do I Need to Know? LO 5-1 Discuss how to plan for human resources needed to carry out the organiza strategy. LO 5-2 Determine the labor demand for workers in various job categories. LO 5-3 Summarize the advantages and disadvantages of ways to eliminate a labo avoid a labor shortage. LO 5-4 Describe recruitment policies organizations use to make job vacancies mo LO 5-5 List and compare sources of job applicants. LO 5-6 Describe the recruiter’s role in the recruitment process, including limits an opportunities. © McGraw Hill 3  The Process of Human Resource Plannin 1 HR Planning Helps organizations meet business objectives and gain a competitive Compares present organization with goals for the future. Identifies what changes must be made to these meet goals. Three stages: Forecasting. Goal setting and strategic planning. Program implementation and evaluation. © McGraw Hill 4  Figure 5.1 Overview of the Human Resource Pl Access the text alternative for slide images. © McGraw Hill 5  POLLING QUESTI 1 In which step of the human resource planning proc downsizing most likely to occur? A. Forecasting. B. Goal setting and strategic planning. C. Implementing and evaluating the plan. D. Applying the plan to affirmative action. © McGraw Hill 6  The Process of Human Resource 2 Plannin Forecasting First step inRHplanning. Can use statistical methods or subjective judgment. © McGraw Hill 7  The Process of Human Resource Plannin 3 Forecasting the Demand for Labor Trend Analysis Leading Indicators Constructing and applying statistical Objective measures that accurately models that predict labor demand forpredict future labor demand. the next year, given relatively objective Measures of economy, actions of statistics from the previous year. competitors, changes in technology, trends in composition of workforce. © McGraw Hill 8  The Process of Human Resource Plannin 4 Determining Labor Supply Transitional matrix: Chart that lists job categories held in one period and shows the proportion employees in each of those job categories in a future period. Answers two questions: Where did people in each job category go? Where did people currently in each job category come from? © McGraw Hill 9  Table 5.1 Transitional Matrix: Example for an Manufacturer 2020 2020 2020 2020 2020 2020 2020 2020 2017 (1) (2) (3) (4) (5) (6) (7) (8) (1) Sales manager.95.05 (2) Sales representative.05.60.35 (3) Sales apprentice.20.50.30 (4) Assistant plant manager.90.05.05 (5) Production manager.10.75.15 (6) Production assembler.10.80.10 (7) Clerical.70.30 (8) Not in organization.00.20.50.00.10.20.30 © McGraw Hill 10  The Process of Human Resource Plannin 5 Determine Labor Surplus or Shortage Planners can compare forecasts for labor demand and supply. Will show projected shortages and surpluses in each category. Allows organization to plan how to address challenges. © McGraw Hill 11  The Process of Human Resource Plannin 6 Goal Setting and Strategic Planning Numerical goals provide basis for measuring success. Goals should come from analysis of supply and demand. HR strategies must be used to achieve goals. Options differ widely in expense, speed, and effectiveness. Options to address surplus cause varying degrees of suffering. Options to address shortage vary in terms of how easily the organization change. © McGraw Hill 12  Table 5.2a Options for Reducing a Surp Option Speed of Results Amount of Suffering Caused Downsizing Fast High Pay reductions Fast High Demotions Fast High Transfers Fast Moderate Work sharing Fast Moderate Hiring freeze Slow Low Natural attrition Slow Low Early retirement Slow Low Retraining Slow Low © McGraw Hill 13  Table 5.2b Options for Avoiding a Short Option Speed of Results Ability to Change Later Overtime Fast High Temporary employeesFast High Outsourcing Fast High Retrained transfers Slow Hight Turnover reductions Slow Moderate New external hires Slow Low Technological innovation Slow Low © McGraw Hill 14  The Process of Human Resource Plannin 7 Goal Setting and Strategic Planning continued Core competency: knowledge and skills that make organization superior t competitors and create value for customers. Organizations benefit from hiring and retaining employees who provide a competency. © McGraw Hill 15  The “Entertainment Factor” Cold Stone Creamery employees give their company the competitive advantage with their “entertainment factor.” The company is known to seek out employees who like to perform and then “audition” rather than interview potential employees. © McGraw Hill Courtesy of Cold Stone Creamery 16  The Process of Human Resource Plannin 8 Downsizing Planned elimination of large numbers of personnel with four main obje 1. Reduce costs. 2. Replace labor with technology. 3. Mergers and acquisitions. 4. Moving to more economical locations. May hurt long-term organizational effectiveness, loss of talent, and de employees. © McGraw Hill 17  The Process of Human Resource Plannin 9 Alternatives to Downsizing Reducing hours. Seen as way to spread burden more fairly. Less costly than layoffs that require severance pay. Early-retirement programs. Workforce is aging and many older workers do not want to retire. Phased-retirement programs can be used. © McGraw Hill 18  The Process of Human Resource Plannin 10 Options to Avoid a Shortage Employing temporary and contract workers. Most widespread method to eliminate shortage. Gives employers more flexibility, lower costs. Disadvantage: workers not as committed. Outsourcing: Contracting other organizations to provide broad set of services. Overtime and expanded hours. Workers appreciate added compensation in short-term. © McGraw Hill 19  POLLING QUESTI 2 A public accounting firm of 250 employees realizes surplus of 15 support personnel (not auditors). Wh think they should do? A. Layoff permanent employees and hire temporary workers. B. Offer early retirement. C. Downsize people in those positions. D. Wait for attrition and implement a hiring freeze for those positio © McGraw Hill 20  The Process of Human Resource Plannin 11 Implementing and EvaluatingR the PlanH Someone must be accountable for achieving goals. Should have authority and resources needed. Should issue regular progress reports. Talent management ties planning and recruiting efforts to organizatio strategy and employee development. Evaluation should identify which parts of planning process contributed success or failure. © McGraw Hill 21  The Process of Human Resource Plannin 12 Applying RHPlanning to Affirmative Action Workforce utilization review: Comparison of the proportion of employees in protected groups with the proportion that each group represents in the relevant labor market. Assess current utilization patterns. Forecast how utilization patterns are likely to change in future. If certain groups are underutilized, goals and a plan are established. © McGraw Hill 22  Recruiting Human Resources Recruiting Any activity carried on by organization with primary purpose of identi attracting potential employees. Builds supply of potential hires when company needs it. Three aspects of recruiting: 1. Personnel policies. 2. Recruitment sources. 3. Recruiter traits and behaviors. © McGraw Hill 23  Figure 5.2 Three Aspects of Recruiting Access the text alternative for slide images. © McGraw Hill 24  Personnel Policies 1 Internal versus External Recruiting Lead-the-Market Pay Strategies Internal policies “promote from within. Pay is an important job characteristi ” for most applicants. Opportunities for advancement are Recruiting is an advantage when pay more attractive for applicants and for a job is more than current marke employees. wages. © McGraw Hill 25  Personnel Policies 2 Employment-at-Will Social Presence and Reputati Employer or employee may end The image of organization impacts it employment relationship at any timeattraction to prospective recruits. unless otherwise stated in contract. The Internet provides many Due-process policy: Employee mayopportunities to build a positive imag appeal termination. and recruit employees. © McGraw Hill 26  Recruitment Sources 1 Internal Sources Job Postings Advantages Communication about job vacancy to Generates applicants who are well other employees in organization, known to organization. includes: Applicants are knowledgeable about Company bulletin boards. position; minimizes unrealistic job expectations. Employee publications. Corporate intranets. Cheap and fast. © McGraw Hill 27  Recruitment Sources 2 External Sources Outside Candidates Advantages Entry-level or specialized positions. May expose the organization to new Used when there are no internal ideas or new ways of doing business recruits. Can help company gain a competitiv advantage. May recruit through direct applicants and referrals, websites, Helps companies avoid the appearan advertisements, employment agencies, of nepotism. and schools. © McGraw Hill 28  Recruitment Sources 3 External Sources continued Job search and networking platforms. Information systems. Indeed, ZipRecruiter. Search the résumés that workers have posted on their site and other website Social media. LinkedIn. © McGraw Hill 29  Recruitment Sources 4 External Sources continued Help-wanted advertising: Placed in online and offline media. CareerBuilder, Monster, Textio. Local newspapers, professional and trade publications, Craigslist, results page engines, and signs on transit and workplaces. © McGraw Hill 30  Recruitment Sources 5 External Sources continued Public employment agencies: Social Security Act of 3519 requires everyone receiving unemployment compensation to be registered with a local state employment office. Employers can register their job vacancies with their local state employm Private employment agencies: White-collar jobs. Employers are charged. Provide confidentiality between employer and recruit. © McGraw Hill 31  Recruitment Sources 6 External Sources continued Colleges and universities: Placement services offer on-campus interviewing. Internships. Job fairs. © McGraw Hill 32  Figure 5.3 Top Recruiting Sources Reported b Access the text alternative for slide images. Source: Based on SilkRoad, Sources of Hire 2018: Where the Candidate Journey Begins, May 2018, https://www.silkroad © McGraw Hill 33  Recruitment Sources 7 Evaluating the Quality of a Source Yield Ratio Cost per Hire Percentage of applicants who move Total amount spent to fill vacancy. from one stage of recruitment and Divide amount spent using recruitme selection process to the next. source by amount of hires from the Compare yield ratios of different source. sources to determine which is most Low cost per hire indicates an efficie efficient for each type of vacancy. recruitment source. © McGraw Hill 34  Recruiter Traits and Behaviors 1 Characteristics and Behavior of the Recruiter Recruiters should be R specialist H or specialist of job being filled. Applicants view warm, informative recruiters positively. Important to provide a realistic job preview that includes both positive negative aspects of job. Too positive of a job preview arouses suspicion. Ultimately, organization’s personnel policies are more impactful than in securing job acceptance. © McGraw Hill 35  Recruiter Traits and Behaviors 2 Enhancing the Recruiter’s Impact Recruiters should provide timely feedback; applicants dislike delays a draw negative conclusions. Recruiters should avoid offensive behavior. Organizations may use teams to recruit. Applicants view job experts as more credible R. than H Recruiting team can include job experts R professionals. and H © McGraw Hill 36  Figure 5.4 Recruits Who Were Offended by Access the text alternative for slide images. © McGraw Hill 37  End of Chapter 5 © 2022 McGraw Hill. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution permitted without the prior written consent of McGraw Hill. 38  Accessibility Content: Text Alternat for Images © McGraw Hill 39  Figure 5.1 Overview of the Human Resource Planning Alternative Return to parent-slide containing images. The three stages of the R planning H process are: 1. Forecasts of labor surplus or shortage 2. Goal setting and strategic planning 3. Program implementation and evaluation The stages both inform and are informed by forecasts of labor demand and of labor supply. Return to parent-slide containing images. © McGraw Hill 40  Figure 5.2 Three Aspects of Recruiting – Tex Return to parent-slide containing images. The three aspects of recruiting are personnel policies, recruitment sources, recruiter traits and behaviors. Personnel policies influence the characteristics of the positions to be filled. Recruitment sources influence the kinds of job applicants an organization re The recruiter’s traits and behaviors influence the characteristics of both the vacancy and applicants. Ultimately, the applicant’s decision to accept an offer, and the organization to make an offer, depend on the match between vacancy characteristics an characteristics. Return to parent-slide containing images. © McGraw Hill 41  Figure 5.3 Top Recruiting Sources Reported by Employe Return to parent-slide containing images. The horizontal axis labeled Percentage of Employees Hired and the vertical labeled Source. The horizontal axis ranges from 0 to 60 and the vertical axi Carrier Builder, Glassdoor, Customer website, LinkedIn, Campus recruiting, Employment agency, Indeed, Recruiters, and Employee referral. The bar ch 55% used as Employee referral, 12% as Recruiters, 10% as Indeed, 5% as E agency and Campus recruiting, 4% as LinkedIn, and only 2% as Glassdoor a Builder. All values are approximated. Return to parent-slide containing images. © McGraw Hill 42  Figure 5.4 Recruits Who Were Offended by Recruiters – Return to parent-slide containing images. Arts undergraduate: The company has a management training program which the recruiter had gone through. She was talking a presentational skills that the company teaches you, and the woman was barely literate. She was embarrassing. If that was the b did not want any part of them. Also, Company A and Company B’s recruiters appeared to have real attitude problems. I also thou chauvinistic. M BA with 10 years of experience: I had a very bad campus interview experience. The person who came was a last-minute fill-in. couple of “issues” and was very discourteous during the interview. He was one step away from yawning in my face. The other th he kept making these (nothing illegal, mind you) but he kept making these references to the fact that I had been out of my unde graduate programs for more than 10 years now. Engineering graduate: One firm I didn’t think of talking to initially, but they called me and asked me to talk with them. So I did, a was very, very rude, Yes, very rude, and I’ve run into that a couple of times. Industrial relations graduate student: The company had set a schedule for me which they deviated from regularly. Times overlap kept me too long, which pushed the whole day back. They almost seemed to be saying that it was my fault that I was late for the lot of what they did just wasn’t very professional. Even at the point when I was done, where most companies would have a cab p the middle of a snowstorm in Chicago and they said, you can get a cab downstairs. There weren’t any cabs. I literally had to walk my luggage, trying to find some way to get to the airport. They didn’t book me a hotel for the night of the snowstorm, so I had to eight hours trying to get another flight…They wouldn’t even reimburse me for the additional plane fare. Engineering undergraduate: The guy at the interview made a joke about how nice my nails were and how they were going to rui all the tough work. Return to parent-slide containing images. © McGraw Hill 43