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Chapter 5

ADM 2337 Chapter Notes - Chapter 5: Peter Principle, Job Analysis, Professional Employer Organization

Course Code
ADM 2337
Magda Donia

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Chapter 5
Branding the Talent Pool: Recruitment and Career
!The broad factors that can affect a firm’s recruiting strategy include
a firm’s recruiting abilities, whether to recruit externally versus
internally, the labour market for the type of positions it is recruiting
for, including global labour markets, and the strength of a firm’s
employment “brand”.
!At any given time, a firm might need to use multiple recruiting
!A strategy that works for one firm or job might not work for another
firm or job.
!Recruiting strategies and their effectiveness can change over time.
o!As a result, firms need to continuously examine their
recruiting efforts and refine them.
!Employee profile is a profile of a worker developed by studying an
organization’s top performers to recruit similar types of people.
o!The size of an organization often affects who performs the
recruitment function.
o!Large firms – full time in-house HR recruiters
o!Small firms – HR generalist
o!Films with no HR function – managers/supervisors recruit
o!Recruiting process outsourcing (RPO) refers to
organizations that want to focus on their core functions,
including small businesses that lack time or HR personnel,
sometimes outsource their recruiting functions to outside
o!Organizations also sometimes use RPO providers when they
need to hire a lot of employees or hire employees quickly.
o!RPO recruiters can also be useful when a firm has had trouble
finding suitable candidates in the past or needs a different
way to tap different talent pools, perhaps to find more diverse
o!It in imperative that recruiters have a good understanding of
the knowledge, skills, abilities, experiences, and other
characteristics required for the job and be personable,
enthusiastic and competent.

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o!Most managers try to follow a policy of filling job vacancies
above the entry-level position through promotions and
o!By filling vacancies in this way, an organization can capitalize
on the investment it has made in recruiting, selecting,
training, and developing its current employees who might
look for jobs elsewhere if they lack promotion opportunities.
o!Promoting employees rewards them for past performance and
encourages them to continue their efforts.
!!Hence, motivating other employees in hopes of
promotion as well.
o!This can improve morale within the organization and support
a culture of employee engagement.
o!The employee’s familiarity with the organization and its
operations can eliminate the orientation and training costs
that recruitment from the outside would entail.
o!The transferee’s performance record is likely to be a more
accurate predictor of the candidate’s success than the data
gained about outside applicants.
o!Limitations of recruiting internally:
!!Jobs that require specialized training and experience
cannot always be easily filled from within the
organization and may need to be filled from the outside.
"!Common in small organizations with limited talent
o!Potential candidates from outside should also be considered
to prevent the “inbreeding” of ideas and attitudes.
o!Applicants hired from the outside, particularly for certain
technical and managerial positions, can be a source of
creativity and innovation and may bring with them the latest
knowledge acquired from their previous employers.
o!It s common for firms to attempt to gain secrets from their
competitors by hiring away their employees.
o!Some applicants bring revenue to their new employers.
!!E.g. talented salespeople, doctors, etc.
o!When these people leave their organizations, their clients
often go with them.

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o!Reaching an employer’s diversity goals is another factor that
can lead a firm to recruit externally.
o!The condition of the labour can have a big effect on a firm’s
recruiting plans.
o!During periods of high unemployment in the economy,
organizations might be able to maintain an adequate supply
of qualified applicants from unsolicited resumes and from
their internal labour markets.
o!Internal labour market is a labour market in which workers
are hired into entry-level jobs and higher levels are filled from
o!A tight labour market, one with low unemployment, might
force the employer to advertise heavily and/or seek
assistance from local employment agencies.
!!Competing firms are often located in same areas.
"!E.g. oil and gas firms in Calgary area.
"!Film and TV companies in Toronto or Vancouver.
!!This clustering occurs because the resources these firms
need - both human (talent) and natural – are located in
some area and not others.
!!To stay apace of their competitors and expand their
operations around the world, companies are looking
global for goods and services, including labour.
"!This is called global sourcing.
!!Firms are trying to fill not just technical positions firms
but also lower skilled positions.
!!Recruiting aboard can be very complicated, however.
!!In addition to having to deal with a myriad of local,
national and international laws, employers also have to
take into account the different labour costs,
preemployment and compensation practices, and
cultural differences associated with the countries in
which recruiting.
!!In volatile areas of the world, security is a concern.
!!To help navigate these challenges many companies may
utilize firms which specialize in global recruiting.
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