Chapter 4 Note ~ HRM.pdf

10 Pages
Unlock Document

Western University
Management and Organizational Studies
Management and Organizational Studies 1021A/B
Kevin Thompson

MOS Note ▯ Chapter 4 ~ HRM Planning, Recruitment and Selection Human Resources Planning • Strategic Plans tend to be broader in scope, longer in time frame, and provide overall direction, and apply to the entire organization. • Human Resources Planning is a process to ensure that the people required to run the company are being used as effectively as possible, and where and when they are needed, in order to accomplish the organization’s goals. Linking HR Planning to Strategic Planning • Strategic Planning involves the allocation of resources, including the people resources of the organization, HR planning is aligned to ensure the objectives are met. • Line managers need to make plans not only for business objectives but plans for the necessary staffing resources. • Organizations are concerned about developing leaders for the future and are focusing efforts on trailing and development programs so that the leaders have the competencies necessary that can keep pace with the direction of the organization. Importance of Planning for Staffing Needs • Because of the evolving labour force, this requires managers to become more involved in planning their staffing needs, since such changes affect not only employee recruitment but also methods of employee selection, training, compensation, and motivation. • An organization may incur several intangible costs as a result of inadequate or no people planning such as causing vacancies to remain unfilled. • Planning occurs more systematically in medium and larger organizations. Small, entrepreneurial organizations tend to approach HR staffing needs on a more short- term basis. HR Planning Approaches • Since overall outcome of HR planning is to have the right people with the right skills at the right time in the right job, there is a need to forecast the demand for employment. • A trend analysis will forecast employment requirements on some type of organizational index, such as sales or units of production. • In management forecasts, the opinions and judgements of people who are knowledgeable about the organization’s future needs will develop scenarios that can be used for planning purposes. • Besides forecasting the demand for employees, an organization will also need to look at the supply of employees. • Staffing tables are graphic representations of all organizational jobs, along with the numbers of employees currently occupying those jobs. MOS Note ▯ Chapter 4 ~ HRM Planning, Recruitment and Selection • The Markov analysis shows the percentage of employees who remain in each job from one year to the next, as well as the proportions of those who are promoted, demoted, or transferred, or who leave the organization. • When assessing the organization’s supply, organizations will identify the key skills or core competencies necessary for organizational success by using a skills inventory. Results of HR Planning • The outcome of HR planning is to achieve a useable balance between the demand for and supply of employees. • The demand for and supply of labour is very much a function of the economic environment. Ways to Deal with an Oversupply of Labour • Attrition is the natural departure of employees through people quitting, retiring, or dying. • Organizations can generally estimate how many people leave and for what reasons. • Some organizations can avoid downsizing because they know how many people will likely leave. • High turnover is when too many people leave, and this can cost a company more money than intended. • It is currently estimated that the costs of turnover can be as high as two times then annual compensation, particularly in high-demand skills areas. Ways to Deal with Shortages of Labour • Line managers, together with HR professionals, will identify where a company might look for these candidates. • Recruitment is the process of locating and encouraging potential applicants to apply for existing or anticipated job openings. • It is important for companies to focus on employee retention as well as focusing on accessing new talent. • Companies are now transferring the concept of “branding” to its employment framework -- to have a uniform image come into prospective employees’ minds when the company name is mentioned (Google). Recruiting Within the Organization • By filling vacancies this way, an organization can capitalize on the investment it has made in recruiting, selecting, training, and developing its current employees. Advantages of Recruiting from Within • Promoting from within helps encourage employees and rewards them for successful past performance. MOS Note ▯ Chapter 4 ~ HRM Planning, Recruitment and Selection • It gives employees a reason to anticipate that similar efforts by them will lead to promotion, thus improving moral within the company. • Transferring employees eliminates the need to orientate and train a new employee because these employees are already familiar with the company. • A transferees performance record is most likely more accurate than data gained from an outside applicant. Methods of Locating Qualified Internal Job Candidates • Candidates can be located within an organization using computerized record systems and internal job postings. Human Resource Information Systems • IT has made it possible for organizations to create databases that contain the complete records and qualifications of each employee within an organization. • Organizations have developed a resume tracking system that allow managers to access an online database of resumes. • These databases allow organizations to quickly and efficiently locate possible candidates to fill an internal opening. Succession Planning • Succession planning is the process of identifying, tracking and developing key employees for future promotions. • Succession plans rely upon the organization identifying its long-term goals, outlining the competencies required to achieve those goals, and making sure the employee is developed in order to assume other roles and take on other responsibilities. Internal Job Postings • Organizations may advertise about job openings through a process referred to as Internal Job Postings. • Companies are developing computerized job posting systems and maintaining voluntarily lists of employees looking for upgraded positions. • Internal job postings are more effective when they are part of a career development program in which employees are made aware of opportunities available to them within the organization. Limitations of Recruiting from Within • Some jobs require specialized training and experience that can not be filled from within the organization and that must be filled from the outside. • Even though a company posts an internal job posting, it is important for the organization to consider options from outside the organization as well. • Potential candidates should be considered from the outside in order to prevent the inbreeding of ideas and attitudes. MOS Note ▯ Chapter 4 ~ HRM Planning, Recruitment and Selection • Technical and managerial positions can be sources of new ideas and may bring with them the latest knowledge acquired from their previous employers. Recruiting Outside the Organization • External recruitment is organized and coordinated by the HR department with the line manager frequently giving suggestions about where to recruit, such as an ad in a newspaper or processional journal. • Hiring someone from the outside is seen as bringing in new ideas, different styles, and new energy. Limitations of Recruiting from Within • Advantage: The individual coming in to fill the position possesses some unique skills that the company needs now. • Disadvantage: The lack of solid information about the person’s performance on the job. • There are significant costs involved with hiring from the outside such as advertising, and familiarizing the person with the company. Labour Market • The labour market is the area where people are bring recruited from and will very with the position being filled and the level of compensation being paid. • The search for highly skilled labour or executives can extend nationally or even internationally. • The search for low skilled jobs is more regional and does not extend nationally or internationally. • During times of high unemployment, firms can maintain the supply of highly skilled applicants through unsolicited applicants alone. • During times of low unemployment, firms seek help from firms who specialize in recruitment. • Canada has heavily relied on Immigration in meeting the demand for labour. • Canada has an aging population with insufficient younger workers to fill the work requirements in the future. Outside Sources of Recruitment Advertisements • One very common way to attract applicants is through advertisements. • Some degree of selectivity can be achieved by using newspapers and journals directed towards a particular group of readers. • Among the information typically included in advertisements is a statement that the recruiting organization is an equal-opportunity employer. MOS Note ▯ Chapter 4 ~ HRM Planning, Recruitment and Selection • HRSDC provides assistance to employers in approving special work permits to enable people from other countries to move to Canada for employment. Internet • The internet is the most commonly used search tactic by job seekers; 60% of Canadians with internet access have gone online and searched for a job. • Many companies use their own websites to announce available positions under their “careers” section. • Employers claim that the internet is faster, generates higher quality applicants, and is less expensive than traditional advertising methods. Employment Agencies • Employment agencies, including executive search firms and temporary employment agencies, attempt to match applicants with the specific needs of a company. • Executive search firms are employment agencies that typically focus on senior-level and executive-level positions. • Since high-calibre executives are in short supply, a significant number of the nation’s largest corporations are using executive search firms to fill their top positions. • “Temps” are typically used for short-term assignments or to help when managers cannot justify hiring a full-time employee. • Increasingly, temps are being employed to fill positions once staffed by permeant employees. • This practice is growing because temporaries can be laid off quickly, and with less cost, when work less
More Less

Related notes for Management and Organizational Studies 1021A/B

Log In


Don't have an account?

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.