Chapter 4 Notes.docx

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

Chapter 4: Human Resource Planning, Recruitment, and Selection Human Resource Planning - Strategic plans tend to be broader in scope, longer in time frames, provide overall direction, and apply to the entire organization - Human Resource Planning: a process to ensure that the people required to run the company are being used as effectively as possible, where and when they are needed, in order to accomplish the organizations goals Linking HR Planning to Strategic Planning - Since strategic planning involves the allocation of resources, including the people resources of the organization, HR planning is aligned to ensure the objectives are met - HR planning (the processes, systems, and practices) can be aligned to the overall business strategy Importance of Planning for Staffing Needs - The dramatic shifts in composition of the labor force require that managers 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 - Planning occurs more systematically in medium and larger organizations HR Planning Approaches - Forecasting the demand for employees can be done through: - Trend Analysis: quantitative approach to forecasting labor demand on an organizational index (will forecast employment requirements on some type of organizational index, such as sales or units of production) - Management Forecasts: (qualitative) opinions and judgments of supervisions or managers and others that are knowledgeable about the organization’s future employment needs - The organization will need to look at the supply of employees both internally, in the organization, and externally, to the larger labor market: - Staffing Tables: (internal) graphic representations of organizational jobs along with the number of employees currently occupying those jobs and future employment needs - Markov Analysis: (external) method for tracking the pattern of employee movements through various jobs - Skill Inventory: information about the education, experiences, skills, etc. of staff Results of HR Planning - To achieve a useable balance between the demand for and supply of employers The HR Planning Steps: 1. Forecast demand for labor 2. Determine supply of labor- external and internal 3. Identify the gap between demand and supply 4. Develop action plans to eliminate the gap a. Oversupply i. Attrition (natural departure of employees ex. Quitting, retiring, dying) ii. Leave of absence without pay iii. Job sharing iv. Reduced hours b. Shortage i. Hire full time/part time ii. Lease employees iii. Use overtime iv. Retention strategies Recruitment - Recruitment: the process of locating and encouraging potential applicants to apply for jobs - The purpose of recruitment is to have a large pool of potentially qualified applicants - The Recruitment Process: Planning for staffing needs  Identification of current or future job openings  Getting individual job info (job description and job specification)  Determining recruitment method (internal or external)  Creating pool of potential qualified applicants Recruiting Within the Organization - Promotions and transfers - Advantages of Promotions: o Makes use of the people who already know the organization and the contribution they have made o Gives other employees reason to anticipate that similar efforts could lead to promotion, thus improving morale within the organization - Advantages of Transfers: o Protect employees from layoff or to broaden their job experiences o The transferred employee’s familiarity with the organization and its operations can eliminate the orientation and training costs o The transferee’s performance record is likely to be a more accurate predictor of the candidate’s success Methods of Locating Qualified Internal Job Candidates - Computer record systems - Internal job postings Human Resource Information Systems: databases that contain the complete records and qualifications of each employee within an organization Succession Planning: the process of identifying, developing, and tracking key employees for future promotions Internal Job Postings: method of communicating information about job openings Limitations of Recruiting Within - Certain jobs that require specialized training and experience cannot be filled from within the organization and must be filled from outside - Excessive reliance on internal sources can create the risk of “employee cloning” Recruiting Outside the Organization - Bringing in new ideas, different styles, and new energy - Advantage: the individual brings certain unique skills that the company needs now, it is possible to bring in people with a variety of different experiences and perspectives - Disadvantages: a lack of solid information about the person’s performance on the job o The person may not know the industry or organization, requiring more extensive orientation and training o Significant costs o Legislative requirements The Labor Market - Labor Market: the area from which applicants are recruited Outside Sources of Recruitment - Outside sources will vary with the type of position to be filled - Networking, referrals from previous and existing staff, information from customers/clients, and being involved in the community are a few ways that organizations seek people outside the organization Advertisements: it has the advantage of reaching a large audience of possible applicants Internet: cheaper, faster, and potentially more effective Employment Agencies: attempt to match applicants with the specific needs of a company Educational Institutions: a source of young applicants with formal training but relatively little full-time work experience Open Houses and Job Fairs: used to recruit new employees, often if the organization is expanding or looking for particular types of skills Employee Referrals: recommendations made by current employees Unsolicited Applications and Resumes Professional Organiza
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