HRM Chapter 4 notes.docx

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Management and Organizational Studies
Course Code
Management and Organizational Studies 1021A/B
Maria Ferraro

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Chapter 4 Human Resource Planning, Recruitment, and Selection This chapter will discuss the process of planning for staffing requirements, and then finding, attracting, and selecting applicants Human Resource Planning Strategic plans tend to be broader in scope, longer in time frames (two to three years), provide overall direction, and apply to the entire organization In linking goals to skills, the line manager will need to anticipate the current and feature needs of the company and develop the road map to get there What the manager is really doing ensuring that the people with the right skills for the present and for future organizational growth Human Resource Planning is the process 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 Because strategic planning involves the allocation of resources, including the people resources of the organization, HR planning is aligned to ensure the objectives are met Divisions and/or departments will also set objectives that support the attainment of organizational objectives The HR plan must have an activity that assesses the skill of current employees and possibly a recruitment activity that attracts new employees with the necessary skills Importance of Planning for Staffing Needs The dramatic shifts in the composition of the labour 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. Small, entrepreneurial organizations tend to approach HR staffing needs on a more short-term basis HR Planning Approaches Since the 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 employees. Forecasting can be done through many trend approaches, such as trend analysis or through qualitative approaches, such as management forecasts o Trend Analysis: Quantitative approach to forecasting labour demand on an organizational index o Management Forecasts: Opinions and judgments of supervisors or managers and others that are knowledgeable about the organizations future employment needs Besides forecasting the demand for employees, an organization will also need to look at the supply of employees. This includes looking both internally (in the organization) and externally (to the larger labour market). Two techniques to assess the internal supply are staffing tables and Markov analysis o Staffing Tables: Graphic representations of organizational jobs along with the number of employees currently occupying those jobs and future employment needs o Markov Analysis: Method for tracking the pattern of employee movements through various jobs While staffing tables and Markov analysis focus on numbers of employees, skills inventory (information about the education, experiences, skills, etc. of staff) focuses on the skill mix When assessing the organizations supply, organizations will identify the key skills or core competencies of employees to ensure good organizational performance HR needs are based on the identified competencies of employees to ensure good organizational performance Results of HR Planning The outcome of HR planning is to achieve a useable balance between the demand for and supply of employees. This is very much a function of the economic environment The HR Planning Steps: 1) Forecast demand for labour 2) Determine supply of labour; external and internal 3) Identify the gap between demand and supply 4) Develop action plans to eliminate the gap Oversupply vs. Shortage Ways to Deal With an Oversupply of Labour Some organizations have decided that since employees are key to its success, any need to reduce employee numbers would be done by attrition (the natural departure of employees through quitting, retiring, or dying) Usually organizations can estimate how many people leave and for what reasons. Therefore, an organization may be able to avoid downsizing because it knows that people will leave Not all attrition is good. If too many people leave (high turnover) it can cost the company more money than intended If the organization can predict that the excess supply of employees is more short-term, it may suggest that some employees take a leave of absence (without pay), that they job-share, reduce working hours (and pay), or the organization can redeploy people to units that have a need Ways to deal with Shortages of Labour Currently much attention has been on projected labour shortages. In the case of these shortages, the organization may request employees to work extra hours, such as during peak periods It is not unusual for companies to hire part-time staff to cover for absences of regular, full- time employees Once an organization has determined its needs, it must then recruit potential employees Recruitment Recruitment: The process of locating and encouraging potential applicants to apply for existing or anticipated job openings. This process informs the applicants about the qualifications required to perform the job and the career opportunities the organization can offer its employees The recruitment process: 1) Planning for staffing needs 2) Identification of current or future job openings 3) Getting individual job information (job description and job specifications)4) Determining recruitment method (internal and external) 5) Creating a pool of potential qualified applicants Many 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 Recruiting Within the Organization By filling vacancies through promotions an transfers, an organization can capitalize on the investment it has made in recruiting, selecting, training, and developing its current employees Advantages of Recruiting From Within Promotion serves to reward employees from past performance and is indented to encourage them to continue their efforts It makes use of the people who already know the organization and the contribution they have made. It also gives other employees reason to anticipate that similar efforts by them will lead to promotion, thus improving morale within the organization Transfers can also serve to protect employees from layoff or to broaden their job experiences. The transferred employees with the organization and its operations can eliminate the orientation and training costs that recruitment from the outside would entail. Most important, the transferees performance record is likely to be a more accurate predictor of the candidates success than the data gained about outside applicants Methods of Locating Qualified Internal Job Candidates
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