MGMT 365 Chapter 5

This determines the demand and supply of human resources and predicts in what positions either surpluses or shortages will exist in the future.

forecasting

4 Stages in HR Planning include

forecasting of labor demand/labor supply forecasting of labor surplus or shortage goal setting and strategic planning program implementation and evalution

which is an objective measure that accurately predicts future labor demand.

leading indicator

This is outsourcing where jobs leave one country and go to another

offshoring

_____ refers to an organization's use of another organization to perform a broad set of services

outsourcing

uses an outside organization for a broad set of services

outsourcing

Companies that do not have employment at will typically have extensive what that describe steps an employee can take to appeal a termination decision.

due process policies

formally lay out the steps an employee can take to appeal a termination decision.

due process policies

from. All companies have to make decisions in what three areas of recruiting:

(1) personnel policies, which affect the kinds of jobs the company has to offer; (2) recruitment sources used to solicit applicants, which affect the kinds of people who apply; and (3) characteristics and behaviors of the recruiter that influence the nature of vacancies and of people applying for jobs that shapes job choice decisions.

Under conditions of a labor surplus

, this may mean creating an effective downsizing intervention.

. It is also important to have regular progress reports on the implementation to be sure that all programs are What?

. It is also important to have regular progress reports on the implementation to be sure that all programs are in place by specified times and that the early returns from these programs are in line with projections.

Temporary employees bring a fresh what to the firm, particularly if they have temped in a number of other organizations.

. Temporary employees bring a fresh perspective to the firm, particularly if they have temped in a number of other organizations.

Many firms that announce a downsizing campaign show worse, rather than better, financial performance. Reasons include:

1. Although the initial cost savings are a short-term plus, the long-term effects of an improperly managed downsizing effort can be negative. 2Many downsizing campaigns let go people who turn out to be irreplaceable assets. 3Employees who survive the staff purges often become narrow-minded, self-absorbed, and risk-averse.

The recruiter is likely to be perceived as more credible if he or she is from the same functional area the recruit is being considered for.

1. Functional area

What are the three parts of a recuriter?

1. Functional area 2. traits 3. realism

What are the 6 recruitment sources?

1. Internal VS External Sources 2. Direct Applicants and Referrals 3. Advertisements 4. Electronic Recruiting 5 Public and Private Employement Agencies 6. Colleges and universities

What are 3 advantages of employing temporary workers?

1. Temporary workers free a company from administrative tasks and financial burdens. 2.Temporary workers are often times tested and trained by a temporary agency. 3.Many temporary workers brings an objective perspective and experience.

Steps to take that help ensure the success of outsourcing strategies include:

1. When choosing an outsourcing vendor, it is usually the bigger and older the better. 2.Jobs that are proprietary or require tight security should not be outsourced. 3.It is a good idea to start small and monitor constantly.

What are the 2 steps to enhance recruiter impact?

1. provide timely feedback 2. recruit in teams

What are the options for reducing expected labor surplus?

1Downsizing 2Pay reductions 3Demotions 4Transfers 5Work sharing 6Hiring freeze 7Natural attrition 8Early retirement 9Retraining

There are alternatives to downsizing such as

1Garner more hours from current employees 2Cut salaries 3Reduce contributions to 401(k) plans 4Reduce number of hours of all workers.

Options for Avoiding exepcted labor surplus

1Overtime 2Temporary employees 3Outsourcing 4Retrained workers 5Turnover reductions 6New external hires 7Technological 8innovation

Baby boomers are not retiring early due to:

1improved health 2fear that Social Security will be cut 3mandatory retirement is outlawed 4collapse of the financial and housing markets made it economically unviable to retire

4 reasons for downsizing

1reduce labor costs 2technological changes reduce need for labor* 3mergers and acquisitions reduce bureaucratic overhead 4organizations change location of where they do business

Critical traits appear to be warmth and "informativeness."

2. traits

A decision must be made on whether to recruit from within or outside the organization.

Internal versus External Recruiting

Receiving candidates about the negative elements of a job may increase later turnover; however, telling candidates about negative elements does not appear to inoculate them against disappointment or make negative elements go away. Personnel policies that affect the job's attributes are likely to be more critical than recruiter realism.

3. realism

What is a critical aspect of Program implementtation and evaluation?

A critical aspect is to make sure that some individual is held accountable for achieving the stated goals and has the necessary authority and resources to accomplish this goal

A voluntary affirmative action program may be implemented in which what

A voluntary affirmative action program may be implemented in which selection programs may be reviewed and revised to decrease the underutilization and/or increase the diversity of the organization and decrease the likelihood of a lawsuit.

As part of the forecasting process, a company has determined its labor demand and supply for the next year. What should be the company's next step to complete the forecasting process?

Ascertain whether there will be a labor shortage or labor surplus for the respective job categories

How to determine labor suplus or shortage

By comparing forecasts for labor supply and demand for specific jobs, the organization can determine what it needs to do.

Downsizing not only leads to a loss of talent, but in many cases it disrupts what?

Downsizing not only leads to a loss of talent, but in many cases it disrupts the social networks needed to promote creativity and flexibility. Many employees also start looking for alternative employment opportunities.

True or False Determining Labor Demand is external in nature?

True

Companies increasingly outsource many of their HRM tasks to outside vendors who specialize in what?

Companies increasingly outsource many of their HRM tasks to outside vendors who specialize in efficiently performing many of the more routine administrative tasks associated with this function to manage the HR unit and free HR managers to focus on more strategic issues

Why are cost savings in outsourcing easily obtained?

Cost savings in this area are easily obtained because rather than purchase and maintain their own specialized hardware and software as well as specialized staff to support such systems, companies can time share the facilities and expertise of a firm that focuses on this technology.

After conducting a trend analysis, Bonneville Inc., an automobile manufacturing company, has learned that there will be a consistent rise in demand for welders over the next two years. Additionally, its current team of welders is aging and several welders are close to retirement. Moreover, there are very few youngsters applying for welding positions with the company. As a consequence, the company fears a labor shortage in the future. Which of the following steps should Bonneville Inc. take to address this issue?

Determine possibilities of internal labor supply through a transitional matrix

How do you determine labor demand

Determining Labor Demand-Labor demand can be predicted by the use of statistical techniques such as leading indicator (derived from product/service demanded)

are people who apply for a vacancy without prompting from an organization.

Direct applicants

_____ state that either party in the employment relationship can terminate that relationship at any time, regardless of cause.

Employment-at-will policies

state that either party in the employment relationship can terminate that relationship at anytime, regardless of cause.

Employment‑at‑will policies

Lead‑the‑market pay strategy is a policy of paying higher than current market wages.

Extrinsic and Intrinsic Rewards

Internal movements caused by what?

Internal movements caused by transfers, promotions, turnover, retirements, etc.

True or False Hiring temporary workers does not helps eliminate a labor shortage and affords flexibility needed to operate efficiently during demand swings.

False Hiring temporary workers helps eliminate a labor shortage and affords flexibility needed to operate efficiently during demand swings.

This is the practice or activity carried on by the organization with the primary purpose of identifying and attracting potential employees, designed to affect the number of people who apply for vacancies, the type of people who apply for them, and/or the likelihood that those applying for vacancies will accept positions if offered.

Human resource recruitment

promotes an organization as a good place to work in general and may be particularly important for organizations in highly competitive labor markets that perceive themselves as having a bad image.

Image advertising

What is the short term effects of downsizing?

In the short term, the lack of pay, benefits, and meaningful work has negative implications for financial, physical, and psychological aspects of individuals, causing bankruptcies, illnesses, and depression.

What is NOT a consequence of hiring temporary workers in an organization?

Increased cooperation between existing full-time workers with temporary workers

What defines outsourcing?

It is the process of using of another organization for a broad set of services.

What are the possible negative effects of downsizing?

Long-term effects of an improperly managed downsizing effort can be negative. 1Lower long-term profit, performance and productivity 2Loss of talent 3Disrupts social networks needed for creativity and innovation

Once forecasts for labor demand and supply are known, the planner can compare what?

Once forecasts for labor demand and supply are known, the planner can compare the figures to ascertain whether there will be a labor shortage or labor surplus for the respective job categories. When this is determined, the organization can determine what it is going to do about these potential problems.

What is the primary reason for employing temporary workers?

Operational flexibility is the primary reason for this, although the use of temps also frees the firm from many administrative tasks and financial burdens (health insurance, pension, worker's compensation, life insurance, etc.).

Polex Inc., a large software firm, is facing financial difficulties. In a bid to reduce costs, it has contracted a significant portion of its developmental work to a firm based in Asia. Which of the following employment methods has Polex Inc. adopted?

Outsourcing

_____ and _____ are the most common techniques employed by companies to handle labor shortage and labor surplus respectively

Outsourcing; downsizing

G&I Associates, a leading IT company, forecasted potential labor shortage at the managerial and supervisory levels. Using performance records, the company identified several of its own customer service personnel as brilliant prospects for the managerial positions. Which of the following should be the company's next move?

Promote the personnel from within

Agencies will search their computerized inventory of individuals searching for work for an organization at no charge

Public and Private Employment Agencies

These can wipe out all the cost savings attributed to lower wages and more without sufficient steps.

Quality control problems, security violations, and poor customer service experiences

_____ refers to any practice or activity carried on by the organization with the primary purpose of identifying and attracting potential employees.

Recruitment

Since recruitment sources are unlimited, an organization must decide how to reach the best sources of potential employees. The sources from which a company recruits potential employees are a critical aspect of its overall recruitment strategy

Recruitment Sources

are people who are prompted to apply for a vacancy by someone within the organization.

Referrals

Smaller companies may use temporary agencies to do their what for them.

Smaller companies may use temporary agencies to do their employment screening for them.

Which is excellent for capturing historic trends in a company's demand for labor, and under the right conditions giving predictions that are much more precise than other methods?

Statistical methods

How to determin Labor Supply

Supply-Internal labor supply is determined by a detailed analysis of how many people are currently in various job categories, modified to reflect changes in the near future caused by retirements, promotions, transfers, voluntary turnovers, or terminations. (useful for AA/EEO purposes)

Which of the following employment methods gives an employer the flexibility needed to operate efficiently when demand for his or her products changes rapidly?

Temporary employment

The final step in the planning process is to what?

The final step in the planning process is to evaluate the results.

The goal of recruitment is to ensure that what?

The goal of recruitment is to ensure that when a vacancy occurs, the organization has a number of reasonably qualified applicants to choose from.

The goals should come directly from what and should include a specific figure for what ?

The goals should come directly from the analysis of labor supply and demand and should include a specific figure for what should happen with the job category or skill area and a specific timetable for when results should be achieved.

The human suffering caused by downsizing has what?

The human suffering caused by downsizing has both an immediate and a long-term element.

The market might be characterized by what two things?

The market might be characterized by a labor surplus and in other cases, it may be characterized by a shortage of labor.

The negative publicity associated with a downsizing campaign can also hurt what?

The negative publicity associated with a downsizing campaign can also hurt the company's image in the labor market, making it more difficult to recruit employees later.

The programs developed in the strategic-choice stage of the process are put into the practice of what?

The programs developed in the strategic-choice stage of the process are put into practice in the program-implementation stage.

The role of HR recruitment is to build a supply of what?

The role of HR recruitment is to build a supply of potential new hires that the organization can draw on if the need arises.

What is the long term effects of downsizing?

Then, even if one can survive these immediate problems, in the long term, an extended bout of unemployment (e.g., lasting over six months) can stigmatize the individual, thus reducing future opportunities.

The Workforce utilization review used to determine what?

This comparison is used to determine whether any subgroups may be underutilized.

T/F Outsiders may bring new ideas or new ways of doing business and strengthen the organization.

True

T/F Relying on internal sources is useful since employees are well known and are knowledgeable about the organization and jobs.

True

True/ False In an age of blogs and text messaging, once-private practice of laying off employees is increasingly transparent, and any organizational mistake that gets made in the process is likely to become highly public.

True

Two major ways that societal trends and events affect employers are through what 2 ways?

Two major ways that societal trends and events affect employers are through (1) consumer markets, which affect the demand for goods and services, and (2) labor markets, which affect the supply of people to produce goods and services.

What are the two most important questions to ask in designing a job advertisement are,

What do we need to say? and To whom do we need to say it?

During the human resource planning process, Zip Corp. has learned that only 5 percent of its employees are African American as compared to the 20 percent present in the labor market. Which of the following techniques did the company use to determine this difference?

Workforce utilization review

is a comparison that examines the proportion of a company's workers in a subgroup to the proportion that each subgroup represents in the relevant labor market.

Workforce utilization review

Recrutment in newspapers and periodicals

advertisements

advertisements Typically are less what than direct applicants or referrals and are more what

advertisements Typically are less effective than direct applicants or referrals and more expensive.

may be an important source for entry level professionals. To increase effectiveness, organizations employ internship programs to get early access to potential applicants and to assess their capabilities directly.

colleges and universities

To effectively utilizing labor markets to one's competitive advantage, companies must have what?

companies must have a clear idea of their current configuration of HR, know strengths and weaknesses of their present stock of employees, where they are going in the future, how their present configuration of HR relates to the configuration that will be needed, and where there are discrepancies between the present configuration and the configuration required for the future.

Unfortunately for many workers, in the past decade the typical organizational response to a surplus of labor has been what?

downsizing, which is fast but high in human suffering.

planned elimination of large numbers of personnel to enhance organizational competitiveness.

downsizing

The growth of the information highway as opened up new vistas for organizations trying to recruit talent such as social networking sites., niche boards, search engine sites as well as job boards. Social networking sites such as LinkedIn, Facebook, etc. Help recruiters reach applicants.

electronic retcruiting

generate a small list of highly qualified, interested applicants, but this is an expensive source compared with other alternatives.

executive search firms

True/False The average age of US workforce is decreaing?

false The average age of U.S. workforce is increasing

The attempts to determine the supply of and demand for various types of human resources to predict areas within the organization where there will be future labor shortages or surpluses.

forecasing of labor surplus or shortage

to focus attention on the problem and provide a benchmark for determining the relative success of any programs aimed at redressing a pending labor shortage or surplus.

goal setting and strategic planning

The key to avoiding reputation damage when laying off is what?

he key to avoiding reputation damage is to ensure that the need for the layoff is well explained and that procedures for implementing the layoff are fair, avoid indiscriminant across-the board cuts, and instead perform surgical strategic cuts that not only reduce costs, but also improve the firm's competitive position.

Organizational decisions that affect the nature of the vacancies for which people are recruited.

personnel policies

contrast to agencies that primarily serve the unemployed in the blue-collar market, _____ cater to the white-collar labor market by encouraging anyone to find work regardless of whether they are currently employed or not.

private employment agencies

The _____ step in human resource planning is goal setting and strategic planning.

second

Under conditions of a labor shortage

this may mean waging an effective recruitment campaign.

identify employee movements in different job categories over time to chart historical trends in company's labor supply

transitional matrices

What is used to project internal labor supply?

transitional matrix

occurs when the proportion of the subgroup in the organization is lower than that of the labor market due to problems in selection process or from problems in internal movement or for other causes.

underutilization

Many employers try what among older workers through early retirement incentive programs

voluntary attrition