Chapter 5

Research suggests realistic job previews greatly help organizations to reduce turnover by retaining new hires. True or False

False Explanation Research suggests that realistic job previews have a weak and inconsistent effect on turnover.

Demotions

Fast, High suffering caused

Transfers

Fast, Moderate suffering caused

Pay reductions

Fast, high suffering caused

Work Sharing

Fast, moderate suffering cauased

Electronic Recruiting

Few employers can fill all their vacant positions through direct applications and referrals, so most need to advertise openings.

Advantages of recruiting externally

For entry level positions and specialized upper level positions, the organization has no internal recruits to draw from. Also bringing in outsiders may expose the organization to new ways of doing business.

Advantages of recruiting internally

Generates applicants who are well known in the organization, the applicants are knowledgable about vacancies, and it is generally cheaper and faster than externally

Reducing Hours

Given limitations of downsizing many organizations are more carefully considering other avenues for eliminating a labor surplus. It spreads the burden more fairly. High suffering, fast results.

How do internal and external considerations affect workforce planning? We discussed several in class + they were in the slides.

Internal Considerations: Turnover Employee Development Current Workforce Profile Current Engagement Levels Employee Performance Operations; process efficiencies Technology Improvements Satisfaction Absenteeism Job Searching Customer Relationships Quality Firm Performance External Considerations Economy Competitors Threat of Substitution Legislation Labor Market Globalization Technology Suppliers Customer Demands Geography Societal Changes

Why is recruitment a strategic imperative?

Just as corporations strategize to develop, manufacture, and market the best product or service, so they must also vie to identify, attract, and hire the most qualified people. For many organizations, finding the right people is the biggest limitation to growth.

ratio analysis

More sophisticated forecasting, looking at historical ratios involving size, for example balancing sales projections with # of employees needed per sale. Supplements trend analysis by adding new operational information into expected staffing level requirements

Internal Hires

Offers several advantages, it generates applicants who are well known to the organization. In addition, these applicants are relatively knowledgeable about the organization's vacancies, which minimizes the possibility they will have unrealistic expectations about the job. Finally, Filling vacancies through internal recruiting is generally cheaper and faster than looking outside the organization

Internal versus external recruiting

Organizations with policies to "promote from within" try to fill upper level vacancies by recruiting candidates internally, that is finding candidates who already work for the organization.

Recruiting

consists of any practice or activity carried on by the organization with the primary purpose of identifying and attracting potential employees

trend analysis

constructing and applying statistical models that predict labor demand for the next year, given relatively objective statistics from the previous year

Outsourcing

contracting with another organization to perform a broad set of services.

_____ is the first step in human resource planning. a.)Program implementation b.) forecasting c.) program review d.) Performance evaluation e.) Goal Setting

b.) Forecasting Explanation The first step in human resource planning is forecasting. In personnel forecasting, the HR professional tries to determine the supply of and demand for various types of human resources. The primary goal is to predict which areas of the organization will experience labor shortages or surpluses.

Realistic job previews

background information about a job's positive and negative qualities

Determining labor surplus or shortage

based on the forecasts for labor demand and supply, the planner can compare the figures to determine whether there will be a shortage or surplus of labor for each job category. Determining expected shortages and surpluses allows the organization to plan how to address these challenges.

P/O Fit (Person/Organization)

o Understands and supports the core values of the organization as a whole

leading indicators

objective measures that accurately predict future demand for labor. They may include measures of the economy (such as sales or inventory levels), actions of competitors, changes in technology, and trends in the composition of the workforce and overall population

Determining labor supply

once a company has forecast the demand for labor, it needs an indication of the firm's labor supply. Determining the internal labor supply calls for a detailed analysis of how many people are currently in various job categories or have specific skills within the organization. The planner then modifies this analysis to reflect changes expected in the near future as a result of retirements, promotions, transfers, voluntary turnover and terminations.

core competecy

a set of knowledge and skills that make the organization superior to competitors and create value for customers

Options for reducing a surplus

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

3 Stages of HR Planning

1. Forecasts of labor surplus or shortage (comes from forecast of labor supply and demand) 2. Goal Setting and Strategic planning 3. Program implementation and evaluation

What are the main purposes of workforce planning?

1. Identifies workforce requirements needed for strategic plan: Based on our market strategy and unique value proposition, what labor hours do we need. What are the KSAOs, and core competencies needed? 2. Discovers where/if competency gaps exist: Looking at our current workforce, determine if we have the staff we need with correct KSAOs. 3. Plans for internal and external factors: Cannot act on that information just yet! Other things are going on in the internal and external environment that we need to consider 4. implements workforce shortage and reduction strategies: After analyzing internal and external considerations, what is the appropriate action? Downsizing? Natural Attrition? Hiring?

Several Personnel policies that are especially relevant to recruitment

1. Internal versus external recruitment 2. Lead the market pay strategies 3. Employment at will policies 4. image Advertising

Options for avoiding a shortage

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

3 Aspects of Recruiting

1. Personnel Policies 2. Recruitment Sources 3. Characteristics of the recruiter

3 Ways to improve the recruiters impact

1. Provide timely feedback 2. Avoid offensive behavior 3. Recruit with teams rather than individual recruiters

Primary Reasons organizations engage in downsizing

1. Reducing costs 2. Replacing labor with technology 3. Mergers and acquisitions 4. Moving to more economical locations

What are the 4 Main objectives of Downsizing?

1. Reducing costs—Labor is a large part of a company's total costs, so downsizing is an attractive place to start cutting costs. 2. Replacing labor with technology —Closing outdated factories, automating, or introducing other technological changes reduces the need for labor. Often, the labor savings outweigh the cost of the new technology. 3. Mergers and acquisitions —When organizations combine, they often need less bureaucratic overhead, so they lay off managers and some professional staff members. 4. Moving to more economical locations —Some organizations move from one area of the United States to another

Transitional matrix

A chart that lists job categories held in one period and shows the proportion of employees in each of those job categories in a future period.

Passive Candidate

A passive candidate is employed, but not currently looking for a new opportunity. Including the 15% of professionals who are tiptoers above, this group accounts for 75% of the workforce. With 60% of the workforce not looking for a new job, but willing to discuss a new opportunity, proactive sourcing (Boolean searches, social media, etc) is going to be your best bet for finding this group. Since it can be difficult to distinguish a passive candidate who is interested in speaking to you from one that's not, you should be careful how you reach out people you find through proactive sourcing.

Temporary Workers

According to estimates by the federal government, organizations are using almost 3 million temporary workers. Temporary employment is popular with employers because it gives them flexibility they need to operate efficiently when demand for their products changes rapidly.

Active Candidate

An active candidate is actively looking for work. This does not necessarily mean unemployed, but it can. This group is looking for a new opportunity for a variety of reasons: • they're concerned about their current employer's stability • they would like to take on more responsibility • their job was outsourced • their employer went out of business

Disadvantages of Recruiting internally

An organization that uses only internal recruitment can wind up with a workforce whose members all think alike and may be poorly suited to innovation.

Image advertising

Besides specific job openings, organizations may advertise themselves as a good place to work in general. Advertising designed to create a favorable impression of the organization. Research suggests that the image of an organization's brand-for example, innovative, dynamic or fun-influences the degree to which a person feels attracted to the organization

Yield ratio

Expresses the percentage of applicants who successfully move from one stage of the recruitment and selection process to the next.

Lead the Market Pay Strategies:

Pay is an important job characteristic for almost all applicants. Organizations have a recruiting advantage if their policy is to take a "lead-the-market" approach to pay—that is, pay more than the current market wages for a job. Higher pay can also make up for a job's less desirable features such as working on a night shift or in dangerous conditions. Organizations that compete for applicants based on pay may use bonuses, stock options and other forms of pay besides wages and salaries.

Lead the market pay strategies

Pay is an important job characteristic for almost all applicants. Organizations have a recruiting advantage if their policy is to take the "lead the market" approach to pay

Employing temporary workers and contract workers

Popular method for reducing a labor surplus. Fast Results, high ability to change later

External Hires:

Received significantly lower performance reviews, 61% more likely to be fired from their new jobs than those where were promoted from within the firm, made 18% more money than the same internal promotes in the same jobs. However, external may be better for specialized upper level positions or entry level positions. Also it helps to bring in new ideas to the organization or new ways of doing business.

How do the recruiter's traits and behaviors affect the success of the recruiting process?

Recruiters should be: i. Warm ii. Knowledgeable iii. Shouldn't oversell or be too negative iv. Credible

turnover reductions

Slow, Moderate Ability to Change

Characteristics of the recruiter

Some applicants perceive HR specialists as less credible, in general applicants respond positively to recruiters they perceive as warm and informative. Informative means the recruiter provides the kind of information the applicant is seeking. The evidence of impact of other characteristics of recruiters-including their age, sex and race is inconsistent

Implementing and Evaluating the HR Plan

The final stage of HR planning involves implementing strategies and evaluating outcomes.

Forecasting

The first stage in HR Planning, in this stage the HR professional tries to determine the supply of and demand for various types of Human Resources. The primary goal is to predict which areas of the organization will experience labor shortages or surpluses

Nepotism

The hiring of relatives

P/J (Person Job) Fit

The person should be matched to the job o Has the right KSAOs o Is interested in the work and rewards

Goal Setting

The second stage of human resource planning: the purpose is setting specific numerical goals is to focus attention on the problem and provide a basis for measuring the organization's success in addressing labor shortages and surpluses

The goals an organization sets in its human resource planning process should come directly from the analysis of its labor supply and demand. True or false.

True Explanation: The purpose of setting specific numerical goals is to focus attention on the problem and provide a basis for measuring the organization's success in addressing labor shortages and surpluses. The goals should come directly from the analysis of labor supply and demand.

Regression Analysis

Very much like ratio analysis, but rather than using a single variable, you are using multiple variables, such as new customers, projected sales, turnover, Excel can run a regression analysis. Far more accurate than subjective managerial judgement. Supplements ratio analysis by adding multiple dimensions of information into expected staffing level requirements

Employment at will policies

While within the laws of the state where they are operating, employers have latitude to set policies about their rights in an employment relationship.

Workforce Utilization Review:

a comparison of the proportion of employees in protected groups with the proportion that each group represents in the relevant labor market

Core competency

a set of knowledge and skills that make the organization superior to competitors and create value for customers

Katie is the HR manager at Potter Inc. She forecasts the labor demand and concludes that, due to a temporary decline in product demand, there will be a labor surplus after 6 months. Considering the length of time she has to implement the strategy, which of the following strategies would best help Katie deal with the labor surplus? a.)Hiring Freeze b.)Demotions c.)Downsizing d.)Transfers e.)Pay reduction

a.) Hiring Freeze Explanation Since Katie has six months in which to implement a strategy, a hiring freeze would be her best option for reducing a surplus. The results of a hiring freeze are slow to take effect. Additionally, it is the strategy with the lowest amount of suffering for both current and former employees.

Quality Computers operates a call center, where representatives help customers troubleshoot problems. As the company grows and as employees move on to other jobs, the call center frequently needs to fill open supervisor positions. Kendra, a human resource manager at Quality, encourages the customer service manager to recruit internally. Which of the following statements is the best reason for the use of internal sources? a.) Internal job candidates are relatively knowledgeable about the company and the positions. b.) The organization is unlikely to have any candidates from which to draw. c.) Promoting insiders will expose the organization to fresh new ideas. d.) Internal recruiting costs more than looking outside the organization, but is faster. e.) External job candidates will be new and unfamiliar to the customer service manager.

a.) Internal job candidates are relatively knowledgeable about the company and the positions.

Margaret, the HR manager at Frexotel Inc., recruits her cousin Linda as production manager in the company. This move results in resentment among several of the company's employees. By hiring her cousin, Margaret has engaged in the practice of hiring relatives, or _____. a.) nepotism b.) localism c.) structuralism d.) Abstractionism e.) voluntarism

a.) Nepotism Nepotism is the practice of hiring relatives. This is often considered an unfair practice and can result in resentment among employees.

Assume the following economic indicators: interest rates on loans are historically low, gasoline prices are low, unemployment rates are falling, and automakers are increasing their sales forecasts. For Gabe, a human resource executive at a financial company that makes auto loans, which of the following statements best states how these leading indicators should shape a forecast of his company's demand for labor? a.) Demand for auto loans from dealers will rise; labor demand at our firm will be unchanged. b.) Demand for auto loans will rise, so labor demand in our industry will fall. c.)These trends affect automakers and oil companies, not financial services; demand stays steady. d.) Demand for auto loans will rise, so labor demand in our industry will rise. e.) Demand for auto loans will fall, so labor demand in our industry will fall.

d.) Demand for auto loans will rise, so labor demand in our industry will rise. Explanation Leading indicators are objective measures that accurately predict future labor demand. They might include measures of the economy (such as sales or inventory levels), actions of competitors, changes in technology, and trends in the composition of the workforce and overall population.

Which of the following is a true statement about internal sources of recruitment? a.)Internal sources of recruitment are best suited for entry-level positions. b.)Internal sources of recruitment constitute a good majority of the workforce in every organization. c.)Organizations that use internal sources of recruitment enjoy diversity of workforce, which results in high sociability and informal chains of command. d.)Organizations that use only internal sources of recruitment can wind up with a workforce whose members all think alike, which may be poorly suited to innovation. e.)Internal sources of recruitment help organizations in avoiding nepotism, which is an unfair hiring practice.

d.) Organizations that use only internal sources of recruitment can wind up with a workforce whose members all think alike, which may be poorly suited to innovation.

_____ is the process that occurs when a job applicant does research on an organization and concludes there is enough of a fit between themselves and a job opening to warrant submitting their application. a.) direct browsing b.) submittal c.) Nepotism d.) Self-Selection e.) Internal Referral

d.) self-selection Explanation Many direct applicants are to some extent already "sold" on the organization. Most have done some research and concluded there is enough fit between themselves and the vacant position to warrant submitting an application, a process called self-selection, which, when it works, eases the pressure on the organization's recruiting and selection systems.

A chart that lists job categories held in one period and shows the proportion of employees in each of those job categories in a future period is known as a _____. a.) shortage analysis b.) forecast c.) trend matrix d.) transitional matrix e.) surplus analysis

d.) transitional matrix Explanation A transitional matrix is a chart that lists job categories held in one period and shows the proportion of employees in each of those job categories in a future period. It answers two questions: "Where did people who were in each job category go?" and "Where did people now in each job category come from?"

Consequences of Downsizing

damaged long term organizational effectiveness (especially true for companies with R & D and have extensive customer contact, large use of teams), loss of talent, demoralization, confusion among employees, losing top employees, declining motivation,

Personnel policies

decisions about how it will carry out human resource management, including how it will fill job vacancies. These policies influence the nature of the positions that are vacant.

Direct applicants and referrals:

even without a formal effort to reach job applicants in an organization may hear from candidates through direct applicants and referrals.

Cost per hire

finding the cost of using a particular recruitment source divided by the number of people hired to fill that type of vacancy

Due process policies

formally lay out the steps an employee may take to terminate that employee

Early retirement programs

helps to eliminate older workers, sometimes phased retirement is used. Slow results, low suffering.

Employment at will

holds that if there is no specific employment contract saying otherwise, the employer or employee may end a relationship at any time

Overtime and expanded hours

organizations facing a labor shortage may be reluctant to hire employees, even temporary workers, or to commit to an outsourcing agreement, it may prefer an arrangement that is simpler and less costly. Under some conditions, these organizations may try to garner more hours from the existing labor force. For a short time at least, many workers appreciate the added compensation for working overtime. Over extended periods however, employees feel stress and frustration from working long hours.

Referrals

people who apply because someone in the organization prompted them to do so

Direct Applicants

people who apply for a vacancy without prompting from the organization

Retrained transfers

slow, high ability to change later

new external hires

slow, low ability to change later

technological innovation

slow, low ability to change later

Hiring freeze

slow, low suffering caused

early retirement

slow, low suffering caused

natural attrition

slow, low suffering caused

retraining

slow, low suffering caused

Downsizing

the planned elimination of large numbers of personnel with the goal of enhancing the organization's competitiveness.

Job Posting

the process of communicating information about a job vacancy on company bulletin boards, in employee publications, on corporate intranets, and anywhere else the organization communicates with employees

Forecasting the demand for labor

usually an organization forecasts for specific job categories or skill areas. After identifying the relevant job categories or skills, the planner investigates the likely demand for each. The planner must forecast whether the need for people with the necessary skills and experience will increase or decrease.