Dessler Ch5 (1)

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PowerPoint Presentation by Charlie CookThe University of West Alabama

1

Human ResourceManagement

ELEVENTH EDITION

G A R Y D E S S L E R

© 2008 Prentice Hall, Inc. All rights reserved.

Personnel Planning and Recruiting

Chapter 5

Part 2 | Recruitment and Placement

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© 2008 Prentice Hall, Inc. All rights reserved. 5 – 2

After studying this chapter, you should be able to:

1. Explain the main techniques used in employmentplanning and forecasting.

2. List and discuss the main outside sources ofcandidates.

3. Effectively recruit job candidates.4. Name and describe the main internal sources of

candidates.

5. Develop a help wanted ad.

6. Explain how to recruit a more diverse workforce.

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The Recruitment and Selection Process1. Decide what positions to fill through personnel

planning and forecasting .

2. Build a candidate pool by recruiting internal or externalcandidates.

3. Have candidates complete application forms andundergo initial screening interviews.

4. Use selection tools to identify viable candidates.

5. Decide who to make an offer to, by having thesupervisor and others interview the candidates.

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FIGURE 5 – 1 Steps in Recruitment and Selection Process

The recruitment and selection process is a series of hurdles aimed at selecting the best candidate for the job.

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FIGURE 5 – 2 Linking Employer’s Strategy to Plans

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Planning and Forecasting

• Employment or Personnel PlanningThe process of deciding what positions the firmwill have to fill, and how to fill them.

• Succession PlanningThe process of deciding how to fill the company’smost important executive jobs.

• What to Forecast?

Overall personnel needsThe supply of inside candidates

The supply of outside candidates

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Forecasting Personnel Needs

Trend Analysis Scatter Plotting

ForecastingTools

Ratio Analysis

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FIGURE 5 – 3Determining theRelationshipBetween Hospital

Size and Numberof Nurses

Note: After fitting theline, you can projecthow many employeesyou’ll need, given yourprojected volume.

Size of Hospital(Numberof Beds)

Number ofRegistered

Nurses

200 240

300 260

400 470500 500

600 620

700 660

800 820

900 860

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Drawbacks to Traditional ForecastingTechniques

• They focus on projections and historical relationships.

• They do not consider the impact of strategic initiativeson future staffing levels.

• They support compensation plans that rewardmanagers for managing ever-larger staffs.

• They “bake in” the idea that staff increases areinevitable.

• They validate and institutionalize present planningprocesses and the usual ways of doing things.

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Using Computers to Forecast PersonnelRequirements

• Computerized Forecasts

Software that estimates future staffing needs by:

Projecting sales, volume of production, andpersonnel required to maintain different volumesof output.

Forecasting staffing levels for direct labor, indirectstaff, and exempt staff.

Creating metrics for direct labor hours and threesales projection scenarios —minimum, maximum,and probable.

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FIGURE 5 – 4ManagementReplacementChart Showing

DevelopmentNeeds ofPotential FutureDivisional VicePresidents

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Forecasting the Supply ofInside Candidates

ManualSystems andReplacement

Charts

Qualification

Inventories

ComputerizedInformationSystems

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The Matter of Privacy

• Ensuring the Security of HR Information

Control of HR information through access matrices

Access to records and employee privacy

• Legal ConsiderationsThe Federal Privacy Act of 1974

New York Personal Privacy Act of 1985

HIPAA Americans with Disabilities Act

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FIGURE 5 – 5 Keeping Data Safe

1. Perform background checks on anyone who is going to have access topersonal information.

2. If someone with access to personal information is out sick or on leave,

don’t hire a temporary employee to replace him or her. Instead, bringin a trusted worker from another department.

3. Perform random background checks such as random drug tests. Justbecause someone passed five years ago doesn’t mean their currentsituation is the same.

4. Limit access to information such as SSNs, health information, andother sensitive data to HR managers who require it to do their jobs.

Since intruders can strike from outside an organization or from within, HRdepartments can help screen out potential identity thieves by following fourbasic rules:

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Forecasting Outside Candidate Supply

• Factors In Supply of Outside CandidatesGeneral economic conditions

Expected unemployment rate

• Sources of InformationPeriodic forecasts in business publications

Online economic projections

U.S. Congressional Budget Office (CBO)

U.S. Department of Labor’s O*NET™

Bureau of Labor Statistics (BLS)

Other federal agencies and private sources

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Effective Recruiting

• External Factors Affecting RecruitingSupply of workersOutsourcing of white-collar jobsFewer “qualified” candidates

• Other Factors Affecting RecruitingConsistency of recruitment with strategic goalsTypes of jobs recruited and recruiting methodsSuccessful prescreening of applicantsPublic image of the firmEmployment laws

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Effective Recruiting (cont’d)

• Advantages of Centralizing Recruitment

Strengthens employment brand

Facilitates applying strategic priorities

Reduces duplication of HR activities

Reduces cost of new HR technologies

Builds teams of HR experts

Provides better measurement of HR performance Allows for sharing of applicant pools

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FIGURE 5 – 6 Sample Acceptable Questions Once Conditional Offer Is Made

1. Do you have any responsibilities that conflict with the job vacancy?

2. How long have you lived at your present address?

3. Do you have any relatives working for this company?

4. Do you have any physical defects that would prevent you fromperforming certain jobs where, to your knowledge, vacancies exist?

5. Do you have adequate means of transportation to get to work?6. Have you had any major illness (treated or untreated) in the past 10

years?

7. Have you ever been convicted of a felony or do you have a history ofbeing a violent person? (This is a very important question to avoid a

negligent hiring or retention charge.)8. What is your educational background? (The information required here

would depend on the job-related requirements of the position.)

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Measuring Recruiting Effectiveness

What toMeasure

How toMeasure

EvaluatingRecruiting

Effectiveness

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TABLE 5 – 1 Selection Devices that Could be Used to Initially Screen Applicants

Selection DeviceValidity for Predicting Job

Performance*

Construct

General mental ability tests 0.51

Conscientiousness tests 0.31

Integrity tests 0.41

Method

Work sample tests 0.54

Job knowledge tests 0.48

Structured interviews 0.51

Biographical data 0.35

Grade point average 0.23Ratings of training and experience 0.11

Note: *Higher is better.

Source: Kevin Carlson et al., “Recruitment Evaluation: The Case for Assessing

the Quality of Applicants Attracted,” Personnel Psychology 55 (2002), p. 470.

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FIGURE 5 – 7 Recruiting Yield Pyramid

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Internal Candidates: Hiring from Within

• Foreknowledge ofcandidates’ strengths andweaknesses

• More accurate view ofcandidate’s skills

• Candidates have astronger commitment to thecompany

• Increases employeemorale

• Less training andorientation required

• Failed applicants becomediscontented

• Time wasted interviewing

inside candidates who willnot be considered

• Inbreeding strengthenstendency to maintain thestatus quo

Advantages Disadvantages

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Finding Internal Candidates

Hiring fromWithin

Job Posting

SuccessionPlanning (HRIS)

Rehiring FormerEmployees

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Outside Sources of Candidates

1

2

3

4

5

Advertising

Recruiting via the Internet

Employment Agencies

Temp Agencies and AlternativeStaffing

Offshoring/Outsourcing

6

7

8

9

On Demand Recruiting

Services (ODRS)

Executive Recruiters

College Recruiting

Referrals and Walk-ins

Locating Outside Candidates

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Outside Sources of Candidates (cont’d) • Recruiting via the Internet

Advantages

Cost-effective way to publicize job openings

More applicants attracted over a longer period

Immediate applicant responses

Online prescreening of applicantsLinks to other job search sites

Automation of applicant tracking and evaluation

Disadvantages

Exclusion of older and minority workersExcessive number of unqualified applicants

Personal information privacy concerns of applicants

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FIGURE 5 – 8Top JobBoardsRankedAccordingto AverageNumber ofJobListings

Source: WorkforceManagement , May 22,

2006, p. 12.

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FIGURE 5 – 9 Ineffective and Effective Web Ads

Source: Workforce, December 2001, © Crain Communication, Inc. Reprinted with permission.

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Advertising for Outside Candidates

• The Media ChoiceSelection of the best medium depends on thepositions for which the firm is recruiting.

Newspapers: local and specific labor markets

Trade and professional journals: specializedemployees

Internet job sites: global labor markets

• Effective AdsCreate attention, interest, desire, and action (AIDA).

Create a positive impression of the firm.

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FIGURE 5 – 10 Help Wanted Ad That Draws Attention

Source: The New York Times , May 13, 2007, Business p. 18.

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Employment Agencies

PublicAgencies

PrivateAgencies

Types of EmploymentAgencies

NonprofitAgencies

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Outside Sources of Candidates (cont’d)

• Why Use a Private Employment Agency

No HR department: firm lacks recruiting andscreening capabilities.

To attract a pool of qualified applicants.

To fill a particular opening quickly.

To attract more minority or female applicants.

To reach currently employed individuals who are

more comfortable dealing with agencies.To reduce internal time devoted to recruiting.

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• Avoiding Problems with Employment AgenciesProvide the agency with accurate and complete jobdescriptions.

Make sure tests, application blanks, and interviews

are part of the agency’s selection process. Review candidates accepted or rejected by your firmor the agency for effectiveness and fairness ofagency’s screening process.

Screen agency for effectiveness in filling positions.Supplement the agency’s reference checking bychecking the final candidate’s references yourself.

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Temp Agencies and Alternative Staffing

• Benefits of TempsIncreased productivity —paid only when working

Allows “trial run” for prospective employees

No recruitment, screening, and payroll

administration costs• Costs of Temps

Increased labor costs due to fees paid to tempagencies

Temp employees’ lack of commitment to the firm

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Concerns of Temp Employees• Dehumanizing, impersonal, and discouraging treatment

by employers.• Insecurity about employment and pessimism about the

future.• Worry about the lack of insurance and pension benefits.• Being misled about job assignments and whether

temporary assignments are likely to become full-timepositions.

• Being “underemployed” while trying return to the full -time labor market.

• Anger toward the corporate world and its values;expressed as alienation and disenchantment.

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FIGURE 5 – 11 Guidelines for Using Temporary Employees

Source: Adapted from Bohner and Selasco, “Beware the Legal

Risks of Hiring Temps,” Workforce , October 2000, p. 53.

1. Do not train your contingent workers. Ask their staffing agency to handle training.

2. Do not negotiate the pay rate of your contingent workers. The agency shouldset pay.

3. Do not coach or counsel a contingent worker on his/her job performance.Instead, call the person’s agency and request that it do so.

4. Do not negotiate a contingent worker’s vacations or personal time off. Directthe worker to his or her agency.

5. Do not routinely include contingent workers in your company’s employeefunctions.

6. Do not allow contingent workers to utilize facilities intended for employees.

7. Do not let managers issue company business cards, nameplates, or employeebadges to contingent workers without HR and legal approval.

8. Do not let managers discuss harassment or discrimination issues with

contingent workers.9. Do not discuss job opportunities and the contingent worker’s suitability for

them directly. Instead, refer the worker to publicly available job postings.

10. Do not terminate a contingent worker directly. Contact the agency to do so.

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Working with a Temp Agency• Invoicing. Make sure the agency’s invoice fits your company’s

needs.• Time sheets. The time sheet is a verification of hours worked and

an agreement to pay the agency’s fees.

• Temp-to-perm policy. What is the policy if you want to hire a tempas a permanent employee?

• Recruitment of and benefits for temp employees. How does theagency plan to recruit and what sorts of benefits it will it pay?

• Dress code. Specify the attire at each of your offices or plants.

• Equal employment opportunity statement. Get a statement from theagency that it does not discriminate when filling temp orders.

• Job description information. Ensure that the agency understandsthe job to be filled and the sort of person you want to fill it.

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Offshoring/Outsourcing White-Collarand Other Jobs

Political andMilitary Instability

CulturalMisunderstandings

Customers’security and

privacy concerns

Foreign contracts,liability, and legal

concerns

Special training offoreign employees

Costs of foreignworkers

Resentment and

anxiety of U.S.employees/unions

MainIssues

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• Executive Recruiters (Headhunters)Contingent-based recruiters

Retained executive searchers

Internet technology and specialization trends

• Guidelines for Choosing a Recruiter1. Make sure the firm is capable of conducting a

thorough search.

2. Meet individual who will handle your assignment.

3. Ask how much the search firm charges.

4. Never rely solely on the recruiter to do referencechecking.

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Outside Sources of Candidates (cont’d) • College Recruiting

On-campus recruitinggoals

To determine if thecandidate is worthy offurther consideration

To attract goodcandidates

On-site visitsInvitation letters

Assigned hosts

Information packages

Planned interviews

Timely employmentoffer

Follow-up

Internships

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• Employee ReferralsReferring employees become stakeholders.

Referral is a cost-effective recruitment program.

Referral can speed up diversifying the workforce.

Relying on referrals may be discriminatory.

• Walk-insSeek employment through a personal direct

approach to the employer.Courteous treatment of any applicant is a goodbusiness practice.

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FIGURE 5 – 12 Best Recruiting Sources

Percentage of employers reporting best-performingsources for hiring without regard to cost, 2004.

Source: Workforce Management , December 2004, p. 98.

Note: Survey of 2,294 organizations.

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Improved Productivity Through HRIS: An Integrated Technology Approach to Recruiting

Requisition Management System

Integrated Recruiting Solution

Screening Services

Hiring Management

Integrated EmployeeRecruitment System

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Recruiting A More Diverse Workforce

Single Parents

Older Workers

Welfare-to-Work Minorities andWomen

The Disabled

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Developing and Using Application Forms

Applicant’seducation and

experience

Applicant’slikelihood of

success

Applicant’sprogress and

growth

Uses of ApplicationInformation

Applicant’semployment

stability

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FIGURE 5 – 13EmploymentApplication

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Application Forms and the Law

EducationAchievements

ArrestRecord

Notification inCase of

Emergency

Memberships inOrganizations

PhysicalHandicaps

MaritalStatus

HousingArrangements

Areas ofPersonal

Information

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K E Y T E R M S

employment or personnelplanning

trend analysisratio analysis

scatter plotcomputerized forecastqualifications inventoriespersonnel replacement charts

position replacement cardrecruiting yield pyramid

job postingsuccession planning

alternative staffingon demand recruiting services

(ODRS)application form

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