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Planning for and

Recruiting Human

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Resources

Fakultas
Ekonomi dan Dr. Purwanto S.K. MSi.
Bisnis
Program Studi
Magister
Manajemen
CHAPTER 5

Planning for and Recruiting Human


Resources
fundamentals of
Human Resource Management 4th edition
by R.A. Noe, J.R. Hollenbeck, B. Gerhart, and P.M. Wright
1. Discuss how to plan for human
resources needed to carry out the
organizations strategy.
2. Determine the labor demand for
workers in various job categories.
3. Summarize the advantages and
disadvantages of ways to eliminate a
labor surplus and avoid a labor
shortage.
What Do I Need to Know? (continued)
4. Describe recruitment policies
organizations use to make job
vacancies more attractive.
5. List and compare sources of job
applicants.
6. Describe the recruiters role in
the recruitment process,
including limits and
opportunities.
The Process of Human Resource Planning

Organizations should carry out


human resource planning so as
to meet business objectives and
gain a competitive advantage
over competitors.
Human resource planning compares the
present state of the organization with its
goals for the future
Then identifies what changes it must make
in its human resources to meet those goals
Figure 5.1:

Overview of the Human Resource Planning


Process
Forecasting
Forecasting: attempts to determine the
supply and demand for various types
of human resources to predict areas
within the organization where there
will be labor shortages or surpluses.
There are three major steps to forecasting:
1.Forecasting the demand for labor
2.Determining labor supply
3.Determining labor surplus or shortage
Trend Analysis
Forecasting the Demand for Labor
Leading Indicators
Constructing and Objective measures that
applying statistical accurately predict
models that predict future labor demand.
labor demand for the
next year, given
relatively objective
statistics from the
previous year.
Determining Labor Supply
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.

It answers two questions:


1. Where did people in each job category go?
2. Where did people now in each job category come
from?
Table 5.1:
Transitional Matrix Example for an Auto
Parts Manufacturer
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.
Goal Setting and Strategic Planning
The purpose of setting specific numerical goals is
to focus attention on the problem and provide
a basis for measuring the organizations success
in addressing labor shortages and surpluses.
The goals should come directly from the analysis
of supply and demand.
For each goal, the organization must choose one
or more human resource strategies.
Organizations should retain and attract
employees who provide a core competency
(what makes it better than competitors)
Options for Reducing a Surplus

Pay
Downsizing Demotions
reductions

Work Hiring
Transfers
sharing freeze

Natural Early
Retraining
attrition retirement
As the average age of many workers in skilled trades grows, the coming
demand for workers in many trades is expected to outstrip supply in the
United States. There is a potential for employers in some areas to
experience a labor shortage because of this.
Options for Avoiding a Shortage

Temporary
Overtime Outsourcing
employees

Retrained Turnover New external


transfers reductions hires

Technological
innovation
Table 5.2:
HR Strategies for Addressing a Labor
Shortage or Surplus
Test Your Knowledge
A public accounting firm of 250
employees realizes they have a
surplus of 15 support personnel
(not auditors). What should they
do?
A. Hire temporary workers
B. Offer early retirement
C. Downsize people in those positions
D. Wait for attrition and implement a hiring
freeze for those positions
Implementing and Evaluating the HR Plan

When implementing the HR strategy, the


organization must hold some individual
accountable for achieving the goals.
That person must also have the authority and
resources needed to accomplish those goals.
Regular progress reports should be issued.
The evaluation of results should not only look at
the actual numbers, but should also identify
which parts of the planning process contributed
to success or failure.
Workforce Utilization Review: a comparison of
Applying
employees HR Planning
in protected groups withto theAffirmative
proportion Action
that each group represents in the relevant labor
market.
The organization must assess current utilization patterns,
The steps in a workforce
then forecast utilization
how they review
are likely are in the near
to change
identical
future.to the steps in the HR planning process.
If the analyses forecast underutilization of certain groups,
then goals and a plan will be established.
Recruiting Human Resources
The role of human resource
recruitment is to build a supply of
potential new hires that the
organization can draw on if the need
arises.
Recruiting: any activity carried on by
the organization with the primary
purpose of identifying and attracting
potential employees.
Figure 5.2: Three Aspects of Recruiting
Several personnel policies are especially relevant
to recruitment:
Internal versus
Personnel external recruiting
Policies
Lead-the-market pay
strategies

Employment-at-will
policies

Image advertising
Image advertising, such as in this campaign to recruit nurses,
promotes a whole profession or organization as opposed to a
specific job opening.
This ad is designed to create a positive impression of the
profession, which is now facing a shortage of workers.
Recruitment Sources: Internal Sources

Job Posting: the process of


communicating information
about a job vacancy:
On company bulletin boards
In employee publications
On corporate intranets
Anywhere else the organization
communicates with employees
Advantages of Internal Sources
1. It generates applicants who are well known
to the organization.
2. These applicants are relatively
knowledgeable about the organizations
vacancies, which minimizes the possibility
of unrealistic job expectations.
3. Filling vacancies through internal recruiting
is generally cheaper and faster than looking
outside the organization.
One in Three Positions Are
Filled with Insiders
Recruitment Sources: External Sources

Direct applicants Public employment


agencies

Referrals
Private employment
agencies
Advertisements in
newspapers and
magazines
Colleges and
universities
Electronic recruiting
Figure 5.3: External Recruiting Sources
Percentage of Employees Hired
Yield Ratios
Evaluating the Quality of a Source
Cost Per Hire
A ratio that expresses the Find the cost of using a
percentage of applicants who particular recruitment
successfully move from one source for a particular type
stage of the recruitment and of vacancy.
selection process to the next. Divide that cost by the
By comparing the yield ratios number of people hired to
of different recruitment fill that type of vacancy.
sources, we can determine A low cost per hire means
which source is the best or that the recruitment source
most efficient for the type of is efficient.
vacancy.
Table 5.3:
Results of a Hypothetical Recruiting Effort
Your Experience
In your last job search, what was
your experience with a recruiter
or other point of contact before
you were offered the job?
A. Lousy, I didnt take the job
B. Lousy, but I took the job anyway
C. Great, but I didnt take the job
D. Great, I took the job
E. The experience wasnt memorable.
Recruiter Traits and Behaviors

Characteristics of the Recruiter

Behavior of the Recruiter

Enhancing the Recruiters Impact


Recruiter Characteristics and Behavior
True = A False = B
Applicants respond more positively when the
recruiter is an HR specialist than line managers
or incumbents.
Applicants respond positively to recruiters whom
are warm and informative
Personnel policies are more important than the
recruiter when deciding whether or not to take a
job.
Realistic job previews should highlight the positive
characteristics of the job rather than the negative.
Figure 5.4:
Recruits Who Were Offended by Recruiters
Enhancing the Recruiters Impact
Recruiters should provide timely
feedback.
Recruiters should avoid offensive
behavior.
They should avoid behaving in ways
that might convey the wrong
impression about the organization.
The organization can recruit with
teams rather than individual
recruiters.
Recruiting Exercise (1 of 2)
You are the regional HR director
of the restaurant chain (e.g.,
Ruby Tuesdays or TGI Fridays)
and responsible for recruiting all
staff for the restaurants in your
region.
One of the stores in your region
needs to hire servers.
Recruiting Exercise (2 of 2)
1. What knowledge, skills, and
abilities are required for the
positions you are recruiting?
2. Will your sources of applicants be
internal, external, or both? Explain.
3. What recruiting strategies will you
use?
4. What metrics will you use to
measure your success?
Summary
The first step in human resource planning is
personnel forecasting. Through trend analysis
and good judgment, the planner tries to
determine the supply and demand for various
human resources.
The next step is to determine the labor demand
for workers in various job categories. Analysis
of a transitional matrix can help the planner
identify which job categories can be filled
internally and where high turnover is likely.
Summary (continued)
To reduce a surplus, downsizing, pay reductions,
and demotions deliver fast results but at a high
cost in human suffering that may hurt surviving
employees motivation and future recruiting.
To avoid a labor shortage, requiring overtime is
the easiest and fastest strategy.
Internal recruiting generally makes job vacancies
more attractive because candidates see
opportunities for growth and advancement.
Summary (continued)
Lead-the-market pay strategies make jobs
economically desirable.
Internal sources are usually not sufficient for all of
an organizations labor needs.
Through their behavior and other characteristics,
recruiters influence the nature of the job
vacancy and the kinds of applicants generated.
Terima Kasih
Dr. Purwanto S.K. MSi.