Human Resource Management Chapter5

Process of Human Resource Planning
1.) Forecasting
2.) Goal setting and strategic planning
3.) Implementing and Evaluating the HR Plan
4.) Applying HR planning to Affirmative Action
Forecasting
Attempts to determine the supply of and demand for various types of human resources to predict areas within the organization where there will be labor shortages or surpluses.
Trend Analysis
Constructing and applying statistical models that predict labor demand for the next year, given relatively objective statistics from the previous year.
Leading Indicators
Objective measures that accurately predict future labor demands.
Transitional Matrix
A chart that list job categories held in one period and shows the proportion of employees in each of those job categories in a future period.
Core Competency
Set of knowledge and skills that make the organization superior to competitors and create value for customers.
Downsizing
Planned elimination of large numbers of personnel with the goal of enhancing the organization.
Main reason for downsizing
To promote future competitiveness.
4 objectives to future competitiveness:
1.) Reducing Costs
2.) Replacing labor with technology
3.) Mergers and acquisitions
4.) Moving to more economical locations
Reducing Hours
Less costly than layoffs and easier to restore work hours than hire new employees.
Outsourcing
Contracting with another organization to preform a broad set of services.
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.
Recruiting
Any activity carried on by the organization with the primary purpose of identifying and attracting potential employees.
Personnel Policies
Decisions about how it will carry out human resource management.
Relevant policies to recruitment:
1.) Internal vs. External
2.) Lead-the-market pay
3.)Employment-at-will policies
4.) Image advertising
Employment-at-will
Employment principle that if there is no specific employment contract saying otherwise, the employer or employee may end an employment relationship at any time, regardless of cause.
Due-Process Policies
Policies that formally lay out the steps an employee may take to appeal the employer’s decision to terminate that employee.
Job Posting
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.
Direct Applicants
People who apply for a vacancy without prompting from the organization.
Referrals
People who apply for a vacancy because someone in the organization prompted them to do so.
Nepotism
Practice of hiring relatives.
Recruitment Sources:
1.)Internal Sources
2.) External Sources
a.) Direct applicants and Referrals
b.) Electronic Recruiting
c.) Advertisements in Newspapers and Magazines
d.)Public Employment Agencies
e.) Private Employment Agencies
f.) Colleges and Universities
Yield Ratio
A ratio expresses the percentage of applicants who successfully move from one stage of the recruitment and selection process to the next.
Cost per Hire
Total amount of money spent to fill a job vacancy. The number is computed by finding the cost of using a particular recruitment source and dividing that cost by the number of people hired to fill that type of vacancy.
Realistic Job Preview
Background information about a job’s positive and negative qualities.