Chapter 3: Human Resource Planning, Recruitment, and Selection

1
Chapter 3 Human Resource Planning, Recruitment,
and Selection

• Creating Effective Organizations

2
Development of Human Resource Management

• Parallels the protection and treatment of workers
• Social Welfare Department
• 1880 1935
• Helping injured workers and their families
• Company unions parties and social events
• Worker health
• Labor Relations Department
• 1935 1950
• Collective bargaining
• Contract administration
• Industrial Relations Department
• 1950 1970
• Labor relations
• Benefits and vacations
• Testing and selection
• Compensation systems

• Personnel Department
• 1970 1990
• Legal compliance
• Staffing
• Performance evaluation
• Compensation and benefits
• Employee relations
• Safety and health
• Human Resource Management

3
Staffing Model
Strategic Business Planning
Human Resource Planning
Long-range planning
Strategic Planning
Environmental Scanning
Human Resource Planning
Middle-range planning
Operational Planning
Forecasting
Short-range planning
Projected Staffing Requirements
Goals and Objectives
Recruitment Planning
Recruitment
Applicant Search
Preliminary Screening
Selection
Selection Decision
Placement
4
Typical Steps in the Selection Process
Placement on the job
Selection decision
Final interview
Drug testing
Reference checks
Employment testing
Interviews
Application blanks
Preliminary screening
Reject applicant
5
Forecasting Employment Needs

• Budgeting
• Work-load Analysis
• Unit Demand
• Expert Opinion
• Trend Predictions

6
Example of Predicting Labor Supply and Required
New Hires for a Hotel Chain
7
Solving the Surplus Personnel Problem

• Layoffs
• Attrition
• Reduced Hours/Job Sharing
• Unpaid Vacations
• Early Retirements

8
High Performance Work Practices Financial
Performance

• Sample 968 U.S. firms with 100 or more employees
• Financial Data 10-K reports with the SEC
• High Performance Work Practices What proportion
  of the workforce participates in
• Formal information sharing program
• Formal job analysis
• Hiring from within
• Employee attitude surveys
• Quality of Work Life Programs
• Company incentive, profit-sharing, or
  gain-sharing plans
• Formal grievance and complaint procedures
• Pre-employment testing
• Performance appraisals are used to determine
  promotion
• Formal performance appraisals
• Promotion by seniority or performance
• Selection ratio for hiring
• What is the average number of hours of training
  received per employee per year?

9
High Performance Work Practices - Results

• A one standard deviation increase from the mean
  in high performance work practices is associated
  with
• 7.05 decrease in turnover
• 27,044 increase in sales annually per employee
• 18,641 increase in market value annually per
  employee
• 3,814 increase in profits annually per employee

Source Mark A. Huselid, The Impact of Human
Resource Management Practices on Turnover,
Productivity, and Corporate Financial
Performance. Academy of Management Journal, vol
38 (1995) 635-672