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Dessler, Cole, Goodman, and Sutherland

In-Class Edition
Management of Human Resources
Canadian Edition

Chapter Four

Human Resources
Planning and

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The Strategic Role of Human
Resources Planning

HR Planning
review human resources requirements to
the necessary number of employees
the necessary employee skills
to meet organizational goals

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The Strategic Role of Human
Resources Planning

Importance of HR Planning

-plan staffing and development activities

achieve economies in hiring
anticipate and avoid staff shortages/surpluses
establish employment equity goals/timetables

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The Strategic Role of Human
Resources Planning

HR Planning Strategic Planning

reciprocal and interdependent relationship

environmental scanning critical for both

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The HR Planning Process

3. Balance Supply and Demand

2. Forecast Future Internal/External Candidates


1. Forecast Future HR Needs (Demand)

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Forecasting Future HR Demand

Forecasting based on:

quality and nature of employees
decisions regarding product quality
plans for technological change
financial resources

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Forecasting Future HR Demand

Quantitative Approaches

Trend analysis: review past employment levels

Ratio analysis: ratio of business activity/employees
Scatter plot: graph of business activity/employees
(regression or forecasting software can enhance
the scatter plot)

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Forecasting Future HR Demand

Qualitative Approaches
1. Nominal Group Technique
experts meet face-to-face
group discussion facilitates exchange of ideas
possible subjectivity, group pressure
2. Delphi Technique
experts work independently
wide range of views
difficult to integrate diverse opinions
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Forecasting Future HR Supply
(Internal Candidates)

Skills Inventories
manual or computerized records
used to identify internal candidates for transfer
or promotion
summary of each employees:
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Forecasting Future HR Supply

Replacement Charts

visual representations of likely internal

replacement employees for each position
data on each candidate includes:
present performance rating
promotability status

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Forecasting Future HR Supply

Succession Planning

plans to fill key executive positions

maintains a supply of successors for current
and future jobs
balances organization's needs for top
managers with the potential and aspiration of
internal candidates
support individual career development

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Forecasting Future HR Supply
(External Candidates)

general economic conditions

national labour market conditions
local labour market conditions
occupational market conditions

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Balancing Supply and Demand

Dealing with a Labour Surplus

hiring freeze
buy-out and early retirement programs
reducing hours (job sharing, reduced
workweek, part-time work, work sharing)
termination with outplacement assistance

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Balancing Supply and Demand

Dealing with a Labour Shortage

hiring temporary employees
subcontracting work
external recruitment

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process of managing a labour shortage by

searching for job candidates:
adequate number
from whom to select staff needed to meet
job requirements

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Purposes of Recruitment
generate adequate pool of candidates at
minimum cost
increase success rate of selection process
achieve employment equity goals
attract qualified candidates suited to
organizational culture

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The Recruitment Process

Generate pool of qualified candidates

Select methods of recruitment

Specify job requirements

Identifying job openings

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Constraints on the Recruitment

organizational policies and plans

job specifications
inducements of competitors
environmental factors

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Recruiting Within the Organization


enhanced morale if competence is rewarded

more commitment to company goals
longer-term perspective on business decisions
more accurate assessment of candidates skills
less orientation required

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Recruiting Within the Organization


discontent of unsuccessful candidates

time consuming to post and interview all
candidates if one is already preferred
employee dissatisfaction with insider as new
possibility of inbreeding
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Recruiting Within the Organization


Job Skills
Posting Inventories

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Recruiting Outside the Organization


larger, more diverse pool of qualified candidates

acquisition of new skills and knowledge for
creative problem solving
elimination of rivalry for transfers/promotions
cost savings from hiring skilled individuals with
no need for training

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Recruiting Outside the Organization

Yield Pyramid

50 New hires

100 Offers made (2:1)

150 Candidates interviewed (3:2)

200 Candidates invited (4:3)

Leads generated (6:1)
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Recruiting Outside the Organization


online recruiting
print advertising
private employment agencies
executive search firms
educational institutions
other (walk-ins, employee referrals, HRDC etc)

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Recruiting Outside the Organization

Non-Permanent Staff

temporary help agencies

contract workers
employee leasing

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Recruiting Outside the Organization

Online Recruiting

Three approaches:
1. Internet job boards
2. Company Website and intranet
3. Application Service Provider software rental

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Recruiting Outside the Organization


media to be used depends on:

type of position
type of candidate
construction of the ad:
AIDA (attention; interest; desire; action)
want ads vs. blind ads

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Recruiting Outside the Organization

Use of Private Employment Agency

no HR department
past difficulty in generating pool of qualified
position must be filled quickly
desire to recruit designated group members

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Recruiting Outside the Organization

Executive Search Firms

often specialize in particular type of talent

adept at approaching employed candidates
not currently looking for a job

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Recruiting a More Diverse

older workers
younger workers
designated group members:
visible minorities
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