A4 - HR Planning and Recruitment Flashcards
- set of procedures for making decisions about the org’s L/T goals and strats.
- have a strong external orientation that covers major portions of the org.
- how will org position itself relative to its competitors in order to ensure its L/T survival, create value, and grow
strategic planning
- process of anticipating and providing for the movement of ppl into, w/in and out of an org.
- contrast to strat. planning
- help mgrs deploy HRs as effectively as possible, where and when they are needed, to accomplish the org’s goals
human resources planning (HRP)
- pattern of HRs deployments and activities that enable an org to achieve its start. goals
- combo of strat planning and HRP
strategic human resources mgmt (SHRM)
linking HRP to strat. planning
- HRP provides a set of inputs into the strategy formulation process in terms of what is possible, that is, whether a firm has the types and #s of ppl available to pursue a given strat.
- strategy implementation - exec’s then must make resource allocation decisions to implement that strat., including decisions related to firm’s structure, processes and human cap.
(6) steps of strategic planning
- Mission, Vision, and Values
- Environmental Analysis
- Internal Analysis
- Formulating Strategy
- Strategy Implementation
- Evaluation and Assessment
- basic purpose of the org. as well as its scope of ops
- stmt of the org’s reason for existing
- written in terms of general clients and services
- may be broad or narrow
mission
- stmt about where the company is going and what it can become in the future
- clarifies the L/T direction of the company and its strategc intent
strategic vision
- strong and enduring beliefs and principles that the company uses as a foundation for its decisions
- essence of its corp. culture and an expression of its personality
- underlying parameters for out a company intends to act towards its customers, EEs, and the public in general
core values
- driven by the mission, vision, and values
- chgs in environ. that may represent both opps. and threats for company
environmental analysis
- systematic monitoring of the major external forces influencing the org.
environmental scanning
(6) most frequently used factors
for environmental scanning
- econ. factors and development info. - general, regional, and global conditions
- industry and competitive trends - new processes, services, and innovations
- tech. changes - info tech, innovations, and automation
- gov’t and legislative issues - laws and admin. rulings
- social concerns - child care, elder care, the environ. and educ. priorities
- demographic and labor mkt trends - age, composition, and literacy of labor mkt and immigration
Competitive Environment
- includes specific orgs. w/ which the firm interacts
- firms need to analyze this in order to adapt to or influence the nature of competition
(5) forces affecting the
competitive environ.
- customers
- rival firms
- new entrants
- substitutes
- suppliers
Customers
- one of the forces affecting the competitive environ.
- one of the most important assessments a firm can make is ID’g the needs of cust’s.
- fundamental level - create cust. value
- this influences the kind of skills and behaviors needed from EEs
Rival Firms
- one of the forces affecting the competitive environ.
- examining the nature of competition
- 1st question - “Who?”
New Entrants
- one of the forces affecting the competitive environ.
- to protect their positions, companies tend to create entry barriers to keep new firms out of their industries
- new entrants can chg the “rules of the game” for an industry
Substitution
- one of the forces affecting the competitive environ.
- biggest opp or threat in an industry doesn’t come from direct competition but from substitution
Suppliers
- one of the forces affecting the competitive environ.
- orgs. rarely can create everyting on its own, but instead rely on suppliers that can provide them w/ key inputs (such as raw materials for prod., $$, info, and ppl)
- ppl or labor - key part of strat. planning and HRP
External Analysis combined with Internal Analysis
SWOT Analysis
Internal Analysis
(Step 3)
- analyzing internal strengths and weaknesses
- this will provide strat. decision makers w/ an inventory of org. skills and resources as well as their perf. levels
- focuses on the (3) C’s: Capabilities, Composition, and Culture
- component of Internal Analysis
- integrated knowledge sets (bundles of ppl, processes, and systems) w/in an org. that distinguish it from its competitors and deliver value to customers
- limited in #, but provide a L/T basis for tech. innovation, prod. development, and service delivery
- People - usually key resource
core Capabilities
Companies can sustain competitive adv. through ppl if the following (4) criteria is met:
Resources:
- must be valuable
- must be rare
- must be difficult to imitate
- must be organized
- component of Internal Analysis
- Human Capital Architecture
- mgrs need to decide whether ppl are available, internally or externally, to execute an org’s strat.
- weigh costs and benefits of outsourcing or not
Composition of the workforce
- component of Internal Analysis
- source of competitive advantage
- need to understand that their EEs are critical to org’s success
- must examine EEs values, attitudes, beliefs, and expectations (VABEs)
- leaders that focus on EEs’ VABEs, are more effective than those who simply focus on workers’ behaviors or though processes
corporate Culture
Step Three: Internal Analysis
Human Capital Architecture
(4) typical types of EE segments
- Strat. Knowledge Workers
- Core EEs
- Supporting Workers
- Partners/Complementary Skills
- EEs who have unique skills that are directly linked to the company’s strat.
- difficult to replace
- given considerable autonomy and discretion to perform job
- companies make L/T commitments
Strat Knowledge Workers
- EEs hired to perform a predefined job but are not unique or difficult to replace.
- mgrs’ commitment to them is S/T
Core EEs
- EEs that have skills that are less central to creating cust. value and are generally available to all firms
- little commitment to company
- scope of duties is limited
- relationship w/ company is ‘transaction-based’ - focused on rules and procedures w/ less inv. in development
supporting workers
- EEs have skills that are unique and specialized, but NOT directly related to a company’s core strat. and are not readily available to all firms
- usually establ. L/T alliances an dpartnerships w/ indiv.
- ongoing relationship focused on mutual learning
Partners/Complementary Skills
- audits of the culture and quality of work life in an org.
- can consist of surveys and interviews to measure how EEs feel on a # of critical issues
cultural audits
- process of outlining the behaviors that exemplify a firm’s corp. culture and then hiring ppl who are a fit for them
- knowing that comp’s corp. cuture is a source of competitive adv.
values-based hiring
Forecasting
- mgrs must continually forecast both the needs and the capabilities of the firm for the future in order to do an effective job at strat. planning
- mgrs should focus on at least 3 key elements:
- demand for labor
- supply of labor
- balancing supply and demand considerations
Forecasting Firm’s Demand for EEs
- key: predicting the # and types of ppl an org. needs to meet its objs.
- factors that affect this: competitive strat, tech, struct, and productivity and business cycles
- should not be ignored - even in small businesses
- should include both qualitative and quanitative forecasting approaches
(2) approaches to HR forecasting
- quantitative
- qualitative
- approach to HR forecasting
- involves the use of statistical or mathematical techniques (such as trend analysis and modeling/multiple predictive techniques)
quantitative approach to HR forecasting
- a quantitative approach to forecasting labor demand based on an organizational index such as sales
- one of the most common approaches for projecting HR demand
trend analysis
stages of trend analysis
- select an appropriate business factor - s/b the best available predictor of HR needs
- plot a historical trend of the bus. factor in relation to the # of EEs - this will provide labor prod. ratio
- compute the producitvity ratio for as least the past 5 years
- calc. HRs demand by multiplying the bus. factor by the productivity ratio
- project the firm’s HRs demand out to the target year
- approach to HR forecasting
- less statistical (more of an art)
- use of mgmt forecasts judgments made by supers, dept mgrs, experts or other knowledgeable about the org’s future employment needs
- also - Delphi technique
qualitative approach to HR forecasting
- type of qualitative forecasting
- the opinions (judgments) of supers, dept mgrs, experts, or others knowledgeable about the org’s future employment needs
management forecasts
- type of qualitative forecasting
- attempts to decrease the subjectivity of forecasts by soliciting and summarizing the judgments of a preselected group of indivs.
- results in a collective, or group, judgment
Delphi technique
Forecasting the Supply of EEs
- forecasting whether sufficient #s and types of EEs are available to staff the openings it anticipates having
- involves both tracking current EE levels and making future projections about those levels
- an internal supply analysis
- graphic reps of all org. jobs along w/ the #s of EEs currently occupying those jobs and future employment requirements
staffing tables
- an internal supply analysis
- method for tracking the pattern of EE movements through various jobs
- shows % of EEs who remain in each of a firm’s jobs from 1 yr to the next as well as the proportions of those who are promoted, demoted, or transferred or who exit the org.
Markov analysis
- metrix designed to measure how well new hires that fill positions are performing on the job
- developed b/c mgrs understand that simply having “bodies” in place is not enough
quality-of-fill metric
- prepared by EEs other than mgrs
- measurement focused more on types of EEs
- files of personnel educ., experience, interests, skills, and so on that allow mgrs to quickly match job openings w/ EE backgrounds
- must be confidential
skill inventories
- listings of current jobholders and ppl who are potential replacements if an opening occurs
- used side-by-side with succession planning
replacement charts
- process of ID’g, developing, and tracking key indiv. for exec. positions
succession planning
analyzing to see if there is any difference b/w the quantity and quality of EEs required versus the quantity and the quality of EEs available
gap analysis
- process of evaluating the availability of critical talent in a company and comparing it to the firm’s supply
human capital readiness
- The comparison of strengths, weaknesses, opporunities and threats for strat. formulation purposes
- Step 4 of strat planning process
- helps execs. summarize the major facts and forecasts from external and internal analysis
- use strengths of org. to capitalize on opps, counteract threats, and alleviate internal weaknesses
SWOT analysis
Step Four: formulating strat.
(3)
- Corporate Strat.
- Business Strat
- Functional Strat.: Ensuring Alignment
Corporate Strat
(formulation of strat)
domain selection - whereby an org. IDs and selects the mkts in which it will compete
- growth and diversification
- mergers and acquisitions
- strat. alliances and joint ventures
Business Strat
(formulation of strat)
domain navigation - how will bus. compete against rival firms in order to create value for cust.
- Low-Cost Strat.: Compete on Productivity and Efficiency
- Differentiation Strat: Compete on Unique Value Added
- what the firm adds to a prod. or serv. by virtue of making it
- the amt of benefits provided by the prod. or serv. once the costs of making it are subtracted
value creation
Value = benefits - costs
Low-Cost Strat - keeping costs low enough so that you can offer an attractive price to custs. relative to your competition
(Business Strat)
- focus on: efficiency, productivity, and minimizing waste
- companies are often large
- try to take advantage of economies of scale in the prod. and distrib. of goods/servs. so they can sell them at lower prices = higher mkt shares, volumes, and profits
- does not mean that you have to cut labor costs - usually ends up meaning you pay top-$ for top-productivity EEs
linking low-cost strat to HR
- Productivity: produce more from the workforce they have or they can produce the same amt w/ smaller workforce?
- Outsourcing: contracting w/ an external partner that can perform particular serv. equally well (or better) at a lower cost
Differentiation Strat: Compete on Unique Value Added
- delivering a high-quality prod., innovative features, speed to mkt, or superior service
- these companies will bend the rules - customize prods/servs around a cust’s particular need to let the customer “have it their way”
Functional Strat (formulation of strat)
- Ensuring Internal Alignment
- Vertical FIt - focusing on the connection b/w bus. objs. and the major initiatives in HR
- “Translate” strat. priorities in to functional areas of the org. (such as mktg, manufacturing, HR)
- needs to be clear internal alignment b/w HR and the requirements of an org’s strat.
HR policies and practices need to achieve 2 types of fit:
- vertical fit/alignment
- horizontal fit/alignment
**company could be completely aligned with its HR practices (horizontal alignment), but not be aligned w/ competitive strat (vertical alignment) - that is the reason that both need to be evaluated
- this type of functional alignment focuses on the connection b/w the bus’s objs. and the major initiatives undertaken by HR
- whatever the Strategy is, HR policies and procedures need to reinforce it
Vertical Fit/Alignment
- this type of functional alignment needs to ensure that HR practices are all aligned w/ one another internally to establish a configuration that is mutually reinforcing
- focuses on “we”/teamwork, instead of “me”
- entire range of the firm’s HR practicies (from job design, staffing, and training to compensation) needs to focus on the same objs.
Horizontal Fit/Alignment
Step Five: Strategic Implementation
- establishing the proper balance b/w supply-and-demand considerations
- HRM is instrumental to almost every aspect of strategic implementation - org’s structure, systems, style, skills, staff or shared values
The 7-S model/framework
- HARD Ss:
- strat.
- structure
- systems
- SOFT Ss:
- style
- skills
- staff
- shared values
HARD Ss
The 7-S model/framework
- Strat - lays out the route that the org will take in the future
- Structure - framework in which the activities of the org. members are coordinated
- Systems - include formal and informal proc. that govern the everyday activities of a firm
SOFT Ss
The 7-S model/framework
- Shared Values - guiding parameter for strat. planning
- Style - leadership approach of top mgrs and the way in which EEs present themselves to the outside world
- Skills and Staff - most basic level, strat. implementation process is to reconcile (1) HRs demanded and (2) HRs available
Step Six: Evaluation and Assessment
- measuring a firm’s strat. alignment and ensuring strat. flexibility for the future
- assessing the firm’s effectiveness
- both a final and a beginning step in the strategic planning process
- provides firms w/ inputs they need for the next cycle in the planning process
- need to establish set of “desired” outcomes and metrics they will use to monitor how well their orgs. delivered against those outcomes and also compare against other firms.
- the process of comparing the org’s processes and practices w/ those of other companies
- ID “best practices” in a given area to compare to other companies
benchmarking
benchmarking process
- team will collect metrics on its own company’s perf. and those of other firms to uncover any gaps
- gaps help determine the causes of perf. differences
- team will map out a set of best practices that lead to world-class perf.
**target company doesn’t need to be a competitor - get access to info that competitor’s wouldn’t normally disclose.
HR and Evaluation/Assessment of Strat. Plan
- human cap. metrics - assess aspects of the workforce
- HR metrics - assess the perf. of the HR function itself
- a tool that can be used for mapping a firm’s strat. alignment
- measurement framework that helps mgrs translate strat. goals into operational objs.
- logic is firmly rooted in HRM
Balanced Scorecard (BSC)
(4) cells of the Balanced Scorecard (BSC)
- financial
- customer
- processes
- learning
**ppl mgmt and learning help orgs improve their internal processes and provide excellent customer service.
Measuring Horizontal Fit/Alignment
- mgrs need to ID the key workforce objs. they hope to achieve
- mgrs would ID each of the HR practices used to elicit or reinforce those workforce objs.
- mgrs would evaluate each HR practice on a scale of -5 (not supportive) to 5 (supportive)
the capacity of the org. to act and change in persuit of sustainable competitive advantage
organizational capability
(2) ways to achieve flexibility
- coordination flexibility
- resource flexibility
- a way to achieve flexibility
- ability to rapidly reallocate resources to new or changing needs
- mgrs can anticipate upcoming events, keep abreast of chgs in legal regs, forecast econo. trends, recognize competitor moves
coordination flexibility
- a way to achieve flexibility
- having resources that can be used different ways and ppl who can perform different functions in different ways
- such as cross-training, job rotations, team-based work modes focusing on establishing a flexible workforce
resource flexibility
a profile of a worker developed by studying an org’s top performers in order to recruit similar types of ppl.
EE profile
broad factors that can affect firm’s recruiting strat.
- firm’s recruiting abilities (Who will recruit)
- whether to recruit internally or externally
- labor mkt for the types of positions it is recruiting for
- strength of a firm’s employment ‘brand’
Who should do the Recruiting?
- size affects this decision - lg (inhouse) and sm (outsourced) or by mgrs/supers if no HR function
- should have good understanding of the knowledge, skills, experiences, and other characteristics required for the job
- for org’s that want to focus on their core functions and lack time or HR personnel
- practice of outsourcing an org’s recruiting function to an outside firm
- may be also used if need to recruit in large #s and quickly or having trouble finding the type of recruit they are looking for
recruiting process outsourcing (RPO)
Recruit internally or externally??
- INTERNALLY: rewards current EEs; motivates current EEs; no costs of recruiting and then training new EE; limitations can come from specialized jobs that can’t be completed by just any EE
- EXTERNALLY: brings in new ideas and latest knowledge acquired from previous ERs; bring in new revenue opportunities; diversity goals
Labor Mkt for the position
- internal labor mkt vs global labor mkt
- labor mkt depends on the industry
- difference in mkt in times of high UnN
labor mkts in which workers are hired into entry level jobs and higher levels are filled from w/in
internal labor mkt
the business practice of searching for and utilizing goods sources from around the world
global sourcing
- company’s efforts to help existing and prospective workers understand why it is a desirable place work
branding
How do companies ‘brand’?
- think of applicants as consumers and focus on what they want in terms of jobs and careers
- social networking
- writing blogs and articles for industry publications
- philanthropic activities
Recruiting Internally
- readily available, get up to speed faster, less uncertainty about how they will perform, no costly ads
- internal job postings
- ID’g talent through perf. appraisals
- skills inventories and replacement charts
a comparative diagram that includes appraisal and assessment data to allow mgrs to easily see an EE’s actual and potential perf.
9-box grid
Recruiting Externally
- ads
- walk-ins and unsolicited apps
- Internet, social networking, and mobile recruiting
- job fairs
- EEs referrals
- rerecruiting
- exec. search firms
- educational instit.
- prof. associations
- labor unions
- public and private employment agencies
- EE leasing
ppl who are not looking for jobs, but could be persuaded to take new ones given the right opportunity
passive job seekers
a preference for hiring relatives of current EEs
nepotism
process of keeping track of and maintaining relationships w/ former EEs to see if they would be willing to return to the firm
rerecruiting
process of dismissing EEs who are then hired by a leasing company (which handles all HR-related activities) and contracting w/ that company to lease back the EEs
EE leasing
Improving the Effectiveness of Recruiting
- How well is company doing when it comes to recruiting?
- Types:
- realistic job previews
- surveys
- recruting metrics
informing apps. about all aspects of the job, including both its desirable and undesirable facets
realistic job preview (RJP)
Types of Recruiting Metrics
- quality of fill statistics
- time-to-fill
- yield ratios
- costs of recruitment
Quality-of-Fill Statistics
type of recruiting metrics
- annual calc.
- *qual. of hire = (PR+HP+HR)/N**
- PR = avg. job perf. rating of new hires
- HP = % of new hires reaching acceptable productivity w/ acceptable time frame
- HR = % of new hires retained after 1 yr
- N = # of indicators
- type of recruiting metrics
- # of days from when a job opening is approved to the date the person ultimately chosen for the job is selected (lower stats is better unless quality isn’t good)
Time-to-Fill metric
- type of recruiting metrics
- %age of apps from a recruitment source that make it to the next stage of the selection process
Yield Ratios
Costs of Recruitment
type of recruiting metrics
SC/H = avg source cost per hire
= (AC+AF+RB+NC) / H
- AC = ad costs, total monthly expenditure
- AF = agency fees, total for the month
- RB = referral bonuses, total paid
- NC = no-cost hires, walk-ins, nonprofit agencies, etc…
- H = total hires
when combined with other info, can provide mgrs with invaluable info about the utility of different approaches to and sources of recruitment
a software application recruiters use to post job openings, screen resumes, and contact via email potential candidates for interviews, track the time and costs related to hring ppl
applicant tracking systems (ATS)
