Week 1 Exam 2 Flashcards
Human Resource Planning
identifying the number and the types of employees that an organization will need to meet its objectives
HRP Goal
Have the right talent in the right place at the right time capable of effectively and efficiently completing tasks for an organization’s success
HRP Questions:
Where are our strengths and weaknesses?
Who is doing a good job and who is not?
What changes can be made?
How diverse are we? What actions can we take in this area?
Forecasting Goal
Determine supply and demand to predict which areas of the organization will experience labor shortages or surpluses
Determine Labor Demand
-Trend Analysis (statistical models used to predict labor demand based on last years)
-Managerial Judgements (subjective)
Determine Labor Supply
Transitional Matrix (a chart that lists job categories held in one period and shows how many employees in each of these job categories in the future
Determine labor shortage
Labor demand > labor supply = labor shortage
Determine labor surplus
Labor demand < labor supply = labor surplus
How to deal with a labor shortage?
Technology innovation, new external hires, outsourcing, temporary workers, overtime/expanded hours
Employing temporary & contract works (PROS/CONS)
Pros: flexibility and lower costs
Cons: employees may not be as committed to the organization, tension can rise from temporary & permanent workers
Outsourcing
Contracting with another organization to perform a broad set of services
Outsourcing (PROS/CONS)
Pros: can operate efficiently and save money
Cons: quality control, greater chance for security violations and poor customer service
How to deal with a labor surplus?
Offer pay reductions, transfers, early retirement, work sharing, downsizing, demotions
Downsizing
PLANNED elimination of large numbers of personnel
Downsizing Pros & Cons
Pros: speed- immediate effect on cost
Cons: hurts long-term effectiveness- loss of talent (can eliminate irreplaceable people) and hurt current employee’s motivation
Recruiting
any practice carried on by the organization with the purpose of identifying and attracting potential employees
Recruiting Goal
to provide information that will attract qualified candidates and discourage unqualified ones from applying
Direct Applicants Pros
Those who apply are already sold on the organization
Referrals Pros
Simplifies the recruitment process and is less expensive
Internal Recruiting Pros/Cons
Pros: applicants are well known to the organization, cheaper and faster, minimizes employees unrealistic job expectations
Cons: can create a workforce whose members all think the same and nepotism
External Recruiting Pros
spurs innovation and creativity, organizations can gain a competitive edge by hiring the best talent
Lead-the-market Pay Strategies
Pay more than the current market wages for a job
Employment-at-will Policies
If there is no specific employment contract saying otherwise then an employee/employer may end an employment relationship at any time
Cost per hire by source
total amount of money spent to fill a job vacancy
Yield ratio
the percentage of applicants from a recruitment source that make it to the next stage of the selection process
Employee Selection
the process through which organizations make decisions about who will or will not be invited to join the organization
Hiring Freeze
Putting a pause on hiring
Natural Attrition
Employees that leave on their own
Personnel Policies
an organizations decisions about how to carry out HRM
Social Security Act of 1935
requires everyone seeking unemployment benefits to register through a local state department in search for work oppurtunities
