What is HRM?

Human Resources Management (HRM) is the process of managing an organization's

workforce, including recruiting, hiring, training, developing, and retaining employees. It
focuses on maximizing employee performance to achieve the organization's goals while
ensuring a positive work environment.

Functions of Human Resources Management (HRM):

HRM involves several key functions that help organizations manage their workforce
effectively. Here’s a simplified breakdown of the main functions:

1. Recruitment

What it is: The process of finding and hiring the right people for the right jobs.

Key Steps:

Job Analysis: Understanding the job requirements.

Job Posting: Advertising the job opening.

Screening: Reviewing resumes and applications.

Interviewing: Conducting interviews to assess candidates.

Selection: Choosing the best candidate for the job.

Why it’s important: Ensures the organization has the talent it needs to achieve its goals.

2. Training

What it is: Providing employees with the skills and knowledge they need to perform
their jobs effectively.

Types of Training:

On-the-Job Training: Learning while working.

Off-the-Job Training: Attending workshops, seminars, or courses.

E-Learning: Online training programs.

Why it’s important: Improves employee performance, productivity, and job satisfaction.

3. Performance Appraisal

What it is: Evaluating employee performance to identify strengths and areas for
improvement.

Methods:

360-Degree Feedback: Feedback from peers, supervisors, and subordinates.

Self-Assessment: Employees evaluate their own performance.

Managerial Assessment: Supervisors evaluate employee performance.

Why it’s important: Helps in recognizing good performance, providing feedback, and
planning career development.

4. Compensation Management

What it is: Ensuring employees are paid fairly and competitively.

Components:

Salary/Wages: Base pay for the job.

Benefits: Health insurance, retirement plans, etc.

Incentives: Bonuses, profit-sharing, etc.

Why it’s important: Attracts and retains talented employees, motivates performance,
and ensures fairness.

5. Health and Safety

What it is: Ensuring a safe and healthy work environment for employees.

Key Activities:
Risk Assessment: Identifying potential hazards in the workplace.

Safety Training: Educating employees on safety practices.

Health Programs: Providing wellness programs and health check-ups.

Compliance: Following health and safety regulations.

Why it’s important: Protects employees from workplace injuries and illnesses, reduces
absenteeism, and improves overall well-being.

Summary Table:

Function What It Involves Why It’s Important

Finding and hiring the right peopleEnsures the organization has the
Recruitment
for the right jobs. talent it needs to achieve its goals.
Providing employees with the Improves performance,
Training
skills and knowledge they need. productivity, and job satisfaction.
Evaluating employee performance Recognizes good performance,
Performance
to identify strengths and areas forprovides feedback, and plans
Appraisal
improvement. career development.
Attracts and retains talented
Compensation Ensuring employees are paid fairly
employees, motivates
Management and competitively.
performance, and ensures fairness.
Protects employees, reduces
Health and Ensuring a safe and healthy work
absenteeism, and improves well-
Safety environment.
being.

Why HR is Important to All Managers in HRM

Human Resources (HR) is vital for all managers because it supports them in managing
their teams effectively and achieving organizational goals. Here’s why:

1. Talent Management: HR helps recruit, hire, and retain skilled employees,

ensuring managers have the right people for their teams.

2. Employee Development: HR provides training programs to upskill employees,

improving team performance.

3. Conflict Resolution: HR resolves workplace conflicts, allowing managers to

focus on productivity.

4. Compliance: HR ensures adherence to labor laws and regulations, reducing

legal risks for managers.
 5. Employee Engagement: HR designs programs to keep employees motivated
and satisfied, leading to higher productivity.

6. Compensation & Benefits: HR manages fair pay and benefits, helping

managers attract and retain top talent.

7. Health & Safety: HR ensures a safe work environment, reducing workplace

risks.

8. Strategic Alignment: HR aligns workforce planning with organizational goals,

helping managers achieve long-term objectives.

Line Authority vs. Staff Authority (Easy Explanation)

1. Line Authority:

 What it is: Direct authority over employees to make decisions and give orders.

 Who has it: Managers who are directly responsible for achieving organizational
goals (e.g., production manager, sales manager).

 Key Role: They "get things done" by overseeing day-to-day operations and
ensuring tasks are completed.

2. Staff Authority:

 What it is: Advisory or supportive role to assist line managers.

 Who has it: Specialists or experts (e.g., HR, legal, IT) who provide advice,
support, and expertise.

 Key Role: They "help others get things done" by offering guidance, but they
don’t directly manage employees.

Key Difference:
 Line Authority: Direct control over employees and operations.

 Staff Authority: Indirect support through advice and expertise.

Example:
 Line Authority: A sales manager directs the sales team to meet targets.
  Staff Authority: The HR department advises the sales manager on hiring or
training but doesn’t manage the sales team directly.

trends Shaping Human Resources Management (HRM)

Here are the key trends influencing HRM today, explained in simple terms:

1. Technology & Automation:

 What: Use of AI, HR software, and tools to streamline tasks like recruitment,
payroll, and performance management.

 Impact: Saves time, reduces errors, and improves efficiency.

2. Remote Work & Hybrid Models:

 What: More employees working from home or in a mix of home and office.

 Impact: HR must adapt policies for remote work, focus on virtual collaboration,
and ensure employee well-being.

3. Employee Well-being:

 What: Focus on mental health, work-life balance, and physical wellness.

 Impact: Happier, healthier employees lead to higher productivity and retention.

4. Diversity, Equity, and Inclusion (DEI):

 What: Creating a workplace that values diversity and ensures fairness for all
employees.

 Impact: Builds a more innovative and inclusive culture.

5. Data-Driven HR:
  What: Using data analytics to make decisions about hiring, performance, and
employee engagement.

 Impact: Helps HR make smarter, evidence-based decisions.

6. Upskilling & Reskilling:

 What: Training employees to learn new skills or improve existing ones.

 Impact: Keeps the workforce adaptable and ready for future challenges.

7. Gig Economy & Flexible Work:

 What: Rise of freelance, contract, and part-time work.

 Impact: HR must manage a more flexible workforce and adapt policies for non-
traditional employees.

8. Focus on Employee Experience:

 What: Creating a positive work environment from hiring to exit.

 Impact: Improves employee satisfaction, engagement, and retention.

1. Globalization and Competition Trends

 Businesses operate globally, increasing competition.

 HR must manage diverse, international teams.

2. Indebtedness (Leverage) and Deregulation

 High debt and fewer regulations affect businesses.

 HR must adapt to financial challenges and flexible policies.

3. Technological Trends

 Technology (AI, automation) changes how work is done.

 HR needs to train employees for tech-driven roles.
4. Trends in the Nature of Work

 More remote work, gig jobs, and flexible work arrangements.

 HR must manage these new work styles effectively.

5. HR as a Profit Center: Boosting Customer Service

 HR helps increase profits by improving employee performance and customer

service.
 Align HR strategies with business goals.

6. Workforce and Demographic Trends

 Aging workforce, diversity, and generational differences.

 HR must address skill gaps and promote inclusivity.

7. Economic Challenges and Trends

 Economic instability, inflation, and changing labor markets.

 HR must plan for cost-saving and efficient workforce management.

Chapter : 4 Job Analysis and the Talent

Management Process
alent Management in Human Resource Management (HRM)
Definition:
Talent management is the systematic process of identifying, attracting, developing,
retaining, and utilizing skilled employees to meet organizational goals. It ensures the
right people are in the right roles at the right time.

The Talent Management Process

1. Identify Talent Needs:
o Determine the skills, roles, and competencies required to achieve business
objectives.
2. Attract Talent:
o Use recruitment strategies (job postings, employer branding) to bring in
qualified candidates.
3. Select Talent:
 o Hire the best-fit candidates through interviews, assessments, and
evaluations.
4. Develop Talent:
o Provide training, mentoring, and career development opportunities to
enhance skills.
5. Retain Talent:
o Use engagement strategies, competitive compensation, and a positive
work culture to keep employees.
6. Evaluate and Reward Talent:
o Assess performance and reward employees through promotions, bonuses,
or recognition.
7. Succession Planning:
o Prepare for future leadership by identifying and grooming high-potential
employees.

8. * Work activities.
First, he or she collects information about the jobs actual work
activities, such as cleaning, selling, teaching, or painting. This list may
also include how, why, and when the worker performs each activity. *

9: Human behaviors.
Information about human behaviors the job requires, like sensing,
communicating, lifting weights, or walking long distances.

10.Machines, tools, equipment, and work aids. Information regarding

tools used, materials processed, knowledge dealt with or applied (such
as finance or law), and services rendered (such as counseling or
repairing).
11. * Performance standards. Information about the job s performance
standards (in terms of quantity or quality levels for each job duty, for
instance).
12. Job context. Information about such matters as physical working
conditions, work schedule, incentives, and, for instance, the number of
people with whom the employee would normally interact.
13.Human requirements. Information such as knowledge or skills
(education, training, work experience) and required personal attributes
(aptitudes, person ality, interests).

Conducting a Job Analysis

Job analysis is the process of gathering and analyzing information about a job's duties,
responsibilities, and requirements. It helps in creating job descriptions, setting
performance standards, and determining compensation.
6 Steps in Job Analysis
1. Step 1: Decide How You’ll Use the Information
o Determine the purpose (e.g., writing job descriptions or comparing jobs for
compensation).

o Choose data collection methods accordingly (e.g., interviews,

questionnaires).

2. Step 2: Review Relevant Background Information

o Use organization charts to understand the job’s position in the company
and reporting lines.

o Use process charts to visualize workflow, inputs, and outputs for the job.

o Refer to existing job descriptions (if available) as a starting point.

o Step 3: Select Representative Positions

o Focus on key positions instead of analyzing every job.

o Example: Analyze 10 out of 200 assembly worker jobs to save time and
effort.

o Step 4: Analyze the Job by Collecting Data

o Gather information on:

o Job activities (tasks and responsibilities).

o Working conditions (environment, tools, and equipment).

o Human traits and abilities (skills, knowledge, and qualifications

needed).

o Process:

o Greet participants and explain the job analysis process.

o Spend 15 minutes interviewing employees to agree on a job summary.

o Identify broad areas of responsibility (e.g., "calling on potential

clients").

o Break down duties/tasks within each area with employee input.

 o

Steps in Job Analysis (Continued)

5. Step 5: Verify the Job Analysis Information
o Share the collected data with:
 The worker performing the job.

 Their immediate supervisor.

o Purpose:
 Ensure the information is accurate and complete.

 Gain acceptance and agreement from both parties.

6. Step 6: Develop a Job Description and Job Specification

o Job Description:
 Lists the job’s activities, responsibilities, and key features (e.g.,
working conditions).

o Job Specification:
 Summarizes the personal qualities, traits, skills, and
background needed to perform the job.

Before conducting a job analysis, follow these key guidelines:

1. Collaborate with Key Stakeholders:

o Involve the HR manager, worker, and supervisor in the process.

o HR manager observes the job, while the worker and supervisor fill out job
questionnaires.

o HR lists job duties and required traits, which are then reviewed and
verified by the supervisor and worker.

2. Ensure Clarity:
o Make sure the questions and process are clear to employees.

o Avoid jargon or unclear terms (e.g., "mental demands").

3. Use Multiple Methods:

o Combine at least three methods for collecting job analysis information:
 Interviews

 Questionnaires
  Observation

o Avoid relying on just one method (e.g., questionnaires alone may miss
occasional tasks).

4. Use Multiple Tools:

o Supplement one tool with another (e.g., follow up a questionnaire with a
short interview).

o Each tool has limitations, so using multiple tools ensures a more accurate
and complete analysis.

Methods for Collecting Job Analysis Information

There are several methods to collect job analysis data. Choose the method that best fits your
purpose:

 Interviews for creating job descriptions.

 Quantitative tools (e.g., Position Analysis Questionnaire) for comparing jobs for pay
purposes.

1. The Interview Method

Interviews can be unstructured (e.g., "Tell me about your job") or structured (with specific
questions).

Types of Interviews:

 Individual Interviews: One-on-one with employees.

 Group Interviews: With employees who have similar jobs (cost-effective).

 Supervisor Interviews: With supervisors who know the job well.

Typical Interview Questions:

 What are the major duties of your job?

 What education, skills, or experience are required?

 What are the physical, emotional, and mental demands?

  What are the working conditions and potential hazards?

Structured Interviews:

 Use a structured format (e.g., job analysis information sheet) to ensure consistency.

 Include questions about job purpose, duties, responsibilities, and required qualifications.

Pros of Interviews:

 Simple and quick way to gather detailed information.

 Can uncover informal or occasional tasks not listed in written forms.

 Allows employees to express frustrations or concerns.

Cons of Interviews:

 Risk of distorted information (e.g., employees may exaggerate responsibilities to appear

more important).

 Employees may view it as an evaluation, leading to biased responses.

Interview Guidelines:

 Build rapport with the interviewee.

 Use a structured guide with pre-planned questions.

 Ask open-ended questions like, "Was there anything we didn’t cover?"

2. Questionnaires

 Employees fill out forms to describe their job duties and responsibilities.

Types of Questionnaires:

 Structured Checklists:
o Employees check off specific tasks they perform (e.g., "change and splice wire")
and indicate time spent on each.

 Open-Ended Questions:
o Employees describe major duties in their own words (e.g., "Describe the main
duties of your job").
  Mixed Format:
o Combines structured and open-ended questions (e.g., "What is the job’s overall
purpose?").

Pros of Questionnaires:

 Quick and efficient for gathering data from many employees.

 Cost-effective compared to interviews.

Cons of Questionnaires:

 Developing and testing the questionnaire can be time-consuming.

 Employees may provide inaccurate or exaggerated responses.

3. Observation

 Directly observing employees while they perform their jobs.

When to Use Observation:

 Best for jobs with physical activities (e.g., assembly-line workers, accounting clerks).

 Not suitable for jobs with mental activities (e.g., lawyers, engineers) or rare tasks (e.g.,
nurses handling emergencies).

Challenges of Observation:

 Reactivity: Employees may change their behavior when being observed.

Best Practices:

 Combine observation with interviews to clarify unclear tasks.

 Observe a complete work cycle (time taken to finish a job) and note all activities.

4. Participant Diary/Logs

 Employees record their daily activities and time spent on each task.

How It Works:
  Employees log tasks throughout the day or use tools like pocket dictating
machines and pagers to record activities at random times.

Advantages:

 Reduces reliance on memory by capturing tasks in real-time.

Writing Job Descriptions

A job description is a written statement of what a job entails, including duties, responsibilities,
working conditions, and how the job is performed. It is used to create a job specification, which
lists the skills, knowledge, and abilities required for the job.

Key Sections of a Job Description:

1. Job Identification:
o Job Title: Name of the position (e.g., "Supervisor of Data Processing
Operations").

o FLSA Status: Indicates if the job is exempt or nonexempt under the Fair Labor
Standards Act (exempt jobs are not eligible for overtime pay).

o Date: When the job description was approved.

o Approval: Who approved the description.

o Location: Facility, division, or department where the job is based.

o Supervisor’s Title: Immediate supervisor for the role.

o Salary/Pay Scale: Compensation details.

o Grade/Level: Job classification (e.g., "Programmer II").

2. Job Summary:
o A brief overview of the job’s purpose and primary objectives.

3. Responsibilities and Duties:

o Detailed list of tasks and responsibilities the employee is expected to perform.

4. Authority of Incumbent:
o Describes the decision-making power and authority the employee has.
 5. Standards of Performance:
o Outlines expectations for job performance and metrics for evaluation.

6. Working Conditions:
o Describes the physical environment, hours, and any potential hazards.

7. Job Specification:
o Lists the qualifications, skills, knowledge, and abilities required to perform the
job.

2. Responsibilities and Duties

 This is the core of the job description.

 Lists the job’s major duties and responsibilities in detail.

 Example:
o "Achieve quantitative sales goals."

o "Determine sales priorities."

o "Maintain favorable purchase price variances."

o "Repair production-line tools and equipment."

Authority Limits:

 Defines the jobholder’s decision-making power.

 Examples:
o Approve purchase requests up to $5,000.

o Grant time off or leaves of absence.

o Discipline employees.

o Recommend salary increases.

o Interview and hire new employees.

5 Personnel Planning and Recruiting

Workforce Planning and Forecasting

What is Workforce Planning?

 Workforce planning (or employment/personnel planning) is the process of:

1. Identifying future job openings.

2. Deciding how to fill those positions.

 It covers all roles, from entry-level to executive positions.

 For executive roles, it’s often called succession planning.

Why is Workforce Planning Important?

 Ensures the organization hires the right people at the right time.

 Aligns hiring with the company’s strategic goals (e.g., expansion, cost reduction).

 Helps prepare for future challenges like economic changes or industry trends.

Workforce Planning and Strategy

 Workforce planning should reflect the company’s strategic plans.

o Example: If a company plans to expand internationally, it must plan to hire for its
international division.

 Short-term factors (e.g., recessions, consumer spending) are hard to control, but long-
term strategy guides hiring decisions.

Workforce Forecasting Methods

1. Trend Analysis
  What it is: Studying changes in the company’s employment levels over the past few
years.

 Purpose: Identify trends to predict future staffing needs.

 Example: Analyzing the number of employees in each department (e.g., sales,

production) over the last 5 years.

 Limitations:
o Employment levels depend on factors like sales volume and productivity, not
just time.

o Must also consider demographics (e.g., retirements, resignations).

2. Ratio Analysis

 What it is: Forecasting staffing needs based on historical ratios between a causal
factor (e.g., sales) and number of employees.

 Example:
o If one salesperson
generates 500,000insales,andsalesareexpectedtoincreaseby500,000in
sales,andsalesareexpectedtoincreaseby3 million, you’ll
need 6 new salespeople.

 Limitations:
o Assumes productivity remains constant.

o If productivity changes (e.g., salespeople generate more revenue), the ratio

becomes inaccurate.

3. Scatter Plot

 What it is: A graphical tool to show the relationship between two variables (e.g., sales
and staffing levels).

 Purpose: Forecast staffing needs based on business activity (e.g., hospital size and
number of nurses).

 Example:
o A hospital plans to expand from 500 to 1,200 beds.
 o By plotting data from other hospitals, it can estimate the number of nurses needed
based on bed size.

markov Analysis (Transition Analysis)

What is Markov Analysis?

 A mathematical method used to forecast the availability of internal job candidates.

 It predicts how employees will move (transition) between positions over time.

How It Works:

1. Create a Transition Matrix:

o A table that shows the probability of employees moving from one position to
another (e.g., junior engineer → engineer → senior engineer).

2. Feeder Positions:
o Identify the chain of roles leading to a key position (e.g., junior engineer →
director).

3. Probabilities:
o Calculate the likelihood of employees staying, moving up, or leaving the
organization.

Improving Productivity Through HRIS (Human Resource

Information Systems)

Computerized Personnel Forecasting

 What it is: Using HRIS to predict staffing needs based on various business
variables.

 Key Variables Included:

o Productivity metrics (e.g., direct labor hours per unit).
 o Sales projections (minimum, maximum, probable).

o Inventory levels.

 Output:
o Forecasts for direct labor (e.g., assembly workers), indirect staff (e.g.,
secretaries), and exempt staff (e.g., executives).

Benefits of Computerized Forecasting:

1. Accuracy: Translates sales and productivity goals into precise staffing needs.

2. Efficiency: Helps estimate short-term staffing requirements, especially in

industries like retail and utilities.

3. Flexibility: Accounts for factors like seasonal variations, events, and trends.

Examples of Use:
1. Retail Industry:
o Labor scheduling systems predict staffing needs based on sales
forecasts and store traffic.

o Example: Workforce Forecast Manager analyzes business drivers to create

15-minute interval forecasts.

2. Utilities Industry:
o Example: Chelan County Public Utility District used spreadsheets to build a
statistical model.

o Factors included:
 Age, tenure, turnover rate, and training time.

o Identified employment hotspots (e.g., systems operators) and focused

on retention and hiring plans.

Forecasting the Supply of Inside Candidates

To fill projected job openings, organizations must estimate the supply of internal
candidates (current employees) who are qualified for promotion or transfer.
Steps to Forecast Internal Supply:
1. Identify Current Employees’ Skills and Qualifications:
o Assess employees’ skills, performance records, education, and
promotability.

o Example: Google chose an internal candidate to replace CEO Eric Schmidt.

2. Use Tools to Track Employee Qualifications:

o Manual Systems:
 Personnel Inventory and Development Record: Tracks each
employee’s education, skills, training, career interests, and desired
assignments.

 Replacement Charts: Shows potential replacements for key

positions, including their current performance and promotability.

 Position Replacement Cards: Lists possible replacements for

specific roles, along with their performance, potential, and training
needs.

o Computerized Systems:
 Skills Inventories: Digital databases that store employee
qualifications, performance records, and career aspirations.

Forecasting the Supply of Outside Candidates

When internal candidates are insufficient, organizations must forecast the availability of external
candidates.

Steps to Forecast External Supply:

1. Assess Industry and Local Labor Market Trends:

o Managers use their knowledge of the industry and local job market.

o Example: High unemployment rates (e.g., 9% in 2011) signal easier hiring.

2. Use Formal Labor Market Data:

o Sources include:
 U.S. Bureau of Labor Statistics (BLS): Provides data on unemployment
rates, job growth, and occupational trends.
  O*NET: Offers detailed projections for specific occupations (e.g., nurses,
programmers).

 U.S. Congressional Budget Office (CBO): Publishes economic forecasts.

 Bloomberg BusinessWeek: Provides weekly economic snapshots and

annual forecasts.

3. Analyze Specific Occupations:

o Identify shortages or surpluses in key roles (e.g., nurses, teachers, IT
professionals).

o Example: Recent undersupply of nurses.

4. Consider Skill Gaps:

o Many jobs require advanced skills (e.g., communication, creativity, teamwork),
which may be lacking in the labor market.

The Need for Effective Recruiting

Recruiting involves attracting and building a pool of qualified applicants for open positions. It is
a critical step in ensuring the organization hires the best talent.

Why Recruiting is Important:

1. Larger Applicant Pool:

o More applicants increase the chances of finding the best candidates.

o Example: 10-20 applicants allow for better screening compared to just 2.

2. Challenges in Finding Qualified Candidates:

o Even during high unemployment, finding skilled candidates can be difficult.

o Example: A survey found 50% of employers struggled to find qualified

applicants.

What Makes Recruiting Challenging?

1. Recruitment Methods Vary:

 o Different jobs require different recruiting strategies (e.g., online ads, referrals).

2. Non-Recruitment Factors Matter:

o Policies like higher pay (e.g., 10% above market rate) can attract more applicants.

3. Legal Constraints:
o Employment laws restrict certain practices (e.g., word-of-mouth recruiting in non-
diverse workplaces).

Organizing Recruitment Efforts:

1. Centralized vs. Decentralized Recruiting:

o Centralized: More efficient, especially with online recruiting (e.g., Deloitte’s
global recruitment site).

o Decentralized: Individual offices handle their own recruiting.

2. Supervisor’s Role:
o Supervisors provide critical insights about the job (e.g., duties, team dynamics,
leadership style).

o They help recruiters understand what to look for in candidates.

Internal Sources of Candidates

Recruiting doesn’t always mean looking outside the organization. Internal candidates (current
employees) are often the best source for filling open positions.

Pros of Hiring Internally:

1. Familiarity with Candidates:

o Managers already know the strengths and weaknesses of internal candidates.

2. Higher Commitment:
o Internal hires are often more committed to the company.

3. Boosts Morale:
o Promotions reward loyalty and competence, increasing employee morale.
 4. Reduced Training Needs:
o Internal candidates require less orientation and training compared to external
hires.

Cons of Hiring Internally:

1. Discontent Among Employees:

o Employees who apply but don’t get the job may become dissatisfied.

o Solution: Provide feedback on why they were rejected and suggest areas for
improvement.

2. Time-Consuming Process:
o Mandatory interviews with internal candidates can be inefficient if the manager
already has a preferred candidate.

3. Inbreeding:
o Promotions from within may lead to a lack of new ideas and resistance to change.

Finding Internal Candidates:

1. Job Posting:
o Publicize open positions on company intranets or bulletin boards.

o Include job details like qualifications, supervisor, schedule, and pay.

2. Skills Inventories:
o Use databases to identify employees with the right skills or potential for training.

Rehiring Former Employees:

1. Pros:
o Former employees are familiar with the company and its processes.

2. Cons:
o They may return with negative attitudes, especially if they were laid off.

3. Best Practices:
o Credit them with previous years of service.
 o Discuss their experiences during the layoff and their feelings about returning.

Succession Planning

Succession planning is the process of identifying, assessing, and developing future leaders to fill
key positions within an organization. It ensures leadership continuity and aligns talent with the
company’s strategic goals.

Steps in Succession Planning:

1. Identify Key Needs:

o Based on the company’s strategic and business plans, identify future leadership
needs.

o Define key positions and high-potential employees.

o Example: Expanding internationally may require developing leaders for global

roles.

2. Develop Inside Candidates:

o Provide developmental experiences to prepare internal candidates for future
roles.

o Methods include:
 Internal training and job rotation.

 Cross-functional and global assignments.

 External training programs.

3. Assess and Choose Candidates:

o Evaluate candidates based on leadership potential, performance, and readiness.

o Select the best-fit individuals to fill key positions.

Improving Succession Planning with HRIS:

 Succession and Talent Planning Systems:

o Software tools track employee skills, competencies, certifications, and experience.
 o Assess leadership potential, performance, and risk of turnover.

o Example: SumTotal’s platform helps identify and develop internal candidates for
senior roles.

 Benefits of HRIS in Succession Planning:

o Efficiency: Automates tracking and assessment of talent.

o Data-Driven Decisions: Uses metrics to identify and promote internal candidates.

o Development Plans: Creates tailored career development plans for high-potential

employees.

Example: Dole Food Company

 Dole centralized its succession planning using Pilat NAI software.

 Managers:
o Complete online résumés and self-assessments.

o Are evaluated by their supervisors for promotion potential.

 HR uses this data to create career development plans, including training and seminars.

Outside Sources of Candidates

When internal candidates are insufficient or unsuitable, organizations turn to external sources to
fill open positions.

Recruiting via the Internet

 Most Popular Method: Internet-based recruiting is the top choice for most employers.

 Examples:
o The Cheesecake Factory: Receives about 1/3 of its management applicants
online.

o General Use: Most companies use job boards, social media, and their own career
sites to attract candidates.
Key External Recruitment Sources:

1. Job Boards:
o Websites like Indeed, LinkedIn, and Glassdoor post job openings and attract
applicants.

2. Social Media:
o Platforms like LinkedIn, Facebook, and Twitter help reach a wider audience.

3. Company Career Websites:

o Employers post job openings on their own websites to attract candidates directly.

4. Employee Referrals:
o Current employees recommend candidates, often leading to high-quality hires.

5. Recruitment Agencies:
o External agencies help find candidates for specialized or hard-to-fill roles.

6. Campus Recruitment:
o Companies recruit fresh talent from universities and colleges.

7. Job Fairs and Events:

o In-person or virtual events to connect with potential candidates.

Advantages of Internet Recruiting:

 Wide Reach: Attracts a large pool of candidates from diverse backgrounds.

 Cost-Effective: Often cheaper than traditional methods like print ads.

 Speed: Faster posting and application process compared to offline methods.

Advertising as a Recruitment Tool

While online recruiting is increasingly popular, print advertising (e.g., newspapers,
magazines) remains a viable option for attracting candidates.
Choosing the Right Advertising Medium:
1. Local Newspapers:
o Best for recruiting blue-collar workers, clerical staff, and lower-level
administrative roles.

2. Trade and Professional Journals:

o Ideal for specialized roles (e.g., engineers, psychologists).

o Examples: American Psychologist, Chemical Engineering, Women’s Wear

Daily.

3. National/International Publications:
o Use papers like the Wall Street Journal or International Herald
Tribune for middle/senior management roles.

4. Creative Media:
o Companies like Electronic Arts (EA) use innovative methods, such as
including internship information in video game manuals.

o Builds a database of potential candidates and targets specific skills.

Constructing an Effective Ad:

Use the AIDA framework to create compelling ads:

1. Attention:
o Grab the reader’s attention with catchy phrases or visuals.

o Example: “Are you the next key player?”

2. Interest:
o Spark interest by highlighting the job’s impact or unique aspects.

o Example: “Looking to make a difference?”

3. Desire:
o Create desire by emphasizing attractive features like travel
opportunities, challenges, or career growth.

o Example: “Join a dynamic team in a thriving industry.”

4. Action:
o Include a clear call-to-action, such as “Apply now” or “Visit our website.”
Employment Agencies

Employment agencies help employers find qualified candidates for open positions. There
are three main types:

1. Public Agencies:

 Operated by federal, state, or local governments.

 Supported by the U.S. Department of Labor and connected to a nationwide job bank.

 Pros:
o Provide free or low-cost recruitment services.

o Offer additional support like job description writing and on-site visits.

o Many have transformed into one-stop career centers offering training, education,
and job placement.

 Cons:
o Some applicants may lack motivation (e.g., those required to register for
unemployment benefits).

o Perceived as less proactive by some employers.

2. Nonprofit Agencies:

 Run by professional societies (e.g., IEEE) or organizations serving special groups (e.g.,
disabled individuals).

 Pros:
o Focus on specific industries or demographics.

o Often provide specialized support for job seekers.

3. Private Agencies:

 Privately owned and charge fees for placements (usually paid by the employer).
  Reasons to Use Private Agencies:
1. Lack of an in-house HR department.

2. Need to fill positions quickly.

3. Desire to attract diverse candidates (e.g., minorities, women).

4. Reach currently employed individuals who prefer confidentiality.

5. Save time on recruiting efforts.

Challenges of Using Employment Agencies:

 Poor Screening: Agencies may send unqualified candidates directly to hiring managers.

 Missed Talent: Overly strict screening may block good candidates.

Tips for Working with Employment Agencies:

1. Provide a detailed job description to the agency.

2. Ensure the agency uses tests, application forms, and interviews in their screening
process.

3. Review EEOC data to ensure fair hiring practices.

4. Research agencies: Check reviews, ask other employers, and look for agencies
specializing in your industry.

5. Verify references: Conduct your own reference checks for final candidates.

Executive Recruiters (Headhunters)

Executive recruiters, also known as headhunters, specialize in finding top-level talent for key
executive and technical positions. They are typically used for roles that are critical to the
organization and hard to fill through traditional methods.
Types of Executive Recruiters:

1. Retained Recruiters:
o Paid upfront (retainer fee) regardless of whether a candidate is hired.

o Focus on high-level executive roles (e.g., CEOs, CFOs) with salaries

over $150,000.

o Examples: Heidrick & Struggles, Egon Zehnder International, Russell

Reynolds, Spencer Stuart.

2. Contingency Recruiters:
o Paid only if a candidate they recommend is hired.

o Handle junior to mid-level management roles (salaries

between 50,000and50,000and150,000).

How Executive Recruiters Work:

 Specialization: Many recruiters focus on specific industries (e.g., oil, tech) or functions
(e.g., sales, finance).

 Technology: Use advanced databases and online tools to quickly identify qualified
candidates.

 Confidentiality: Keep the employer’s name confidential until late in the recruitment
process.

Pros of Using Executive Recruiters:

1. Access to Top Talent:

o Recruiters have extensive networks and can find passive candidates (employed
individuals not actively job-seeking).

2. Specialized Expertise:
o They understand the specific needs of high-level roles and industries.

3. Time-Saving:
o Handle the entire search process, saving the employer time and effort.

4. Confidentiality:
 o Maintain discretion, which is crucial for sensitive or high-profile roles.

Cons of Using Executive Recruiters:

1. High Cost:
o Fees are typically 30% or more of the hired executive’s first-year salary.

2. Limited Control:
o Employers may have less involvement in the initial candidate screening process.

3. Variable Quality:
o Not all recruiters deliver the same level of service or quality of candidates.

Tips for Working with Executive Recruiters:

1. Choose the Right Recruiter:

o Look for recruiters who specialize in your industry or function.

2. Clarify Expectations:
o Provide a detailed job description and discuss your ideal candidate profile.

3. Verify Track Record:

o Check the recruiter’s reputation and success rate in filling similar roles.

4. Stay Involved:
o Maintain communication with the recruiter throughout the process.

College Recruiting
College recruiting involves sending company representatives to college campuses
to prescreen applicants and build a pool of potential hires from graduating students.
It is a key source for management trainees, technical roles, and professional
positions.

Importance of College Recruiting:

 Fills Entry-Level Roles: New college graduates fill about 38% of externally
hired jobs requiring a degree.
  Builds Talent Pipeline: Helps companies identify and attract young talent early
in their careers.

 Examples:
o GE hires 800-1,000 students annually from 40 schools.

o IBM has a dedicated team to improve on-campus recruiting results.

Challenges of College Recruiting:

1. Cost and Time-Consuming:
o Requires advance scheduling, printing materials, and significant time on
campus.

2. Recruiter Effectiveness:
o Some recruiters are unprepared, uninterested, or fail to screen candidates
properly.

3. Competition:
o Top students are often targeted by multiple companies.

Best Practices for College Recruiting:

1. Train Recruiters:
o Ensure recruiters are skilled in interviewing, explaining the company’s
offerings, and making candidates feel comfortable.

2. Build Relationships with Schools:

o Partner with specific universities to establish a strong presence.

3. Use Student Ambassadors:

o Leverage current interns or employees to promote the company on
campus.

4. Create a Strong Employer Brand:

o Highlight career growth opportunities, company culture, and benefits to
attract top talent.

5. Streamline the Process:

o Use technology to manage schedules, track candidates, and maintain
records efficiently.
Job Fairs and On-Site Visits in HRM

Job Fairs:
 What it is: Events where multiple employers set up booths to meet and recruit
potential candidates.

 Purpose:
o Attract a large pool of applicants in one location.

o Promote the company’s brand and job opportunities.

 Types:
o General Job Fairs: Open to all industries and job types.

o Specialized Job Fairs: Focus on specific fields (e.g., tech, healthcare).

 Pros:
o Reach many candidates quickly.

o Opportunity for face-to-face interaction.

 Cons:
o Can be costly and time-consuming.

o May attract unqualified candidates.

On-Site Visits:
 What it is: Inviting candidates to visit the company’s workplace to learn about
the organization and role.

 Purpose:
o Give candidates a firsthand look at the work environment.

o Assess cultural fit and interest in the company.

 Activities:
o Office tours, meetings with team members, and presentations about the
company.

 Pros:
o Helps candidates visualize themselves in the role.
 o Demonstrates transparency and builds trust.

 Cons:
o Logistically challenging (e.g., travel arrangements).

o Time-intensive for both candidates and employers.