Human Resource Planning & Recruitment

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Human Resource Planning & Recruitment

Chapter Summary

This chapter describes the process an organization uses to plan and recruit so that there will be adequate human resources. The steps described are linking business strategies to future needs, forecasting labor demand and supply, determining in what positions there will exist a labor shortage or surplus, setting goals regarding future human resource needs, and identifying strategies to solve the problems of shortages and/or surpluses. The ability to recruit successfully is described as depending upon personnel policies such as job posting (an internal strategy), level of pay in comparison to the market, and the extent of job security. The chapter describes sources for
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2. Determining Labor Supply

a. Internal labor supply is determined by a detailed analysis of how many people are currently in various job categories, modified to reflect changes in the near future caused by retirements, promotions, transfers, voluntary turnovers, or terminations. This is done by historical, statistical models such as the transitional matrix, which is a table used to project internal labor supply. The matrix shows the proportion or number, of employees in different job categories at different times and how people move from one job to another in the organization and how many people enter and leave the organization (text Table 5.1 and TM 5.2). This method is best combined with judgmental methods.

3. Determining Labor Surplus or Shortage—By comparing forecasts for labor supply and demand for specific jobs, the organization can determine what it needs to do.

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|A related reading from Dushkin’s |
|Annual Editions: Human Resources 99/00: |
|(“Is Anybody Out There” by Alex Markels |

Example: Japan’s Matsushita Corporation has reaped benefits from HRP. The price of Japanese yen is a strong indicator for
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