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• The Process of HR Planning 1 of 10
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• Figure 5.1: Overview of the HR Planning
Process
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• The Process of HR Planning 3 of 10
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• The Process of HR Planning 4 of 10
Transitional matrix
A chart that lists job It answers two questions:
categories held in one 1. “Where did people in
period and shows proportion each job category go?”
of employees in each of 2. “Where did people now
those job categories in a in each job category
future period. come from?”
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• The Process of HR Planning 5 of 10
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• The Process of HR Planning 6 of 10
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• The Process of HR Planning 7 of 10
Core Competency
– A set of knowledge and skills that make the
organization superior to competitors and create value
for customers.
– Organizations are most likely to benefit from hiring
and retaining employees who provide a core
competency.
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• The Process of HR Planning 8 of 10
1. Reduce Costs
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• Table 5.2 HR Strategies for Addressing a Labor
Shortage or Surplus (1 of 2)
Options For Reducing a Surplus
Option Speed of Results Amount of Suffering Caused
Downsizing Fast High
Pay reductions Fast High
Demotions Fast High
Transfers Fast Moderate
Work sharing Fast Moderate
Hiring freeze Slow Low
Natural attrition Slow Low
Early retirement Slow Low
Retraining Slow Low
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• Table 5.2 HR Strategies for Addressing a Labor
Shortage or Surplus (2 of 2)
Options For Avoiding a Shortage
Option Speed of Results Ability To Change Later
Overtime Fast High
Temporary employees Fast High
Outsourcing Fast High
Retrained transfers Slow High
Turnover reductions Slow Moderate
New external hires Slow Low
Technological innovation Slow Low
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• Options for Avoiding a Shortage
Overtime and
Temporary expanded
workers Outsourcing hours
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• The Process of HR Planning 9 of 10
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• Recruiting Human Resources
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• Figure 5.2: Three Aspects of Recruiting
Employment-at-will policies
Image advertising
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• Recruitment Sources 1 of 4
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• Recruitment Sources 2 of 4
Job Posting
– Process of communicating information about a job
vacancy:
– On company bulletin boards
– In employee publications
– On corporate intranets
– Anywhere else organization communicates with
employees
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• Recruitment Sources 3 of 4
External Sources
Electronic recruiting
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• Recruiter Traits and Behaviors 2 of 2
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• Summary (1 of 3)
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• Summary (2 of 3)
• To reduce a surplus, downsizing, pay reductions, and
demotions deliver fast results but at a high cost in
human suffering that may hurt surviving employees’
motivation and future recruiting.
• To avoid a labor shortage, requiring overtime is easiest
and fastest strategy.
• Internal recruiting generally makes job vacancies more
attractive because candidates see opportunities for
growth and advancement.
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• Summary (3 of 3)
• Lead-the-market pay strategies make jobs economically
desirable.
• Internal sources are usually not sufficient for all of an
organization’s labor needs.
• Through their behavior and other characteristics,
recruiters influence the nature of the job vacancy and
kinds of applicants generated.
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