3. Workforce Planning & Forecasting
• Workforce Planning is the process of deciding what
positions the firm will have to fill, and how to fill
them.
• The basic workforce planning process is to forecast
the employer’s demand for (need for) labor, and the
supply of labor; then, identify supply-demand gaps,
and develop action plans to fill the projected gap.
• Forecasting personnel needs:
– Trend Analysis
– Ratio Analysis
– The Scatter Plot
4. Forecasting the Supply of Inside
Candidates
1. Manual systems and replacement charts
2. Computerized skills inventories
3. Markov analysis (transisition analysis)
This Analysis involves creating a matrix that shows probabilities
that employees in the chain of feeder positions for a key job will
move from position to position and therefore be available to fill the
key position.
5. Forecasting the Supply of Outside
Candidates
• If there are not enough skilled inside candidates
to fill the anticipated openings.
• This forecasting depends first on the manager’s
own sense of what’s happening in his industry
and locale.
6. Succession Planning
• Succession planning is the ongoing process of
systematically identifying, assessing, and
developing organizational leadership to enhance
performance.
• 3 Steps of Succession Planning:
1. Identify key needs
2. Develop inside candidates
3. Assess and choose
• GE’s Succession Plan:
finding the successor of Jack Welch
7. Employee Recruiting
• Employee Recruiting means finding and or attracting
applicants for the employer’s open position.
• Recruiting yield pyramid: the historical arithmeic
relationships between recruitment leads and invitees,
invitees and interviews, interviews and offers made, and
offers made and offers accepted.
8. Internal Sources of Candidates
• Hiring from within is often the best source of
candidates.
• Several advantages of hiring internal source:
1. Known strengths and weaknesses
2. More committed to the company
3. Rising morale if employees see promotions as rewards
for loyalty and compatence
4. Less training and orientation than outsiders.
• Disadvantages:
1. Rejected applicants may become discontented
2. May be a waste of time
3. Inbreeding (no new perspective)
9. External Sources of Candidate
• One survey found that people find their jobs through:
– Word of mouths (28%)
– Online job boards (19%)
– Direct approaches from employers and employment services (16%)
– Print ads (7%)
– Social media (1%)
• More recruting is shifting from online job boards to Facebook and
LinkedIn.
• Pros and Cons of Online Recruiting:
1. Older people and some minorities are less likely to use the internet.
2. Internet overload: employers can end up deluged with resumes.
The best job is not
advertised, it is gone
before it goes to
market.”
-Ramit Sethi
“
10. Advertising for Recruitment
• Despite the rising popularity of online
recruitment, print ads are still popular.
• To use help wanted ads succesfully, employers
should address 2 issues:
1. the advertising medium
• Target your ads where they’ll reach your prospective
employees
2. the ad’s construction
• Use the guide AIDA (attention, interest, desire, action)
11. Employment Agencies
Three main types of employment agencies:
1. Public Agencies
2. Nonprofit Agencies
3. Private Agencies
12. Temporary Workers Alternative Staffing
• Temporary workers also known as part-time or just-in-time
workers.
• Several things contribute to the trend of using more
temporary workers:
– Continuing weak economic confidence among employers
– Trend toward organizing around short-term projects
• To make temporary relationships successful, those
supervising temps should understand their concern.
• Pros and Cons:
– Productivity in output per hour paid is higher, since temps are
generally paid only when they’re working-not for days off.
– Temps often cost employers more per hour than comparable
permanent workers, since the agency gets a fee.
• Alternative staffing is the use of nontraditional
recruitment sources.
13. Offshoring and Outsourcing Jobs
• Rather than bringing people in to do the company’s job,
outsourcing and offshoring send the jobs out.
• Outsourcing means having outside vendors supply services
that the company’s own employees previously did in-
house.
• Offshoring means having outside vendors or employees
abroad supply services that the company’s own employees
previously did in-house.
• The danger of outsourcing
Not exactly counterfeit
Foreign contractors make more products than they're supposed
to then sell the excess out the back door. New Balance found out
just how hard it can be to shut down the "third shift."
By Roger Parloff, FORTUNE senior writer
April 26, 2006: 4:34 PM EDT
http://archive.fortune.com/magazines/fortune/fortune_archive/2
006/05/01/8375455/index.htm
14. Executive Recruiters
• Also known as headhunters.
• Executive recruiters are special employment
agencies employers retain to seek out top-
management talent for their clients.
• The big issue is ensuring that the recruiter really
understands your needs and then delivers
properly vetted candidates.
• Fees in Indonesia: 2% of TANI.
15. Referrals & Walk-Ins
• Employee referral works like this: the employer posts
announcements of openings and requests for referrals on it
websites, bulletin boards, and or wallboards. It can offers
prizes or cash awards for referrals that lead to hiring.
• Pros and Cons of referral:
– Tends to generate ‘more applicants, more hires, and a higher
yield ratio (hires/applicants)’.
– More cost effective
– May not be effective if morale is low
– Have to provide more explanation for rejected referrals
– Can be discriminatory (tend to recruit similar people)
• Walk-ins are direct applications made at your office.
16. Other Recruiting Ways
• On-demand recruiting services (ODRS) are recruiters who
are paid by the hour or project, instead of a percentage
fee, to support a specific project.
• College recruiting: sending an employer’s representatives
to college campuses to prescreen applicants and create an
applicant pool from the graduating class-is an important
source of management trainees and professional and
technical employees.
• Telecommuters do all or most of their work remotely,
often from home, using IT.
• Military personnel: returning and discharged military
personnel provide an excellent source of trained and
disciplined recruits.
17. Recruiting a More Diverse Workforce
• Recruiting women
• Recruiting single parents
• Recruiting older workers
• Recruiting minorities
• Recruiting the disabled
18. Developing and Using Application Forms
• Application form is the form that provides information on
education, prior work record, and skills.
• With a pool of applicants, the prescreening process can
begin by using the application form.
• A filled in application form provides 4 types of information:
1. Judgment on substantive matters, such as whether the
applicants has the education an experience to do the job.
2. Draw conclusions about the applicants previous progress and
growth, especially important for management candidates.
3. Draw tentative conclusions about the applicants stability
based on previous work record.
4. Use the data to predict which candidates will succeed on the
job.
21. Why Employee Selection is Important
• The aim of employee selection is to achieve person-job fit.
This means matching KSACs (knowledge, skills, abilities and
other competencies) that are required for performing the
job with the applicant’s KSACs.
• Not only the person-job fit is important, person-
organization fit is important also.
• Selecting the right employees is important for 3 main
reasons:
1. Performance
2. Cost
3. Legal obligations-can cause negligent hiring, hiring workers
with questionable backgrounds without proper safeguards.
22. Basics of Testing & Selecting Employees
• Reliability-the consistency of scores obtained by the same
person when retested with the identical tests or with
alternate forms of the same test.
• Validity-the accuracy with which a test, interview, and so
on measures what it purports to measure or fulfills the
function it was designed to fills.
Several ways to demonstrate a test’s validity:
1. Criterion validity, a type of validity based on showing that scores
on the test (predictors) are related to job performance (criterion).
2. Content validity, a test that is content valid is one that contains a
fair sample of the tasks and skills actually needed for the job in
question.
3. Construct validity, a test that is construct valid is one that
demonstrates that a selection procedure measures a construct and
that construct is important for successful job performance.
23. Type of Tests
• Tests of cognitive abilites
Include test of general reasoning ability (intelligence) and
tests of specific mental abilities like memory and inductive
reasoning.
• Tests of motor and physical abilities
For example: finger dexterities, reaction time, lifting
weights, pull ups, jumping rope, stamina, etc.
• Measuring personality and interests
Usually focus on the big 5 of personality dimensions:
extraversion, emotional stability/neuroticism,
agreeableness, conscientiousness, and openness to
experience.
• Achievement tests
Used to measure what someone has learned.
24. Work Samples & Simulations
• Work sampling technique-a testing method based
on measuring performance on actual basic job tasks.
• Situational judgment tests
• Management assessment centers-a simulation in
which management candidates are asked to perform
realistic tasks in hypothetical situations and are
scored on their performance. It usually also involves
testing and the use of management game.
• Situational testing and video based situational
testing
• The miniature job training and evaluation approach
26. Basic Types of Interview
• A selection interview is a selection procedure
designed to predict future job performance based on
applicants oral responses to oral inquiries.
• Classification of selection interview:
1. How structured they are
2. Their “content”-the types of questions they contain
• Situational questions
• Behavioral questions
• Others: job related interviews, stress interviews
3. How the firm administers the interview (one on one, or
via a committee).
27. Errors that Can Undermine an Interview’s
Usefulness
• First impressions (snap judgment)
• Not clarifying what the job requires
• Candidate-order (contrast) error and pressure to hire
• Nonverbal behavior and impression management
• Effect of personal characteristics: attactiveness,
gender, race
• Diversity counts: applicant disablity and the
employment interview
• Interviewer behavior
28. Designing a Structured Situational
Interview
• Structured situational interview: a series of job-
relevant questions with predetermined answers that
interviewers ask of all applicants for the job.
• Steps in designing a strucured situational interview:
1. Analyze the job
2. Rate the job’s main duties
3. Create interview questions
4. Create benchmark answers
5. Appoint the interview panel and conduct interviews
29. How to Conduct an Effective Interview
1. First, make sure you know the job
2. Structure the interview
3. Get organized
4. Establish rapport
5. Ask questions
6. Take brief, unobtrusive notes during the
interview
7. Close the interview
8. Review the interview
30. The Briefcase Techniques-Ramit Sethi
• The Briefcase Technique – a 2-minute video to
help you earn thousands
• The Briefcase Technique is a very simple tactic you can use to
dominate any job interview, wow potential clients, or negotiate a
higher salary. I’ve used this exact technique to earn thousands of
dollars in salary and freelance negotiations.