Chapter 3: Human Resource

Planning, Recruitment, and

Selection
Creating Effective Organizations
Development of Human
Resource Management
Parallels the protection and treatment of workers

1. Social Welfare Department
1880 1935
a. Helping injured workers and their families
b. Company unions: parties and social events
c. Worker health
2. Labor Relations Department
1935 1950
a. Collective bargaining
b. Contract administration
3. Industrial Relations Department
1950 1970
a. Labor relations
b. Benefits and vacations
c. Testing and selection
d. Compensation systems


4. Personnel Department
1970 1990
a. Legal compliance
b. Staffing
c. Performance evaluation
d. Compensation and benefits
e. Employee relations
f. Safety and health
5. Human Resource Management

Staffing Model
Strategic Planning
Environmental
Scanning
Operational Planning Forecasting
Projected Staffing
Requirements
Goals and Objectives
Recruitment Planning
Applicant Search
Preliminary Screening
Selection Decision
Placement
Strategic
Business
Planning
Human
Resource
Planning
Long-range
planning
Selection
Recruitment
Middle-range
planning
Short-range
planning
Human
Resource
Planning
Typical Steps in the Selection Process
Reference checks
Employment testing
Drug testing
Final interview
Selection decision
Placement on the job
Reject applicant
Preliminary screening
Application blanks
Interviews
Forecasting Employment
Needs
1. Budgeting
2. Work-load Analysis
3. Unit Demand
4. Expert Opinion
5. Trend Predictions
Example of Predicting Labor Supply and Required New
Hires for a Hotel Chain
Supply Analysis Supply Demand Comparison
Key Positions
A
% Quit
(rounded)
(1996-1998)
B
Number of
Present
Employees
C
Projected
Turnover by
2000
D
Employees
Left by 2000
E
Projected
Labor Demand
in 2000
F
Projected New
Hires in 2000
General Manager 38 25 10 15 32 17
Resident Manager 77 9 7 2 12 10
Food/Beverage Director 47 23 11 12 29 17
Controller 85 25 21 4 32 28
Assistant Controller 66 14 9 5 18 13
Chief Engineer 81 24 16 8 31 23
Director of Sales 34 25 9 16 32 16
Sales Manager 68 45 30 15 58 43
Convention Manager 90 14 13 1 18 17
Catering Director 74 19 14 5 24 19
Banquet Manager 60 19 12 7 24 17
Personnel Director 43 15 6 9 19 10
Restaurant Manager 89 49 44 5 63 58
Executive Chef 70 24 17 7 31 24
Sous Chef 92 24 22 2 31 29
Executive Housekeeper 63 25 16 9 32 23
Total Employees 379 257 122 486 364
Solving the Surplus Personnel
Problem
1. Layoffs
2. Attrition
3. Reduced Hours/Job Sharing
4. Unpaid Vacations
5. Early Retirements
High Performance Work
Practices Financial Performance
Sample: 968 U.S. firms with 100 or more employees
Financial Data: 10-K reports with the SEC
High Performance Work Practices: What proportion of the workforce participates in:
1. Formal information sharing program
2. Formal job analysis
3. Hiring from within
4. Employee attitude surveys
5. Quality of Work Life Programs
6. Company incentive, profit-sharing, or gain-sharing plans
7. Formal grievance and complaint procedures
8. Pre-employment testing
9. Performance appraisals are used to determine promotion
10. Formal performance appraisals
11. Promotion by seniority or performance
12. Selection ratio for hiring
13. What is the average number of hours of training received per employee per year?

High Performance Work
Practices - Results
A one standard deviation increase from the
mean in high performance work practices is
associated with:
7.05% decrease in turnover
$27,044 increase in sales annually per employee
$18,641 increase in market value annually per
employee
$3,814 increase in profits annually per employee
Source: Mark A. Huselid, The Impact of Human Resource Management Practices on Turnover,
Productivity, and Corporate Financial Performance. Academy of Management Journal, vol 38 (1995): 635-672