RECRUITING AND SELECTING EMPLOYEES
Labor supply = availability of workers with the required skills an organization need
Labor demand = n° of workers an organization need
HUMAN RESOURCES PLANNING (HRP)
Forecasting labor demand and supply ensure that the firm has the right amount of
people with the required skills to deliver a particular level of product/service in the
future
3 cases:
1. D > S = the firm will need more workers that the ones that are available
training existing workers, grooming new employees to take vacant positions, hiring
new workers (part-time workers, temporary workers, paying overtime to existing
workers)
2. S > D = there are more workers than the ones the firm needs
pay cuts, reducing n° of hour worked, work sharing, eliminate job positions through
early retirement incentives or severance pay
3. D = S = people hired are replacing people retired or people who quit
Forecasting techniques:
QUANTITATIVE (mathematical QUALITATIVE (Judgement)
techniques)
- relying too much on past data + more flexibility
(relationships held in the past may be
different from the futures ones) - less accurate
- better for large firms facing low Ex. Top-down or bottom-up approach:
competition and stable environments prediction of D and S are mare from
senior managers or lower levels
Ex. Ratios analysis: using historical ratios managers
to predict D and S
THE HIRING PROCESS
Poor hiring decisions increase organizational costs
Challenges:
1. Determining characteristics important to performance
Knowledge, skills and abilities (KSA’s matrix) are evolving for every job
Organizational culture
Different people requires different characteristics of the new hire
2. Measuring characteristics that determine performance (ex: test of maths
ability)
3. Measure motivation PERFROMANCE = ABILITY x MOTIVATION
4. The HR department should make the hiring decision (comply with legal
requirement and have more info about the applicants since it is responsible for
their initial contact)
RECRUITING
It is like a sales activity and applicants are treated as customers: opportunity to
highlight what your organization offers
Sources of recruiting:
1. Current employees: informing them about job openings before recruiting from
other sources
2. Referrals from current employees studies found that people hired like that
stay in the organization longer and are more loyal and job satisfied
3. Former employees (that previously worked in the organization)
4. Former military military experience is linked with better job performance
5. Customers already familiar with the organizational product/service
6. Print and radio advertisement
7. Internet advertising, career sites and social media cheap, more dynamic and
faster for both organizations and job seekers
8. Employment agencies
9. Temporary workers provide flexibility to meet fluctuating demand
10.College recruiting
!! Evaluation hiring= after a set period of time (90 days) the company decides
whether to hire the worker as permanent employee
+ the firm can avoid better hiring decisions and better determine if the candidate fits
in the organization
- bad for the candidate that doesn’t have a permanent job for 90 days and this period
can also be extended
- unethical if it is used to hire workers only for a temporary base
11.Non-traditional recruiting: hiring prisoners, senior citizens, workers from foreign
countries, homeless, drug addicts
EXTERNAL CANDIDATES INTERNAL CANDIDATES
+ fresh perspectives + less costly internal recruits are
already familiar with the organization’s
+ different approaches culture, procedures and policies
+ less costly if you hire external + motivating for internal workers
specialists instead of training current because the organization shows to give
workers in new processes and opportunity for advancement
technologies - no introduction of innovation and new
- a new recruit needs time to learn a new perspectives
job
SELECTION
Reliability = consistency of measurement (how much noise/error has influenced the
measure)
Validity = the extent to which scores on a test or interview correspond to actual job
performance
Selection tools:
1. Letters of recommendations
2. Application forms (asking info regarding past jobs or present employment
status) to determine whether a candidate has the minimum requirements for
that job
Ex: biodata forms
3. Ability tests (Ex: cognitive ability tests specific of a certain area)
4. Personality tests to asses traits like extroversion, agreeableness,
conscientiousness, emotional stability, openness to experiences
5. Honesty tests (Ex: polygraph test measure a candidate pulse, breathing rate
while asking a series of questions)
6. Interviews criticism of interviews because: poor reliability and validity
because of human judgement limitation, interviewer’s biases and the fact that
sometimes are conducted differently from a candidate to another
Solution: STRUCTURED INTERVIEW = job related questions consistent across all
candidates (all responses are scored the same way) valid predictors of job
performance
Ex. how a worker would respond to a particular work situation (situational
questions), basic knowledge (job knowledge questions), if the worker wants
to perform under prevailing job conditions (worker requirement questions)
But unstructured interviews remain popular because they can better predict the
candidate degree of fit with the organization and identify inadequate
candidates.
7. Assessment centres (set of simulated tasks or exercises that candidates have to
perform)
used for external recruitment or internal promotion (usually managerial
positions)
- expensive way to reduce costs could be conduct it only for the middle range
candidates
+ effective technique to judge competences (organizing, planning, decision-
making, leadership)
8. Drug tests
9. Reference checks (look at past employment record)
10.Background checks (look at criminal background, academic achievements,
driving history..)
11.Handwriting analysis
!! link between performance and fit with the organizational culture you can improve
skills by training programs but you can’t change persons’ values
SOCIALIZATION: aimed to integrate workers in the organization and to the units in
which they will be working (making him feel member of the team)
APPRAISING AND MANAGING PERFORMANCE
PERFROMANCE APPRAISAL = identification, measurement and management of
organizational performance
Administrative purpose deciding employees’ working conditions, promotions,
rewards, terminations
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Human resource Management
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