Human Resource Management Gaining a Competitive Advantage Chapter

Human Resource Management Gaining a Competitive Advantage Chapter 5 Human Resource Planning and Recruiting Mc. Graw-Hill/Irwin © 2008 The Mc. Graw-Hill Companies, All Rights Reserved 1 -1

Strategies for Reducing an Expected Labor Surplus Option 1. 2. 3. 4. 5. 6. 7. 8. 9. Downsizing Pay reductions Demotions Transfers Work sharing Hiring freeze Natural attrition Early retirement Retraining Speed Fast Fast Slow Extent of Human Suffering High Moderate Low Low 5 -2

Strategies for Reducing an Expected Labor Shortage Option 1. Overtime 2. Temporary employees 3. Outsourcing 4. Retrained transfers 5. Turnover reductions 6. New external hires 7. Technological innovation Speed Extent of Human Suffering Fast High Fast Slow High Moderate Low 5 -3

Effects of Downsizing • Studies show that firms that announce a downsizing campaign show worse, rather than better financial performance. • Reasons include: – The long-term effects of an improperly managed downsizing effort can be negative. – Many downsizing campaigns let go of people who turn out to be irreplaceable assets. – Employees who survive the staff purges often become narrow-minded, self-absorbed, and risk-averse. 5 -4

Recruitment Sources Colleges and Universities Internal Sources - campus placement services Faster, cheaper, more certainty External Sources New ideas and approaches Direct Applicants and Referrals self selection, low cost Public & Private Employment Agencies headhunters, can be expensive JOBS Electronic Recruiting the Internet Newspaper Advertising large volume, low quality recruits 5 -5

Attributes Impacting Recruiter Evaluations of MBA Programs Attribute % Very Important Communication and interpersonal skills 89% Ability to work well within a team 87 Personal ethics and integrity 85 Analytical and problem-solving skills 84 Quality of past hires 74 Leadership potential 73 Fit with the corporate culture 72 » Source: Wall Street Journal, 9/22/04 5 -6

Attributes Impacting Recruiter Evaluations of MBA Programs • “We need a combination of strong analytical and interpersonal skills, plus an ability to cope with ambiguity and remain composed in uncomfortable, stressful situations. A key question for us is can the candidate be comfortable working and communicating with a range of people at the company, from top executives down to assembly-line workers? ” » Recruiter from Electronic Data Systems • “Budding MBAs tend to be overly confident. [At USC] our biggest single problem is convincing them they don’t have the skills needed to communicate well in a corporate environment. ” » Source: Wall Street Journal, 9/17/03 5 -7