© 2008 by Prentice Hall 4-1

Shortage of Workers Forecasted

• Creative recruiting• Compensation incentives –

Premium pay is one method• Training programs – Prepare

previously unemployable people for positions

• Different selection standards

© 2008 by Prentice Hall 4-2

Surplus of Employees

• Restricted hiring – Employees who leave are not replaced

• Reduced hours• Early retirement• Downsizing - Layoffs

© 2008 by Prentice Hall 4-3

Downsizing

• Also known as restructuring and rightsizing, is reverse of company growing and suggests one-time change in organization and number of people employed

• Retention bonuses are used to entice terminated employees to remain for short periods of time to ensure continued services

© 2008 by Prentice Hall 4-4

Negative Aspects of Downsizing

• Cost associated with low morale of those remaining

• Layers removed, making advancement in organization more difficult

• Workers may seek better opportunities, fearing they may be in line for lay offs

© 2008 by Prentice Hall 4-5

Negative Aspects of Downsizing (Cont.)

• Employee loyalty significantly reduced • Institutional memory lost• Remaining workers required to do

more • When demand for products/services

returns, firm may realize it has cut too deep

© 2008 by Prentice Hall 4-6

Outplacement

• Laid-off employees given assistance in finding employment elsewhere

• Companies use outplacement to take care of employees by moving them successfully out of company rather than having to do it on their own

© 2008 by Prentice Hall 4-7

Succession Planning

• Process of ensuring that qualified persons are available to assume key managerial positions once the positions are vacant

• Goal is to help ensure a smooth transition and operational efficiency

© 2008 by Prentice Hall 4-8

Human Resource Information Systems (HRIS)

Any organized approach for obtaining relevant and timely information on which to base HR decisions

© 2008 by Prentice Hall 4-9

HUMAN RESOURCE INFORMATION SYSTEMGoal: Integrate Core Processes into Seamless System

Input Data Types

Job Analysis

Recruitment

Selection/Job Posting/ Employee Referral

T&D

Performance Appraisal

Compensation

Benefits

Safety

Health

Labor Relations

Employee Relations

Output Data Uses*

Employee Tracking

Diversity Programs

Hiring Decisions

Training Programs/E-learning/Management Succession

Compensation Programs

Benefit Programs (e.g., prescription drug programs)

Health Programs (e.g., Employee Assistance Programs) Bargaining Strategies

Employee Services

Organizational Strategic Plans

Human Resource

Management Plans

Contribute Toward Achievement of:

Human Resource

Information System

*Manager and employee self-service is available.

© 2008 by Prentice Hall 4-10

Trends & Innovations: Manager Self-Service

• Use of software and corporate network to automate paper-based processes requiring manager’s approval, record-keeping or input, and processes that support manager’s job

• MSS can help managers develop and grow staff and assist employees in determining their career paths and developing required competencies

© 2008 by Prentice Hall 4-11

Employee self-service (ESS)

• Processes that automate transactions formerly labor-intensive for employees and HR professionals

• ESS applications can free up valuable HR staff time, reducing administrative time and costs

© 2008 by Prentice Hall 4-12

Job Design

• Process of determining specific tasks to be performed, methods used in performing these tasks, and how job relates to other work in organization

• Job enrichment - Basic changes in content and level of responsibility of job, to provide greater challenge to worker

© 2008 by Prentice Hall 4-13

Job Design (Cont.)

• Job enlargement - Changes in scope of job to provide greater variety to worker

• Reengineering - Fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical measures of performance, such as cost, quality, service and speed

© 2008 by Prentice Hall 4-14

A Global Perspective: A Database of Repatriate Skills

• Vast majority of U.S. companies have failed to realize importance of creating databases of repatriate skills

• Colgate-Palmolive’s database is primarily for succession planning.

• It also contains data on each manager’s experience with or awareness of particular cultures

© 2008 by Prentice Hall 4-15