only need 250-350 words… Please do not over cite the references. Thanks.1. What types of strategic choices do managers have when deciding on recruiting and selection efforts? 2. How can the HR department and line manager collaborate to develop an authentic environment built on trust for a virtual and global workforce?How do they make it work? References: APUS, (n.d.) HRMT605 | LESSON 3: RECRUITMENT AND SELECTION Recruitment goes virtual. (2013). Human Resource Management International Digest, 21(3), 19–21. https://doi.org/10.1108/09670731311318424 Long, N, (2016). The Role of Recruitment & Selection in Strategic Management. Retrieved 16 December 2019, from http://smallbusiness.chron.com/role-recruitment-se…
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HRMT605 | LESSON 3: RECRUITMENT AND SELECTION
Introduction
Topics to be covered:
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Overview of recruitment and selection
Contingent workers
Outsourcing
Virtual organizations
Organizations cannot function without people. Thus, staffing is the most critical element in an
organization’s success and is often an organization’s largest expense, with more funds spent on
staffing and related costs—including salaries and employee benefits, as well as training and
development—than any other organizational resource. Depending on the industry, personnel
expenditures generally comprise between 20 and 40 percent of an organization’s total budget
(Browne, n.d.).
When organizations develop strategic plans, those plans must include details on the number and
types of employees an organization needs and the strategies the organization will use to attract
and hire these employees. This is part of the reason that HRM professionals must have an active
role in an organization’s strategic planning and strategic management processes.
This lesson will provide an overview of recruitment and selection, contingent workers,
outsourcing and virtual organizations. It will explain how these factors into an organization’s
strategic planning processes, and it will discuss how these are handled by HRM professionals.
Overview of Recruitment and Selection
The recruitment and selection process begin with a job analysis for every position in an
organization. Job analysis refers to the process of systematically gathering information about a
specific job that can be used to prepare a job description, as well as a job specification, for that
job. As part of this process, a job analyst gathers information about a job’s essential and
nonessential duties and responsibilities; reporting relationships, including supervisors and coworkers; and the environment and working conditions in which the job will be conducted.
Job analyses provide the foundation for strategic workforce planning (SWP), which is a vital
part of an organization’s overall strategic planning process. SWP refers to the process of
identifying the number of employees an organization needs to fill its positions, and the
knowledge and skills that these employees must have to perform the organization’s work. This
data is derived from an understanding of the organization’s goals and objectives, including the
competencies necessary to complete the tasks required to achieve these goals and objectives. To
conduct SWP, HRM professionals also must understand an organization’s long-term goals and
objectives and how the required competencies will change over time to accomplish the
organization’s long-term strategies. The long-term staffing plan must include adjustments to
address changes in the organization’s goals and objectives.
According to Cascio (2010), an SWP system includes activities such as the following talent
inventory, workforce forecast, action plan, as well as control and evaluation.
TALENT INVENTORY
Talent inventory is an assessment that lists and categorizes the knowledge, skills,
and capabilities of the organization’s current employees.
WORKFORCE FORECAST
Workforce forecast is an assessment that predicts an organization’s future staffing
needs, including the number of employees needed; the knowledge, skills, and
capabilities these employees must have; the current employees who will be able to
meet these needs; and the expected availability of employees in the external labor
market.
CONTROL AND EVALUATION
Control and evaluation is a process to improve the effectiveness of an SWP system
by gathering feedback on HRM activities, monitoring how well HRM’s goals and
objectives are accomplished, and determining whether accomplishing these goals
and objectives enabled the organization to achieve its overall goals and objectives.
ACTION PLAN
Action plan is a strategic plan for addressing an organization’s staffing needs,
including an increase in the pool of eligible job candidates to fill an organization’s
vacancies. This can include recruitment, training, promotion, and compensation.
More on an Action Plan
The action plan addresses staffing needs by utilizing a number of activities intended to increase
the number of eligible job candidates, including the following (Cascio 2010, 176):
Recruitment
Recruitment refers to an exchange in the marketplace whereby organizations
showcase their job opportunities to job applicants and attempt to entice those
applicants who have the knowledge, skills, and capabilities sought by the organization
to fill its positions.
Selection
Selection refers to the process of choosing employees from a group of candidates
who have expressed an interest in filling an organization’s specific positions. These
candidates may include current employees who have expressed an interest in moving
to another position within the organization.
Training
Training refers to the process of providing employees with planned programs that
are intended to teach them information and techniques designed to improve their skills
and capabilities, making them better able to complete their jobs.
Placement
Placement refers to the process of assigning employees to fill certain positions
within an organization.
Transfer
Transfer refers to the extent that information gained during training can be used to
develop competencies that are useful on the job.
Promotion
Promotion refers to the process of moving current employees upward in an
organization, placing them in positions that require greater responsibility and
authority while also providing them with perks such as increased pay and other
privileges.
Development
Development refers to the process of providing employees with the means to
improve their knowledge, skills, and capabilities in an effort to increase their job
proficiency and competencies.
Compensation
Compensation refers to the rewards that individual employees receive in exchange
for the work they do for an organization. Some different types of compensation
include the following (Nickels, McHugh, & McHugh 2013, p.311):
• Salary – Fixed amount of pay provided on a weekly, biweekly, or monthly
basis, regardless of the number of hours worked.
• Wages – Set amount of money paid per hour or per day worked.
• Piecework – Amount of money paid for each unit of work produced.
• Commission – Pay based on a percentage of units sold to customers.
• Bonus – Additional pay provided for exceeding minimum requirements or
expectations.
• Profit-sharing – Bonuses paid as a percentage of an organization’s profits.
• Gain-sharing – Bonuses paid when specific goals and objectives are met, such
as an increase in average customer satisfaction or the number of units produced
in a specific time period.
• Stock options – Right to purchase shares of an organization’s stock for a
specific price that is generally lower than the price offered to those outside the
organization.
• Fringe benefits – Perks provided to employees in addition to monetary
compensation. Includes things such as paid vacations, health insurance, and
pension plans.
Recruitment Situations
When HRM professionals are involved in strategic planning processes, they must have a clear
understanding of the situation that requires recruitment and selection. Banfield and Kay (2008,
p.68) identified the following as the most typical recruitment situations:
REPLACEMENT
Focuses on hiring new employees to replace employees who have left the
organization or have been promoted to a new position, leaving their previous
position vacant.
NEW POSITION
Focuses on hiring employees to fill positions that are new to an organization but are
part of an existing office or unit already established in an organization. Such
positions are developed to handle new responsibilities and tasks created by changes
in the work a specific office or unit will perform for an organization.
NEW OFFICE OR UNIT
Focuses on hiring employees to fill multiple positions in a completely new office or
unit that has been established within an organization to handle new responsibilities
and tasks not covered by another office or unit in the organization.
When organizations fill positions, they use different types of employees, depending on an
organization’s needs. The most common types of employees include the following:
FULL-TIME
Refers to permanent employees who work a minimum number of hours per week
and often receive fringe benefits, such as vacation pay and health insurance.
PART-TIME
Refers to permanent employees who work less than the minimum number of hours
per week required for full-time employment. Such employees may receive no
benefits. If they do receive benefits, these often will not be the same as those
provided to full-time employees. For example, a full-time employee may receive two
weeks of paid vacation per year, while a part-time employee working for the same
organization may receive only one week of paid vacation per year.
FLEXIBLE
Refers to permanent employees who work a schedule that differs from an organization’s normal
work schedule. Such employees can enable an organization to have a longer workday. Allowing
employees to be flexible also provides employees with the option of adjusting their schedule to
meet needs in their personal lives. For example, an employee who also is a parent may wish to
adjust his or her schedule to be at home when children return home from school.
CONTINGENT
In addition to the previously mentioned, some organizations hire contingent
workers, which refers to freelancers, consultants, independent contractors, and
other non-permanent employees who are hired for the purpose of completing
specific projects and tasks. Generally, such employees are paid a salary or wage to
complete assigned work, and they do not receive fringe benefits. Contingent workers
are often highly skilled employees who are regarded as experts in their field.
Advantages to Hiring Contingent Workers
The number of contingent workers in the U.S. workforce is on the rise. Depending on how a
contingent worker is defined, some data suggests that they may comprise as much as forty
percent of the workforce (Pofeldt 2015). Other estimates suggest this number is too high, and
contingent workers constitute around thirty-four percent of the U.S. workforce (Quartz, n.d.).
Regardless of which data is correct, contingent workers make up a large percentage of the U.S.
workforce. Many organizations are finding it advantageous to use contingent workers as opposed
to hiring other, more traditional types of workers, such as full-time permanent employees.
According to Fournier (2015), organizations experience several advantages when they hire
contingent workers. These include the following:
Payroll cost savings
Payroll cost savings since contingent employees do not receive benefits such as health
insurance, nor do they receive pay for taking vacation or sick leave.
Payroll cost savings because contingent employees are not paid overtime, regardless
of how many hours they work.
Administrative cost savings
Administrative cost savings because managing contingent employees requires less
time and work by HRM professionals and other managers in an organization.
Payroll cost savings
Payroll and administrative cost savings since employers do not have to collect and pay
taxes from contingent workers’ paychecks.
Increased flexibility
Increased flexibility since contingent workers can be used by an organization on an
as-needed basis. Contingent workers generally do not have a set schedule. Rather,
they work when an organization needs them to work.
Flexibility has an added benefit of possibly eliminating the need to lay off workers.
Organizations can hire a limited number of employees who work as traditional types
of employees, such as full-time staff. When an organization’s workload temporarily
increases or it has a special project that must be completed, it can rely on contingency
workers to do this work rather than hiring permanent employees who are later laid off
when the organization no longer needs them.
Access to expertise
Greater access to expertise since contingent workers often provide organizations with
expertise that is lacking or limited among permanent employees. This is particularly
beneficial when such expertise is needed for only a temporary time. Rather than
spending thousands of dollars to recruit and hire a permanent employee with the
needed expertise, organizations can obtain that expertise through contingent workers
for a significant cost savings.
Although hiring contingent workers can be advantageous, Fournier (2015) noted that
organizations also experience disadvantages when they hire contingent workers. For example,
contingent workers generally work independently, which limits an organization’s ability to
control and “boss” such workers. In addition, contingent workers often set their own hours,
which means they may not be available every time an organization needs them.
Outsourcing
As an alternative method for getting work done, some organizations find it advantageous to
use outsourcing. This refers to the process of contracting with an external, third party to handle
specific functions and work on an organization’s behalf. The third party may work onsite at an
organization’s facilities or they may do their work in their own office.
Some examples of outsourcing include using a third party to handle customer service in a call
center, hiring a third party to design and implement an organization’s computer system, and even
using a third party to manage an organization’s HRM functions. Organizations usually outsource
because a third party can handle a function for less cost and/or that third party can do it more
efficiently and effectively compared to how that function is handled internally by the
organization. According to Bucki (2017), when organizations engage in outsourcing, they
generally experience the following benefits:
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Since they usually save money, they have more funds available for other operations.
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They no longer have to devote time to the outsourced function, giving managers and
employees more time to focus on other activities and improve how those activities are handled.
• Usually, the third parties hired to handle an outsourced function are experts in that area, and
they can do a better job on that function. They bring expertise to the function that may not be
available internally at the organization. If the function is handled more efficiently and
effectively, this may lead to improvements in other functions that interrelate with the outsourced
function.
• Outsourcing can enable an organization to comply with legal regulations that it might struggle
to follow if a function is handled internally. For example, outsourcing to a third party for
financial management and accounting services can help an organization ensure that it complies
with federal requirements regarding financial issues.
If organizations choose to outsource, they must ensure that they have sufficient contracts that
clearly specify the services expected from a third party and how those services should be
handled. A good contract is one that is carefully documented, specifying the details of the
agreement and identifying the parties responsible for carrying out each requirement in a contract.
A good contract also has clear specifications regarding payment, as well as when and how the
contract can be terminated.
Virtual Organizations
Traditionally, organizations tended to be entities that were housed in a single location or
geographic area. In recent decades, technology has enabled people to communicate across the
miles via telephone, email, video chats, and other electronic means. In addition to
communicating through voice and text, technology allows anyone in any location with Internet
access to immediately send documents, photographs, and other records to anyone else in the
world. This has given many organizations the option of operating virtually.
A virtual organization can be defined as a group of individuals who exist and work together
virtually, or electronically, through use of the Internet and other technology that allows them to
communicate and share information without being face-to-face. Like traditional organizations,
virtual organizations strive to achieve common goals and objectives.
• STRUCTURES
TELECOMMUTE
Such organizations are not completely virtual, but they have employees on staff who
telecommute rather than reporting to the organization’s office.
OUTSOURCE
Such organizations have a core staff to handle some of the organization’s work. Other
work is outsourced. Functions that are commonly outsourced include human
resources, marketing, and specialized services such as engineering.
COMPLETELY VIRTUAL
Such organizations do not have physical locations. Instead, all employees and all
functions within the organization are handled virtually.
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CHARACTERISTICS
ASYNCHRONIZATION
Asynchronization refers to the ability to function in a manner that is not
synchronous, which means tasks are not required to be completed at the same time. In
virtual organizations, tasks may not be coordinated to be completed according to a
specific schedule. While deadlines usually do exist, as long as the deadlines are met,
specific tasks usually can be handled at the discretion of those doing the work.
DELOCALIZATION
Delocalization refers to being free from the need to exist in a particular position or
location. Virtual organizations are not dependent on specific spaces and the
limitations of capacity imposed by space.
DEMATERIALIZATION
Dematerialization refers to being free from the constraints of materialization, such
as the maintenance of paper files. Virtual organizations tend to handle the majority of
their operations electronically.
INTEGRATIVE ATOMIZATION
Integrative atomization refers to the process of bringing together the work of
various individuals to produce a completed good or service. In virtual organizations,
the different work tasks are typically completed by workers who are in separate
locations and possibly using independent processes. To achieve a finished good or
service, the work must be coordinated and pieced together.
TEMPORALIZATION
Temporalization refers to being free from the constraints imposed by time. Virtual
organizations tend to function more informally, with work occurring as needed rather
than according to the dictates of a traditional workday or work week.
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GUIDELINES
Generally, the guidelines for HRM that apply to traditional organizations also apply to
virtual organizations. However, managers of virtual organizations should be aware
that successful work in a virtual organization requires employees to have certain
personality traits. Not only must they have the skills to complete the work, they must
have the characteristics needed to do it virtually. These include the following:
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Be self-starters who are able to motivate themselves to get the job done.
Have the ability to communicate effectively via electronic modes, such as
telephones and email.
Have self-sufficiency regarding the use of technology.
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Be able to effectively manage time, meeting deadlines while producing quality
work.
Be results oriented, focused on accomplishing tasks and meeting goals and
objectives.
Managing Virtual Organizations
The P-O-L-C framework discussed in Lesson One can be useful to manage virtual organizations.
However, in virtual environments, managers must recognize that they will need to adjust their
management approach to accommodate virtual distance, which refers to the perceived distance
that occurs among the members of a virtual team when they rely on technology, rather than faceto-face interaction, to communicate and accomplish their work.
According to Lojeski (2010), virtual distance occurs because virtual t …
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