Recruitment activities must begin with a thorough understanding of the position to be filled so that the broad range of potential employees can be narrowed appropriately. The technique commonly used to gain that understanding is known as job analysis. Basically, job analysis is aimed at determining a job description (the activities a job entails)—which was discussed in the previous chapter—and a job specification (the characteristics of the individual who should be hired for the job).⁴ Figure 10.2 shows the relationship of job analysis to job description and job specification.⁵

The U.S. Civil Service Commission has developed a procedure for performing a job analysis. As with all job analysis procedures, the Civil Service procedure uses information gathering as the primary means of determining what workers do and how and why they do it. Naturally, the quality of the job analysis depends on the accuracy of the information gathered. This information is used to develop both a job description and a job specification.⁶

Besides a thorough knowledge of the position the organization is trying to fill, recruiters must be able to pinpoint sources of human resources. The supply of individuals from which to recruit is continually changing, which means that at times, finding appropriate human resources will be much harder than at other times. Human resources specialists in organizations must continually monitor the labor market so that they know where to recruit appropriate people and what kinds of strategies and tactics to use to attract job applicants in a competitive marketplace.⁷

Sources of human resources available to fill a position can be generally categorized in two ways: sources inside the organization and sources outside the organization.

Sources Inside the Organization

 The pool of employees within the organization is one source of human resources. Some individuals who already work for the organization may be well qualified for an open position. Although existing personnel are sometimes moved laterally within an organization, most internal movements are promotions. Promotion from within has the advantages of building employee morale, encouraging employees to work harder in hopes of being promoted, and enticing employees to stay with the organization because of the possibility of future promotions. Companies such as Exxon and General Electric find it especially rewarding to train their managers for advancement within the organization.⁸

human resource inventory

A human resource inventory consists of information about the characteristics of organization members. The focus is on past performance and future potential, and the objective is to keep management up to date about the possibilities for filling a position from within. This inventory should indicate which individuals in the organization would be appropriate for filling a position if it becomes available. In a classic article, Walter S. Wikstrom proposed that organizations keep three types of records that can be combined to maintain a useful human resource inventory.⁹ Although Wikstrom focused on filling managerial positions, slight modifications to his inventory forms would make his records equally useful for filling nonmanagerial positions. In order to make their human resource inventory system more efficient and effective, many organizations computerize records like the ones Wikstrom suggested.

• The first of Wikstrom’s three types of records for a human resource inventory is the management inventory card. The management inventory card in Figure 10.3 has been completed for a fictional manager named Mel Murray. It indicates Murray’s age, year of employment, present position and the length of time he has held it, performance ratings, strengths and weaknesses, the positions to which he might move, when he would be ready to assume these positions, and additional training he would need to fill the positions. In short, this card contains an organizational history of Murray and an indication of what positions he might hold in the future. (Note that Figures 10.3 through 10.5 depict a computerized version of Wikstrom’s human resource inventory system.)

  

• Figure 10.4 shows Wikstrom’s second type of human resource inventory record—the position replacement form. This record focuses on position-centered information rather than the people-centered information maintained on the management inventory card. Note that the form in Figure 10.4 indicates little about Murray but much about the two individuals who could replace him. The position replacement form is helpful in determining what would happen to Murray’s present position if Murray were selected to be moved within the organization or if he decided to leave the organization.

• Wikstrom’s third human resource inventory record is the management manpower replacement chart (see Figure 10.5). This chart presents a composite view of the individuals management considers significant for human resource planning. Note in Figure 10.5 how Murray’s performance rating and promotion potential can easily be compared with those of other employees when the company is trying to determine which individual would most appropriately fill a particular position.

The management inventory card, the position replacement form, and the management manpower replacement chart are three separate record-keeping devices for a human resource inventory. Each form furnishes different data on which to base a hiring-from-within decision. These forms help management answer the following questions:

1. What is the organizational history of an individual, and what potential does that person possess (management inventory card)?

2. If a position becomes vacant, who might be eligible to fill it (position replacement form)?

3. What are the merits of one individual being considered for a position compared to those of another individual under consideration (management manpower replacement chart)?

Overall, Wikstrom’s human resource inventory system can serve as the foundation for succession planning in organizations. Succession planning is the process of determining who will follow whom in various organizational positions. Studies show that it will be among the top five challenges executives face in the future.¹⁰ Gene Diedrich, CEO of Moneta Group, has made succession planning a priority at his company.¹¹ Several years ago, he realized that many of the company’s top employees would be retiring within a few years. To address this challenge, his company formalized a plan to select and mentor younger employees to eventually assume those roles, and today, many of those younger employees are assuming those roles. At companies like Moneta Group, computer software is available to aid managers in keeping track of the organization’s complex human resource inventories and in making better decisions about how employees can best be deployed and developed.¹²

If a position cannot be filled by someone currently employed by the organization, management has available numerous sources of human resources outside the organization. These sources include the following:

1. Competitors—One often-tapped external source of human resources is competing organizations. Because of several advantages in luring human resources away from competitors, this type of piracy has become a common practice. Among the advantages are the following:

   • The individual knows the business.

   • The competitor will have paid for the individual’s training up to the time of hire.

   • The competing organization will probably be weakened somewhat by the loss of the individual.

   • Once hired, the individual will be a valuable source of information about how to best compete with the other organization.

2. Employment agencies—Employment agencies help people find jobs and help organizations find job applicants. Such agencies can be either public or private. Public employment agencies do not charge fees, whereas private ones collect a fee from either the person hired or the organization doing the hiring, once the hire has been finalized.

3. Readers of certain publications—Perhaps the most widely used external source of human resources is the readership of certain publications. To tap this source, recruiters simply place an advertisement in a suitable publication. The advertisement describes the open position in detail and announces that the particular organization is accepting applications from qualified individuals. The type of position to be filled determines the type of publication in which the advertisement is placed. The objective is to advertise in a publication whose readers are likely to be interested in filling the position. An opening for a top-level executive might be advertised in the Wall Street Journal, a training director opening might be advertised in the Journal of Training and Development, and an educational opening might be advertised in the Chronicle of Higher Education.

4. Educational institutions—Many recruiters go directly to schools to interview students who will soon graduate. Liberal arts schools, business schools, engineering schools, junior colleges, and community colleges all have somewhat different human resources to offer. Recruiting efforts should thus focus on the schools with the highest probability of providing human resources appropriate for the open position.

To increase their hiring from educational institutions, Intel Corp. and 24 venture capital firms have created a $3.5 billion strategic alliance called “Invest in America.” The alliance has enlisted 18 technology firms, including Cisco Systems, eBay, Google, and Yahoo!, who have committed to increase their hiring of college graduates. Offering more opportunities to recent graduates is one way U.S. businesses can help support the economy.¹³

Legislation has had a major impact on modern organizational recruitment practices. Managers need to be aware of the laws that govern recruitment efforts. The Civil Rights Act, passed in 1964 and amended in 1972, created the Equal Employment Opportunity Commission (EEOC) to enforce federal laws prohibiting discrimination on the basis of race, color, religion, gender, disability, sexual orientation, national origin, and genetic information in recruitment, hiring, firing, layoffs, and all other employment practices. Such laws include the Pregnancy Discrimination Act,¹⁵ requiring the treatment of pregnancy as a medical disability; the Age Discrimination in Employment Act, prohibiting the arbitrary setting of age limits for job holders; and the Americans with Disabilities Act, prohibiting discrimination against individuals with mental or physical disabilities in the area of employment.

Equal opportunity legislation protects the right of a citizen to work and obtain a fair wage based primarily on merit and performance. The EEOC seeks to uphold this right by overseeing the employment practices of labor unions, private employers, educational institutions, and government bodies.