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CHAPTER 7 • Managing Human Resources 227
overall organizational goals and the resulting revenue forecast provide the major input in recruitment
determining the organization’s HR requirements. Locating, identifying, and attracting capable
After assessing both current capabilities and future needs, managers can estimate tal- applicants
ent shortages—both in number and in kind—and highlight areas in which the organization
is overstaffed. They can then develop a plan that matches these estimates with forecasts of
future labor supply. Employment planning not only guides current staffing needs but also
projects future employee needs and availability.

2A How Do Organizations Recruit Employees?
Once managers know their current staffing levels—understaffed or overstaffed—they can be-
gin to do something about it. If vacancies exist, they can use the information gathered through
job analysis to guide them in recruitment—that is, the process of locating, identifying, and
attracting capable applicants. On the other hand, if employment planning indicates a surplus,
managers may want to reduce the labor supply within the organization and initiate downsiz-
ing or restructuring activities.

Needed! Outstanding Job Applicants!
Now . . . how do we get those?

Where doeS a manager recrUit aPPLicantS? The Internet has become a popu-
lar approach for recruiting job applicants, although there are other sources to find them.
Exhibit 7–3 offers some guidance. The source that’s used should reflect the local labor
market, the type or level of position, and the size of the organization.
Which recruiting sources tend to produce superior applicants? Most studies have found that
5
employee referrals generally produce the best applicants. Why? First, applicants referred by
current employees are prescreened by those employees. Because the recommenders know both
6
the job and the person being recommended, they tend to refer well-qualified applicants. Second,
because current employees often feel that their reputation in the organization is at stake with a
referral, they tend to make referrals only when they are reasonably confident that the referral
won’t make them look bad. However, managers shouldn’t always opt for the employee-referred
applicant; such referrals may not increase the diversity and mix of employees.

Exhibit 7–3 Recruiting Sources

Source AdvAntAgeS diSAdvAntAgeS
Internet Reaches large numbers of Generates many
people; can get immediate unqualified candidates
feedback
Employee referrals Knowledge about the May not increase the
organization provided by diversity and mix of
current employee; can employees
generate strong candidates
because a good referral
reflects on the recommender
Company Web site Wide distribution; can be Generates many
targeted to specific groups unqualified candidates
College recruiting Large centralized body of Limited to entry-level
candidates positions
Professional recruiting Good knowledge of industry Little commitment to
organizations challenges and requirements specific organization

Source: Robbins, Stephen P., Coulter, Mary, Management, 13th Ed., © 2016, p. 346. Reprinted
and electronically reproduced by permission of Pearson Education, Inc., New York, NY.