Problem:
I agree with this statement. Human resources planning is the primary foundation of HRM for the reason that it ensures that applicants are an organizational fit with a company. An organization's effectiveness is predicated upon HRM's ability to adjust to "environmental changes, demographic shifts, technological changes" and increased global competitiveness. (Jackson and Schuler, 1990). "Human resources is part of the strategic business planning process." (Jackson et al, 1990). HR planning is a fundamental asset in organizations for policy and procedure development, regulatory compliancy, and merger and acquisitions. Every aspect of forward movement within an organization is conducted as a direct result of strategic planning.
Advantages of employee referrals include:
- Knowledgeable and/or qualified candidates that are competent in task orientation and product development.
- Candidates who have seniority within the company.
Cost effectiveness in the recruitment stages of employment.
- Produce top-performing employees
- Motivate employees to continue employment.
- Higher retention rates
Disadvantages of employee referrals may include:
- Favoritism
- Nepotism
- Outdated program
- "Burdensome administrative rules and processes." (Smarthire, 2010).
- Unattainable goals