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1. HUMAN RESOURCE
MANAGEMENT
HUMAN RESOURCE
PLANNING &
RECRUITMENT

2. Recruitment and selection
ideally starts with workforce
planning.
if you don’t know what your
teams employment needs
will be in the next few
months, why should you be
hiring?
Workforce Planning And Forecasting

3. Workforce (or employment or
personnel) planning is the process
of deciding what positions the firm
will have to fill, and how to fill them.
It embraces all future positions,
from maintenance clerk to CEO.
However, most firms call the
process of deciding how to fill
executive jobs succession planning.
Workforce Planning And Forecasting

4. HR Planning Considerations…
• Organizational growth
• New products, services, areas, industries
• New skills required
• Organizational stage
• Organizational structure change
• Budget

5. Factors That Determine HR Plans
Strategy of the organization
Culture of the organization
Financial environment
Current organizational Situation
Time-Horizon
Economic Factor
Social Factor
Demographic Factors
Competition
Technological Factors
Growth and Expansion of Business

6. Employment planning should reflect
the firms strategic plans.
Plans to enter new businesses or reduce costs all
influence the types of positions you’ll need to fill (or
eliminate.
Strategic issues are always crucial.
In the short term, there’s not much
employers can do to overcome
recessions, housing bubbles, or increases
or decreases in consumer spending.
Managers should control their strategy
Strategy and Workforce Planning

7. Strategy and Workforce Planning

8.  Like all plans, personnel plans require some forecasts or estimates
Strategy and Workforce Planning

9. How many people will we need?
Managers consider several factors like
 Demographics, growth plans, and turnover
history etc.
Forecasting workforce demand starts with
estimating what the demand will be for your
products or services.
Short term, management should be concerned
with daily, weekly, and seasonal forecasts. for
instance, that Mother s Day produces a
jump in business and a need for additional
store staff.
Forecasting Personnel Needs (Labor
Demand)

10. How many people will we need?
Looking out a year or two isn’t so easy.
Managers can follow industry publications and economic
forecasts closely.
Forecasting Personnel Needs (Labor
Demand)

11. Basic process of forecasting personnel needs :
Forecast revenues first.
Then estimate the size of the staff required to support this
sales volume.
Managers must also consider other, strategic factors like
projected turnover,
decisions to upgrade (or downgrade) products or
services,
productivity changes, and
 financial resources.
Forecasting Personnel Needs (Labor
Demand)

12. Simple tools for projecting personnel needs
TREND ANALYSIS
Studying variations in the firms employment
levels over the last few years.
For example, you might compute the number of
employees at the end of each of the last 5 years, or
perhaps the number in each subgroup (like sales,
production, secretarial, and administrative).
The aim is to identify trends that might
continue into the future.
Forecasting Personnel Needs (Labor
Demand)

13. Simple tools for projecting personnel needs
TREND ANALYSIS
Trend analysis can provide an initial estimate of future staffing
needs, but employment levels rarely depend just on the passage of
time.
Other factors (like changes in sales volume and productivity)
also affect staffing needs.
 Carefully studying the firms historical and current workforce
demographics and voluntary withdrawals (due to retirements and
resignations, for instance) can help reveal impending labor force
needs.
Forecasting Personnel Needs (Labor
Demand)

14. Simple tools for projecting
personnel needs
RATIO ANALYSIS
Making forecasts based on the
historical ratio between (1) some
causal factor (like sales volume)
and (2) the number of employees
required (such as number of
salespeople).
Forecasting Personnel Needs (Labor
Demand)
For example, suppose a
salesperson traditionally
generates $500,000 in
sales. If the sales revenue
to salespeople ratio
remains the same, you
would require six new
salespeople next year
(each of whom produces
an extra $500,000) to
produce a hoped-for extra
$3 million in sales.

15. Simple tools for projecting personnel
needs
RATIO ANALYSIS
Drawbacks
Like trend analysis, ratio analysis assumes
that productivity remains about the same
for instance, that you can t motivate each
salesperson to produce much more than
$500,000 in sales. If sales productivity
were to rise or fall, the ratio of sales to
salespeople would change
Forecasting Personnel Needs (Labor
Demand)

16. Simple tools for projecting
personnel needs
THE SCATTER PLOT
A scatter plot shows graphically
how two variables such as sales and
your firms staffing levels are
related.
If they are, then if you can forecast
the business activity (like sales),
you should also be able to estimate
your personnel needs.
Forecasting Personnel Needs (Labor
Demand)
For example, suppose a 500-
bed hospital expects to expand
to 1,200 beds over the next 5
years. The human resource
director wants to forecast how
many registered nurses they’ll
need. The human resource
director realizes she must
determine the relationship
between size of hospital (in
terms of number of beds) and
number of nurses required.
She calls eight hospitals of
various sizes and gets the
following figures:.

17. Simple tools for projecting
personnel needs
THE SCATTER PLOT
Forecasting Personnel Needs (Labor
Demand)

18. Simple tools for projecting personnel needs
THE SCATTER PLOT
Drawbacks
1. They generally focus on historical sales/personnel relationships and assume
that the firms existing activities will continue as is.
2. They tend to support compensation plans that reward managers for
managing ever-larger staffs, irrespective of the company s strategic needs.
3. They tend to institutionalize existing ways of doing things, even in the face
of change.
Forecasting Personnel Needs (Labor
Demand)

19. Simple tools for projecting personnel needs
MARKOV ANALYSIS
Also known as Transition analysis.
forecast availability of internal job candidates. Markov analysis
involves creating a matrix that shows the probabilities that
employees in the chain of feeder positions for a key job (such as
from junior engineer, to engineer, to senior engineer, to
engineering supervisor, to directorof engineering)
Forecasting Personnel Needs (Labor
Demand)

20. Knowing your staffing needs
satisfies only half the staffing
equation.
Next, you have to estimate the
likely supply of both inside and
outside candidates.
The main task here is determining
which current employees might
be qualified for the projected
openings.
For this you need to know current
employees skills sets their current
qualifications.
Forecasting the Supply of Inside
Candidates

21. REPLACEMENT CHARTS
Forecasting the Supply of Inside
Candidates
 MANUAL SYSTEMS
 Firms use manual devices to
track employee qualifications.
 Thus a personnel inventory and
development record form
compiles qualifications
information on each employee.
The information includes
education, company-sponsored
courses taken, career and
development interests,
languages, desired
assignments, and skills.

22. Forecasting the Supply of Inside
Candidates
COMPUTERIZED SKILLS
INVENTORIES
Larger firms obviously can’t
track the qualifications of
hundreds or thousands of
employees manually.
Larger employers therefore
computerize this
information, using various
packaged software systems
such as Survey Analytics s
Skills Inventory Software.

23. Forecasting the Supply of Outside
Candidates
If there won t be enough inside candidates to fill the anticipated
openings (or you want to go outside for another reason), you will
turn to outside candidates.
Developing an Action Plan to Match Projected
Labor Supply and Labor Demand
The staffing plan should identify the positions to be filled,
potential internal and external sources for these positions, the
required training, development, and promotional activities
moving people into the positions will entail, and the resources
that implementing the staffing plan will require.

24. Forecasting as a Part of Human Resource Planning
DEMAND
FORECASTING
SUPPLY FORECASTING
Determine
organizational
objectives
Demand
forecast for each
objective
Aggregate
demand forecast
Does aggregate
supply meet
aggregate
demand?
Go to feasibility analysis steps
Choose human
resource programs
External programs
•Recruiting
•External selection
•Executive exchange
Internal programs
•Promotion
•Transfer
•Career planning
•Training
•Turnover control
Internal supply forecast External supply forecast
Aggregate supply
forecast
No
Yes

25. Chapter 6, slide 25
RECRUITING
Recruiting brings together
those with jobs to fill those seeking jobs
and
Once an organization identifies its human resource needs
through employment planning, it can begin recruiting
candidates for actual or anticipated vacancies.

26. •Recruitment
The process of locating, identifying, and attracting capable
applicants.
So recruitment is the process of finding qualified people and
encouraging them to apply for work with the firm because the
employer needs to attract qualified applicants, not just
applicants.
RECRUITING

27. Chapter 6, slide 27
THE NEED FOR EFFECTIVE RECRUITING
Why Recruiting Is Important?
recruiting provides information that will
attract a significant pool of qualified
candidates and discourage unqualified ones
from applying.
 recruiters promote the organization to
prospective applicants.

28. What Makes Recruiting a
Challenge?
organization’s image
job attractiveness
internal organizational policies
government policy and laws
recruiting costs
THE NEED FOR EFFECTIVE RECRUITING

29. Recruiting Sources
The Internet is blazing
trails in recruiting
practices
internal
searches
employee
referrals
external
searches
online and
alternative

30. Organizations that promote from within identify
current employees for job openings
by having individuals bid for jobs
by using their HR management system
by utilizing employee referrals
Recruiting Sources
internal search

31. Advantages
 good public relations
 confidence building
 encouragement of employees and members of protected groups
 knowledge of existing employee performance
 cost-savings
 candidates’ knowledge of the organization
 opportunity to develop mid- and top-level managers
Disadvantages
 possible inferiority of internal candidates
 infighting and morale problems
 reluctance
Promoting from Within

32. Current employees can be asked to recommend recruits.
Advantages:
the employee’s motivation to make a good recommendation
the availability of accurate job information for the recruit
employee referred tend to be more acceptable applicants, more likely to
accept an offer, and have a higher survival rate
Disadvantages:
the possibility of friendship being confused with job performance
the potential for nepotism
the potential for adverse impact
employee
referrals

33. Recruiting via the Internet
Most employers recruit
through their own Web sites.
The CareerBuilder.com iPhone
application offers a unique way
to search nearly 2 million jobs
on CareerBuilder.com, the
largest U.S. job site.
OUTSIDE SOURCES
OF CANDIDATES

34. Recruiting via the Internet
social networking sites such as
Facebook and LinkedIn can be
good source.
OUTSIDE SOURCES OF CANDIDATES

35. Advertisements: Must decide type and location of ad, depending
on job; decide whether to focus on job (job description) or on
applicant (job specification).
Three factors influence the response rate:
identification of the organization
labor market conditions
the degree to which specific requirements are listed.
OUTSIDE SOURCES OF CANDIDATES
external
searches

38. OUTSIDE SOURCES OF CANDIDATES
Employment Agencies:
 public or state employment services focus on helping unemployed
individuals with lower skill levels to find jobs
www.careeronestop.org
 private employment agencies provide more comprehensive services and
are perceived to offer positions and applicants of a higher caliber .
 management consulting firms (“headhunters”) search candidates for mid-
and upper-level executive placement.
 executive search firms screen potential mid/top-level candidates while
keeping prospective employers anonymous

39. OUTSIDE SOURCES OF CANDIDATES
Schools, colleges, and universities:
 may provide entry-level or experienced workers through their
placement services
may also help companies establish cooperative education
assignments and internships .

40. Job fairs:
Attended by company recruiters seeking resumes and info from
qualified candidates
Virtual online job fairs could bring employers and job seekers together
online by logging into a specific Web site at a certain time. Some sites
use avatars as candidates and recruiters.

41. Temporary help services:
temporary employees help organizations meet short-term fluctuations in
HRM needs
older workers can also provide high-quality help.
Employee leasing:
trained workers are employed by a leasing company, which provides them
to employers when needed for a flat fee.
typically remain with an organization for longer periods of time .
Independent contractors:
do specific work either on or off the company’s premises
costs of regular employees (i.e. taxes and benefits costs) are not incurred
recruiting
alternatives