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HUMAN RESOURCE MANAGEMENT
Dr. Nadia Nasir
Department of Management Sciences
CHAPTER 4 : PERSONEL PLANNING & RECRUITING
Workforce Planning and Forecasting
 Workforce planning ideally precedes recruitment
and selection which differs from succession
planning
2
Planning and Forecasting
Workforce or personnel
planning
 The process of deciding what
positions the firm will have to fill,
and how to fill them.
Succession planning
 The process of deciding how to fill
the company’s most important
executive jobs.
What to forecast?
Overall personnel needs
The supply of inside candidates
The supply of outside candidates
Linking Employer’s Strategy to Plans
Human Resource planning (HRP)
 It is the process of systematically
reviewing human resource
requirements to ensure that the
required number of employees,
with the required skills, are
available when they are needed.
 The objective of HR planning is to
ensure the best fit between
employees and jobs, while
avoiding manpower shortages/
surpluses.
 The three key elements of the HR
planning process are
1. forecasting labor demand,
2. analyzing present labor supply,
and
3. balancing projected labor
demand and supply.
Human Resource Forecasting
Techniques
1. Zero Based Forecasting
 This method uses the organization’s
current level of employment as the
starting point for determining future
staffing needs.
2. Bottom-Up Approach
 A forecasting method in which each
successive level of the organization,
starting with the lowest, forecasts its
employee requirements in order to,
ultimately, provide an aggregate
forecast of employment needs.
HR Forecasting
3. Use Of Mathematical Models
 Mathematical models can assist in
forecasting HR requirements. The
relationship between supply &
demand and the number of
employees needed is a positive one.
4. Simulation.
 Simulation is a technique for
experimenting with a real-world
situation through a mathematical
model representing that situation. A
model is an abstraction of the real
world.
HR Forecasting
5. Forecasting Human Resource
Requirements
 A requirements forecast is an estimate
of the numbers and kinds of
employees the organization will need
at future dates in order to realize its
goals.
6. Forecasting Human Resource
Availability
 Determining whether the firm will be
able to secure employees with the
necessary skills and from what sources
these individuals may be obtained is
called an availability forecast.
Surplus of Employees Forecasted
Restricted Hiring
 When a firm implements a restricted hiring policy, it reduces the
workforce by not replacing employees who leave.
Reduced Hours
 Reaction to a declining demand can also be made by reducing the
total number of hours worked. Instead of continuing a 40-hour
week, management may decide to cut each employee’s time to 30
hours.
When a comparison of requirements and availability indicates a worker
surplus will result, restricted hiring, reduced hours, early retirements, or
layoffs may be required to correct the situation.
Surplus of Employees Forecasted
• Early retirement of some
present employees is
another means of reducing
the supply of workers.
Early
Retirement
• At times, the firm has no
choice but to actually lay off
part of its workforce.
Layoffs
Shortage of Workers Forecasted
•A shortage of personnel often means that new approaches to
recruiting must be used. The organization may have to recruit in
in different geographical areas than in the past, explore new
methods, and seek different kinds of candidates.
Creative
Recruiting
•Firms competing for workers in a high-demand situation may have to
rely on compensation incentives.
•e.g. such as four-day work weeks, flexible working hours, part-time
employment, and child care centers.
Compensation
Incentives
•Special training programs may be needed to prepare previously
unemployable individuals for positions with a firm. Remedial
education and skills training may help attract individuals to a
particular company.
Training Programs
•Selection criteria that screen out certain workers may have to be
altered to ensure that enough people are available to fill jobs. For
instance, instead of desiring extensive work experience, a firm may be
may be willing to hire a less experienced worker and train him or her
to do the job.
Different Selection
Standards
Challenges/Issues of Managing Human
Resources in present era
To Attract People
 People will be interested to join any organization if it is providing
them quality working environment, attractive benefit and
opportunities to excel in future. Keeping in view the
opportunities in the market, the first issues will be to attract
good people for your organization.
To Develop People
 Development is related to provide the opportunities for training
and development to match the skills to job in particular areas. It
requires careful need assessment for training and selecting
effective training methods and tools. After attracting/selecting,
continuous development of workforce of the organization leads
towards development of the organization.
Challenges/Issues of Managing Human
Resources in present era
 To Motivate People
 Motivation means to influence performance of
others and to redirect the efforts in desirable
direction by using different motivational tools that
can help in fulfilling the mission of organization.
 To Keep Talented People
 This is related to retention of workforce in
organization and to take steps that can prevent
undesirable detachments of talented and
motivated workers from the organization.
Importance of Recruitment & Selection
 Great companies
“ first got the right
people on the bus, the
wrong people off the
bus, and the right
people in the right
seats – and then they
figured out where to
drive it.”
Recruitment
 Recruitment is the process of gathering a group of qualified
applicants. It includes tasks like writing a job description and job
postings, and going through the steps of posting it internally
(e.g. bulletin boards, intranet, email notification), externally (e.g.
newspaper ads, agencies, internet), or both.
 It is the process of attracting individuals on a timely basis, in
sufficient numbers and with appropriate qualifications, and
encouraging them to apply for jobs with an organization.
Recruitment
Goals of Recruitment
Mainly there are two recruitment goals
To attract qualified applicants
1. Recruiting process is used to create the pool of
qualified applicants. By qualified applicants we mean
those applicants who are having abilities that are
perfect match with the job requirements.
To discourage non qualified applicants.
2. Second goal of recruitment is to avoid nonqualified
applicants. When recruiting is based upon careful
designing of the job disruption and job specification
most of the applicants having irrelevant
qualifications are eliminated from the list of
potential applicants which makes recruiting process
more effective and easier.
Steps in Recruitment and Selection Process
The recruitment and selection process is a series of hurdles
aimed at selecting the best candidate for the job.
Recruitment and Selection Process
• Job Analysis
• Job Qualifications
• Job Description
• Recruitment &
Selection
Objectives.
• Recruitment &
Selection Strategy
• Internal Sources
• External Sources
• Screening Resumes
and Applications
• Initial Interview
• Intensive Interview
• Testing
• Assessment Centers
• Background
Investigation.
• Physical Exam
• Selection Decision and
Job Offer
Planning for
Recruitment & Selection
Step 1
Recruitment: Locating
Prospective Candidates
Step 2
Selection:
Evaluation and Hiring
Step 3
Measuring Recruiting Effectiveness
 What to measure and how to measure
 How many qualified applicants were attracted from each
recruitment source?
 Assessing both the quantity and the quality of the applicants
produced by a source.
 High performance recruiting
 Applying best-practices management techniques to
recruiting.
 Using a benchmarks-oriented approach to analyzing and
measuring the effectiveness of recruiting efforts such as employee
referrals.
Selection Devices that Could be used
to Initially Screen Applicants
21
Source: Kevin Carlson et al., “Recruitment Evaluation: The Case for Assessing the Quality of Applicants Attracted,” Personnel Psychology 55 (2002), p. 470.
Recruiting Yield Pyramid
22
Recruiting yield pyramid: The historical arithmetic relationships between
recruitment leads and invitees, invitees and interviews, interviews and
offers made, and offers made and offers accepted.
Yield ratio of stage n= No. of Candidates resulting from stage n
Total No. of candidates who come in stage n
Internal Sources of Candidates:
Hiring from Within
Advantages
 Fore knowledge of
candidates’ strengths and
weaknesses
 More accurate view of
candidate’s skills
 Candidates have a stronger
commitment to the
company
 Increases employee morale
 Less training and orientation
required
Disadvantages
 Failed applicants become
discontented
 Time wasted interviewing
inside candidates who will
not be considered
 Inbreeding of the status quo
Finding Internal Candidates
Job posting
 Publicizing an open job to employees (often by posting it on
bulletin boards) and listing its attributes.
Rehiring former employees
Advantages:
 They are known quantities.
 They know the firm and its culture.
Dis Advantages:
 They may have less-than positive attitudes.
 Rehiring may sent the wrong message to current
employees about how to get ahead.
Finding Internal Candidates
(cont’d)
Succession planning
 The process of ensuring a suitable supply of successors
for current and future key jobs.
Succession planning steps:
i. Identifying and analyzing key jobs.
ii. Creating and assessing candidates.
iii. Selecting those who will fill the key positions.
Outside Sources of Candidates
Advertising
 The Media: selection of the best medium depends on the
positions for which the firm is recruiting.
• Newspapers (local and specific labor markets)
• Trade and professional journals
• Internet job sites
• Marketing programs
 Constructing an effective ad
• Wording related to job interest factors should evoke the
applicant’s attention, interest, desire, and action (AIDA) and
create a positive impression of the firm.
Activity: JOB ADVERTISEMENT
 Write a newspaper advertisement for the job description that you have already
written in the class.
 Include position title, brief description, qualifications, salary range, and contact
information.
 The source of information for both your “advertisement” and “job description” is the
local newspapers and the web sources.
 You are asked to read and/or surf to locate 3-5 jobs for which you will be qualified
after you complete your degree. Copy each of these ads. Look for ads that give rather
complete descriptions of job and the qualifications for these jobs. Do not turn in that
copy! The project requires “content” in the ads, not just “image ads”. You must
consolidate ideas from multiple sources before creating your ad.
 Review 3-6 ads to be able to consolidate them so that you can create an ad that also
contains enough information to allow candidates to self-select themselves (and
qualifications) for the job. Make your ads very thorough and borrow ideas and text
generously from the ads that you review.
27
QUESTIONS

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4 - Planning Jobs.pptx

  • 1. HUMAN RESOURCE MANAGEMENT Dr. Nadia Nasir Department of Management Sciences CHAPTER 4 : PERSONEL PLANNING & RECRUITING
  • 2. Workforce Planning and Forecasting  Workforce planning ideally precedes recruitment and selection which differs from succession planning 2
  • 3. Planning and Forecasting Workforce or personnel planning  The process of deciding what positions the firm will have to fill, and how to fill them. Succession planning  The process of deciding how to fill the company’s most important executive jobs. What to forecast? Overall personnel needs The supply of inside candidates The supply of outside candidates
  • 5. Human Resource planning (HRP)  It is the process of systematically reviewing human resource requirements to ensure that the required number of employees, with the required skills, are available when they are needed.  The objective of HR planning is to ensure the best fit between employees and jobs, while avoiding manpower shortages/ surpluses.  The three key elements of the HR planning process are 1. forecasting labor demand, 2. analyzing present labor supply, and 3. balancing projected labor demand and supply.
  • 6. Human Resource Forecasting Techniques 1. Zero Based Forecasting  This method uses the organization’s current level of employment as the starting point for determining future staffing needs. 2. Bottom-Up Approach  A forecasting method in which each successive level of the organization, starting with the lowest, forecasts its employee requirements in order to, ultimately, provide an aggregate forecast of employment needs.
  • 7. HR Forecasting 3. Use Of Mathematical Models  Mathematical models can assist in forecasting HR requirements. The relationship between supply & demand and the number of employees needed is a positive one. 4. Simulation.  Simulation is a technique for experimenting with a real-world situation through a mathematical model representing that situation. A model is an abstraction of the real world.
  • 8. HR Forecasting 5. Forecasting Human Resource Requirements  A requirements forecast is an estimate of the numbers and kinds of employees the organization will need at future dates in order to realize its goals. 6. Forecasting Human Resource Availability  Determining whether the firm will be able to secure employees with the necessary skills and from what sources these individuals may be obtained is called an availability forecast.
  • 9. Surplus of Employees Forecasted Restricted Hiring  When a firm implements a restricted hiring policy, it reduces the workforce by not replacing employees who leave. Reduced Hours  Reaction to a declining demand can also be made by reducing the total number of hours worked. Instead of continuing a 40-hour week, management may decide to cut each employee’s time to 30 hours. When a comparison of requirements and availability indicates a worker surplus will result, restricted hiring, reduced hours, early retirements, or layoffs may be required to correct the situation.
  • 10. Surplus of Employees Forecasted • Early retirement of some present employees is another means of reducing the supply of workers. Early Retirement • At times, the firm has no choice but to actually lay off part of its workforce. Layoffs
  • 11. Shortage of Workers Forecasted •A shortage of personnel often means that new approaches to recruiting must be used. The organization may have to recruit in in different geographical areas than in the past, explore new methods, and seek different kinds of candidates. Creative Recruiting •Firms competing for workers in a high-demand situation may have to rely on compensation incentives. •e.g. such as four-day work weeks, flexible working hours, part-time employment, and child care centers. Compensation Incentives •Special training programs may be needed to prepare previously unemployable individuals for positions with a firm. Remedial education and skills training may help attract individuals to a particular company. Training Programs •Selection criteria that screen out certain workers may have to be altered to ensure that enough people are available to fill jobs. For instance, instead of desiring extensive work experience, a firm may be may be willing to hire a less experienced worker and train him or her to do the job. Different Selection Standards
  • 12. Challenges/Issues of Managing Human Resources in present era To Attract People  People will be interested to join any organization if it is providing them quality working environment, attractive benefit and opportunities to excel in future. Keeping in view the opportunities in the market, the first issues will be to attract good people for your organization. To Develop People  Development is related to provide the opportunities for training and development to match the skills to job in particular areas. It requires careful need assessment for training and selecting effective training methods and tools. After attracting/selecting, continuous development of workforce of the organization leads towards development of the organization.
  • 13. Challenges/Issues of Managing Human Resources in present era  To Motivate People  Motivation means to influence performance of others and to redirect the efforts in desirable direction by using different motivational tools that can help in fulfilling the mission of organization.  To Keep Talented People  This is related to retention of workforce in organization and to take steps that can prevent undesirable detachments of talented and motivated workers from the organization.
  • 14. Importance of Recruitment & Selection  Great companies “ first got the right people on the bus, the wrong people off the bus, and the right people in the right seats – and then they figured out where to drive it.”
  • 15. Recruitment  Recruitment is the process of gathering a group of qualified applicants. It includes tasks like writing a job description and job postings, and going through the steps of posting it internally (e.g. bulletin boards, intranet, email notification), externally (e.g. newspaper ads, agencies, internet), or both.  It is the process of attracting individuals on a timely basis, in sufficient numbers and with appropriate qualifications, and encouraging them to apply for jobs with an organization.
  • 17. Goals of Recruitment Mainly there are two recruitment goals To attract qualified applicants 1. Recruiting process is used to create the pool of qualified applicants. By qualified applicants we mean those applicants who are having abilities that are perfect match with the job requirements. To discourage non qualified applicants. 2. Second goal of recruitment is to avoid nonqualified applicants. When recruiting is based upon careful designing of the job disruption and job specification most of the applicants having irrelevant qualifications are eliminated from the list of potential applicants which makes recruiting process more effective and easier.
  • 18. Steps in Recruitment and Selection Process The recruitment and selection process is a series of hurdles aimed at selecting the best candidate for the job.
  • 19. Recruitment and Selection Process • Job Analysis • Job Qualifications • Job Description • Recruitment & Selection Objectives. • Recruitment & Selection Strategy • Internal Sources • External Sources • Screening Resumes and Applications • Initial Interview • Intensive Interview • Testing • Assessment Centers • Background Investigation. • Physical Exam • Selection Decision and Job Offer Planning for Recruitment & Selection Step 1 Recruitment: Locating Prospective Candidates Step 2 Selection: Evaluation and Hiring Step 3
  • 20. Measuring Recruiting Effectiveness  What to measure and how to measure  How many qualified applicants were attracted from each recruitment source?  Assessing both the quantity and the quality of the applicants produced by a source.  High performance recruiting  Applying best-practices management techniques to recruiting.  Using a benchmarks-oriented approach to analyzing and measuring the effectiveness of recruiting efforts such as employee referrals.
  • 21. Selection Devices that Could be used to Initially Screen Applicants 21 Source: Kevin Carlson et al., “Recruitment Evaluation: The Case for Assessing the Quality of Applicants Attracted,” Personnel Psychology 55 (2002), p. 470.
  • 22. Recruiting Yield Pyramid 22 Recruiting yield pyramid: The historical arithmetic relationships between recruitment leads and invitees, invitees and interviews, interviews and offers made, and offers made and offers accepted. Yield ratio of stage n= No. of Candidates resulting from stage n Total No. of candidates who come in stage n
  • 23. Internal Sources of Candidates: Hiring from Within Advantages  Fore knowledge of candidates’ strengths and weaknesses  More accurate view of candidate’s skills  Candidates have a stronger commitment to the company  Increases employee morale  Less training and orientation required Disadvantages  Failed applicants become discontented  Time wasted interviewing inside candidates who will not be considered  Inbreeding of the status quo
  • 24. Finding Internal Candidates Job posting  Publicizing an open job to employees (often by posting it on bulletin boards) and listing its attributes. Rehiring former employees Advantages:  They are known quantities.  They know the firm and its culture. Dis Advantages:  They may have less-than positive attitudes.  Rehiring may sent the wrong message to current employees about how to get ahead.
  • 25. Finding Internal Candidates (cont’d) Succession planning  The process of ensuring a suitable supply of successors for current and future key jobs. Succession planning steps: i. Identifying and analyzing key jobs. ii. Creating and assessing candidates. iii. Selecting those who will fill the key positions.
  • 26. Outside Sources of Candidates Advertising  The Media: selection of the best medium depends on the positions for which the firm is recruiting. • Newspapers (local and specific labor markets) • Trade and professional journals • Internet job sites • Marketing programs  Constructing an effective ad • Wording related to job interest factors should evoke the applicant’s attention, interest, desire, and action (AIDA) and create a positive impression of the firm.
  • 27. Activity: JOB ADVERTISEMENT  Write a newspaper advertisement for the job description that you have already written in the class.  Include position title, brief description, qualifications, salary range, and contact information.  The source of information for both your “advertisement” and “job description” is the local newspapers and the web sources.  You are asked to read and/or surf to locate 3-5 jobs for which you will be qualified after you complete your degree. Copy each of these ads. Look for ads that give rather complete descriptions of job and the qualifications for these jobs. Do not turn in that copy! The project requires “content” in the ads, not just “image ads”. You must consolidate ideas from multiple sources before creating your ad.  Review 3-6 ads to be able to consolidate them so that you can create an ad that also contains enough information to allow candidates to self-select themselves (and qualifications) for the job. Make your ads very thorough and borrow ideas and text generously from the ads that you review. 27