Human resources planning

Resource and Talent
planning
MATHUSHAN.P

HR Strategy: What is it?
• HR Strategy connects the business strategy with the effort of Human Resources to
build a better and competitive organization and aligns top executives with the HR
team
• Sets clear objectives for HR in the areas of the talent development, succession
planning and organizational development to ensure the future of the organization
• Defines the key principles for the compensation and organizational design strategy
as the organization keeps itself thin and quick
• Brings a clear border between global and local decision making processes allowing
to act to HR Manager autonomously
• Defines key areas which will be used as the competitive advantage on the job
market
• Identifies gaps in the people management area which have to be improved in a
defined time frame

Strategic Plan
The Company’s plan for how it will match its internal strengths
and weaknesses with its external opportunities and threats to
maintain a competitive advantage.
strategy is a term that refers to a complex web of thoughts,
ideas, insights, experiences, goals, expertise, memories,
perceptions, and expectations that provides general guidance for
specific actions in pursuit of particular ends.

Strategic HR
• Primary focus on achieving of business and HR goals and objectives.
Stimulating dialogue among top executives to shape the HR strategy
• Aligning the reward system and the compensation strategy around general
business goals to ensure the required performance of employees.
• Running succession planning program for the entire organization to ensure
the smooth transition of know-how.
• Constant redesign of HR processes to allow employees to be creative and
innovative, while sticking to general HR policies and procedures.
• Designing training programs that ensure the development of the
corporate culture

Strategic HR management is defined as
Integrating human resource management strategies and systems
to achieve the overall mission, strategies, and success of the firm
while meeting the needs of employees and other stakeholders.

Strategic Role for HR
• The strategic HR role means that HR professionals are
proactive in addressing business realities and focusing on
future business needs, such as strategic planning,
compensation strategies, the performance of HR, and
measuring its results.

Areas where strategic contributions can be made by
HR are
• Evaluating mergers and acquisitions for organizational ―compatibility,‖ structural
changes, and staffing needs
• Conducting workforce planning to anticipate the retirement of employees at all
levels and identify workforce expansion in organizational strategic plans
• compensation and incentives plan as new products
• Instituting HR management systems to reduce administrative time, equipment,
and staff by using HR technology
• Working with executives to develop a revised sales

Nine broad areas of activities of HRM.
• Human Resource Planning
• Design of the Organization and Job
• Selection and Staffing
• Training and Development
• Organizational Development
• Compensation and Benefits
• Employee Assistance
• Union/ Labor Relations
• Personnel Research and Information System

Human Resource Planning
The objective of HR Planning is to ensure that the organization
has the right types of persons at the right time at the right place.
It prepares human resources inventory with a view to assess
present and future needs, availability and possible shortages in
human resource.
HR Planning forecast demand and supplies and identify sources
of selection. HR Planning develops strategies both long-term and
short-term, to meet the man-power requirement.

According to Wikstrom, Human Resource Planning consists of a series of
activities, viz.,
(a) Forecasting future manpower requirements, either in terms of mathematical
projections of trends in the economic environment and developments in industry, or
in terms of judgmental estimates based upon the specific future plans of a company
(b) Making an inventory of present manpower resources and assessing the extent to
which these resources are employed optimally
(c) Anticipating manpower problems by projecting present resources into the future
and comparing them with the forecast of requirements to determine their adequacy,
both quantitatively and qualitatively
(d) Planning the necessary programmes of requirements, selection, training,
development, utilization, transfer, promotion, motivation and compensation to
ensure that future manpower requirements are properly met.

Definition of HRP
• According to Vetter
HRP is the process by which management determines how the organization
should move from its current man power position to desired manpower
position. Through planning, management strives to have the right time, doing
things which result in both the organization and individual receiving
maximum long run benefits.
• According to Gordon Mc Beath
HRP is concerned with two things: Planning of manpower requirements and
Planning of Manpower supplies.

• According to Beach
HRP is a process of determining and assuming that the organization will have
an adequate number of qualified persons, available at proper times,
performing jobs which meet the needs of the enterprise and which provides
satisfaction for the individuals involved.
Human resource planning in the establishment phase of the employment
cycle requires that an organization constantly monitor and plan:
• the number of employees required
• their qualifications, including skills, previous experience and knowledge
• when and where these employees will be needed

HRP is a Four-Phased Process.
1. The first phase involves the gathering and analysis of data through
manpower inventories and forecasts,
2. The second phase consists of establishing manpower objectives and
policies and gaining top management approval of these.
3. The third phase involves designing and implementing plans and
promotions to enable the organization to achieve its manpower
objectives.
4. The fourth phase is concerned with control and evaluation of manpower
plans to facilitate progress in order to benefit both the organization and
the individual.

Nature of Human resource planning
• It is the process of analyzing and identifying the availability and the need
for human resources so that the organization can meet its objectives.
• The focus of HR planning is to ensure that the organization has the right
number of human resources, with the right capabilities, at the right times,
and in the right places.
• In HR planning, an organization must consider the availability and
allocation of people to jobs over long periods of time, not just for the next
month or the next year

Objectives of Human Resource Planning
• To ensure optimum utilization of human resources currently available in
the organization.
• To assess or forecast the future skill requirement of the Organization.
• To provide control measures to ensure that necessary resources are
available as and when required.

The importance of HR
• Future Personnel Needs
• Part of Strategic Planning
• Creating Highly Talented Personnel
• Foundation for Personnel Functions
• Increasing Investments in Human Resources
• Resistance to Change
• Succession Planning

• A series of specified reasons are there that attaches importance to
manpower planning and forecasting exercises. They are elaborated below
1. To link manpower planning with the organizational planning
2. To determine recruitment levels.
3. To anticipate redundancies.
4. To determine optimum training levels.
5. To provide a basis for management development programs.
6. To cost the manpower.
7. To assist productivity bargaining.
8. To assess future accommodation requirement.

What is the goal of workforce planning?
• Workforce planning is the systematic process for identifying and.
addressing the gaps between the workforce of today and the human
capital needs of tomorrow.
• Effective workforce planning enables the organization to:
• Identify and overcome internal and external barriers to
accomplishing strategic workforce goals.

Factors affecting HRP
• Type and strategy of organization
• Organizational growth cycle and planning
• Environmental uncertainties
• Time horizons
• Type and quality of forecasting information
• Nature of jobs being filled
• Outsourcing

1. The type of organization determines the production
process, type of staff, (supervisor and manager). And the
strategy plan of the organization defines its HR needs.
2. Organizational growth cycle and planning – start up,
growth, maturity, decline
3. Environmental uncertainty – political, social and
economical change affect all organizations.
4. Outsourcing – the process by which employees transfer
routine or peripheral work to the another organizations.
5. Nature of job – job vacancies, promotions and expansion
strategies.
6. Type and quality of forecasting information -
organizational structure, budgets, production.
7. Time horizons – long term plans and short term plans, the
greater the uncertainty the shorter the plan. Example
computers and university.

What is a talent in business?
A natural ability to excel at a duty or action.
A group of people, such as employees, who have a particular
aptitude for certain tasks.
• For example, producers of a movie might recruit
local talent, actors and actresses who live nearby, to stand in
as extras in a film.

DEFINING TALENT
• Talent consists of those individuals who can make a difference to
organizational performance, either through their immediate contribution
or in the longer term by demonstrating the highest levels of potential
• According to McKinsey, talent is the sum of
1. a person’s abilities
2. his or her intrinsic gifts
3. skills, knowledge, experience
4. intelligence
5. judgment, attitude, character, drive
6. his or her ability to learn and grow

Talent management
Talent management refers to the anticipation of required human capital for
an organization and the planning to meet those needs. Everything done to
recruit, retain, develop, reward and make people perform forms a part
of talent management as well as strategic workforce planning.
A conscious, deliberate approach undertaken to attract, develop and retain
people with the aptitude and abilities to meet current and future
organizational needs.
TALENT=COMPETENCE+COMMITMENT+CONTRIBUTION

What is the talent management system?
A talent management system (TMS) is an integrated software suite that
addresses the “four pillars” of talent management:
• recruitment
• performance management
• learning and development
• compensation management.

FOCUSSES OF TM APPROACHES
• Recruitment- ensuring the right people are attracted to the organization.
• Retention -developing and implementing practices that reward and
support employees.
• Employee development - ensuring continuous informal and formal
learning and development.
• Leadership and "high potential employee" development -specific
development programs for existing and future leaders.
• Performance management -specific processes that nurture and support
performance, including feedback/measurement.
• Workforce planning - planning for business and general changes, including
the older workforce and current/future skills shortages.
• Culture- development of a positive, progressive and high performance
"way of operating"

Benefits of Talent Management
• Right Person in the right Job
• Retaining the top talent
• Better Hiring
• Understanding Employees Better
• Better professional development decisions

PURPOSE OF TM
• To compete effectively in a complex and dynamic
environment to achieve sustainable growth
• To develop leaders for tomorrow from within an organization
• To maximize employee performance as a unique source of
competitive advantage
• To empower employees:
Cut down on high turnover rates
Reduce the cost of constantly hiring new people to
train

Systems Approach to HRM
• A system is a set of interrelated but separate elements or parts working towards a common
goal. A university for example, is made up of students, teachers administrative and laboratory
staff who relate to one another in an orderly manner. What one group does have serious
implications for others? So they are communicating with each other in order to achieve the
overall goal for imparting education. The enterprise operations similarly must be viewed in
terms of interacting and interdependent elements. The enterprises procure and transform
inputs such as physical, financial and human resources into outputs such as products services
and satisfactions offered to people at large. To carry out its operations each enterprise has
certain departments known as subsystems such as production subsystem, finance
subsystems, marketing subsystem, and HR subsystem etc .Each consists of a number of other
subsystems. For example the HR subsystem may have parts such as procurement, training
compensation appraisal rewards etc If we were to view HR subsystem a crucial to
organizational performance an organizations performance an organization presents itself
thus:
• The various internal subsystems it should be noted here, of an organizational operate within
the frame work of external environment consisting of potential social economic and
technological forces operating within and outside a nation.

Talent Management and Succession Planning – A Systematic Approach
• Talent management and succession planning is often reactive, completed
within silos or influenced greatly by attributes unhealthy to the overall
organization. Well before a position becomes available, a methodology
and plan should be in place to enable the organization to respond. An
effective talent management and succession plan includes a focus on the
life cycle of an employee and preparing individuals for future
opportunities.
• HR professionals need to be able to create, develop and implement a
systematic approach to talent management and succession planning
according to their organizations’ current culture and future needs. HR
professionals can lead the way to move from reactive replacement
planning to a proactive strategic and systematic solution. Talent
Management and Succession Planning is critical to the ongoing support of
your organization’s success

HRP Process
• HRP effectively involves forecasting personnel needs, assessing personnel
supply and matching demand – supply factors through personnel related
programs. The HR planning process is influenced by overall organizational
objectives and environment of business.

Labour market trends and legal
restrictions:
1. Changes in the composition of economically
active population.
2. The demographic situation.
3. Fluctuations in the rate of unemployment.
4. Legal restrictions.
5. The changing requirements for skill.

Environment
Organizational goals
and policies
HR programming
HRP implementation
HR supply
forecast
HR demand
forecast
Shortage
Control and
evaluation of program
Surplus

Environmental Scanning:
• It refers to the systematic monitoring of the external forces influencing the
organization. The following forces are essential for pertinent HRP .
 Economic factors, including general and regional conditions.
 Technological changes
 Demographic changes including age, composition and literacy ,
 Political and legislative issues, including laws and administrative rulings
 Social concerns, including child care, educational facilities and priorities

Organizational Objectives and Policies:
• HR plan is usually derived from the organizational objectives. Specific
requirements in terms of number and characteristics of employees should
be derived from organizational objectives.
• Once the organizational objectives are specified, communicated and
understood by all concerned, the HR department must specify its
objective with regard to HR utilization in the organization.

HR Demand Forecast
• Demand forecasting is the process of estimating the future quantity and
quality of people required to meet the future needs of the organization.
Annual budget and long-term corporate plan when translated into activity
into activity form the basis for HR forecast.
• Demand forecasting is influenced by both internal factors and external
factors: external factors include- competition, economic climate, laws and
regulatory bodies, changes in technology and social factors whereas
internal factors are budget constraints, production level, new products
and services, organizational structure and employee separations.

Forecasting Techniques
• Managerial Judgment - Managers discuss and arrive at a figure of inflows
& outflows which would cater to future labor demand.
• Ratio-Trend Analysis - Studying past ratios, No. of Workers vs Volume of
Sales, forecasting future ratios and adjusting for future changes in the
organization..
• Work-Study Technique - Used when length of operations and amount of
labor required can be calculated
• Delphi Technique - From a group of experts the personnel needs are
estimated.

Demand forecasting is essential because it helps the organization to
1. Quantify the jobs, necessary for producing a given number of goods
2. To determine the nature of staff mix required in the future
3. To assess appropriate levels in different parts of organization so as to avoid
unnecessary costs to the organization
4. To prevent shortages of personnel where and when, they are needed by
the organization.
5. To monitor compliances with legal requirements with regard to reservation
of jobs.

HR Supply Forecast
• Supply forecast determines whether the HR department will be able to procure
the required number of workers. Supply forecast measures the number of people
likely to be available from within and outside an organization, after making
allowance for absenteeism, internal movements and promotions, wastage and
changes in hours, and other conditions of work.

Supply Analysis
• Existing Human Resources (skill & management inventories)
• External Sources of Supply
 External recruitment, selection & placement Advertisements, Manpower
Consultants, Campus Recruitment, Unsolicited Applications, Employee Referrals

• Internal Sources of Supply
• Inflows & Outflows - The number of losses & gains of staff is estimated.
• Turnover Rate - refers to rate of employees leaving. = ( No. of separations
in a year / Avg no. of employees during the year ) x 100
• Absenteeism - unauthorized absence from work. = ( total absentees in a
year / Avg no. of employees x No. of working days) x 100
• Productivity Level - = Output / Input. Change in productivity affects no. of
persons per unit of output.
• Movement among Jobs - internal source of recruitment, selection and
placement

HR Programming
Once an organization’s personnel demand and supply are
forecasted the demand and supply need to be balanced in order
that the vacancies can be filled by the right employees at the
right time.

HR Plan Implementation
HR implementation requires converting an HR plan into action. A series of
action are initiated as a part of HR plan implementation. Programs such as
recruitment, selection and placement, training and development, retraining
and redeployment, retention plan, succession plan etc. when clubbed
together form the implementation part of the HR plan

Control and Evaluation
• Control and evaluation represent the final phase of the HRP process.
• The achievement of the organization will be evaluated and monitored
against the plan.

Shortage of Workers Forecasted
• Creative recruiting
• Compensation incentives – Premium pay is one method
• Training programs – Prepare previously unemployable people
for positions
• Different selection standards

Surplus of Employees
• Restricted hiring – Employees who leave are not
replaced
• Reduced hours
• Early retirement
• Downsizing - Layoffs

Job Analysis
Job analysis is a systematic investigation of the tasks, duties and
responsibilities necessary to do a job.
A job analysis is the process used to collect information about the duties,
responsibilities,, necessary skills, outcomes, and work environment of a
particular job.
Job analysis is the process of collecting job related information.
Process of defining a job in terms of its component tasks or duties and the
knowledge or skills required to perform them.

• Job analysis is a systematic study of each employee’s duties, tasks and
work environment.
A job analysis examines:
 actual job activities
 the equipment used on the job
 specific job behaviors required
 working conditions
 the degree of supervision necessary.

Information provided by Job Analysis Job analysis provides the following
information :
1. Job Identification : Its title, including its code number
2. Significant Characteristics of a Job : It location, physical setting, supervision, union jurisdiction,
hazards and discomforts
3. What the Typical Worker Does : Specific operation and tasks that make up an assignment, their
relative timing and importance, their simplicity, routine or complexity, the responsibility or safety
of others for property, funds, confidence and trust;
4. Which Materials and Equipment a Worker Uses : Metals, plastics, grains, yarns, milling
machines, punch presses and micrometers;
5. How a Job is Performed : Nature of operation - lifting, handling, cleaning, washing, feeding,
removing, drilling, driving, setting-up and many others; 6. Required Personal Attributes :
Experience, training, apprenticeship, physical strength, co-ordination or dexterity, physical
demands, mental capabilities, aptitudes, social skills;
7. Job Relationship : Experience required, opportunities for advancement, patterns of
promotions, essential co-operation, direction, or leadership from and for a job.

Job analysis involves following steps
• Collecting and recording job information
• Checking the job information for accuracy
• Writing job description based on information
• Using the information to determine the skill, abilities and knowledge
• Updating the information from time to time

Questions Job Analysis Should Answer
• What physical and mental tasks does worker accomplish?
• When is job to be completed?
• Where is job to be accomplished?
• How does worker do job?
• Why is job done?
• What qualifications are needed to perform job?

Reasons For Conducting Job Analysis
• Staffing - Haphazard if recruiter does not know qualifications needed for job
• Training and Development - If specification lists particular knowledge, skill,
or ability, and person filling position does not possess all necessary
qualifications, training and/or development is needed
• Performance Appraisal - Employees should be evaluated in terms of how
well they accomplish duties specified in their job descriptions and any other
specific goals that may have been established
• Compensation - Value of job must be known before dollar value can be
placed on it
• Safety and Health - Helps identify safety and health considerations
• Employee and Labor Relations - Leads to more objective human resource
decisions
• Legal Considerations - Having done job analysis important for supporting
legality of employment practices

Importance of job analysis
1.Facilitates proper publicity of job
2.Selection of psychological test
3.Facilitates purposeful interviews
4.Facilitates appropriate medical examination
5.Facilitates scientific selection placement and
orientation
6.Facilitates scientific promotions and transfers

Objectives/Purpose of Job Analysis
• T&D
• HRP
• Job design
• Placement
• Selection
• Job evaluation
• Performance appraisal
• Recruitment
• Safety and health

Methods of Collecting Job Analysis Data
• Observation
• Performing the job.
• Critical incidents
• Interview- individual & group
• Panel of experts
• Diary method
• Questionnaire
–Structured
–Unstructured

Factors to be considered before choosing the
method of collecting data are
–No. of job/employees to be considered.
–Time limit
–Cost factors
–Education levels of incumbents
–Type of data required

Outcomes of Job Analysis
• The information obtained from job analysis is
classified into three categories.
–Job description
–Job specification
–Job evaluation

Job Description
• A job description is a written statement of the duties, responsibilities,
required qualifications and reporting relationships of a particular job.
• The job description is based on objective information obtained through
job analysis.
Job description acts as an important resource for
– Describing the job to potential candidates
– Guiding new hired employees in what they are specifically expected to do
– Providing a point of comparison in appraising whether the actual duties
align with the stated duties.

Methods of collection Job description data
• Diary/log books
• Observation
• Interview
• Questionnaire
–Structured
–Unstructured

Example of Job Description
• JOB TITLE:_____ OCCUPATIONAL CODE: ________
• REPORTS TO:___ JOB NO. : ___________________
SUPERVISES:___
• GRADE LEVEL: ________ AS ON DATE :_________
• FUNCTIONS:
______________________________________________________
• DUTIES AND
RESPONSIBILITIES:________________________________________
_________________
• JOB CHARACTERISTICS:
_______________________________________________________
_____

Job specification
• Job specifications specify the minimum acceptable qualifications required
by the individual to perform the task efficiently. Based on the information
obtained from the job analysis procedures, job specification identifies the
qualifications, appropriate skills, knowledge, and abilities and experience
required to perform the job.
• Job specification is an important tool in the selection process as it keeps
the attention of the selector on the necessary qualifications required

Example of Job Specification
JOB TITLE: __________________________
EDUCATION:_________________________ PHYSICAL HEALTH:
____________________________________________________________
____________________________________________________________
APPEARANCE:
____________________________________________________________
MENTAL ABILITIES: _______________________________________________
SPECIAL ABILITIES: _______________________________________________
PREVIOUS WORK EXPERIENCE:
____________________________________________________________
____________________________________________________________
SPECIAL KNOWLEDGE & SKILLS:_____________________________________
OTHER : ________________________________________________________

Tasks
Job Analysis
DutiesResponsibilities
Job
Specifications
Job
Descriptions
AbilitiesSkillsKnowledge
• Staffing
• Training and
Development
• Performance
Appraisal
• Compensation
• Safety and
Health
• Employee and
Labor Relations
• Legal
Considerations

JOB ANALYSIS
A process of obtaining all pertinent job
facts
Job Description
• Job Title
• Location
• Job summary
• Duties
• Machine tools etc.
• Material etc.
• Supervision
• Working condition
Job Specification
• Education
• Experience
• Training
• Initiative
• Physical effort
• Responsibilities
• Communication skills
• Emotional characteristics

Job Evaluation
• Job evaluation provides the relative value of each job in the organization.
It is an important tool to determine compensation administration.
• If an organization is to have an equitable compensation program, jobs
that have similar demands on terms of skills, education and other
characteristics should be placed in the common compensation groups.

Objectives of Job Evaluation
• To gather data and information relating to JD, job specification
and employee specifications of various jobs in an
organization.
• To compare the duties, responsibilities and demands of a job
with that of other jobs.
• To determine the hierarchy /rank based on jobs in an
organization.
• To ensure equal wages are fixed to the jobs of equal worth or
value.
• To minimize wage discrimination based on sex, age, caste,
region, religion etc.

Advantages of job evaluation
• Reduction in inequalities in salary
• Specialization
• Helps in selection of employees
• Standardization
• Improvement, Selection and promotion procedures

Top 4 Methods of Job Evaluation
1. Non-quantitative Methods:
(a) Ranking or Job Comparison
(b) Grading or Job Classification
2. Quantitative Methods:
(a) Point Rating
(b) Factor Comparison

• Job Ranking
The importance of order of job is judged in terms of duties, responsibilities and
demands on the job holder.
• Job Classification
System of job evaluation by which jobs are classified and grouped according to a
series of predetermined wage grades.
• Points Rating
This is the most widely used method of job evaluation. Under this method, jobs are
broke down based on various identifiable factors such as skill, effort, training,
knowledge, hazards, responsibility.
• Factor Comparison Method
This method is a combination of both ranking and point methods in the sense that it
rates jobs by comparing them and makes analysis by breaking jobs into compensable
factors. This system is usually used to evaluate professional and managerial positions

Job design
• The process of defining how work will be performed and what tasks will
be required in a given job.
• Job Design is the process of deciding on the contents of a job in terms of
its duties and responsibilities, on the methods to be used in carrying out
the job, in term of techniques, systems and procedures and on the
relationships that should exist between the jobholder and his superiors,
subordinates and colleagues”.
• job design details the number, kind and variety of tasks that individual
employees perform in their jobs. Good job design takes into consideration
the satisfaction of the employee’s needs.
• Jobs that are designed so that they include a variety of tasks and give the
employee some decision-making responsibility are more likely to lead to
greater job satisfaction

Factors affecting job designing
• Organizational factors
• Environmental factors
• Behavioral factors

OBJECTIVES OF THE ORGANIZATION
• Greater Job Satisfaction
• Increased Performance
• Reduced Absenteeism & Turnover
• Greater Profitability
• To meet the organizational requirements such as higher productivity,
operational efficiency, quality of product/service.
• To satisfy the needs of the individual employees like interests, challenges,
achievement or accomplishment,

Job Design Techniques
Job Design Techniques
JOB ROTATION
WORK SIMPLIFICATION
JOB ENRICHMENT
JOB ENLARGEMENT

Poorly designed jobs often result in
• Boredom
• Increased turnover
• Reduced motivation
• Low levels of job satisfaction
• Less than optimal productivity
• Increase in organizational costs

Succession Planning
• Process of ensuring that qualified persons are available to
assume key managerial positions once the positions are
vacant
• Goal is to help ensure a smooth transition and operational
efficiency

Recruitment
According to Edwin B. Flippo,
―Recruitment is the process of searching for prospective employees and
stimulating them to apply for jobs in the organization.
In the words of Dale Yoder ,
― Recruiting is a process to discover the sources of manpower to meet the
requirements of the staffing schedule and to employ effective measures for
attracting that manpower in adequate numbers to facilitate effective
selection of an efficient working force.‖

• It is the process of finding and attracting capable applicants for employment. The
process begins when new recruits are sought and ends when their applications are
submitted. The result is pool of applicants from which new employees are
selected.
• According to Scott, Clothier and Spiegel the need for recruitment arises out of
the following situations:
• Vacancies created due to expansion, diversification, and growth of business.
• An increase in the competitive advantage of certain concerns, enabling them to
get more of the available business than formerly .
• An increase in business arising from an upswing during the recovery period of a
business cycle.
• Vacancies created due to transfer, promotion, retirement, termination, permanent
disability or death.
• The normal population growth, which requires increased goods and services to
meet the needs of the people.
• A rising standard of living, which requires more of the same goods and services as
well as the creation of new wants to be satisfied.

Sources of Recruitment
Internal Sources
• It would be desirable to utilize the internal sources before going outside to
attract the candidates.
• two categories of internal sources including a review of the present
employees and nomination of candidates by employees.
• Effective utilization of internal sources necessitates an understanding of
their skills and information regarding relationships of jobs. This will
provide possibilities for horizontal and vertical transfers within the
enterprise eliminating simultaneous attempts to lay off employees in one
department and recruitment of employees with similar qualification for
another department in the company.
• Promotion and transfers within the plant where an employee is best
suitable improves the morale along with solving recruitment problems.

• internal sources can be used effectively if the numbers of vacancies are
not very large, adequate, employee records are maintained, jobs do not
demand originality lacking in the internal sources, and employees have
prepared themselves for promotions.

Merits of Internal Sources: The following are the merits of
internal sources of recruitment
• It creates a sense of security among employees when they are assured that they
would be preferred in filling up vacancies.
• It improves the morale of employees.
• It promotes loyalty and commitment among employees due to sense of job
security and opportunities for advancement.
• Time and costs of training will be low because employees remain familiar with the
organization and its policies.
• Relations with trade unions remain good.
• Labor turnover is reduced.
• It encourages self-development among the employees. It encourages good
individuals who are ambitious.
• It encourages stability from continuity of employment.
• It can also act as a training device for developing middle and top-level managers.

Demerits of Internal Sources
• There are possibilities that internal sources may ―dry up‖, and it may be
difficult to find the requisite personnel from within an organization.
• It often leads to inbreeding, and discourages new blood from entering and
organization.
• As promotion is based on seniority , the danger is that really capable
hands may not be chosen. The likes and dislikes of the management may
also play an important role in the selection of personnel.
• Since the learner does not know more than the lecturer, no innovations
worth the name can be made. Therefore, on jobs which require original
thinking (such as advertising, style, designing and basic research), this
practice is not followed.

External Sources
• DeCenzo and Robbins remark,
Occasionally, it may be necessary to bring in some new blood to broaden the
present ideas, knowledge, and enthusiasm Thus, all organizations have to depend on
external sources of recruitment. Among these sources are included:
• Employment agencies.
• Educational and technical institutes. And
• Casual labor or ―applicants at the gate and nail applicants.

Advantages of External Recruitment
• It will help in bringing new ideas, better techniques and improved
methods to the organization.
• The cost of employees will be minimized because candidates selected in
this method will be placed in the minimum pay scale.
• The existing employees will also broaden their personality .
• The entry of qualitative persons from outside will be in the interest of the
organization in the long run.
• The suitable candidates with skill, talent, knowledge are available from
external sources.
• The entry of new persons with varied expansion and talent will help in
human resource mix.

Disadvantages of External Sources:
• Orientation and training are required as the employees remain unfamiliar
with the organization.
• It is more expensive and time-consuming. Detailed screening is necessary
as very little is known about the candidate.
• If new entrant fails to adjust himself to the working in the enterprise, it
means yet more expenditure on looking for his replacement.
• Motivation, morale and loyalty of existing staff are affected, if higher level
jobs are filled from external sources. It becomes a source of heart-burning
and demoralization among existing employees.

Process of Recruitment
• Recruitment process begins when the personnel department receives requisitions
for recruitment from any department of the company, The personnel requisitions
contain details about the position to be filled, number of persons to be recruited,
the duties to be performed, qualifications expected from the candidates, terms
and conditions of employment and the time by which the persons should be
available for appointment etc.
• Locating and developing the sources of required number and type of employees.
• Identifying the prospective employees with required characteristics.
• Developing the techniques to attract the desired candidates. The goodwill of an
organization in the market may be one technique. The publicity about the
company being a good employer may also help in stimulating candidates to apply.
There may be others of attractive salaries, proper facilities for development etc.
• Evaluating the effectiveness of recruitment process.

According to Famularo, personnel recruitment process involves
five elements
1. Recruitment Policy: It specifies the objectives of recruitment and provides a framework for
the implementation of the recruitment programme. It also involves the employer‘s
commitment to some principles as to find and employ the best qualified persons for each
job, to retain the most promising of those hired, etc. It should be based on the goals, needs
and environment of the organization.
2. Recruitment Organization: The recruitment may be centralized like public sector banks or
decentralized. Both practices have their own merits. The choice between the two will depend
on the managerial philosophy and the particular needs of the organization.
3. Sources of Recruitment: Various sources of recruitment may be classified as internal and
external. These have their own merits and demerits.
4. Methods of Recruitment: Recruitment techniques are the means to make contact with
potential candidates, to provide them necessary information and to encourage them to apply
for jobs.
5. Evaluation of Recruitment Programme: The recruitment process must be evaluated
periodically. The criteria for evaluation may consist of cost per applicant, the hiring ratio,
performance appraisal, tenure of stay, etc. After evaluation, necessary improvements should
be made in the recruitment programme.

Factor Affecting Recruitment
• The internal factors are
• Wage and salary policies
• The age composition of existing working force
• Promotion and retirement policies
• Turnover rates
• The nature of operations involved the kind of personnel required;
• The level and seasonality of operations in question
• Future expansion and reduction programes.
• Recruiting policy of the organization
• Human resource planning strategy of the company;
• Size of the organization and the number of employees employed
• Cost involved in recruiting employees
• Growth and expansion plans of the organization.

The external factors
• Supply and demand of specific skills in the labor market;
• Company‘s image perception of the job seekers about the company.
• External cultural factors: Obviously, the culture may exert considerable
check on recruitment. For example, women may not be recruited in
certain jobs in industry .
• Economic factors: such as a tight or loose labor market, the reputation of
the enterprise in the community as a good pay master or otherwise and
such allied issues which determine the quality and quantity of manpower
submitting itself for recruitment.
• Political and legal factors also exert restraints in respect of nature and
hours of work for women and children, and allied employment practices in
the enterprise, reservation of Job for SC, ST and so on.

Methods of Recruitment
Direct Methods
• These include sending recruiters to educational and professional
institutions, employees, contacts with public, and manned exhibits. One of
the widely used direct methods is that of sending of recruiters to colleges
and technical schools.
Indirect Methods
• The most frequently used indirect method of recruitment is
advertisement in newspapers, journals, and on the radio and television.
Advertisement enables candidates to assess their suitability. It is
appropriate when the organization wants to reach out to a large target
group scattered nationwide.

Third-Party Methods
• The most frequently used third-party methods are public and private
employment agencies. Public employment exchanges have been largely
concerned with factory workers and clerical jobs. They also provide help in
recruiting professional employees. Private agencies provide consultancy
services.
• They are usually specialized for different categories of operatives, office
workers, salesmen, supervisory and management personnel. Other
third-party methods include the use of trade unions. Labor- management
committees have usually demonstrated the effectiveness of trade unions
as methods of recruitment.

RECRUITMENT AND SELECTION
• Recruitment is the process of identifying that the
organisation needs to employ someone up to the point at
which application forms for the post have arrived at the
organisation. Selection then consists of the processes
involved in choosing from applicants a suitable candidate
to fill a post.

• Recruiting individuals to fill particular posts within a business
can be done either internally by recruitment within the firm,
or externally by recruiting people from outside.

• Recruitment and selection are vital functions of human
resource management for any type of business organization.
These are terms that refer to the process of attracting and
choosing candidates for employment. The quality of the human
resource the firm has heavily depends on the effectiveness of
these two functions (Gamage, 2014).

• Recruiting and selecting the wrong candidates who are not
capable come with a huge negative cost which businesses cannot
afford. Thus, the overall aim of recruitment and selection within
the organization is to obtain the number and quality of employees
that are required to satisfy the strategic objectives of the
organization, at minimal cost (Ofori & Aryeetey, 2011).

• The general purpose of recruitment according to Gamage
(2014) is to provide the organization with a pool of
potentially qualified job candidates. The quality of human
resource in an organization highly depends on the quality of
applicants attracted because organization is going to select
employees from those who were attracted.

• In the same vein, Henry and Temtime (2009) construed
recruitment as the entry point of manpower into an
organization and the path an organization must follow from
there on in order to make sure that they have attracted
the right individuals for their culture and vibes so that the
overall strategic goals are achieved .

• Selection is the process by which specific instruments are
engaged to choose from the pool of individuals most
suitable for the job available (Ofori & Aryeetey, 2011). Selection
involves the use of one or more methods to assess applicant’s
suitability.

• In order to make the correct selection decision and can be
alternatively seen as a process of rejection as it rejects a number
of applicants and select only a few applicants to fill the
vacancy. Thus, selection function may be a negative
function rather than a positive function (Gamage, 2014).

ONBOARDING AND ORIENTATION
• Onboarding is a strategic process of bringing a new employee to
the organization and providing information, training, mentoring
and coaching throughout the transition.This process begins at
the acceptance of an offer and throughout the first six to twelve
months of employment. The onboarding process helps to build
up a good relationship between the new employee and
his supervisor/manager.

• The main objectives of the onboarding process can be listed as
follows:-
• To facilitate the new employee’s ability to contribute in the new role.
• • To increase the new employee’s comfort level in the new role.
• • To reinforces his/her decision to stay within the company.
• • To enhance productivity.
• • To encourage towards commitment and employee engagement.

• As indicated in the below diagram, the onboarding process can be elaborated as a
combination of activities as preparation, orientation, integration, engagement and
follow up.

• Orientation programs are focused on introducing
the company for the newly recruited employees. It
provides various details of the company regarding
the company policies, procedures, culture, working
environment, health and safety measures, etc.

• So this program helps to provide a clear
understanding of the nature of the company to its
employees. Usually, the Human Resource
Department of the organization is responsible for
conducting the orientation programs for the newly
joined employees.

• It has four main objectives as follows:-
• • To familiarize the working conditions for the newly
joined employees.
• • To establish a favourable attitude about the
company in the mind of the new employees.

• To obtain effective output from the new
employee in the shortest possible time.
• To retain the employees within the
organization.

PERFORMANCE MANAGEMENT
• Performance management is a much broader and a
complicated function of HR, as it encompasses activities such as
joint goal setting, continuous progress review and frequent
communication, feedback and coaching for improved
performance, implementation of employee development
programmes and rewarding achievements.

• The process of performance management
starts with the joining of a new incumbent in
a system and ends when an employee quits
the organization.

• Performance management can be regarded as a
systematic process by which the overall performance of
an organization can be improved by improving the
performance of individuals within a team framework.

• It is a means for promoting superior performance by
communicating expectations, defining roles within a
required competence framework and establishing
achievable benchmarks.

• According to Armstrong and Baron (1998), Performance
Management is both a strategic and an integrated
approach to delivering successful results in organizations
by improving the performance and developing the
capabilities of teams and individuals.

SUCESSION PLANNING
• Succession planning is the process whereby an organization
ensures that employees are recruited and developed to fill
each key role within the company. In this process, you ensure
that you will never have a key role open for which another
employee is not prepared.

SUCESSION PLANNING
• Through your succession planning process, you recruit
superior employees, develop their knowledge, skills, and
abilities, and prepare them for advancement or promotion
into ever more challenging roles in your organization.

SUCESSION PLANNING
• The preparation for the employee's next role may also include
transfers to different jobs or departments and on-the-job shadowing
so the employee has a chance to observe various jobs in action.
• Actively pursuing succession planning ensures that employees are
constantly developed to fill each needed role in your organization.

SUCESSION PLANNING
• As your organization expands, loses key employees, provides
promotional job opportunities and increases sales, your succession
planning guarantees that you have employees on hand ready and
waiting to fill the new roles.

EXIT AND TRANSITION
• The first step in the transition process is to hire qualified human
resources staff to manage the exit, employment and orientation
of your workforce. They’ll assess the new needs of your business
and analyze the skills and expertise of your existing staff.

EXIT AND TRANSITION
• They’ll likely retain employees willing to take on new responsibilities,
as well as those with extensive experience working with your company.
• Even if employees don't have the necessary qualifications, it can be
advantageous to retain them, because they strive to work harder,
advance their skills and move to better positions within your company.
Your HR transition personnel can make this assessment.

EXIT AND TRANSITION
• An exit interview is a valuable opportunity to learn from a departing employee
about their working experience. If an employee requests, an exit interview may be
conducted by the Human Resources Unit.
• A critical part of the end-of-employment transition is to obtain from the departing
employee a summary of project work, process documentation, location of files
(physical and electronic) and any other items related to the transfer of knowledge
before the employee’s departure. Equally important to remaining employees is the
fair and effective transfer of the workload for which the departing employee was
responsible.

EXIT AND TRANSITION
• An orderly but comprehensive work transition plan is critical and should
include:
• • A timeline and responsibilities- clarity around gradual or immediate
transition of work as well as clarity around interim or long-term
responsibility.
• • Training responsibilities –supervisor, employee covering the
responsibility or technical specialist.

EXIT AND TRANSITION
• Communication of plan – department, co-workers and campus
colleagues.
• Communication with ITS to ensure appropriate imaging and/or copying
of the departing employees electronic files, email or hard drive are
completed where applicable o This needs to begin immediately after the
employee submits resignation.

Human resources planning

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