The document outlines the process of human resources planning, recruitment, and selection, emphasizing the importance of forecasting labor supply and demand to address potential labor surpluses and shortages. It details various strategies for addressing these issues, including downsizing, early retirement, and outsourcing, as well as the recruitment process and employee screening methods. The document further discusses the validity and reliability of different testing and interviewing techniques used in employee selection to ensure job fit and organizational effectiveness.

1. HUMAN
RESOURCES
PLANNING,
RECRUITMENT, AND
SELECTION
Presented by:
MARY ANNE PORTUGUEZ, MP, RPm

2. PLANNING

3. HUMAN RESOURCE
PLANNING
 Also known as manpower planning.
 Process of analyzing an organization’s
human resource needs under changing
conditions and developing the activities
necessary to satisfy these needs.
 Enables the company attain its goals and
objectives.

4. OVERVIEW OF PLANNING
PROCESS
FORECASTS OF
LABOR SURPLUS
OR SHORTAGE
GOAL SETTING
AND STRATEGIC
PLANNING
PROGRAM
IMPLEMENTATION
AND EVALUATION
FORECASTS
OF LABOR
DEMAND
FORECASTS
OF LABOR
SUPPLY

5. STEPS IN PLANNING
PROCESS
1. Forecasting, the attempts to determine the
supply and demand for various types of
human resources to predict areas within
the organization where there will be future
labor of shortages or surpluses (e.g.
statistical planning models, historical
records).
Determining labor demand
Leading indicator is an objective measure

6. STEPS IN PLANNING
PROCESS
Determining labor supply
It calls for a detailed analysis of how many
people are currently in various job categories
(or who have specific skills) within the
company.
Transitional Matrix. Matrix showing the
proportion (or number) of employees in
different job categories at different times.
Typically, it shows how people move in one
year from job category to another job

7. Example of Transitional Matrix
January
2016
February
2016
March 2016
Sales
Manager
2 2 1
Sales
Representati
ve
50 48 45
HR Officer 5 5 4
HR
Assistants
10 10 8

8. DETERMINING LABOR SURPLUS OR
SHORTAGE
Once forecasts for labor demand and
supply are known, the planner can compare
the figures to ascertain whether there will be
a labor shortage or labor surplus for the
respective job categories. When it is
determined, the organization will know what
it is going to do about these potential
problems.

9. STEPS IN PLANNING
PROCESS
2. Goal setting and strategic planning.
The purpose of setting specific quantitative goals
is to focus attention on the problem and provide
a benchmark for determining the relative success
of any programs aimed at redressing a pending
labor shortage or surplus.
The goals should come from the analysis of labor
supply and demand. It should also include
specific figure for what should happen with the
job category or skill area and a specific timetable
for when results should be achieved.

10. STEPS IN PLANNING
PROCESS
Once the goals are established, the firm must
choose from various strategies available for
redressing labor shortages and surpluses.
PROGRAMS THAT CAN BE USED TO REDUCE LABOR
SURPLUS
(1) Downsizing and (2) Early Retirement Programs
(3) Buyouts

11. PROGRAMS THAT CAN BE USED TO
REDUCE LABOR SURPLUS
 Downsizing, the planned elimination of large
numbers of personnel designed to enhance
organizational effectiveness.
Reasons for downsizing:
1. To reduce costs because labor costs represent a
big part of a company’s total costs.
2. Outdated plants or introduction of technological
changes reduced the need for labor.
3. Economic reasons.

12. PROGRAMS THAT CAN BE USED TO
REDUCE LABOR SURPLUS
 Disadvantages of Downsizing:
1. Disrupts social networks needed to promote
creativity and flexibility.
2. Loss of talents who turn out to be irreplaceable
assets.
3. Those who survived the purge have the
tendency to become narrow-minded, self-
absorbed, and risk averse. Moreover,
motivation drops off because any hope for
future promotions with the company dies out.

13. PROGRAMS THAT CAN BE USED TO REDUCE
LABOR SURPLUS
 Early Retirement Program
Older workers are sometimes more costly than
younger workers because of higher seniority,
higher medical costs, and higher pension
contributions.
 Buyouts
There are some companies simply converted
early retirement programs into buyouts for
specific workers that have nothing to do with
age.

14. PROGRAMS THAT CAN BE USED TO
REDUCE LABOR SHORTAGE
 Employing Temporary Workers
It affords firms the flexibility needed to operate
efficiently in the face of wings in the demands for
goods and services.
 Outsourcing
It is a logical choice when a firm simply does not
have certain expertise and is not willing to invest
time an effort into developing it.
Offshoring, is a special case of outsourcing
where the jobs that move actually leave one
country and go to another.

15. RECRUITMENT

16. Recruitment
 Attracting people with the right qualifications (as
determined in the job analysis) to apply for the job.
 The practice or activity carried on by the organization
with the primary purpose of identifying and attracting
potential employees.
 It is designed to affect the (1) number of people who
apply for vacancies, (2) the type of people who apply for
them (3) the likelihood that those applying for vacancies
will accept positions if offered
 Its aim is to ensure that the organization has a number
of reasonably qualified applicants to choose from when
vacancy occurs.

17. Making Decisions in
Recruitment
 To promote someone within the organization
(internal recruitment)
 To hire someone outside the organization
(external recruitment) e.g. newspaper ads, e-
media, situation-wanted ads, campus recruitment,
employment agencies, executive search firms,
referrals, public employment agencies, job fairs.
Note: To enhance employee morale and motivation,
it is often good to give current employees an
advantage in obtaining new internal positions.

18. TESTIN
G
STEPS IN RECRUITMENT
PROCESS
SELECTIN
G
SCREENI
NG
RECRUITMEN
T
PLACEMENT

19. Thoughts to Ponder
 Recruitment is a two-way process.
 Job seekers are influenced by type of industry,
profitability of company, company’s reputation,
and its organizational culture.
 DO NOT oversell your company in ads. This is
not a problem if such statements were true. If the
job and organization are presented misleading,
the strategy will BACKFIRE. The new employees
will soon discover that they were fooled, and may
look for anther company or become dissatisfied
with their current work.

21. Thoughts to Ponder
 An important factor in the recruitment process
that may help alleviate potential
misperceptions is the Realistic Job Preview
(RJP) which is an accurate description of the
duties and responsibilities of a particular job.
Research indicates that face-to-face RJPs
may be more effective than written ones.

22. EMPLOYEE SCREENING
 It is the process of reviewing information
about job applicants to select individuals
for jobs. A wide variety of data sources,
such as resumes, job applications, letters
of recommendations, employment tests,
and hiring interviews.

23. Evaluation of Written
Materials
 Evaluation of written materials such as resumes
and applications. The main purpose of the
application and resume is to collect biographical
information about education, work experience,
and outstanding work or school
accomplishments. Such data are believed to be
best predictors of future job performance.
 Another type of information from applicants is a
work sample consists of a written sample (e.g.
report), but artists, architects, and software
developers might submit “portfolios.”

24.  Reference checks and letters of
recommendations can provide four types of
information (1) employment and educational
history (2) evaluation of the applicant’s
character (3) job performance (4)
recommender’s willingness to rehire the
applicant.
 But it has limited importance since applicants
only usually choose their own sources for
references and recommendations, it is unlikely
that they will supply the names of persons who
References and Letters of
Recommendations

25. References and Letters of
Recommendations
 Recommendations tend to be distorted in a
very positive manner that they may be useless
in distinguishing among applicants.
 However, there are graduate schools and
certain professional positions that take steps to
improve its effectiveness by asking the
recommender to rate the applicants on a variety
of dimensions such as academic ability,
motivation, oral and communication skills.

26. Employment Testing
 Any type of measurement instrument used in IO
psychology including those in employee
screening and selection must meet certain
standards.
 Two important concepts in measurement that
we should remember: (1) Reliability, the
consistency of measurement over time (2)
Validity, a concept referring to the accuracy of
measurement instrument and its ability to make
accurate inferences about a criterion.

27. Types of Reliability
 Test-retest, a method of determining the stability
of a measurement instrument by administering
the same measure to the same people at two
different times and then correlating the scores (3
days to 3 months).
 Parallel forms, a method of establishing a
measurement instrument by correlating scores on
two different but equivalent versions of the same
instrument.
 Internal consistency, a common method of
establishing a measurement instrument’s

28. Three Facets of Validity
 Content Validity, the ability of the items in a
measurement instrument to measure adequately the
various characteristics needed to perform the a job.
(Closely linked to job analysis)
 Construct validity, refers to whether an employment
test measures what it is supposed to measure. If the
instrument predicts what it needs to measure.
 Criterion-related validity, the accuracy of a
measurement instrument in determining the relationship
between scores on the instrument and some criterion of
job success (e.g. measure of work output or quality).
*Not used as a basis of selection of applicants*

29. Types of Employee Screening
Tests
 The majority of employee screening tests
and selection instruments are standardized,
published tests that have been subjected to
research aimed at demonstrating their
validity and reliability.

30. Classification of Instruments in Terms of
Characteristics
 Biodata, background information and personal
characteristics that can be used in employee selection.
 Cognitive ability, range from tests of general intellectual
ability to tests of specific cognitive skills. E.g. Otis Self-
Administering Test of Mental Ability and the Wonderlic
Personnel Test. Criticism to general intelligence test is poor
predictor of specific job-related cognitive skills.
 Mechanical ability, measure abilities in identifying,
recognizing, and applying mechanical principles. Effective
in screening applicants for positions that require operating
or repairing machinery, for construction jobs, and for certain
engineering positions. E.g. The Bennet Mechanical
Comprehension Test (BMCT)

31.  Motor and sensory ability, measure specific motor
skills or sensory abilities such as Crawford Small Parts
Dexterity Test and Purdue Pegboard. These are timed
performance (speed tests) that require manipulation of
small parts in order to measure fine motor dexterity in
hands and fingers required in jobs such as assembling
computer components and soldering electrical
equipment.
 Job skills test and knowledge test, assess specific
job skills of job knowledge. e.g. typing tests,
proofreading, alphabetical filing, or correction of spelling
or grammatical errors for clerical. E.g. Judd Test for
computer knowledge
Classification of Instruments in Terms of
Characteristics

32.  Personality Tests, instruments that measure
psychological characteristics of individuals. These tests
are used to match personality characteristics of job
applicants with those workers who have performed the
job successfully in the past.
 Honesty and integrity test, measures of honest and
dishonest attitudes and behaviors. E.g. Polygraphs,
instruments that measure physiological reactions
presumed to accompany deception. It is suggests that
integrity test should not be the sole basis for a hiring
decision and that they are best used in combination with
other valid predictors.
Classification of Instruments in Terms of
Characteristics

33. Effectiveness of Employee
Screening
 It should be grouped together in a test battery, a
combination of employment tests used to increase the
ability to predict the future job performance.
 Validity generalization, the ability of screening
instrument to predict performance in a job or setting
different from the one in which the test was validated.
 Test utility, the value of screening test in helping to
affect important organizational outcomes. In short, it
determines the success of a test in terms of money
gained by the company through the increased
performance and productivity of workers selected based
on test scores.

34.  Assessment centers, a detailed, structured
evaluation of job applicants using a variety of
instruments and techniques.
In assessment centers, applicants are evaluated on
a number of job related variables using a variety of
techniques, such as personality and ability tests, that
are considered to be valid predictors of managerial
success. They also take part in situational exercises,
which attempts to approximate actual work tasks.
Effectiveness of Employee
Screening

35. Hiring Interviews
 Should maintain high standards of measurement, the
same as other screening methods.
 Care must be taken to ensure the reliability and
validity of judgments of applicants made in hiring
interview.
 Many interview are conducted haphazardly with little
structure to them. Such as the interviewer talks too
much, doing casual interviews.
 Situational interviews are developed tool used to see
how applicants deal with specific-job related,
hypothetical situations.

36. Types of Interview
 Structured interview is one in which the source
of the questions is a job analysis (job-related
questions), all applicants are asked the same
questions, and there is a standardized scoring
key to evaluate each answer.
 Unstructured interview, is one in which
interviewers are free to ask anything they want
(e.g., Where do you want to be in five years?
What was the last book you read?), are not
required to have consistency in what they ask of
each applicant, and may assign numbers of

37. Advantages of Structured
Interview
 More valid
 Favored by courts because of two probable reasons:
(1) structured interviews are based on a job analysis.
(2) structured interviews result in substantially lower
adverse impact than do unstructured interviews. This is
due to the fact that unstructured interviews concentrate on
general intelligence, education, and training, whereas
structured interviews tap job knowledge, job skills, applied
mental skills, and interpersonal skills
 Not immune for discrimination

38. Disadvantage of Unstructured
Interview
 Lack of Job Relatedness
 Primacy Effects or “First Impressions”
 Contrast Effects
 Negative-information bias
 Interviewer-Interviewee Similarity
 Interviewee Appearance
 Nonverbal Cues

39. MAKING THE HIRING
DECISION
 Employee selection is the actual process of choosing
people for employment from a pool of applicants. All
information gained from screening procedures is
combined to make actual selection decisions.
Multiple regression model, an employee selection
that combines separate predictors of job success in a
statistical procedures.
Multiple cutoff model, an employee selection
method using a minimum cutoff score on each of the
various predictors of job performance.
Multiple hurdle model, requires that an
acceptance or rejection decision to be made at each of
several stages in a screening process.

40. MAKING THE HIRING
DECISION
 Linear approach
>unadjusted top-down selection, applicants are
rank-ordered on the basis of their test scores.
Selection is then made by starting with the highest
score and moving down until all openings have
been filled. (oppose to compensatory approach)
>Rule of three, the names of the top three
applicants are given to the person making the
hiring decision.
>Passing scores are a means for reducing
adverse impact and increasing flexibility.

41. SAMPLE

42. MAKING THE HIRING
DECISION
 Banding, attempts to hire the top test scorers
while still allowing some flexibility for
affirmative action.

43. How to Conduct Effective Hiring Interview
 Use structured interview
 Make sure that interview questions are job-related
(use situational interview)
 Provide for some rating or scoring of applicant
responses.
 Limit prompting and follow-up questioning.
 Use trained interviewers.
 Consider panel or multiple interviewers.
 Use the interview time efficiently.
 Monitor the effectiveness of interviews.

44. Employee Placement
 The process of assigning workers to appropriate
job.
NOTE:
Regardless of the screening process and
procedures used, the overriding concern in all
personnel decisions is to protect against
discrimination in employment.

45. THANK YOU!

46. References:
 Riggio, R.E. (2008). Introduction to
industrial/organizational psychology (5th ed).
Pearson: USA.
 Aamodt, M.G. (2010). Industrial/organizational
psychology (6th ed).Cengage Learning: USA.
 Noe, R.A. et al. (2010). Human resource
management gaining a competitive advantage
(7th ed). The McGraw-Hill Companies, Inc. :
Asia.