HRM Chapter 4

HRM, Lect-Naziya Lakhani, TNRCMS,Rajkot

Module-1Chapter-4

HR Planning & Recruiting


Objectives of this ChapterObjectives of this Chapter1. Explain the main techniques used in

employment planning and forecasting.

2. List and discuss the main outside sources of candidates.

3. Effectively recruit job candidates.

4. Name and describe the main internal sources of candidates.

5. Explain how to recruit a more diverse workforce.


Human Resource Planning

• The success of an org. depends largely on the quantity & quality of its human resources.

• No org. can be successful in the long run without having the right number & the right kind of people doing the right jobs at the right time.

• Procurement of the right kind & right number of human is the first operative function of HRM.

• Before selecting the right man for the right job, it becomes necessary to determine the quality & quantity of people required in an org.


• This is the function of HRP or manpower planning.

• HRM begins with manpower planning.


Concept of HRP

• HRP has been defined as “ the process by which management determines how an org should move from its current manpower position to its desired manpower position.

• Through it management strives to have the right number & right kind of people at the right place, at the right time, doing things which result in both org, & the individual receiving, maximum long range benefit.


• HRP is a process of determining & assuming that the org will have an adequate process of qualified persons, available at the proper times, performing jobs which meet the needs of the enterprise & which provides satisfaction for the individuals involved.

• In short, HRP is the process of determining manpower needs & formulating plans to meet these needs.


Characteristics of HRP1. HRP like all planning is future oriented. It

involves forecasts of the manpower needs in future time period.

2. HRP is an on-going or continuous process because the demand for & the supply of human resources undergo frequent changes.

3. HRP is an integral part of corporate planning. Without a corporate plan, there can be no manpower plan. Whether or not the manpower plans meet the org requirements & are in tune with the reality depends on how clearly the goals are defined.


4. The basic purpose of HRP is to make optimum utilisation of an org’s current & future human resources, it is necessary to relate future human resources to future needs of the org.

5. HRP has both quantitative & qualitative aspects. The former implies the right number of employees while the later means the right talent required in the org.

6. HRP is the primary responsibility of management as to ensure effective utilisation of the org’s hr.


7. Human resource plans can be long term or short term

8. HRP is a two-phased process, it includes demand & supply.


Objectives of HRPThe main objectives of HRP are as follows

1. To ensure optimum use of existing human resources.

2. To forecast future requirements for human resources.

3. To provide control measures to ensure that necessary human resources are available as & when required.

4. To link human resource planning with organisational planning.

5. TO determine levels of recruitment & training


6. To estimate the cost of human resources & housing needs of employees.

7. To provide a basis for management development programmes.

The ultimate purpose of manpower planning is “to relate future human resources to future enterprise needs so as to maximise the future return on investment in human resources.”


Problems in HRP

1. Inaccuracy

2. Employees Resistance

3. Uncertainties

4. Inefficient Information System

5. Lack of Top Management Support

6. Time & Expense

HRP Process

Corporate Analysis

Demand Forecast

Manpower Gaps

Supply Forecast

Manpower Plans

Monitoring & Control

Modify

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Plans

Manpower

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1. Analysing Organisational Plans

• First of all, the objectives & strategic plans of the company are analysed.

• It is related to future work activity.• Each plan can further be analysed into sub-plans & detailed

programmes.• The future org structure & job design should be analysed.• It is necessary to be made clear & changes in the org

structure should be examined so as to anticipate its manpower requirement.

• It is necessary to study business plans because all manpower plans are related to it.

• A company’s plan are based on economic forecast, company’s sales & expansion forecast.


Forecasting Personnel Needs

Trend Analysis Scatter Plotting

ForecastingTools

Ratio Analysis


1. Trend Analysis:- Study of a firm’s past employment needs over a period of years to predict future needs.

2. Ratio Analysis:- A forecasting technique for determining future staff needs by using ratios between, for example, sales volume & number of employees need

3. Scatter Plot:- A graphical method used to help identify the relationship between two variables.


2. Forecasting Demand for Human Resources • It is necessary to make projections for new positions to be

created & the vacancies arising in current manpower.• Job analysis & forecasts of future activity levels help in human

resource forecasting.


3. Forecasting Supply of HR

• Every Org has two sources of supply of HR- Internal & External

• Internally, HR can be obtained for certain posts through Promotions & Transfers.

• HR flow in & out of org due to several reasons

Inflows Outflows

New Recruits

Promotions

Transfers

Promotions

Transfers

Retirements

ResignationsDeaths


4. Manpower Gap• Net hr requirements or manpower gaps can be identified

by comparing demand forecasts & supply forecasts.• Such comparison will reveal either deficit or surplus of hr

in future.• Deficit suggest the number of persons to be recruited &

Surplus suggest Termination.


5. Action Planning• Once the manpower gaps are identified , plans are

prepared to bridge this gaps

• Action Plan

1) Recruitment plan

2) Redundancy plan

3) Promotion plan

4) Training & Development plan


6. Monitoring & Control• Action plan is working properly or not• Any addition to the manpower must be considered at the top

level management• Keeping a close watch on overtime• Measuring the efficiency of manpower• Seeing the utilisation of manpower• See the level of Job satisfaction.


• HRP helps determine the no. & type of people a firm needs.

• Job analysis specify the tasks & duties of job & the qualifications expected from prospective job holders.

• The next logical step is to hire the right number of people of the right type to fill the jobs.

• Hiring involves two broad groups of activities 1) Recruitment & 2) Selection.

HRP Job Analysis

Determine Recruitment &

Selection Needs


Measuring Recruiting Effectiveness

What to Measure

How to Measure

Evaluating Recruiting

Effectiveness


Concept of Recruitment• In simple terms, recruitment is understood as the process of

searching for & obtaining applicants for jobs, from among whom the right people can be selected.

• Theoretically, recruitment process is said to end with the receipt of applications, in practice the activity extends to the screening of applications so as to eliminate those who are not qualified for the job.

• Recruitment refers to the process of employee hiring.


• Recruitment involves attracting & obtaining as many applications as possible from eligible job-seekers.

• The process of seeking & attracting a pool of people from which qualified candidates for job vacancies can be chosen.

• Recruitment is the process of searching for prospective employees & stimulating them to apply for jobs in the org.

• Effectively recruitment is the process of getting the right kind of people to apply for the vacancies in an organisation.


• Recruitment & Selection together constitute Employment.

• Recruitment, as process, starts with identification of the need for hr & ends with getting the prospective employees to apply for the vacancies available.

• Selection starts where recruitment ends & deals with choosing the right candidates & getting the best job-fit.

• The aim of an effective recruitment program is to attract the best people for the job & aid the recruiter by making a wide choice available.

• A good job description helps in attracting the right kind of candidates for the job.


Importance of Recruitment• Recruitment represents the first contact that a company makes with

potential employees.• It is through the recruitment that many individuals will come to know a

company, & eventually decide whether they wish to work for it.• A well planned & well managed recruiting effort will result in high quality

applicants.• High quality emp cannot be selected when better candidates do not know

of job openings, are not interested in working for the company & do not apply.

• The recruitment process should inform qualified individuals about employment opportunities, create a positive image of the company, provide enough information about the jobs so that applicants can make comparisons with their qualifications & interests, & generate enthusiasm among the best candidates so that they will apply for the vacant position.

• A recruiting programme helps the firm to attract highly qualified & competent people.


Factors affecting Recruitment

External Forces

Internal ForcesRecruitment


• Recruitment Process

Recruitment Policy

Recruitment Organisation

Choose the Sources & Methods or Techniques of Recruitment

Screening of the Applicants

Assessment or Evaluation of the Recruitment Programme


1. Recruitment Policy :-

• Objectives of recruitment. Provides framework of implementation of recruitment programme in the form of procedures. Policy lays down:-

1. Filling vacancies with the best qualified individuals.

2. Extent of promotion from within.

3. Attitudes of enterprise in recruiting its old employees, handicaps, part time, women, relatives of present employees.

Elements of Good Recruitment Policy

1. Organization's objectives- Both in short and long term. Areas wise, job wise.

2. Identification of recruitment needs:- Which type of quality employees want in the org.

3. Preferred Source of recruitment:- For each category. Internal source, or external source of recruitment.


4. Criteria of selection and preferences:-Based on conscious thought and serious deliberations. To whom we have to give the first preference.

5. The cost of recruitment and financial implications of the same

• Flexible enough to meet changing needs of an organization.• Designed to ensure employment opportunities for its employees on

long-term basis. • Match the qualities of employees with the requirement of work for

which employed.• It should highlight the necessity of establishing job analysis.• To find and employ the best qualified person for each job.• To offer promising opportunities for life-time working careers.• To provide programme and facilities for personal growth on the job


2. Recruitment Organisation :-

• Each enterprise has its own procedure that brings desired quality and quantity of manpower at min. cost.

• Common practice is to centralize recruitment.• Centralization helps in consistency and efficiency.• Employee records up to date.• Reduces administrative cost.• It tends to make the selection of workers Properly.• Develops centralized manpower pool in a company.• Provides wider opportunities.• It tends to reduce favoritism as a basis for selection.


3. Choose the sources & Methods or Techniques of Recruitment

Source of Recruitment

1. Internal

Promotion and Transfers, rehire

Merits:- improves morale, better evaluation, promotes loyalty, known policies, less costly.

2. External

Advertisement, Employment Exchange, Placement Agencies etc.

Merits:- Provides requisite type of people

best selection, in long term economical.


Methods or Techniques of Recruitment

• Direct:- Sending traveling recruiters to educational institutions, seminars, Employees’ contact with public,

• Indirect:- Advertisement in news papers, radio, trade and professional journals. Ad must be carefully written,

1. To visualize type of applicants trying to recruit.

2. List advantages that the company offers.

3. In which news paper to run. Local, state, all India

• Third Party. Commercial or private employment agencies, state agencies, placement offices.


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Present Employees

Employee Referrals

Former Employees

Previous Applicants

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Advertisements

Campus Recruitment

Walk-ins

Consultants

Contractors

Displaced Persons

Radio & Television

Professional or Trade Association

E-Recuriting

Competitors

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4. Screening

• Screening of applications can be regarded as an integral part of the recruitment process.

• The selection process will begin after the applications have been scrutinized & short listed.

• The purpose of screening is to remove from the recruitment process, at an early stage, those applicants who are visibly unqualified for the job.


5. Assessment or Evaluation of an Recruitment programme

• Periodical Evaluation to determine cost per applicant, the application/hiring ratio.

• Use this information to improve the recruiting process.• Ethical practices. Tell “truth in hiring”, good and bad.• Cost for advertisement or other recruitment methods.• The main question is how the whole recruitment process is helpful to

the org for selecting the best candidate for the specific job.


• Recruiting a More Diverse Workforce

• Diverse workforce isn’t just socially responsible, it is necessity, given globalization

• Eg:- Eastman Kodak Co. Include Disable People in their org.

1. Single Parents

2. Older Workers

3. Recruiting Minorities & Women's

4. Reservation

5. The Disabled


Recruiting A More Diverse Workforce

Single Parents

Older Workers

Welfare-to-WorkMinorities and

Women

The Disabled


• Developing & Using Application Forms

1. Purpose of Application Forms

• With a pool of applicants, the prescreening process can begin.

• The application form is usually the first step in this process (some firms first require a brief, prescreening interview or online test)

• A filled in form provides four types of information1. First you can make the judgments on substantive matters, such as whether

the applicant has the education & experience to do the job

2. Second, you can draw conclusions about the applicant’s previous process & growth, especially for management candidates.


3. Third, you can draw tentative conclusions about the applicant’s stability based on previous work records

4. Fourth, you may be able to use the data in the application to predict which candidates will succeed on the job & which will not.

2. Using Application Forms to Predict Job Performance

– It is possible to use application form information to predict which candidates will be successful & which won’t, in much the same way that one might use test for screening.

– The basic process involves conducting statistical studies to analyze the relationship between

1. Biodata responses on the application form (distance from work)

2. Measure of success on the job.


• Derecruitment

• Process of reducing the size of organization’s workforce or restructuring its skill base.

• Used to meet the demands of dynamic envt.

1. Firing:- permanent involuntary separation

2. Lay-off:- temporary involuntary termination

3. Attrition:- workers who voluntary resign are not replaced

4. Transfer:- Lateral or downward job change

5. Reduced work week:- Fewer hours/ week or part time work

6. Early retirement:- incentives offered to resign

7. Job sharing:- more than one employee shares one full-time position


• Questions

1. What are the pros & cons of five source of Job Candidates ?

2. What are the four main type of information that application forms provide?

3. What are the main things you would do to recruit & retain a more diverse work force?

4. Explain Human Resource Planning Process ?

5. Explain Recruitment Process?

6. What are the Internal & External Source of Recruitment?

HRM Chapter 4

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