Human Resource Planning, Recruitment, and Selection

John Paul Caezar DR. Parungao

MBA Student

DR. RUNVI V. MANGUERRA

Human resource planning

• Human resource planning involves getting the right number of qualified people into the right jobs at the right time.

• Capable of effectively and efficiently completing those tasks that help the organization achieve its overall objectives.

• Setting human resource objectives and deciding how to met them

The process of human resource planning

• Organizations should carry out human resource planning so as to meet business objectives and gain a competitive advantage over competitors

-Human resource planning compares the present state of

the organization with its goals for the future

-Then identifies what changes it must make in its human

resources to meet those goals

Overview of human resource planning process

Forecast of labor supply

Forecasts of labor surplusOr shortage

Goal setting and strategicplanning

Program implementation and evaluation

Forecast of Labor and demand

Demand and Supply forecasting

• Demand forecasting - which entails estimating the organization's future staffing requirement in terms of numbers and skills, by reference to its aims and objectives and taking account of changes in working practices and activities levels?

• Supply forecasting - which entails estimating the likely future labor supply, both from within the organization taking account of employee wastage, current skills mix, performance, etc and from outside the organization taking account of the potential pool of staff with the right levels of knowledge and skill.

Forecasting Availability of Human Resources

• EXTERNAL SUPPLY -The external supply of potential employees available to the organization needs to be estimated. Extensive use of government labor force population estimates, trends in the industry, and many more complex and interrelated factors must be

considered.

• INTERNAL SUPPLY -estimating internal supply considers that employees move from their current jobs into others through promotions, lateral moves, and terminations.

External Supply Forecasting Information

• External labor market factors

(retirements, mobility, education, unemployment)

• Controllable company factors (entry-level openings, recruiting, compensation)

Internal Supply Forecasting

• Organizational features ( e.g. , staffing capabilities)

• Productivity – rates of productivity, productivity changes

• Rates of promotion, demotion, transfer and turnover

Determining Labor Supply

• Transitional matrix – a chart that lists job categories held in one period and shows the proportion of employees in each of those job categories in a future period.

Example of transitional matrix for twelve month period in a large

organization

Determining Labor Surplus or Shortage

• Based on the forecasts for labor demand and supply, the planner can compare the figures to determine whether there will be a shortage or surplus of labor for each category.

• Determining expected shortages and surpluses allows the organization to plan how to address these challenges.

Goal Setting and Strategic Planning

• The purpose of setting specific numerical goals is to focus attention on the problem and provides basis for measuring the organization’s success in addressing labor shortages and surpluses.

• The goals should come directly from the analysis of supply and demand.

• For each goal, the organization must choose one or more human resource strategies.

• Organizations should retain and attract employees who provide a core competency (what makes it better than competitors)

Forecasting as a Part of Human Resource Planning

DEMAND

FORECASTING

SUPPLY FORECASTING

Determine

organizational

objectives

Demand

forecast for each

objective

Aggregate

demand forecastDoes aggregate

supply meet

aggregate

demand?

Go to feasibility analysis steps

Choose human

resource programs

External programs

•Recruiting

•External selection

•Executive exchange

Internal programs

•Promotion

•Transfer

•Career planning

•Training

•Turnover control

Internal supply forecast External supply forecast

Aggregate supply

forecast

No

Yes

Implementing and Evaluating the HR Plan

• When implementing the HR strategy, the organization must hold some individual accountable for achieving the goals.

• Regular progress reports should be issued.

• The evaluation of results should not only look at the numbers, but should also identify which parts of the planning process contributed to success or failure.

Example of the Basic Human Resource Planning Model

Open new product line

Open new factory and distribution

system

Develop staffing for new installation

•Production workers

•Supervisors

•Technical staff

•Other managers

Recruiting and training programs feasible

Transfers infeasible because of lack of managers with right skills

Recruit skilled workers

Develop technical training programs

Transfer managers from other facilities

Develop new objectives and plans

Recruit managers from outside

Too costly to hire from outside

1 2 3

4

3

5

Recruiting Human Resources

• The role of human resource recruitment is to build a supply of potential new hires that the organization can draw on if the need arises.

• Recruiting – any activity carried on by the organization with the primary purpose of identifying and attracting potential employees.

Three aspects of recruiting

Personnelpolicies

Recruiter traitsAnd behaviors

Recruitment sources

Job choice

Applicantcharacteristics

Vacancy characteristics

An organization’s personnel policies are its decisions about how it will carry out human resource management, including how it will fill job vacancies.

Several personnel policies are specially relevant to recruitment:

Personnel policies Internal versus external recruiting

Lead the market pay

Employment at will policies

Image advertising

Recruitment Sources: Internal Sources

• Job posting: the process of communicating information about a job vacancy:

-On company bulletin boards

-In employee publications

-On corporate intranets

-Anywhere else the organization communicates with employee

Advantage of Internal Sources

1. It generates applicants who are well known to the organization.

2. These applicants are relatively knowledgeable about the organization’s vacancies, which minimizes the possibility of unrealistic job expectations.

3. Filling vacancies through internal recruiting is generally cheaper and faster than looking outside the organization.

One in Three Positions areFilled with Insiders

In a survey of large, well-known businesses, respondents said about one-third of positions are filled with people who already work for the company and accept a promotion or transfer.

Recruitment Sources: External Sources

Direct applicants

Referrals

Advertisements in newspapers and magazines

Electronic recruiting

Public employment agencies

Private employment agencies

Colleges and universities

External Recruiting Sources Percentage of Employees Hired

According to the survey results shows the largest share (about one-fourth) of new employees hired by large companies came from referrals, and the next largest share (almost 21 percent) came from direct applications made at the employer’s Web site.

Selection has been regarded as the most important

function of HR department. It ensures the organization that; it has right

number, right kind of people at the right place and at the right time.

Meaning and Definitions:

“It is the process of differentiating between applicants in

order to identify (and hire) those with the greater likelihood of success.”

1. Preliminary Interview2. Selection Tests3. Employment Interview4. Reference and Background

Checks5. Selection Decision:6. Physical Examinations7. Job Offer8. Contract Of Employment9. Evaluation of Selection

program

1. Preliminary Interview:

The purpose of this interview is toscrutinize the applicants, i.e. elimination ofunqualified applications.

2. Selection Tests:

Different types of selection tests may beadministrated, depending on the job and thecompany. Generally tests are used to determinethe applicant’s ability, aptitude, and personality.

3. Employment Interview:The next step in the selection process is

employment interview, an interview is conductedat the beginning, and at the selection process ofthe employment interview can be one- to-oneinterview or panel interview.

4. Reference and Background Checks:Many employers request names,

address, telephone numbers or references for thepurpose to verify information and gainingadditional background information of anapplicant.

5. Selection Decision:

Selection decision is the most critical ofall steps in selection process. The final decisionhas to be made from the pool of individuals whopass the tests, interviews and references checks.

6. Physical Examinations:

After selection decision and before thejob offer is made, the candidate is required toundergo a physical fitness test. A job offer isoften; contingent upon the candidate beingdeclared fit after the physical examinations.

7. Job Offer:

The next step in selection process is job offer. Job offer is made

through a letter of appointment. Such a letter generally contains a date by which

the appointee must report on duty

8. Contract Of Employment:

Basic information is written in Contract of employment that varies

according to the levels of job. After the offer and acceptance of the job certain

document is the attestation form.

9 Evaluation of Selection program:

The broad test of effectiveness of the selection process is a systematic

evaluation .a periodic audit is conducted in the HR department that outlines and

highlights the areas which need to be evaluated in the selection process

Summary

• The first step in human resource planning is personnel forecasting. Through trend analysis and good judgment, the planner tries to determine the supply and demand for various human resources.

• The next step is to determine the labor demand for workers in various job categories. Analysis of a transitional matrix can help the planner identify which job categories can be filled internally and where high turnover is likely.

Summary (continued)

• To reduce a surplus, downsizing, pay reductions, and demotions deliver fast results but at a high cost in human suffering that may hurt surviving employees’ motivation and future recruiting.

• To avoid a labor shortage, requiring overtime is the easiest and fastest strategy.

• Internal recruiting generally makes job vacancies more attractive because candidates see opportunities for growth and advancement.

Summary (continued)

• Lead-the-market pay strategies make jobs economically desirable.

• Internal sources are usually not sufficient for all of an organization’s labor needs.

• Through their behavior and other characteristics, recruiters influence the nature of the job vacancy and the kinds of applicants generated.

Test Your Knowledge

• A public accounting firm of 250 employees realizes they have a surplus of 15 support personnel (not auditors). What should they do?

a) Hire temporary workers

b) Offer early retirement

c) Downsize people in those positions

d) Wait for attrition and implement a hiring freeze for those positions

THANK YOU