Chapter 3 HR Planning and Recruitment

By
Dr. Nazrul Islam

HR Planning and Recruitment

What is HR Planning? Organizational Life-Cycle and HR Activities Recruitment definition Sources of Recruitment Advantages and Disadvantages of different sources

WHAT IS HUMAN RESOURCE PLANNING?

Human Resource Planning is the process by which organizations anticipate future staffing needs and plan programs to ensure that the correct number and type of employees are available when they are needed. Foresight is necessary to ensure the availability of qualified employees. The tighter the labor market, the more forward planning is required to avoid future problems. HRP is concerned with the flow of people into, through, and out of an organization.

HR Planning Process

Manpower forecasts

On the basis of corporate goals and manpower analysis forecasting of manpower i.e., kind of people needed to run business in the given period. Making an Inventory of present manpower resources and finding out the extent to which these manpower's are employed optimally.

Manpower Inventory

Manpower Management

Planning scientific requirement , selection , training , development , utilization , motivation , compensation , etc to ensure that future manpower needs and development manpower plans for implementation.

Organizational Life-Cycle Stages and HR Activities

LIFECYCLE STAGE Introduc tion

STAFFING Attract best technical and professional talent.

COMPENSATION Meet or exceed labor market rates to attract needed talent.

TRAINING AND DEVELOPMENT Define future skill requirements and begin establishing career ladders.

LABOR / EMPLOYEE RELATIONS Set basic employeerelations philosophy of organization.

Growth

Recruit adequate numbers and mix of qualified workers. Plan management succession. Manage rapid internal labor market movements

Meet external market but consider internal equity (kindness) effects. Establish formal compensation structures.

Mold effective management team through management and organizational development.

Maintain labor peace, employee motivation, and morale.

Organizational Life-Cycle Stages and HR Activities (contd)

LIFECYCLE STAGE
Maturit y

STAFFING Encourage sufficient turnover to minimize layoffs and provide new openings. Encourage mobility as reorganizations shift jobs around. Plan and implement workforce reductions and reallocations, downsizing and outplacement may occur during this stage.

COMPENSAT ION Control compensation costs.

TRAINING AND DEVELOPMENT Maintain skills of an aging workforce.

LABOR / EMPLOYEE RELATIONS Control labor costs and maintain labor peace. Improve productivity.

Decline

Implement tighter cost control.

Implement retraining and career consulting services.

Improve productivity and achieve flexibility in work rules. Negotiate job security and employmentadjustment policies

Steps involved in Manpower planning process

Step1 : job Analysis / job design - Mgt must define what work to be performed , how tasks to be carried out and allocated into manageable work units (jobs) Step 2 : job description & job specification refers to incumbent where a job specification with regard to qualification and experience needed to perform a job Step 3 : forecasting procedures: Corporate planner has to forecast the number of people needed for a particular job can be done by forecasting the internal supply and external supply of the people who can perform the job.

Steps involved in Manpower planning process

Step 4 : Internal Supply of Manpower

Six methods can be used to forecast the future human resource needs viz : The Nominal Group Technique Planning for the status quo (Status quo, literally "the state in which", is a Latin term meaning the current or existing state of affairs) Thumb rules Unit forecasting The Delphi Method Scenarios Computer Simulation

The Nominal Group Technique

A small group of 4-5 people gathers around a table. Leader identifies judgment issue and gives participants procedural instructions.

Participants write down all ideas that occur to them, keeping their lists private at this point. Creativity is encouraged during this phase.
Leader asks each participant to present ideas and writes them on a blackboard, continuing until all ideas have been recorded. Participants discuss each others ideas, clarifying, expanding, and evaluating them as a group.

Participants rank ideas privately in their own personal order and preference.
The idea that ranks highest among the participants is adopted as the groups judgment.

Planning for the status quo

Planning involves steps to replace any employees who are either promoted or who leave the firm. An example is Management succession planning which seeks to ensure that there is at least one qualified manager to replace any higher level manager in the organization

Thumb rules

This is on the basis of firms beliefs with regard to forecasting Human resource needs For example, one firm believes that a ratio of one production supervisor for every 12 producers (Workmen) is optimal . This firm maintains this 1:12 ratio because it has proved successful in the past. Another thumb rule is based on past experience that one person can produce 2000 units of output per day and accordingly 5 employees needed for 10,000 units as a matter of forecast

Unit forecasting

This refers to the estimate of supervisors and managers with regard to forecasting Human resource needs for the next year unit wise this approach is called as Bottom up approach to forecasting as the judgment are made by lower level management and added together at a higher level of the organization.

The Delphi Method

This method relies on Expert opinion in making long range forecasts this involves obtaining independent judgments from a panel of experts usually through a questionnaire or interview schedule on certain issue affecting the nature and magnitude of demand for an organizations products and services

The Delphi Technique

Leader identifies judgment issues and develops questionnaire. Prospective participants are identified and asked to cooperate.

Leaders send questionnaire to willing participants, who record their judgments and recommendations and return the questionnaire.
Leaders compiles summaries and reproduces participants responses. Leader sends the compiled list of judgment to all participants. Participants comment on each others ideas and propose a final judgment. Leader looks for consensus Leader accepts consensus judgment as groups choice.

Scenario

These are all descriptive scenes allowing planners to consider several factors in combination to forecast human resource needs for each set of circumstances For example, one scenario might assume environmental conditions in the next of three years to include a recession, the entrance of a new competitor in to a companys major market, and

technological advances requiring some modifications in the production. Using this method, forecasts could

be made for meeting human resource needs of each set of circumstances as portrayed in the separate scenarios this is useful in making mid - to long range forecasts of Human resource needs

Computer Simulation

This is one of the most sophisticated methods of forecasting human resource needs A computer is a mathematical representation of major organizational processes, policies and human resource movement through organization computer simulations are useful in forecasting for human resources by pinpointing any combination of organizational and environmental variables.

Process flowchart depicting forecast on manpower planning

Corporate objectives

Demand for Manpower

Market Demand

Assess Manpower Supply

Labour Market

Existing

Potential

Manpower Estimate

Recruitment Plans

Training Plans

Promotion Success Plan Periodic reviews

Pay productivity Plans

Retirement Redundant plans

Determining the Relationship Between Hospital Size and Number of Nurses

Recruitment Defined
Recruitment

The process of generating a pool of qualified applicants for organizational jobs. Recruiting brings together those with jobs to fill and those seeking jobs.

Recruiting Goals

To provide information that will attract a significant pool of qualified candidates and discourage unqualified ones from applying.

Recruiting Goals

Factors that affect recruiting efforts

Organizational size Employment conditions in the area Working conditions, salary and benefits offered Organizational growth or decline

Recruiting Goals

Constraints on recruiting efforts

Organization image Job attractiveness Internal organizational policies Government influence, such as discrimination laws Recruiting costs

Recruiting: A Global Perspective

For some positions, the whole world is a relevant labor market. Home-country nationals are recruited when an organization is searching for someone with extensive company experience to launch a very technical product in a country where it has never sold before.

Recruiting: A Global Perspective

Host-country nationals (HCNs) are targeted as recruits when companies want each foreign subsidiary to have its own distinct national identity. In some countries, laws control how many expatriates a corporation can send. HCNs minimize potential problems with language, family adjustment and hostile political environments.

Recruiting: A Global Perspective

Recruiting regardless of nationality may develop an executive cadre with a truly global perspective.

Recruiting Sources

Internal Searches Job Posting and Rehiring Former Employees Employee Referrals/ Recommendations External Searches Alternatives

Recruiting Sources
The internal search

Organizations that promote from within identify current employees for job openings:

by having individuals bid for jobs by using their HR management system by utilizing employee referrals

Advantages and Disadvantages of Internal Searches

Advantages Disadvantages Foreknowledge (prior Failed applicants become knowledge) of candidates discontented/dissatisfied strengths and weaknesses Time wasted interviewing More accurate view of inside candidates who will candidates skills not be considered Candidates have a Inbreeding (in front) of stronger commitment to the status quo (status the company becomes very important to the incumbent). Increases employee morale Less training and orientation required

Recruiting Sources

Job posting Publicizing an open job to employees (often by literally posting it on bulletin boards) and listing its attributes. Rehiring former employees Advantages: They are known quantities. They know the firm and its culture. Disadvantages: They may have less-than positive attitudes. Rehiring may sent the wrong message to current employees about how to get ahead.

Recruiting Sources
Employee referrals/recommendations

Current employees can be asked to recommend recruits. Advantages include: the employees motivation to make a good recommendation the availability of accurate job information for the recruit Employee referrals tend to be more acceptable applicants, to be more likely to accept an offer and to have a higher survival rate.

Recruiting Sources
Employee referrals/recommendations

Disadvantages include:

the possibility of friendship being confused with job performance the potential for nepotism the potential for adverse impact

External Recruiting Sources

College and University Recruiting High Schools and Technical Schools

Media Sources and Job Fairs

External Recruiting Sources

Labor Unions

Competitive Sources/Competitors

Employment Agencies and Search Firms

Recruiting Sources
External searches Schools, colleges, and universities:

May provide entry-level or experienced workers through their placement services. May also help companies establish cooperative education assignments and internships.

Recruiting Sources
External searches

Unsolicited applicants (Walk-ins): May provide a stockpile of prospective applicants if there are no current openings. Cyberspace Recruiting: Nearly four out of five companies use the Internet to recruit employees. Commercial jobposting services continue to grow.

External Recruiting Sources (contd)

Advertising The Media: selection of the best medium depends on the positions for which the firm is recruiting. Newspapers (local and specific labor markets) Trade and professional journals Internet job sites Constructing an effective ad Wording related to job interest factors should evoke (induce) the applicants attention, interest, desire, and action (AIDA) and create a positive impression of the firm. AIDA: attention, interest, desire, and action

What to Include in an Effective Recruiting Ad

Job title and responsibilities Information on the Job and Process of Application Location of job Starting pay range Closing date for application Whether or not to submit a resume and cover letter Where to mail application or resume Candidates Desired Qualifications Information on the Organization Years of experience Three to five key characteristics of successful candidates What type of organization? Is it its primary business?

Recruiting Sources: External

Employment agencies: Management consulting, executive search or headhunter firms specialize in executive placement and hard-to-fill positions.

Have nationwide contacts Do thorough investigations of candidates

Recruiting Sources
External searches

Unsolicited applicants (Walk-ins): May provide a stockpile of prospective applicants if there are no current openings. Cyberspace Recruiting: Nearly four out of five companies use the Internet to recruit employees. Commercial jobposting services continue to grow.

Recruiting Sources
Recruitment alternatives Temporary help services.

Temporary employees help organizations meet short-term fluctuations in HRM needs. Older workers can also provide high quality temporary help. Trained workers are employed by a leasing company, which provides them to employers when needed for a flat fee. Typically remain with an organization for longer periods of time.

Employee leasing.

Recruiting Sources
Recruitment alternatives Independent contractors

Do specific work either on or off the companys premises. Costs of regular employees (i.e. taxes and benefits costs) are not incurred.

Meeting the Organization

View getting a job as your job at the moment. Preparing Your Resume

Use quality paper and easy to read type. Proofread carefully. Include volunteer experience. Use typical job description phraseology. Use a cover letter to highlight your greatest strengths.

Dont forget about networking as an excellent way of gaining access to an organization.