‫بسم اهلل الرمحن الرحيم‬

GSB
Human Resources Management

HR Planning and Recruiting

Dr. Abdelnasser Ghanem
Dr. Abdelnasser ghanem (aahhg@hotmail.com)
3
 Objectives & Contents

1 Concept of Planning

2 HR Planning
3
Foundations of HR Planning

4 Stages of HR Planning

5 Concept & Process of Recruitment

6 Internal Recruitment

7 External Recruitment
2
 Concept of HR Planning
HR Planning is : The process of deciding what
positions the organization will have to fill to be able
to achieve its (goals/period) and how to fill them.

• What to Forecast?
– Overall personnel needs
– Which positions will be needed?
– How many employees will be needed?
– when they will be needed?
HR
– The supply of inside candidates Planning
– The supply of outside candidates

From How
Where many
Suitable Appropriate
time competencies
 Objectives of HR planning
The objective of HR planning is to ensure the best fit between
employees and jobs, while avoiding manpower shortages or
surpluses. It is a sub-plan of the total organizational planning.
Identify training &
development needs Satisfying Organization’s
By identifying future skills needs
and knowledge needs Through identifying
compared to the current Objectives organization’s requirements of
situation and planning of HR future work force (Types and
development processes Planning numbers) in a timely manner
based on the strengths and
weaknesses of the workers

Achieving balance & reducing risk Human resources budgeting

By anticipating surplus or shortage
problems and prepare the
Organization to cope with such
situations in the internal and
external
4 environment.
This includes the expected
financial obligations of
employees, whether in the area
of salaries, incentives, training,
services or termination
 The concept of HR planning

The planning process identifies the goals or objectives to

be achieved, identifies ways to achieve them, and
defines the means required, it involves three levels

Strategic Conducted by top management, cover the entire activities,

(corporate) determine the long-term objectives, and aims to move the
Planning organization from its current situation to a better one (Three
directions might be used Growth – Stability - Downsize)
Middle level It is segmental, covers medium time frame, and undertaken for
(Functional) each major function of the organization like:
Planning
Marketing Plans Production Plans Financial Plans HR Plans

Lower level Is deciding the most effective use of the resources to assure
(Operational) effective implementation of the actions needed to achieve the
Planning short term goals.
 The concept of HR planning

Therefore is worthy to consider HR

planning as a kind of functional planning Internal External
that is concerned with providing the Analysis analysis
required human resources to achieve
S W O T
the strategic objectives.
Corporate Strategy

Strategies of different Business units

Once the organizational strategies are
defined, they are transformed into
Functional strategies for each activity unit
functional strategies. Hence, the
organizational structures and functional HR Finance Marketing Production
strategies are generated.

HR Recruit
Plans

Thus it is important to have an insight to Develop Incentive

the strategic management process System
 The process of strategic management

Formulating the strategy involves three levels: the corporate

level, the business level, and the functional level.
The first level of strategy is corporate strategy which outline
and control everything. corporate strategy will outline what
businesses we are going to enter, in which markets, and how
to enter . This level deals three key questions:
"What do we do?"
"For whom do we do it?"
"How do we excel?"
Three directions can be followed:

Growth strategies Stability Strategies Reduction Strategy

When there are external
opportunities and internal
strengths the aim would be
to grow and expand
markets, and/or products.
The organization attempts
to maintain its current
position and focuses only
on the gradual growth
through simple changes.
The organization aims to
reduce its business
operations to cut
expenses and reach to a
more stable position
 WHAT IS STRATEGIC HRM?

Level 2: Competitive Strategy (Business Unit Strategy) :

in a ‘step down’ from the corporate strategy level, the
main areas of business in multi-activity organizations
are formulated. For example, General Electric has
several areas of activity, such as the turbine engine
factory and home devices factory.
The strategic role of this level is to translate the strategy and mission of the
organization into specific sub-competitive strategies for each of the
different activity units. The overall strategy may require expansion of
activity and reduction in another and stability in a third and then allocating
the organization's resources as required by the activity strategy.

High quality Cost Leadership Differentiation

The focus is on high- The policies aim at cut aim to achieve competitive
quality products expense & provide the advantage by doing something
regardless of costs. cheapest product different from competitors
(PEPSI & Coca-Cola)
 WHAT IS STRATEGIC HRM?

Level 3: Functional strategy is the approach a functional area

takes to achieve corporate and business unit objectives by
maximizing productivity.

It aims to develop a functional capabilities that provide a company with a

competitive advantage. If there are several different business units, each
business unit has its own functional strategy.
Marketing Strategy Product strategy- Financial strategy HR strategy
Deals with pricing, Provides the Identifies the best Identifies the
selling, distributing ability to financial course of strategic approach for
products, aiming to Develop new action and provide managing people as
capture a larger products for competitive Permanent assets.
market share and existing markets advantage through addresses needs
maintain long term & Develop new a low cost funds related to structure,
relations with products for new and a flexible ability culture; and
customers markets to raise capital effectiveness
 The Process of Personnel Planning
Workforce/employment
planning is best
understood as sub-plan 1- Reviewing organization’s strategic objectives
of the firm’s strategic
and business planning. 2. Forecasting HR future needs
For example, plans to
enter new businesses,
to build new plants, or 3. Assessment of available
to reduce activities will work force
all influence the number
Assessment of Assessment
and types of positions
labor market of internal
to be filled. At the same supply HR
time, decisions of how
to fill these positions 4. Develop HR plans to
will impact other HR fulfillment the requirements
plans, such as training
and recruitment plans. Forecasting Predict current
Outside Employees’
Candidate development
Supply needs
 Stages of HR Planning

1. Reviewing strategic objectives 2. Forecasting HR future needs

3. Assessment of Current HR 4. Develop human resources plans

The initial stage of HR planning is reviewing the corporate strategy and hence
assess the HR plans. Three strategic directions can be distinguished :

Growth strategies Stability Strategies Reduction Strategy

For example, if an Internet service company aims to double the number of its
customers within a period of 3 years, the company should plan the numbers and
categories of employees needed in order to extend the service effectively and
efficiently. Taking into account the internal and external factors
 Stages of HR Planning

2. Forecasting HR future needs

To predict HR supply and demand according to the organizational objectives and

strategies. Forecasting uses information from the past and the present to
identify expected future conditions.
Forecasting methods may be either judgmental or mathematical, they range
from a manager’s best guess to a complex computer simulation. Anyway,
forecasting is still a combination of quantitative methods and subjective
judgment.

Judgmental Methods

Estimates: is a widely used method,
it can be either top-down or bottom-
up, but essentially people who are in
a position to know are asked, “How
many people will you need next
year?”
The Delphi technique uses input from a
group of experts. These expert opinions
are then combined and returned to the
experts for a second review . The
process continues through several
rounds until the experts agree on a
judgment
 Stages of HR Planning
2. Forecasting HR future needs

Mathematical Methods

Statistical regression analysis makes a Simulation models: are computer based

statistical comparison of past
relationships among various factors.
For example, a statistical relationship
between gross sales and number of
employees in a retail chain may be
useful in forecasting the number of
employees needed to achieve the
sales target.
models that represent real situations in
intangible form. For example, an
econometric model of the growth in
software usage would lead to forecasts
of the need for software developers
 Stages of HR Planning
3. Forecasting the Supply of HR

Estimating internal supply considers the number of external hires and the
employees who move from their current jobs into others through promotions,
horizontal moves, and terminations.
It also considers that the internal supply is influenced by training and
development programs, transfer and promotion policies, and retirement policies,
among other factors.

Current Projected Projected Internal

Staffing + Inflows -- Outflows = Supply for
Level This Year This Year Next Year

Current
Stuffing level Source of Outflows
Source of The Unit Inflows • Promotions
of the unit
• External hires • Turnover
• Internal transfers • Terminations
• Promotions • Retirements
• Recalls • Deaths
 Stages of HR Planning
3. Forecasting the Supply of HR

Estimating External : The external supply of potential employees available

to the organization needs to be identified. use of trends in the industry,
and many more complex and interrelated factors must be considered such
as:

• Changing workforce composition and patterns

• Trends of graduating from schools and colleges
• Economic forecasts for the next few years
• Technological developments and shifts
• Actions of competing employers
• Government regulations and pressures
• Circumstances affecting persons entering and leaving the workforce
 Stages of HR Planning
4. Develop human resources plans

The final stage of planning involves preparing plans to fulfill the gap between the
current and desired HR structure, the organization might face one of (4) situations:

over employment over employment Shortage at Shortage at

at organization at organization organization with a organization with
with a shortage of with availability of shortage of labor in availability of
labor in the labor supply in the labor the labor market supply in the labor
market market market
•Transformational •Downsizing •Head hunting, Plan the
training •Transformational •Increase recruitment and
• Retaining training productivity of selection process
employees for current to fulfill the
potential needs employees, organization needs
in future • Shift toward
higher mechanical
technology
 The Concept of Recruitment
Recruitment is a core function of human resource
management. It refers to the overall process of
attracting suitable candidates for vacant jobs
required by the organization.

Recruiting is becoming more important as labor markets

shift. Although, recruiting can be expensive, but what
must be considered is the cost of unfilled jobs.
Several Factors Affecting Recruiting
– Supply of skilled workers
– Fewer “qualified” candidates
– Types of jobs recruited and recruiting methods
– Other HR issues and policies
– Public image of the firm
– Employment laws
 The Concept of Recruitment
Recruitment can be defined as the process of
finding and hiring the best-qualified candidate
(from within or outside of an organization) for
a job opening, in a timely and cost effective
manner. The process includes analyzing the
requirements of a job, attracting employees to
that job

HR  What are the needed jobs

Planning  How many employees
 When they are needed Recruitment Selection

Job  What Knowledge needed

Description  What skills needed
 What attitudes desired.
 The Process of Recruitment
Different approaches of recruitment are
followed according to different types and
levels of vacant jobs, generally the process
of recruitment can be represented as follow:

HR planning

Investigate other performance choices:

Outsourcing and/or working overtime

Recruitment

External Internal
sources sources

External methods Internal methods

Selection process
The Process of Recruitment
 Sources of Recruitment
Internal Recruitment
The assessment current staff to find out if any of them is qualified for the required
job vacancy. This may happen by either a promotion or an internal transfer.
1. Promotions : It refers to upgrading an employee to a higher position with high
responsibilities, facilities, status and pay. This process has a great psychological
impact over other employees for their motivation towards better performance.
2. Transfers: transfer from a unit to another, it involves shifting of people from one
job to another without any promotion in their position or grade.
3. Informal recruitment methods through informal modes of communication
is common at large companies and is the primary way in smaller organizations.
Informal recruiting methods are things like promotions and supervisor referrals.
4. From temporary to permanent: One common method is upgrading temporary
employees to full-time positions when they prove that they’ve got the skills and
ethic that permit offering them full time job.
The internal recruitment process is a career management tool, where the
organization does not select employees for the promotion but enable anyone to
apply for the job vacancy, and they can enrich or change their career path.
The internal recruitment brings the internal fairness.
 Sources of Recruitment
Internal Recruitment
There are two important considerations with internal recruitment:
HR department should have a talent
database to be able to keep records of
employees’ skills and qualifications.
Such database facilitate the process of
internal recruitment.
Advantages
• Highlights candidates’ strengths and
weaknesses
• They fit into your workplace culture.
• Candidates have a stronger
commitment to the company
• Increases employee loyalty
• Less training and orientation
For promotion or transferring
It should be considered that the
employee’s performance of previous
job is not a predictor of the new one,
as it might require different skills.
Disadvantages
• Failed applicants become
dissatisfied
• Time wasted testing unqualified
insiders who will not be considered
• preventing the diversification of
knowledge and skills of new
comers
 Sources of Recruitment
External Recruitment

External recruitment : When the business looks to fill the vacancy from any
suitable applicant outside the business. The sources are:
Is to find and interact with candidates by posting
1 Internet Recruiting job openings online or email candidates

The media depends on the positions needed as

2 Advertising newspapers are suitable for local and available jobs
& professional journals for specialized employees
Agencies provide a pool of qualified candidates
3 Employment Agencies immediately.

The potential candidates visit office of the company

4 Referrals and Walk-ins and apply for jobs that may be required in future.

College students are a significant source of entry-level

5 College Recruiting employees. Most universities maintain career placement
offices in which employers and applicants can meet.
 Sources of Recruitment
External Recruitment

The effective Advertisement has four guidelines

labeled (AIDA):

1- Attention: to attract attention of readers, or it will be missed of

ignored.
2- Interest: to develop interest in the job (by issues such as the nature of
the job – location – salary- career)
3- Desire: to create desire by spotlight the job’s interest by words such
as (travel- challenge)
4- Action: the AD should prompt action with statements such as (Call
today, or “just forward your CV today”)
 Sources of Recruitment
External Recruitment
Effective
Details in
Recruiting
Ads
Desired Candidate Qualifications
Years of experience
Three to five key characteristics of
successful candidates
Special useful work capabilities
Information on the Organization
Organizational values and culture
Primary business capabilities
Unique characteristics and
recognition
Information on the Job and on the
Application Process
Job title and responsibilities
Geographic location of job
Starting pay range
Acceptance of online applications
Where/how to submit application
Closing date of application
 Sources of Recruitment
External Recruitment

Why Use a Private Employment Agency?

• No HR department: firm lacks recruiting and screening capabilities

to attract a pool of qualified applicants.
• To fill a particular opening quickly.
• To reach currently employed individuals who are more
comfortable dealing with agencies than competing companies.
• To reduce internal time devoted to recruiting.

5–26
 Sources of Recruitment
External Recruitment
Recruiting via the Internet
It is to use the Internet to recruit talented candidates for an organization. It has
quickly become one of the primary recruitment tools for both internal and
external recruitment and third-party talent search companies. With available
electronic job boards, social media, specialized business networking sites, and
other, the size of the potential candidate pool has significantly increased
Advantages Disadvantages
• Cost-effective way to publicize job • Exclusion of qualified candidates
openings not accessing internet
• More applicants attracted over a longer • Unqualified applicants overload
period the system
• Immediate applicant responses • Personal information privacy
• Online prescreening of applicants concerns of applicants
• Wide range of job search sites
• Automation of applicant tracking and
evaluation
5–27
 Sources of Recruitment
External Recruitment
Some Top Online Recruiting Job Boards

5–28
 Sources of Recruitment
External Recruitment
Advantages
• New sources bring new perspectives.
• Training new hires may be cheaper
and faster because of prior external
experience.
• New hires are likely to have fewer
problems with colleagues.
• New hires may bring new industry
insights
29 and expertise.
Disadvantages
• The firm may select someone who
will not fit well with the job and
the organization.
• The process may cause morale
problems for internal candidates
not selected.
• New employees may require
longer adjustment periods as well
as orientation efforts.
 Sources of Recruitment
Developing and Using Application Forms

• Application form is the form organizations use to get information on

education, prior work record, and skills.
• Uses of information from applications
– Judgments about the applicant’s educational and experience
– Conclusions about the applicant’s previous progress and growth
– Indications of the applicant’s employment stability
– Predictions about which candidate is likely to succeed on the job

Uses of Application Form

Information

Applicant’s Applicant’s Applicant’s Applicant’s

education and prior progress employment likelihood of
experience and growth stability success
 Dr. Abdelnasser ghanem
31
(aahhg@hotmail.com)