CHAPTER THREE

HUMAN RESOURCE
PLANNING,
recruitment and
selection
1
 CONCEPT OF HR PLANNING
Defining Human Resource Planning (HRP)
 HRP is a process by which an organization
ensures that:
it has the right number and kinds of people
at the right place
at the right time
capable of effectively and efficiently
completing those tasks that will help the
organization achieve its overall strategic
objectives. 2
 CONT’D
The process of predetermining future
human resource needs and courses of
actions needed to achieve organizational
objectives.
Involves estimating the size and composition
of future work force to ensure survival and
growth of an organization.
Systematically
forecasts an organization's
future supply of, and demand for, 3
employees.
 HUMAN RESOURCE PLANNING
PROCESS

Demand for labor Outcomes

Demand Recruitment
Assess current exceeds
Define Establish HRs Compare demand supply
organizati corporate -- - - - - - - - - - - - -
for and supply of
on goals HRMS: human resources
mission and Job analysis
objectives supply exceeds
demand Decruitment

Supply of
human resources

4
 DEFINE ORGANIZATION MISSION

HR planning must be:

 Linkedto the organization’s overall strategy to
compete domestically and globally
 Translatedinto the number and types of
workers needed
 SeniorHRM staff need to lead top management
in planning for HRM issues
5
 CONT’D
A mission statement defines what
business the organization is in, including:
why it exists

H
who its customers are
strategic goals set by senior management
to establish targets for the organization to
achieve
Goals are generally defined for the next 5- 6

10 years.
 CONT’D
During a corporate assessment:
 SWOT- (Strengths- Weaknesses-
Opportunities-Threats) analysis determines
what is needed to meet objectives
 Strengths, weaknesses and core
competencies are identified
 Opportunities and potential threats will

be identified
 HRM determines what KSA are needed by
the organization’s HRs through a job 7
analysis.
 ASSESSING CURRENT HRS
 This step looks at jobs currently being done and
the people doing those jobs. It is based on:
a. HR Inventory
 Describes skills currently available in the
organization.
 Human resource information system (HRIS)
serves as the database for skills information.
b. Job Analysis
 Provides information about jobs currently being
8
done
Benefits of HR Inventory
Enables management to assess what skills are
currently available in the organization.
 Useful for planning the selection, training,
promotion and transfer of employees.
 Serves as a decision making tool for deploying
and effectively utilizing existing HRs
 Serves as a guide for considering opportunities
for diversification and expansion of
operations.
 Provides crucial information for identifying 9

HR-related threats to the organization.

 DEMAND FORECASTING
 Estimates future human resource needs in terms
of quality and quantity based on:
 Organization's objectives and strategies

Provide future direction to the organization.

 Revenue forecasts

Based on demand forecasts for the

products/services
Translated into a forecast of demand for
human resources.
The demand is expressed in terms of number 10

of people required and the skills needed.

 DEMAND FORECASTING
TECHNIQUES
A. Management Judgment (Executive
Judgment)
 HR demand forecast is based on managers’
judgment.
 The estimates of HR needs can be based on:

Top-down approach: top management

prepares the estimates of requirements and
sends the information to lower level
managers. 11
Bottom-up approach: lower level
managers prepare the estimates of
requirements and send the
information to top management.
Participative approach:
management & supervisors estimate
requirements through joint
consultation.
12
 CONT’D

B. Statistical Analysis
Trend Analysis: technique projects
past trends into the future.
The methods can be:
Extrapolation: Past rates of change
are extended into the future.
Indexation: A particular index is used
to forecast future needs 13
Econometric Models: Based on
analysis of variables such as sales,
production, workload

14
 CONT’D
C. Work Study Techniques
Based on work measurement.
Indicates how much time an operation
should take to complete work.
Standards are laid down which are
used to calculate human resource needs
for a given volume of work.

15
 SUPPLY FORECASTING
Estimates future sources of supply of
human resources from inside and
outside the organization
Internal sources

that increase supply can be

promotion, transfer
that decrease supply can be
resignation, retirement, dismissal,
prolonged illness or death. 16
Externalsources
can be graduates from schools
and colleges, people entering job
market, and other job seekers in the
labor market.

17
 MATCHING DEMAND AND SUPPLY
 This step matches demand and supply
forecasts to determine future shortages or
surpluses of HRs in terms of quality and
quantity.
 Additional staff will be needed to meet the
shortages
 Retrenchment/cut down will be needed for
surplus staff.
Early retirement, lay-offs, leave of absence
(paid leave), work sharing, reduced work18
hours, etc. can be used here.
 ACTION PLANS
 Action plans should be prepared to deal with
shortages and surpluses of human resources.
 They can be:

Recruitment plan,
Development plan
Retention plan
Redeployment plan
Downsizing plan, and
Flexibility plan 19
 IMPORTANCE OF HUMAN RESOURCE
PLANNING

1. Uncertainty Reduction
2. Objectives achievement
3. Environmental adaptation
4. Effective and Efficient Utilization of
HRs
5. HR development
6. Facilitates control
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STAFF RECRUITMENT
AND SELECTION

21
WHAT IS RECRUITMENT?
Recruitment:
The process of finding the right people
for the right positions at the right time.
Concerned with identifying and
attracting a pool of qualified candidates
to fulfill human resource needs of an
organization.
The quality of human resources very
much depends on the quality of recruits.

22
NEED FOR RECRUITMENT
Recruitment is needed in all types of
organizations to locate and attract potential
candidates to fulfill job vacancies.
Vacancies can occur due to:
Mobility of HRs: transfer, promotion,
retirement, resignation, dismissal, disability,
and death of employees.
Growth of Business: expansion,
diversification, acquisition, growth and job 23

redesign.
THE RECRUITMENT PROCESS

Recruitment

Internal
Locating Sources of
Recruitment External

Attracting qualified Internal

candidates to apply for
jobs External
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SOURCES AND METHODS OF
RECRUITMENT
 Sources serve as the pool for locating
prospective job applicants.
 Methods stimulate the prospective job
applicants to apply for the jobs.
The sources and methods of recruitment can be:
A. Internal sources and methods
B. External sources and methods
25
A. INTERNAL SOURCES
 Involve recruiting within the organization.
 Qualified candidates are found within the
organization to fill up job vacancies above the
entry level
 Many organizations follow the deliberate
practice of recruiting from internal sources.

26
METHODS FOR INTERNAL RECRUITING

The most common methods used for

internal recruiting are:
a. Job posting
b. Employee referrals
c. Human Resource Inventory (Skills
inventory)

27
 ADVANTAGES OF INTERNAL
RECRUITING
Better Selection:
Moral Building:
Adaptability:

Management Development:
Cost-effective:

28
 DISADVANTAGES OF INTERNAL
RECRUITMENT
 Limited Choice:
 In- breeding:
 Favoritism:

29
B. EXTERNAL SOURCES

Involve recruitment from outside the

organization.
Qualified candidates from outside are
attracted to apply for vacancies.
Widely used to make recruitment for entry-
level and skilled jobs from the labor
market.

30
METHODS FOR EXTERNAL RECRUITMENT

The most common methods used are:

a. Advertising
b. Educational institution placement
c. Employee referrals
d. Walk-ins/write-ins/electronic search

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ADVANTAGES OF EXTERNAL
RECRUITING
 Qualitative Human Resources:
 Organizational Rejuvenation:
 Environmental Adaptation:
 Balanced HR Mix:
 Fairness in Recruitment:

32
DISADVANTAGES OF EXTERNAL
RECRUITING
High Cost:
Poor Employee Morale:
Adaptability Problems:
Wrong Selection:

33
 WHAT IS STAFF SELECTION?
Selection
 The process of choosing the most suitable candidate
for a particular position from among the prospective
applicants.
 The goal is to select the right person for the right
job.
 Selection follows recruitment.
 Itis concerned with hiring as well as rejecting the
applicants.
 The process of choosing among people who apply
34

for work with an organization.

EFFECTIVE SELECTION
Effective selection process requires:
 Clearly spelled out job description and job
specification for the vacant positions.
 Sufficiently large pool of prospective
applicants.
 Series of steps through which applicants
pass.
 Selectionis a two-way process. The organization
chooses the employee. The employee chooses the
35
employer.
 THE SELECTION PROCESS
Initial screening
Failed to meet minimum
Passed qualifications
Completed application
The selection process Failed to complete application
Passed or failed job specifications
consists of eight steps.
Employment test
Failed test
Passed
Conditional Comprehensive interview
Job Offer Passed Failed to impress interviewer
and/or meet job expectations
Background examination
if required Problems encountered

Passed
Permanent
job offer Medical/physical examination
(conditional job offer made) Reject applicant
Unfit to do essential
elements of job
Able to perform 36
essential elements of
the job
 SELECTION TESTS
 Assesses the suitability of candidates to the job, and
provides objective information about the candidate.
The major types of tests can be:
 Aptitude Tests: measure aptitude for the job. test a
candidate's learning capacity.
 Achievement Tests: measure theoretical and/or
practical knowledge and skills.
 Situational Tests: abstract real life situations. Candidates
are asked to cope with the situational problems.


37

Candidates scoring low in the selection tests are rejected

Interest Tests: inventories of the
likes and dislikes of candidates in
relation to work, hobbies,
recreational activities
Personality Tests: They measure
personality dimensions of the
candidates.

38
SELECTION INTERVIEW
Face-to-face observation and appraisal of the
candidate’s suitability for the job.
 Probes the areas that cannot be addressed by the
application form or selection tests.
 Based on in-depth conversation to evaluate the
candidate's acceptability.
Related to job description and job specification.

39
 HIRING DECISION
 Marks the end of the selection process.
 Made by the competent authority in the company.
 The candidates passing the hurdles of the
selection process are given a job offer.
 Accepting job offer are issued appointment letter.
 Organizations should also notify the candidates
who have not been selected.
 The list of successful candidates should be posted
on notice board.
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PLACEMENT

 When selected candidates report for duty,

they should be placed in the right job.
 The first placement is for a probation period,
usually extending from 6 to 12 months.
 Orientation and pre-service trainings are
given to the employee during the probation
period.
 Ifthe performance is satisfactory during the
probation period, the employee is given a
permanent posting. 41
ORIENTATION
 A tool of socialization process.
 It introduces the new employee to the
organization and its work environments.
Purposes of Orientation
Familiarize employees with organizational
issues
Communicate human resource policies
Review job duties and responsibilities of the
employees.
Introduce the employees to their supervisor,
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co-workers etc.
43