HUMAN

RESOURCE
PLANNING AND
RECRUITMENT
PROCESS
Dr Priyanka
Alliance School of Business
CONTENTS
• Human Resource Planning, Process, and implementation

• Workforce planning & forecasting, Trend Analysis, Ratio Analysis,

Replacement chart, Markov Analysis

• Recruitment Process

• Internal v/s external recruiting

• Recruiting diverse workforce

• Challenges in effective recruitment

 • Managerial function for coordinating the
requirements, for and availability of different types
of employees.
Meaning
and • This involves ensuring that the organisation has
enough of right kind of people at right time and also
Definition adjusting the requirements to the available supply.

• HRP is a deliberate strategy for acquisition,

improvement and preservation of enterprise’s
human resources.
 Specifically, HRP is required to meet
following objectives:

• Forecast HR requirement.
Need of
• Cope-up with the change — in market
HRP conditions, technologies, products,
government regulations and policies, etc.
• Use existing HR productivity.
• Promote employees in a systematic manner.
 • It is future oriented
• It is a continuous process
Features of • Optimum utilization of resources
HRP • Both Quantitative (right number) and
qualitative (Right kind)
• Long term and short term
 Importance

CREATE RESERVOIR PREPARES PEOPLE EXPAND OR CUT COST SUCCESSION

OF TALENT FOR FUTURE CONTRACT PLANNING
Process of HRP
Organisational Objectives and Policies
• The planning process is influenced by overall organisational objectives and the
environment of business.

• Organisational objectives are defined by the top management and the role of HRP is to
sub serve the overall objectives by ensuring availability and utilization of human
resources.

• HR plans should be made based on organisational objectives i.e. the objectives of the HR
plan must be derived from organisational objectives.
Forecasting demand for labour
• Demand forecast is the process of estimating the future quantity and quality of people
required.

• The basis of the forecast must be the annual budget and long term corporate plan,
translated into activity levels for each function and department.

• Demand forecasting must consider external and internal factors.

Forecasting demand for labour

• The external factors are competition, economic climate, laws and regulatory bodies,
changes in technology and social factors.

• Internal factors include budget constraints, production levels, new products and services,
organisational structure and employee separations.
Forecasting demand for labour
• Demand forecasting is not very accurate over a long-term period.

• For short range planning of less than a year, a fairly accurate forecast is perhaps possible.

• No technique exist that can take into account all the parameters and circumstances
required for accurate long-term estimation of manpower needs.
Techniques of demand forecast
• There are both quantitative and qualitative approaches for forecasting human resource
demands. While quantitative methods are heavily reliant on mathematical and statistical
analysis, qualitative forecasts generally depend more on managerial judgement
techniques.

• Managerial judgement
• Ratio-trend analysis
• Work study techniques
• Delphi technique
• Flow models
Ratio Analysis
• Ratio Analysis is a forecasting technique for determining future staff requirements
by using ratios between, for example, sales volume and number of employees
needed.

• The forecasts are based on the ratio between any causal factor and the number of
employees required.

• Ratio analysis assumes that productivity remains the same.

Trend Analysis
• Trend analysis means studying a firm’s past employment needs over the years to
predict the future.

• The purpose is to identify trends that might continue. It provides an initial

estimate.

• Trend analysis is a strategy that can be successfully applied in non-changing

environments that are relatively static 
HR supply forecast
• To determine whether organisation will be able to procure the required number of
personnel and the sources for such procurement.

• Supply forecasts measures the number of people likely to be available from within
and outside an organisation.
HR supply forecast

• Internal supply - by way of transfers, promotions, retired employees &

recall of laid-off employees, etc.

• External supply - availability of labour force in the market, literacy

rate, rate of population, technological development, Reward system
based on education, KSA.
Techniques of supply forecast

• Skill and Management Inventories

• Succession planning

• Replacement Chart

• Markov Analysis
Skill Inventories
• Skills inventory is an individualized personnel record held on each employee
except those currently in management or professional positions. These records are
entered in the organization’s HRMS database.

Typically, a skills inventory contains information for each individual on the

following areas:
• Personal information
• Education, training, skill competencies
• Work history
• Performance ratings
• Career information
• Hobbies and interests
Management Inventories
• Management inventory is an individualized personnel record for managerial,
professional or technical personnel that includes all the elements of skills
inventory with the addition of information on specialized duties, responsibilities
and accountabilities.

It is considered to be enhanced skills inventories because they contain above

information and the following:
• History of management or professional jobs held
• Record of management or professional training courses and dates
• Key accountabilities for current job
• Assessment center and appraisal data
• Professional and industry association membership
Succession Planning
• Succession Planning is a long-term process of developing a successor
(selected from a pool of candidates).

• Done based on perceived competency

• Used for management or critical positions.

Succession Planning
Replacement Chart
• Replacement chart is a succession planning tool that outlines significant job
responsibilities in a company, as well as present and potential job gaps, assist
companies and visualize critical job functions.

• For each empty position, specific competencies are defined, and then
employees of the organization with the requisite competencies are
categorized, resulting in the identification of possible replacements.

• Roles contain details like possible replacements, age, qualifications,

background, gender, and advancement prospective in replacement charts.
Replacement Chart
• After that, a comparison of the probable candidates’ experience
and skill sets with those necessary for the post is carried up. With
that the organization will be able to structure its succession
planning and identify internal KSAs.

• Replacement charts are updated on a regular basis, particularly in

reaction to changes in economic conditions or company activity.
Replacement Chart
• The following questions are answered by the replacement charts:

• Employee’s organizational background, as well as the

competencies they possess?
• Who are the most qualified candidates for a job vacancy?
• In comparison to another employee, what are the advantages of
picking a certain individual for the current position?
Replacement Chart
Markov Analysis

• Named after Russian mathematician Andrei Andreyevich Markov.

• Also Known as Transition matrix or Markov matrix.

• Helps to predict internal employee movement from one year to

another by identifying percentages of employees who remain in their
jobs, get promoted, demoted, transferred or exit from the organization
Markov Analysis
• The matrix show as probabilities the average rate of historical
movement from one job to another.

• For a Supervisor, for example, there is a 10% probability of his exit in

1 year, 0% probability of promotion to manager, a 20% probability of
promotion to assistant manager, and a 60% probability of being a
supervisor this time next year.

• The transition matrix form the base for computer simulations of the
internal flow of people through a large organization over time.
Markov Analysis

Transition Matrix for 1 year

HR programming

Once the Demand and Supply is forecasted, the two must be

reconciled or balanced in order that vacancies can be filled by
the right employees at the right time.
HR Plan Implementation

• Implementation requires converting HR plan into action.

• A series of action plan are initiated as a part of HRP

implementation.

• Recruitment, selection, placement, T&D, Retraining,

Deployment, Retention Plan etc.
HR Control and Evaluation

• The HRP should include budget, targets and standards.

• It should also clarify responsibilities for implementation and

control and establish reporting procedures which will enable
achievements to be monitored against the plan.
Action Plan
Surplus: Freeze hiring, end contract with outsourced employees,
encouraging older employees to retire early (VRS),

Shortage: Expand recruitment process, train existing employee, use

Contingent workers (With freelancers, consultants, contractors)
Recruitment
• Recruitment involves the creation of a pool of available
human resources from which the organisation can draw
when it needs additional employees.

• It is the process of attracting applicants with certain

skills, abilities, and other personal characteristics to job
vacancies in an organisation.
Recruitment
• The need for recruitment may arise out of:

(i) vacancies due to promotion, transfer, termination,

retirement, permanent disability, or death;

(ii) creation of vacancies due to business expansion,

diversification, growth etc.
Definition

“Recruitment is a process to discover the sources of

manpower to meet the requirements of the staffing
schedule and to employ effective measures for attracting
that man­power in adequate numbers to facilitate
effective selection of an efficient working force”.
Dale Yoder
Recruitment Planning
• Plans about the number and types of applicants to be
contacted.

• Plan to attract more applicants than you need to hire.

• Type of contacts means type of people to be informed

about the hiring. It depends on tasks and responsibilities
involved and qualification and experience expected.
Strategy Development
• Make or buy hire less skilled and train them/ hire skilled workers

• Technological Sophistication: methods used in recruitment. This decision is

influenced by available technology

• Where to look: objective is to reduce cost. n general, national market for

managerial and profession employees, regional and local market for technical
employees and local market for clerical and blue collar employees.

• How/when to look: Sources of recruitment

Sourcing
Involves two steps:

• Source activation: no actual recruiting takes place unless managers verify

that vacancy does exist. If firm has planned well and developed its sources
and search methods activation will result in flood of application.

• Selling: objective is attract a pool of applicants but organisations should

resist overselling their company. In selling, both message and medium need
attention.
Sourcing
Screening
• Integral part of recruiting process/ first step in the selection process.

• Objective is to remove unqualified candidates

• Involves scrutiny and shortlisting

• It is practical and legal necessity to ensure that good candidates are not
screened out and are judged based on knowledge, skill, ability
required for job.
Evaluation and Control
Evaluation of recruitment process

• Return rate of applications sent out

• Number of suitable candidates for selection
• Retention and performance of candidates selected
• Cost of recruitment
Evaluation and Control
Evaluation of recruitment Methods

• Number of initial enquiries

• Number of candidates shortlisted
• Number of candidates recruited
 Traditional Recruitment
• Print ads in newspapers with good circulation.

• Putting up vacancies at the gates of the factory (gate hiring).

• Sourcing candidates from the database of employment exchanges set up in different states.

• Asking existing employees to refer suitable candidates for existing vacancies.

• Campus hiring by visiting campuses.

• Internal hiring.
 Modern Recruitment
• Posting vacancies on job portals and social media.

• With advent of technology many companies leverage Skype and video

conferencing to conduct preliminary interview with the objective of saving on
time , money and other resources of not only organisation but also that of the
candidate.
 Modern Recruitment
• AI
Artificial intelligence is an extremely used recruitment method nowadays. It
streamlines the process by shortlisting the candidate based on skills and
capabilities using chatbots, analysis, and talent rediscovery.

• Social Media
Using LinkedIn, Twitter, Instagram, Facebook or Tumblr, you can find lots of
professionals with the right skills and expertise.

Networking Events
• HR events, job fairs, open houses, seminars, and conferences
 Diverse workforce
• Diversity in the workplace means that a company employs a wide range of
diverse individuals with different characteristics. 

• By implementing that mindset, your company will become a more inclusive

place for people of varying gender, age, religion, race, ethnicity, cultural
background, sexual orientation, languages, education, skill, abilities,
Professional background etc.

• Consequently, creating a more accepting culture has a strong positive effect

on individuals and connects everyone in your company. 
 Strategies to recruit a more diverse workforce

Ensure Diversity on Your Shortlisting and Interview Panels

• Unconscious bias is very real.

• With the best intentions in the world, a homogenous shortlisting team or

interview panel will struggle to effectively recruit a diverse workforce.

• In addition, if a candidate arrives for an interview and does not see anyone
like them, they might feel alienated and conclude that your company isn’t
for them.
 Strategies to recruit a more diverse workforce

Revise Your Job Ads

• Beware of gender-coded words.
• Only list essential requirements that are really essential. Did you know that
on average, men will apply for a job when they meet just 60 percent of the
criteria?
• Highlight inclusive benefits such as shared parental leave and flexible
working (more on that in a minute).
• If your job requires a degree, avoid insisting that degree must be from an
“elite” or Ivy League university.
• Avoid jargon and unnecessarily complex language.
 Strategies to recruit a more diverse workforce

Showcase Diversity in Your External Communications

• Does your social media channels, recruitment videos, advertising materials, and other
external communications feature a diverse range of people? If not, you could be
discouraging underrepresented candidates from applying.

• An older person is unlikely to apply, even if they would excel at the work, if everyone
they see associated with your company is in their twenties. A Black person may feel
alienated if they see nothing but white faces. And so on.
 Strategies to recruit a more diverse workforce

Ask About Adjustments at Interview Stage

• This point tends to be most relevant to candidates with disabilities but can also apply in
other cases.

• A candidate from an underrepresented group is more likely to apply for a job at your
company if you show that you are making a proactive effort to be inclusive and accessible.

• An easy way to do this is to ask if they require any adjustments to make the interview
process accessible.

• Examples might include ramp access to your building for a wheelchair user, a sign language
interpreter for a Deaf candidate, or an accessible parking space close to the building.
 Strategies to recruit a more diverse workforce

Use Jobs Boards Aimed at Underrepresented Groups

• Don’t stick to LinkedIn and the large jobs boards. There are jobs websites aimed
specifically at candidates from underrepresented groups.

• OutProNet is a diversity-based jobs board.

• Hire Autism is a jobs board for those on the autistic spectrum.
• Recruit Disability is a jobs board for people with disabilities.
• 70 Million Jobs is a jobs board for ex-offenders and those with criminal records.
• Pink Jobs is a jobs board for LGBTQ+ people.
• TJobBank is a jobs board for transgender people.
Challenges in effective
Recruitment
• Great candidates are often fielding multiple
offers at once
• There’s a shortage of talent with the skills
the company needs
• Reaching and attracting suitable candidates
• Testing candidates’ skills accurately and
fairly can be tricky
• Your application process is inconvenient
• Diversity and Inclusions