by: Shawel Assfaw 1

CHAPTER THREE
 
HUMAN RESOURCE
PLANNING

04/30/2023
 Chapter Content
2

 HRP definition and concepts

 Importance of HRP

 Major reasons for HRP

 HRP process:
 Organizationalgoal and plans
 Current human resource
 Forecasting HR situation
 Implementing HR program
 Auditing and Adjusting

by: Shawel Assfaw 04/30/2023

 Chapter Objectives:
3

After studying this chapter you would be able to:

 Define human resource planning and explain why

organizations conduct it.

 Understand the basic relationship between strategic

planning and human resource planning

 Explain the human resource planning process.

 Describe some of the most common used human

resource forecasting techniques.

by: Shawel Assfaw 04/30/2023

4

 State what management can do:

When shortage of employees exists
When surplus of employees exists.
 Explain the role of inventory or employee
information in the preparation of human resource
plan.
 Distinguish between demand for and supply of
employees in an organization.

by: Shawel Assfaw 04/30/2023

 HUMAN RESOURCE PLANNING
5

 What is Human Resource Planning?

 HRP is the process of systematically reviewing human
resource requirements to ensure that the required number
of employees, with the required skills, are available when
they are needed.
 It is a means of deciding the number and type of
personnel that organization needs now and in the future.
 Then, translates the organization's objectives into the
number of employees required to meet those objectives.
by: Shawel Assfaw 04/30/2023
6

 The purpose of developing human resource

planning is to asses where the organization
is, where it is going, and what implications
these assessments have on future supplies of
and demands of human resource.
 Attempts must then be made to match

supplies and demands, making them

compatible with the achievement of the
organization's future needs.
by: Shawel Assfaw 04/30/2023
 THE IMPORTANCE OF HUMAN RESOURCE
PLANNING
7

Towards the objective of continuing healthy operations,

the organization needs to be undertaken human
resource planning.
Human resource planning is therefore:
 Assumes a crucial role in the future success or failure
of an organization.
 Enables a manager to predict his/her manpower
requirements, to determine the deployment of
personnel and to control wage and salary costs.

by: Shawel Assfaw 04/30/2023

8

 Provides management information about the existing

strength and weaknesses of the people in the
organization.
 Assesses the kinds of skills required to be developed as
well as recruited.
 Estimates human resource requirements over a specified
time frame in relation to the organization's goals.
 Provides an indication of the lead-time that is available
to evolve new strategies in selecting and training the
required additional manpower or reducing the strength
of the workforce.
by: Shawel Assfaw 04/30/2023
 The major reasons for undertaking human
resource planning.
9

 Future Human Resource Requirements

  Cope With Change
  Decreasing or Increasing Growth of Organizations
  Foundation for Human Resource Functions

by: Shawel Assfaw 04/30/2023

  In general, human resource planning:
10

 Should be planning - something done in advance

rather than just as a spur-of-the-moment reaction to
immediate pressure.
 Should guide and coordinate all personnel activities so
that they work together to support the overall strategy
rather than operate independently of one another.
 Should be responsive to both the external and the
organization environment.
 Should be strategic - linked with high level planning
rather than performed in isolation.
by: Shawel Assfaw 04/30/2023
 THE HUMAN RESOURCE PLANNING
11
PROCESS
 Planning for human resource should be tied in with
overall long-term organizational plan.
 In other words, after organizational strategic plans have
been formulated, human resource planning can be
undertaken.
 Strategic plans are reduced to specific quantitative and
qualitative human resource plans
 Most organizations identify short term and long-term
human resource needs by examining their strategic plan.
  As can be seen in the figure the human resource
planning has two components. (Refer to the HO)
by: Shawel Assfaw 04/30/2023
 These are requirements and availability.
 Forecasting human resource requirements involves
determining the type and number of people needed in an
12

organization.
 Thus, it is the responsibility of the management to compare
requirements and availability to determine whether there
will be a surplus or shortage of employees.
 If a surplus is projected, then, the organization must use
different employee reduction methods, such as early
retirements, restricted hiring, dismissal, etc.
 On the other hand, if shortage is predicted, the organization
must obtain the right type and number of people from the
labor market through recruitment and selection.
by: Shawel Assfaw 04/30/2023
13

 Although there is no universally accepted set of

procedures for undertaking human resource planning
process, there is a general agreement upon the major
processes and contents of human resource planning as
illustrated below.

 Steps in the Human Resource Planning Process.

(refer to HO)

by: Shawel Assfaw 04/30/2023

 1. Organizational Goals and Plans
14

 Human resource planning is a part of the strategic

planning for the entire organization. Moreover, to be
relevant, a human resource planning process should be
clearly tied to the organization's strategic goals.
 For example, a business firm Human Resource
Manager and his staff can not make operational plans,
unless they have information about sales forecasts,
market trends, technological advances, organizational
expansion, and the like.

by: Shawel Assfaw 04/30/2023

 2. Current Human Resource Situation
15

 The second phase of the planning process is the preparation of

an inventory of human resource within the organization.
 This is often called human resource inventory or a manpower
information system.
 The inventory consists of up-to-date information concerning
each employee's knowledge, skills and abilities.
 It enables management to assess the type and number of
employees available in the organization.
 Moreover, a summary of this sort gives planners a
comprehensive understanding of the capabilities that are to be
found in the organization's workforce.
by: Shawel Assfaw 04/30/2023
 The inventory or employee information has several important uses.
The major ones are:
16

 It enables to compare the number, types and skills

specified by the forecast with the present baseline.
 It enables to ascertain what skills must be developed
from the current personnel, via training.
 It enhances the opportunities for employees to satisfy
their career aspirations through promotion and
development.
 It enables to reconcile human resource demand with
supply.
by: Shawel Assfaw 04/30/2023
17

 This step enables planners to evaluate the status of

current human resources.
 What skills, interests, and experiences of current
employees have? What jobs are being done? How
many employees are doing particular jobs?
 Current employees are the most likely candidates to
meet future needs and should be the first ones
considered for new positions (Baird, 1990).

by: Shawel Assfaw 04/30/2023

 3. Human Resource Forecast
Human resource forecasts are attempts to predict an
18


organization's future demand for employees.

 It is a determination of the demand for employees for
given time periods in the future.
 The forecast also requires the preparation of an
estimate of the supply of people who will be available
for the selected time period.
 The supply is composed of two main parts. There are:
 an estimate of the numbers and types of personnel
presently on the payroll.
 The portion which must beby:recruited
Shawel Assfaw externally.
04/30/2023
19

 These figures for the planning period are obtained by

subtracting the current available manpower from the
projected demand.

HR demand < HR supply = Surplus

HR demand > HR supply = Shortage
HR demand = HR supply = Balanced

 If the figures are positive, employees will have to be

recruited, selected and hired; if the figures show
negative, employees may eventually have to be laid off.
by: Shawel Assfaw 04/30/2023
20

  The demand forecast is an estimate of types and

numbers of personnel the organization will require in
the future.
 It is derived from goals and plans.
 For example, the public organization's goals and plans
should provide the human resource planners with
information on such factors as projected social service,
development activities, number of population to be
served, new bureaus or departments to be created, and the
like.
by: Shawel Assfaw 04/30/2023
  Human Resource Forecasting Techniques.
21

 Forecasting technique range from

judgment to sophisticated quantitative
models. The most commonly used
techniques of forecasting are:
 Judgment and Experience
 Zero-Base Forecasting
 Bottom-up Approach
 Work Standard Data
 Key Predicative Factors.
by: Shawel Assfaw 04/30/2023
  Judgment and Experience
22

 This method is based on the estimates made by people

like executives or experts who are very familiar with
the entire nature of the jobs in the organization.
 It is appropriate for short-range forecasts.
 The manager and heads of various units of the
organization make estimates of future human resource
requirements by judgmentally converting information
on future organizational activities into numbers and
types of personnel needed.
 For example, these activities in public organization may
include services to be provided, population to be served,
by: Shawel Assfaw 04/30/2023
projects to be completed, etc.
 • Zero-Base Forecasting
23

 The zero-base forecasting approach uses the organization's

current level of employment as the starting point for determining
future staffing needs (Mondy & Noe, 1990).
 Whenever vacancies exist due to retirement, layoff, death, or
resignation, the vacant positions are not immediately filled.
 Instead, personnel requirement analysis is made to determine
whether the organization can justify filling them.
 The same procedure is followed when organizations create new
positions.
 Zero-base human resource forecasting, therefore, requires
management at different levels to thorough study and analysis
their human resource needs.
by: Shawel Assfaw 04/30/2023
 • Bottom-up Approach
24

 In bottom-up approach, managers from various levels are asked to

contribute to employment forecasting.
 It has the advantage of drawing many managers into the process
and giving them a sense that they are participating in one of the
importance activities of the organization.
 Here, unit managers send their employment needs forecasting
proposals to the top management who compare these with the plan
and finalize them.
 Human resource forecasting is often most effective when
managers periodically project their human resource needs,
comparing their current and anticipated levels, and giving the
human resource department adequate lead time to explore internal
and external source. by: Shawel Assfaw 04/30/2023
 • Work Standard Data
25

 This is a means of determining the relationship between

tasks and the number of employees needed to perform
the tasks.
 In this case many organizations have established data for
man-hours or unit times to perform tasks.
 The technique is useful only in cases where the volume
of work can be satisfactorily quantified, total production
and activities in terms of clear units are estimated and the
number of man hours required to perform/ produce each
unit is carefully calculated.
   by: Shawel Assfaw 04/30/2023
 Example:
26

 Planned output for the next year 20,000 units

 Standard our per unit 5 hours
 Productive hours per man/year 2,000 hours

 Number of direct workers required ?

by: Shawel Assfaw 04/30/2023

27

 The total projected units of work for the

organization are translated into man-hours or
man-days and the number and type of employees
by using the pre-established time standards.
 However, work standard technique cannot be

applied for estimating professional personnel

requirements.

by: Shawel Assfaw 04/30/2023

 • Key Predictive Factors
28

 Identify one major indicator with which total human

resource requirement correlates highly.
 For example, one of the useful predictors of academic staff
employment levels in the University is the number of
students to be served.
 To identify predictor variables, organization must
examine several variables such as sales volume, units
produced, or number of customers served to find which
variable or variables provides a good correlation
between the number and type of employees needed.

by: Shawel Assfaw 04/30/2023

 4. Implementation Programs
29

 After the optimal alternative for addressing

the organization's human resource issues has
been chosen, it is translated into operational
programs with specific plans, target dates,
schedules, and resource commitments.
 The implementation phase of the human

resource planning requires translating the

plan into action.
by: Shawel Assfaw 04/30/2023
30
For example:
 If a shortage of accountants in Region 5 has
been forecasted and if the plans reveal, both
recruitment plus upgrading of the present
accounting talent, then both recruitment and
training programs will have to be
strengthened and expanded.
 The following are the major implementation actions.

by: Shawel Assfaw 04/30/2023

 • Recruitment and Selection
31

 The analysis of human resource requirements

indicates a shortage of specific skills such as
accountants, economists, administrators and the
like.
 In such case, the human resource manager must

examine both the internal and the external

sources of supply, and then efforts must be made
to attract the best-qualified candidates to the
organization.
by: Shawel Assfaw 04/30/2023
32

 Most experts are agreed that the search for

manpower must always begin within the
organization where a thorough check on the
quantity and quality of existing employees can be
made to yield a manpower audit.
 The organization itself is a captive source and

when the qualifications, experiences and

capacities of manpower within is known, offering
them new avenues and openings can act as
powerful incentives. by: Shawel Assfaw 04/30/2023
 After analyzing the internal human resource
availability, the organization will have to
33

examine the labor market.

 Recruiting new personnel from the open labor

market can be costly and complicated process

that has a strong impact on organizational
effectiveness.
 In order to acquire the best-qualified people,

organizations must have a good policy to

ensure that employment conditions are
by: Shawel Assfaw 04/30/2023
sufficiently attractive.
34
 Once a pool of potential applicants has been
developed there is a need to assess this pool
to predict which candidates will assist the
organization in the attainment of its
objectives if selected.
 Here, employee selection refers to the

development of policies and procedures,

and evaluating potential employees in terms
of job specification.
 It is a means of determining, which people
by: Shawel Assfaw 04/30/2023
 • Performance Appraisal
35

 Performance appraisal is the process by which

organizations evaluate individual job performance.
 When it is done correctly, employees, their

supervisors, the human resource department, and

ultimately the organization benefit by ensuring
that individual efforts contribute to the strategic
focus of the organization (Werther & Davis, 1996).

by: Shawel Assfaw 04/30/2023

  Organizations use performance appraisal for manpower
36
planning purposes, as input into personnel information
systems.
 Moreover, it provides reliable data for management
decisions in regard to:
 employee's readiness for taking a new jobs, through
transfers and promotions
 training and management development needs.
 In general, information collected through performance
appraisals enables management to assess employees'
performance and potential for future development.

by: Shawel Assfaw 04/30/2023

 • Promotion, Transfer, Layoff and
37
Retirement
 Organizations are ever changing.
 Because of the needs of the organization and
employees, the occurrence of some sort of employee
movement is always there.
 In implementing the human resource plans, some
employees may be promoted from jobs to another
positions that are higher in pays, responsibilities and/or
organizational levels while others may be transferred to
another jobs either to fill vacant positions or to provide
the employee with new skills and to enable him/her be
a better candidate for promotion in the future.
by: Shawel Assfaw 04/30/2023
  When human resource plan reveals that the internal
38
supply of employees exceeds the organization's
demand, reduction of surplus workers becomes
unavoidable task.
 Such situation can be corrected through layoffs, early
retirements and/or restricted hiring.
 When the organization is unionized, layoff procedures
are usually stated clearly in the labor management
agreement.

by: Shawel Assfaw 04/30/2023

  Typically, workers with the least seniority are laid off
39
first.
 If the organization is nonunion, it may base layoff on
a combination of factors, such as seniority and
productivity level (Mondy & Noe, 1990).
 In early retirement some employees are reluctant, but
others may be willing to retire.
 This being the case, early retirement is supposed to be
voluntary and the organization must offer some sort of
inducement.

by: Shawel Assfaw 04/30/2023

 • Training and Development
40

 Training and management development must be in the context

of the organization's human resource development policy.
 They must be based on recognized needs such as:
 changes in technology
 the introduction of new products
 changes in organizations set-up
 organization's desire to upgrade the skills and knowledge of
employees with a view to help them do their current jobs properly
and prepare them for future responsibilities, and the like.
 The training and management development programs are
relevant and useful only when they are implemented towards
the attainment of organizational objectives.
by: Shawel Assfaw 04/30/2023
 • Motivation and Compensation
41

 The system of motivation and compensation should serve to

help the organization achieve the manpower plan.
 Compensation is what an organization provides its
employees in exchange for their work contribution.
 If the organization is not paying competitive rates, the
current employees are likely to leave the organization.
 Pay dissatisfaction not only affects the quality of work life
but it also has a trouble in recruiting and retaining
employees.
 On the other hand, if the treatment of employees is
perceived to be arbitrary, then the organization will also
by: Shawel Assfaw 04/30/2023
have problem of meeting its human resource requirements.
 5. Audit and Adjustment
42

 Human resource planning requires considerable

time, personnel, and financial resources.
 The return on this investment may not justify the
expenditure for small firms.
 Increasingly, however, large organizations use
human resource planning as a means of achieving
greater effectiveness (Werther & Davis, 1996

by: Shawel Assfaw 04/30/2023

 For any of various reasons, the human resource
43 programs for meeting the desired targets may be falling
short of organizational objectives.
 A system for evaluating and measuring progress should
be set up.
 Many systems of measurement can be used depending
upon the specific program being evaluated.
  Moreover, another reason for reviewing progress is to
check if changes in the human resource plans are made
necessary, because of changed circumstances or because
of the original planning has been proven wrong.

by: Shawel Assfaw 04/30/2023

 by: Shawel Assfaw 44

CHAPTER 4
HUMAN RESOURCE
MANAGEMENT
FUNCTIONS

By: Shawel Assfaw

04/30/2023
 CHAPTER OBJECTIVES
45

After studying this chapter, you would be able to:

 Define: Recruitment, Selection, Orientation,

Performance appraisal, Transfer, promotion, demotion,

termination and retirement
 Describe how recruitment and selection strategies

depend on job analysis and human resource planning.

 Identify the different sources and methods of

recruitment and know the various alternatives to

recruitment.
 Describe the recruitment and selection processes.
by: Shawel Assfaw 04/30/2023
 Objectives…
46

 Explain the role tests and interviews play in selecting the

right person for a vacant job.
 Identify the environmental factors that affect the selection
process.
 Explain orientation and describe its importance.
 Define performance appraisal, realize the main reason for
appraising performance and describe the performance
appraisal process and methods.
 Distinguish the differences among placement,
termination, promotion, transfer, demotion and
termination. by: Shawel Assfaw 04/30/2023
 HUMAN RESOURCE MANAGEMENT FUNCTIONS

47

Staffing Organizational Jobs

 The achievement of organizational objectives largely

depends on effective utilization of human resources.

 In today's highly competitive market, the selection of the

right person, in terms of quality and quantity, have far-

reaching implications for any organization.
 Hence, the maintenance of staffing system becomes the

important management functions.

 Staffing refers to the process of attracting, selecting, and

placing of employee in the position.

by: Shawel Assfaw 04/30/2023
 Recruitment

48

 The Recruitment Process

 Recruitment is the process of attracting individuals on
a timely basis, in sufficient numbers and with
appropriate qualifications, and encouraging them to
apply for jobs with an organization.
 Once organizations identify job openings, through
human resource planning, managers need to design and
implement recruitment programs to attract qualified
applicants.
by: Shawel Assfaw 04/30/2023
49

 Human resource planning indicated the job vacancies

now and in the future.
 Once vacant positions have been identified,
management initiates an employee requisition.
 The employee requisition is a document that specifies
job title, department, the date the employee is needed
for work and other related details.
 With this information, the recruiter can refer to the job
description to determine what each job requires.

by: Shawel Assfaw 04/30/2023

50
 The next major decision concerning
recruitment is to identify the sources
of recruitment.
 This is a means of determining

whether competent personnel are

available within the organization (the
internal source) or must recruit
externally.
by: Shawel Assfaw 04/30/2023
 Sources of Recruitment

51

 The objective of recruitment is to provide a

sufficient group of qualified candidates for
employment.
 In order to realize this recruitment

objective, organizations make use two

sources of recruitment.
 These are internal and external sources.

by: Shawel Assfaw 04/30/2023

 Internal Recruitment

52

 This usually takes the form of employee promotion or

transfer within an organization.
 Internal recruiting improves the probability of a good
selection.
 Moreover, it has the following advantages.
 It can be a motivating factor for employees, since; it lets
them know that hard work can lead to better jobs.
 Internal candidates do not need the extensive
familiarization with organizational policies.
 Internal recruiting efforts are much less expensive than
external efforts. .by: Shawel Assfaw 04/30/2023
  Some of the major disadvantages of internal
53 recruiting are:
'Inbreeding' is a drawback..
Inadequacy of supply.
Recruiting friends/ relatives.
 In order to acquire candidates within the
organization, who are capable of filling
vacancies, organizations, use an approach
called job posting and job bidding.

by: Shawel Assfaw 04/30/2023

 Job Posting and Job Bidding
54

 Job posting is a method of internal recruitment, which can facilitate

promotion and transfer within the organization.
 It is a procedure used to notify the current employees that job
openings exist.
 Job bidding, on the other hand, is a technique that permits
employees who believe that they possess the required qualifications
to apply for a posted job.
 Then, through self-nominations or the recommendation of a
supervisor, employees who are qualified and interested in the posted
opening report to the human resource department and apply.

by: Shawel Assfaw 04/30/2023

 Activity
55

 Do you think that internal recruitment

avoids the necessity (need) of external
recruitment? Why or why not?

by: Shawel Assfaw 04/30/2023

 External Recruitment

56

 When vacant positions can not be filled internally, the

desired employees must be attract from a number of
external sources.
 The following circumstances require external
recruitment:
 to fill entry- level jobs;
 to acquire skills not possessed by current employees, and
 to obtain employees with different backgrounds to
provide new ideas.

by: Shawel Assfaw 04/30/2023

 External recruiting can offer many advantages.
57

 Outside people can often bring new and

innovative ideas to the workplace.
 New recruit is less susceptible to conformity
pressures and other negative group phenomenal
that adversely affect employee morale and
productivity.
 It is less expensive to hire a well-trained
specialist or professional from outside the
organization than to train and develop existing
by: Shawel Assfaw 04/30/2023
personnel.
58
Depending on the type educational
qualifications desired, individuals may
be attracted from a member of
external sources. These are:
 High Schools and Vocational Schools
 Colleges and Universities
 Walk-ins and Write-ins
 Self-employed Workers

by: Shawel Assfaw 04/30/2023

 External Recruitment Methods
59

 Once recruitment sources are

identified, organizations then seek to
attract job seekers by specific
recruitment methods. Advertising,
employee referrals; and employment
agencies are external recruitment
methods most commonly used by many
organizations. by: Shawel Assfaw 04/30/2023
 Advertising
60

 Many job seekers are attracted through advertising.

 It is a means of communicating the organization
employment requirements to the general public.
 To this effect, various media are used such as daily
newspapers, magazines, television and radio
broadcasts.
 The advertisements should provide a clear and honest
picture of the job and also the organization to the
prospective employees

by: Shawel Assfaw 04/30/2023

 Employee Referrals
61

 The current employees refer job seekers from out side the
organization.
 The technique is inexpensive and effective – when urgently required
within the organization.
 Advantages:
1. Employees with hard-to-find job skills may know others who do the
same work.
2. New recruits already know something about the organization from the
employees who referred them.
3. Employees tend to refer their friends, who are likely to have similar
work habits and attitudes.
However, employee referrals appear tend to maintain the status quo
of the workforce in terms of race,by:religion, sex, and other
Shawel Assfaw 04/30/2023
characteristics, possibly leading to charges of discrimination.
 Employment Agencies

62

 An employment agency is an organization that helps

firms to recruit employees and, at the same time, aids
individuals in their attempts to locate jobs.
 They conduct recruitment and selection activities for
many organizations.
 For example the main public employment agency in Ethiopia
is the Civil Service Commission which coordinates
recruitment and selection functions for service organizations,
where as the Ministry of Social Affairs is responsible for all
labor cases regarding workers in the production
organizations. by: Shawel Assfaw 04/30/2023
 ALTERNATIVES TO RECRUITMENT
63

 Recruitment is not always the best method to fill vacant

positions in an organization.
 Recruitment and selection are not only time consuming
activities but also expensive.
 Moreover, they don't solve the immediate employee demand
of an organization.
 Therefore, an organization should carefully consider all
viable alternatives before involving in recruitment functions.
 Alternatives to recruitment include overtime, temporary
employees, subcontracting and employee leasing.
by: Shawel Assfaw 04/30/2023
 Overtime

64
Most commonly used technique to deal with temporary increase
in work volume.
 The Organization is able to satisfy employee demand while
avoiding recruitment, selection and training costs.
 Some of major problems of related to the use of overtime
include the following.
1.Employees may become fatigued and lack the energy to perform at a
normal rate, especially when excessive overtime is required.
2.Employees may, consciously or not, pace themselves so that
overtime will be assured.
3.Employees may elevate their standard of living to the level
permitted by the additional income. Then, when overtime is no
longer required, and the paycheck shrinks, employees may become
disgruntled. by: Shawel Assfaw 04/30/2023
 Temporary Employees
65

 The total cost of permanent employees is usually high.

 To minimize costs and maintain flexibility as work
volume varies, most organizations make use of temporary
employees.
 The costs of recruitment, selection and employee benefits
are avoided since organizations will agree with the
employee to only pay wage for a specific period of time.
 quality control problems and additional training expenses.
 degree of loyalty to the organization that a permanent
employee has.

by: Shawel Assfaw 04/30/2023

 Subcontracting
66

 Another alternative of meeting increases in

demand for employees is choosing
someone else as a sub contract to perform
tasks.
 This approach has a special appeal when

the subcontractor actually has greater

expertise in producing certain goods or
services.
by: Shawel Assfaw 04/30/2023
 Employee Leasing
67

 In this method, organizations acquire certain

employees by contracting for the services of
employees from another organization.
 Instead of the organization having to recruit,

select and hire employees, they simply lease

employees.
 Employee leasing is desirable for small

business organizations because it eliminates

the problem human resources management.
by: Shawel Assfaw 04/30/2023
 SELECTION
68

What is Selection?
  The human resource planning - recruitment – selection.
 Selection is the process of choosing from a group of

applicants the individual best suited for a particular

position.
 The purpose of selection is to identify the recruits that

most likely help the organization in achieving its

objectives.
 Selection is affected by, and also affects other human

resource management activities. For instance:

by: Shawel Assfaw 04/30/2023
69
 Job analysis identifies the personal attributes to seek out
among job candidates.
 Human resource planning can play a role in employee
selection by providing a forecast of position openings.
 Recruiting is related to selection in that a high selective
selection procedure requires the recruitment program to
generate a larger or more qualified candidate pool.
 Training is, if selection neither does nor results in hiring
employees with the necessary skills, training might be
used to impart those skills.
 etc by: Shawel Assfaw 04/30/2023
 The Selection Process

70
The selection process is a series of specific steps
through which job candidates pass.
Preliminary reception of applications
Selection tests
Selection interview
References and back ground checks
Hiring Decision
Medical examination
Employed individual by: Shawel Assfaw 04/30/2023
  Preliminary Reception of Applications
71

  The organization examines the applications to

check whether there is a match between the
applicants' qualification and the vacant position.
 The information requested on application

generally contains sections for personal data, job

interest, education and training and work-related
history.
 Those applicants who best satisfy the selection

criteria will be selected for selection tests.

by: Shawel Assfaw 04/30/2023
 Selection Tests
72

 These are instruments that enable organizations to assess the

match between the prospective employees and the
requirement of job opening.
 They enable the management to make rational hiring decision.
On the other hand, ability and motivation to perform a task
determine employee job performance.
 Selection tests, therefore, may accurately predict an
applicant's ability to perform the job, but be less successful in
indicating the extent to which the individual will want to
perform it.
 There are various kinds of tests, of which:
 performance tests,

 simulations of performance by:

andShawel Assfaw 04/30/2023
 Characteristics of Selection Tests

73

Well-designed and properly administered tests have

the following characteristics. These are:
 Standardization
 Objectivity
 Norms
 Reliability
 Validity

by: Shawel Assfaw 04/30/2023

  Selection Interview
74

 Interview is a formal conversation conducted to assess

the suitability of candidate for a particular job.
 The interviewer seeks to answer three broad questions.
These are:-
 Can the applicant do the job?
 Will the applicant do the job?
 How does the applicant compare with others who are
being considered for the job?

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75

 The specific content to be used in selection interviews

varies from organization to organization and the level
of the job. However, the following general topics
(Mondy & Noe, 1990) appeal consistently in
interviews:
 Academic Achievement.
 Personal Qualities.

 Occupational Experience.

 Interpersonal Competence.

 Career Orientation.
by: Shawel Assfaw 04/30/2023
 Types of Interviews
76

 Interviews have to be appropriate for the job and the

candidate.
 They are tools used by many organizations to predict
applicant future success.
 Moreover, interviews solicit the following types of
information from applicants. These are:-
 ability to perform the job;
 motivation to stay on the job; and
 adaptability to the job situation
by: Shawel Assfaw 04/30/2023
77

There are different interview types. Organizations may

use one or more of the interview types to select the best
among applicants.
In general, interview types that are used are:-
 Structured interview
 Unstructured interview
 Mixed interview
 Behavioral interviewing
 Stress interview
by: Shawel Assfaw 04/30/2023
  References and Background
78 Checks
 Is the applicant a good, reliable worker?
 Are the job accomplishments, titles, educational
background, and other facts on the resume' or
application true?
 What type of person is the applicant?
 Most important, what information is relevant to
matching the applicant and the job?

by: Shawel Assfaw 04/30/2023

  For a letter of recommendation to be useful, it must
meet certain conditions:
79  The writer must have know the applicant's performance
level and be competent to assess it.
 The writer must communicate the evaluation effectively
to the potential employer.
 The writer must be truthful.
 Another major reason for conducting references and
background checks is to verify candidate's credential.
 It is important to bear in mind that some people are
not what they present themselves to be and not even
whom they say they are.
 Background checks can confirm or disprove claims
made by job applicants. by: Shawel Assfaw 04/30/2023
 Hiring Decision
 It is the most critical step of all: making the actual hiring
80
decision.
 Manager's decision to select those individuals best suited for
employment must be based on reliable and valid information.
 Before making the final employment decision must:
 be familiar the job requirements.
 organize a forum with the selection committee or human resource
department, whereby the entire selection process is reviewed.
 be convinced that rational decision is made at every stage of the
selection process.
 obtain information from the immediate supervisor of the new
employee concerning the match between their qualifications and
the requirements of the new vacant position.
 It is important to keep a waitingby:list.
Shawel Assfaw 04/30/2023
 Medical Examination

81

 After the hiring decession has been made, the next

process of selection involves a medical examination
for the successful candidate.
 In most cases, a job offer is conditional upon
presentation of a medical certificate that testifies the
applicant is both mentally and physically capable of
performing the job in question.

by: Shawel Assfaw 04/30/2023

  Employed an individual
82

 If there is no disqualifying medical problems

during the examination, the candidate can now be
employed and be given a letter of employment.

by: Shawel Assfaw 04/30/2023

 Environmental Factors Affecting the Selection Process

83

 The following environmental factors can

affect the selection process:
 Legal Considerations
 Speed of Decision Making
 Organizational Hierarchy
 Application Pool
 Type of Organization
 Probationary Period
by: Shawel Assfaw 04/30/2023
 Orientation
84

 Orientation, therefore, is a formal program of

indoctrination to introduce new employees to their job
responsibilities, organizational policies, co-workers,
and work environment (Holt, 1993).
 The orientation program is composed of two elements.
 The first involves general topics of interest to most
employees which includes organizational issues and
employee benefits, and
 job-related issues of concern only to specific jobholders.

by: Shawel Assfaw 04/30/2023

 Purposes of Orientation

85
Orientation serves a number of purposes if effectively
done. In general, the orientation process is similar to
what sociologists call socialization.
 The major purposes of orientation (Holt, 1993) are as
follows:
 It develops realistic job expectation.
 It improves productivity
 It saves time and effort
 It improves employment stability
 It reduces conflict
by: Shawel Assfaw 04/30/2023
 Performance Appraisal
86

 What is performance appraisal?

 Performance appraisal is a formal system of periodic review
and evaluation of an individuals job performance (Mondy &
Noe, 1990).
 It occurs constantly in both public and private organizations.,
 performance appraisal data enables management:
 to help with career planning, training and development, pay
increases, promotion and placement decisions.
 to assess the success of recruitment, selection, placement, training
and development programmes, and other related activities.

by: Shawel Assfaw 04/30/2023

  
Uses of Performance Appraisal

87

 Performance improvement.
 Compensation adjustments.
 Placement decisions.
 Training and development needs.
 Career planning and development.
 Staffing process deficiencies.
 Informational inaccuracies.
 Job-design errors.
 Equal employment opportunity.
 Feedback to human resources.
by: Shawel Assfaw 04/30/2023
 The Performance Appraisal Process
88

 In order to realize the purpose of performance appraisal

organizations should carefully plan appraisal systems and
follow a sequence of steps. (as illustrated in the figure in the
handout)
1. Establishing Performance Standards
2. Communicating Standards to Employees
3. Measuring Performance
4. Comparing Performance with Standard
5. Discussing Appraisal with Employees
6. Initiating Corrective Action
by: Shawel Assfaw 04/30/2023
 Responsibility for Appraisal
89

Effective appraisals can be done by those

who have:
 the opportunity to observe performance;
 the ability to translate observation into
useful assessments;
 the motivation to provide useful
performance evaluations.

by: Shawel Assfaw 04/30/2023

 Responsible for employee's
90
performance appraisal.
 Immediate Supervisor
 Peer Evaluation
 Self-Appraisal
 Subordinate Evaluation
 Group Appraisal
 Combinations

by: Shawel Assfaw 04/30/2023

91

Thank
you!
by: Shawel Assfaw 04/30/2023