Human Resource Planning, Recruitment and Selection
Meaning
The main objective of having human resource planning is to have an accurate number of employees
required, with matching skill requirements to accomplish organisational goals.
Importance of Human Resource Planning
1. Human resource planning meets the organisation need for right type of people in right number at
right times.
2. By maintaining a balance between demand for and supply of human resources, human resource
planning makes optimum use of human resources, on the one hand, and reduces labour cost
substantially, on the other.
3. Careful consideration of likely future events, through human resource planning might lead to the
discovery of better means for managing human resources. Thus, foreseeable pitfalls might be avoided.
4. Manpower shortfalls and surpluses may be avoided, to a large extent.
5. Human resource planning helps the organisation create and develop training and succes-sion planning
for employees and managers. Thus, it provides enough lead time for internal succession of employees to
higher positions through promotions.
6. It also provides multiple gains to the employees by way of promotions, increase in emolu-ments and
other perquisites and fringe benefits.
7. Some of the problems of managing change may be foreseen and their consequences miti-gated.
Consultations with affected groups and individuals can take place at an early stage in the change
process. This may avoid resistance for change.
8. Human resource planning compels management to asses critically the strength and weak-nesses of its
employees and personnel policies on continuous basis and, in turn, take corrective measures to improve
the situation.
9. Through human resource planning, duplication of efforts and conflict among efforts can be avoided,
on the one hand, and coordination of worker’s efforts can be improved, on the other.
10. Last but no means the least, with increase in skill, knowledge, potentialities, productivity and job
satisfaction, organisation becomes the main beneficiary. Organisation is benefitted in terms of increase
in prosperity/production, growth, development, profit and, thus, an edge over its competitors in the
market.
Benefits of HRP
1. Anticipating future requirement: Thru this process of HRP, the company is able to find out how
many people will be required in future. Based on this requirement the company could take
further actions. This method also helps the company to identify the number of jobs which will
become vacant in the near future.
2. Recruitment and selection process: The recruitment and selection process is a very costly affair
for a company. Many companies spend lakhs of rupees on this process. Therefore recruitment
and selection must be carried out only if it is extremely necessary. HRP process helps to identify
whether recruitment and selection are necessary or not.
3. Placement of personnel: Since the HRP process is conducted for the entire organization, we can
identify the requirements for each and every department. Based on the requirement, we can
identify existing employees and place them on those jobs which are vacant.
4. Performance appraisal: HRP make performance appraisal more meaningful. Since feedback is
provided in performance appraisal and employee is informed about his future chances in same
company, the employee is motivated to work better. Information for all this is collected from
HRP process.
5. Promotion opportunity: HRP identifies vacancies in the entire organization including all the
branches of all the company. Therefore when the company implements promotion policy it can
undertake its activities in a very smooth manner.
6. Training: Successful HR planning includes training models and procedures. This training includes
new-hire training to teach new employees about the company culture, internal databases,
software, and the skill sets necessary for specific positions. The benefit of this type of training is
that all employees are taught the same thing in the same manner, which creates consistency
and accuracy in daily work. Other training models include information about new company
initiatives, new product roll outs, and career progression classes.
Recruitment
Meaning
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 recruitment process includes analyzing the
requirements of a job, attracting employees to that job, screening and selecting applicants, hiring, and
integrating the new employee to the organization.
Sources of Recruitment
1. Internal Sources: These are found within the organization itself. They are classified into:
a) Promotions: It refers to promoting or upgrading an employee who is already existed in the
pay roll and contributed for organizational performance. It is done by shifting an employee
to a higher position with high responsibilities, facilities, status and pay. Usually, many
companies fill higher job vacancies by promoting employees who are considered fit for such
positions. This is due to fact that it has a great psychological impact over other employees
for their motivation towards better performance.
b)
Transfers: It is an alternative technique to promotion. Under it, employees are internally
recruited through transfer from one work place to another. It means, transfer refers to the
process of interchanging the job duties and responsibilities of employees from one place to
another or from one department to another. It involves shifting of people from one job to
another without any promotion in their position or grade. It is a good source of generating
qualified employees from over-staffed departments.
2. External Sources: These are found outside the organization
a) Direct Recruitment: Direct recruitment refers to a process of recruiting qualified
candidates from external sources by placing a notice of vacancy in an organization's
notice board. The detail of the job will be specified on the notice board. this method is
useful for the recruitment of blue-collar, white-collar, and technical workers. This
method of recruitment is suitable when there is high supply of human resources in the
market.
b) Casual Callers: This method of recruitment is concerned with using previously applied
candidates as a source of recruitment. The applications already available in the
employment office are used as sources of prospective candidates. In other words,
applications from individuals who are already recorded in the employment list can be
referred as new applicants and the best suited candidates are selected for the job. This
method avoids the costs of recruiting people from other sources.
c) Advertising: Advertising is one of the most common and popular methods of external
recruitment under which the job vacancy is announced through different print and
electronic media. When the qualified and experienced employees are not obtained from
other sources, advertisement method is used to attract the best qualified and
experienced personnel. Usually, most of senior positions in organization are filled by this
method. The job description and specifications are specified in the advertisement to
allow self-screening.
d) Employment Agencies (Placement Agencies): Employment agencies run by private,
public or government sectors are regarded as an important source of recruitment for
unskilled, semi-skilled and skilled jobs. The agencies are likely to have a list of qualified
candidates in their records, and they render their service as per the requirement from
other organizations for employment.
e) Schools, Colleges and Universities: It is also known as campus recruitment. Under this
method of external recruitment, educational institutions such as schools, colleges and
universities offer opportunities for recruiting fresh candidates. Most educational
institutions provide placement services where the prospective recruiters can review
credentials and interview the interested graduates.
f)
Labor Contractors: Labor contractors are an important source of recruitment under
which workers are recruited through contractors. However, this method of recruitment
is not used by many business firms and organizations.
g) Recommendations: It is closely concerned with employee referrals. Under this method
of external recruitment, applicants are introduced by friends and relatives. In fact, many
employers, operating at a small-scale operation, prefer to take such persons as they are
acquainted with backgrounds and credentials of prospective employees.
h) Web Publishing: This is a popular way to publish jobs online using various websites. This
allows the business to reach a larger population and saves on cost. Even a small business
can use this because of the savings in cost.
i)
Telecasting: This is done by way of advertising on television. Although it is an expensive
way to advertise for recruitment, some networks are able to offer these services at a
reasonable price.
Selection Process
Meaning
Selection is the process of picking up individuals (out of the pool of job applicants) with requisite
qualifications and competence to fill jobs in the organization. A formal definition of Selection is as under
Steps in Selection Process
1. Preliminary Interview: The purpose of preliminary interviews is basically to eliminate unqualified
applications based on information supplied in application forms. The basic objective is to reject
misfits. On the other hands preliminary interviews is often called a courtesy interview and is a
good public relations exercise.
2. Selection Tests: Jobseekers who past the preliminary interviews are called for tests. There are
various types of tests conducted depending upon the jobs and the company. These tests can be
Aptitude Tests, Personality Tests, and Ability Tests and are conducted to judge how well an
individual can perform tasks related to the job. Besides this there are some other tests also like
Interest Tests (activity preferences), Graphology Test (Handwriting), Medical Tests,
Psychometric Tests etc.
3. Employment Interview: The next step in selection is employment interview. Here interview is a
formal and in-depth conversation between applicant’s acceptability. It is considered to be an
excellent selection device. Interviews can be One-to-One, Panel Interview, or Sequential
Interviews. Besides there can be Structured and Unstructured interviews, Behavioral Interviews,
Stress Interviews.
4. Reference & Background Checks: Reference checks and background checks are conducted to
verify the information provided by the candidates. Reference checks can be through formal
letters, telephone conversations. However it is merely a formality and selections decisions are
seldom affected by it.
5. Selection Decision: After obtaining all the information, the most critical step is the selection
decision is to be made. The final decision has to be made out of applicants who have passed
preliminary interviews, tests, final interviews and reference checks. The views of line managers
are considered generally because it is the line manager who is responsible for the performance
of the new employee.
6. Physical Examination: After the selection decision is made, the candidate is required to undergo
a physical fitness test. A job offer is often contingent upon the candidate passing the physical
examination.
7. Job Offer: The next step in selection process is job offer to those applicants who have crossed all
the previous hurdles. It is made by way of letter of appointment.
8. Contract of employment: This is also known as offer letter. The candidate is given details of date
of reporting, salary, location of work, and other rules the candidate must follow at the work
place