Personnel
Planning and
Recruitment
CHAPTER FIVE
1. Definition of HRP
2. Benefits of HRP
Contents
3. HR Planning Process
4. Succession Planning
5. Elements of Succession Planning
1. Human
Resource
Planning
Robbins (2001) defines HRP as “the process by
which an organization ensures that it has the
right number and kinds of people at the right
places, at the right time, capable of effectively and
efficiently completing those tasks that will help
the organization achieve its overall objectives.”
HRP is the process of determining manpower
requirements and the means of meeting those
requirements in order to carry out the integrated
plan of the organization.
HRP is necessary for all organization. The corporate
strategy regarding expansion, diversification,
technological change should be backed up by the
availability of human resources.
2. Benefits
of HRP
It offsets uncertainty and change. HRP ensures the
availability of right men at right time and in the right
place.
It provides scope for advancement and development of
employees through training and development.
It helps to satisfy the individual needs of the employees
for the promotions, transfers. Salary enhancement,
better benefits etc.
It helps in anticipating the costs of salary, benefits and
all the cost of human resources facilitating the
formulation of budgets in a society.
2. Benefits of HRP continued..
∙ It helps to foresee the need for redundancy and plans to check of human resources and
change the techniques of management.
∙ It helps in planning for physical facilities, working conditions, the volume of fringe
benefits like canteen, schools, hospitals, conveyance, child-care centers, quarters, company
stores etc.
∙ It causes the development of various sources of human resources to meet the
organizational needs.
∙ It helps to take steps to improve the human resource contributions in the form of
increased productivity, sales, turnover etc.
∙ It facilitates the control of all functions, operations, contribution, and cost of human
resources.
Integration of HR Planning with Corporate Planning
Assessment of Human Resources
3. HR
Planning
Process
Demand Forecasting
Supply Forecasting
Matching Demand and Supply
Action Plan
The Recruitment and Selection Process
1. Decide what positions to fill, through workforce/personnel
planning and forecasting.
2. Build a pool of candidates for these jobs, by recruiting
internal or external candidates.
3. Have candidates complete application forms and perhaps
undergo initial screening interviews.
4. Use selection tools like tests, background
investigations, and physical exams to screen
candidates.
5. Decide who to make an offer to, by having the supervisor
and perhaps others interview the candidates.
5–7
FIGURE 5–1
Steps in Recruitment and Selection Process
5–8
FIGURE 5–2
Linking Employer’s Strategy to Plans
5–9
Planning and Forecasting
• Employment or Personnel Planning
➢ The process of deciding what positions
the firm will have to fill, and how to fill them.
• Succession Planning
➢ The process of deciding how to fill the company’s most
important executive jobs.
• What to Forecast?
➢ Overall personnel needs
➢ The supply of inside candidates
➢ The supply of outside candidates
5–10
FORECASTING PERSONNEL NEEDS
(LABOR DEMAND)
Trend
Analysis
Ratio
Analysis
Managerial
Judgement
The Scatter
Plot
FORECASTING PERSONNEL NEEDS
Trend analysis
Ratio analysis
• Study of a firm’s past employment needs over a
period of years to predict future needs.
• A forecasting technique for determining future
staff needs by using ratios between , for example,
sales volume and number of employees needed.
Scatter plot
• A graphical method used to help identify the
relationship between two variables.
Managerial
judgement
• Few historical trends, ratios , or relationships will
continue unchanged into the future. Judgement is
thus needed to adjust the forecast.
SCATTER PLOT
•X-axis: Time (e.g., Years or Months)
•Y-axis: HR Demand (Number of employees needed)
The scatter plot will show actual HR demand points over time, and we can fit a trend line
(like linear regression) to forecast future demand.
Year
HR Demand
(Employees)
2019
50
2020
55
2021
60
2022
65
2023
70
2024
75
Drawbacks to Traditional Forecasting
Techniques
• They focus on projections and historical relationships.
• They do not consider the impact of strategic initiatives on future
staffing levels.
• They support compensation plans that reward managers for
managing ever-larger staffs.
• They “bake in” the idea that staff increases are
inevitable.
• They validate and institutionalize present planning
processes and the usual ways of doing things.
Using Computers to Forecast Personnel
Requirements
• Computerized Forecasts
➢ Software that estimates future staffing needs by:
❖ Projecting sales, volume of production, and personnel
required to maintain different volumes of output.
❖ Forecasting staffing levels for direct labor, indirect staff, and
exempt staff.
❖ Creating metrics for direct labor hours and three sales
projection scenarios—minimum, maximum, and probable.
FORECASTING THE SUPPLY OF INSIDE
CANDIDATES
1. Personnel
Replacement
Charts
2. Position
Replacement
Card
3. Markov
Analysis
FORECASTING THE SUPPLY OF INSIDE
CANDIDATES
Personnel Replacement
Charts
Position Replacement
Card
• Company records
showing present
performance and
promotability of inside
candidates for the most
important positions.
• A card prepared for
each position in a
company to show
possible replacement
candidates and their
qualifications.
Markov Analysis
• A mathematical process
• A matrix that shows
the probabilities that
employees in the chain
of feeder positions for a
key job will move from
position to position and
therefore be available
to fill the key positions.
MARKOV ANALYSIS
• Markov Analysis (Simple Explanation)
Markov Analysis is a method used to predict how people or things will move from one state
to another over time. It’s often used in business and HR to forecast things like employee
movement, such as promotions, transfers, or leaving the company.
• How it works:
Imagine you have different “states” that a person can be in — for example, different job
positions or departments. Markov Analysis looks at the probability (chances) of moving from
one state to another in a given time period. These probabilities are based on past data — for
example, how many employees usually get promoted or leave. By using these probabilities,
you can predict the number of people who will be in each state in the future.
Why it’s useful:
Helps managers plan for future staffing needs.
Can predict how many employees will need training, promotions, or hiring.
Supports workforce planning and reduces surprises.
Example:
If 10% of employees in a junior role get promoted each year, and 5% leave,
Markov Analysis can estimate how many juniors will become seniors or leave next year.
JOB POSITION: GARDENER
Mr John
Qualification: 5 years of experience
Mr Phillip
Mr Tom
WHY EFFECTIVE RECRUITING IS
IMPORTANT
• Employee recruiting means finding and/or attracting applicants
for the employer s open positions.
Employee
Recruiting
Internal
External
INTERNAL SOURCES OF CANDIDATES
• Job Posting:
Publicizing an open job to employees (often by
literally posting it on bulletin boards) and listing its
attributes, like qualifications, supervisor, working
schedule, and pay rate.
• Rehiring former employees
INTERNAL SOURCES OF
RECRUITMENT
• Present employees
• Employee referrals
• Previous employees
OUTSIDE SOURCES OF CANDIDATES
RECRUITING VIA THE INTERNET
• Advantages
❖ Cost-effective way to publicize job openings
❖ More applicants attracted over a longer period
❖ Immediate applicant responses
❖ Online prescreening of applicants
❖ Links to other job search sites
❖ Automation of applicant tracking and evaluation
• Disadvantages
❖ Exclusion of older and minority workers
❖ Unqualified applicants overload the system
❖ Personal information privacy concerns of applicants
5–25
FIGURE 5–8
Ineffective and Effective Web Ads
5–26
ADVERTISING FOR OUTSIDE CANDIDATES
• The Media Choice
➢ Selection of the best medium depends on the positions for which
the firm is recruiting.
❖ Newspapers: local and specific labor markets
❖ Trade and professional journals: specialized employees
❖ Internet job sites: global labor markets
• Constructing (Writing) Effective Ads
➢ Create attention, interest, desire, and action (AIDA).
➢ Create a positive impression (image) of the firm.
5–27
FIGURE 5–9
Help Wanted Ad that Draws Attention
5–28
EMPLOYMENT AGENCIES
Types of Employment
Agencies
Public
agencies
Nonprofit
agencies
Private
agencies
5–29
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 attract more minority or female applicants.
• To reach currently employed individuals who are more
comfortable dealing with agencies than competing
companies.
• To reduce internal time devoted to recruiting.
5–30
AVOIDING PROBLEMS WITH EMPLOYMENT AGENCIES
• Give agency an accurate and complete job description.
• Make sure tests, application blanks, and interviews are
part of the agency’s selection process.
• Review candidates accepted or rejected by your firm or
the agency for effectiveness and fairness of agency’s
screening process.
• Screen agency for effectiveness in filling positions.
• Supplement the agency’s reference checking by
checking the final candidate’s references yourself.
5–31
SPECIALIZED STAFFING AND
RECRUITING
• Alternative Staffing
➢ In-house contingent (casual, seasonal, or temporary) workers
employed by the company, but on an explicit short-term basis.
➢ Contract technical employees supplied for long-term projects
under contract from outside technical services firms.
• On-Demand Recruiting Services (ODRS)
➢ Provide short-term specialized recruiting to support specific
projects without the expense of retaining traditional search firms.
5–32
TEMP AGENCIES AND
ALTERNATIVE
STAFFING
• Benefits of Temps
➢ Increased productivity—paid only when working
➢ Allows “trial run” for prospective employees
➢ No recruitment, screening, and payroll administration costs
• Costs of Temps
➢ Increased labor costs due to fees paid to temp agencies
➢ Temp employees’ lack of commitment to the firm
Prepared by Chandeth Doeurn
5–33
WORKING WITH A TEMP AGENCY
• Invoicing. Make sure the agency’s invoice fits your firm’s needs.
• Time sheets. The time sheet is a verification of hours worked and an
agreement to pay the agency’s fees.
• Temp-to-perm policy. What is the policy if you want to hire a temp as
a permanent employee?
• Recruitment of and benefits for temp employees. How does the
agency plan to recruit and what sorts of benefits will it pay?
• Dress code. Specify the attire at each of your offices or plants.
• Equal employment opportunity statement. Get a statement from the
agency that it does not discriminate when filling temp orders.
• Job description information. Ensure that the agency understands the
job to be filled and the sort of person you want to fill it.
5–34
CONCERNS OF TEMP EMPLOYEES
• Dehumanizing, impersonal,and discouraging treatment
• Insecurity about employment and pessimism about the
by employers.
• future.
• Worry about the lack of insurance and pension benefits.
• Being misled about job assignments and whether temporary assignments
are likely to become full-time
positions.
• Being “underemployed” while trying to return to the fulltime labor market.
• Anger toward the corporate world and its values;
• expressed as alienation and disenchantment.
5–35
FIGURE 5–10
Ten Things Managers Should Avoid When
Supervising Temporary Employees
Do Not:
1. Train your contingent workers. Ask their staffing agency to handle training.
2. Negotiate the pay rate of your contingent workers. The agency should set pay.
3. Coach or counsel a contingent worker on his/her job performance. Instead, call
the person’s agency and request that it do so.
4. Negotiate a contingent worker’s vacations or personal time off. Direct the worker
to his or her agency.
5. Routinely include contingent workers in your company’s employee functions.
6. Allow contingent workers to utilize facilities intended for employees.
7. Let managers issue company business cards, nameplates, or employee badges
to contingent workers without HR and legal approval.
8. Let managers discuss harassment or discrimination issues with contingent
workers.
9. Discuss job opportunities and the contingent worker’s suitability for them
directly. Instead, refer the worker to publicly available job postings.
10. Terminate a contingent worker directly. Contact the agency to do so.
5–36
OFFSHORING AND OUTSOURCING
JOBS
Political and military
instability
Resentment and
anxiety of U.S.
employees/unions
Costs of foreign
workers
Special training of
foreign employees
Cultural
misunderstandings
Outsourcing/
Offshoring
Issues
Customers’ securing
and privacy
concerns
Foreign contracts,
liability, and legal
concerns
5–37
EXECUTIVE RECRUITMENT
•
Executive Recruiters (Headhunters)
➢ Contingent-based recruiters
➢ Retained executive searchers
➢ Internet technology and specialization trends
•
Guidelines for Choosing a Recruiter
1. Make sure the firm is capable of conducting a thorough
search.
2. Meet individual who will handle your assignment.
3. Ask how much the search firm charges.
4. Make sure the recruiter and you agree on what sort of person
you need for the position.
5. Never rely solely on the recruiter to do reference checking.
5–38
COLLEGE RECRUITING
• On-campus recruiting goals
• On-site visits
➢ To determine if the candidate is
➢ Invitation letters
worthy of further consideration
➢ Assigned hosts
➢ To attract good candidates
➢ Information packages
➢ Planned interviews
➢ Timely employment offer
➢ Follow-up
• Internships
SOURCES OF OUTSIDE APPLICANTS
Other Sources of Outside Applicants
Employee
referrals
Walk-ins
Military
personnel
Telecommuters
5–40
EMPLOYEE REFERRALS AND WALK-INS
• Employee Referrals
➢ Referring employees become stakeholders.
➢ Referral is a cost-effective recruitment program.
➢ Referral can speed up diversifying the workforce.
➢ Relying on referrals may be discriminatory.
• Walk-ins
➢ Seek employment through a personal direct approach to the
employer.
➢ Courteous treatment of any applicant is a good business
practice.
5–41
FIGURE 5–11 Relative Recruiting Source Effectiveness Based on New Hires
5–42
4. Succession Planning
∙ Succession planning is a process whereby an organization
ensures that employees are recruited and developed to
fill each key position within the company. Through the
succession planning process, organizations recruit
superior employees, develop their knowledge, skills and
abilities and prepare them for advancement or
promotion into ever more challenging roles.
∙ Succession planning is a process for identifying and
developing new leaders, who can replace old leaders
when they leave, retire or die.
∙ In business, it entails developing internal people with
the potential to fill key business leadership positions in
the company.
5. Elements of Succession Planning
a.
Identifying
key positions
for which a
succession
plan is
necessary
b.
Identifying
the successor
or successors
c. Identifying
job
requirements
d. Building
competency
e. Assessing
progress