Unit-2

Human Resource Planning &

Recruitment
 Human Resource Planning
▪ Human Resource Planning is a system of matching the supply of
matching the supply of people (existing employees and those to be
hired or searched for)with openings the organization expects over a
given timeframe.
▪ Human Resource Planning (HRP) is the process of making sure that
a company has the right people with the right skills in the right jobs
at the right time.
▪ Human Resource Planning (HRP) is a strategic and systematic
process that involves forecasting an organisation's future workforce
needs and planning to meet those needs.
 Definitions
• According to Bulla and Scott, “Human resource planning
is 'the process for ensuring that the human resource
requirements of an organization are identified and
plans are made for satisfying those requirements”.
• According to Mary L.Tanke “Human Resource Planning
may be defined as implementation of strategies, plans
and programs required. attract, motivate, develop,
reward and retain best people to meet organizational
goal and objective. enterprises.”
 Features of Human Resource Planning
❖ Forecasting Human Resource Needs-HRP helps predict the
organization's future demand for human resources based on
business goals, market conditions, and growth strategies.
This involves estimating the number and types of employees
required in the future.
❖ Supply Analysis of Human Resources-This feature
involves assessing the current workforce in terms of skills,
experience, and availability. It also looks at potential external
sources for hiring, such as recruitment, outsourcing, or future
labor market trends.
❖ Gap Analysis-HRP identifies the gap between the
organization's human resource requirements (demand) and
the available talent (supply). It pinpoints areas where there
may be shortages or surpluses of skills and workers.
❖ Succession Planning-HRP involves preparing for future
leadership and critical role vacancies by identifying and
developing employees who can step into these roles when
needed. It ensures continuity in key positions.
❖ Training and Development-As part of HRP, organizations
plan for the training and skill development of employees to
bridge the skill gap, ensuring the workforce is equipped to
meet future challenges and job requirements.
❖ Employee Retention and Motivation-HRP focuses on
strategies for retaining talent and keeping employees
motivated, which includes creating a positive work culture,
offering career development opportunities, and ensuring
competitive compensation and benefits.
 Objectives of Human Resource
Planning
❑ Forecasting Human Resource Requirements: HRP is
essential to determine the future human resource needs in an
organisation.In the absence of such a plan, it would be
difficult to have the services of the right kind of people at
the right time.
❑ Analyze Current Workforce: HRP helps in analysing the
competency of present workforce. It determines the current
workforce strengths and abilities.
❑ Effective Management of Change: It involves clearly
communicating the reasons for change, engaging employees
throughout the process, and providing support to help them
adapt. It includes planning, addressing resistance, and
aligning the change with organizational goals.
❑ Realising Organizational Goals: HRP helps in effectively
meeting the needs of expansion, diversification and other
growth strategies of an organisation.
❑ Provide Information: The information gathered through
HRP is used for identifying surplus and unutilised human
resources. It also provides a comprehensive skill
inventory, which facilitates decision making for example,
in promotion.
❑ Effective Utilisation of Human Resource: HRP involves
aligning employee skills and capabilities with
organizational needs to maximize productivity. It focuses
on optimizing talent through training, delegation, and
efficient workload management.
❑ Determine Manpower Gap: HRP identifies the gaps in
existing manpower so that suitable training programmes
may be developed for building specific skills, required in
future.
➢ Increasing Productivity- In HR planning maximizing
productivity is crucial. Efficient use of resources and
minimizing waste, achieved through staffing activities
like training, performance appraisal, and fair
compensation, leads to higher productivity.
➢ Implementing managerial activities- The success of
managerial tasks like planning, organizing, directing, and
controlling relies heavily on having the right people
(human resources) in place. Human resources play a
crucial role in making sure these managerial activities
work effectively.
➢ Motivating employees- It also involves motivating
employees through programs like incentives. These
incentives are crucial because they encourage active
participation and help in retaining employees within the
organization.
➢ Improving employee relations-Improving employee
relations in HRP involves fostering open
communication, trust, and collaboration between
management and employees. Strong employee relations
contribute to higher morale, retention, and overall
organizational success.
➢ Coping with change- Human resource planning is
important for organizations to cope with changes in the
external environment. It enables the development and
implementation of strategies to enhance employee and
organizational performance.
➢ Evaluating demand and supply of resources- Human
resource planning ensures there is the right number of
employees (demand) to meet the company’s needs
without overstaffing or understaffing. It’s like finding the
perfect balance, ensuring there are enough people to get
the job done efficiently .
➢ Increasing quality of hire- Human resource planning
impacts the quality of applicants an organization
attracts. Companies practicing HR planning know what
qualities they need in applicants, making their hiring
decisions more precise and effective. This results in
attracting candidates who are better suited for the
organization’s needs.
➢ Growing a competitive advantage- Organizations that
invest in human resource planning can identify and
nurture the best talents. By having the right people with
the right skills in the right places, a company gains a
competitive edge. They can adapt to changes faster,
innovate more effectively, and deliver superior products
or services.
Process of Human Resource Planning
1) Environmental Scanning: Identify and analyze
external factors that may affect the organisation's
human resource needs, such as economic trends,
technological changes, and legislative requirements.
2) Internal Analysis: Evaluate the current workforce,
including skills, competencies, and demographics.
Understand the strengths and weaknesses of the
existing workforce.
3) Future Demand: Project future demand for human
resources based on organizational goals, growth
plans, and changes in technology or markets.
4) Forecasting Future Supply: Assess the internal and
external sources of human resources. Internal sources
include current employees, while external sources
may include recruitment strategies.
5) Identifying Gaps: Compare the forecasted demand
and supply to identify potential gaps in the workforce.
Identify potential areas of surplus or shortage.
6) Developing Action Plans: Devise strategies to address
the identified gaps. This may involve recruitment,
training, development, succession planning, or
restructuring.
7) Implementation: Put the action plans into practice.
This may include hiring new employees, providing
training programs, or restructuring existing teams.
8) Monitoring and Evaluation: Continuously monitor the
effectiveness of the human resource plans. Evaluate
whether the organisation is achieving its goals and
adjust the plans as necessary.
Forecasting Human Resource Requirements

Forecasting human resource requirements involves

predicting the number and types of employees needed in the
future to meet the organization’s objectives. This process
ensures the right talent is available at the right time to support
growth, adapt to changes, and maintain operational efficiency.
Purpose of Forecasting HR Requirements:
▪ Strategic Alignment
▪ Optimizing Resource Allocation
▪ Identifying Skill Gaps
▪ Managing Workforce Changes
▪ Enhancing Decision-Making
Demand Forecasting HR Requirements
Demand forecasting in Human Resource
Planning (HRP) is the process of estimating the
number and types of employees an organization
will need in the future to meet its strategic goals.
It helps determine the future labor demand based
on business plans, market conditions, and internal
needs, ensuring that the organization has the right
talent available at the right time.
HR Demand Forecasting Techniques are follows:
❑ Managerial Judgement- Managerial Judgment technique is
a qualitative method used in Human Resource Planning
(HRP) to forecast future HR requirements based on the
insights, experience, and expertise of managers or leaders
within the organization. It involves gathering subjective
opinions and assessments from key managers to predict
staffing needs, skills, and other workforce factors.
❑ Trend Analysis- Trend analysis forecast employment
requirements on the basis of some organisation index. The
forecast is based on the past relationship between a
business factor related to employment level.
❑ Ratio Analysis- Ratio Analysis is the process of determining
future HR demand by computing an exact ratio between
the specific business factor and the number of employee
needed.
❑ Scatter Plot- It is a graphical method used to identify the
relationship between two variables. HR planner can use
scatter plot to determine whether two factors- a measure of
business activity and staffing levels are related.
❑ Computerized Forecast- Computerized forecasting is the
determination of future staff needs by projecting a firm’s
sales, Volume of production, and personel required to
maintain this required volume of output using computers and
software packages. Employee also use computerized systems
for estimating the effects of various productivity and sales
assumptions on personnel requirements.
❑ Delphi Technique- The Delphi Technique is a qualitative
forecasting method used in Human Resource Planning (HRP)
to gather expert opinions and insights to predict future HR
needs. This technique involves a structured process where a
panel of experts provides their individual forecasts on a
specific topic.
Forecasting Human Resource Supply
Forecasting Human Resource Supply refers to the
process of predicting the future availability of human
resources (employees) within an organization or in the
external labor market, to ensure that an organization has
the right number of employees with the right skills when
they are needed.
There are two sources of supply forecasting
1) Internal Sources
2) External Sources
 Internal Sources of Supply for HR
Forecasting
❑Internal Sources of Supply for HR Forecasting refers
to the process of identifying and utilizing the talent
already present within an organization to meet
future human resource needs.

❖ Current Workforce Analysis

❖ Succession Planning
❖ Employee Turnover and Retention
❖ Training and Development
❖ Internal Job Postings and Career Pathways
❖ Skills Inventory and Competency Mapping
 External Sources of Supply for HR
Forecasting
❑External sources of supply refer to resources and
factors outside the organization that affect the
availability of talent or employees. These sources
help HR departments anticipate workforce needs and
plan accordingly to meet organizational goals.
❖Labor Market Data
❖Educational Institutions and Training Providers
❖Industry Trends and Reports
❖Recruitment Agencies and Staffing Firms
❖Government Employment Policies and Regulations
 Organizational Attraction
Organizational Attraction refers to the factors
and strategies that make an organization
appealing to potential employees. It encompasses
the company’s reputation, work culture, values,
benefits, career development opportunities, and
the overall employee experience. Organizations
that effectively attract talent often focus on
building a strong employer brand, promoting a
positive work environment, and offering
competitive compensation packages.
 Purpose of Organizational
Attraction
✓ Attract High-Quality Candidates
✓ Building a Strong Employer Brand
✓ Increase Retention
✓ Promote Organizational Fit
✓ Improve Competitive Advantage
✓ Boosting Organizational Performance
Methods of Organizational Attraction
▪ Employer Branding: Promoting the company's culture, values, and benefits
through marketing, social media, and employer review sites to create a positive
public image.
▪ Career Fairs and Networking Events: Attending industry-specific job fairs and
hosting recruitment events to engage with potential candidates directly and
raise awareness of job opportunities.
▪ Referral Programs: Encouraging current employees to refer qualified
candidates by offering incentives, leveraging the trust and network of existing
employees.
▪ Internship and Graduate Programs: Partnering with universities and offering
internships or graduate programs to build early connections with emerging
talent.
▪ Social Media and Online Presence: Using platforms like LinkedIn, Instagram,
and Twitter to showcase workplace culture, employee stories, and job openings
to a wider audience.
▪ Job Advertisements and Recruitment Campaigns: Creating targeted and
attractive job ads that highlight the organization’s unique benefits and career
opportunities, distributed through online job boards or company websites.
 Recruitment
Recruitment is the process of attracting,
identifying, and selecting qualified
candidates for job vacancies within an
organization. It involves sourcing
candidates, screening applicants, and
selecting the best fit based on skills,
experience, and cultural alignment. The goal
is to ensure that the organization hires
individuals who contribute to its long-term
success.
 Definitions
According to Edwin Flippo defines
recruitment as "the process of searching for
prospective employees and stimulating them
to apply for jobs in the organization.“
According to Michael Armstrong:
"Recruitment is the process of identifying
and attracting potential employees to the
organization."
 Features of Recruitment
▪ Positive Function: It is considered to be a
positive function as it creates a pool of qualified
candidates from which the most appropriate
candidates can be chosen.
▪ Continuous Process: It is a managerial and
ongoing process as it does not involve a single
activity but a series of activities.
▪ Linking Activity: It brings together the
employer and the employees and hence is
considered to be a linking activity.
▪ Complex Job: It is a complicated process as
many factors may restrict the freedom of
management during the hiring process.
▪ Pervasive Function: It is an activity that takes
place in every organisation and, therefore is a
pervasive function, however, its volume and
nature differ according to the type and size of
the organisation.
▪ Two-Way Process: It is a two-way process that
involves a recruiter and a recruitee. Both of
them have their own choices, the recruiter can
choose whom to select and the recruitee has the
choice of selecting the organisation in which he
wants to work.
 Selection
❑ Selection is the process of picking or choosing the right
candidate, who is most suitable for a vacant job position
in an organization. In others words, selection can also be
explained as the process of interviewing the candidates
and evaluating their qualities, which are required for a
specific job and then choosing the suitable candidate for
the position.
❑ Selection is the process of choosing qualified individuals
who are available to fill positions in an organization.
 Definitions
❖According to Terrie Nolinske, “ Selection is the
process of making a hire or no-hire decision
regarding each applicant for a job”.
❖According to Steven P.Robbins and Mary Coulter
defined “ Selection is the process of screening
job applications to ensure that the most
appropriate candidates are hired.
❖According to Dale Yoder, “Selection is the
process in which candidates for employment are
divided into two classes-those who are to be
offered employment and those who are not”
 Purpose of Selection
1) To Select Suitable Candidate.

2) To Determine Applicant’s Capabilities.

3) To Right Candidate at Right Job.

4) To Generate Information about Candidate.

5) To Save Cost.
Selection Process
 Factors Affecting Selection Process
Internal External
Environmental Factor Environmental Factor
▪ Size of the Organisation ✓ Nature of the Labour
▪ Type of the
Organisation Market
▪ Nature of Social ✓ Trade Unions
Pressure
▪ Applicant Pool ✓ Government
▪ Speed Decision Making Regulations
 Importance of Selection
❖ Ensures the Best Fit: Selection helps choose the most suitable
candidates, products, or strategies based on specific needs and
requirements.
❖ Optimizes Resources: It ensures efficient use of time, money,
and effort by identifying the right resources for the task.
❖ Improves Performance: A well-chosen individual or approach
leads to better outcomes and enhanced productivity.
❖ Minimizes Risks: Careful selection reduces the likelihood of
mistakes, failures, or inefficiencies.
❖ Enhances Decision-Making: The process involves critical
evaluation, sharpening the decision-making process and
improving choices.
❖ Promotes Innovation: Selection encourages finding new
solutions and fostering creativity by choosing the right options.
❖ Ensures Fairness and Consistency: A structured approach to
selection ensures decisions are based on objective criteria,
reducing bias.
 Induction
• Induction or Orientation refers to the introduction of
a person to the job and the organisation.
• Induction is the initial process of welcoming and
introducing a new employee to the organization. The
purpose is to familiarize the new employee with the
organization's culture, values, policies, procedures,
and work environment.
• According to Michael Armstrong," Induction is the
process of receiving & welcoming an employee when
he first joins a company & giving him basic
information he needs to settle down quickly &
happily & start work".
 Objectives of Induction
1. Formally Welcoming Employees
2. Overcoming Initial Uneasiness and
Hesitation.
3. Exchanging Information.
4. Assessing Employees.
5. Acclimating Employees.
6. Controlling the HR Cost.
7. Developing the Team Spirit.
8. Socializing Employees.
 Types of Induction
❑ Formal Induction or Informal Induction.
❑ Individual or Collective Induction.
❑ Serial or Disjunctive Induction
1. Formal Induction-refers to the structured, organized
process through which new employees are
introduced to the organization in a professional and
planned manner.
2. Informal Induction-Informal induction is an
unstructured, casual process where new employees
learn about the company culture, role expectations,
and build relationships through everyday
interactions. It relies on peer support, mentorship,
and on-the-job experiences rather than formal
training.
3. Individual induction- is a personalized on
boarding process tailored to a new employee’s
specific role and needs. It focuses on providing
one-on-one support, training, and guidance to
ensure a smooth transition into the
organization.
4. Collective Induction- Collective induction is a
group-based on boarding process where
multiple new employees are introduced to the
organization simultaneously. It typically
includes group training sessions, presentations,
and shared activities to foster team integration
and understanding of company culture.
5. Serial Induction- Serial induction is a reasoning
process where conclusions are drawn by
observing a sequence of related events or
instances. Each observation builds on the
previous one to form a broader generalization.
6. Disjunctive induction-is a form of reasoning
where conclusions are drawn from a set of
possibilities, with the assumption that at least
one of them is true. It involves selecting the
most likely or probable outcome from a range
of alternative scenarios.
 Methods of Induction

▪ Online Orientation

▪ Videos

▪ E-mail

▪ Orientation Kits
 Socialization
Socialization is a process of adaptation. In
the context of an organization, it refers to all
passages undergone by employees.
Socialization is adapting to a new job,
transfer, or promotion. Adjusting to new
responsibilities, a new boss and different co-
workers is vital. Moving from outsider to
insider is a profound adjustment. Awareness
helps employees embrace changes and become
confident in their new roles.
Process or Stages of Socialization
1.Pre-arrival stage: The first stage encompasses
the learning the new employee has gained
before joining the organization.
2.Encounter stage: in the second stage, the
new employee gets an understanding of what
the organization is really like, and deals with
the realization that the expectations and reality
may differ.
3.Metamorphosis stage: In the third stage, lasting
change occur. Here, new employees become
fully trained in their jobs, perform successfully,
and “fit” in with the values and norms of
coworkers.
 Theories of Socialization
Social Learning Theory (Albert Bandura)
Social Learning Theory emphasizes that
individuals learn new behaviors and adapt to
organizational norms through observation,
imitation, and modeling. New employees observe
their colleagues, especially those in leadership roles,
to learn the expectations, behaviors, and ways of
interacting within the organization. By imitating
these behaviors, new hires can more effectively
integrate into the company's culture. HR
departments often use mentorship or peer
relationships to facilitate this learning process,
ensuring that new employees adopt the right
behaviors and attitudes.
Role Theory (Ralph Linton)
According to Role Theory, individuals
perform roles that come with specific
expectations. Socialization occurs as individuals
learn the behaviors and norms associated with
their particular role within the organization.
During the on boarding process, employees are
provided with role-specific training,
clarifications, and guidance on how to fulfill their
responsibilities. Understanding the role helps
the employee adapt and succeed. HRM focuses on
reducing role ambiguity during socialization by
clearly defining job descriptions, responsibilities,
and performance expectations.
Organizational Socialization Theory (Van Maanen
and Schein)
This theory focuses on how individuals learn
the culture, values, and social norms of an
organization during their initial stages of
employment. Van Maanen and Schein proposed
that socialization occurs through the
interactions between new employees and their
environment. HR professionals design on
boarding programs that expose new hires to the
culture and core values of the organization.
These programs are meant to reduce
uncertainty and help employees feel
comfortable within their work environment.
Social Identity Theory (Henri Tajfel and John
Turner)
Social Identity Theory posits that
individuals define themselves based on the
groups they belong to (in-group vs. out-group).
Employees create a social identity within their
organization by aligning with group values,
norms, and collective goals. HRM encourages
new employees to identify with the
organizational values and goals to enhance
loyalty and job satisfaction. This can be done
through team-building exercises, culture
training, and shared company rituals.