HUMAN RESOURCE

MANAGEMENT

PERSONNEL PLANNING AND RECRUITING

The Recruitment and Selection Process
1. Decide what positions to fill through personnel
planning and forecasting.
2. Build a candidate pool by recruiting internal or external
candidates.
3. Have candidates complete application forms and
undergo initial screening interviews.
4. Use selection tools to identify viable candidates.
5. Decide who to make an offer to, by having the
supervisor and others interview the candidates.
FIGURE Steps in Recruitment and Selection Process

The recruitment and selection process is a series of hurdles aimed at selecting

the best candidate for the job.
FIGURE Linking Employer’s Strategy to Plans
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
 Forecasting Personnel Needs

Forecasting Tools

Trend analysis Ratio analysis Scatter plotting

Forecasting Personnel Needs
• Trend analysis
 can provide an initial estimate of future
staffing needs, but employment levels rarely
depend just on the passage of time.
 Other factors (like changes in sales volume
and productivity) also affect staffing needs.
• Ratio analysis
 provides forecasts based on the historical
ratio between
 (1) some causal factor (like sales
volume) and
 (2) the number of employees required
(such as number of salespeople).
Forecasting Personnel Needs
• Scatter plot
 shows graphically how two variables—such as sales and your
firm’s staffing levels—are related.
 If they are, and then if you can forecast the business activity (like
sales), you should also be able to estimate your personnel needs.

Hospital Size Number of

(Number Registered
of Beds) Nurses
200 240
300 260
400 470
500 500
600 620
700 660
800 820
900 860
FIGURE Determining the Relationship Between
Hospital Size and Number of Nurses

Note: After fitting the line,

you can project how
many employees are
needed, given your
projected volume.
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

Qualification
Inventories

Manual systems and Computerized skills

replacement charts inventories
Forecasting the Supply of Inside Candidates
•Qualification Inventories
 Manuel or computerized records listing
 employees’ education,
 career and development interests,
 languages,
 special skills, and so on, to be used in selecting inside
candidates for promotion.
•Personnel replacement charts
 Company records showing present performance and
promotability of inside candidates for the most important
positions.
Forecasting the Supply of Inside Candidates
•Computerized skills inventories
 include items like
 work experience codes,
 product knowledge,
 the employee’s level of familiarity with the employer’s
product lines or services,
 the person’s industry experience, and formal education.
FIGURE Management Replacement Chart Showing Development Needs of
Potential Future Divisional Vice Presidents
Forecasting Outside Candidate Supply
• Factors In Supply of Outside Candidates
 General economic conditions
 Expected unemployment rate

• Sources of Information
 Periodic forecasts in business publications
 Online economic projections
 Bureau of Labor Statistics (BLS)
 Other agencies and private sources (F.E: Posao.ba)
The Need for Effective Recruiting

Recruiting Challenges

Effectiveness of Effects of Legal requirements

chosen recruiting nonrecruitment associated with
methods issues and policies employment laws
Effective Recruiting
• Employee recruiting means finding and/or attracting
applicants for the employer’s open positions.
• External Factors Affecting Recruiting
 Supply of workers
 Outsourcing of white-collar jobs
 Fewer “qualified” candidates

• Other Factors Affecting Recruiting Success

 Consistency of recruitment with strategic goals
 Types of jobs recruited and recruiting methods
 Nonrecruitment HR issues and policies
 Successful prescreening of applicants
 Public image of the firm
 Employment laws
Organizing How You Recruit

Advantages of Centralizing Recruiting Efforts

Facilitates Reduces Ensures Fosters effective

strategic duplication of compliance with use of online
priorities HR activities EEO laws recruiting
Measuring Recruiting Effectiveness

Evaluating Recruiting
Effectiveness

What to How to
measure measure
How to measure
Internal Sources of Candidates
Advantages Disadvantages

• For knowledge of • Failed applicants become

candidates’ strengths discontented
and weaknesses
• Time wasted interviewing
• More accurate view of inside candidates who will
candidate’s skills not be considered
• Candidates have a stronger • Inbreeding strengthens
commitment tendency to maintain the
to the company status quo
• Increases employee
morale
• Less training and
orientation required
 Finding Internal Candidates

Hiring-from-Within Tasks

Posting open Rehiring former Succession

job positions employees planning (HRIS)
Finding Internal Candidates
• Job posting
 publicizing the open job to employees
(usually by literally posting it on company
intranets or bulletin boards).
• Succession Planning
 Entails three steps:
 Identifying and analyzing key jobs
 Creating and assessing candidates
 Selecting those who will fill the key
positions.
Outside Sources of Candidates

Locating Outside Candidates

1 Recruiting via the Internet 6 Executive Recruiters

On Demand Recruiting
2 Advertising 7
Services (ODRS)

3 Employment Agencies 8 College Recruiting

Temp Agencies and Alternative

4 9 Referrals and Walk-ins
Staffing

5 Offshoring/Outsourcing
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
FIGURE 5–8 Ineffective and Effective Web Ads
FIGURE 5–8 Ineffective and Effective Web Ads
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
(Sales Management)
 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.
FIGURE 5–9 Help Wanted Ad that Draws Attention
 Employment Agencies

Types of Employment
Agencies

Public Nonprofit Private

agencies agencies agencies
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.
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.
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.
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
Concerns of Temp Employees
• Dehumanizing, impersonal, and discouraging treatment
by employers.
• Insecurity about employment and pessimism about the
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 full-
time labor market.
• Anger toward the corporate world and its values;
expressed as alienation and disenchantment.
 Offshoring and Outsourcing Jobs

Political and military

instability

Resentment and
Cultural
anxiety of U.S.
misunderstandings
employees/unions

Outsourcing/
Offshoring
Customers’ securing
Costs of foreign Issues and privacy
workers
concerns

Foreign contracts,
Special training of
liability, and legal
foreign employees
concerns
Executive Recruitment
• Executive Recruiters (Headhunters, special
employment agencies )
 Contingent-based recruiters (50,000 to150,000 USD)
 Retained executive searchers (150,000 USD or more)
 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.
College Recruiting
• On-campus recruiting goals • On-site visits (inviting good
candidates to the office or plant)
 To determine if the candidate is
worthy of further consideration  Invitation letters
 To attract good candidates  Assigned hosts
 Information packages
 Planned interviews
 Timely employment offer
 Follow-up

• Internships
 Sources of Outside Applicants

Other Sources of Outside Applicants

Employee
Walk-ins
referrals
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.
Relative Recruiting Source Effectiveness Based on New Hires
Recruiting A More Diverse Workforce

Single parents

The disabled Older workers

Minorities and
Welfare-to-work
women
Developing and Using Application Forms

Uses of Application Form

Information

Applicant’s Applicant’s Applicant’s Applicant’s

education and prior progress employment likelihood of
experience and growth stability success
IN-CLASS EXERCISE 1
FACULTY SHORTAGE AT IIT’s
• GOI estb IIT’s to produce world-class researchers and
technocrats. They have been declared as “Institutions of
National Importance”. Lately, govt decided to increase
the number of IIT’s to 20. The existing IIT’s are already
facing faculty shortage and the establishment of new
ones adds to the scarcity. Being independent institutes,
faculty recruitment is done by individual IIT’s. While
hiring they have to follow the rules set up by the govt.
• For understanding the recruitment process for faculty for
IIT’s you can visit their websites/other tech institutes to
get an idea.
• Divide in groups of 5 and do the following tasks
GROUP TASKS
• Based on information available on the IIT website, create
a hard copy ad for the company to place in the
employment pages of the HT, Shine Portal and print
edition. Which edition would you choose and why?
• Analyze and critique the current recruitment program for
by IIT’s? How would you improve on it?
• Prepare an outline form for a complete faculty recruiting
program for a new IIT, including all recruiting sources
your group would use.