LIST OF ABBREVIATIONS

HRP – Human resource planning

TNA_ Training need assessment

HR_ Human resource

HRM- Human resource management

ELDOWAS_ Eldoret water and sanitation company limited

1.0 INTRODUCTION

The success of a business is directly linked to the performance of those who work for that
business. Underachievement can be a result of workplace failures. Because hiring the wrong
people or failing to anticipate fluctuations in hiring needs can be costly, it is important that the
establishment puts effort into human resource planning. Planning for HR needs will help to
ensure the organizations employees have the skills and competencies the business needs to
succeed. A HR plan works hand in hand with the organizations business plan to determine the
resources needed to achieve the business’s goals and objectives. It will better prepare the human
resource managers for staff turnover, recruitment, and strategic hiring – and alleviate stress when
they have emergency/last-minute hiring needs.

The search for new employees is a familiar task for most employers. Employees retire, move,
quit, are transferred, or are fired. Businesses restructure, grow, or take a new direction.
Regardless of the situation, the end result is the same – you have a job opening to fill
2.0 LITERATURE REVIEW

Human resource planning forecasts the future personnel needs of extension organizations. With
the rapid changes in technology, needs of farmers, market situation, and competitive
environment, planning for human resources has become an important, challenging task for
extension. Human resource planning involves plans for future needs of personnel, their required
skills, recruitment of employees, and development of personnel (Miller, Burack, &Albrecht,
1980). Human resource forecasting and human resource audit are the two most important
components of this type of planning. Human resource forecasting refers to predicting an
organization's future demand for number, type, and quality of various categories of employees.
The assessment of future needs has to be based on analysis of present and future policies and
growth trends. The techniques of forecasting include the formal expert survey, Delphi technique,
statistical analysis, budget and planning analysis, and computer models. The human resource
audit gives an account of the skills, abilities, and performance of all the employees of an
organization (Werther & Davis, 1982). deputy director, joint director, and additional director of
extension are filled through promotion (Vijayaragavan, 1994).

Recruitment and training personnel

Recruitment is important in selecting the right kind of extension personnel. Since the job of
extension personnel calls for technical skills as well as commitment and willingness to educate
rural people, an appropriate selection system is essential to ensure the right selection. The
success of extension depends heavily upon selection of qualified and motivated personnel.
Extension organizations in developing countries use two major sources of recruitment: from
outside and from within. Entry-level positions such as village extension workers and agricultural
extension officers are filled by outside recruitment, using the services of government placement
agencies. Other channels of recruitment are advertisements, private placement agencies,
professional search firms, and educational institutions. In some countries, farmers are recruited
to help extension agents (Adams, 1982). In Israel, volunteers with practical experience in
farming, usually a couple, were recruited as extension workers to help the immigrants. These
agents were found to be enthusiastic; they lived with the farmers, set a personal example, and
were effective instruments for making desired changes (Blum, 1987).

Most of the extension departments in developing countries have the policy of promoting or
recruiting within for middle-level and top-level positions. For example, in India, positions like
deputy director, joint director, and additional director of extension are filled through promotion
(Vijayaragavan, 1994). The advantages of this policy are that it promotes loyalty and provides
opportunities for existing extension staff to get high-level positions. However, its greatest
disadvantage is that it prevents the lateral entry of talented extension personnel and promotes
complacency because seniority ensures promotion

Methods and Techniques for Selecting Extension Staff

The selection of extension staff starts with making the job opportunities known to all potential
applicants through advertisement. The help of extension workers' training centers, agricultural
colleges, rural institutions, and local government agencies may be sought to give wide publicity,
as well as to inform candidates living in rural areas. This is followed by screening applicants to
short-list suitable candidates and by evaluating potential candidates through various tests.

A typical selection process consists of the following steps: completed job application, initial
screening, testing, in depth selection interview, physical examination, and job offer (French,
1982). In general, extension organizations in developing countries use a simple knowledge test
and a brief interview to select extension personnel. By using the above method, it is impossible
to discriminate an effective candidate from an ineffective candidate, because selecting extension
personnel demands thorough, in depth testing of cognitive and non cognitive abilities.

Testing cognitive ability includes a knowledge test, a skill or ability test, and an aptitude test. A
non cognitive test is a measure of behavioral dimensions which are important for field-level
extension personnel, including concern for and commitment to rural people, empathy, problem-
solving orientation, high motivation to influence and educate farmers, ability to work under
unsupervised and difficult village conditions, patience and persistence, and team spirit. A good
example of selecting village-level extension workers on the basis of behavioral characteristics is
provided by the extension project of Allahabad Agricultural Institute (Bathgate, 1956). In
response to an advertisement for 27 posts of village guides, 700 to 800 candidates had applied.
The final selection procedure consisted of five days of testing skills and attitudes in actual village
situations. The test included testing attitudes towards menial tasks like cleaning cattle shed or
digging a compost pit. The candidates' responses to emergency situations were also tested by
dropping them into isolated villages.

The assessment centre approach, originally used during World War II, can be used to select
extension staff. In this approach, an organization develops its internal resources for assessing
new staff. The candidates to be recruited go through a number of simulation exercises, and an
expert assesses their behavior. The techniques used are a psychological test, role play, in-basket
exercise, group discussion, projective test, knowledge test, and interviews.
3.0 HUMAN RESOURCE PLANNING

3.1 DEFINITIONS

HRP can be defined as a process by which an organization ensures that it has the right number
and kinds of people, at the right place, at the right time, capable of effectively and efficiently
completing those tasks that will help the organization achieve its overall objectives.

Bulla and Scott (1994) defines HRP as the process of ensuring that the human resource
requirements of an organization are identified and plans are made for satisfying those
requirements.

In other words HRP can be defined as planning for the future personnel needs of an organization,
taking into account both internal activities and factors in the external environment.

3.2 FACTORS TO CONSIDER WHEN FORECASTING PERSONNEL NEEDS

(1) Sales volume

(2) The staff required to achieve this volume of output is estimated.

(3) Projected turnover as a result of resignations or terminations.

(4) Quality and skills of your employees in relation to what you see as the changing needs of
your organization.

(5) Decisions to upgrade the quality of products or services or enter into new markets.

(6) Technological and other changes resulting in increased productivity.

(7) The financial resources available to your department.

3.3 AIMS OF HUMAN RESOURCE PLANNING

 To attract and retain the number of people required with the appropriate skills,
expertise and competencies.
  Anticipate the problems of potential surpluses or deficits of people.

 Develop a well trained and flexible workforce, thus contributing to the organization’s
ability to adapt to an uncertain and changing environment.

 Reduces dependence on external recruitment when key skills are in short supply by
formulating retention, as well as employee development strategies.

 Improve the utilization of people by introducing more flexible systems of work.

4.0 THE PROCESS OF HUMAN RESOURCE PLANNING

1. Business strategic plans

These plans define future activity levels and initiatives demanding new skills. The strategic
planning process should define projected changes in the scale and types of activities carried out
by the organization. It should identify the core competences the organization needs to achieve its
goals and therefore its skill requirements.

2. Resourcing strategy

This entails planning to achieve competitive advantage by developing intellectual capital_

employing more capable people than rivals, ensuring that they develop organization specific
knowledge and skills, and taking steps to become “an employer of choice”. The organization
retains these people by providing better opportunities and rewards than others, and by developing
a positive psychological contract which increases commitment and creates mutual trust.

Components of resourcing strategy

 Resource planning: preparing plans for finding people from within the organization
and/or for training programs to help people learn new skills. If needs cannot be satisfied
from within the organization, preparing longer term plans for meeting them by attracting
high quality candidates as the ‘the employer o f choice’
  Flexibility plans: planning for increased flexibility in the use of human resources to
enable the organization to make the best use of people and adapt swiftly to changing
circumstances.

 Retention plans: preparing plans for retaining the people the organization needs.

3. Scenario planning

Involves assessing in broad terms where the organization is going in its environment and
the implications for human resource requirements. Scenario planning is simply a more or
less formalized process for establishing a view about any changes that can be foreseen to
the scale and type of activities in the organization and its structure, and for identifying
any external environmental changes that are likely to affect it. The aim is to obtain a
better understanding of the possible situations that may have to be dealt with in future.

4. Demand and supply Forecasting

Demand forecasting is the process of estimating the future numbers of people required and the
likely skills and competences they will need. The aim of forecasting is to determine the number
and type of employees needed in the future. Forecasting should consider the past and the
present requirements as well as future organizational directions. Bottom-up forecasting is one
of the methods used to estimate future human resource needs by gathering human resource needs
of various organizational units.

Supply forecasting measures the number of people likely to be available from within and outside
the organization, having allowed for attrition (labour wastage and retirements), absenteeism,
internal movements and promotions, and changes in hours and other conditions of work. The
forecast will be based on:

 An analysis of existing human resources in terms of numbers in each occupation, skills

and potential.

 Forecast changes to existing resources through internal promotions

  Effect of changing conditions of work and absenteeism.

 Sources of supply from within the organization.

 Sources of supply from outside the organization in the national and local labour markets.

5. Analyzing demand and Supply

The demand supply forecasts can then be analyzed to determine whether there are any deficits or
surpluses. This provides the basis for recruitment, retention and if unavoidable downsizing plans.
Organizations can hire personnel from internal and external sources. The skill inventories
method is one of the techniques used to keep track of internal supply. Skill inventories are
manual or computerized systems that keep records of employee experience, education and
special skills. A forecast of the supply of employees projected to join the organization from
outside sources, given current recruitment activities, is also necessary.

6. Environmental Analysis

The first step in the human resource planning process is to understand the context of human
resource management. Human resource managers should understand both internal and external
environments. Data on external environments includes the following:

_ Competition: Often businesses will feel pressure to expand and hire more workers in order to
remain competitive in a particular market.

_ Technology: Technological advancements may increase the demand for employees in certain

industries or professions.

_ Increased customer demand: An increased demand for products or services may require
more resources to help produce or deliver services.

_ Economy: Growth of the economy or lower interest rates cause increased spending, and often
increased business opportunities. Changes in the labour market impact your ability to find and
keep employees.
_ Workforce changes: These include resignations, terminations, leave of absences, death,
change in employment status, and retirement.

Others include industry, labor market regulations and trends, unemployment rate, skills
available; and the age and sex distribution of the labor force. Internal data required include short-
and long-term organizational plans and strategies and the current status of the organization's
human resources.

7. Operational effectiveness analysis

Analyzing productivity, the utilization of people and the scope for increasing flexibility
to respond to new and changing demands.

4.1 WAYS OF PREDICTING FUTURE PERSONNEL NEEDS

1. Trend Analysis

Study your firm’s employment levels over the last five years or so to predict future needs. Thus,
you might compute the number of employees in your firm at the end of each of the five years, or
perhaps the number in each subgroup (like salespeople, production people, secretarial and
administrative) at the end of each of those years. The purpose is to identify employment trends
you think might continue into the future. Trend analysis is valuable as an initial estimate, but
employment levels rarely depend solely on the passage of time.

2. Ratio Analysis

It means making forecasts based on the ratio between_ some casual factor like sales volume and
_ number of employees required for instance number of salespeople.

Like trend analysis, ratio analysis assumes that productivity remains about the same. If sales
productivity were to increase or decrease then the ratio of sales to salespeople would change. A
forecast based on historical ratios would then no longer be as accurate.

3. The Scatter Plot

It is a graphical method used to help identify the relationship between two variables. You can use
scatter plots to determine whether two factors_ a measure of business activity and your staffing
levels- are related. If they are, then you can forecast the measure of business activity you should
also be able to estimate your personnel requirements.

4. Using Computers to forecast personnel requirements

Computer programs can also be used to forecast personnel requirements. Typical data needed
include direct labor hours required to produce one unit of product(a measure of productivity),
and three sales projections- minimum, maximum and probable- for the product line in question.
Based on such data, a typical program generates figures on average staff levels required to meet
product demands, as well as separate computerized forecasts for direct labor such as assembly
workers, indirect staff such as secretaries and exempt staff such as executives.

With such systems, employers can quickly translate projected productivity and sales levels into
forecasts of personnel needs, while estimating the effects of the areas productivity and sales
levels on personnel requirements.

5. Managerial or expert judgment

This is the most typical method of forecasting and may be linked to some form of scenario
planning. It simply requires managers or specialists to sit down, think about future workloads
and decide how many people are needed. This can be no more than guesswork unless there is
reliable evidence available of forecast increases in activity levels or new demands for skills.

6. Work study techniques

Work study techniques can be used when it is possible to apply work measurement to calculate
how long operations should take and the number of people required. Work study techniques for
direct workers can be combined with ratio trend analysis to calculate the number of indirect
workers needed.

4.2 FORECASTING SUPPLY

The supply of both internal and external candidates must be estimated.

1. Forecasting supply of inside candidates

 A qualification inventory can facilitate forecasting the supply of internal candidates.
Qualifications inventories contain data on things like each employee’s performance
records, educational background and promotability compiled either manually or in a
computerized system

Manual Systems and Replacement Charts

In the personnel inventory and development record, information is compiled about each
employee and then recorded on the inventory. This information can be used to determine
which current employees are available for promotion or transfer to projected open areas.

Some employers use personnel replacement charts to keep track of inside candidates for
their most important positions. These show the present performance and promotability for
each potential replacement for important positions.

Computerized Information Systems

Qualifications inventories on thousands of employees cannot be adequately maintained

manually. Many firms computerize this information and a number of packaged systems
are available for accomplishing this task.

In one such system, employees fill out a 12-page booklet to describe their background
and experience. This information is stored and when a manager needs a qualified person
for a position, he/she describes the position and then enters this information into the
computer. After scanning its bank of possible candidates, the program presents the
manager with a computer printout of qualified candidates.

2. Forecasting the supply of outside candidates

This requires forecasting economic conditions, local market conditions and occupational
market conditions.

 Economic conditions

The first step is to forecast general economic conditions and the expected
prevailing rate of unemployment. Usually the lower the rate of unemployment the
 more difficult it will be to recruit personnel. There is a wealth of published
economic forecast information for example in December of each year Business
week magazine presents its economic forecast for the following year.

 Local labour market conditions

For example the buildup of computer and semiconductor companies resulted in

relatively low unemployment recently in cities like Seatle, quite aside from
general economic conditions in the rest of the country.

 Occupational market conditions

Forecasts for various occupations are available from many sources. For example
the Bureau of Labor Statistics of the US department of Labor publishes annual
projections in the monthly labour review.

4.3 LIMITATIONS OF HUMAN RESOURCE PLANNING

Although HRP is a very advantageous method it has some limitations which can
be explained as follows.

1. The future is uncertain

The future in any country is uncertain that is there are political, cultural, technological
changes taking place every day. This effects the employment situation. Accordingly the
company may have to appoint or remove people. Therefore HRP can only be a guiding
factor. We cannot rely too much on it and do every action according to it.

2. Conservative attitude of top management

Much top management adopts a conservative attitude and is not ready to make changes.
The process of HRP involves either appointing. Therefore it becomes very difficult to
implement HRP in the organization because top management does not support the
decision of other departments.

Problem of surplus staff

 HRP gives a clear out solution for excess staff i.e. termination, layoff etc. however when
certain employees are removed from company it mostly affects the psyche of the existing
employee, and they start feeling insecure, stressed out and do not believe in the company.
This is a limitation of HRP that is it does not provide alternative solution like retraining
so that employee need not be removed from the company.

3. Time consuming activity

HRP collects information from all departments regarding demand and supply of
personnel. This information is collected in detail and each and every job is considered.
Therefore the activity takes up a lot of time.

4. Expensive process

The solution provided by process of HRP incurs are expensive. The company has to
spend a lot of money in carrying out the activity. Hence we can say the process is
expensive.

5.0 RECRUITMENT

5.1 Definitions of recruitment

 According to Edwin B. Flippo, recruitment is the process of searching the candidates

for employment and stimulating them to apply for jobs in the organization”.
Recruitment is the activity that links the employers and the job seekers.

 A process of finding and attracting capable applicants for employment. The process
begins when new recruits are sought and ends when their applications are submitted.
The result is a pool of applications from which new employees are selected.

 It is the process to discover sources of manpower to meet the requirement of staffing

schedule and to employ effective and efficient working force.
Recruitment of candidates is the function preceding the selection, which helps create a pool
of prospective employees for the organization so that the management can select the right
 candidate for the right job from this pool. The main objective of the recruitment process is to
expedite the selection process.
Recruitment is a continuous process whereby the firm attempts to develop a pool of qualified
applicants for the future human resources needs even though specific vacancies do not exist.
Usually, the recruitment process starts when a manger initiates an employee requisition for a
specific vacancy or an anticipated vacancy.

5.2 RECRUITMENT NEEDS ARE OF THREE TYPES

 Planned i.e. the needs arising from changes in organization and retirement policy.

 Anticipated
Anticipated needs are those movements in personnel, which an organization can
predict by studying trends in internal and external environment.

 Unexpected
Resignation, deaths, accidents, illness give rise to unexpected needs.
5.3 THE RECRUITMENT AND SELECTION PROCESS

Steps in the recruitment selection process

Employment planning and forecasting

Recruiting-Build a pool of candidates
Applicants complete
Useapplication
selection tools
formslike tests to screen out

Supervisors and others interview final candidates

Candidates become employees

Personnel’s planning is the first step in the recruitment and selecting process.

1. Do employment planning and forecasting to determine the duties of the position to be

 filled.

2. Build a pool of candidates for these jobs by recruiting internal or external candidates.

3. Have the applicants fill out application forms and perhaps undergo an initial screening
interview.

4. Utilize various selection techniques such as tests, background investigations, and

physical exams to identify viable job candidates.

5. Send one or more viable job candidates to the supervisor responsible for the job.

6. Have the candidate(s) go through one or more selection interviews with the supervisor
and other relevant parties for the purpose of finally determining to which candidate(s) an
offer should be made.

Determine the Feasibility of Hiring

Before you hire, you must understand

(1) The costs of hiring.

When calculating the full cost of hiring a new employee you must consider:

_ Labour costs, such as salary and benefits

_ Recruiting costs, which may include advertising in addition to time spent on recruiting
activities, orientation and training.

(2 The benefits of hiring.

Weigh the costs of hiring against the value of having an employee contributing to the business.
Potential benefits include:

_ Improved morale of other employees, if a departing employee was a problem or if the area has
been understaffed for some time
_ Improved productivity if a departing employee was not productive or if employees believed
that you have made the decision to hire as a result of their input

_ Increased revenues once a new employee is performing at an acceptable level

_ A new employee who is more qualified than current employees can help train the existing
employees

(3) The risks of not hiring.

Some of the potential risks associated with choosing not to hire despite the need for additional
staff include:

_ Loss of revenues because of an inability to keep up with demand

_ Loss of employees because they are unwilling to continue being overworked or to do the work
of a departed employee

_ No new ideas or knowledge brought in through new employees

If you decide that hiring a new employee is feasible, you are ready to begin the recruitment
process. If not, you might need to revisit your strategic plan or business objectives.

Remember: There should be a strong relationship between how many additional employees
you hire and how much of an increase in sales, production, etc. that you can expect.

If hiring is feasible, you are ready to begin the recruitment process.

5.4 The Purpose and Importance of Recruitment

 Attract and encourage more and more candidates to apply in the organization.

 Create a talent pool of candidates to enable the selection of best candidates for the
 organization.

 Determine present and future requirements of the organization in conjunction with its
personnel planning and job analysis activities.

 Increase the pool of job candidates at minimum cost.

 Help increase the success rate of selection process by decreasing number of visibly
under qualified or overqualified job applicants

 Help reduce the probability that job applicants once recruited and selected will leave
the organization only after a short period of time.

 Meet the organizations legal and social obligations regarding the composition of its
workforce.

 Begin identifying and preparing potential job applicants who will be appropriate
candidates.

 Increase organization and individual effectiveness of various recruiting techniques and

sources for all types of job applicants

5.6 FACTORS AFFECTING RECRUITMENT

The recruitment function of the organizations is affected and governed by a mix of various
internal and external forces. The internal forces or factors are the factors that can be controlled
by the organization. And the external factors are those factors which cannot be controlled by
the organization.
 FACTORS AFFECTING RECRUITMENT

EXTERNAL FACTORS AFFECTING RECRUITMENT

1. Recruitment policy
The recruitment policy of an organization specifies the objectives of recruitment and
provides a framework for implementation of recruitment program. It may involve
organizational system to be developed for implementing recruitment programs and
procedures by filling up vacancies with best qualified people.
Factors affecting recruitment policy
• Organizational objectives
• Personnel policies of the organization and its competitors.
• Preferred sources of recruitment.
• Need of the organization.
• Recruitment costs and financial implications.

2. Human resource planning

Effective human resource planning helps in determining the gaps present in the existing
manpower of the organization. It also helps in determining the number of employees to
be recruited and what qualification they must possess.
3. Size of the firm
The size of the firm is an important factor in recruitment process. If the organization is
planning to increase its operations and expand its business, it will think of hiring more
personnel, which will handle its operations.
4. Cost
Recruitment incur cost to the employer, therefore, organizations try to employ that
source of recruitment which will bear a lower cost of recruitment to the organization for
each candidate.
5. Growth and expansion
Organization will employ or think of employing more personnel if it is expanding it’s
operations

INTERNAL FACTORS AFFECTING RECRUITMENT:

1. Supply and demand

The availability of manpower both within and outside the organization is an important
 determinant in the recruitment process. If the company has a demand for more
professionals and there is limited supply in the market for the professionals demanded by
the company, then the company will have to depend upon internal sources by providing
them special training and development programs.

2. Labour market
Employment conditions in the community where the organization is located will
Influence the recruiting efforts of the organization. If there is surplus of manpower at the
time of recruitment, even informal attempts at the time of recruiting like notice boards
display of the requisition or announcement in the meeting etc will attract more than enough
applicants.

3. Image / goodwill
Image of the employer can work as a potential constraint for recruitment. An
organization with positive image and goodwill as an employer finds it easier to attract
and retain employees than an organization with negative image. Image of a company is
based on what organization does and affected by industry. For example finance was
taken up by fresher MBA’s when many finance companies were coming up.
4. Political-social- legal environment
Various government regulations prohibiting discrimination in hiring and employment
have direct impact on recruitment practices. For example, Government of India has
introduced legislation for reservation in employment for scheduled castes, scheduled
tribes, physically handicapped etc. Also, trade unions play important role in recruitment.
This restricts management freedom to select those individuals who it believes would be
the best performers. If the candidate can’t meet criteria stipulated by the union but union
regulations can restrict recruitment sources.
5. Unemployment rate
One of the factors that influence the availability of applicants is the growth of the
economy (whether economy is growing or not and its rate). When the company is not
creating new jobs, there is often oversupply of qualified labour which in turn leads to
 unemployment.

6. Competitors
The recruitment policies of the competitors also effect the recruitment function of the
organizations. To face the competition, many a times the organizations have to change
their recruitment policies according to the policies being followed by the competitors.

5.7 CHALLENGES FACED BY THE HR IN RECRUITMENT

 Adaptability to globalization – The HR professionals are expected and required to

keep in tune with the changing times, i.e. the changes taking place across the globe.
HR should maintain the timeliness of the process
 Lack of motivation – Recruitment is considered to be a thankless job. Even if the
organization is achieving results, HR department or professionals are not thanked for
recruiting the right employees and performers.
 Process analysis – The immediacy and speed of the recruitment process are the main
concerns of the HR in recruitment. The process should be flexible, adaptive and
responsive to the immediate requirements. The recruitment process should also be
cost effective.
 Strategic prioritization – The emerging new systems are both an opportunity as well
as a challenge for the HR professionals. Therefore, reviewing staffing needs and
prioritizing the tasks to meet the changes in the market has become a challenge for
the recruitment professionals.
6.0 HOW ORGANIZATIONS CARRY OUT HUMAN RESOURCE PLANNING AND
RECRUITMENT

6.1 A Case Study of Eldoret Water and Sanitation Company Limited

Vision

To be a world class water services provider.

Mission

ELDOWAS is committed to providing quality and adequate water services in a cost effective
manner to its stakeholders by a qualified and motivated human resource.

6.11 Human resource planning

 During human resource planning a budget is usually prepared annually and forecasting is
done in terms of salaries, training and recruitment and so on. Planning on the staff usually
takes 2.5 million of the budget.

 TNA (Training Need Analysis) is a technique carried out to know if there is any gap for
training. It is normally done using questionnaires which are distributed to the staff. They
are filled and then analyzed by the board.

 The company doesn’t have a specific type of human resource plan. They keep on
updating their plan for example last year they came up with a program known as CBA,
this is a bargaining agreement for the organizations to increase staff morale.

 The organization has a system with different policies to govern day to day activities for
example recruitment policy, human resource policy, training policy and so on.
 Forecasting manpower demand and supply

 The department has an established committee that carries out assessments to find
out the number and type of personnel required.

 The department receives requests for personnel from other departments.

 TNA analysis is done to know if there is any gap.

LIMITATIONS OF HUMAN RESOURCE PLANNING

Finance

Human resource planning requires a lot of money which the organization is not able to
meet.

Availability of space

The HR supply is much more than the demand. The HRM receives so many qualified
applicants yet the vacancies are very few.

Forecasting human demand

Due to environmental changes like technology, market demand and so on.

6.12 RECRUITMENT

Procedures used while recruiting

1. The HR department receives requests for personnel from other departments.

2. If the vacant position is approved a job specification is given according to the

terms of service.
 3. The Head of Department discusses with the committee if a qualified staff can be
promoted.

4. In the absence of an employee with the right qualifications for the posts, the MD
advertises in the public media.

5. The applicants are shortlisted and then interviewed.

6. The best applicants are selected and given temporary appointment letters.

7. The candidates chosen are sent to relevant departments for induction training.

8. A confirmation is made if the candidates are suitable.

Challenges during the recruitment process

 Canvassing_ this is where some members of the board want to recruit

people of their choice.

 External pressures

 Meeting the right qualified person.

 Forecasting supply.
7.0 CONCLUSION

Because your employees play such a critical role in your business’s successes, it is important that
you put thought and careful planning into your human resource practices. Remember that your
human resource plan should correspond with your business plan. For example, if you anticipate
25% growth in sales in two years, you must consider how that will affect your workplace and
human resource needs.

Human resource planning is an ongoing process. You must continually monitor and forecast
personnel needs and concerns. Human resource planning is something that you can learn and
improve on through experience and effort.

There are several options available to employers who are involved in recruiting employees.
While there is no right or wrong answer when it comes to choosing recruitment strategies, it is
important that you weigh a number of factors before making your decision. How much money do
you have in your budget for advertising job openings? How soon must the position be filled?
Where can candidates with the required skills and education be found?
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Armstrong, M. (2006). A Handbook of Human Resource Management Practice

(10th ed.). Great Britain: Cambridge University Press.

Dessler .G. (2006). Human Resource Management (8th ed.). Florida International
University.

French, W. L. (1982). The personnel management process (5th ed.). Boston:

Houghton Miffin.

Stoner, J. A. R, & Freeman, R. E. (1992). Management (5th ed.). New Delhi:

Prentice-Hall of India.

Dessler .G. (2006). Human Resource Management (8th ed.). Florida International
University.