Personnel Planning - recruitment & selection

Planning Based on chapter 5

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Personnel Planning - recruitment & selection

We have already discussed job analysis and the methods managers use to create job descriptions and job specifications. Now we needed to discuss personnel planning and forecasting, recruiting job candidates, and developing and using application forms and how to improve effectiveness in recruiting candidates We will also examine the methods managers use to select the best employees from an applicant pool.
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Tutorial 5

At todays tutorial you will be asked to write a paragraph explaining What is HRM? and Why is HRM important for all managers ?
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Tutorial 6

At Mondays tutorial you will have a multiple choice Test . Please revise Ch 3 & 5 of the Dessler book over the weekend
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How many jobs does an organisation need?

As we have seen Job analysis identifies the duties and human requirements for each of the companys jobs. The next step is to decide how many of these jobs you need to fill, and to recruit and select employees for them.

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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.
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FIGURE 51

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.

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Links between strategic and personnel planning

Employment planning should flow from the firms strategic plans. Figure 5-2 which follows summarizes the link between strategic and personnel planning.

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FIGURE 52

Linking Employers Strategy to Plans

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Employment Planning
Employment (or personnel) planning is the process of deciding what positions the firm will have to fill, and how to fill them. It embraces all future positions, from maintenance clerk to CEO. However, most firms call the process of deciding how to fill executive jobs succession planning. Like all good plans, personnel plans require some forecasts or estimates, in this case, of three things: personnel needs, the supply of inside candidates, and the likely supply of outside candidates.
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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

companys most important executive jobs.

What to Forecast?
Overall personnel needs The supply of inside candidates The supply of outside candidates
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Analysis
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). A scatter plot shows graphically how two variablessuch as sales and your firms staffing levelsare 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.
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Forecasting Personnel Needs

Forecasting Tools

Trend analysis

Ratio analysis

Scatter plotting

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Other Factors

Managers obviously need to consider other factors too. These include projected turnover, decisions to upgrade (or downgrade) products or services, productivity changes, and financial resources.
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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.
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Forecasting
Computerized forecasts enable the manager to build more variables into his or her personnel projections. Newer systems particularly rely on mathematically setting clear goals. Whichever forecasting tool you use, managerial judgment should play a big role. Its rare that any historical trend, ratio, or relationship will simply continue. You will therefore have to modify the forecast based on subjective factorssuch as the feeling that more employees will be quittingyou believe will be important.
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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 scenariosminimum, maximum, and probable.
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Staffing
Knowing your staffing needs satisfies only half the staffing equation. Next, you have to estimate the likely supply of both inside and outside candidates. Most firms start with the inside candidates. Department managers or owners of smaller firms often use manual devices to track employee qualifications. Thus a personnel inventory and development record form compiles qualifications information on each employee.
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Staffing

Computerized skills inventory data typically include items like work experience codes, product knowledge, the employees level of familiarity with the employers product lines or services, the persons industry experience, and formal education.
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Question
1) What is the first step in the recruitment and selection process? A) performing initial screening interviews B) building a pool of candidates C) performing candidate background checks D) interviewing possible candidates E) deciding what positions to fill Answer:
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Answer

Answer E Explanation: The first step of the recruitment and selection process is deciding what positions to fill through personnel planning and forecasting. Building a candidate pool, having candidates complete applications, and performing background checks are the next steps in the process. The final step is interviewing candidates and making job offers.
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Question

4) Marcus, an HR manager for Samsung, must decide what positions the firm should fill in the next six months., which means Marcus is currently working on ________. A) employee contracting B) screening job candidates C) personnel planning D) interviewing job candidates E) writing job descriptions Answer:
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Answer

Answer C Explanation: Personnel or employment planning is the process of deciding what positions the firm will have to fill and how to fill them. The process considers all future positions from maintenance workers to executives, and flows from the firm's strategic plans.
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Forecasting the Supply of Inside Candidates

Qualification Inventories

Manual systems and replacement charts

Computerized skills inventories

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Employee Data
The employer should secure all its employee data. Much of the data is personal (such as Social Security numbers and illnesses). Legislation gives employees legal rights regarding who has access to information about them
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 If there wont be enough inside candidates to fill the anticipated openings (or you want to go outside for another reason), you will turn to outside candidates.
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Recruitment
Its hard to overemphasize the importance of effective recruiting. Its easy to assume that recruiting is easythat all you need do is place a few ads on the Web. Nothing could be farther from the truth. Several things make it more complex.

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The Need for Effective Recruiting

Recruiting Challenges

Effectiveness of chosen recruiting methods

Effects of nonrecruitment issues and policies

Legal requirements associated with employment laws

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Recruiting

Assuming the company authorizes you to fill a position, the next step is to build up, through recruiting, an applicant pool. Employee recruiting means finding and/or attracting applicants for the employers open positions.
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Effective Recruiting
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
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Centralize /decentralize ?

Should you centralize your firms recruitment efforts, or let each plant or office do their own recruiting? Reasons for doing so appear on the next slide

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Organizing How You Recruit

Advantages of Centralizing Recruiting Efforts

Facilitates strategic priorities

Reduces duplication of HR activities

Ensures compliance with EEO laws

Fosters effective use of online recruiting

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Measuring Effectiveness
Measuring recruiting effectiveness requires deciding what recruiting outcomes to measure and how to measure them.

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Measuring Recruiting Effectiveness

Evaluating Recruiting Effectiveness

What to measure

How to measure

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Question
Employment planning requires making forecasts of three elements: the supply of inside candidates, the likely supply of outside candidates, and ________. A) personnel needs B) job specifications C) supervisor salaries D) global trends E) labor relations Answer
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Answer

Answer A Explanation: The process of personnel planning requires forecasts or estimates of three things: personnel needs, the supply of inside candidates, and the likely supply of outside candidates. Forecasting personnel needs can be done through a trend analysis of the firm's employment levels over the last few years.

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Internal Candidates
Recruiting of current employees, or hiring from within, is often the best source of candidates. However, there are advantages and disadvantages to using internal candidates.

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Internal Sources of Candidates

Advantages
Foreknowledge of candidates strengths and weaknesses More accurate view of candidates skills Candidates have a stronger commitment to the company Increases employee morale Less training and orientation required
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Disadvantages
Failed applicants become discontented Time wasted interviewing inside candidates who will not be considered Inbreeding strengthens tendency to maintain the status quo

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Internal Hiring
Hiring from within ideally relies on job posting and the firms skills inventories. Job posting means publicizing the open job to employees (usually by literally posting it on company intranets or bulletin boards). These postings list the jobs attributes, like qualifications, supervisor, work schedule, and pay rate. Qualifications skills banks also play a role. For example, the database may reveal persons who have potential for further training or who have the right background for the open job.
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Finding Internal Candidates

Hiring-from-Within Tasks

Posting open job positions

Rehiring former employees

Succession planning (HRIS)

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Outside recruitment
Firms cant always get all the employees they need from their current staff, and sometimes they just dont want to. The next slide lists some of the sources that firms use to find outside candidates.
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Outside Sources of Candidates

Locating Outside Candidates
1 Recruiting via the Internet

6 7
8 9

Executive Recruiters

2
3 4 5

Advertising Employment Agencies

Temp Agencies and Alternative Staffing Offshoring/Outsourcing

On Demand Recruiting Services (ODRS)

College Recruiting Referrals and Walk-ins

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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
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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.
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Outsourcing /off shoring

Outsourcing and off shoring are perhaps the most extreme examples of alternative staffing. Rather than bringing people in to do the firms jobs, outsourcing and off shoring send the jobs out. Outsourcing means having outside vendors supply services (such as benefits management, market research, or manufacturing) that the firms own employees previously did in-house. Offshoring is a narrower term. It means having outside vendors abroad supply services that the firms own employees previously did in-house.

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Offshoring and Outsourcing Jobs

Political and military instability Resentment and anxiety of U.S. employees/unions

Cultural misunderstandings

Costs of foreign workers

Outsourcing/ Offshoring Issues

Customers securing and privacy concerns

Special training of foreign employees

Foreign contracts, liability, and legal concerns

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Executive Recruiters
Executive recruiters (also known as headhunters) are special employment agencies retained by employers to seek out top-management talent for their clients. For executive positions, headhunters may be your only source of candidates. The employer always pays the fees.

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College Recruiting
On-campus recruiting goals
To determine if the candidate is

On-site visits
Invitation letters Assigned hosts

worthy of further consideration

To attract good candidates

Information packages
Planned interviews Timely employment offer Follow-up

Internships

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Sources of Outside Applicants

Other Sources of Outside Applicants

Employee referrals

Walk-ins

Telecommuters

Military personnel

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Question

What are the four main types of information application forms provide. Discuss with the person nearest to you . Using you book answer make a list? Present to the rest of the class .
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Developing and Using Application Forms

Uses of Application Form Information

Applicants education and experience

Applicants prior progress and growth

Applicants employment stability

Applicants likelihood of success

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Choosing applicants
In choosing what to ask on the application, some experts suggest using a two-stage process. Ascertain the applicant qualification for the job, and then make a conditional job offer.

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Two-Stage Process

Is Applicant Qualified?
Review application information, personal interview, testing, and do background check

Yes

Conditional Job Offer

Make conditional job offer contingent on meeting all second stage conditions

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Recruitment in China
Before economic reforms:
Recruit according to government plan

After economic reforms:

Open to society (market forces) Based on qualifications Recruitment fairs in major cities organized by agencies

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Recruitment in China
Two-way Recruitment and Selection
Policy shift away from centrally-planned allocation system to

one thats market-oriented

Objective is to attract and retain competent employees Policy requires the labor bureau to assist job seekers Jobseekers now introduce themselves to companies by

sending resumes and attending interviews.

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Recruitment in China
Recruiting Managers for China Operations

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