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What Is Human Resource Management?

By Susan M. Heathfield, Guide

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Ads HR & Payroll Softwarewww.trogonsoft.comBest Web Based HR & Payroll Software, demo Branded Shoes, 50%* Branded Shoes @ up to 50% Off. Pay on Delivery, Order now! Get New Customers On Google. Get 2000 INR Advertising Credit When You Sign-Up Ads Extra 27% Off Guaranteed. Offer Valid Only Today. Shop Now! Upload Your CV For Worlds No.1 Speedy Job Portal. Apply to Jobs Faster. Upload Now! Question: What Is Human Resource Management? Answer: Human Resource Management (HRM) is the function within an organization that focuses on recruitment of, management of, and providing direction for the people who work in the organization. HRM can also be performed by line managers. HRM is the organizational function that deals with issues related to people such as compensation, hiring, performance management, organization development, safety, wellness, benefits, employee motivation, communication, administration, and training. HRM is also a strategic and comprehensive approach to managing people and the workplace culture and environment. Effective HRM enables employees to contribute effectively and productively to the overall company direction and the accomplishment of the organization's goals and objectives. HRM is moving away from traditional personnel, administration, and transactional roles, which are increasingly outsourced. HRM is now expected toadd value to the strategic utilization of employees and that employee programs impact the business in measurable ways. The new role of HRM involves strategic direction and HRM metrics and measurements to demonstrate value.

Functions of Human Resource Management Human Resource Management or HRM refers to manpower management within an organization. The value of human assets within various departments, need to keep appreciating for the company to profit from the potential of employee skills and experience.

The definition of human resource management emphasizes the sphere of influence to encompass 'the strategic approach to manpower management in an organization'. The process calls for a coherent objective to retain and increase employee head-count, any organization's most valued asset. This specialized study and application has come in the wake of realization that the employees of an organization, individually and collectively, are the main contributors to the achievement of business objectives. The management of people hired by an organization involves employing people, designing and developing related resources and most importantly, utilizing and compensating their services to optimize business profitability via employee performance. Today, Human Resource Management operates in tune with other essential organizational

requirements and co-exists with the topmost management cadre. Managing human resources within a company calls for a liaison between the organization's management personnel and the administration of the executive rungs. It thrives on the strength of the relationship between the management and workers of the company. Functions of Human Resource Management Human Resource Management involves the development of a perfect blend between traditional administrative functions and the well-being of all employees within an organization. Employee retention ratio is directly proportionate to the manner in which the employees are treated, in return for their imparted skills and experience. A Human Resource Manager ideally empowers inter-departmental employee relationships and nurtures scope for down-the-rung employee communication at various levels. The field is a derivative of System Theory and Organizational Psychology. The Human Resource department has earned a number of related interpretations in time, but continues to defend the need to ensure employee well-being. Every organization now has an exclusive Human Resource Management Department to interact with representatives of all factors of production. The department is responsible for the development and application of ongoing research on strategic advances while hiring, terminating and training staff. The Human Resource Management Department is responsible for: Understanding and relating to employees as individuals, thus identifying individual needs and career goals. Developing positive interactions between workers, to ensure collated and constructive enterprise productivity and development of a uniform organizational culture. Identify areas that suffer lack of knowledge and insufficient training, and accordingly provide remedial measures in the form of workshops and seminars. Generate a rostrum for all employees to express their goals and provide the necessary resources to accomplish professional and personal agendas, essentially in that order. Innovate new operating practices to minimize risk and generate an overall sense of belonging and accountability. Recruiting the required workforce and making provisions for expressed and promised payroll and benefits. Implementing resource strategies to subsequently create and sustain competitive advantage. Empowerment of the organization, to successfully meet strategic goals by managing staff effectively. The human resource department also maintains an open demeanor to employee grievances. Employees are free to approach the human resource team for any conceived query or any form of on-the-job stress that is bothering them. Performance of employees is also actively evaluated on a regular basis. These are checks conducted by the HR to verify and thereby confirm the validity of the employees actual performance matching the expected performance. Promotions, Transfers or expulsion of services provided by the employee are some duties that are enforced by the human resource department. Promotions are conducted and are predominantly based on the overall performance of the individual, accompanied by the span or tenure he has served the organization. The Human resource department also looks at the possibilities of the employee migrating from one job to another, maintaining the hierarchy in the company and considering the stability of post and the salary obtained over a period of time. Ideally, a Human Resource Management Department is responsible for an interdisciplinary examination of all staff members in the workplace. This strategy calls for applications from diverse fields such as psychology, paralegal studies, industrial engineering, sociology, and a critical understanding of theories pertaining to postmodernism and industrial structuralism. The department bears the onus of converting the available task-force or hired individuals into strategic business partners. This is achieved via dedicated Change Management and focused Employee Administration. The HR functions with the sole goal of motivating and encouraging the employees to prove their mettle and add value to the company. This is achieved via various management processes like workforce planning and recruitment, induction and orientation of hired task-force and employee training, administration and appraisals Read more at Buzzle:

Human Resource Management HRM - Meaning Features Scope

Post : Gaurav Akrani Date : 4/28/2011 07:03:00 AM IST Comment (1) Labels : Management

Meaning of Human Resource Management HRM

HRM means to Select, Develop, Motivate and Maintain human resources, in the organisation. It first selects the right human resources or staff (i.e. managers and employees). It trains and develops them. It motivates them by giving them recognition and rewards. It also provides them with the best working conditions.

Image Credits HRM At WORK. HRM is directly concerned with the "people" of the organisation. It is people oriented process. That is, it manages people at work.

Features of Human Resource Management HRM

Following is the nature or features of Human Resource Management HRM :-

1. HRM as a Process
HRM is a process of four functions :1. 2. 3. 4.

Acquisition of human resources : This function includes Human Resource Planning, Recruitment, Selection,
Placement and Induction of staff.

Development of human resources : This function includes Training and Development and Career
development. The knowledge, skills, attitudes and social behavious of the staff are developed.

Motivation of human resources : This function includes giving recognition and rewards to the staff. it also
includes Performance Appraisal and handling the problems of staff.

Maintenance of human resources : This function includes providing the best working conditions for
employees. It also looks after the health and safety of the staff.

2. Continuous Process
HRM is not a one-time process. It is a continuous process. It has to continuously change and adjust according to the changes in the environment, changes in the expectations of the staff, etc. HRM has to give continuous training and development to the staff due to changes in technology.

3. Focus on Objectives
HRM gives a lot of importance to achievement of objectives. The four main objectives HRM has to achieve are :1. 2. 3. 4. Individual objectives of the staff. Group or Departmental objectives. Organisational objectives. Societal objectives.

4. Universal Application
HRM has universal application. That is, it can be used for business as well as for other organisations such as schools, colleges, hospital, religious organisations, etc.

5. Integrated use of Subsystems

HRM involves the integrated use of sub-systems such as Training and Development, Career Development, Orgnisational Development, Performance Appraisal, Potential Appraisal, etc. All these subsystems increase the efficiency of the staff and bring success to the organisation.

6. Multidisciplinary
HRM is multidisciplinary. That is, it uses many different subjects such as Psychology, Communication, Philosophy, Sociology, Management, Education, etc.

7. Developes Team Spirit

HRM tries to develop the team spirit of the full organisation. Team spirit helps the staff to work together for achieving the objectives of the organisation. Now-a-days more importance is given to team work and not to individuals.

8. Develops Staff Potentialities

HRM develops the potentialities of the staff by giving them training and development. This will make the staff more efficient, and it will give them more job satisfaction.

9. Key Elements for solving problems

Today, we have rapid technological, managerial, economic and social changes. These changes bring many problems. HRM continuously tries to solve these problems.

10. Long Term Benefits

HRM brings many long term benefits to the individuals (staff), the organisation and the society. It gives many financial and nonfinancial benefits to the staff. It improves the image and profits of the organisation. It also provides a regular supply of good quality goods and services at reasonable prices to the society.

Scope of Human Resource Management HRM

The Scope of Human Resource Management HRM is discussed below :-

1. Human Resource Planning (HRP)

HRP estimates the manpower demand and manpower supply of the organisation. It compares the manpower demand and manpower supply. If there is manpower surplus then it gives voluntary retirement, lay-off, etc. to some employees. If there is manpower shortage then it hires employees from outside, gives promotion to employees, etc.

2. Acquisition Function
Acquisition function includes Human Resource Planning, Recruitment, Selection, Placement and Induction of employees. HRM uses the scientific selection procedure for selecting the right man for the right post. The "right man" is given proper placement and induction.

3. Placement Function
HRM also performs the placement function. Placement is done after selection of employees. It means to put the right man in the right place of work. Proper placement gives job satisfaction to the employees, and it increases their efficiency.

4. Performance Appraisal
HRM also conducts a performance appraisal. Performance appraisal is a systematic evaluation of the employees' performance at work. It informs the employees about their strengths and weakness. It also advises them about how to increase their strengths and remove their weaknesses.

5. Career Development
HRM also helps the employees in planning and developing their careers. It informs them about future promotions and how to get these promotions. It helps them to grow and develop in the organisation.

6. Training and Development

HRM also provides training and development to the employees. Training means to increase the knowledge and skills of the employee for doing a particular job. Training given to managers is called development. So, training is given to employees while development is given to managers.

7. Quality of Work Life (QWL)

HRM also includes Quality of Work Life. QWL is a technique for improving productivity and quality of work. It involves labour management co-operation, collective bargaining and participative management. QWL provides good working conditions, job security, good pay and other facilities such as flexible working hours, freedom to suggest changes or improvements, etc. OWL creates a sense of belonging. This benefits the organisation as well as the individual employees.

8. Employees' Welfare
HRM provides employee's welfare. Welfare measures include paid holidays, medical insurance, canteen facilities, recreation facilities, rest room, transport facilities, etc. Proper and timely welfare facilities motivate the employees to work hard in the organisation.

9. Compensation Function
Employees must be rewarded and recognised for their performance. HRM makes proper compensation packages for the employees. These packages motivate the employees and increase their morale. Rewards are given to individuals, and teams. The rewards may be in the form of higher pay, bonus, other monetary incentives, and non-monetary incentives such as a certificate of appreciation, etc.

10. Labour Relations

HRM is also includes industrial relations. It includes union management relations, joint consultations, negotiating, collective bargaining, grievance handling, disciplinary actions, settlement of industrial disputes, etc.

11. Maintenance Function

HRM also performs the maintenance function. That is, protecting and promoting the health and safety of the employees. HRM introduces health and safety measures. It also provides other benefits such as medical aid, provident fund, pension, gratuity, maternity benefits, accident compensation, etc., to the employees.

What Are The Principles Of Human Resources Management?

Anonymous, asked 2/8/2007 Edit Question

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Anonymous, answered 6/10/2011

Human resources management is guided by very important aspects. These aspects are essential for any business to succeed. Principles of Human Resources Management have been well summarized in 10Cs.

Comprehensiveness. This involves the proper management of all aspects of the people you are working with bearing in mind that human resources is the most valuable resource your firm has. This means that the financial, health, transportation, tools and anything employees need to work should be well taken care of.

Cost-effectiveness. Companies should ensure that they remunerate their employees accordingly. The employees reward system should be able to sustain the organization.

Control. Firms should be able to take charge of their employees and ensure that productivity and quality is achieved and maintained. Control should be exercised carefully so that it does not seem like tyranny.

Coherence. All the steps taken by a firm in the management of human resources must be in line with the mission and vision of the firm. Human Resources managers should direct their focus on what the company needs and employee abilities.

Communication is very important in every organization. Through communication, firms can ensure there is flow of information that is necessary for efficiency.

Creativity is key if a firm is to be efficient in human resources management. Firms should

adopt new ways of human resources management as long as it fits their companies.

Competence. It is an organizations responsibility to ensure that their employees are skilled to do their duties. Because the competence of a firm depends on that of its employees, firms should do everything to increase employee capabilities for example, by training them.

Credibility. Firms must ensure that they remain the best brand to most of their clients by maintaining their credibility. They should put in place strategies that ensure all employees have a clear sense of direction to a common goal.

Change is inevitable for businesses. The fastest business to embrace change in management of their human resources is better placed to produce better results.

Commitment. Every organization has objectives which they intend to meet both for themselves and for their clients. To meet these goals, firms need committed staff therefore it is the firms responsibility to keep their employees motivated so as to ensure they are committed to the organizations course.


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Rajesh Shri, answered 2/8/2007

Human resource management (HRM) or management of human capital is extremely important in today's industries. The principles of HRM are the foundations human resource management in any sector and these must be observed. There are basically 10cs in HRM which should be adhered to. These are comprehensiveness, credibility, communication, control, change cost-effectiveness, Competence, creativity, and coherence. For every institution some essential principals should be followed by the human resources department. For example, the selection of employees should be strictly merit based, there

should be no discrimination or favoritism and every employee should be treated fairly and in a consistent manner. Whatever the work be, care must be taken such that the employees are do subjected to unsafe conditions in the workplace. Safety is of utmost importance and it is the legal duty of every employer and specifically the HRM team to ensure the employees with a safe and healthy work environment.


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Anonymous, answered 1/29/2010

Some principles are prescribed below: 1. Treat people with respect and dignity. 2. Treat people with justice. 3. Don;t underestimate potential of any individuals. 4. Make people feel that they are important for the organization. 5. Supply people with all relevant information. 6. Provide employees with opportunities for growth and development. 7. Reward should be earned not given. 8. Deal with people as complete individual. 9. Treat people as adults.

Lesson 1: The Changing HRM Environment

Learning Objectives Reading Assignment Commentary Lesson Review Progress Evaluation

Learning Objectives
After completing this lesson, you should be able to accomplish the following: 1. 2. Describe how changes in the global business environment affect HRM. Summarize the HRM challenges created by changing technology and by workforce changes, including workforce composition, labor supply and demand, skill requirements, contingent workers, and diversity. Describe how HRM can support continuous improvement programs. Explain why ethics is important to HRM and organizations, and describe the features of an effective ethics program.

3. 4.

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Reading Assignment
Fundamentals of Human Resource Management

Chapter 1: "Strategic Implications of a Dynamic HRM Environment," pages 226

Additional Reading

"Differentiation through People: How Can HR Move beyond Business Partner?" by Geoff Armstrong in the ABI/Inform database

Note: The URL above requires you to use your MU PawPrint. If you have difficulties using this proxy server link, please follow the directions from MU Libraries. Return to Top

This lesson summarizes the major forces that are changing the business environment and how business is conducted. Naturally, since this is an HRM course, we will focus on how these changes specifically impact this important business function. Since businesses do not operate in a vacuum, any change in the environment, such as where and by whom work is done, how work is done, who is available to do the work, and expectations about the employer/employee relationship, means that successful businesses will have to adapt. Since people are at the center of business operations and success, effective managers must pay attention to the human resource (i.e., people) issues raised in Chapter 1 in your textbook. In fact, if you scan the articles of any major business publication, such as Fortune, Business Week, or The Wall Street Journal,you will soon appreciate the importance of human resource issues. For example, Fortune magazine uses the following eight criteria to rank America's most admired companies: people management, innovation, quality of management, social responsibility, quality of product/services, use of corporate assets, financial soundness, and long-term investment. At a minimum, the first five criteria

are directly related to companies' HRM philosophies, policies, and practices, and stress the importance of effective people management to corporate reputation. Unfortunately, often businesses ignore important aspects of managing people and are the focus of lawsuits and negative media attention, as evidenced by the following headlines: "Toyota's Sex-harassment Lawsuit Could Set Standard" (O'Donnell and Woodyard 2006), "Former Pfizer Reps Press Age Discrimination Case" (Silverman 2008), and "Did You Hear the Story about Office Gossip?" (Armour 2007). See "References" at the end of this lesson for links to these articles.

Cultural Differences
That businesses are going global is a gross understatement. Businesses that successfully operate in the international arena understand the importance of acknowledging and respecting cultural differences. Your textbook (page 5) mentions the following cultural differences:

status differentiation, societal uncertainty, assertiveness, and individualism.

Scholars have also examined cultural differences that stem from time orientation, future orientation, gender differentiation, uncertainty avoidance, performance orientation, and humane orientation. All of these differences create potential HRM challenges when doing business abroad and when hiring diverse peoples to work in the United States. For instance, Americans tend to view time as a finite resource. We measure productivity and efficiency; we equate time with money; and we focus on saving time. In contrast, other cultures view time as an unlimited resource to be enjoyed and are less concerned about punctuality and speed. Likewise, in some cultures, men and women have more clearly defined gender roles than in the United States. Successful managers and businesses will consider such cultural differences when operating in a different culture.

Technology Traps
As a manager, you will easily see how technology changes the way businesses operate. While technology often improves efficiency, new work methods and tools are not without their downside. For example, sometimes technology sacrifices effectiveness for efficiency. When dealing with complex issues, many customers grow weary of automated phone answering systems and long for human interaction. Automatic teller machines may impersonalize banking transactions to the point that they reduce the association that bonds customers to specific financial institutions. In addition, technological advances often create employee resistance because new technology frequently benefits some employees while leaving others behind. Certainly technology can enhance business dealings; however, technology cannot take the place of good decision making and effective interactions as long as consumers and employees still value personal relationships.

Figure 1.1. A challenge to businesses is how quickly technology changes. The palm-held computer has been replaced by cell phone technology.

Equal versus Equitable

Most of the time managers try to be fair by treating all employees the same way. However, to meet the organization's objectives and to comply with legal standards, sometimes managers need to be sensitive to differences between different groups of workers. For example, in the late 1980s, I worked as an HRM graduate intern with the U.S. Department of Justice, Bureau of Prisons (BOP). At the time, the BOP enforced a policy that required all HR managers to transfer to a different BOP facility within the United States about every three years. While the policy's legitimate purpose was to ensure that employees did not become overly familiar or cozy with a particular set of inmates, I argued at the time that the policy negatively affected female managers more than male managers since women were more likely to transfer for their husband's jobs than vice versa. Not surprisingly, the BOP no longer enforces this requirement. Thus, managers must focus on equity in some situations, which means they must treat all employees fairly and reasonably considering entire circumstances. For example, you would not fire a veteran employee who was late to work one time in a year; however, you might terminate a new employee who was late to work once per week. In contrast, equal treatment means that everyone is treated the same. If a senior vice president and an hourly skilled worker both engage in the same form of sexual harassment, they both must be disciplined equally without regard to status. One of the hardest parts of being a manager is knowing when to be equitable and when to be equal. Only by understanding the total circumstances can you make these difficult decisions.

Mismatched Labor Supply

The simultaneous labor shortage and labor surplus that many companies face is often described as a mismatch between the skills needed by employers and the skills of existing employees and/or job applicants. When current employees lack the skills and/or aptitude to perform a needed function, employers often face the difficult decision to end the employment relationship. A labor shortage in the relevant workforce means the employer will also face recruiting challenges when it attempts to fill positions. Thus, the problem is not that workers are not available; instead, the problem is that workers with the right skills and knowledge are not available. For example, the U.S. manufacturing sector needs more skilled craft persons (e.g., welders, machinists, electricians, etc.) than are generally available; however, unskilled manufacturing workers are readily available and often in surplus supply.

Planning for Push Back

The textbook authors hint at the resistance that employers face when implementing continuous improvement orwork process engineering programs. "Continuous improvement" is an organizational commitment to constantly improving quality of products or services (p. 19). Work process engineering is radical, quantum change in an organization (p. 20). As a new manager, you may think that employees should be eager to help the company succeed. However, you would be partially right and partially wrong. Many employees do understand that their potential for individual success is inherently tied to the company's success. In contrast, though, a significant portion of employees are resistant to change of any type, regardless of the reason. Some employees may be nearing retirement and not want to change the way they work or learn new work methods. Others may benefit from the current system through seniority, salary, or other forms of status. The wise manager anticipates this resistance and develops mechanisms to reduce it. In "Tipping Point Leadership," Kim and Mauborgne (2003) describe the strategies and techniques used by William Bratton, who was appointed the police commissioner of New York City in 1994. Bratton successfully led what could be called a widespread work process engineering campaign to dramatically improve the safety and policing effectiveness of this large city. In less than two years, with no increase in budget, Bratton creatively struck down the typical hurdles that plague change efforts: organizational focus on the status quo, lack of resources, a demotivated staff, and opposition from powerful vested interests. Bratton focused his energies on converting the views of a critical mass of key players instead of trying to gain buy-in from every single police employee; he then relied on these key change agents to silence the opposition. Through his tippingpoint leadership style, Bratton also required employees to personally experience the city's policing problems and to hear from the public regarding its policing priorities as methods to generate agreement about the causes of the problems and the need for change. He concentrated resources on the most important functions with the biggest potential for payoff and conquered political hurdles by carefully selecting his allies and effectively using their support. Because Bratton followed the same change method in several successful transformations of different organizations, this leader demonstrates that organizations can improve their performance by anticipating resistance and responding effectively (Kim and Mauborgne 2003).

Employee Voice and Organizational Commitment

Again, while many employees desire the opportunity for more involvement and input, some employees are perfectly happy just being told what to do and how to do it. As an HR manager involved in the applicant screening process, you will generally want to seek individuals in the former category, not the latter. Employee participation programs rely on the leadership skills and independent thinking of rank-and-file employees along with managers who are willing and able to equip others to succeed. In fact, employee involvement has been positively linked to a concept called organizational commitment. Organizational commitment, is an employees loyalty to an organization including their willingness to go above and beyond the companys minimum expectations. Researchers have found that companies that value employee "voice" through grievance resolution processes, employee involvement programs, and decentralized decision making are more likely to generate organizational commitment. Many believe that employees' organizational commitment is important because it affects overall organizational performance in the forms of reduced absenteeism, willingness to take on extra responsibilities, increased individual performance, lower turnover, and higher levels of job satisfaction (Fiorito et. al 2007).

HRM and Ethics

One researcher found that two-thirds of the ethical issues faced by the managers she interviewed involved human resource issues or internal organizational processes. Moreover, when ethics hotlines are made available for employees to report their concerns and observations, over half of the calls relate to human resource issues, such as abusive behavior, sexual harassment, lying, and conflicts of interest. Finally, for many companies, the greatest legal exposure and the potential to be on the losing end of costly lawsuits come from human resource issues (Trevio and Nelson 2007). I hope you get the point. Companies' ability

to effectively manage their people issues is critical to avoiding litigation and other negative organizational consequences.


With the ongoing changes in Human Resources Management (HRM), its important that managers, executives and HR employees, specifically, be aware of the challenges that todays HRM team may face. While there are certainly other issues, these are common to most any type business or size of company and having policies in place to ensure these challenges are met head-on can make the workplace more settled and peaceful for everyone. 1. Workplace diversity. This may consist of issues involving age, education, ethnicity, gender, income, marital status, physical limitations, religion, sexual orientation, or any number of other things. Understanding the challenges that may be faced by the interaction of any of these diverse groups, as well as the required openness of the company toward such groups, will help HR personnel provide assistance in training employees to work with those they may consider different, accept that such workers may be present in the business, and agree to treat each other respectfully, even if they never come to agree with each other over various issues. 2. Change management. This is another challenge that more and more HR departments are facing. Being able to deal with their own changing roles in corporate society, in addition to the changes to other jobs, the overlapping responsibilities, and more. Understanding that change is required is the first step toward accepting the change. 3. Compensation and benefits. With a slow economy and tightening corporate purse-strings, the issue of compensation and employee benefits is one that almost every business must deal with. The key is to present mandatory changes in such a way that employees can accept, if not necessarily agree with them while providing non-monetary morale boosting incentives whenever possible to make the changes less traumatic. 4. Recruiting skilled employees. In an era of rising unemployment, it would seem that finding qualified workers would be easier than ever. But thats seldom the case. Many industries are facing dire needs for employees with acceptable skills and the required training or degree. This applies not only to health care, but also to technology and other fields as well, causing many employers to search outside their local marketplace for workers who can do the jobs they need filled. 5. Training and development. This is another challenge that HR managers and personnel must deal with more frequently. With the need to cut training costs, training itself often suffers. Yet the skills an employee needs must still be taught. Many companies are meeting this challenge by providing eLearning opportunities that allow employees to receive the training they need without the expenses associated with travel, on-site trainers, hours away from their jobs and high-priced materials. These are only a few of the many challenges an HR department must be prepared to deal with. Knowing in advance what type situation might arise will help you to be better equipped in the event that it does. After all, its always best to hope for the best, but to be prepared for the worst. Just in case.

Ethical Issues in HR

Of all the organisational issues or problems, ethical issues are the most difficult ones to handle or deal with. Issues arise in employment, remuneration and benefits, industrial relations and health and safety.

Diagrammatic representation of HR Ethical Issues

Cash and Compensation Plans

There are ethical issues pertaining to the salaries, executive perquisites and the annual incentive plans etc. The HR manager is often under pressure to raise the band of base salaries. There is increased pressure upon the HR function to pay out more incentives to the top management and the justification for the same is put as the need to retain the latter. Further ethical issues crop in HR when long term compensation and incentive plans are designed in consultation with the CEO or an external consultant. While deciding upon the payout there is pressure on favouring the interests of the top management in comparison to that of other employees and stakeholders.

Race, gender and Disability

In many organisations till recently the employees were differentiated on the basis of their race, gender, origin and their disability. Not anymore ever since the evolution of laws and a regulatory framework that has standardised employee behaviours towards each other. In good organisations the only differentiating factor is performance! In addition the power of filing litigation has made put organisations on the back foot. Managers are trained for aligning behaviour and avoiding discriminatory practices.

Employment Issues
Human resource practitioners face bigger dilemmas in employee hiring. One dilemma stems from the pressure of hiring someone who has been recommended by a friend, someone from your family or a top executive. Yet another dilemma arises when you have already hired someone and he/she is later found to have presented fake documents. Two cases may arise and both are critical. In the first case the person has been trained and the position is critical. In the second case the person has been highly appreciated for his work during his short stint or he/she has a unique blend of skills with the right kind of attitude. Both the situations are sufficiently dilemmatic to leave even a seasoned HR campaigner in a fix.

Privacy Issues
Any person working with any organisation is an individual and has a personal side to his existence which he demands should be respected and not intruded. The employee wants the organisation to protect his/her personal life. This personal life may encompass things like his religious, political and social beliefs etc. However certain situations may arise that mandate snooping behaviours on the part of the employer. For example, mail scanning is one of the activities used to track the activities of an employee who is believed to be engaged in activities that are not in the larger benefit of the organisation. Similarly there are ethical issues in HR that pertain to health and safety, restructuring and layoffs and employee responsibilities. There is still a debate going on whether such activities are ethically permitted or not. Layoffs, for example, are no more considered as unethical as they were thought of in the past.

Strategic human resource planning

From Wikipedia, the free encyclopedia

Human resources planning is a process that identifies current and future human resources needs for an organization to achieve it goals. Human resources planning should serve as a link between human resources management and the overall strategic plan of an organization. Aging worker populations in most western countries and growing demands for qualified workers in developing economies have underscored the importance of effective Human Resources Planning. As defined by Bulla and Scott (1994), 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. Reilly (2003) defined workforce planning as: A process in which an organization attempts to estimate the demand for labour and evaluate the size, nature and sources of supply which will be required to meet the demand. Human resource planning includes creating an employer brand, retention strategy, absence management strategy, flexibility strategy, talent management strategy, recruitment and selection strategy.

Contents [hide]

1 Best practices 2 Implementation stages

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2.1 Stage 1 2.2 Stage 2

3 Overarching policy, process and tools 4 Process implementation stages

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4.1 Stage 1 4.2 Stage 2



The planning processes of most best practice organizations not only define what will be accomplished within a given time-frame, but also the numbers and types of human resources that will be needed to achieve the defined business goals (e.g., number of human resources; the required competencies; when the resources will be needed; etc.). Competency-based management supports the integration of human resources planning with business planning by allowing organizations to assess the current human resource capacity based on their competencies against the capacity needed to achieve the vision, mission and business goals of the organization. Targeted human resource strategies, plans and programs to address gaps (e.g., hiring / staffing; learning; career development; succession management; etc.) are then designed, developed and implemented to close the gaps.

These strategies and programs are monitored and evaluated on a regular basis to ensure that they are moving the organizations in the desired direction, including closing employee competency gaps, and corrections are made as needed. This Strategic HR Planning and evaluation cycle is depicted in the diagram below.


The following implementation stages are suggested for mid to large organizations implementing competencies in support of Strategic Human Resources Planning.

Short - Term HR Planning

Establish a Competency Architecture and Competency Dictionary that will support Strategic Human Resource Planning.

For each group to be profiled, define the roles and career streams to help identify current and future human resources needs.

Determine how competencies will be integrated with the existing HR Planning process and systems (e.g., Human Resource Information Management systems; other computer-based tools, for example forecasting models).


Build or revamp HR Planning tools, templates and processes to incorporate elements as determined in Stage 1.

Train managers and / or facilitate corporate HR Planning process. Contineuously monitor and improve processes, tools and systems to support HR Planning


policy, process and tools

===Human Resouryyce Inf76767 Governance/accountability structure Organizations that have effectively implemented competencies on a corporate-wide basis have ensured that there is an appropriate project management, governance and accountability framework in place to support the development, maintenance and revision/updating of the competency profiles to meet changing demands.

implementation stages

The following implementation stages are suggested for mid to large organizations.


Identify the infrastructure and system requirements to support full implementation (e.g., Human Resources Information Management System; other on-line software tools needed to support various CBM applications).

Develop the competency profiles. Implement the competency profiles in a staged-way to demonstrate benefits and create buy-in (e.g., as soon as profiles for a group are developed, implement quickly within a low-risk high-benefit planned application for the group).

Communicate success stories as competency profiles are implemented. Good for organization.8


Develop, revise/update competency profiles to meet changing demands. Monitor and evaluate applications to ensure that they are meeting organizational needs, and adjust programs/plans, as needed, to meet evolving needs.

Human Resource Planning - HRP

Filed Under Business Strategy

Definition of 'Human Resource Planning - HRP'

The ongoing process of systematic planning to achieve optimum use of an organization's most valuable asset - its human resources. The objective of human resource (HR) planning is to ensure the best fit between employees and jobs, while avoiding manpower shortages or surpluses. The three key elements of the HR planning process are forecasting labor demand, analyzing present labor supply, and balancing projected labor demand and supply.

Investopedia explains 'Human Resource Planning HRP'

The HR plan needs to be flexible enough to meet short-term staffing challenges, while adapting to changing conditions in the business and environment over the longer term. Human resource planning is also a continuous process.

Lesson5.Concept of Human Resources Planning


1 CONCEPT OF HUMAN RESOURCES PLANNING 2 Introduction 3 MAIN CONTENT 4 Self Assessment 5 Focus of Human Resource Planning

5.1 The Process of Human Resource Planning


Dear students, you are welcome to this particular unit Human Resource Planning In this unit we are going to learn about the concept of planning as it applies to Human Resources, we will look at the definition from various authors, and also the focus of Human Resource Planning This course will much more interesting to you if you will get to understand this unit, Give this unit all the attention it deserves.

At the end of this unit, you will be able to do the following

Explain the concept of Human Resource Planning Define Human Resource Planning Identify the focus of Human Resource Planning Analyse the process of Human Resource planning

Human Resource Planning

Effective and efficient managing of staff require a broad process called known as Human Resource Planning. It constitute one of the major strategies to enhance and improve work performances, this it does by removing deficiencies and prevent deficiencies from occurring. Human Resource Planning helps the organization to tap efficiently talents which will help to integrate both the individual and organizational goal. This will consequently minimize some of the problem associated with low productivity absenteeism and labour turn over. These reasons have made Human Resource Planning to become a major objective in organizations. The process of Human Resource Planning include analysis of level of skill in the organization (skill inventory) analysis of current and expected vacancies due to retirement, discharges, transfers, prootions; sick leaves, leaves of absence or other reasons and analysis of current and expected expansions as pointed out by This also indicates that plan has to be made internally by the Human Resources for training and development of present employee, for advertising job opening recruiting and hiring new people. A good Human Resource Planning must respond appropriately to the rapid changing in the society and must go beyond forecasting to all aspect of Personnel Management.

Human Resources Planning is defined as the process of assessing an organizations human resources needs in the light of organizational goals and changing condition and making plans to ensure that a competent, stable workforce is employed. The actual planning process will vary a great deal from organization to organization

However, James Walker pointed out that for some companies, human resources planning is essentially management succession and development planning. For others it is the staffing process which include forecasting and planning for recruitment, deployment, development and attrition of talent in relation to changing needs. Increasingly, however, it is a broader process addressing multiple levels for increasing organization effectiveness on the management of Human Resources.

According to Walker, effective human resources planning is a process of analyzing an organization human resources needs under changing condition and development of the activities necessary to satisfy those needs. Walker sees human resources planning as two step processes, planning as they pertain to all aspects of personnel management. This will include for example planning with respect to desired organizational climate and development of staff reward and appraisal system appropriate to short range and long range organizational goals. This implies that help must be proactive and as well as reactive. Pattern states that Human Resource Planning is the process by which a firm ensures that it has the right number of people and the right kind of people in the right place at the right time doing things for which they economically most useful. Fayana (2002) emphasized that human resource planning deals with the systematic and continuing process of analyzing a firms human resources needs under mutating conditions and developing workforce policies suitable to the long-term effectiveness of the organization. It is a vital part of corporate planning and budgeting procedure since human resources costs and forecasting both effect and are affected by long-term corporate plans.

Self Assessment

Explain the concept of Human Resources Planning. Give two definitions of Human Resources Planning}}

Focus of Human Resource Planning

According to Bramham, Torrington and Hall, the process of matching future organizational requirement with the supply of properly qualified, committed and experience staff in the right place at the right time. These staff can be drawn from both the internal and external labour market This requires a focus on the following:

An assessment of future product market trends and requirement. A specification of the type and numbers of staff required to satisfy these product market trends and requirement.

An estimate of the type and number of staff likely to be employed by the organization in five years. A specification of the number/type of staff to be recruited or made redundant. A development plan for restraining and re-focusing existing staff and, if appropriate, for recruiting additional staff from the external analysis.

A re-examination of broader business strategies in the light of this analysis.

The Process of Human Resource Planning

The process of Human Resource Planning by Michael Armstrong.

In this unit, we discovered the Human Resources Planning is one of the strategies to enhance and improve work performance this it does by removing deficiencies and prevent it from occurring

Human resources planning include analysis of level of skill, current and expected vacancies and also provide plans to take care of the vacancies through training, development and recruiting and hiring new people. The challenging function of Human resources demands matching future organizational requirement with the supply of right kind of staff. This imperatively necessitate that Human Resource to be focused in meeting the requirement of the organization. In the unit we have learnt that Human Resources Planning helps the organization to tap efficiently talents, which will help to integrate both the individual and organizational goal. We also looked at some definitions which include Human resources as the process of assessing an organizations human resources needs in the light of organizational goals and changing condition and making plans to ensure that a competent, stable workforce is employed. The need for focus in Human Resources Planning was exrayed and finally we considered the diagram of the process of Human Resource Planning

Factors affecting Human Resource Planning in an organization

Human resource planning can be defined as the process of identifying the number of people required by an organization in terms of quantity and quality. All human resource management activities start with human resource planning. So we can say that human resource planning is the principle/primary 1. activity of human resource management. :-


HRP is affected by the employment situation in the country i.e. in countries where there is greater unemployment; there may be more pressure on the company, from government to appoint more people. Similarly some company may force shortage of skilled labour and they may have to appoint 2. Technical people changes from in other the society countries. :-

Technology changes at a very fast speed and new people having the required knowledge are required for the company. In some cases, company may retain existing employees and teach them the new technology and in some cases, the company have to remove existing people and appoint new. 3. Organizational changes :-

Changes take place within the organization from time to time i.e. the company diversify into new products or close down business in some areas etc. in such cases the HRP process i.e. appointing or removing people will change according to situation.





Demographic changes refer to things referring to age, population, composition of work force etc. A number of people retire every year. A new batch of graduates with specialization turns out every year. 5. This can change of the appointment due or to the removal labour in the company. :-




Industries having high labour turnover rate, the HRP will change constantly i.e. many new appointments 6. its 7. HRP it will take place. This also affects the way HRP is implemented. :this factor also. :-

Multicultural needs to take into

workforce account groups

Workers from different countries travel to other countries in search of job. When a company plans


Company has to keep in mind certain pleasure. Groups like human rights activist, woman activist, media etc. as they are very capable for creating problems for the company, when issues concerning these groups arise, appointment or retrenchment becomes difficult.

Steps In Human Resource Planning HRP Process

Post : Gaurav Akrani Date : 4/28/2011 02:36:00 PM IST Comment (1) Labels : Management

HRP is done by the HRD manager. He is supported by the HRD department. He takes following Steps in the process of Human Resource Planning HRP.

1. Review of Organisation's Objectives

The HRD Manager first studies the objectives of the organisation. Then he prepares a list of all the activities (jobs) that are required to achieve the objectives. He also does Job's analysis.

Image Credits Christopher Pattberg.

2. Estimation of Manpower Requirements

The HRD manager then estimates the manpower requirement of the organisation. That is, he finds out how many people (manager and employers) will be required to do all the jobs in the organisation. Estimation of manpower requirements must be made in terms of quantity and quality.

3. Estimation of Manpower Supply

The HRD manager then estimates the manpower supply. That is, he finds out how many managers, and employers are available in the organisation.

4. Comparison of Manpower
The HRD manager then compares the manpower requirements and manpower supply.

5. In case of no difference
If there is no difference between the manpower requirements and the manpower supply, then the HRD manager does not take any action. This is because manpower requirements are equal to the manpower supply.

6. In case of difference
If there is a difference between the manpower requirements and the manpower supply the HRD manager takes the following actions.

1. Manpower Surplus
If the manpower requirements are less then the manpower supply then there is a surplus. During manpower surplus, the HRD manager takes the following actions :1. 2. 3. Termination i.e removal of staff. Lay-off. Voluntary retirement.

2. Manpower Shortage
If the manpower requirements are greater than the manpower supply then there is manpower shortage. During manpower shortage, the HRD manager takes the following actions :1. 2. 3. 4. Promotions Overtime Training to improve quality. Hire staff from outside, etc.

7. Motivation of Manpower
HRP also motivates the employers and managers by providing, financial and non-financial incentives.

8. Monitoring Manpower Requirements

The HRD manager must continuously monitor the manpower requirements. This is because many employees and managers leave the organisation by resignation, retirement, etc. and new work force must take their place fill the manpower gap. This helps in uninterruptible functioning of the organisation.

Human Resource Planning (HRP)

Job Analysis - Job Description and Job Specification


Job analysis is primary tool in personnel management. In this method, a personnel manager tries to gather, synthesize and implement the information available regarding the workforce in the concern. A personnel manager has to undertake job analysis so as to put right man on right job. There are two outcomes of job analysis : 1. 2. Job description Job specification

The information collected under job analysis is : 1. 2. 3. 4. 5. 6. Nature of jobs required in a concern. Nature/ size of organizational structure. Type of people required to fit that structure. The relationship of the job with other jobs in the concern. Kind of qualifications and academic background required for jobs. Provision of physical condition to support the activities of the concern. For example- separate cabins for managers, special cabins for the supervisors, healthy condition for workers, adequate store room for store keeper.

Advantages of Job Analysis

1. 2. 3. 4. 5. 6. 7. Job analysis helps the personnel manager at the time of recruitment and selection of right man on right job. It helps him to understand extent and scope of training required in that field. It helps in evaluating the job in which the worth of the job has to be evaluated. In those instances where smooth work force is required in concern. When he has to avoid overlapping of authority- responsibility relationship so that distortion in chain of command doesnt exist. It also helps to chalk out the compensation plans for the employees. It also helps the personnel manager to undertake performance appraisal effectively in a concern.

A personnel manger carries analysis in two ways : a. b. 1. Job description Job specification JOB DESCRIPTION is an organized factual statement of job contents in the form of duties and responsibilities of a specific job. The preparation of job description is very important before a vacancy is advertised. It tells in brief the nature and type of job. This type of document is descriptive in nature and it constitutes all those facts which are related to a job such as :

a. b. c. d. e. f.

Title/ Designation of job and location in the concern. The nature of duties and operations to be performed in that job. The nature of authority- responsibility relationships. Necessary qualifications that are required for job. Relationship of that job with other jobs in a concern. The provision of physical and working condition or the work environment required in performance of that job.

Advantages of Job Description

It helps the supervisors in assigning work to the subordinates so that he can guide and monitor their performances. h. It helps in recruitment and selection procedures. i. It assists in manpower planning. j. It is also helpful in performance appraisal. k. It is helpful in job evaluation in order to decide about rate of remuneration for a specific job. l. It also helps in chalking out training and development programmes. JOB SPECIFICATION is a statement which tells us minimum acceptable human qualities which helps to perform a job. Job specification translates the job description into human qualifications so that a job can be performed in a better manner. Job specification helps in hiring an appropriate person for an appropriate position. The contents are : a. Job title and designation b. Educational qualifications for that title c. Physical and other related attributes d. Physique and mental health e. Special attributes and abilities f. Maturity and dependability g. Relationship of that job with other jobs in a concern. g.


Advantages of Job Specification

h. i. j. k. l. m. It is helpful in preliminary screening in the selection procedure. It helps in giving due justification to each job. It also helps in designing training and development programmes. It helps the supervisors for counseling and monitoring performance of employees. It helps in job evaluation. It helps the management to take decisions regarding promotion, transfers and giving extra benefits to the employees.

From the above advantages, we can justify the importance of job analysis and its related products. Both job description as well as job specification are important for personnel manager in personnel management function. Therefore, job analysis is considered to be the primary tool of personnel management.

From Wikipedia, the free encyclopedia

For other uses, see Recruitment (disambiguation).

This article needs additional citations for verification. Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed. (February 2011)

This article may require cleanup to meet Wikipedia's quality standards. No cleanup reason has been specified. Please help improve this article if you can. (May 2010)

Recruitment refers to the process of attracting, screening, selecting, and onboarding a qualified person for a job. At the strategic level it may involve the development of anemployer brand which includes an 'employee offering'.

The stages of the recruitment process include: job analysis and developing a person specification; the sourcing of candidates by networking, advertising, or other search methods; matching candidates to job requirements and screening individuals using testing (skills or personality assessment); assessment of candidates' motivations and their fit with organisational requirements by interviewing and other assessment techniques. The recruitment process also includes the making and finalising of job offers and the induction and onboarding of new employees.[1] Depending on the size and culture of the organisation recruitment may be undertaken in-house by managers, human resource generalists and / or recruitment specialists. Alternatively parts of all of the process might be undertaken by either public sector employment agencies, or commercial recruitment agencies, or specialist search consultancies.

Contents [hide]

1 Recruitment process

o o o o o

1.1 Job

analysis and selection

1.2 Sourcing 1.3 Screening 1.4 Lateral


1.5 Onboarding

2 Recruitment approaches

2.1 In-house

recruitment referral

o o

2.1.1 Internal recruiters 2.1.2 Employee

2.2 Outsourcing 2.3 Employment

agencies agency recruiters research & resourcing firms

2.3.1 Traditional 2.3.2 Niche

2.4 Executive

search firms ("Headhunters")

2.4.1 Executive

2.5 Internet

recruitment services

3 Talent 4 See

2.5.1 Recruitment websites 2.5.2 Job search engines 2.5.3 Social


Acquisition Companies


5 Recruiting

6 References

[edit]Recruitment [edit]Job



The starting point to a recruitment effort is to perform a job analysis and/or in some cases a task analysis, to document the actual or intended requirements of the job. From these the relevant information is captured in such documents as job descriptions and job specifications. Often a company will already have job descriptions that represent a historical collection of tasks performed. Where already drawn up, these documents need to be reviewed or updated to reflect present day requirements. Prior to initiating the recruitment stages a person specification should be finalised to provide the recruiters commissioned with the requirements and objectives of the project.[1]


Sourcing is the use of one or more strategies to attract or identify candidates to fill job vacancies. It may involve internal and/or external advertising, using appropriate media, such as local or national newspapers, specialist recruitment media, professional publications, window advertisements, job centres, or in a variety of ways via the internet. Alternatively, employers may use recruitment consultancies to find otherwise scarce candidates who may be content in their current positions and are not actively looking to move companies may be proactively identified. This initial research for so-called passive candidates, also called name generation, results in a contact information of potential candidates who can then be contacted discreetly to be screened and approached.[1]

and selection

Suitability for a job is typically assessed by looking for relevant skills, knowledge, aptitude, qualifications and educational or job related experience. These can be determined via: screening rsums (also known as CVs); job applications; interviews. More proactive identification methods include performance assessments, psychological, aptitude,numeracy and literacy testing. Many recruiters and agencies use applicant tracking systems to perform the filtering process, along with software tools for psychometric testingand performance based assessment. [2] Performance based assessment is a process to find out if job applicants can perform the responsibilities for which they are applying.[3] In many countries, employers are legally mandated to ensure their screening and selection processes meet equal opportunity and ethical standards.[1] In addition to the above selection assessment criteria, employers are likely to recognise the value of candidates who also have the so-called 'soft skills', such as interpersonal or team leadership and have the ability to reinforce the company brand through their behaviour in front of customers and suppliers. Multinational organisations and those that recruit from a range of nationalities are also concerned candidates will fit into the prevailing company 'culture'.[4]

A British Army etc. recruitment centre inOxford.



"Lateral hiring" refers to a form of recruiting; the term is used with two different, almost opposite meanings. In one meaning, the hiring organization targets employees of another, similar organization, possibly luring them with a better salary and the promise of better career opportunities. An example is the recruiting of a partner of a law firm by another law firm. The new lateral hire then has specific applicable expertise and can make a running start in the new job. In some professional branches such lateral hiring was traditionally frowned upon, but the practice has become increasingly more common. An employee's contract may have a non-compete clause preventing such lateral hiring. In another meaning, a lateral hire is a newly hired employee who has no prior specific applicable expertise for the new job, and for whom this job move is a radical change of career. An example is the recruiting of a university professor to become chairman of theboard of a company.

For more details on this topic, see onboarding. "Onboarding" is a term which describes the process of helping new employees become productive members of an organization. A well-planned introduction helps new employees become fully operational quickly and is often integrated with a new company and environment. Onboarding is included in the recruitment process for retention purposes. Many companies have onboarding campaigns in hopes to retain top talent that is new to the company; campaigns may last anywhere from 1 week to 6 months.



There are a variety of recruitment approaches and most organisations will utilise a combination of two or more of these as part of a recruitment exercise or to deliver their overall recruitment strategy. In summary five basic models more commonly found are:-

An in-house personnel or human resources function may in some case still conduct all stages of the recruitment process. In the smallest organisations recruitment may be left to individual managers. More frequently whilst managing the overall recruitment exercise and the decision-making at the final stages of the selection process external service providers may undertake the more specialised aspects of the recruitment process.

Outsourcing of recruitment to an external provider may be the solution for some small businesses and at the other extreme very large organisations

Employment agencies are established as both publicly funded services and as commercial private sector operations. Services may support permanent, temporary, or casual worker recruitment. They may be generic agencies that deal with providing unskilled workers through to highly skilled managerial or technical staff or so-called niche agencies that specialize in a particular industrial sector or professional group.

Executive search firms for executive and professional positions. These firms operate across a range of models such as contingency or retained approaches and also hybrid models where advertising is also used to ensure a flow of candidates alongside relying on networking as their main source of candidates.

Internet recruitment services including recruitment websites and job search engines used to gather as many candidates as possible by advertising a position over a wide geographic area. In addition social network sourced recruitment has emerged as a major method of sourcing candidates.



Many employers undertake at least some if not most of their own in-house recruitment, using their human resources department, front-line hiring managers and recruitment personnel who handle targeted functions and populations. In addition to coordinating with the agencies mentioned above, in-house recruiters may advertise job vacancies on their own websites, coordinate internal employee referrals, work with external associations, trade groups and/or focus on campus graduate recruitment. Some large employers choose to outsource all or some of their recruitment process (recruitment process outsourcing) however a much more common approach is for employers to introduce referral schemes where employees are encouraged to source new staff from within their own network.

[edit]Internal recruiters

An internal recruiter (alternatively in-house recruiter or corporate recruiter) is member of a company or organization and typically works in the human resources (HR) department. Internal recruiters may be multi-functional, serving in an HR generalist role or in a specific role focusing all their time on recruiting. Activities vary from firm to firm but may include, screening CVs or rsums, conducting aptitude or psychological testing, interviewing, undertaking reference and background checks, hiring; administeringcontracts, advising candidates on benefits, onboarding new recruits and conducting exit interviews with employees leaving the organisation. They can be permanent employees or hired as contractors for this purpose. Contract recruiters tend to move around between multiple companies, working at each one for a short stint as needed for specific hiring purposes. The responsibility is to filter candidates as per the requirements of each client.
[edit]Employee referral

For more details on this topic, see employee referral. An employee referral program is a system where existing employees recommend prospective candidates for the job offered, and if the suggested candidate is hired, the employee who referred receives a cash bonus.[5] In some cases the organization provides the employee referral bonus only if the referred employee stays with the organization for stipulated time duration (most cases 3 6 months). Referral bonus depends on the grade of the referred employee, higher the grade higher the bonus however the method is not used for senior level hiring.

An external recruitment provider may suit small organisations without the facilities to recruit. In typically the largest organisations a formal contract for services has been negotiated with a specialist recruitment consultancy. These are known in the industry as Recruitment Process Outsourcing. Recruitment process outsourcing may involve strategic consulting for talent acquisition, sourcing for select departments or skills, or total outsourcing of the recruiting function.


For more details on this topic, see employment agencies. Employment agencies operate in both the public and private sectors. Publicly funded services have a long history, often having been introduced to mitigate the impact on unemployment of economic downturns, such as those which form part of the New Deal program in the US, and the Job Centre Plus service in the UK. The commercial recruitment industry is based on the goal of providing a candidate to a client for a price. At one end of the spectrum there are agencies that are paid only if they deliver a candidate that successfully stays with the client beyond the agreed probationary period. On the other end of the spectrum there are

agencies that are paid a retainer to focus on a client's needs and achieve milestones in the search for the right candidate, and then again are paid a percentage of the candidate's salary when a candidate is placed and stays with the organization beyond the probationary period. The agency recruitment industry is highly competitive, therefore agencies have sought out ways to differentiate themselves and add value by focusing on some area of the recruitment life cycle. Though most agencies provide a broader range of service offering, at the two extremes are the traditional providers and the niche operators.
[edit]Traditional agency

Also known as employment agencies, recruitment agencies have historically had a physical location. A candidate visits a local branch for a short interview and an assessment before being taken onto the agencys books. Recruitment consultants then work to match their pool of candidates to their clients' open positions. Suitable candidates are short-listed and put forward for an interview with potential employers on a contract or direct basis.
[edit]Niche recruiters

'Specialized recruiters' exist to seek staff with a very narrow specialty. Because of their focus, these firms can very often produce superior results due to their ability to channel all of their resources into networking for a very specific skill set. This specialization in staffing allows them to offer more jobs for their specific demographic which in turn attracts more specialized candidates from that specific demographic over time building large proprietary databases. These niche firms tend to be more focused on building ongoing relationships with their candidates as is very common the same candidates are placed many times throughout their careers. Online resources have developed to help find niche recruiters.[6] Niche firms also develop knowledge on specific employment trends within their industry of focus (e.g. the energy industry) and are able to identify demographic shifts such as aging and its impact on the industry. [7] Financial arrangements operated by agencies take several forms, the most popular are:

A contingency fee paid by the company when an agency introduced candidate accepts a job with the client company. Typical fees range from 15% to 25% based on the candidates first-year base salary (fees as low as 12.5% can be found online). This type of recruitment usually has a rebate guarantee should the candidate fail to perform or leave within a set period of time (often up to a 3-month period and as much as a 100% rebate).

An advance payment that serves as a retainer, also paid by the company, non-refundable paid in full depending on outcome and success (e.g. 40% up front, 30% in 90 days and the remainder once a search is completed). This form of compensation is generally reserved for high level executive search/headhunters

Hourly charge for temporary workers and projects. A pre-negotiated hourly fee, in which the agency is paid and pays the applicant as a consultant for services as a third party. Many contracts allow a

consultant to transition to a full-time status upon completion of a certain number of hours with or without a conversion fee.

search firms ("Headhunters")

For more details on this topic, see executive search . An executive search firm or "headhunter" are industry terms for a third-party recruiters who seeks out candidates often when normal recruitment efforts have failed. Headhunters are generally considered more aggressive than in-house recruiters or may have pre-existing industry experience and contacts. They may use advanced sales techniques. They may also purchase expensive lists of names and job titles but more often will generate their own lists. They may arrange a meeting or a formal interview between their client and the candidate and will usually prepare the candidate for the interview, help negotiate the salary and conduct closure to the search. They are frequently members in good standing of industry trade groups and associations. Headhunters will often attend trade shows and other meetings nationally or even internationally that may be attended by potential candidates and hiring managers. Headhunters are typically small operations that make high margins on candidate placements (sometimes more than 30% of the candidates annual compensation). Due to their higher costs, headhunters are usually employed to fill senior management and executive level roles. Headhunters are also used to recruit very specialized individuals; for example, in some fields, such as emerging scientific research areas, there may only be a handful of top-level professionals who are active in the field. In this case, since there are so few qualified candidates, it makes more sense to directly recruit them one-by-one, rather than advertise internationally for candidates. While in-house recruiters tend to attract candidates for specific jobs, headhunters will attract both candidates and actively seek them out as well. To do so, they may network, cultivate relationships with various companies, maintain large databases, purchase company directories or candidate lists and cold call prospective recruits. Headhunters are increasingly using social media to find and research candidates. This approach is often called social recruiting.
[edit]Executive research & resourcing firms

These firms are the new hybrid operators in the recruitment world able to combine the research aspects (discovering passive candidates) of recruiting and combine them with the ability to make hires for their clients. These firms provide competitive passive candidate intelligence to support companies' recruiting efforts. Normally they will generate varying degrees of candidate information from those people currently engaged in the position a company is looking to fill. These firms usually charge a daily rate or fixed fee. Executive research can help companies uncover names that cannot be found through traditional recruitment methods and will allow internal recruitment and resourcing managers more time to deal with face to face interviews.


recruitment services

[edit]Recruitment websites

Such sites have two main features: job boards and a rsum/curriculum vitae (CV) database. Job boards allow member companies to post job vacancies. Alternatively, candidates can upload a rsum to be included in searches by member companies. Fees are charged for job postings and access to search resumes. Since the late 1990s, the recruitment website has evolved to encompass end-to-end recruitment. Websites capture candidate details and then pool them in client accessed candidate management interfaces (also online). Key players in this sector provide e-recruitment software and services to organizations of all sizes and within numerous industry sectors, who want to e-enable entirely or partly their recruitment process in order to improve business performance. The online software provided by those who specialize in online recruitment helps organizations attract, test, recruit, employ and retain quality staff with a minimal amount of administration. Online recruitment websites can be very helpful to find candidates that are very actively looking for work and post their resumes online, but they will not attract the "passive" candidates who might respond favorably to an opportunity that is presented to them through other means. Also, some candidates who are actively looking to change jobs are hesitant to put their resumes on the job boards, for fear that their companies, co-workers, customers or others might see their resumes.
[edit]Job search engines

The emergence of meta-search engines allows job-seekers to search across multiple websites. Some of these new search engines index and list the advertisements of traditional job boards. These sites tend to aim for providing a "one-stop shop" for job-seekers. However, there are many other job search engines which index solely from employers' websites, choosing to bypass traditional job boards entirely. These vertical search engines allow job-seekers to find new positions that may not be advertised on traditional job boards, and online recruitment websites.
[edit]Social recruiting

For more details on this topic, see Social recruiting. Social recruiting is the use of social media for recruiting including sites like Facebook, Twitter, and LinkedIn.[8][9]


Talent acquisition is the targeted recruitment/acquisition of high performing teams for example; in sales management or financial traders into a company from a competitor or similar type of organisation. Organisations requiring external recruitment or head-hunting firms are now employing "talent acquisition" specialists whose job it is to identify, approach and recruit top performing teams from competitors. This role is a highly specialised role akin to that of a traditional recruiter/headhunter specialist but carrying greater visibility and strategic importance to a business. In many cases the talent acquisition person is linked

directly to a company's executive management, given the potential positive impact a company can benefit from by getting high performing sales people into the business, whilst removing the same performing sales people from competitors.