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Employee
Recruitment
LEARNING OUTCOMES
By the end of this topic, you should be able to:
1.
2.
3.
4.
INTRODUCTION
Organisations compete with one another based on the skills and abilities of their
manpower. Therefore, manpower or human resource planning becomes very
important so that present and future employees will be a competitive workforce.
Organisations need to be careful when recruiting, selecting, developing and
maintaining their employees. To fulfil the requirements when performing human
resource management functions, effective human resource planning must be
carried out.
In this topic, we will discuss two processes of human resource management,
namely, human resource planning and recruitment. Human resource planning is
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the basis for staffing in an organisation, whereas recruitment initiates the action
process in fulfilling whatever has been planned by the organisation.
4.1
4.1.1
(a)
Recruitment
Changes in the employee environment and composition require the
manager to be more involved in human resource planning. The manager
must plan a more effective recruitment method so that the aim to hire
capable employees will be achieved.
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(b)
(c)
(d)
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SELF-CHECK 4.1
Through human resource planning, an organisation plans its
employees movement into, within and out of the organisation. If you
have your own company, will human resource planning be important
to your organisation? Explain.
4.1.2
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Figure 4.2: Relationship between human resource planning and strategic planning
(a)
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Figure 4.3: The relationship between the human resource planning process and the
strategic planning process
ACTIVITY 4.1
Based on Figure 4.3, between strategic planning and human
resource planning, which should come first? Discuss with your
coursemates.
(b)
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(i)
(ii)
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(c)
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Human resource planning policies and practices must achieve two types of
adaptation, i.e. external adaptability and internal adaptability.
(i)
(ii)
(ii)
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EXERCISE 4.1
TRUE (T) or FALSE (F) Statements
1.
2.
3.
4.
5.
4.1.3
Through human resource planning, an organisation can forecast and prepare for
human movement into, within and out of the organisation. Therefore, the steps
involved in human resource planning are:
Environmental scanning;
(a)
Environmental Scanning
Environmental scanning systematically detects the external forces that
influence the organisation. The external forces or factors often scanned are:
(i)
(ii)
Competitive
innovations.
trends,
including
processes,
services
and
new
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(i)
Quantitative Approach
Quantitative approach involves the use of statistical and mathematical
techniques. This approach is often used by professional planners. One
of the examples of the quantitative method is trend analysis.
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Year
Business Factors
(Sales in RM
000)
Labour
Productivity
(Sales/
Employees)
Human
Resource Needs
(Number of
Employees)
1995
2351
14.33
164
1996
2613
11.12
235
1997
2935
08.34
352
1998
3306
10.02
330
1999
3613
11.12
325
2000
3748
11.12
337
2001
3880
12.52
310
2002*
4095
12.52
327
2003*
4283
12.52
342
2004*
4446
12.52
355
* forecasted
figures
Source: Adapted from Bohlander, Snell & Sherman. (2009). Managing human
resources (15th ed.). Ohio: South-western College Publishing
In Table 4.1, the business factor that is taken into account in predicting
human resource needs is the total annual sales for each year. Labour
productivity is obtained by calculating the average number of sales of
an employee in the financial year. The total number of employees can
be predicted by dividing the value of business factor with labour
productivity.
Apart from total sales, other business factors that can be used to
predict human resource needs are interest rates, Gross National
Income and income expenditure.
Other quantitative methods that can be used to predict human
resource needs are regression analysis, ratio analysis and timeline
analysis.
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ACTIVITY 4.2
Refer to Table 4.1. If the sales result in 2005 was RM4,546,000 and
the labour productivity maintained as in 2004, what would be the
human resource needs in 2005?
(ii)
Qualitative Approach
A qualitative approach does not involve much statistics but takes into
consideration employees' interests, abilities and aspirations in
fulfilling future staffing requirements. In this method, the human
resource manager predicts employee needs through considerations.
Among the qualitative methods often used are management
forecasting and the Delphi Technique.
ACTIVITY 4.3
Look at the human resource planning in your workplace. Are the
management predictions and Delphi Technique used? If yes, give
an example on how the planning is implemented.
(c)
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There are various methods to detect and predict the total number of
internal employees. Among these methods are:
(i)
Staffing Schedule
A staffing schedule gives a graphic display on all jobs in an
organisation, including existing number of employees involved in the
jobs. It also contains employees' needs for the future.
(ii)
Markov Analysis
This analysis detects the pattern of employee movement through
various types of jobs. It shows the percentage and actual figure of
employees who still remain in a particular job, and employees who
are promoted, demoted, transferred or removed from the
organisation. Through the Markov Analysis, an employee movement
matrix can be developed and the supply of internal human resources
can be predicted. For example, refer to Table 4.2.
Table 4.2: Example of the Use of Markov Analysis to Predict Internal Human Resource
Supply
Year
2002
Categories
and job levels
A1
A2
B1
B2
Categories
and job levels
Year
A1
2002
A2
B1
B2
Predicted supply
A1
A2
B1
B2
Out
.60
.05
.05
.00
.10
.60
.00
.00
.20
.00
.60
.00
.00
.00
.05
.80
.10
.35
.30
.20
Out
10
7
60
3
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from the total number of employees that are maintained in level A1 divided
by the total number of employees in that level from the previous year.
Then, the total number of promotions to A2 in the current year is divided
by the total number of employees in level A1 from the previous year. The
same goes for the total number of employees that have moved to B1,
promoted to B2, and was removed from the organisation. The total of all
percentages must add up to 1 (or 100%). For example, at level A1= 0.60 +
0.10 + 0.20 + 0.00 + 0.10 = 1.00.
In part b (predicting supply), in the year 2002, the total number of salespeople
(A1) is 100. It is expected that in 2003, 60 people will remain as salespeople (A1),
10 people will be promoted to sales manager (A2), 20 people will be moved to
the position of customer service agent (B1), there will not be any promotion to
customer service manager (B2), and 10 people will be removed from the
company. In the year 2003, the company is expected to supply 71 salespeople, 22
sales managers, 140 customer service agents and 22 customer service managers.
ACTIVITY 4.4
Refer to Table 4.2. Say in 2002, the number of customer service
agents (B1) was 280. How many of them would be promoted to
customer service managers?
(i)
Skill Inventory
Skill inventory consists of employees personal files that contain
information on education, experience, interests, skills and others. Skill
inventory enables the manager to promptly match the suitable
positions with employees backgrounds.
(ii)
Replacement Chart
A replacement chart consists of a list of current position holders, and
those who have the probability to replace a position, should the
position be vacant. This chart gives information on the employees or
the managers current performance and the probability of a
promotion.
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There are a few external factors that influence the labour market. Among
them are demographic changes, economy, manpower level of education,
requirements for certain skills, population movement and government
policies. The unemployment rate at the national and state levels often
becomes the benchmark to detect the labour force or employee supply.
(d)
(ii)
SELF-CHECK 4.2
Based on the human resource planning definition in subtopic 4.1
and your experiences in the workplace, what are the steps involved
in human resource planning?
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EXERCISE 4.2
TRUE (T) or FALSE (F) Statements
4.2
1.
2.
3.
4.
5.
RECRUITMENT
In the recruitment process, effort is put into informing applicants about the
qualification requirements in performing a job, as well as job opportunities that
are offered by an organisation to its workers.
Recruitment that will be made, whether internally or externally, depends on the
supply of existing personnel, the organisations human resource policy and
important matters involved in a particular job.
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4.2.1
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Internal Recruitment
Internal candidates who are most qualified have to be identified so that no issues
will arise regarding regulations and laws, and that the organisations needs and
employees aspirations can be fulfilled.
The effectiveness of internal sources can be further strengthened by giving the
opportunity to employees who feel that they are qualified to apply for the
position offered. Internal candidates who are suitable can be detected through
the human resource information system and job posting and bidding.
(a)
(b)
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(ii)
The performance records of employees who are offered a new job are
more reliable when compared to that of a new employee who is hired
from outside the organisation.
(ii)
(iii) It is difficult for the organisation to encourage free flow of new ideas
among existing employees, as well as tackle their existing negative
attitudes.
(iv) The organisation has to face the risk of employee cloning, i.e.
employees who maintain repetitive work behaviour and attitude.
4.2.2
External Recruitment
There are many sources and places where an organisation can recruit employees
from the outside. However, the source of recruiting professional and skilful
employees such as accountants is not the same as the source of recruiting skilled
employees such as a flour mixer operator in a bread factory.
Among the sources of external recruitment are:
(a)
Advertising
Advertising is the most popular source of attracting applicants. The
advertising mediums that are often used by organisations are newspapers,
radio and television commercials, posters, billboards and business journals.
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Internal Application
Organisations often receive applications from internal candidates without
having to advertise. However, the percentage of internal applicants is low.
Even though the percentage is low, organisations cannot ignore self
applicants as they might prove to be good employees at a later date.
(c)
Proposed by Staff
Existing staff can suggest candidates who are qualified. Organisations may
encourage them to continue the effort of searching for the right candidate
by giving a bonus for each successful employment. The risk of this sort of
employment is nepotism, which is the tendency to propose ones own
family member.
(d)
(e)
(f)
Professional Organisations
Usually, professional organisations help its members get jobs as this is one
of the benefits of joining such organisations.
(g)
(h)
(i)
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(j)
Employee Leasing
In employee leasing, an employee who has been retrenched or dismissed by
an organisation is hired by another company that offers employee leasing
services to interested companies.
(k)
Internet Recruitment
The Internet is a source of recruitment that is increasingly popular.
Applicants can surf websites to register online.
(l)
Employees Union
The employees union is a good source to obtain employees for certain
positions in the supporting level.
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(b)
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(b)
External recruitment is done for the purpose of injecting new influence into
an organisation so that the existing work culture can be stimulated.
ACTIVITY 4.5
From research, it is found that employees hired through referrals and
self applications stay on longer in an organisation and show better
performance compared to employees hired through normal methods,
such as advertising. Based on your work experience, do you agree?
Discuss.
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EXERCISE 4.3
TRUE (T) or FALSE (F) Statements
1.
2.
3.
4.
5.
2.
3.
(c)
4.
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2.
3.
4.
Essay Question
1.
qualitative
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90
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External recruitment
Internal recruitment
Strategic planning