Human Resource Management

HR Planning & Recruitment

Spring Semester 2014

LEARNING OUTCOMES
1. Introduction to the recruitment & selection process 2. Explain the main techniques used in employment planning and forecasting. 3. Explain and give examples for the need for effective recruiting. 4. Name and describe the main internal sources of candidates. 5. List and discuss the main outside sources of candidates.

BUT First A word about Assessment #1

You are required to attend one webinar on any HRM related topic Listen to the webinar, participate (if its live) and summarize your learning according to the following criteria: WHAT SO WHAT NOW WHAT Write concisely and professionally. Maximum 600 words. Should cover all the major aspects of the webinar Attach the link to the webinar attended. Also attach any additional information provided by webinar hosts (slides, white papers, etc) if any. Submission date: Last class, Week 5

Some resources could be

http://webcasts.astd.org/events http://hbr.org/multimedia/webinars http://www.bizlibrary.com/news-andevents/webinars.aspx http://www.sumtotalsystems.com/ https://www.worldatwork.org/conference/ html/webinar.jsp http://www.i4cp.com/company/events Plus many more options available through web search

HRP is the process through which organisational goals are translated into HR goals concerning staffing levels and allocation. Involves forecasting HR needs for an organisation and planning the necessary steps to meet these needs. From these HR goals an integrated set of policies and programs are developed. Is directly linked to strategic business planning.

Ensures the organisation will fulfil its future business plans in terms of financial objectives, output goals, technologies and resource requirements.

Human Resource Planning (HRP)

Six steps of effective HRP

environmental scanningidentify and anticipate sources of threats and opportunities, scanning the external environment (competitors, regulation) and internal environment ( strategy, technology, culture) labor analysisproject how business needs will affect HR needs, using qualitative methods (e.g., Delphi, nominal) and quantitative methods (trend analysis, simple and multiple linear regression analysis) supply analysisproject resource availability from internal and external sources gap analysisreconcile the forecast of labor supply and demand action programmingimplement the recommended solution from the gap analysis evaluationmonitor the effects of the HRP by defining and measuring critical criteria (e.g., turnover costs, break-even costs of new hires)

Linking Employers Strategy to Plans

Employment or Personnel Planning

Planning and Forecasting

The process of deciding what positions the firm will have to fill, and how to fill them.

Succession Planning
The process of deciding how to fill the companys most important executive jobs.

What to Forecast?
Overall personnel needs The supply of inside candidates The supply of outside candidates

HRP asks the following questions:

What are the strategic drivers impacting on the business over the next 5-10 years? What are the requirements to meet the Business Plan? What work needs to be done to achieve these outcomes? What organisational structure would best meet this need? What are the high level capabilities required to successfully do the work?

HRP asks the following questions:

How can these capabilities be acquired and/or developed in the workforce in the short, medium and long term? How can these requirements be best met with current financial resources? What are the capabilities of the current workforce? Are they near retirement or going on leave? What are the consequences of not engaging in workforce planning to meet future strategic directions?

Forecasting Personnel Needs

Forecasting Tools

Trend analysis

Ratio analysis

Scatter plotting

Copyright 2011 Pearson Education

5 13

Stage 1 - Involves the analysis of environmental factors, organisational direction, internal workforce and external workforce.

A Simplistic Example

Hospital Size (Number of Beds) 200 300 400 500 600 700 800 900

Number of Registered Nurses 240 260 470 500 620 660 820 860

Note: After fitting the line, you can project how many employees are needed, given your projected volume.

Copyright 2011 Pearson Education

5 15

Stage 2 - Forecasting is the method used to determine the supply and demand of human resources to predict areas within the organisation where there will be future labour shortages or surpluses. Forecasting involves statistical and/or judgmental methods. Supply forecasts are used to predict worker flows and availabilities. Methods used include: Methods used include: Personnel Ratios succession or replacement managerial estimates charts sales predictions skills inventories labour market analysis simulations/modelling Markov or transition projected turnover
matrices these describe the probabilities of moving from one state to another in a dynamic system

FIGURE 54

Management Replacement Chart Showing Development Needs of Potential Future Divisional Vice Presidents

Copyright 2011 Pearson Education

5 18

Skills Inventory

www.expertsmind.com

The purpose of setting goals is to focus attention on any problems and address these. Goals should include specifics about what should happen with a job category or skill area and the timetable for when goals should be achieved.

Options for reducing a labour surplus include: Downsizing Pay reductions Demotions Transfers Work sharing Retirement Natural attrition Retraining