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Human Resource Management
Course No. MBA 609
Part-2 HR Planning
Atanu Gupta
Adjunct Faculty
MBA program, East Delta University
Contents
The Recruitment and Selection Process Steps in Recruitment and Selection Process Planning and Forecasting The Planning Process Forecasting Personnel Needs Human Resource Information System (HRIS) Importance of HRP Factors affecting HRP Requisites for successful HRP
After studying this chapter,
you should be able to….• Explain the main techniques used in employment planning and forecasting.
• List and discuss the main outside sources of candidates.
• Effectively recruit job candidates.
• Name and describe the main internal sources of candidates.
• Develop a help wanted ad.
• Explain how to recruit a more diverse workforce.
The Recruitment and Selection Process
• Decide what positions you’ll have to fill through personnel planning and forecasting.
• Build a pool of candidates for these jobs by recruiting internal or external candidates.
• Have candidates complete application forms and perhaps undergo an initial screening interview.
• Use selection techniques like tests, background investigations, and physical exams to identify viable candidates.
• Decide who to make an offer to, by having the supervisor and perhaps others on the team interview the candidates.
Steps in Recruitment and Selection Process
The recruitment and selection process is a series of hurdles aimed at selecting the best candidate for the job.
Planning and Forecasting
Employment or personnel planning The process of deciding what positions the
firm will have to fill, and how to fill them. Is the process of fore casting a firms future
demand for, and supply of, the right type of people in the right number.
Succession planning The process of deciding how to fill the
company’s most important executive jobs.
What to forecast?
Overall personnel needs.
The supply of inside candidates
The supply of outside candidates
The Planning Process
Environment
Organizational objectives & Policies
HR need Forecast HR supply Forecast
SurplusRestricted Hiring, lay off etc
HR Programming
HRP Implementation
Control & Evaluation
ShortageRecruitment, selection etc
Forecasting Personnel Needs Trend analysis
This is the quickest forecasting technique. The study of a firm’s past employment needs over
a period of years to predict future needs. Studying the variations in your firm’s
employment levels over the last few years. For example you might compute the number
of employees in your firm at the end of each of the last five years or perhaps the number of each subgroup like sales, production, administrative etc.
Forecasting Personnel Needs
Ratio analysis A forecasting technique for determining future
staff needs by using ratios between a causal factor(like sales volume) and the number of employees needed(number of sales people).
For example suppose a sales person traditionally generates $500,000 in sales. If the sales revenue to salespeople ratio remains the same,you would require six new sales person next year(each of whom produces an extra $500,000) to produce a hoped for extra $3 million in sales.
The Scatter Plot Scatter plot
A graphical method used to help identify the relationship between two variables.
Size of Hospital Number of (Number of Beds) Registered Nurses
200 240
300 260
400 470
500 500
600 620
700 660
800 820
900 860
Forecasting the Supply of Inside Candidates
Qualifications or Skill inventories Skill Inventories consolidate information about
non-managers in an organization. Because the information from skills inventories is used as input into transfer and promotion decisions. Information Includes:
1. Personal Data: Age, Sex, Marital Status2. Skills: Education, Training, Job Experience3. Special Qualifications: Membership in professional bodies.
Manual Systems and Replacement Charts
Personnel replacement charts Company records showing present
performance and promo ability of inside candidates for the most important positions.
Position replacement card A card prepared for each position in a
company to show possible replacement candidates and their qualifications.
Computerized Information Systems
Human Resource Information System (HRIS) Computerized inventory of information that
can be accessed to determine employees’ background, experience, and skills that may include: Work experience codes Product or service knowledge Industry experience Formal education
Forecasting the Supply of Outside Candidates
Factors impacting the supply of outside candidates General economic conditions Expected unemployment rate
Sources of information Periodic forecasts in business publications Online economic projections
Bureau of Labor Statistics Other agencies
Importance of HRP Future personnel needs Part of strategic planning Creating highly talented personnel International strategies Foundation of personnel functions Increasing investments in human
resources Resistance to change and move Unite the perspectives of line and staff
managers
Factors affecting HRP
Type and Strategy of organization Organizational growth cycles and
planning Environmental uncertainties Time horizons Type and quality of information Nature of jobs being filled Outsourcing
Requisites for successful HRP HRP must be recognized as an integral part of corporate
planning. The planner of human resources must therefore,
be aware of the corporate objectives.
Backing of top management for HRP is absolutely essential
Personnel records must be complete, up to date and readily
available.
Data collection, analysis, techniques of planning and the
plans themselves need to be constantly revised and
improved in the light of experience.
