Lecture 3 HR Planning&Recruitment

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    Chapter 3

    HR Planning and Recruitment

    By

    Dr. Nazrul Islam

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    HR Planning and

    Recruitment What is HR Planning?

    Organizational Life-Cycle and HR Activities

    Recruitment definition

    Sources of Recruitment

    Advantages and Disadvantages of different

    sources

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    WHAT IS HUMAN RESOURCE PLANNING?

    Human Resource Planning is the process by which organizations

    anticipate future staffing needs and plan programs to ensure that the

    correct numberand type of employeesare available when they are needed.

    Foresight is necessary to ensure the availability of qualified employees.

    The tighter the labor market, the more forward planning is required to

    avoid future problems.

    HRP is concerned with the flow of people into, through, and out of an

    organization.

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    Organizational Life-Cycle Stages and HR

    ActivitiesLIFE-CYCLESTAGE

    STAFFING COMPENSATION

    TRAININGAND

    DEVELOPMENT

    LABOR /EMPLOYEERELATIONS

    Introduc

    tion

    Attract best technical and

    professional talent.

    Meet or exceed

    labor market ratesto attract neededtalent.

    Define future

    skillrequirementsand beginestablishingcareer ladders.

    Set basic

    employee-relationsphilosophy oforganization.

    Growth Recruit adequate numbersand mix of qualified workers.

    Plan management succession. Manage rapid internal labormarket movements

    Meet externalmarket but consider

    internal equity(kindness) effects.

    Establish formalcompensationstructures.

    Mold effectivemanagement

    team throughmanagementandorganizationaldevelopment.

    Maintainlabor peace,

    employeemotivation,and morale.

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    Organizational Life-Cycle Stages and HRActivities (contd)

    LIFE-CYCLESTAGE

    STAFFING COMPENSATION

    TRAINING ANDDEVELOPMENT

    LABOR /EMPLOYEERELATIONS

    Maturity

    Encourage sufficientturnover to minimizelayoffs and provide new

    openings. Encourage mobility asreorganizations shift

    jobs around.

    Controlcompensationcosts.

    Maintain skills ofan agingworkforce.

    Control labor costsand maintain laborpeace.

    Improveproductivity.

    Decline Plan and implementworkforce reductionsand reallocations,downsizing andoutplacement mayoccur during this stage.

    Implementtighter costcontrol.

    Implementretraining andcareer consultingservices.

    Improveproductivity andachieve flexibility inwork rules.

    Negotiate jobsecurity andemployment-adjustment policies

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    Steps involved in

    Manpower planning process

    Step1 :job Analysis / job design - Mgt must define whatwork to be performed , how tasks to be carried out and

    allocated into manageable work units (jobs)

    Step 2 :job description & job specificationrefers to incumbent where a job specification with regard to

    qualification and experience needed to perform a job

    Step 3 : forecasting procedures:

    Corporate planner has to forecast the number of people

    needed for a particular job can be done by forecasting

    the internal supply and external supply of the people

    who can perform the job.

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    Step 4 : Internal Supply of Manpower Six methods can be used to forecast the future human resource

    needs viz : The Nominal Group Technique

    Planning for the status quo (Status quo, literally "the statein which", is a Latin term meaning the current or existingstate of affairs)

    Thumb rules Unit forecasting The Delphi Method Scenarios Computer Simulation

    Steps involved inManpower planning process

    http://en.wikipedia.org/wiki/List_of_Latin_phraseshttp://en.wikipedia.org/wiki/List_of_Latin_phraseshttp://en.wikipedia.org/wiki/List_of_Latin_phrases
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    The Nominal Group TechniqueA small group of 4-5 people gathers around a table. Leader

    identifies judgment issue and gives participants procedural

    instructions.

    Participants write down all ideas that occur to them, keeping

    their lists private at this point. Creativity is encouraged during

    this phase.

    Leader asks each participant to present ideas and writes them

    on a blackboard, continuing until all ideas have been recorded.

    Participants discuss each others ideas, clarifying, expanding,

    and evaluating them as a group.

    Participants rank ideas privately in their own personal order and

    preference.

    The idea that ranks highest among the participants is adopted

    as the groups judgment.

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    Planning for the status quo Planning involves steps to replace any

    employees who are either promoted or who

    leave the firm.An example is Management successionplanning which seeks to ensure that there isat least one qualified manager to replace any

    higher level manager in the organization

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    Thumb rules This is on the basis of firms beliefs with regard to

    forecasting Human resource needs

    For example, one firm believes that a ratio of oneproduction supervisor for every 12 producers(Workmen) is optimal . This firm maintains this 1:12ratio because it has proved successful in the past.

    Another thumb rule is based on past experience thatone person can produce 2000 units of output perday and accordingly 5 employees needed for 10,000units as a matter of forecast

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    Unit forecasting This refers to the estimate of supervisors

    and managers with regard to forecasting

    Human resource needs for the next yearunit wise this approach is called as

    Bottom up approach to forecasting asthe judgment are made by lower level

    management and added together at ahigher level of the organization.

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    The Delphi Method This method relies on Expert opinion in

    making long range forecasts this involves

    obtaining independent judgments from apanel of experts usually through aquestionnaire or interview schedule oncertain issue affecting the nature and

    magnitude of demand for an organizationsproducts and services

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    The Delphi TechniqueLeader identifies judgment issues and develops questionnaire.

    Prospective participants are identified and asked to cooperate.

    Leaders send questionnaire to willing participants, who record

    their judgments and recommendations and return the

    questionnaire.

    Leaders compiles summaries and reproduces participantsresponses.

    Leader sends the compiled list of judgment to all participants.

    Participants comment on each others ideas and propose a final

    judgment.

    Leader looks

    for consensus

    Leader accepts consensus judgment as groups choice.

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    Scenario These are all descriptive scenes allowing planners to

    consider several factors in combination to forecasthuman resource needs for each set of circumstances

    For example, one scenario might assume

    environmental conditions in the next of three yearsto include a recession, the entrance of a newcompetitor in to a companys major market, andtechnological advances requiring some modificationsin the production. Using this method, forecasts could

    be made for meeting human resource needs of eachset of circumstances as portrayed in the separatescenarios this is useful in making mid - to longrange forecasts of Human resource needs

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    Computer Simulation

    This is one of the most sophisticated methodsof forecasting human resource needs Acomputer is a mathematical representation of

    major organizational processes, policies andhuman resource movement throughorganization computer simulations areuseful in forecasting for human resources by

    pinpointing any combination of organizationaland environmental variables.

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    Demand for Manpower

    Market Demand Assess Manpower Supply Labour Market

    Corporate

    objectives

    ExistingPotential

    Manpower Estimate

    Recruitment

    Plans

    Training PlansPromotion

    Success Plan

    Pay productivity

    Plans

    Retirement

    Redundant plans

    Periodic reviews

    Process flowchart depicting forecast on manpower planning

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    Determining the Relationship BetweenHospital Size and Number of Nurses

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    Recruitment Defined

    Recruitment

    The process of generating a pool of

    qualified applicants for organizationaljobs. Recruiting brings together thosewith jobs to fill and those seeking jobs.

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    Recruiting Goals To provide information that will attract

    a significant pool of qualified

    candidates and discourage unqualifiedones from applying.

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    Recruiting Goals

    Factors that affect recruiting efforts

    Organizational size

    Employment conditions in the area Working conditions, salary and

    benefits offered

    Organizational growth or decline

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    Recruiting Goals

    Constraints on recruiting efforts Organization image

    Job attractiveness Internal organizational policies

    Government influence, such asdiscrimination laws

    Recruiting costs

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    Recruiting: A GlobalPerspective

    Host-country nat ionals(HCNs) aretargeted as recruits when companies wanteach foreign subsidiary to have its owndistinct national identity.

    In some countries, laws control how manyexpatriates a corporation can send.

    HCNs minimize potential problems withlanguage, family adjustment and hostilepolitical environments.

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    Recruiting: A GlobalPerspective

    Recruiting regardless of

    nationality may develop an

    executive cadre with a trulyglobal perspective.

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    Recruiting Sources

    Internal Searches

    Job Posting and Rehiring Former Employees

    Employee Referrals/ Recommendations

    External Searches

    Alternatives

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    Advantages and Disadvantages ofInternal Searches

    Advantages

    Foreknowledge (priorknowledge) of candidatesstrengths and weaknesses

    More accurate view ofcandidates skills

    Candidates have astronger commitment tothe company

    Increases employeemorale

    Less training andorientation required

    Disadvantages

    Failed applicants becomediscontented/dissatisfied

    Time wasted interviewinginside candidates who willnot be considered

    Inbreeding (in front) ofthe status quo (statusbecomes very important

    to the incumbent).

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    Recruiting Sources

    Employee referrals/recommendations

    Current employees can be asked to recommend recruits.

    Advantagesinclude: the employees motivation to make a good

    recommendation

    the availability of accurate job information for the

    recruit Employee referrals tend to be more acceptable

    applicants, to be more likely to accept an offer and to

    have a higher survival rate.

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    Recruiting Sources

    Employee referrals/recommendations

    Disadvantagesinclude:

    the possibility of friendship beingconfused with job performance

    the potential for nepotism

    the potential for adverse impact

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    External Recruiting Sources

    Employment Agenciesand Search Firms

    College andUniversityRecruiting

    High Schools andTechnical Schools

    LaborUnions

    External

    Recruiting

    Sources

    Media Sourcesand Job Fairs

    CompetitiveSources/Competitors

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    Recruiting Sources

    External searches

    Schoo ls, co l leges, and

    universi t ies:

    May provide entry-level or

    experienced workers through

    their placement services. May also help companies

    establish cooperative education

    assignments and internships.

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    Recruiting SourcesExternal searches

    Unsol ic i ted app l icants (Walk- ins ):May provide a stockpile of prospective

    applicants if there are no currentopenings.

    Cyberspace Recrui t ing: Nearly fourout of five companies use the Internet

    to recruit employees. Commercial job-posting services continue to grow.

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    External Recruiting Sources (contd)

    Advertising

    The Media: selection of the best medium depends on thepositions for which the firm is recruiting.

    Newspapers (local and specific labor markets)

    Trade and professional journals

    Internet job sites

    Constructing an effective ad

    Wording related to job interest factors should evoke (induce)

    the applicants attention, interest, desire, and action (AIDA)and create a positive impression of the firm.

    AIDA: attention, interest, desire, and action

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    What to Include in an EffectiveRecruiting Ad

    Information on

    the Job and

    Process ofApplication

    Job title and responsibilities

    Location of job

    Starting pay range

    Closing date for application

    Whether or not to submit a resume and cover letter

    Where to mail application or resume

    CandidatesDesired

    Qualifications

    Years of experience

    Three to five key characteristics of successful candidates

    Information on

    the Organization

    What type of organization?

    Is it its primary business?

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    Recruiting Sources: External

    Emp loyment agenc ies:

    Management consulting, executivesearch or headhunter firms specialize inexecutive placement and hard-to-fillpositions.

    Have nationwide contacts

    Do thorough investigations of candidates

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    Recruiting Sources

    External searches

    Unsol ic i ted app l icants (Walk- ins ):May provide a stockpile of prospectiveapplicants if there are no currentopenings.

    Cyberspace Recrui t ing: Nearly fourout of five companies use the Internetto recruit employees. Commercial job-

    posting services continue to grow.

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    Recruiting SourcesRecruitment alternatives

    Tempo rary help services.

    Temporary employeeshelp organizations meet

    short-term fluctuations in HRM needs. Older workers can also provide high quality

    temporary help.

    Emp loyee leasing.

    Trained workers are employed by a leasingcompany, which provides them to employers whenneeded for a flat fee.

    Typically remain with an organization for longerperiods of time.

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    Recruiting Sources

    Recruitment alternatives

    Independent contractors

    Do specific work either on or off the

    companys premises.

    Costs of regular employees (i.e. taxes

    and benefits costs) are not incurred.

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    Meeting the Organization

    View getting a job as your job at the moment.

    Preparing Your Resume

    Use quality paper and easy to read type. Proofread carefully.

    Include volunteer experience.

    Use typical job description phraseology.

    Use a cover letter to highlight your greatest

    strengths.

    Dont forget about networking as an excellent

    way of gaining access to an organization.