Chapter 4 Planning and Recruiting 1. Human Resource Planning 2. Recruiting Personnel Planning and Recruiting Behavioral Objectives When you finish studying this chapter, you should be able to: Explain the process of forecasting personnel requirements. Discuss the pros and cons of eight methods uses for recruiting job candidates. Describe how to develop an application form. Explain how to use application forms to predict job performance. Chapter Outline The Recruitment and Selection Process Employment Planning and Forecasting Recruiting Job Candidates Developing and Using Application Forms Key words trend analysis Study of a firm’s past employment needs over a period of years to predict future needs. ratio analysis A forecasting technique for determining future staff needs by using ratios between sales volume and number of employees needed. Key words scatter plot A graphical method used to help identify the relationship between two variables. computerized forecast The determination of future staff needs by projecting a firm’s sales, volume of production, and personnel required to maintain this volume of output, using computers and software packages. Key words qualifications inventories Manual or computerized systematic records listing employees’ education, career and development interests, languages, special skills, and so on to be used in forecasting inside candidates for promotion. Personnel replacement charts Company records showing present performance and promotability of inside candidates for the most important positions. Key words position replacement card A card prepared for each position in a company to show possible replacement candidates and their qualifications. job posting Publicizing an open job to employees (often by literally posting it on bulletin boards) and listing its attributes, like qualifications, supervisor, working schedule and pay rate. Key words occupational market conditions The Bureau of labor Statistics of the U.S. Department of Labor publishes projections of labor supply and demand for various occupations, as do other agencies. application form The form that provides information on education, prior work record, and skills. 1. Human resource planning (1) Importance of HR planning (2) Internal Needs Predictions (3) Internal Supply Analysis (4) External Sources of Supply (5) Action Plans (1) Importance of HR Planning A. Definition: Hr planning is to make predictions of future needs of the organization according to the organization goals and develop action plans for meeting the needs in the future. HR Planning is part of the organization’s strategic planning. B. Objectives: To ensure the attainment of organization goals. Meeting future HR needs—critical to success. To improve the efficiency of human resources. Rational use of people—recruitment and development. To motivate employees. Meeting the needs of self-actualization-training and development. C. Type and features Types of HR Planning: – Long-term plan: 5years and above. – Mid-term plan: 2 to 4 years. – Short-term plan: 1 year. Features of HR planning: – Consistency: consistent to organization goals. – Continuity: between long-term, mid-term and short-term. – Flexibility: adapting according to change. – Accuracy: be as close as possible to reality. (2) Internal Needs Predictions A. What to predict Quantity of employees needed in the future. How many people do we need? Quality of employees needed in the future. What will be the requirement of people? Skill variety and managerial development. What kind of skills and managerial expertise do we need? B. Methods of internal prediction Bottom-up To make predictions of future needs through the hierarchical structure of the organization. Trend Analysis/Ration Analysis: To study a factor that affects employment over time and make prediction on that basis. Multiple Factor Analysis: To study a number of factors that affect HR changes in the organization in the past 5 to 10years. (3) Internal Supply Analysis Personnel files: Personnel files are records of the employees’ education, training, performance, promotion, etc. Job posting: publicize the open job to employees and list its attributes like qualifications, working schedule and pay rate. Succession planning: To identify candidates for managerial positions. (4) External Sources of Supply A. Labor market. B. Employment service agencies. C. Schools and colleges. D. Referrals and walk-ins. E. Internet. F. Head-hunting companies. (5) Action Plans-for shortage (A) Overtime: for cyclical or short-term needs. Job rotation: balance needs of different sectors and develop managerial talents. Training and development: for long-term needs. Reemployment: employ retired employees or extend their time of services. Recruiting temporary workers: for seasonal jobs. External recruitment: for needs that cannot be satisfied internally. (5) Action Plans—for surplus (B) Job rotation: to move surplus labor internally. Off-job training: to prepare for future needs. Expand production: to make use of surplus workforce. Reduce working time/job sharing; to improve quality of work life. Layoff: to ask employees to leave temporarily. Early retirement: to allow employees retire earlier. Vocational training: to prepare employees for new jobs. (5) Action Plans—factors to be considered (C) In developing action plans, we need to consider the following factors: Organization goals and social commitment. Employee motivation and loyalty. Cost and benefits. 2. Recruiting (1) Objectives and goals (2) Personal job selection (3) Occupational theories (4) Procedures of recruiting (5) Methods of recruiting (1)Objectives and goals A. What is recruiting: recruiting is to build an applicants’ pool for future needs. B. Importance of recruiting: Meeting organization goals. Meeting employee expectations (internal recruiting) Creating a good image of the organization (external recruiting) (2) Personal job selection A. Two selection areas: Occupation: What kind of a job I want to choose? Organization: What kind of organization I want to work in? B. Factors affecting personal a job selection: Ability Needs Interest Personality (4) Procedures of recruiting A. Develop recruiting plans and standards. Recruiting plans: what kind of workers and how many? Standards: basic requirement for the job posted. B. Conduct advertising and promoting: Advertising: let the public know your needs. Promoting: let the public know your image. C. Conduct recruiting. D. Evaluate the results of recruiting: cost/benefits. (5) Methods of recruiting A. Internal recruiting: Job posting on billboard or company magazines. Grape-line or informal communication. B. External recruiting: Labor market. Employment service agencies. Schools and colleges. Referrals and walk-ins. Recruiting on Internet. Head-hunting companies.