22/09/2013 
Human Resource Management 
HR Planning & Recruitment 

Fall Semester 2013 
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. 
LEARNING OUTCOMES 22/09/2013 
 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. 

 22/09/2013 
Human Resource Planning (HRP) 
 Six steps of effective HRP 
◦ environmental scanning—identify and anticipate sources of 
threats and opportunities, scanning the external environment 
(competitors, regulation) and internal environment ( strategy, 
technology, culture) 
◦ labor analysis—project 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 analysis—project resource availability from internal and 
external sources 
◦ gap analysis—reconcile the forecast of labor supply and demand 
◦ action programming—implement the recommended solution from 
the gap analysis 
◦ evaluation—monitor the effects of the HRP by defining and 
measuring critical criteria (e.g., turnover costs, break-even costs 
of new hires) 
  Linking Employer’s Strategy to Plans 22/09/2013 
Planning and Forecasting 
 Employment or Personnel Planning 
◦ 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 
company’s 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?  

 22/09/2013 
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? 

 22/09/2013 
Forecasting Personnel Needs 
Copyright © 2011 Pearson Education 
5–
11 
Trend analysis  Ratio analysis 
Forecasting Tools 
Scatter plotting 
 Stage  1  -  Involves  the  analysis  of  environmental  factors, 
organisational direction,  internal workforce  and   external 
workforce. 



 22/09/2013 
Copyright © 2011 Pearson Education 
5–
13 
  A Simplistic Example 
Note: After fitting the line, 
you can project how many 
employees are needed, 
given your projected volume. 
Hospital Size 
(Number  
of Beds) 
Number of 
Registered 
Nurses  
200  240 
300  260 
400  470 
500  500 
600  620 
700  660 
800  820 
900  860 
 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:  
 succession or replacement 
charts  
 skills inventories  
 labour market analysis  
 Markov  or  transition 
matrices  –  these  describe 
the  probabilities  of 
moving  from  one  state  to 
another  in  a  dynamic 
system 

 Methods used include:  
 Personnel Ratios 
 managerial estimates 
 sales predictions 
 simulations/modelling 
 projected turnover 22/09/2013 
Copyright © 2011 Pearson Education 
5–
16 
FIGURE 5–4  Management Replacement Chart Showing Development 
Needs of Potential Future Divisional Vice Presidents 22/09/2013 
Skills Inventory 
www.expertsmind.com  22/09/2013 
10 
 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  

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