Human Resource Management

At PAF-KIET (City Campus) Chapter No. 5 by Khurram Khan

Staffing It the process of - Recruitment + Selection + Retaining - Good Quantity + Good Quality of People - to make Organization Effective.

Personnel Planning & Recruitment

Personnel/HR Planning It is Planning out the .. HR Activities Talent Management Succession Planning - What to fill and how to fill? (Internal /External ?) - Covering all future positions (from Clerk to CEO) - Often called Succession Planning (Important Positions)

Personnel Planning & Recruitment

Personnel/HR Planning

Personnel Planning & Recruitment

Forecasting: (1 year , 2 years, 3 years) Three things to be considered: 1. Personnel Needs, 2. Supply of Inside Candidates, 3. Supply of Outside Candidates,

Forecasting Personnel Requirements

1. Personnel Needs: - Trend Analysis: Historic Personnel trends to predict firms future needs - Identify trend that might continue into future - It provides initial estimation (Not accurate) - Change in sales volume and productivity levels

Forecasting Personnel Requirements

- Ratio Analysis Using the Ratio b/w some Factors (Sales) and Employees needs 1 Sales person generates $500,000 sales 6 Sales persons generates $ 3 million sales - Linear prediction of future, w/o considering Efficiency

Forecasting Personnel Requirements

Scatter Plot A graphical method used to help identify the relationship between two variables. Relation b/w 2 variables (business activity & No . of staff ) e.g. Hospital Bed & Nurses
Number of Registered Nurses 240 260 470 500 620 660 820 860

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

Drawbacks to Scatter Plots

1.

Based on projections and historical relationships, assume firms structure and activities will be same in the future. Does not consider companys strategic initiatives impact on staffing levels. Does not uncover managers who expand their staffs irrespective of strategic needs. Based on nonproductive idea that increases in staffs are inevitable. It support existing planning processes irrespective rapid change.

2.

3.

4.

5.

Forecasting Personnel Requirements

- Using Computers Company Use Software to determine the future staff need by projecting its.. - Sales - Volume of Production - Maintaining Volume of Output

2. Supply of inside Candidates

-Are currently employees suitable for the opening position? -Sometimes it is obvious, but not always. -Qualifications Inventory It contains employees: - Performance, - Education, - Career - Development Records -Manual Systems and Replacement Chart Personnel replacement charts - For Top positions - Show performance & Promotability Positional replacement cards - Show each position as card - Gives possible replacement of position

Management Replacement Chart Showing Development Needs of Future Divisional Vice President

Internal Sources of Candidates: Hiring from Within

Advantages Foreknowledge of candidates strengths and weaknesses Familiar with the company may increase selection accuracy More accurate view of candidates skills Candidates have a stronger commitment to the company Increases employee motivation/morale to perform well Quick and low cost of hiring employee Less training and orientation required Disadvantages Employee may not be prepared. Failed applicants become discontented May create Ripple Effect of generating other vacancies. Time wasted interviewing inside candidates who will not be considered Company may hire same corrupt people. Inbreeding of the status quo No new Blood, No new Energy No New Ideas

3. Supply of Outside Candidates

If company unable to find suitable inside candidates, then seek outside candidates to fill the positions, for that they do .. -Forecast by looking at -Economic Conditions - GDP - Business Week -Unexpected Unemployment Rate - Lower Unemployment Rate Difficult to find outside Candidate

Dealing with Imbalances

When Demand is High & Supply is Low Transfer and Retain Promotion from with-in Overtime Subcontracting Hire Part-time and Temporary workers Recruit form outside When Supply is High & Demand is Low Reduce Work hours. Work sharing Voluntary retirement. Inducement to Quit Pay Freeze or cut . Layoffs

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.

Personnel Planning & Recruitment - Recruiting/Hiring

It is the process of Discovering/ Searching/ Attracting potential job candidates.

Main objective is to develop a pool of suitable candidates. Deter unsuitable candidates from applying Create a positive image of the company

Factors affecting Recruiting efforts

Organizational Size Employment conditions in the area Working conditions, salary and benefits offered Organizational Growth

Recruitment Sources
Internal Job Posting (Internal)
Publicizing an open job to employees (often by literally posting it on bulletin boards) and listing its attributes.

Employee Referrals
Employees referring other employees for internal job posting.

Inside Moonlighting (Additional workload +Pay)

Employees been assign additional work with benefits of getting additional pay.

Succession Planning / Promotions

The process of ensuring a suitable supply of successors for current and future senior or key jobs.

Steps for Succession Planning

1. Identifying and analyzing key jobs. 2. Creating and assessing candidates. 3. Selecting those who will fill the key positions.

Recruitment Sources
External Advertisements : Newspapers Walk-ins i.e. without invitation Head Hunters/Employment Agencies Public: HRS Global, Private: Overseas Employment, Non-Profit: IEEE Societies

Special Events : Job Fairs On Campus /College Recruiting Internships Online/Cyber Outsourcesing

Outside Sources of Candidates

Advertising The Media: selection of the best medium depends on the positions for which the firm is recruiting. Newspapers (local and specific labor markets) Trade and professional journals Internet job sites Marketing programs

Constructing an effective ad Wording related to job interest factors should evoke the applicants attention, interest, desire, and action (AIDA) and create a positive impression of the firm.

Outside Sources of Candidates (contd)

Reasons for using a private employment agency: Firm doesnt have an HR department Not geared to doing recruiting and screening. Find it difficult to generate qualified pool of applicants. Need to fill a particular opening quickly. Need to attract a greater number of minority or female applicants. To reach employed individuals, comfortable dealing with agencies than with competing companies. To cut down time devoting to recruiting.

Outside Sources of Candidates (contd)

Avoiding problems with employment agencies: Give the agency an accurate and complete job description. Make sure tests, application blanks, and interviews are part of the agencys selection process. Periodically review data on candidates accepted or rejected by your firm, and by the agency. Check on the effectiveness and fairness of the agencys screening process. Screen the agency. Check with other managers or HR people to find out which agencies have been the most effective at filling the sorts of positions needed to be filled. Review the Internet and a few back issues of the Sunday classified ads to discover the agencies that handle the positions to be filled.

3. Supply of Outside Candidates,

Measuring Recruiting Effectiveness

What to measure and how to measure How many qualified applicants were attracted from each recruitment source? Assessing both the quantity and the quality of the applicants produced by a source. High performance recruiting Applying best-practices management techniques to recruiting. Using a benchmarks-oriented approach to analyzing and measuring the effectiveness of recruiting efforts such as employee referrals.

Temp Agencies and Alternative Staffing

Benefits of Temps Paid only when working More productive No recruitment, screening, and payroll administration costs

Costs of Temps Fees paid to temp agencies Lack of commitment to firm

End of Chapter 5