5-1McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All Rights Reserved.

fundamentals of

Human Resource Management 4th editionby R.A. Noe, J.R. Hollenbeck, B. Gerhart, and P.M. Wright

Planning for and Recruiting Human Resources

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Definition

• The human resource planning process identifies organizational goals and matches them with the competencies employees need to achieve those goals.• Human resource planning serves as a link

between human resource management and the overall strategic plan of an organization.

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Definition -2

• A plan is made to either develop necessary competencies from within the organization or hire new people who already have them.

• The plans and strategies for fulfilling human resource needs are continually evaluated and improved, and the acquired resources are continuously developed.

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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.

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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.

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Type and features

• Types of HR Planning:–Long-term plan: 5 years and

above–Mid-term plan: 2 to 4 years–Short-term plan: 1 year

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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.

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The Process of Human Resource Planning

• Organizations should carry out human resource planning so as to meet business objectives and gain a competitive advantage over competitors.– Human resource planning compares the present

state of the organization with its goals for the future

– Then identifies what changes it must make in its human resources to meet those goals

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Forecasting

• Forecasting: attempts to determine the supply and demand for various types of human resources to predict areas within the organization where there will be labor shortages or surpluses.

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Major steps to forecasting

1.Forecasting the demand for labor

2.Determining labor supply

3.Determining labor surplus or shortage

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Forecasting the Demand for Labor

Trend Analysis• Constructing and

applying statistical models that predict labor demand for the next year, given relatively objective statistics from the previous year.

Leading Indicators• Objective measures

that accurately predict future labor demand.

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Determining Labor Supply

• Transitional matrix: a chart that lists job categories held in one period and shows the proportion of employees in each of those job categories in a future period.

It answers two questions:

1. “Where did people in each job category go?”

2. “Where did people now in each job category come from?

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Determining Labor Surplus or Shortage

• Based on the forecasts for labor demand and supply, the planner can compare the figures to determine whether there will be a shortage or surplus of labor for each job category.

• Determining expected shortages and surpluses allows the organization to plan how to address these challenges.

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Action Plans-for shortage

• 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.

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Action Plans—for surplus

• 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.

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Goal Setting and Strategic Planning

• The purpose of setting specific numerical goals is to focus attention on the problem and provide a basis for measuring the organization’s success in addressing labor shortages and surpluses.

• The goals should come directly from the analysis of supply and demand.

• For each goal, the organization must choose one or more human resource strategies.

• Organizations should retain and attract employees who provide a core competency (what makes it better than competitors)

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Implementing and Evaluating the HR Plan

• When implementing the HR strategy, the organization must hold some individual accountable for achieving the goals.

• That person must also have the authority and resources needed to accomplish those goals.

• Regular progress reports should be issued.• The evaluation of results should not only look at the

actual numbers, but should also identify which parts of the planning process contributed to success or failure.

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Applying HR Planning to Affirmative Action

• Workforce Utilization Review: a comparison of employees in protected groups with the proportion that each group represents in the relevant labor market.

• The steps in a workforce utilization review are identical to the steps in the HR planning process.

• The organization must assess current utilization patterns, then forecast how they are likely to change in the near future.

• If the analyses forecast underutilization of certain groups, then goals and a plan will be established.

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Recruiting

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)

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Personnel Job selection

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 personnel a job

selection:Ability Needs Interest Personality

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Procedures of recruiting

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.

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Recruitment Sources: Internal Sources

• Job Posting: the process of communicating information about a job vacancy:–On company bulletin boards–In employee publications–On corporate intranets–Anywhere else the organization

communicates with employees

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Recruitment Sources: External Sources

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Summary

• The first step in human resource planning is personnel forecasting. Through trend analysis and good judgment, the planner tries to determine the supply and demand for various human resources.

• The next step is to determine the labor demand for workers in various job categories. Analysis of a transitional matrix can help the planner identify which job categories can be filled internally and where high turnover is likely.