HUMAN RESOURCES PLANNING, RECRUITMENT AND SELECTIONTHE PROCEDURES

AND ACTUAL FLOW

Discussant/Reporter:

Marie TanDM 212 and ME 212

"Human resources" (HR) is a term that is used in business to refer to the people who work for a company or organization. It also is used to refer to the department of a company that is responsible for managing those resources, such as hiring and training new employees and overseeing the benefits and compensation packages provided to all of the company's employees.

MAnaging People

The people who make up a company's workforce — its human resources — are considered to be an asset to the company, just like its financial resources and material resources, such as buildings, machinery and other equipment. A company is more likely to be successful if it manages all of its resources well, including its people.

Current Employees

One of the main roles of an HR department is managing current employees.

Prospective and New Employees

Human resources also involves the acquisition of new employees.

Outgoing Employees

A company's HR department also plays a role when an employee leaves the company for any reason. If an employee is fired or otherwise let go against his or her wishes, certain tasks must be performed by the HR department to ensure that the process was done legally.

Improving Morale

Employee morale is another concern for many human resources departments. The HR department often is concerned with creating a positive, enjoyable work environment. This can improve employees' production and contribute to a lower rate of turnover among the company's workforce.

Human resource planning refers to the planning of human resource functions, or in other words, planning how human resource management will be executed.

-(from Wikipedia) - is a process that identifies current and future human resources needs for an organization to achieve it goals. Human resources planning should serve as a link between human resources management and the overall strategic plan of an organization.

- also refers to classic HR administrative functions, and the evaluation and identification of human resources requirements for meeting organizational goals. It also requires an assessment of the availability of the qualified resources that will be needed.

To ensure their competitive advantage in the marketplace and anticipate staffing needs, organizations must implement innovative strategies that are designed to enhance their employee retention rate and recruit fresh talent into their companies. Human resources planning is one way to help a company develop strategies and predict company needs in order to keep their competitive edge.

Ex. Landbank’s Vision : “Landbank shall be the dominant financial institution in countryside development, committed to the highest standards of ethics and excellence in the service of the Filipino people

Landbank’s Goal: To improve the lives of all its stakeholders and to work with them to lead the country to economic prosperity.

Our institution suggests that HR management includes the following:

counseling

Recognizing achievement

empowering

communicating

evaluating

Laying off

dismissing

So, in effect HR planning refers to the development of plans in these areas or in similar areas.

So, in effect HR planning refers to the development of plans in these areas or in similar areas.

Develop Strategies

Effective human resources planning strategies are those that include having sufficient staff, with the right mixture of talent, who are in the appropriate locations, performing their jobs when needed.

These strategies and programs are monitored and evaluated on a regular basis to ensure that they are moving the organizations in the desired direction, including closing employee competency gaps, and corrections are made as needed.

Implementation stagesThe following implementation stages are suggested for mid to large organizations implementing competencies in support of Strategic Human Resources Planning.Stage 1 Short - Term HR Planning

Establish a Competency Architecture and Competency Dictionary that will support Strategic Human Resource Planning. For each group to be profiled, define the roles and career streams to help identify current and future human resources needs.

Determine how competencies will be integrated with the existing HR Planning process and systems (e.g., Human Resource Information Management systems; other computer-based tools, for example forecasting models). Stage 2Build or revamp HR Planning tools, templates and processes to incorporate elements as determined in Stage 1.Train managers and / or facilitate corporate HR Planning process.Continuously monitor and improve processes, tools and systems to support HR Planning

EXAMPLE. In uncertain business settings, the significance of strategic human resources planning can become obvious very quickly. A company that reacts to circumstances by cutting staff as a measure to reduce short-term overhead can create unwanted repercussions. What initially looked like a smart and necessary move to economize in lean times can end up costing the company much more in the long-run. The resources that will be needed to subsequently recruit, hire, and train new employees may well exceed any short-term cost savings

Forward-looking human resources planning typically anticipates future staffing requirements. It can help organizations avoid cost errors. Strategies are formulated to not only anticipate their needs over time, but to consider optimal solutions for the long-term and under challenging economic conditions. This approach minimizes the chance of short-sighted and reactive choices being implemented by decision-makersAdvantages and Disadvantages Linking human resources policies, systems, and processes with a company’s overall strategic planning and practices can have immediate advantages. Recruit and hire in the future.

Along with providing the company a road map for forecasting their staffing demand, effective human resources planning documents the talents and skills of the people who are in place. It also considers what current skill set and abilities are required to meet future needs and any new capabilities and talents the company may need to recruit and hire in the future.

Effective and worth-while human resources planning takes time, dedication, and organization. One disadvantage may be that if HR planning has not occurred regularly within a corporation, it may seem overwhelming to begin. Once regular planning takes place, it is necessary that items are updated and recorded to keep information current and organized.

HUMAN RESOURCES PLANNING PROCESS

1.FORECASTING- HR manager attempts to ascertain the supply of and demand for various types of human resources.-On both the supply and demand sides, can use either Statistical Methods or Judgmental Methods.STATISTICAL METHODS-are excellent for capturing historic trends in a company’s demand for labor, and under the right conditions, they give predictions that are much more precise than those that could be achieved through Subjective Judgments of a human forecaster.

2. GOAL SETTING AND STRATEGIC PLANNING- purpose of setting specific quantitative goals is to focus attention on the problem and provide a benchmark for determining the relative success of any programs aimed at redressing a pending labor shortage or surplus.

The goal should come directly from the analysis of labor supply and demand and should include a specific figure for what should happen with the job category or skill area and a specific timetable for when results should be achieved.

Once these goals are established, the firm needs to choose from the many different strategies available for redressing labor shortages and surpluses.

1.DOWNSIZING – planned elimination of large numbers of personnel designed to enhance organizational effectiveness.

2.EARLY RETIREMENT PROGRAMS AND BUYOUTS

Another popular means of reducing a labor surplus is to offer an early retirement program. In the face of demographic pressures, many employers try to induce voluntary attrition among their older workers through early retirement incentive programs.

3. EMPLOYING TEMPORARY WORKERS

Hiring temporary workers and outsourcing has been the most widespread means of eliminating a labor shortage. Temporary employment affords firms the flexibility needed to operate efficiently in the face of swings in the demand for goods and services. In fact a surge in temporary employment often precedes hiring and is often a leading indicator that the economy is expanding.

ADVANTAGES:A) The use of temporary workers frees the firm

from many administrative tasks and financial burdens.

B. Small companies that cannot afford their own testing programs often get employees who have been tested by a temporary agency.

C. Many temporary agencies train employees before sending them to employers, which reduces training costs and eases the transition for both the temporary worker and the company.

D. Because the temporary worker has little experience in the host firm, he brings an objective perspective to the organization’s problems and procedures that is sometimes valuable. Also, since the temporary worker may have a great deal of experiences in other firms, he can sometimes identify solutions to the host organization’s problems that were confronted at a different firm. Thus temporary employees can help employers to benchmark and improve their practices.

ADVANTAGES:

DISADVANTAGES:

Temporary employees often spills over and reduces the level of customer loyalty.

4. OUTSOURCING AND OFFSHORING Whereas a temporary employee can be brought in to

manage a single job, in other cases a firm may be interested in getting a much broader set of services performed by an outside organization and this is called OUTSOURCING. Outsourcing is a logical choice when a firm simply does not have certain expertise and is not willing to invest time and effort into developing it.

OFFSHORING is a special case of outsourcing where the jobs that move actually leave one country and go to another. Rather than treating off sourced work as just a cost-containment strategy, firms are increasingly looking for “Transformational Offshoring” which promotes growth and opens up avenues of new revenues.

5. ALTERING PAY AND HOURS

1.Firms may have the option of trying to garner more hours out of the existing labor force. However, over extended periods, employees experience stress and frustration from being overworked in this manner.

6. PROGRAM IMPLEMENTATION AND EVALUATION

The programs developed in the strategic choice stage are put into practice in the Program Implementation stage

A critical aspect of Program Implementation is to make sure that some individual is held accountable for achieving the stated goals and has the necessary authority and resources to accomplish this goal. It is also important to have regular progress reports on the implementation to be sure that all programs are in place by specified times and that the early returns from these programs are in line with projections.

The final step in the Planning Process is to EVALUATE THE RESULTS. The most obvious evaluation involves checking whether the company has successfully avoided any potential labor shortages or surpluses.

Hiring Once a position opening occurs (i.e., position is vacated or newly created), the recruiting procedures must be performed in the order presented. In addition to these procedures, area vice presidents may have special expectations and internal guidelines for hiring in their own areas. The Recruitment and Selection Procedure therefore shall be looked into by both the Recruiters and the Applicants as will be discussed in the following.

Recruitment is the process of identifying that the organization needs to employ someone up to the point at which application forms for the post have arrived at the organization. The advantages of internal recruitment are that:1. Considerable savings can be made. Individuals with inside knowledge of how a business operates will need shorter periods of training and time for 'fitting in'.2. The organization is unlikely to be greatly 'disrupted' by someone who is used to working with others in the organization.3. Internal promotion acts as an incentive to all staff to work harder within the organization.

check to employing an outsider who may only be a success 'on paper'.

The disadvantages of recruiting from within are that:

1. You will have to replace the person who has been promoted2. An insider may be less likely to make the essential criticisms required to get the company working more effectively3. Promotion of one person in a company may upset someone else. External recruitment makes it possible to draw upon a wider range of talent, and provides the opportunity to bring new experience and ideas in to the business.

Disadvantages: It is more costly and the company may end up with someone who proves to be less effective in practice than they did on paper and in the interview situation.

There are a number of stages, which can be used to define and set out the nature of particular jobs for recruitment purposes:

1. Job analysis is the process of examining jobs in order to identify the key requirements of each job. A number of important questions need to be explored:

•the title of the job

•to whom the employee is responsible

•for whom the employee is responsible

2. A job description could be used as a job indicator for applicants for a job. Alternatively, it could be used as a guideline for an employee and/or his or her line manager as to his or her role and responsibility within the organization.

3. A job specification goes beyond a mere description - in addition, it highlights the mental and physical attributes required of the job holder.

AREAS OF RECRUITMENT

I. PERSONNEL POLICIES Personnel Policies is a generic term which refers to organizational decisions that affect the nature of the vacancies for which people are recruited. 1. INTERNAL vs. EXTERNAL RECRUITING-pertains to Recruitment Sources and Job Security2.EXTRINSIC AND INTRINSIC REWARDS-pertains to a policy of paying higher than current market wages3.IMAGE ADVERTISING-companies advertise to promote themselves and to bring to public knowledge specific vacancies within the firm.

II. RECRUITMENT SOURCES-either internal or external source Methods:1.Electronic Recruiting-Internet2.Public and Private Employment Agencies3. Colleges and Universities

It is generally a good idea for employers to monitor the quality of all their recruitment sources through:1. Yield Ratios which express the percentage of applicants who successfully move from one stage of the recruitment and selection process to the next. Comparing yield ratios for different sources helps determine which is best or most efficient for the type of vacancy being investigated. 2.Data on cost per hire are also useful in establishing efficiency of a given source.

I. RECRUITER1. RECRUITER’S FUNCTIONAL AREA

a. Specialists in Human Resourcesb. Experts at Particular Jobs

2. RECRUITER’S TRAITSa. WARMTH-reflects the degree to which the potential

recruiter seems to care about the applicant and is enthusiastic about her potential to contribute to the company.

b. INFORMATIVENESS-provides a ready orientation about the company and jobs being offered.

3. RECRUITER’S REALISM

Because the recruiter’s job is to attract candidates, there is some pressure to exaggerate the positive features of the vacancy while downplaying the negative features. Applicants are highly sensitive to negative information. On the other hand, if the recruiter goes too far in a positive direction, the candidate can be misled and lured into taking the job under false pretenses. This can lead to serious case of UNMET EXPECTATIONS and a HIGH TURNOVER RATE.

4. ENHANCING RECRUITER IMPACT4.1. Recruiters can provide timely feedback.

Applicants react very negatively to delays in feedback, often making unwarranted attributions for the delays such as lack of interest in the applicant.4.2. Recruiting can be done in teams rather than by individuals.

Applicants tend to view line personnel (incumbents and supervisors) as more credible than personnel specialists so these kinds of recruiters should be part of any team.

Reference:

LBP Human Resources materials