Chapter 4 - The Acquisition of Human Resource
Chapter 4 - The Acquisition of Human Resource
Chapter 4 - The Acquisition of Human Resource
Human Resource(Human
Resource Planning, Recruitment
&Selection)
Outline
1. Human Resource Planning (HRP)
2. Recruitment and Selection
3. Placement, induction and socialization
Outline
1. Human Resource Planning (HRP)
• What is Human Resource Planning?
• Concepts behind HRP
• Drivers for and importance of HRP
• Steps in HRP
• Methods of forecasting HR requirements
What is Human Resource
Planning?-Defining HRP
HRP Defined
• It is a specific area of management planning (dealing with people
aspect of an organization)
The process by which managers ensure that they have the right number
and kinds of people in the right places, and at the right times, who are
capable of effectively and efficiently performing assigned tasks.
These include
• The economic concept of demand and supply
• The ‘right’ principles in procurement/purchasing
• The concept of (strategic) planning
Concepts behind HRP
Concept Description Implications for HRP
Demand and -Estimates the size and -Considers human resources as
supply nature of demand for a acquirable/procurable resource
(Economics) commodity -Estimates demand for human resources
-Inventories existing and -Inventories existing human resources,
potential supply of the forecasts supply in the labor market
commodity -Makes adjustment to maintain optimal
-Matches the two matching between the two
Adjustment Decisions
• If a worker shortage is forecast, the firm must obtain the proper quantity &
quality of workers from outside the organization.
• In this case, external recruitment & selection are required.
HR planning
Y intercept=
• ii) Exponential Smoothing method
• Forecasts are modified in light of observed error, as in the following equation
=> Ft+1= Ft + ( Actual –Forecast)
3. For the data given in Qn1, set n equal to 4 and develop forecasts for the period
5 to 12 using the (Simple) moving averages method. Besides, develop forecast for
the period 4 to 12 using the 3 year weighted moving average method with weight
of 5,3,2 from recent to old)
1. Trend Projection
T Y TY T2
0 12 0 0
1 13 13 1
2 12.5 25 4 b=1158.8- (12X5.5X16.18)
506 - (12X5.5X5.5)
3 15 45 9 b= 90.92 =0.636
4 18.2 72.8 16 143
5 16.7 83.5 25
6 17.5 105 36
7 15.8 110.6 49
8 15.9 127.2 64 a=16.18- (0.636X5.5)
9 18.3 164.7 81 a= 12.68
12 20 17.3 F13=(15.9+18.3+19.2+20.0)/4=18.4
3. b)Moving Average(Weighted)
t Data(St) Forecast(Ft)
1 12
2 13
3 12.5 F4=(0.2*12.0)+(0.3*13.0)+(0.5*12.5)=12.6
4 15 12.6 F5=(0.2*13.0)+(0.3*12.5)+(0.5*15.0)=13.9
12 20 18.3 F12=(0.2*18.3)+(0.3*19.2)+(0.5*20.0)=19.4
Methods of forecasting HR
requirements: quantitative methods
When Are Statistical Approaches to Demand
Forecasting Appropriate?
• Stable environment
= 60 X 100% = 21.8%
275
Methods of HR supply forecasting
In forecasting the Supply of Inside Candidates:-
o Personnel inventory & development record help track employee
qualifications
Decruitment Options
Dealing with an Undersupply of
Personnel
Planning the recruitment campaign (how many applicants, how long the
vacancy will be on air, what sources will be used, how the recruitment will
be conducted)
(a) identification of the different sources of labor supply,
(b) assessment of their validity,
(c) choosing the most suitable source or sources, and
(d) inviting applications from the prospective candidates, for the
vacancies
Attracting candidates
The recruitment avenues available to an organization
• Can be broadly categorized as internal and external sources of
recruitment
Recruitment and Selection
Recruitment
Internal Description
sources
Transfers Involves shifting of an employee from one job to another, one department to another
or from one shift to another, without a substantive change in the responsibilities and
status of the employee
It may lead to changes in duties and responsibilities, working condition etc., but not
necessarily salary
It is a good source of filling the vacancies with employees from overstaffed departments
Promotions the practice of filling higher jobs by promoting employees from lower job
• Packages offered by the organization are in line with the market rate
Recruitment and Selection
Selection
What is Selection?
• It is the process of choosing from among the pool of the
prospective job candidates developed at the stage of
recruitment
• An exercise in predicting which applicants, if hired, will be (or will not
be) successful in performing well on the criteria the organization uses to
evaluate performance.
• It is the process of choosing from among the candidates from within the
organization or from the outside, the most suitable person for the
current position or for the future position(Dale Yoder)
• It is a managerial decision making process as to predict which job
applicants will be successful if hired(David&Robbins)
Recruitment and Selection
Selection
What is Selection?
As one of a managerial decision making process, the selection decisions
outcomes can be shown as below:
• Aptitude test(can you learn to do it?)-t is a measure of individuals potential for learning new skills. It
indicates the person’s capacity to develop.
• Ability/Trade test(can you do it now?)-these tests measure the existing knowledge, skills and proficiency
of the individual in the area of professions or technical training.
• Unlike the aptitude test that measure the potential to acquire skills, this trade test measure the actual
skills possessed.
• Interest test(do you want to do it?)-Interest tests are used to know the pattern of interests or involvement
of a person
Recruitment and Selection
Selection
Selection Process
iii)Employment Interviews-Interview is a formal, in depth
conversation conducted to evaluate the applicant’s suitability for
the job
• Although used almost universally, managers need to approach
interviews carefully.
iv) Reference & Background Checks-any employers request names,
addresses, and telephone numbers of references for the purpose of
verifying information and, gaining additional information on an applicant.
• Lack validity because self-selection of references ensures only
positive outcomes.
v)Selection Decisions- The final decision has to be made
from among the candidates who pass the tests, interviews
and reference check
Recruitment and Selection
Selection
Selection Process
vi)Medical Examination- After the selection decision and before the job
offer is made, the candidate is required to undergo a medical fitness test.
• Physical Examinations-Useful for physical requirements and for
insurance purposes related to pre-existing conditions
vii)Job offer-the next step in the selection process is job offer to those
applicants who have passed all the previous hurdles.
• Job offer is made through a letter of appointment/confirm his/her
acceptance
viii)Contract of Employment- After the job offer has been made and
candidate accepts the offer, certain documents( eg, attestation form,
contract of employment) need to be executed by the employer and the
candidate.
Recruitment and Selection
Start
Source of Application
Is Preliminary
Screening OK
Selection Test
Is Selection
Test OK
Employment interview
Is Employment
Interview OK
Reference &
Background analysis
Is Reference
and Back
ground OK
Selection Decision
• Misleading credentials
• Purposes of Orientation
• Develops realistic job expectations