HRM Chapter 5

7/27/2019 HRM Chapter 5

1/31

Human Resource Management

At PAF-KIET (City Campus)

Chapter No. 5 by

Khurram Khan


2/31

Staffing

It the process of

- Recruitment + Selection + Retaining

- Good Quantity + Good Quality of People

- to make Organization Effective.


3/31

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)


4/31


Personnel/HR Planning


5/31


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,


6/31

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


7/31

- Ratio AnalysisUsing 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



8/31

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

Size of Hospital Number of(Number of Beds) Registered Nurses

200 240

300 260

400 470

500 500

600 620

700 660

800 820900 860



9/31

Drawbacks to Scatter Plots

1. Based on projections and historical relationships,assume firms structure and activities will be same inthe future.

2. Does not consider companys strategic initiativesimpact on staffing levels.

3. Does not uncover managers who expand their staffsirrespective of strategic needs.

4. Based on nonproductive idea that increases in staffsare inevitable.

5. It support existing planning processes irrespectiverapid change.


10/31


- Using ComputersCompany Use Software to determine the future staff need by projecting its..

- Sales

- Volume of Production

- Maintaining Volume of Output


11/31

-Are currently employees suitable for the opening position?

-Sometimes it is obvious, but not always.

-Qualifications InventoryIt 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

2. Supply of inside Candidates


12/31

Management ReplacementChart Showing DevelopmentNeeds of Future Divisional

Vice President


13/31


14/31


15/31


16/31

Internal Sources of Candidates: Hiring from Within

Advantages

Foreknowledge of candidatesstrengths and weaknesses

Familiar with the company mayincrease selection accuracy

More accurate view of candidates

skills Candidates have a stronger

commitment to the company

Increases employee motivation/moraleto perform well

Quick and low cost of hiring employee

Less training and orientation required

Disadvantages

Employee may not be prepared.

Failed applicants becomediscontented

May create Ripple Effect ofgenerating other vacancies.

Time wasted interviewing insidecandidates who will not beconsidered

Company may hire same corruptpeople.

Inbreeding of the status quo

No new Blood, No new Energy

No New Ideas


17/31

If company unable to find suitable inside candidates, then seek outside candidates to fill thepositions, for that they do ..

-Forecast by looking at

-Economic Conditions- GDP- Business Week

-Unexpected Unemployment Rate

- Lower Unemployment Rate Difficult to find outside Candidate

3. Supply of Outside Candidates


18/31

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


19/31

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.


20/31


- Recruiting/Hiring

It is the process ofDiscovering/ Searching/Attracting

potential job candidates.

- Main objective is to develop a pool of suitablecandidates.

- Deter unsuitable candidates from applying

- Create a positive image of the company


21/31

Factors affecting Recruiting efforts

- Organizational Size

- Employment conditions in the area

- Working conditions, salary and benefitsoffered

- Organizational Growth


22/31

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.


23/31

Steps for Succession Planning

1. Identifying and analyzing key jobs.

2. Creating and assessing candidates.

3. Selecting those who will fill the keypositions.


24/31

Recruitment Sources

- External

- Advertisements : Newspapers

- Walk-ins i.e. without invitation

- Head Hunters/Employment Agencies

- Public: HRS Global,

- Private: Overseas Employment,

- Non-Profit: IEEESocieties

- Special Events : Job Fairs

- On Campus /College Recruiting

- Internships

- Online/Cyber

- Outsourcesing


25/31

Outside Sources of Candidates

Advertising

The Media: selection of the best medium dependson 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 evokethe applicants attention, interest, desire, and action(AIDA) and create a positive impression of the firm.


26/31

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 femaleapplicants.

To reach employed individuals, comfortable dealingwith agencies than with competing companies.

To cut down time devoting to recruiting.


27/31

Outside Sources of Candidates (contd)

Avoiding problems with employment agencies:

Give the agency an accurate and complete jobdescription.

Make sure tests, application blanks, and interviewsare part of the agencys selection process.

Periodically review data on candidates accepted or

rejected by your firm, and by the agency. Check onthe effectiveness and fairness of the agencysscreening process.

Screen the agency. Check with other managers orHR people to find out which agencies have been themost effective at filling the sorts of positions neededto be filled.

Review the Internet and a few back issues of theSunday classified ads to discover the agencies thathandle the positions to be filled.


28/31

3. Supply of Outside Candidates,


29/31

Measuring Recruiting Effectiveness

- What to measure and how to measure

How many qualified applicants were attractedfrom each recruitment source?

Assessing both the quantity and the qualityof the applicants produced by a source.

- High performance recruiting Applying best-practices management techniques

to recruiting.

Using a benchmarks-oriented approach toanalyzing and measuring the effectiveness ofrecruiting efforts such as employee referrals.


30/31

Temp Agencies and Alternative Staffing

Benefits of Temps

Paid only when working

More productive

No recruitment, screening, andpayroll administration costs

Costs of Temps

Fees paid to temp agencies

Lack of commitment to firm


31/31

End of Chapter 5

HRM Chapter 5

Documents

Transcript of HRM Chapter 5