2. TOPICS COVERED:
• Human resource planning process
• Sources of Recruitment
• Selection process and tests
“Human resource planning is the process of analyzing an organization’s human requirements
under changing conditions and developing activities necessary to satisfy these needs.”
- James W. Walker
“Human resource planning is a process of determining and assuming that the organization
will have an adequate number of qualified persons available at the proper times,
performing jobs which meet the needs of the enterprise and which provide satisfaction for
the individuals involved.”
- Dale S. Beach
4. STEPS OF HR PLANNING PROCESS
Setting Organizational Objectives & Strategies
Scanning the environment
Preparing an in-house skill and competency inventory
HR forecasting –
estimation of availability
HR forecasting –
Developing HR plans and programmes
5. SETTING ORGANIZATIONAL OBJECTIVES AND STRATEGIES
• Mission and Vision Statement - expresses the future intent of the organization
• Organization strategy – gives a clarity about future HR requirements of the firm
• The HR managers should consult the organizational objectives and policies for:
Framing guidelines concerning hiring process
6. SCANNING THE ENVIRONMENT
• The environmental forces are the events that can cause a company to achieve or fail on
• Environmental scanning is done to scan the business environment to seize the
opportunities and tackle threats
• It involves collection of information in the form of statements, actions and responses of
the people associated with the environment
7. SCANNING THE ENVIRONMENT (CONT…)
8. PREPARATION OF IN-HOUSE SKILLS AND COMPETENCY INVENTORY
• Preparation of skill inventory – to assess the present strength of
• It involves compilation of skills, competencies and qualifications of
the entire workforce
• Helps in identifying employee’s
strength & weaknesses and skill gap
within the org.
• Also helps in identifying area of
improvement in skill levels
Core Competency Analysis
• Extraordinary abilities of an org. that
enables it to acquire competitive
advantage in the market
• It’s application in HR strategies
include recruitment, training,
performance management etc.
9. HR FORECASTING – NEED ASSESSMENT
• HR forecasting is required to implement the organizational strategies
• HR forecasting involve future requirements in terms of nature and number of people
• Factors affecting forecasting HR requirements are:
Labour turnover rates
Organizational growth patterns
Planned technological improvements
10. HR REQUIREMENTS’ FORECASTING TECHNIQUES
11. HR REQUIREMENTS’ FORECASTING TECHNIQUES (CONTD...)
• Trend Analysis – forecasting HR requirements on the basis of past events
• Ratio Analysis – analysis of relationship between any two numerical variables
• Delphi technique – group-based systematic broadcasting method
• Normal Group Technique – similar to delphi technique but duplication is eliminated
• Managerial Judgement – forecasts are made by the senior managers of the org. on the
basis of their experience and expertise
12. HR REQUIREMENTS’ FORECASTING TECHNIQUES (CONTD...)
• Work Study Technique – aims at examining the business operations to achieve the
optimum utilization of the human and physical resources available
• Zero-base Forecasting – requires the managers to justify the need to continue with
the positions or jobs that are full vacant in their dept.
• Simulation Model – software enabled technique
• HR Allocation Approach – it is based on object-oriented simulation model
13. HR FORECASTING – ESTIMATION OF AVAILABILITY
• In HR forecasting of employee availability, four scenarios are possible:
Getting sufficient no. of employees from internal sources
Getting sufficient no. of employees from external sources
Combining both sources to get adequate numbers
Failing to get the required no. of suitable employees from the above mentioned
15. HR AVAILABILITY’S FORECASTING TECHNIQUES (CONTD...)
• Replacement Charts – used to find out the employees readily available for promotion
to predetermined positions
• Turnover Rate – it indicates the number of replacements required during a year
• Human Resource Management Information System (HRIS) – online software to meet
• Productivity Level – increase in productivity level decreases the HR requirements of
• Succession Planning – transfers at the top level of the org. should be carried out with
the least disturbance to the business
16. DEVELOPING HR PLANS AND PROGRAMMES
• Aimed at recruitment of new employees or reduction of the existing workforce based on
• Shortage of labour will lead to the following HR activities:
Recruitment and Selection
Training and Development
• Surplus of labour Employee reduction programmes such as:
Voluntary retirement schemes
Reduced working hours
17. REQUIREMENTS FOR EFFECTIVE HR PLANNING
• HR plans should be aligned properly with the org.’s mission, vision and strategic goals
• Active guidance of top management is necessary for proper HR planning
• Sustained communication between line managers and HR managers
• HR records should be accurate and up-to-date
• Necessity of feedback and constant improvement
• System and process involving HR panning should be easy to understand and operate for
all those associated with it.
18. RECRUITMENT & SELECTION:
Recruitment is a process of attracting candidates towards a job in an organization.
When a vacancy for a job exists recruitment is initiated.
Selection is a process of hiring right person for a right job at a right time at a right
Selection follows recruitment.
20. PLANNING FOR RECRUITMENT AND SELECTION
Recruitment and Selection Objectives:
The things the organization hopes to accomplish as a result of the recruitment and
selection process. They should be specifically stated for a given period.
Recruitment and Selection Strategy:
The plan the organization will implement to accomplish the recruitment and selection
objectives. The sales managers should consider the scope and timing of recruitment and
22. INTERNAL SOURCE OF RECRUITMENT
Internal sources refer to recruiting known persons who are familiar with culture, policies
and expectation of the organization.
(1) TEMPORARY WORKERS : Workers who joined as trainee on a nominal stipend will be
recruited as regular employee.
(2) PROMOTIONS : Positions vacant in higher ranks can be filled up by suitable employees
from the lower levels.
(3) TRANSFERS : A transfer deals with the shifting of an employee from one job to another
without special reference to change in responsibility or compensation.
23. MERITS & DEMERITS
(1) Quickest and Cheapest Method
(2) Economical and Convenient to the business firm
(3) No direction and induction process required
(4) Help in boosting employee morale
(5) Motivates other employees to work better
(1) Current employees may not be aware of the latest technology and trends in the
(2) Promotion based on seniority may de-motivate a meritorious candidate.
(3) It limits the choice to few employees
(4) It may become bias
(5) May create frustration for candidate who are not selected.
24. EXTERNAL SOURCE OF RECRUITMENT
External sources attract outsiders to a chance of entry in the company.
(1) RECRUITMENT AT THE FACTORY GATE : It is the cheapest way and used to recruit
unskilled workers to fill up casual vacancies. Most appointment done through this method
(2) RECOMMENDATION OF EXISTING EMPLOYEES : Those who are working in company will
recommend someone form outside. A present employee will never wish to mislead
(3) JOB ADVETISEMENTS : This is done by giving advertisement of vacancies in local
newspapers or in professional journals.
(4) LABOUR CONTRACTORS : When the work is of temporary nature, labour contactor is
useful in completing those tasks. Housekeeping staff and Colour Painting Staff can be hired
on temporary basis.
25. MERITS & DEMERITS
Fresh talent and skill comes into the organization. New employees change the old
norms and habits. They can form new policy and terms.
Outsiders are not fully aware with the policies and procedures. Problem of Sorting
during Campus Interview and Advertisement will arise. Lack of time may lead to faulty
selection of candidates.
26. SELECTION TESTS : TYPES OF TESTS
(1) INTELLIGENCE TEST : This test aims at measuring the IQ (Intelligence quotient) of the candidate with respect
to their levels of reasoning, perception, numerical ability, understanding memory, speed of thought etc.
(2) APTITUDE TEST : These tests aim at measuring some potential of a certain kind rather than acquired skill or
(3) COMPETENCE TESTS : These test are used to test the depth of knowledge acquired in the past .
(4) INTEREST TESTS : This is to determine the preference of the candidate to accept occupation of a different
(5) PERSONALITY TEST : These tests are conducted to judge the emotional balance, maturity and
temperamental qualities of a person. These tests generally aim at finding out the characteristics that make up a
(6) GROUP or INDIVIDUAL TEST : These tests can find out leadership qualities of the candidates. The ability to
work with the group is tested.