MOS Note ▯ Chapter 4 ~ HRM Planning, Recruitment and Selection
Human Resources Planning
• Strategic Plans tend to be broader in scope, longer in time frame, and provide overall
direction, and apply to the entire organization.
• Human Resources Planning is a process to ensure that the people required to run
the company are being used as effectively as possible, and where and when they are
needed, in order to accomplish the organization’s goals.
Linking HR Planning to Strategic Planning
• Strategic Planning involves the allocation of resources, including the people resources
of the organization, HR planning is aligned to ensure the objectives are met.
• Line managers need to make plans not only for business objectives but plans for the
necessary stafﬁng resources.
• Organizations are concerned about developing leaders for the future and are focusing
efforts on trailing and development programs so that the leaders have the
competencies necessary that can keep pace with the direction of the organization.
Importance of Planning for Stafﬁng Needs
• Because of the evolving labour force, this requires managers to become more
involved in planning their stafﬁng needs, since such changes affect not only employee
recruitment but also methods of employee selection, training, compensation, and
• An organization may incur several intangible costs as a result of inadequate or no
people planning such as causing vacancies to remain unﬁlled.
• Planning occurs more systematically in medium and larger organizations. Small,
entrepreneurial organizations tend to approach HR stafﬁng needs on a more short-
HR Planning Approaches
• Since overall outcome of HR planning is to have the right people with the right skills at
the right time in the right job, there is a need to forecast the demand for employment.
• A trend analysis will forecast employment requirements on some type of
organizational index, such as sales or units of production.
• In management forecasts, the opinions and judgements of people who are
knowledgeable about the organization’s future needs will develop scenarios that can
be used for planning purposes.
• Besides forecasting the demand for employees, an organization will also need to look
at the supply of employees.
• Stafﬁng tables are graphic representations of all organizational jobs, along with the
numbers of employees currently occupying those jobs. MOS Note ▯ Chapter 4 ~ HRM Planning, Recruitment and Selection
• The Markov analysis shows the percentage of employees who remain in each job
from one year to the next, as well as the proportions of those who are promoted,
demoted, or transferred, or who leave the organization.
• When assessing the organization’s supply, organizations will identify the key skills or
core competencies necessary for organizational success by using a skills inventory.
Results of HR Planning
• The outcome of HR planning is to achieve a useable balance between the demand for
and supply of employees.
• The demand for and supply of labour is very much a function of the economic
Ways to Deal with an Oversupply of Labour
• Attrition is the natural departure of employees through people quitting, retiring, or
• Organizations can generally estimate how many people leave and for what reasons.
• Some organizations can avoid downsizing because they know how many people will
• High turnover is when too many people leave, and this can cost a company more
money than intended.
• It is currently estimated that the costs of turnover can be as high as two times then
annual compensation, particularly in high-demand skills areas.
Ways to Deal with Shortages of Labour
• Line managers, together with HR professionals, will identify where a company might
look for these candidates.
• Recruitment is the process of locating and encouraging potential applicants to apply
for existing or anticipated job openings.
• It is important for companies to focus on employee retention as well as focusing on
accessing new talent.
• Companies are now transferring the concept of “branding” to its employment
framework -- to have a uniform image come into prospective employees’ minds when
the company name is mentioned (Google).
Recruiting Within the Organization
• By ﬁlling vacancies this way, an organization can capitalize on the investment it has
made in recruiting, selecting, training, and developing its current employees.
Advantages of Recruiting from Within
• Promoting from within helps encourage employees and rewards them for successful
past performance. MOS Note ▯ Chapter 4 ~ HRM Planning, Recruitment and Selection
• It gives employees a reason to anticipate that similar efforts by them will lead to
promotion, thus improving moral within the company.
• Transferring employees eliminates the need to orientate and train a new employee
because these employees are already familiar with the company.
• A transferees performance record is most likely more accurate than data gained from
an outside applicant.
Methods of Locating Qualiﬁed Internal Job Candidates
• Candidates can be located within an organization using computerized record systems
and internal job postings.
Human Resource Information Systems
• IT has made it possible for organizations to create databases that contain the
complete records and qualiﬁcations of each employee within an organization.
• Organizations have developed a resume tracking system that allow managers to
access an online database of resumes.
• These databases allow organizations to quickly and efﬁciently locate possible
candidates to ﬁll an internal opening.
• Succession planning is the process of identifying, tracking and developing key
employees for future promotions.
• Succession plans rely upon the organization identifying its long-term goals, outlining
the competencies required to achieve those goals, and making sure the employee is
developed in order to assume other roles and take on other responsibilities.
Internal Job Postings
• Organizations may advertise about job openings through a process referred to as
Internal Job Postings.
• Companies are developing computerized job posting systems and maintaining
voluntarily lists of employees looking for upgraded positions.
• Internal job postings are more effective when they are part of a career development
program in which employees are made aware of opportunities available to them within
Limitations of Recruiting from Within
• Some jobs require specialized training and experience that can not be ﬁlled from
within the organization and that must be ﬁlled from the outside.
• Even though a company posts an internal job posting, it is important for the
organization to consider options from outside the organization as well.
• Potential candidates should be considered from the outside in order to prevent the
inbreeding of ideas and attitudes. MOS Note ▯ Chapter 4 ~ HRM Planning, Recruitment and Selection
• Technical and managerial positions can be sources of new ideas and may bring with
them the latest knowledge acquired from their previous employers.
Recruiting Outside the Organization
• External recruitment is organized and coordinated by the HR department with the line
manager frequently giving suggestions about where to recruit, such as an ad in a
newspaper or processional journal.
• Hiring someone from the outside is seen as bringing in new ideas, different styles, and
Limitations of Recruiting from Within
• Advantage: The individual coming in to ﬁll the position possesses some unique skills
that the company needs now.
• Disadvantage: The lack of solid information about the person’s performance on the
• There are signiﬁcant costs involved with hiring from the outside such as advertising,
and familiarizing the person with the company.
• The labour market is the area where people are bring recruited from and will very
with the position being ﬁlled and the level of compensation being paid.
• The search for highly skilled labour or executives can extend nationally or even
• The search for low skilled jobs is more regional and does not extend nationally or
• During times of high unemployment, ﬁrms can maintain the supply of highly skilled
applicants through unsolicited applicants alone.
• During times of low unemployment, ﬁrms seek help from ﬁrms who specialize in
• Canada has heavily relied on Immigration in meeting the demand for labour.
• Canada has an aging population with insufﬁcient younger workers to ﬁll the work
requirements in the future.
Outside Sources of Recruitment
• One very common way to attract applicants is through advertisements.
• Some degree of selectivity can be achieved by using newspapers and journals
directed towards a particular group of readers.
• Among the information typically included in advertisements is a statement that the
recruiting organization is an equal-opportunity employer. MOS Note ▯ Chapter 4 ~ HRM Planning, Recruitment and Selection
• HRSDC provides assistance to employers in approving special work permits to enable
people from other countries to move to Canada for employment.
• The internet is the most commonly used search tactic by job seekers; 60% of
Canadians with internet access have gone online and searched for a job.
• Many companies use their own websites to announce available positions under their
• Employers claim that the internet is faster, generates higher quality applicants, and is
less expensive than traditional advertising methods.
• Employment agencies, including executive search ﬁrms and temporary employment
agencies, attempt to match applicants with the speciﬁc needs of a company.
• Executive search ﬁrms are employment agencies that typically focus on senior-level
and executive-level positions.
• Since high-calibre executives are in short supply, a signiﬁcant number of the nation’s
largest corporations are using executive search ﬁrms to ﬁll their top positions.
• “Temps” are typically used for short-term assignments or to help when managers
cannot justify hiring a full-time employee.
• Increasingly, temps are being employed to ﬁll positions once staffed by permeant
• This practice is growing because temporaries can be laid off quickly, and with less
cost, when work less