Chapter 4 – Human Resource Planning, Recruitment, and Selection
Human Resource Planning: Process that the people required to run the company are being used as
effectively as possible, where and when they are needed, in order to accomplish the organization's
Succession Planning: Developing leaders for the future who have the competencies necessary that can
keep pace with the direction of the organization.
Facts about the Canadian labour force:
− Workforce is aging
− Manufacturing sector is shrinking, fewer jobs in that industry
− About 21% of workforce is born in another country
− Labour shortages predicted in retail, construction and health sectors
− 34% are self-employed or part-time employed.
Medium to Large organizations -> More systematic HR planning
Small entrepreneurial organizations - > HR planning based on short-term basis.
HR Planning approaches:
1. Forecasting – anticipating the demand for employees
− Quantitative approaches: Trend Analysis – Using an organizational index to forecast such as
sales or units of production of previous years to make projections.
− Qualitative approaches: Management Forecasts – opinions and judgements of supervisors or
managers and others that are knowledgeable about the organization's future employment needs.
2. Analyzing both internal and external supply of employees
− Internal: Staffing tables – Graphic representations of organizational jobs along with the
numbers of employees currently occupying those jobs and future employment needs.
− Internal: MarkovAnalysis – Method for tracking the pattern of employee movements through
various jobs using the percentages and numbers of employees who remain in each job from one
year to the next, as well as the proportions of promoted, demoted, transferred and leave the
− Skills inventory/mix: Identify core competences/skills necessary for organizational success in
employees eg. Education/experience of staff members.
Objective of HR planning: to achieve a usable balance between the demand and supply of employees,
this is usually also a function of the economic environment at the time.
1. Forecast demand for labour
2. Determine supply of labour – external and internally
3. Identify the gap between demand and supply
4. Develop action plans to eliminate the gap
◦ If oversupply –Attrition(natural departure of employees), leave of absences(without
pay), job sharing, reduce hours/pay
◦ If shortage – Hire full/part time employees, lease employees, use overtime, retention
strategies. Recruitment: process of locating and encouraging potential applicants to apply for jobs.
1. Planning for staffing needs
2. Identification of current or future job openings
3. getting individual job information – description and specifications
4. determining recruitment method – internal or external
5. creating pool of potential qualified applicants
*Challenge is to continue recruitment process even during difficult economic times, focus on retention
more than recruitment.
Branding: to have a uniform image come into prospective and existing employees minds when the
company name is mentioned.
− Promoting rewards and encourages employees
− Promoting makes use of people who already know the organization
− Promoting makes other employees want to receive the same promotion so they work harder
− Transfers protect employees from layoff and broaden job experiences
− Eliminates orientation and training costs of recruitment
− Transferees performance record is a more accurate predictor of success than outside applicants.
Methods of finding Internal Candidates:
Human Resource Information Systems: Database screening of current workforce and skill sets to locate
Succession Planning: identifying, developing and tracking key employees for future promotions.
Internal Job posting: method of advertising about job openings within a company through a common
area or by email.
− Certain jobs may require specialized training and experiences from outside an organization.
− Employee cloning: excessive reliance of internal recruiting may lead to employees with all the
same ideas and methods
− External recruiting brings in new ideas from other companies
− Brings certain unique skills the company needs now
− New ideas from other employers
− Lack of solid information about the person's performance on the job
− Second-hand sources may not be as reliable eg. References.
− Orientation and training will be necessary which comes with many costs.
− Legislative requirements such as employment equity
The labour market: area from which applicants are recruited.
Sources of External recruiting:
− advantage of reaching a large audience of possible applicants
− degree of selectivity can be achieved by using selected mediums directed at a target group such as using a professional journal/magazine
− Cheaper, faster and potentially more effectively
− Company databases and job search websites eg. Jobserve.ca
− Executive search firms: “headhunters” that typically focus on senior-level and executive-level
managerial positions and is paid by the firm looking to employ. eg. Hiring a CEO
− Private agencies: specializing in serving a specific occupational area such as office staff or tech
people who charges the employer money if they find a candidate who gets hired.
− Temporary employment agencies: agencies that provide “temps” - temporary employees for
short-term assignments or to help when managers cannot justify hiring a full-time employee,
such as for vacation fill-ins or peak work periods. Easier to lay off temps when work lessens as
there is no need to file employment insurance claims and temps usually do not receive benefits.
However, the drawback of contract employees is that they have lower commitment to the
company and may take confidential info to their next employer.