HCM Topic 3

Human Resource Planning

Process of matching internal and external supply of people with anticipated job openings

HRP process

Analyse current situation, forecast future situation, Identify debts (surplus/shortage), take action

Demand of workers = supply

No action needed

Demand of workers less than supply

Surplus. Actions include restricting hiring, reducing work hours and encouraging workers to take no pay leave

Demand of workers more than supply

Shortage. Actions include creative recruiting, compensation and lowering selection standards

Recruitment

Process of attracting individuals in timely basis, in sufficient numbers and with right qualifications. Needed when there is a shortage

Alternatives to recruitment

Outsourcing, contingent workers and overtime

Outsourcing

Transfer recruitment responsibilities for area of service to external provider

Contingent workers

AKA part time workers, temporaries and independent contractors

Overtime

Most common method to meet short term fluctuations in work volume

Recruitment begins

When manager initiate employee requisition. Includes recruitment sources and methods

Recruitment sources

Place where qualified candidates are found. Includes internal and external sources

Internal recruitment sources

Known as promotion from within. Policy where job vacacies above entry level positions filled by current employees

External recruitment sources

Qualified candidates outside firm. Includes learning institutions, competitors and hosuewives

Recruitment methods

Means in which potential employees are attracted to firm. Includes internal and external

Internal recruitment methods

Includes job postings, job biddings and employee database

External recruitment methods

Includes advertising, employment agencies and internet recruiting

Selection

Process of choosing a individual from group of applicants who is best suited for job

Goal of selection process

Properly match people with jobs. Selecting wrong person for job will be costly

Selection process

Recruited individuals, preliminary screening, review of application/resume, selection tests, employment interviews, pre-employment screening, selection decision, medical examination, employment offer

Preliminary screening

Narrow pool of applicants, remove obvious unqualified candidates, reduce time and effort wastage in later stages

Review application/resume

Information in application/resume compared to JD and JS to determine match between qualification and requirements

Selection tests

Assist in assessing applicant’s qualifications and potential for job success. Eg; personality tests

Employment interviews

Goal oriented conversation to exchange information. Applicant: job/oganisation related information. Company: provide information on job/company, determine next steps

Pre-employment screenings

Background check: Verify information such as previous employment, education and criminal history. Reference check: Provide insights into information given by applicant and focus on personal characteristics

Selection decision

Candidate most suitable for job will be selected, final decision from direct manager

Medical examination

Determine if applicant is physically and mentally capable to perform job. Relevant to job requirements

Employment offer

Results made know to candidates ASAP, delays can lose candidate