2. Do you agree?
Great companies “first got the right people on the
bus, the wrong people off the bus, and the right
people in the right seats – and then they figured
out where to drive it.”
Good to Great: Why Some Companies Make the Leap and Others Don’t –
Jim Collins
3. Human Resource Planning
Human Resource Planning is a Process by
which an organization ensures that
Right number of people
Right kind of people
At the Right time
At the Right place
Doing the Right things for which they are suited
for achieving the goals of the organization.
4. Factors affecting Human Resource
Planning
Sales and production forecasts
The effects of technological change on task
needs
Variations in the efficiency, productivity,
flexibility of labor as a result of training, work
study, organizational change, new motivations,
etc.
Changes in employment practices (e.g. use of
subcontractors or agency staffs, hiving-off
tasks, buying in, substitution, etc.)
5. Factors affecting Human Resource
Planning
Variations, which respond to new legislation,
e.g. payroll taxes or their abolition, new health
and safety requirements
Changes in Government policies (investment
incentives, regional or trade grants, etc.)
8. Demand Forecasting
Delphi Technique
Very important technique used for estimating demand
of human resources.
Takes into consideration human resources
requirements given by a group of experts i.e.
mangers.
The human resource experts collect the HR needs,
summarises the various responses and prepare a
report.
This process is continued until all experts agree on
estimated human resources requirement.
9. Demand Forecasting
Nominal group technique
Problem solving process involving problem
identification, solution generation and decision making
Used in group of many sizes who wants to make their
decision quickly, as by a vote, but want everyone’s
opinions taken into account
10. Demand Forecasting
Ratio Analysis
Demand for human resources is also estimated on the
basis of ratio of production level and number of
workers available.
This ratio will be used to estimate demand of human
resources.
Estimated production for next year = 1,40,000 units
Estimated no. of workers needed (on the basis of
ratio-trend of 1: 200) will be = 700
11. Demand Forecasting
Work Study Method
This technique is suitable where the estimated work-
load is easily measureable.
Under this method, estimated total production and
activities for a specific future period are predicted.
This information is translated into number of man-
hours required to produce per units taking into
consideration the capability of the workforce.
Past-experience of the management can help in
translating the work-loads into number of man-hours
required.
12. Demand Forecasting
I. Estimated total annual production = 300,000
units
II. Standard man-hours needed to produce
each unit = 2 hrs
III. Estimated man-hours needed to meet
estimated annual production (i x ii) = 600,000
hrs
IV. Work ability/contribution per employee in
terms of man-hour = 1,500 units
V. Estimated no. of workers needed (iii / iv) =
600000/1500 = 400
14. Internal Supply
Present Supply
Qualification inventories are one way of forecasting
inside candidates
A list of employees, their education, any internal
training, special skills, and succession planning for
promotion is beneficial to the future planning.
A second method is referred to as personnel
replacement.
This is defined as the employee's present
performance and the desire for promotion to
additional positions based on performance, skills and
experience.
15. External Supply
There are numerous factors to consider for
external candidates
They include the geographic area of the
company, potential candidates graduating
From college, individuals entering or leaving the
workforce,
The level of skills and experience required to perform
the internal jobs and the competing employers for the
same skill set.
This information is beneficial in determining
competitive benefits and salary offerings.
16. Recruitment is not about filling jobs that are currently
vacant – it is about making a continuous, long-term
investment to build a high quality workforce capable of
accomplishing the organization’s mission now and in
the future
Any example you know of?
17. Recruitment is a critical management function that all
levels of the organization need to be involved in
planning and implementation
18. Global Sourcing is changing the shape of the
business world!!!
Features of the ‘New’ World
• Global sourcing barriers fading away
• Disappearance of the Time Zones
• Transformation of the work processes into pieces
that can be constructed and deconstructed
19. Changing Role of HR: Modified Recruitment Structure
Currently organisations use one or more of the following staffing
structures:
Decentralized Staffing Model —Allows individual business units to
develop and fill their own staffing plans.
Hybrid Staffing Model —Combines decentralized approach with certain
centralized (or shared services) components.
Outsourced Staffing Model —Promotes efficiency, consistency and
potential cost saving
HR Business Partner Structure —HR business partners work with
designated business units.
20. Pros and Cons of Recruiting Department Structures
Centralized Hybrid Decentralized
Pros Cons Pros Cons Pros Cons
•Facilitates
practice and
lead sharing
•Enhances
Consistency
•Enables
Standardization
•Creates a
disconnection
between
recruiters and
business units
•Enables a mix
of process
efficiencies
and
connection
with the line
•Creates
staffing
resource
flexibilities
•Creates
resource and
process
inefficiencies
•Distance
function from
the support of
corporate
headquarters
•Improves
communication
with the line
•Enables
recruiters to
learn business
•Creates
resource
inefficiencies
•Discourages
candidate and
practice sharing
across the
department
•Lacks process
efficiencies of
centralized
structures
•Reduces
consistency and
standardization
Corporate Leadership Council
21. Three Main Functions of Recruitment Process
are:
Attract a pool of suitable candidates
Deter unsuitable candidates from applying
Create a positive image of the organization
23. Recruitment from Inside
Advantages
Career plan for existing workers &
morale
Motivator for good performance
Relatively easier assessment of
applicants as information is available
Reduced recruitment costs (travel
expenses)
Causes succession of promotions
Have to hire only at entry level.
Disadvantages
Existing employees may not bring-in new ideas
to their new job (inbreeding).
Lower level employees may not have capacities
required at higher jobs.
High-powered employees might not be able to
wait long enough for their turn (“political”
infighting for promotions).
Internal strife for the post might impact
negatively on possibilities for team work
among existing employees.
Need for management development program
24. Recruitment from Outside
Disadvantages
Relatively higher costs.
Risky of getting the wrong person.
May cause morale problems for
internal candidates not selected.
Advantages
Larger pool of talent.
Objectivity and extensive effort put into the
process likely to lead to a better candidate
selection.
New industry insights, ideas, way of thinking
& approaches might challenge existing norms
and act as catalyst in continuous improvement/
innovation.
Cheaper and faster than training professionals.
No group of political supporters in
organization already.
25. Sourcing Channels
Recruitment methods
Internal
• Job Posting
• Skills Data Base
• Employee Referrals by Other
Departments
External
• Advertisement
• Placement Agencies
• Internships
• Job Sites
• E-Recruiting
• Campus
• Data Base
• Alumni
• Associations/Interest Groups/
Networks
• Temporary Leasing
• Employee Referrals
• Passive Recruiting (Unsolicited application)
• Career Fairs
26. Despite the importance of strategic workforce planning, most HR
departments have not yet developed a formal plan to participate
in their companies’ business cycles.
Ninety percent of HR departments have no independent planning
and forecasting function, and many HR departments have no
formal staffing strategy of any kind.
Rather, they tend to operate independently of the business cycle,
developing reactive staffing solutions instead of proactive
strategies that anticipate movements in the business cycle.
27. Recruitment Strategy: A Six Step Approach
Recruitment strategy should answer the following
questions related to their target populations:
1. Who is being targeted through the recruitment?
2. Where is the appropriate place to recruit clients?
3. When should recruitment be done?
4. What messages should be delivered during recruitment?
5. How should the messages be delivered?
6. Who is the most appropriate person to do recruitment?
28. Talent Forecasting
1. Business strategy —Integrates projected company growth in
terms of activity, output and revenue.
2. Human capital need —Translates business strategy into staffing
requirements.
3. Projection of future vacancies — Based on difference between
staffing requirements and current capacity.
29. Strategic Recruiting Stages
Human Resource Planning
• How many employees are needed?
• When employees will be needed?
• What specific KSA’s (Knowledge, Skills
& Abilities) are needed?
Organizational Responsibilities
• HR staff & operating managers
• Recruiting presence and image
• Training of recruiters
32. Selection
• The process of assessing candidates and appointing a
post holder
• Applicants short listed – most suitable candidates
selected
• Selection process – varies according to organisation.
33. Selection Tools
• Interview – most common method
• Psychometric testing – assessing the personality of the applicants –
• Measures of personality
• Honesty test (substitute to polygraph)
• Aptitude testing – assessing the skills of applicants
• Measures of proficiency, achievement, or knowledge
• Measures of mental ability or intelligence
• In-tray exercise – activity based around what the applicant will be
doing
• Presentation – looking for different skills as well as the ideas of the
candidate
• Assessment Centres – battery of tests
34. Choice of Selection Methods
• Number of applicants
• Criticality of position
• Cost/effort involved
• Predictive validity
• Extent of preparation required
35. When using psychological tests..
• Clearly identify the objectives
• Uses a battery of test that can give range of information
• Have trained psychologists conduct and interpret tests
• Use personality testing as an adjunct to the recruitment or
career planning process and exploit its developmental
power
• Adapt tests to Nepali situations
36. Determining Selection Standards
Sources of Information about Applicants
• Application Forms
• Reference Checks
• Physical Examination
Selection Tests (Reliability & Validity)
The Selection Interview
37. Recruitment: Return on Investment (ROI)
• Recruitment return on investment (ROI)
understands and compares the elements, costs
and risks of a recruitment related project to the
expected benefits
38. What to Measure: Hiring
Recruiter Effectiveness
RE = RT+TF+HR+C/H +QH
N
RE = Overall Recruiter effectiveness
RT = Response Time
TF = Time to Fill
HR = Hire Rate
C/H = Cost Per Hire
QH= Quality of Hire
N = Number of Indices Used.
HR Accounting
39. Cost Per Hire
SC = Sourcing costs (Advertising + Agency Fees + Employee Referrals)
ST = Staff Time [Travel + Interview ] x [Recruiter Pay and Benefits] or External
Agency Fee
MT = Management Time x Managements Pay and Benefits
PC = Processing Costs/ Operating Expenses
TR = Travel Cost of Applicants
RL = Relocations Costs
MS = Miscellaneous
H = Full Time or Part Time Employees Hired
CPH = SC+ST+MC+PC+TR=RL+MS
H
HR Accounting
40. Quality of Hire (QH)
PR= Average job performance ratings of new hires
HP= Percent of new hires promoted within one year
HS = Percent of new hires retained after one year
N = Number of indicators used
QH = PR + HP + HS
N
Satisfaction of new employees with hiring.
Satisfaction of managers with new employees.
HR Accounting
41. Number Hired (Hit Rate)
HO = OA/OE
TF =RR – OD
RR = Date requisition is received
OD = Date offer is accepted
OA = Offer accepted
OE = Offers extended
HO = Percentage of offers that result in hire
Time to Fill
HR Accounting
42. Rewards
Compensati
on
Health
Benefits
Retirement
Benefits
Vacation
Opportunity
Development
Opportunities
Future Career
Opportunities
Organization
Growth Rate
Meritocracy
Organizational
Stability
Organization
Customer Prestige
Diversity
Empowerment
Environmental
Responsibility
Ethics
Great Employer
Recognition
Well know Brand
Market Position
Product/ Service Quality
Organization Size
Social Responsibility
Technology Level
Work
Business Travel
Innovation
Job Impact
Job-Interests
Alignment
Location
Recognition
Work Life
Balance
People
Camaraderie
Collegial Work
Environment
Coworker Quality
Manager Quality
People
Management
Senior Leadership
Reputation
The Employment Value Proposition
The set of attributes that the labor market and employee perceive as the value they gain
through employment in the organization.
Rewards
Compensati
on
Health
Benefits
Retirement
Benefits
Vacation
Opportunity
Development
Opportunities
Future Career
Opportunities
Organization
Growth Rate
Meritocracy
Organizational
Stability
Organization
Customer Prestige
Diversity
Empowerment
Environmental
Responsibility
Ethics
Great Employer
Recognition
Well know Brand
Market Position
Product/ Service Quality
Organization Size
Social Responsibility
Technology Level
Work
Business Travel
Innovation
Job Impact
Job-Interests
Alignment
Location
Recognition
Work Life
Balance
People
Camaraderie
Collegial Work
Environment
Coworker Quality
Manager Quality
People
Management
Senior Leadership
Reputation
Corporate Leadership Council
