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Human Resource Management

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After studying this chapter, students should be able to understand the following concepts:

A. Human Resource Planning

B. Human Resource Forecasting Techniques

C. HR Hiring Process

D. Constraints of Recruitment Process

E. Philosophy of the Recruitment

F. Ethical Issues in Recruitment



Today we will examine the human resource planning process and some human resource forecasting

techniques. Next, we discuss forecasting human resource requirements and availability and describe what

actions could be taken should either a surplus or a shortage of workers exist.

A. Human resource planning (HRP):

It is the process of systematically reviewing human resource requirements to ensure that the required

number of employees, with the required skills, is available when they are needed.


Several techniques of forecasting human resource requirements and availability are currently used by those

in the profession.

Zero Based Forecasting

This method uses the organization’s current level of employment as the starting point for determining

future staffing needs. The key to zero-base forecasting is a thorough analysis of human resource needs.

Bottom-Up Approach

A forecasting method in which each successive level of the organization, starting with the lowest, forecasts

its employee requirements in order to, ultimately, provide an aggregate forecast of employment needs.

Use Of Mathematical Models

Mathematical models can assist in forecasting HR requirements. The relationship between sales demand and

the number of employees needed is a positive one.


Simulation is a technique for experimenting with a real-world situation through a mathematical model

representing that situation. A model is an abstraction of the real world.

Forecasting Human Resource Requirements

A requirements forecast is an estimate of the numbers and kinds of employees the organization will need at

future dates in order to realize its goals.

Forecasting Human Resource Availability

Determining whether the firm will be able to secure employees with the necessary skills and from what

sources these individuals may be obtained is called an availability forecast.


When a comparison of requirements and availability indicates a worker surplus will result, restricted hiring,

reduced hours, early retirements, or layoffs may be required to correct the situation.

Restricted Hiring

When a firm implements a restricted hiring policy, it reduces the workforce by not replacing employees who




Reduced Hours

Reaction to a declining demand can also be made by reducing the total number of hours worked. Instead of

continuing a 40-hour week, management may decide to cut each employee’s time to 30 hours.

Early Retirement

Early retirement of some present employees is another means of reducing the supply of workers.


At times, the firm has no choice but to actually lay off part of its workforce.


Unemployment in the United States was at an all-time low in the summer of 2000. Faced with a shortage of

workers, many organizations had to intensify their efforts to recruit the necessary people to meet the needs

of the firm. Some actions that were taken included:

Creative Recruiting

A shortage of personnel often means that new approaches to recruiting must be used. The organization may

have to recruit in different geographical areas than in the past, explore new methods, and seek different

kinds of candidates.

Compensation Incentives

Firms competing for workers in a high-demand situation may have to rely on compensation incentives.

Premium pay is one obvious method. However, this approach may trigger a bidding war that the

organization cannot sustain for an extended period. More subtle forms of rewards may be required to

attract employees to a firm, such as four-day workweeks, flexible working hours, telecommuting, part-time

employment, and child care centers.

Training Programs

Special training programs may be needed to prepare previously unemployable individuals for positions with

a firm. Remedial education and skills training are two types of programs that may help attract individuals to

a particular company.

Different Selection Standards

Another approach for dealing with shortages of workers is the lowering of employment standards. Selection

criteria that screen out certain workers may have to be altered to ensure that enough people are available to

fill jobs. For instance, instead of desiring extensive work experience, a firm may be willing to hire an

inexperienced worker and train him or her to do the job.


Succession Planning: The process of ensuring that a qualified person is available to assume a managerial

position once the position is vacant.

Succession Development: It is the process of determining a comprehensive job profile of the key

positions and then ensuring that key prospects are properly developed to match these qualifications.

C. HR Hiring Process:

HR hiring process involves the activities that are required to make the workforce or staff available to fill and

keep filled different positions in the organization.

This process includes the following steps


It is the process of attracting individuals on a timely basis, in sufficient numbers and with appropriate

qualifications, and encouraging them to apply for jobs with an organization.




The process of making a “hire” or “no hire” decision regarding each applicant for a job


The process of orienting new employees to the organization or the unit in which they will be working

Today we will start discussing this hiring process with the detail discussion on first step that is Recruitment.


It is the process of attracting individuals on a timely basis, in sufficient numbers and with appropriate

qualifications, and encouraging them to apply for jobs with an organization.

a. Goals of Recruitment:

Mainly there are two recruitment goals

b. To attract qualified applicants

Recruiting process is used to create the pool of qualified applicants. By qualified applicants we mea those

applicants who are having abilities that are perfect match with the job requirements.

c. To discourage non qualified applicants.

Second goal of recruitment is to avoid nonqualified applicants. When recruiting is based upon careful

designing of the job disruption and job specification most of the applicants having irrelevant qualifications

are eliminated fro the list of potential applicants which makes recruiting process more effective and easier.

D. Constraints of Recruitment Process:

Different factors in internal or external environment can influence the effectiveness of recruiting process in

negative manner and can become hurdles in recruiting process. They mainly include:

I. Image of the Organization.

If employees believe that their employer deals with them fairly, the positive word-of-mouth support they

provide is of great value to the firm. It assists in establishing credibility with prospective employees.

Image of the organization is mainly assessed by its performance, salary, benefits provided by it potential

opportunities to excel and respect etc. If all these factors are good enough than the image of the

organization will be positive in the market that will help the organization to have reasonable number of

applicants ready to apply for then given job openings, But if the salary benefits provided by the

organizations are not compatible with the market there are no potential opportunities for the career

development and to excel in future than these factors will be contributing towards negative image of the

organization. This bad image is hurdle in acquiring good number of applicants through recruitment process

specially if any firm is having business in the declining industry and management is least bothered about the

welfare and wellbeing of the employees.

II. Attractiveness of the job

Attractiveness of the job mainly depends upon its contribution towards achievement of organizations

objectives, challenging assignments, its contribution in the career development of the job holder. Secondly

the benefits and salary associated to particular job also plays important role in defining the importance of

the job. There fore jobs having challenging assignments, career oriented in nature and having good

remuneration package can attract best applicants from the labor force available in the market or vice versa.

III. Government Influence

The recruitment process is influenced by the laws provided by the government. Organizations to be more

successful are required to work according to these laws.

IV. Labor Market Influence:

The recruitment process is influenced by labor market conditions. When the economy is growing rapidly

and unemployment levels are very low, recruiting is extremely difficult. However, when the economy is

stagnant and unemployment levels are high, organizations can obtain large applicant pool with very little




V. Recruiting Costs

Companies use to bear very high costs while performing the recruitment process especially when the

recruitment is external. Therefore organizations can perform this function only and only if they are having

sufficient resources to perform the recruitment process.

VI. Global Issues

When ever staffing function is performed at the international level or across the national boundaries beside

internal environment of organization polices of the host country regarding employment also influence the

recruitment process. They can include basic labor laws regarding quality of work life EEO, remuneration

packages, etc.

Diversity through Recruiting Efforts:

To offset the momentum of past discrimination in employment, firms must resort to additional recruitment

approaches. A recruitment program that is designed to specifically attract women and minorities is referred

to as affirmative recruitment. To ensure that an organization's recruitment program is nondiscriminatory,

the firm must analyze its recruitment procedures. Each individual who engages in recruitment should be

trained in the use of objective, job-related standards. With few exceptions, jobs must be open to all

individuals. When placing job orders with employment agencies, an organization should emphasize its

nondiscriminatory recruitment practices. Organizations engaged in affirmative recruitment should develop

contacts with minority, women's, and other community organizations.

E. Philosophy of the Recruitment:

Major decision in performing the recruitment process is selection of sources from the available sources

which are:

Internal Recruitment

External Recruitment.

Both of theses have pros and cons and to have the best pool of the applicant’s pool it is suggested that the

multiple approach should be used instead of depending upon any single sources

F. Ethical Issues in Recruitment:

• Performs recruiting and employment activities for the off-site location, providing qualified

candidates in a cost-effective and timely manner while ensuring adherence to the corporate job

posting procedure.

• Verifies that all job offers to internal and external candidates are within company policy and that

any unusual questions regarding employment are referred to the Manager in order to ensure fair

and equitable treatment of all job candidates.

Key Terms

Human resource planning (HRP): It is the process of systematically reviewing human resource

requirements to ensure that the required number of employees, with the required skills, is available when

they are needed.

Recruitment: It is the process of attracting individuals on a timely basis, in sufficient numbers and with

appropriate qualifications, and encouraging them to apply for jobs with an organization.

Job EvaluationIt is used to evaluate the importance of job by considering its contribution towards

achievements of the objectives of organization.

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