Chapter 4 Planning and Recruiting
1. Human Resource Planning
2. Recruiting
Personnel Planning and
Behavioral Objectives
When you finish studying this chapter, you
should be able to:
Explain the process of forecasting personnel
Discuss the pros and cons of eight methods
uses for recruiting job candidates.
Describe how to develop an application form.
Explain how to use application forms to
predict job performance.
Chapter Outline
 The
 Employment
 Recruiting Job Candidates
 Developing and Using Application
Key words
trend analysis
Study of a firm’s past employment needs
over a period of years to predict future
ratio analysis
A forecasting technique for determining
future staff needs by using ratios between
sales volume and number of employees
Key words
scatter plot
A graphical method used to help identify the
relationship between two variables.
computerized forecast
The determination of future staff needs by
projecting a firm’s sales, volume of production,
and personnel required to maintain this
volume of output, using computers and
software packages.
Key words
qualifications inventories
Manual or computerized systematic records listing
employees’ education, career and development
interests, languages, special skills, and so on to be
used in forecasting inside candidates for promotion.
Personnel replacement charts
Company records showing present performance and
promotability of inside candidates for the most
important positions.
Key words
position replacement card
A card prepared for each position in a
company to show possible replacement
candidates and their qualifications.
job posting
Publicizing an open job to employees (often
by literally posting it on bulletin boards) and
listing its attributes, like qualifications,
supervisor, working schedule and pay rate.
Key words
occupational market conditions
The Bureau of labor Statistics of the U.S.
Department of Labor publishes projections of
labor supply and demand for various
occupations, as do other agencies.
application form
The form that provides information
education, prior work record, and skills.
1. Human resource planning
(1) Importance of HR planning
(2) Internal Needs Predictions
(3) Internal Supply Analysis
(4) External Sources of Supply
(5) Action Plans
(1) Importance of HR Planning
A. Definition:
 Hr planning is to make predictions of future
needs of the organization according to the
organization goals and develop action plans
for meeting the needs in the future.
 HR Planning is part of the organization’s
strategic planning.
B. Objectives:
 To ensure the attainment of organization goals.
Meeting future HR needs—critical to success.
 To improve the efficiency of human resources.
Rational use of people—recruitment and
 To motivate employees.
Meeting the needs of self-actualization-training
and development.
C. Type and features
 Types of HR Planning:
– Long-term plan: 5years and above.
– Mid-term plan: 2 to 4 years.
– Short-term plan: 1 year.
 Features of HR planning:
– Consistency: consistent to organization goals.
– Continuity: between long-term, mid-term and
– Flexibility: adapting according to change.
– Accuracy: be as close as possible to reality.
(2) Internal Needs Predictions
A. What to predict
 Quantity of employees needed in the
How many people do we need?
 Quality of employees needed in the future.
What will be the requirement of people?
 Skill variety and managerial development.
What kind of skills and managerial
expertise do we need?
B. Methods of internal prediction
 Bottom-up
To make predictions of future needs through
the hierarchical structure of the organization.
 Trend Analysis/Ration Analysis:
To study a factor that affects employment over
time and make prediction on that basis.
 Multiple Factor Analysis:
To study a number of factors that affect HR
changes in the organization in the past 5 to
(3) Internal Supply Analysis
 Personnel files:
Personnel files are records of the employees’
education, training, performance, promotion,
 Job posting:
publicize the open job to employees and list
its attributes like qualifications, working
schedule and pay rate.
 Succession planning:
To identify candidates for managerial
(4) External Sources of Supply
Labor market.
Employment service agencies.
Schools and colleges.
Referrals and walk-ins.
Head-hunting companies.
(5) Action Plans-for shortage (A)
 Overtime: for cyclical or short-term needs.
 Job rotation: balance needs of different
sectors and develop managerial talents.
 Training and development: for long-term
 Reemployment: employ retired employees
or extend their time of services.
 Recruiting temporary workers: for seasonal
 External recruitment: for needs that cannot
be satisfied internally.
(5) Action Plans—for surplus (B)
Job rotation: to move surplus labor internally.
Off-job training: to prepare for future needs.
Expand production: to make use of surplus workforce.
Reduce working time/job sharing; to improve quality of
work life.
 Layoff: to ask employees to leave temporarily.
 Early retirement: to allow employees retire earlier.
 Vocational training: to prepare employees for new jobs.
(5) Action Plans—factors to be
considered (C)
In developing action plans, we need to consider
the following factors:
 Organization goals and social commitment.
 Employee motivation and loyalty.
 Cost and benefits.
2. Recruiting
(1) Objectives and goals
(2) Personal job selection
(3) Occupational theories
(4) Procedures of recruiting
(5) Methods of recruiting
(1)Objectives and goals
A. What is recruiting: recruiting is to build an
applicants’ pool for future needs.
B. Importance of recruiting:
 Meeting organization goals.
 Meeting employee expectations (internal
 Creating a good image of the organization
(external recruiting)
(2) Personal job selection
A. Two selection areas:
 Occupation: What kind of a job I want to
 Organization: What kind of organization I
want to work in?
B. Factors affecting personal a job selection:
 Ability
 Needs
 Interest
 Personality
(4) Procedures of recruiting
A. Develop recruiting plans and standards.
 Recruiting plans: what kind of workers and how
 Standards: basic requirement for the job posted.
B. Conduct advertising and promoting:
 Advertising: let the public know your needs.
 Promoting: let the public know your image.
C. Conduct recruiting.
D. Evaluate the results of recruiting: cost/benefits.
(5) Methods of recruiting
A. Internal recruiting:
 Job posting on billboard or company magazines.
 Grape-line or informal communication.
B. External recruiting:
 Labor market.
 Employment service agencies.
 Schools and colleges.
 Referrals and walk-ins.
 Recruiting on Internet.
 Head-hunting companies.

Unit 4 Planning and Recruiting