OBE 153 - Chapter 5: Personnel Planning and Recruiting


The Recruitment and Selection Process:


Decide what positions you’ll have to fill through personnel planning and forecasting.


Build a pool of candidates for these jobs by recruiting internal or external candidates.


Have candidates complete application forms and perhaps undergo an initial screening interview.


Use selection techniques like tests, background investigations, and physical exams to identify viable candidates.


Decide who to make an offer to, by having the supervisor and perhaps others on the team interview the candidates.



Steps in Recruitment and Selection Process


Planning and Forecasting

ØEmployment or personnel planning

The process of deciding what positions the firm will have to fill, and how to fill them.

ØSuccession planning

The process of deciding how to fill the company’s most important executive jobs.

ØWhat to forecast?

Overall personnel needs

The supply of inside candidates

The supply of outside candidates


Linking Employer’s Strategy to Plans

Forecasting Personnel Needs

ØTrend analysis

The study of a firm’s past employment needs over a period of years to predict future needs.

ØRatio analysis

A forecasting technique for determining future staff needs by using ratios between a causal factor and the number of employees needed.

Assumes that the relationship between the causal factor and staffing needs is constant



ØScatter plot

A graphical method used to help identify the relationship between two variables.

Determining the Relationship Between
Hospital Size and Number of Nurses

Drawbacks to Scatter Plots


They focus on projections and historical relationships, and assume that the firm’s existing structure and activities will continue into the future.


They generally do not consider the impact the company’s strategic initiatives may have on future staffing levels.


They tend to support compensation plans that reward managers for managing ever-larger staffs, and will not uncover managers who expand their staffs irrespective of strategic needs.


They tend to “bake in” the nonproductive idea that increases in staffs are inevitable.


They tend to validate and institutionalize existing planning processes and ways of doing things, even in the face of rapid change.


Using Computers to Forecast Personnel Requirements

ØComputerized forecasts

The use software packages to determine of future staff needs by projecting sales, volume of production, and personnel required to maintain a volume of output.

Generates figures on average staff levels required to meet product demands, as well as forecasts for direct labor, indirect staff, and exempt staff.

Typical metrics: direct labor hours required to produce one unit of product (a measure of productivity), and three sales projections—minimum, maximum, and probable.


Forecasting the Supply of Inside Candidates

ØQualifications inventories

Manual or computerized records listing employees’ education, career and development interests, languages, special skills, and so on, to be used in selecting inside candidates for promotion.


Manual Systems and Replacement Charts

ØPersonnel replacement charts

Company records showing present performance and promotability of inside candidates for the most important positions.

ØPosition replacement card

A card prepared for each position in a company to show possible replacement candidates and their qualifications.


Management Replacement Chart Showing Development Needs of Future Divisional Vice President


Computerized Information Systems

ØHuman Resource Information System (HRIS)

Computerized inventory of information that can be accessed to determine employees’ background, experience, and skills that may include:

Work experience codes

Product or service knowledge

Industry experience 

Formal education


The Matter of Privacy of HR Information

ØThe need to ensure the security of HR information

There is a lot of HR information to keep secure.

Control of HR information can be established through the use of access matrices that limit users.

Legal considerations: The Federal Privacy Act of 1974 gives employees rights regarding who has access to information about their work history and job performance.


Forecasting the Supply of Outside Candidates

ØFactors impacting the supply of outside candidates

General economic conditions

Expected unemployment rate

ØSources of information

Periodic forecasts in business publications

Online economic projections

U.S. Congressional Budget Office (CBO)

Bureau of Labor Statistics

U.S. Department of Labor: O*Net

Other federal agencies


Effective Recruiting


ØExternal factors affecting recruiting:

Looming undersupply of workers

Lessening of the trend in outsourcing of jobs

Increasingly fewer “qualified” candidates

ØInternal factors affecting recruiting:

The consistency of the firm’s recruitment efforts with its strategic goals

The available resources, types of jobs to be recruited and choice of recruiting methods

Nonrecruitment HR issues and policies

Line and staff coordination and cooperation


ØAdvantages of centralizing recruitment

Strengthens employment brand

Ease in applying strategic principles

Reduces duplication of HR activiites

Reduces the cost of new HR technologies

Builds teams of HR experts

Provides for better measurement of HR performance

Allows for the sharing of applicant pools

Measuring Recruiting Effectiveness

ØWhat to measure and how to measure

How many qualified applicants were attracted from each recruitment source?

Assessing both the quantity and the quality of the applicants produced by a source.

ØHigh performance recruiting

Applying best-practices management techniques to recruiting.

Using a benchmarks-oriented approach to analyzing and measuring the effectiveness of recruiting efforts such as employee referrals.


Internal Sources of Candidates: Hiring from Within


Foreknowledge of candidates’ strengths and weaknesses

More accurate view of candidate’s skills

Candidates have a stronger commitment to the company

Increases employee morale

Less training and orientation required


Failed applicants become discontented

Time wasted interviewing inside candidates who will not be considered

Inbreeding of the status quo


Finding Internal Candidates

ØJob posting

Publicizing an open job to employees (often by literally posting it on bulletin boards) and listing its attributes.

ØRehiring former employees


They are known quantities.

They know the firm and its culture.


They may have less-than positive attitudes.

Rehiring may sent the wrong message to current employees about how to get ahead.


ØSuccession planning

The process of ensuring a suitable supply of successors for current and future senior or key jobs.

ØSuccession planning steps:

Identifying and analyzing key jobs.

Creating and assessing candidates.

Selecting those who will fill the key positions.


Outside Sources of Candidates


The Media: selection of the best medium depends on the positions for which the firm is recruiting.

Newspapers (local and specific labor markets)

Trade and professional journals

Internet job sites

Marketing programs

ØConstructing an effective ad

Wording related to job interest factors should evoke the applicant’s attention, interest, desire, and action (AIDA) and create a positive impression of the firm.



ØTypes of employment agencies:

Public agencies operated by federal, state, or local governments

Agencies associated with nonprofit organizations

Privately owned agencies


ØReasons for using a private employment agency:

When a firm doesn’t have an HR department and is not geared to doing recruiting and screening.

The firm has found it difficult in the past to generate a pool of qualified applicants.

The firm must fill a particular opening quickly.

There is a perceived need to attract a greater number of minority or female applicants.

The firm wants to reach currently employed individuals, who might feel more comfortable dealing with agencies than with competing companies.

The firm wants to cut down on the time it’s devoting to recruiting.


ØAvoiding problems with employment agencies:

Give the agency an accurate and complete job description.

Make sure tests, application blanks, and interviews are part of the agency’s selection process.

Periodically review data on candidates accepted or rejected by your firm, and by the agency. Check on the effectiveness and fairness of the agency’s screening process.

Screen the agency. Check with other managers or HR people to find out which agencies have been the most effective at filling the sorts of positions needed to be filled.

Review the Internet and a few back issues of the Sunday classified ads to discover the agencies that handle the positions to be filled.


Temp Agencies and Alternative Staffing

ØBenefits of Temps

Paid only when working

More productive

No recruitment, screening, and payroll administration costs

ØCosts of Temps

Fees paid to temp agencies

Lack of commitment to firm


Concerns of Temp Employees

ØTreatment by employers in a dehumanizing, impersonal, and ultimately discouraging way.

ØInsecurity about their employment and pessimistic about the future.

ØWorry about their lack of insurance and pension benefits.

ØBeing misled about their job assignments and in particular about whether temporary assignments were likely to become full-time positions.

ØBeing “underemployed” (particularly those trying to return to the full-time labor market).

ØIn general they were angry toward the corporate world and its values; participants repeatedly expressed feelings of alienation and disenchantment.


Working with a Temp Agency

ØInvoicing. Get a sample copy of the agency’s invoice. Make sure it fits your company’s needs.

ØTime sheets. With temps, the time sheet is not just a verification of hours worked. Once the worker’s supervisor signs it, it’s usually an agreement to pay the agency’s fees.

ØTemp-to-perm policy. What is the policy if the client wants to hire one of the agency’s temps as a permanent employee?

ØRecruitment of and benefits for temp employees. Find out how the agency plans to recruit what sorts of benefits it pays.

ØDress code. Specify the attire at each of your offices or plants.

ØEqual employment opportunity statement. Get a statement from the agency that it is not discriminating when filling temp orders.

ØJob description information. Have a procedure whereby you can ensure the agency understands the job to be filled and the sort of person you want to fill it.


Offshoring/Outsourcing White-Collar and Other Jobs


ØSpecific issues in outsourcing jobs abroad

Political and military instability

Likelihood of cultural misunderstandings

Customers’ security and privacy concerns

Foreign contracts, liability, and legal concerns

Special training of foreign employees

Costs associated with companies supplying foreign workers


ØExecutive recruiters (headhunters)

Special employment agencies retained by employers to seek out top-management talent for their clients.

Contingent-based recruiters collect a fee for their services when a successful hire is completed.

Retained executive searchers are paid regardless of the outcome of the recruitment process.

Internet technology and specialization trends are changing how candidates are attracted and how searches are conducted.


Guidelines for Choosing a Recruiter

ØMake sure the firm is capable of conducting a thorough search.

ØMeet the individual who will actually handle your assignment.

ØAsk how much the search firm charges.


ØOn demand recruiting services (ODRS)

A service that provides short-term specialized recruiting to support specific projects without the expense of retaining traditional search firms.


ØCollege recruiting

Recruiting goals

To determine if the candidate is worthy of further consideration

To attract good candidates

On-site visits

Invitation letters

Assigned hosts

Information package

Planned interviews

Timely employment offer




ØEmployee referrals

Applicants who are referred to the organization by current employees

Referring employees become stakeholders.

Referral is a cost-effective recruitment program.

Referral can speed up diversifying the workforce


Direct applicants who seek employment with or without encouragement from other sources.

Courteous treatment of any applicant is a good business practice.


ØRecruiting via the Internet

More firms and applicants are utilizing the Internet in the job search process.

ØAdvantages of Internet recruiting

Cost-effective way to publicize job openings

More applicants attracted over a longer period

Immediate applicant responses

Online prescreening of applicants

Links to other job search sites

Automation of applicant tracking and evaluation


Issues in Recruiting a More Diverse Workforce

ØSingle parents

Providing work schedule flexibility.

ØOlder workers

Revising polices that make it difficult or unattractive for older workers to remain employed.

ØRecruiting minorities and women

Understanding recruitment barriers.

Formulating recruitment plans.

Instituting specific day-to-day programs.



Developing pre-training programs to overcome difficulties in hiring and assimilating persons previously on welfare.

ØThe disabled

Developing resources and policies to recruit and integrate disable persons into the workforce.


Developing and Using Application Forms


ØApplication form

The form that provides information on education, prior work record, and skills.

ØUses of information from applications

Judgments about the applicant’s educational and experience qualifications

Conclusions about the applicant’s previous progress and growth

Indications of the applicant’s employment stability

Predictions about which candidate is likely to succeed on the job