1. Personnel Planning and Recruiting5
Personnel Planning and Recruiting
This chapter explains the process of forecasting personnel requirements, discusses the pros and cons of methods used for recruiting job candidates, describes how to develop an application form, and explains how to use application forms to predict job performance.
The Internet has changed the face of recruiting, particularly in advertising for applicants. Employers can now reach more potential applicants in less time and at less expense. However, this tool has generated some challenges. Employers may get too many applicants, or fail to reach certain segments of the population.

2. Learning Objectives
Explain the main techniques used in employment planning and forecasting.
Explain and give examples for the need for effective recruiting.
Name and describe the main internal sources of candidates.
After studying this chapter, you will be able to:
1. Explain the main techniques used in employment planning and forecasting.
2. Explain and give examples for the need for effective recruiting.
3. Name and describe the main internal sources of candidates.

3. Learning Objectives
List and discuss the main outside sources of candidates.
Explain how to recruit a more diverse workforce.
Developing and Using Application Forms: Discuss practical guidelines for obtaining application information.
After studying this chapter, you will be able to:
4. List and discuss the main outside sources of candidates.
5. Explain how to recruit a more diverse workforce.
6. Developing and Using Application Forms: Discuss practical guidelines
for obtaining application information.

4. The Recruitment and Selection Process
Human Resources Management 12e Gary Dessler
The Recruitment and Selection Process
Decide what positions to fill through personnel planning and forecasting.
Build a candidate pool by recruiting internal or external candidates.
Have candidates complete application forms and undergo initial screening interviews.
Use selection tools to identify viable candidates.
Decide who to make an offer to, by having the supervisor and others interview the candidates.
Job analysis identifies the duties and human requirements for each of the company’s jobs. The next step is to decide how many of these jobs you need to fill, and to recruit and select employees for them.
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5. Human Resources Management 12e Gary Dessler
FIGURE 5–1 Steps in Recruitment and Selection Process
The recruitment and selection process is a series of hurdles aimed at selecting the best candidate for the job.
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6. Workforce Planning
The basic process of forecasting personnel needs is to forecast revenues first ,then estimate the size of the staff required to support this sales volume.
Managers must consider other strategic factors (projected turnover,productivity changes and financial resources).

7. Planning and Forecasting
Human Resources Management 12e Gary Dessler
Planning and Forecasting
Employment or Personnel Planning
The process of deciding what positions the firm will have to fill, and how to fill them.
Succession Planning
The process of deciding how to fill the company’s most important executive jobs.
What to Forecast?
Overall personnel needs
The supply of inside candidates
The supply of outside candidates
Employment (or personnel) planning. It embraces all future positions, from maintenance clerk to CEO. However, most firms call the process of deciding how to fill executive jobs succession planning.
Like all good plans, personnel plans require some forecasts or estimates, in this case, of three things: personnel needs, the supply of inside candidates, and the likely supply of outside candidates.
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8. Forecasting Personnel Needs ( labor demand)
Human Resources Management 12e Gary Dessler
Forecasting Personnel Needs ( labor demand)
Trend analysis
Ratio analysis
Forecasting Tools
Scatter plotting
Computerized
forecast
Forecasting Tools used to for projecting personnel needs. Forecasting Personnel Needs –Forecast revenues, and then estimate the size of the staff required to achieve this sales volume.
Trend analysis can provide an initial estimate of future staffing needs, but employment levels rarely depend just on the passage of time. Other factors (like changes in sales volume and productivity) also affect staffing needs.
Ratio analysis provides forecasts based on the historical ratio between (1) some causal factor (like sales volume) and (2) the number of employees required (such as number of salespeople).
A scatter plot shows graphically how two variables—such as sales and your firm’s staffing levels—are related. If they are, and then if you can forecast the business activity (like sales), you should also be able to estimate your personnel needs.
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9. Forecasting Personnel Needs
Human Resources Management 12e Gary Dessler
Forecasting Personnel Needs
Trend analysis can provide an initial estimate of future staffing needs, but employment levels rarely depend just on the passage of time. Other factors (like changes in sales volume and productivity) also affect staffing needs Definition: it means studying a firm’s employment levels over a period of years to predict future needs.
Ratio analysis a forecasting technique for determining future staff needs by using ratios between (1) some causal factor (like sales volume) and (2) the number of employees needed(such as number of salespeople).
Go back to definitions in the book
Those techniques are traditional techniques.
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10. Scatter plot shows graphically how two variables—such as sales and your firm’s staffing levels—are related. If they are, and then if you can forecast the business activity (like sales), you should also be able to estimate your personnel needs.

11. Drawbacks to Traditional Forecasting Techniques
Human Resources Management 12e Gary Dessler
Drawbacks to Traditional Forecasting Techniques
1. They generally focus on historical sales/personnel relationships and assume that
the firms existing activities will continue as is.
2. They tend to reward managers for adding employees , irrespective of the company’s strategic needs.
3. They tend to institutionalize existing ways of doing things, even in the face of change.
Managers obviously need to consider other factors too. These include projected turnover, decisions to upgrade (or downgrade) products or services, productivity changes, and financial resources. In summary using these techniques requires a heavy close of realism and common sence.
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12. Using Computers to Forecast Personnel Requirements
Human Resources Management 12e Gary Dessler
Using Computers to Forecast Personnel Requirements
Computerized Forecasts
Software that estimates and determines future staffing needs by:
Projecting sales, volume of production, and personnel required to maintain different volumes of output, using software packages.
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13. Computerized Forecasts- Cont’d
Enable the manager to build more variables into his or her personnel projections. Newer systems particularly rely on mathematically setting clear goals.
The use of software programs can enable employers to quickly translate projected productivity and sales levels into forecasts of personnel needs, while estimating how personnel requirements will be affected by various productivity and sales levels.
Whichever forecasting tool you use, managerial judgment should play a big role. It’s rare that any historical trend, ratio, or relationship will simply continue.
You will therefore have to modify the forecast based on subjective factors—such as the feeling that more employees will be quitting—you believe will be important.

14. Forecasting the Supply of Inside Candidates
Human Resources Management 12e Gary Dessler
Forecasting the Supply of Inside Candidates
Manual systems and replacement charts
Computerized skills inventories
Qualification Inventories
Knowing your staffing needs satisfies only half the staffing equation. Next, you have to estimate the likely supply of both inside and outside candidates. Most firms start with the inside candidates.
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15. Forecasting the Supply of Inside Candidates
Most firms start with inside candidates.
The main task here is determining which current employees might be qualified for the projected openings.

16. Qualifications 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.

17. Human Resources Management 12e Gary Dessler
Manual Systems and Replacement Charts – Simple manual devices can be used to keep inventories and development records to compile qualifications information on each employee. Personnel replacement charts show the present performance and promotability for each position’s potential replacement. Position replacement cards can also be created for each position to show possible replacements as well as their present performance, promotion potential, and training.
Department managers or owners of smaller firms often use manual devices to track employee qualifications. Thus a personnel inventory and development record form compiles qualifications information on each employee.
Personnel replacement charts:
Company records showing present performance and promotability of inside candidates for the most important decisions.
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18. Human Resources Management 12e Gary Dessler
FIGURE 5–4 Management Replacement Chart Showing Development Needs of Potential Future Divisional Vice Presidents
Figure 5-4 is a personnel replacement chart for some of a firm’s top positions. It shows the present performance and promotability for each position’s potential replacement.
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19. - Cont’d
2. Computerized Information Systems: are used to track the qualifications of hundreds or thousands of employees. The system can provide managers with a listing of candidates with specified qualifications after scanning the database.
Computerized skills inventory data typically include items like work experience codes, product knowledge, the employee’s level of familiarity with the employer’s product lines or services, the person’s industry experience, and formal education.

20. Keeping the information private
Human Resources Management 12e Gary Dessler
Keeping the information private
Ensuring the Security of HR Information
Control of HR information through access matrices
Access to records and employee privacy
Employers must balance an individual’s right to privacy while making HR information legitimately available to those in the firm who need it.
The employer should secure all its employee data. Much of the data is personal (such as Social Security numbers and illnesses). Legislation gives employees legal rights regarding who has access to information about them.
The employer should secure all its employee data. Much of the data is personal (such as Social Security numbers and illnesses). Legislation gives employees legal rights regarding who has access to information about them.
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21. Forecasting Outside Candidate Supply
Factors In Supply of Outside Candidates
General economic conditions
Expected unemployment rate

22. Developing an Action Plan to Match Projected Labor Supply and Labor Demand
Workforce planning should logically culminate in a workforce action plan. This lays out the employer s projected workforce demand supply gaps. The staffing plan should identify the positions to be filled, potential internal and external sources for these positions, the required training, development, and promotional activities moving people into the positions will entail, and the resources that implementing the staffing plan will require. Resources might include, for instance, advertising costs, recruiter fees, relocation costs, and travel and
interview expenses.

23. The Recruiting Yield Pyramid
is used by some employers to calculate the number of applicants they must generate to hire the required number of new employees.

24. Human Resources Management 12e Gary Dessler
FIGURE 5–6 Recruiting Yield Pyramid ●
50% ● ●
67% ● ● ●
75% ● ● ● ●
16% ● ● ● ● ● ●
Figure 5-6 illustrates an example of an employer’s use of a recruiting yield pyramid to calculate the number of applicants they must generate )produce ) to hire the required number of new employees.
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25. Human Resources Management 12e Gary Dessler
Effective Recruiting
Employee Recruiting:
Finding and/or attracting applicants for the employer’s open positions.
Why Recruiting is Important?
Recruiting is a more complex activity than most managers think it is.
Effective recruiting is increasingly important.
With the dramatic changes, recruiting is becoming more challenging , and there will soon be an undersupply of workers.
Assuming the company authorizes you to fill a position, the next step is to build up, through recruiting, an applicant pool.
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26. What Makes Recruiting a Challenge?
First, some recruiting methods are superior to others, depending on the type of job for which you are recruiting.
Second, the success you have recruiting depends on nonrecruitment issues and policies.
Third, employment law prescribes what you can and cannot do when recruiting.

27. Hiring better talent than your competitors more quickly will make important inroads in your marketplace.
The challenges to effective recruiting include the type of recruiting methods used, your company’s policies and employment law.
Finally, being organized and using experience and tracking systems to aid your decision-making will enable you to use the internet more effectively.

28. Internal Sources of Candidates
Using internal sources
Finding internal candidates
Rehiring
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29. Human Resources Management 12e Gary Dessler
Advantages
Disadvantages
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 strengthens tendency to maintain the status quo
Recruiting of current employees, or “hiring from within,” is often the best source of candidates. However, there are advantages and disadvantages to using internal candidates.
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30. Finding Internal Candidates
Human Resources Management 12e Gary Dessler
Finding Internal Candidates
Posting open job positions
Rehiring former employees
Hiring-from-Within Tasks
Succession planning (HRIS)
Finding Internal Candidates – To be effective, promotion from within requires using job posting, personnel records, and skill banks.
Hiring from within ideally relies on job posting and the firm’s skills inventories.
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31. Finding Internal Candidates- Cont’d
Job posting: means publicizing the open job to employees (usually by literally posting it on company intranets or bulletin boards). These postings list the job’s attributes, like qualifications, supervisor, work schedule, and pay rate. Qualifications skills banks: also play a role. For example, the database may reveal persons who have potential for further training or who have the right background for the open job. Rehiring: Rehiring former employees has its pros and cons. On the positive side, they are known quantities and are already familiar with the organization. But former employees may return with negative attitudes. Current employees may perceive that the way to get ahead is to leave and come back.

32. Succession Planning: the ongoing process of systematically identifying , assessing, and developing organizational leadership to enhance performance.
Succession planning entails three steps:
1- identify key needs.
2- develop inside candidates.
3- assess and choose those who will fill the key positions.

33. Outside Sources of Candidates
Human Resources Management 12e Gary Dessler
Outside Sources of Candidates
Locating Outside Candidates 1 6 3 2 7 8
Recruiting via the Internet
Executive Recruiters 4 9
Advertising
On Demand Recruiting Services (ODRS) 5
Employment Agencies
College Recruiting
Temp Agencies and Alternative Staffing
Referrals and Walk-ins
Firms can’t always get all the employees they need from their current staff, and sometimes they just don’t want to. This slide lists some of the sources that firms use to find outside candidates.
Offshoring/Outsourcing
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34. Recruiting via the Internet
Human Resources Management 12e Gary Dessler
Recruiting via the Internet
Advantages
Cost- efficient way to publicize job openings
More applicants attracted over a longer period , generating more responses more quickly.
Providing exposure for a longer time at less cost
Immediate applicant responses
Online prescreening of applicants
Automation of applicant tracking and evaluation
Disadvantages
Exclusion of older and minority workers
Unqualified applicants overload the system
Personal information privacy concerns of applicants
Internet recruiting is a cost-effective way to publicize openings; it generates more responses quicker and for a longer time at less cost than just about any other method. However, Internet recruiting can present problems such as discrimination, application overload, and privacy.
Disadvantages – Gathering applications online may exclude higher numbers of older applicants and certain minorities. An employer may also get too many applications because of the Web’s broad reach and speed.
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35. Advertising for Outside Candidates
Human Resources Management 12e Gary Dessler
Advertising for Outside Candidates
The Media Choice
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: specialized employees
Internet job sites: global labor markets
Constructing (Writing) Effective Ads
Many experienced advertisers use a four-point guide called AIDA (attention, interest, desire, action) to construct their ads.
While Web-based recruiting is rapidly replacing help wanted ads, a glance at almost any paper or business or professional magazine will confirm that print ads are still popular. To use help wanted ads successfully, employers have to address two issues: the advertising medium and the ad’s construction.
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36. Human Resources Management 12e Gary Dessler
Employment Agencies
Public agencies
Private agencies
Types of Employment Agencies
Nonprofit agencies
There are three main types of employment agencies: (1) public agencies operated by federal, state, or local governments; (2) agencies associated with nonprofit organizations; and (3) privately owned agencies.
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37. Human Resources Management 12e Gary Dessler
- Cont’d
Public and Nonprofit Agencies – Every state has a public, state-run employment service agency supported by the Department of Labor, in part through grants and other assistance, such as a nationwide computerized job bank. Many professional and technical societies, and public welfare agencies have units that try to help their members or people in special categories find jobs.
2. Private Agencies- charge fees for each applicant they place. Typically, market conditions determine whether the candidate or employer pays the fee.
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38. Why Use a Private Employment Agency?
Human Resources Management 12e Gary Dessler
Why Use a Private Employment Agency?
No HR department: firm lacks recruiting and screening capabilities to attract a pool of qualified applicants.
To fill a particular opening quickly.
To attract more minority or female applicants.
To reach currently employed individuals who are more comfortable dealing with agencies than competing companies.
To reduce internal time devoted to recruiting.
Private employment agencies are important sources of clerical, white-collar, and managerial personnel. They charge fees (set by state law and posted in their offices) for each applicant they place. Most are “fee-paid” jobs, in which the employer ( manager) pays the fee.
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39. Temp Agencies and Alternative Staffing
Human Resources Management 12e Gary Dessler
Temp Agencies and Alternative Staffing
Employers increasingly supplement their permanent workforces by hiring contingent or temporary workers, often through temporary help employment agencies. Also known as part-time or just-in-time workers, the contingent workforce is big and growing.
The contingent workforce isn’t limited to clerical or maintenance staff. It includes thousands of engineering, science, or management support occupations, such as temporary chief financial officers, human resource managers, and CEOs.
Employers can hire temp workers either through direct hires or through temporary staff agencies.
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40. Temp Agencies and Alternative Staffing
Human Resources Management 12e Gary Dessler
Temp Agencies and Alternative Staffing
Alternative Staffing
In-house contingent (casual, seasonal, or temporary) workers employed by the company, but on an explicit short-term basis.
The Use of nontraditional recruitment resources.
Know your Employment Law
Temporary workers like all workers have important legal rights. Temp workers can cause legal risks to the employer.
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41. Temp Agencies and Alternative Staffing
Human Resources Management 12e Gary Dessler
Temp Agencies and Alternative Staffing
Benefits of Temps / Advantages
Increased productivity—paid only when working. (Therefore, desire for ever-higher productivity also contributes to temp workers’ growing popularity.)
Allows “trial run” for prospective employees before hiring them as regular employees.
No recruitment, screening, and payroll administration costs. As a result , time and expenses are saved.
Costs of Temps / Disadvantages
Increased labor costs due to fees paid to temp agencies
Temp employees’ lack of commitment to the firm
Employers have long used “temps” to fill in for permanent employees who were out sick or on vacation.
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42. Offshoring and Outsourcing Jobs
Outsourcing means having outside vendors supply services (such as benefits management, market research, or manufacturing) that the firm’s own employees previously did in-house.
Offshoring is a narrower term. It means having outside vendors abroad supply services that the firm’s own employees previously did in-house.
Outsourcing and offshoring are perhaps the most extreme examples of alternative staffing. Rather than bringing people in to do the firm’s jobs, outsourcing and offshoring send the jobs out.
Offshoring/Outsourcing White Collar and Other Jobs – Hiring workers abroad is becoming more and more common. There are several specific issues that the HR manager should keep in mind when considering this option.

43. Executive Recruitment
Human Resources Management 12e Gary Dessler
Executive Recruitment
Executive Recruiters (Headhunters)
They are special employment agencies retained by employers to seek out top-management talent for their clients. For executive positions, headhunters may be your only source of candidates. The employer always pays the fees.
Advantages and Disadvantages:
Recruiters can be useful and can save a manager’s time, but they can be more interested in persuading you to hire a candidate than in finding the one who will really do the job.
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44. On Demand Recruiting Services (ODRS)
This service provides short-term specialized recruiting to support specific projects without the expense of retaining traditional search firms. Basically, recruiters get paid by the hour or project.

45. Sources of Outside Applicants
Human Resources Management 12e Gary Dessler
Sources of Outside Applicants
College Recruiting
Employee
referrals
Walk-ins
Other Sources of Outside Applicants
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46. Human Resources Management 12e Gary Dessler
College Recruiting
Process : it involves sending employers’ representatives to college campuses to prescreen applicants and create an applicant pool of management trainees, promotable candidates, and professional and technical employees.
On-campus recruiting goals
To determine if the candidate is worthy of further consideration
To attract good candidates
On-site visits
(They are usually extended to good candidates.)
Invitation letters
Assigned hosts
Information packages
Planned interviews
Timely employment offer
Follow-up
Internships
They are a recruiting approach that can be a win-win situation for the employer and the student. For employers, interns can make useful contributions while being evaluated for possible full-time employment. Students, are able to work on business skills, check out potential employers, and learn more about their likes and dislikes.
Recruiting Goals
The school’s reputation and the performance of previous hires from that source affect school selection.
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47. Employee Referrals and Walk-ins
Human Resources Management 12e Gary Dessler
Employee Referrals and Walk-ins
Employee Referrals
They are alternatives for identifying potential candidates. Referrals tend to generate high quality candidates.
Referring employees become stakeholders.
Referral is a cost-effective recruitment program.
Referral can speed up diversifying the workforce.
Relying on referrals may be discriminatory.
Walk-ins
Walk-in candidates may be attracted by posting a “Help Wanted” sign.
Seek employment through a personal direct approach to the employer.
Employee referrals and walk-ins are both viable sources of applicants. Employee referral campaigns are an important recruiting option. A firm may post announcements of openings and requests for referrals on its Web site, bulletin, and/or wallboards.
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48. Recruiting A More Diverse Workforce
Human Resources Management 12e Gary Dessler
Recruiting A More Diverse Workforce
Single parents
Older workers
Welfare-to-work
Minorities and women
The disabled
Recruiting a diverse workforce isn’t just socially responsible. Given globalization and the rapid increase in minority, older worker, and women candidates, it is a necessity.
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49. Recruiting A More Diverse Workforce
Human Resources Management 12e Gary Dessler
Recruiting A More Diverse Workforce
Single Parents – Formulating an intelligent program for attracting single parents should begin with understanding the considerable problems they often encounter in balancing work and family life.
Older Workers – With the entire population aging, many employers are encouraging retirement-age employees not to leave, or are actively recruiting employees who are at or beyond retirement age by making their companies an attractive place in which older workers can work. An image of older worker-friendliness and flexibility in scheduling are vital.
Recruiting Minorities and Women – requires employers to tailor their way of thinking and to design HR practices that make their firms attractive to them.
B . The New Workforce – Supervising older workers, especially when the manager is years younger can be a challenge. Maintaining authority and earning respect through hard work and getting to know employees are some of the keys to success in this situation.
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50. Human Resources Management 12e Gary Dessler
- Cont’d
D. Welfare-to-Work – The Federal Personal Responsibility and Welfare Reconciliation Act prompted many employers to implement programs to attract and assimilate former welfare recipients.
E. The Disabled – Employers can do several things to tap into this huge potential workforce. The Department of Labor’s Office of Disability Employment Policy offers several programs, and all states have local agencies that provide placement services and other recruitment and training tools. 
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51. Developing and Using Application Forms
Human Resources Management 12e Gary Dessler
Developing and Using Application Forms
Purpose of Applications Forms – Application forms are a good way to quickly collect verifiable and fairly accurate historical data from the candidate.
Using Application Forms to Predict Job Performance – Some firms use application forms to predict which candidates will be successful and which will not by conducting statistical studies to find the relationship between (1) responses on the application form and (2) measures of success on the job.
Know Your Employment Law: Mandatory Arbitration – Though mandatory alternative dispute resolution clauses are generally enforceable, management should remember that individual agreements can be struck down by the courts, based on the merits of the agreement. Such clauses can inhibit recruiting, since they may have a negative impact on image.
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52. Developing and Using Application Forms
Human Resources Management 12e Gary Dessler
Developing and Using Application Forms
Applicant’s education and experience
Applicant’s prior progress and growth
Applicant’s employment stability
Uses of Application Form Information
Applicant’s likelihood of success
With a pool of applicants, the prescreening process can begin. The application form is usually the first step in this process (some firms first require a brief, prescreening interview or online test). A filled-in application provides four types of information listed in the slide.
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53. Human Resources Management 12e Gary Dessler
K E Y T E R M S
employment (or personnel) planning
trend analysis
ratio analysis
scatter plot
qualifications (or skills) inventories
personnel replacement charts
position replacement card
employee recruiting
recruiting yield pyramid
job posting
succession planning
applicant tracking systems
alternative staffing
on-demand recruiting services (ODRS)
college recruiting
application form
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