Unit 2

•HRP
•Recruitment

•Selection
MEANING OF HRP

 HRP involves forecasting personnel needs,

accessing personnel supply and matching the
demand supply factors through personnel related
programmes. The
planning process is influenced by the environment
of business and by overall organizational
objectives.
 Human Resource planning translate the
organization objectives and plans into the number
of workers needed to meet these objectives. In
the absence of HRP, estimation of an organization
human resource need is reduced, to more
guesswork.
HRP ALSO HELPS IN THE FOLLOWING WAYS:
 Allows your business’ strategic plan to be carried
out.
 Reflects the emphasis on people in your Mission
Statement.
 Focuses the team on what needs to be
accomplished, how it will be accomplished, within
what budgets and timeframe.
 Helps to identify critical HR Gaps and how the
organization will address them.
 Results in a more disciplined approach to the
management of the organization’s most critical
resource – its people across your management
teams.
 Enables you to think through the options and
OBJECTIVES OF HRP:

 (a) Future manpower

requirements : Human Resource planning
help in determining the future manpower
requirements. In the absence of proper
planning, an organization may face
problems related to overstaffing and under-
staffing. This can be avoided through HRP.
 (b) Adjusting to change : Factors like
competition, technology, government
policies, etc. generate changes in job
contents, skill requirments, number and
type of personnel, etc. Such changes can be
effectively tackled through HRP. ‘
 (c) Creating talented personnel : The present
day’s job are becoming more complex and therefore
demand exceptional intellectual skills. While the
existing staff becomes redundant, the HR manager
has to attract and retain qualified and skilled
personnel. He is also required to deal with issues
such as career development, succession planning,
etc. HRP is an answer to all such questions.
 (d) Protection of weaker sections : An HR
manager has to ensure that
sufficient representation is given to candidates from
weaker sections, physically handicapped and
socially and politically oppressed citizens. A proper
and realistic human resource plain is needed to
ensure equal employment and promotional
appointments to such groups.
 (e) Execution of personnel
functions: HRP provides valuable and
timely information for desiging and
execution of personnel functions like
recruitment, selection, transfers,
promotions, layoffs, training and
development and performance appraisal.
 (f) Human assets : Every organization
makes heavy investment in its human
resource. This calls for effective use of
the available skills and abilities. In the
light of this increasing investment in
huamn resource, HRP becomes
indispensable.
 (g) Breaking the resistance to
change: It is a known fact the employees
resist change. The resistance is due to
family attachments, fear of failure to cope
with new jobs, new environment, etc. The
organization can no longer move its
employees anywhere and any time it
wants. The only way out of this problem is
planning.
 (h) Reduction in personnel costs :HRP
helps the organization to anticipate
imbalances in HR. This, in turn, facilitates
reduction in personnel costs.
 (i) Managerial development: HRP
faciliates planning for future needs.
This helps in better planning of
assignments to develop managers and
to ensure that the organization has a
steady supply of experienced and
skilled employees.
 (j) International strategies : Global
operations are becoming very common.
International expansion strategies are
not possible without HRP. -it facilitates
the process of meeting staffing needs.
FACTORS AFFECTING HUMAN RESOURCE PLANNING
 Type and Strategy of Organization:
The type of organization is an important consideration
because it deter­mines the production processes
involved, number and type of staff needed, and the
supervisory and managerial personnel required.
Manufacturing organizations are more complex in this
respect than those that render services.
The strategic plan of the organization defines the
organization’s HR needs. For example, a strategy of
organic growth means that additional employees must
be hired. Acquisitions or mergers, on the other hand,
probably mean that the organization will need to plan
for layoffs, since mergers tend to create, duplicate or
overlapping positions that can be handled more
efficiently with fewer employees.
 Organizational Growth Cycles and
Planning:
The stage of an organization’s growth can
have considerable influence on human
resource planning. Need for planning is felt
when the organization enters the growth
stage. HR forecasting becomes essential.
Internal development of people also begins to
receive attention in order to keep up with the
growth. A mature organization experiences
less flexibility and variability. Growth slows
down. Finally, in the declining stage, human
resource planning takes a different focus.
Planning is done for layoff, retrenchment and
retirement.
 Environmental Uncertainties
HR managers rarely have the privilege of
operating in a stable and predictable
environment. Political, social and economic
changes affect all organizations. Personnel
planners deal with environmental uncertainties
by carefully formulating recruitment, selection,
and training and development policies and
programmes. Balancing mechanisms are built
into the HRM programme through succession
planning, promotion channels, layoffs,
flexitime, job sharing, retirement, VRS and
other personnel related arrangements.
 Time Horizons
Yet another major factor affecting personnel
planning is the time horizon. A plan cannot be for
too long on a time horizon as the operating
environment itself may undergo charges. On one
hand, there are short-term plans spanning six
months to one year. On the other hand, there are
long-term plans -which spread over three to twenty
years. The exact time span, however, depends on
the degree of uncertainty prevailing in an
organization’s environment. Plans for companies
operating in an unstable environment, computers
for example, must be for a short period. Plans for
others where environment is fairly stable, for
example a university plan, may be long-term. In
general, the greater the uncertainty, the shorter
the plan’s time horizon and vice-versa.
 Type and Quality of Information:
The information used to forecast personnel needs
originates from a multitude of sources. A major issue in
personnel planning is the type of information which
should be used in making forecasts.
Closely related to the type of information is the quality
of data used. The quality and accuracy of information
depend upon the clarity with which the organizational
decision makers have defined their strategy,
organizational structure, budgets, production schedules
and so forth. In addition, the HR department must
maintain well-developed job-analysis information and
HR information systems (HRIS) that provide accurate
and timely data. Generally speaking, organizations
operating in stable environments are in a better position
to obtain comprehensive, timely and accurate
information because of longer planning horizons, clearer
definition of strategy and objectives, and fewer
 Labor Market:
Labor market comprises people with skills and
abilities that can be tapped as and when the need
arises. Thanks to the mushrooming of educational,
professional and technical institutions adequately
trained human resource is always available on the
market. Nevertheless, shortages do occur. For
example, the Confederation of Indian Industry (CII)
estimates that by 2015, India will be requiring 30
million additional skilled workers in sectors such
as health care, banking and financial services,
retail, auto and construction. It is doubtful whether
so many skilled workers would be available in the
country.
HRP PROCESS
 Environmental Scanning:
 This refers to the systematic
monitoring of the internal and external
actors influencing the organization.
 Internal factors include: companies
policies,budget, organizational
structure, production level etc.
 External factors include: economic
factors, technological changes,
demographic changes, legal and
political systems etc.
 Organizational Objectives and Policies:
 The next step in Human Resource
Planning is to analyze the objectives
and strategic plans of the company.
Plans concerned with the technology,
production, marketing, finance,
expansion and diversification give an
idea related to the future work
activities. Once this is clear the HR
department can take a decision about
utilization of existing human resources
and further estimate the new
manpower requirement.
 HR Demand Forecast:
 Demand forecasting is the process of estimating the
number and type of personnel required in future.
The basis of forecast must be the annual budget
and the plans of the company translated into
activity levels for each function and department.
The demand for human resources keeps changing.
This demand keeps on varying due to change in
production technology, process, make or buy
decisions, behavior patterns, control systems etc.
and demand forecasting helps in making projections
for new positions to be created and vacancies
arising in current manpower. Forecasting techniques
differ for different organization. Organizations
generally follow techniques like managerial
judgement, Ration Trend Analysis, Regression
Analysis, Work Study Techniques, Delphi Techniques
 HR Supply Forecast:
 After forecasting human resource
demand the next step in human
resource planning is to forecast supply
of human resources. The purpose of HR
supply is to deal with the quantity and
quality of the people required and
available. The supply analysis covers:
 Existing human resources.
 Internal sources of supply.
 External sources of supply.
 HR Programming:
 Once the demand and supply forecasts
of human resources in an organization
is completed the HR manager
compares the two forecasts. The
demand and supply analysis must be
reconciled or balanced in order that
vacancies are filled by the right
employees at the right time. This helps
the HR manager to take further actions
with reference allocation of Human
Resources in effective way.
 HR Plan Implementation:
 Implementation requires converting an
HR plan into action. A series of action
programmes are initiated as a part of
HR plan implementation. Some such
programmes include recruitment,
selection and placement, training and
development, retraining and
redeployment, retention plan,
succession planning etc.
 Control and Evaluation:
 Control and evaluation is the final phase in
human resource planning process. Once the
action plans are implemented there is a need
to review those plans and monitor them
against the set standards. After the plans and
policies are monitored it will help in revealing
out the deficiencies, if any. So, corrective
measures can be adopted to remove those
deficiencies and control the implementation
of action plans in right direction. Evaluation
and control needs to be followed time to time
as in changing business environment action
plans need to be modified accordingly.
 At the end two possibilities may occur
 Surplus: restrict hiring, reduced hours,
layoffs VRS etc
 Shortage: recruitment and selection
RECRUITMENT
 Recruitment is an integral part of the HR
activities in any organization. It’s a process
of attracting a pool of applicants for the
position in the organization.
Recruitment refers to the process of
attracting, screening, and selecting
qualified people for a job at
an organization or firm. It involves attracting
and obtaining as many applications as
possible from eligible job seekers.
DEFINITION OF RECRUITMENT
 According to Dale Yoder, “Recruitment is a process to
discover the sources of manpower to meet the
requirements of the staffing schedule and to employ
effective measures for attracting that man­power in
adequate numbers to facilitate effective selection of
an efficient working force”.
 In the words of Werther and Davis, “Recruitment is
the process of finding and attracting capable
applicants for employment. The process begins when
new recruits are sought and ends when their
applications are submitted. The result is a pool of
applicants from which new employees are selected”
FACTORS AFFECTING RECRUITMENT:
 These are broadly classified into two categories:
Internal Factors:
1. Recruitment policy.

2. HRP

3. Size of the firm

4. Costs involved in recruitment

5. Growth and expansion

External Factors:
6. Supply and demand

7. Labour market

8. Image/ Goodwill of the organization.

9. Political-Social- Legal Environment.

10. Unemployment Rate.

11. Competitors.
 Internal factors:
1. Recruitment Policy
The recruitment policy of the organization i.e. recruiting
from internal sources and external also affect the
recruitment process. The recruitment policy of an
organization determines the destinations or enlistment
and gives a structure to usage of recruitment program.
 Factors Affecting Recruitment Policy

 Need of the organization.

 Organizational objectives

 Preferred sources of recruitment.

 Government policies on reservations.

 Personnel policies of the organization and its competitors.

 Recruitment costs and financial implications.

2. Human Resource Planning

 Effective human resource process and procedure helps in

fixing the loops present in the existing manpower of the

organization. This also helps in filter the number of
3. Size of the Organization
 The size of the organization affects

the recruitment process. If the organization is

planning to increase its operations and expand
its business, it will think of hiring more
personnel, which will handle its operations.
4. Cost involved in recruitment
 Recruitment process also counts the cost to the

employer, that's why organizations try to

employ/outsource the source of
recruitment which will be cost effective to the
organization for each candidate.
5. Growth and Expansion
Organization will utilize or consider utilizing
more work force in the event that it is growing
its operations.
 External Factors:
1. Supply and Demand
 The availability of manpower both

within and outside the organization is

an essential factor in the recruitment
process.
2. Labour Market
 Labor market conditions in a local area

is important factor in recruitment.

3.Goodwill / Image of the
organization
 The companies image and goodwill also
4. Political-Social- Legal Environment
 The political, social and legal framework of society

impacts the recruitment policies of the organization.

There is strong case for giving preference to people
hailing from less-advantage sections of the society.
5. Unemployment Rate
 If unemployment rate is high in a given area the
companies recruitment process may be simple and
viceversa. At the point when the organization isn't
making new jobs, there is frequently oversupply of
qualified work which leads to growing unemployment.
6. Competitors
 The recruitment policies and procedure an of the

competitors also affect the recruitment function of the

organizations. Time to time the organizations have to
change their recruitment policies and manuals
according to the policies being followed by the
SOURCES OF RECRUITMENT
 Every organisation has the option of choosing
the candidates for it from two kinds of
sources: internal and external sources. The
sources within the organisation itself (like
transfer of employees from one department
to other, promotions) to fill a position are
known as the internal sources of recruitment.
Recruitment of candidates from all the other
sources (like outsourcing agencies etc.) are
known as the external sources of recruitment.
 INTERNAL FACTORS
 Present employees
 Employee Referrals
 Former Employees
 Previous applications.
 The advantages of internal sources of
recruitment:-
 It is time saving, economical, simple and
reliable.
 There is no need of induction training because
the candidate already knows everything about
the organisation, the work, the employee, the
rules and regulations, etc.
 It motivates the employees of work hard in
order to get higher jobs in the same
organisation.
 It increases the morale of the employees and it
improves the relations in the organisation.
 It reduce executive turnover.
 It develops loyalty and a sense of responsibility
 The disadvantages of internal sources of
recruitment:-
 It prevents new blood from entering the
organisation. New blood brings innovative
ideas, fresh thinking and dynamism into the
organisation.
 It has limited scope because it is not possible
to fill up all types of vacancies from within the
organisation.
 The position of the person who is promoted or
transferred will be vacant.
 There may be bias or partiality in promoting or
transferring persons from within the
organisation.
 Those who are not promoted will be unhappy.
 EXTERNAL SOURCES
 Professional or Trade Associations.
 Advertisements.
 Employment Exchanges.
 Campus recruitment.
 Walk ins
 Consultants.
 Contractors.
 Displaced persons.
 Radio and Television.
 Acquisitions and mergers.
 Competitors
 Advantages of External Sources Of Recruitment.
 When an organization recruits externally, it opens the
organization up to a larger pool of applicants, which
increases its chance to find the right person for the job.
 External recruitment provides an opportunity for a fresh
outlook on the industry that a company may need to stay
competitive.
 Bringing in fresh talent from the outside can help motivate
the current employees to produce and achieve more in
hopes of obtaining the next promotional opportunity.
 Looking outside the organization also allows a company to
target the key players that may make its competition
successful. Hiring a candidate with a proven track record for
the competition allows the company to get an insider's view
as to what the competition is doing to be successful. This
gives the organization a chance to stay a step ahead of the
competition.
 Hiring an external candidate also opens up many
opportunities to find experienced and highly qualified and
skilled candidates who will help a company meet its
 Disadvantages of External Sources Of Recruitment.:
 It can take longer and also cost more than hiring
from within the organization.
 It can also damage employee morale because
current employees may feel this lessens their
chances for promotion. When employee morale
decreases, productivity can also decrease.
 It also takes more time to train an external
candidate on the systems the organization uses,
therefore taking the candidate a little longer to get
up and running.
 It can be difficult to tell by a candidate's information
whether or not he or she will fit in with the company
and its employees. While a new employee may bring
a fresh outlook and ideas, this can also be
considered a disadvantage, because these ideas
may produce conflict with current employees.
RECRUITMENT PROCESS
1. Recruitment Planning:
 The first step involved in the recruitment process is

planning. Here, planning involves to draft a comprehensive

job specification for the vacant position, outlining its major
and minor responsibili­ties; the skills, experience and
qualifications needed; grade and level of pay; starting date;
whether temporary or permanent; and mention of special
conditions, if any, attached to the job to be filled ”
2. Strategy Development:
 Once it is known how many with what qualifications of

candidates are required, the next step involved in this

regard is to devise a suitable strategy for recruiting the
candidates in the organisation. The strategic considerations
to be considered may include issues like whether to prepare
the required candidates themselves or hire it from outside,
what type of recruitment method to be used, what
geographical area be considered for searching the
candidates, which source of recruitment to be practiced,
and what sequence of activities to be followed in recruiting
3.Searching:
 Once the recruitment plan and strategy are worked out

the search process can begin. Search involves 2 steps:

1. Source activation

2. Selling
 Source activation: Typically, sources and search

methods are activated by the issuance of an employee

requisition. This means that no actual recruiting takes
place until line managers have verified that a vacancy
does exist or will exist. If the firm has planned well and
done a good job of developing its sources and search
methods activation soon results in a flood of
applications/resumes. The applications received must
be screened. Those who pass have to be contacted
and invited for the interview. Unsuccessful applicants
must be sent letters of regret.
 Selling: a second issue to be addressed
in the searching process concerns
communications. In selling the
company the both the media and
message deserve attention. Message
refers to the employment
advertisement. With regard to media it
may be stated that the effectiveness of
the recruitment depends on the media.
Selection of the media needs to be
done with lot of care.
4. Screening:
 Though some view screening as the starting point of selection, we

have considered it as an integral part of recruitment. The reason

being the selection process starts only after the applications have
been screened and shortlisted. Let it be exemplified with an
example.
 In the Universities, applications are invited for filling the post of

Professors. Applications re­ceived in response to invitation, i.e.,

advertisement are screened and shortlisted on the basis of
eligibility and suitability. Then, only the screened applicants are
invited for seminar presentation and personal interview. The
selection process starts from here, i.e., seminar presentation or
interview.
 Job specification is invaluable in screening. Applications are

screened against the qualification, knowledge, skills, abilities,

interest and experience mentioned in the job specification. Those
who do not qualify are straightway eliminated from the selection
process.
 The techniques used for screening candidates vary depending on

the source of supply and method used for recruiting. Preliminary

applications, de-selection tests and screening interviews are
common techniques used for screening the candidates.
5. Evaluation and Control:
 Given the considerable cost involved in the

recruitment process, its evaluation and

control is, therefore, imperative. The costs
generally incurred in a recruitment process
include:
 (i) Salary of recruiters

 (ii) Cost of time spent for preparing job

analysis, advertisement
 (iii) Administrative expenses

 (iv) Cost of outsourcing or overtime while

vacancies remain unfilled

 (v) Cost incurred in recruiting unsuitable

candidates
 Evaluation of recruitment process:
Return rate of applications sent out.
Number of suitable candidates for selection.
Retention and performance of the candidates
selected.
Time lapsed data.
 Evaluation of recruitment methods:

Number of initial enquiries received which resulted

in completed application forms.
Number of candidates at various stages of
recruitment and selection process.
Number of candidates recruited.
Number of candidates retained after 6 months.
SELECTION
 Employee Selection is the process of putting right men
on right job. It is a procedure of matching organizational
requirements with the skills and qualifications of people.
Effective selection can be done only when there is
effective matching. By selecting best candidate for the
required job, the organization will get quality
performance of employees. Moreover, organization will
face less of absenteeism and employee turnover
problems. By selecting right candidate for the required
job, organization will also save time and money. Proper
screening of candidates takes place during selection
procedure. All the potential candidates who apply for the
given job are tested.
 Selection is the process of choosing potential
employees who have relevant qualifications to fill
jobs in an organization. The basic purpose is to
choose the individual who can most successfully
perform the job from the group of qualified
candidates.
 The purpose of selection is to short list the most
suitable candidate who would meet the
requirements of the job and suit the organization
best. The company obtains and assesses
information about the applicant in terms of age,
qualifications, skills, experience etc. The needs of
the job are then matched with the profile of
candidates. The most suitable person is then
picked up after eliminating the unsuitable
applications through successive stages of selection
process.
SELECTION PROCESS
 Preliminary Interviews- It is used to
eliminate those candidates who do not meet
the minimum eligibility criteria laid down by
the organization. The skills, academic and
family background, competencies and
interests of the candidate are examined
during preliminary interview. Preliminary
interviews are less formalized and planned
than the final interviews. The candidates are
given a brief up about the company and the
job profile; and it is also examined how
much the candidate knows about the
company. Preliminary interviews are also
called screening interviews.
 Selection tests: Selection test is a
device that uncovers the information
about the candidate which is not known
through application blank and
interview. In this way, selection test is
an adjunct to a selection method.
Employee selection tests measure an
individual's personality, interest,
aptitude and/or abilities. Testes must
be selected on the criteria of reliability,
validity, objectivity and
standardization.
 Employment Interview: It is a one to
one interaction between the interviewer
and the potential candidate. It is used to
find whether the candidate is best suited
for the required job or not. But such
interviews consume time and money
both. Moreover the competencies of the
candidate cannot be judged. Such
interviews may be biased at times. Such
interviews should be conducted properly.
No distractions should be there in room.
There should be an honest
communication between candidate and
interviewer.
 Reference and background check: a check
about the candidate is done by contacting the
people whose names are mentioned in the CV as
references. This is done with an intention to know
about the past history of the candidate. Previous
employer can be the best reference to know about
the history of the employee. Reference checking
involves obtaining information about applicants
from previous employers. Meeting references in
person--which is not uncommon in farming
communities--or on the phone is usually more
productive than asking them to respond in writing.
Reference checks can supply important information
about personality and character, and may even
provide some legal protection.
 Selection decision: after obtaining the
information through the preceding steps,
selection decision- the most critical of all the
steps is made. The other stages in the
selection process are used to narrow the
number of candidates. The final decision has
to be made from the pool of individuals who
pass the tests, interviews and reference
checks. The views of the line manager will
be generally considered in the final selection
because it is he/she who is responsible for
the performance of the new employee. The
HR Manager plays a crucial role in the final
selection.
 Physical examination: after the selection decision
and before the job offer is made the candidate is
required to undergo a physical fitness test. A job
offer is often contingent upon the candidate being
declared fit after the physical examination. The
result of the physical examination is recorded in a
statement and are also preserved in the personnel
records.The reasons for doing this examination:
 To detect if individual carries any infectious
diseases.
 The test assists whether an applicant is physically fit
to perform work.
 The information may be used to determine if there
are certain physical capabilities which differentiate
successful and less successful employees.
 Finally this examination protects the employer from
workers compensation claims.
 Job Offer: the next step in the
selection process is job offer to those
applicants who have crossed all the
previous stages. Such a letter generally
contains a date by which the appointee
must report duty. The appointee must
be given reasonable timing for
reporting.
Decency demands that the rejected
applicants be informed about their non
selection.
 Employment contract: after the job offer
has been made ad the candidate accepts
the offer certain documents need to be
executed by the employer and the
candidate. One such document is
attestation form which contains certain
vital details about the candidate which
serves as a valid record for future
references.
 The contract also included certain headings
like: Job title, duties, payment, holiday
arrangements, notice period, grievance
procedure, work rules, termination clause,
clause for bond or service agreement etc.
 Concluding the selection process:
contrary to popular perception the
selection process will not end with
executing the employment contract.
There is another important a more
sensitive step reassuring those
candidates who have not been
selected. Such candidates must be told
you did not get selected because their
profile didn’t match the requirement of
the company and not because they
lacked certain skills.