Topic 4: Human resource planning and recruitment ( Goal setting and…
Human resource planning and recruitment
The importance of HR planning and recruitment
HR planning and recruitment are critical to any organisation. An organisation cannot achieve
its strategic goals without the right number of staff with the requisite knowledge and skills.
Senior managers and HR personnel need to constantly monitor the environment, the factors influencing achievement of organisational goals, and staffing mix and levels.
Turnover in a particular category of employee can very quickly result in severe depletion of critical human resources.
Goal setting and strategic planning
Knowing the organisational objectives is part of the HR planning process because it is to these objectives that the programs are aligned. Since market trends for every industry are often unstable, there is always the threat of high employee turnover.
Options identified for reducing a labour surplus include:
Options identified for avoiding an expected labour shortage include:
new external hires
As such, one of the roles of the HRM director is to explain the long-term implications of the various options under consideration.
HR planning process
One vital factor in HR planning is the number of available staff and the productivity rate. The HR manager analyses this data to find out whether there is a surplus or shortage of manpower.
The textbook illustrates the HR planning process through a diagram by Figure 5.1 on page 185 of the textbook (p. 201 of 9th edition) that identifies the need to:
estimate labour surplus or shortage
set goals and strategic plans to address the shortage/surplus of labour
implement and evaluate the goals and plans.
Underpinning these processes is the need to forecast both labour demand and supply.
On the supply side, an approach often used to determine internal supply of labour is that of the ‘transition matrix’ which provides an analysis of how many people are in the company in various job levels at various times.
Internal versus external recruiting
The textbook raises a significant issue about the source of recruits – should they be internal or external recruits?
If both parties, employer and employee, contract on the basis that eithercan terminate the employment relationship at any time regardless of cause, then the employer is protected from wrongful dismissal claims.
Lead-the-market pay strategies
Lead-the-market pay strategies are particularly appropriate in a tight labour market where you need access to specialist skills, or high levels of skill to reinforce your competitive advantage.
Recruitment sources and the recruiter.