CH 05

Human Resource Management
Fifteenth Edition
Chapter 5
Personnel
Planning and
Recruiting
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
Learning Objectives (1 of 3)
5-1. Explain the main techniques used in
employment planning and forecasting.
5-2. Explain and give examples for the need for
effective recruiting.
5-3. Name and describe the main internal sources
of candidates.
5-4. Discuss a workforce planning method you
would use to improve employee engagement.
5-5. List and discuss the main outside sources of
candidates.
5-6. Explain how to recruit a more diverse
workforce.
5-7. Discuss practical guidelines for obtaining
application information.
I.
Explain the main techniques
used in employment planning
and forecasting.
Introduction
The recruitment and selection process is a series of hurdles aimed at selecting

the best candidate for the job.
Workforce Planning and Forecasting
• is the process of deciding what positions the firm
will have to fill, and how to fill them.
Workforce Planning by Towers
Watson MAPS
Source: © Towers Watson 2012.

Used with permission.
Strategy and Workforce Planning
Improving Performance: The Strategic
Context
Four Seasons
Let’s talk about it…
Forecasting Personnel Needs
(Labor Demands) (1 of 2)
Forecasting Personnel Needs (Labor
Demands) (2 of 2)
1. Trend Analysis
2. Ratio Analysis
3. Scatter Plot
4. Managerial Judgment
• Longer term, managers will follow industry publications and economic
forecasts closely, to try to get a sense for future demand. Such future
predictions won’t be precise, but should help you address the potential
changes in demand.
• The basic process for forecasting personnel needs is to forecast

revenues first. Then estimate the size of the staff required to support
this sales volume.
• However, managers must also consider other factors. These include
projected turnover, decisions to upgrade (or downgrade) products or
services, productivity changes, financial resources, and decisions to
enter or leave businesses.
• The basic tools for projecting personnel needs include trend
analysis, ratio analysis, the scatter plot, and managerial
judgment.
• Trend analysis – Is a study of a firm’s past employment needs
over a period of years to predict future needs.
• Ratio analysis – Is a forecasting technique for determining
future staff needs by using ratios between, for example, sales
volume and number of employees needed.
• Scatter plot – Is a graphical method used to help identify the
relationship between two variables.
• Managerial judgment – Few historical trends, ratios, or
relationships will continue unchanged into the future so
managerial judgment is needed to adjust the forecast.
Forecasting the Supply of Inside
Candidates (1 of 2)
The personnel demand forecast provides only half the staffing
equation, by answering the question: “How many employees in what
positions will we need?” Next, the manager must forecast the supply
(availability) of inside and outside candidates.
Most firms start with possible inside candidates. The main task here is
determining which current employees are qualified or trainable for the
projected openings.
Markov analysis involves creating a matrix that shows the probabilities

that employees in a chain of feeder positions for a key job. “Feeder”
positions are those to which a job incumbent may likely be promoted.
For example a junior engineer is a feeder position for an engineer. An
engineer is a feeder position for a senior engineer who might be
promoted to engineering supervisor, and so forth.
Forecasting the Supply of Inside
Candidates (2 of 2)
Personnel Replacement Charts
Figure 5-3 Personnel or

Management Replacement
Chart Showing Development
Needs of Potential Future
Divisional Vice Presidents
Personnel replacement charts
• Personnel replacement charts (illustrated here in Figure
5-3) are another option, particularly for the firm’s top
positions. They show the present performance and
promote ability for each position’s potential replacement.
• Markov analysis is also a method that involves creating a

matrix that shows the probabilities that employees in the
chain of feeder positions for a key job (such as from junior
engineer, to engineer, to senior engineer, to engineering
supervisor, to director of engineering) will move from
position to position and therefore be available to fill the key
position.
Forecasting the Supply of Outside
Candidates
Forecasting the Supply of Outside Candidates

is done when there is not enough skilled inside
candidates to fill the anticipated openings.
Predictive Workforce Monitoring
Most employers review their workforce plans every year or

so, but this isn’t always sufficient. Workforce planning
therefore often involves paying continuous attention to
workforce planning issues. Managers call this predictive
workforce monitoring.
Let take a look at the next HR as a Profit Center feature

which shows an example.
Improving Performance: HR as a
Profit Center (1 of 2)
Predicting Labor Needs
Matching Projected Labor Supply
and Labor Demand
Workforce planning should logically culminate

in a workforce plan. This plan lays out the
employer’s projected workforce and skills
gaps, as well as staffing plans for filling these
gaps.
Succession Planning
Succession planning involves developing workforce
plans for the company’s top positions. Succession
planning is the ongoing process of systematically
identifying, assessing, and developing organizational
leadership to enhance performance.
It entails three steps: identify key position needs,

develop inside candidates, and assess and choose
those who will fill the key positions.
II.
Explain and give examples for
the need for effective recruiting.
Why Effective Recruiting Is Important
• The need for effective
recruiting
• What makes recruiting a
challenge?
• Effective recruiting allows a company to fill open positions
while their competitors may have missed solid opportunities.
If, for example, you fill open positions 50% faster than
industry average, you are more likely to get better talent
onboard more quickly.
• Some recruiting methods are superior to others, depending

on the job and depending on non-recruitment issues and
policies such as pay.
• The employer’s “brand” or reputation will impact recruiting
success.
• For many firms, it’s simply much easier to recruit centrally
now that so much recruiting is on the Internet. Face-to-face
interviewing is the usual result of the preliminary recruiting
done through the internet.
• With respect to the role of the supervisor in recruiting, the

HR manager charged with filling an open position is
seldom very familiar with the job itself. Someone has to tell
this person what the position really entails, and what key
things to look or watch out for. Only the position’s
supervisor can do this.
The Recruiting Yield Pyramid
FIGURE 5-5 Recruiting Yield

Pyramid
Know Your Employment Law (1 of 3)
Recruiting Employees
The Supervisor’s Role
III.
Name and describe the main
internal sources of candidates.
Internal Sources of Candidates
• Finding Internal Candidates
IV.
Discuss a workforce planning
method you would use to
improve employee engagement.
Employee Engagement Guide for
Managers
Promotion from Within
V.
List and discuss the main
outside sources of candidates.
Outside Sources of Candidates
Informal Recruiting and the Hidden
Job Market
• Job openings aren’t publicized
• Jobs are created and become available when
employers come across the right candidates
Recruiting via the Internet
• Pros and Cons
Improving Performance Through
HRIS: Using Applicant Tracking
Applicant Tracking System (ATS)
Let’s take a look …
Trends Shaping HR: Science in Talent
Management
Google’s People Operations (HR)
Improving Online Recruiting
Effectiveness
Ineffective Ad, Recycled Effective Web Ad
from Magazine to the Web (Space Not an Issue)
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Trends Shaping HR: Digital and
Social Media
Recruiters Use of Social Media
Advertising
• The Media
• Constructing (writing) The
Ad
Constructing (writing) The Ad
Figure 5-7 Help Wanted Ad
That Draws Attention
Source: “Help Wanted Ad That Draws
Attention”, in Giombetti Associates,
Hampden, MA. Reprinted with permission.
Employment Agencies
• Public
• Nonprofit agencies
• Privately owned agencies
Recruiting Process Outsourcers
Temporary Workers and Alternative
Staffing
• Alternative staffing
• Reason for using
• The Temp Agency
• Temp Employee’s Concern
Contract Employees
Trends Shaping HR: The New
Extended Workforce
Freelance Programmers, Designers or

Marketers
Offshoring and Outsourcing Jobs
Executive Recruiters
• Working with
Recruiters
• Internal Recruiting
Improving Performance: HR Tools for
Line Managers and Small Businesses
Recruiting 101
Recruiting (1 of 2)
1. Referrals and Walk-ins
2. On-Demand Recruiting
Services
3. College Recruiting
Internships
Recruiting (2 of 2)
4. Telecommuters
5. Military Personnel
Improving Performance: HR as a
Profit Center (2 of 2)
Cutting Recruitment Costs
VI.
Explain how to recruit a more
diverse workforce.
Recruiting a More Diverse Workforce (1 of 2)
1. Women
2. Single Parents
3. Older Workers
Diversity Counts
Recruiting a More Diverse Workforce (2 of 2)
4. Minorities
5. The Disabled
VI.
Discuss practical guidelines for
obtaining application
information.
Developing and Using Application
Forms (1 of 2)
• Purpose of Application Forms
• Application Guidelines
Application Forms and EEO Law
Developing and Using Application
Forms (2 of 2)
• Using Application Forms to Predict Job
Performance
• Mandatory Arbitration
Chapter 5 Review
What you should now know….
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Human Resource Management

The recruitment and selection process is a series of hurdles aimed at selecting

Source: © Towers Watson 2012.

Let’s talk about it…

• The basic process for forecasting personnel needs is to forecast

Markov analysis involves creating a matrix that shows the probabilities

Figure 5-3 Personnel or

• Markov analysis is also a method that involves creating a

Forecasting the Supply of Outside Candidates

Most employers review their workforce plans every year or

Let take a look at the next HR as a Profit Center feature

Predicting Labor Needs

Let’s talk about it…

Workforce planning should logically culminate

It entails three steps: identify key position needs,

• Some recruiting methods are superior to others, depending

• With respect to the role of the supervisor in recruiting, the

FIGURE 5-5 Recruiting Yield

• Pros and Cons

Applicant Tracking System (ATS)

Let’s take a look …

Google’s People Operations (HR)

Let’s take a look …

Recruiters Use of Social Media

Let’s take a look …

Freelance Programmers, Designers or

Let’s talk about it…

Let’s talk about it…

Cutting Recruitment Costs

Let’s talk about it…

What you should now know….

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