Planning

HR Demand forecast must consider both internal and external factors.

Internal: Budget constraints, production level, new products, employment
policies etc.
External: Local and global competition, economy political legal conditions etc.
HR demand forecast helps to
i) quantify jobs required to produce
goods/services
ii) identify desirable staff mix
iii) determine appropriate level of staff in each
department
iv) prevent shortages
Option (Reduce Labour
Surplus)
Pay reduction (cut pay)
Early retirement
Retraining
Transfer
Hiring Freeze
Demotion (cut rank)
Downsizing (cut size)
Work Sharing
Natural Attrition
Option (Reduce Labour
Shortage)
Temporary Employees
Outsourcing
Retrain Transfers
Overtime
New External Hires
Turnover Reductions
Technological Innovation

Speed

Human Suffering

Speed

High
Low
Low
Moderate
Low
High
High
Moderate
Low
Human Suffering

High
Low
Low
High
Low
High
High
Low
Low

High
High
Low
High
Low
Low
Low

High
High
High
High
Low
Moderate
Low

Recruiting: discovering potential candidates for organisational vacancies. A

linking activity that brings together those with jobs to fill and those seeking jobs.
Again, internal and external
Internal: develop own employees for positions by using HR management
system
i) promotion/lateral transfer - when a candidate is identified
ii) advertise internally useful in discovering hidden talent that was
overlooked
iii) follow standard recruitment process for selection
External: Advertisements, Employment Agencies, Schools, Job Fairs,
Professional Organisations, Online Sources, Headhunting (jap shoe)
+

Promote internally
Good public relations
Morale building

Promote from outside

Import new ideas
Less training required if theyre

Knowledge of employee performance

Cost savings
Opportunity to develop mid and top
level managers
Candidates have stronger
commitment to company
Inferiority of employees
Infighting + morale issues
Potential inbreeding (lack of fresh
perspectives. groupthinking)
Time wasted interviewing inside
candidates who will not be
considered

trained
Change in business dynamic
Internal people not available

Time and energy consuming

Does not build morale
Does not encourage existing
employees
Candidates have weak
commitment to company
No opportunity to develop
mid and top level managers

1) Advertisements: most popular method to communicate with public. Can be

through newspapers, journals, job sites. Must include qualification, skills,
competencies, job summary and place of posting. Response rate affected by:
identification of organisation, labour market conditions, degree to which specific
requirements are listed.
2) Employment Agencies:
- Public agencies operated by government (www.careeronestop.org)
- Private employment agencies (more comprehensive services, perceived to offer
positions and applicants of higher calibre)
- Management consulting firms (headhunters that research candidates for
mid/top level executive placement)
Good for: firm doesnt have HR department, firm has had issues generating
qualified applicants, firm urgently needs to fill opening, firm wants to cut down
on time spent
3) Schools / Universities: placement services are offered, where firms can review
and interview graduates.
4) Job Fairs: attended by company recruiters seeking resumes from qualified
candidates. Virtual online job fairs could bring employers and job seekers
together and save resources
5) Professional organisations like labour unions also operate placement services
for their members. They publish rosters of job vacancies to members, helps firms
save resources
6) Online sources: one of the newer arenas for locating resumes of qualified
candidates. Companies like Wells Fargo Bank and General Electric have found
much success using online recruiting sources. Cost effective, more
applicants, immediate responses, online prescreening, automation of
applicant evaluation

7) Headhunting. Searching for highly qualified senior managers through informal

interviews, useful to bring in potential people who dont respond to formal
advertisements
What affects recruiting:
Internal: consistency of recruitment efforts with strategic goals, available
resources and choice of recruiting methods, non-recruitment HR issues and
policies, staff coordination and cooperation.
External: undersupply of workers, lessening of the trend of outsourcing jobs,
increasingly fewer qualified candidates