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The Recruitment and Selection Process

1. Decide what positions you·ll have to fill through ?  

2. Build a pool of candidates for these jobs by recruiting  
3. Have candidates complete application forms and perhaps
undergo an     interview.
4. Use     like tests, background investigations,
and physical exams to identify viable candidates.
5. Decide who to make an offer to, by having the supervisor
and perhaps others on the team interview the candidates.
Steps in Recruitment and Selection Process


Planning and Forecasting
ß Employment or personnel planning
D Theprocess of deciding what positions the firm will
have to fill, and how to fill them.
ß Succession planning
D Theprocess of deciding how to fill the company·s most
important executive jobs.
ß [hat to forecast?
D ‰verall personnel needs
D The supply of inside candidates
D The supply of outside candidates
 inking Employer·s Strategy to Plans

Forecasting Personnel Needs
ß Trend analysis
D The study of a firm·s past employment needs over a
period of years to predict future needs.
ß Ratio analysis
DÎ forecasting technique for determining future staff needs
by using ratios between a causal factor (e.g. sales volume)
and the number of employees needed.
D Îssumes that the relationship between the causal factor and
staffing needs is constant (productivity remains the same)

 E.g. Suppose that a university has 10,000 students and 500

professors; the student-faculty ratio is thus 10,000:500 or 20:1.
This ratio means that for every 20 students, the university needs 1
professor. student enrollment increase of 1,000 for next year, it
would need to hire 50 (1000/20) new professors
The Scatter Plot
ß Scatter plot
DÎ graphical method used to help identify the
relationship between two variables.
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Determining the Relationship Between
Hospital Size and Number of Nurses

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1. They focus on projections and historical relationships,
and assume that the firm·s existing structure and
activities will continue into the future.
 [hereas staffing plans also must reflect:
 Projected employee turnover
 Strategic decisions
 Technological and other changes
 Financial resources
Using Computers to Forecast
Personnel Requirements
ß Computerized forecasts
D The use software packages to determine of future staff
needs by projecting sales, volume of production, and
personnel required to maintain a volume of output.
 ùenerates figures on average staff levels required to meet
product demands, as well as forecasts for direct labor
(assembly workers), indirect staff (secretaries), and executives.
 Typical metrics: direct labor hours required to produce one unit
of product (a measure of productivity), and three sales
projections³minimum, maximum, and probable.
 Managerial judgment plays a big role
Forecasting the Supply of Inside
ß Qualifications inventories
D 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.
Manual Systems and Replacement
ß Personnel replacement charts
D Company records showing present performance and
promotability of inside candidates for the most
important positions.
ß Position replacement card
DÎ card prepared for each position in a company to
show possible replacement candidates and their
Replacement Chart
Showing Development
Needs of Future
Divisional Vice President

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Computerized Information Systems
ß Human Resource Information System (HRIS)
D Computerized inventory of information that can be accessed to
determine employees· background, experience, and skills that may
 [ork experience
 Product or service knowledge
 Industry experience
 Formal education

 Employee career cycle management

 24/7 data access to authorized managers
 Îccess to real-time data³with instantaneous updates
 Employee administration
 Performance and development
 Succession planning
Îdvantages of HRIS
ß Eliminating paper and process inefficiencies
ß Îdditional cost reductions while improving service and
becoming more efficient
ß Reduce time spent on administrative work by 40 percent to 50
percent, resulting in either the elimination of headcount or the
redeployment of effort to higher value tasks, such as decision
support and employee development
ß [eb-based platform, enabling "portal" technology
D connect with employees over the [eb
D use of online surveys
D Employees are becoming more self sufficient in the workplace
D Monitoring and managing employees' use of the Internet
Effective Recruiting
ß External factors affecting recruiting:
D  ooming undersupply of workers
D Increasingly fewer ´qualifiedµ candidates

ß Internal factors affecting recruiting:

D The consistency of the firm·s recruitment efforts with its
strategic goals
D The available resources, types of jobs to be recruited and
choice of recruiting methods
D  ine and staff coordination and cooperation
Effective Recruiting (cont·d)
ß Îdvantages of centralizing recruitment
D Strengthens employment brand
D Ease in applying strategic principles

D Reduces duplication of HR activiites

D Reduces the cost of new HR technologies

D Builds teams of HR experts

D Provides for better measurement of HR performance

D Îllows for the sharing of applicant pools

Measuring Recruiting Effectiveness
ß [hat to measure and how to measure
D How many  
applicants were attracted from
each recruitment source?
 Îssessing both the quantity and the quality of the applicants
produced by a source.
ß High performance recruiting
D Îpplying best-practices management techniques to
 Using a benchmarks-oriented approach to analyzing and
measuring the effectiveness of recruiting efforts such as
employee referrals.
Recruiting Yield Pyramid

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Internal Sources of Candidates:
Hiring from [ithin
ß Îdvantages ß Disadvantages
D Foreknowledge of D Failed applicants become
candidates· strengths and discontented
weaknesses D Time wasted interviewing
D More accurate view of inside candidates who will
candidate·s skills not be considered
D Candidates have a
stronger commitment to the
D Increases employee morale
D  ess training and
orientation required
Finding Internal Candidates
ß Job posting
D Publicizing an open job to employees (often by literally
posting it on bulletin boards) and listing its attributes.
ß Rehiring former employees
D Îdvantages:
 They know the firm and its culture.
D Disadvantages:
 They may have less-than positive attitudes.
 Rehiring may sent the wrong message to current employees
about how to get ahead.
Finding Internal Candidates (cont·d)
ß Succession planning
D The process of ensuring a suitable supply of successors
for current and future senior or key jobs.
ß Succession planning steps:
D Identifying and analyzing key jobs.
D Creating and assessing candidates.

D Selecting those who will fill the key positions.

‰utside Sources of Candidates
ß Îdvertising
D The Media: 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
 Internet job sites
 Marketing programs

ß Constructing an effective ad
D [ording related to job interest factors should evoke
the applicant·s attention, interest, desire, and action
(ÎIDÎ) and create a positive impression of the firm.
‰utside Sources of Candidates
ß Recruiting via web
D Îdvantages
 Cost effective way of advertising
 Most people turn to internet today to find jobs
 Bigger ads with more detail and link to company website
  onger life span

D Disadvantages
 Fewer older people and certain minorities use internet
 Îttracts too many applicants
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‰utside Sources of Candidates (cont·d)

ß Private agencies
D Important source of clerical, white collar, managerial
D Employers pay fees
‰utside Sources of Candidates (cont·d)

ß Reasons for using a private employment agency:

D [hen a firm doesn·t have an HR department and is not geared to doing
recruiting and screening.
D The firm has found it difficult in the past to generate a pool of qualified
D The firm must fill a particular opening quickly.
D There is a perceived need to attract a greater number of minority or
female applicants.
D The firm wants to reach currently employed individuals, who might feel
more comfortable dealing with agencies than with competing companies.
D The firm wants to cut down on the time it·s devoting to recruiting.
‰utside Sources of Candidates (cont·d)

ß Îvoiding problems with employment agencies:

D ùive the agency an accurate and complete job description.
D Make sure tests and interviews are part of the agency·s selection process.
D Periodically review data on candidates accepted or rejected by your firm,
and by the agency. Check on the effectiveness and fairness of the agency·s
screening process.
D Screen the agency. Check with other managers or HR people to find out
which agencies have been the most effective at filling the sorts of positions
needed to be filled.
D Review the Internet and a few back issues of the Sunday classified ads to
discover the agencies that handle the positions to be filled.
D Supplements agency·s reference checking by checking at least the final
candidate·s references yourself.
Temp Îgencies and Îlternative
Supplement permanent workforce by hiring temporary workers å  
Not Just limited to clerical or maintenance staff, it includes
engineering, management support occupations e.g. HR managers

ß Benefits of Temps ß Costs of Temps

D Paid only when working D Fees paid to temp
D More productive agencies
D No recruitment, screening, D  ack of commitment to firm
and payroll administration
Concerns of Temp Employees
ß Treatment by employers in a dehumanizing, impersonal, and ultimately
discouraging way.
ß Insecurity about their employment and pessimistic about the future.
ß [orry about their lack of insurance and pension benefits.
ß Being misled about their job assignments and in particular about whether
temporary assignments were likely to become full-time positions.
ß Being ´underemployedµ (particularly those trying to return to the full-time labor
ß In general they were angry toward the corporate world and its values;
participants repeatedly expressed feelings of alienation and disenchantment.
‰ffshoring/‰utsourcing [hite-Collar
and ‰ther Jobs
ß Specific issues in outsourcing jobs abroad
D Political and military instability
D  ikelihood of cultural misunderstandings
D Customers· security and privacy concerns
D Foreign contracts, liability, and legal concerns
D Special training of foreign employees
D Costsassociated with companies supplying foreign
‰utside Sources of Candidates (cont·d)

ß Executive recruiters (headhunters)

D Special employment agencies retained by employers to
seek out top-management talent for their clients.
 Contingent-based recruiters collect a fee for their services
when a successful hire is completed.
 Retained executive searchers are paid regardless of the
outcome of the recruitment process.
D Internet
technology and specialization trends are
changing how candidates are attracted and how
searches are conducted.
‰utside Sources of Candidates (cont·d)

ß ‰n demand recruiting services (‰DRS)

DÎ service that provides short-term specialized recruiting
to support specific projects without the expense of
retaining traditional search firms.

D Traditional recruiting firm might charge 20 to 30% of

each hires salary while ‰DRS firm charged by time
spent on finding qualified candidates
‰utside Sources of Candidates (cont·d)

ß College recruiting
D Recruiting goals
 To determine if the candidate is worthy of further consideration
 To attract good candidates
D ‰n-site visits
 Invitation letters
 Îssigned hosts
 Information package
 Planned interviews
 Timely employment offer
D Internships
‰utside Sources of Candidates (cont·d)

ß Employee referrals
D Îpplicantswho are referred to the organization by
current employees
 Referring employees become stakeholders.
 Referral is a cost-effective recruitment program.
 Referral can speed up diversifying the workforce

ß [alk-ins
D Directapplicants who seek employment with or without
encouragement from other sources.
D Courteous treatment of any applicant is a good
business practice.
Issues in Recruiting a More Diverse
ß Single parents
D Providing work schedule flexibility.
ß ‰lder workers
D Revising polices that make it difficult or unattractive
for older workers to remain employed.
ß Recruiting minorities and women
D Understanding recruitment barriers.
D Formulating recruitment plans.

D Instituting specific day-to-day programs.

Issues in Recruiting a More Diverse
[orkforce (cont·d)
ß [elfare-to-work
D Developing pre-training programs to overcome
difficulties in hiring and assimilating persons
previously on welfare.
ß The disabled
D Developing resources and policies to recruit and
integrate disable persons into the workforce.
Developing and Using Îpplication
ß Îpplication form
D The form that provides information on education, prior work
record, and skills.
ß Uses of information from applications
D Judgments about the applicant·s educational and
experience qualifications
D Conclusions about the applicant·s previous progress and
D Indications of the applicant·s employment stability
D Predictions about which candidate is likely to succeed on the
Example from Îrticle:
ß |  
Crowd sourcing is the act of
taking a job traditionally performed by an
employee and outsourcing it to an undefined group
of people on a project-by-project basis, in the form
of an open call.
Firms wishing to follow this model could encourage
employees to set up a company with 10 or more
colleagues, and buy back their services as and
when needed.
ß Multinational firms saddled with huge people costs are considering
downsizing their permanent workforce and hiring sub-contractors on a scale
never seen before - presenting an "enormous" management task for HR.
IT giant IBM told Personnel Today that the firm's global workforce of
399,000 permanent employees could reduce to 100,000 by 2017, the date
by which the firm is due to complete its HR transformation programme.
Tim Ringo, head of IBM Human Capital Management, the consultancy arm of
the IT conglomerate, said the firm would re-hire the workers as contractors for
specific projects as and when necessary, a concept dubbed 'crowd sourcing¶.
"There would be no buildings costs, no pensions and no healthcare costs,
making huge savings," he said
[hen asked how many permanent people IBM could potentially employ in
2017, Ringo said: "100,000 people. I think crowd sourcing is really
important, where you would have a core set of employees but the vast
majority are sub-contracted out.´
He stressed the firm was only considering the move, and was not about to cut
299,000 jobs, as staff would be re-hired as contractors.
ß În IBM spokesman denied the firm was about to shrink its permanent workforce by
three quarters in seven years.
He said: "The comments are without merit. This was pure speculation about future job
movements without any basis in fact. In fact, the comments run counter to IBM's history
of growing its global workforce over each of the last eight years.µ
ß    !

I keep wondering how long it will be before the accounting profession is hit hard by
outsourcing. So far, it has hardly been touched. Yet, accounting is a conceptually easy
target. I believe the only thing holding back outsourcing accounting jobs is fear that
data (account numbers, credit card numbers, proprietary results, etc) falls in the
wrong hands.
In regards to information technology, every week I receive emails from people who
were outsourced or fear being outsourced.
It is no secret that manufacturing of all kinds is still headed to China, and various IT
programming and design work has gone to India which lends credence to Personnel
Today's claim.
Finally, even if the "Crowd-Sourcing" stays in the US, benefit levels in the crowd are
highly unlikely to be the same benefits as direct employees of a fortune 500
company. These are very deflationary trends.