CHAPTER 3
PERSONNEL
PLANNING AND
RECRUITING
L E C T U R E R : D A N G T H A N H T H U Y, M B A
01
Explain the main techniques used in employment
planning and forecasting
Learning outcomes 02
Know how to match need and supply
03
Understand the Recruiting yield pyramid
PERSONNEL PLANNING
The process of deciding
what positions the company
has to fill and how to fill
them
PERSONNEL PLANNING PROCESS
Matching need
HR needs and supply
1 2 3
Supply of
candidates
Step 1: Forecasting HR needs
Forecast
Techniques
Trends Ratio Computerized Managerial
Scatter plot forecast
analysis analysis judgment
Step 1: Forecasting HR needs
Trend analysis Ratio analysis
• The study of a firm’s past • A forecasting technique for
employment needs over a period determining future staff needs by
of years to predict future needs using ratios between a causal
factor(sales volumes) and the
number of employees needed
• Assumes that the relationship
between the causal factor and
staffing needs is constant
FIGURE 5–2 Determining the Relationship Between A graphical method used to help identify the
Hospital Size and Number of Nurses
relationship between two variables
Hospital Size
(Number
of Beds) Number of Registered Nurses
200 240
300 260
400 470
500 500
600 620
700 660
800 820
900 860
Computerized forecasts
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
Managerial judgment
Bottom-up approach
Top-down approach
Step 2: Forecasting supply of candidates
Inside Outside
candidates candidates
Supply of
candidates
Forecasting the Supply of Internal Candidates
Personnel Computerized
Manual MARKOV
replacement skills
system analysis
chart inventories
Qualification/ Skill
inventories
Forecasting the Supply of Internal Candidates
Manual system
Manual records listing employees’
education, career and development
interests, languages, special skills,
and so on, to be used in selecting
inside candidates for promotion
Forecasting the Supply of internal Candidates
Personnel replacement charts: Company records showing present performance and promotability of
inside candidates for the most important positions
Forecasting the Supply of Inside Candidates
Computerized Information Systems
Human Resource Information System (HRIS)
Computerized inventory of information that can be accessed to determine
employees’ background, experience, and skills that may include:
• Work experience codes
• Product or service knowledge
• Industry experience
• Formal education
MARKOV ANALYSIS
Markov analysis involves creating a matrix that shows the probabilities that employees in the chain of
feeder positions for a key job
Step 3: Matching need and supply
Demand > Supply Demand < Supply Demand = Supply
Personnel
shortage Personnel surplus
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Step 3: Matching need and supply
Personnel shortage
• Recruiting
•Training and retraining
• Succession planning
•Part-time job
• Outsourcing
• Overtime
Step 3: Matching need and supply
Personnel Surplus
• Layoff
• Downsizing
• Restricted hiring
• Reduced hours
• Early retirement
