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Strategic HR planning is an important component of strategic HR management. It links HR management directly to the strategic plan of your organization. Most mid- to large sized organizations have a strategic plan that guides them in successfully meeting their missions. Organizations routinely complete financial plans to ensure they achieve organizational goals and while workforce plans are not as common, they are just as important. Even a small organization with as few as 10 staff can develop a strategic plan to guide decisions about the future. Based on the strategic plan, your organization can develop a strategic HR plan that will allow you to make HR management decisions now to support the future direction of the organization. Strategic HR planning is also important from a budgetary point of view so that you can factor the costs of recruitment, training, etc. into your organization's operating budget.
Ensure adequate human resources to meet the strategic goals and operational plans of your organization - the right people with the right skills at the right time Keep up with social, economic, legislative and technological trends that impact on human resources in your area and in the sector Remain flexible so that your organization can manage change if the future is different than anticipated Strategic HR planning predicts the future HR management needs of the organization after analyzing the organization's current human resources, the external labor market and the future HR environment that the organization will be operating in. The analysis of HR management issues external to the organization and developing scenarios about the future are what distinguishes strategic planning from operational planning. The basic questions to be answered for strategic planning are:
Where are we going? How will we develop HR strategies to successfully get there, given the circumstances? What skill sets do we need?
SHRP
Forecasting HR requirements
Gap analysis
1. Assessing current HR capacity Based on the organization's strategic plan, the first step in the strategic HR planning process is to assess the current HR capacity of the organization. The knowledge, skills and abilities of your current staff need to be identified. This can be done by developing a skills inventory for each employee. The skills inventory should go beyond the skills needed for the particular position. List all skills each employee has demonstrated. For example, recreational or volunteer activities may involve special skills that could be relevant to the organization. Education levels and certificates or additional training should also be included. An employee's performance assessment form can be reviewed to determine if the person is ready and willing to take on more responsibility and to look at the employee's current development plans.
2. Forecasting HR requirements
The next step is to forecast HR needs for the future based on the strategic goals of the organization. Realistic forecasting of human resources involves estimating both demand and supply. Questions to be answered include:
How many staff will be required to achieve the strategic goals of the organization? What jobs will need to be filled? What skill sets will people need? When forecasting demands for HR, you must also assess the challenges that you will have in meeting your staffing need based on the external environment.
3. Gap analysis
The next step is to determine the gap between where your organization wants to be in the future and where you are now. The gap analysis includes identifying the number of staff and the skills and abilities required in the future in comparison to the current situation. You should also look at all your organization's HR management practices to identify practices that could be improved or new practices needed to support the organization's capacity to move forward. Questions to be answered include:
What new jobs will we need? What new skills will be required? Do our present employees have the required skills? Are employees currently in positions that use their strengths? Do we have enough managers/supervisors? Are current HR management practices adequate for future needs?
Restructuring strategies
Recruitment strategies
Outsourcing strategies
Collaboration strategies
1. Restructuring strategies
This strategy includes:
Reducing staff either by termination or attrition Regrouping tasks to create well designed jobs Reorganizing work units to be more efficient If your assessment indicates that there is an oversupply of skills, there are a variety of options open to assist in the adjustment. Termination of workers gives immediate results. Generally, there will be costs associated with this approach depending on your employment agreements. Notice periods are guaranteed in all provinces. Be sure to review the employment and labour standards in your province or territory to ensure that you are compliant with the legislation. Attrition - not replacing employees when they leave - is another way to reduce staff. The viability of this option depends on how urgently you need to reduce staff. It will mean that jobs performed in the organization will have to be reorganized so that essential work of the departing employee is covered. Careful assessment of the reorganized workloads of remaining employees should include an analysis of whether or not their new workloads will result in improved outcomes. It is important to consider current labour market trends (e.g. the looming skills shortage as baby boomers begin to retire) because there may be longer-term consequences if you let staff go. Sometimes existing workers may be willing to voluntarily reduce their hours, especially if the situation is temporary. Job sharing may be another option. The key to success is to ensure that employees are satisfied with the arrangement, that they confirm agreement to the new arrangement in writing, and that it meets the needs of the employer. Excellent communication is a prerequisite for success.
Providing staff with training to take on new roles Providing current staff with development opportunities to prepare them for future jobs in your organization Training and development needs can be met in a variety of ways. One approach is for the employer to pay for employees to upgrade their skills. This may involve sending the employee to take courses or certificates or it may be accomplished through on-the-job training. Many training and development needs can be met through cost effective techniques. See the HR Toolkit section on Learning, Training and Development for more information.
3. Recruitment strategies
This strategy includes:
Recruiting new staff with the skill and abilities that your organization will need in the future Considering all the available options for strategically promoting job openings and encouraging suitable candidates to apply For strategic HR planning, each time you recruit you should be looking at the requirements from a strategic perspective. Perhaps your organization has a need for a new fundraiser right now to plan special events as part of your fundraising plan. However, if your organization is considering moving from fundraising through special events to planned giving, your recruitment strategy should be to find someone who can do both to align with the change that you plan for the future.
4. Outsourcing strategies
This strategy includes:
Using external individuals or organizations to complete some tasks Many organizations look outside their own staff pool and contract for certain skills. This is particularly helpful for accomplishing specific, specialized tasks that don't require ongoing fulltime work. Some organizations outsource HR activities, project work or bookkeeping. For example, payroll may be done by an external organization rather than a staff person, a short term project may be done using a consultant, or specific expertise such as legal advice may be purchase from an outside source. When deciding to outsource to an individual, ensure you are not mistakenly calling an employee a consultant. This is illegal and can have serious financial implications for your organization. To understand the differences between employees and self-employed people, visit the Canada Revenue Agency's website. Each outsourcing decision has implications for meeting the organization's goals and should therefore be carefully assessed.
5. Collaboration strategies
Finally, the strategic HR planning process may lead to indirect strategies that go beyond your organization. By collaborating with other organizations you may have better success at dealing with a shortage of certain skills. Types of collaboration could include:
Working together to influence the types of courses offered by educational institutions Working with other organizations to prepare future leaders by sharing in the development of promising individuals
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Sharing the costs of training for groups of employees Allowing employees to visit other organizations to gain skills and insight
2. Communication
The strategic HR plan needs to be communicated throughout the organization. Your communication should include:
How the plan ties to the organization's overall strategic plan What changes in HR management policies, practices and activities will be made to support the strategic plan How any changes in HR management will impact on staff including a timeframe if appropriate How each individual member of staff can contribute to the plan How staff will be supported through any changes How the organization will be different in the future It is impossible to communicate too much (but all too easy to communicate too little), especially when changes involve people. However, the amount of detail should vary depending upon the audience.
4. Organizational needs
Whether you are increasing or reducing the number of employees, there are implications for space and equipment, and on existing resources such as payroll and benefit plans.
5. Evaluation
HR plans need to be updated on a regular basis. You will need to establish the information necessary to evaluate the success of the new plan. Benchmarks need to be selected and measured over time to determine if the plan is successful in achieving the desired objectives.
RECRUITMENT
Introduction
Recruitment means process of searching employees and selection means select the employees. Recruitment the selection function and it include only finding developing the sources of prospective employees and attractive them to apply for the job in the organization where as the selection is the process of finding out the most suitable candidate to the job out of the candidate attracted.
Definition
Recruitment is define A process to discovered the sources of manpower to meet the recruitment of the staffing schedule and to employee defective measures for attracting them man powering adequate members to facilitate effective selection of and efficient work force. Edwin b. Fillo define recruitment as The process of searching for prospective employees and stimulating them to apply for the job in the organization
Recruiting Process
1. Job analysis
The proper start to a recruitment effort is to perform a job analysis, to document the actual or intended requirement of the job to be performed. This information is captured in a job description and provides the recruitment effort with the boundaries and objectives of the search. Oftentimes a company will have job descriptions that represent a historical collection of tasks performed in the past. These job descriptions need to be reviewed or updated prior to a recruitment effort to reflect present day requirements. Starting recruitment with an accurate job analysis and job description ensures the recruitment effort starts off on a proper track for success.
2. Sourcing
Sourcing involves 1) advertising, a common part of the recruiting process, often encompassing multiple media, such as the Internet, general newspapers, job ad newspapers, professional publications, window advertisements, job centers, and campus graduate recruitment programs; and 2) recruitment research, which is the proactive identification of passive candidates who are happy in their current positions and are not actively looking to move companies. This initial research for so-called passive candidates, also called name generation, results in contact information of potential candidates who can then be contacted discreetly to be screened and approached on behalf of an executive search firm or corporate client (see below).
4. Lateral hiring
"Lateral hiring" refers to a form of recruiting; the term is used with two different, almost opposite meanings. In one meaning, the hiring organization targets employees of another, similar organization, possibly luring them with a better salary and the promise of better career opportunities. An example is the recruiting of a partner of a law firm by another law firm. The new lateral hire then has specific applicable expertise and can make a running start in the new
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job. In some professional branches such lateral hiring was traditionally frowned upon, but the practice has become increasingly more common. An employee's contract may have a noncompete clause preventing such lateral hiring. In another meaning, a lateral hire is a newly hired employee who has no prior specific applicable expertise for the new job, and for whom this job move is a radical change of career. An example is the recruiting of a university professor to become chairman of the board of a company.
5. On boarding
"On boarding" is a term which describes the process of helping new employees become productive members of an organization. A well-planned introduction helps new employees become fully operational quickly and is often integrated with a new company and environment. On boarding is included in the recruitment process for retention purposes. Many companies have on boarding campaigns in hopes to retain top talent that is new to the company; campaigns may last anywhere from 1 week to 6 months.
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Having defined your target and their decision criteria, the next step aims at identifying where you are most likely to find the target talent, including what communication channels would be effective for recruitment messages. If you dont accurately identify where they spend their time, there will be a low probability of you placing compelling information about the company and the opportunity in a place they will find or pay attention to. Common reason for failure: omitting this step altogether and deploying employment branding and recruitment marketing to channels that are easiest to deploy to.
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Sources of Recruitment
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2. Promotions
The employees are promoted from one department to another with more benefits and greater responsibility based on efficiency and experience.
4. Retired and Retrenched employees may also be recruited once again in case of
shortage of qualified personnel or increase in load of work. Recruitment such people save time and costs of the organizations as the people are already aware of the organizational culture and the policies and procedures.
5. The dependents and relatives of Deceased employees and Disabled employees are
also done by many companies so that the members of the family do not become dependent on the mercy of others.
2. Educational institutes
Various management institutes, engineering colleges, medical Colleges etc. are a good source of recruiting well qualified executives, engineers, medical staff etc. They provide facilities for campus interviews and placements. This source is known as Campus Recruitment.
3. Placement agencies
several private consultancy firms perform recruitment functions on behalf of client companies by charging a fee. These Agencies are particularly suitable for recruitment of executives and specialists. It is also known as RPO (Recruitment Process Outsourcing)
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4. Employment exchanges
Government establishes public employment exchanges throughout the country. These exchanges provide job information to job seekers and help employers in identifying suitable candidates.
5. Labour contractors
Manual workers can be recruited through contractors who maintain close contacts with the sources of such workers. This source is used to recruit labour for construction jobs.
6. Unsolicited applicants
Many job seekers visit the office of well-known companies on their own. Such callers are considered nuisance to the daily work routine of the enterprise. But can help in creating the talent pool or the database of the probable candidates for the organization.
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Internal Factors Affecting Recruitment The internal forces i.e. the factors which can be controlled by the organization are 1. Recruitment policy
The recruitment policy of an organization specifies the objectives of recruitment and provides a framework for implementation of recruitment programme. It may involve organizational system to be developed for implementing recruitment programmes and procedures by filling up vacancies with best qualified people. Factors Affecting Recruitment Policy Organizational objectives Personnel policies of the organization and its competitors Government policies on reservations. Preferred sources of recruitment. Need of the organization. Recruitment costs and financial implications.
4. Cost
Recruitment incur cost to the employer, therefore, organizations try to employ that source of recruitment which will bear a lower cost of recruitment to the organization for each candidate.
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2. Labour market
Employment conditions in the community where the organization is located will influence the recruiting efforts of the organization. If there is surplus of manpower at the time of recruitment, even informal attempts at the time of recruiting like notice boards display of the requisition or announcement in the meeting etc will attract more than enough applicants.
3. Image / goodwill
Image of the employer can work as a potential constraint for recruitment. An organization with positive image and goodwill as an employer finds it easier to attract and retain employees than an organization with negative image. Image of a company is based on what organization does and affected by industry. For example finance was taken up by fresher MBAs when many finance companies were coming up.
5. Unemployment rate
One of the factors that influence the availability of applicants is the growth of the economy (whether economy is growing or not and its rate). When the company is not creating new jobs, there is often oversupply of qualified labour which in turn leads to unemployment.
6. Competitors
The recruitment policies of the competitors also effect the recruitment function of the organizations. To face the competition, many a times the organizations have to change their recruitment policies according to the policies being followed by the competitors.
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Meaning
Objective
Process
It is a simple process.
It is a complicated process.
Hurdles
Approach
It is a positive approach.
It is a negative approach.
Sequence
It proceeds selection.
It follows recruitment.
Economy
It is an economical method.
It is an expensive method.
Time Consuming
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SELECTION Introduction
Selection The selection of a candidate with the right combination of education, work experience, attitude, and creativity will not only increase the quality and stability of the workforce, it will also play a large role in bringing management strategies and planning to fruition.
Definition
Selection is the process of differentiating between applicants in order to identify those with greater likelihood of success in a job. Selection is the process of obtaining and using information about job applicants in order to determine who should be hired for long- or short- term positions.
Selection Process
1 2 3
Preliminary Interviews
Application blanks Written Tests
4 5 6
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The Employee Selection Process Takes Place in Following Order 1. Preliminary Interviews
It is used to eliminate those candidates who do not meet the minimum eligibility criteria laid down by the organization. The skills, academic and family background, competencies and interests of the candidate are examined during preliminary interview. Preliminary interviews are less formalized and planned than the final interviews. The candidates are given a brief up about the company and the job profile; and it is also examined how much the candidate knows about the company. Preliminary interviews are also called screening interviews.
2. Application blanks
The candidates who clear the preliminary interview are required to fill application blank. It contains data record of the candidates such as details about age, qualifications, reason for leaving previous job, experience, etc.
3. Written Tests
Various written tests conducted during selection procedure are aptitude test, intelligence test, reasoning test, personality test, etc. These tests are used to objectively assess the potential candidate. They should not be biased.
4. Employment Interviews
It is a one to one interaction between the interviewer and the potential candidate. It is used to find whether the candidate is best suited for the required job or not. But such interviews consume time and money both. Moreover the competencies of the candidate cannot be judged. Such interviews may be biased at times. Such interviews should be conducted properly. No distractions should be there in room. There should be an honest communication between candidate and interviewer.
5. Medical examination
Medical tests are conducted to ensure physical fitness of the potential employee. It will decrease chances of employee absenteeism.
6. Appointment Letter
A reference check is made about the candidate selected and then finally he is appointed by giving a formal appointment letter.
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Resume screening
1. Resume Screening
The first step in the employee selection process is to solicit resumes. A person's resume will provide a recruiter with the initial insight necessary to determine whether a candidate should be taken to the next step. A resume should show academic achievements, experience, and leadership or community involvement. The resume should be free of typos, and if you have lots of candidates to choose from, you should focus on resumes tailored to the job for which you are recruiting.
2. Phone Interviews
Contact the people with resumes that show the most achievement and contain the most relevant experience for the job. Schedule phone interviews with these applicants. Phone interviews can further winnow your pool of applicants. For example, if you are recruiting for a customer service position and applicants sound unprofessional or easily flustered or are poor communicators, thank them for their time and move on to the next candidate. This saves the hiring manager time because only candidates who provide good answers, show that they can think quickly on their feet and behave in a professional manner will be brought in for a face-to-face interview.
3. Face-to-Face Interviews
The face-to-face interview is the final step in the employee selection process. A face-to-face interview allows you to get the best feel for whether a candidate is right for the job. An interview provides further insight as to professionalism, people skills and expertise. Minor issues--whether they are dressed appropriately for the interview, have a firm handshake, and look you in the eye when they first meet you--can all be assessed. In the business world, they make a surprising difference. The resume screening and the phone interview will provide you with most of what you need to know, but a face-to-face interview will provide the nuances necessary to make your final decision.
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2. Biographical Data
The content of biographical data instruments varies widely, and may include such areas as leadership, teamwork skills, specific job knowledge and specific skills (e.g., knowledge of certain software, specific mechanical tool use), interpersonal skills, extraversion, creativity, etc. Biographical data typically uses questions about education, training, work experience, and interests to predict success on the job. Some biographical data instruments also ask about an individuals attitudes, personal assessments of skills, and personality.
4. Integrity Tests
Integrity tests assess attitudes and experiences related to a persons honesty, dependability, trustworthiness, reliability, and pro-social behavior. These tests typically ask direct questions about previous experiences related to ethics and integrity OR ask questions about preferences and interests from which inferences are drawn about future behavior in these areas. Integrity tests are used to identify individuals who are likely to engage in inappropriate, dishonest, and antisocial behavior at work.
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5. Interviews
Interviews vary greatly in their content, but are often used to assess such things as interpersonal skills, communication skills, and teamwork skills, and can be used to assess job knowledge. Well-designed interviews typically use a standard set of questions to evaluate knowledge, skills, abilities, and other qualities required for the job. The interview is the most commonly used type of test. Employers generally conduct interviews either face-to-face or by phone.
7. Personality Tests
Some commonly measured personality traits in work settings are extraversion, conscientiousness, openness to new experiences, optimism, agreeableness, service orientation, stress tolerance, emotional stability, and initiative or proactively. Personality tests typically measure traits related to behavior at work, interpersonal interactions, and satisfaction with different aspects of work. Personality tests are often used to assess whether individuals have the potential to be successful in jobs where performance requires a great deal of interpersonal interaction or work in team settings.
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