EMPLOYEE RESOURCING

1. DEMAND AND SUPPLY IN HUMAN RESOURCE FORECASTING

This process estimates the number and type of employees an organization will need (demand) and the number and type of employees it will have available (supply) in the future.

Human Resource Demand Forecasting (What we need)

• Definition: Estimating the future quantity and quality of employees required to achieve organizational goals.

• Techniques:

  • Managerial Judgment/Expert Opinion: Subjective estimates from managers (e.g., Delphi technique, Nominal Group Technique).

  • Statistical/Quantitative Methods:

    • Trend Analysis: Analyzing past staffing levels and their relationship with business factors (e.g., sales volume).

    • Ratio Analysis: Determining the ratio between production volume and the number of employees required (e.g., sales staff per $1 million in sales).

    • Regression Analysis: Statistically examining the relationship between staffing levels and key business indicators.

Human Resource Supply Forecasting (What we have)

• Definition: Estimating the future availability of employees both internally (current staff) and externally (the labor market).

• Internal Supply Techniques:

  • Staffing Tables/Personnel Records: Basic count of employees by job level, skills, and demographic data.

  • Skills/Management Inventories: Detailed records of employees' skills, experience, training, and development potential.

  • Markov Analysis (Transition Matrix): Tracks the percentage of employees who remain in a job, move to another job, or leave the organization over a period.

  • Succession Planning: Identifying and developing employees for key positions.

• External Supply Techniques: Assessing the external labor market, competitor practices, economic conditions, and demographic shifts.

Bridging the Gap

• The difference between demand and supply reveals a shortage (demand > supply) or a surplus (supply > demand).

• Shortage Strategies: Recruitment, training, overtime, temporary workers, outsourcing.

• Surplus Strategies: Hiring freeze, early retirement, reduced hours, layoffs, demotion, severance.

2. RECRUITMENT AND SELECTION

This is the system used to attract and choose the most suitable candidates for vacant positions.

Recruitment (Attracting Candidates)

• Definition: The process of seeking out and attracting a pool of qualified applicants from which future employees can be chosen.

• Sources of Recruitment:

  • Internal: Promotions, transfers, employee referrals, internal job postings.

    • Pros: Faster, cheaper, familiar with the culture, motivational for existing staff.

    • Cons: Smaller pool, "inbreeding" of ideas, potential rivalry.

  • External: Job advertisements, employment agencies, educational institutions, job fairs, online job boards, social media.

    • Pros: Fresh perspectives, larger pool of specialized talent.

    • Cons: More time/cost, longer orientation/training period, risk of poor fit.

Selection (Choosing the Best Fit)

• Definition: The process of screening and shortlisting applicants to identify the most appropriate candidate who meets the job requirements.

• Key Selection Steps (Vary by organization):

  1. Preliminary Screening: Review of application forms/resumes.

  2. Selection Tests: Assessing skills, aptitude, personality (e.g., psychometric tests, job knowledge tests).

  3. Interviews: Structured (standardized questions), unstructured, or behavioral interviews (asking about past behavior).

  4. Reference and Background Checks: Verifying credentials, work history, and character.

  5. Physical/Medical Examination: Ensuring fitness for the role (if legally required/relevant).

  6. Hiring Decision: Offer of employment to the most qualified candidate.

  7. Job Offer and Contract: Formalizing the employment agreement.

3. Conduct Job Analysis

Job analysis is the fundamental process that underpins both HR planning and resourcing activities.

Definition and Purpose

• Definition: A systematic process of determining the duties, tasks, and responsibilities of a job, and the knowledge, skills, and abilities (KSAs) required to perform it successfully.

• Purpose: Provides the foundational information for almost all HR functions, including:

  • Job Design: Structuring the way work is performed.

  • Recruitment & Selection: Defining what skills to look for.

  • Training & Development: Identifying skill gaps.

  • Performance Management: Establishing performance standards.

  • Compensation: Determining the value of the job.

Key Outputs of Job Analysis

1. Job Description (JD): A written statement of what the job holder does, how they do it, and under what conditions.

   • Key Sections: Job title, reporting relationships, summary of the job, essential duties and responsibilities.

2. Job Specification (JS): A written statement of the minimum acceptable qualifications a person must possess to perform a job successfully.

   • Key Sections: Required education, experience, KSAs (Knowledge, Skills, Abilities), and physical/personal characteristics.

Methods of Collecting Job Analysis Data

• Observation: Watching the employee perform the job (best for manual, repetitive tasks).

• Interviews: Asking employees and supervisors about the duties and requirements of the job.

• Questionnaires: Having employees and supervisors complete structured forms/checklists (e.g., Position Analysis Questionnaire - PAQ).

• Diaries/Logs: Employees recording their daily activities over a period of time.