Human Resource

Management:
An Asian Perspective
(Second Edition)

Chapter 5

HR Planning and
Recruiting

Gary Dessler and Chwee Huat Tan

© 2009 Pearson Education South Asia Pte Ltd.
All rights reserved.
 Review: Job Analysis (KWLH)

1. Discuss the nature of job analysis (what it is and how

it is used)
2. Know how to collect job analysis information,
including interview, questionnaire, observation and
participant’s diary
3. Write job descriptions, job summaries and job
specifications
4. Explain what job analysis is, what it means and how it
is done in practice
5. Explain what competence-based job analysis is

© 2009 Pearson Education South Asia. All rights reserved. 4–2

  http://campus.51job.com/pfizer/
tour.htm

© 2009 Pearson Education South Asia. All rights reserved. 5–3

 2016 HSBC China Campus
Recruitment

 http://campus.51job.com/hsbc/
© 2009 Pearson Education South Asia. All rights reserved. 5–4
 Video:

 KPMG The Difference in Us

– Organizational image
– Information about the job and company

© 2009 Pearson Education South Asia. All rights reserved. 5–5

 Discussion: Hiring New Teachers for
IBS
A decade ago vs. today
– Why are they recruiting?
– How do they know the number of new teachers
they need?
– How do they know what type of people are
qualified?
– Where can they find those people?
– How can they attract them?

6
  What kind of candidates should we target at?
– Number of students: increased enrollment in
undergraduate programs during early 2000
– Features of the students: increased enrollment of
international students since 2010
 Are they attracted by IBS?
– Availability of hukou
– Research team
– Kindergarten

© 2009 Pearson Education South Asia. All rights reserved. 5–7

 After studying this chapter,
you should be able to:

1. Explain the main techniques used in HR

planning and forecasting
2. Discuss the main internal sources of candidates
3. Discuss the main external sources of candidates
4. Explain how to recruit job candidates
5. Develop a “help wanted” ad
6. Discuss recruitment practices in some
companies in Asia

© 2009 Pearson Education South Asia. All rights reserved. 5–8

 The Recruitment and Selection
Process
HR Planning

The recruitment and selection process is a series of

hurdles aimed at selecting the best candidate for the job.
© 2009 Pearson Education South Asia. All rights reserved. 5–9
 The Recruitment and Selection
Process – Steps
1. Decide what positions you’ll have to fill through
personnel planning and forecasting.
2. Build a pool of candidates for these jobs by recruiting
internal or external candidates.
3. Have candidates complete application forms and
perhaps undergo an initial screening interview.
4. Use selection techniques 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.
© 2009 Pearson Education South Asia. All rights reserved. 5–10
 Planning and Forecasting

 Employment or personnel planning

– The process of deciding what positions the firm will
have to fill, and how to fill them.
 Succession planning
– The process of deciding how to fill the company’s
most important executive jobs.
 What to forecast?
– Overall personnel needs
– The supply of inside candidates
– The supply of outside candidates
© 2009 Pearson Education South Asia. All rights reserved. 5–11
 Linking Employer’s Strategy
to Plans

Figure 5.2
Linking the Company’s Strategic Plan to the HR Plan

© 2009 Pearson Education South Asia. All rights reserved. 5–12

 Forecasting HR Needs

 First step in HR planning

– Forecast revenue
– Estimate the number of persons needed to achieve this volume

Figure 5.3
Forecast Techniques in HR Planning
© 2009 Pearson Education South Asia. All rights reserved. 5–13
 Forecasting HR Needs

 Trend analysis
– The study of a firm’s past employment needs over a
period of years to predict future needs.

 Ratio analysis
– A forecasting technique for determining future staff
needs by using ratios between a causal factor and
the number of employees needed.
– Assumes that the relationship between the causal
factor and staffing needs is constant.

© 2009 Pearson Education South Asia. All rights reserved. 5–14

 Forecasting HR Needs

 Scatter plot
– A graphical method used to help identify the
relationship between two variables.
Size of Hospital Number of
(Number of Beds) Registered Nurses
200 240
300 260
400 470
500 500
600 620
700 660
800 820
900 860

© 2009 Pearson Education South Asia. All rights reserved. 5–15

 Forecasting HR Needs

 Scatter plot
Determining the
Relationship Between
Hospital Size and
Number of Nurses

© 2009 Pearson Education South Asia. All rights reserved. 5–16

 Forecasting HR Needs

 Computerized forecasts
– The use of software packages to determine of
future staff needs by projecting sales, volume of
production, and personnel required to maintain a
volume of output.
• Generates figures on average staff levels required to meet
product demands, as well as forecasts for direct labor,
indirect staff, and exempt staff.
• Typical metrics: direct labor hours required to produce one
unit of product (a measure of productivity), and three sales
projections—minimum, maximum, and probable.

© 2009 Pearson Education South Asia. All rights reserved. 5–17

 Forecasting HR Needs

 Managerial Judgment
– To modify forecast based on factors e.g.
entering into a new market
– Difficult to take a long-term perspective when
market conditions change dramatically

© 2009 Pearson Education South Asia. All rights reserved. 5–18

 Forecasting the Supply of
Inside Candidates
 Qualifications inventories
– 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.

© 2009 Pearson Education South Asia. All rights reserved. 5–19

 Forecasting the Supply of
Inside Candidates
 Manual System and Replacement Chart
– Personnel replacement chart
• Company records showing present
performance and promotability of inside
candidates for the most important positions.
– Position replacement card
• A card prepared for each position in a company
to show possible replacement candidates and
their qualifications.

© 2009 Pearson Education South Asia. All rights reserved. 5–20

 Forecasting the Supply of
Inside Candidates
Manual System and Replacement Chart (cont’d)

Management
Replacement Chart
Showing
Development Needs
of Future Divisional
Vice President

© 2009 Pearson Education South Asia. All rights reserved. 5–21

 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

© 2009 Pearson Education South Asia. All rights reserved. 5–22

 Forecasting the Supply of
Inside Candidates
 Matter of Privacy
– Need to ensure the security of HR information
• There is a lot of HR information to keep secure.
• Control of HR information can be established through
the use of access matrices that limit users.
• Legal considerations: The Federal Privacy Act of
1974 gives employees rights regarding who has
access to information about their work history and job
performance.

© 2009 Pearson Education South Asia. All rights reserved. 5–23

 Forecasting the Supply of
External Candidates
 Factors impacting the supply of external
candidates
– General economic conditions
– Expected unemployment rate
 Sources of information
– Forecast by business newspapers & publications
– Economic projections
• Government agencies
• Department of Labor or Manpower
• Department of Statistics
• Private consultants

© 2009 Pearson Education South Asia. All rights reserved. 5–24

 Options for Reducing
an Expected Labor Surplus

Option Speed Human Suffering

1. Downsizing Fast High
2. Pay reductions Fast High
3. Demotions Fast High
4. Transfers Fast Moderate
5. Work sharing Fast Moderate
6. Hiring freeze Slow Low
7. Natural attrition Slow Low
8. Early retirement Slow Low
9. Retraining Slow Low

25
5-25
 Options for Avoiding an Expected Labor
Shortage

Option Speed Revocability

1. Overtime Fast High

2. Temporary Fast High
employees Fast High
3. Outsourcing Slow High
4. Retrained transfers Slow Moderate
5. Turnover reductions Slow Low
6. New external hires Slow Low
7. Technological
innovation

26
5-26
 Effective Recruiting

 External factors affecting recruiting:

– Looming undersupply of workers
– Lessening of the trend in outsourcing of jobs
– Increasingly fewer “qualified” candidates
 Internal factors affecting recruiting:
– The consistency of the firm’s recruitment efforts with its
strategic goals
– The available resources, types of jobs to be recruited
and choice of recruiting methods
– Non-recruitment HR issues and policies: C&B
– Line and staff coordination and cooperation: HR and line
managers
© 2009 Pearson Education South Asia. All rights reserved. 5–27
 Mismatch

 If Unemployment Is So High, Why Is Hiring

So Hard?

 Listening: “Employers: Qualified Workers

Aren't In Jobs Pool”

© 2009 Pearson Education South Asia. All rights reserved. 5–28

 Effective Recruiting

 Recruiting Yield Pyramid

– Historical arithmetic relationships between recruitment
leads and invitees, interviews and offers made, and offers
made and offers accepted
– Used to calculate the number of applicants they must
attract to hire the required number of employees

© 2009 Pearson Education South Asia. All rights reserved. 5–29

 Effective Recruiting

 Advantages of centralizing recruitment

– Strengthens employment brand
– Ease in applying strategic principles
– Reduces duplication of HR activities
– Reduces the cost of new HR technologies
– Builds teams of HR experts
– Provides for better measurement of HR
performance
– Allows for the sharing of applicant pools

© 2009 Pearson Education South Asia. All rights reserved. 5–30

 Recruitment Assistance in Asia

 Hong Kong Labor Department

– Provides services to job seekers & employers
– Tips on job hunting and interviews
 Singapore Workforce Development Agency
– Provides information on job market, jobs available in
specific industries
 Singapore EDB (Economic Development Board)
– Attract international talents

© 2009 Pearson Education South Asia. All rights reserved. 5–31

 Internal Sources of Candidates:
Hiring from Within
 Advantages
– Foreknowledge of candidates’ strengths and weaknesses
– More accurate view of candidate’s skills
– Candidates have a stronger commitment to the company
– Increases employee morale
– Less training and orientation required
 Disadvantages
– Failed applicants become discontented
– Time wasted interviewing inside candidates who will not be
considered
– Inbreeding of the status quo

© 2009 Pearson Education South Asia. All rights reserved. 5–32

 Internal Sources of Candidates:
Hiring from Within

Figure 5.7
Benefits of Internal Candidates
© 2009 Pearson Education South Asia. All rights reserved. 5–33
 Internal Sources of Candidates:
Hiring from Within
 Finding Internal Candidates
– Job posting
• Publicizing an open job to employees (often by
literally posting it on bulletin boards) and listing
its attributes.
• Examination of HR records for potential
candidates

© 2009 Pearson Education South Asia. All rights reserved. 5–34

 Internal Sources of Candidates:
Hiring from Within
 Re-hiring former employees
– Advantages:
• They are known quantities.
• They know the firm and its culture.
– Disadvantages:
• They may have less-than positive attitudes.
• Rehiring may sent the wrong message to
current employees about how to get ahead.
– E.g. Lenovo vs. Huawei

© 2009 Pearson Education South Asia. All rights reserved. 5–35

 Succession Planning

 Succession planning
– The process of ensuring a suitable supply of
successors for current and future senior or
key jobs.
 Succession planning steps:
– Identifying and analyzing key jobs.
– Creating and assessing candidates.
– Selecting those who will fill the key
positions.
© 2009 Pearson Education South Asia. All rights reserved. 5–36
 Succession Planning
Step
Step 1:
1: Identify
Identify and
and analyze
analyze key
key jobs
jobs
Based
Based on on the
the company’s
company’s strategic
strategic goals,
goals, top
top management
management and and thethe HRHR
manager
manager identify
identify what
what the
the company’s
company’s future
future key
key positions
positions will
will be.
be. They
They
then
then write
write job
job descriptions
descriptions and
and specifications
specifications for
for these
these positions.
positions. For For
instance,
instance, ifif the
the company
company plans
plans to
to expand
expand abroad,
abroad, itit may
may look
look for
for talent
talent
in
in its
its international
international division.
division.

Step
Step 2:
2: Assess
Assess candidates
candidates
After
After identifying
identifying future
future key
key positions,
positions, the
the management
management teamteam assesses
assesses
candidates
candidates forfor these
these jobs.
jobs. ItIt then
then provides
provides them
them with
with the
the
developmental
developmental experience
experience theythey need
need inin these
these positions.
positions.
Step
Step 3:
3: Select
Select those
those who
who will
will fill
fill the
the positions
positions
Top
Top management
management selects
selects those
those who
who will
will fill
fill the
the key
key positions.
positions.
© 2009 Pearson Education South Asia. All rights reserved. 5–37
 External Sources of Candidates

1.Advertising
– 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
 Constructing an effective ad
– Wording related to job interest factors should evoke
the applicant’s attention, interest, desire, and action
(AIDA) and create a positive impression of the
company
© 2009 Pearson Education South Asia. All rights reserved. 5–38
 External Sources of Candidates

2.Types of employment agencies

– Government and non-profit agencies
– Commercial agencies

© 2009 Pearson Education South Asia. All rights reserved. 5–39

 External Sources of Candidates

 Reasons for using an agency:

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

© 2009 Pearson Education South Asia. All rights reserved. 5–40

 External Sources of Candidates

 Avoiding problems with employment agencies:

– Give the agency an accurate and complete job description.
– Make sure tests, application blanks, and interviews are part of the
agency’s selection process.
– 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.
– 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.
– Review the Internet and a few back issues of the Sunday classified
ads to discover the agencies that handle the positions to be filled.
© 2009 Pearson Education South Asia. All rights reserved. 5–41
 External Sources of Candidates

Temp Agencies and Alternative Staffing

Benefits of Temps Costs of Temps
– Paid only when – Fees paid to temp
working agencies
– More productive – Lack of commitment
– No recruitment, to firm
screening, and
payroll
administration costs

© 2009 Pearson Education South Asia. All rights reserved. 5–42

 External Sources of Candidates

3. Executive recruiters (headhunters)

– 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.

– Internet technology and specialization trends are

changing how candidates are attracted and how
searches are conducted.

© 2009 Pearson Education South Asia. All rights reserved. 5–43

 External Sources of Candidates

 Advantages of using executive recruiters:

– Able to contact qualified, currently employed
candidates who are not actively looking to change jobs
– Can keep your company’s name confidential until late
into the search process.
– Save top management’s time by advertising for the
position and screening applicants
– Recruiter’s fee may turn out to be insignificant
compared with cost of executive time saved

© 2009 Pearson Education South Asia. All rights reserved. 5–44

 External Sources of Candidates

 Disadvantages of using executive

recruiters:
– Employer has to provide comprehensive
explanation of what sort of candidate is required
and why
– Some recruiters are salespeople, and may be
more interested in persuading to the employer to
hire a candidate rather than finding one who will
really do the job.

© 2009 Pearson Education South Asia. All rights reserved. 5–45

 External Sources of Candidates

 Guidelines for choosing a recruiter

– Make sure the firm is capable of conducting a
thorough search.
– Meet the individual who will actually handle your
assignment.
– Ask how much the search firm charges.

© 2009 Pearson Education South Asia. All rights reserved. 5–46

 External Sources of Candidates

4.Campus recruiting
– Recruiting goals
• To determine if the candidate is worthy of further
consideration
• To attract good candidates
– Consists of:
• On-site visits
• Internships

© 2009 Pearson Education South Asia. All rights reserved. 5–47

 External Sources of Candidates

On-site visits
– Invitation letters should be warm and friendly but
businesslike.
– Assign a specific person to meet the applicant and play
host.
– Prepare an information package including the applicant’s
schedule as well as other information regarding the
company.
– Carefully plan the interviews and keep to schedule.
– Make a timely employment offer, if any, as soon as
possible.
– Frequent follow-ups may help to attract the applicant.
© 2009 Pearson Education South Asia. All rights reserved. 5–48
 External Sources of Candidates

 Problems with campus recruiting:

– Expensive and time-consuming
• Schedules must be set in advance
• Company brochures need to be printed
• Records of interviews kept
• Much time spent on campus
– Recruiters themselves may be ineffective
• Some recruiters are unprepared
• They do not effectively screen the candidates
• They must be trained before they visit the campus

© 2009 Pearson Education South Asia. All rights reserved. 5–49

 External Sources of Candidates

5. Employee referral
– Applicants who 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

© 2009 Pearson Education South Asia. All rights reserved. 5–50

 External Sources of Candidates

6. Walk-in
– Direct applicants who seek employment with
or without encouragement from other
sources.
– Courteous treatment of any applicant is a
good business practice.

© 2009 Pearson Education South Asia. All rights reserved. 5–51

 External Sources of Candidates

7. Recruiting via the Internet

– More firms and applicants are using the
Internet in their job searches.
– Advantages of Internet recruiting
• Cost-effective way to publicize job openings
• More applicants attracted over a longer period
• Immediate applicant responses
• Online prescreening of applicants
• Links to other job search sites
• Automation of applicant tracking and evaluation
– The use of social media
© 2009 Pearson Education South Asia. All rights reserved. 5–52
Relative Recruiting Source
Effectiveness Based on New Hires

5–53
 Developing and Using
Application Forms
 Application form
– Provides information on education, prior work
record, and skills
 Uses of information from applications
– Judgment about the applicant’s education and
experience qualifications
– Conclusion about the applicant’s previous progress
and growth
– Indication of the applicant’s employment stability
– Prediction about which candidate is likely to
succeed on the job
© 2009 Pearson Education South Asia. All rights reserved. 5–54
 Developing and Using
Application Forms
 Employers should carefully review application
forms to ensure that they comply with equal
employment laws.
 Questions to beware of include:
– Education
– Arrest record
– Notify in case of emergency
– Membership in organizations
– Physical handicaps
– Marital status
– Housing
© 2009 Pearson Education South Asia. All rights reserved. 5–55
 Recruitment Research Findings: Practical Applications for
Managers
Recruitment Research Finding Practical Applications for Managers
The recruitment source affects the characteristics Use sources such as referrals from current
of applicants you attract. employees that yield applicants more likely to be
better performers.
Recruitment materials have a more positive impact Provide applicants with information on aspects of
if they contain more specific information. the job that are important to them, such as salary,
location, and diversity.
Organizational image influences applicants’ initial Ensure all communications regarding an
reactions. organization provide a positive message
regarding the attractiveness of the organization
as a place to work.
Applicants with a greater number of job Ensure initial recruitment activities (e.g., Web site,
opportunities are more attentive to early brochure, on-campus recruiting) are attractive to
recruitment activities. candidates.
Realistic job previews that highlight both the Provide applicants with a realistic picture of the
advantages and the disadvantages of the job job and organization, not just the positives.
reduce subsequent turnover.
Applicants will infer (perhaps erroneous) Provide clear, specific, and complete information
information about the job and company if the in recruitment materials so that applicants do not
information is not clearly provided by the company. make erroneous inferences about the job or the
employer.
Recruiter warmth has a large and positive effect on Choose individuals who have contact with
applicants’ decisions to accept a job. applicants for their interpersonal skills. 5–56
 Case study: Goldman Sachs

 The Real Reason New MBAs Want to Work

for Goldman Sachs

– What attracts top talent to go to Goldman Sachs?

© 2009 Pearson Education South Asia. All rights reserved. 5–57

  “When Hiring Graduates, Avoid These
Mistake”
– What mistakes are companies making when
recruiting?
– What suggestions are given?
– Which of the suggestions are you most concerned
about?

© 2009 Pearson Education South Asia. All rights reserved. 5–58

 Recruitment in China
 Before economic reforms:
– Recruit according to government plan
– 接班 jie ban
– 分配工作 allocation
 After economic reforms:
– Open to society (market forces)
– Based on qualifications
 Recruitment fairs in major cities organized by agenciesTwo-way
Recruitment and Selection
– Policy shift away from centrally-planned allocation system to one
that’s market-oriented
– Objective is to attract and retain competent employees
– Policy requires the labor bureau to assist job seekers
– Jobseekers now introduce themselves to companies by sending
resumes and attending interviews.
© 2009 Pearson Education South Asia. All rights reserved. 5–59
 Recruitment in China

Recruiting Managers for China Operations

© 2009 Pearson Education South Asia. All rights reserved. 5–60

 Recruitment in Hong Kong
 Talents Scheme
– Working visas for skilled persons
 Admission of Mainland Professionals
– Attract talents from mainland
 Anti-discrimination Laws
– Gender, disability, family status
– Enforced by Equal Opportunities Commission
 Quality migrant admission scheme
– February 2006
– Finance ， Accounting ， High-Tech, Telecommunications ， Business
– http://www.hbrc.com/news/view_518065.html
– http://news.ifeng.com/taiwan/hongkong/200801/0113_1424_363410.shtml

© 2009 Pearson Education South Asia. All rights reserved. 5–61

 Recruitment in Malaysia

 Bumiputra Policy
– Proportionate racial mix
 Recruitment methods
– Newspaper ads
 Need more foreign skilled workers
 Preference given to projects related to
Multimedia Super corridor IT industry

© 2009 Pearson Education South Asia. All rights reserved. 5–62

 Recruitment in Philippines

 About 2 million overseas Filipino workers

(OFW)
 Overseas labor placement program was set up
in 1970s as a “temporary” measure to ease
unemployment
 Now a permanent feature and supported by
the Philippine Overseas Employment
Administration (POEA) and labor attaches in
embassies

© 2009 Pearson Education South Asia. All rights reserved. 5–63

 Recruitment in Singapore

 Attracting overseas talents

– Government has encouraged employers to recruit
skilled manpower from abroad.
– Immigration rules have been relaxed to allow
professionals and skilled workers to become
permanent residents.
– MOM’s International Manpower Division oversees a
network of Contact Singapore offices around the
world.

© 2009 Pearson Education South Asia. All rights reserved. 5–64

 Recruitment in South Korea

 Common methods
– Large companies tend to use the mass media
– Small firms tend to use word of mouth
 Labor Standard Act
– Anti-discrimination: gender, nationality, religion,
social status
 Restrictions on entry of skilled foreign
workers have been abolished

© 2009 Pearson Education South Asia. All rights reserved. 5–65

 New trend in recruiting process

 Listening:“Job Seekers Find New Rules of

Recruitment”
 http://www.npr.org/templates/story/story.php?
storyId=105483848

 What are the do’s and don’ts suggested by

the speakers in the report?

© 2009 Pearson Education South Asia. All rights reserved. 5–66

 Homework
 HRM news
 Next week: Read Dessler & Tan (2012): Chap. 6 & 7
– Employee Testing and Selection
– Interviewing Candidates
 Visit QQ email:
 Watch the video:
– Craft Stories for the Job Interview
http://v.youku.com/v_show/id_XMjI1OTU3ODE2.html?
from=y1.2-1-87.4.3-1.12-1-2-2
 Do the Free Personality Test
– http://www.teamtechnology.co.uk/mmdi/questionnaire/

© 2009 Pearson Education South Asia. All rights reserved. 5–67