24 Human Resource Planning, Recruitment and Training

24.1 Human Resource Planning

Human resource planning (HRP) is the process of forecasting an organisation’s future demand for, and supply of, the right type of people in the right number, at the right place and at the right time (dessler2020?). Aswathappa adds that HRP is “a strategy for the acquisition, utilisation, improvement and preservation of an enterprise’s human resources” (aswathappa2020?).

Three Working Definitions

Author	Definition	What it foregrounds
Edwin B. Geisler	“The process of determining and assuring that the organisation will have an adequate number of qualified persons available at proper times, performing jobs which would meet the needs of the organisation.”	Forecast match
K. Aswathappa	“A strategy for the acquisition, utilisation, improvement and preservation of an enterprise’s human resources.”	Strategic
Coleman	“The process of determining manpower requirements and the means for meeting those requirements.”	Practical

24.1.1 Steps in HRP

Standard Six-Step HRP Process

#	Step	What happens
1	Analyse organisational objectives and strategy	Translate the business plan into people implications
2	Forecast human-resource demand	What people will be needed — number and type
3	Forecast human-resource supply	Internal (existing employees) + external (labour market)
4	Identify the gap (or surplus)	Demand minus supply
5	Develop and implement action plans	Recruitment, redeployment, training, retention; or VRS / right-sizing
6	Monitor, control and feedback	Adjust as actuals deviate from forecasts

24.1.2 Forecasting techniques

Demand and Supply Forecasting Techniques

Family	Techniques
Demand — quantitative	Trend analysis, ratio analysis, regression, work-study (productivity-based)
Demand — qualitative	Managerial judgment, Delphi technique, scenario planning
Supply — internal	Skills inventory, replacement charts, Markov analysis (transition probabilities)
Supply — external	Labour-market scanning, industry studies, demographic analysis

24.1.3 Importance of HRP

Without HRP, the organisation faces people gluts (cost) and people shortages (lost output) — both expensive. Done well, HRP feeds talent pipelines, succession plans, training calendars and pay budgets.

24.2 Recruitment

Recruitment is the process of attracting and identifying a pool of qualified candidates from which suitable employees can be selected. Edwin Flippo’s classic definition: “the process of searching for prospective employees and stimulating them to apply for jobs in the organisation” (flippo1984?).

24.2.1 Internal vs external sources

Sources of Recruitment

Source	Methods	Strengths	Weaknesses
Internal	Promotion, transfer, employee referral, internal job posting, recall of retirees	Lower cost; known fit; motivates incumbents	Limited talent pool; politics; risk of inbreeding
External	Advertisements, campus placements, employment exchanges, employee referrals, executive search firms, web portals (Naukri, LinkedIn), walk-ins, social media	Wider pool; fresh perspective; specialist skills	Higher cost; longer time-to-hire; higher attrition risk

24.2.2 Recruitment process

Five-Step Recruitment Process

Step	Activity
1	Recruitment planning — number, type, locations
2	Strategy development — internal vs external; sources
3	Searching — activate the chosen sources
4	Screening — initial filter on resumes / applications
5	Evaluation and control — yield ratios, time-to-hire, cost-per-hire

24.2.3 Yield ratios

A yield ratio is the ratio of inputs to outputs at each stage of recruiting. The classic example: 1,000 applications → 200 invited for interview → 50 offered → 25 accepted = a 25:1 application-to-acceptance ratio. Yield ratios feed back into the next planning cycle.

24.3 Selection

If recruitment attracts candidates, selection picks the right one. Selection is the process of choosing the most suitable candidate from the pool of applicants. Dale Yoder’s working definition: “a process by which qualified personnel can be chosen from a number of applicants” (aswathappa2020?).

24.3.1 The classical selection process

The Classical Multi-Stage Selection Process

Stage	Tool / activity
1	Preliminary interview / screening
2	Application blank / form
3	Selection tests — aptitude, personality, integrity, work-sample
4	Selection interview — structured, unstructured, panel, stress
5	Reference and background checks
6	Medical / physical examination
7	Final selection and appointment
8	Induction / orientation

24.3.2 Selection tests

Five Common Selection Tests

Test	Measures
Cognitive ability / aptitude	Reasoning, numerical, verbal — strongest single predictor
Personality	Big Five, MBTI
Work sample / job knowledge	What the candidate can actually do
Integrity / honesty	Predicts counterproductive behaviour
Assessment centre	Bundle of role-plays, in-baskets, group exercises — used for managerial selection

24.3.3 Reliability and validity

A good selection tool must be reliable (consistent over time and across assessors) and valid (predicts actual job performance). Validity types: content, criterion-related (concurrent or predictive), construct. The empirical finding that general mental ability + integrity tests together predict performance better than any other combination is well-established (Schmidt & Hunter, 1998) (schmidthunter1998?).

24.4 Training and Development

Training is the systematic process of altering employees’ behaviour and knowledge to better achieve organisational objectives. Development is the broader, longer-term preparation of employees for future roles. Aswathappa: “training is concerned with imparting specific skills for specific purposes; development is concerned with the growth of the whole person” (aswathappa2020?).

Training vs Development

Feature	Training	Development
Focus	Specific skill, current job	Whole person, future role
Time horizon	Short term	Long term
Target	Operative employees	Managers and high-potential employees
Result	Improved job performance	Career growth, leadership readiness

24.4.1 Training-needs analysis

A robust training-needs analysis (TNA) examines the gap at three levels (McGehee and Thayer, 1961) (mcgeheethayer1961?):

Three-Level TNA

Level	Question
Organisation	Where is training needed in the firm overall?
Task / operations	What skills does this job demand?
Person	Who specifically needs training, and on what?

24.4.2 Methods of training

On-the-Job and Off-the-Job Training Methods

Type	Examples
On-the-job (OJT)	Job rotation, coaching, mentoring, apprenticeship, internship, understudy
Off-the-job	Lectures, case studies, role-play, simulation, behaviour modelling, vestibule training, conferences, sensitivity training (T-group), management games
Digital / blended	E-learning, MOOCs, mobile micro-learning, VR-based training, LXPs

24.4.3 Kirkpatrick’s four-level evaluation model

Donald Kirkpatrick’s 1959 model is the classic framework for evaluating training (kirkpatrick1959?):

Kirkpatrick’s Four Levels of Training Evaluation

Level	What it measures	Tool
1. Reaction	Did learners enjoy the training?	Smile sheet / feedback form
2. Learning	Did they acquire the intended knowledge or skill?	Pre- and post-tests
3. Behaviour	Are they applying it on the job?	Manager observation, 360° feedback
4. Results	Did it deliver business outcomes?	KPIs — productivity, quality, cost

flowchart LR
  R[1. Reaction<br/>Did they like it?] --> L[2. Learning<br/>Did they learn?]
  L --> B[3. Behaviour<br/>Are they doing it?]
  B --> RES[4. Results<br/>Did the business benefit?]
  style R fill:#E3F2FD,stroke:#1565C0
  style RES fill:#E8F5E9,stroke:#1B5E20

Jack Phillips later added a fifth level — Return on Investment (ROI) — converting Level 4 outcomes into rupee terms.

24.4.4 Career development

A modern HR system pairs training with structured career planning — succession plans, individual development plans (IDPs), competency frameworks, and dual-career ladders (technical and managerial).

24.5 Practice Questions

Q 01 HRP Easy

Human resource planning primarily aims to ensure:

AThe right number of right people, with the right skills, at the right time and place
BLower wages
CMaximum overtime
DAutomation of all tasks

View solution

Correct Option: A

The textbook test of HRP — number, skill, time, place — is the standard four-corner check.

Q 02 Markov Medium

Markov analysis is used in HR planning to:

AForecast aggregate demand for HR
BEstimate internal supply through transition probabilities
CRun a sensitivity / what-if analysis
DSchedule training programmes

View solution

Correct Option: B

Markov analysis models movement of employees between job states (promotion, transfer, exit) using transition probabilities; an internal-supply technique.

Q 03 Recruitment Source Easy

Promotion of an existing employee to a higher post is an example of:

AInternal recruitment
BExternal recruitment
COutsourcing
DCampus placement

View solution

Correct Option: A

Promotion, transfer, internal job posting and employee referral are internal sources.

Q 04 Yield Ratio Medium

If 1,000 applications received yield 50 offers and 25 accept, the application-to-acceptance ratio is:

A1 : 25
B25 : 1
C40 : 1
D2 : 1

View solution

Correct Option: C

1,000 / 25 = 40. So 40 applications per acceptance, written 40 : 1.

Q 05 Selection Easy

Recruitment is to selection what:

ANegative is to positive — recruitment narrows, selection widens
BPositive is to negative — recruitment attracts, selection rejects unsuitable candidates
CIdentical processes
DUnrelated activities

View solution

Correct Option: B

Recruitment is positive (attracts a pool); selection is negative (eliminates the unsuitable).

Q 06 Reliability/Validity Medium

A selection test that gives consistent results when repeated under similar conditions is said to be:

AValid
BReliable
CPredictive
DConcurrent

View solution

Correct Option: B

Reliability = consistency. Validity = the test predicts the criterion (job performance). A test can be reliable without being valid; a valid test must be reliable.

Q 07 Training Methods Medium

Vestibule training is best classified as:

AOn-the-job training
BOff-the-job training
CCounselling
DCareer development

View solution

Correct Option: B

Vestibule training uses replicas of work equipment in a separate training area — off-the-job. OJT examples are job rotation, coaching, mentoring, apprenticeship.

Q 08 Kirkpatrick Easy

Match the Kirkpatrick level with the question it answers:

(i)	Reaction	(a)	Did the business benefit?
(ii)	Learning	(b)	Did they like it?
(iii)	Behaviour	(c)	Did they learn?
(iv)	Results	(d)	Are they applying it on the job?

A(i)-(b), (ii)-(c), (iii)-(d), (iv)-(a)
B(i)-(a), (ii)-(b), (iii)-(c), (iv)-(d)
C(i)-(c), (ii)-(d), (iii)-(a), (iv)-(b)
D(i)-(d), (ii)-(a), (iii)-(b), (iv)-(c)

View solution

Correct Option: A

Reaction → liking; Learning → knowledge; Behaviour → application; Results → business outcome. Phillips later added ROI as Level 5.

Quick recall

HRP = right number, right people, right skills, right time and place. Six-step process: objectives → demand → supply → gap → action plan → monitor.
Forecasting techniques: trend / ratio / regression (quantitative); managerial judgment, Delphi; Markov for internal supply.
Recruitment = positive (attract). Selection = negative (reject unsuitable).
Internal sources: promotion, transfer, IJP, referrals. External: ads, campus, exchanges, executive search, web portals.
Yield ratios track inputs vs outputs at each stage. Standard selection sequence: screening → application → tests → interview → references → medical → offer → induction.
Test quality: Reliability (consistency) + Validity (criterion-related, content, construct).
Training vs Development: skill+now vs whole-person+future. TNA at three levels (McGehee & Thayer): organisation, task, person.
Kirkpatrick’s four levels: Reaction → Learning → Behaviour → Results. Phillips’s Level 5 = ROI.