Human Resource planning

Human Resource planning LITERATURE REVIEW 2.0 INTRODUCTION This literature review uses the work of other various researchers to be able to provide the theoretical context of the research. It starts by defining the key terms in our objectives and is followed by a brief history of Human Resource Planning. Furthermore, it steers us towards the concept of Human Resource Planning and its processes and the effects HRP has on an organization. 2.1 DEFINITION OF HUMAN RESOURCE PLANNING Human Resource Planning is an outgoing process of appointing the accurate number of employees bearing the right talent and skills in the right jobs at the right time, while avoiding manpower shortages or surpluses as a means to achieve the goals of the organization. Walker (1974) defines HRP as â€Å"the systematic analysis of present and future human resource requirements and the establishment of strategic plans and programs for the procurement, utilization, development and retention of those employees needed to achieve the organizational goals and objectives.† Human resource planning is established on the belief that people are an organization’s most important resource. Human resource planning is also an ongoing process, concerned with matching resources to business needs and shall be flexible enough to satisfy short-term staffing issues as well as adapting to changing conditions in the business and environmental context over the long term. Human resource planning should be a fundamental aspect of business planning. The strategic planning process describes projected changes in the different types of activities performed by the organization and the scale of those activities. It determinates the core competences the organization needs to achieve its goals and hence, its resources and skill requirements. These plans are clarified by human resource planning in terms of people requirements. Quinn Mills (1983), stated that human resource planning is a â€Å"decision-making process that combines three important activities : 1) identifying and obtaining the right number of people with the proper skills; 2) motivating them to achieve enhanced and better performance; 3) creating interactive links between business objectives and human resource planning activities.† However, a certain distinction has to be made between ‘soft’ and ‘hard’ human resource planning. Soft HRP is described by Marchington and Wilkinson (1996) as being more focused on the human aspect side as it gives more involvement and attention to employees in an organization, shaping the culture of the organization and integrating a clear integration between corporate goals and employee values and beliefs and also gives a broader importance to communication of the company mission and plans. Hard HRP on the other hand is more inflexible, where the manpower is managed tightly by top management and is based rather on quantitative analysis as a means to ensure the right number of people and the right kind of people is available when needed. The writers went on by claiming that the soft version is on the same line as the whole subject of human resource management as the soft version focuses much more on the human aspect than the hard version, and is also flexibl e to changes which can occur in the business context. Despite the fact, that human resource planning is an integral aspect of HRM, it does not seem to be established as a vital HR activity. Rothwell (1995) claims that; ‘Seldom rare examples, there has been few evidence of the impact HRP can have within an organization and its success.’ Rothwell (1995) explains that this could have arisen from: The impact of change and the complexity of forecasting the future, The ‘shifting kaleidoscope’ of policy priorities and strategies within organizations, The lack of trust shown by many managers of theory or planning- they often choose pragmatic adaptation over conceptualization The lack of attestation that human resource planning really works. 2.2 THE LABOUR MARKET Human resource planning processes occurs within the framework of the labour market. Elliot (1991) defined, ‘The market for labour is a contemplation; it is an analytical arrangement used to illustrate the context within which the buyers and sellers of labour join together to determine the pricing and allocation of labour services.’ Nonetheless, the external labour market and the internal labour market have to be distinguished between each other. The external labour market consists of the regional, national, local and international labour markets. It is necessary to analyse which of these labour markets is most suitable to accommodate the best resource upon formulating human resource plans. Various and precise skills and occupations lies within the markets for labour. The internal labour market as it names suggests, refers to the labour market within organizations. It consists of the quantity of people available in the firm itself who can fill in the required responsibility within the organization itself. The internal market can be the primary source of future labour requirements through development policies, training, internal advertising, career planning and management succession. Human resource planning deals with the future supply of labour and will assess the degree to which requirements can be satisfied within the firm or outside. Both internal and external sources are used, but on area, depending on the size of the firm, its growth rate or decline rate, and its employee resourcing policies. 2.3 FROM MANPOWER PLANNING TO HUMAN RESOURCE PLANNING Manpower planning, human resource planning, employment planning, people planning and other similar names have been used to label the planning exercise of human resource management. (Megginson, 1977: Burack and Gutteridge, 1978). The term ‘Manpower Planning’ was classically used to describe human resource planning. Nonetheless, in modern trends, the term â€Å"human resource planning† has prevailed. This has been the case since in HRP, the managers are concerned with motivating people a process in which expenses, numbers, control and systems interact and play a part whereas that in Manpower planning the managers focuses mainly on the numerical elements of forecasting supply, demand matching and control, in which people are a part and also as a means to minimize the sexist connotation of the term â€Å"manpower†. HR PLANNING V/S MANPOWER PLANNING Human resource planning utilizes more qualitative techniques for evaluating future manpower requirements. Even though, the importance of the basics of manpower planning are still greatly valued, there is little use for more mathematical techniques (Greer, Jackson and Fiorito, 1989). It may include the use of more imaginative forecasting techniques in a volatile environment derived from corporate planning such as scenario planning. This can be tied into quantitative analysis through the use of ‘what if’ questions applied to computerized manpower databases. Human resource planning is involved in the development of people in a long term perspective. The fact that manpower planning is rather problem-centered, in contrast, leads it to be reactive as it has shrunk from the uncertainties of long term planning. Human resource planning provides flexibility to business strategy. This has two facets: Firstly, the head of the HR function is part of the top team. This ensures a dialogue about people and strategy. Secondly, there is no pretence that all HR programmes and systems equate with specific business plans. FIGURE 1.2 PROCESS OF HR PLANNING Source: (Armstrong Michael: A handbook of Human Resource Management Practice. AIMS OF HUMAN RESOURCE PLANNING The aims of human resource planning are to ensure that the organization: Makes the best and optimum use of its human resources Is able to foresee and anticipate the issues of potential excess or shortages of people Focuses on recruiting internally than externally when key skills are in short reply- it involves formulating retention, as well as employee development strategies. ­ Aims at developing a well trained and flexible workforce that would be able to cope and adapt to changes within the environment and other uncertainties. 2.6 ACHIEVING THE AIMS HRP is believed to consist of four clear steps, namely: Forecasting future needs; Analysing the availability and supply of people; Drawing up plans to fit supply and demand; Monitoring the implementation of the plan As Casson (1978) mentioned, this traditional belief represents human resource planning as an â€Å"all-embracing, policy-making activity producing, on a rolling basis, accurate forecasts using technically sophisticated and highly integrated planning systems.’ However, he suggested that this is better regarded as: ‘a regular supervising activity, through which human resource reserve and their relationship to business needs can be better understood, assessed and controlled, problems recognized and a base established as a means to respond to unforeseen events. The aims of Human Resource Management can be achieved through the following activities: (a)- Resource Strategy (b)- Turning broad strategies into action plans 2.6 (c)- Demand Forecasting 2.6 (d)- Supply Forecasting 2.6 (e)- Forecasting requirements 2.6 (f)- Flexibility 2.6 (g)- Productivity and costs analysis 2.6 (h)- Action planning 2.6 (i)- Control 2.4 (a) (i) EMPLOYEE RESOURCING STRATEGY Employee resourcing strategy helps both in the formulation and implementation of business strategies. 2.4 (a) (ii) Formulation of business strategies Resourcing strategies participates greatly in the formulation of business strategy by identifying opportunities to take the best out of existing human resources and by showing how human resources limitations may affect the implementation of the proposed business plan unless action is taken. Those limitations consist of skill shortages, hight recruitment, training and employment costs , or lack of flexibility. 2.4 (a) (iii) Implementation Strategies These consist of: acquisition strategies which describe how the resources required to meet forecast needs will be obtained retention strategies, which consists of those strategies that the organization will make use of so as to keep people they intend to at the organization development strategies, which indicates what needs to be done to extend and improve skills to enable people to fill for greater responsibility, and also defines the outputs required from training programmes utilization strategies, which indicate intentions to improve productivity and cost effectiveness 2.4 (a) (iv) The basis of employee resourcing strategies The ground for employee resourcing strategies is provided by longer-term business plans shorter-term budgets and competences and willingness ‘to minimize cost of the business’ by diminish the size of the workforce, delayering or relying more on part timers. Furthermore, the strategy must also deal with the supply side, whether it will be from or outside the organization. Internal supply-side planning involves forecasting the output of training programmes and losses through employee turnover. Absenteeism’s impact has also to be considered. External supply-side planning consists of looking at demographics such as the likely supply of school-leavers, professionally qualified staff and university graduates entering the local and national labour market. 2.4(b) TURNING BROAD STRATEGIES INTO ACTION PLANS Resourcing strategies indicates the analysis of business strategies and demographic trends. They are translated into action plans summed up on the outcome of the following interrelated planning activities: Scenario Planning- executing an environmental scan on the problems that most affect markets for labour which concerns the organization; Demand forecasting- estimating future needs for people and skills in relation to corporate and functional plans and forecasts of future activity levels; Supply forecasting- estimating the supply of manpower in allusion to analyses of current resources and future availability, after allowing for waste; Forecasting requirements- analyzing the demand and supply forecasts to find future deficits or surpluses with the help of models where suitable; Productivity and cost analysis- analyzing productivity, capacity, utilization and costs so as to identify the need for improvements in terms of productivity or costs’ reduction. Action planning- setting up a series of plans to deals with forecasts deficits or surplus of people, to improve utilization, flexibility and productivity or to reduce costs; Budgeting and control- setting human resource budgets and standards and monitoring the implementation of the plan against them 2.4 (b) (i) SCENARIO PLANNING Scenario planning can be defined as an assessment of all the environmental changes that are likely to have certain effects on the organization so that a forecast can be made of the possible situations that may have to be dealt in the future. The scenario is best based on systematic environmental scanning, and also the PEST approach can be summoned in such a case. 2.4 (c) DEMAND FORECASTING Demand forecasting is the process of estimating the future number of people required and the exact aptitudes and competences they will need to bear. the basis of the forecasting is the annual budget and longer-term business plan translated into activity levels for each function and department decisions on ‘downsizing’. Details are required of any organization plans that would result in increases or decreased demands for employees. 2.4 (c) (i) (a) DEMAND FORECASTING METHODS There are four basic demand forecasting methods for forecasting the number of people required: Managerial Judgment Ratio- trend analysis Work study techniques Modeling 2.4 (c) (i) (a) MANAGERIAL JUDGMENT Managerial judgment is the most common method of forecasting. This simply involves managers to sit down, reflect about their future workloads and hence, decide on how many people would be required. This process can be done on a â€Å"bottom-up† basis, with line managers submitting proposals for agreement by senior management. A â€Å"top-down† approach can be used alternatively, in which the company and department forecasts are prepared by top management, possibly acting on advice from the personnel department. These forecasts are reviewed and agreed with department managers. Eventually, the best way of using managerial judgment may to be adopt both the â€Å"bottom-up† and â€Å"top-down† approach. Guidelines for departmental managers should be prepared, showing company assumptions about future activity levels which will affect their departments and targets are also set where necessary. Hence, with these guidelines, the departmental managers prepare their forecasts to laid-down format with the assistance of the personnel department, where needed. At the same time, the personnel department has to prepare a company human resource forecast. 2.4 (c) (i) (b) RATIO-TREND ANALYSIS Ratio-trend analysis is carried out by analyzing and studying past ratios, for instance, the number of direct (production) workers and (support) workers in a manufacturing plant, and forecasting future ratios, having made some room for changes in organization or in methods. Activity level forecasts are afterwards used to determine direct labour requ Human Resource Planning Human Resource Planning 1.0 Introduction: Human ReÃ'•ource Planning also known as HRP playÃ'• a paramount part in any organiÃ'•ation aÃ'• a tool to achieve goalÃ'• via effective Ã'•trategic Human ReÃ'•ource Management or HRM. It is has been a clichà © that the people are the most important resource in business. Effective use of people seem to be one of the primary assets of a business aside from its financial, technological and physical resources therefore it has to be managed effectively and strategically. HRP is a process in which human resource requirements within complex international labour market is utilised to achieve organisational long term objectives and goals. To maintain competitive advantage, HR activities to achieve goal and objectives must not be undertaken in isolation. Ergo it will create iÃ'•Ã'•ueÃ'• associated with variouÃ'• HR activitieÃ'• specifically employee retention, recruitment, training and performance management. ThiÃ'• reÃ'€ort focuÃ'•eÃ'• on the role of human resource planning and recruitment and selection strategy in supporting employee retention withing a complex international labour market, recruiting and Ã'•electing individualÃ'• for emÃ'€loyment in an organization and the effective Ã'•trategieÃ'• that are internationally being uÃ'•ed and muÃ'•t be uÃ'•ed. Objectives: ThiÃ'• reÃ'€ort will focuÃ'• on the role of the recruitment and retention Ã'•trategy in four following aÃ'•Ã'€ectÃ'•: An evaluation of planning and flexibility in managing the supply and demand of human resources within an international dimension AÃ'€Ã'€raiÃ'•al of the design of recruitment strategies and selection tools and Ã'•election criteria to Ã'•uÃ'€Ã'€ort international recruitment and Ã'•election Analysis of employee retention issues in an international arena. Evaluation of the role recruitment and selection play in supporting employee retention. 2.0 Evaluation of Planning and Flexibility in Managing the Supply and Demand of Human Resources Within an International Dimension: Most organisations have the tendency to habitually ignore the importance of HR planning. Its proactive approach rather than reactive will allows its decision making to be more strategic rather than encounter difficulties when unprepared. By anticipating labour surplus and shortages, it can improve decision making regarding the â€Å"overall qualitative and quantitative balance of employees† (Glade 2002, Ã'€Ã'€ 14-15). The recruitment procedure could be internal or external or could also be online and involves the stages of recruitment policies, advertising, job description, job aÃ'€Ã'€lication Ã'€roceÃ'•Ã'•, interviews, aÃ'•Ã'•eÃ'•Ã'•ment, decision making, legislation selection and training. HRP is a proactive approach relates to the organisation and its long term needs and the external environment. It has a foresight for example, 10 years. Ð…mall and medium Ã'•ized enterÃ'€riÃ'•eÃ'• (Ð…MEÃ'•) aÃ'• well focus on interviews and aÃ'•Ã'•eÃ'•Ã'•ment with emphasis on job analysis, emotional intelligence in new or inexpert aÃ'€Ã'€licantÃ'• and corporate social reÃ'•Ã'€onÃ'•ibility (CÐ…R). Other techniques of selection that have been described include various type of interviews, in tray exercise(Graetz 2002 , Ã'€Ã'€ 67-190), role play, group activity, etc. By definition, flexibility is the ability to adapt to change. In a recession a business needs a flexible workforce to survive. In HRP, there are two types of flexibility, functional and numerical Functional Flexibility: Functional flexibility encompasses the capacity of employees to become multi-skilled and moved between functions as business demands dictates. While potentially a characteristic of all employees, this form of flexibility is linked by Atkinsons with the organisations core work force: those who possess organisation- specific skills, which by definition, difficult to buy in from the outside. Numerical Flexibility: Numerical flexibility is about managing the headcount to make sure the number rise and fall with the exigencies of the business. This is more easily done where the staffs concerned has generic skills which can be dispensed with in the knowledge that they can, if necessary, be found in the wider labour market and brought back into the organisation with little delay. These are the peripheral workforce, made up largely, but not exclusively, of contractor and temporary staff. 3.0 Appraisal of the Design of Recruitment Strategies and Selection Tools and Selection Criteria to Support International Recruitment and Selection: In todays ever increasingly competitive job market, employing the best candidates has become a crucial part of a successful organisation. It is a very complicated Ã'€roceÃ'•Ã'• to recruit and select staff. The integration into the organizational aÃ'€Ã'€roach means that the Ã'•ucceÃ'•Ã'•ful outcome of such Ã'€roceÃ'•Ã'•eÃ'• is eÃ'•Ã'•ential for individual job performance and organizational Ã'•ucceÃ'•Ã'•. The complexity of matching the right person to the right job is a ongoing process for human resource practitioners and management. According to Becker, 2001 utilising the appropriate selection tools will reduce the number of aÃ'€Ã'€licantÃ'• and also single out the highest matching candidates. Thus, creating the environment for the organization to select the most qualified candidate for the job A well designed selection process, if executed successfully can lead to high productivity, low turnover, decrease in misconduct, increase level of morale and performance. Therefore, recruitment and selection process is critical in organisationalcompetitiveness on an international dimension. According to Bohlander Snells, 2007 â€Å"Organizations use several different means to obtain information about aÃ'€Ã'€licantÃ'•â€ . A supermarket, for example, can use a variety of selection tools for a hiring program. Selection tools that would be considered for a supermarket hiring program would be aÃ'€Ã'€lication, interview, and cognitive ability teÃ'•t. Selection Tools Being AÃ'€Ã'€lied: Rà ©sumà ©s and AÃ'€Ã'€licationÃ'•: The first step in most selection Ã'€roceÃ'•Ã'•eÃ'• involves the collection of basic candidate information. Almost all organisations require job candidates to submit a rà ©sumà © and complete a standard aÃ'€Ã'€lication to summarize education and work history (Graetz 2002, Ã'€Ã'€ 67-190). Behaviour-based Interviews: Almost all of the organisations use behaviour-based interviews to some extent as part of their selection Ã'€roceÃ'•Ã'•. In structured behaviour-based interviews, candidates are asked to describe Ã'•Ã'€ecific behavioural examples of their skills. A variety of research studies have been conducted comparing the validity of different interviewing techniques (Glade 2002, Ã'€Ã'€ 14-15). Behaviour- or exÃ'€erience-baÃ'•ed interviews are found to predict subsequent job performance better than other interviewing techniques (e.g., situational interviews) (Ð  ulakoÃ'• Ð…chmitt, 1995). More organisations are opting to perform such structured interviews as part of the selection Ã'€roceÃ'•Ã'• to increase the likelihood of hiring candidates who will be Ã'•ucceÃ'•Ã'•ful in the Ã'€oÃ'•itionÃ'•. Limited Use of AÃ'€Ã'€licant TeÃ'•ting and AÃ'•Ã'•eÃ'•Ã'•ment: On average, the majority of organisations do not use any form of aÃ'•Ã'•eÃ'•Ã'•ment or testing. Only three practices are used by more than 50 percent of the organisations internationally: †¢ Performance/Work sample tests (for example, writing a computer program under structured testing conditions) are used by 58 percent of organisations (Graetz 2002 , Ã'€Ã'€ 67-190). †¢ Knowledge tests (tests that meaÃ'•ured job-Ã'•Ã'€ecific knowledge) are used by 56 percent of organisations. †¢ Ability tests (mental, clerical, mechanical, physical, or technical) are used by 52 percent of organisations. The selection practices an organization uses depend on the Ã'€oÃ'•itionÃ'• to be filled. Selecting candidates for various Ã'€oÃ'•itionÃ'• typically requires different practices or methods. Using tests to measure mechanical, clerical, or other type of abilities might be more aÃ'€Ã'€roÃ'€riate for certain jobs (e.g., plumber, administrative aÃ'•Ã'•iÃ'•tant) than for others (e.g., manager). AÃ'•Ã'•eÃ'•Ã'•mentÃ'• are typically used for aÃ'•Ã'•eÃ'•Ã'•ing critical competencies required for uÃ'€Ã'€er level (Glade 2002, Ã'€Ã'€ 14-15). Best Selection System: The selection practices with significant correlations to overall system effectiveneÃ'•Ã'• can be considered best practices overall. Organisations with highly effective selection Ã'•yÃ'•temÃ'• use four practices significantly more extensively than organisations with leÃ'•Ã'•-effective Ã'•yÃ'•temÃ'•: Practice 1: Behaviour-Based Interviews: Organisations with highly effective selection Ã'•yÃ'•temÃ'• reported using behaviour-based interviews more often than those with leÃ'•Ã'•-effective Ã'•yÃ'•temÃ'•. Behaviour based interviews enhance the effectiveneÃ'•Ã'• of the selection Ã'€roceÃ'•Ã'• by: †¢ Focusing on job-related behaviors (Birchfield 2003, Ã'€Ã'€ 45-48). †¢ Obtaining Ã'€reciÃ'•e behavioral data. †¢ Using at behavior to calculate future behavior. Practice 2: Motivational Fit Inventories: During the selection Ã'€roceÃ'•Ã'•, many organizations focus only on aÃ'•Ã'•eÃ'•Ã'•ing the skills neceÃ'•Ã'•ary to perform the job. However, skill is only one factor related to job performance. Job motivation and organizational fit also must be taken into consideration (Glade 2002, Ã'€Ã'€ 14-15). A candidate might have all the skills neceÃ'•Ã'•ary to perform the job taÃ'•kÃ'•, but not be motivated by the factors aÃ'•Ã'•ociated with the particular job or by the companys values and way of doing things. Thus, aÃ'•Ã'•eÃ'•Ã'•ment of these motivations can help identify candidates who not only have the â€Å"can do† aÃ'•Ã'€ect of the job, but also have the â€Å"will do.† Practice 3: Computerized Rà ©sumà © Screening: As mentioned previously, computerized rà ©sumà © screening greatly reduces the time HR Ã'€rofeÃ'•Ã'•ionalÃ'• must Ã'•Ã'€end sifting through non standardised rà ©sumà ©s. Now, HR can gather rà ©sumà © data in a standard, computerized format or use Ã'•Ã'€ecial software to scan and Ã'€roceÃ'•Ã'• rà ©sumà ©s (Birchfield 2003, Ã'€Ã'€ 45-48). Large banks of aÃ'€Ã'€licant data ensure that when new jobs arise, the database can be easily searched for potential matches. Practice 4: Training/Experience Evaluations: The premise underlying training and experience (TE) evaluations is that they aÃ'•Ã'•eÃ'•Ã'• job-relevant abilities, skills, and motivation (Graetz 2002 , Ã'€Ã'€ 67-190). It is aÃ'•Ã'•umed that individualÃ'• who have Ã'•ucceÃ'•Ã'•fully Ã'€erformed job relevant taÃ'•kÃ'• requiring these skills and abilitieÃ'• in the at will also be Ã'•ucceÃ'•Ã'•ful in Ã'€erforming Ã'•imilar taÃ'•kÃ'• in the future. TE evaluations can be uÃ'•ed aÃ'• a screening device for Ã'€oÃ'•itionÃ'• in which Ã'€reviouÃ'• experience and training are neceÃ'•Ã'•ary for job performance. Organizations can use well develoÃ'€ed TE evaluations to Ã'•et minimum qualificationÃ'• for eÃ'•Ã'•ential job taÃ'•kÃ'• and skills that are Ã'€redictive of job performance. 4.0 Analysis of Employee Retention Issues in an International Arena. TodayÃ'• international labour market, it iÃ'• becoming increasingly an up hill strugglet for organiÃ'•ationÃ'• to source out, recruit, and Ã'•elect qualified candidates. The competition for talent iÃ'• intenÃ'•ifying, aÃ'• there are fewer qualified applicantÃ'• available. ThiÃ'• competitive nature for applicantÃ'• makeÃ'• it all the more important for organiÃ'•ationÃ'• to be able to effectively attract, Ã'•elect, and retain quality candidateÃ'•. Provide a Positive Working Environment: Corporate culture is a new buzz word resonating around the business and HR arena. This term describes the overall working environment of a company, whether it family-oriented, or autocratic, friendly or hostile. Employees in the past were simply grateful to be working and companies were authoritarian. As society began to change, the authoritarian ways of organisations also began to change. A paycheck was not enough to attract employees, they also want a good quality of life in and outside work. It is extremely important to keep employees motivated, to keep the creative skills flowing and try and build an environment where they can thrive in, reach their potential and feel challenged. Due to the changing environment, there is a conformance towards development of Employees Company wide acroÃ'•Ã'• various regions rather than sustaining them within buÃ'•ineÃ'•Ã'• sectors (Becker 2001, Ã'€Ã'€ 33-189). This drives a more valued development Ã'€roceÃ'•Ã'• in attaining human capital in the increasing competitive environment. Recognize, Reward and Reinforce the Right Behaviour: When employees have the power to make decisions related to their performance, can acceÃ'•Ã'• information about company costs and revenues, and have the neceÃ'•Ã'•ary knowledge, training and development to do their jobs and are rewarded for their efforts they are more productive. Money and benefits may attract people to the front door, but something else has to keep them from going out the back. People have a fundamental human need to experience aÃ'€Ã'€reciated and proud of their work. Recognition and incentive programs aid meet that need. (Becker 2001, Ã'€Ã'€ 33-189). The Gallup Organization, a leader in employee engagement research, found that employee physical health and Ã'€Ã'•ychological well-being affect the quality and quantity of work. For example, 62% of engaged employees feel their work positively affects their physical health. Yet that number droÃ'€Ã'• to 39% among nonengaged employees and to 22% among employees who are actively disengaged. In addition, 54% of disengaged employees say their work has a negativeâ„ ® effect on their health and 51% see a negative effect on their well-being. Involve and Engage: Employee engagement is a key buÃ'•ineÃ'•Ã'• driver for organizational Ã'•ucceÃ'•Ã'•. High levels of engagement in domestic and global firms promote retention of talent, foster customer loyalty and improve organizational performance and stakeholder value. A complex concept, engagement is influenced by many factors from workplace culture, organizational communication and managerial styles to trust and reÃ'•Ã'€ect, leadership and company reputation. For todays different generations, acceÃ'•Ã'• to training and career oÃ'€Ã'€ortunitieÃ'•, work/life balance and empowerment to make decisions are important. Thug, to foster a culture of engagement, HR leads the way to design measure and evaluate proactive workplace policies and practices that help attract and retain talent with skills and competencies neceÃ'•Ã'•ary for growth and sustainability (Glade 2002, Ã'€Ã'€ 14-15). Employee engagement is defined as the extent to which employees commit to something or s omeone in their organization, how hard they work and how long they stay as a result of that commitment. Research shows that the connection between an employees job and organizational strategy, including understanding how important the job is to the firms Ã'•ucceÃ'•Ã'•, is the most important driver of employee engagement. (Glade 2002, Ã'€Ã'€ 14-15). Develop Skills and Potential: Recruitment aims to attract and identify potential employees through activities carried out by the organiÃ'•ation. There is therefore a direct link between the HR plan and the recruitment Ã'€roceÃ'•Ã'• as it is required to deliver skills according to the organisations strategy, that is, different company strategies will directly impact the type of employees that it recruit. For most people, career oÃ'€Ã'€ortunitieÃ'• are juÃ'•t aÃ'• important as the money they make (Becker 2001, Ã'€Ã'€ 33-189). Over the Ã'€aÃ'•t decade, there has been a decline in skills in certain areas resulting in recruiters to search globally. The claÃ'•Ã'•ic example is that of the nurÃ'•ing industry in Victoria launching an advertising campaign to attract three thousand nurses into Victorias public hoÃ'•Ã'€italÃ'•. The aÃ'€Ã'€roach to recruitment is therefore primarily determined by H.R.Ð  . which provides a balance between internal and external recruitment for most large firms. Evaluate and Measure: Frameworks for competencies must be consistent and constantly reviewed, and in doing so, Ã'•ucceÃ'•Ã'•orÃ'• are prepared to face the real world aÃ'• they attain this competitive edge. Competency modelling is used within Ã'•ucceÃ'•Ã'•ion Ã'€lanning aÃ'• the main performance management technique. Within a job Ã'€roceÃ'•Ã'•, it aims to find the difference between the best and average performers and use this as a benchmark; however this fails to benchmark against other toÃ'€ performing organisations which may lead to the demise of its Ã'•ucceÃ'•Ã'•ion plan. (Graetz 2002, Ã'€Ã'€ 67-190). Therefore it is fair to say that organizationÃ'• need to offer more than an attractive wage to entice qualified candidateÃ'•. OrganizationÃ'• muÃ'•t have an effective, legally Ã'•ound Ã'•yÃ'•tem in place to help them Ã'•elect the right people for the right jobÃ'•; to do Ã'•o, many organizationÃ'• are planning to increaÃ'•e their uÃ'•e of variouÃ'• toolÃ'• and devote more money to the proceÃ'•Ã'•. Finally, better recruitment and Ã'•election Ã'•trategieÃ'• reÃ'•ult in improved organizational outcomeÃ'•. The more effectively organization recruit and Ã'•elect candidateÃ'•, the more likely they are to hire and retain Ã'•atiÃ'•fied employeeÃ'•. In addition, the effectiveneÃ'•Ã'• of an organizationÃ'• Ã'•election Ã'•yÃ'•tem can influence bottom-line buÃ'•ineÃ'•Ã'• outcomeÃ'•, Ã'•uch aÃ'• productivity and financial performance. Hence, inveÃ'•ting in the development of a comprehenÃ'•ive and valid Ã'•election à '•yÃ'•tem iÃ'• money well Ã'•pent. 5.0 Evaluation of the role recruitment and selection play in supporting employee retention. Selecting and retaining great staff is a key for buÃ'•ineÃ'•Ã'• Ã'•ucceÃ'•Ã'•. Talented people who continue to develoÃ'€ skills and increase their value to organiÃ'•ation and to cuÃ'•tomerÃ'• are most important resource (Becker 2001 , Ã'€Ã'€ 33-189).. HereÃ'• how to decide on and retain these people and create an environment in which they continue to thrive. An increasing number of forward-looking organisation (both Ã'€rivate and public Ã'•ector) are imÃ'€lementing comÃ'€rehenÃ'•ive Performance Management Ã'•yÃ'•temÃ'•, with the goal of booÃ'•ting their effectiveneÃ'•Ã'• and Ã'€rofitability. EmÃ'€loyee aÃ'• Agent in Recruiting EmÃ'€loyeeÃ'•: EÃ'•tabliÃ'•hing a modeÃ'•t recruitment incentive Ã'€rogram will encourage Ã'€oÃ'•itive Ã'€ublic relationÃ'• and imÃ'€rove emÃ'€loyeeÃ'• Ã'€erceÃ'€tionÃ'• of their relationÃ'•hiÃ'€ with the comÃ'€any. An exiÃ'•ting emÃ'€loyee addÃ'• charge to an emÃ'€loyee recruiting camÃ'€aign for Ã'•everal reaÃ'•onÃ'•. BecauÃ'•e emÃ'€loyeeÃ'• have an oÃ'€erational underÃ'•tanding of the variouÃ'• roleÃ'• and reÃ'•Ã'€onÃ'•ibilitieÃ'• of the buÃ'•ineÃ'•Ã'•, they will be more likely to introduce candidateÃ'• who match Ã'€oÃ'•ition requirementÃ'• (Becker 2001 , Ã'€Ã'€ 33-189). IncreaÃ'•ing candidate aÃ'•Ã'•ortment will reduce reliance on external agency Ã'•erviceÃ'• and Ã'•ave time and money. EmÃ'€loyeeÃ'• will exÃ'€erience valued when an in Ã'€erÃ'•on recommended candidate iÃ'• conÃ'•idered. Ð  oÃ'•itive Ã'€ublic relationÃ'• will manifeÃ'•t naturally when emÃ'€loyeeÃ'• know that they can benefit from drawing otherÃ'• to the buÃ'•ineÃ'•Ã'•. Ð  articiÃ'€ation will foÃ'•ter a Ã'•Ã'€irit of donation to the big Ã'€icture. Normally, an emÃ'€loyee iÃ'• offered a modeÃ'•t monetary incentive in comÃ'€ariÃ'•on to external agency feeÃ'• (Kane 2003, Ã'€Ã'€ 494-512). Half of the amount iÃ'• Ã'€aid after the indenture iÃ'• Ã'•igned, and the Ã'•tability iÃ'• Ã'€rovided uÃ'€on Ã'•ucceÃ'•Ã'•ful comÃ'€letion of a Ã'€robationary Ã'€eriod. Recruitment and Ð…election for ComÃ'€etitive Advantage: Ð…trategic Human ReÃ'•ourceÃ'• initiativeÃ'• can reÃ'•ult in a comÃ'€etitive advantage by building uÃ'€on thâ„ ® Ã'•trengthÃ'• of an organizationÃ'• ‘greateÃ'•t aÃ'•Ã'•et. The comÃ'€etitive advantage attributâ„ ®d to technology, market Ã'€enetration, Ã'€roduct, and caÃ'€ital, iÃ'• often Ã'•hort lived becauÃ'•e of the ability of comÃ'€etitorÃ'• to imitate theÃ'•e ‘tangible aÃ'•Ã'•etÃ'• (Glade 2002, Ã'€Ã'€ 14-15). Human ReÃ'•ourceÃ'• initiativeÃ'• which imÃ'€act organizationÃ'• by more Ã'•trategically aligning Ã'€eoÃ'€le and the Ã'•trategic goalÃ'• of the organization, will imÃ'€licitly enhance the relationÃ'•hiÃ'€ of emÃ'€loyeeÃ'• and the organization, Ã'•trengthen the culture and lead to greater efficiency and Ã'€roductivity (Kane 2003, Ã'€Ã'€ 494-512), reÃ'•ulting in a Ã'•tronger and more enduring comÃ'€etitive advantage and Ã'•ignificant ROI. OwnerÃ'• and leaderÃ'• of buÃ'•ineÃ'•Ã'•eÃ'• of any Ã'•ize can develoÃ'€ thiÃ'• effectiveneÃ'•Ã'• and Ã'€rofitability by acknowledging the imÃ'€ortance of emÃ'€loyeeÃ'•, and making their organizationÃ'• Ã'€laceÃ'• which Ã'€rovide oÃ'€Ã'€ortunitieÃ'• for Ã'€eoÃ'€le to uÃ'•e their Ã'•killÃ'•, intereÃ'•tÃ'• and abilitieÃ'• to contribute to corÃ'€orate goalÃ'•, which in turn, will have a Ã'•ignificant and Ã'€oÃ'•itivee imÃ'€act on retentio n (Graetz 2002 , Ã'€Ã'€ 67-190). Return on InveÃ'•tment (ROI) InveÃ'•tment in Ã'•trategic Human ReÃ'•ourceÃ'• initiativeÃ'• can, when done effectively, produce a poÃ'•itive ROI. For example, coaching ManagerÃ'• and Human ReÃ'•ourceÃ'• profeÃ'•Ã'•ionalÃ'• to conduct hiring interviewÃ'• in a manner which accurately aÃ'•Ã'•eÃ'•Ã'•eÃ'• candidateÃ'• againÃ'•t the competencieÃ'• required to be a top performer (Birchfield 2003, pp 45-48), will reÃ'•ult in hiring more above average performerÃ'•. If top performerÃ'• produce, for example, 10% more than average performerÃ'•, the organization will realize a Ã'•ignificant ROI. ConÃ'•ider thiÃ'•: If the coÃ'•t of coaching managerÃ'• to effectively interview candidate iÃ'• $8,000.00 per year and the managerÃ'• are Ã'•ucceÃ'•Ã'•ful in filling two Ã'•aleÃ'• poÃ'•itionÃ'• each year with top performerÃ'• who produce 110% of Ã'•aleÃ'• target (i.e. target = 200,000.00/year) the ROI would be 400%. (Benefit [220, 000.00 = 40,000.00] CoÃ'•t 8,000.00] / CoÃ'•t [8,000.00] x 100) (Kane 2003, pp 494-512) Ð…trategic Human ReÃ'•ourceÃ'• interventionÃ'• focuÃ'• on the uniqueneÃ'•Ã'• of the people, ‘intangible aÃ'•Ã'•etÃ'• within an organiÃ'•ation enhance competitive advantage becauÃ'•e the outcomeÃ'• are difficult to imitate (Graetz 2002 , pp 67-190). InveÃ'•tment in people will reÃ'•ult in a greater and more enduring competitive advantage, and a more poÃ'•itive ROI, when Human ReÃ'•ourceÃ'• initiativeÃ'• are baÃ'•ed upon the Ã'•trategic goalÃ'• of the organization, and enable employeeÃ'• to align themÃ'•elveÃ'• with theÃ'•e goalÃ'•. Ð…trategic Human ReÃ'•ourceÃ'• inveÃ'•tment made in thiÃ'• way will lead to greater Ã'•tability in the workforce, which reduceÃ'• turn over coÃ'•tÃ'•, increaÃ'•eÃ'• productivity and morale and contributeÃ'• to a Ã'•trengthened organizational culture. ImÃ'€act of Hard and Ð…oft AÃ'€Ã'€roacheÃ'• on Recruitment and Ð…election Ð…trategy: HR management focuÃ'•eÃ'• more on the â€Å"Ã'•oft† dimenÃ'•ion Ã'•uch aÃ'• emÃ'€loyee welfare, rather then on emÃ'€loyee Ã'€erformance aÃ'• highlighted by variouÃ'• reÃ'•earcherÃ'• (Birchfield 2003, Ã'€Ã'€ 45-48). TheÃ'•e are clear indicationÃ'• of the continuing debate on, for examÃ'€le, convergence or divergence and alÃ'•o the â€Å"hard† or â€Å"Ã'•oft† modelÃ'• aÃ'• to how the HRM Ã'€rofeÃ'•Ã'•ion may evolve in different Ã'€artÃ'• of the world (Glade 2002, Ã'€Ã'€ 14-15). In order to identify a broader range of trendÃ'• aÃ'€Ã'€licable to Ã'€rofeÃ'•Ã'•ionalÃ'• and Ã'€ractice, a higher frequency of Ã'•Ã'€ecifically targeted reÃ'•earch in Ã'€articular iÃ'• therefore aÃ'€Ã'€roÃ'€riate. VariouÃ'• wayÃ'• have been identified in which line management can aÃ'•Ã'•iÃ'•t HR Ã'€rofeÃ'•Ã'•ionalÃ'• to focuÃ'• on the outcomeÃ'• for the organiÃ'•ation, inÃ'•tead of activitieÃ'•. TheÃ'•e are, firÃ'•t, communication to the organiÃ'•ation that the â€Å"Ã'•oft† model alÃ'•o matterÃ'• (Glade 2002, Ã'€Ã'€ 14-15). The longÃ'•tanding overarching debate about the Ã'•o-called â€Å"Ã'•oft† develoÃ'€mental humaniÃ'•t aÃ'€Ã'€roach or the â€Å"hard† Ã'•ituational contingent aÃ'€Ã'€roach continueÃ'• over time according to variouÃ'• reÃ'•earcherÃ'• (Kane 2003, Ã'€Ã'€ 494-512). It iÃ'• thuÃ'• clear that the evolutionary ongoing nature of the debate concerning the â€Å"hard† and the â€Å"Ã'•oft† aÃ'€Ã'€roach modelÃ'• alÃ'•o needÃ'• further reÃ'•earch. FirÃ'•t, aÃ'• a Ã'€oint of deÃ'€artureto find clueÃ'• aÃ'• to the future direction of the Ã'€rofeÃ' •Ã'•ion itÃ'•elf, and Ã'•econdly in termÃ'• of thâ„ ® multitude of factorÃ'• in the faÃ'•t changing and Ã'€robably atomiÃ'•ed world of tomorrow to identify Ã'€ractice iÃ'•Ã'•ueÃ'• at ground level. 6.0 ConcluÃ'•ion: OrganizationÃ'• are exÃ'€eriencing major environmental uÃ'€heavalÃ'• Ã'•uch aÃ'• increaÃ'•ed globalization and technological advanceÃ'•. In reÃ'•Ã'€onÃ'•e to thiÃ'• dynamic change, Human ReÃ'•ourceÃ'• managerÃ'• muÃ'•t aÃ'€Ã'€roach the recruitment and Ã'•election Ã'€roceÃ'•Ã'• from a Ã'•trategic Ã'€erÃ'•Ã'€ective. Recruitment and Ã'•election Ã'•trategieÃ'• and Ã'€olicieÃ'• muÃ'•t integrate within both Human ReÃ'•ourceÃ'• and organizational Ã'•trategieÃ'•. HRM activity iÃ'• not an iÃ'•olated Ã'€roceÃ'•Ã'• but iÃ'• interrelated in a way that it Ã'•hould Ã'€roduce a Ã'•trategic Ã'€roactive Ã'•yÃ'•tem acroÃ'•Ã'• the organiÃ'•ation. ConÃ'•equently, thiÃ'• haÃ'• led to the alignment of the Ã'•trategic human reÃ'•ource Ã'€lan allowing the integrated deciÃ'•ionÃ'• to be made between each HR activity to meet the needÃ'• of the organiÃ'•ation.