The Procurement Process

a.
b.

c.

d.

e.

Job analysis defines the duties and human

requirements of the companys jobs. The next
step is to procure employees. We can foresee
the procurement process as a series of hurdles
as
decide what position to fill, through personnel planning and forecasting
build a pool of candidates for these jobs, by recruiting internal or
external candidates
have candidates complete application forms and go through initial
screening interviews
use selection tools like tests, background investigations, physical
exams to indentify viable candidates
decide who to make an offer to, by having the supervisor and perhaps
others interview the candidates.

Employment Planning
The procurement process starts with employment
planning. Employment planning is related with the
process of assessing human resource needs for a
particular org.
Employment planning is one of the most important
elements in a successful HRM program, because it
is a process by which an org ensures that it has the
right number and kinds of people, at the right place,
at the right time, capable of effectively and
efficiently competing those tasks that will help the
org achieve its overall strategic objectives.
Employment planning, then, ultimately translates the
orgs overall goals into the number and types of
workers needed to meet those goals.

Objectives of Employment
Planning

Five major objectives of HR planning are as

follows: Prevent overstaffing and understaffing
Ensure the organization has the right
employees with the right skills in the
right places at the right times
Ensure the organization is responsive
to changes in its environment
Provide direction and coherence to all
HR activities and systems
Unite the perspectives of line and staff
managers

Linking Employers Strategy to Plans

54

Figure 52

Methods of assessing
current HR

Managers can assess HR for the org easily by

maintaining Inventory of employees skill and
knowledge.
The inventory serves as a guide for
supporting new organizational pursuits or in
altering the orgs strategic direction.
This inventory also helps managers to
perform HRM activities, like training and
development,
promotion,
performance
evaluation, and transfers. HR mangers
perform inventory mgt in the following ways:

Forecasting Personnel
Needs

Trend analysis

The study of a firms 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

56

The Scatter Plot

Scatter plot

A graphical method used to help identify

the relationship between two variables.
Size of Hospital
(Number of Beds)

Number of
Registered Nurses

200

240

300

260

400

470

500

500

600

620

700

660

800

820

900

860
57

Determining the Relationship Between

Hospital Size and Number of Nurses

58

Figure 53

Forecasting the Supply of

Inside Candidates

Personnel replacement charts

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.
59

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
510

Procurement

Procurement is one of the most

important operative functions of HRM.
Through this function personnel are
recruited, selected and inducted into
different jobs of an org. Appropriate and
proper performance of the function of
procurement helps to execute other
operative functions smoothly. As for
example if properly qualified personnel
are recruited and selected, the task of
training and development becomes easy.

Steps of procurement
Procurement has got two steps:
The first one is recruitment and the
second one is selection. Through
recruitment potential candidates or
personnel are searched, identified and
encouraged to go for employment.
After recruitment, recruited candidates
are thoroughly screened to determine or
select the best proper personnel. Thus,
these two steps filter out most
appropriate personnel to be procured.

Factors of procurement

Sources of Recruitment

There are mainly two sources of

recruitment:

One is Internal sources, and

Another is external sources

Internal sources

When personnel are recruited from

within the existing personnel, it can be
termed as recruited from inside source.
In this case, preference is given to the
existing personnel. If suitable candidate
is not available, only then HRM takes
the help of outside sources.
Internal sources are ---

Job Posting
Rehiring
Succession Planning

Advantages of internal
sources

As HRM is aware of the abilities of its

present personnel, it can easily recruit
proper personnel
Cost of recruitment and training
becomes low
This type of policy increases the will of
personnel to work in a large extent. It
also highness the morale of the existing
personnel.

Disadvantages of internal
sources

Policy of recruitment from within the org

cannot avoid recruitment from outside.
Because at the end point of the ladder of
recruitment, HRM finds no other alternative
to go to take the help of outside sources.
Recruitment from inside sources creates
barrier for entering new ideas and thinking
into the org.
The practices of nepotism and favouritism
may happen at the time of recruitment
from inside source.

Outside sources of
recruitment

There are a no of outside sources of

recruitment. These are as follows:
Recruitment

through application
Recruiting via the Internet
Recruitment through present employees
Recruitment through employment agencies
Recruitment through labor union
Recruitment through educational institutions
Recruitment through advertisement
Employee referrals
Walk ins

Selection

The selection process is the second step of

procurement.
It is composed of a number of steps.
It is a process of collecting information which
an employee must require to be finally
selected.
Through this process decision makers can get
information about a candidate that will help
them to predict whether an applicant prove
to be a successful job performer or not.

Selection procedure

Preliminary interview
Filling up the application blank
Employment interview

Principle of preparation
Setting of interview
Principle of conduct
Principle of closing
Principle of evaluation

Psychological test
References and recommendations
Medical fitness test and final selection

Types of employment test

1.

2.

Work sampling: a selection device

requiring the job applicant to actually
perform a small segment of the job.
Management assessment test
1.
2.
3.
4.
5.
6.

The in basket
Leaderless group discussion
Management games
Individual presentations
Objective test
The interview

Types of employment test

(cont..)
4.

5.

Testing in a global arena: many of the

standard selection techniques described
in this text are not easily transferable to
international
situations.
So,
the
organization may take the test from the
context of international situation.
Comprehensive interviews: a selection
device in which in- depth information
about a candidate can be obtained.

Way to avoid hiring mistake

1.

2.

Prior to interviewing applicants. Update

and prepare an list of job requirements,
duties, and responsibilities so that you
and the applicant will understand the
expectations of the position.
Hire
a
temporary,
contract
or
subcontract out some of the work load,
or ask others to assist during the
transition rather that hiring the wrong
person.

Way to avoid (cont..)

3.

4.

Ask such questions as: what are your long

and short range goals?
Why are you
interested in this position? What do you
consider to be your greatest strengths and
weaknesses? Why should I hire you? And so
one.
Before offering the job, the manager should
check
references
including
several
supervisors or managers, even with an
exemplary interview and seemingly perfect
matched background.

Way to avoid (cont..)

Sample questions to ask those you wish to

check reference with include one or more of
the followings: why didnt you persuade him
or her to stay? How well did he or she take
criticism or suggestions given in his or her
last performance appraisal process?
6. Avoid questions that indirectly or directly
identify age, physical characteristics, such as
height, weight, hair or eye color, religions
affiliation marital and family status, medical
history, etc,