CONSEQUENCES OF POOR HUMAN RESOURCE PLANNING

Human Resources (HR) Planning is integral to the efficient running and continued success of businesses, enterprises, and even start-up companies. At times, many corporations and business owners due to circumstances, certain business factors, or extraneous issues have a badly mismanaged top management tier and inconsequential HR departments. The resultant poor human resource planning has an immediate and long-term impact on organizational functioning, employee recruitment, and management policies, and corporate profitability.

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RECRUITMENT AND SELECTION: HOW RECRUITMENT AND SELECTION AFFECT THE ORGANIZATION

Poor HR Planning and Management

An incompetent and poorly functioning human resources department reflects the overall state of affairs of an organization and its possible uncompetitive position in the marketplace. There is a disconnect between the HR department and the executive management leading to miscommunication, poor decision making on operational aspects, and critical mistakes. Employee training and development programs are not properly budgeted for and hiring practices are skewed.

Unmotivated Employees

The indifferent attitude of top management and HR quickly filter across organizational levels and employee hierarchies. Work ethics get affected, there are personality conflicts and teamwork becomes non-existent. There is a gross underutilization of the skills and capabilities of experienced employees. Other talented professionals are not groomed in a generally negative working environment. Poor motivation and lack of incentives and recognition lead to poor performance and even production of poor quality of goods and services.

Employee Demand-Supply Mismatch

Recruiting and selecting employees is a continuous cycle. Based on business growth, expansion plans, and requirements for specific projects and assignments, employees need to be hired. In a mismanaged organization, HR personnel with a lackadaisical attitude and lack of communication with departmental managers and supervisors are hard-pressed to address workforce requirements. Vacancies and job postings don’t get filled in time and key business functions and operations get affected–having a knock-on effect across the organization.

Higher Staff Turnover

Poor human resource planning begins to reflect on the corporate ethos of an organization. The working culture is affected and is generally negative. Performance reviews and performance appraisal systems are badly managed and employees uncertain about their immediate and future prospects. Employee safety practices and working conditions can be compromised at factories and manufacturing facilities. Poor working conditions force many workers to quit. Many other employees are also forced to leave the organization

Impact on Bottom Line

A dysfunctional HR roadmap or ineffective HR management strategy has long-term consequences for an organization. It affects the performance of a business and the productivity levels of employees. Customer service on all fronts gets affected. The loss of customers and medium-term revenues is quite immediate. Over a period of time, the freefall leads to an impact on the bottom line of an organization.

RECRUITMENT AND SELECTION: HOW RECRUITMENT AND SELECTION AFFECT THE ORGANIZATION

Organizational culture is often described as the glue that holds a company and its employees together. It is the magic that provides the motivation for employees to find ways to overcome challenges and get things done. How does organizational culture affect the process of hiring in a company? 

During the hiring process, resumes and cover letters may pile up and a company may effectively screen through many candidates using established selection criteria. However, in many cases, it may come down to a selection from a pool of several individuals, all of whom might be well qualified based on their accomplishments and experience. So, how does a company choose the best person to hire when open positions are limited?

What is the difference between Selection and Recruitment?

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Finding the right person for the job means finding the person who can work best in the company culture that has already been established.

1. WHAT IS ORGANIZATIONAL CULTURE?

Organizational culture is an established way that an organization or work environment functions. The way that employees interact with one another, habits, and norms of day to day activity all make up a company’s culture.

People who fit in with an organization’s existing culture are likely to feel comfortable in the workplace. As long as the existing culture is effective, fitting in leads to working well together. Those who work well together are more likely to offer and accept feedback and constructive criticism, even across managerial levels.

2. CORPORATE CULTURES COULD BE A WORLD APART

While technical, marketing, and business fundamentals may be transferable in some cases from one type of company to another, the cultural upbringing of a candidate in a certain corporate environment could sometimes become the single reason for a new employee to easily adopt the culture of a new company or not be able to fit in at all. Quite often, finding a candidate who has experience working in a similar culture may be more important than finding one with experience specifically in your industry. However, there are always exceptions to the rule.

3. FITTING IN CAN BE MORE BENEFICIAL THAN BACKGROUND

It is important to remember that a person’s background is not always the most important part of the hiring process. Selecting a candidate who gets along with the team may lead to a level of comfort that allows the new hire to introduce new ideas, even if they are different. Sometimes, hiring someone with a different background who fits in with your organizational culture is the best way to go. And this type of information is best noted and captured during the interview process. It helps to have the right recruitment system in place that allows you to easily capture such data in a structured and organized way.

4. CULTURAL MATCHES DECREASE TURNOVER

Another benefit of finding a candidate who fits in with your organizational culture is that if employees enjoy their co-workers and working environment, they are less likely to leave the company. Lower rates of turnover mean less time and money spent on recruiting, hiring, and training.

5. HIRING FOR COMPANY CULTURE VS HIRING FOR SKILL

Resumes, cover letters, and online profiles provide critical information covering background, education, and skills. However, most new candidates require some training on a new job, regardless of their background. Skills can be taught on the job, but fitting in with the existing organizational culture requires an employee mindset that is willing to learn, adjust, and figure out a way to work in the new environment. Getting to know a person during the hiring process can be invaluable, and capturing this information in the candidate management system can ensure that all information is readily available when your team makes a decision.

6. RECRUITING FOR ORGANIZATIONAL CULTURE MEANS MARKETING YOUR CULTURE

One of the best ways to find and recruit candidates who fit in with your existing workplace culture is to promote it. A website or job listing that effectively markets your employer brand can demonstrate the culture that exists within your company. As a result, it will attract candidates who can see themselves as part of your team.

7. IS ORGANIZATIONAL CULTURE PART OF YOUR HIRING PROCESS?

If your careers site and job postings promote your employer brand and organizational culture, you are more likely to attract candidates who believe they will be a good fit with your business.

When an organization is able to provide modern platforms to those involved in the hiring process, it makes sure that hiring managers, interviewers, and HR personnel are able to easily collaborate, share notes and make good decisions. when looking for people that would be a good fit for your organizational culture.

WHAT IS THE DIFFERENCE BETWEEN SELECTION AND RECRUITMENT?

Recruitment refers to the procedure of finding out about prospective candidates for any job opening and encouraging them to get in touch with the company along with applying for the vacancy. In human resource management, the term “recruitment” refers to the tasks involved in searching for and hiring the most eligible and qualified candidate for given job openings, in a cost-effective and timely manner.

Selection refers to a set of activities in which an organization chooses a fixed number of applicants from among the various applicants who may have applied for the job openings. The process of selection incorporates the final appointment of new employees to fill up the seats of the enterprise. 

  1. Recruitment defines the entire process of finding candidates who may be interested in specific job openings. It also involves the different acts of stimulating interested candidates for filing applications. The selection process encompasses the actions of picking up the most eligible candidates from all those who may have filed in their application for a given job opening. The objective of the selection process lies in offering the appointment letter to the most suitable candidates only.
  1. As it is a process that encourages more and more interested applicants to apply for a given job, recruitment is considered a positive process. On the other hand, selection serves to be a costly process in the sense that it leads to the filtering and rejection of all those candidates who are considered unfit for the job on offer.
  1. In terms of the number of applicants, the difference between selection and recruitment lies in more and more job applicants being invited to fill in applications for vacant jobs. Conversely, the number of applicants keeps reducing in the selection process, and only the most eligible candidates for a job opening remain in the end. The appointment letter is given to the candidate/candidates who is/are ready to accept the job on the terms and conditions as specified by the company.
  1. In comparison to the selection process, the activities related to recruitment are simple. This is because recruiters do not go through the processes connected with the scrutiny and assessment of the candidates in any way. Selection serves to be a complicated and well-designed activity comprising of different stages. This is because the companies making the selection have to assess and evaluate the details and skills of interested candidates at each stage. Thorough investigation and the various selection and interview modes have to be applied to freeze upon the most suitable candidates in the lot for filling up the job opening.
  1. The entire recruitment process: consumes less time because it merely involves the identification of the needs of specific job openings. Additionally, it stimulates more and more candidates to file their application for the same. On the other hand, selection incorporates a broader range of activities. The selection tasks begin with the shortlisting of the right candidates and culminate in appointing the most suitable of them all.
  1. In the case of recruitment, an organization notifies interested candidates about the vacancy via different sources like the internet, newspapers, periodicals, magazine, and so forth. The information about job openings is extended to all interested applicants so that they may easily apply. In contrast, the entire process of selection incorporates several steps undertaken by a firm to make sure that the most suitable candidates pass through different stages of selection. Generally, the various stages of selection include submission of forms, written examinations, interviews, medical assessments, etc.
  1. No contractual relationship is established between any parties in case of recruitment. However, in the selection process, both employee and employer sign a contract of employment and are bound by the same.

8. Overall, recruitment serves to be an economical process. On the other hand, the selection is comparatively more expensive.