recruiting and selecting the employees
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RECRUITINGRECRUITING AND AND SELECTING SELECTING THE EMPLOYEESTHE EMPLOYEES
Prepared by:Prepared by:Eva Marrine SaguneEva Marrine SaguneImam HaryantoImam HaryantoRusdiRusdi
Human Resource Supply and DemandHuman Resource Supply and Demand
A simplified explanation of forecasting labor demand and A simplified explanation of forecasting labor demand and supplysupply
Labor SupplyLabor Supply – – The availability of workers with the The availability of workers with the required skills to meet the firm’s labor demand.required skills to meet the firm’s labor demand.
Labor DemandLabor Demand – How many workers the organization will – How many workers the organization will need in the future.need in the future.
Human resource planningHuman resource planning – The process an organization – The process an organization uses to uses to ensure that it has the right amount and the right ensure that it has the right amount and the right kind of people to deliver a particular level of output or kind of people to deliver a particular level of output or services in the future.services in the future.
HUMAN RESOURCE PLANNINGHUMAN RESOURCE PLANNING
The Hiring ProcessThe Hiring Process
RecruitmentRecruitment
SelectionSelection
SocializationSocialization
Challenges in the Hiring ProcessChallenges in the Hiring Process
Determining the characteristics most important to Determining the characteristics most important to performanceperformance
Measuring the characteristics that determine performanceMeasuring the characteristics that determine performance Evaluating applicants motivation levelsEvaluating applicants motivation levels
The motivation factor --- performance = ability x motivationThe motivation factor --- performance = ability x motivation Who should make the selection decision?Who should make the selection decision?
Meeting the Challenges of Meeting the Challenges of Effective StaffingEffective Staffing
RecruitmentRecruitmentSources of recruiting:Sources of recruiting:
Current employeesCurrent employees Referrals from current employeesReferrals from current employees Former employeesFormer employees Print and radio advertisementsPrint and radio advertisements Internet advertising and career sitesInternet advertising and career sites Employment agenciesEmployment agencies Temporary workersTemporary workers College recruitingCollege recruiting CustomersCustomers
Nontraditional RecruitingNontraditional Recruiting
External vs. internal candidatesExternal vs. internal candidates Recruiting protected classesRecruiting protected classes
Planning the recruitment effortPlanning the recruitment effort Planning your job searchPlanning your job search
SelectionSelection
Reliability and validityReliability and validity Selection tools as predictors of job performanceSelection tools as predictors of job performance Combining predictorsCombining predictors Selection and the person/organization fitSelection and the person/organization fit Reactions to selection devicesReactions to selection devices
ReliabilityReliability – Consistency of measurement, usually across time – Consistency of measurement, usually across time but also across judges.but also across judges.
ValidityValidity – The extent to which the technique measures the – The extent to which the technique measures the intended knowledge, skill, or ability. In the selection context, intended knowledge, skill, or ability. In the selection context, it is the extent to which scores on a test or interview it is the extent to which scores on a test or interview correspond to actual job performance.correspond to actual job performance.
Selection tools as predictors of job performance –Selection tools as predictors of job performance – Letters of recommendationLetters of recommendation Application formsApplication forms Ability testsAbility tests Personality testsPersonality tests Psychology testsPsychology tests Honesty testsHonesty tests Interviews – structuredInterviews – structured Assessment centersAssessment centers Drug testsDrug tests Reference checksReference checks Background checksBackground checks Handwriting analysisHandwriting analysis
Personality TestsPersonality Tests ExtroversionExtroversion AgreeablenessAgreeableness ConscientiousnessConscientiousness Emotional stabilityEmotional stability Openness to experienceOpenness to experience
Structured Job InterviewStructured Job Interview
Situational InterviewSituational Interview
Job Knowledge Job Knowledge
Worker Requirements Worker Requirements QuestionsQuestions
Unstructured Does not Mean Unprepared: Making Unstructured Does not Mean Unprepared: Making the Most of the Hiring Interviewthe Most of the Hiring Interview
Six Simple TasksSix Simple Tasks Be preparedBe prepared
Put applicants at ease in the first few minutesPut applicants at ease in the first few minutes Don’t be ruled by snap judgments or stereotypesDon’t be ruled by snap judgments or stereotypes
Ask results-oriented questionsAsk results-oriented questions Don’t underestimate the power of silenceDon’t underestimate the power of silence
Close the interview with careClose the interview with care
Reactions to Selection DevicesReactions to Selection Devices
1. Applicant reactions to selection devices1. Applicant reactions to selection devices
2. Manager reaction to selection systems2. Manager reaction to selection systems
Legal Issues in StaffingLegal Issues in Staffing
Discrimination LawsDiscrimination Laws
Affirmative ActionAffirmative Action
Negligent Hiring Negligent Hiring
Develop clear policies on hiring as Develop clear policies on hiring as well as on disciplining and well as on disciplining and dismissing employeesdismissing employees
Check state laws regarding hiring Check state laws regarding hiring applicants with criminal recordsapplicants with criminal records
Learn as much as possible about Learn as much as possible about applicants’ past work-related applicants’ past work-related behavior behavior
CASE STUDY:CASE STUDY:
RECRUITMENT AND SELECTION RECRUITMENT AND SELECTION IN LOB CORPORATE BANKING IN LOB CORPORATE BANKING
BANK DANAMONBANK DANAMON
BACKGROUNDBACKGROUND
Established in 1956, PT Bank Danamon Indonesia, Tbk. is the Established in 1956, PT Bank Danamon Indonesia, Tbk. is the third largest private national bank and the sixth largest third largest private national bank and the sixth largest commercial bank in Indonesia, with a 5% share of domestic commercial bank in Indonesia, with a 5% share of domestic loans and depositsloans and deposits
Asia Financial Indonesia Pte. Ltd. (AFI) owns 67.87% of Asia Financial Indonesia Pte. Ltd. (AFI) owns 67.87% of Danamon. AFI is a consortium of Asia Financial Holding 85% Danamon. AFI is a consortium of Asia Financial Holding 85% (wholly owned by Temasek group) and Deutsche (wholly owned by Temasek group) and Deutsche Bank AG Bank AG 15%. 15%.
Temasek Holdings is a Singapore-based investment company Temasek Holdings is a Singapore-based investment company which owns by Government of Singapore with AAA rating. which owns by Government of Singapore with AAA rating. The remaining of Danamon’s shares are publicly owned.The remaining of Danamon’s shares are publicly owned.
HR Organization ChartHR Organization Chart
HUMAN RESOURCES HEAD
Human Capital Head
Sourcing, Assessment &
Talent Management
Remuneration
Organization & Performance Management
Learning Group Head
HR Planning & Measurement
Head
HR Service Delivery Head
HR Strategic Partner Head
HRIS & Services
Employee Relation
HR Region
HR Policy on HR Policy on Recruitment and SelectionRecruitment and Selection
Established in BOD decision letter (SK) for bank wide as well Established in BOD decision letter (SK) for bank wide as well as LOB, reviewed annually to follow business development.as LOB, reviewed annually to follow business development.
The objective is to fulfill company needs align with the The objective is to fulfill company needs align with the business plan of respective units with transparent, objective, business plan of respective units with transparent, objective, and professional selection processes based on Man Power and professional selection processes based on Man Power Planning (MPP).Planning (MPP).
Employee status to be hired:Employee status to be hired: Permanent staffPermanent staff Contractual staffContractual staff TraineeTrainee Outsourcing staffOutsourcing staff
General Policy, there are 2 reasons for recruitment and selection:General Policy, there are 2 reasons for recruitment and selection: Staff additional for business development or man power Staff additional for business development or man power
deficiencydeficiency Staff replacement due to staff rotation, resign, pension, etc.Staff replacement due to staff rotation, resign, pension, etc.
Take consideration on budget system established by Financial Control Take consideration on budget system established by Financial Control DepartmentDepartment
No discrimination against applicant based on sex, race, etc. No discrimination against applicant based on sex, race, etc. Source or recruitment and selection:Source or recruitment and selection:
Internal, trough job posting Internal, trough job posting External, with channel: advertising, referral, job fair, walk in External, with channel: advertising, referral, job fair, walk in
applicant, agent (head hunter), or outsourcing/vendor (if applicant, agent (head hunter), or outsourcing/vendor (if needed) needed)
Supply and Demand ConditionSupply and Demand Condition3 periods of condition:3 periods of condition: Up to September 2008: Mass recruitmentUp to September 2008: Mass recruitment
Mainly to support rapid growth of LOB SEMM (micro banking)Mainly to support rapid growth of LOB SEMM (micro banking) Consolidation period, October 2008 – mid 2009: Consolidation period, October 2008 – mid 2009:
Stop/freeze recruitment from externalStop/freeze recruitment from external Internal sourcing (zero growth)Internal sourcing (zero growth) No contract extension No contract extension
After consolidation period, mid 2009 onward: Selective After consolidation period, mid 2009 onward: Selective recruitment from external sourcing only for key position, that recruitment from external sourcing only for key position, that has to align with specific business plan and subject to special has to align with specific business plan and subject to special approval from BODapproval from BOD
Hiring/Selection ProcessHiring/Selection Process
Refer to HR budget system, the respective unit establish Man Refer to HR budget system, the respective unit establish Man Power Form (Formulir Kebutuhan Pegawai). Any deviation Power Form (Formulir Kebutuhan Pegawai). Any deviation should get approval from respective PIC in HR Head Office, should get approval from respective PIC in HR Head Office, and for certain level should get approval from BOD. and for certain level should get approval from BOD.
Recruitment and selection has to consider hard competency Recruitment and selection has to consider hard competency and soft competency supported by educational background, and soft competency supported by educational background, work experience, reference, and medical check-up.work experience, reference, and medical check-up.
Recruitment with direct familial relationship or marital Recruitment with direct familial relationship or marital relationship should be avoided. Any deviation should get relationship should be avoided. Any deviation should get approval from BOD.approval from BOD.
Hiring/Selection ProcessHiring/Selection Process Responsibility in recruitment and selection:Responsibility in recruitment and selection:
Sourcing, Assessment & Talent Management for Head Sourcing, Assessment & Talent Management for Head Office staffOffice staff
HR Region for Regional and Branch staffHR Region for Regional and Branch staff Selection process and PIC:Selection process and PIC:
For Middle Line and Senior Management, mainly For Middle Line and Senior Management, mainly interviewed with 2-3 members incorporated with interviewed with 2-3 members incorporated with reference check and medical check-up. PIC is Sourcing, reference check and medical check-up. PIC is Sourcing, Assessment & Talent Management Assessment & Talent Management
For Clerical up to First Line Management, plus psycho For Clerical up to First Line Management, plus psycho test to measure attitude and personality (web based), test to measure attitude and personality (web based), also ability test if needed, with HR Region as PICalso ability test if needed, with HR Region as PIC
Special tools (Gallup) for MT staffSpecial tools (Gallup) for MT staff
Recruitment and Selection EvaluationRecruitment and Selection Evaluation
In annual basisIn annual basis Performed by HR Head Office in coordination with respective Performed by HR Head Office in coordination with respective
LOB’sLOB’s Conveyed to HR Committee and respective LOB’s for process Conveyed to HR Committee and respective LOB’s for process
improvement improvement
RecommendationRecommendation
Performing recruitment and selection evaluation in Performing recruitment and selection evaluation in comparing:comparing:
Citizenship: Foreign vs local staffCitizenship: Foreign vs local staff Staff’s original company: Foreign vs local bankStaff’s original company: Foreign vs local bank
In favor effectiveness, efficiency, Corporate culture building, In favor effectiveness, efficiency, Corporate culture building, and turnover, align with bank and policy.and turnover, align with bank and policy.
Evaluation on staff sourcing, especially for internal, former Evaluation on staff sourcing, especially for internal, former staff, and referral with certain employment period, compare staff, and referral with certain employment period, compare to existing staff (with longer employment period).to existing staff (with longer employment period).
Thank YouThank You
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