Shri D. N.

Institute of Business Administration HRM

Name of Faculty: Ritesh H. Patel
Class: SYBBA (Gen)
Unit: 2
Recruitment:
Meaning of Recruitment:
Recruitment means search of the prospective employee to suit the job requirements as
represented by job specificationa technique of job analysis.
Edwin Flippo defined Recruitment as the process of searching for prospective
employees and stimulating them to apply for jobs in the Organization.
Dale S. Beach has defined Recruitment as the development and maintenance of
adequate manpower resources. It involves the creation of a pool of available labor
upon whom the organization can depend when it needs additional employees.
Recruitment involves estimating the available vacancies and making suitable arrangements
for their selection and appointment. In order to attract people for the jobs, the Organization
must communicate the position in such a way that job seekers respond. To be cost effective,
the recruitment process should attract qualified applicants and provide enough information
for unqualified persons to self-select themselves out.
Thus, the recruitment process begins when new recruits are sought and ends when their
applications are submitted. The result is a pool of applicants from which new employees are
selected.
Sources of Recruitment:
The sources of recruitment may be broadly divided into two categories:

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1. Internal sources and
2. External sources.

A. Internal sources
Persons who are already working in an Organization constitute the internal sources.
Retrenched employees, retired employees, dependents of deceased employees generally
constitute the internal sources. Whenever any vacancy arises, someone from within the
Organization is upgraded, transferred, promoted or even demoted.
The internal sources of recruitment are:1. Promotions: Promotion means to give a higher position, status, salary and
responsibility to the employee. So, the vacancy can be filled by promoting a suitable
candidate from the same organization.
2. Transfers: Transfer means a change in the place of employment without any change in
the position, status, salary and responsibility of the employee. So, the vacancy can be
filled by transferring a suitable candidate from the same organization.

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3. Employee Referrals: Employee referral means using personal contacts of employees to
locate job prospects. It is a recommendation from a current employee regarding a job
applicant. The logic behind employee referral is that it takes one to know one.
Employees working in the Organization, in this case, are encouraged to recommend the
names of known persons, working in other Organizations for a possible vacancy in the
near future.
4. Job Posting: Job posting is another way of hiring people from within. In this method,
the organization publicizes job opening on bulletin boards, electronic method and
similar outlets. One of the important advantages of this method is that it offers a
chance to highly qualified persons working within the Company to look for growth
opportunities without looking for greener pastures outside.
Advantages of Internal Sources:
Economical: The cost of recruiting internal candidates is minimal. No expenses are
incurred on advertising.
Suitable: The Organization can pick the right candidates having the requisite skills. The
candidate can choose a right vacancy where their talents can be fully utilized.
Reliable: The Organization has the knowledge about suitability of a candidate for a
position. This supports the saying Known devils are better than unknown angels!
Satisfying: A policy of preferring people from within offers regular promotional avenues for
employees. It motivates them to work hard and earn promotions. They will work with
loyalty, commitment and enthusiasm.
Disadvantages of Internal Sources:

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Limited Choice: The Organization is forced to select candidates from a limited pool. It may
have to sacrifice quality and settle down for less qualified candidates.
Inbreeding: It discourages entry of talented people, available outside the Organization.
Existing employees may fail to explore innovative ways and inject necessary dynamism to
enterprise activities.
Inefficiency: Promotions based on length of service rather than merit, may prove to be a
blessing for inefficient candidates. They do not work hard and prove their worth.
Bone of contention: Recruitment from within may lead to infighting among employees
aspiring for limited, higher level positions in an organization. As years roll by, the race for
premium positions may end up in a bitter race.
2. External sources.
External sources refer to the practice of getting suitable persons from outside. The various
external sources are advertisement, employment exchange, past employees, private
placement agencies and consultants, walks-ins, campus recruitment, trade unions, etc.
The following external sources of recruitment are commonly used by the big enterprises:
The external sources of recruitment are:1. Management Consultants: Management consultants are used for selecting higher-level
staff. They act as a representative of the employer. They make all the necessary
arrangements for recruitment and selection. In return for their services, they take a
service charge or commission.
2. Public Advertisements: The Personnel department of a company advertises the
vacancy in newspapers, the internet, etc. This advertisement gives information about
the company, the job and the required qualities of the candidate. It invites applications

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from suitable candidates. This source is the most popular source of recruitment. This is
because it gives a very wide choice. However, it is very costly and time consuming.
3. Campus Recruitment: The organization conducts interviews in the campuses of
Management institutes and Engineering Colleges. Final year students, who're soon to
get graduates, are interviewed. Suitable candidates are selected by the organization
based on their academic record, communication skills, intelligence, etc. This source is
used for recruiting qualified, trained but inexperienced candidates.
4. Recommendations: The organization may also recruit candidates based on the
recommendations received from existing managers or from sister companies.
5. Deputation Personnel: The organization may also recruit candidates who are sent on
deputation by the Government or Financial institutions or by holding or subsidiary
companies.
6. Direct Recruitment: An important source of recruitment is direct recruitment by
placing a notice on the notice board of the enterprise specifying the details of the jobs
available. It is also known as recruitment at factory gate.
7. Employment Exchanges: As a statutory requirement, Companies are also expected to
notify (wherever the Employment Exchanges Act, 1959, applies) their vacancies through
the respective Employment Exchanges, created all over India for helping unemployed
youth, displaced persons, ex-military personnel, physically handicapped, etc.
Advantages of External sources:
Wide Choice: The Organization has the freedom to select candidates from a large pool.
Persons with requisite qualifications could be picked up.

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Injection of fresh blood: People with special skills and knowledge could be hired to stir up
the existing employees and pave the way for innovative ways of working.
Motivational force: It helps in motivating internal employees to work hard and compete
with external candidates while seeking career growth. Such a competitive atmosphere
would help an employee to work to the best of his abilities.
Long term benefits: Talented people could join the ranks, new ideas could find meaningful
expression, a competitive atmosphere would compel people to give out their best and earn
rewards, etc.
Disadvantages of External sources:
Expensive: Hiring costs could go up substantially. Tapping multifarious sources of
recruitment is not an easy task either.
Time consuming: It takes time to advertise, screen and test, to select suitable employees.
Where suitable ones are not available, the process has to be repeated.
De-motivating: Existing employees who have put in considerable service may resist the
process of filling up vacancies from outside. The feeling that their services have not been
recognized by the organization, forces them to work with less enthusiasm and motivation.
Uncertainty: There is no guarantee that the Organization will ultimately be able to hire the
services of suitable candidates. It may end up hiring someone who does not fit and who
may not be able to adjust in the new setup.

Selection:
Meaning & Definition
To select means to choose. Selection is a part of the recruitment function. It is the process
of choosing people by obtaining and assessing information about the applicants (age,

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qualification, experience and qualities) with a view of matching these with the job
requirements and picking up the most suitable candidates. The choices are made by
elimination of the unsuitable at successive stages of the selection process.
According to O. Donnell, Selection is the process of choosing from among the candidates,
from within the organization or from the outside, the most suitable person for the current
position or for the future position."
Employee Selection is the process of putting right men on right job. It is a procedure of
matching organizational requirements with the skills and qualifications of people. Effective
selection can be done only when there is effective matching. By selecting best candidate for
the required job, the organization will get quality performance of employees.
Selection Procedure:
The Employee selection Process takes place in following order-

1.

Preliminary Interviews- It is used to eliminate those candidates who do not meet

the minimum eligibility criteria laid down by the organization. The skills, academic and
family background, competencies and interests of the candidate are examined during

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preliminary interview. Preliminary interviews are less formalized and planned than the
final interviews. The candidates are given a brief up about the company and the job
profile; and it is also examined how much the candidate knows about the company.
Preliminary interviews are also called screening interviews.
2.

Application form- The candidates who clear the preliminary interview are required
to fill application blank. It contains data record of the candidates such as details about
age, qualifications, reason for leaving previous job, experience, etc.

3.

Written Tests- Various written tests conducted during selection procedure are
aptitude test, intelligence test, reasoning test, personality test, etc. These tests are used
to objectively assess the potential candidate. They should not be biased.

4.

Employment Interviews- It is a one to one interaction between the interviewer and

the potential candidate. It is used to find whether the candidate is best suited for the
required job or not. But such interviews consume time and money both. Moreover the
competencies of the candidate cannot be judged. Such interviews may be biased at
times. Such interviews should be conducted properly. No distractions should be there in
room. There should be an honest communication between candidate and interviewer.

5.

Reference Check- After the interview, the Personnel department checks the
references of the successful candidates. These references are contacted personally or by
telephone or by letter, and they are asked their opinion about the candidate. The main
purpose of a reference check is to collect information about the past performance of the
candidate in order to judge his future performance. The accuracy of the information
given by the candidate can also be checked.

6.

Medical examination- Medical tests are conducted to ensure physical fitness of the
potential employee. It will decrease chances of employee absenteeism.

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7.

Final Selection, Placement and Induction- The candidates who are successful in
the medical examination are issued appointment letters, and they are asked to join the
organisation on a particular date. On the joining date, the candidate is properly placed
and inducted.

Employee Training:
Training of employees takes place after orientation takes place.

Employee Training
Training is the process of enhancing the skills, capabilities and knowledge of employees for
doing a particular job.

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Training process moulds the thinking of employees and leads to quality performance of
employees. It is continuous and never ending in nature.
Training makes a very important contribution to the development of the organizations
human resources and hence to the achievement of its aims and objectives. To achieve its
purpose, training needs to be effectively managed so that the right training is given to the
right people, in the right form, at the right time and at the right costs.
Importance of Training
The benefits of training can be summed up as:
1. Improves morale of employees- Training helps the employee to get job security and job
satisfaction. The more satisfied the employee is and the greater is his morale, the more
he will contribute to organizational success and the lesser will be employee absenteeism
and turnover.
2. Less supervision- A well trained employee will be well acquainted with the job and will
need less of supervision. Thus, there will be less wastage of time and efforts.
3. Fewer accidents- Errors are likely to occur if the employees lack knowledge and skills
required for doing a particular job. The more trained an employee is, the less are the
chances of committing accidents in job and the more proficient the employee becomes.
4. Chances of promotion- Employees acquire skills and efficiency during training. They
become more eligible for promotion. They become an asset for the organization.
5. Increased productivity- Training improves efficiency and productivity of employees.
Well trained employees show both quantity and quality performance. There is less
wastage of time, money and resources if employees are properly trained.

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Techniques of Training:
A. On-the-job Training:
In this method, the trainee is placed on a regular job and taught the skills necessary to
perform it. The trainee learns under the guidance and supervision of the instructor. The
trainee learns by observing and handling the job. Therefore, it is called learning by doing.
The following techniques are used for on the job training of the employees.
1. Coaching: This technique is used to train generally the manager level employees. It is
also applied to the other categories of employees. It is a person to person interaction.
The superior or expert in a particular area observe the performance of an employee
closely and initiates corrective action. This technique focuses identifying weaknesses
and finding the areas of improvement.
2. Mentoring: The junior employees are attached to seniors for training. . The seniors will
provide guidance and understanding of various issues related to the organization, job
performance techniques, culture and traditions, vision and mission, team work and
group behavior, etc to the juniors..
3. Committee assignments: The employees are nominated as a member of committee to
facilitate learning under this method. This method provides an opportunity for the
employee to participate in decision making process, observe the activities of other
members and investigate organizational problems.
4. Job rotation: Job rotation represents an excellent method for broadening the manager
or potential manager and for turning specialist into generalists. In addition to increasing
the managers experience and allowing the manager to absorb new information, it can
reduce boredom and stimulate the development of new ideas. It can also provide
opportunities for a more comprehensive and reliable evaluation of the manager by his or
her supervisors.

B. Off - the Job Training:

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There are many management development technique that personal can take is given
outside the actual work place. Few popular ones: 1. Lectures/Conferences: - This approach is well adapted to convey specific information,
rules, procedures or methods. This method is useful, where the information is to be
shared among a large number of trainees. The cost per trainee is low in this method.
2. Films: - can provide information & explicitly demonstrate skills that are not easily
presented by other techniques. Motion pictures are often used in conjunction with
Conference, discussions to clarify & amplify those points that the film emphasized.
3. Simulation Exercise: - Any training activity that explicitly places the trainee in an
artificial environment that closely mirrors actual working conditions can be considered
a Simulation. Simulation activities include case experiences, experiential exercises,
vestibule training, management games & role-play.
4. Cases: - present an in depth description of a particular problem an employee might
encounter on the job. The employee attempts to find and analyze the problem, evaluate
alternative courses of action & decide what course of action would be most satisfactory.
5. Experiential Exercises: - are usually short, structured learning experiences where
individuals learn by doing. For instance, rather than talking about inter-personal
conflicts & how to deal with them, an experiential exercise could be used to create a
conflict situation where employees have to experience a conflict personally & work out
its solutions.
6. Vestibule Training: - Employees learn their jobs on the equipment they will be using,
but the training is conducted away from the actual work floor. While expensive,
Vestibule training allows employees to get a full feel for doing task without real world
pressures. Additionally, it minimizes the problem of transferring learning to the job.
7. Role Play: - Its just like acting out a given role as in a stage play. In this method of
training, the trainees are required to enact defined roles on the basis of oral or written
description of a particular situation.
8. Management Games: - The game is devised on a model of a business situation. The
trainees are divided into groups who represent the management of competing

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companies. They make decisions just like these are made in real-life situations.
Decisions made by the groups are evaluated & the likely implications of the decisions
are fed back to the groups. The game goes on in several rounds to take the time
dimension into account.
9. In-Basket Exercise: - Also known as In-tray method of training. The trainee is
presented with a pack of papers & files in a tray containing administrative problems &
is asked to take decisions on these problems & is asked to take decisions on these
within a stipulated time. The decisions taken by the trainees are compared with one
-another. The trainees are provided feedback on their performance.

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