Unit
– III: Recruitment and Selection
Meaning and definition of Recruitment
Recruitment is the process of
searching for prospective employees and stimulating them to apply for jobs in
the organization. When more persons apply for job then there will be a scope
for recruiting better persons. The job-seekers too on the other hand, are in
search of organizations offering them employment. Recruitment is a linkage
activity bringing together those with jobs and those seeking jobs.
Definitions: Flippo –
“Recruitment is the process of searching prospective employees and stimulating
them to apply for the jobs in the organization”
McFarland- “ The term
recruitment applies to the process of attracting potential employees of the
company.”
Thus recruitment may be
considered as a positive action as it involves attracting the people towards
organization. The main purpose is to
have a rich inventory of eligible persons from amongst whom the most suitable
candidates can be selected for employment in the organization.
Sources
of Recruitment:
The finding out where suitable
candidates are available and informing them about the openings in the
organization is the most important aspect of recruitment process. The
candidates may be available inside the organization as well outsider it.
Recruitment sources can be described as: internal and external sources.
A. Internal Sources: Internal source is one of the important
sources of recruitment the employees already working in the organization may be
more suitable for higher jobs than those recruited from outside. The present
employees may help in the recruitment of new persons also internal sources are
discussed as follows:
1. Transfers: Transfer involves shifting of persons from
present jobs to other similar places. These don't involve any change in rank,
responsibility and prestige. The numbers of persons don't increase with
transfer but vacant posts may be attended to.
2. Promotions: Promotions refers to shifting of persons
to positions carrying better prestige, higher responsibilities and more
salaries. The higher positions falling vacant may be filled up from within the
organization. A promotion doesn't increase the number of persons in the
organization. A person going to get a higher position will vacate his present
position. Promotion avenues motivate employees to improve their performance so
that they get promotions to higher position.
3. Present Employees: The present employees
of an enterprise may be informed about likely vacant position. The employees
recommend their relations or persons intimately known to them. Management is
relieved of botheration for looking out prospective candidates. The persons
recommended by the employees will be suitable for the job because they know the
needs & requirement of various positions. The existing employees take full
responsibility for those recommended by them and try to ensure their proper
behavior and performance. This method of recruiting employees is suitable for
lower position only. It may create nepotism and favoritism. The workers may be
employees on the basis of their recommendations and not suitability.
Merits of Internal Sources:
The following are the merits of internal sources of recruitment:
a) It creates a sense of security among
employees when they are assured that they would be preferred in filling up
vacancies.
b) It improves the morale of employees, for
they are assured of the fact that they would be preferred over outsiders when
vacancies occur.
c) It promotes loyalty and commitment among
employees due to sense of job security and opportunities for advancement.
d) The employer is in a better position to
evaluate those presently employed than outside candidates.
e) This is because the company maintains a
record of the progress, experience and service of its employees.
f) Time and costs of training will be low
because employees remain familiar with the organisation and its policies.
g) Relations with trade unions remain good.
Labour turnover is reduced.
h) As the persons in the employment of the
company are fully aware of, and well acquainted wit, its policies and know its
operating procedures, they require little training, and the chances are that they
would stay longer in the employment of the organisation than a new outsider
would.
i)
It
encourages self-development among the employees. It encourages good individuals
who are ambitious.
j)
It
encourages stability from continuity of employment.
k) It can also act as a training device for
developing middle and top-level managers.
Demerits of Internal Sources: Internal sources of recruitment have certain
disadvantages as follows:
1. Recruitment of internals leads to
inbreeding and discourages new blood with new ideas from entering into the
organization.
2. It is possible that internal sources
ultimately dry up and hence it may be difficult to find suitable persons from
within the organization.
3. In case of certain jobs such as
advertising, style, designing, basic research etc recruitment from within is
not desirable.
4. As promotion is based on seniority, the
danger is that really capable hands may not be chosen. The likes and dislikes
of the management may also play an important role in the selection of
personnel.
5. Since the learner does not know more than
the lecturer, no innovations worth the name can be made. Therefore, on jobs
which require original thinking, this practice is not followed.
6. Generally for middle level managers
internal source is rarely used, however for promoting blue collar workers to
white collar jobs internal source is more desirable.
B. External Sources:
Every enterprise has to use external sources for recruitment to higher
positions when existing employees are not suitable. More person are needed when
expansion are undertaken. External methods are discussed as follows.
Advertisement:
Advertisement is the best
method of recruiting persons for higher and experienced jobs. The
advertisements are given in local or national press, trade or professional
journals. The requirements of jobs are given in the advertisement. The
prospective candidates evaluate themselves against the requirement of jobs before
sending their applications. Management gets a wider range of candidates for
selection. The flood of applications may create difficulties in the process.
Employment
Exchanges: Employment
Exchanges run by the government are also a good source of recruitment.
Unemployed persons get themselves registered with these exchanges. The
vacancies may be notified with the exchanges, whenever there is a need. The
exchange supplies a list of candidates fulfilling required qualification.
Exchanges are a suitable source of recruitment for filling unskilled,
semi-skilled, skilled and operative posts.
Education
Institutions: The jobs in
trade and industry are becoming technical and complex. These jobs require
certain amount of educational and technical qualifications. The employers
maintain a close liaison with universities and technical institutions. The
students are spotted during the course of their studies. Junior level,
executives or managerial may be recruited in this way.
Unsolicited
Applicants: Persons in search
of employment may contact employers through telephone, by post or in person.
Generally, employers with good reputation get unsolicited applications. If an
opening is there or is likely to be there then these persons are considered for
such jobs. Personnel department may maintain a record of unsolicited
applications. When jobs suitable for these persons are available these persons
are available these are considered for employment.
Casual
Callers: Management may
appoint persons who casually call on them for meeting short-term demands. This
will avoid following a regular procedure of selection. These persons are
appointed for short periods only. They need not be paid retrenchment or layoff
allowance. This method of recruitment is economical because management does not
incur a liability in pensions, insurance and fringe benefits.
Labour Contractors: It is
quite common to engage contractors for the supply of labour. When workers are
required for short period and are hired without going through the full
procedure of selection etc.., contractors maintain regular contracts with works
at their places and also bring them to the cities at their own expense. The
persons hired under this system are generally unskilled workers.
Labour Unions: Labour unions
are one of the sources of external recruitment. The job seekers are required to
register with labour unions, & the labour unions are require to supply the
names of persons for filing the vacancies. This method may encourage good
co-operation between business firms and labour unions, active participation of
persons in labour unions, the development of leadership qualities in workers,
etc.,
Consulting Agencies:
Consulting agencies are one of the important sources of recruitment, especially
for big companies. Consulting agencies are specialised agencies which recruit
people on behalf of their clients. They invite application for jobs specified
by their clients from job seekers through advertisements, screen the
application, interview the candidates and select the suitable candidate. They
do these services for their clients for some Fees.
Educational Institutions:
Universities, Colleges & Management institute are also one of the sources
of recruitment of personnel, particularly for the posts of Scientists,
Engineers & Management specialist. They have there own employment bureaus
to help business organizations in recruiting the students for various jobs.
Present Employees: Present
Employees are also one of the sources of recruitment of personnel. The present
employees of the concern are asked by the management to recommend suitable
persons for employment in the concern.
Advantages of External
Recruitment: External sources of recruitment are
suitable for the following reasons:
1. It will help in bringing new ideas, better
techniques and improved methods to the organisation.
2. The cost of employees will be minimised
because candidates selected in this method will be placed in the minimum pay
scale.
3. The existing employees will also broaden
their personality.
4. The entry of qualitative persons from
outside will be in the interest of the organisation in the long run.
5. The suitable candidates with skill,
talent, knowledge are available from external sources.
6. The entry of new persons with varied
expansion and talent will help in human resource mix.
Disadvantages of External
Sources:
1. Orientation and training are required as
the employees remain unfamiliar with the organisation.
2. It is more expensive and time-consuming.
Detailed screening is necessary as very little is known about the candidate.
3. If new entrant fails to adjust himself to
the working in the enterprise, it means yet more expenditure on looking for his
replacement.
4. Motivation, morale and loyalty of existing
staff are affected, if higher level jobs are filled from external sources. It
becomes a source of heart-burning and demoralisation among existing employees.
Difference
between internal and external sources of recruitment
Bases
of Difference
|
Internal
Sources
|
External
Sources
|
Meaning
|
Recruitment is form within the
organization.
|
It is the recruitment from outside
employees.
|
Bases
|
It is generally based on seniority cum
merit.
|
It is strictly based on merit and
qualifications.
|
Time involved
|
It is less time consuming.
|
It is a time consuming exercise.
|
Cost
|
It is a cheap source of recruitment.
|
It is an expensive source of
recruitment. It involves time, expense and resources.
|
Reference
|
No reference of the employees is needed
since all his records are available with the concern.
|
Since enterprise does not know about
person, references about previous work, conduct and character are needed.
|
Choice
|
There is a limited choice from among the present employees.
|
There is a wide choice from a large
number of applicants.
|
Factor Affecting Recruitment
The factors affecting
recruitment can be classified as internal and external factors.
The
internal factors are:
a) Wage and salary policies;
b) The age composition of existing working
force;
c) Promotion and retirement policies;
d) Turnover rates;
e) The nature of operations involved the kind
of personnel required;
f) The level and seasonality of operations in
question;
g) Future expansion and reduction programmes;
h) Recruiting policy of the organisation;
i)
Human
resource planning strategy of the company;
j)
Size
of the organisation and the number of employees employed;
k) Cost involved in recruiting employees, and
finally;
l)
Growth
and expansion plans of the organisation.
The external factors are:
a) Supply and demand of specific skills in
the labour market;
b) Company’s image perception of the job
seekers about the company.
c) External cultural factors: Obviously, the
culture may exert considerable check on recruitment. For example, women may not
be recruited in certain jobs in industry.
d) Economic factors: such as a tight or loose
labour market, the reputation of the enterprise in the community as a good pay
master or otherwise and such allied issues which determine the quality and
quantity of manpower submitting itself for recruitment.
e) Political and legal factors also exert
restraints in respect of nature and hours of work for women and children, and
allied employment practices in the enterprise, reservation of Job for SC, ST
and so on.
RECRUIMENT
PROCESS
Recruitment is the process of
location, identifying, and
attracting capable applications
for jobs available
in an organization.
Accordingly, the recruitment
process comprises the
following five steps:
1. Recruitment Planning: The first involved
in the recruitment process is planning.
Hire, planning involves to draft a comprehensive job specification for
the vacant position, outline its major and minor responsibilities; the skills,
experience and qualifications needed;
grade and level of
pay; starting date;
whether temporary or
permanent; and mention
of special condition, if any,
attached to the
job to be filled.
2. Strategy Development: Once it
is known how
many with what
qualification of candidates
are required, the next
step involved in
this regard is
to device a
suitable strategy for recruitment
the candidates in
the organization. The strategic considerations to be
considered may include
issues like whether
to prepare the
required candidates
themselves or hire
it from outside,
what type of recruitment method to
be used, what
geographical area be
considered, for searching
the candidates, which source
of recruitment to
be practiced, and
what sequence of activities
to be followed
in recruiting candidates
in the organization.
3. Searching: This step involves attracting
job seeders to the organization. There
are broadly two sources used to attract candidates. These are:
Ø
Internal Sources
Ø
External Sources.
4. Screening: Through some
view screening as the starting
point of selection,
we have considered it
as an integral
part of recruitment.
The reason being the
selection process starts
only after the
application have been
screened and short listed. Those who do not qualify are
straightway eliminated from the selection process. The techniques used for
screening candidates are vary depending on the source of supply and method used
for recruiting. Preliminary applications, de-selections tests and screening
interviews are common techniques used for screening the candidates.
5. Evaluation and control: Given the
considerable involved in the recruitment process, its evaluation and control
is, therefore, imperative. The costs generally incurred in a recruitment
process include Salary of recruiters, Cost of time spent for preparing job
analysis, advertisement, Administrative expenses, Cost of outsourcing or overtime
while vacancies remain unfilled, Cost incurred in recruiting unsuitable
candidates.
In view of above, it is
necessary for a prudent employed to try answering certain questions like:
a) Whether the recruitment methods are appropriate
and valid?
b) Whether the recruitment process followed
in the organization is effective at all or not?
Meaning
of Selection in Human Resource Management
Human resource selection is
the process of choosing qualified individuals who are available to fill
positions in an organization. In the ideal personnel situation, selection
involves choosing the best applicant to fill a position. Selection is the
process of choosing people by obtaining and assessing information about the applicants
with a view to matching these with the job requirements. It involves a careful
screening and testing of candidates who have put in their applications for any
job in the enterprise. It is the process of choosing the most suitable persons
out of all the applicants. The purpose of selection is to pick up the right person
for every job.
It can be conceptualised in
terms of either choosing the fit candidates, or rejecting the unfit candidates,
or a combination of both. Selection involves both because it picks up the fits
and rejects the unfits. In fact, in Indian context, there are more candidates
who are rejected than those who are selected in most of the selection
processes. Therefore, sometimes, it is called a negative process in contrast to
positive programme of recruitment.
According
to Dale Yoder, “Selection is
the process in which candidates for employment are divided into two
classes-those who are to be offered employment and those who are not”.
According
to Thomas Stone, “Selection
is the process of differentiating between applicants in order to identify (and
hire) those with a greater likelihood of success in a job”.
According
to Keith Davis, “Selection is
the process by which an organisation chooses from a list of screened
applicants, the person or persons who best meet the selection criteria for the
position available.”
Thus, the selection process is
a tool in the hands of management to differentiate between the qualified and unqualified
applicants by applying various techniques such as interviews, tests etc. The
cost incurred in recruiting and selecting any new employee is expensive. The
cost of selecting people who are inadequate performers or who leave the
organisation before contributing to profits proves a major cost of doing business.
Significance of Selection
Selection means to choose the person from among the prospective
candidates to fill in the vacant posts in the organisation. The success of the
organisation depends upon the quality of personnel selected for the job. Thus
selection of personnel is the most important function of the personnel
management. The importance of selection may be judged from the following facts:
1. Procurement
of Qualified and Skilled Workers: Scientific selection facilitates the
procurement of well qualified and skilled workers in the organisation. It is in
the interest of the organisation in order to maintain the supremacy over the
other competitive firms. Selection of skilled personnel reduces the labour cost
and increases the production. Selection of skilled personnel also facilitate the
expansion in the size of the business.
2. Reduced
Cost of Training and Development: Proper selection of candidates reduces the
cost of training because qualified personnel have better grasping power. They
can understand the technique of the work better and in no time. Further, the
organisation can develop different training programmes for different persons on
the basis of their individual differences, thus reducing the lime and cost of
training considerably.
3. Lesser need for training: Properly selected personnel
exhibit a lesser need for training; as their suitability for the jobs to be
assigned to them, has already been verified through the selection-procedure. As
such the necessity for arranging ‘routine-training programmes’ for such
personnel is rules out – saving organisation’s time, efforts and costs involved
in conducting such training programmes.
4. Self-motivation and high morale: When suitable candidates
(i.e. ‘best-fits’) are assigned to matching jobs; such personnel feel
self-motivated towards the best performance of’ their jobs. The constant state
of self-motivation over a period of time helps in building high morale of such
personnel, for the organisation.
5. Absence
of Personnel Problems: Proper selection of personnel reduces personnel problems
in the organisation. Many problems like labour turnover, absenteeism and
monotony shall not be experienced in their severity in the organisation. Labour
relations will be better because workers will be fully satisfied by the work.
Skilled workers help the management to expand the business and to earn more
profits and management in turn compensate the workers with high wages, benefits
etc.
6. More and better production - leading to profit maximization:
A derivative advantage of the ‘self-motivation and high morale’ is that the
production (or performance) turned out by ‘best fits’ is not only more in
quantity; but is also of a superior quality. This phenomenon leads to profit
maximisation, for the enterprise, in the long-run.
7. Good human relations: As a result of good selections, there
is a better environment for working in the organisation. Such environment helps
to promote good human relations in the organisation; which is one of the highly
valued assets of the organisation.
Steps
in Selection Process:
Selection is a process of
choosing right person for the right job. The selection process consists of a
series of steps or techniques as follows:
1. Job
Analysis: The first step
in selection process is analyzing the job. Job analysis consists of two parts :
Job Description, and Job Specification. Proper job analysis helps to advertise
the job properly. Accordingly, the right candidates may apply for the job, thus
saving a lot of time and effort of the selectors.
2. Advertising the
Job: The next step is to
advertise the job. The job can be advertised through various media. The right
details about the job and the candidate must be given in the advertisement.
3. Initial
Screening: The initial
screening can be done of the applications and of the applicant. Usually, a
junior executive does the screening work. At this stage, the executive may
check on the general personality, age, qualifications, family background of the
candidate. The candidate may also be informed of salary, working conditions,
etc.
4. Application
Blank: It is a
prescribed form of the company which helps to obtain information about
candidate in respect of social, biographic, academic, work experience,
references, etc. The application blank helps to:
Ø It provides input for the interview.
Ø It provides basis to reject candidates if
they do not meet eligibility criteria, such as experience, qualifications, etc.
5. Tests: Various tests are conducted to judge
the ability and efficiency of the candidates. The type of tests depends upon
the nature of job. An important advantage of testing is that it can be
administered to a large group of candidates at a time and saves time and cost.
The various tests are: (a) Personality test, (b) Intelligence test, (c)
Performance test, (d) Stress test, etc.
6. Interview: It is face to face exchange of
views, ideas and opinions between the candidate and interviewer(s). There are
various types of interviews such as: (a) Panel Interview, (b) Individual
Interview, (c) Group Interview, (d) Stress Interview, (e) Exit Interview.
7. Reference
Check: A candidate may
be asked to provide references from those who are willing to supply or confirm
about the applicant’s past life, character and experience. Reference check
helps to know the personal character and family background of the candidate. It
also helps to guard against possible false information supplied by candidate.
8. Medical Check : Medical examination of the
candidates is undertaken before they join the firm in order to:
a) Find out whether the candidate is
physically fit to carry out duties and responsibilities effectively,
b) Ensure the health and safety of other
employees,
c) Find out whether the candidate is
sensitive to certain work place such as in a chemical factory.
9. Final
Interview: Before making
a job offer, the candidates may be subjected to one more oral interview to find
out their interest in the job and their expectations. At this stage, salary and
other perks may be negotiated.
10. Job Offer: This is the most crucial and final step in
selection process. A wrong selection of a candidate may make the company to
suffer for a good number of years and the loss is incalculable. Company should
make a very important decision to offer
right job to the right person.
Meaning
of Scientific Recruitment and Selection
A scientific recruitment and selection process
involves job analysis, advertisements, written tests, personal interviews,
medical examination, final selection, etc. It is conducted by different types
of experts. It involves a lot of time, energy and money (cost). Even then most
organisations use a scientific selection policy to select their employees. This
is because of its various advantages.
Importance of Scientific Recruitment and Selection:
The scientific selection
policy is given importance due to these reasons:
1. Right job for the Right Person : Scientific selection policy helps to
find the right man for the right job. It also helps to find the right job for
the right person.
2. Reduces Labour Absenteeism and
Turnover : Labour absenteeism refers to the
employees remaining absent from regular duty (work). Labour turnover refers to
the employees leaving the company. Scientific selection policy helps to reduce
both labour absenteeism and labour turnover. This is because it helps to select
the right candidates for the right jobs. These candidates get job satisfaction,
and they have a high morale. So they will not remain absent, and they will not
leave the company.
3. Reduces wastages, damages and
accidents : The scientific selection policy results
in the selection of qualified and interested employees. These employees will be
very careful while handling machines and materials. This will reduce wastage,
damages and accidents.
4. Reduces Training and
Supervision Costs : The scientific selection policy results
in the selection of qualified and interested employees. These employees require
less training and supervision. This will reduce the training and supervision
cost.
5. Improves Goodwill of the
Company : Scientific selection policy results in
the selection of interested employees. These employees will maintain very good
relations with the shareholders, customers, public etc. This will improve the
goodwill of the company.
6. High Morale : The employees who are selected through
scientific selection policy do get job satisfaction. This will increase their
morale. High morale brings many benefits to the company.
7. High Efficiency and
Productivity : The employees selected through this
policy will perform their jobs very efficiently. This will increase the
productivity & profitability of the organisation.
Placement
and Induction
Placement: After an employee
has been recruited he is provided with basic background information about the
employer, working conditions and the information necessary to perform his job
satisfactorily. The new employee’s initial orientation helps him perform better
by providing him information of the company rules, and practices.
According
to Pigors and Myers, “Placement
consists in matching what the supervisor has reason to think the new employee
can do with what the job demands (job requirements), imposes (in strain,
working conditions, etc.), and offers (in the form of pay rate, interest,
companionship with other, promotional possibilities, etc.)” They further state
that it is not easy to match all these factors for a new worker who is still in
many ways an unknown quantity. For this reason, the first placement usually
carries with it the status of probationer.
A
few basic principles should be followed at the time of placement of an employee
on the job. These may be enumerated as below:
1. The job should be offered to the man according
to his qualifications. The placement should neither be higher nor lower than
the qualifications.
2. While introducing the job to the new
employee, an effort should be made to develop a sense of loyalty and
cooperation in him so that he may realise his responsibilities better towards
the job and the organisation.
3. The employee should be made conversant
with the working conditions prevailing in the industry and all things relating
to the job. He should also be made aware of the penalties if he commits a wrong.
4. Man should be placed on the job according
to the requirements of the job. The job should not be adjusted according to the
qualifications or requirements of the man. Job first; man next, should be the
principle of placement.
5. The placement should be ready before the
joining date of the newly selected person.
6. The placement in the initial period may be
temporary as changes are likely after the completion of training. The employee
may be later transferred to the job where he can do better justice.
Orientation is a process
through which a new employee is introduced to the organisation. It is the process
wherein an employee is made to feel comfortable and at home in the
organisation. The new employee is handed over a rulebook, company booklets,
policy manuals, progress reports and documents containing company information
which are informational in nature. It is responsibility of the human resource department
to execute the orientation programme. Orientation is one component of the new
employee socialization process. Socialization is the ongoing process of
instilling in all new employees prevailing attitudes, standards, values,
patterns of behaviour that are expected by the organisation and its
departments.
In
the words of John M. Ivancevich,
“Orientation orients, directs, and guides employees to understand the work,
firm, colleagues, and mission. It introduces new employees to the organisation,
and to his new tasks, managers, and work groups.”
According
to John Bernardin, “Orientation
is a term used for the organizationally sponsored, formalized activities
associated with an employee’s socialisation into the organisation.”
Billimoria
has defined orientation as, “Induction
(orientation) is a technique by which a new employee is rehabilitated into the
changed surroundings and introduced to the practices, policies, and purposes of
the organisation.”
Inductive Training in India
The Induction Training is
also called as an orientation programme, wherein the new employees are
introduced to the rules and regulation of an organization with the objective of
making them accustomed to the working environment, where they will be working. The
new hires are generally provided with the following information about the
organization:
1.
General information about the daily work
routine.
2.
Foundation, history, objectives, mission,
vision, products, services, etc. of the organization.
3.
How workers are required to perform their jobs,
that will contribute to the organization’s objectives.
4.
Detailed presentation of company’s policies,
work rules and employee benefits.
Before designing
the induction training programme the firm needs to decide on the following
parameters:
a) Whether the induction training will
be Formal or Informal. In the Informal training,
the new joinees are put directly on their jobs and are required to adjust
themselves to the working environment.
b) Whereas, in the formal orientation, the
new hire undergoes the structured programme designed by the management, that
helps them to familiarize with the organization.
c) Whether the Induction training will
be Individual or collective. This means whether the new
joinees will be inducted individually or in groups.
d) Whether the training programme will
be Serial or Disjunctive. An induction training is
said to be a serial training when an experienced employee inducts the new hire,
where he acts as a mentor to him.
e) Whereas, training is said to be
disjunctive when no predecessor is there to induct the new joinee.
f) Whether the training programme will follow
an Investiture or Divestiture strategy. In the Investiture
orientation, the formal consent is given to the characteristics that an
individual brings to the organization, especially the high-level appointments.