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INTRODUCTION:-
RECRUITMENT:-
Recruitment is a process of searching for prospective employees and
stimulating them to apply for the job in the organization.

A planned recruitment programme has the following basis components:1

Organizational goals and objectives- why does the organization exist,

what are the goals and objective to be pursued?

Job design- what are the specific duties and responsibilities of each
employees?

Job success criteria what distinguishes successful performance from

unsuccessful performance, and how it is measured? For example, for a
salesman, these criteria could be volume of sales exceeding Rs.10 lakh,
repeat sales of more than 60 per cent, report submission accurately and in
time,etc.

Job specification- what traits and qualities in the individual are related to
successful performance of jobs? For example, adequate (5 year) sales
experience, above 75 points in aptitude for sales job , good
communication skills,etc.

Source of recruitment what source of recruitment are revelant and

economical for the organization.

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Human Resource Management ,writer-Biswajeet Pattanayak,ed-4th.

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SOURCE OF RECRUITMENT:-
The searching of suitable candidates and informing them about the openings
in the enterprise is the most important aspect of recruitment process.

The candidates may be available inside or outside the organisation. Basically,

there are two sources of recruitment i.e., internal and external sources.

(A) Internal Sources:

Best employees can be found within the organisation When a vacancy arises
in the organisation, it may be given to an employee who is already on the pay-
roll. Internal sources include promotion, transfer and in certain cases demotion.
When a higher post is given to a deserving employee, it motivates all other

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employees of the organisation to work hard. The employees can be informed of

such a vacancy by internal advertisement.

Methods of Internal Sources:

The Internal Sources Are Given Below:

1. Transfers:
Transfer involves shifting of persons from present jobs to other similar jobs.
These do not involve any change in rank, responsibility or prestige. The
numbers of persons do not increase with transfers.

2. Promotions:
Promotions refer to shifting of persons to positions carrying better prestige,
higher responsibilities and more pay. The higher positions falling vacant may be
filled up from within the organisation. A promotion does not increase the
number of persons in the organisation.

A person going to get a higher position will vacate his present position.
Promotion will motivate employees to improve their performance so that they
can also get promotion.

3. Present Employees:
The present employees of a concern are informed about likely vacant positions.
The employees recommend their relations or persons intimately known to them.
Management is relieved of looking out prospective candidates.

The persons recommended by the employees may be generally suitable for the
jobs because they know the requirements of various positions. The existing
employees take full responsibility of those recommended by them and also
ensure of their proper behaviour and performance.

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Advantages of Internal Sources:

The Following are The Advantages of Internal Sources:
1. Improves morale:
When an employee from inside the organisation is given the higher post, it helps
in increasing the morale of all employees. Generally every employee expects
promotion to a higher post carrying more status and pay (if he fulfills the other
requirements).

2. No Error in Selection:
When an employee is selected from inside, there is a least possibility of errors
in selection since every company maintains complete record of its employees
and can judge them in a better manner.

3. Promotes Loyalty:
It promotes loyalty among the employees as they feel secured on account of
chances of advancement.

4. No Hasty Decision:
The chances of hasty decisions are completely eliminated as the existing
employees are well tried and can be relied upon.

5. Economy in Training Costs:

The existing employees are fully aware of the operating procedures and policies
of the organisation. The existing employees require little training and it brings
economy in training costs.

6. Self-Development:
It encourages self-development among the employees as they can look forward
to occupy higher posts.

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Disadvantages of Internal Sources:

(i) It discourages capable persons from outside to join the concern.

(ii) It is possible that the requisite number of persons possessing qualifications

for the vacant posts may not be available in the organisation.

(iii) For posts requiring innovations and creative thinking, this method of
recruitment cannot be followed.

(iv) If only seniority is the criterion for promotion, then the person filling the
vacant post may not be really capable.

Inspite of the disadvantages, it is frequently used as a source of recruitment for

lower positions. It may lead to nepotism and favouritism. The employees may
be employed on the basis of their recommendation and not suitability.

(B) External Sources:

All organisations have to use external sources for recruitment to higher
positions when existing employees are not suitable. More persons are needed
when expansions are undertaken.

The external sources are discussed below:

Methods of External Sources:
1. Advertisement:
It is a method of recruitment frequently used for skilled workers, clerical and
higher staff. Advertisement can be given in newspapers and professional
journals. These advertisements attract applicants in large number of highly
variable quality.

Preparing good advertisement is a specialised task. If a company wants to

conceal its name, a blind advertisement may be given asking the applicants to
apply to Post Bag or Box Number or to some advertising agency.

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2. Employment Exchanges:
Employment exchanges in India are run by the Government. For unskilled,
semi-skilled,

skilled, clerical posts etc., it is often used as a source of recruitment. In certain

cases it has been made obligatory for the business concerns to notify their
vacancies to the employment exchange. In the past, employers used to turn to
these agencies only as a last resort. The job-seekers and job-givers are brought
into contact by the employment exchanges.

3. Schools, Colleges and Universities:

Direct recruitment from educational institutions for certain jobs (i.e. placement)
which require technical or professional qualification has become a common
practice. A close liaison between the company and educational institutions helps
in getting suitable candidates. The students are spotted during the course of their
studies. Junior level executives or managerial trainees may be recruited in this
way.

4. Recommendation of Existing Employees:

The present employees know both the company and the candidate being
recommended. Hence some companies encourage their existing employees to
assist them in getting applications from persons who are known to them.

In certain cases rewards may also be given if candidates recommended by them

are actually selected by the company. If recommendation leads to favouritism, it
will impair the morale of employees.

5. Factory Gates:
Certain workers present themselves at the factory gate every day for
employment. This method of recruitment is very popular in India for unskilled
or semi-skilled labour. The desirable candidates are selected by the first line
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supervisors. The major disadvantage of this system is that the person selected
may not be suitable for the vacancy.

6. Casual Callers:
Those personnel who casually come to the company for employment may also
be considered for the vacant post. It is most economical method of recruitment.
In the advanced countries, this method of recruitment is very popular.

7. Central Application File:

A file of past applicants who were not selected earlier may be maintained. In
order to keep the file alive, applications in the files must be checked at
periodical intervals.

8. Labour Unions:
In certain occupations like construction, hotels, maritime industry etc., (i.e.,
industries where there is instability of employment) all recruits usually come
from unions. It is advantageous from the management point of view because it
saves expenses of recruitment. However, in other industries, unions may be
asked to recommend candidates either as a goodwill gesture or as a courtesy
towards the union.

9. Labour Contractors:
This method of recruitment is still prevalent in India for hiring unskilled and
semi-skilled workers in brick klin industry. The contractors keep themselves in
touch with the labour and bring the workers at the places where they are
required. They get commission for the number of persons supplied by them.

10. Former Employees:

In case employees have been laid off or have left the factory at their own, they
may be taken back if they are interested in joining the concern (provided their
record is good).
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11. Other Sources:

Apart from these major sources of external recruitment, there are certain other
sources which are exploited by companies from time to time. These include
special lectures delivered by recruiter in different institutions, though apparently
these lectures do not pertain to recruitment directly.

Then there are video films which are sent to various concerns and institutions so
as to show the history and development of the company. These films present the
story of company to various audiences, thus creating interest in them.

Various firms organise trade shows which attract many prospective employees.
Many a time advertisements may be made for a special class of work force (say
married ladies) who worked prior to their marriage.

These ladies can also prove to be very good source of work force. Similarly
there is the labour market consisting of physically handicapped. Visits to other
companies also help in finding new sources of recruitment.

Merits of External Sources:

1. Availability of Suitable Persons:
Internal sources, sometimes, may not be able to supply suitable persons from
within. External sources do give a wide choice to the management. A large
number of applicants may be willing to join the organisation. They will also be
suitable as per the requirements of skill, training and education.

2. Brings New Ideas:

The selection of persons from outside sources will have the benefit of new
ideas. The persons having experience in other concerns will be able to suggest
new things and methods. This will keep the organisation in a competitive
position.

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3. Economical:
This method of recruitment can prove to be economical because new employees
are already trained and experienced and do not require much training for the
jobs.

Demerits of External Sources:

1. Demoralisation:
When new persons from outside join the organisation then present employees
feel demoralised because these positions should have gone to them. There can
be a heart burning among old employees. Some employees may even leave the
enterprise and go for better avenues in other concerns.

2. Lack of Co-Operation:
The old staff may not co-operate with the new employees because they feel that
their right has been snatched away by them. This problem will be acute
especially when persons for higher positions are recruited from outside.

3. Expensive:
The process of recruiting from outside is very expensive. It starts with inserting
costly advertisements in the media and then arranging written tests and
conducting interviews. In spite of all this if suitable persons are not available,
then the whole process will have to be repeated.

4. Problem of Maladjustment:
There may be a possibility that the new entrants have not been able to adjust in
the new environment. They may not temperamentally adjust with the new
persons. In such cases either the persons may leave themselves or management
may have to replace them. These things have adverse effect on the working of
the organisation.

Suitability of External Sources of Recruitment:

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External Sources of Recruitment are Suitable for The Following Reasons:

(i) The required qualities such as will, skill, talent, knowledge etc., are available
from external sources.

(ii) It can help in bringing new ideas, better techniques and improved methods
to the organisation.

(iii) The selection of candidates will be without preconceived notions or

reservations.

(iv) The cost of employees will be minimum because candidates selected in this
method will be placed in the minimum pay scale.

(v) The entry of new persons with varied experience and talent will help in
human resource mix.

(vi) The existing employees will also broaden their personality.

(vii) The entry of qualitative persons from outside will be in the long-run
interest of the organisation.2

STEPS IN SELECTION PROCESS:-

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1. Inviting applications:
The prospective candidates from within the organization or outside the
organization are called for applying for the post. Detailed job description and
job specification are provided in the advertisement for the job. It attracts a large
number of candidates from various areas.

2. Receiving applications:
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Detailed applications are collected from the candidates which provide the
necessary information about personal and professional details of a person.
These applications facilitate analysis and comparison of the candidates.

3. Scrutiny of applications:
As the limit of the period within which the company is supposed to receive
applications ends, the applications are sorted out. Incomplete applications get
rejected; applicants with un-matching job specifications are also rejected.

4. Written tests:
As the final list of candidates becomes ready after the scrutiny of applications,
the written test is conducted. This test is conducted for understanding the
technical knowledge, attitude and interest of the candidates. This process is
useful when the number of applicants is large.

Many times, a second chance is given to candidates to prove themselves by

conducting another written test.

5. Psychological tests:
These tests are conducted individually and they help for finding out the indi-
vidual quality and skill of a person. The types of psychological tests are aptitude
test, intelligence test, synthetic test and personality test

6. Personal interview:
Candidates proving themselves successful through tests are interviewed per-
sonally. The interviewers may be individual or a panel. It generally involves
officers from the top management.

The candidates are asked several questions about their experience on another
job, their family background, their interests, etc. They are supposed to describe
their expectations from the said job. Their strengths and weaknesses are

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identified and noted by the interviewers which help them to take the final
decision of selection.

7. Reference check:
Generally, at least two references are asked for by the company from the can-
didate. Reference check is a type of crosscheck for the information provided by
the candidate through their application form and during the interviews.

8. Medical examination:
Physical strength and fitness of a candidate is must before they takes up the job.
In-spite of good performance in tests and interviews, candidates can be rejected
on the basis of their ill health.

9. Final selection:
At this step, the candidate is given the appointment letter to join the
organization on a particular date. The appointment letter specifies the post, title,
salary and terms of employment. Generally, initial appointment is on probation
and after specific time period it becomes permanent.

10. Placement:
This is a final step. A suitable job is allocated to the appointed candidate so that
they can get the whole idea about the nature of the job. They can get adjusted to
the job and perform well in future with all capacities and strengths.3

FACTORS AFFECTING RECRUITMENT:-

There are a number of factors that affect recruitment. These are broadly
classified into two categories

1.Internal Factors:-

2. External Factors

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These are discussed one by one.

1. Internal Factors:
The internal factors also called endogenous factors are the factors within the
organisation that affect recruiting personnel in the organisation. Some of these
are mentioned here.

a. Size of the Organisation:

The size of an organisation affects the recruitment process. Experience suggests
that larger organisations find recruitment less problematic than organisations
with smaller in size.

b. Recruiting Policy:
The recruiting policy of the organisation i.e., recruiting from internal sources
(from own employees) and from external sources (from outside the
organisation) also affects recruitment process. Generally, recruiting through
internal sourcing is preferred, because own employees know the organisation
and they can well fit into the organisations culture.

c. Image of Organisation:
Image of organisation is another internal factor having its influence on the
recruitment process of the organisation. Good image of the organisation earned
by a number of overt and covert actions by management helps attract potential
and competent candidates. Managerial actions like good public relations,
rendering public services like building roads, public parks, hospitals and schools
help earn image or goodwill for the organisation. That is why blue chip compa-
nies attract large number of applications.

d. Image of Job:
Just as image of organisation affects recruitment so does the image of a job also.
Better remuneration and working conditions are considered the characteristics

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of good image of a job. Besides, promotion and career development policies of

organisation also attract potential candidates.

2. External Factors:
Like internal factors, there are some factors external to organisation which has
their influence on recruitment process.

Some of these are given below:

a. Demographic Factors:
As demographic factors are intimately related to human beings, i.e., employees,
these have profound influence on recruitment process. Demographic factors
include sex, age, literacy, economic status etc.

b. Labour Market:
Labour market conditions i.e., supply and demand of labour is of particular
importance in affecting recruitment process. For example, if the demand for a
specific skill is high relative to its supply, recruiting employees will involve
more efforts. On the contrary, if supply is more than demand for a particular
skill, recruitment will be relatively easier.

In this context, the observation made by 11PM in regard to labour market in

India is worth citing: The most striking feature in the Indian Labour market is
the apparent abundance of labour yet the right type of labour is not too easy
to find.

c. Unemployment Situation:
The rate unemployment is yet another external factor having its influence on the
recruitment process. When the unemployment rate in a given area is high, the
recruitment process tends to be simpler. The reason is not difficult to seek. The
number of applicants is expectedly very high which makes easier to attract the

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best qualified applicants. The reverse is also true. With a low rate of
unemployment, recruiting process tends to become difficult.

d. Labour Laws:
There are several labour laws and regulations passed by the Central and State
Governments that govern different types of employment. These cover working
conditions, compensation, retirement benefits, and safety and health of
employees in industrial undertakings.

Child Labour (Prohibition and Regulation) Act, 1986, for example, prohibits
employment of children in certain employments. Similarly, several other acts
such as Employment Exchange (Compulsory Notification of Vacancies) Act,
1959, the Apprentices Act, 1961; die Factory Act, 1948 and the Mines Act,
1952 deal with recruitment.

e. Legal Considerations:
Another external factor is legal considerations with regard to employment.
Reservation of jobs for the scheduled castes, scheduled tribes, and other
backward classes (OBCs) is the popular example of such legal consideration.
The Supreme Court of India has given its verdict in favour of 50 per cent of jobs
and seats. This is so in case of admissions in the educational institutions also.4

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RECRUITMENT PROCESS:-

The recruitment process begins when you know you need someone new in the
Department, either because an existing staff member has left, or because there is
new work to be done. It doesnt finish until after the appointment has been
made.

The main stages are identified in the below flow chart 5

Identify Vacancy

Prepare Job Description and person

Specification

Advertise

Managing the Response

Short-listing

References

Arrange Interviews

Conduct The Interview

Decision Making

Convey The Decision

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Appointment Action

CASE STUDY:-

Vindhya Steel Limited is the second largest steel mat1ufactvrer in private sector
in India and the best company in Asia in terms of technology, with the
production of 1.2 million tonnes (MTPA) per annum in March 1997. It has 1700
employees in the executive cadre. The company had earlier hired a number of
top executives one by one from the public sector unit, in a very short span of
time for the post of Director (Operations), but they were considered as misfit by
the company and shown their way.

In their effort to bring a new person as Director (Operations), the Managing

Director of the company interacted with one of the executive directors of a PSU
(Cochin Steels Limited CSL). Mr. Kalyan Mishra, with whom he had worked
earlier, and asked him to join, with complete and independent responsibility for
the Allahabad plant. Mr. Mishra was invited to look at the plant. He took a
round of the whole plant with the help of the HR chief Col. Kalra and finally
confirmed his willingness to loin, without interacting with any senior colleagues
of the plant.

Mr. Mishra was a highly competent man with technical skills, who started his
career as management trainee in CSL and rose to the position of Executive
Director in a span of 30 years. Being a production man, he was familiar with the
work culture of steel industry and knew how to get things done by a worker on
the shop floor, even sometimes going to the extent of abusing the workers.
Therefore, he proved his competency in due course of time.

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Mr. Mishra took charge as Director (Operations) in April 1997 and reported to
the managing director in corporate office in Delhi. He worked devotedly and
planned his activities for three years in collaboration with all the departmental
heads and set the target of production of 2.0 MTPA for the current year. Mr.
Mishra in order to achieve this, went to the shop floor everyday to supervise
how things were being done. Whenever and wherever he found slackness, he
even scolded and abused the workers around. At times, even the superiors were
treated in the same manner. He gave instructions to the workers even bypassing
the hierarchy. He also ensured that whenever there was any breakdown in
production, the head of department (HOD) needed to be present to hasten the
process of repair and even instructed the shift supervisors in general to
immediately inform him in case of any shutdown. With the result, he always
reached the spot before the HODs. Consequently, all these efforts led to an
increase in production by 30 per cent in just 6 months.

Besides the production activities, Mr. Mishra facilitated the development in and
around the plant for environmental management and helped the company bag
150 14001 during this period. He also paved way for the development of
township, entertainment club and hospital with all the facilities for the
employees and their families. He even started a newsletter to highlight the HRD
initiatives taken by the company, and established the training centre and library
for the development of workers.

During this period Mr. Mishra felt constrained in operating because whenever
he required fund for maintenance and other production requirements, he
instructed the Director (Finance) for getting it, but DF never complied with his
orders and always went to MD for approval of funds. Similarly Director
(Marketing) also did not pay heed to the instructions of Mr. Mishra as all three
were reporting to MD directly.

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HR chief of the plant Col. Kalra was intending to be the Director (Operations)
as he was very close to the promoters and was virtually ruling over the whole
system before Mr. Mishra joined the company. Mr. Mishra conducted some of
the open house sessions with the technical employees to understand their
grievance; he found that there was high dissatisfaction among the employees
against HR function of the plant and to be specific, against autocratic attitude of
Col. Kalra. Mr. Mishra tried to interfere in HR function to streamline the
activities, which Col. Kalra did not like, and he started conspiracy against Mr.
Mishra. As a result, the promoters instructed MD to change Col. Kalras
reporting relationship from Mr. Mishra to MD himself, which gave an
indication to the employees that Col. Kalra is powerful enough to change his
reporting. Though the employees did not like Col. Kalra, they also did not like
the approach and behavior of Mr. Mishra too. This gave an opportunity to Col.
Kalra to influence the HODs to complain against Mr. Mishra to promoters. MD
also had a tiff with Mr. Mishra on issues of manpower requirement and
administration. Taking this advantage Col. Kalra succeeded in changing his
reporting from Mr. Mishra to MD.

One fine morning, Mr. Mishra received a letter from promoters in which it was
stated that he was being promoted as Advisor to MD in corporate office. After a
week-long thought,
Mr. Mishra felt that being a production man for his whole life, it was impossible
for him to be in corporate office without having any direct interaction with the
plant. He decided to quit and joined another company on a higher position and
higher pay package than his present job.

QUESTIONS:-

1.Was there any mistake in the recruitment and selection process

of Mr. Mishra?

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Ans: Yes, there is a mistake in the recruitment and selection of Mr. Mishra
because;

He was selected by the reference of managing director of company.

As he was selected by the reference so he has not followed the procedure

of recruitment and selection.

He try to interfere in work of others which other people does not like.

He use harsh words with employees and he abused employees and

supervisors as well.

There is a dispute among workers and HR chief of the company when

Mr. Mishra joined the company.

2. Had Kalra discharged his responsibilities appropriately?

Ans: No, Mr Kalra did not perform his responsibilities appropriately because
employees are dissatisfied with the HR function of the company performed by
Mr.Kalra.

The attitude of Mr.Kalra was rude and harsh with the employees.
He just wanted to be promoted at a higher position.
He has no worries about the performance of the future of the company.

3. Who benefited from Mr. Mishras quitting?

Ans: Mr. kalra was benefited from the quitting of Mr. Mishra because;

He was the HR chief of the company.

Mr.Kalra was intending to be the Director as he was very close to the

promoters and was virtually ruling over the whole system before Mr.
Mishra joined the company.

4. Was Mr.Mishras departure in the better interest

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Of the company?

Ans: Yes, Mr.Mishras departure was in the better interest of the

company because his behavior was not good with employees and even
with supervisors as well. He used to abuse workers and supervisors when
there is any breakdown in the production. People did not like the
approach and behavior of Mr. Mishra. He also interfere in the work of
others which other did not like. Workers and supervisors make groups to
report against Mr. Mishra. So his departure is better for the company.

5. What role should M.D play in this organization?

Ans: Roles of Managing Director;

The Managing Director leads the company and develops the corporate
culture for the organization.

The Managing Director needs to manage every thing.

This includes the staff , the customers, the budget, the company assets
and all other company resources to make the best use of them and
increase the company profitability.

The role of Managing Director is to design develop and implement the

strategic plan for the company .

The Managing Director is responsible for both the day to day running of
the company and developing business plans for the long term future of
the company.

6. What was wrong in management of this company?

Ans: There was mismanagement in the company because;

No one is performing his duties and responsibilities properly.

Everyone was wanted to be promoted to the higher post.

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There was no coordination between them.

The Managing Director have no direct control on the organization.

ANALYSIS:-
The information provided in this project is designed to help us find the
right people in the first instance then to lead and manage them in a way
that maximises their levels of engagement. This project indicates the key
importance of recruitment and selection in successful people management
and leadership. An awareness of issues and concepts within this area is an
important tool for all those involved with leading, managing and
developing people even if they are not human resource managers per se.
A recognition of the importance of this aspect of people management is
not new, and success in this field has often been linked with the
avoidance of critical failure factors including undesirable levels of staff
turnover and claims of discrimination from unsuccessful job applicants.
In addition, many organisations may increasingly wish to identify
qualities of flexibility and creative thinking among potential employees,
although this may not always be the case; many contemporary jobs do not
require such competencies on the part of jobholders. It is also the case
that organisations should be preoccupied with the question of validity of
selection methods, ideally combining methods which are strong on
practicality and cost, such as interviewing, with other measures which are
more effective predictors of performance. It is maintained, finally, that a
managing diversity approach, welcoming individual difference, may
enhance organisational performance and create a climate in which
thinking performers can emerge and flourish.

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BIBLIOGRAPHY:-

BOOKS:-

Human Resource Management,writer-Biswajeet Pattanayak,ed-4th.

Human Resource Management, writer-P.Jyothi & D.N.
Venkatesh,ed-2nd.

WEBSITE:-

http://www.yourarticlelibrary.com/

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