Chapter 4 (Recruitment and Selection)

Recruitment

Recruitment means generating a pool of capable people to apply for employment to an organization.
It involves identifying the sources of manpower and stimulating them to apply for the jobs in the
organizations.

Sources of recruitment: There are two broad sources of recruitment internal and external. A brief
description of each source follows:
Internal Sources of Recruitment: Sources of recruitment are from within the organization.
1. Employee referrals: Employee referral is recruiting new people based on the reference of current
employee. Under this method, a candidate is appointed on the recommendation of some currently
working employees
2. Promotion and Transfers:
- Promotion means to give a higher position, status, salary and responsibility to the employee.
- 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 promoting or transferring a suitable candidate from the same
organization.
3. Job posting: Job posting is an open invitation to all employees in an organization to apply for
the vacant position. It provides an equal opportunity to all employees currently working in the
organization.
4. Rehiring: Retired and retrenched employees may also be recruited once again in case of shortage of
qualified personnel or increase in load of work.
5. Succession planning: Succession planning is the process of identifying internal candidates for
leadership/senior manager or other key roles within a company.
External Sources of Recruitment: Sources of recruitment are from outside the organization.
1. Advertisement: The ads in newspapers, professional journals, give a comprehensive detail about
the organization, type, and nature of job position, skills required, qualification and experience
expected, etc.
2. Employee exchange: The employment exchange is the office run by the government wherein the
details about the job seekers such as name, qualification, experience, etc. is stored and given to the
employers who are searching for men for their organizations.
3. Private Employment agencies: A private employment agency is an organization securing or trying
to secure
- Employment for persons seeking employment or
- Employees for employers.
4. Head Hunter: A headhunter is a corporation or individual that provides employment recruiting
services. A headhunter is hired by firms to find talent, and to locate individuals who meet specific job
requirements, such as an executive with 15 years experience in a certain field.
5. Professional Organization: Professional organizations maintain complete bio-data of their members
and provide the same to various organizations on requisition.
6. Unsolicited applicants: Those personnel who casually come to the organization for employment or
s end their requests for appointment against a vacancy, may also be considered for the vacant post.
7. Campus recruitment: Various educational institutions offer opportunities for recruiting
fresh candidates. They provide facilities for campus interviews and placements. This source is known
as Campus Recruitment.
8. Sub-contracting: Subcontracting refers to the process of entering a contractual agreement with an
outside person or company to complete a project.
9. Temporary help service: Engaged in supplying workers for limited periods of time to supplement the
workforce of the client. The individuals provided are employees of the temporary help service
establishment.
10. The external sources of recruitment is Retired military agencies.
Major Constraints Faced in Recruitment / Factors affecting Recruitment:
1. Attractiveness of the job:
If the job is boring, hazardous, tension ridden and lacking in opportunities for advancement, very few
persons may be available for such jobs. On the other hand, if it carries good salaries, promotional
avenues, or good working conditions, there may be many persons available for such jobs.
2. Image of the organization:
Organizations having good image can attract potential and competent candidates to a large extent. A
person may not be interested to apply for a job in an enterprise whose goodwill is not good. Good public
relation, rendering public services, etc. help to enhance the image and reputation of the organization.
3. Government influence:
Government legislation may require reserving certain percentage of posts for weaker sections of society
or for persons belonging to specified castes. Legislation may require the organization to recruit new
persons only from the lists supplied by government employment exchange. Such legislations restrict the
choice of management in recruiting new persons.
4. Organization policies:
Internal policies of the organization may also act as a constraint on recruitment of new persons. A policy
of filling up higher positions from outside can discourage competent persons to apply in such an
organization because of lack of promotion avenues.
5. Recruitment cost: Recruitment incur cost to employer.
In case of internal recruitment, the right person may be promoted or transferred only if proper confidential
reports of all employees are maintained. This involves a lot of money.

External recruitment is also very costly. This is because advertisements in the media, arranging written
tests, conducting interviews, and medical examination etc., has to be conducted.

Advantages and Disadvantages of Internal Sources of Recruitment

Advantages:

1. Suitable: Internal sources of recruitment are very suitable for an organization because of the
organization knows the ability and skills of the candidates since they are insiders. Similarly,
employees also know about the working conditions and job requirements of the vacancies.
2. Reliable: 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. So it is very reliable.
3. Motivational: It motivates the employees to work hard in order to get higher jobs in the same
organization.
4. Economical: The cost of recruiting internal employees is minimal. No expenses are incurred on
advertising and inducing training as the existing employees are fully aware of the organization, the
work, the employee, the rules and regulations, operating procedures and policies of the organization.
It is also time saving.
5. Better utilization of internal talent: For example, some employees may be so talented that they
deserve, promotion, or some may do better on transfer to other jobs.
6. Improves Morale: When an employee from inside the organization is given the higher post, it helps
in increasing the morale of all employees,
7. Promotes Loyalty: It promotes loyalty among the employees as they feel secured on account of
chances of advancement.
8. It develops a sense of responsibility.
9. It encourages self-development among the employees as they can look forward to occupy higher
posts.
10. The chances of hasty decisions are completely eliminated as the existing employees are well tried
and can be relied upon.
Disadvantages:

1. Inefficiency: If promotion based on length of service rather than merit, then the persons filling the
vacant posts may not be really capable.
2. Inbreeding: It discourages entry of fresh talented people, available outside an organization. Existing
employees, even if promoted or transferred, may continue to work and behave in the same habitual
ways, without any innovation and dynamism.
3. Bone of Contention: Internal recruitment may lead to conflict and infighting among those employees
who desire for limited higher level positions in an organization.
4. Limited Choice: Internal recruitment restricts the options and freedom for the organization in
choosing the most suitable and qualified candidates for the vacancies. The organization have to
select candidates from a limited pools. It may have to compromise on quality and settle for less
qualified candidates.
5. There may be bias or partiality in promoting or transferring persons from within the organization.
6. The right person may be promoted or transferred only if proper confidential reports of all employees
are maintained. This involves a lot of time, money and energy.
7. Those who are not promoted will be unhappy and their efficiency may decline.

Advantages and Disadvantages of External Sources of Recruitment

Advantages:
1. Injection of fresh blood: People with special skills and knowledge could be hired. New blood brings
innovative ideas, fresh thinking and dynamism into the organization.
2. Wide choice: A large number of applicants may be willing to join the organization. The organization
has the freedom to select candidates from a large pool. Persons with requisite qualifications could be
picked up.
3. Motivation 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.
4. Long term benefit:
- Talented people could join the ranks,
- New ideas could find meaningful expression,
- A competitive atmosphere would compel people to give of their best and earn rewards,
- There are less chances of bias or partiality,
- There is no need to maintain confidential records, etc.

Disadvantages

1. Time consuming: It is very time consuming. This is because the selection process is very lengthy.
It takes time to advertise, screen, test and select suitable employees. Where suitable ones are not
available, the process has to be repeated.
2. Expensive: It is very costly. This is because advertisements in the media, arranging written tests,
conducting interviews, and medical examination etc., has to be conducted.
3. Demotivating: The feeling of the existing employees that their services have not been recognized by
the organization, forces them to work with less enthusiasm and motivation.
4. Uncertainty: There is no guarantee that ultimately the organization will be able to hire suitable
candidates. It may hire someone who does not fit and who may not be able to adjust in the new
setup.
5. 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.
6. Demoralization: When new persons from outside join the organization then present employees feel
demoralized because these positions should have gone to them. Some employees may even leave
the enterprise and go for better job.
 Selection

Selection is a process of choosing the right candidate from a pool of applicants through various
interviews and test.
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.
Objective of selection

- To find suitable candidates that meet the job requirements

- To filter out unsuitable candidates who are not fit for job
Steps in the selection process
Selection procedures vary from organization to organization.
1. Reception of applicant: The receptionist in HR department provides information about the
organization and current job openings and assist with completion of application forms.
2. Preliminary interview: The purpose of the preliminary interview is to screen out those who are
obviously unsuitable or unqualified.
3. Filling Application Blank: Almost all organizations require job seekers to fill up an application
blank. Application blank serves as a personal record of the candidate.
The following data is generally called on from the applicant through application blank:
- Biographical Information such as name, fathers name, age, sex, nationality, height, marital
status, identification mark and number of dependents.
- Educational Information
- Work experience
- Salary
- Extra-Curricular Information
- References
4. Employment Tests: Employment tests try to assess the match between the applicant and the job
requirements. Employment tests should be job related, accurate and objective predictors of particular
skills that are needed on the job. Some common types of employment tests are-
- Achievement test
- Motor and physical abilities test
- Personality test
- Intelligence test
- Aptitude test
- Interest test
5. Selection Interview:
Interview is a selection technique that enables the employer to view and assess the total personality
of the candidate, which is not included on the application blank.
- It gives insights about the applicants motivation, personality and overall attitude.
- Questions asked must be job-related.
6. Background and reference check: The applicant is asked to mention in his application form, the name
and addresses of two person who know him well. These may be his previous employers, heads of
educational institutions or public figures. In this step, employer check the candidates background and
reference and seek opinion from his previous employers or instructors.
7. Preliminary screening by the HR department: Some initial screening is done by HR department to
eliminate those applicants who do not meet the basic, essential criteria.
8. Final selection by the concerned department: If a candidate successfully overcomes all the tests
given above, he would be declared selected. An appointment letter will be given to him mentioning the
terms of appointment, pay scale, and post on which selected etc.
9. Medical examination - The medical examination is usually taken by a company doctor or by a doctor
approved and paid for by the organization. The aim of the pre-employment medical is to
- Obtain information about the medical condition of the applicant and
- Ensure that the candidate is physically fit and capable to exercise his responsibilities.
10. Placement on the job This step involves introducing the new employee to the organization, and
their job. It can involve various approaches such as orientation and training.

Types of Tests
1. Cognitive abilities test:
Intelligence test:
- Intelligence tests are designed to measure an applicant's intelligence or 'IQ' (intelligence quotient).
- These tests measure logical reasoning ability, data interpretation, comprehension skills, vocabulary,
verbal fluency, numerical ability, memory and space.
- Such tests are good indicators of a candidate's ability to learn quickly those jobs that involve
conceptual thinking and problem solving.
2. Specific cognitive abilities test:
Aptitude tests:
- Aptitude tests are tests of special abilities that are required in specific jobs.
- Examples: Tests of mechanical and clerical abilities (e.g., speed of typing or ability to use a particular
computer program), linguistic abilities, manipulative capacity etc.
3. Achievement test:
- Achievement tests measure a persons current knowledge-how much he has "achieved" something,
acquired certain information, or mastered certain skills.
- It is common use is to determine a person's academic level such as reading comprehension, writing
or oral expression and mathematical computation etc.
4. Motor and Physical abilities test
- Test of motor abilities motor abilities, such as finger dexterity, manual dexterity, hand and eye co-
ordination,
- Test of physical abilities strength (such as lifting weights), dynamic strength (like pull-ups), body
coordination (as in jumping rope), and stamina
5. Personality test:
- Personality tests are designed to measure basic aspects of an applicant's personality, such as level
of introversion/extroversion, emotional stability and motivation.
- This test judges the ability to work in a group, interpersonal skills, ability to understand and handle
conflicts and judge motivation levels.
6. Interest Test: It is used to discover a candidate's activity preferences (likes and dislikes) The purposes
of this test is to find out
- Whether a candidate is interested or not in the job for which he is a candidate and
- In which area of the job range the candidate is interested.

Kumkum Sultana
Department of Management
26th Batch
Session 2012-13, CU