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The recruitment industry has five main types of agencies: employment agencies,
recruitment websites and job search engines, "headhunters" for executive and
professional recruitment, niche agencies which specialize in a particular area of staffing
and in-house recruitment. The stages in recruitment include sourcing candidates by
advertising or other methods, and screening and selecting potential candidates using
tests or interviews.
Meaning of Recruitment :
Recruitment is an important part of an organization’s human
resource planning and their competitive strength. Competent
human resources at the right positions in the organisation
are a vital resource and can be a core competency or a
strategic advantage for it.
Attract and encourage more and more candidates to apply in the organisation.
Create a talent pool of candidates to enable the selection of best candidates for the
organisation.
Determine present and future requirements of the organization in conjunction with its
personnel planning and job analysis activities.
Recruitment is the process which links the employers with the employees.
Increase the pool of job candidates at minimum cost Help increase the success rate of
selection process by decreasing number of visibly under qualified or overqualified job applicants.
Help reduce the probability that job applicants once recruited and selected will leave the
organization only after a short period of time.
Meet the organizations legal and social obligations regarding the composition of its workforce.
Begin identifying and preparing potential job applicants who will be appropriate candidates.
Increase organization and individual effectiveness of various recruiting techniques and
sources for all types of job applicants.
Recruitment Process
The recruitment and selection is the major function of the human resource department and
recruitment process is the first step towards creating the competitive strength and the
recruitment strategic advantage for the organisations. Recruitment process involves a
systematic procedure from sourcing the candidates to arranging and conducting the interviews
and requires many resources and time. A general recruitment process is as follows:
• Locating and developing the sources of required number and type of employees
(Advertising etc).
4. Short-listing
5. Arrange interviews
The recruitment process is immediately followed by the selection process i.e. the
final interviews and the decision making, conveying the decision and the
appointment formalities.
Sources of Recruitment:
Every organisation has the option of choosing the
candidates for its recruitment processes from two kinds of
sources: internal and external sources. The sources within
the organisation itself (like transfer of employees from
one department to other, promotions) to fill a position are
known as the internal sources of recruitment. Recruitment
candidates from all the other sources (like outsourcing
agencies etc.) are known as the external sources of
recruitment.
1. TRANSFERS
The employees are transferred from one department to another according to their efficiency and
experience.
2. PROMOTIONS
The employees are promoted from one department to another with more benefits and greater
responsibility based on efficiency and experience.
3. Others are Upgrading and Demotion of present employees according to their performance.
4. Retired and Retrenched employees may also be recruited once again in case of shortage of
qualified personnel or increase in load of work. Recruitment such people save time and costs of
the organisations as the people are already aware of the organisational culture and the policies
and procedures.
5. The dependents and relatives of Deceased employees and Disabled employees are also
done by many companies so that the members of the family do not become dependent on the
mercy of others.
1. PRESS ADVERTISEMENTS
Advertisements of the vacancy in newspapers and journals
are a widely used source of recruitment. The main advantage
of this method is that it has a wide reach.
2. EDUCATIONAL INSTITUTES
Various management institutes, engineering colleges,
medical Colleges etc. are a good source of recruiting well
qualified executives, engineers, medical staff etc. They
provide facilities for campus interviews and placements.
This source is known as Campus Recruitment.
3. PLACEMENT AGENCIES
Several private consultancy firms perform recruitment
functions on behalf of client companies by charging a fee.
These
4. UNSOLICITED APPLICANTS
Many job seekers visit the office of well-known companies
on their own. Such callers are considered nuisance to the
daily work routine of the enterprise. But can help in
creating the talent pool or the database of the probable
candidates for the organisation.
The recruitment function of the organisations is affected and governed by a mix of various
internal and external forces. The internal forces or factors are the factors that can be controlled
by the organisation. And the external factors are those factors which cannot be controlled by
the organisation. The internal and external forces affecting recruitment function of an
organisation are:
External Factors
• Supply and demand
• Labour market
• Image /Goodwill
• Political-social-Legal Environment
• Unemployment Rate
• Competitors
The external factors which affecting recruitment are the forces which cannot be controlled
by the organisation. The major external forces are:
1. SUPPLY AND DEMAND
The availability of manpower both within and outside the organization is an important
determinant in the recruitment process. If the company has a demand for more
professionals and there is limited supply in the market for the professionals demanded by
the company, then the company will have to depend upon internal sources by providing
them special training and development programs.
2. labour market-Employment conditions in the community where the organization is located
will influence the recruiting efforts of the organization. If there is surplus of manpower at the
time of recruitment, even informal attempts at the time of recruiting like notice boards
display of the requisition or announcement in the meeting etc will attract more than enough
applicants.
3. IMAGE / GOODWILL
Image of the employer can work as a potential constraint for recruitment. An organization
with positive image and goodwill as an employer finds it easier to attract and retain
employees than an organization with negative image. Image of a company is based on what
organization does and affected by industry. For example finance was taken up by fresher
MBA’s when many finance companies were coming up.
4. POLITICAL-SOCIAL- LEGAL ENVIRONMENT
Various government regulations prohibiting discrimination in hiring and employment have direct
impact on recruitment practices. For example, Government of India has introduced legislation for
reservation in employment for scheduled castes, scheduled tribes, physically handicapped etc.
Also, trade unions play important role in recruitment. This restricts management freedom to
select those individuals who it believes would be the best performers. If the candidate can’t meet
criteria stipulated by the union but union regulations can restrict recruitment sources.
Internal factors
• Recruitment policy
• Human resource Planning
• Size of the firm
• Cost of recruitment
• Growth and expansion
The internal factors or forces which affecting recruitment and can be controlled by the
organisation are
1. RECRUITMENT POLICY
The recruitment policy of an organisation specifies the objectives of recruitment and provides a
framework for implementation of recruitment programme. It may involve organizational system
to be developed for implementing recruitment programmes and procedures by filling up vacancies
with best qualified people.
FACTORS AFFECTING RECRUITMENT POLICY
• Organizational objectives
• Personnel policies of the organization and its competitors.
• Government policies on reservations.
• Preferred sources of recruitment.
• Need of the organization.
• Recruitment costs and financial implications.
2. Human
Effective human resource planning helps in determining the gaps present in the existing
manpower of the organization. It also helps in determining the number of employees to
be recruited and what qualification they must possess.
3. Size of the firm- The size of the firm is an important factor in recruitment process. If
the organization is planning to increase its operations and expand its business, it will
think of hiring more personnel, which will handle its operations.
4. COST
Recruitment incur cost to the employer, therefore, organizations try to employ that
source of recruitment which will bear a lower cost of recruitment to the organization for
each candidate.
• To ensure that every applicant and employee is treated equally with dignity and respect.
• Unbiased policy.
• Abides by relevant public policy and legislation on hiring and employment relationship.
• Organizational objectives
• In India, the HR processes are being outsourced from more than a decade now. A
company may draw required personnel from outsourcing firms. The outsourcing
firms help the organisation by the initial screening of the candidates according to the
needs of the organisation and creating a suitable pool of talent for the final selection
by the organisation. Outsourcing firms develop their human resource pool by
employing people for them and make available personnel to various companies as
per their needs. In turn, the outsourcing firms or the intermediaries charge the
organisations for their services.
• POACHING/RAIDING
“Buying talent” (rather than developing it) is the latest mantra being followed by the
organisations today. Poaching means employing a competent and experienced person
already working with another reputed company in the same or different industry; the
organisation might be a competitor in the industry. A company can attract talent from
another firm by offering attractive pay packages and other terms and conditions, better
than the current employer of the candidate. But it is seen as an unethical practice and
not openly talked about. Indian software and the retail sector are the sectors facing the
most severe brunt of poaching today. It has become a challenge for human resource
managers to face and tackle poaching, as it weakens the competitive strength of the
firm.
• E-RECRUITMENT
Many big organizations use Internet as a source of recruitment. E-recruitment is the
use of technology to assist the recruitment process. They advertise job vacancies through
worldwide web. The job seekers send their applications or curriculum vitae i.e. CV
through e mail using the Internet. Alternatively job seekers place their CV’s in worldwide
web, which can be drawn by prospective employees depending upon their requirements.
o Low cost.
o No intermediaries
Both recruitment and selection are the two phases of the employment process. The differences
between the two are:
1. The recruitment is the process of searching the candidates for employment and stimulating
them to apply for jobs in the organisation WHEREAS selection involves the series of steps by
which the candidates are screened for choosing the most suitable persons for vacant posts.
2. The basic purpose of recruitments is to create a talent pool of candidates to enable the
selection of best candidates for the organisation, by attracting more and more employees to apply
in the organisation WHEREAS the basic purpose of selection process is to choose the right
candidate to fill the various positions in the organisation.
3. Recruitment is a positive process i.e. encouraging more and more employees to apply
WHEREAS selection is a negative process as it involves rejection of the unsuitable candidates.
4. Recruitment is concerned with tapping the sources of human resources WHEREAS selection is
concerned with selecting the most suitable candidate through various interviews and tests.
5. There is no contract of recruitment established in recruitment WHEREAS selection results in a
contract of service between the employer and the selected employee.
Selection
The goal of the selection process is to find the best available person for the job, a person with the
knowledge, skills, abilities, and motivation to successfully fill the position. Selection
Process
The selection process involves evaluating and hiring qualified applicants for open
positions. A specific methodology is used for collecting information about an applicant
in order to determine if that individual should be hired. The following summarizes
several selection methods available to employers.
Process of selection
3. employment tests
4. comprehensive interview
5. background investigation
7. medical/physical exam
Interviewing.
Interviewing is one aspect of the total selection process that aims to uncover as
much relevant information and evidence as possible through personal interaction with
the applicant. More specifically, it provides the opportunity for the mutual exchange of
information. Similar to reference checking, it can be a valuable method of obtaining
first-hand information and evidence concerning an applicant’s qualifications and
suitability for the position. Simultaneously, it enables the applicant to obtain further
information about the position and the company to enable him/her to make an
informed decision as to whether or not there is a proper fit.
There are many group discussion skills that need to be adhered too.
Firstly the main objective is to participate well and moderate in case
of a confusion. This easily gives more objective to the interviewer.
Be polite and maintain a composure. Easily getting into a heated
argument is not the objective and you may be giving many negative
signals through your body language. Aggressiveness can be modulated in
the form of assertiveness during voicing out an issue.
The amount of time required for orientation into the workplace will
differ from place to place. Some places orientation will take several
days, at others it may take less than an hour
Definition: Promotion
The advancement of an employee from one position to another position that has a higher
salary range maximum is called a promotion. Promotion can also result in a higher level title
and higher level job responsibilities. Decision making authority tends to rise as well. These
are examples of promotions: HR Assistant to Hr Generalist; HR Generalist to HR Manager;
HR Manager to HR Director; HR Director to HR Vice President.
Definitions of promotion:
• PIGORS & MEYERS: Define promotion as "the advancement of an employee to a better job
- better in terms of greater respect of pay and salary. Better houses of work or better
location or better working conditions-also may characterize the better job to which an
employee seeks promotions, but if the job does not involve greater skill or responsibilities
and higher pay, it should not be considered a promotion." This definition takes into
consideration only a Vertical promotion.
• KOONTZ O`DONNEL observed that promotion is "a change within the organization to a
higher position with greater responsibilities and used for more advanced skills than in
previous position. It usually involves higher status and increase in pay." Promotions can be
from within or can be from outside depending upon the need of the organization as both
have certain advantages and disadvantages. So also are the arguments for and against the
concept of promotion on seniority or merit. A wise policy which is followed by many
organizations is a proper blending of both. Opposite to promotion is demotion. It is more as
a punishment. In certain cases it can be on cost reduction considerations.
Transfers
• PIGORS & MEYERS Consider transfer as "the movement of an employee from one job to
another on the same occupational level and at about the same level of wages or salary" No
appreciable change in task or responsibility is expected, SCOTT and others define transfer as
“the movement of an employee from one job to another. It may involve a promotion,
demotion or no change in job status other than moving from one job to another."
Demotion
A demotion is defined as a reassignment from one position to another position at a lower pay grade
or salary range. A demotion can also be defined as a reassignment of duties to a lower level of pay
or responsibility even if there is not a change in the employee’s job title or position. Involuntary
demotions may occur if work is eliminated, abolished or reorganized, as a disciplinary action or if a
classified employee is unable to perform the work satisfactorily.
Job analysis Job analysis is a systematic approach to defining the job role, description,
requirements, responsibilities, evaluation, etc. It helps in finding out required level of
education, skills, knowledge, training, etc for the job position. It also depicts the job
worth i.e. measurable effectiveness of the job and contribution of job to the
organization. Thus, it effectively contributes to setting up the compensation package for
the job position.
Job Position
Job position refers to the designation of the job and employee in the organization. Job position
forms an important part of the compensation strategy as it determines the level of the job in the
organization. For example management level employees receive greater pay scale than non-
managerial employees. The non-monetary benefits offered to two different levels in the
organization also vary.
Job Description
Job description refers the requirements an organization looks for a particular job position. It
states the key skill requirements, the level of experience needed, level of education required, etc.
It also describes the roles and responsibilities attached with the job position. The roles and
responsibilities are key determinant factor in estimating the level of experience, education, skill,
etc required for the job. It also helps in benchmarking the performance standards.
Job worth
Job Worth refers to estimating the job worthiness i.e. how much the job contributes to the
organization. It is also known as job evaluation. Job description is used to analyze the job
worthiness. It is also known as job evaluation. Roles and responsibilities helps in determining the
outcome from the job profile. Once it is determined that how much the job is worth, it becomes
easy to define the compensation strategy for the position.
Therefore, job analysis forms an integral part in the formulation of compensation strategy of an
organization. Organizations should conduct the job analysis in a systematic at regular intervals.
Job analysis can be used for setting up the compensation packages, for reviewing employees’
performance with the standard level of performance, determining the training needs for
employees who are lacking certain skills.