INTRODUCTIONThe human resources are the most important assets of an organization.The success or failure of an organization is largely dependent on the caliberof the people working therein. Without positive and creative contributionsfrom people, organizations cannot progress and prosper. In order to achievethe goals or the activities of an organization, therefore, they need to recruitpeople with requisite skills, qualifications and experience. While doing so,they have to keep the present as well as the future requirements of theorganization in mind.Recruitment is distinct from Employment and Selection. Once therequired number and kind of human resources are determined, themanagement has to find the places where the required human resourcesare/will be available and also find the means of attracting them towards theorganization before selecting suitable candidates for jobs. All this process isgenerally known as recruitment. Some people use the term “Recruitment”for employment. These two are not one and the same. Recruitment is onlyone of the steps in the entire employment process. Some others use the termrecruitment for selection. These are not the same either. Technicallyspeaking, the function of recruitment precedes the selection function and itincludes only finding, developing the sources of prospective employees andattracting them to apply for jobs in an organization, whereas the selection is

the process of finding out the most suitable candidate to the job out of thecandidates attracted (i.e., recruited).Formal definition of recruitment wouldgive clear cut idea about the function of recruitment.DEFINITIONSRecruitment is defined as, “a process to discover the sources ofmanpower to meet the requirements of the staffing schedule and to employeffective measures for attracting that manpower in adequate numbers tofacilitate effective selection of an efficient workforce.” Edwin B. Flippodefined recruitment as “the process of searching for prospective employeesand stimulating them to apply for jobs in the organization.” Recruitment is a‘linking function’-joining together those with jobs to fill and those seekingjobs. It is a ‘joining process’ in that it tries to bring together job seekers andemployer with a view to encourage the former to apply for a job with thelatter.In order to attract people for the jobs, the organization mustcommunicate the position in such a way that job seekers respond. To be costeffective, the recruitment process should attract qualified applicants andprovide enough information for unqualified persons to self-select themselvesout.Thus, the recruitment process begins when new recruits are soughtand ends when their applications are submitted. The result is a pool ofapplicants from which new employees are selected.PURPOSES AND IMPORTANCE

The general purpose of recruitment is to provide a pool of potentiallyqualified job candidates. Specifically, the purposes are to:Determine the present and future requirements of the organization inconjunction with its personnel-planning and job-analysis activities.Increase the pool of job candidates at minimum cost.Help increase the success rate of the selection process by reducing thenumber of visibly, under qualified or overqualified job applicants.Help reduce the probability that job applicants, once recruited andselected, will leave the organization only after a short period of time.Begin identifying and preparing potential job applicants who will beappropriate candidates.Induct outsiders with a new perspective to lead the company.Infuse fresh blood at all levels of the organization.Develop an organizational culture that attracts competent people tothe company.Search or head hunt/head pouch people whose skills fit the company’svalues.Devise methodologies for assessing psychological traits.Search for talent globally and not just within the company.Design entry pay that competes on quality but not on quantum.Anticipate and find people for positions that do not exist yet.Increase organizational and individual effectiveness in the short termand long term.Evaluate the effectiveness of various recruiting techniques andsources for all types of job applicants.Recruitment represents the first contact that a company makes withpotential employees. It is through recruitment that many individuals will

come to know a company, and eventually decide whether they wish to workfor it. A well-planned and well-managed recruiting effort will result in highqualityapplicants, whereas, a haphazard and piecemeal effort will result inmediocre ones. High-quality employees cannot be selected when bettercandidates do not know of job openings, are not interested in working for thecompany and do not apply. The recruitment process should inform qualifiedindividuals about employment opportunities, create a positive image of thecompany, provide enough information about the jobs so that applicants canmake comparisons with their qualifications and interests, and generateenthusiasm among the best candidates so that they will apply for the vacantpositions.The negative consequences of a poor recruitment process speak volumesabout its role in an organization. The failure to generate an adequate numberof reasonably qualified applicants can prove costly in several ways. It cangreatly complicate the selection process and may result in lowering ofselection standards. The poor quality of selection means extra cost ontraining and supervision. Furthermore, when recruitment fails to meet theorganizational needs for talent, a typical response is to raise entry-level payscales. This can distort traditional wage and salary relationships in theorganization, resulting in avoidable consequences. Thus, the effectiveness of

a recruitment process can play a major role in determining the resources thatmust be expended on other HR activities and their ultimate success.SUB-SYSTEMS OF RECRUITMENTThe recruitment process consists of the following four sub-functions:-Finding out and developing the sources where the required numberand kind of employees will be available.Developing suitable techniques to attract the desirable candidates.Employing the techniques to attract candidates.Stimulating as many candidates as possible and asking them to applyfor jobs irrespective of the number of candidates required.Management has to attract more candidates in order to increase theselection ratio so that the most suitable candidate can be selected out of thetotal candidates available. Recruitment is positive as it aims at increasing thenumber of applicants and selection is somewhat negative as it selects thesuitable candidates in which process; the unsuitable candidates areautomatically eliminated. Though, the function of recruitment seems to beeasy, a number of factors make performance of recruitment a complex one.FACTORS AFFECTING RECRUITMENTThe following are the 2 important factors affecting Recruitment:-1) INTERNAL FACTORSRecruiting policyTemporary and part-time employeesRecruitment of local citizensEngagement of the company in HRPCompany’s sizeCost of recruitment

Company’s growth and expansion2) EXTERNAL FACTORSSupply and Demand factorsUnemployment RateLabour-market conditionsPolitical and legal considerationsSocial factorsEconomic factorsTechnological factorsINDUCEMENTSOrganisational inducements are all the positive features and benefitsoffered by an organization that serves to attract job applicants to theorganisation. Three inducements need specific mention here, they are:-Compensation: Starting salaries, frequency of pay increases,incentives and fringe benefits can all serve as inducements to potentialemployees.Career Opportunities: These help the present employees to growpersonally and professionally and also attract good people to theorganization. The feeling that the company takes care of employeecareer aspirations serves as a powerful inducements to potentialemployees.Image or Reputation: Factors that affect an organisation’s reputationinclude its general treatment of employees, the nature and quality ofits products and services and its participation in worthwhile socialendeavors.CASE EXAMPLE (inducements):INFOSYS: The Software PowerhouseInfosys Technologies Limited (ITL), one of the country’s best knownsoftware exporting house, treats its employees as partners and co-owners. It

provides them challenging assignments, allows flexible working hours,rewards them solely on the basis of performance and conducts regulartraining programmes to upgrade their skills. It has an “Employee StockOption Plan” (ESOP) to share its wealth with employees on the basis of theirperformance. Even lower level employees are proud owners of the prizedstock worth 25 to 40 lakh rupees, according to Narayan Murthy, the CEO ofITL. Apart from increasing shareholder value, ESOP has greatly enhancedthe image of the company in the information technology industry whereemployee attrition rates are very high. It is small wonder companies likeProcter & Gamble, Johnson & Johnson, Citibank have reposed their faith inESOP as a way of attracting and retaining talent in a highly competitiveenvironment.CONSTRAINTSIf a firm has a poor image in the market, many of the prospectivecandidates may not even apply for vacancies advertised by the firm. If thejob is not attractive, qualified people may not even apply. Any job that isviewed as boring, hazardous, anxiety producing, low-paying, or lacking inpromotion potential seldom will attract a qualified pool of applicants.Recruiting efforts require money. Sometimes because of limited resources,organizations may not like to carry on the recruiting efforts for long periodsof time, this can, ultimately, constrain a recruiter’s effort to attract the best

person for the job. Government policies often come in the way of recruitingpeople as per the rules of the company or on the basis of merit/seniority, etc.For example, reservations to specific groups (such as scheduled castes,scheduled tribes, backward castes, physically handicapped and disabledpersons, ex-servicemen, etc.) have to be observed as per constitutionalprovisions while filling up vacancies in government corporations,departmental undertakings, local bodies, quasi-government organizations,etc.RECRUITMENT- Relationship with other activities

CORPORATE MISSION, OBJECTIVES, STRATEGIESAND TACTICS (MOST)Corporations have started linking their Mission, Objectives, Strategiesand Tactics (MOST) to the functions of recruitment and selection. Theeconomic liberalizations and consequent competition through quality andservices necessitated the companies to search for and attract competenthuman resources. Corporations focusing on new business development willhave to seek entrepreneurial abilities, companies planning to withdraw fromdiversifications must look for pragmatists and companies chasing growthalliances should employ people comfortable in different culturalbackgrounds. Above all, companies must hire for the future, anticipatingjobs that may not be in existence yet. Recruitment managers must focus forattitudes and approaches that fit the corporate goals and culture.RECRUITMENT POLICY

Recruitment policy of any organization is derived from the personnelpolicy of the same organization. In other words the former is a part of thelatter. However, recruitment policy by itself should take into considerationthe government’s reservation policy, policy regarding sons of soil, etc.,personnel policies of other organizations regarding merit, internal sources,social responsibility in absorbing minority sections, women, etc.Recruitment policy should commit itself to the organisation’s personnelpolicy like enriching the organisation’s human resources or servicing thecommunity by absorbing the retrenched or laid-off employees orcasual/temporary employees or dependents of present/former employees,etc.The following factors should be taken into consideration in formulatingrecruitment policy. They are:-Government policiesPersonnel policies of other competing organizationsOrganisation’s personnel policiesRecruitment sourcesRecruitment needsRecruitment costSelection criteria and preferenceRECRUITMENT- Matching the of the organization & applicantsIMPACT OF PERSONNEL POLICIES ON RECRUITMENTPOLICIESRecruitment policies are mostly drawn from personnel policies of theorganization. According to Dale Yodar and Paul D. Standohar, generalpersonnel policies provide a wide variety of guidelines to be spelt out in

recruitment policy. After formulation of the recruitment policies, themanagement has to decide whether to centralize or decentralize therecruitment function.CENTRALISED V/s DECENTRALISED RECRUITMENTRecruitment practices vary from one organization to another. Someorganizations like commercial banks resort to centralized recruitment whilesome organizations like the Indian Railway resort to decentralizedrecruitment practices. Personnel department at the central office performs allthe functions of recruitment in case of centralised recruitment and personneldepartments at unit level/zonal level perform all the functions of recruitmentconcerning to the jobs of the respective unit or zone.MERITS OF CENTRALISED RECRUITMENTAverage cost of recruitment per candidate/unit should be relativelyless due to economies of scale.It would have more expertise available to it.It can ensure broad uniformity among human resources of variousunits/zones in respect of education, skill, knowledge, talent, etc.It would generally be above malpractices, abuse of powers,favouritism, bias, etc.It would facilitate interchangeability of staff among variousunits/zones.It enables the line managers of various units and zones to concentrateon their operational activities by relieving them from the recruitingfunctions.It enables the organization to have centralised selection procedure,promotional and transfer procedure, etc.

It ensures the most effective and suitable placement to candidates.It enables centralised training programmes which further bringsuniformity and minimizes average cost of staff.MERITS OF DECENTRALISED RECRUITMENTThe unit concerned concentrates only on those sources/places whereinnormally gets the suitable candidates. As such the cost of recruitmentwould be relatively less.The unit gets most suitable candidates as it is well aware of therequirements of the job regarding culture, traditional, familybackground aspects, local factors, social factors, etc.Units can recruit candidates as and when they are required withoutany delay.The units would enjoy freedom in finding out, developing the sources,in selecting and employing the techniques to stimulate the candidates.The unit would relatively enjoy advantage about the availability ofinformation, control and feedback and various functions/processes ofrecruitment.The unit would enjoy better familiarity and control over theemployees it recruits rather than on employees selected by the centralrecruitment agency.Both the systems of recruitment would suffer from their own demerits.Hence, the management has to weigh both the merits and demerits of eachsystem before making a final decision about centralizing or decentralizingthe recruitment. Alternatively management may decentralize the recruitmentof certain categories of employees preferably middle and top level

managerial personnel and centralize the recruitment of other categories ofemployee’s preferably lower level positions in view of the nature of the jobsand suitability of those systems for those categories of positions. Themanagement has to find out and develop the sources of recruitment afterdeciding upon centralizing or decentralizing the recruitment function.CASE STUDY:-WHICH IS MORE IMPORTANT –RECRUITING OR RETAININGUptron Electronics Ltd is an internationally reputed electronics firm.It attracted employees from internationally reputed institutes and industriesby offering high salaries, perks, etc. It had advertised for the position of anElectronics engineer some years back. Nearly 150 candidates working invarious electronics firm applied for the job. Mr. Sashidhar, an ElectronicsEngineer Graduate from Indian Institute of Technology with 5 years ofworking experience in a small electronics firm was selected among thoseinterviewed. The interview board recommended an enhancement in hissalary by Rs.500 more than his present salary at his request. He was veryhappy and was congratulated by his previous employer for his brilliantinterview performance and good luck.Mr. Sashidhar joined the company with great enthusiasm and alsofound his job to be quite comfortable and challenging one. He found that hiscolleagues and superiors were friendly and co-operative. But this didn’t last

long. After one year of his service, he slowly learnt about a number ofunpleasant stories about the company, management, the superior-subordinaterelations, rate of employee turnover, etc. But still he decided to continuewith the promise that he made in the interview. He wanted to please andchange the attitude of management through his performance, commitmentand dedication. Looking at his great contributions and efforts, themanagement got the impression that he is well settled will remain in thecompany for a long time. After sometime they all started taking undueadvantage of him and overloaded him with multifarious jobs and therebyridded over him. As a result, his freedom in deciding and executing was cutdown to size; his colleagues started assigning their responsibilities to him.Consequently, there were imbalances in his family, social and organizationlife.It was quite surprising to the general manager to see the resignationletter of Mr. Sashidhar one fine morning. The general manager failed toconvince him to withdraw his resignation. The general manager wanted toappoint a committee to go into the matter immediately, but dropped the idealater so that the company’s image doesn’t get spoiled.ANALYSISThus, from this case study it is clear that retaining is much moreimportant than recruiting. What’s the use and benefits of recruiting qualityemployees if they cannot be retained by the organization in a proper manner.

The purpose of recruitment is fulfilled when the employees selected from apool of qualified applicants are retained in the company by keeping themsatisfied in all aspects. They must be provided with better workingconditions, better pay scales, incentives, recognition, promotion, bonus,flexible working hours, etc. They should treat the employees as co-ownersand partners of the company.SOURCES OF RECRUITMENTThe sources of recruitment may be broadly divided into twocategories: internal sources and external sources. Both have their ownmerits and demerits. Let’s examine these.Internal Sources:-Persons who are already working in an organization constitute the‘internal sources’. Retrenched employees, retired employees, dependents ofdeceased employees may also constitute the internal sources. Whenever anyvacancy arises, someone from within the organization is upgraded,transferred, promoted or even demoted.External SourcesExternal sources lie outside an organization. Here the organizationcan have the services of : (a) Employees working in other organizations; (b)Jobs aspirants registered with employment exchanges; (c) Students fromreputed educational institutions; (d) Candidates referred by unions, friends,relatives and existing employees; (e) Candidates forwarded by search firmsand contractors; (f) Candidates responding to the advertisements, issued bythe organization; and (g) Unsolicited applications/ walk-ins.Merits and Demerits of ‘Recruiting people from ‘Within’

Merits Demerits1) Economical: The cost ofrecruiting internal candidates isminimal. No expenses areincurred on advertising.2) Suitable: The organization canpick the right candidates havingthe requisite skills. The candidatecan choose a right vacancy wheretheir talents can be fully utilized.3) Reliable: The organization has1) Limited Choice: Theorganization is forced to selectcandidates from a limited pool. Itmay have to sacrifice quality andsettle down for less qualifiedcandidates.2) Inbreeding: It discourages entryfor talented people, availableoutside an organization. Existingemployees may fail to behave inthe knowledge about suitability ofa candidate for a position.‘Known devils are better thanunknown angels!’4) Satisfying: A policy ofpreferring people from withinoffers regular promotionalavenues for employees. Itmotivates them to work hard andearn promotions. They will workwith loyalty commitment andenthusiasm.innovative ways and injectnecessary dynamism to enterpriseactivities.3) Inefficiency: Promotions basedon length of service rather thanmerit, may prove to be a blessing

for inefficient candidate. They donot work hard and prove theirworth.4) Bone of contention:Recruitment from within maylead to infighting amongemployees aspiring for limited,higher level positions in anorganization. As years roll by,the race for premium positionsmay end up in a bitter race.The merits and demerits of recruiting candidates from outside anorganization may be stated thus:Merits and Demerits of External sources of RecruitmentMerits DemeritsWide Choice: The organization hasthe freedom to select candidates froma large pool. Persons with requisitequalifications could be picked up.Infection of fresh blood: Peoplewith special skills and knowledgecould be hired to stir up the existingExpenses: Hiring costs could go upsubstantially. Tapping multifarioussources of recruitment is not an easytask either.Time consuming: It takes time toadvertise, screen, to test and test andto select suitable employees. Whereemployees and pave the way forinnovative ways of working.Motivational force: It helps inmotivating internal employees towork hard and compete with externalcandidates while seeking careergrowth. Such a competitiveatmosphere would help an employeeto work to the best of his abilities.Long term benefits: Talented

people could join the ranks, newideas could find meaningfulexpression, a competitiveatmosphere would compel people togive out their best and earn rewards,etc.suitable ones are not available, theprocess has to be repeated.De-motivating: Existing employeeswho have put in considerable servicemay resist the process of filling upvacancies from outside. The feelingthat their services have not beenrecognized by the organization,forces then to work with lessenthusiasm and motivation.Uncertainty: There is no guaranteethat the organization, ultimately willbe able to hire the services ofsuitable candidates. It may end uphiring someone who does not fit andwho may not be able to adjust in thenew setup.METHODS OF RECRUITMENTThe following are the most commonly used methods of recruiting people.INTERNAL METHODS:1. Promotions and TransfersThis is a method of filling vacancies from within through transfers andpromotions.A transfer is a lateral movement within the same grade, from one job toanother. It may lead to changes in duties and responsibilities, workingconditions, etc., but not necessarily salary. Promotion, on the other hand,involves movement of employee from a lower level position to a higher

level position accompanied by (usually) changes in duties, responsibilities,status and value. Organisations generally prepare badli lists or a central poolof persons from which vacancies can be filled for manual jobs. Suchpersons are usually passed on to various departments, depending on internalrequirements. If a person remains on such rolls for 240 days or more, hegets the status of a permanent employee as per the Industrial Disputes Actand is therefore entitled to all relevant benefits, including provident fund,gratuity, retrenchment compensation.2. Job PostingJob posting is another way of hiring people from within. In this method,the organisation publicises job opening on bulletin boards, electronic methodand similar outlets. One of the important advantages of this method is that itoffers a chance to highly qualified applicants working within the company tolook for growth opportunities within the company to look for growthopportunities within the company without looking for greener pasturesoutside.3. Employee ReferralsEmployee referral means using personal contacts to locate jobopportunities. It is a recommendation from a current employee regarding ajob applicant. The logic behind employee referral is that “it takes one toknow one”. Employees working in the organization, in this case, areencouraged to recommend the names of their friends, working in other

organizations for a possible vacancy in the near future. In fact, this hasbecome a popular way of recruiting people in the highly competitiveInformation Technology industry nowadays. Companies offer rich rewardsalso to employees whose recommendations are accepted – after the routinescreening and examining process is over – and job offers extended to thesuggested candidates. As a goodwill gestures, companies also consider thenames recommended by unions from time to time.External (direct) MethodsCampus RecruitmentIt is a method of recruiting by visiting and participating in collegecampuses and their placement centres. Here the recruiters visit reputededucational institutions such as IITs, IIMs, colleges and universities with aview to pick up job aspirants having requisite technical or professionalskills. Job seekers are provided information about the jobs and therecruiters, in turn, get a snapshot of job seekers through constant interchangeof information with respective institutions.A preliminary screening is done within the campus and the short listedstudents are then subjected to the remainder of the selection process. Inview of the growing demand for young managers, most reputedorganizations (such as Hindustan Lever Ltd., Proctor & Cable, Citibank,State Bank of India, Tata and Birla group companies) visit IIMs and IITsregularly and even sponsor certain popular campus activities with a view toearn goodwill in the job market. Advantages of this method include: the

placement centre helps locate applicants and provides resumes toorganizations; applicants can be prescreened; applicants will not have to belured away from a current job and lower salary expectations. On thenegative front, campus recruiting means hiring people with little or no workexperience.The organizations will have to offer some kind of training to theapplicants, almost immediately after hiring. It demands careful advanceplanning, looking into the placement weeks of various institutions indifferent parts of the country. Further, campus recruiting can be costly fororganizations situated in another city (airfare, boarding and lodgingexpenses of recruiters, site visit of applicants if allowed, etc.).If campus recruitment is used, steps should be taken by human resourcedepartment to ensure that recruiters are knowledgeable concerning the jobsthat are to be filled and the organizations and understand and employeffective interviewing skills.Guidelines for campus recruiting: companies using college campuses asrecruitment source should consider the following guidelines:Identify the potential candidates early: The earlier that candidate withtop potential can be identified, the more likely the organization will bein a position to attract them.Employ various means to attract candidates: These may includeproviding research grants; consulting opportunities to facultymembers, funding university infrastructural requirements, internships

to students, etc. in the long run these will enhance the prestige of thecompany in the eyes of potential job seekers.Use effective recruitment material: Attractive brochures, films,computer diskettes, followed by enthusiastic and effectivepresentations by company officials, correspondence with placementoffices in respective campus in a friendly way – will help in bootingthe company image in the eyes of the applicants. The company mustprovide detailed information about the characteristics of entry – levelpositions, especially those that have had a major positive impact onprior applicants’ decisions to join the company.Offer training to campus interviews: Its better to devote more timeand resources to train on campus interviewers to answer specific job –related questions of applicants.Come out with a competitive offer: Keep the key job attributes thatinfluence the decisions of applicants such as promotional avenues,challenging assignments, long term income potential, etc., whiletalking to candidates.Indirect methods:-Advertisements:-These include advertisements in newspapers; trade, professional andtechnical journals; radio and television; etc. in recent times, this medium hasbecome just as colourful, lively and imaginative as consumer advertising.The ads generally give a brief outline of the job responsibilities,compensation package, prospects in organizations, etc. this method is

appropriate when (a) the organization intends to reach a large target groupand (b) the organizations wants a fairly good number of talented people –who are geographically spread out. To apply for advertised vacancies let’sbriefly examine the wide variety of alternatives available to a company - asfar as ads are concerned:Newspaper Ads : Here it is easy to place job ads without much ofa lead time. It has flexibility in terms of information and canconveniently target a specific geographic location. On thenegative side, newspaper ads tend to attract only those who areactively seeking employment at that point of time, while some ofthe best candidates who are well paid and challenged by theircurrent jobs may not be aware of such openings. As a result, thecompany may be bombarded with applications from a largenumber of candidates who are marginally qualified for the job –adding to its administrative burden. To maintain secrecy forvarious reasons (avoiding the rush, sending signals tocompetitors, cutting down expenses involved in responding to anyindividual who applies, etc.), large companies with a nationalreputation may also go in for blind-box ads in newspapers,especially for filling lower level positions. In a blind-box ad thereis no identification of the advertising organization. Job aspirantsare asked to respond to a post office box number or to anemployment firm that is acting as an agent between the jobseekers and the organization.Television and radio ads: These ads are more likely to eachindividual who are not actively seeking employment; they aremore likely to stand out distinctly, they help the organization totarget the audience more selectively and they offer considerablescope for designing ads creatively. However, these ads areexpensive. Also, because the television or radio is simply seen orheard, potential candidates may have a tough time rememberingthe details, making application difficult.Third Party MethodsPrivate Employment Search Firms:-As search firm is a private employment agency that maintains

computerized lists of qualified applicants and supplies these to employerswilling to hire people from the list for a fee. Firms like Arthur Anderson,Boble and Hewitt, ABC consultants, SB Billimoria, KPMG; FergusonAssociates offers specialized employment-related services to corporatehouses for a fee, especially for top and middle level executive vacancies.AT the lower end, a number of search firms operate – providingmultifarious services to both recruiters and the recruitees.Employment Exchanges:-AS a statutory requirement, companies are also expected to notify(wherever the Employment Exchanges Act, 1959, applies) their vacanciesthrough the respective Employment Exchanges, created all over India forhelping unemployed youth, displaced persons, ex-military personnel,physically handicapped, etc. AS per the Act all employers are supposed tonotify the vacancies arising in their establishments form time to time – withcertain exemptions – to the prescribed employment exchanges before theyare filled. The Act covers all establishments in public sector andnonagricultural establishments employing 25 or more workers in the privatesector. However, in view of the practical difficulties involved inimplementing the provisions of the Act (such as filing a quarterly return inrespect of their staff strength, vacancies and shortages, returns showingoccupational distribution of their employees, etc.) many organizations havesuccessfully fought court battles when they were asked to pick upcandidates from among those sponsored by the employment exchanges.

Gate Hiring and Contractors:-Gate hiring (where job seekers, generally blue collar employees,present themselves at the factory gate and offer their services on a dailybasis), hiring through contractors, recruiting through word-of-mouthpublicity are still in use – despite the many possibilities for their misuse –in the small scale sector in India.Unsolicited Applicants / Walk-ins:-Companies generally receive unsolicited applications from job seekersat various points of time; the number of such applications depends oneconomic conditions, the image of the company and the job seeker’sperception of the types of jobs that might be available etc. Suchapplications are generally kept in a data bank and whenever a suitablevacancy arises, the company would intimate the candidates to applythrough a formal channel. One important problem with this method is thatjob seekers generally apply to number of organizations and when they areactually required by the organizations, either they are already employed inother organizations or are not simply interested in the position.Alternatives to Recruitment:-Since recruitment and selection costs are high (search process,interviewing agency fee, etc.) firms these days are trying to look atalternatives to recruitment especially when market demand for firm’sproducts and services is sluggish. Moreover, once employees are placed onthe payroll, it may be extremely difficult to remove them if theirperformance is marginal. Some of the options in this regard may be listed

thus:Evaluation of Alternative SourcesCompanies have to evaluate the sources of recruiting carefully –looking at cost, time, flexibility, quality and other criteria – beforeearmarking funds for the recruitment process. They cannot afford tofill all their vacancies through a particular source. To facilitate thedecision making process in this regard, companies rely on thefollowing:Time lapse data: They show the time lag between the dates ofrequisition for manpower supply from a department to the actual dateof filling the vacancies in that department. For example, acompany’s past experience may indicate that the average number ofdays from application to interview is 10, from interview to offer is 7,from offer to acceptance is 10 and from acceptance to report forwork is 15. Therefore, if the company starts the recruitment andselection process now it would require 42 days before the newemployee joins its ranks. Armed with this information, the length ofthe time needed for alternative sources of recruitment can beascertained – before pinning hopes on a particular source that meetsthe recruitment objectives of the company.Yield ratios: These ratios indicate the number of leads / contactsneeded to generate a given number of hires at a point at time. Forexample, if a company needs 10 management trainees in the next sixmonths, it has to monitor past yield ratios in order to find out thenumber of candidates to be contacted for this purpose. On the basisof past experience, to continue the same example, the company findsthat to hire 10 trainees, it has to extend 20 offers. If the interview-toofferis 3:2, then 30 interviews must be conducted. If the invitees to

interview ratios are 4:3 then, as many as 40 candidates must beinvited. Lastly, if contacts or leads needed to identify suitabletrainees to invite are in 5:1 ratio, then 200 contacts are made.Surveys and studies: Surveys may also be conducted to find out thesuitability of a particular source for certain positions. For example,as pointed out previously, employee referral has emerged as popularway of hiring people in the Information Technology industry inrecent times in India. Correlation studies could also be carried out tofind out the relationship between different organizational positions.Before finally identifying the sources of recruitment, the humanresource managers must also look into the cost or hiring a candidate.The cost per hire can be found out by dividing the recruitment costby the number of candidates hired.

Visit hrmba.blogspot.com for more projectreports, ppt, notes etc.SELECTIONIntroductionThe size of the labour market, the image of the company, the place ofposting, the nature of job, the compensation package and a host of otherfactors influence the manner of aspirants are likely to respond to therecruiting efforts of the company. Through the process of recruitment thecompany tries to locate prospective employees and encourages them toapply for vacancies at various levels. Recruiting, thus, provides a pool ofapplicants for selection.Definition

To select mean to choose. Selection is the process of pickingindividuals who have relevant qualifications to fill jobs in an organisation.The basic purpose is to choose the individual who can most successfullyperform the job from the pool of qualified candidates.PurposeThe purpose of selection is to pick up the most suitable candidate whowould meet the requirements of the job in an organisation best, to find outwhich job applicant will be successful, if hired. To meet this goal, thecompany obtains and assesses information about the applicants in terms ofage, qualifications, skills, experience, etc. the needs of the job are matchedwith the profile of candidates. The most suitable person is then picked upafter eliminating the unsuitable applicants through successive stages ofselection process. How well an employee is matched to a job is veryimportant because it is directly affects the amount and quality of employee’swork. Any mismatched in this regard can cost an organisation a great deal ofmoney, time and trouble, especially, in terms of training and operating costs.In course of time, the employee may find the job distasteful and leave infrustration. He may even circulate ‘hot news’ and juicy bits of negativeinformation about the company, causing incalculable harm to the companyin the long run. Effective election, therefore, demands constant monitoringof the ‘fit’ between people the job.The Process

Selection is usually a series of hurdles or steps. Each one must besuccessfully cleared before the applicant proceeds to the next one. The timeand emphasis place on each step will definitely vary from one organisationto another and indeed, from job to job within the same organisation. Thesequence of steps may also vary from job to job and organisation toorganisation. For example some organisations may give more importance totesting while others give more emphasis to interviews and reference checks.Similarly a single brief selection interview might be enough for applicantsfor lower level positions, while applicants for managerial jobs might beinterviewed by a number of people.Steps in Selecting ProcessReceptionA company is known by the people it employs. In order to attract peoplewith talents, skills and experience a company has to create a favourableimpression on the applicants’ right from the stage of reception. Whoevermeets the applicant initially should be tactful and able to extend help in afriendly and courteous way. Employment possibilities must be presentedhonestly and clearly. If no jobs are available at that point of time, theapplicant may be asked to call back the personnel department after sometime.Screening InterviewA preliminary interview is generally planned by large organisations to

cut the cost of selection by allowing only eligible candidates to go throughthe further stages in selection. A junior executive from the PersonnelDepartment may elicit responses from the applicants on important itemsdetermining the suitability of an applicant for a job such as age, education,experience, pay expectations, aptitude, location, choice etc. this ‘courtesyinterview’ as it is often called helps the department screen out obviousmisfits. If the department finds the candidate suitable, a prescribedapplication form is given to the applicants to fill and submit.Application BlankApplication blank or form is one of the most common methods usedto collect information on the various aspects of the applicants’ academic,social, demographic, work related background and references. It is a briefhistory sheet of employee’s background, usually containing the followingthings:Personal data (address, sex, telephone number)Marital dataEducational dataEmployment ExperienceExtra-curricular activitiesReferences and RecommendationsUsefulness of Application Blank or FormApplication blank is highly useful selection tool, in that way it servesthree important purposes:1. It introduces the candidate to the company in a formal way.2. It helps the company to have a cross-comparison of the applicants; thecompany can screen and reject candidates if they fail to meet the

eligibility criteria at this stage itself.3. It can serve as a basis to initiate a dialogue in the interview.Selection TestingIn this section let’ examine the selection test or the employment testthat attempts to asses intelligence, abilities, personality trait, performancesimulation tests including work sampling and the tests administered atassessment centres- followed by a discussion about the polygraph test,graphology and integrity test.A test is a standardized, objective measure of a person’s behaviour,performance or attitude. It is standardised because the way the tests iscarried out, the environment in which the test is administered and the waythe individual scores are calculated- are uniformly applied. It is objective inthat it tries to measure individual differences in a scientific way giving verylittle room for individual bias and interpretation. Over the years employmenttests have not only gained importance but also a certain amount ofinevitability in employment decisions. Since they try to objectivelydetermine how well an applicant meets the job requirement, most companiesdo not hesitate to invest their time and money in selection testing in a bigway. Some of the commonly used employment tests are:Intelligence testsAptitude testsPersonality testsAchievement testsMiscellaneous tests such as graphology, polygraphy and honesty tests.

1. Intelligence Tests: These are mental ability tests. They measure theincumbent’s learning ability and the ability to understand instructions andmake judgements. The basic objective of such test is to pick upemployees who are alert and quick at learning things so that they can beoffered adequate training to improve their skills for the benefit of theorganization. These tests measure several abilities such as memory,vocabulary, verbal fluency, numerical ability, perception etc. Eg.Standford-Binet Test, Binet-Simon Test, The Wechsler AdultIntelligence Scale are example of standard intelligence test2. Aptitude Test: Aptitude test measure an individual’s potential to learncertain skills- clerical, mechanical, mathematical, etc. These tests indicatewhether or not an individual has the capabilities to learn a given jobquickly and efficiently. In order to recruit efficient office staff, aptitudetests are necessary. An aptitude tests is always administered incombination with other tests like intelligence and personality tests as itdoes not measure on-the-job-motivation3. Personality Test: Of all test required for selection the personality testshave generated a lot of heat and controversy. The definition ofpersonality, methods of measuring personality factors and therelationship between personality factors and actual job criteria has beenthe subject of much discussion. Researchers have also questionedwhether applicants answer all the items truthfully or whether they try torespond in a socially desirable manner. Regardless of these objections,many people still consider personality as an important component of job

success.4. Achievement Tests: These are designed to measure what the applicantcan do on the job currently, i.e., whether the testee actually knows whathe or she claims to know. A typing test tests shows the typingproficiency, a short hand tests measures the testee ability to take dictationand transcribe, etc. Such proficiency tests are also known as worksampling test. Work sampling is a selection tests wherein the jobapplicant’s ability to do a small portion of the job is tested. These testsare of two types; Motor, involving physical manipulations of things(e.g.,trade tests for carpenters, electricians, plumbers) or Verbal, involvingproblem situation that are primarily language-oriented or peopleoriented(e.g., situational tests for supervisory jobs).Since work samples areminiature replicas of the actual job requirements, they are difficult tofake. They offer concrete evidence of the proficiency of an applicant asagainst his ability to the job. However, work sample tests are not costeffective and every candidate has to be tested individually. It is not easyto develop work samples for each job. Moreover, it is not applicable toall levels of the organisation5. Simulation Tests: Simulation exercise is a tests which duplicate many ofthe activities and problems an employee faces while at work. Suchexercises are commonly used while hiring managers at various levels inan organisation. To asses the potential of a candidate for managerial

positions assessment centres are commonly used.6. Assessment Centre: An assessment centre is an extended work sample.It uses procedures that incorporate group and individual exercises. Theseexercises are designed to stimulate the type of work which the candidatewill be expected to do. Initially a small batch of applicants comes to theassessment centre (a separate room). Their performance in the situationalexercise is observed and evaluated by a team of 6-8 assessors. Theassessors’ judgement on each exercise are complied and combined tohave a summary rating for each candidate being assessed.Difference between Work Sample method and Assessment CentreWORK SAMPLE ASSESSMENT CENTRESuitable for routine, repetitivejobs with visible outcomesTakes a few minutes to test theapplicantEvaluated by one supervisorCan be done on location wherethe applicant performs a smallsegment of the jobUsually completed on oneapplicant at a timeSuitable for managerial jobs,the outcomes are notbehaviourally observableTakes days to conduct variousexerciseEvaluated by a team of trainedobserversRequires a separate facility.The centres are conducted fora variety of task segments( that

may not be the real job) thatmay be included in the real jobUsually performed on groupsof applicants at the same timeEvaluation of Assessment Centre Technique:The assessment centre technique has a number of advantages. The flexibilityof form and content, the use of variety of techniques, standardised way ofinterpreting behaviour and pooled assessor judgements accounts for itsacceptance as a valuable selection tool for managerial jobs. It is praised forcontent validity and wide acceptance in corporate circles. By providing arealistic job preview, the techniques helps an candidate make an appropriatecareer choice. The performance ratings are more objective in nature andcould be used for promotions and career development decisions readily.However, the method is expensive to design and administer. Blindacceptance of assessment data without considering other information oncandidates (past and current performance) is always not advisable.7. Graphology Test: Graphology involves using a trained evaluator toexamine the lines, loops, hooks, stokes, curves and flourishes in aperson’s handwriting to assess the person’s personality and emotionalmake-up. The recruiting company, may, for example, ask the applicantsto complete the application forms and write about why they want a job.These samples may be finally sent to graphologist for analysis and theresult may be put use while selecting a person. The use of graphology,

however, is dependent on the training and expertise of the person doingthe analysis. In the actual practice, questions of validity and just plainskepticism have limited in use.8. Polygraph (Lie-Detector) tests: the polygraph records physical changesin the body as the tests subject answers a series of questions. It recordsfluctuations in respiration, blood pressure and perspiration on a movingroll of graph paper. The polygraph operator forms a judgement as towhether the subject’s response was truthful or deceptive by examiningthe biological movements recorded on the paper. Critic, however,questions the appropriateness of the polygraphs in establishing the truthabout an applicant’s behaviour. The fact is that the polygraph records thebiological reaction in response to stress and does not record lying or evenconditions necessarily accompanying lying. Is it possible to prove thatthe responses recorded by the polygraph occur only because a lie hasbeen told? What about those situations in which a person lies withoutguilt (pathological liar) or lies believing the responses to be true? Thefact of the matter is that polygraphs are neither reliable nor valid. Sincethey invade the privacy of those tested, many applicants vehementlyoppose the use of polygraph as a selection tool.

Visit hrmba.blogspot.com for more projectreports, ppt, notes etc.

9. Integrity Test: These are designed to measure employee’s honestly topredict those who are more likely to steal from an employer or otherwiseact in a manner unacceptable to the organization. The applicants whotake these tests are expected to answer several ‘yes’ or ‘no’ typequestions such as:Typical Integrity QuestionsTypical Integrity Questions Yes NoHave you ever told a lie?Do you report to your boss if you knowof another employee stealing from thestore?Do you carry office stationary back toyour home for occasional use?Do you mark attendance for yourcolleagues also?Often these tests contain questions that repeat themselves in some way andthe evaluator then examines the consistency in responses. Companies thathave used integrity tests have reported success in tracking employees whoindulge in ‘theft’. However, these tests ultimately suffer from the sameweakness as polygraph and graphology test.Tests as Selection Tool:Test are useful selection devices in that they unover qualifications andtalents that can’t be detected otherwise. They can be used to predict howwell one would perform if one is hired, why one behaves the way one does,what situational factors influence employee productivity, etc. Tests alsoprovide unbiased information that can be put to scientific and statisticalanalysis.

However, tests suffer from sizeable errors of estimate. Mostpsychological tests also have one common weakness, that is, we can’t usescales which have a know zero point and equal intervals. An intelligencetest, for example starts at an arbitrary point, where a person may not be ableto answer question properly. This does not mean that the person is totallylacking in intelligence. Likewise, a person who is able to answer all the 10questions correctly cannot be called twice as intelligent as the one who wasable to answer only 5. If the test has commenced at some other point, wherethere easier questions, their score might have been different. Test also failsto elicit truthful responses from testees. To compound the problem further,test results are interpreted in a subjective was by testers and unless thesetesters do their homework well, the results may not be reliable.Standards for Selection TestsTo be useful as predictive and diagnostic selection tools, test mustsatisfy certain basic requirements:Reliability: Test scores should not vary widely under repeatedconditions. If a test is administered to the same individual repeatedly,he should get approximately identical score. Reliability is theconfidence that an indicator will measure the same thing every time.Validity: Validity is the extent to which an instrument measures whatit intends to measure. In a typing test validity measures a typist’sspeed and accuracy. To determine whether it really measures thespeed and accuracy of a typist is to demonstrate its validity. Thequestion if determining the validity of a selection test, thus, has a lot

to do with later performance on the job.Qualified People: Test require a high level of professional skills intheir administration and interpretation. Professional technicians areneeded for skilled judgmental interpretations of test scores.Preparation: A test should be well prepared. It should be easy tounderstand and simple to administer.Suitability: a test must fit the nature of the group on which it isapplied. A written test comprising difficult words would be fruitlesswhen it is administered on less educated workers.Usefulness: Exclusive reliance on any single test should be avoided,since the results in such a case are likely to be criticized. To be useful,it is always better to use a battery of test.Standardization: Norms for finalising test scores should beestablished. There must be prescribed methods and procedures foradministering the test and for scoring or interpreting it.Selection Practices:The following throws light on how the global giants use selectiontesting as a basis for picking up the right candidates to fill up the vacanciesarising internally:1. Siemens India: It uses extensive psychometric instruments toevaluate short-listed candidates. The company uses occupationalpersonality questionnaire to understand the candidate’s personalattributes and occupational testing to measure competencies.2. LG Electronics India: LG Electronics uses 3 psychometric tests tomeasure a person’s ability as a team player, to check personality typesand to find a person’s responsiveness and assertiveness.3. Arthur Anderson: while evaluating candidates, the company conductscritical behaviour interviewing which evaluates the suitability of the

candidate for the position, largely based on his past experience andcredentials4. PepsiCo India: The Company uses India as a global recruitmentresource. To select professionals for global careers with it, the companyuses a competency- based interviewing technique that looks at thecandidate’s abilities in terms of strategizing, lateral thinking, problemsolving, managing the environment. This apart, Pepsi insists that tosucceed in a global posting, these individuals possess strong functionalknowledge and come from a cosmopolitan background.Source: Business Today, April 7-21 2004, pg 129.Selection Interview:Interview is the oral examination of candidates for employment. This is themost essential step in the selection process. In this step the interviewermatches the information obtained about the candidates through variousmeans to the job requirements and to the information obtained through hisown observations during the interview. Interview gives the recruiter anopportunity –To size up the candidate personally;To ask question that are not covered in the tests;To make judgments on candidates enthusiasm and intelligence;To assess subjective aspects of the candidate – facial expressions,appearance, nervousness and so forth;To give facts to the candidates regarding the company, its policies,etc. and promote goodwill towards the company.Types of interviews:

Several types of interviews are commonly used depending on the nature andimportance of the position to be filled within an organization.In a NON-DIRECTIVE INTERVIEW the recruiter asks questions as theycome to mind. There is no specific format to be followed.In a PATTERNED INTERVIEW, the employer follows a pre-determinedsequence of questions. Here the interviewee is given a special formcontaining questions regarding his technical competence, personality traits,attitudes, motivation, etc.In a STRUCTURED OR SITUATIONAL INTERVIEW, there are fixedjob related questions that are presented to each applicant.In a PANEL INTERVIEW several interviewers question and seek answersfrom one applicant. The panel members can ask new and incisive questionsbased on their expertise and experience and elicit deeper and moremeaningful expertise from candidates.Interviews can also be designed to create a difficult environment where theapplicant’s confidence level and the ability to stand erect in difficultsituations are put to test. These are referred to as the STRESSINTERVIEW. This is basically an interview in which the applicant is madeuncomfortable by a series of, often, rude, annoying or embarrassingquestions.In the final category, there is the APPRAISAL INTERVIEW, where asuperior and subordinate sit together after the performance appraisal todiscuss the subordinate’s rating and possible remedial actions.Steps in interview process:

Interview is an art. It demands a positive frame of mind on part of theinterviewers. Interviewers must be treated properly so as to leave a goodimpression about the company in their minds. HR experts have identifiedcertain steps to be followed while conducting interviews:PREPARATION:Establishing the objective of the interviewReceiving the candidates application and resumeKeeping tests score ready, along with interview assessment formsSelecting the interview method to be followedChoosing the panel of experts who would interview the candidatesIdentifying proper room for environmentRECEPTION:The candidate should be properly received and led into the interviewroom. Start the interview on time.INFORMATION EXCHANGE:State the purpose of the interview, how the qualifications are going tobe matched with skills needed to handle the job.Begin with open ended questions where the candidate gets enough freedomto express himself.Focus on the applicant’s education, training, work experience, etc. Findunexplained gaps in applicants past work or college record and elicit factsthat are not mentioned in the resume.EVALUATION:Evaluation is done on basis of answers and justification given by theapplicant in the interview.PHYSICAL EXAMINATION:After the selection decision and before the job offer is made, thecandidate is required to undergo a physical fitness test. A job offer is often

contingent upon the candidate being declared fit after the physicalexamination.Medical examination:Certain jobs require physical qualities like clear vision, perfect hearing,unusual stamina, tolerance of hard working conditions, clear tone, etc.Medical examination reveals whether or not a candidate possesses thesequalities.Reference ChecksOnce the interview and medical examination of the candidate is over, thepersonnel department will engage in checking references. Candidates arerequired to give the names of 2 or 3 references in their application forms.These references may be from the individuals who are familiar with thecandidate’s academic achievements or from the applicant’s previousemployer, who is well versed with the applicant’s job performance andsometimes from the co-workers. In case the reference check is from theprevious employer, information in the following areas may be obtained.They are job title, job description, period of employment, pay andallowances, gross emoluments, benefits provided, rate of absence,willingness of previous employer to employ the candidate again, etc.Further, information regarding candidate’s regularity at work, character,progress, etc. can be obtained. Often a telephone call is much quicker. Themethod of mail query provides detailed information about the candidate’s

performance, character and behavior. However, a personal visit is superior tothe mail or telephone methods and is used where it is highly essential to geta detailed, first hand information which can also be secured by observation.Reference checks are taken as a matter of routine and treated casually oromitted entirely in many organizations. But a good reference check, whenused sincerely, will fetch useful and reliable information to the organization.Hiring decision:The line manager has to make the final decision now – whether to select orreject a candidate after soliciting the required information through differenttechniques discussed earlier. The line manager has to take adequate care intaking the final decision because of economic, behavioral and socialimplications of the selection decisions. A careless decision of rejecting acandidate would impair the morale of the people and they suspect theselection procedure and the very basis of selection in a particularorganization.A true understanding between line managers and personnel managersshould be established so as to facilitate good selection decisions. Aftertaking the final decision, the organization has to intimate this decision to thesuccessful as well as unsuccessful candidates. The organization sends theappointment order to the successful candidates either immediately or aftersometime depending upon its time schedule.Interviewing Mistakes:

Favors applicants who share his own attitudes;Not be asking right questions and hence not getting relevantresponses;Resort to snap judgments, making a decision as to the applicant’ssuitability in the first few minutes of the interview. Too ofteninterviewers form on early impression and spend the balance of interviewlooking for evidence to support it;May have been influenced by ‘cultural noise.’ To get the job, theapplicants try to get by the interviewer. If they reveal wrong things aboutthemselves, they may not get the job, so they try to give the interviewerresponses that are socially acceptable, but not very revealing. These typesof responses are known as cultural noise – responses the applicantbelieves are socially acceptable rather than facts;May have allowed him to be unduly influenced by associating aparticular personality trait with a person’s origin or cultural backgroundand that kind of stereotyping/generalizing ultimately determining thescore of a candidate. For example, he may feel that candidate from Biharmay find it difficult to read, write and speak English language and hencenot select them at all;May conclude that a poorly dressed candidate is not intelligent,attractive females are good for public dealings, etc. This is known as‘Halo Effect’ where a single important trait of a candidate affects thejudgment of the rather. The halo effect is present if an interviewer allowsa candidate’s accomplishments in athletics overshadow other aspects and

leads the interviewer to like the applicant because ‘athletes make goodsales people’;Have been influenced more by unfavorable than favorable informationabout or from the candidate. Unfavorable information is given roughlytwice the weight of favorable information. According to Dobmeyer andDunette, a single negative characteristic may bar an individual frombeing accepted, while no amount of positive features will guarantee acandidate’s acceptance;Have been under pressure to hire candidates at short notice;Have been influenced by the behavior of the candidates (how he hasanswered, his body language), his or her dress (especially in case offemale candidates) and other physical factors that are not job related.Barriers to effective selection:The main objective of selection is to hire people having competenceand commitment. This objective is often defeated because of certain barriers.The impediments which check effectiveness of selection are perception,fairness, validity, reliability, and pressure.PERCEPTION: Our inability to understand others accurately is probably themost fundamental barrier to selecting right candidate. Selection demands anindividual or a group to assess and compare the respective competencies ofothers, with the aim of choosing the right persons for the jobs. But our viewsare highly personalized. We all perceive the world differently. Our limited

perceptual ability is obviously a stumbling block to the objective andrational selection of people.FAIRNESS: Fairness in selection requires that no individual should bediscriminated against on the basis of religion, region, race or gender. But thelow number of women and other less privileged sections of society in themiddle and senior management positions and open discrimination on thebasis of age in job advertisements and in the selection process would suggestthat all the efforts to minimize inequity have not been very effective.VALIDITY: Validity, as explained earlier, is a test that helps predict jobperformance of an incumbent. A test that has been validated can differentiatebetween the employees who can perform well and those who will not.However, a validated test does not predict job success accurately. It can onlyincrease possibility of success.RELIABILITY: A reliable method is one which will produce consistentresults when repeated in similar situations. Like a validated test, a reliabletest may fall to predict job performance with precision.PRESSURE: Pressure is brought on the selectors by politicians, bureaucrats,relatives, friends, and peers to select particular candidate. Candidatesselected because of compulsions are obviously not the right ones.Appointments to public sector undertakings generally take place under suchpressure.