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HRM Notes

HRM Notes

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Published by: ✬ SHANZA MALIK ✬ on Oct 13, 2011
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Define recruitment :- (2 marks)
Recruitment is a process of searching for prospective employees
and stimulating them to apply for jobs.

Objectives of recruitment

Recruitment fulfills the following objectives

1.It reviews the list of objectives of the company and tries to achieve
them by promoting the company in the minds of public.
2.It forecasts how many people will be required in the company.
3.It enables the company to advertise itself and attract talented
4.It provides different opportunities to procure human resource.

Methods of recruitment/sources (10/5 marks)

Recruitment is a process of searching for prospective employees
and stimulating them to apply for jobs
Companies can adopt different methods of recruitment for
selecting people in the company. These methods are
1.Internal sources
2.External sources

The sources can be further explained with the help of following diagram

Sources of recruitment (manpower supply)

Internal source

External sources


1.Management consultant

2.Departmental exam

2.Employment agency


3.Campus recruitment


4.News paper advertisement

5.Internal advertisement

5.Internet advertisement

6.Employee recommendation

6.Walk in interview

Internal sources of recruitment :-

Internal sources of recruitment refer to obtaining people for job from
inside the company. There are different methods of internal recruitment

1.Promotion :-

Companies can give promotion to existing employees. This
method of recruitment saves a lot of time, money and efforts
because the company does not have to train the existing employee.
Since the employee has already worked with the company. He is
familiar with the working culture and working style. It is a method
of encouraging efficient workers.

2.Departmental exam :- (2 marks)
This method is used by government departments to select
employees for higher level posts. The advertisement is put up on
the notice board of the department. People who are interested must
send their application to the HR department and appear for the
exam. Successful candidates are given the higher level job. The
method ensures proper selection and impartiality.

3.Transfer :-

Many companies adopt transfer as a method of recruitment.
The idea is to select talented personnel from other branches of the
company and transfer them to branches where there is shortage of

4.Retirement :- (2 marks)

Many companies call back personnel who have already
retired from the organization. This is a temporary measure. The
method is beneficial because it gives a sense of pride to the retired
when he is called back and helps the organization to reduce
recruitment selection and training cost.

5.Internal advertisement :-

In this method vacancies in a particular branch are


in the notice board. People who are interested are
asked to apply for the job. The method helps in obtaining people who
are ready to shift to another branch of the same company and it is

beneficial to people who want to shift to another branch.

6.Employee recommendation :- (2 marks)
In this method employees are asked to recommend people
for jobs. Since the employee is aware of the working conditions
inside the company he will suggest people who can adjust to the
situation. The company is benefited because it will obtain.

Advantages of internal recruitment

1.Internal methods are time saving.
2.No separate induction program is required.
3.The method increases loyalty and reduces labour turnover.
4.This method is less expensive.

Disadvantages of internal recruitment

1.There is no opportunity to get new talent in this method.
2.The method involves selecting people from those available in the
company so there is limited scope for selection.
3.There are chances of biased and partiality.
4.Chances of employee discontent are very high.

External methods/sources of recruitment

External sources of recruitment refer to methods of recruitment to obtain
people from outside the company. These methods are

1.Management consultant :- (2 marks concept)
Management consultant helps the company by providing
them with managerial personnel, when the company is on the look
out for entry level management trainees and middle level
managers. They generally approach management consultants.

2.Employment agencies :-

Companies may give a contract to employment agencies that
search, interview and obtain the required number of people. The
method can be used to obtain lower level and middle level staff.

3.Campus recruitment :- (2 marks concept)
When companies are in search of fresh graduates or new
talent they opt for campus recruitment. Companies approach
colleges, management, technical institutes, make a presentation
about the company and the job and invite applications. Interested

candidates who have applied are made to go through a series of
selection test and interview before final selection.

4.News paper advertisement :-
This is one of the oldest and most popular methods of
recruitment. Advertisements for the job are given in leading news
papers; the details of the job and salary are also mentioned.
Candidates are given a contact address where their applications
must be sent and are asked to send their applications within a
specified time limit. The method has maximum reach and most
preferred among all other methods of recruitment.

5.Internet advertisement :-

With increasing importance to internet, companies and
candidates have started using the internet as medium of
advertisement and search for jobs. There are various job sites like
naukri.com and monster.com etc. candidates can also post their
profiles on these sites. This method is growing in popularity.

6.Walk in interview :-

Another method of recruitment which is gaining importance
is the walk in interview method. An advertisement about the
location and time of walk in interview is given in the news paper.
Candidates require to directly appearing for the interview and have
to bring a copy of their C.V. with them. This method is very
popular among B.P.O and call centers.

Advantages of external recruitment

1.There is influx of new talent in the method.
2.The method encourages more and more competition.
3.There is lesser chance of partiality through this method.
4.If options like campus recruitment have been exercised we get a
chance to employ fresh graduates, thus increasing employment.

Disadvantages of external recruitment

1.The method is costly because it involves recruitment cost,
selection, training cost.
2.The method is time consuming.
3.The method reduces loyalty to the company.


Define selection :- (2 marks)
Selection can be defined as process of choosing the right person for

the right job.

Process of selection :- (10 marks)
The process of selection is different in different companies;
however a general procedure of selection can be framed. This process of
selection can be explained with the help of following diagram

Process of selection

Job analysis


Application blank/form

Written test


Medical examination

Initial job offer

Acceptance/rejection letter

Final offer/letter of appointment


1.Job analysis :-

The very first step in the selection procedure is the job
analysis. The HR department prepares the job description and
specification for the jobs which are vacant. This gives details for
the jobs which are vacant. This gives details about the name of the
job, qualification, qualities required and work conditions etc.

2.Advertisement :-

Based on the information collected in step 1, the HR
department prepares an advertisement and publishes it in a leading
news papers. The advertisement conveys details about the last date
for application, the address to which the application must be sent

3.Application blank/form :-

Application blank is the application form to be filled by the
candidate when he applies for a job in the company. The
application blank collects information consisting of 4 parts- 1)
Personal details 2) Educational details 3) Work experience 4)
Family background.

4.Written test :-

The application which have been received are screened by
the HR department and those applications which are incomplete are
rejected. The other candidates are called for the written test.
Arrangement for the written test is looked after the HR department
i.e. question papers, answer papers, examination centers and hall
tickets etc.

5.Interview :-

Candidates who have successfully cleared the test are called
for an interview. The entire responsibility for conducting the
interview lies with the HR department i.e. they look after the panel
of interviewers, refreshments, informing candidates etc.

6.Medical examination :-

The candidates who have successfully cleared the interview
are asked to take a medical exam. This medical exam may be
conducted by the organization itself (army). The organization may
have a tie up with the hospital or the candidate may be asked to get
a certificate from his family doctor.

7.Initial job offer :-

Candidates who successfully clear the medical exam are
given an initial job offer by the company stating the details
regarding salary, terms of employment, employment bond if any
etc. The candidate is given some time to think over the offer and to
accept or reject.

8.Acceptance/ rejection :-

Candidates who are happy with the offer send their
acceptance within a specified time limit to show that they are ready
to work with the company.

9.Letter of appointment/final job offer :-
Candidates who send their acceptance are given the letter of
appointment. The letter will state the name of the job. The salary
and other benefits, number of medical leaves and casual leaves,
details of employment bond if any etc. It will also state the date on
which the employee is required to start duty in the company.

10.Induction :-

On the date of joining the employee is introduced to the
company and other employees through am elaborate induction

Types of selection test (5 marks)

Different selection test are adopted by different organization
depending upon their requirements. These tests are specialized test which
have been scientifically tested and hence they are also known as scientific
test. Different types of test can be explained with the help of following

Types of selection test









Mental ability/
Intelligence test

Medical aptitude

Psycho motor test

I.Aptitude test :-

Aptitude tests are test which assess the potential and ability
of a candidate. It enables to find out whether the candidate is
suitable for the job. The job may be managerial technical or
clerical. The different types of aptitude test are

a.Mental ability/mental intelligence test :-
This test is used to measure the over all intelligence and
intellectual ability of the candidate to deal with problems. It
judges the decision making abilities.

b.Mechanical aptitude test :-
This test deals with the ability of the candidate to do
mechanical work. It is used to judge and measure the
specialized knowledge and problem solving ability. It is
used for technical and maintenance staff.

c.Psycho motor test :-
This test judges the motor skills the hand and eye co-
ordination and evaluates the ability to do jobs lie packing,
quality testing, quality inspection etc.

II.Intelligence test :-

This test measures the numerical skills and reasoning
abilities of the candidates. Such abilities become important in
decision making. The test consists of logical reasoning ability, data
interpretation, comprehension skills and basic language skills.

III.Personality test :-

In this test the emotional ability or the emotional quotient is
tested. This test judges the ability to work in a group, inter personal
skills, ability to understand and handle conflicts and judge
motivation levels. This test is becoming very popular now days.

IV.Performance test :-

This test judges and evaluates the acquired knowledge and
experience of the knowledge and experience of the individual and
his speed and accuracy in performing a job. It is used to test
performance of typist, data entry operators etc.


Induction = orientation

Define induction :- (2marks concept/5marks short note)
Induction can be defined as a process of introducing the employee
who is newly elected to the organization. When an employee is given a
letter of appointment he joins the company on duty. The very first thing
that the company does is, introduces the new employee to the
organization and people working there.
An induction program may be conducted at a particular center for
all employees or at different places (branches of the company) for
different employees. Normally the new employee is called together to the
staff training college for the induction program.
The induction starts with an introduction secession about the
company, number of branches, a brief history of the company, number of
products, number of countries operating in, organizational structure,
culture, values, beliefs, the names of top management personnel etc.
Apart from this introductory secession there will be other
secessions also like secessions on behavioral science, soft skill training,
secessions on giving details about the job, salary, bonus, information
about different leaves that can be taken by the employee about upward
mobility in the organization etc.
There are different ways in which secessions can be conducted i.e.
using lecture method, power point presentation, group discussion,
psychological test, roll play secessions etc.
The induction program concludes with the employee reporting for
duty at his respective branch after induction. When he reports for duty the
senior most people in the branch takes the new employee around the
office and introduces to all other employees and gives information about
the working of the branch. The senior people regularly stay in touch with
the new employee in the first week so that he can make the new
employee comfortable and help him to adjust to the company.
After this the company may start a training program for the new


Define placement :- (2 marks concept)
Companies conduct recruitment and selection and finally select
employees. The employees undergo an induction program. After the
induction program is over the employee is given a specific job in the
company. This is called placement.

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