Human Resource Management 14MBA21

Module 3
Recruitment, Selection and Placement
Definition
The process of attracting individuals on a timely basis, in sufficient numbers, and with appropriate
qualifications, and encouraging them to apply for jobs with an organization .Recruitment is the process of
locating and encouraging potential applicants to apply for existing or anticipated job openings. It is
actually a linking function, together those with jobs to fill and those seeking jobs.
Eg: Recruitment ad of a foreign bank may invite applications from chartered accountants who
have cleared the CA examination in the first attempt only.

Recruitment is a process of searching for prospective employees and stimulating and encouraging
them to apply for jobs in an organization.” ‘FLIPPO’
Recruitment is the discovering of potential candidates.
“For actual or anticipated organizational vacancies. It is the linking activity... bringing together
those with the jobs to fill & those seeking jobs” ‘DAVID’.

“Recruitment is the process to discover the sources of manpower to meet the requirements of
staffing schedule and to employ effective measures for attracting the manpower” ‘YODER’.

H RP Support the organization ability to acquire, retain and develop the best talent and skills.
 Determine present and future manpower requirements of the organization in coordination with planning
and job analysis activities.
 Obtain the number and quality of employees that can be selected in order to help the organization to
achieve its goals and objectives.
 Create a pool of candidates so that the management can select the right candidate for the right job
from this pool
 Attract and encourage more and more candidates to apply in the organization.
 Increase the pool of candidates at minimum cost.
 Acts as a link between the employers and the job seekers
 Infuse fresh blood at all levels of the organization
 Meet the organization's legal and social obligations regarding the composition of its workforce.
 Increase the effectiveness of various recruiting techniques
Constraints and Challenges
Poor image: of the company – declining industry-earning a bad name, poor quality
products-nepotism

Unattractive j ob: job without challenges, devoid of career growth

Conservative internal policies: A policy if internal promotions based on seniority, experience, job
knowledge may result in loss of effective hands from outside.

Limited budgetary support: Recruitment efforts costs money.

Restrictive Policies of Government: governmental policies on recruitment/promotion based on seniority,
reservation, ex-service men, disabled persons etc.

Sources and Methods of Recruitment

The organizations differ in terms of their size, business, processes and practices. A few decisions by the
recruitment professionals can affect the productivity and efficiency of the organisation. Organisations
adopt different forms of recruitment practices according to the specific needs of the organisation. The
organizations can choose from the centralized or decentralized forms of recruitment, explained below:

Centralized Recruitment
The recruitment practices of an organisation are centralized when the HR / recruitment department at the
head office performs all functions of recruitment. Recruitment decisions for all the business verticals and
departments of an organisation are carried out by the one central HR (or recruitment) department.
Centralized from of recruitment is commonly seen in government organizations.
Benefits of the centralized form of recruitment are:
 Reduces administration costs
 Better utilization of specialists
 Uniformity in recruitment
 Interchangeability of staff
 Reduces favoritism
 Every department sends requisitions for recruitment to their central office
Decentralized Recruitment
Decentralized recruitment practices are most commonly seen in the case of conglomerates operating in
different and diverse business areas. With diverse and geographically spread business areas and offices, it
becomes important to understand the needs of each department and frame the recruitment policies and
procedures accordingly. Each department carries out its own recruitment. Choice between the two will
depend upon management philosophy and needs of particular organization. In some cases combination of
both is used. Lower level staffs as well as top level executives are recruited in a decentralized manner

Sources of Recruitment
Internal: within Organisation
 External: outside Organisation

Internal Sources of Recruitment

 Internal sources of candidates
– Finding candidates
– Hiring employees the second time around
– Succession planning
Outside sources of Recruitment
– Executive recruiters
 Entrepreneurs and HR
– College recruiting
 Recruiting goals
 On site visits
 Internship
– Referrals and walk-ins
– Internet recruiting
– Employment agencies
 Public agencies
 Nonprofits
 Private agencies
Temporary agencies and alternative staffing
 Benefits and costs
 Guidelines for success
Methods of Recruitment Sources
INTERNAL SOURCE
 Transfers
 Promotion
 Up gradating
 Dependent of deceased family member
EXTERNAL SOURCE
 Advertisement
 Education Institutions
 Employment Agencies
 Voluntary Application
 Word of Mouth

 Rec. at factory gate

 Job Portals
 Acquisitions & Mergers
 Head Hunting & Poaching
 Contractor/ Outsourcing
Internal Recruitment
ADVANTAGES
 Familiarity of Candidate
 Available information & observation
 Selection & Socialization – less expensive
 Enhances Employee Morale
 Retention of Employees
Disadvantages
 Lack of New Ideas
 Expensive Training Programs
 Political & Personal Bias
 Ripple Effect
 Some Unhappy Employees
External Recruitment
Advantages
 New Ideas
 Valuable Information – Competitors
Moves & Strategies
 Diverse Skills & Vast Experience
Disadvantages
 Lack of Reliability
 Committing Mistakes
 Expensive Process
 Orientation Process – Time
Consuming
 De-motivates Internal Employees

New Approaches to recruitment

Walk-in: A walk-in interview is a job screening that happens without an appointment or scheduled meeting.
They are common at career fairs and informal meet-and-greet sessions, and they conduct various tests and
interviews. Employers may offer candidates a job at the end, but more often than not, the meetings are used
as a way to quickly narrow down the applicant pool. Top candidates are often invited for a more formal

interview at a later date.

Consult-in: The busy and dynamic companies request the potential job seekers to approach them personally
and consult them regarding the jobs. The companies select the suitable candidates form among such
candidates through the selection process.

Head-Hunting: The Company’s request the professional Organisations to search for the best candidates
particularly for the senior executive positions. The professional Organisations search for the most suitable
candidates and advise the company regarding the filling up of the positions. Head hunters are also called as
search consultants.

Body shopping: Professional Organisations and hi-tech training institutes develop a pool of human
resources for the possible employment. The prospective employers contact these organizations to recruit
the candidates. Otherwise, the organizations themselves approach the prospective employees to place their
human resources. These professional and training institutions are called body shoppers and these activities
are known as body shopping. The body shopping is used mostly for computer professionals.

Business alliances: Business alliances like acquisitions, mergers, and take-overs help in getting resources.
In addition, the companies do also have alliances in sharing their human resources on ad-hoc basis. It does
mean that, the company with surplus human resources offers the services of their employees to other needy
organizations.

E-recruitment: The technological revolution in telecommunication helped the Organisations to use the
internet as a source of recruitment. Organisations advertise the job vacancies through the World Wide Web
(www) internet. The job seekers send their applications through email or internet. Alternatively, job seekers
place their CVs in the world wide web/internet, which can be drawn by the prospective employers
depending upon their requirements.

Advertising
A classic employment recruitment technique is the "help wanted" advertisement in your local newspaper.
While you can still utilize this form of recruitment, an online ad can be more cost-effective and reach a
broader audience. Ads placed on job websites or on your business website can draw potential employees
from a wider geographic area. For targeted recruitment, you can place ads on industry specific job boards.

Career Fairs

 For entry-level jobs, career fairs can help you recruit recent graduates and individuals who want to change
careers. Some colleges and universities sponsor on-campus career fairs that can help you recruit well-
educated employees for your business. Job fairs also provide an easy way to collect resumes to help fill
future vacancies.
Database

 Maintain a database or filing system for potential employees based on resumes collected at career fairs,
from your website or from manual submissions. When looking to fill a vacancy, review your file of resumes
for potential applicants and send queries to possible candidates. This recruitment method can help fill
vacancies faster at a lower overall cost than starting a fresh recruiting effort.
Employment Agencies

 If you are searching for employees with specific skills, you may want to work with a recruiting agency
that screens and potentially tests applicants based on the skills you require. While the initial cost of utilizing
an employment agency may be high, the long- term reward of a well-placed, highly capable employee can
be greater than the initial recruitment cost.
Internal Recruiting

 Internal recruiting is an effective method of filling vacancies. Existing employees have an established
track record that can be matched to a current vacancy. Even if the employee needs some additional training
to fulfill all the position requirements, companies gain valuable employee relation benefits by hiring from
within. Promoted employees may demand lower compensation than those hired from external sources; in
addition, you decrease turnover by providing advancement opportunities.
 Employee Referrals

Your existing employees can be a great source of providing recruitment referrals. They may know of a good
match for a vacancy that would not respond to more traditional recruitment methods. Many potential
employees are working for other companies and are not actively looking for employment, but may be
enticed to change employment for the right opportunity. You should encourage employee referrals by
providing bonuses for all new hires employed based on a referral.
Selection Definition
The process of interviewing and evaluating candidates for a specific job and selecting an individual
for employment based on certain criteria. Employee selection can range from a very simple process to a very
complicated process depending on the firm hiring and the position. Certain employment laws such as anti -
discrimination laws must be obeyed during employee selection. “Selection is the process of choosing

among the candidates from within the organization or from the outside, the most suitable
personfor the current position for the future position” ‘Koontz’.“Objective of selection decision
is to choose the individual who can most successfully perform the job from the pool” .

Selection Procedure is not a single act but is essentially a series o methods or stages by which
different types of information can be gathered through various selection techniques. At each step,
facts may come to light which are useful for comparison with the job requirement & Employment
specifications information’s required to be collected are

• Candidate’s qualification . Nature and Behavior

• Experience . Knowledge
• Physical & Mental ability . Aptitude
Methods of
(a) Tests:
1. Aptitude Tests:
– Mental or Intelligence test
– Mechanical test
– Psycho-motor test
2. Achievement Tests:

- Job Knowledge test

- - Work sample test
3. Personality Tests:
— Objective test
— Projective test
— Situation test
4. Interest Tests:
(b) Interviews
1. Informal Interview
2. Formal Interview
3. Patterned or Structured Interview
4. Non-Directed or Unstructured Interview
5. Depth Interview
6. Group Interview
7. Stress Interview
8. Panel or Board Interview
Steps in scientific selection procedure / process
(i) Job Analysis
(ii) Recruitment
(iii) Application form
(iv) Written examination
(v) P r e l i m i n a r y In t e r v i e w
(vi) Business Games
(vii) Tests
(viii) Final interview
(ix) Medical Examination
(x) Reference
(xi) Li ne m an a ge rs deci s i on
(xii) Job offer
(xiii) Employment
Job Analysis: Is the basis for selecting the Right candidate. Organisations to finalise, job analysis,
Job description, job specifications, & Employee specifications before proceeding to the next step
of selection

Human Resources Plan: Every company plans for the required number & kind of employees for
a future date. This is the basis for Recruitment function.

Recruitments: Process of searching for prospective employees and stimulating them to apply for
jobs in an organisation. It is the basis for the remaining techniques of the selection.

Development of Bases for selection: To select appropriate candidates from the Applicants pool,
towards this the organisation may borrow / Adopt Techniques/ Bases.

Application Form: A traditional method of securing information from the prospective candidates
also can be used for screening candidates at Preliminary level. Information to be covered in an
Application form is

(i) Personal Background information

(ii) Educational Attainments.
(iii) Work experience
(iv) S a l a r y
(v) Personal details
(vi) References.
Written Examination: Conducted for the qualified candidates after they are screened on the basis
of application blanks enables to make sure the candidates ability in

(i) Aptitude, (ii) Reasoning (iii) Knowledge in various disciplines (iv) General
Knowledge, (v) English Knowledge.

Preliminary Interview:

- To gather necessary information from the prospective applicants and to

assess the applicants suitability to the job.
-- Information provided by candidates may be related to job or personal

specifications regarding Education- Experience — salary expected — aptitude

towards the job- Age Physical Appearance other physical requirements.
– –

- - A process useful in eliminating undesirable/unsuitable candidates.

-- If candidate satisfy most of the areas of job requirements, he may be
selected for further process.
Also known as stand-up interviews or screening interviews.
- Also useful in providing basic information about company to candidates
Caution Care to be taken to ensure that desirable ones are not eliminated.
–

BUSINESS GAMES:

• Are widely used as a selection techniques for selecting management

trainees, Managerial personnel at junior, middle & Top positions
a Help to evaluate applicants in the areas of
- Decision making

- Identifying the potentialities

- Handling the situation
- - Human relations skills etc
a Technique Adopted Generally
P art i ci pant s are pl a c ed i n a h ypot het i cal work si t uat i on and a re requ es t ed
to play the role situation in the game.

The Hypothesis: The most successful candidates in the game will be the most successful ones on
the job in the selection process.

Business games and their utility

(i) Case Study : Analytical job general or decision making skills

(ii) Role Play : Human Relations skills

(iii) In-Basket Method: Situational judgment, social relations

(iv) Sensitivity :Degree of openness, concern to others Tolerance

for Individual Differences.
(v) Simulations :Encountering, Situation analysis skills.

Group Discussion: A method where groups of successful applicants are brought around a
conference table and are asked to discuss a case study or a subject matter.

 A technique used to secure further information regarding the suitability of the candidate for
the job.
 Candidates in the group are required to analyse, discuss and alternative solutions and select a
sound solution.
 A selection panel observes the candidates in the areas of

 Initiating discussion – Explaining the problem,

 - Soliciting unrevealing information based on given information and using common sense.

 - Keenness to observe discussion of others.

 - Clarifying controversial issues – Influencing others
 - Speaking effectively

 -Concealing and mediating arguments among the participants and summarizing or

concluding aptly.
 - Selection panel, based on the observation judges candidate’s skills and ranks them
according t heir merit.

 - In some cases the selection panel may also ask the candidates to write the summary of
the group discussion in order to know the candidates writing ability as well.

Placement:
Meaning
Placement is the process of assigning a specific job to each of the selected candidates. It involves assigning
a specific rank and responsibility to an individual. It implies matching the requirements of a job with the
qualifications of the candidate.

Induction/Orientation
Induction
It is the process of receiving and welcoming an employee when he joins a company and giving him the
information about the company.An applicant after being hired, he/she must be inducted and placed a
chosen j ob.

Induction or orientation conveys 3 types of information

1. A review of the organization’s history, founding fathers, objectives, products, services as
well as how the employee’s job contributes to the organisation needs.

2. General information about the daily work routine.

3. A detailed presentation, perhaps in a Boucher of the organisation policies, work rules and
employee benefits.
Purpose / need of Induction (Objectives)
1. Many organizations are known to spend a few weeks / months on orientation
Programmes.
2. The ides is the make the new employees feel at ‘home’ in the new environment.
3. New employee will be anxious about their jobs, colleagues, superiors and company rules to remove, this
fear / anxiety, orientation programmes are required.

4. The adjustment of the employee to the company depends on the expectations from the jobs / holders.
5. It expectations are high, adjustment is difficult. It expectations are moderate, adjustment is comfortable.
Topics covered in the Induction Programmes:
1. Organizational Issues: History, organisation details, names and titles of top management,
employees Title and department layout of the company, probationary period,
products/services, overview of production company policies and rules, discipline,
employee, handbook, safety procedure.
2. Employee Benefits: Pay scale, leave, training and education benefits, Insurance benefits,
Retirement programs, other benefits.
3. Introduction: To superior, co-workers, subordinates, training and others.
4. Job Details: Job location, job tasks, job objectives, relationship to other jobs.
Types of Induction:
1. formal or informal
2. individual or collective
3. serial or disjunctive
Induction Problems:
1. Untrained supervisors
2. Incapable employee
3. Wrong placements
4. Trial induction
5. Formalities or Induction
Human Resource Management 14MBA21

Internal Mobility
Internal mobility (mobility or talent mobility) is a dynamic internal process for moving talent from
role to role – at the leadership, professional and operational levels. To achieve internal mobility,
companies must adopt the principles of succession management at all ranks; provide transparent
discussion of skills and potential, as well as organizational needs; and, focus on development across
critical talent pools, based on business needs.
Transfers
A transfer involves a change in the j ob, place of the job of an employee without a change in
responsibilities or salary. Transfer is a regular procedure in banks and other government
establishments. E.g. once in 3 years, a bank employee is transferred. Transfer is different from
promotion. Transfers do not accompany with salary like or responsibility change. Transfers are
frequent but promotions are not frequent.

Reasons for transfer

The reasons for transfers vary from organisation to organisation and from individual to
individual within an organisation. Generally speaking the following are the reasons for transfers.
 There is a shift (transfer) from the department of surplus employees to the department of
shortage of employees to maintain a balance.
~ To remove the incompatibility between a workers & a boss or between coworkers.
 Correction of faulty initial placement of a worker.
 Based on the interests & capabilities of an individual, transfer is ordered.
 To remove the effect of monotony of an employee’s job & less productivity.
 Employees health may be a problem in a particular department (working conditions)
 Family issues, female employees request for the transfer to place where her husband is
living
Principles of transfers
The organisation should frame a transfer policy & execute the transfer function accordingly
.Such a policy must be based on the following principles
 The frequency of transfers & minimum gap between the transfers should be decided, so that the
employees are prepared for it.
 The decision on the authority of the transfers should be carried out. Usually the department
head carries out the transfers. But it should be centralized to the HR department.
 The criteria for transfers should be strictly followed.
 Transfers should be clearly defined as permanent or temporary.
 The effect of transfers on the salary & others benefits should be clearly evaluated.
 Employee’s interests & capabilities should be taken care while transferring him for better
results.
 • Transfers should be carried out in the interest of the organisation (to achieve organizational
objectives)
Types of transfers
1) Production transfers:
A shortage or surplus of the labour force is common in different departments in a plant or several
plants in organisation. The surplus labour is shifted to the labour shortage department. E.g. new
projects, new products, new models.
2) Replacement transfers:
In this type, a junior employee may be replaced by a senior employee to avoid laying off the
senior employee.
3) Versatility transfers:
They are carried out to make employees versatile & competent in more than one skill. E.g. Bank
employees are transferred from one section to another over a period of time so that they may
acquire the necessary skills to attend to the various activities of the bank.
Versatile operations are useful at the time of rush hours E.g. from credit card section to Loan
Section.
4) Shift transfers:
Industrial establishments operate for more than one shift. Transfers between shifts are common,
on a rotation basis. Transfers are also carried out according to an employee’s request. E.g. From
day shift to night shift & vice versa.
5) Remedial transfers:
Remedial transfers are also called personal transfers as they are requested by the employee’s.
E.g. the initial placement of an employee May be faulty or the worker may not along with his
/her superior or with coworkers. The health problem/accident, stagnancy demands a transfer.
Promotion
It is an improvement in pay, prestige, position and responsibilities of an employee within his/her
organisation. Promotion increases the responsibility and salary, apart from better working hours,
better location & pleasant working conditions. A promotion is the ultimate achievement for some
employee and hence they achieve it through hard work & good performance. But some employees
follow short cut path to achieve the desired goal. Some employees refuse to be promoted as, they loose
their overtime incentives, and they also refuse because of added responsibilities.

Objectives of promotion
To maintain employees for higher productivity.
1. To attract and retain the services of qualified and competent people.

2. To recognize and reward the efficiency of an employee.

3. To increase the effectiveness of an employee and of the organisation.
4. To fill up higher vacancies from within the organisation.
5. To build loyalty, morale and a sense of belongingness in the employee.
6. To improve upon others that opportunities are available to them. If they perform well.
Basis/principles of promotion
Promotion is a double edged weapon. If handled carefully. It contributes to employee satisfaction and
motivation. If mishandled, it leads to discontentment, frustration, skepticism & other problems among
employees and ends up with a high rate of labour turnover. Hence it is the responsibility of HR
department to frame a sound (proper) promotional policy and ensure its implementation. The
promotion policy should be clear on the following matter.

A) The management must make it clear whether to fill up higher positions by internal promotions or
recruit people from outside. Generally speaking top positions in an organisation are filled through
external recruitment. The lower positions are filled up by promotions from within.
B) A further decision on the basis of promotion should be determined, whether the promotions are based
in seniority or merit or both.
C) Policy of promotion against vacancies or non-vacancies time bound promotions is given &
sometimes vacancies are created to avoid frustration among aspirants for promotion.
D) A promotion policy should establish a well-defined chest which shows the clear path of
promotions.
E) Frequent promotions are not advised because an employer has to pay more salary and an employee
does not response to sudden promotions.
F) A job analysis and performance appraisal should be followed by promotions. Job analysis provides the
information of job demands performance appraisal enables the management, to know the suitability of
the employee with the job.
G) The promotion policy should be discussed with labour unions & their acceptance should be in
order to avoid conflict.
H) Proper opportunities & publicity should be given to the merit based promotion.
Seniority as the basis for promotion:
An employee with the longest period of service will get promoted, Irrespective of his merit. This
practice is followed in unionized industrial establishments, governments sectors.
Merits
1. Easy to administer.
2. Labour unions welcome seniority based promotions.
3. Less argument for fixing seniority criteria.

4. Seniors are more experienced.

5. Subordinates are more willing to work under a senior boss with good experience.
6. Loyalty is rewarded.
Demerits
1. Merit is discouraged
2. Young & competent people may get frustrated and might leave the organisation
3. Results of promotions may not be Upto the work.
Merit based promotion
An employee based on his merit is promoted by hard work and dedication.
Merits
1. Efficiency is encouraged, recognized & rewarded
2. Competent people are retained & they have better prospects.
3. Productivity increases
Demerits
1. Unhappy senior employees & they may refuse to work under a younger boss.
2. Scope for favoritism.
3. Loyalty & strength of service are not rewarded.
4. Opposition from union leaders.
In the non-unionized companies, merit based promotions are given because such companies are having
the pressures of union.

Seniority for promotion should be considered only when there are more than one aspirant of equal
merit.
Types of Promotion
1. Horizontal promotion:
This type of promotion involves an increase in responsibility & pay and a change in designation, but
with the same job classification. E.g. Lower division clerk is promoted to the position of upper
division clerk. Here the job type of clerk remains the same.

2. Vertical promotion:
This type of promotion results in greater responsibility, prestige & pay together with a change in the
nature of the job. E.g. an officer promoted as a manager. The job type is different, in this type of
promotion.

3. Dry promotion:
It merely increases pay & a change in designation. But the responsibilities do not change or increase.
E.g. engineers to senior managers

Demotion and Employee Separation.

A demotion is a compulsory reduction in an employee's rank or job title within the organizational
hierarchy of a company, public service department, or other body. A demotion may also lead to the
loss of other privileges associated with a more senior rank and/or a reduction in salary or benefits. An
employee may be demoted for violating the rules of the organization by a behavior such as excessive
lateness, misconduct, or negligence. In some cases, an employee may be demoted as an alternative
to being laid off, if the employee has poor job performance or if the company is facing a financial
crisis. A move to a position at the same rank or level elsewhere in the organization is called a lateral
move or deployment. A voluntary move to a lower level is also a deployment as it is not a compulsory
reduction in level.is often misinterpreted simply as the opposite of a promotion, however it is only one
means of undergoing a reduction in work level.

Employee separation
According to Yoder, separation is a negative recruitment. It may be in the form of
resignation,
Dismissal or discharge, suspension, retrenchment or lay-off.
Employee separation is a sensitive issue for any organization. Usually, an employee leaves the
organization after several years of service. Thus, the permanent separation of employees from an
organization requires discretion, empathy and a great deal of planning. Employee may be
separated as consequence of resignation, removal, death, permanent incapacity, discharge or
retirement. Employee may also be separated due to the expiration of an employment contract
or as part of downsizing of the workforce. Organizations should never harass the employees,
especially in the case of resignation, just because they are quitting the organization. In fact, a
quitting employee of the organization must be seen as a potential candidate of the future for
the organization and also the brand ambassador of its HR policies and practices. However,
many organizations are still treating their employees as "expendable resources “and discharging
them in an unplanned manner whenever they choose to do so.Each organization must have
comprehensive separation policies and procedures to treat the departing employees
equitably and ensure smooth transition for them.Further, each employee can provide a
wealth of information to the organization at the time of separation. Exit interviews can be
conducted by the HR department to ascertain the views of the leaving employees about
different aspects of the organization, including the efficacy of its HR policies.