QUESTION BANK ANSWERS – Module 5

Q1. Explain the advantages and disadvantages of internal sources of recruitment.

Ans. Internal sources of recruitment consist of employees who are already on the payroll of a firm. It also
includes former employees who have returned to work for the organization. Recruitment from internal
sources is done to fill up vacancies through promotion, re-hiring and transferring employees within the
company. These sources are as follows:

 Present Employees: Promotions and transfers from among the present employees can be a good
source of recruitment. Promotion implies upgrading of an employee to a higher position carrying
higher status, pay and responsibilities. Promotion from among the present employees is
advantageous because the employees promoted are well acquainted with the organisational
culture, they get motivated, and it is cheaper also. Promotion from among present employees
also reduces the requirement for job training. However, the disadvantage lies in limiting the
choice to a few people and denying hiring of outsiders who may be better qualified and skilled.
Furthermore, promotion from among present employees also results in inbreeding which creates
frustration among those not promoted. Transfer refers to shifting an employee from one job to
another without any change in the position/post, status and responsibilities. The need for transfer
is felt to provide employees a broader and varied base which is considered necessary for
promotions. Job rotation, involves transfer of employees from one job to another on the lateral
basis.
 Former Employees: Former employees are another source of applicants for vacancies to be filled
up in the organisation. Retired or retrenched employees may be interested to come back to the
company to work on a part-time basis. Similarly, some former employees who left the
organisation for any reason may again be interested to come back to work. This source has the
advantage of hiring people whose performance is already known to the organisation.
 Employee Referrals: This is yet another internal source of recruitment. The existing employees
refer their family members, friends and relatives to the company as potential candidates for the
vacancies to be filled up in the organisation. This source serves as one of the most effective
methods of recruiting people in the organisation because employees refer to those potential
candidates who meet the company requirements known to them from their own experience. The
referred individuals are expected to be similar in type in terms of race and sex, for example, to
those who are already working in the organisation.
 Previous Applicants: This is considered as internal source in the sense that applications from the
potential candidates are already lying with the organisation. Sometimes, the organisations
contact through mail or messenger these applicants to fill up the vacancies particularly for
unskilled or semi-skilled jobs.

The advantages of the internal sources of recruitment include the following:

 Familiarity with own employees: The organisation has more knowledge and familiarity with the
strengths and weaknesses of its own employees than of strange and unknown outsiders.

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  Better use of the talent: The policy of internal recruitment also provides an opportunity to the
organisation to make a better use of the talents internally available and to develop them further
and further.
 Economical Recruitment: In case of internal recruitment, the organisation does not need to spend
much money, time and effort to locate and attract the potential candidates. Thus, internal
recruitment proves to be economical, or say, inexpensive.
 Improves Morale: This method makes employees sure that they would be preferred over the
outsiders as and when vacancies will be filled up in their organisation.
 A Motivator: The promotion through internal recruitment serves as a source of motivation for
employees to improve their career and income. The employees feel that organisation is a place
where they can build up their life-long career. Besides, internal recruitment also serves as a
means of attracting and retaining competent employees in the organisation.

The disadvantages are as follows:

 Limited Choice: Internal recruitment limits its choice to the talent available within the
organisation. Thus, it denies the tapping of talent available in the vast labour market outside the
organisation. Moreover, internal recruitment serves as a means for “inbreeding”, which is never j
healthy for the future of the organisation.
 Discourages Competition: In this system, the internal candidates are protected from competition
by not giving opportunity to otherwise competent candidates from outside the organisation. This,
in turn, develops a tendency among the employees to take promotion without showing extra
performance.
 Stagnation of Skills: With the feeling that internal candidates will surely get promoted, their skill in
the long run may become stagnant or obsolete. If so, the productivity and efficiency of the
organisation, in turn, decreases.
 Creates Conflicts: Conflicts and controversies surface among the internal candidates, whether or
not they deserve promotion.

Q2. Discuss the steps to be taken in a recruitment process.

Ans. The five steps involved in recruitment process are as follows:

(1) Recruitment Planning: The first step involved in the recruitment process is planning. Here, planning
involves to draft a comprehensive job specification for the vacant position, outlining its major and minor
responsibilities; the skills, experience and qualifications needed; grade and level of pay; starting date;
whether temporary or permanent; and mention of special conditions, if any, attached to the job to be
filled.”
(2) Strategy Development: Once it is known how many with what qualifications of candidates are
required, the next step involved in this regard is to devise a suitable strategy for recruiting the candidates
in the organisation. The strategic considerations to be considered may include issues like whether to
prepare the required candidates themselves or hire it from outside, what type of recruitment method to
be used, what geographical area be considered for searching the candidates, which source of recruitment

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to be practiced, and what sequence of activities to be followed in recruiting candidates in the
organisation.
(3) Searching: This step involves attracting job seekers to the organisation. There are broadly two sources
used to attract candidates.
(4) Screening: Though some view screening as the starting point of selection, we have considered it as an
integral part of recruitment. The reason being the selection process starts only after the applications have
been screened and shortlisted. Let it be exemplified with an example. In the Universities, applications are
invited for filling the post of Professors. Applications received in response to invitation, i.e., advertisement
are screened and shortlisted on the basis of eligibility and suitability. Then, only the screened applicants
are invited for seminar presentation and personal interview. The selection process starts from here, i.e.,
seminar presentation or interview.
(5) Evaluation and Control: Given the considerable cost involved in the recruitment process, its evaluation
and control is, therefore, imperative. The costs generally incurred in a recruitment process include:
 Salary of recruiters
 Cost of time spent for preparing job analysis, advertisement
 Administrative expenses
 Cost of outsourcing or overtime while vacancies remain unfilled
 Cost incurred in recruiting unsuitable candidates

Q3. Point out the advantages and disadvantages of external sources of environment.

Ans. The following are the main advantages:

1. Open Process: Being a more open process, it is likely to attract large number of applicants/
applications. This, in turn, widens its options of selection.
2. Availability of Talented Candidates: With large pool of applicants, it becomes possible for the
organisation to have talented candidates from outside. Thus, it introduces new blood in the
organisation.
3. Opportunity to select the best candidates: With large pool of applicants, the selection process
becomes more competitive. This increases prospects for selecting the best candidates.
4. Provides healthy competition: As the external members are supposed to be more trained and
efficient. With such a background, they work with positive attitude and greater vigour. This helps
create healthy competition and better work environment in the organisation.

However, the external sources of recruitment suffer from certain disadvantages too and they are:

1. Expensive and Time Consuming: This method of recruitment is both expensive and time
consuming. There is no guarantee that organisation wall get good and suitable candidates.
2. Unfamiliarity with the Organisation: As candidates come from outside the organisation, they are
not familiar with the tasks, job nature and the internal scenario of the organisation.

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 3. Discourages the Existing Employees: Existing employees are not sure to get promotion. This
discourages them to work hard. This, in turn, boils down to decreasing productivity of the
organisation.

Q4. Discuss the methods of recruitment.

Ans. The techniques of recruitment are divided into these three categories:

a) Direct Method
b) Indirect Method
c) Third Party Method

Direct Recruitment

 Campus Recruitment: In this method the employer go to different campus, business, school,
college and universities, in this case the employer ask the student what are the expected and
required tasks to be performed arranged interview in campus select the best available manpower
for job commonly known as campus selection.
 Internship: “Internship offered by industrial enterprise constitutes an effective recruiting
technique.” Many Government College and universities made it compulsory before joining any
job, sometime the organization may promise for regular job and permanent job. If they are
satisfied and impressed with the performance of employee at internship.
 Walk in Interview: In this case the employer may ask to submit the resume to the respective
organization usually advertisement given in newspaper after interview candidate may be
appointed or rejected.

Indirect Recruitment

In this method media help for selection of recruiting people with the help of print media inform of
“Situation Vacant.” It usually contains the name of organization, required qualification and experience
sometime pay scale also. Different news paper has a different day for the situation vacant. But they take
charge from the organization for the same.

Third party

Here the people are being recruited with help of third party with help of third party companies like job
placement, employment agencies, and management consultant. The organization approaches to different
job placement, Employment agency and management consultant for required employee and candidate. E-
Recruitment is a new phenomenon in which the applicant and organization are directly in touch with each
other through the Internet.

Q5. Discuss the types of selection tests for candidates.

Ans. Candidates may have to undertake selection tests to establish their claim for the job. These tests are
based on the assumption that, human behaviour in an actual work situation can be predicted by sampling
it.

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Selection tests are classified into these six types:

(i) Aptitude Tests: Aptitude means the potential which an individual has for learning the skills
required to do a job efficiently. Aptitude tests measures an applicant’s capacity and his ability
to learn a given job if given adequate training. These tests are the most promising indices for
predicting employee’s success. Aptitude tests can be divided into general and mental ability
or intelligence tests and specific aptitude tests such as mechanical aptitude tests, clerical
aptitude tests, etc.
 Intelligence Tests: These tests are used to measure a person’s capacity for reasoning
and comprehension in terms of his memory, mental alertness, vocabulary, and
grasping capacity. A candidate’s IQ or mental alertness can be estimated through
intelligence tests. The test consists of logical reasoning ability, data interpretation,
comprehension skills and basic language skills. Though these tests are accepted as
useful ones, they are criticized to be against deprived sections of the community.
 Mechanical Aptitude Tests: These tests deal with the ability of the candidate to do
mechanical work. They are used to judge and measure the specialised knowledge,
perceptual speed and problem solving ability. These tests are useful for selecting
apprentices, skilled mechanical employees, technicians, etc.
 Psychomotor Tests: These tests judge abilities like manual dexterity, motor ability and
eye-hand coordination of candidates. These tests are useful to select semiskilled
workers and workers for repetitive operations like packing, watch assembly, quality
inspection, etc.
 Clerical Aptitude Tests: These tests measure specific capacities involved in office
work, like spelling, computation, comprehension, copying, word measuring, etc.
(ii) Achievement Tests: The candidate’s achievement in his career is tested regarding his
knowledge about the job and actual work experience. These tests are more useful to measure
the value of specific achievement when an organization wishes to employ experienced
candidates.
 Job Knowledge Tests: Under this test, a candidate’s knowledge is tested for a
particular job. For example, if a junior lecturer applies for the job of a senior lecturer
in Economics, he may be tested in job knowledge where he is asked questions about
microeconomics, macroeconomics, central bank, etc.
 Work Sample Test: Under this test a portion of the actual work is given to the
candidate as a test and the candidate is asked to do it. If a candidate applies for a post
of a lecturer in Management, he may be asked to deliver a lecture on Management
Information System as work sample test.
(iii) Situational Tests: These tests evaluate a candidate in a similar real life situation. In these tests,
the candidate is asked either to cope with the situation or to solve critical situations of the
job.
 Group Discussion: Under this test, candidates are observed in the areas of leadership,
proposing valuable ideas, conciliating skills, oral communicating skills, coordinating
and concluding skills.
 In Basket: Situational test is also administered through ‘in basket’. The candidate, in
this test, is supplied with actual letters, telephone and telegraphic message, reports

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 and requirements by various officers of the organization. The candidate is asked to
take decisions on various items based on the in basket information. The candidate is
then evaluated by the decisions he took, during the test.
(iv) Proficiency Tests: Proficiency tests seek to measure the skill and abilities which the candidate
already possesses at the time of testing. Trade tests or skill tests are examples of proficiency
tests. They determine whether the claims made by the candidate about his skills and abilities
are proved by his actual test performance.
(v) Interest Tests: Interest tests identify patterns of interest, that is, areas in which the individual
shows special concern, fascination and involvement. These tests will suggest what types of
jobs may be satisfying to the employees.
(vi) Personality Tests: Personality tests are aimed at finding out emotional balance, maturity,
temperament, etc., of the candidate. It is very difficult to design and use these tests as they
are concerned with discovering clues to an individual’s emotional reactions, maturity, etc.
Personality tests have disadvantage in the sense that they can be faked by sophisticated
candidates and most candidates give socially acceptable answers. Further, personality tests
may not successfully predict job success.

Q6. If properly handled, what good do you think the process of placement can do for the organisation?

Ans. It is necessary that every organisation should have the proper placement scheme which ensures that
right man is placed at the right place in the organisation. The new employees should be placed at the jobs
which fit with them. Placement is a process of matching the jobs and the individual and placement occurs
when the individual is assigned with the particular job. In the simple words placement is concerned with
the sending of newly selected personnel to some department for work. It is also concerned with the
assignment of authority and responsibility to the new comer in the organisation. Placement can do the
following for the organisation:

 Improves the morale of the employees

 Reduces employee turnover
 Decreases accident rates
 Enhances labour productivity
 Clarifies expectations

Q7. Define employee placement and induction.

Ans. When the candidate is selected for a particular post and when he reports to duty, the organization
has to place him or her in the job for which he or she is selected which is being done through placement.
Placement is the act of offering the job to a finally selected candidate. It is the act of finally assigning the
rank and responsibility to an employee, identifying him with a particular job. In the words of Pigors and
Myers, “Placement is the determination of the job to which an accepted candidate is to be assigned and
his assignment to that job. It is a matching of what the supervisor has reason to think he can do with the
job demands. It is a matching of what he imposes in strain, working conditions and what he offers in the
form of pay roll, companionship with others, promotional possibilities etc.”

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Employee Induction and Orientation, the words are often used synonymously though they are different in
meaning and application. Induction refers to the process of introducing a new comer to his employer/
company and work environment. In the words of John M. Ivancevich, “Orientation is a term used for the
organizationally sponsored, formalized activities associated with an employee’s socialisation into the
organisation.”

Billimoria has defined orientation as a technique by which a new employee is rehabilitated into the
changed surroundings and introduced to the practices, policies, and purpose of the organisation.

Q8. External Sources are a cost-effective method of finding recruitment. State True or False.

Ans. False

Q9. Deputation as a source of recruitment is often practiced in private organisations. State True or
False.

Ans. False

Q10. Explain the induction in Indian companies with an example.

Ans. Induction in Indian companies

Citibank:

At Citibank, trainees spend the first two and a half weeks learning about the bank’s three major levels of
business- the corporate bank servicing institutional clients, the consumer bank serving individual
customers and personalized service besides the functional divisions within each. The business head,
thereafter, will make a presentation (question answer session, discussions, case studies film, etc used)
offering general information about the services offered by the bank. Simulation exercises follow this
presentation. Trainees for instance are made to role play the clearance of an overdraft cheque. Through
interaction with peers, trainees learn about the processes and methods followed at Citibank. The trainees
are assigned a specific job in the third week. A mentor will help the trainee discharge the given
responsibilities in a proper way. The trainee is now given freedom to carry out the task as per his
understanding. During this period, the inductees are neither given fixed hours nor a time to sign in every
morning. The idea is to allow freedom to the trainees so that he can bring his own personality and set of
skills to his job. The trainee has to find his way of achieving a given objective in the process; the induction
training also becomes a test of independence –a quality that is highly required of managers in Citibank.
Meanwhile the mentor offers help wherever required. After spending two months on the job the trainees
attend classroom learning sessions conducted at the Asia Pacific banking Institute in Singapore.

Q11. Explain the main steps in the induction programme.

Ans. All the contents of the induction programme are arranged into the three phases which are discussed
subsequently. Formal induction programme is carried out by the HR specialists through leaflets, lectures,

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seminars and conduct tours for a couple of days/weeks. The induction may spread over periods of time
ranging from a few days to a few weeks even months.

It consists of three steps mainly:

 General orientation by the staff: It gives necessary general information about the history and the
operations of the firm. The purpose is to help an employee to build up some pride and interest in
the organization.
 Specific orientation by the job supervisor: The employee is shown the department and his place
of work; the location of facilities and is told about the organization’s specific practices and
customs. The purpose is to enable the employee to adjust with his work and environment.
 Follow-up orientation by either the personnel department or the supervisor: This is conducted
within one week to six months of the initial induction and by a foreman or a specialist. The
purpose is to find out whether the employee is reasonably well satisfied with him. Through
personal talks, guidance and counselling efforts are made to remove the difficulties experienced
by the newcomer.

Q12. What should you keep in mind for a successful induction programme?

Ans. Following steps should be taken for an effective induction programme:

 Prepare a checklist before induction programme: You can include some things like work timings,
introduction of the new employee to other colleagues and team leader.
 Employee training should be covered: Making sure that the employee is properly trained and his
responsibilities are clearly mentioned makes the employee be productive faster.
 Encourage social interaction within the team: First days on the job are usually awkward as
working in a new and strange place can be intimidating. Research proves that social connections
at work boost employee morale and increases productivity within teams. New employees must
feel welcome in their new team.
 Ask for Employee for feedback on the Induction programme: The best way to create an effective
induction process and improve is asking your recent hires to provide feedback on the programme.
Feedback from your recent hires can give you insight on what changes need to be made and how
the induction programme can be made more effective for your next hires.

Q13. Write a short note on Achievement tests.

Ans. The candidate’s achievement in his career is tested regarding his knowledge about the job and actual
work experience. These tests are more useful to measure the value of specific achievement when an
organization wishes to employ experienced candidates.
(a) Job Knowledge Tests: Under this test, a candidate’s knowledge is tested for a
particular job. For example, if a junior lecturer applies for the job of a senior
lecturer in Economics, he may be tested in job knowledge where he is asked
questions about microeconomics, macroeconomics, central bank, etc.
(b) Work Sample Test: Under this test a portion of the actual work is given to the
candidate as a test and the candidate is asked to do it. If a candidate applies
for a post of a lecturer in Management, he may be asked to deliver a lecture
on Management Information System as work sample test.

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Q14. Write a short note on Proficiency tests.

Ans. Proficiency tests seek to measure the skill and abilities which the candidate already possesses at the
time of testing. Trade tests or skill tests are examples of proficiency tests. They determine whether the
claims made by the candidate about his skills and abilities are proved by his actual test performance.

Q15. ______________ tests have disadvantage in the sense that they can be faked by sophisticated
candidates and most candidates give socially acceptable answers.

Ans. Personality