Chapter 2:- Human Resource Planning, Recruitment &

Selection
Meaning of Human Resource Planning:- HRP or HR Planning, is the
process of carefully and scientifically preparing a strategy to ensure the right
people are available at the right time, in the right place, and at the right cost for
the organization.

Definition of Human Resource Planning:- Robbins and Coulter says

“HR Planning is the process by which manager ensures that they have the right
number and right kind of capable people in the right places and at the right
times.”

Importance/Need of Human Resource Planning:-

1. Forecast Future Manpower Needs:- HR planning forecasts the future

manpower needs and helps to select right kind of people at right time for the
right post.

2. Cope With Environment:- HR planning helps to cope with the changes in

internal and external business environment. It helps to face the challenges both
inside and outside the organization.

3. Recruitment And Selection:- HR planning helps the management to recruit and

select highly skilled and talented manpower according to the requirement of the
job.

4. Performance Development:- Human resource helps to enhance the employees'

performance by identifying the training needs and creating development
opportunities according to the requirements of different jobs.

5. Proper Utilization Of Manpower:- HR planning always gives emphasis on

effective utilization personnel in the organization. It also helps to avoid surplus
and shortfalls of human resource.
6. Reduce Uncertainty:- Human resource planning helps to reduce uncertainty
and risks in the business.

7. Goal Achievement:- Proper human resource planning process ensures smooth

operation in the organization which leads to achieve goals and objectives more
effectively.

Objectives/Purpose of Human Resource Planning:

1.To ensure effective use of human resources in the enterprise.

2. To forecast future need of human resource and supply optimum level of

manpower in the organization.

3. To balance the demand and supply of human resource by avoiding surplus or

shortfalls of manpower in the enterprise.

4. To cope with internal and external environmental changes.

5. To provide effective training and development opportunities to the employees

when needed.

6. To reduce risk and uncertainty in the business.

7. To reduce labor turnover rate to ensure higher productivity.

8. To help the management in formulating promotion and transfer policies.

9. To help in developing human resource inventory.

10. To ensure effective control system.

Features of Human Resource Planning

1. Goal-Oriented:- HR planning is a goal-oriented process which helps to supply

right people for the right job to meet the goals and objectives of the organization.

2. Future-Oriented:- Human resource planning helps to determine the future

need of manpower. So, it is futuristic by nature.
3. Continuous Process:- HR planning is a continuous and on-going process till the
termination of the organization.

4. Effective Utilization Of Manpower:- HR planning ensures proper utilization of

human resources according to their skill and capabilities as per the requirement
of the organization.

5. Demand And Supply Of Manpower:- Human resource planning helps to

determine the demand and supply of human resources and adjusts optimum level
of manpower in the company or organization.

6. Dynamic Process:- HR planning is a dynamic process which is updated and

revised according to the need of the organization.

7. Linked To Corporate Plan:- Human resource planning is directly linked with

corporate plans. So, it is formulated at all levels of management.

Scope of Human Resource Planning:

1. It keeps the record of current manpower with the organization.

2. Assessing the future requirements of manpower for organization
objectives.
3. To make the manpower recruitment plans.
4. To phase out the surplus employees.
5. To make a layout of training programme for different categories of
employees.

Need of Human Resource Planning:

1.Shortage of Skills:- these days we find shortage of skills in people. So it is

necessary to plan for such skilled people much in advance than when we actually
need them. Non- availability of skilled people when and where they are needed is
an important factor which prompts sound Human Resource Planning.

2.Frequent Labour Turnover:- Human Resource Planning is essential because of

frequent labour turnover which is unavoidable by all means. Labour turnover
arises because of discharges, marriages, promotion, transfer etc. which causes a
constant and flow in the workforce in the organization.

3.Changing needs of technology:- Due to changes in technology and new

techniques of production, existing employees need to be trained or new blood
injected into an organization.

4.Identify areas of surplus or shortage of personnel:- manpower planning is

needed in order to identify areas with a surplus of personnel or areas in which
there is a shortage of personnel. If there is a surplus, it can be re-deployed, or if
there is a shortage new employee can be procured.

5.Changes in organization design and structure: Due to changes in organization

structure and design we need to plan the required human resources right from
the beginning.

Nature of Human Resource Planning:

1) Continuous Activity:- It is an ongoing activity as the need for assessing the

supply and demand of the manpower resources within the organisation never
comes to an end.

2) Clearly Specified Objectives :- HRP objectives may be guided by the strategic

and operational planning of the organisation. Basically, the needs of the human
resources within the organisation are based on the firm’s objectives HRP also
aims at developing human resources, sharpening the technical skills of resources,
assisting them in planning their career map, retaining them, etc.

3) Assessing the Staff Requirements:- HRP focuses on the pre-planning of the

needs regarding human resources within the organisation. All the proceedings
related to the recruitment, selection and training procedure are planned in
advance.

4) Maintaining Inventory of Existing Human Resources:- It consists of the record

of present human resources. The manager must be aware of the available
manpower supply for fulfilling the higher positions in the future.
Advantages/Benefits of Human Resource Planning

1. Talent Management:- Human resources planning helps manage the talent and
human capital inside an organization. For example, it helps you identify star
performers and offer potential opportunities for their growth. Doing so will add
more value to both the organization and the employee.

2. Training and Development:- HR planning help businesses understand the skill

gaps in the organization, and offer required training support and assistance to the
employees. Doing so enhances business productivity on the one hand and
promotes employee engagement on the other hand.

3. Manage Human Resource Costs:- Human resource planning helps optimize the
cost of talent management in an organization. An efficient plan offers insights on
the right amount of workforce so organizations can minimize leaky spending.

4. Promotes Employee Retention:- Effective human resource planning helps

organizations promote a positive workspace and culture. Doing so helps enhance
job satisfaction which in turn enhances employee retention.

5. Mitigate the Risks and Uncertainties:- Human resource planning helps

organizations mitigate the risks associated with human resource hiring and
allocation. Organizations become equipped to handle external disruptions like
labor shortages, labor law changes, etc. As human resource planning helps
organizations anticipate what is coming, they can prepare themselves better to
handle the challenges.

6. Gain a Competitive Advantage:- As explained earlier, human resources are an

organization’s biggest asset. Efficiently managing the human capital in an
organization helps reduce the costs, which can, in turn, be invested into other
business operations or transferred as cost reductions to customers and clients.
Doing so enhances the competitiveness of your business.

7. Coping With External Changes:- Businesses endure constant changes and

disruptions in the form of technological changes, market conditions, price
changes, etc., impacting workforce requirements. Through human resource
 planning, businesses can spot trends and patterns that increase the organization’s
resilience.

8. Conformity to Regional Compliance:- Regarding human resource management,

each country has its stringent labor laws. The regulatory norms are changed and
updated frequently. Human resource planning helps review the norms and
change the HR policy accordingly.

9. Strategic Workforce Planning:- Human resource planning helps organizations

make strategic succession plans. Investing in proper planning helps organizations
plan succession and promotion to manage the internal disruptions that occur
when employees retire or quit an organization.

10. Align the Human Capital With Business Goals:- Human resource planning
helps align the human capital with the business’s goals, vision, and objectives. As
the team invests concerted effort, they tend to reach the goals faster.

Process of Human Resource Planning

1. Determining the Objectives of Human Resource Planning: The foremost step in

every process is the determination of the objectives for which the process is to be
carried on. The objective for which the manpower planning is to be done should
be defined precisely, so as to ensure that a right number of people for the right
kind of job are selected.The objectives can vary across the several departments in
the organization such as the personnel demand may differ in marketing, finance,
production, HR department, based on their roles or functions.
2. Analyzing Current Manpower Inventory: The next step is to analyze the current
manpower supply in the organization through the stored information about the
employees in terms of their experience, proficiency, skills, etc. required to
perform a particular job. Also, the future vacancies can be estimated, so as to plan
for the manpower from both the internal (within the current employees) and the
external (hiring candidates from outside) sources. Thus, it is to be ensured that
reservoir of talent is maintained to meet any vacancy arising in the near future.
3. Forecasting Demand and Supply of Human Resources: Once the inventory of
talented manpower is maintained; the next step is to match the demand for the
manpower arising in the future with the supply or available resources with the
 organization. Here, the required skills of personnel for a particular job are
matched with the job description and specification.
4. Analyzing the Manpower Gaps: After forecasting the demand and supply, the
manpower gaps can be easily evaluated. In case the demand is more than the
supply of human resources, that means there is a deficit, and thus, new
candidates are to be hired. Whereas, if the Demand is less than supply, there
arises a surplus in the human resources, and hence, the employees have to be
removed either in the form of termination, retirement, layoff, transfer, etc.
5. Employment Plan/Action Plan: Once the manpower gaps are evaluated, the
action plan is to be formulated accordingly. In a case of a deficit, the firm may go
either for recruitment, training, interdepartmental transfer plans whereas in the
case of a surplus, the voluntary retirement schemes, redeployment, transfer,
layoff, could be followed.
6. Training and Development: The training is not only for the new joinees but also
for the existing employees who are required to update their skills from time to
time. After the employment plan, the training programmes are conducted to
equip the new employees as well as the old ones with the requisite skills to be
performed on a particular job.
7. Appraisal of Manpower Planning: Finally, the effectiveness of the manpower
planning process is to be evaluated. Here the human resource plan is compared
with its actual implementation to ensure the availability of a number of
employees for several jobs. At this stage, the firm has to decide the success of the
plan and control the deficiencies, if any.

Limitations or Barriers of Human Resource Planning

1. Uncertainties:- Seasonal employment, labour turnover, absenteeism,

technological changes, and market up-downs are uncertainties, which are always
there while making human resource planning.

2. Inaccurate Forecasting Methods:- Human resource planning involves

forecasting the human resource demand and supply. Various forecasting methods
are not very much accurate. Hence, such forecasts are also not fully accurate. If
the time horizon is very long, there are more chances of inaccuracies. Apart from
that, inaccuracy also increases when the forecasts made for various departments
or divisions are merely aggregated without critical review and are taken to be the
forecast for the whole organisation.
3. Lack of Support from Top Management:- In the absence of support and
commitment from the top-level management human resource department finds
it difficult to obtain information on various vital inputs in human resource
planning such as future growth plans, the introduction of new technology, etc.,
are generally not available. Hence, it is not always possible to develop effective
human resource plans.

4. Inadequate Information System:- In most of the industries in our country

'Human Resources Information System' has not been fully developed, especially
due to the low status given to the personnel department and less importance
attached to human resource planning. Moreover, reliable data relating labour
market, trends in human resources, places etc. are generally not available. Hence,
it is not always possible to develop effective human resource plans.

5. Employee Resistance:- Employees and trade unions also resist human resource
planning as they think that it increases their workload and regulates them
through productivity bargaining. They also believe that human resource planning
prepares programmes for securing manpower mostly from outside, generally by
ignoring internal manpower supply.

6. Employers' Resistance:- Many employers resist human resource planning

because they think that it increases the cost of manpower as trade unions
demand employees based on the plan, for more facilities, and for benefits
including training and development. Moreover, employers feel that human
resource planning is redundant or useless because candidates will be available as
and when required especially due to the severe unemployment situation in India.

7. Time-Consuming and High Cost:- Human Resources Planning is a time-

consuming, complex, and highly cost-oriented exercise. Hence it is feared to fail at
cost-benefit analysis.

8. Lack of Participation and Coordination among Operating Managers:- In many

cases, operating managers look at the whole exercise of human resource planning
with doubt and mistrust. They do not willingly participate in it and do not properly
coordinate with top management and the human resource department.

9. Imbalance between Quantitative and Qualitative focus:- Some firms view

human resource planning as a game of numbers designed to ensure the flow of
people in and out of the firms, exclusively focus on quantitative aspects such as
career planning and development, increase in skill levels through training and
retraining, enhancement of morale, and motivation, etc.

Meaning of Demand Forecasting:- is the process of assessing and forecasting how

many people are needed, their age structure, their professional structure, their
educational level structure, their professional and technical poststructure, and
their skill structure in the future.

Techniques of demand Forecasting:

1. Market Research/Surveying:- The technique in market research is customer

surveys is essential instrument for demand forecasting. Internet surveys have
made it easier than ever to target your audience, and survey software has greatly
sped up analysis.Survey results can teach forecasters a lot that a sales figure
simply cannot. They may assist with marketing initiatives, find opportunities, and
improve your comprehension of the requirements of your target audience. The
following surveys are some of the most well-liked ones among sales and
marketing teams:

Sample surveys are conducted to learn more about the purchasing behaviors of a
small sample of potential clients.

Complete enumeration surveys, which entail speaking with as many prospective

customers as is practical in order to collect a bigger amount of data.

End-user research, which entails asking other businesses for their opinions on
what client's desire.

2. Statistical Approach:- he application of statistical approaches to demand

forecasting is a reliable and frequently cost-effective strategy. The following are
some applications for the statistic approach: Statistical approaches to demand
forecasting is a reliable and frequently cost-effective strategy!

i.Trend Projection:- This is the easiest method for predicting demand. Simply put,
by studying the past, you can predict the future. Obviously, make sure to correct
any errors. For instance, you might have had a momentary fall in sales the year
before as a consequence of a breach into your eCommerce website, or you might
have witnessed a temporary spike in sales the year before as a result of a month-
long viral article about your product. Both of these events are extremely
improbable to happen again, hence they shouldn't be included when identifying a
pattern.

ii.Regression Analysis:- This technique can be used to identify relationships

between the demand for a product or service and external factors (such as price,
time of year, or advertising campaigns).

iii.Time Series Analysis: A quantitative forecasting method called time series

analysis uses historical data to forecast future demand. It is predicated on the
idea that current demand trends will hold true going forward. It is used to predict
short-term and long-term demand.

iv.Market Segmentation: This method can be used to identify what market

segments are most likely to purchase a product or service.

v.Decision Trees: This technique can be used to analyze how different variables
can affect the demand for a product or service.

vi.Simulation Modeling: This method can be used to forecast demand by

simulating different scenarios.

3. Econometric Models:- Econometric models are mathematical models used in

economics and related fields to describe economic systems. They are used to
estimate relationships among economic variables, such as prices, demand, supply,
and consumption. Econometric models are also used to examine the effects of
economic policies. These models are used by economists to forecast economic
trends and to explain and predict economic behavior. Though it may appear
straightforward in theory, the econometric demand forecasting methodology can
actually be extremely difficult. It is mainly because forecasters are rarely able to
run controlled trials where only one variable is changed and the subject's reaction
to that change is evaluated. Instead, econometric calculations are made utilizing a
complex network of connected equations in which all variables are
simultaneously changed. There is a reason that people who aren't just forecasters
adopt this strategy.
4. Composite Sales Force Approach:- Sales personnel predict demand in their
particular territories using a demand forecasting technique known as the sales
force composite, sometimes known as the "collective view." This information is
combined at the branch, region, or area level, and an overall firm demand
projection is made by accounting for the total of all the variables. This "bottom-
up" approach is advantageous because salespeople are situated near to the
market and frequently have first-hand knowledge of customers. When using this
strategy, it's crucial to bear in mind that variables like product price, marketing
campaigns, client affluence, and competition can vary by area. Sales leaders can
gather and distribute this data online using some inventory management
solutions' built-in tools, while others use market research questionnaires to
gather data.

5. A/B Experiment:- There are times when it is possible to study consumer

behaviour through carefully monitored market trials. This includes testing
different campaigns, features, website images or features, email subject lines, and
many other things using A/B methods.If customers strongly prefer one over the
other and are more aware of their preferences, businesses will be better able to
predict demand. For instance, a study found that firms enjoy a boost in sales
when they offer prices with odd final numbers!

6. Delphi Method:- The Delphi method is a qualitative forecasting technique that

relies on the opinions of experts to predict future demand. In a series of rounds,
specialists are questioned about the anticipated demand for various products.
The opinions are then consolidated and used to make a prediction. The Delphi
Method, which was developed by the RAND Corporation and is still commonly
utilized today, is frequently employed in conjunction with an expert opinion. The
Delphi method of forecasting utilises the expertise of subject-matter experts to
anticipate demand.

7. Barometrics:- Three indicators are used in this forecasting technique to identify

trends. Leading indicators attempt to predict future events. For instance, a surge
in complaints from customers about shipping delays or backorders could lead to a
decline in sales. Lagging indicators look back at prior outcomes. For inventory
management purposes, a rise in sales over the previous month can indicate a
tendency that has to be continuously monitored. Coincidental indications are
used to gauge what is happening right now. As an example, real-time inventory
turnover displays continuous sales activity. Each indicator has the potential to
improve inventory planning and supply chain management.

8. Expert Opinion:- Qualitative demand forecasting is a method that relies on

expert opinion and judgment to predict the future demand for a product or
service. It involves collecting opinions from experts in the field and using them to
estimate the future demand. It is used when there is no historical data to use for
forecasting.

Factors affecting Demand Forecasting

1. Economic Conditions:- Economic conditions such as GDP, unemployment rate,

inflation rate, and consumer confidence are key factors that affect the level of
demand for products or services.

2. Competition:- The level of competition in a market can influence the demand

for a product or service. There may be less demand for a good or service if there
is greater competition.

3. Consumer Trends:- Consumer trends can have a major impact on the demand
for a product or service. If consumers are gravitating towards certain products or
services, it can have an effect on the demand for other products or services.
Consumer trends can have a major impact on the demand for a product or
service!

4. Price:- Price is a major factor affecting demand. The demand for a good or
service may decline if its price rises.

5. Availability:- Demand may also be impacted by a product or service's

availability. The demand for a good or service may rise if it is unavailable or in
short supply.

6. Advertising:- Advertising can also have a major impact on demand. A product

or service's demand may rise if it receives extensive advertising.

Types of Demand Forecasting

1. Short-Term Demand Forecasting:- The technique of predicting short-term

demand for a good or service is known as short-term demand forecasting.
Typically, this kind of forecasting is used to make plans for a specific time period,
such the upcoming few weeks or months. It is employed to assist businesses in
making choices regarding production, inventory levels, and price.

Short-term demand forecasting can be done using various methods, such as

Statistical analysis,

Economic models,

Market research and

Customer surveys.

2. Long-Term Demand Forecasting:- An analytical procedure called long-term

demand forecasting is used to foretell future demand for a good or service over a
protracted period of time. It is further used to plan and allocate resources to
meet future demand, and to identify potential opportunities and risks. Long-term
demand forecasting typically utilizes both qualitative and quantitative methods,
such as statistical modeling and market research, to generate accurate and
reliable predictions.

3. Passive Demand Forecasting:- The forecasting method known as passive

demand forecasting uses only previous sales data to project future consumer
demand. Remember that this technique does not incorporate any external factors
such as seasonality, customer preferences, or economic trends, and instead uses
only past sales records to project future demand. Passive demand forecasting
uses only previous sales data to project future consumer demand! Passive
demand forecasting is best suited for companies with relatively stable customer
demand. It is mainly because it does not take into account any changes in
customer preferences or economic conditions.

4. Internal Demand Forecasting:- Businesses utilize the internal demand

forecasting method to forecast future consumer demand for their goods and
services. This forecasting process is based on a variety of factors such as past
sales, industry trends, economic conditions, and customer feedback.
Businesses can use this technique to more effectively plan for their production
and inventory requirements. It further ensures that they have the proper quantity
of goods and services on hand to satisfy client demand.

5. Active Demand Forecasting:- Making projections for future demand for goods
or services is known as active demand forecasting. This type of forecasting
involves analyzing past demand, current market trends, and other data to make
predictions about future demand. It is often used in the retail and manufacturing
industries to help with product planning and inventory management. Active
demand forecasting can help companies make better decisions about how much
to produce or order, when to produce or order, and how to price products or
services.

6. Macro & Micro Demand Forecasting:- Macro demand forecasting involves

predicting the demand for a product or service in the overall economy, while
micro demand forecasting involves predicting the demand for a specific product
or service in a given market. Macro demand forecasting uses macroeconomic
indicators such as population, GDP, income, and spending, while micro demand
forecasting uses market-specific factors such as demographics, local economic
conditions, and product availability. On the other hand, micro demand forecasting
is a method of predicting the demand for products or services in small
geographical areas. It involves considering factors such as customer behavior,
seasonality, competition, and pricing to create accurate, granular forecasts. This
type of forecasting is especially useful for businesses with localized customer
demand, such as retailers, restaurants, and service providers. By using micro
demand forecasting, businesses can better understand customer needs and
anticipate changes in demand, allowing them to make more informed decisions
about inventory, staffing, and marketing strategies.

Meaning of Supply Forecasting:- measures that number of. people likely to be

available from within and outside. an organization, after movements and
promotions, wastage and changes in work hours, and other conditions of work.

Techniques/ Methods of Supply Forecasting:

1.Employee surveys:- This involves gathering information from employees about

their plans for the future, such as their plans to retire or leave the organization.
This method can provide a good estimate of future supply, but may not take into
account changes in employee plans.

2.Demographic analysis:- This involves analyzing demographic data, such as age

and gender, to predict the future supply of employees. This method can provide a
more accurate estimate of future supply, but may not take into account changes
in demographic trends.

3.Workforce analytics:- This involves using data and analytics to predict the
future supply of employees. This method can provide a highly accurate estimate
of future supply, but may require a significant investment in technology and
resources.

Factors affecting Demand Forecasting

1.Customer Seasonal Demand:- Often, we have seen a considerable increase in

demand during festival seasons. Customer inquiries for a product usually rise
multiple-fold during a specific time of the year. Such cyclic boom in an industry is
quite common & businesses usually prep themselves by filling up their inventory
to the max. While this approach might be a hit & miss based on the sales
recorded, a comprehensive framework will involve determinants of seasonality to
make forecasting decisions that will directly impact supply chain processes from
raw material procurement to production to scale of the deliveries. An
organization factoring in user requirements opens itself to multiple marketing
opportunities, eventually leading it to hold good ground in sales figures.

2.Market Competition:- The industry is filled with many players, and the same
competition pushes an establishment to be proactive & retain the majority of the
market percentage when the opportunity arises. Demand also gets affected by
how many enterprises react to the customer's request. This inadvertently leads to
a minute operational space, especially for new entrants who are at the initiation
of their business. In such cases, forecasting gets heavily affected as it's wrought
with risk and runs more on hope than data.

3.Pricing of the Product:- Pricing done well for an item can be one of its major
attractions to its potential user base, and in simpler terms, it is one of the best
marketing strategies to catalyze an appeal for manufactured goods. Demand
forecasting for new products gets its initial momentum in how a company
strategizes its cost. Much of it also concerns the region's economics, whose target
group mean earning is generally the principal deciding factor. Such factors
governing demand forecasting can make or break the future of a new launch, as
its acceptance is driven by how exactly its price appeals to first-time users.

4.Types of Goods:- Every commodity under-planning stage requires an entirely

independent demand estimation framework. Different products, be they
perishable or solid goods, have various estimating measures from short-term to
long-term. The nature of the commodity subsequently creates the consumption
pattern amongst the users, which has a cascading effect on what eventually will
be the company's production guidelines.

5.Geographical Preference:- Every geographical area acts as a unique calling card

for any venture to bring itself up to speed with the popularity of its product &
acquisitions of new end users. A supply chain functioning too gets immensely
benefitted if the promise of a prospective business in an area further lays out the
storage location, shipping cost & potential delivery time. With such an outline
done beforehand, forecasting methods can predict the perfect requisites for an
enterprise to manufacture the goods which is a hit amongst the masses. A zonal
study including headcount & mean income collaborates as an essential factor of
demand forecasting.

6.Technological Advancement:- Every decade or so, we have seen the influence

of technology on how business-as-usual activities are conducted. Such
advancement overhauls the modus operandi of any operation and beckons time
from a stakeholder's perspective. Technological innovations, when tested &
applied on a mass scale, can render the current operations stack less valid. In such
crunch scenarios, demand forecasting for a product becomes extremely
challenging & a shot in the dark for a business.

7.Inaccurate Data Trend:- Estimating demand for an object, whether quarterly,

half-yearly, or annually, requires an organization to work on correct operational
data. A siloed database repository will factually lay out incorrect indications about
the product's reception during its run time. Thus, it becomes imperative for
management to make sure that the lack of relevant statistics doesn't hamper the
astuteness of demand forecasting software.
Meaning of Job Analysis:- is the process of gathering and analyzing information
about the content and the human requirements of jobs, as well as, the context in
which jobs are performed.

Uses of Job Analysis

1.Human Resource Planning:- Job analysis is an analytical process from which we

develop tangible results in the form of the job description and job specification.
These two outcomes i.e. job description and job specification determine the
duties and responsibilities a particular job possesses and the qualifications, skills,
knowledge, and potential required to perform the job respectively. This in turn
determines the demand for various jobs in the organization and the manpower
required to hold them. Accordingly, human resource manager has to plan for
human job resources. This is how job analysis helps in human resource planning.

2.Job Evaluation:- Job evaluation is treated as the third tangible outcome of the
conceptual job analysis. The information provided by the job analysis serves the
purpose of job evaluation i.e. to determine the relative work of the job for fixing
compensation. Here again, the job description and job specification provide a
base for determining the worth of a job to the enterprise and determining the
salary and wages for the job or jobs.

3.Recruitment, Selection and Placement:- A comprehensive job analysis provides

sufficient information in respect of jobs that will most likely be filled up in the
future. Selection of a person for a job necessitates a deep and clear
understanding of the kind of work to be performed and the qualifications,
knowledge, talent, and potential requires for doing it. Job analysis ably provides
all required information facilitating the recruitment, selection, and placement
smoothly in an organization. Here also job specification and job description help,
immensely in matching the job requirements with the knowledge, qualities,
talents, potentials, and skills of the incumbent.

4.Optimum Use of Human Resource:- Every organization wants optimum use of

its human resources to increase productivity. Information from job analysis
furnishes the facts regarding what employees have to do. If they lag behind in
putting up the required efforts which are prescribed by the job description then
the managers take action for improvement so that they put up maximum
required efforts to perform their jobs. The job analysis also helps the employees
understand their own duties and responsibilities towards jobs. This is how
optimum use of human resources is achieved with the help of job analysis.

5.Training and Development:- Training and development is yet another field

where information from job analysis is used. From the requirement of the job, the
manager knows the deficiencies of the jobholders. He then decides to provide
training to the incumbents. Job descriptions and job specifications reveal what is
needed from and in the incumbents to perform a particular job. They came to
know what is being expected to form them accordingly they prepare for carrier
development.

6.Labour Management Relations:- The information gathered from job analysis is

helpful in improving labor-management relations by understanding what is being
expected from the jobholders, by the employees. This can be achieved if
employees are informed about the information from the job analysis.

7.Job Design:- The information generated from the job analysis is of immense
help to the industrial engineers in designing the job through the study of job
elements. The job element is the minute unit into which work can be divided.
Hence it helps in time and motion study, determining work specification, work
measurement, and providing for methods and improvement at the workplace.

8.Safety and Welfare Measures:- The job analysis process discloses the
environment where the job is to be performed. Hazardous and unhealthy
conditions, if any, prevailing at the workplace can be taken care of by providing
adequate safety and welfare measures. Most of the accidents can be thus
avoided.

9.Compensation:- The information collected under job analysis can be used for
determining the wages and salaries of the incumbents. Salaries are to be fixed on
the principle of “equal pay for equal work”. It is also to be noted while fixing
salaries that the jobs of comparable work receive the same pay. All this is possible
because of job analysis.

10.Reduce Frustration:- Job analysis provides factual information relating to the

job and thus reduces the frustration in the minds of those employees who have
imagined high expectations about the job. They are saved from being dissatisfied
or leaving jobs in the middle. Job analysis assures low turnover. It orients new
recruits to their positions.

Process of Job Analysis

1.Identification of Job Analysis Purpose:- Well any process is futile until its
purpose is not identified and defined. Therefore, the first step in the process is to
determine its need and desired output. Spending human efforts, energy as well as
money is useless until HR managers don’t know why data is to be collected and
what is to be done with it.

2.Who Will Conduct Job Analysis:- The second most important step in the
process of job analysis is to decide who will conduct it. Some companies prefer
getting it done by their own HR department while some hire job analysis
consultants. Job analysis consultants may prove to be extremely helpful as they
offer unbiased advice, guidelines and methods. They don’t have any personal likes
and dislikes when it comes to analyze a job.

3.How to Conduct the Process:- Deciding the way in which job analysis process
needs to be conducted is surely the next step. A planned approach about how to
carry the whole process is required in order to investigate a specific job.

4.Strategic Decision Making:- Now is the time to make strategic decision. It’s
about deciding the extent of employee involvement in the process, the level of
details to be collected and recorded, sources from where data is to be collected,
data collection methods, the processing of information and segregation of
collected data.

5.Training of Job Analyst:- Next is to train the job analyst about how to conduct
the process and use the selected methods for collection and recoding of job data.

6.Preparation of Job Analysis Process:- Communicating it within the organization

is the next step. HR managers need to communicate the whole thing properly so
that employees offer their full support to the job analyst. The stage also involves
preparation of documents, questionnaires, interviews and feedback forms.

7.Data Collection: Next is to collect job-related data including educational

qualifications of employees, skills and abilities required to perform the job,
working conditions, job activities, reporting hierarchy, required human traits, job
activities, duties and responsibilities involved and employee behaviour.

8.Documentation, Verification and Review:- Proper documentation is done to

verify the authenticity of collected data and then review it. This is the final
information that is used to describe a specific job.

9.Developing Job Description and Job Specification:- Now is the time to

segregate the collected data in to useful information. Job Description describes
the roles, activities, duties and responsibilities of the job while job specification is
a statement of educational qualification, experience, personal traits and skills
required to perform the job.

Purpose/Objectives of Job Analysis

1.Organization and manpower planning:- It is helpful in organization planning to

define labor needs, co-ordinate the activities of the workforce, and divides duties
and responsibilities.

2.Recruitment and selection:- It helps in determining characteristics of person

required to perform a particular job. It points out the educational qualifications,
level of experience, technical, physical, emotional, and personal skills required to
carry out a job in a desired manner. The objective is to fit the right person in the
right place.

3.Wages and salary administration:- By indicating the qualification required for a

specific job and the risks and hazards involved in its performance, it helps in salary
and wages administration. Job analysis plays a vital role in deciding the pay
packages, extra perks, benefits, fixed, and variable incentives of employees.

4.Employee training and management development:- IT provides the necessary

information to the management about the training and development programs. It
helps it to determine the training content, subject matter, training tools, and
equipment to be used to conduct training and method of training.

5.Performance Analysis:- It is done to check if the goals and objectives of a

particular job are met or not. It helps in deciding the performance standard and
evaluation criteria. On this basis, the overall performance of an employee is
measured and he or she appraised accordingly.
6.Job designing and redesigning:- The main purpose of job analysis is to
streamline the human effort and to get the best possible output. It helps in
designing, redesigning, enriching, evaluating, and also cutting back & adding the
extra responsibilities in a particular job. It is performed to increase the employee
satisfaction while enhancing the human output.

7.Health and safety:- It provides an opportunity for identifying hazardous

conditions and unhealthy environmental factors, so that corrective measures may
be taken to minimize and avoid the possibilities of accidents.

Job Analysis Methods

1.Observation Method:- In this method, a job analyzer analyses an employee and

the records of all his performed and unperformed tasks, fulfilled and unfulfilled
responsibilities & duties, various methods & skills used by an employee to
perform various duties, employee intellectual or emotional ability to overcome
the challenges and risks. However, it seems to be one of the easiest methods to
analyze a specific job but the truth is that it is the most difficult one because
different people think and interpret the findings in different ways as every person
has its way of observing things.

2.Interview Method:- In this method, employees are interviewed to gain the

information about their working styles, problems faced by them during job, the
use of particular skills and techniques while performing their job, insecurities, and
fears about their careers. This method helps the interviewer to know what exactly
an employee thinks about his or her job and responsibilities involved in it.

3.Questionnaire Method:- Another commonly used method is getting the

questionnaire filled from employees, their superiors, and managers. However,
this method also suffers from personal bias. Appropriate care should be taken
while framing questions for different category of employees. If it is not done
effectively, then there will be a full wastage of time, money, and human
resources.

4.Records Methods:- The personnel department maintain the records of the facts
regarding the job and the jobholders. The analysts collect the information from
the records maintained by the personnel department. The complete information
about work and workers cannot be obtained by this technique because certain
information such as supervisor-workers relationship, accessories used, and
working conditions are not mentioned in that records.

5.Critical Incident Method:- In this method job holders are asked to describe the
incidents concerning the job based on past experiences. The incidents so
collected are analyzed and classified according to the job areas described. These
are some common methods used in job analysis. However, there are other
specialized methods such as task inventory method, job element method,
competency profiling method and technical conference method etc. But while
choosing a method, HR managers need to consider time, cost, and human efforts
included in conducting the particular method.

Meaning of the following

Job Description:- is a useful, plain-language tool that explains the tasks, duties,
function and responsibilities of a position. It details who performs a specific type
of work, how that work is to be completed, and the frequency and the purpose of
the work as it relates to the organization's mission and goals.

Job Specification:- is an official document which describes the duties, required

knowledge, skills and abilities, and minimum qualifications of State jobs.

Job Enlargement:- it means increasing the scope of one’s duties and

responsibilities. The increase in scope is quantitative in nature and not qualitative
and at the same level.

Job Enrichment:- it means increasing the scope of one’s duties and

responsibilities. The increase in scope is quantitative in nature and not qualitative
and at the same level.

Job Rotation:- is the process of moving employees among various departments or

job functions for a set time. It is intended to provide employees with an
opportunity to gain broader experience, learn new skills, and advance their
careers.

Meaning of Recruitment:- is a process of identification of job vacancies, attracting

and selecting qualified candidates to fill vacant positions in an organization.
Methods of Recruitment:-

1. Internal Sources.
2. External Sources.

I. Internal Sources:- recruitment from within the organization.

i.Transfer:- it means shifting of employees from one job to another. There is no

drastic change in the pay to the employees it generally remains the same.

ii.Promotion:- it means shifting the employee to higher position with the change
in the pay or status.

iii.Internal advertisement:- it means appointing the employees from within the

organization advertisement.

iv.Lent Services:- it means employing the person for newly started plant in the
organization.

v.Extension of services:- it is extending the service of employees by recruiting

them again.

vi.Absorption of trainees:- those who come in the organization for training

employing them.

II. External Sources:- means recruitment from outside the organization.

i.Advertisement:- it is a way to attract number of employees by giving

advertisement in the newspaper.

ii.Casual Callers:- the good organizations have a list of casual callers also who
apply them and the organization instead of giving new advertisement give a call
to these casual callers.

iii.Employment exchange:- it is a good source of recruitment where the

candidates are called with the help of employment exchange.

iv.Educational institutions:- here the company’s go to the educational institutions

from where they select the suitable employees for the job.
v.Labour union:- the organization may select the candidate from the labour union
of the company to satisfythe labours also.

vi.Recommendation of employees:- sometimes the employees working in the

organization also suggests the name of suitable candidate for the appointement.

vii.Waiting lists:- generally the organization prepare the waiting lists of the
employees. Sometimes the selected candidates failed to join in that case the
waiting list employees are called.

Advantages of internal recruitment

Hiring internal candidates can be more efficient than recruiting externally,

because it can:

1.Reduce time to hire:- When recruiting externally, hiring teams find candidates
(either through sourcing or job posting), evaluate them and, if all goes well,
persuade them to join their company. All of which takes time. Conversely, internal
candidates are already part of your workplace, so the time you need to find and
engage those candidates is much less. It’s also easier to assess internal candidates
because:

They’re prescreened for culture fit.

Their track record is easily accessible.

They may not always need full interviews with managers (for example, if they are
moving within their department, the department head already knows the
candidate.)

All these reduce the time spent on each hiring stage and your overall time to hire.

Source and attract more candidates

Workable helps you build and promote your brand where your next candidates
are. You’re always top of mind, whether they’re actively looking or not.

Start sourcing
2.Shorten onboarding times:- Everyone needs some time to adjust to a new role,
but internal hires are quicker to onboard than external hires. This is because they:

Know how your company operates and most of your policies and practices.

May be familiar with people in their new team, especially in smaller businesses.

May already know the content and context of their new roles if they move within
the same team or to a similar one (for example, a sales associate becoming a
category manager).

3.Cost less:- Research has shown that external hiring may cost 1.7 times more
than internal hiring. This is because when hiring from within, you usually don’t
need to: Post ads on job boards. It’s easy to inform internal candidates about job
openings through email or your company’s internal newsletter. You could also
place printed job ads on a bulletin board, if all your employees work in one
place.Subscribe to resume databases. Instead of sourcing passive candidates on
resume databases, ask managers about their team members or look into your
HRIS to find coworkers who might fit in your open roles. Pay for backgrounds
checks. You may already have conducted background checks on internal
candidates when you first hired them. And, you know if they’re in good standing
based on their manager’s input or employee records.

4.Strengthen employee engagement:- Promoting from within sends a message

that you value your employees and want to invest in them. Giving employees
more opportunities to advance their careers, or even letting them move to other
same-level positions that may interest them, is good for morale: employees who
change roles develop professionally and others know they may have similar
opportunities in the future. This helps to build a culture of trust that enhances
employee engagement and retention.

Disadvantages of internal recruitment

Despite all the merits of internal recruitment, there are some things to keep in
mind. Hiring from within can:

1.Create resentment among employees and managers:- Employees who were

considered for a role could feel resentful if a colleague or external candidate is
eventually hired. Also, managers are often uncomfortable losing good team
members and may even go so far as to hinder the transfer or promotion process.

2.Leave a gap in your existing workforce:- When you promote someone to fill an
open position, their old position becomes vacant. This means that a series of
moves and promotions may ensue that could disrupt your business’ operations.
Ultimately you may need to turn to external recruitment in addition to your
internal hire.

3.Limit your pool of applicants:- While your company may have a lot of qualified
candidates for specific positions, this isn’t necessarily true for every open role. For
example, if a role is fairly new to your business, your employees will have other
specialties and may not be able to fill this skills gap. Relying solely on internal
hiring means you could miss the chance to hire people with new skills and ideas.

4.Result in inflexible culture:- Doing most of your hiring from inside your business
may result in a stagnant culture. This is because employees can get too
comfortable with the ‘way things are done’ and struggle to spot inefficiencies and
experiment with new ways of working. An inflexible culture will be more
problematic in leadership positions where employees may need to advocate for
change and improvements instead of relying on established, inefficient practices.
External hires are essential in shaking up culture and offering a fresh perspective
on existing problems.

Advantages of External Recruitment

Here are the 7 benefits of external recruitment:

1. A large pool of candidates:- External recruitment increases the chances of

appointing the right candidate for the company. It provides the company with a
pool of skilled candidates; suitable for the post. This availability helps the
company to explore each potential and be selective while choosing them.

2. Fresh ideas and perspectives:- Hiring a new employee brings a bunch of fresh
ideas and perspectives. New employees attempt methods and approach different
from those of the existing employees. These new ideas and suggestions; bring a
positive change in the department and the company. The company identifies the
areas of improvement and takes steps for the company’s overall growth.
3. Qualified and experience candidates:- Qualification, skill, and experience are
the core of recruitment. It boosts performance and saves the costs spent on
training the internal candidates for the post. External recruitment presents the
company with suitable candidates, qualified and experienced in the field.
Eventually, the company selects and appoints the best.

4. Stay Competitive:- A new employee means new ideas and strategies, and
insights. These ideas, strategies, and experiences of the newly-hired is a blessing
in disguise. They provide the trends and insights of other companies that the
company can utilize. In simple words, the company keeps up with trends and
stays competitive.

5. Diversity Enhancement:- External recruitment aids in making the company

more diverse. The more diverse workforce, the more empowering the company
becomes. After all, the wide range of perspectives leads to more effective and
innovative practices.

6. Lessen in-house tension:- External recruitment, especially for higher positions,

lessens the tension among employees, who may compete for it. Hiring a new
professional for the positions makes it easy to set up a leadership role that
otherwise would have been a challenge for an existing employee.

7. Growth for all:- By recruiting new and fresh talent, the company initiates not
only the candidate’s growth but itself too. When a new employee joins to match
his skill and ideas: the existing employees broaden their performance. They
become more competitive and productive. This overall growth adds to the
company’s growth quotient.

Disadvantages of External Recruitment

1.Longer transition period:- When a candidate joins a company as a newly hired,

his transition to the new place takes time. He needs a vivid knowledge of the
company’s vision, mission, and ethics and has to adapt to the office environment.
The entire process requires an investment of time and cooperation.

2.Cost increases:- External recruitment is costlier than internal recruitment. An

organization has to pay recruiting firms, buy memberships on job search portals,
and advertise the vacancy. Additional payment is also made to the HR team for
putting their efforts and time into the recruitment process, interviews, and
documentation to bring the new employee into the house.

3.Additional training process:- Newly hired, though skilled, requires more training
on company policies and procedures than internal employees. It needs more
investment of money and time. Training of external employees can also reduce
productivity during the session as new employees need to get acquainted with
the responsibilities.

4.Time-consuming:- External recruitment consumes time—from advertising,

selection, and interview to recruitment. Moreover, the more potential candidates
come up; the more selective the hiring process becomes, thereby consuming
more time.

5.Effects on employee morale:- External recruitment may affect the morale of the
existing employee, especially if they are expecting progress in the same position.
They may feel their progress is hindered. They may feel the external hiring to be a
missed opportunity. However, with career goals initiative, the company can
ensure they have the scope of progress.

6.Employees need time:- Not only the externally recruited but the working
employees also need time. The employees already working has to adjust to the
new member and his leadership role if hired in a higher position. And it takes
time, thereby initially affecting productivity during the period.

Importance of Recruitment

1. Helps Analyze current & future requirements:- An organization’s recruitment

process helps it assess its current and future staffing needs. To determine how
many recruits are needed, it conducts a methodical examination of company
operations.

2. Prevents disruption of business activities:- As a result of the recruitment

process, the daily activities of your organization will run smoothly. The
organization provides businesses with all the human resources they need for a
variety of job positions on a regular basis. To meet the needs of the organization,
recruitment processes select candidates from a variety of backgrounds.
 3. Increases the success rate of hiring:- In this way, the company’s selecting
process can be stimulated to increase its success rate. All job applications are
analyzed to reduce the frequency of unqualified and exaggerated applicants. The
recruitment process advances only qualified applicants to the next stage.

4. Access to wider Talent pool:- In recruitment, the objective is to create a large

pool of qualified candidates from which the most qualified candidate can be
chosen. In this way, big groups of individuals are attracted to a company and
encouraged to apply for open positions.

5. A cost-effective solution:- Ensures that total costs and time spent on employee
recruitment are minimized. An organized and systematic recruitment process
involves giving a detailed description of a job opening to a large number of
people. When a job description is good, a large number of people can be
recruited at a low cost.

6. Enhances the credibility of the organization:- Recruiting effectively enhances

the reputation of a business organization. In addition to assessing job openings’
validity, it reflects the company’s professionalism and authenticity. In order to
increase the trust of job applicants, a company organization must adopt a good
application method. Your company will then be able to attract highly qualified
candidates.

Importance of Recruitment

1. Refine the quality of your candidates:- When searching for the ideal candidate
for a position, recruiters first look for applicants whose resumes match the job
description they listed. The professional skills, education and employment
experience listed on a resume are important in determining whether a candidate
is a good fit for an available position, but refining candidates even further can
help you ensure you hire the best possible applicant.

2. Create a pool of qualified candidates:- Even if you plan on hiring the first
candidate you interview, having a pool of select candidates adds quality
assurance to your hiring process. You may still select the first person you
interviewed, but using their qualifications as a baseline when interviewing other
candidates allows you to make a hiring decision with confidence. If you have
multiple candidates to compare, you can also ask for feedback from colleagues or
supervisors when attempting to select a qualified candidate.

3. Find candidates who fit your company's culture:- Company culture refers to a
shared set of values, practices and goals that members of an organization share.
Effective team managers often consider the independence and preferences of
their team members, how team members treat one another and the workplace
environment when delegating tasks and assigning group work. Recruiters can
maintain a productive company culture by ensuring that a chosen candidate
understands their company's culture and wants to actively participate in it.

4. Streamline the recruitment and hiring processes:- Creating a detailed strategy

for interviewing and hiring candidates makes the entire process more efficient.
When you know exactly what to expect and develop a consistent approach to
hiring candidates, applicants often feel valued and respected. This can help you
develop positive relationships with candidates who may have an interest in future
vacancies within your company.

5. Reduce employee turnover:- Effective recruitment ensures that both you and
your candidates have the information you both require to make a proper hiring
decision. Ensuring that you mention as many details as possible regarding the job,
benefits and any other expectations of the company can help reduce employee
turnover. Consider also encouraging questions from the candidate, as well. If this
occurs, the candidates often know what to expect if they accept a job offer and
can avoid surprises that may lead to them seeking other employment.

6. Encourage leadership development:- Candidates are more likely to accept a

position if they know there are advancement opportunities within the company.
You can make leadership development a recruitment objective by discussing
career goals with each candidate, explaining the company's structure and letting
them know whether you may have more senior positions available in the future. If
you don't believe there are advancement opportunities available, ensure that the
candidate feels comfortable remaining in the position or solely working in similar
job roles.
7. Improve your brand's perception:- In most cases, you can only hire one
candidate for each position. However, you might receive several applications and
interview dozens of applicants. This allows you to emphasize your brand's
perception with everyone who interacts with your company, even if you don't
hire them. Regardless of whether they secure an available position, candidates
often remember interviews they've had. If they have a positive experience, they
may apply for other jobs with your company in the future, recommend your
company to others or positively discuss your company with friends and business
associates.

8. Learn which methods work best:- Adjusting your recruitment methods is

equally important to establish a set of recruitment objectives. The best
recruitment approach varies by company, as each business has unique hiring
goals. Hiring goals and companies as a whole also change over time. Consider
implementing new objectives to determine which works best for your company
and analyze each method often to determine its success or failure.

9. Use a merit-based selection approach:- You can avoid unintentional bias in

your hiring process by including merit-based selection in your recruitment
objectives. When reviewing each candidate's resume, try to solely consider their
qualifications, education and experience. Personal information, such as their
name or address, should only be important if you choose to contact them for an
interview. When you select candidates based on merit, you create a larger pool of
qualified applicants and encourage diversity in your workplace.

10. Minimize recruitment costs:- Recruiters often establish goals to minimize

their costs. Companies can keep recruitment costs low and avoid decreases in
productivity associated with a high turnover rate by establishing recruitment
goals that encourage job satisfaction and retention. Using digital features, such as
virtual interviewing and social media recruitment, can also help recruiters adhere
to their budget, broaden their reach and encourage company growth.

Advantages of Recruitment

1. Provides Higher Quality Candidates:- The main advantage of recruitment is

that it provides higher quality candidates for the specific post. The Organization
takes time to time to release notifications for the hiring, and the recruiter of the
organization takes the recruitment task. The recruiter arranges the process and
develops the test suited for the job. And after clearing all the necessary tests, the
individual hired. Under recruitment, the person higher for the job has a high
quality of skills, all the necessary knowledge, etc. The applicant has to pass
several recruitment tests, and their capabilities are in check in that test. An
applicant with a high degree of quality survives till the last and got an
appointment letter. The recruiter is an expert in hiring as they possess all the
necessary qualifications and are professionally trained to check the applicant at
every stage. The recruiters have vast amounts of experience, which they use
during the recruitment process and hire the best candidate.

2. Ensures Faster Hiring:- The process of hiring is a very long and tedious task. It
involves a variety of things which makes the recruitment process very long and
sometimes leads to a loss of interest among the applicant. The recruitment
process provides solutions to the long process of hiring and maintaining the
applicant's interest. Recruitment ensures the faster hiring of individuals for
several posts. With the proper usage of a recruitment agency or recruiter,
organizations can shift the workload towards them. So the working of the
organization is not disturbed by the hiring process. Recruitment provides several
solutions to the hiring process as it ensures the timely hiring of the applicant,
proper working of the organization, best candidate selection, etc.

3. Helps Hire Applicants with Specialist Knowledge:- Today's world is witnessing

rapid growth and development in almost every field, most importantly in the
technological domain. The need for specialists increased day by day. To fulfill this,
recruiters have to hire individuals with specialist knowledge. Recruitment
agencies hire individuals with certain skills suited to the need of the task,
knowledge of technology, and other specialties. The recruiter hires individuals
according to the needs of the market. So for the management section, the
recruiter has to hire individuals with management degrees and some work
experience as the recruitment agency has been aware of prevailing market
conditions, so they hired individuals according to the need of the market in
general and according to the need of the Organization in particular.

4. Promotes Business Growth and Innovation:- Currently, the world is dominated

by technology in almost every field. Now companies need a person with better
skills to cope with society's changing needs. The role of recruitment in business
growth and innovation is very important as it forms the company's backbone. The
organization is because of its employees and employees selected through
recruitment.

Disadvantages of Recruitment

1. Recruitment May Stagnate the Company's Culture:- The recruitment process

saves lots of time, energy, and resources for the organization but also has some
drawbacks. The most notable disadvantage of recruitment is that it leads to the
stagnation of the work in the organization. Generally, existing employees are
resistant to the new workforce; they try to maintain the status quo in the
company. They work less effectively as they think the newly hired workforce does
all the work. And the old workforce does work inefficiently.

2. Increases Training Costs of the New Applicants:- The newly recruited

employees may need additional training. If the applicant is hired through
recruitment, he may possess only some of the desired qualities. They need
additional training. And to teach new skills to the new applicants, an additional
cost is required. If a recruiter doesn't possess desired qualities, they must work
hard to sustain themselves in the company. And this creates a financial burden on
the company and the individual too.

3. Recruitment Agencies have Limited Choices:- Recruitment is a very long

process that takes lots of time to complete. Companies need individuals for
specific posts and specific work. And according to the needs of the company
recruitment agency hire individuals and suggests names to the organization. But
sometimes these could be more efficient. The recruitment agency has to choose
from a small pool of options as limited individuals possess the desired skills. And
from this individuals recruiter have to make choices. Sometimes recruiters hire
individuals who have a low category of skills with degrees or certificates.

4. May Leads to Workplace Hostility:- There is a hierarchy in the workplace; from

top to bottom, every post is accorded to the person with enough skills and
abilities to handle that post. Recruitment leads to the addition of new members
to the company, and sometimes it leads to hostility. For instance, if a new
applicant is hired for a certain post, but that post is of a higher rank, this
recruitment creates different attitudes among lower employees.
Factors affecting recruitment

INTERNAL FACTORS

1. Recruitment Policy:- The recruitment policy of the organization i.e. recruiting

from internal sources and external also affect the recruitment process. The
recruitment policy of an organization determines the destinations or enlistment
and gives a structure to usage of recruitment program.

2. Human Resource Planning:- Effective human resource process and procedure

helps in fixing the loops present in the existing manpower of the organization.
This also helps in filter the number of employees to be recruited and what kind
qualification and skills they must possess.

3. Size of the Organization:- The size of the organization affects the recruitment
process. If the organization is planning to increase its operations and expand its
business, it will think of hiring more personnel, which will handle its operations.

4. Cost involved in recruitment:- Recruitment process also count the cost to the
employer, thats why organizations try to employ/outsource the source of
recruitment which will be cost effective to the organization for each candidate.

5. Growth and Expansion:- Organization will utilize or consider utilizing more

work force in the event that it is growing its operations.

EXTERNAL FACTORS

1. Supply and Demand:- The availability of manpower both within and outside
the organization is an essential factor in the recruitment process.

2. Labour Market:- Employment conditions where the organization is located will

effected by the recruiting efforts of the organization.
3. Goodwill / Image of the organization:- Image of the firm is another factor
having its effect on the Different government controls forbidding separation in
contracting and work have coordinate effect on enlistment practices. As taken
Example, Govt. of India has the convention of reservation in work for booked
standings/planned clans, physically Disabled and so on. Additionally, exchange
associations have the significant part in enrollment. This limits management
freedom to select those individuals who can be the best performers.This can work
as a potential constraint for recruitment. A company with positive image as an
employer able to easier to attract and retain employees than an organization with
negative image. Organisations actions and activities like good public relations,
public service like,charity, contruction and developement roads, public parks,
hospitals education and schools help earn image or goodwill for organization.

4. Political-Social- Legal Environment:- Different government controls forbidding

separation in contracting and work have coordinate effect on enlistment
practices.

5. Unemployment Rate:- The Element that influence the availability of applicants

is the economy growth rate. At the point when the organization isn't making new
jobs, there is frequently oversupply of qualified work which thusly prompts
unemployment.

6. Competitors:- The recruitment policies and procedure of the competitors also

affect the recruitment function of the organizations.Time to time the
organizations have to change their recruitment policies and manuals according to
the policies being followed by the competitors.

Meaning of selection:- is the process of choosing employees to fill specific jobs

within an organization. This process typically includes reviewing applications or
resumes, interviewing candidates, and making a final decision.

Steps in Selection Process

1. Preliminary interview:- the selection process generally starts with this step
where the totally unsuitable applicant is eliminated. Thus the organization is
saved from the expenses of processing the applicant through the remaining steps
of selection. The candidates who pass this step are only asked to fill the
application form.
2. Receiving applications:- after passing the preliminary interview the candidate is
asked to fill the standard application form. The application form generally consists
the information about the age, qualification, experience etc. of the candidate on
the basis of which the interviewer gets the idea about the candidate and this
information also helps in formulating questions.

3. Screening of applications:- after receiving the applications the screening

committee screens the applications. Only the candidates who qualify the criteria
of the screening committee are called for the interview. Usually the candidates
selected for interview are four to six times than the number of posts. Interview
letter is sent to them or they are called telephonically.

4. Employment test:- after getting the interview letter and before going to the
interview there is one more step and that is the employment tests. These tests
are done to check the ability of the candidate. These tests vary from organization
to organization and change as per the need of the particular job. these tests are
intelligence tests, aptitude tests, trade tests, interest test, personality tests etc.
these tests must be designed properly otherwise they will not good indicator of
one knowledge.

5. Employment interview:- the candidates who qualify the above tests are called
for the employment interview. This interview is done to get more information
about the candidate, to give him the actual picture of what is required from him,
to check the communication skill of the candidate etc. for senior position post; a
panel is prepared who take the interview. At the end of interview of each
candidate the members of panel discuss about the candidate and give him the
grades.

6. Checking references:- before selecting the employ the prospective employee

generally look out for the referees given by the candidate. To check about the
candidate’s past record, reputation, police record etc.

7. Physical examination:- The organizations generally prefer medical examination

to be incurred of the person to avoid time and expenditure spend on the
medically unfit person. Sometimes the organization may ask the candidate to get
them examined from the medical expert.
8. Final selection:- after all these steps the candidate is selected finally. He is
appointed by issuing appointment letter. Initially he is appointed on probation
basis after finding his work satisfactory he is appointed as permanent employee
of the organization or otherwise he may be terminated.

Barriers to effective selection/placementss

1.Perception: We all perceive the world differently. Our limited perceptual ability
is obviously a stumbling block to the objective and rational selection of people.

2.Fairness: Barriers of fairness includes discrimination against religion, region,

race or gender etc.

3.Validity: A test that has been validated can differentiate between the
employees who can perform well and those who will not. However it does not
predict the job success accurately.

4.Reliability: A reliable test may fail to predict job performance with precision.

5.Pressure: Pressure brought on selectors by politicians, bureaucrats, relatives,

friends and peers to select particular candidate are also barriers to selection.

(advantages, objectives, importance of selection are same of recruitment)