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1.1 CONCEPT Recruitment is a process to discover the sources of manpower to meet the requirement of the staffing schedule and to employ effective measures for attracting that manpower in adequate numbers to facilitate effective selection of efficient personnel. Every organization needs to look after recruitment and selection in the initial period and thereafter as and when additional manpower is required due to expansion and development of business activities. 1.2 MEANING OF RECRUITMENT : Recruitment means to estimate the available vacancies and to make suitable arrangements for their selection and appointment. Recruitment is understood as the process of searching for and obtaining applicants for the jobs, from among whom the right people can be selec ted. A formal definition states, It is the process of finding and attracting capable applicants for the employment. The process begins when new recruits are sought and ends when their applicants are submitted. The result is a pool of applicants from which new employees are selected. In this, the available vacancies are given wide publicit y and suitable candidates are encouraged to submit applications so as to have a pool of eligible candidates for scientific selection. In recruitment, information is colle cted from interested candidates. 1


For this different source such as newspaper advertisement, employment exchanges, internal promotion, etc. are used. In the recruitment, a pool of eligible and interested candidates is created for selection of most suitable candidates. Recruitment represents the first contact that a company makes with potential employees Definition: According to EDWIN FLIPPO ,Recruitment is the process of searching for prospective employees and stimulating them to apply for jobs in the organization. 1.3 PURPOSE AND IMPORTANCE OF RECRUITMENT :

1. Determine the present and future requirements of the organization on conjunction with its personnel -planning and job anal ysis activities. 2. Increase the pool of job candidates at minimum cost. 3. Help increase the success rate of the selection process by reducing the number of visibl y under qualified or overqualified job applicants. 4. Help reduce the probabilit y that job applicants, once recruited and selected, will leave the organization onl y after a short period of time. 5. Meet the organizations legal and social obligations regarding the

composition of its work force. 6. Begin identifying and preparing potential job applicants who will be appropriate candidates.


7. Increase organizational and individual effectiveness in the short term and long term. 8. Evaluate the effectiveness of various recruiting techniques and sources for all t ypes of job applicants. Recruitment is a positive function in which publicit y is given to the jobs available in the organization and interested candidates are encouraged to submit applications for the purpose of selection. Recruitment represents the first contact that a company makes with potential employees. It is through recruitment that many individuals will come to know a company, and eventuall y decided whether they wish to work for it. A well planned and well -managed recruiting effort will result in high qualit y applicants, whereas, a haphazard and piecemeal efforts will result in mediocre ones.


CHAPTER 2 Sources of Recruitment


INTERNAL SOURCES 1) Promotion and Transfer 2) Internal Notification (Advertisement) 3) Retirement 4) Recall 5) Former employees

EXTERNAL SOURCES 1) Campus recruitment 2) Press advertisement 3) Management consultancy service & private employment exchanges 4) Deputation of personnel or transfer from one enterprise to another 5) Walk-ins, write-ins, talk-ins

The sources of recruitment can be broadl y categorized into internal and external sources (I) Internal Recruitment Internal recruitment seeks applicants for

positions from within the company. The various internal sources include


1. Promotions and Transfers Promotion is an effective means using job posting and personnel records. Job posting requires notifying vacant positions by posting notices, circulating publications or announcing at staff meetings and inviting employees to appl y. Personnel records help discover employees who are doing jobs below their educational qualifications or skill levels. Pr omotions has many advantages like it is good public relations, builds morale, encourages competent individuals who are ambitious, improves the probabilit y of good selection since information on the individuals performance is readil y available, is cheaper than going outside to recruit, those chosen internall y are familiar with the organization thus reducing the orientation time and energy and also acts as a training device for developing middle -level and top-level managers. However, promotions restrict the field of selection preventing fresh blood & ideas from entering the organization. It also leads to inbreeding in the organization. Transfers are also important in providing employees with a broad-based view of the organization, necessary for future promoti ons. 2. Internal notification (advertisement) : Sometimes, management issues an internal notification for the benefit of existing employees. Most employees know from their own experience about the requirement of the job and what sort of person the company is looking for. Often employees have friends or acquaintances who meet these requirements. Suitable persons are appointed at the vacant posts


3. Retirements: At times, management may not find suitable candidates in place of the one who had retired, after meritorious service. Under the circumstances,

management may decide to call retired managers with new extension. 4. Recalls: When management faces a problem, which can be solved only by a manager who has proceeded on long leave, it may de decided to recall that persons after the problem is solved, his leave may be extended. 5. Former Employees These include retired employees who are willing to work on a part -time basis, individuals who left work and are willing to come back for higher compensation s. Even retrenched employees are taken up once again. The advantage here is that the people are already known to the organization and there is no need to find out their past performance and character. Also, there is no need of an orientation programme for them, since they are familiar with the organization (II) External Recruitment External recruitment seeks applicants for positions from sources outside the company. They have outnumbered the internal methods. The various external sources include 1. Campus Recruitments: Colleges, universities, research laboratories, sports fields and institutes are fertile ground for recruiters, particularl y the institutes. Campus Recruitment is


going global with companies like HLL, Citibank, HCL -HP, ANZ Grindlays, L&T, Motorola and Reliance looking for global markets. Some companies recruit a given number of candidates from these institutes every year. Campus recruitment is so much sought after that each college; universit y department or institute will have a placement o fficer to handle recruitment functions. However, it is often an expensive process, even if recruiting process produces job offers and acceptances eventuall y. A majorit y leave the organization within the first five years of their employment. Yet, it is a ma jor source of recruitment for prestigious companies.

2. Press Advertisements:It is a popular method of seeking recruits, as many recruiters prefer advertisements because of their wide reach. Want ads describe the job benefits, identify the employer and tell those interested how to appl y. Newspaper is the most common medium but for highl y specialized recruits, advertisements may be placed in professional or business journal .

Advertisements must contain proper information like the job content, working conditions, location of job, compensation including fringe benefits, job specifications, growth aspects, etc. The advertisement has to sell the idea that the company and job are perfect for the candidate.


3. Management Consultancy service & Private Employment Exchanges:Employment Exchanges have been set up all over the country in deference to the provision of the Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959. The Act applies to all industrial establishments having 25 workers or more each. The Act requires all the industrial establishments to notify the vacancies before they are filled. The major functions of the exchanges are to increase the pool of possible applicants and to do the preliminary screening. Thus, employment exchanges a ct as a link between the employers and the prospective employees. These offices are particularl y useful to in recruiting blue -collar, white collar and technical workers. 4. Deputation of personnel or Transfer from one enterprise to another: When organizations combine, they have a pool of employees, out of whom some may not be necessary any longer. As a result, the new organization has, in effect, a pool of qualified job applicants. As a result, new jobs may be created. Both new and old jobs may be readil y s taffed by drawing the best qualified applicants from this employee pool. This method facilitates the immediate implementation of an organizations strategic plan. It enables an organization to pursue a business plan, However, the need to displace employees and to integrate a large number of them rather quickl y into a new organization means that the personnel -planning and selection process becomes critical more than ever.


5. Walk-ins, Write-ins and Talk-insThe most common and least expensive approach for candidates is direct applications, in which job seekers submit unsolicited application letters or resumes. Direct applications can also provide a pool of potential employees to meet future needs. From employees viewpoint, walk -ins are preferable as they are free from the hassles associated with other methods of recruitment. While direct applications are particularly effective in filling entry -level and unskilled vacancies, some organizations compile pools of potential employees from direct applications for skilled positions. Write-ins are those who send written enquiries. These jobseekers are asked to complete application forms for further processing. Talk-ins involves the job aspirants meeting the recruiter (on an appropriated date) for detailed talks. No application is required to be submitted to the recruiter.



4.1 SELECTION: Selection is defined as the process of differentiating between applicants in order to identify (and hire) those with a greater likelihood of success in a job. Selection is basically picking an applicant from (a pool of applicants) who has the appropriate qualification and competency to do the j ob. The difference between recruitment and selection: Recruitment is identifying and encouraging prospective employees to apply for a job. And Selection is selecting the right candidate from the pool of applicants.



4.2 SELECTION PROCESS Selection is a long process, commencing from the preliminary interview of the applicants and ending with the contract of employment. The following chart give s an idea about selection process: -

1. Preliminary Interview

2. Selection Tests

Rejected Application

3. Employment Interview 4. Reference and Background Analysis

5. Selection Decision

6. Physical Examination

7. Job Offer

8. Employment Contract

9. Evaluation 11


Environment factor affecting selection : Selection is influenced by several factors. More prominent among them are suppl y and demand of specific market skills in the legal labour and market, political



labour -


considerations, companys i mage, companys policy, human resources planning and cost of hiring. The last three constitute the internal environment and the remaining form the external environment of selection process.

STEP 1 PRELIMINARY INTERVIEW The applicants received from job seekers would be subject to scrutiny so as to eliminate unqualified applicants. This is usuall y followed by a preliminary interview the purpose of which is more or less the same as scrutiny of application, that is, eliminate of unqualified applicants. Scrutiny enables the HR specialists to eliminate unqualified jobseekers based on the information supplied in their application forms. Preliminary interview, on the other hand, helps reject misfits for reason, which did not appear in the application forms. Besi des, preliminary interview, often called courtesy interview, is a good public relation exercise.



RECRUITMENT AND SELECTION STEP 2 SELECTION TEST: Job seekers who pass the screening and the preliminary interview are called for tests. Different t ypes of tests may be administere d, depending on the job and the company. Generall y, tests are used to determine the applicants abilit y, aptitude and personality.

The following are the type of tests taken: A). Ability tests: Assist in determining how well an individual can perform tasks related to the job. An excellent illustration of this is the t yping tests given to a prospective employer for secretarial job. Also called as ACHEIVEMENT TESTS. It is concerned with what one has accomplished. When applicant claims to know something, an achievement test is taken to measure how well they know it. Trade tests are the most common t ype of achievement test given. Questions have been prepared and tested for such trades as asbestos worker, punch -press operators, electricians and machinists. There are, of course, many unstandardised achievement tests given in industries, such as t yping or dictation tests for an applicant for a stenographic position. B). Aptitude test : Aptitude tests measure whether an individuals has the capacit y or latent abilit y to learn a given job if given adequate training. The use of aptitude



RECRUITMENT AND SELECTION test is advisable when an applicant has had little or no experience along the line of the job opening. Aptitude test indicates the abilit y or fitness of an individual to engage successfull y in any number of specialized activities. They cover such areas clerical aptitude, numerical aptitude, mechanical aptitude, motor co ordination, finger dexterit y and manual dexterit y. These tests help to detect positive negative points in a pers ons sensory or intellectual abilit y. STEP 3 EMPLOYMENT INTERVIEW: The next step in the selection process is an interview. Interview is formal, in-depth conversation conducted to evaluate the applicants acceptabilit y. It is considered to be excellent selection device. It is face -to-face exchange of view, ideas and opinio n between the candidates and interviewers. Basicall y, interview is nothing but an oral examination of candidates. Interview can be adapted to unskilled, skilled, managerial and profession employees. Objectives of interview : Interview has at least th ree objectives and they are a follows: 1) 2) Helps obtain additional information from the applicants Facilitates giving general information to the applicants such as

company policies, job, products manufactured and the like 3) Helps build the companys image amon g the applicants.



RECRUITMENT AND SELECTION STEP 4 REFERENCE CHECK & BACKGROUND ANALYSIS :Many employers request names, address es, and telephone numbers of references for the purpose of verifying information and perhaps, gaining additional background information on an applicant. Although listed on the application form, references are not usually checked until an applicant has successfull y reached the fourth stage of a sequential selection process. When the labour market is very tight, organizations sometimes hire applicants before checking references. Previous employers, known as public figures, universit y professors, neighbors or friends can act as reference s. Previous employers are preferable because they are already aware of the applicants performance. But, the problem with this reference is the tendency on the part of the previous employers to over -rate the applicants performance just to get rid of the person. Organizations normall y seek letters of reference or telephone references. The latter is advantageous because of its accuracy and low cost. The telephone reference also has the advantage of soliciting immediate, relativel y candid comments and attitud e can sometimes be inferred from hesitations and inflections in speech.

STEP 5 SELECTION DECISION:After obtaining information through the preceding steps, selection

decision- the most critical of all the steps - must be made. The other stages



RECRUITMENT AND SELECTION in the selection process have been used to narrow the number of the candidates. The final decision has to be made the pool of individuals who pas the tests, interviews and reference checks. The view of the line manager will be generall y considered in the final se lection because it is he/she who is responsible for the performance of the new employee. The HR manager plays a crucial role in the final selection.

STEP 6 PHYSICAL EXAMINATION : After the selection decision and before the job offer is made, the candidate is required to undergo a physical fitness test. A job offer is, often, contingent upon the candidate being declared fit after the physical examination. The results of the medical fitness test are recorded in a statement and are preserved in the personne l records. There are several objectives behind a physical test. Obviousl y, one reason for a physical test is to detect if the individual carries any infectious disease. Secondl y, the test assists in determining whether an applicant is physicall y fit to perform the work. Thirdl y, the physical examination information can be used to determine if there are certain physical capabilities, which differentiate successful and less successful employees. Fourth, medical check-up protects applicants with health defects from undertaking work that could be detrimental to them or might otherwise endanger the employers propert y. Finall y, such an examination will protect the



RECRUITMENT AND SELECTION employer from workers compensation claims that are not valid because the injuries or illness were pr esent when the employee was hired.

STEP 7 JOB OFFER: The next step in the selection process is job offer to those applicants who have crossed all the previous hurdles. Job offer is made through a letter of appointed. Such a letter generall y contains a date by which the appointee must report on dut y. The appointee must be given reasonable time for reporting. Thos is particularl y necessary when he or she is already in employment, in which case the appointee is required to obtain a relieving certificate from the previous employer. Again, a new job may require movement to another cit y, which means considerable preparation, and movement of property. The company may also want the individual to delay the date of reporting on dut y. If the new employees first j ob upon joining the company is to go on company until perhaps a week before such training begins. Naturall y, this practice cannot be abused, especially if the individual is unemployed and does not have sufficient finances. Decency demands that the rejected applicants be informed about their non -selection. Their applicants may be preserved for future use, if any. It needs no emphasis that the applications of selected candidates must also be preserved for the future references.



RECRUITMENT AND SELECTION STEP 8 CONTRACT OF EMPLOYMENT : After the job offer has been mad and candidates accept the offer, certain documents need to be executed by the employer and the candidate. One such document is the attestation form. This form contains vital details about the candidate, which are authen ticated and attested by him/her. Attestation form will be a valid record for the future reference. There is also a need for preparing a contract of employment. The basic information that should be included in a written contract of employment will vary according to the level of the job, but the following checklist sets out the t ypical headings: 1. Job title 2. Duties, including a parse such as The employee will perform such duties and will be responsible to such a person, as the company may from time to time direct. 3. Date when continuous employment starts and the basis for calculating service. 4. Rate of pay, allowance, overtime and shift rates, method of payments. 1. Hours of work including lunch break and overtime and shift arrangements. 2. Holiday arrangements: i.) ii.) iii.) Paid holidays per year. Calculation of holiday pay. Qualifying period.



RECRUITMENT AND SELECTION 3. Length of notice due to and from employee. 4. Grievances procedure (or reference to it) 5. Disciplinary procedure (or any reference to it). 6. Work rules (or any reference to them). 7. Arrangements for terminating employment. 8. Arrangements for union membership (if applicable). Alternativel y called employment agreements or simpl y bonds, contracts of employment serve many useful purposes. Such contracts seek to restrain job-hoppers, to protect knowledge and information that might be vital to a companys healthy bottom line and to prevent competitors from poaching highl y valued employees.

STEP 9 EVALUATIONS: -The broad test of the effecti veness of the selection process is the qualit y of the personnel hired. An organization must have competent and committed personnel. The selection process, if properl y done, will ensure availabilit y of such employees. How to evaluate the effectiveness of a selection programme? A periodic audit is the answer. People who work independent of HR department must conduct audit. The table below contains an outline that highlights the areas and questions to be covered in a systematic evaluation.