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Recruitment

Definition
Recruitment is a 'linking function' - joining together those with jobs to fill and those seeking jobs. It is a 'joining process' in that it tries to bring together job seekers and employer with a view to encourage the former to apply for a job with the latter. The basic purpose of recruiting is to develop a group of potentially qualified people. To this end, the organization must communicate the position in such a way that job seekers respond. To be cost effective, the recruitment process should attract qualified applicants and provide enough information for unqualified persons to self-select themselves out. Recruitment involves searching for and obtaining potential job candidates in sufficient numbers and quality so that the organization can select the most appropriate people to fill its job needs.

Aims of Recruitment
The aims of recruitment are:
♠ to obtain a pool of suitable candidates for vacant posts ♠ to use and be seen to use a fair process ♠ to ensure that all recruitment activities contribute to company goals and a desirable company image ♠ to conduct recruitment activities in an efficient and costeffective manner

Edwin D. Flippo says Recruitment Positive activity Negative activity Stimulates people to apply for jobs Selection : rejects a good no of people who apply .

economic and legal factors .Factors affecting recruitment 1) 2) 3) 4) 5) 6) 7) 8) Size of the organization Employment conditions in the community where the organization is located The effects of past recruiting efforts which show the organization‟s ability to locate and keep better performing people Working conditions and salary and benefits offered Rate of growth of organization Level of seasonality of operations Future expansions Cultural.

Modem employees look for a satisfying career in place of 'just a job'. If the opportunities for career growth are missing in an organization. If the organization is not aware of and is insensitive to prevailing social values and norms. the recruitment efforts could go off the track. They also try to present a more realistic picture of the job and the encouraging career openings to prospective employees through innovative recruitment campaigns. they do not hesitate to leave and go in search of greener pastures outside. The sudden boom in the financial services sector in India. has not kept pace and most engineers had to make a beeline for finance/marketing degrees or diploma to encash the job opportunities. companies nowadays emphasize opportunities for training and development and progression through a series of jobs within the same organization. . To ward off such threats. The demand for engineers. especially from 1991 onwards. has contributed to the growing demand for MBA/CA/CFA/CWA students. The Social Environment Major social changes in the past two decades have caused organizations to place increased emphasis on recruitment. especially in the manufacturing sector.Environment Affecting Recruitment The Economic Environment Economic conditions quietly influence the recruitment process in all organizations.

offering jobs to displaced persons whose lands have been acquired in order to set up projects of national importance . constitutional provisions covering reservations for special groups. based solely on qualifications. The Political Environment Political compulsions. At the same time. electronics. telecommunications. telecommunication. insurance. skills and experience. providing employment to "sons of the soil" especially in states like Andhra Pradesh. . Factors such as influence of unions. applicants with unusual combination of skills and knowledge must be found. The Liberalization Programme after 1991 brought about rapid changes in the fields of banking. etc. software and pharma industries. Several old jobs have disappeared almost suddenly. As a result. In such a scenario companies have to step up their recruitment efforts to compete successfully for a small number of suitable candidates. Tamilnadu. there is a chronic shortage of people with requisite skills and knowledge especially in the fields of software.Environment Affecting Recruitment The Technological Environment New technologies create new jobs. recommendations of friends and relatives of management also play an important role in influencing recruitment policies followed by a firm. Arunachal Pradesh. The existing jobs undergo a rapid change. automobiles.also come in the way of recruiting people. etc.

mutual obligations of apprentices and employees. 1948: The Act prohibits the employment of women (night work. The Apprentices Act. as amended in 1986. . bonded labor.Environment Affecting Recruitment The Legal Environment The different legislative policies governing child labor. 'sons of the soil' have brought the legal environment to be a major item to be looked into carefully by all companies intending to recruit people for various positions. Let us examine the issues more elaborately: The Factories Act. carrying heavy loads. reservation. The Act. The responsibility for engagement of apprentice lies solely with the employer. 1961: The Act provides for a machinery to lay down syllabi and specify period of training. etc. etc. can be taken on regular rolls. provides for revised rates of compensation during the apprenticeship period and for failure on the part of the employer to execute the terms of the contract. contract labor. underground work.) and child labor (below 14 years of age) in certain jobs . after serving a contractual term of training. night shift work. The apprentice.

The Contract Labor Act. It tries to regulate the employment conditions of contract labor in certain establishments and also provides for the abolition of contract labor in certain circumstances. 1976: The Act provides for the abolition of bonded labor (system of forced labor to liquidate debts payable to parties who are bent on exploiting the vulnerability of the victim) or his family members. The Child Labor Act. 1959: The Act requires all employers to notify the vacancies arising in their establishments to prescribed employment exchange before they are filled. Bonded Labor System (Abolition) Act. The Act covers all establishments in Public Sector and nonagricultural establishments employing 25 or more workers in the private sector. This has become a serious issue in India recently when German firms refused to accept carpets exported from Uttar Pradesh. objecting to the employment of child labor in the carpet industry. 1970: The Act is applicable to every establishment (contractor) employing 20 or more persons. 1986: The Act prohibits the employment of children below 14 years of age in certain employments. .Environment Affecting Recruitment The Employment Exchanges Act.

Accordingly following three theories of recruitment have been evolved: • Objective factor theory • Subjective factor theory • Critical contact theory. . subjective factor and critical contact.Recruitment theories  As per Behling and others. there are three ways in which an individual make a decision to join an organization viz. objective factor.

• Location. . • Opportunity for career growth. (a) Objective Factor Theory: As per this theory the choice of organization by a potential employee depends on objective assessment of certain tangible factors. etc. such as the following: • Pay and perks. • Nature of work • Educational opportunities.

 (b) Subjective Factor Theory: According to this theory compatibility of individual personality with the image of organization is a decisive factor in choosing an organization by an individual candidate seeking employment .

out of alternatives based on objective or subjective factors. (c) Critical Factor Theory: there are instances when a candidate is unable to choose an organization. This is due to many reasons such as limited contact and insufficient data. certain critical factors observed by him during his interview and contact with personnel of the organization will have profound influence in his decision process . in regards to the organization or his own inability to analyze and come to any firm conclusion. In such cases.

Recruitment constraints for HR manager 1) 2) 3) 4) 5) Organization‟s image Attractiveness quotient Internal organizational policies Union requirements Influence of government .

Steps of recruitment process Recruitment policy Recruitment organization Manpower forecast Develop sources of recruitment & different techniques Asses the recruitment program .

be designed so as to ensure employment opportunities on long term basis to achieve organizational match the qualities of employees Highlight the meeting of established job analysis .Pre-requisites of a sound Recruitment Policy   Conformity with its general policies Should be     flexible enough to meet the changing needs of an organization.

if any . assigned to the Union in the formulation and implementation of Rec and selection policies .Principle elements governing Recruitment Policy      Identification of recruitment needs Preferred sources of recruitment Cost of recruitment and selection Criteria of selection techniques Role .

Permanent employees Present Temp/ Casual Retrenched / Retired Dependents of diseased .Sources of recruitment Internal     External   Present . Professional Associations Data banks Trade Unions . retired and present employees     Educational & Training Institutes Pvt employment agencies / consultants Public employment exchanges . disabled .

No expenses are incurred on advertising. As years roll by. Demerits (i) Limited choice: The organisation is forced to select candidates from a limited pool. „Known devils are better than unknown angels!‟. (ii) Suitable: The organisation can pick the right candidates having the requisite skills. may prove to be a blessing for inefficient candidates.Merits and demerits of hiring people from within Merits (i) Economical: The cost of recruiting internal candidates is minimal. (ii) Inbreeding: It discourages entry of talented people. commitment and enthusiasm. They will work with loyalty. It motivates them to work hard and earn promotions. (iv) Bone of contention: Recruitment from within may lead to infighting among employees aspiring for limited. (iv) Satisfying: A policy of preferring people from within offers regular promotional avenues for employees. It may have to sacrifice quality and settle for less qualified candidates. The candidates can choose a right vacancy where their talents can be fully utilised. (iii) Reliable: The organisation has knowledge about the suitability of a candidate for a position. (iii) Inefficiency: Promotions based on length of service rather than merit. higher-level positions in an organisation. available outside an organisation. . Existing employees may fail to behave in innovative ways and inject necessary dynamism to enterprise activities. They do not work hard and prove their worth. the race for premium positions may end up on a bitter note.

Where suitable ones are not available.Merits and demerits of hiring people from outside Merits Wide choice: The organisation has the freedom to select candidates from a large pool. Demerits Expensive: Hiring costs could go up substantially. Time consuming: It takes time to advertise. Long term benefits: Talented people could join the ranks. ultimately. screen. forces them to work with less enthusiasm and motivation. Persons with requisite qualifications could be picked up. the process has to be repeated. It may end up hiring someone who does not „fit‟ and who may not be able to adjust in the new set-up. Such a competitive atmosphere would help an employee to work to the best of his abilities. Motivational force: It helps in motivating internal employees to work hard and compete with external candidates while seeking career growth. Tapping multifarious sources of recruitment is not an easy task. Demotivating: Existing employees who have put in considerable service may resist the process of filling up vacancies from outside. . etc. either. will be able to hire the services of suitable candidates. Injection of fresh blood: People with special skills and knowledge could be hired to stir up the existing employees and pave the way for innovative ways of working. Uncertainty: There is no guarantee that the organisation. The feeling that their services have not been recognised by the organisation. to test and to select suitable employees. a competitive atmosphere would compel people to give of their best and earn rewards. new ideas could find meaningful expression.

Employee referrals: It is a kind of recommendation from a current employee regarding a job applicant. from one job to another.   Job posting: It is a method of publicising job openings on bulletin boards. electronic media and similar outlets by a company. on the other hand.Methods Of Recruitment Internal methods  Promotions and transfers: Promotion is the movement of an employee from a lower level position to a higher level position with increase in salary Transfer. is a lateral movement within the same grade. .

to have a higher job survival. . nepotism. It„s an excellent means of locating potential employees in those hard-to-fill positions. and eagerness to see their friends in the company may come in the way of hiring a suitable candidate. The recommender earns a reward and the company can avoid expensive recruiting search – in case the candidate gets selected.Possible benefits and costs of employee referrals  Recommender gives a realistic picture about the job. The applicant can weigh the pros and cons carefully before handing over the CV. Factors such as bias.   Recommenders may confuse friendship with job competence. The applicant is more likely to accept an offer if one is made and once employed.

Possibly the most popular way of hiring the best brains in the country. is not easy. Campus hiring. this method has to be used with lot of care and caution. . of course.Direct methods  Campus recruitment It is a method of recruiting by visiting and participating in college campuses and their placement centres.

who does not know how to conduct an evaluation interview.     The recruiter does not get involved in the development of the new employee: Because the recruiter often has the best rapport with the new employee. arrangements by the institute may not be upto the mark. he or she should become involved.Common Mistakes made in campus recruiting  Failure to utilise a full-time professional recruiter: Often recruitment is used as a training experience for new employees. prior shortlisting of students is not arranged. The recruiter is not professionally trained in interviewing: Professionally trained as used here means a minimum training period of three days of principles and practices using live interviews that are audio or videotaped and critiqued. constant interruptions occur during the visit. The actual plant visit is mishandled: Recruits are left waiting for scheduled appointments. etc. . The recruiter does not have the authority to make decisions with regard to hiring: Often this is reserved for the boss. This results in rapid turnover in the recruitment office.

not highly  Present a clear image  Do not oversell yourself  Get in early  Not everyone fits the bill .Guidelines for campus recruiting  Shortlist campuses  Choose recruiting team carefully  Pay smartly.

Indirect methods  Newspaper advertisements  Television and radio advertisements Third party methods  Private employment search firms  Employment exchanges  Gate hiring and contractors  Unsolicited applicants/walk-ins  Internet recruiting .

these payments do not accrue regularly. The employee benefits in the form of higher pay. the firm may sometimes go for subcontracting – instead of expanding capacities immediately. Cont… . to mutual advantage. overtime payments become quite routine and if. the firm can meet increased demand by allowing an outside specialist agency to undertake part of the work. Subcontracting: To meet a sudden increase in demand for its products and services. an overworked employee may prove to be less productive and turn out less than optimal performance. selection and training could be avoided. Meanwhile. employees become resentful and disgruntled.Alternatives to recruiting Overtime: Short term fluctuations in work volume could best be solved through overtime. Expansion becomes a reality only when the firm experiences increased demand for its products for a specified period of time. The employer benefits because the costs of recruitment. However. In course of time. for any reason. Employees may slow down their pace of work during normal working hours in order to earn overtime daily.

temporary workers do not remain loyal to the company.Alternatives to recruiting Temporary employees: Employees hired for a limited time to perform a specific job are called temporary employees. In this case the firm can avoid the expenses of recruitment and the painful effects of absenteeism. In this case. Employee leasing: Hiring permanent employees of another company who possess certain specialised skills on lease basis to meet short-term requirements – although not popular in India – is another recruiting practice followed by firms in developed countries. Cont… . individuals work for the leasing firm as per the leasing agreement/arrangement. A short term increase in demand could be met by hiring temporary hands from agencies specialising in providing such services. It can also avoid fringe benefits associated with regular employment. Such an arrangement is beneficial to small firms because it avoids expense and problems of personnel administration. They are particularly useful in meeting short term human resource needs. However. etc. It‟s a big business idea in United States these days ($3-$4 billion industry). labour turnover. they may take more time to adjust and their inexperience may come in the way of maintaining high quality.

This function is more commonly outsourced when firms are in seasonal business and have cyclical stuffing needs. statutory compliance etc. Many businesses have started looking at outsourcing activities relating to recruitment. surveys.. payroll processing. benchmark studies.Alternatives to recruiting Outsourcing: Any activity in which a firm lacks internal expertise and requires on unbiased opinion can be outsourced. training. because they do not have the time or expertise to deal with the situation. . HR heads are no longer keeping activities like resume management and candidate sourcing in their daily scrutiny. more closely.

.Evaluation of the sources of recruitment  Time lapse data: they show the time lag between the date of requisition for manpower supply from a department to the actual date of filling the vacancies in that department  Yield ratios: they show the number of contacts required to generate a given number of hires at a point of time.  Surveys and studies: they could be carried out to find out the suitability of a particular source for certain positions.

Recruitment Policies And Procedures A recruitment policy indicates the organisation‟s code of conduct in a specific area. Recruitment policy statement In its recruitment activities. the company will:  Advertise all vacancies internally      Reply to every job applicant promptly Inform job applicants the basic details and job conditions of every job advertised Process all applications with efficiency and courtesy Seek candidates on the basis of their qualifications Aim to ensure that every person invited for interview will be given a fair and thorough hearing Cont… .

.Recruitment Policies And Procedures The company will not:   Discriminate unfairly against potential applicants on the basis of sex. etc. Knowingly make any false or exaggerated claims in its recruitment literature or job advertisements A recruitment procedure will lay down a clear path to be followed by the HR department while hiring people. Of course. the procedures have to be framed in a flexible manner so as to permit the HR department to respond to the requests made by various departments and by potential candidates quickly. caste. religion. race. .

qualifications experience.)? Has a personnel specification/candidate‟s profile (in terms of physique.Questions to be asked while hiring people            Has the vacancy been agreed by a responsible manager? Is there an up-to-date job description for the vacancy? What are the conditions of employment for the vacancy (salary. fringe benefits. etc. etc. perquisites. intelligence. hours of work.) been prepared? Has a notice of the vacancy been circulated internally? Has a job advertisement been agreed? Have details of the vacancy been forwarded to relevant agencies? Do all potential candidates (internal or external) know where to apply and in what form? What are the arrangements for drawing up a shortlist of candidates? What about the interviewing dates and arrangements for selection of candidates? Have the shortlisted candidates or waitlisted candidates been informed sufficiently in advance and asked to furnish detailed references? Have unsuitable candidates or waitlisted candidates been informed of their position in a polite way thanking them for their interest and attendance? . holidays. aptitude.

As the Personnel Manager of Pepsi Foods remarked “we hire people who are capable of growing the business rather than just growing with the business”. They must have the ability to deal with ambiguity and informality.Recruitment: Indian Experiences Recruitment of trainees: expectations of Indian companies Pepsi: Pepsi is a flat organisation. Executives here emphasise achievement. motivation. There are a maximum of four reporting levels. They must have a winner‟s mindset and a passion for creating a dynamic change. the ability to deliver come what may. Cont… . Recruitees must be capable of thinking outside the box. cutting the cake of conventional barriers whenever and wherever necessary.

Employees are expected to have a passion for the fitness business and reflect the company‟s aspirations. the company places emphasis on youth. attention to personal appearance and assertiveness without aggression. Recruitees should be willing to do all kinds of job operations.Recruitment of trainees: expectations of Indian companies As Reebok‟s customers are young. Other criteria include: communication skills. Reebok: Indian Hotels: The Taj group expects the job aspirants to stay with the organisation patiently and rise with the company. a flat organisation and be able to take decisions independently and perform consistently with their clearly defined goals. . the ability to work long and stressful hours. Employees must be willing to say „yes sir‟ to anybody. The average age at Reebok is 26 years. They must also have an ability to cope with informality. The willingness to get one‟s hands dirty is important. mobility.

Entrepreneurial skills . 3. 5. 6. 2.Skills recruiters want in India 1. Ability to work in a team Analytical and problem solving skills Communication and other soft skills Creativity and resourcefulness Leadership potential General Managerial skills 7. 4.