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External source of
Internal source of
External recruitment is the assessment of

an available pool of job candidates,

other than existing staff,

to see if there are any:
sufficiently skilled or
qualified to fill

perform existing job vacancies. It is the process of
searching outside of the current employee pool to
fill open positions in an organization.
Private Employment Agencies/Consultants

Public Employment Exchanges

Data Banks

Similar Organizations

Trade Unions

Walk In

Consult In


Enables the organization to open up to a larger
pool of applicants, which increases its chance to
find the right person for the job.

External recruitment provides an opportunity for a
fresh outlook on the industry that a company may
need to stay competitive.

Bringing in fresh talent from the outside can help
motivate the current employees to produce and
achieve more in hopes of obtaining the next
promotional opportunity.


Hiring a candidate with a proven track record for
the competition allows the company to get an
insider's view as to what the competition is.

This gives the organization a chance to stay a step
ahead of the competition.

Hiring an external candidate also opens up many
opportunities to find experienced and highly
qualified and skilled candidates who will help a
company meet its diversity requirements.

Can take longer and also cost more than hiring from
within the organization.

Can also damage employee morale because current
employees may feel this lessens their chances for
employee morale decreases, productivity can also

It also takes more time to train an external candidate on
the systems the organization uses, therefore taking the
candidate a little longer to get up and running.

While a new employee may bring a fresh outlook and
ideas, this can also be considered a disadvantage, because
these ideas may produce conflict with current employees.

Internal Recruitment

The internal recruitment process is the passive career management tool.
The organization does not select employees for the promotion. They can apply for the
job vacancy, and they can enrich or change their career path. The internal recruitment
brings the internal fairness and allows to employees to prolong their career in the

On the other hand, the internal recruitment brings conflicts. Managers do
not support quick changes and best employees can disappear from the team quickly.
Most organizations apply the restrictive rules to the internal recruitment as the
organization enjoys the basic level of security. The internal recruitment is the
cheapest recruitment source. It does not require any specific care, and it works quite

HR usually has a clear goal of the ratio of the internal vs. external
recruitment. The high-performing organizations are able to fill 30% of specialized job
vacancies internally. The more complex the job vacancy is the higher chance of filling
the vacancy internally is.

Internal sources of Recruitment:

1. Present Permanent Employees : Organizations consider the candidates from this source for higher
level of jobs due to availability of most suitable candidates for jobs relatively or equally to external
sources, to meet the trade union demands and due to the policy of the organization to
motivate the present employees.

2. Present temporary/casual Employees: Organizations find this source to fill the vacancies relatively at
the lower level owing to the availability of suitable candidates or trade union pressures or in order
to motivate them on present job.

3. Retrenched or Retired Employees: Employees retrenched due to lack of work are given employment
by the organization due to obligation, trade union pressure etc. Sometimes they are re-employed
by the organization as a token of their loyalty to the organization or to postpone some
interpersonal conflicts for promotion.

4. Dependents of Deceased, Disabled, retired and present employees: Some organizations function
with a view to developing the commitment and loyalty of not only the employee but also his family

5. Employee Referrals: Present employees are well aware of the qualifications, attitudes, experience
and emotions of their friends and relatives. They are also aware of the job requirements and
organizational culture of their company. As such they can make preliminary judgment regarding the
match between the job and their friends and relatives.

Merits of Internal Recruitment

Internal candidates need less ramp-up time, ergo; quicker ROI .

It is time saving, economical, simple and reliable.

Hiring internally helps contributes to good morale by emphasizing employee
value .

It motivates the employee to work hard in order to get higher job in the
same organisation.

It develops loyalty and sense of responsibility.

Demerits of Internal Recruitment

Not adding to your headcount to offset attrition or facilitate growth.

Missing an opportunity to contribute to companys diversity .

It prevents new blood from entering the organization. new blood bring innovative
ideas, fresh thinking and dynamism in the organization.

It has limited scope because it is not possible to fill up all types of vacancies from
within the organization.

There may be bias or partiality in promoting or transferring a person within the
Selection has been regarded as the most important function
of HR department. It ensures the organization that; it has
right number, right kind of people at the right place and
at the right time.

Meaning and Definitions:
It is the process of differentiating between
applicants in order to identify (and hire) those with the
greater likelihood of success.

How crucial is selection process?
Its better not to select
then selecting a bad candidate.
the right candidate
the wrong candidate
the wrong candidate
the correct candidate
Selection process.
1. Preliminary Interview.
2. Selection Tests.
3. Employment Interview.
4. Reference and Background Checks.
5. Selection Decision.
6. Physical Examinations.
7. Job Offer.
8. Contract Of Employment.
9. Evaluation of Selection program.

1. Preliminary Interview:
The purpose of this interview is to scrutinize the applicants, i.e.
elimination of unqualified applications.
2. Selection Tests:
Different types of selection tests may be administrated,
depending on the job and the company. Generally tests are used to
determine the applicants ability, aptitude, and personality.
3. Employment Interview:
The interview is conducted at the beginning, and at the
selection process of the employment interview can be one- to-one
interview or panel interview.
4. Reference and Background Checks:
Many employers request names, address, telephone
numbers or references for the purpose to verify information.
5. Selection Decision:
Selection decision is the most critical of all steps in selection
process. The final decision has to be made from the pool of
individuals who pass the tests, interviews and references checks.

6. Physical Examinations:
After 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 examinations.
7. Job Offer:
The next step in selection process is job offer. Job offer is
made through a letter of appointment. Such a letter generally
contains a date by which the appointee must report on duty
8. Contract Of Employment:
Basic information is written in Contract of employment that
varies according to the levels of job. After the offer and acceptance of
the job certain document is the attestation form.
9. Evaluation of Selection program:
The broad test of effectiveness of the selection process is a
systematic evaluation .a periodic audit is conducted in the HR
department that outlines and highlights the areas which need to be
evaluated in the selection process

Selection Methods
The process of personnel selection involves
collecting information about individuals for the
purpose of determining suitability for
employment in a particular job.
This information is collected using one or more
selection devices or methods

Types of Selection Methods
Personality Tests
Biographical Data
Cognitive Ability Test
Physical Ability Tests
Work Samples
Self Assessments
Assessment Centers
A selection procedure designed to predict future job
performance on the basis of applicants' oral responses to
oral inquiries

Advantages & Disadvantages Of Interviews
Determines applicants
communicative or social
supplementary information
Assesses Applicant's job
Close Competition
determines compatibility
allows the applicant to ask

subjective evaluations are
decisions tend to be made
within the first few minutes of
the interview
interviewers form stereotypes
negative information seems to
be given more weight
not much evidence of validity
of the selection procedure
not as reliable as tests

Types Of Interviews
Unstructured Interview

Situational Interview The job-related situations are
usually identified using the critical incidents job analysis

Behavior Description Interviews

Comprehensive Structured Interviews

Structured Behavioral Interview The interviewee's
responses are scored with behaviorally anchored rating

Oral Interview Boards

Some Tips For Interviews
Tips For interviews
Minimize stereotypes.
Train Interviewers.
Personality Tests
A selection procedure measure the personality
characteristics of applicants that are related to future job
Personality tests typically measure one or more of five
personality dimensions: extroversion, emotional
stability, agreeableness, conscientiousness, and
openness to experience.
Advantages & Disadvantages of Personality
can result in lower turnover
due if applicants are selected
for traits that are highly
correlated with employees who
have high longevity within the
can reveal more information
about applicant's abilities and
can identify interpersonal
traits that may be needed for
certain jobs

applicant's training and
experience may have greater
impact on job performance
than applicant's personality
responses by applicant may
be altered by applicant's
lack of diversity
lack of evidence to support
validity of use of personality

Select traits carefully
Select tests carefully
Not used exclusively

Sample Questions Of Personality Tests
Biographical Data in Selection
Techniques for scoring application forms or biographical
questionnaires to be used for selection of applicants.
useful for jobs where a large number of employees are
performing the same or similar job
useful for jobs where there are a large number of
applicants relative to the number of openings

Types Of Biographical Data Selection Procedures

Background Information/Application Blanks

Empirically-keyed Biodata Applicants' scores are determined by
weighting each item according to the item's empirically derived
relationship to the criterion of interest. This technique requires a
validation study to be carried out in order to obtain the empirically
derived weights for the biodata.

Rationally-keyed Biodata Applicants' scores are determined by
weighting each item according to the item's rationally derived
relationship to the criterion of interest. Research indicates the predictive
validity of this technique may be lower than other available techniques
with no evidence for reduced adverse impact against minorities.

Cognitive Abilities Tests
Paper and pencil or individualized assessment measures
of an individual's general mental ability or intelligence.
These tests may be categorized as:
General Intelligence Tests
Aptitude Tests

Advantages & Disadvantages Of Cognitive
Ability Test
highly reliable
high validity for a wide range of
many applicants can be tested
at the same time
scoring of the tests may be
completed by computer
scanning equipment
lower cost than personality

non-minorities typically
score one standard
deviation above minorities
which may result in
adverse impact depending
on how the scores are used
in the selection process
differences between males
and females in abilities

Avoid pure intelligence tests
Adverse Impact
Follow the Instructions

Physical Abilities Tests
Tests typically test applicants on some physical
requirement such as lifting strength, rope climbing, or
obstacle course completion.
Advantages & Disadvantages Of Physical
Ability Test
can identify individuals who are
physically unable to perform the
essential functions of a job
without risking injury to
themselves or others
can result in decreased costs
related to disability/medical
claims, insurance, and workers
decreased absenteeism

costly to administer
requirements must be
shown to be job related
through a thorough job
may have age based
disparate impact against
older applicants

Work Sample Tests
Designed to have high content validity through a close
relationship with the job.
Work Sample tests are based on the premise that the
best predictor of future behavior is observed behavior
under similar situations. These tests require the
examinee to perform tasks that are similar to those that
are performed on the job.

Advantages & Disadvantages Of Work
Sample Tests
high reliability
high content validity
low adverse impact
difficult for applicants to fake
job proficiency
Work Sample tests use
equipment that is the same or
substantially similar to the
actual equipment used on the

costly to administer
these tests have less ability to
predict performance on jobs
where tasks may take days or
weeks to complete
less able to measure aptitudes
of an applicant thus restricting
the test to measuring ability to
perform the work sample and
not more difficult tasks that
may be encountered on the

Types of Work Sample Tests

Work-Sample Tests of Trainability These are tests through a period of
instruction when the applicant is expected to learn tasks involved in a
work sample.

Simulation of an Event .

Low Fidelity Simulations These tests present applicants with
descriptions of work situations and five alternative responses for each
situation. Applicants choose the responses they would most likely and
least likely make in each situation.

Work-samples Applicants perform observable, job-related behaviors as
predictors of criterion performance. It is not feasible to adapt certain
work behaviors for testing. Work samples often are not conducive to
group administration and, therefore, were dropped from consideration
because of concerns regarding test security.

This technique involves applicants generating self-
ratings on relevant performance .
Useful to clarify job performance expectations between
employees and supervisors, but initial discrepancies in
understanding of what job requirements and
performance dimensions between self- and supervisor
ratings cause problems in a performance appraisal

Assessment Center
An Assessment Center consists of a standardized
evaluation of behavior based on multiple evaluations
including: job-related simulations, interviews, and/or
psychological tests.
Job Simulations are used to evaluate candidates on
behaviors relevant to the most critical aspects (or
competencies) of the job.
Several trained observers and techniques are used.
Judgments about behavior are made and recorded. These
judgments are pooled in a meeting among the assessors or
by an averaging process.
In discussion among assessors, comprehensive accounts of
behavior, often including ratings, are pooled resulting in
evaluations of the performance.