You are on page 1of 52

Recruiting and Selecting Employees

© 2014 Cengage Learning India Pvt Ltd. All rights reserved.

Recruiting
The process of developing a pool of
qualified applicants who are interested in
working for the organization and from
which the organization might reasonably
select the best individual or individuals to
hire for employment.

© 2014 Cengage Learning India Pvt Ltd. All rights reserved.

Recruitment is defined as the process to
discover sources of manpower to meet staffing
requirements schedule

To employ effective measures for attracting
the right talent in adequate number.

Resorted to when all avenues to redeploy
existing manpower exhausted.

Very vital for successful growth of the
organization.

Purpose and Importance of Recruitment

• Recruitment is essential for filling up vacancies that
may arise time to time due to transfer, resignation,
termination or death of existing employees.
• To fill up existing employees’ critical skill gaps
organizations may need to recruit.

• Implicit costs of wrong hire include dissatisfied
customers, poor quality of product and service, low
productivity, low employee morale of existing
employees, and threat to company’s overall image.
© 2014 Cengage Learning India Pvt Ltd. All rights reserved.

Purpose and Importance of Recruitment

• Negligence hiring can put organizations
under legal threat.
• By ensuring legal compliance (through hiring
ethnic minority, women, disabled, and aged
individuals) organizations help to achieve
broader goal of providing social justice.

© 2014 Cengage Learning India Pvt Ltd. All rights reserved.

A sound recruitment policy needs to:  Identify the recruitment needs of the organization  Identify the preferred sources of organization  Frame suitable criteria for selection. .Recruitment Policy  Necessary for adopting a scientific process for recruitment.  Consider cost of recruitment.

5. 5–7 . Have candidates complete application forms and undergo initial screening interviews. 2. Decide what positions to fill through personnel planning and forecasting. Build a candidate pool by recruiting internal or external candidates.The Recruitment and Selection Process 1. by having the supervisor and others interview the candidates. Use selection tools to identify viable candidates. Decide who to make an offer to. 3. 4.

FIGURE 5–1 Steps in Recruitment and Selection Process The recruitment and selection process is a series of hurdles aimed at selecting the best candidate for the job. 5–8 .

All rights reserved. • Outsourcing – Non-core activities of organizations are nowadays getting outsourced to specialized external agencies.Organizations can reduce this cost by ensuring high retention of existing employees.When organizations have future expansion plans. © 2014 Cengage Learning India Pvt Ltd. .Factors governing Recruitment Internal Factors Influencing Recruitment • Company’s Size – Organizations with big size usually find it easier to recruit compared to small organizations. • Future expansion plans. • Cost. either in the existing or new markets then recruitment from outside becomes essential.

then this may force companies to have a relook at their existing recruitment policy. © 2014 Cengage Learning India Pvt Ltd. • Labor Market Condition–When there is surplus manpower available for a particular skill set then a simple walk-in ad in the newspaper may help originations to fill up vacant positions. All rights reserved. .Government time to time announces how much percentage of vacancies should belong to ethnic minorities (SC/STs/ physically disabled individuals). • Competitors-When competitors give better offers to existing or potential employees.Factors governing Recruitment External Factors Influencing Recruitment • Company’s image – Company’s image plays a vital role in attracting potential candidates. • Legal provisions in the country.

All rights reserved.1 Organizational and Individual Goals in Recruiting © 2014 Cengage Learning India Pvt Ltd. .Fig 4.

internet job sites.Sources of Recruitment  Employment Exchanges  Consultants & private employment agencies. periodicals. in newspaper. Radio/TV  Sources of existing employees & Referals  Universities & Mgt institutes  Trade Unions  Deputation .  Advts.

All rights reserved.Sources for Recruiting • Internal Recruiting  Looking inside the organization  Job posting  Supervisory recommendations • External recruiting  Looking to sources outside the organization for prospective employees © 2014 Cengage Learning India Pvt Ltd. .

Table 4. All rights reserved. .1 Advantages and Disadvantages of Internal and External Recruiting © 2014 Cengage Learning India Pvt Ltd.

5–15 .Internal Candidates: Hiring from WithinAdvantages Disadvantages • Foreknowledge of candidates’ strengths and weaknesses • More accurate view of candidate’s skills • Candidates have a stronger commitment to the company • Increases employee morale • Less training and orientation required • Failed applicants become discontented • Time wasted interviewing inside candidates who will not be considered • Inbreeding strengthens tendency to maintain the status quo.

All rights reserved.External Recruiting Methods Word-of-mouth Word-of-mouth Advertisements Advertisements College Collegeplacement placement offices offices © 2014 Cengage Learning India Pvt Ltd. Employment Employment agencies agencies Electronic Electronic recruiting recruiting .

All rights reserved.Electronic Recruiting • Advantages:  Cost effective  Time saver  Reaches a large number of applicants © 2014 Cengage Learning India Pvt Ltd. .

• Recruiting via the Internet  Advantages  Cost-effective way to publicize job openings  More applicants attracted over a longer period Immediate applicant responses Online prescreening of applicants Links to other job search sites Automation of applicant tracking and evaluation      Disadvantages    5–18 Exclusion of older and minority workers Excessive number of unqualified applicants Personal information privacy concerns of applicants .

.Employment Agencies • Public employment agencies • Private employment agencies • Executive search firms © 2014 Cengage Learning India Pvt Ltd. All rights reserved.

Internships: A Mixed Model • A form of temporary employment • Intern must be a good fit • Hiring an intern is a form of internal and external recruiting © 2014 Cengage Learning India Pvt Ltd. . All rights reserved.

All rights reserved. • Provides job applicants with an opportunity to observe others performing the work. . © 2014 Cengage Learning India Pvt Ltd.Realistic Job Preview Benefits • Helps ensure that job seekers understand the actual nature of jobs available to them.

All rights reserved. • Basic Selection Criteria  Education  Experience  Skills and abilities © 2014 Cengage Learning India Pvt Ltd. .The Selection Process • Selection Process  Is concerned with identifying the best candidate or candidates for jobs from among the pool of qualified applicants developed during the recruiting process.

Recruiting Yield Pyramid 5–23 .

All rights reserved.Steps in the Selection Process The Therecruiting recruiting process process Gather Gatherinformation informationabout about pool poolof ofqualified qualifiedapplicants applicants Evaluate Evaluatethe thequalifications qualifications of ofeach eachapplicant applicant Make Makedecisions decisionsabout about employment employmentoffers offers © 2014 Cengage Learning India Pvt Ltd. .

All rights reserved.Big Five Personality Traits Neuroticism Neuroticism Extraversion Extraversion Agreeableness Agreeableness © 2014 Cengage Learning India Pvt Ltd. Openness Opennessto to experience experience Conscientiousness Conscientiousness .

Outside Sources of Candidates Locating Outside Candidates 5–26 1 Recruiting via the Internet 6 Executive Recruiters 2 Advertising 7 On Demand Recruiting Services (ODRS) 3 Employment Agencies 8 College Recruiting 4 Temp Agencies and Alternative Staffing 9 Referrals and Walk-ins 5 Offshoring/Outsourcing .

Developing and Using Application Forms Uses of Application Information Applicant’s education and experience 5–27 Applicant’s progress and growth Applicant’s employment stability Applicant’s likelihood of success .

Fig 4. .3 A Sample Selectio n System © 2014 Cengage Learning India Pvt Ltd. All rights reserved.

Biodata Biodata application application .Employment Applications Types Types of of employment employment applications applications Weighted Weighted application application © 2014 Cengage Learning India Pvt Ltd. All rights reserved.

.4 A Sample Employmen t Application © 2014 Cengage Learning India Pvt Ltd.Fig 4. All rights reserved.

Fig.4 A Sample Employmen t Application (cont’d) © 2014 Cengage Learning India Pvt Ltd. . All rights reserved. 4.

Cognitive ability tests  Psychomotor ability tests  • Personality Tests  Measure traits. or tendencies to act. .Testing Applicants • Employment Tests  Measure the characteristics of an individual. such as personality. intelligence. All rights reserved. or aptitude. that are relatively unchanging in a person. Self-report inventory  Projective technique  © 2014 Cengage Learning India Pvt Ltd.

. All rights reserved.Fig 4.5 Sample Items from an Employment Test © 2014 Cengage Learning India Pvt Ltd.

• Work Simulations (or Work Samples)  Ask the prospective employee to perform tasks or job-related activities that simulate or represent the actual work for which the person is being considered. © 2014 Cengage Learning India Pvt Ltd. .Employment Tests (cont’d) • Integrity Tests  Attempt to assess an applicant’s moral character and honesty. All rights reserved.

. All rights reserved.Employment Tests (cont’d) • In-Basket Exercises  A type of work simulation for prospective managers. consist of collections of hypothetical: Memos  Letters  Notes that require responses  © 2014 Cengage Learning India Pvt Ltd.

. All rights reserved. © 2014 Cengage Learning India Pvt Ltd.Personal Interviews A selection technique that uses a face-toface conversation between the job applicant and a representative of the organization as part of the selection process.

All rights reserved.Personal Interviews (cont’d) Types Types of of Interviews Interviews Structured Structured employment employment interview interview SemiSemistructured structured employment employment interview interview © 2014 Cengage Learning India Pvt Ltd. Unstructured Unstructured employment employment interview interview Situational Situational interview interview .

Personal Interviews (cont’d) Types Types of of Interview Interview Errors Errors First First impression impression errors errors Contrast Contrast errors errors © 2014 Cengage Learning India Pvt Ltd. Similarity Similarity errors errors Non-relevancy Non-relevancy errors errors . All rights reserved.

STARTEGIES FOR SELECTION DECISION MAKING • MULTIPLE REGRESSION • MULTIPLE CUT OFFS • MULTIPLE HURDLE • COMBINATION METHOD • HOW TO FIX CUT OFF • BANDING-APPLICANT’S SCORE WITHIN A RANGE TREATED SAME • USE RELIABLE AND VALID SELECTION PROCEDURE • SEE PERFORMANCE ONCE SELECTED FOR PERIODIC AUDIT .

PREDICTORS OF JOB PERFORMANCE • APPLICATION FORMS • TRAINING & EXPIERENCE EVALUATION • REFERENCE CHECKS • WEIGHTED APPLICATION BLANKS • BIOGRAPHICAL DATA • SELECTION INTERVIEWS • ABILITY TESTS .

PREDICTORS OF JOB PERFORMANCE…CONTD • PERSONALITY ASSESSMENT • PERFORMANCE TESTS • ASSESSMENT CENTRES • INTEGRITY TESTING • GRAPHOLOGY .

© 2014 Cengage Learning India Pvt Ltd. All rights reserved. they would have been successful. but had they been hired. • False Negatives  Applicants who are predicted to fail and are not hired.Selection Errors • False Positives  Applicants who are predicted to be successful and are hired but ultimately fail. .

All rights reserved. .6 Selection Errors © 2014 Cengage Learning India Pvt Ltd.Fig 4.

.Reliability and Validity • Reliability  The consistency of a particular selection device. not the same as accuracy • Validity  Whether or not an assessment tool measures what it is supposed to  Must be determined empirically to defend against charges of hiring discrimination © 2014 Cengage Learning India Pvt Ltd. All rights reserved.

• Individual's knowledge. • By choosing the right kind of human resource organizations can ensure long term sustainability. © 2014 Cengage Learning India Pvt Ltd. . and attitude contribute to a great extent in sustaining corporate culture and competitiveness.Human capital in general has all these critical characteristics. valuable. All rights reserved. • Research suggests good fit between strategic skills of executives and organizational strategy ensures high rate of return. skill. inimitable and non-substitutable give long term competitive advantage to organization.Competitive Advantage through Selection • Strategic Management has argued that resources which are rare.

• Orientation is one day (first day) activity. Induction. and may include simple things as telling employees where to park the car or duration of lunch time. rules and procedures. mission. • Whereas at least first 90 days of integrating new hire into the new organization can be referred as on boarding. but onboarding is about helping new employees develop right attitude. All rights reserved. Onboarding and Placement • Orientation provides an overview to newly hired employees about organizational history. © 2014 Cengage Learning India Pvt Ltd. .Orientation.

internal and external contact points. whereas onboarding is a much broader term and includes complete acclimatization of employees and engaging them within the organization. •Induction Training may impart varying degree of knowledge ranging from generic material to very specific aspects of the job. workplace policies and procedures. •Induction is process focused. Onboarding and Placement •Onboarding starts even much before an employee formally joins the organization. © 2014 Cengage Learning India Pvt Ltd. .Orientation. Induction. All rights reserved. it begins just after an employee gets the offer letter and continues much beyond three months period.

culture  Handing over existing organizational chart. . • Placement involves actual posting of an employee to a particular job with a specific rank and responsibility © 2014 Cengage Learning India Pvt Ltd.Orientation. values. special luncheons between new and existing employees  Rotating assignments if the job permits that. Onboarding and Placement • For effective onboarding organizations may include the following:  Training employees using videos/lectures for letting them know company's history. Induction. relevant contact details  Sharing policy and procedural documents. All rights reserved.  Mentoring/Coaching of employees who can offer advice and provide support for understanding organization’s culture  Conducting meeting with new employees for clarifications of any rule or procedure  Team building exercises.

Placement  Defined as assigning employees jobs for which they have been selected  Most organizations keep probation period to ascertain suitability & placement.  Adoption of a periodic job rotation policy. .  Organization to identify true potential o an employee for best fit.

All rights reserved. .END © 2014 Cengage Learning India Pvt Ltd.

All rights reserved. Content Content Validity Validity Construct Construct validity validity .Validity Forms Forms of of Test Test Validity Validity CriterionCriterionrelated related validity validity © 2014 Cengage Learning India Pvt Ltd.

.10 (e). and .80 (d). © 2014 Cengage Learning India Pvt Ltd.00 (a).7 Scatter Plots for Five Correlation Coefficients These diagrams illustrate correlations of 1. –1.00 (b). All rights reserved. . zero (c).Fig 4.