Recruitment

According to Edwin B. Flippo, “It is a process of searching for prospective

employees and stimulating and encouraging them to apply for jobs in an
organisation.”
Process of recruitment
(A) Recruitment Planning

• A good recruitment plan includes the following:

• 1.Identifying Vacancy: This process begins with receiving the
requisition for recruitments from different department of the
organization to the HR Department, which contains −
• Number of posts to be filled
• Duties and responsibilities to be performed
• Qualification and experience required
2.Job Analysis :Job analysis is a process of identifying, analyzing, and determining the duties, responsibilities, skills, abilities, and work environment of a specific job.

• The immediate products of job analysis are:

• job descriptions and
• job specifications.

• 3.Job Evaluation:Job evaluation is a comparative process of analyzing,

assessing, and determining the relative value/worth of a job in
relation to the other jobs in an organization.
(B) Recruitment Strategy development :
After completing the preparation of job descriptions and job specifications, the
next step is to decide which strategy to adopt for recruiting the potential
candidates for the organization.

• While preparing a recruitment strategy, the HR team considers the following

points −
• Make or buy employees
• Types of recruitment
• Geographical area
• Recruitment sources
(C) Searching the Right Candidates

• Searching is the process of recruitment where the resources are sourced

depending upon the requirement of the job. After the recruitment strategy is
done, the searching of candidates will be initialized. This process consists of two
steps −

• Source activation − Once the line manager verifies and permits the existence of
the vacancy, the search for candidates starts.

• Selling − Here, the organization selects the media through which the
communication of vacancies reaches the prospective candidates.
(C) Screening / Shortlisting
Screening starts after completion of the process of sourcing the candidates.
Screening is the process of filtering the applications of the candidates for further
selection process.
• The screening process of recruitment consists of three steps –
• Reviewing of Resumes and Cover Letters
• Conducting Telephonic or Video Interview
• Identifying the top candidates

• (D)Evaluation and Control

• Evaluation and control is the last stage in the process of recruitment. In this
process, the effectiveness and the validity of the process and methods are
assessed. Recruitment is a costly process, hence it is important that the
performance of the recruitment process is thoroughly evaluated.
 Sources of recruitment

• Internal Sources of recruitment

• Internal sources of recruitment refer to hiring employees within the
organization through −
• Promotions
• Transfers
• Former Employees
• Employee Referrals
• Previous Applicants
External Sources of recruitment

• Direct Recruitment
• Employment Agencies
• Advertisements
• Professional Associations
• Campus Recruitment
 Selection
• Selection is the process of choosing the most suitable candidates from
those who apply for the job. It is a process of offering jobs to desired
candidates.
• Dale Yoder said, “Selection is the process by which candidates for
employment are divided into classes those who will be offered
employment and those who will not.”
• David and Robbins said, “Selection process is a managerial decision-
making process as to predict which job applicants will be successful if
hired.”
Process of selection:
Barriers of effective selection: The main objective of selection is to hire people having
competence and commitment. This objective is often defeated because of certain barriers. The
impediments which check effectiveness of selection are given as:
PERCEPTION: our views are highly personalized. We all perceive the world
differently. Our limited perceptual ability is sometimes becomes a
stumbling block to the objective and rational selection of people.
• Fairness: Fairness in selection requires that no individual should be
discriminated against on the basis of religion, region, race or gender.
• Validity: a test that helps predict job performance of an incumbent. A
test that has been validated can differentiate between the employees
who can perform well and those will not. However, a validated test
does not predict job success accurately. It can only increase possibility
of success
• Reliability: A reliable method is one which will produce consistent
results when repeated in similar situations. Like a validated test, a
reliable test may fail to predict job performance with precision.
• Pressure: Pressure is brought on the selectors by politicians,
bureaucrats, relatives, friends and peers to select particular candidates.
Candidates selected because of compulsions are obviously not the
right ones. Appointments to public sector undertakings take place
under such pressures.
 Concept of placement and induction

• Placement
• Placement is a process of assigning a specific job to each of the selected candidates. It
involves assigning a specific rank and responsibility to an individual. it involves initial
assignment of new employee and promotion, transfer or demotion of an exixting
employee.
• IMPORTANCE OF PLACEMENT
• To assign responsibilities what they have to perform
• match the requirementsof the job with candidates qualifications
• Induction
• Once an employee is selected and placed on an appropriate job, the process of
familiarizing him with the job and the organization is known as induction.
• Induction is the process of receiving and welcoming an employee when he first joins the
company and giving him basic information he needs to settle down quickly.
 Training

• Meaning of training :
• Training is the process of teaching the new and/or present
employees the basic skills they need to effectively perform
their jobs. Alternatively speaking, training is the act of
increasing the knowledge and skills of an employee for doing
his/her job.
• According to Edwin B. Flippo, “training is the act of increasing
the knowledge and skills of an employee for doing a
particular job.”
 Nature of training:
• Training is a must in every organization.
• The alternative to systematic training is training through ‘trial and error’, which is
more costly, time-consuming and nerve-racking.
•  Expenditure on training is not an expense but an investment in human resource
development.
• Training matches individual’s abilities with job and organizational requirements. 
•  In industry training enhances three broad skills:
• I) Motor or technical skills: skill in using the operating system (machines,
• methods, men) in the desired directions in most efficient and effective manner
• ii) Cognitive or decision-making skills: skill in comprehending and responding to
surrounding developments,
• iii) Interpersonal or human relation skills: skill in interacting with people in groups.
 Needs of training:
• Training is given on four basic grounds:
• New candidates who join an organization are given training. This training
familiarize them with the organizational mission, vision, rules and regulations
and the working conditions.
• The existing employees are trained to refresh and enhance their knowledge.
• If any updations and amendments take place in technology, training is given
to cope up with those changes.
• When promotion and career growth becomes important training is given so
that employees are prepared to share the responsibilities of the higher level
job.
Importance of training:
• Improved employee performance 
• Addressing weaknesses
• Increased productivity and adherence to quality standards 
• Increased innovation in new strategies and products
• Enhances company reputation and profile.
• Reduce supervisory needs
•  Improve organizational flexibility and viability
 Types of training
• Literacy training :  is training for things like reading, writing and problem-solving
skills. Once the employees learned how to read, write and understand the written
word to solve problems, they were better able to communicate with each other.
• Interpersonal skills training: is training on how to maintain positive relationships,
communicate better, resolve conflicts and build trust. 
• Technical training: training on computer software and hardware offered to
employees depending on their position.
• Problem-solving: training provided to helps employees develop a pattern to solve
problems: Discover them, understand them, tackle them, and then solve them. 
• Diversity or sensitivity training: training program designed to facilitate positive
intergroup interaction, reduce prejudice and discrimination, and generally teach
individuals who are different from others how to work together effectively
 Methods of training
• 1.On-the-job training or internal training
• 2. Off-the-job Methods or external training
• On-the-job training or internal training:
•
These methods are generally applied in the workplace while employees are actually
working.
• 1. Job rotation: This training method involves movement of trainee from one job to
another gain knowledge and experience from different job assignments. This method
helps the trainee understand the jobs of other employees.
• 2. Coaching:
• Under this method, the trainee is placed under a particular supervisor who functions as a
coach in training and provides feedback to the trainee.
• 3. Job instructions:
• Also known as step-by-step training in which the trainer explains the way of doing the jobs
to the trainee and in case of mistakes, corrects the trainee.
• 4. Understudy:
• In this method, a superior gives training to a subordinate as his understudy like
an assistant to a manager or director (in a film). The subordinate learns through
experience and observation by participating in handling day to day problems.
Basic purpose is to prepare subordinate for assuming the full responsibilities
and duties.
• 5. Apprenticeship:
• Apprenticeship is a system of training a new generation of practitioners of a
skill. This method of training is in vogue in those trades, crafts and technical
fields in which a long period is required for gaining proficiency. They have to
work in direct association with and also under the direct supervision of their
masters.
• The apprentices are paid remuneration according the apprenticeship
agreements.
• 2. Off-the-job Methods:
.
• On the job training methods have their own limitations, and in order to have the overall
development of employee’s, off-the-job training can also be imparted. The methods of
training which are adopted for the development of employees away from the field of the job
are known as off-the-job methods.
• The following are some of the off-the-job techniques:
• 1. Case study method:
• Usually case study deals with any problem confronted by a business which can be solved by
an employee. The trainee is given an opportunity to analyse the case and come out with all
possible solutions. This method can enhance analytic and critical thinking of an employee.
• 2.Role play:
• In this case a problem situation is simulated asking the employee to assume the role of a
particular person in the situation. The participant interacts with other participants assuming
different roles. The whole play will be recorded and trainee gets an opportunity to examine
their own performance.
• 3. In-basket training:
• In-basket exercise, also known as in-tray training, consists of a set of business papers which
may include e-mail ,SMSs, reports, memos, and other items. Now the trainer is asked to
prioritise the decisions to be made immediately and the ones that can be delayed.This can
develop situational judgments and quick decision making skills of employees.
• 4. Lectures:
• This will be a suitable method when the numbers of trainees are quite large. Lectures can
be very much helpful in explaining the concepts and principles very clearly, and face to face
interaction is very much possible.
• 5. Vestibule Training
• Vestibule training is a method in which trainees learn on the actual or simulated equipment
they will use on the job, but are trained off the job (perhaps in a separate room or
vestibule). Vestibule training is necessary when it’s too costly or dangerous to train
employees on the job.
Principles of Training
• The following principles can help to make training more effective:
• 1. Principle of Clear Objectives: The objectives and the reason behind the training
programme should be clear.
• 2. Principle of Training Policy:
• A clear defined training policy serves as a guide for designing and implementing
training programme.
• 3. Principle of Learning Period:
• Learning time and teaching in segments is better than in one go. Several short
session spread over a long period enable the trainee to learn and review.
• 4. Principle of Reinforcement:
• When a behaviour is repeatedly rewarded, it becomes a permanent part of one’s
personality. Learning is more effective when there is reinforcement in the form of
rewards and punishments.
• 5. Principle of Motivation:
• Employee tends to be most responsive to training programmes. When they feel
the need to learn. Therefore, training must be related to the needs and
problems of the trainees as well as to their abilities and aptitudes.
• 6. Principle of Organized Material:
• Training material should be properly organized. A complete outline of the
whole programme should be distributed in advance so that the trainees can
prepare themselves before coming.
• 7. Principle of Feedback:
• Trainers should be provided information on how much they have learnt and
how they are doing. The feedback should be positive, fast and proper.
• 8. Principle of Participation
• Training is conducted for a specific purpose, primarily to make the trainees gain
the maximum out of it.
 Compensation Management
• What is compensation?
• Compensation is referred to as money and other benefits received by an employee
for providing services to his employer.

• Compensation refers to all forms of financial returns: tangible services and benefits
employees receive as part of an employment relationship, which may be
associated with employee’s service to the employer, like provident fund, gratuity,
insurance scheme and any other payment which the employee receives in lieu of
such payment.
• According to Dale Yoder, “Compensation is paying people for work”.

• “Compensation is what employees receive in exchange for their contribution to

the organization”. – Keith Davis
Meaning of compensation management

• Compensation management is the practice of the organization that

involves giving monetary as well as non-monetary rewards to the
employees, in order to compensate for the time they allocate to their
job.
Objectives of compensation management are;

1. Acquire qualified personnel.

2. Retain current employees.
3. Ensure equity.
4. Reward desired behavior.
5. Comply with legal regulations.
6. Control costs
7. Motivating Personnel.
8. To maintain consistency in Compensation
 Components of compensation:
• Components of compensation means components of remuneration to
employees. An average employees in the organized sector is usually entitled to
various benefits. These benefits include both financial and non-financial
benefits. Specifically, the components of remuneration to an employee can be
devided into two heads
• 1.monetary benefits which can further classified into two heads:
• (i)fixed pay or guaranteed pay i.e wages or salaries,
• (ii)and variable pay i.e incentives, fringe benefits, perquisites etc.
• 2.non-monetary benefits.
 A.Monetary compensation:
• 1. Wages and Salary:

• Wages and salary are generally paid on monthly basis, though many
times, wages are paid on hourly or daily basis.Wages and salary are
subject to annual increments. They differ from job to job, depending upon
the nature of the job.
2. Incentives:

• Incentives which are also called ‘payments by results’ are paid to the
employees in addition to wages and salaries. Incentives depend upon
productivity or efficiency of the workers, sales effected, profit earned or
cost reduction efforts.
• Incentives schemes may be classified as – (i) individual incentive schemes
and (ii) group incentive schemes. Individual incentive scheme is
applicable to specific individual employee’s performance but group
incentive scheme is applicable to a group of workers who are required to
complete collectively a given work in a given time. The incentive amount
paid to the group is divided among the group members on equitable
basis.
3. Fringe Benefits:

• Fringe benefits which are given to employee include such benefits as

provident fund, gratuity, medical care, hospital allowance, accident
relief, health insurance, canteen benefits, recreation, leave-travel
allowance, etc.
4. Perquisites:

• Perquisites are the allowances given executives and other higher level
officers. They include such allowances as company car, club
membership, paid holidays, furnished residential bungalows, stock
option schemes, foreign travel benefits etc.
B. Non-Monetary Benefits:

• Non-monetary benefits include such benefits which are given in kind

and not in terms of money. They include such benefits as recognition
of merit, issue of merit certificates, job responsibilities, growth
prospects, competent supervision, comfortable working conditions,
job-sharing, flexi-time etc.