Human Resource

Management
Course Code: 21241101
 Nature of Recruitment
• HRP HELPS DETERMINE THE NUMBER AND TYPE OF PEOPLE A FIRM NEEDS.
• Job analysis and job design specify the tasks and duties of jobs and the qualifications expected
from prospective job holders.
• The next logical step is to hire the right number of people of the right type to fill the jobs.
Hiring involves two broad group of activities:
 Recruitment
 Selection
• In simple terms, recruitment involves attracting and obtaining as many applications as possible
from eligible job-seekers.
• ‘Recruitment’ refers to the process of receipt of applications from job-seekers. In reality, the term
is used to describe the entire process of employee hiring.
 Purpose and importance of Recruitment

The general purpose of recruitment is to provide a pool of potentially qualified job candidates.
Specifically, the purposes are to:
 Determine the present and future requirements of the firm in conjunction with its personnel-
planning and job-analysis activities.
 Increase the pool of job candidates at minimum cost.
 Help increase the success rate of the selection process by reducing the number of visibly under-
qualified or overqualified job applicants.
 Meet the organization’s legal and social obligations regarding the composition of its workforce.
 Begin identifying and preparing potential job applicants who will be appropriate candidates.
 Begin identifying and preparing job applicants who will be appropriate candidates.
 Increase organizational and individual effectiveness in the short and long term.
 Nature of Recruitment
• 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 eventually decide
whether they wish to work for it.
• A well-planned and well-managed recruiting effort will result in high-quality applicants, whereas,
a haphazard and piecemeal effort will result in mediocre ones.
• High-quality employees cannot be selected when better candidates do not know of job openings,
are not interested in working for the company, and do not apply.
• The recruitment process should inform qualified individuals about employment opportunities,
create a positive image for the company, provide enough information about the jobs so that
applicants can make comparisons with their qualifications and interests, and generate enthusiasm
among the best candidates so that they will apply for the vacant positions.
• Recruitment lends itself as a potential source of competitive advantage to a firm. An effective
approach to recruitment can help a company successfully compete for limited human resources.
 Importance of Recruitment

A recruiting programme helps the firms in at least four ways:

 Attract highly qualified and competent people.
 Ensure that the selected candidates stay longer with the company.
 Make sure that there is match between cost and benefit.
 Help the firm create more culturally diverse workforce.
 Factors influencing Recruitment

External
Internal factors:
factors:
Recruitment
Supply and
policy
demand
HRP
Unemployment Recruitment Size of the firm
rate
Cost
Labour market
Growth and
Political-legal
expansion
Image
   
 
 Recruitment Process
The process comprises five interrelated stages:
 Planning
 Strategy development
 Searching
 Screening
 Evaluation and Control
Recruitment Process (Contd…)
Sources of Recruitment
Internal and External Recruitments: Advantages and Disadvantages

Internal Recruitment
S.N.O Advantages Disadvantages
1.   It is less costly. It perpetuates the old concept of doing things.
1.   Candidates are already oriented towards It abets raiding.
company.

1.   Organizations have better knowledge Candidates’ current work may be affected.

about the internal candidates.

1.   Enhancement of employee morale and Politics play greater role.

motivation.

1.  
Good performance is rewarded. Morale problem for those not promoted.
 External Recruitment

S.N.O Advantages Disadvantages

1.   Benefits of new skills, new talents and Better morale and motivation associated with
new experiences to organizations. internal recruiting is denied to the company.

2. Compliance with reservation policy It is costly.

becomes easy.

3. Scope for resentment, jealousies and Adjustment of new employees to the

heart-burn are avoided. organizational culture takes longer time.
 Evaluation and Control
Evaluation and control is necessary as considerable costs are incurred in the recruitment process.
The costs generally incurred are:
 Salaries for recruiters.
 Management and professional time spent on preparing job description, job specifications,
advertisements, agency liaison, and so forth.
 Cost of advertisements or other recruitment methods, that is, agency fees.
 Recruitment overheads and administrative expenses.
 Costs of overtime and outsourcing while the vacancies remain unfilled.
 Cost of recruiting suitable candidates for the selection process.
 Evaluation of Recruitment Process
• The recruitment process has the objectives of searching for and obtaining applications from job-
seekers in sufficient numbers and quality.
• Keeping this objective in mind, the evaluation might include:
 Number of initial enquiries received which resulted in completed application forms.
 Number of candidates at various stages of the recruitment and selection process, especially those
shortlisted.
 Number of candidates recruited.
 Number of candidates retained in the organization after six months.
 Nature of Selection

‘Selection’ is the process of picking individuals (out of the pool of job applicants) with requisite
qualifications and competence to fill jobs in the organization.
 Recruitment and selection are the two crucial steps in the HR process and are often used
interchangeably. There is, however, a fine distinction between the two steps.
 While recruitment refers to the process of identifying and encouraging prospective employees to
apply for jobs, selection is concerned with picking the right candidates from a pool of applicants.
 Recruitment is said to be positive in its approach as it seeks to attract as many candidates as
possible.
 Selection, on the other hand, is negative in its application as much as it seeks to eliminate as many
unqualified applicants as possible in order to identify the right candidates.
 Selection as a source of Competitive advantage

The role of selection in an organization’s effectiveness is crucial for four reasons:

 Improving Employee Engagement
 Cost- Cost is a major reason why effective recruitment and selection is important. There are many
ways in which poor recruitment practices can result in financial losses.
 For example, if a candidate's competency is not accurately assessed, he may make mistakes that
can hinder productivity. If he needs to be retrained or replaced, this takes up more company time
that could otherwise be invested toward remaining competitive.
 Retention- Improper recruitment and selection practices can often result in high turnover or
involuntary separations.
 If a recruiter is not careful when analyzing resumes and conducting interviews, she may hire an
employee with a weak work ethic or a tendency to move quickly from one job to the next -- "job
hopping." 
 Loyalty and Productivity- Generally, loyal employees will have a track record of striving for
excellence, resulting in a more competitive, innovative and profitable business.  
 Employees who feel dedicated to the organization will work hard to help it succeed.
 Selection Process

• The selection process can be defined as the process of selection and shortlisting of the right
candidates with the necessary qualifications and skill set to fill the vacancies in an organization. 
• Selection is a long process, commencing from the preliminary interview of the applicants and
ending with the contract of employment.
• In practice, the process differs among organizations and between two different jobs within the
same company.
 Selection Process

1. Preliminary Interview: Initially, the applications received from job seekers would be subject to
scrutiny so as to eliminate unqualified applicants.
• This is usually followed by a preliminary interview the purpose of which is more or less the same
as scrutiny of applications, that is, elimination of unqualified applications.
• It enables the HR specialists to eliminate unqualified job seekers based on the information
supplied in their application forms.
2. Selection Tests: Job seekers who pass the screening and the preliminary interview are called for
tests. Different types of tests may be administered, depending on the job and the company.
Generally, tests are used to determine the applicant’s ability, aptitude and personality.
• Ability tests (also called achievement tests) assist in determining how well an individual can
perform tasks related to the job.
• An aptitude test helps determine a person’s potential to learn in a given area.
• Personality tests are given to measure a prospective employee’s motivation to function in a
particular working environment. For e.g., The Thematic Apperception Test (TAT) assesses an
individual’s achievement and motivational levels.
Selection Process (Contd…)

3. Employment Interview: The next step in the selection process is employment interview. An
interview is conducted at the beginning and at the end of the selection process. Interview is a
formal, in-depth conversation conducted to evaluate the applicant’s acceptability.
• Objectives of Interviews-
• Helps obtain additional information from the applicant;
• Facilitates giving general information to the applicant such as company policies, job, products
manufactured and the like;
• Helps build the company’s image among the applicants.
 Selection Process (Contd…)

Type Type of Questions Usual Applications

Structured A predetermined checklist of questions, Useful for valid results, especially when
usually asked of all applicants. dealing with large number of applicants.
Unstructured Few, if any, planned questions. Questions are Useful when the interviewer tries to probe
made up during interview. personal details of the candidate to analyze
why they are not fit for the job.
Mixed A combination of structured and unstructured A realistic approach that yields comparable
questions, which resembles what is usually answers plus indepth insights.
done in practice.
Behavioral Questions limited to hypothetical situations. Useful to understand applicant’s reasoning
Evaluation is based on the solution and and analytical abilities under modest stress.
approach of the applicant.
Stressful A series of harsh, rapid fire questions Useful for stressful jobs, such as handling
intended to upset the applicant. complaints.
Selection Process (Contd…)

4. Reference and Background Checks- Many employers request names, addresses, and
telephone numbers or references for the purpose of verifying information and, perhaps, gaining
additional background information on an applicant.
• Companies normally seek letters of reference or telephone references. The latter is advantageous
because of its accuracy and low cost.
 Reference checks cover the following:
 Criminal record checks
 Previous employment check
 Educational record checks
 Credit record checks
 Civil record checks
 Union affiliation checks
 Character reference check
Selection Process (Contd…)

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 in the selection process
have been used to narrow the number of candidates.
• The final decision indeed becomes a daunting task when there are a large number of job-seekers
lined up for final selection, as has happened to HR people in Infosys. In 2003, the Bangalore based
software giant received one million applications of which only 10,000 were finally hired.
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 personnel records.
7. Job Offer- The next step in the selection process is job offer to those applicants who have
crossed all the previous stages. Job offer is made through a letter of appointment.
 Selection Process (Contd…)

8. Contract of Employment- After the job offers have been made and the candidates accept the
offers, certain documents need to be executed by the employers and the candidates. One such
document is the attestation form. This form contains certain vital details about the candidate which
are authenticated and attested by him/her. Attestation form will be a valid record for 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 checklists sets out the headings:
1. Job title
2. Duties, including a phrase 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, allowances, overtime and shift rates, method of payments.
5. Hours of work including lunch break and overtime and shift arrangements.
6. Holiday arrangements:
• (i) paid holidays per year
• (ii) calculation of holiday pay
• (iii) qualifying period
Selection Process (Contd…)

• (iv) accrual of holidays and holiday pay

• (v) details of holiday year
• (vi) dates when holidays can be taken
• (vii) maximum holiday that can be taken at any one time
• (viii) carryover of holiday entitlement
 7. Sickness
• (i) pay for time lost
• (ii) duration of sickness payments
• (iii) deductions of national insurance benefits
• (iv) termination due to continued illness
• (v) notification of illness
Selection Process (Contd…)

 8. Length of notice due to and from employee.

 9. Grievance procedure
 10. Disciplinary procedure
 11. Work rules
 12. Arrangements for terminating employment
 13. Arrangements for union membership (if applicable)
 14. Special terms relating to rights to patents and designs, confidential information and restraints
on trade after termination of employment.
 15. Employer’s right to vary terms of the contact subject to proper notification being given.
 Evaluation of Selection Process

• Selection is said to be right when right people are hired for right jobs and at right time. Four
criteria have been used by organizations to ensure that selection meets the three ‘R’s’ (right
candidate, right job and right time):
 Cost per Hire (CPH)
 Time to Hire (TTH)
 Quality of Hire
 Selection Programme Audit
Evaluation of Selection Process (Contd…)

1. Cost per Hire (CPH):

• Selection process costs organization dearly. Cost incurred for hiring purpose includes, among other things,
the following:
 Payments made to placement consultants
 Expenses incurred on conduct of tests and interviews
 Cost of any on-campus/institution drives
 Cost of joining bonus and relocation allowances
 Cost of overtime or temporary staff retained during the period when jobs remain vacant
 Any other incidental costs availed by the selection team, weekend/overtime lunch/dinner, transport claims
and the like
 To these may be added cost incurred on recruitment
• Now, CPH is obtained by dividing the total cost y the number of hires. Organizations closely watch the CPH
to monitor the effectiveness of hiring function. Efforts are always made to keep CPH within acceptable
limits.
• CPH varies from organization to organization, deciding factors being skill levels of hires, demand and supply
of such skills, number of hires, sourcing strategy, and compensation levels. Change of sourcing strategy and
withdrawing joining bonus are common strategies used by organizations to keep CPH within desired norms.
Evaluation of Selection Process (Contd…)

2. Time to Hire (TTH):

• Time to Hire (TTH) is yet another metric used to assess the effectiveness of employee selection.
TTH refers to the lapsed time between notification of vacant position and the new hire joins the
organization. Most companies have a definite TTH target anywhere between 45-90 days. Exact
number of days depends on the level of position to be filled up.
3. Quality of Hire:
• Hiring is said to be qualitative when the three ‘R’s’ (right candidate, right job and right time) are
fulfilled. Hiring process is lengthy, testing, and time-consuming. But no effort should be spared
and no compromise should be made in hiring the best talent possible.
Evaluation of Selection Process (Contd…)

4. Selection Programme Audit:

• Audit must be conducted by people who work independent of the HR department.
 I. Analysis of the programme
 1. Is the selection programme consistent with the HRM theory and practice?
 2. Have well-defined selection policies and procedures been developed?
 3. Are the employment policies consistent with the public policy?
 4. Do the wage levels, fringe benefits, and level of employee satisfaction within the
organization have a beneficial effect upon the ability to attract and retain good employees ?
 II. How adequately is the programme and its procedures communicated to all those involved in
and affected by it?
 III. How well is the programme implemented?
 1. Have those, entrusted with carrying out the employment programme, been adequately
trained?
 2. Does the performance of the programme match the stated goals?
 3. Are policy and procedure manuals developed and utilized?
Evaluation of Selection Process (Contd…)

 IV. Feedback
 1. What image has been created in the minds of university and institute placement officers,
and public and private employment agencies by the approach adopted by the company in
conducting its hiring programme?
 2. Have recently hired employees and rejected applicants been surveyed to gauge the type of
treatment they have received in the selection process?
 3. How many persons have rejected the company as a poor place to work because of low
wages, a poor reputation and so on?
Evaluation of Selection Process (Contd…)

 V. Analysis of results
 1. How well do those hired perform on the job?
 2. What percentage of those who apply are hired?
 3. Of those hired, what percentage are discharged during the probationary period? What
percentage resigned because the job and employee conditions were misrepresented to them?
 4. What portion of employee turnover can be attributed to faculty selection?
 5. What contribution does each of the selection tools (i.e. tests, interviews, medical
examinations, etc.) make to the programme?
 How well do the predictions from each of the selection tools correlate with job success? Have
these selection devices been properly validated?