Subject : Human Resource Management

Course code: 22MBADSE203

Semester - I
 MODULE - 2

Recruitment and
Selection
 Contents

• Module 2 – Recruitment and Selection

• Recruitment - meaning and process, Purpose of Recruitment, Types of Recruitment -

Internal - Job posting, Virtual Job Fairs, Executive Search Firms, Calculating
Recruitment Yield/Turnover Rate/Retention rate. Recruitment advertising. Aligning
recruitment with job requirements. Factors affecting Recruitment, Hire using Social
media and Digital Platforms.

• Selection- meaning, selection procedure, Types of tests used in Selection*,

Consequences of selection decisions, Interview and Types of interviews.
 Course Objective

Identify the different steps involved in the process of

recruitment and selection of employees.
 Relevant Information
LinkedIn Learning –
1. Recruiting Foundations (Beginner)
https://www.linkedin.com/learning/recruiting-foundations-recruiting-for-e
xternal-recruiters/benefits-of-being-an-external-recruiter?autoplay=true&
u=92695330

2. Story- Telling for recruiting (Optional)

https://www.linkedin.com/learning/hr-guidelines-everyone-should-know-
2022/get-ready-to-transform-your-organization?autoplay=true&u=926953
30

3. Hire with Social Media and Digital Platforms

https
://www.linkedin.com/learning/hire-better-hire-faster-with-social-media-an
d-digital-platforms/how-to-hire-better-and-faster-in-today-s-market?autop
 Relevant Information
• Case Study 1 - Crowd Sourcing at Google, Page 178, HRM By
Gary Dessler- 15th Ed.
https
://ibfbzu.edu.pk/wp-content/uploads/2020/08/Human-Resource
-Management-by-Gary-Dessler-15th-ed.pdf

• Case Study 2: Cutting Recruitment Costs, Page 178, HRM By

Gary Dessler- 15th Ed.
• Case study 3 : https
://www.academia.edu/4872249/A_Case_Study_on_Manpow
er_Planning_and_Productivity

• Movie Analysis: Up In the Air

https://
youtu.be/KUd3gw
af0KQ
Interview Questions
• What is a Strategic recruitment?
• List top 10 staffing companies you know in India.
 Recap- Manpower Planning
• Suppose you are managing a sales force of 30 people. You need to sell
banking products, and you want to determine how many area
managers you need for this. You have been asked to increase the
headcount. Which of the following come under the process of
manpower planning?
– Analysing the existing resources
– Conducting job analysis
– Hiring candidates
– Liaising with other departments
 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 (Gary Dessler 2015 Fig 5.1)
 Introduction Case - Four Seasons

Four Seasons builds its strategy around offering superior customer service, and that requires highly motivated and
high-morale employees. How can Four Seasons use its recruitment practices to encourage such motivation and
morale? One way Four Seasons does this is by filling hotel positions around the world with internal transfers. In
one recent year, for instance, about 280 employees relocated from hotels in one country to another within the
Four Seasons chain. Employees love it. It gives them a chance for adventure and to see the world, while building a
career with a great hotel chain. And it’s great for Four Seasons too, because the resulting high morale and
motivation supports Four Seasons’ strategic goal of superior customer service. In other words, Four Seasons uses
recruitment practices that produce the excellent service the chain needs to achieve its strategic goals.

• Can you think of any other benefits Four Seasons may derive from its policy of transferring employees among
its hotels? What are they?

Source:HRM by Gary Dessler 2015 Page no - 129

 MEANING OF RECRUITMENT
“… process of searching for prospective employees and stimulating them to apply for
jobs in the organizations” (Edwin B. Flippo, 1984)

Þ getting right kind of people for vacancies

Þ finding and/or attracting applicants for the employer’s open position getting right
kind of people for vacancies (Dessler & Varkkey, 2016)

A bad hire can cost up to 30% of the employee’s potential first-year earnings.
– U.S. Department of Labor
 HIRING PROCESS

New hires

Offers made
Candidates
interviewed
Candidate interviewed

Leads generated

https://harver.com/blog/recruitment-plan/
 RECRUITMENT PROCESS

Success of a recruitment process can be judged based on,

• Number of successful placements
• Number of hirings
• Number of offers made
• Number of applicants
• Cost involved
• Time taken for filing up the position
 Recruiting Yield Pyramid

 Recruiting yield pyramid

– The historical arithmetic relationships between recruitment leads and
invitees, invitees and interviews, interviews and offers made, and
offers made and offers accepted (Gary Dessler 2015)
 Calculating Yield Ratio
• Yield Ratios: Yield ratios are metrics used in recruiting
which measure what percentage of applicants moves from
one stage to another in the hiring process.
• They are used to measure the success of various recruiting
methods and strategies.
• For example, if 50 applicants apply for a position and 10
are phone screened, find the yield ratio
• Yield Ratio= [(Number of applicants that move to the next
stage)/ (No. of applicants in the previous stage)] *100
• Yield Ratio= [(10/50)] * 100 = 20%
 Internal Search
Advantages:
– good employee relation
– Boost morale of employees
– Encourage competent and ambitious individuals
– info. on individual's performance is available
– Minimal cost of recruitment
– Time saved
– Return on investment increases

Disadvantages:
– Miss out talent available in market
– Talent pool may stagnate
– No flow of new ideas and opinion from outside
 Finding Internal Candidates
• Job postings via portals, circulars and notice boards
– Publicizing an open job to employees (often by literally posting it on bulletin
boards) and listing its attributes.
• Rehiring former employees - HRIS
– Advantages:
• They are known quantities.
• They know the firm and its culture.
– Disadvantages:
• They may have less-than positive attitudes.
• Rehiring may sent the wrong message to current employees about how to get ahead.
 Finding Internal Candidates (cont’d)
• Succession planning - HRIS
– The process of ensuring a suitable supply of
successors for current and future senior or key
jobs.
• Succession planning steps:
– Identifying and analyzing key jobs.
– Creating and assessing candidates.
– Selecting those who will fill the key positions.
 Outside Sources of Candidates
• Advertising
– The Media: selection of the best medium depends on the positions for
which the firm is recruiting.
• Newspapers (local and specific labor markets)
• Trade and professional journals
• Internet job sites
• Marketing programs
• Constructing an effective ad
– Wording related to job interest factors should evoke the applicant’s
attention, interest, desire, and action (AIDA) and create a positive
impression of the firm.
 Outside Sources of Candidates
• Executive recruiters (headhunters)
– Special employment agencies retained by employers to seek out top-
management talent for their clients.
• Contingent-based recruiters collect a fee for their services when a successful
hire is completed.
• Retained executive searchers are paid regardless of the outcome of the
recruitment process.
– Internet technology and specialization trends are changing how
candidates are attracted and how searches are conducted.
https://www.sumhr.com/blog/top-14-executive-search-firms-in-india
 Outside Sources of Candidates

• College recruiting
– On-site visits
• Invitation letters
• Assigned hosts
• Information package
• Planned interviews
• Timely employment offer
• Follow-up
– Internships
 Outside Sources of Candidates
• Employee referrals
– Applicants who are referred to the organization by current
employees
• Referring employees become stakeholders.
• Referral is a cost-effective recruitment program.
• Referral can speed up diversifying the workforce
• Walk-ins
– Direct applicants who seek employment with or without
encouragement from other sources.
– Courteous treatment of any applicant is a good business practice.
 Outside Sources of Candidates
• Recruiting via the Internet
– More firms and applicants are utilizing the Internet in the job search
process.
• Advantages of Internet recruiting
– 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
 Selected Recruitment Web Sites

Source: HR Magazine, November 2003.

 Virtual Job Fairs

• A job fair, also referred commonly as a job expo or career fair or career
expo
• Is an event in which employers, recruiters, and schools give information to
potential employees.
• Job seekers attend these while trying to make a good impression to
potential coworkers by
– speaking face-to-face with one another
– filling out résumés
– asking questions in attempt to get a good feel on the work needed

https://en.wikipedia.org/wiki/Job_fair
• Suppose you are a general manager of a private bank. You
want to recruit a new operations manager who will oversee
all banking transactions done by customers every day and
ensure that all the processes are being executed properly by
the service officers.
• Choose the competency which is most relevant for the branch
operations manager role based on the above information.
– Ability to listen to banking customers
– Ability to quickly understand where the delay or problem is arising in the
entire operational process
– Ability to individually execute multiple tasks and issues
– Ability to develop cordial relationships with the community and other
businesses
 Exercise
• A Customer service director wants to expand
the call center operations. He wants to add
100 more call center executives within a
period of next six months. As a HR manager he
has asked you make a proposal of the
recruitment plan for recruiting these 100 call
center executives for the next six months.
Design a recruitment plan for the executives.
 Post -Class Activity – Recruitment advertisement
• Summary Experience: 6 - 8 Years Location: Delhi
• Compensation: Rupees 10,00,000 - 14,00,000 Education: UG / PG - MBA/PGDM
• Industry Type: NGO/Social Services Role: Mktg Mgr
• Functional Area: Marketing, Advertising, MR, PR Posted Date: 22 Oct
• Desired Candidate Profile : Candidate should have following attributes
1. Post Graduation in Marketing/PR from a recognised institute
2. 7 years of relevant experience in a competitive market environment
• Job Description : Candidate will be responsible for following.

Analyse, formulate and articulate a communication strategy in line with the vision, mission and strategy of the organization.

To develop creative approaches based on the positioning and ensure standardization of designs, formats, audiovisuals, templates
themes communication and publicity material etc

Identify and retain external agencies to manage PR, Advertising and website activities - ensure that these agencies adhere to
service level agreements

Supervise the process of media buying and ensure that content is of a high quality.

Manage the communications budget and ensure that controls are in place to monitor and report on expenditure on returns on
investments.
 FACTORS AFFECTING RECRUITMENT

• Organizational / internal factors

• Reputation of the org.= size, profitability, management

• Organizational culture & the attitude of the management

towards employees= employee friendly/ orthodox

• Geographical location of the vacant position https://core.ac.uk/dow

nload/pdf/234625193.
pdf
• Amount of resources allocated towards recruitment drive

• Channels & methods used to advertise the vacancy

• Emoluments the company offers

 FACTORS AFFECTING RECRUITMENT

• Environmental / external
factors
• Situation in the labour market

• Stage of development of the industry

• Culture, social attitudes and beliefs

• Law of the land

 Hire using Social media and Digital
Platforms
• Over 84% of organizations used social media to hire during
the Great Reshuffle- SHRM.org
• 79% of job seekers use social media when conducting their
search- Glassdoor.com
• 65% of people are open to hearing about a new job from their
social network- Monster.com
• People announce a layoff on social media to help rally support
for their next role.
 Deciding which Digital Platform to chose?
• LinkedIn
– Work focused platform
– Over 800 million members
– Create a resume like profile
– Get recommendations
– Develop a robust network of connections/ join groups
• Meta
– WhatsApp
• Messaging platform to reach people
• Great broadcast tool
• Connect and share news, information
– Facebook
• Social networking site
• Companies run ads and sell things
 – Instagram
• Post pictures and videos
• Features a marketplace
– TikTok/ YouTube/ Snapchat/Pinterest
• Hiring managers and HR teams run ads on Facebook and Instagram to
encourage people to apply which acts as a push strategy but may not
really attract the right people.
• It’s important to stick where your audience is.
• Ask the following question regarding where to invest the time?
– How did I get my job?
– Do I know anyone who has been hired on these platforms?
– Was there a strategy behind this?
• Devise your own strategy based on the recruitment needs.
• Its important to create the company’s social media branding
 Post Class Activity
• You own a small chemical engineering
company and want to hire a new president.
Based on what you read in this chapter, how
would you go about doing so, and why?
 Case Study: Cutting Recruitment Costs
• GE Medical hires about 500 technical workers a year to design sophisticated medical devices
such as CT scanners. It has cut its hiring costs by 17%, reduced time to fill the positions by
20% to 30%, and cut in half the percentage of new hires who don’t work out. GE Medical’s HR
team accomplished this in part by applying its purchasing techniques to its dealings with
recruiters. For example, it called a meeting and told 20 recruiters that it would work with only
the 10 best. To measure “best,” the company created measures inspired by manufacturing
techniques, such as “percentage of résumés that result in interviews” and “percentage of
interviews that lead to offers.”
• Similarly, GE Medical discovered that current employees are very effective as references. For
instance, GE Medical interviews just 1% of applicants whose résumés it receives, while 10%
of employee referrals result in actual hires. So GE Medical took steps to double the number
of employee referrals. It simplified the referral forms, eliminated bureaucratic submission
procedures, and added a small reward like a gift certificate for referring a qualified candidate.
GE also upped the incentive—$2,000 if someone referred is hired, and $3,000 if he or she is
a software engineer. (In 2018, GE spun off ownership of its Medical/Healthcare unit to GE
shareholders.)
• What other tools described in this chapter could GE Medical use to improve recruiting efficiency?
 Recruitment Metrics
• Attrition Rate= (Separations during the year)/
(Average number of employees at the
beginning and end of the year) * 100
• Cost Per Hire= (Internal Recruiting Costs +
External Recruiting Costs)/ Total number of
Hires
• Find your Cost per Hire based on the following information:

Number of Hires: 5
Cost Per Hire= (Total Internal Cost)+ (Total External Cost)/
Number of Hires
= (7,000)+(16,500)/ 5= 4,700USD
• Calculate the attrition rate for a telecommunications
company that had 150 employees in the beginning of
the year. During that year, 20 employees voluntarily
left the company. Also, the company hired 25 new
employees.
• Attrition Rate= (Separations during the year)/
(Average number of employees at the beginning and
end of the year) * 100
• First, lets calculate the Avg. no. of employees= (no. of
employees in the beginning and end of the year)/2=
[150 + (150- 20+ 25)]/2= 150+155/2= 152.5
• Thus, Attrition rate= (20/152.5)* 100= 13.11%
 SELECTION: MEANING & CONCEPT

• Why is it important to test and select employees?

• “…process of choosing the most suitable candidate for a job

from among the available applicants”.

– Based on a pre-defined set of qualification, experience

– The aim of employee selection is to achieve person-job
fit
– While person-job fit is usually the main consideration,
person-organization fit is important too
https://www.youtube.com/watch?v=RZHJr-Tm14A
 Selection Process
Note: an applicant may be Hiring decision
rejected after any step in
the process Medical examination
By Gary Dessler 2015 Supervisory interview
Preliminary selection in HR Dep.
Background investigation
Employment tests
Initial interview in HR Dep.
Application Review
 Interviewing skills
• Establishing rapport (good
relationship)
• Listening
• Maintaining continuity
• Keeping control (politely)
• Note taking
 STANDARDS IN SELECTION PROCEDURE

• Reliability
– A selection method is considered reliable,
if it produces consistent results across
different situations and times.

– Reliability can be measured by using:

– The repeat or test-retest approach
– The alternate-form or parallel-form method
– The split-halves procedure
Validity
– It is the degree to which the test reflects success in the job.

– Three general methods are used to test validity:

• Criterion validity= good correlation bet. selection method scores
and job performance scores (those who do well in the test would
also do so on the job)

• Content validity= extent of representative-ness of content of

selection procedure with imp. aspects of job performance

• Construct validity= extent the selection method can identify the

characteristics of candidate for good performance

Generalizability

– ..defined as the degree to which its validity, established in one

context, can be extended to other “primary contexts” such as
diff. jobs, people, time, org. etc.
– That means the degree of replicability.
Utility
– … degree to which the value provided by the selection method
enhances the effectiveness of an organization.
– More the reliability, validity and generalizability more the
utility
– However, some ext. factors like job market, env. etc. may also
affect the effectiveness other than 3 RVG factors

Legality
– …the basic standard that any selection method should satisfy.
– Must comply with existing law of land
– more imp. For MNCS
 How Are Tests used at work?
• Many firms such as FedEx Kinko’s have applicants
take online/offline computerized tests to quickly
prescreen candidates prior to more in-depth
interviews and background checks. They also use
Caliper Personality test and Hogen Tests.
• Barclays Capital gives graduate and undergraduate
job candidates aptitude tests instead of first- round
interviews.
 SELECTION TESTS
• Intelligence tests
– It measures several factors of intelligence such as logical reasoning, analytical
skills and general knowledge.
– Intelligence is often measured with individually administered tests like the
Stanford-Binet Test or the Wechsler Test. Employers can administer other IQ
tests such as the Wonderlic individually or to groups of people.
• Aptitude tests
– These tests measure an individual's ability to learn a given job, when given
adequate training.
• Achievement tests
– Also termed as proficiency or knowledge tests.
– These tests measure the job-related proficiency and knowledge of the
applicants.
– For example, the Purdue Test for Machinists and Machine Operators tests the
job knowledge of experienced machinists with questions like “What is meant
by ‘tolerance’”? Some achievement tests measure the applicant’s abilities; a
swimming test is one example.
• Situational tests
– Used in middle and senior level management selection.
– Candidates are exposed to simulated business situations, their responses
are recorded and evaluated.
– It also includes group discussions, in basket exercises and simulated
business games.
• Interest tests
– These tests help the companies identify and understand the degree of
interest a candidate has in a job. Interest inventories compare one’s
interests with those of people in various occupations.
– The Strong-Campbell Interest Inventory provides a report comparing one’s
interests to those of people already in occupations like accounting or
engineering. Someone taking the Self-Directed Search (SDS) (
www.selfdirected-search.com ) uses it to identify likely high-fit
occupations.
 Example
You’ve been assigned a project to work on alongside a team member that is
younger than you. They are in charge of conducting the research, while you are in
charge of compiling all of the facts to offer to a customer. The presentation is
incorrect since the team’s junior member appears to have made several research
errors. You have a customer presentation this afternoon, and you also have other
tasks that require your attention today. What are you going to do about it? Please
choose the option that you are most likely to do and the option that you are least
likely to do:

1.Inform the junior member of staff that they have made a mistake and must
correct it immediately.
2.Inform your management that the younger member of staff is incompetent.
3.Present the erroneous information regardless in the hopes that the consumer
would not notice.
4.Postpone your other commitments and make the necessary adjustments
yourself.
5.Collaborate with the younger member of staff to iron out the errors.
• Personality tests
– These tests help in assessing an individual's value system,
emotions, maturity and other personal characteristics like self-
confidence, tact, optimism, judgment and dominance or
submission. Eg. Big Five Personality Tests, MBTI
https://openpsychometrics.org/tests/16PF.php ; Hexaco.org
• Polygraph tests
– Polygraph tests are conducted to test the validity and
truthfulness of an applicant's answers, by monitoring the
physical changes in his body while answering.

• Graphology
– It involves examining an individual's handwriting to assess his
personality, emotional characteristics and honesty.

Ref.:
https://www.businessmanagementideas.com/human-resource-ma
nagement-2/selection-tests/types-of-selection-tests/20658
• Computerized and online Testing

• https://
www.youtube.com/watch?v=VsxTlVQjE5s
 Testing for Assignments Abroad
Living and working abroad require some special talents. Not everyone can easily adapt to having
one’s family far away, and to dealing with colleagues with different cultural values. Doing so
requires high levels
of adaptability and interpersonal skills.
Employers often use special inventories such as the Global Competencies Inventory (GCI). It
focuses on three aspects of adaptability.

✓✓ The Perception Management Factor assesses people’s tendency to be rigid in their view
of cultural
differences, to be judgmental about those differences, and to deal with complexity and
uncertainty.

✓✓ The Relationship Management Factor assesses a person’s awareness of the impact he or

she is having on others.

✓✓ The Self-Management Factor assesses one’s mental and emotional health.

• https://
www.youtube.com/watch?v=HXFWNA3zMU8
 CONSEQUENCES OF SELECTION DECISIONS

– The selection process can have four

consequences: Successful
Accept
Correct
Reject
Reject
decision error
unsuccessful Accept Correct
error decision

• Selecting the right candidate Positive consequences

• Rejecting the wrong candidate

• Selecting the wrong candidate Negative consequences

• Rejecting the correct candidate

THE INTERVIEW PROCESS

Preparation

Setting

https://www.linkedin.com/l
Conduct of Interview earning/remote-interviewin
g-techniques-for-creative-jo
bs/nailing-your-online-job-in
Closing an Interview terview?autoAdvance=true
&autoSkip=false&autoplay=t
rue&resume=true&u=92695
Evaluation 330

Reference
Checks

Medical Examination
 TYPES OF INTERVIEWS
Interviews https://www.lebow.drexel.edu/academi
cs/undergraduate/current-students/care
er-services/interviewing/interview-types

Preliminary Selection Decision-making

Interview Interview Interview

Formal & Group In-depth

Unstructured Stress Panel
Structured Interview Interview
Interview Interview Interview
Interview Method
Case Study
 Activity
• Describe what kind of Selection
tests/interview will be most suitable for the
following HR Director job at McDonald’s
https://www.indeed.com/jobs?q=HR%20director&from=careeradvice-US&vjk=879880aa7076cb6a

• Or for a sales consultant

https://www.indeed.com/jobs?q=sales%20associate&l&vjk=ce26cd3ddf220e2f

workforce (or employment or
personnel) planning
trend analysis
ratio analysis
scatter plot
personnel replacement
charts
position replacement
card
succession planning
employee recruiting
Management Assessment Center
Situational Test
Expectancy Chart
Interest Inventory
Work Samples
Glossary
recruiting yield pyramid
job posting
applicant tracking systems
(ATS)
alternative staffing
on-demand recruiting services
(ODRS)
college recruiting
application form
Negligent Hiring
Reliability
Test Validity
Criterion Validity
Content Validity
Construct Validity