Notes of HRM Unit No. 03 (Recruitment and Selection)

 Notes of Human Resource Management

UNIT NO. 03

Recruitment and Selection

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Meaning of Recruitment

One of the foremost steps of the operations functions of the Hrm is recruitment.

Recruitment means searching for prospective (eligible/Interested) candidates and inspiring them to apply for the post.

The recruitment process ends on the last day of receiving applications.

Advertisement---------- Submitted Application.

Recruitment means announcing job opportunities to the public and stimulating them in such a way that a good number of suitable people will apply for them.

Definition of Recruitment

According to Edwin B. Flippo

Recruitment is the process of searching the candidates for employment and stimulating them to apply for jobs in the organization.

Parties in Recruitment

Two parties involved in the recruitment

Recruiter

A recruiter is the owner of the organization who needs to recruit someone.

Recruitee

The recruitee is the candidate who applies for the vacancy.

Example: Mr. Wajad is working in AB Enterprises. Currently, the company is recruiting for the post of HR executive. He is encouraging his friend to apply.

Recruitment helps the selection process.

When you look at the growth of any company, then most of us look at the numbers that the company produces, but we forget the most important factor behind those numbers and that is the company’s staff. The employees work hard in order to achieve those numbers and how successful your company is will depend on how you look at recruitment.

Features of Recruitment

The major Characteristics of Recruitment are:

Process

Recruitment is a process of a series of activities like recruitment policy, sources of recruitment, the technique of tapping those sources, and evaluation of those sources, etc.

Positive function

It is a positive function because, in this process, the organization stimulates as many candidates to apply for the post.

Continuous process

This is a continuous process because there is a requirement for people to achievement of the goals of the organization.

Linking Activities

It brings together candidates and employers. It acts as a link between the job provider and the job seeker.

Pervasive function

It is a pervasive function because it takes place in every organization. Every organization that needs human resources must perform such a function. However, its volume and nature differ according to the type and size of the organization

Two-way process

The company creates a recruitment process and candidates apply for the job that is why it is a two-way process.

Complex Job

It is a complicated process as many factors may restrict the freedom of management during the recruitment process.

Importance of Recruitment

The importance of Recruitment can be judged through the following points:

To attract and encourage candidates

The recruitment process is important to encourage, attract candidates, and get an ample amount of applications for job vacancies.

To create an information pool

It is an effective way to create an information pool about the prospective candidates who are suitable for the talent needs of the organization.

An important step in planning and analysis

It is a very important step in planning and analysis about the present and future manpower requirements of the organization.

To help the organization

It also helps the organization meet the social and legal obligation of maintaining the manpower composition.

To determine the appropriate candidate

It determines the appropriate candidates through the different channels of recruitment.

To increase applicants at a minimal cost

It is a less expensive way of gathering information about the talented manpower in the industry.

To help the selection process

It helps to improve the selection process by properly sorting suitable candidates for the job.

To bridge the gap between job seekers and job providers

It bridges the gap between job seekers and job providers for the future needs of the organization.

It reduces the turnover of employee

It reduces the turnover of employees due to the correct matching of candidate expectations and the rewards offered by the organization.

Helps the organization to create different sources of attracting the right candidate

It helps the organization to create different sources of attracting the right candidate for the job profile.

Objectives of Recruitment

Some of the objectives of recruitment are as follows:

Encourage and empower a growing number of applicants to apply for positions in the organization.

Develop a talent pool of candidates to allow the selection of the best candidates for the organization.

The organization needs to achieve its overall organizational objectives in order to attract and engage people.

Recruit the right people for your organization who will fit in with its culture and contribute to its goals.

Provide as many job candidates as possible at the lowest cost.

It helps to increase the achievement rate of the selection process by diminishing the number of unmistakably underqualified or overqualified candidates.

Meet the organization’s legal and social responsibilities concerning the composition of its workforce.

This helps to reduce the chance that activity candidates once enrolled and selected will leave the organization after a few months.

Gain a competitive advantage over others by recruiting and keeping the best candidates, as they will have a group of loyal customers following them.

Assist in organization growth as new hires can bring in skills and experience that an organization is lacking which allows expansion opportunities.

 

 

Process of Recruitment

Recruitment in the organization can be viewed as a systematic process. It has a number of stages, each of which needs to be completed for the process to be a success. This process is described as:

Recruitment Planning

Recruitment planning is the first step involved in the recruitment process.

In planning at first, the vacant post is determined, then the required job specification, nature of the job, the experience of the job, qualification, grade, level of pay, and skill required for the job are determined.

Identification of Requirement

Different departments in the organization have their own requirement regarding employees for different requirements that are identified and analyzed.

Development of Strategy

The development of a recruitment strategy is a long process.

Once it is known how many with what qualifications of candidates are required, the next step involved in this regard is to devise a suitable strategy for recruiting the candidates in the organization.

The strategy will be developed regarding the source of recruiting employees, the method of recruitment, the performance of the activities, the purpose of recruitment, etc.

Selecting Right Candidate

An effort is made to attract candidates for the post. Now the candidates can be sourced either from inside the organization or from outside the organization.

Screening

After sourcing the candidates, screening is performed. Screening is the process of filtering the applications of the candidates for the further selection process. Screening is an integral part of the recruitment process that helps in removing unqualified or irrelevant candidates, which were received through sourcing. The shortlisted candidates are then invited for further proceedings.

Evaluation

In this last step of recruitment, process evaluation is made on whether the process was effective or not. Evaluation and control are necessary as considerable costs are incurred in the recruitment process. Statistical information on the cost of advertisements, time taken for the process, and the suitability of the candidates for consideration in the selection process should be gathered and evaluated.

Sources of Recruitment

There are two main sources of recruitment

Internal Sources

External Source

Internal Sources

Internal means “within the organization”. Internal sources of recruitment refer to seeking employees from within the organization to fill up the vacant position.

Many organizations consider internal recruitment as a great option since it is cost-effective, and they tend to hire employees who have better knowledge how the organization and its policies.

Transfer

It involves shifting from one department or from one business unit or from one job to another one. The employees of the organization are transferred to similar jobs in other departments. It may not involve a change in salary, responsibility, and position the job. Transfers help in reducing the boredom and monotony of the employees or they may be used to fill the vacancies with suitable internal candidates

Internal Advertisement

Internal advertisement is a process of posting/advertising jobs within the organization. This job posting is an open invitation to all the employees inside the organization, where they can apply for the vacant positions.  It provides equal opportunities to all the employees working in the organization. Hence, the recruitment will be done from within the organization and it saves a lot of costs.

Previous Applicants

Here, the hiring team checks the profiles of previous applicants from the organizational recruitment database. These applicants are those who have applied for jobs in the past. These resources can be easily approached and the response will be positive in most cases. It is also an inexpensive way of filling up vacant positions.

External Sources

External sources of recruitment involve motivating skilled and more efficient candidates outsides the organization to apply for the vacant positions in the organization. When suitable candidates are not available from internal sources then the company looks out for personnel externally to meet the demands. Job openings are informed to the external environment by using various methods that are:

Advertisement

Advertisement is the commonly used source of external recruitment.

The advertisement may be through newspapers (most common), and technical publications. Details of positions and their requirements along with how to apply are mentioned in the advertisement. Sometimes, organizations advertise positions to be filled through walk-in interviews (along with C/Vs)

Employment Exchanges

The government has established employment exchanges in most of the cities.  These exchanges register job seekers. Whenever an organization sends its requirement for employees, these exchanges inform the job seekers concerned and provide their list to the organization. The rest of the process is conducted by the organization. This is suitable for filling positions at lower levels.

Campus Recruitment

This is an easy and economical method that helps in finding eligible candidates, through this method organizations can find energetic and more competitive candidates for suitable vacancies, and this method is beneficial for both the candidates and companies.

Job Fairs

In one way, a job fair is a kind of variant of campus recruitment. In a job fair, various academic institutions located in a large city jointly organize recruitment programs. In this program, candidates from different institutes, even from non-organizing institutes, come by paying the prescribed fee. Organizations visit the fair by invitation. The selection process takes place like campus recruitment.

Labour Contractors

Labor contractors maintain close contracts with laborers and other unskilled workers. Organizations may use the services of these labor contractors to fill suitable vacancies mostly for specific periods. Construction companies use this source. Similarly, organizations requiring watchmen, etc. use this method.

Placement Agencies

Approaching placement agencies reduces the time and effort to find the right candidates from the pool of skilled candidates. They use various tools and techniques to filter the resumes and they send them to the organizations for further processing. These charge commissions for hiring candidates.

Casual Callers

Casual callers are those applicants who offer themselves for employment in the organization to fill vacancies, which will arise in the future. They are also known as unsolicited candidates. The applications may be submitted either in hard copy or in soft copy through the internet. The organization maintains a database of such applicants. Whenever vacancies arise, these applicants may be considered for employment. This is the readily available source of external recruitment with insignificant cost.

Job Portals

With the growing technology and internet usage, job portals are playing a major role in finding the right candidates for the right jobs. Job portals can inform up-to-date job alerts to the candidates. The tools and techniques used by the job portals highly reduce the efforts in finding skilled candidates.

Company Websites

With the increase in business operations and globalization, the need for human resources is also increasing day by day. To face severe competition and to reduce the cost in the long run, many companies are setting up their own websites for finding and attracting candidates with competitive skills.

Social Networking Sites

Communicating about vacant positions in the organization through social networking sites helps in motivating and attracting highly skilled and more efficient candidates to apply for the jobs.

Examples are Facebook, Tweeters, Instagram, etc.

Deputation

This method is also quite common. The employees of one organization are selected or taken on deputation from another organization for filling the vacancies.

Factors Affecting the Recruitment Process

There are two types of factors that influence recruitment are:

Internal Factors

External Factors

Internal Factors

The internal factors also called endogenous factors are the factors within the organization that affect the recruiting process in the organization.  The internal forces that are factors, which can be controlled by the organization, are:

 

Size of Organization

The size of the organization is one of the most important factors affecting the recruitment process. To expand the business, recruitment planning is mandatory for hiring more resources, which will be handling future operations.

Recruiting Policy

The recruitment policy of an organization specifies the objectives of recruitment and provides a framework for the implementation of the recruitment program. It may involve an organizational system to be developed for implementing recruitment programs and procedures by filling up vacancies with the best-qualified people. The recruitment policy gives an outline for the execution of the recruitment program.

Human Resource Planning

How many employees are to be recruited and what qualifications they should have is decided with the help of effective human resource planning.

Recruitment Cost

Recruitment process expenses are borne by the employer; therefore, organizations try to make use of that source of recruitment, which gives more output at less cost.

Working Environment

A good working environment such as sufficient lighting and ventilation, safety requirements, and welfare measures, such as bonuses, quarters, subsidized food, and medical facilities, all have a good impact on the organization’s recruitment process.

Image of Organization

Organizations having a good positive image in the market can easily attract competent and proficient resources. Maintaining good public relations, providing public services, and leading the goodwill of the organizations, definitely helps an organization in improving its reputation in the market, thereby drawing the best possible human resources.

 

Image of Job

The image of a job plays an important role in recruitment. Job having a positive image in terms of better remuneration, promotions, recognition, and a good work environment with career development opportunities are considered to be the characteristics to attract qualified candidates.

External Factors

External factors are those factors that are outside and cannot be controlled by an organization. The external factors that affect the recruitment process include:

Demographic Factors

Demographic factors such as gender, age, literacy, economic status, etc. have an influence on the recruitment process.

Supply and Demand

An important factor in the recruitment process is the manpower supply, both inside and outside the organization. If the demand for professionals in the company is more and the supply of professionals in the market is low, then the company will have to rely on internal sources for training and developing employees.

Unemployment Rate

If the unemployment rate is high in an exact area, hiring people will be simpler and easier, as the number of candidates is very high. In contrast, if the unemployment rate is low, then recruiting tends to be very difficult due to fewer resources.

Government Rules and Regulations

Government restrictions such as Minority quotas, Women quotas, disabled person quotas, child labor, etc. have a direct effect on recruiting processes, and organizations must follow these regulations when hiring staff.

Labour Market

Labor market circumstances are continually shifting and dynamic. There may be a surplus or lack of well-qualified candidates in a certain type of post for which a vacancy is to be filled at any given time. When there is a scarcity of well-qualified applicants, recruiting becomes tough, and when there are too many people with acceptable qualifications, recruiting becomes challenging.

Economic Factors

Economic conditions such as the cost of recruitment, the ability to hire qualified people, working conditions in other similar businesses, and so on all have an impact on the organization’s recruitment process.

Competitors

The recruitment policies and procedures of the competitors also affect the recruitment function of the organization.

From time to time organizations have to change their recruitment policies and manuals according to the policies being followed by the competitors.

Meaning of Selection

Selection is the process in which candidates for employment are divided into two classes, those who are to be offered employment and those who are not.

Selection is the process of choosing the right candidate from a pool of applicants.

This process is established to achieve a good match between the job requirements and the candidates’ skills and motives.

A good match results in increased productivity and quality performance. A bad match is extremely costly to the company due to the cost of training the candidate, the cost of mistakes made by the candidate, and the cost of replacement.

It is a process of choosing the most suitable candidates.

Every organization designs its selection process.

It depends upon:

The urgency of hiring people.

The requirements for the vacant job.

Selection is the process of putting the right men on the right job.

It is the procedure of matching organizational requirements with the skills and qualifications of people.

Effective selection can be done only when there is effective matching.

Definition of Selection

According to Dale Yoder selection may be defined as:

Selection is the process by which candidates for employment are divided into classes those who will be offered employment and those who will not.

Importance of Selection

The importance of the selection process can be judged through the following points:

Good Talent

A proper selection system enables the organization to appoint talented persons for various activities and thereby leading to improved productivity and profitability of the organization

Better efficiency

Selection of the right person for the right job is sure to produce a better quality of work and may facilitate faster achievement of objectives. This will help in greater measure to tone up the overall efficiency of the organization.

Reduced cost of Training and Development

Better selection of candidates definitely reduces the cost of training and development because qualified personnel has better-grasping power.

Reduced Turnover

Proper selection of candidates contributes to low labor turnover. This will intern help the organization to minimize recruitment.

Job Motivation

If the right person is selected for the right job, it tends to motivate the person to work more effectively and efficiently. They feel that their skills are properly used and they tend to contribute more attention to the job

Reduces Absenteeism

Proper selection of candidates reduces absenteeism in the organization. They would pay better attention to their jobs and take safety precautions on their own accord would minimize the occurrence of workplace accidents.

Asses Behavior

The selection gives managers an opportunity to ass’s potential employees’ character and personality.

Achievement of Goals

The hiring of talented and skilled employees results in the swift achievement of organizational goals.

Reduce Applicant Number

Candidates who have applied for a job during the recruitment stage are screened in the selection stage. Those who prove suitable for the job are selected, and unsuitable ones are rejected.

Steps in Selection Process

The selection process comes after HR planning and recruitment.

It consists of seven steps that are:

Preliminary Screening

It is the first step in selection. Initial screening is done in this step and all the incomplete applications or undesirable applicants are weeded (rejected) out. Lower-level executives generally conduct this process. It is a very important step as it shifts out all the unqualified, not desirable applicants and the HR manager can then concentrate on the other applicants without wasting time.

Screening of Application

After an initial screening applications are handed over to the screening committee. Screening committee for all applications one by one to verify candidate qualification, work experience, skills, gender, age, address, etc. Selected applicants are called for a selection test. The purpose of this screening is to shortlist suitable candidates to call them for the next round.

Selection Tests

Usually, a written test based on the job requirement is conducted to testify to the ability, knowledge, and skill of the candidate. These could be different types to test depending on the need of the job i.e. intelligence test, technical test, aptitude test psychometric test, etc. Merit is established based on the results of a written test. Candidates who pass the employment test are called for an interview.

Selection Interviews

Candidates proving themselves successful through tests are interviewed personally.

The interviewers may be individuals or a panel. It generally involves officers from the top management. Experts ask different questions related to the job nature, technical questions, situational questions, background, work experience, and why he wants to join the organization.  The panel judges the ability, skill & confidence of the candidate...

Checking Background and References

Generally, the company asks for at least two references from the candidate. A reference check is a type of crosscheck for the information provided by the candidate through their application form and during the interviews. Organizations try to contact these people to better understand the potential of the candidates and verify the information given to you in the interview and in your application.

Medical Test

This is an examination to determine an applicant’s physical fitness for essential job performance. Typically, a job offer is contingent on successfully passing the examination. Candidates are requested to submit their medical fitness report from an authorized doctor on the panel list of the organization.

For Example, firefighters must perform activities that require a certain physical condition, climbing a ladder, or carrying an injured victim; these individuals must demonstrate that they are fit for the job.

Job Offer

Individuals who perform successfully in the preceding steps are now considered eligible to receive the employment offer. Job offers include a joining date, salary package, few terms and conditions related to joining. Later on, an appointment letter is issued, which is more detailed and comprehensive. Moreover, it confirms you're joining as well.

Types of Selection Test

Types of selection are as:

Selection test

A selection test is a screening process that hiring managers use to judge whether an applicant is fit for a certain job. A selection test is a standardized test that the hiring manager gives to all applicants. Employment tests are devices that assess the match between applicants and job requirements.

Types of Selection tests

The type of selection test used can vary depending on what position is being filled and what hiring managers want to know about the applicants. There are different types of selection tests employers can use:

Personality Test

A personality test measures an applicant’s characteristics to determine what type of personality they have. This test includes questions about the applicant’s habits, preferences, interests, and working style. Hiring managers often use these tests to determine whether a candidate is a good match for the role and the company.

 

 

Aptitude Test

Aptitude tests measure the ability and skills of the testee. These tests measure whether an individual has the capacity or latent ability to learn a given job if given adequate training. Aptitudes can be divided into general and mental ability or intelligence and specific aptitude such as mechanical, clerical, musical, Management aptitude tests, etc.

Aptitude tests are used to predict the future ability/performance of a person.

Achievement Tests

Achievement tests measure a person’s potential in a given area/job. In other words, these tests measure what a person can do based on skill or knowledge already acquired by him/her. Achievement tests are usually used for admission to specific courses in academic institutions. Achievement tests are also known by their names, proficiency tests, performance, occupational or trade tests. It is used to test the performance of typists, data entry operators, etc.

Intelligence Test

This test measures the numerical skills and reasoning abilities of the candidates.

Such abilities become important in decision-making. The test consists of logical reasoning ability, data interpretation, comprehension skills, and basic language skills.

Interest Test

Interest tests recognize patterns of interest or areas in which the person shows concern, charm, and involvement. These tests suggest what types of jobs may be right for the employees like research, marketing or sales, etc.

Psychological tests

The psychological of the employee is determined. The employees who are psychologically strong and do not get nervous do well.

Physical Test

This test is conducted to examine whether the candidate is physically fit for the job.

 

Work Sample Test

Work sample tests measure the ability to do something rather than the ability to know something. These tests may measure motor skills or verbal skills. Motor skills include physically manipulating various job-related equipment and verbal skills include problem-solving and language skills.

Polygraph (lie detector) Test

The use of lie detectors for verifying information on the application form can only be used for specific jobs, such as police officers, finance managers, etc.

Differences between Recruitment and Selection

Meaning

Recruitment is the process of finding candidates for the vacant position and encouraging them to apply for it.

Selection means choosing the best candidate from the pool of applicants and offering them the job.

Function

Recruitment is a positive function aimed at attracting more and more job seekers to apply.

Selection is a negative function, rejecting unfit candidates from the list.

Time & Cost

Recruitment is less time-consuming and less economically demanding, as it only involves identifying the needs of the job and encouraging candidates to apply for them.

Selection involves a wide range of activities, which can be both time-consuming and expensive.

Objective

The objective of recruitment is to invite more candidates to apply for a vacant position.

The objective of selection is to choose the most suitable candidate and reject the rest.

Process

Recruitment is a simple process as there are not many steps or hurdles.

Selection is a complicated process as there are many steps or hurdles.

Sequence

It starts before the selection process.

It starts after the recruitment process.

Dependency

The success of recruitment is not dependent on the selection process.

The success of the selection process is dependent on the recruitment process.

Expert Help

Recruitment is a simple process because it does not require much help from experts.

Selection is a complex process. Therefore, it requires much help from experts in order to conduct tests, interviews, etc.

Contract

There will be no contract between employees and employers.

There is an employment contract between employees and employers.

Policy

The recruitment policy provides rules and restrictions for implementing the recruitment program.

The selection policy consists of a series of methods by which the evaluation of candidates is done.