SOURCES OF RECRUITMENT

                 SOURCES OF MANAGERIAL RECRUITMENT

INTERNAL SOURCES                                       EXTERNAL SOURCES

1) Promotion                                                           1) Campus recruitment

2) Transfers                                                             2) Press advertisement

3) Internal notification                                            3) Management consultancy service

   (Advertisement)                                                          & private employment exchanges

4) Retirement                                                          4) Deputation of personnel or transfer 

    from one enterprise to another                                                                       

5) Recall                                                                  5) Management training schemes

6) Former employees                                              6) Walk-ins, write-ins, talk-ins

7) Miscellaneous external sources

The sources of recruitment can be broadly categorized into internal and external sources-

1. Internal Sources of Recruitment:

                 Internal recruitment seeks applicants for positions from within the company. The various internal sources include:

• Promotions and Transfers –

            Promotion is an effective means using job posting and personnel records. Job posting requires notifying vacant positions by posting notices, circulating publications or announcing at staff meetings and inviting employees to apply. Personnel records help discover employees who are doing jobs below their educational qualifications or skill levels. Promotions has many advantages like it is good public relations, builds morale, encourages competent individuals who are ambitious, improves the probability of good selection since information on the individual’s performance is readily available, is cheaper than going outside to recruit, those chosen internally are familiar with the organization thus reducing the orientation time and energy and also acts as a training device for developing middle-level and top-level managers. However, promotions restrict the field of selection preventing fresh blood & ideas from entering the organization. It also leads to inbreeding in the organization. Transfers are also important in providing employees with a broad-based view of the organization, necessary for future promotions.

• Employee referrals-

            Employees can develop good prospects for their families and friends by acquainting them with the advantages of a job with the company, furnishing them with introduction and encouraging them to apply. This is a very effective means as many qualified people can be reached at a very low cost to the company.  The other advantages are that the employees would bring only those referrals that they feel would be able to fit in the organization based on their own experience. The organization can be assured of the reliability and the character of the referrals. In this way, the organization can also fulfil social obligations and create goodwill.

• Former Employees-

           These include retired employees who are willing to work on a part-time basis, individuals who left work and are willing to come back for higher compensations. Even retrenched employees are taken up once again. The advantage here is that the people are already known to the organization and there is no need to find out their past performance and character. Also, there is no need of an orientation programme for them, since they are familiar with the organization.

• Dependence of deceased employees-

             Usually, banks follow this policy. If an employee dies, his / her spouse or son or daughter is recruited in their place. This is usually an effective way to fulfil social obligation and create goodwill.

• Recalls: -

             When management faces a problem, which can be solved only by a manager who has proceeded on long leave, it may de decided to recall that persons after the problem is solved, his leave may be extended.

• Retirements: -

            At times, management may not find suitable candidates in place of the one who had retired, after meritorious service. Under the circumstances, management may decide to call retired managers with new extension.

• Internal notification (advertisement): -

              Sometimes, management issues an internal notification for the benefit of existing employees. Most employees know from their own experience about the requirement of the job and what sort of person the company is looking for. Often employees have friends or acquaintances who meet these requirements. Suitable persons are appointed at the vacant posts.

Advantages of Internal Source of Recruitment:

• Internal recruitment methods are time saving.
• No separate induction program is required.
• The method increases loyalty and reduces labour turnover.
• This method is less expensive.

Disadvantages of Internal source of Recruitment:

• There is no opportunity to get new talent in this method.
• The method involves selecting people from those available in the company so there is limited scope for selection.
• There are chances of biased and partiality.
• chances of employee discontent are very high.

2. External Sources of Recruitment:

              External recruitment seeks applicants for positions from sources outside the company. They have outnumbered the internal methods. The various external sources include:

• Professional or Trade Associations:-

             Many associations provide placement service to its members. It consists of compiling job seeker’s lists and providing access to members during regional or national conventions. Also, the publications of these associations carry classified advertisements from employers interested in recruiting their members. These are particularly useful for attracting highly educated, experienced or skilled personnel. Also, the recruiters can zero on in specific job seekers, especially for hard-to-fill technical posts.

• Advertisements:-

             It is a popular method of seeking recruits, as many recruiters prefer advertisements because of their wide reach. Want ads describe the job benefits, identify the employer and tell those interested how to apply. Newspaper is the most common medium but for highly specialized recruits, advertisements may be placed in professional or business journals.

            Advertisements must contain proper information like the job content, working conditions, location of job, compensation including fringe benefits, job specifications, growth aspects, etc. The advertisement has to sell the idea that the company and job are perfect for the candidate. Recruitment advertisements can also serve as corporate advertisements to build company’ image. It also cost effective.

• Employment Exchanges:-

            Employment Exchanges have been set up all over the country in deference to the provision of the Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959. The Act applies to all industrial establishments having 25 workers or more each. The Act requires all the industrial establishments to notify the vacancies before they are filled. The major functions of the exchanges are to increase the pool of possible applicants and to do the preliminary screening. Thus, employment exchanges act as a link between the employers and the prospective employees. These offices are particularly useful to in recruiting blue-collar, white collar and technical workers.

• Campus Recruitments:-

                Colleges, universities, research laboratories, sports fields and institutes are fertile ground for recruiters, particularly the institutes. Campus Recruitment is going global with companies like HLL, Citibank, HCL-HP, ANZ Grindlays, L&T, Motorola and Reliance looking for global markets. Some companies recruit a given number of candidates from these institutes every year. Campus recruitment is so much sought after that each college; university department or institute will have a placement officer to handle recruitment functions. However, it is often an expensive process, even if recruiting process produces job offers and acceptances eventually. A majority leave the organization within the first five years of their employment. Yet, it is a major source of recruitment for prestigious companies.

• Walk-ins, Write-ins and Talk-ins-

                The most common and least expensive approach for candidates is direct applications, in which job seekers submit unsolicited application letters or resumes. Direct applications can also provide a pool of potential employees to meet future needs. From employees’ viewpoint, walk-ins are preferable as they are free from the hassles associated with other methods of recruitment. While direct applications are particularly effective in filling entry-level and unskilled vacancies, some organizations compile pools of potential employees from direct applications for skilled positions.               Write-ins are those who send written enquiries. These job seekers are asked to complete application forms for further processing.

          Talk-ins involves the job aspirants meeting the recruiter (on an appropriated date) for detailed talks. No application is required to be submitted to the recruiter.

• Contractors:-

               They are used to recruit casual workers. The names of the workers are not entered in the company records and, to this extent; difficulties experienced in maintaining permanent workers are avoided.

• Consultants:-

                They are in the profession for recruiting and selecting managerial and executive personnel. They are useful as they have nationwide contacts and lend professionalism to the hiring process. They also keep prospective employer and employee anonymous. However, the cost can be a deterrent factor.

• Head Hunters:-

            They are useful in specialized and skilled candidate working in a particular company. An agent is sent to represent the recruiting company and offer is made to the candidate. This is a useful source when both the companies involved are in the same field, and the employee is reluctant to take the offer since he fears, that his company is testing his loyalty.

• Radio, Television and Internet:-

            Radio and television are used to reach certain types of job applicants such as skilled workers. Radio and television are used but sparingly, and that too, by government departments only. Companies in the private sector are hesitant to use the media because of high costs and also because they fear that such advertising will make the companies look desperate and damage their conservative image. However, there is nothing inherently desperate about using radio and television. It depends upon what is said and how it is delivered. Internet is becoming a popular option for recruitment today. There are specialized sites like naukri.com. Also, websites of companies have a separate section wherein; aspirants can submit their resumes and applications. This provides a wider reach.

• Competitors:-

             This method is popularly known as “poaching” or “raiding” which involves identifying the right people in rival companies, offering them better terms and luring them away. For instance, several executives of HMT left to join Titan Watch Company. There are legal and ethical issues involved in raiding rival firms for potential candidates. From the legal point of view, an employee is expected to join a new organization only after obtaining a ‘no objection certificate’ from his/ her present employer. Violating this requirement shall bind the employee to pay a few months’ salary to his/ her present employer as a punishment. However, there are many ethical issues attached to it.

• Mergers and Acquisitions:-

             When organizations combine, they have a pool of employees, out of whom some may not be necessary any longer. As a result, the new organization has, in effect, a pool of qualified job applicants. As a result, new jobs may be created. Both new and old jobs may be readily staffed by drawing the best-qualified applicants from this employee pool. This method facilitates the immediate implementation of an organization’s strategic plan. It enables an organization to pursue a business plan, However, the need to displace employees and to integrate a large number of them rather quickly into a new organization means that the personnel-planning and selection process becomes critical more than ever.

Advantages of External Source of Recruitment:

• The organization will have the benefit of new skills, new talents and new experiences, if people are hired from external sources.
• The management will be able to fulfil reservation requirements in favour of the disadvantaged sections of the society.
• Scope for resentment, heartburn and jealousy can be avoided by recruiting from outside.
• There is influx of new talent in this method.
• This method encourages more and more competition.
• There is lesser chance of partiality through this method.
• If options like campus recruitment have been exercised we get a chance to employ fersh graduates thus increasing employment.

Disadvantages of External Source of Recruitment:

• Better motivation and increased morale associated with promoting own employees re lost to the organization.
• External recruitment is costly because it involves recruitment cost,selection and training cost.
• If recruitment and selection processes are not properly carried out, chances of right candidates being rejected and wrong applicants being selected occur.
• This method is time consuming.
• This method reduces loyalty to the company.

PURPOSE AND IMPORTANCE OF RECRUITMENT

The following are the purpose and importance of recruitment in the organisation.

• Determine the present and future requirements of the organization on 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.
• Help reduce the probability that job applicants, once recruited and selected, will leave the organization only after a short period of time.
• Meet the organization’s legal and social obligations regarding the composition of its work force.
• Begin identifying and preparing potential job applicants who will be appropriate candidates.
• Increase organizational and individual effectiveness in the short term and long term.
• Evaluate the effectiveness of various recruiting techniques and sources for all types of job applicants.

               Recruitment is a positive function in which publicity is given to the jobs available in the organization and interested candidates are encouraged to submit applications for the purpose of selection.

                 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 decided 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 efforts will result in mediocre ones.

ABOUT THE RECRUITMENT

             Recruitment means to estimate the available vacancies and to make suitable arrangements for their selection and appointment. Recruitment is understood as the process of searching for and obtaining applicants for the jobs, from among whom the right people can be selected.

             A formal definition states, “It is the process of finding and attracting capable applicants for the employment. The process begins when new recruits are sought and ends when their applicants are submitted. The result is a pool of applicants from which new employees are selected”. In this, the available vacancies are given wide publicity and suitable candidates are encouraged to submit applications so as to have a pool of eligible candidates for scientific selection.

          In recruitment, information is collected from interested candidates. For this different source such as newspaper advertisement, employment exchanges, internal promotion, etc. are used.

           In the recruitment, a pool of eligible and interested candidates is created for selection of most suitable candidates. Recruitment represents the first contact that a company makes with potential employees.

Definition of Recruitment:

According to EDWIN FLIPPO,

                             ”Recruitment is the process of searching for prospective employees and stimulating them to apply for jobs in the organization.”

Need for Recruitment:

The need for recruitment may be due to the following reasons / situation:

• Vacancies due to promotions, transfer, retirement, termination, permanent disability, death and labour turnover.
• Creation of new vacancies due to the growth, expansion and diversification of business activities of an enterprise. In addition, new vacancies are possible due to job specification.

Objectives of Recruitment:

Recruitment fulfils the following objectives.

• It reviews the list of objectives of the company and tries to achieve them by promoting the company in the minds of public.
• It forecasts how many people will be required in the company.
• It enables the company to advertise itself and attract talented people.
• It provides different opportunities to procure human resource.

RECRUITMENT AND SELECTION

           Recruitment and selection are two of the most important functions of personnel management. Recruitment precedes selection and helps in selecting a right candidate.

                      
                   Recruitment is a process to discover the sources of manpower to meet the requirement of the staffing schedule and to employ effective measures for attracting that manpower in adequate numbers to facilitate effective selection of efficient personnel.

                Selection is one basic function of management. All managers have responsibility of staffing function by selecting the chief executive and even the foremen and supervisors have a staffing responsibility when they select the rank and file workers. However, the personnel manager and his personnel department is mainly concerned with the staffing function.

                   Every organization needs to look after recruitment and selection in the initial period and thereafter as and when additional manpower is required due to expansion and development of business activities.

                   ‘Right person for the right job’ is the basic principle in recruitment and selection. Ever organization should give attention to the selection of its manpower, especially its managers. The operative manpower is equally important and essential for the orderly working of an enterprise. Every business organization/unit needs manpower for carrying different business activities smoothly and efficiently and for this recruitment and selection of suitable candidates are essential. Human resource management in an organization will not be possible if unsuitable persons are selected and employment in a business unit.

Unscientific Recruitment and Selection:

Previously, the selection of candidates was influenced by superstitions, beliefs, personal prejudices of managers looking after the recruitment and selection of the staff.

The net result of such unscientific recruitment and selection are:

Ø Low productivity of labour

Ø High turnover

Ø Excessive wastage of raw materials

Ø More accidents and corresponding loss to the organization

Ø Inefficient working of the whole organization and finally

Ø Ineffective executive of training and management development programs

Scientific recruitment and selection

             The importance of selection recruitment and selection of staff is now accepted in the business world. Selection is important as it has its impact on work performance and employee cost. As result scientific methods of recruitment and selection are extensively for the selection of managers and the supervisory staff. The assistance of experts such as industrial psychologist and management consultants are also taken for the purpose of scientific selection. As a result, the objective of “right man for the right job” is achieved in many organizations. Moreover, “right job” is the basic principle in manpower procurement.

SCOPE OF HUMAN RESOURCES MANAGEMENT (HRM)

According to Dale Yoder the scope of Human Resource Management is very wide. It consists of the following functions.

•  Setting general and management policy for organizational relationships, and establishing and maintaining a suitable organization for leadership and co-operation.
• Collective bargaining, contract negotiation, contract administration and grievance handling.
• Staffing the organization, identifying, securing and positioning and grievance handling.
• Aiding in the self-development of employees at all levels providing opportunities for personal development and growth as well as for acquiring requisite skill and experience.

The institute of Personnel Management (IIPM) has described the scope of Human Resource Management into the following aspects: 

The Labour or Personnel Aspects:

            It is concerned with manpower planning , recruitment, selection, placement, induction, transfer, promotion, demotion, termination, training, and development, lay off and retrenchment, wage and salary administration, incentives, productivity, etc. 

The Welfare aspect:

           This aspect is concerned with the working conditions and amenities such as canteens, restrooms, lunch rooms, housing, transportation, education, medical help, health and safety, washing facilities, recreation and cultural facilities, etc. 

The Industrial Relating Aspect : 

           This is concerned with the company’s relations with the employees. It includes union-management relation, negotiating, collective bargaining, grievance handling, disciplinary actions, participative management settlement of industrial disputes, etc. All the above aspects are concerned with human element in industry as distinct from the mechanical element.   

FUNCTIONS OF HUMAN RESOURCES MANAGEMENT (HRM)

          Every organization has certain functions to perform. These functions of Human resources management can broadly be classified into two categories such as Managerial Functions and Operative Functions. 

  

     Managerial Functions of HRM:

                Managing people is the essence of being a Manager. Like other managers, a human resource manager performs the functions of planning, organizing, directing and controlling.

•  Planning:

                A plan is a pre-determined course of action. Planning is a process of deciding the goals and formulating policies and programs to achieve the goals. Planning involves forecasting and research. It helps to face successfully the changes those are likely to take place in future without planning the events, which are left to chance? It is the Means to manage change. Planning today avoid crisis tomorrow. 

         In the area of human resource management, planning involves deciding personal goals, formulating personnel policies and programs preparing the human resources budget etc. 

·      Organizing:
              In order to implement the plans, a sound organization structure is required. Organizing is the process of allocation tasks among its people and integrating their activities towards the common objectives. The right organization structure is the foundation of effective management because without it the best performance in all other areas will be ineffective. Organization is the frame through which management directs controls and co-ordinates the efforts of the people.

·      Directing:              

          Directing is the process of motivating, activating, leading and supervising people. Directing includes all those activities by which a manager influences the action of subordinates. It is the heart of the management process because it is concerned with initiating action. It helps to secure the willing and effective co-operation of employees for attaining organizational goals. A manager can tap the maximum potential of employees through proper direction. It also helps in building sound individual and human relations in the organization.      

·      Controlling:               

          It implies checking, verifying and regulating to ensure that everything occurs in conformity with the plans adopted and instructions issued. Such monitoring plans helps to minimize the gap between desire results and actual performance involves auditing training programs, analysing labour turnover records, directing morale survey, conducting separation interviews and many other means. 

                                          

  Operative Functions of HRM:

              The operative or service functions of human resources management are the tasks which are entrusted to the personnel department? These functions are concerned with specific activities of procuring, developing, compensating and maintaining an efficient work force.

·      Procurement Function:  

               It is concerned with securing and employing the right kind and proper number of people required for accomplishing the organizational objectives. It consists of activities like Job Analysis, Human Resource Planning, Recruitment, Selection, Induction and placement.

·      Development Function: 

               Human Resource Development is the process of improving the knowledge, skills, aptitudes and values of employees so that they can perform the present and future jobs easily and more effectively. This function comprises activities like Performance and potential appraisal, training, executive development and career planning and development.

·      Compensation Function: 

                It refers to providing equitable and fair remuneration to employees for their contribution to the attainment of organizational objectives. It consists of activities like Job Evaluation, Wage and Salary Administration incentives, Bonus etc.

·      Integration & Maintenance Functions:  

                It is the process of reconciling the goals of the organization with those of its members. It involves motivating employees through financial and non-financial incentives, providing job satisfaction, handling employees grievances timely through formal grievance procedures, collective bargaining, workers participation in management, conflict resolution.

              Developing the sound human relations, employee counselling, improving the quality of work etc. Maintenance concerned with protecting and promoting the physical and mental health of employees.

IMPORTANCE OF HUMAN RESOURCE MANAGEMENT (HRM)

            The significance of Human Resource Management can be discussed at four levels namely corporate, professional, social and national.

          Significance of Corporate Enterprise:            

                    Human Resource Management can helps an enterprise in achieving its goals more efficiently and effectively in the following ways.

•  Attracting and retaining the required talent through effective Human resource planning, recruitment, selection, placement, and orientation compensation and promotion policies.
• Developing the necessary skills and right attitudes among the employees through Training, development, performance etc.
• Securing willing co-operation of employees through motivation, participation, grievance handling etc.
• Utilizing effectively available Human Resources.
• Ensuring that the enterprise will have in future a team of competent and dedicated employees.                                                                                                                                            
• Professional Significance:

                 Effective Management of Human Resources helps to improve the quality of work life. It permits team work among employees by providing a healthy, working environment. It contributes to professional growth in the following ways.

• Providing maximum opportunities for personal development of each employee.
• Maintaining healthy relationships between individuals, and different work groups Allocation work property.                                                                                                                                                                                                                                                                                        
• Social Significance:

                Sound Human Resource Management has a great significance for the society. It helps to enhance the dignity of labour in the following ways.

• Providing suitable employment that provides social and psychological satisfaction to the people.
• Maintaining a balance between the job available and the job seekers in terms of numbers, qualification, needs and aptitudes.
•  Eliminating waste of human resources through conservation of physical and mental health.                                                                                                                                                                National Significance:

             Human Resources Management play a vital role in the utilization of nation’s natural, physical and financial resources require an efficient and committed manpower. There are wide differences in development between countries with similar resources due to differences helps to speed up the process of economic growth that in turn leads to higher standards of living and full employment.

Human resource management has become very significant in recent decades due to the following.

• Increase in the size and complexity of organization e.g. a MNC employing million persons.
•  Rapid technology developments like automation, computerization etc.
•  Rise of professional and knowledgeable workers.
•  Increasing proportion of women to the work force.
• Growth of powerful nation-wide trade unions.
• Widening scope of legislation designed to project the interests of the working class.
• Revolution in information technology that might effect the work force.
• Rapidly changing jobs and skills requiring long-term manpower planning. 

OBJECTIVES OF HUMAN RESOURCE MANAGEMENT

              Every organization has some objectives for which it is created and every part of it should contribute directly to the attainment of desired objectives. Objectives determine the character of an organization and serve as the basis for voluntary Co-operation and co-ordination among the employees. Objectives also provide benchmarks or standard evaluating performance.

               

               Objectives of human resources management are derived from the basic Objectives of an organization. In order to achieve organizational objectives integration of employer’s interest is necessary.  

Objectives of Human Resource Management or HRM or Personnel Management may be summarized as follows: 

• Human Resource Management (HRM) helps the organization to attains its goals by providing well-trained and well- motivated employees.
• Human Resource Management (HRM) helps the organisation to use the employees skills and knowledge  efficiently and effectively i.e. to utilize human resources effectively.
• Human Resource Management (HRM) used to enhance job satisfaction and self-actualization of employees by encouraging and assisting every employee to realize his / her full potential.
•   Human Resource Management (HRM) establish and maintain productive, self-respecting and internally satisfying working relationship among all the members of the organization.
• Human Resource Management (HRM) used to bring maximum individual development of members of the organization by providing opportunities for training and advancement.
• Human Resource Management (HRM) secures the integration of all the individuals and group with the organization by reconciling individual / group goals with those of an organization.
• Human Resource Management (HRM) develops and maintains a “quality of work life” (QWL) which makes employ organize desirable personal and social situation. 
• Human Resource Management maintains high morale and good human relations within the organization. 

CONCEPTS OF HUMAN RESOURCE MANAGEMENT(HRM)

           Human Resources Management (HRM) can be defined ad a set of policies, practices, and programs built to maximize both personal and organizational goals.

          According to National Institute of Personnel Management of India, “personnel management or HRM is that a part of management related to people at work and with their relationships inside the organization. It seeks to bring together men and women who constitute an enterprise, allowing each in making their own best contribution to its success both as an individual and as a member of a working group”.

          In the other words  “personal management or HRM can be defined as that field of management which includes about planning, organizing and controlling the functions of procuring, developing, maintaining and using a work force.

The following are the main concepts of Human Resource Management

• Objectives for which the organization is made are achieved economically and effectively 
• Objectives of all levels of personnel are served to the optimum possible degree and 
• Objectives of society are properly considered and served.

   

HUMAN RESOURCE MANAGEMENT (HRM)

 What is an organization?

                   Organizations comprise of people and function through efforts of an individual. Without people organizations cannot exits. The resource of men, money, materials and machinery are collected, co-ordinated and utilized through people. These resources by themselves cannot fulfil the objectives of an organization. They should be united into a team. It is through the combined efforts no organization can achieve its goals.

  
Definitions of Human Resource Management (HRM)   

          "Human Resource Management or Personnel Management or HRM can be defined as planning, organizing, directing and controlling of the procurement, development, compensation, integration, maintenance and separation of human resources to the end that individual,organizational and social objectives are achieved."
                                                                                           - Edwin Flippo 

           "HRM is a process comprising four functions - acquisitions, development, Motivation and maintenance of Human Resources."
                                                                                           -Robins & Duecento

        “ Business houses are built or broken over time not by markets capital, patents or equipments but by men”. From the national view point Human resources management may be defined as “the knowledge, skills, creative abilities, talents and aptitudes obtained from the population”.                                                                                            
                                                                                            -L.F. Uric

                                Human Resources Management (HRM) can be defined as managing (planning,organising,directing and controlling) the functions of employing,developing and compensating to human resources resulting in creation and development of human relations with a view to contribute proportionately to the organisational,individual and social goals.

                               In the view point of an organization, human resources represent the individuals at work. According to Juices, human resources or human factors refers to “a whole consisting of interrelated, interdependent and interacting physiological, sociological and ethical components”. Thus human resources represent the quantitative and qualitative measurement of the work force required in an organization.