Unit 3
Recruitment and Selection
Recruitment may be defined as the process of attracting the right talent with the right skills, the right attitude, and the right experience. It is one of the very important and most discussed topics of human resources. Recruitment nowhere is used alone. It includes various terms with it, those terms are selection and induction. As per recruitment and selection policy, the process of talent acquisition starts from recruitment and is processed further with selection and continues till induction. We can explain the term selection as well as induction. Selection is the process of choosing the best person for a given position. Recruitment is attraction and selection are to choose. Induction means introducing the person to the position. In other words, we can say the success of the company is based on the right recruitment to a very large extent as the process of recruitment is based on proper strategies.
An organization to survive well must have a concise Recruitment and Selection Policy so that it can have the best talent from a pool of candidates. Having a robust recruitment policy is the first demand of an efficient hiring process. The company must follow the recruitment policy and procedure.
What all is needed to create a robust recruitment policy in HRM:
- Clarity on a strategy to be employed for the implementation of recruitment and hiring policy.
- The recruitment policy must be a nonbiased policy.
- Clear cut guidelines to be followed for recruitment, selection, and induction i.e., Hiring Policy.
- All stakeholders must have defined responsibilities following recruitment policy and procedure.
- Stress should be on recruiting the right talent as mentioned under the recruitment and selection policy.
- Entire recruitment selection and induction must be based purely on merit.
- Focus should also be on the selection of candidates whose value aligns with that of the organization.
- Clear guidelines on approval flow at the time of the selection process.
- Proper alignment of manpower at the time of the selection process.
- Clarity on recruitment of temporary employees, consultants, etc.
- Clear job description.
- Clarity on terms and conditions of employment as per recruitment policy and procedure.
- To follow recruitment policy in a way that is being given as employment policy examples and recruitment policy examples.
An organisation recruits suitable candidates from different sources. Such categories are grouped as internal sources and external sources. Such sources are discussed below-
A. Internal Sources:
It is the source where employees are recruited within the organisation itself. Such sources are-
- Promotion:
It refers to the movement of employee with increase in position, responsibility, pay scale, authority etc. of an employee.
2. Transfer:
It refers to movement of employee from one position to another position with same responsibility, pay scale, authority etc. of an employee.
B. External Sources:
There are various external sources of recruitment.
1. Advertisement:
When a company wants to inform the public that it has a vacancy, it puts up an advertisement. The details of the job and the qualification of the candidates are briefly given. The company may receive the applications in response to the advertisement. After that, interview will be conducted.
2. Recommendations:
Here, recommendation means appointment of a person on getting a recommendation letter from a person reliable and well-known to the company. In certain cases, an employee of the company may bring the candidates to the company for the purpose of being appointed
3. Gate Applicants:
The educated unemployed youth may contact the company to get employment. These candidates may not have any recommendations. Even the company might not have issued any advertisement for the post. The candidate personally approaches the appointing authority of the company. If such candidate is found fit for any one of the posts which are vacant at that time, the candidate is appointed.
4. Employment Exchange:
The job seekers register their names with their qualifications with the employment exchange. The company can get a list of candidates who have requisite qualifications to fit in a job. Out of the listed candidates, any one of them can be selected. The employment exchange is of two kinds, i.e., public employment exchange and private employment exchange.
5. Personnel Consultant:
Private consultant is a separate specified agency doing the function of recruitment of the personnel on behalf of the company. In other words, the functions of personnel department of any company are performed by the personnel consultants. It receives the applications from the candidates, verifies the applications, conducts interviews and selects the candidates. The personnel consultant receives fees from the company for its service.
6. Educational Institutions – Campus Interview:
Universities, colleges and institutions are formed to offer specific courses. The educational institutions make an arrangement for campus interview. The business concerns come to the campus of educational institutions to recruit the students for various posts. The selected students are requested to join the post after completing the course.
7. Waiting List:
The business concern prepares a waiting list of candidates who have already been interviewed. But they are not appointed for lack of vacancy. Whenever a vacancy arises, the vacancy may be filled up by the company out of the waiting list.
8. Unsolicited Applicants:
Unsolicited applications mean the application received through mail from the candidate. The application brings the information regarding the name and address of the candidate, his age, educational qualification, experience, area of interest, etc. If there is any vacancy at that time, the candidate will be recruited for the specified post. Normally, this type of application is considered for the posts at the lower level.
9. Jobbers and Contractors:
The casual vacancy may be filled up by the company through the jobbers and contractors. Normally, unskilled candidates are appointed in this way. They are available at short notice and for a less salary. This type of candidate is brought by the jobbers and contractors to the place of work and they receive some commission from the company for this service.
10. Field Trips:
A company may send a group of experts to the towns and the cities where the various kinds of candidates required by the company are available. In this case, a prior advertisement may be issued in newspapers. The advertisement contains information regarding the date, venue and time of the interview. The interview is conducted in different places. This is procedure followed to recruit the candidates under field trips.
Advantages of internal sources of recruitment
1. It increases the morale among the staff members of the company.
2. Giving promotion keeps the employee happy.
3. It attracts efficient staff members.
4. The training expenses may be reduced, to some extent.
5. A person who has got a promotion, inspires the staff members to acquire a thorough knowledge of his job.
6. Internal promotion helps the staff members to derive job satisfaction.
7. A promoted staff member may make use of his past experience in the new post.
8. It increases the security of the job of the staff member.
9. A new responsibility can be entrusted safely to the promoted staff members on the basis of contents of Service Register.
10. It ensures the continuity of job to the staff members and stability of the organisation.
11. It induces the staff members to work hard to get promotion.
12. The expenses for advertisement, recruitment, test and interview are avoided.
Disadvantages of internal sources recruitment
1. If the higher post is filled internally, the company will not be able to get fresh and original ideas and initiative from the staff members.
2. The outsiders do not have a scope to show their ability in the performance of the work.
3. An under-qualified person may be appointed in the higher post.
4. If the promotion is guaranteed to the internal staff members after the expiry of a specific period, the concerned staff member does not care to work efficiently.
Advantages of external sources of recruitment
1. Choice – A company can recruit a person out of a large number of applicants. Each and every candidate plus points and minus points are taken into consideration for the purpose of recruitment. Then, the best candidate can be selected by the company
2. New Outlook – If a new person is recruited by the company, a new way of approach may be used to solve the problem, which will give maximum benefits to the company.
3. Wide Experience – If the recruited new candidate has experience in various fields, the company can get the benefit of the candidate’s experience.
Disadvantages of external sources of recruitment
1. Grudging of old employment – If a candidate is recruited from external sources, the existing staff may have a grudge against him. It results in demoralisation of the staff members.
2. Lack of co-operation – The existing staff members do not extend their co-operation to the person who is selected from out of external sources. In addition to this, the existing staff members make the new recruit face the difficulties and try to disorient him in relation to his work.
3. Expensive – Recruitment of a person from outside the company requires a lot of formalities. The formalities include issuing advertisement, receiving the applications, screening the applications, dispatching the interview letters, fixation of interview date, time and place, formation of an interview committee etc. Completing all the above said procedure involves a lot of expenditure.
4. Trade union – If the trade union of the company is very strong, it is very difficult to convince the trade union and recruit a person from outside a company.
5. Danger of non-adjustment – If a newly recruited person fails to adjust himself to the working conditions of the company, it leads to more expenditure in looking for his replacement. Besides, it causes irritation and quarrel between the recruited person and the existing staff members.
There are three significant methods of recruitment which are regularly used in the corporate world namely:
1. Direct Recruitment Methods
2. Indirect Recruitment Methods
3. Third Party Recruitment Methods
The major difference between direct and indirect method of recruitment is that the organization send a representative to contact the potential candidate (which means direct contact) in the case of direct recruitment method while in the case of indirect recruitment methods the candidates are informed about job vacancy through different channel of advertisement.
- Direct Recruitment Methods:
The campus recruitment is a major part of recruitment carried out using direct method. The organization sends a representative from HRM department in educational institutes to interact with potential candidates. The candidates who are seeking for jobs are explained about the job vacancy in the organization and the skills which are required to perform the job. The representative interacts with the candidates with the help of placement cells of the institutions. A briefing session is conducted before the actual screening and interview process.
The Organization (Employer) gets information about the academic records of the candidates through the placement cell. Once the organization is ensured about the presence of excellent working skills in the candidate the Human Resource Representative is sent to the institution to conduct recruitment process. The organization use various recruitment methods like conducting seminars, participating in conventions, job fair to recruit the candidates using direct method. Through this method the candidates from the academic background of engineering, management and medical science are mostly recruited by the organization.
2. Indirect Recruitment Methods:
In the indirect method of recruitment, the organization use the advertisement channel such as newspapers, radio, job sites, radio, television, magazines and professional journals to reach the potential candidates. The advertisement provides information about the job requirement, the range of salary offered, the type of job (full time or part time) and job location. The candidates who are interested in the job apply for it and share their resume with the organization.
The Human Resource Management (HRM) Department of an organization uses indirect method of recruitment in three situations:
- When organization doesn’t have a suitable employee who can be promoted to perform the higher position jobs.
- When the organization is new to the work territory and want to reach out new talent in the market
- This method is often used to fill up the vacancy in scientific, technical and professional department.
To fill up the higher position in the organization the widely dispersed advertisement is very useful as it helps the company to reach various suitable candidates. Many organizations also use blind advertisement to reach out candidates in which the identity of the organization is not revealed.
3. Third Party Recruitment Methods:
The third-party method of recruitment includes the helping hands which are outside the organization. The Recruitment Consultant or Employment Agencies, Search & Select Companies, Employee Referral, Voluntary Organization, Data Banks, Trade Unions and Labour Contractors are different channels which help the organization to establish contact with the potential candidates.
HR Management is the key function within an organization that focuses on the recruitment, management and providing direction for the people who work in an organization.
As you can imagine, all of the processes and programs that are touched by people are part of the HR Management kingdom.
The HR department members provide the administrative services, knowledge, legal, necessary tools, training, coaching, management advice and talent management oversight that the rest of the organization needs for successful operation.
The recruitment process is an important part of HR management. It isn’t done without proper strategic planning. For HR management team, HR management presentation slide is one of the most important tools to have on hand. It is detailed outline that provides information about the organization’s needs and goals.
Before companies recruit, they must implement proper staffing plans and forecast to determine how many people they will need. The basis of the forecast will be short to long-term plans of the organization and the annual budget.
Selection is significant for an organisation as it brings employees to the organisation. Some of the significance of selection is discussed below-
Figure: Importance of selection
(i) Reduced labour turnover:
Properly selected candidates feel like staying in the organisation; as suitable work on matching jobs, assigned to them is a source of satisfaction to them. Hence, the phenomenon of unnecessary labour turnover is highly minimised – making for a stable labour force in the organisation. This benefits both the organisation and the worker.
(ii) Lesser need for training:
Properly selected personnel exhibit a lesser need for training; as their suitability for the jobs to be assigned to them, has already been verified through the selection-procedure. As such the necessity for arranging ‘routine-training programmes’ for such personnel is rules out – saving organisation’s time, efforts and costs involved in conducting such training programmes.
(iii) Self-motivation and high morale:
When suitable candidates (i.e. ‘best-fits’) are assigned to matching jobs; such personnel feel self-motivated towards the best performance of’ their jobs. The constant state of self-motivation over a period of time helps in building high morale of such personnel, for the organisation.
(iv) More and better production – leading to profit maximization:
A derivative advantage of the ‘self-motivation and high morale’ is that the production (or performance) turned out by ‘best fits’ is not only more in quantity; but is also of a superior quality. This phenomenon leads to profit maximisation, for the enterprise, in the long-run.
(v) Good human relations:
As a result of good selections, there is a better environment for working in the organisation. Such environment helps to promote good human relations in the organisation; which is one of the highly valued assets of the organisation.
Tools of Selection and selection Process
Selection is a process of choosing right person for the right job. Selection means weeding out unsuitable applicants and selecting those individuals with prerequisite qualifications and capabilities to fill the jobs in the organization. The selection process consists of a series of steps as follows:
Figure: Selection process
1. Job Analysis:
The first step in selection process is analyzing the job. Job analysis consists of two parts:
- Job Description, and
- Job Specification.
Proper job analysis helps to advertise the job properly by clearly stating the duties, qualifications, experience, salary, etc. Accordingly, the right candidates may apply for the job, thus saving time and effort of the selectors.
2. Advertising the Job:
The next step is to advertise the job. The job can be advertised through various media such as newspapers, internet, etc. The right details about the job and the candidate requirements must be given in the advertisement.
3. Initial Screening:
The initial screening can be done of the applications and of the applicant. Usually, a junior executive does the screening work, the executive may check on the experience, age, qualifications family background of the candidate. The candidate may be informed of salary, working conditions, etc.
4. Application Blank:
It is a company's format to obtain standard information of every candidate in respect of biographic, academic, references, work experience, etc. The application blank provides:
- Inputs for the interview.
- The basis to reject candidates who do not meet eligibility criteria.
5. Tests:
Various tests are conducted to judge the ability and experience of the candidates. The type of tests depends upon the nature of job. An important advantage of tests is that large group of candidates can be tested at a time. The various tests are:
- Personality test
- Intelligence test
- Performance test
- Stress test, etc.
6. Interview:
It is face to face exchange of views, ideas and opinions between the candidate and interviewer(s). There are various types of interviews such as:
- Panel Interview
- Individual Interview
- Group Interview
- Exit Interview, etc.
7. Reference Check:
Candidate may be asked to provide references to confirm about the applicant s past life, character and experience. Reference check helps to:
- Know the character and other details of the candidate.
- Cross check false information supplied by candidate, if any.
8. Medical Check:
Medical check of the candidates is undertaken to:
- Check physical fitness of the candidate.
- Ensure the health and safety of other employees.
9. Final Interview:
Before making a job offer, the candidates may be subjected to one more oral interview to find out their interest in the job and their expectations. At this stage, salary and other perks may be negotiated.
10. Job Offer:
This is the most crucial and final step in selection process. A wrong selection of a candidate may make the company to suffer tor a good number of years. Company should make a very important decision to offer right job to the right person.
The selection tests aim at measuring such skills and abilities in a worker that are decided by job analysis to be essential for successful job performance. A test is an instrument designed to measure selected psychological factors.
The basic assumption underlies the use of tests in personnel selection is that the individuals are different in their job-related abilities and skills and that these skills can be adequately and accurately measured for comparison. A great number of human abilities are complex and interrelated. Hence, these have to be understood in association with each other.
Tests used in selection can be classified into five categories, namely:
1. Achievement Tests:
Achievement tests measure the job knowledge of the applicants in the areas such as marketing, HR and economics. When an applicant claims to know something, an achievement test is given to measure how well he/she knows it. It is for this reason that achievement tests are also known as proficiency tests or performance tests.
Achievement tests are a refinement of the work sample technique and are used to measure what the applicant actually can do and what tasks he/she can perform right now. Adaptability tests, abstract reasoning tests, Stanford-Binet Scales, Miller Analogies Test and Purdue test for machinists and machine operators are some of the examples of such tests.
Trade tests are the most common type of achievement tests given, for example, in a typing test, matter to be typed is provided to the candidate and the time taken by the candidate in typing that matter as also the errors made by him/her are noted down, and thus his/her proficiency in typing is measured.
Similar tests are available in shorthand, calculating machines, operating calculators, simple mechanical equipment, dictating and transcribing apparatus.
2. Aptitude Tests:
Aptitude tests are also known as potential ability tests and specific cognitive tests and are used to measure the latent ability of a candidate to learn a given job if he/she is given the required training. Aptitude tests have special significance where the new recruit has little or very less experience along the lines of the job opening.
Specific aptitude tests have to be designed for jobs that require mechanical, clerical, musical, academic, linguistic, motor capacities and abilities. Bennett Test of Mechanical Comprehension and the Stenquist Mechanical Aptitude Test are some of the examples of popular mechanical aptitude tests.
Aptitude tests for clerical jobs lay emphasis mainly on arithmetic, handwriting, spellings, vocabulary, checking and so on. Aptitude tests help in detecting peculiarities or defects in the applicant’s sensory or intellectual capacity.
3. Interest Tests:
Interest in a job or task contributes to success on the job. A person interested in his/her job is likely to do better than one who is indifferent or uninterested. Interest tests have been designed to discover a person’s field of interest and to identify the kind of work that will satisfy him/her. They are in a sense inventory of the likes and dislikes of the people of some occupations.
Although the interest tests have been mostly standardised, some organisations have developed tests to suit their own requirements, especially when there is a continuing demand for a large number of new personnel for a single job. Such developed tests are also known as ‘Tailor- made Tests’.
Most widely used interest scales are ‘Kuder Preference Record’, ‘Strong Vocational Interest Blank’, mechanical reasoning tests and so on.
4. Personality Tests:
These tests aim at measuring the basic make-up or characteristics of an individual. They assess his/her introversion motivation, emotional reactions, emotional maturity, stability, mood, value system, ability to adjust, interpersonal relations, self-image, self- confidence, ambition, tact, optimism, decisiveness, sociability, objectivity, patience, fear, distrust, suspicion, judgement, dominance, impulsiveness, integrity, stability and so on. Industrial psychologists usually emphasise the ‘big five’ personality dimensions as they apply to personnel testing.
5. Intelligence Tests:
These tests aim at measuring the general level of intelligence of the applicant. This is done by measuring the IQ of the applicant. In addition to this, they also measure a range of abilities such as numerical ability, vocabulary, memory and verbal fluency.
However, intelligence is usually measured with individually administered tests such as the Wechsler Adult Intelligence Scale, Wonderlic Personnel Test, Stanford-Binet Test, California Test of Mental Maturity (Adult Level), Kaufman Adolescent and Adult Intelligence Test, Minnesota Paper Form Board Test (MPFB), Comprehensive Test of Verbal Intelligence, Wide Range Intelligence Test and Slosson Intelligence Test.
“Interview” means “deliberate, active listing with a purpose to draw the other person out, to discover what he really wants to say, and to give a chance to express himself/herself freely.”
“An interview is an attempt to secure maximum amount of information from the candidate concerning his suitability for the job under consideration.”
“An interview is a purposeful exchange of ideas, the answering of questions and communication between two or more persons.”
The interview is used in practically every business and profession. Some activities call for a high degree of proficiency in interviewing; such as appointment of engineers, lawyers, managers, salesmen and supervisors. The interview is also widely used in securing credit information, making loans, selling, and adjusting complaints as well as in personnel administration and management.
Interview is one of the important steps in selection procedure. It is probably the most widely used selection tools. Employment interview and tests are two of the most important screening devices generally used in hiring procedure. Interview is the oldest method of evaluating a person’s potential for a job.
It assists to reveal, examine and assess the capabilities, qualities and traits of an individual to be selected for the job in an organisation. Interview technique is quite complex in substance and difficult to use property. Its scope includes measuring all the relevant characteristics and integrating and classifying all other information about the applicant.
Through this technique, needed information like nature, attitude, behaviour, perception, interest, motives, likes, dislikes, intelligence, personality etc. of candidate can be obtained by a face-to-face contact. This technique is practically used in every business and profession.
Some activities call for a high degree of proficiency in interviewing candidates for the Posts like professors, engineers, psychiatrists, clinical psychiatrists, lawyers, social workers, employment managers, industrial relations, managers, market analysts, salesmen, supervisors etc.
The following are the objectives of a well-designed and an effective interview:
1. To seek more information about the candidate, which is not mentioned in “Application Blank.”
2. To judge an applicant’s qualities and characteristics as a basis for sound selection and placement.
3. To verify the information given in the application form and in the Application Blank.
4. To give essential and accurate facts about the job and the organisation such as nature of the job, hours of work, opportunities for advancement, employee welfare facilities, benefits and services available, organisation’s policies, plans, future prospects etc. to the candidate. So that the candidate will be in a position to decide, whether to accept or not the employment in that organisation.
5. To establish rapport to create a feeling of mutual understanding, confidence and trust between the organisation (personnel department) and the applicant who is to be employed.
6. To create a good image and to promote goodwill towards the organisation, whether the interview culminates in employment or not.
7. To give an idea of disciplinary action, grievance handling and relations with unions to the candidate, because interview is a valuable tool for all these.
8. Interview is the only technique which seeks correct and factual information about the candidate.
Thus, in brief, selection interviews give a chance to personally “size up” the candidate and to pursue questioning in a way employment tests can employ not. In other words, interviews can be described as a very important screening tool of the candidate.
References:
- Personnel and Human Resource Management – A M Sharma (Himalaya Publishing House)
- Personnel Management and Industrial Relations- R S Davar (Vikas Publishing House)
- Human Resource Development and Management- Biswanath Ghosh (Vikas Publishing House)
- Personnel Management – C.B. Mamaria, S V Gankar (Himalaya Publishing House)
- Human Resource Management – AShwathappa