Recruitment & Selection

RECRUITMENT AND SELECTION
HUMAN RESOURCES MANAGEMENT

INTRODUCTION:Human resource management is that field of human behaviour in which manager plans, organize, staff, direct and control human, physical and financial resource in an organized effort in order to achieve desired individual and group objectives with optimum efficiency and effectiveness. In simpler words management is concerned with the accomplishment of objective by utilizing physical and financial resources through the efforts of human resources and so human resource is the crucial system in the process of management. Human resource management is concerned with the management of people at work. The way in which people are recruited, developed and utilized by the management largely determines whether the organizations will achieve its objectives. Therefore human resource in the organization needs to be properly coordinated and utilized. It is universally recognized that the effectiveness with which human resources are coordinated and utilized is directly responsible for the success of any organization. Human resources are multidimensional in nature people at work constituting the human resource in an organization comprises all individuals engaged in any of the organization activities, regardless of levels ages and socio cultural background. Each individual working in the organization has his own set of complex, needs, value and intention. Each one differs from the other. Moreover, human resource management is also concerned with now these various types of individuals ,ay be changed at what cost, under what specific circumstances and in how much short a period of time.
DEFINITION:According to Edwin Flippo, Human resource management is the planning, organizing, directing and controlling of the procurement, development, compensation, integration, maintenance, and separation of human resources to the end that individual, organizational and societal objectives are accomplished.
SECTION - I RECRUITMENT
INTRODUCTION OF RECURITMENT:MEANING AND IMPORTANCE OF RECRUITMENT:The human resources are the most important of an organization. The success or failure of an organization is largely dependent on the caliber of the people working therein. Without positive and creative contributions from people, organizations cannot progress and prosper. In order to achieve the goals or the activities of an organization, therefore, we need to recruit people with requisite skills, qualifications and experience. While doing so, we have to keep the present as well as the future requirements of the organization in mind. Recruitment means to estimate the available vacancies and to make suitable arrangements for their selection and appointment. Recruitment refers to Discovering potential applicants for actual or anticipated organizational vacancies. Recruitment is a process To discover the source of manpower to meet the requirements of staffing, to employ effective measures for attracting potential manpower in adequate number. Recruitment is the process of identifying the sources for prospective candidates and to stimulate them to apply for the job. Its linking activity bringing together those with jobs and those seeking jobs. It locates the source of manpower to meet the requirements and job specifications. In recruitment process available vacancies are given wide publicity and suitable candidates are encouraged to submit application so as to have a pool of eligible candidates for scientific selection. In recruitment, information is collected from interested candidates. For these different sources of recruitment such as newspaper advertisement, employment exchange, internal promotions, etc. are used. In the recruitment, a pool of eligible and interested candidates is created for the selection of most suitable candidate. Recruitment represents the first contact that a company makes with potential employees. Recruitment is a positive function in which publicity is given to the jobs available in the organization and interested candidates (qualified job 2
applicants) are encouraged to submit applications for the purpose of selection.
DEFINITION OF RECREUITMENT:According to Edwin Flippo, Recruitment is the process of searching for prospective employees and stimulating them to apply for jobs in the organization. According to Dale S. Beach, Recruitment is the development and maintenance of adequate manpower resources. It involves the creation of a pool of available labour upon whom the organization can depend when it needs additional employees. Thus, recruitment is the act or process of an organization attempting to obtain additional human resources for operational purposes. The goal of recruitment is to create a large pool of persons who are available and willing to work for a particular organization.
OBJECTIVES OF RECRUITMENT:The objectives of recruitment are as follows: (i) (ii) (iii) (iv) (v) (vi) (vii) (ix) (x) To attract people with multi-dimensional skills and experiences that suit the present and future organizational strategies, To induct outsider with a new perspective to lead the company, To infuse fresh blood at all levels of the organization, To develop an organizational culture that attracts competent people to the company, To search or head hunt/head pouch people whose skills fit the companys values, To search for talents globally and not just within the company, To devise methodologies for assessing psychological traits, To design entry pay that competes on quality but not on quantum, To anticipate and find people for positions that do not exist yet.
(viii) To seek out non-conventional development grounds of talent,
PURPOSE OF RECRUITMENT:Recruitment has three major purposes: 1) To increase the pool of job applicants with minimum cost. 2) To meet the organizations legal and social obligations regarding the demographic composition of its workforce. 3) To help increase the success rte of the selection process by reducing the percentage of applicants who are either poorly qualified or have the wrong skills.
NEED FOR RECRUITMENT:The need for recruitment may be due to the following reasons/situations: (a) Vacancies due to promotions, transfers, retirement, termination, permanent disability, death and labour turnover. (b) Creation of new vacancies due to growth, expansion and diversification of business activities of an enterprise. In addition, new vacancies are possible due to job respecification.
SOURCES OF RECRUITMENT:Before an organization activity begins recruiting applicants, it should consider the most likely source of the type of employee it needs. Some companies try to develop new sources, while most only try to tackle the existing sources they have. These sources, accordingly, may be termed as: Internal sources A. External sources A. INTERNAL SOURCES:As the term implies internal source of recruitment is for those who are currently members or the organization. Whenever any vacancy arises or occurs, somebody from within the organization is upgraded, transferred, promoted or sometimes demoted. This source also includes personnel who were once on the pay-roll of the company but who plan to return or whom the company would like to rehire, such as
those on leave of absence, those who quit voluntarily, or those on production lay-offs. Following are the internal sources of recruitment. 1) PROMOTIONS:In order to motivate the existing employees, management follows the policy of internal promotions. Promotion means shifting of an employee to a higher position carrying higher responsibilities, facilities, status and salaries of an employee within the organization. Many achieve promotion through hard work and good performance. In non-unionized companies, promotions are made on the basis of merit because employers are free from the union pressures. In government departments and in many companies promotions are given on seniority. A promotion policy should establish a well-defined promotion chart showing who can go up to what level in the organization. 2) TRANSFER:Transfer refers to a change in job assignment. It may involve a promotion or demotion, or no change in terms of responsibility or status. A transfer may be either temporary or permanent, depending the necessity of filling jobs. E.g. transfer from head office to branch office. 3) RETIREMENTS:At times, management may not find suitable candidate in place of the one who had retired, after meritorious service. Under this circumstances management may decide to call retired manager with new extension. 4) RECALLS:When management faces a problem, which can be solved only by a manager who has proceeded on long leave, it may be decided to recall that person. After the problem is solved, his leave may be extended.
5) FORMER EMPLOYEES:Individuals, who left for some other job, might be willing to come back for higher wages incentives. An advantage with these sources is that the performance of the person/employee is already known. EXTERNAL SOURCES:As the term implies the external source of recruitment is of potential workers who are not currently member of the organization. It usually includes new entrants to the labour force the unemployed and people employed in the other organization seeking the change. Company managements have to use eternal sources for the recruitment of supervisory staff and managers as and when necessary. This may be with a view to introducing the new blood in the organization. External recruitment is one way of bringing into the organization that has new skills or abilities and different way of approaching job task. Following are the most common external source of managerial recruitment. 1) NEWSPAPER ADVERTISEMENTS:Newspaper advertisements are overwhelmingly popular source of recruitment. A message containing general information about the job and the organization is placed in various newspapers. Newspaper advertising typically generates a large applicant flow. Though costly, it provides wide choice as it attracts a large number of suitable candidates from all over the country. The best example for newspaper advertisement is the Times of Indias Ascent supplement which comes on every Wednesday and contains both domestic as well as international jobs. 2) CAMPUS RECRUITMENT:College Campuses are another very popular recruitment source. The growth of Management institutes, IIts and Regional Engineering Colleges has provided a popular source of recruitment. Private sector is able to attract many aspirants. It is an excellent source of recruiting management trainees. The promising students get job security 6
immediately
after
securing
degrees
due
to
such
campus
interviews/recruitment i.e., in India, many of the leading universities and institutes of management and technology provide a variety of placement services to both to their own students and industries. Most of the industries are maintaining detailed statistics regarding the campus recruiting process. Comparison are made from year to year as follows: i. ii. iii. Number of invitations to visit Number of campus interviews Number of invitation acceptance Number of invitations to visit Number of job acceptances Number of decisions to hire
Many industries have found on-campus college-recruiting to be an excellent way of locating new sales and managerial personnel. 3) RECRUITMENT THROUGH INTERNET:The Internet has quickly become a very popular source of employment advertising. This source is quickly growing in popularity. Currently employers can post their openings to any of several newsgroups for free. Most employment advertisement firms can also post the jobs on the Internet; however, they charge a fee. A large and fast growing proportion of employers use the internet as a recruitment tool. More and more organizations are placing information about open positions on the World Wide Web. There are many web sites through which recruitment takes place. Some of the examples are www.naukri.com, www.monster.com, www.Timesjob.com, etc. 4) JOB FAIRS:Job fairs are very effective. A job fair is an event sponsored by a "job fair" company who charges a fee to participating employers. The "job fair" company will typically advertise in local media to attract qualified applicants. Hiring managers can meet multiple candidates and conduct on-the-spot interviews. Because the applicants may be interviewing with multiple employers, it is imperative to respond quickly with 7
invitations for in-plant interviews of qualified candidates. If a job fair results in just one hire it is usually cost effective. 5) EMPLOYMENT AGENCIES:The firm contacts an organization whose main purpose is locate job seekers. The company provides the agency with information about the job, which the agency then passes along to its clients. Clients may be either employed or unemployed. Agencies can either be public or private. Fees may be charged to either or both the client seeking a job and the company seeking applicants. 6) WALK INS, WRITE-INS AND TALK-INS:The most economical approach for recruitment of candidates is direct applications. The job seekers submit applications or resumes directly to the employer. The advertisement mentions date, day and timing during which the applicant can walk in for an interview. Write-ins are those who send written inquiries. These applicants a raked to complete application forms for further processing. Talk-ins is now becoming popular and the applicants are required to meet the employer for detailed talks. The applicant is not required to submit any applications.
ADVANTAGES OF INTERNAL SOURCES OF RECRUITMENT:1) Internal recruitment is economical. 2) The present employees already know the company well and are likely to develop a loyalty for the same. 3) It tends to encourage existing employees to put in greater efforts and to acquire additional qualification. This means there is motivation to employee to develop and reach to higher positions. 4) It provides security and continuity of employment. 5) Internal recruitment helps to raise the morale of employees and develop cordial relations at the managerial levels. 6) It reduces labour turnover as capable employees get promotion within the organizations.
7) Internal recruitment is a quick and more reliable method. 8) People recruited from within the organization do not need induction or training.
DISADVANTAGES RECRUITMENT:-
OF
INTERNAL
SOURCES
OF
1) Internal promotions create a feeling of discontent among those who are not promoted. 2) It prevents the entry of young blood in the organization. 3) Promotion to certain key post may not be possible due to nonavailability of competent persons. 4) The organization will not be able to attract capable persons from outside if internal sources are used extensively. 5) It may encourage favoritism and nepotism. 6) Promotions by seniority may not be always beneficial to the organization. In brief, internal methods of recruitment should be used to extent possible but too much dependence on internal methods is undesirable and may prove costly to the organization in the long run.
ADVANTAGES OF EXTERNAL SOURCE OF RECRUITMENT:1) Entry of young blood in the organization is possible. 2) Wide scope is available for selection. This facilitates selection of people with rich and varied experience. 3) Selection can be made in an impartial manner as large number of qualified and interested candidates are available. 4) Scope for heartburn and jealousy can be avoided by recruiting from outside. 5) The management can fulfill reservation requirements in favour of the disadvantaged section of he society.
DISADVANTAGES RECRUITMENT:-
OF
EXTERNAL
SOURCE
OF
1) External recruitment leads to labour turnover particularly of skilled, experienced and ambitious employees. 2) The relations between employer and employee deteriorate leading to industrial disputes and strikes. 3) The present employees may lose their sense of security. Their loyalty to the organization may be adversely affected. 4) Employees feel frustrated due to external recruitment and their morale is adversely affected.
EVALUATION OF VARIOUS SOURCES OF RECRUITMENT:It is very difficult to say which source is suitable to an enterprise or recruiting the personnel at various jobs. No single source can suit all the enterprise for filling up the posts of different nature and at different times. For example for recruiting the unskilled workers, direct recruitment at gate or friends and relatives of existing employees or casual workers may be the best sources of recruitment. For recruiting managers and high officials, consultants, professional bodies, universities and employment exchanges may be the suitable sources. Thus suitability of the source of labour supply depends upon various factors1. Size of the enterprise 2. Nature of job 3. Supply of qualified persons 4. Time lag between requisition and placement 5. Reactions of present employees to source of recruitment 6. Relative merits of source on the basis of turnover 7. Employment conditions in the community where the organization is located.
RECRUITMENT PROCESS:The process comprises of 5 interrelated stages which are as follows: 1. Planning
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2. 3. 4. 5.
Strategy Development Searching Screening Evaluation and control.
1. PLANNING STAGE:Its designing the set objectives that a. Quantify i.e. number b. Qualify i.e. type of applicant to be contacted. In accordance with job vacancies and their job information. a. NUMBER OF CONTACTS:The company ascertains how many applicants are essential to fill in a particular vacancy. These figure may be arrived by an organization, taking into account its past recruitment process. The organization would derive a term called as YIELD RATIOS. YIELD RATIOS:These ratios indicate the number of leads/ contacts needed to generate a given number of hires at a point at time. For example, if a company needs 10 management trainees in the next six months, it has to monitor past yield ratios in order to find out the number of candidates to be contacted for this purpose. On the basis of past experience, to continue the same example, the company finds that to hire 10 trainees, it has to extend 20 offers. If the interview-to-offer ratio is 3:2, then 30 interviews must be conducted. If the invitees to interview ratio is 4:3 then, as many as 40 candidates must be invited. Lastly, if contacts or leads needed to identify suitable trainees to invite are in 5:1 ratio, then 200 contacts are made. Based on this information, the company can construct the recruiting yield ratio, as shown below:
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b. TYPE OF CONTACTS:People matter but the right type of people matter more. Thus, recruitment planning is to identify the type of people that need to be looked at or approached about job openings. These details would be availed through job description and job specifications. 2. STRATEGY DEVELOPMENT STAGE:-
A strategy is a plan of action. Once the organization has summed up how many and what type of applicants required, the other issues would be: a. MAKE OR BUY:The company has to make call whether the equation would be: Hire less skilled employees + invest on training and education = Make Or Hire skilled employees + little Training and immediate work benefit = buy Whatever would be the best fit according to the need of the hour has to be accustomed and each has its own pros and cons. For Eg: in case of buythough an organisation might have an advantage with the buy decision of little time and money spent on training and benefit of immediate work handling, but due to high remuneration demanded the benefit are outweighed by it. b. TECHNOLOGICAL SOPHISTICATION:The decision as to use the available technology in the process. e.g.: due to the advent of computers, the exchange of resumes online by job seekers and employers has helped the organisation a chance to eliminate an unfit applicant right in the screening stage, thus saving on time and travel expenses. c. WHERE TO LOOK:Here the geographic distribution of labour markets among job seekers is to be considered. General strategy for an organisation :-
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Top level Executives - go on to national level and even international if its an MNC. Technical Employees - regional and local markets. e.g.:- IT people:- Banglore Embroiders:- Calcutta. Clerical and Blue collar jobs:- Local Markets. Also, these arent water tight compartments and may be modified as per demand and need. But, organisations adopt an incremental strategy in which initial efforts are concentrated in regional or local markets and expanded if these efforts fail to achieve desired results. d. HOW TO LOOK:This refers to the sources of recruitment. These can be external as well as internal. 3. SEARCHING STAGE:Also known as the Implementation Stage. Step 1 is Source Activation . Sources and search methods are activated which results in a flood of applications. Step 2 is Selling . following the source activation would be the way in which the message is sent across the organisation. A thoughtful and Tactful decision in identifying the way in which the company sells its vacancies. 4. SCREENING STAGE:-
Applications received in response to ads are screened and only eligible applicants are called for an interview. Once the applications are scrutinized and short listed, the selection process commences. The techniques used to screen applicants vary depending on the candidate sources and recruiting methods used. Eg:- interviews and application banks used to screen walk-ins.
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5.
EVALUATION AND CONTROL STAGE:-
This step where the organization goes back to the process and analyses the effectiveness of the entire process. EVALUATION OF RECRUITMENT PROCESS:The recruitment process has the objective of searching for and obtaining applications from job-seekers in sufficient numbers and quality. Keeping this objective in mind, the evaluation might include: Return rate of applications sent out. Number of suitable candidates for selection. Retention and performance of the candidates selected. Cost of the recruitment process. Time lapsed data. Comments on image projected
METHODS OF RECRUITMENT:The following are the most commonly used methods of recruiting people. 1) INTERNAL METHODS:There are 4 types of internal methods: i. PROMOTIONS AND TRANSFERS:This is a method of filing vacancies from within through transfers and promotions. A transfer is a lateral movement within the same grade, from one to another. It may lead to changes in duties and responsibilities, working conditions, etc., but not necessarily salary. Promotion, on the other hand, involves movement of employee from a lower level position to a higher level position accompanied by (usually) changes in duties, responsibilities, status and value. Organizations generally prepare badli lists or a central pool of persons from which vacancies can be filled for manual jobs. Such persons are usually passed on to various departments, depending on internal requirements. If a person remains on such rolls for 240 days or more, he gets the status of a permanent employee as per the industrial
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disputes act and is therefore entitled to all relevant benefits, including provident fund, gratuity, retrenchment compensation. ii. JOB POSTING:Job posting is another way of hiring people from within. In this method, the organization publicises job openings on bulletin boards, electronic media and similar outlets. One of the important advantages of this method is that it offers a chance to highly qualified applicants working within the company to look for growth opportunities within the company without looking for greener pastures outside. iii. EMPLOYEE REFERRALS:Employee referral means using personal contacts to locate job opportunities. It is a recommendation from a current employee regarding a job applicant. Employees working in the organization, in this case, are encouraged to recommend the names of their friends working in other organizations for a possible vacancy in the near future. In fact, this has become a popular way of recruiting people in the highly competitive information technology industry nowadays. Companies offer rich rewards also to employees whose recommendations are accepted after the routine screening and examining process is over and job offers extended to the suggested candidates. 2) DIRECT METHODS:i. CAMPUS RECRUITMENT:It is a method of recruiting by visiting and participating in college campuses and their placement centres. Here the recruiters visit reputed educational institutions such as IITs, IIMs, colleges and universities with a view to pick up job aspirants having requisites technical or professional skills. Job seekers are provided information about the jobs and the recruiters, in turn, get a snapshot of job seekers through constant interchange of information with respective institutions. A preliminary screening is done within the campus and the shortlisted students are then subjected to the remainder of the selection process. In view of the growing demand for young managers, most reputed 15
organizations (such as Hindustan Lever Ltd, Proctor & Gamble, Citibank, State Bank of India, Tata and Birla group companies) visit IIMs and IITs regularly and even sponsor certain popular campus activities with a view to earn goodwill in the job market. Advantages of this method include: the placement centre helps locate applicants and provides resumes to organizations; applicants can be prescreened; applicants will not have to be lured away from a current job and lower salary expectations. On the negative front, campus recruiting means hiring people with little or no work experience. The organizations will have to offer some kind of training to the applicants, almost immediately after hiring. It demands careful advance planning, looking into the placement weeks of various institutions in different parts of the country. Further, campus recruiting can be costly for organizations situated in another city (airfare, boarding and lodging expenses of recruiters, site visit of applicants if allowed, etc.). 3) INDIRECT METHODS:i. ADVERTISEMENTS:These include advertisements in newspapers; trade, professional and technical journals; radio and television; etc. In recent times, this medium has become just as colourful, lively and imaginative as consumer advertising. The ads generally give a brief outline of the job responsibilities, compensation package, prospects in the organization, etc. This method is appropriate when (a) the organization wants a fairly good number of talented people who are geographically spread out and (b) the organization intends to reach a large target group. To apply for the advertised vacancies lets briefly examine the wide variety of alternatives available to a company as far as ads are concerned: ii. NEWSPAPERS ADS:Newspaper ads tend to only those who are actively seeking employment at that point of time, while some of the best candidates who are well paid and challenged by their current jobs may not be aware of such openings. As a result, the company may be bombarded 16
with applications from a large number of candidates who are marginally qualified for the job adding to its administrative burden. To maintain secrecy for various reasons (avoiding the rush, sending signals to competitors, cutting down expenses involved in responding to any individual who applies, etc.), large companies with a may also go in for blind-box ads in newspapers, especially for filling lower level positions. In a blind-box ad there is no identification of the advertising organization. Job aspirants are asked to respond to a post office box number or to an employment firm that is acting as an agent between the job seeker and the organization. iii. TELEVISION AND RADIO ADS:These ads are more likely to reach individuals who are not actively seeking employment; they are more likely to stand out distinctly, they help the organization to target the audience more selectively and they offer considerable scope fro designing ads creatively. However, these ads are expensive. Also, because the television or radio is imply seen or heard, potential candidates may have a tough time remembering the details, making application difficult. 4) THIRD PARTY METHODS:I. PRIVATE EMPLOYMENT SEARCH:A search firm is a private employment agency that maintains computerized lists of qualified applicants and supplies these to employers willing to hire people from the list for a fee. Firms like Arthur Anderson, Noble and Hewitt, ABC consultants, SB Billimoria, KPMG, Ferguson Associates offer specialized employment related services to corporate houses for a fee, especially for top and middle level executive vacancies. At the lower end, a number of search firms operate providing multifarious services to both recruiters and the recruitees. II. EMPLOYMENT EXCHANGES:-
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As a statutory requirement, companies are also expected to notify (wherever the employment exchanges act, 1959, applies) their vacancies through the respective employment exchanges, created all over India for helping unemployed youth, displaced persons, ex-military personnel, physically handicapped, etc. It covers all establishment in public sector and nonagricultural establishments employing 25 or more workers in the private sector. III. GATE HIRING AND CONTRACTORS:Gate hiring (where job seekers, generally blue collar employees, present themselves at eh factory gate and offer their services on a daily basis), hiring through contractors, recruiting through word-ofmouth publicity are still in use despite the many possibilities for their misuse in the small scale sector in India.
CENTRALISED VS. DECENTRALISED RECRUITMENT:Recruitment practices vary from one organization to another. Some organisatior like commercial banks resort to centralized recruitment while some organizations like the Indian railways (for group III and group IV positions) resort to decentralize recruitment practices. Personnel department at the central office performs all the functions of recruitment in case of centralized recruitment and personnel departments at unit level/zonal level perform all the functions of recruitment concerning to the jobs of the respective unit or zone.
MERITS OF CENTRALISED RECRUITMENT:I. Average cost of recruitment per candidate/unit should be relatively less due to economies of scale. II. It would have more expertise available to it. III. It can ensure broad uniformity among human resources of various units/zones in respect of education, skill, knowledge, talent etc. IV. It would generally be above malpractices, abuse of powers, favouritism, bias etc.
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V. It would facilitate interchangeability of staff among various units/zones. VI. It enables the line managers of various units and zones to concentrate on their operational activities by relieving them form the recruitment functions. VII. It ensures the most effective and suitable placement to candidates. VIII. It enables the organization to have centralized selection procedure, promotional and transfer procedure etc. IX. It enables centralized training programmes which further brings uniformity and minimizes average cost of staff. Despite these advantages of centralized recruitment some organizations resort to decentralized recruitment for the following reasons:
MERITS OF DECENTRALISED RECRUITMENT:I. The unit concerned concentrates only on those sources/places where it normally gets the suitable candidates. As such the cost of recruitment would be relatively less. II. The unit gets most suitable candidates as it is well aware of the recruitments of the jobs regarding cultural, traditional, family background aspects, local factors, social factors etc. III. Units can recruit candidates as and when they are required without any delay. IV. The units would enjoy freedom in finding out, developing the sources, in selecting and employing the techniques to stimulate the candidates. V. The unit would relatively enjoy advantage about the availability of information, control and feedback and various functions/processes of recruitment. VI. The unit would enjoy better familiarity and control over the employees it to recruit rather than on employees selected by the central recruitment agency. In the system of recruitment would suffer from their own demerits. Hence, management has to weigh both the merits and demerits of each system before they take final decision about centralizing or decentralizing the recruitment.
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RECRUITMENT TECHNIQUES:Recruitment techniques are the means or media by which management contracts prospective employees or provide necessary information or exchanges ideas or stimulate them to apply for jobs. Management uses different types of techniques to stimulate internal and external candidates. Techniques useful to stimulate internal candidates are: i. ii. iii. iv. v. i. Promotions; and Transfers; Techniques useful to stimulate external candidates; Present employees; Scouting; Advertising. PROMOTIONS:Most of the internal candidates would be stimulated to take up higher responsibilities and express their willingness to be engaged in the higher level jobs if management gives them the assurance that they will be promoted to the next higher level. ii. TRANSFERS:Employees will be stimulated to work in the new sections or places if management wishes to transfer them to the places of their choice. iii. RECOMMENDATIONS OF THE PRESENT EMPLOYEES:Management can contact, persuade the outsiders to apply for job in the organization through the recommendations to the candidates by the present employees, trade union leaders etc. iv. SCOUTING:Scouting means sending the representation of the organizations to various sources of recruitment with a view to persuading or stimulating the candidates to apply for jobs. The representatives provide
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information about the company and exchange information and ideas and clarify the doubts of the candidates. v. ADVERTISING:Advertising is a widely accepted technique of recruitment though it mostly provides one way communication. It provides the candidates in different sources, the information about the job and company and stimulates them to apply for jobs. It includes advertising through different media like newspapers, magazines of all kinds, radio, television etc. The techniques of advertising should aim at: (a) Attracting attention of the prospective candidates; (b) Creating and maintaining interest; (c) Stimulating action by the candidates. Management in order to achieve these objectives of advertising has to: I. Analyze job requirements; II. Decide who does what; III. Write the copy; IV. Design the advertisement; V. Plan and select the media; and VI. Evaluate response. The management after selecting the recruitment techniques has to decide upon the type of appeal in order to make the recruitment efforts effective.
THE PROBLEM OF THE SONS OF THE SOIL:A controversy has arisen in recent years over giving preference in recruitment to Sons of the Soil. In this connection the national commission on labour has observed: The solution has to be sought in terms of the primacy of common citizenship, geographical mobility and economic feasibility of locating industrial units, on the one hand, and local aspiration on the other. It has suggested that: a. Young persons from families whose lands are acquired for industrial use should be provided training opportunities for employment in jobs which are likely to be created in new units set up on these lands.
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b. While recruiting unskilled employees, first preference should be given to persons displaced from the areas required for the projects. The next to be preferred should be those who have been living in the same vicinity. c. In the case of middle level technicians whose recruitment has to be on an all-India basis, a member of state public service commission should be associated in making selection in addition to the state government official on the board of directors. d. The selection of persons to posts in lower scales should not be left entirely to the head of the unit. It should be made through a recruitment committee, with a nominee of the government of the state in which the unit is located. e. Apart from the report sent to the concerned ministry at the centre, the undertaking should send a statement to the state government at regular intervals, preferably every quarter, about latest employment and recruitment position. Although the commission has suggested these steps for employment in the public sector, it is of the opinion that they should apply equally to recruitment in the private sector, though the mechanism to regulate this recruitment would necessarily differ from that in the public sector. In India recruitment of industrial labour, traditional methods (casual or badli workers on lists maintained by the factory; the use of jobbers, sardars, mukadams, etc., and contract labour) are still used for getting labour in textile industry, for building and construction industry, digging of canals, building of roads and dams, etc. Besides these, large industrial complexes have developed a more committed labour force. For supplying skilled operators there are a number of crafts training schools (industrial training institutes; advanced vocational training institutes at Mumbai; Calcutta, Hyderabad, Kanpur, Ludhiana and Chennai; seven craft instructors training schools; and an institute for training of foremen at Bangalore).
RECRUITMENT PRACTICES IN INDIA:-
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The different sources for recruitment in India have been classified thus: i. ii. iii. iv. v. vi. vii. Within the organization; Badli or temporary workers; Employment agencies; Casual callers; Applicant introduced by friends and relatives in the organization; Advertisements; and Labour contractors. According to a survey of public and private sector employers by Prof. Basavaraj, the following methods were used to recruit employees: A. In the public sector (steel units), the major sources of recruitment in order of preference are: I. Casual callers or employment seekers; II. Newspaper advertisements; III. Scheduled tribes and scheduled castes; IV. Employment exchanges; V. Other public undertakings; VI. Internal advertisement; VII. Displaced persons; VIII. Relative and friends; IX. Employee recommendations; and X. Institutions. In the public sector (heavy engineering), the sources for non-supervisory staff are: i. ii. iii. iv. v. vi. vii. Employment exchanges; External advertisement; Internal advertisements; Central training institute; Introduction by the liaison officer of a corporation; Deputation personnel; and Transfers from other public undertakings. formulated, were not institutionalized in character. In some
B. In the private sector, the survey disclosed that the procedures, though organizations, preference was given to sons and relatives of 23
employees and to local people. In order of preference, the major sources are, I. Advertisements; II. Employment exchanges; III. Relatives and friends; IV. Casual callers; and V. Employee recommendations.
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SECTION - II SELECTION INTRODUCTION OF SELECTION:MEANING & IMPORTANCE OF SELECTION:Selection is one of the most important of all functions in the management of personnel. Selection is more closely related to recruitment because both are concerned with processing individuals to place them in a job. Selection is next to recruitment. After identifying the sources of human resources, searching for prospective employees and stimulating them to apply for jobs in an organization, the management has to perform the function of selecting the right employees at the right time. Right man at the right job is the basic principle in selection. Selection is the process of collecting and evaluating information about an individual in order to extend an offer of employment. It is the process of logically choosing individuals who posses the necessary skills, abilities and personality to successfully fill specific jobs in the organization. Selection means a process by which the qualified personnel can be choosen from the applicants who have offered their services to the organization for employment. Thus selection process is negative function because it attempt to eliminate applicants, leaving the best to be selected. In the words of Dale Yodev, 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. In short, selection is the process of choosing a person suitable for the job out of several persons. The objective of the selection decision is to choose the individual who can most successfully perform the job from the pool of qualified candidates. The selection procedures are the system of functions and devices adopted in a given company to ascertain whether the candidates specification is matched with the job specification and requirements or not. The selection procedures cannot be effective until and unless: 1) Requirements of the job to be filled, have been clearly specified (job analysis, etc).
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2) Employee specifications (physical, mental, social, and behavioral, etc) have been clearly specified. 3) Candidates for screening have been attracted. Thus, the development of job analyses, human resource planning and recruitment are necessary prerequisites to the selection process. The breakdown in any of these processes can make even the best selection system ineffective.
DEFINITION OF SELECTION:To select mean to choose. Selection is the process of picking individuals who have relevant qualifications to fill jobs in an organization. The basic purpose is to choose the individual who can most successfully perform the job from the pool of qualified candidates.
PURPOSE OF SELECTION:The purpose of selection is to pick up the most suitable candidate who would meet the requirements of the job and the organization best, to find out which job applicant will be successful, if hired. To meet this goal, the company obtains and assesses information about the applicants in terms of age, qualifications, skills, experience, etc. the needs of the job are matched with the profile of candidates. The most suitable person is then picked up after eliminating the unsuitable applicants through successive stages of selection process. How well an employee is matched to a job is very important because it directly affects the amount and quality of the employees work. Any mismatch in this regard can cost an organization a great deal of money, time and trouble, especially, in terms of training and operating costs. In course of time the employee may find the job distasteful and leave in frustration. He may even circulate hot news and juicy bits of negative information about the company, causing incalculable harm in the long run. Effective selection, therefore, demands constant monitoring of the fit between person the job.
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IMPORTANCE OF SELECTION:The importance of selection may be judged from the following facts: 1) PROCUREMENT OF QUAILIFED AND SKILLED WORKERS:Scientific selection facilitates the procurement of well qualified and skilled workers in the organization. It is in the interest of the organization in order to maintain the supremacy over the other competitive firms. Selection of skilled personnel reduces the labour cost and increases the production. Selection of skilled personnel also facilitates the expansion in the size of the business. 2) REDUCE COST OF TRAINING AND DEVELOPMENT:Proper selection of candidates reduces the cost of training because qualified personnel have better grasping power. They can understand the technique of work better and in less time. Further, the organization can develop different training programmes for different persons on the basis of their individual differences, thus reducing the time and cost of training considerably. 3) ABSENCE OF PERSONNEL PROBLEM:Proper selection of personnel reduces personnel problems in the organization. Many problems like labour turnover, absenteeism and monotony shall not be experienced in their severity in the organization. Labour relation will be better because workers will be fully satisfied by the work. Skilled workers help the management to expand the business and to earn more profits and in turn management compensates, the workers with high wages, benefits etc.
ESSENTIALS OF SELECTION PROCEDURE:The selection process can be successful if the following requirements are satisfied: 1. Someone should have the authority to select. This authority comes from the employment requisition, as developed by an analysis of the work-load and work-force.
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2. There must be some standard of personnel with which a prospective employee may be compared, i.e. a comprehensive job description and job specification should be available beforehand. 3. There must be a sufficient number of applicants from whom the required number of employees may be selected.
SELECTION PROCEDURE
Selection procedure employs several methods of collecting information about the candidates qualification, experience, physical and mental ability, nature and behaviour, knowledge, aptitude and the like for judging whether a given applicant is or is not suitable for the job. Therefore, the selection procedure is not a single act but is essentially a series of methods or stages by which different types of information can be secured through various selection techniques. At each step, facts may come to light which are useful for comparison with the job requirement and employee specifications. Selection procedure is lengthy and time consuming particularly in the case of supervisory post. Following are the steps/ procedures of selection: 1) JOB ANALYSIS:Job analysis is the basis for selecting the right candidate. Every organization should finalize the job analysis, job description, job specification and employee specification before proceeding to the next step of selection. 2) APPLICATION FORM:Application Form is also known as application blank. The technique of application blank is traditional and widely accepted for securing information from the prospective candidates. Where application forms are use, the data become a part of the employees record. The information is generally required on the following items in the application forms: Personal background information, Educational information, Work experiences, salary, personal details, expected salary and allowances etc.
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3) PRELIMINARY INTERVIEW:Preliminary or initial interview is often held in case of at the gate candidate. This interview usually of short duration and is aimed at obtaining certain basic information with a view to identifying the obvious misfits or unqualified. Thus preliminary interview is useful as a process of eliminating the undesirable and unsuitable candidate. If the candidate seems to possess the basic minimum requirements for efficient job performance, he is given an application form for being filled out by him. 4) SCREENING APPLICATION FORM:Information given in the application form is used for selection purposes. The applicant who seems to be not fit for the job on the basis of information given in the application blank is rejected out rightly at this stage. The applicants who have not furnished the required information may also be rejected. Applications will not be accepted after the close date. After the close date of the recruitment, the Job Expert for the hiring department and Human Resources will screen the application forms for minimum education and qualification requirements. A recruitment date may be extended if there are no qualified candidates. Recruitments can also be open until the position is filled; in this situation, applicants are reviewed and interviewed on a regular basis until an eligible candidate can be selected and appointed to the available position. 5) WRITTEN TEST:The organization have to conduct written examination for the qualified candidates after they are screened on the basis of the application blanks so as to measure the candidates ability in arithmetical calculations, to know the candidates attitude towards job, to measure the candidates aptitude, reasoning, knowledge in various disciplines, general knowledge and English language. Intelligence test measures the individuals capacity or reasoning, verbal comprehension, numbers,
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vocabulary, word fluency etc. aptitude test measures individuals capacity or talent ability to learn a job if he is given adequate training. 6) FINAL INTERVIEWING:Final interview is usually followed by testing. This is the most essential step in the process of selection. In this step the interviewer matches the information obtained about the candidate through various means to the job requirements and to the information obtained through his own observation during the interview. The basic objective of the interview is to measure the applicant against the specific requirements of the job. Interview must be conducted in a friendly atmosphere and the candidate must be made to feel at ease. The interviewer should not ask unwarranted questions which make the candidate nervous. It being the two way communication, the interviewee should also be given a chance to ask questions if he so likes, about the job and the organization. 7) REFERENCE CHECKS:After completion of the final interview, the personnel department will engage in checking references. Candidates are required to give the name of reference in their application forms. These references may be from the individuals who are familiar with the candidates academic achievement or from the applicants previous employer, who is well versed with the applicants job performance, and sometime from coworkers. If reference is checked in the correct manner, a great deal can be learned about a person that an interview or tests cannot elicit. A good reference check used sincerely fetches useful and reliable information to the organization. 8) PHYSICAL EXAMINATION:The candidates who have crossed the above hurdles are required to go for the medical examination. This is very important because of a person of poor health cannot work competently and the investment in him may go waste. Thus, a thorough medical examination is essential. 30
9) SELECTION:If a candidate successfully overcomes all the obstacles or tests given he would be declared selected. A appointment letter will be given to him mentioning the terms of employment, pay scales, post on which selected etc.
SELECTION PROCEDURE
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SELECTION PROCESS IS PREFERABLE BECAUSE: It is easier for applicant because they can send their applications to a single centralized department/agency. It facilitates contacts with applicants because issues pertaining to employment can be cleared through one central location. It helps operating managers to concentrate on their operating responsibilities. This is helpful during peak operating period. It can provide for better selection because hiring is done by specialist trained in staffing techniques. The applicant is better assured of consideration for a greater variety of jobs. Hiring cost may be cut because duplication of efforts is minimized. With increased government regulations on the selection process, it is important that people who know about these rules handle a major part of the selection process.
SELECTION TECHNIQUES: How to choose selection techniques? Who administers selection techniques? Informing the candidates Different selection techniques HOW TO CHOOSE SELECTION TECHNIQUES?:Different types of positions require different kinds of selection techniques. Choosing the right techniques will help to recruit the best person for the position. The selection techniques to choose depend on the particular skills, attributes and knowledge required for the position. They must be able to match the selection method with the selection criteria that are most critical to the position. The selection techniques normally used are the interview along with a written application and referee reports. The interview's value is greatly increased when it is well structured, incorporates behaviour-based
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questions and is used in conjunction with other selection techniques. Descriptions of a range of selection techniques are provided below. It is not a good idea to make recruitment decisions based on the results of one selection method alone. Very often need to combine two or more techniques to assess a range of skills and qualities in candidates. For example, work samples are an excellent way to assess what a candidate is capable of (ie. their maximum performance), but they do not provide information on what the candidate does daily (ie. their typical performance). Reference checks must be used as well to obtain this information. What to consider when choosing: The seniority/level of position,

The degree to which managerial/leadership ability is critical to success, The degree to which technical competence is critical to success, The time and effort required to use the technique, in proportion to the risk of poor selection,
Available resources, The budget, The skills, knowledge and qualifications of assessors, Equity issues, ie. does the chosen technique directly or indirectly discriminate against EEO groups?
WHO ADMINISTERS SELECTION TECHNIQUES:The selection committee or a representative from the Human Resources Unit (HRU) can administer many of the techniques. However, others need to be administered by trained professionals. See the individual techniques for more information.
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INFORMING THE CANDIDATES:If it is decided to use selection techniques in addition to the interview, then this thing should reached to all the candidates and give them enough notice to make appropriate preparations. DIFFERENT SELECTION TECHNIQUES:1. Structured interview format. 2. Telephone interviews. 3. Work samples. 4. Peer assessment. 5. Assessment centres. 6. Psychometric testing. 7. Informal meetings. STRUCTURED INTERVIEW FORMAT:The structured interview format involves assessing the candidate's skills, attributes and behaviour through behaviour-based questions. Behaviour-based questions probe for specific examples of a candidate's behaviour in situations similar to those that will be found in the new job. Questions are typically worded to extract specific examples of what they have done in the past. Asking behavioural questions enables you to assess candidates more objectively, based on specifics rather than 'gut' feelings or personal impressions. The interview is also useful for assessing a candidate's presentation and communication skills, 'getting to know' candidates and assessing cultural 'fit' with the work area. Complementing the interview with other selection techniques such as skills tests, work sample tests, case studies, planning exercises, analysis and/or judgement exercises, presentations and team observations increases the likelihood of identifying the best person for the position. The interview is an artificial and formal environment that may not best show candidates as they behave in the work environment. Less formal opportunities for meeting and interacting with candidates and
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structured reference checking will provide further insight into a candidate's behaviour and performance. Usually the selection committee determines the questions to be asked in the interview. Questions should be determined based on the selection criteria and it is important to define what constitutes an acceptable answer prior to conducting interviews. An acceptable answer should include: An example of a specific work-related situation faced by the candidate. The candidate's action in response to the situation. The outcome of the candidate's action.
TELEPHONE INTERVIEWS (VIDEO/TELECONFERENCING):For positions that are likely to attract overseas candidates it may be necessary to conduct initial discussions via telephone or video. Telephone interviews are normally used to make a preliminary assessment of a candidate. However, caller should also meet the candidate face-to-face before making final recommendations. When conducting the interview, be aware that the applicant is relying on clear and specific verbal feedback in the absence of non-verbal cues. WORK SAMPLES:Work samples involve an individual or group of candidates completing exercises that they would be required to undertake as part of the position. For group tasks, candidates are placed in a situation in which the successful completion of a task requires interaction among the participants. In individual exercises, participants complete a task independently. The selection committee should determine acceptable responses or outcomes prior to administering any sort of work sample test. Examples of different work sample techniques and tips on how to use them are provided below:
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THE LEADERLESS GROUP DISCUSSION:This is a simple technique where a group of participants are asked to carry on a discussion about some topic for a specific period of time, eg. Performance issues, or internal/external alliances or relationships. Noone is appointed leader and assessors do not participate in the discussion, but remain free to observe and rate the performance of each participant. Skills and attributes such as leadership, coaching, customer service orientation, teamwork, building relationships, etc. can be evaluated. THE IN-TRAY TEST:This is an individual test designed to simulate important or regular tasks associated with the position. Different types of in-tray tests may be designed to correspond to the various requirements of the position, e.g. Writing a memo, researching information or analyzing data. At the conclusion of the exercise the candidate will have produced notes, memos, letters, etc., which constitute the record of his or her behaviour in completing the task. In-tray exercises permit direct observation of individual behaviour within the context of a job-relevant problem situation.
PLANING EXERCISES:These test the candidate's ability to prioritize, plan activities, schedule and allocate resources, and adapt to last minute changes. This allows assessors to evaluate a candidate's skills and attributes in planning and judgement. Exercises might involve providing the candidate with some information about a typical project and asking them to draft a project plan or schedule, determine a budget or allocate resources. ANALYSIS EXERCISES:These evaluate a candidate's aptitude in analysis and judgement. Candidates are provided with quantitative and qualitative data about a fictitious organization and asked to draw conclusions, make
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recommendations, assess the organisation's situation or improve matters such as productivity, customer relations, organisational structure and morale. LECTURES/PRESENTATIONS:These assess a candidate's communication skills and perhaps their expertise on a particular subject. A typical task might involve a candidate preparing and presenting to a selection committee, peers and/or postgraduate students. For example, for an academic position a lecture or presentation of research or teaching would be appropriate. COMPUTER EXERCISES:These demonstrate a candidate's computer skills using particular programs. Tasks might involve creating spreadsheets, data sorts, letters or diagrams, etc. TIPS ON USING WORK SAMPLES:Work samples are effective at predicting future behaviour. They are particularly useful if implemented as part of a two-phase selection process, ie. after the first interview when follow-up and probing are required, or alternatively, to weed out candidates prior to interview. Using work samples as a selection technique is usually more time consuming and resource intensive than conducting an interview, particularly if there are a lot of candidates. PEER ASSESSMENT:Peer assessment involves asking a candidate's colleagues to predict how the candidate will respond if placed in a particular work situation or role. Peers or colleagues usually provide different feedback than that offered by supervisors, as their perceptions are drawn from a different range of behavioural interactions. You must seek the candidate's approval before speaking to their peers or colleagues. Peer assessment is often used to predict future leadership and managerial success.
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TIPS ON USING PEER ASSESSMENT:It's a good idea to involve a range of people with different relationships to the candidate, for example someone who works with them in a team capacity, someone who has a supervisory relationship to them and someone who reports to them. Keep in mind that peers may assess their colleagues based on personal bias. ASSESSMENT CENTRES:The assessment centre is traditionally used for large scale or bulk recruitment exercises. Assessment centres vary in complexity and are typically conducted by trained consultants. They can be expensive and complex to administer and are usually more cost effective when recruiting large numbers of people. A typical assessment may run over the course of one or two days and involve trained assessors evaluating a number of candidates using a range of techniques such as interviews, written tests and individual and group exercises. Assessors assimilate evidence from candidate performance across all exercises and incorporate this into a final collective decision. PSYCHOMETRIC TESTING:Psychometric testing includes cognitive ability tests, objective
personality and interest inventories and leadership ability tests. Psychometric and ability tests can be administered to help with selection at all levels. Ability tests should always be based on key selection criteria and the results compared alongside the results of all other selection techniques used. Psychometric tests used in recruitment are usually those that indicate work preferences. They can also be used to assess how a candidate will operate in a team environment or to identify managerial or leadership qualities. Trained professionals should administer psychometric tests. TIPS ON USING PSYCHOMETRIC TESTING:Psychometric tests should be developed and administered by a properly qualified and accredited person. Psychometric tests can be
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expensive and time consuming to administer. They are not normally used as part of the selection process at the University, so you should always seek advice from the Human Resources Unit before deciding to use them. 7. INFORMAL MEETINGS:Informal meetings can be used as a way of observing a candidate's behaviour in a less formal environment, such as lunches or morning tea with staff or key stakeholders. TIPS ON USING INFORMAL MEETINGS:Informal meetings are probably best used as part of a two-phase selection process, after you have narrowed the field down to the last few candidates.
DIFFERENCE BETWEEN THE WORK SAMPLE METHOD AND ASSESSMENT CENTRE:WORK SAMPLE
Suitable for routine, repetitive jobs with visible outcomes. Takes a few minutes to test the applicant. Evaluated by one supervisor. Can be done on location where the applicant performs a small segment of the job. Usually completed on one applicant at a time.
ASSESSMENT CENTRE
Suitable for managerial jobs, the outcomes are not behaviourally observable. Takes days to conduct various exercise. Evaluated by a team of trained observers. Requires a separate facility. The centres are conducted for a variety of task segments (that may not be the real job) that may be included in the real job. Usually performed on groups of applicants at the same time.
NEW METHODS OF SELECTION:-
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a. 360 DEGREE SELECTION OR PARTICIPATIVE SELECTION:In this method subordinates participate in the selection of their coworkers and supervisors. The idea is that such participation will improve quality, increase support for the selected supervisors and coworkers and improve employee morale. For example for the selection of a sales manger, assistant sales manger will also take part in the selection process along with the hr manager. b. EMPLOYEE LEASING:The client company leases employees from a third party, not on temporary basis but on a full time basis and for long help. An interesting feature is that the client company need not perform personnel activities such as hiring compensation or record keeping. Employees working elsewhere are leased. They are not directly employed by the company where they are working. Employees not recruited by one client is sent to another.
SIGNIFICANCE OF SELECTION/BENEFITS OF SCIENTIFIC SELECTION:Selection is the process of picking candidates with requisite qualifications and competence to fill jobs in the organization. Selection of suitable candidates is a matter of special importance in personnel management. It is the starting point of the whole human resource management process. Inefficiency, low productivity, high wastages, industrial accidents, ineffective execution of training programmes, etc. are due to faulty selection of candidate. Unsuitable candidate becomes a permanent problem as long as he is in the organization. This is because he has no liking for the job, no interest and initiative in the job and finally, no capacity to handle the job independently. For progress and prosperity, a company needs a team of efficient,, loyal, capable and co-operative young workers and managers. Such team is available only when the selection is made systematically. Selection of unsuitable persons finally brings the future of a company in danger. Unsuitable employees
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become liability of a company. They create problems and remain as obstacles. This suggests the significance of scientific selection in personnel management. Selection acts as a foundation of the whole personnel management activity. It is like the foundation of a building which must be strong, stable and firm. A building will be always in danger when the foundation is not sound. Similarly, management of a business unit will be always difficult when the employees selected initially and thereafter are not of required qualities and qualifications. Professional managements attach special importance to selection of most suitable candidates as they prefer to avoid the entry of unsuitable candidates in their organizations. A. BENEFITS OF SCIENTIFIC SELECTION TO
EMPLOYER/MANAGEMENT:1. The objective of right man for the right job is achieved. 2. Stability to labour force as labour turnover is minimized. 3. Expenditure on frequent selection of candidates is avoided. 4. Scientific selection raises organizational efficiency and creates good image in the business world. 5. Unsuitable candidates are kept away from the organization. 6. Training provided to properly selected candidates gives promising results. B. BENEFITS OF SCIENTIFIC SELECTION TO EMPLOYEES:-
1. Job satisfaction and raising of morale of employees. 2. Self-development through promotions, training, etc. is possible. 3. Avoids frustration on the part of employees. 4. Higher salary due to promotions and career development. 5. High degree of satisfaction among the employees by letting them know that their capabilities are being properly utilized and that their talents are not wasted.
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SELECTION PRACTICES:The following throws light on how the global giants use selection testing as a basis for picking up the right candidates to fill up the vacancies arising internally: 1. SIEMENS INDIA:- It uses extensive psychometric instruments to evaluate short-listed candidates. The company uses occupational personality questionnaire to understand the candidates personal attributes and occupational testing to measure competencies. 2. LG ELECTRONICS INDIA:- LG Electronics uses 3 psychometric tests to measure a persons ability as a team player, to check personality types and to find a persons responsiveness and assertiveness. 3. ARTHUR ANDERSON:- while evaluating candidates, the company conducts critical behaviour interviewing which evaluates the suitability of the candidate for the position, largely based on his past experience and credentials 4. PEPSICO INDIA:- The Company uses India as a global recruitment resource. To select professionals for global careers with it, the company uses a competency- based interviewing technique that looks at the candidates abilities in terms of strategizing, lateral thinking, problem solving, managing the environment. This apart, Pepsi insists that to succeed in a global posting, these individuals possess strong functional knowledge and come from a cosmopolitan background. Source: Business Today, April 7-21 2004, pg 129.
BARRIERS TO EFFECTIVE SELECTION:The main objective of selection is to hire people having competence and commitment. This objective is often defeated because of certain barriers. The impediments which check effectiveness of selection are perception, fairness, validity, reliability, and pressure. 42
a) PERCEPTION:Our inability to understand others accurately is probably the most fundamental barrier to selecting right candidate. Selection demands an individual or a group to assess and compare the respective competencies of others, with the aim of choosing the right persons for the jobs. But our views are highly personalized. We all perceive the world differently. Our limited perceptual ability is obviously a stumbling block to the objective and rational selection of people. b) FAIRNESS:Fairness in selection requires that no individual should be discriminated against on the basis of religion, region, race or gender. But the low number of women and other less privileged sections of society in the middle and senior management positions and open discrimination on the basis of age in job advertisements and in the selection process would suggest that all the efforts to minimize inequity have not been very effective. c) VALIDITY:Validity, as explained earlier, is a test that helps predict job performance of an incumbent. A test that has been validated can differentiate between the employees who can perform well and those who will not. However, a validated test does not predict job success accurately. It can only increase possibility of success. d) RELIABILITY:A reliable method is one which will produce consistent results when repeated in similar situations. Like a validated test, a reliable test may fall to predict job performance with precision.
e) PRESSURE:Pressure is brought on the selectors by politicians, bureaucrats, relatives, friends, and peers to select particular candidate. Candidates selected because of compulsions are obviously not the right ones. 43
Appointments to public sector undertakings generally take place under such pressure. ROLE OF SELECTION:Selection is crucial for the organizations effectiveness for 2 reasons: 1) WORK PERFORMANCE:Performance of the organization is very important to the success of the company. So the organization always employs people who are well qualified and competent. 2) COST INCURRED:Cost incurred while selection process also plays an important role. This can be explained with an example: Pepsi went on a crash recruitment drive. Six people from the company took over Oberoi business center for six days. 3000 people who had responded to the advertisements earlier issued were scanned: people were asked to respond within 100hrs by fax. People selected for the interview were flown into the city. This e.g. just shows how expensive selection can be. Hence cost incurred is very important for the success of the selection process.
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SELECTION DECISIONS:-
SUCCESS FALSE NEGATIVE ERROR NEGATIVE TRUE NEGATIVE ERROR FAILURE PREDICTED FALSE POSITIVE ERROR SUCCESS PREDICTED TRUE POSITIVE ERROR
OUTCOMES OF THE SELECTION PROCESS

There are 4 outcomes of the selection decisions. 1) TRUE POSITIVE ERROR:True positive is when the company predicts success and the result is a success i.e. when they select the right employee for the right job. 2) TRUE NEGATIVE ERROR:True negative is when a company predicts failure and the result is a failure i.e. when they reject a candidate appropriately. 3) FALSE POSITIVE ERROR:This happens when a company predicts success and results in failure. That is when they select a wrong/ incompetent employee for a job. 4) FALSE NEGATIVE ERROR:This happens when a company predicts failure when the result could have been a success. That is when they an employee who is very competent due to wrong perceptions.
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Types of cost incurred due to wrong selection decision: 1) Cost of selection. 2) Cost of training. 3) Cost of re-employment.
SELECTION IN INDIA:Conditions of labour market largely determine the selection process. We have a strange paradox in our country. On one hand there is large scale unemployment and on the other hand there is shortage of skilled labour. At one place we have no vacancy boards and at other places we have wanted employees boards. Unemployment is more among people who do not have specific skills. Corruption and influence is used in hiring such employees. Selection is therefore not systematic and at times bizarre in India.
CONCLUSION:We have tried to give our best to the project. We have incorporated all the relevant HUMAN RESOURCES MANAGEMENT principles which could be associated with our topic on Recruitment and Selection process.
We express our gratitude to our Respected Prof. We have dealt with this project very conscientiously and sincerely. We hope to keep doing such interesting projects in the future. Thank you.
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COMPANY VISITED ONGC COMPANY PROFILE:1947 1960:During the pre-independence period, the Assam Oil Company in the northeastern and Attack Oil company in northwestern part of the undivided India were the only oil companies producing oil in the country, with minimal exploration input. The major part of Indian sedimentary basins was deemed to be unfit for development of oil and gas resources. After independence, the national Government realized the importance oil and gas for rapid industrial development and its strategic role in defense. Consequently, while framing the Industrial Policy Statement of 1948, the development of petroleum industry in the country was considered to be of utmost necessity. Until 1955, private oil companies mainly carried out exploration of hydrocarbon resources of India. In Assam, the Assam Oil Company was producing oil at Digboi (discovered in 1889) and the Oil India Ltd. (a 50% joint venture between Government of India and Burmah Oil Company) was engaged in developing two newly discovered large fields Naharkatiya and Moran in Assam. In West Bengal, the Indo-Stanvac Petroleum project (a joint venture between Government of India and Standard Vacuum Oil Company of USA) was engaged in exploration work. The vast sedimentary tract in other parts of India and adjoining offshore remained largely unexplored. In 1955, Government of India decided to develop the oil and natural gas resources in the various regions of the country as part of the Public Sector development. With this objective, an Oil and Natural Gas Directorate was set up towards the end of 1955, as a subordinate office under the then Ministry of Natural Resources and Scientific Research. The department was constituted with a nucleus of geoscientists from the Geological survey of India. A delegation under the leadership of Mr. K D Malviya, the then Minister of Natural Resources, visited several European countries to study the status of oil industry in those countries and to facilitate the training of Indian professionals for exploring potential oil and gas reserves. Foreign experts from USA, West Germany, Romania and erstwhile U.S.S.R visited India and 47
helped the government with their expertise. Finally, the visiting Soviet experts drew up a detailed plan for geological and geophysical surveys and drilling operations to be carried out in the 2nd Five Year Plan (1956-57 to 1960-61). In April 1956, the Government of India adopted the Industrial Policy Resolution, which placed mineral oil industry among the schedule 'A' industries, the future development of which was to be the sole and exclusive responsibility of the state. Soon, after the formation of the Oil and Natural Gas Directorate, it became apparent that it would not be possible for the Directorate with its limited financial and administrative powers as subordinate office of the Government, to function efficiently. So in August, 1956, the Directorate was raised to the status of a commission with enhanced powers, although it continued to be under the government. In October 1959, the Commission was converted into a statutory body by an act of the Indian Parliament, which enhanced powers of the commission further. The main functions of the Oil and Natural Gas Commission subject to the provisions of the Act, were "to plan, promote, organize and implement programmes for development of Petroleum Resources and the production and sale of petroleum and petroleum products produced by it, and to perform such other functions as the Central Government may, from time to time, assign to it ". The act further outlined the activities and steps to be taken by ONGC in fulfilling its mandate. 1961 1990 Since its inception, ONGC has been instrumental in transforming the country's limited upstream sector into a large viable playing field, with its activities spread throughout India and significantly in overseas territories. In the inland areas, ONGC not only found new resources in Assam but also established new oil province in Cambay basin (Gujarat), while adding new petroliferous areas in the Assam-Arakan Fold Belt and East coast basins (both inland and offshore). ONGC went offshore in early 70's and discovered a giant oil field in the form of Bombay High, now known as Mumbai High. This discovery, along with subsequent discoveries of huge oil and gas fields in Western offshore changed the oil scenario of the country. Subsequently, over 5 billion tonnes of 48
hydrocarbons, which were present in the country, were discovered. The most important contribution of ONGC, however, is its self-reliance and development of core competence in E&P activities at a globally competitive level. After 1990 The liberalized economic policy, adopted by the Government of India in July 1991, sought to deregulate and de-license the core sectors (including petroleum sector) with partial disinvestments of government equity in Public Sector Undertakings and other measures. As a consequence thereof, ONGC was re-organized as a limited Company under the 1956 in February 1994. Company's Act,
After the conversion of business of the erstwhile Oil & Natural Gas Commission to that of Oil & Natural Gas Corporation Limited in 1993, the Government disinvested 2 per cent of its shares through competitive bidding. Subsequently, ONGC expanded its equity by another 2 per cent by offering shares to its employees. During March 1999, ONGC, Indian Oil Corporation (IOC) - a downstream giant and Gas Authority of India Limited (GAIL) - the only gas marketing company, agreed to have cross holding in each other's stock. This paved the way for long-term strategic alliances both for the domestic and overseas business opportunities in the energy value chain, amongst themselves. Consequent to this the Government sold off 10 per cent of its share holding in ONGC to IOC and 2.5 per cent to GAIL. With this, the Government holding in ONGC came down to 84.11 percent. In the year 2002-03, after taking over MRPL from the A V Birla Group, ONGC diversified into the downstream sector. ONGC will soon be entering into the retailing business. ONGC has also entered the global field through its subsidiary, ONGC Videsh Ltd. (OVL). ONGC has made major investments in Vietnam, Sakhalin and Sudan and earned its first hydrocarbon revenue from its investment in Vietnam.
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VISION:To a world class oil and gas company integrated in energy business with dominant Indian leadership and global presence.
MISSION: WORLD CLASS:a. Imbibe high standards of business ethics and organization values. b. Strive for customer delight through quality products and services. INTEGRATED IN ENERGY BUSINESS:a. Focus on domestic and international oil & gas exploration and production business opportunities. b. Create growth opportunities and maximize shareholder value. DOMINANT INDIAN LEADERSHIP:a. Retain dominant position in Indian petroleum sector and enhance Indias energy availability.
RECOGNITIONS AND RANKINGS:GLOBAL RANKINGS:1. ONGC topped among Indian corporates in forbes 400 global corporates (rank 133rd) and financial times global 500 (rank 326th), by market capitalization. 2. ONGC recognized as the best oil & gas company in Asia in 2004 global finance magazine, New York. 3. ONGC ranked 3rd among the 50 best Asian companies, business week. October 2005. ONGC tops the list of six Indian companies figured in the list. INDIAN RANKINGS:4. ONGC recognized as Indias most valuable company in terms of market capitalization, net worth and net profit, the economic times 500, July 2005, business today 500, business baron 5000 & business week.
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5. ONGC ranked as number one company as per profit in top-50 list of business worlds. The BW real 500, based on 2002-03 results (28th February, 2005). 6. ONGC recognized as the biggest wealth creator among all companies listed on Indian stock exchanges for the period 1999-2004. ONGC has created the highest-ever market value-added (MVA) of Rs. 24,258 crore and the fourth-highest economic value-added (EVA) of Rs. 596 crore, as assessed in the 5th business today-stern Stewart study (April 2003). 7. ONGC ranked as No. 1 manufacturer among 500 top Indian manufactures industry 2.0, 2004.
SERVICES:1. Drilling services, Mumbai. 2. Well services, Mumbai. 3. Geo-physical services, Dehradun. 4. Logging services, Baroda. 5. Engineering services, Mumbai. 6. Offshore logistics, Mumbai.
OFFSHORE ERA:a. 1962 Offshore exploration with improvised survey ship S. S. Mahindra. b. 5 structure recognized in Arabian sea 160 kms away Bombay high, Basein, Panna, Heera, & Tapti. c. 1970 an indigenously designed & built offshore platform was installed at Aliabet in Gulf of Cambay. d. Acquired offshore jack-up rig from Japan Sagar Samrat. e. 1994 transformed from commission to corporation and a Navratna.
ONGC SUBSIDIARIES:I. ONGC VIDESH LTD.:a. Second largest E&P company in India.
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b. Secured equity participation in 6 oil & gas assets in 5 countries-Sudan, Australia, Ivory coast, Egypt, Qatar. c. Mission is to contribute 60 mmtpa of equity oil and gas by 2025. d. Major stakes: 20% in Sakhalin-1 project of Russia (Invested Rs. 8330/- Cr) 25% in greater Nile project of Sudan (Invested Rs. 3430/- Cr) 45% in Vietnam Offshore gas project. 49% in Libya. e. 12 countries in which projects are going on Iran, Iraq, Myanmar, Syria, USA etc. II. MRPL:-
a. MRPL achieved excellent performance during 2004-05- profit up by 91.5% at Rs. 8797.59 million. b. Achieved distinction of being the 1st Indian refinery to produce automotive fuels conforming to EuroIII specifications. c. Will process own crude from western offshore and greater Nile property acquired in Sudan. d. ONGC will also market MRPL products, in addition to 5 mmtpa value added products that it produces & sells today.
JOINT VENTURES:A. Petronet LNG ltd. (PLL) [12.5%] ONGC+BPCL+IOCL+GAIL. B. Petronet Manglore-Hasan-Banglore Ltd. [23%] A pipeline project. C. Pawan Hans Helicopters Ltd. (PHHL) [21.5%] Provides helicopter services primarily to ONGC. D. Dahej SEZ limited (DSL) [23%] Objective of developing a special economic zone (SEZ) at Dahej.
52
THE RECENT HAPPENINGS:1) ONGC has ventured into: a. COAL BED METHANE (CBM) production in 2006-07. b. UNDERGROUND COAL GASIFICATION production in 2008-09. c. Crude & gas shipping. d. R&D in alternate fuels. 2) ONGC has received approval from the Govt. for marketing
of non-subsidized: a. LPG cooking gas. b. Kerosene. c. Aviation refueling sales.
PROFIT:ONGC is most valuable Indian corporate by market capitalization, net worth & net profit in ET 500, BT 500. (Rupees in million) Gross revenue Net profit 2003-04 329,270 86,644 2004-05 472,454 129,830
53
ORGANISATION CHART :-
54
PROCEDURE TO BE FOLLOWED FOR RECRUITMENT & SELECTION:Personnel Planning Job Analysis Employee Requisition
Job Vacancies
Recruitment Planning - Number - Types
Searching Activation Selling - Message - Media
Applicant Pool
Screening Potential Hires
Strategic Developme nt - Where - How - When
Evaluation To & Control selection Applicant Population
RECRUITMENT PROCESS
55
BIBLIOGRAPHY
1) PERSONNEL RELATIONS
--- DR. M. M. VERMA 2)
MANAGEMENT
AND
INDUSTRIAL
HUMAN
RESOURCE
AND
PERSONNEL MANAGEMENT
--- P. SUBBA RAO
3) MANAGEMENT
HUMAN
RESOURCE
--- DR. ANJALI GHANEKAR
4)
HUMAN
--- V. S. P. RAO
RESOURCE
MANAGEMENT (TEXT & CASES)
56
5) (TEXT & CASES)
PERSONNEL
MANAGEMENT
--- C. B. MAMORIA --- S. V. GHANEKAR
6) MANAGEMENT
HUMAN
--- N. G. KALE --- M. AHMED
RESOURCE
WEBSITES

www.hrmguide.com www.humanresource.com www.managementmentors.com www.ongcindia.com
57

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RECRUITMENT AND SELECTION

HUMAN RESOURCES MANAGEMENT

RECRUITMENT AND SELECTION

RECRUITMENT AND SELECTION

applicants) are encouraged to submit applications for the purpose of selection.

(viii) To seek out non-conventional development grounds of talent,

RECRUITMENT AND SELECTION

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Strategy Development Searching Screening Evaluation and control.

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EVALUATION AND CONTROL STAGE:-

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RECRUITMENT PRACTICES IN INDIA:-

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NEW METHODS OF SELECTION:-

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OUTCOMES OF THE SELECTION PROCESS

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of non-subsidized: a. LPG cooking gas. b. Kerosene. c. Aviation refueling sales.

RECRUITMENT AND SELECTION

Recruitment & Selection

Recruitment & Selection