PGDM (AICTE)

RECRUITMENT
SELECTION &
RETENTION
MANAGEMENT 1
 UNIT -3
• Sources of Recruitment
• Advantages and Disadvantages of
Internal and External Sources of
Recruitment
• Methods of Recruitment
• Recruitment Practices in India
• Evaluation and Benchmarking of
Recruitment in an Organization
2
SOURCES OF RECRUITMENT
There are two sources of recruitment.
They are:
• Internal sources of recruitment.
• External sources of recruitment.

3
 INTERNAL SOURCES OF
RECRUITMENT

• Hiring acquaintances and

relatives/dependents of existing
employees.

• By promotion and transfer of existing

employees

• From employees on leave, long

courses deputations or on lean
4
 INTERNAL SOURCES OF
RECRUITMENT
• From those who left the organization
for want of suitable
vacancies/promotion changes.

• Separated by resignation or on lay

offs, etc.

• From trade unions. In US, trade

unions hire the entire needs of
unskilled/semiskilled hands.
5
 EXTERNAL SOURCES OF
RECRUITMENT
External sources of recruitment
are the following:

• New entrants in labor markets as

fresher from schools and
colleges

• Educated unemployed due to

lack of opportunities elsewhere.
•. 6
 EXTERNAL SOURCES OF
RECRUITMENT
• Retired hands with experience and
health

• Persons wishing to join the

organization from other
organizations/ competitiors for
improving their career prospects or
economic returns.
7
 EXTERNAL SOURCES OF
RECRUITMENT
• Unscheduled area/sectors like
-housewives,
-returnees from employment abroad
like NRIs

• disadvantaged sections of the society like

-ex-servicemen,
-minorities,
-handicapped persons etc.,

8
 ADVANTAGES OF RECRUITMENT
WITHIN THE ORGANISATION

• Good public relations exercise and

improve “good will” to the organization

• Improve morale and motivation of

employees.

9
 ADVANTAGES OF RECRUITMENT
WITHIN THE ORGANISATION
• Provide better career prospects and
promotional avenues to employees.

• Improve probability of better performance

since the candidate is in a better position
in knowing the objectives and
expectations of the organization

10
 DISADVANTAGES OF RECRUITMENT
WITHIN THE ORGANIZATION

• In-breeding prevents injection of

new “blood” in the organization.

• Option is limited in locating “right-

talents”

• Inhibits innovation and creativity

11
 DISADVANTAGES OF RECRUITMENT
WITHIN THE ORGANIZATION
• Develop a self-created “isolation”

• Encourages ‘seniority’ more that

‘merit’

• Higher probability of likes/dislikes viz

subjectivity in promotion.

12
ADVANTAGES OF EXTERNAL
SOURCES OF RECRUTIMENT
• Improve knowledge and skill of the
organization by up gradation from
external inputs

• Injection of “external blood” can

improve not only the knowledge but also
the philosophy, attitude and
management concepts in the
organization.

13
ADVANTAGES OF EXTERNAL
SOURCES OF RECRUTIMENT
• Improve and sustain competitive
advantage.

• No limitation on skill and

knowledge since the external area
is quite wide.

• Economical in the long run

14
 DISADVANTAGES OF EXTERNAL
SOURCES OF RECRUITMENT
• Is costly

• Cause “brain-drain” due to fear of

lack of growth potential

• Higher probability of employees turn-

over.

15
 DISADVANTAGES OF EXTERNAL
SOURCES OF RECRUITMENT
• Demoralization of existing employees
for alleged “double standard” and
favor shown towards new
recruitment from outside

• by offering better position (grade)

and pay over looking claim made by
own employees.
16
 METHODS OF
RECRUITMENT

Some of the popular methods of

recruitment are listed under the
classification of Internal and external
sources of recruitment.

17
 INTERNAL SOURCES SEARCH
METHOD
Method of internal search involve the
following:

• Posted on bulletin/notice boards of the

organization

• Through memos circulated among the

shop supervisors.

18
 INTERNAL SOURCES
SEARCH METHOD
• Advertised in the in-house employee
magazine/bulletins/handouts.

• Other methods like “word-of-mouth”

and/or “who-you-know” system.

• Perusal of records/P.C data bank

(unpublished)

19
 EXTERNAL SOURCES
SEARCH
External sources search consists of a
number of methods.

Dunn and Stephen have broadly classified

them under the following broad
categories:
 Direct methods
 Indirect methods
 Third party methods

20
 DIRECT METHODS OF
RECRUTIMENT
It consists of the following:

• Scouting

• Campus-recruitment

• Casual-callers/unsolicited applicants

21
 SCOUTING

 This is one of the oldest method .

 The personnel department send their

representatives to potential places of
recruitment and establish contact
with potential candidates seeking
employment.
.
22
 SCOUTING
 Preliminary screening/interviews are
arranged at selected places wherein the
candidates present themselves.

 In this effort local/consultants

agents/institutions/colleges play the
liaison work.

 Organizing conventions, indoctrination

seminars, fairs, etc are other means in
this method
23
 CAMPUS RECRUITMENT

 In this method firm representatives call on

potential/ colleges/institutes to establish

direct contact.

 In such cases “ placement cells”

established in such educational institutions
do the liaison work and coordination for
arranging the preliminary screening and
interviews.
. 24
 CAMPUS RECRUITMENT

• Sometime the firms directly contact

the director/faculty/professors for
recommending students with
outstanding performance for
employment

25
 CASUAL CALLERS
Casual callers and job seekers at the
factory and unsolicited applicants are
other sources of direct recruitment.

26
 Indirect methods
The following are the indirect
methods:
• Advertisement
• Employers trade associations/clubs
• Professional associations
• Reputed other firms

27
 ADVERTISEMENT
 It is a very popular method.

 Various media are used for advertisement

such as newspaper, journals, radio, TV
etc.,

 Senior posts are largely filled up through

advertisement when suitably experienced
and qualified persons are not available.
28
 THIRD PARTY METHODS
• Public employment agencies

• Private employment agencies

• Placement cells in schools and colleges

• Temporary help services

• Management consultants
29
 THIRD PARTY METHODS
• Employee referrals/recommendations

• Professional bodies/associations

• Computer data bank

• Voluntary organizations

• Trade unions
30
 PUBLIC EMPLOYMENT
AGENCIES
• In India these are called
employment Exchanges under the
control of central/state governments.

• It was designed to help job seekers

to find suitable employments.

31
 PUBLIC EMPLOYMENT
AGENCIES
• Registration with employment
agencies will provide certain
privileges to such persons like:
--priority in employment or
--receipt of “unemployed doles”
by the government.

32
 PRIVATE EMPLOYMENT
AGENCIES
 Private employment agencies do charge
fees either from potential employees, or
from employers or from both for their
services.

 The question arises then is, how these

private agencies compete with
government agencies who do not charge
fees.

33
 PRIVATE EMPLOYMENT
AGENCIES
 Obviously these agencies must do
something different from public
agencies to attract both employers
and job seekers.

 The major difference is the “image”.

Such good image is built up due to
the following three reasons:

34
 PRIVATE EMPLOYMENT
AGENCIES
1.They provide employment
opportunities for all categories of
employment including
-managers,
-top executives,
-professionals,
-engineers in addition to skilled and
unskilled labor.

35
 PRIVATE EMPLOYMENT
AGENCIES
2.Private agencies provide
comprehensive service like :
-advertisement,
-counseling,
-conducting interviews,
-preliminary screening,
-short listing candidates etc.,

3.Some such agencies provide guaranteed

performance by the candidates
recommended by them for period ranging
6 months to an year. 36
 PRIVATE EMPLOYMENT
AGENCIES
4.Some of the agencies become specialized
in certain categories of employment like
the following:
 security guards/personnel
 Clerical office/computer operators
 Managers/executive
 Engineers
 Accountants
 Salesman etc.,

37
 PLACEMENT CELLS FROM
COLLEGES/SCHOOLS
 This is mutually beneficial to the
employers as well as educational
institutions.

 They act as a single window for

employment coordination between
organization seeking recruitment and
institutions

38
TEMPRORARY HELP SERVICES
 Is provided by Agencies who provide
hands for jobs of temporary /short-term
period.

 This kind of service is extensively used

by organizations to tide over fluctuations
in personnel needs.

39
 TEMPRORARY HELP
SERVICES
 In India such services are commonly used
to employ unskilled/semi-skilled jobs like
-masons,
-construction workers,
-gardeners,
- plumbers and
-electricians.
 Mostly these are confined to civil work on
building bridges, roads and
loading/unloading workers.
40
 MANAGEMENT
CONSULTANT
 These consultants obtain job description
and job specification from such companies
and carry out extensive search through
advertisement and other means.

 They also carry out recruitment process up

to the point of short listing and send such
short listed names of potential candidates
to the company seeking to fill up their
vacancies.

41
 EMPLOYEE
REFERALS/RECOMENDATION
 Is the reference/recommendation
received from an existing employee
of the company.

 Existing employee has a stake in the

organization, therefore he cannot
normally afford to recommend
unsuitable and incompetent person.
42
 PROFESSIONAL
BODIES/ASSOCIATIONS
 It is often a practice for firms approaching
respective professional bodies/associations for
locating/recruiting suitable hands for engineering,
technical, scientific and managerial vacancies.

 Approach is made to members and officials of

national bodies like AIMA, Institution of
Engineers, computer society etc.,

43
 COMPUTER DATA BANK
SERVICES
 Some important organizations have built
up their own Data-Bank system viz
IRIS(IBM recruitment Information System)

 This is a computer-operated system inn

which data regarding all its employees are
entered in categories bad grade-wise.

44
 Information contained in the data-
bank is comprehensive enough to
include
educational qualifications,
training achievements,
posts held,
 experience gained,
biographical data,
 family background,

45
 aptitude,
personality factors,
potential qualities and
attributes, etc.,

46
 VOLUNTARY
ORGANIZATION
Certain voluntary organizations can
assist in recruitment. Examples are:
• schools for handicaps like deaf, dumb and
blind;
• churches;
• fraternity organizations and
• social clubs.

47
 TRADE UNIONS
 In certain industries unions play a
vital role in recruitment.
 In USA union has taken over the
function of recruitment of unskilled
and semi-skilled labor.
 There are “Hiring Halls” in USA
where union advice job seekers on
job opportunities.
48
RECRUITMENT PRACTICES IN
INDIA
Practices followed by various firms
recruitment vary in India based on
the type whether it is a government
,Public sector or a Private sector.

49
 RECRUITMENT IN GOVERNMENT
ORGANIZATIONS
 By and large in case of recruitment in
government organizations follow Public
Recruitment Agencies.

 Employment exchanges in recruiting lower

level from semi-skilled jobs.

50
 RECRUITMENT IN GOVERNMENT
ORGANIZATIONS
 Higher post jobs are advertised.

 Most of the jobs, off late are filled

through promotion from
- internal sources.
- through deputations from other
organizations.

51
 RECRUITMENT IN PUBLIC
SECTORS
Public sectors use the following
methods of recruitment given in their
hierarchical order of importance:
– Employment exchanges
– Advertisement
– Promotion and transfer from internal
sources.
– Deputation from external sources.

52
 RECRUITMENT IN PRIVATE
SECTORS
 Procedure and methods are not formalized
fully in private sectors.

 Each follow their own methods.

 Following methods are popular given in

the order of priorities:

– Advertisements
– Casual callers.

53
RECRUITMENT IN PRIVATE
SECTORS
– Relatives of current employees and their
recommendations

– Internal sources through promotions

and transfers.

– Employment exchanges

54
 EVALUATION OF
RECRUITMENT PROCESS
Keeping in view of the recruitment
objective in mind , evaluation might
include:
1. Return rate of applicants sent out.
2. Number of suitable candidates for
selection.
3. Retention and performance of the
candidates selected

55
4. Cost of the recruitment process.
5. Time lapsed data.
6. Comments on image projected

56
 EVALUATION OF
RECRUITMENT METHODS
The evaluation of recruitment might
include:
1. Number of initial enquiries received
which resulted in completed application
forms
2. Number of candidates at various stages
of the recruitment and selection
process, especially those shortlisted

57
3. Number of candidates recruited.

4. Number of candidates retained in the

organization after six months.

58
 EVALUATION AND BENCHMARKING OF
RECRUITMENT IN AN ORGANIZATION
 A firm should evaluate its recruitment process
along with all its other human resource
management activities.

 Collecting appropriate evaluation measures on

past recruiting efforts can help an organization to
predict the
 time and budget needed to fill future openings,
 identify the recruiting methods that yield the greatest
number or the best quality of candidates and
 evaluate the job performance of the individual
recruiters.

59
EVALUATION AND BENCHMARKING OF
RECRUITMENT IN AN ORGANIZATION
Benchmarking against similar firms can
also be informative.

The granddaddy of all recruiting

evaluation measures is cost per hire,
though speed of filling vacancies is also
an important measure.

The quality of hire can provide the

assessment of the quality of new
employees being recruited and hired.
60
CALCULATION OF QUALITY
OF HIRE
Formula: QH=(PR+HP+HR)/N
Where:
QH=quality of recruits hired
PR= average job performance ratings (20
items on scale ) of new hires (e.g. 4 on
a 5 point scale or 20 items x 4)
HP= percent of new hires promoted
within one year (such as 35%)

61
HR= percent of hires retained after one
year (e.g. 85 %)
N= number of indicators used
Therefore,
QH= (80+35+85)/3
= 200/3
= 66.6%

62