Definition of Recruitment

According to Edwin Flippo, "Recruitment is the process of searching for prospective

employees and stimulating them to apply for jobs in the Organisation."

Need for Recruitment

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

 Vacancies: Due to promotions, transfers, retirement, termination, permanent

disability, death and labour turnover.
 Creation of new vacancies: Due to growth, expansion and diversification of business
activities of an enterprise.

Sources of Recruitment

The different sources of recruitment are classified into two categories, viz.,

 Internal: sources of recruitment are from within the organization.

 External: sources of recruitment are from outside the organization.

The internal sources of recruitment are:-

 Promotions: Promotion means to give a higher position, status, salary and

responsibility to the employee. So, the vacancy can be filled by promoting a suitable
candidate from the same organisation.
 Transfers: Transfer means a change in the place of employment without any change
in the position, status, salary and responsibility of the employee. So, the vacancy can
be filled by transferring a suitable candidate from the same organisation.
 Retired Managers: Sometimes, retired managers may be recalled for a short period.
This is done when the organisation cannot find a suitable candidate.
 Recall from Long Leave: The organisation may recall a manager who has gone on a
long leave. This is done when the organisation faces a problem which can only be
solved by that particular manager. After he solves the problem, his leave is extended.
 Bulletin Board – When the advertisement regarding a vacancy is displayed on
internal Notice Board

Merits of Internal Sources

The benefits / advantages / merits of using internal sources of recruitment:-

  It is time saving, economical, simple and reliable.
 There is no need of induction training because the candidate already knows
everything about the organisation, the work, the employee, the rules and regulations,
etc.
 It motivates the employees of work hard in order to get higher jobs in the same
organisation.
 It increases the morale of the employees and it improves the relations in the
organisation.
 It reduce executive turnover.
 It develops loyalty and a sense of responsibility.

Demerits of Internal Sources

The limitations / demerits of using internal sources of recruitment:-

 It prevents new blood from entering the organisation. New blood brings innovative
ideas, fresh thinking and dynamism into the organisation.
 It has limited scope because it is not possible to fill up all types of vacancies from
within the organisation.
 The position of the person who is promoted or transferred will be vacant.
 There may be bias or partiality in promoting or transferring persons from within the
organisation.
 Those who are not promoted will be unhappy.
 The right person may be promoted or transferred only if proper confidential reports of
all employees are maintained. This involves a lot of time, money and energy.

External sources of recruitment

 Management Consultants: Management consultants are used for selecting higher-

level staff. They act as a representative of the employer. They make all the necessary
arrangements for recruitment and selection. In return for their services, they take a
service charge or commission.
 Public Advertisements: The Personnel department of a company advertises the
vacancy in newspapers, the internet, etc. This advertisement gives information about
the company, the job and the required qualities of the candidate. It invites applications
from suitable candidates. This source is the most popular source of recruitment. This
is because it gives a very wide choice. However, it is very costly and time consuming.
 Campus Recruitment: The organisation conducts interviews in the campuses of
Management institutes and Engineering Colleges. Final year students, who're soon to
get graduate, are interviewed. Suitable candidates are selected by the organisation
 based on their academic record, communication skills, intelligence, etc. This source is
used for recruiting qualified, trained but inexperienced candidates.

Advantages of External Sources

The benefits / merits / advantages of using external sources of recruitment:-

 It encourages young blood with new ideas to enter the organisation.

 It offers wide scope for selection. This is because a large number of suitable
candidates will come for the selection process.
 There are less chances of bias or partiality.
 Here there is no need to maintain confidential records.

Limitations of External Sources

The demerits / limitations of using external sources of recruitment:-

 It is very costly. This is because advertisements, test, medical examination etc., has to
be conducted.
 It is very time consuming. This is because the selection process is very lengthy.
 It may not develop loyalty among the existing managers.
 The existing managers may leave the organisation if outsiders are given higher post.

Process of Recruitment

Following are the important steps in the process of Recruitment

 Step – 1 - Job Analysis: The Personnel department first does job analysis. It is a
process of collecting, analyzing information about the job (Job Description) and
qualities required for doing the job (Job Specification).
 Step – 2 - Determining the Sources of Manpower: After this, they search for all
possible sources of manpower. Advertising in leading newspapers and on the internet
is one of the best sources of manpower, due to a wide choice.
 Step – 3 - Advertising the Vacancies: The Personnel department advertises the
vacancies. The advertisement should contain detailed information about the job, the
required qualities of the candidates, the company, etc. All suitable candidates are
asked to submit their applications to the company before a particular date.

Selection
Selection is a negative process of choosing best potential out of good lot as per the need and
requirement job under a set of resource constraints

Process of Selection

Reception – This is the First step of the selection Process. In this step the candidate go to the
reception and there itself the required information about the job is asked about. Information
regarding the exactness of venue, the person concerned and the basic details regarding the job
is given. At the reception observation or recording facility is also there on the basis of which
the basic behavior or characteristics of candidate is judged.

Preliminary Interview – In this step the basic round of interview is conducted to weed out
the undesirable candidate. This is the first round or preliminary round of the selection
process.

Applications – It includes Examining the Applications and Sending Application Blanks.

 Examining the Applications: The Personnel department starts receiving applications.

They examine these applications in detail. The candidates who are not qualified for
the job, incomplete applications, applications received late, etc., are rejected.
 Sending Application Blanks : The remaining candidates are sent "Application
Blanks". An application blank is a "fact-finder". It collects information about the
candidate's background, education, training, experience, reference, etc. The candidates
have to fill up the application blanks and send it back to the organisation before a
particular date. Photographs, copies of certificates, etc., should also be sent along with
the application blank.

Written Test- After receiving the fully filled application blanks, the Personnel department
examines them. Incomplete applications, applications received late, etc. are rejected. The
remaining candidates are sent call letters for "Written Tests". It is held to test the
performance, aptitude, interest, intelligence, personality, etc. These tests are conducted by
phycologists and educationists. They may be a descriptive or objective test. The candidates
who are successful in these tests are given call letters for the interview.

Interview- An interview is a verbal and visual interaction between two or more persons, for a
particular purpose. An interview is an oral examination of candidates. The main purpose of
an interview is to match candidates with jobs. There are many types of interviews, e.g. Group
interview, Individual interview, Panel interview, Stress interview, etc.

Reference Check- After the interview, the Personnel department checks the references of the
successful candidates. These references are contacted personally or by telephone or by letter,
and they are asked their opinion about the candidate. The main purpose of a reference check
is to collect information about the past performance of the candidate in order to judge his
future performance. The accuracy of the information given by the candidate can also be
checked.

Medical Examination- After the reference check, the candidates have to go through a
medical examination. This is done to find out whether, the candidate is physically and
mentally fit to do the job.

Final Selection, Placement and Induction - The candidates who are successful in the
medical examination are issued appointment letters, and they are asked to join the
organisation on a particular date. On the joining date, the candidate is properly placed and
inducted.

Selection Test

Intelligence test : Intelligence test is useful for judging the intelligence of a candidate.
According to the industrial psychologist, "General intelligence is the capacity of a person for
comprehension and logical reasoning.". Fortunately for them, two French psychologists.
Simon and Binet had developed in 1916 suitable Intelligence Tests to measure general
intelligence. According to these tests, intelligence of a person or his intelligence quotient
(I.Q.) can be measured by his performance in the test.

Vocational aptitude test : Vocational aptitude has been defined as "the capacity or latent
ability of an individual to learn a job, given the necessary training." It has been claimed that
vocational aptitude is as important and perhaps more important than general intelligence for
success on a job. It is, therefore necessary to ascertain the vocational aptitude of a candidate
before final selection.

Analytical test : For the purpose of analytical tests, a job is first analyzed in terms of such
qualities as speed, dexterity, observation, etc. Terms are then devised to measure the degree
to which a candidate possesses these qualities. Dr. Munsterberg, an industrial psychologist in
the US, had first devised such tests for the selection of telephone operators for the American
Telephone and Telegraph Company. He had also devised similar tests for the selection of
inspectors for inspection of ball bearings for an American bicycle manufacturer. These tests
had produced satisfactory results.

Personality test : Personnel managers have come across many individuals with the necessary
intelligence and the vocational aptitude, and yet did not prove successful in the jobs for which
they are selected. Industrial psychologists felt that they might not have a suitable personality
or temperament and began to develop tests to measure personality traits. Protective test is one
such test. Its essential feature is that it induces a candidate to reveal his inner or real
personality.
Polygraph Test – This test is also known as lie detector test. Based on movement of pupils,
Blood Pressure, Movement of Hairs, Skin Sensitivity etc it is accessed that whether the
person is telling true or not.

Graphology Test – Test based on handwriting

Advantages of Selection Tests in Selection Process

Following are the important advantage of selection test in selection process

 Objective comparison of candidates possible.

 Incompetent candidates are eliminated.
 Suitable candidates are given proper placement.
 Right man to the right job is achieved.
 Achievements of the candidates are verified.
 Compatibility of the candidate can be found out.
 Mental qualities of candidates are evaluated.
 Overall ability of the candidates is measured.
 Application of knowledge is found out.