INT RODUCT ION

1.1 MEANING: RECRUIT MENT : Recruitment means to estimate the available

vacancies and to make suitable arrange ments for their selection and appointment. Recruit ment is understood as the process of searching for and obtaining applicants for the jobs, fro m a mong who m the right people can be selected. A for mal definition states, It is the process of finding and attracting capable applicants for the employme nt. The process begins when new recruits are sought and ends when their applicants are

sub mitted. The result is a pool of applicants from which ne w e mployees are selected. In this, the available vacancies are given wide publicity and suitable candidates are encouraged to sub mit applications so as to have a pool of eligible candi dates for scientific selection. In recruitment, For this infor mation different is collected such fro m as interested ne wspaper

candidates.

source

advertisement, e mployment e xchange s, internal promotion, etc.are used. In the recruitment, a pool of eligible and interested candidates is created for selection of most suit able candidates. Recruitment represents the first contact that a co mpany makes with potential e mployees Definition: According to EDWIN FLIPPO, Recr uitment is the process of

searching for prospect ive employees and st imulat ing them to apply for jobs in the organ izat ion.

1.2 Need for recruit ment: The need for recruitment ma y be due to the following reasons / situation: a) Vacancies due to pro motions, transf er, retirement, ter mination, per manent disability, death and labour turnover. b) Creation of new vacancies due to the growth, e xpansion and diversification of business activities of an enterprise. In addition, new va cancies are possible due to job specification. Purpose and importa nce of Recruitment:

1. Deter mine

the

present

and

future

requirements

of

the

organization on con junction with its personnel-planning and job analysis activities. 2. Increase the pool of job candidates at mini mu m cost. 3. Help increase the success rate of t he selection process by reducing the number of visibly under qualified or overqualified job applicants. 4. Help reduce the probability that job applicants, once recruited and selected, will leave the organization only after a short period of time. 5. Meet the organizations legal and social obligations regarding the co mposition of its work force. 6. Begin identifying and preparing potential job applicants who will be appropriate candidates. 7. Increase organizational and individual effectiveness in the short ter m and long ter m. 8. Evaluate the effectiveness of various recruiting techniques and sources for all types of job applicants.

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

Recruitment represents the first contact that a company makes with potential employees. It is through recruitment that many individuals will come to kno w a co mpany, and eventually decided whether the y wish to work for it. A well-planned and well- managed recruiting effort will result in high quality applicants, whereas, a haphazard and piecemeal efforts will result in me diocre ones. The net results of such unscientific recruitment are: (a) Low productivity of labor (b) High turnover (c) Excessive wastage of ra w materials (d) More accidents and corresponding loss to the organization (e) Inefficient working of the whole organization and finally (f) Ineffective executive of training and manage ment develop ment programs

1.3 RECRUIT MENT PROCESS Recruitment refers to the process of identifying and attracting job seekers so as to build a pool of qualified job applicants. The process co mprises five interrelated stages, viz, 1. Planning. 2. Strategy develop ment. 3. Searching. 4. Screening. 5. Evaluation and control. The ideal recruitment progra m is the one that attracts a relatively larger number of qualified applicants who will survive the screening process and accept positions with th e organization, when offered.

Recruitment progra mme s can miss th e ideal in many ways i.e. by failing to attract an adequate applicant pool, by under/over selling the organization or by inadequate screening applicants before they enter the selection process. Thus, to approach the ideal, individuals responsible for the recruitment process must kno w ho w many and what types of e mployees are needed, where and ho w to look for the individuals with the appropriate qualifications and interests, what inducement to use for various types of applicants groups, how to distinguish applicants who are qualified from tho se who have a reasonable chance of success and how to e valuate their work.

Recruitment Cost: Cost incurred to re cruit an e mployee. It includes three elemental costs  Cost of locating(searching for candidates through different sources)  Selecting(preliminary scrutiny, written tests, interview, etc)  Hiring (bringing and placing them in organization). Cost Centre: An organizational unit for which the unit manager is held responsible for the cost of the u nit only. The cost centre ma y be a departmental in that case, the cost department is been calculated. The cost centre ma y be one of the several products being manufactured within the department, in that case the focu s of attention is the product and the cost of the product is being calculated then.

1.5

Sources of Recruitment

SOURCES OF MANAGERIAL RECRUITMENT

INTERNAL SOURCES 1) Promotion 2) Transfers 3) Internal notification (Advertisement) 4) Retirement

EXTERNAL SOURCES 1) Campus recruitment 2) Press advertisement 3) Management consultancy service & private employment exchanges 4) Deputation of personnel or transfer From one enterprise to another

5) Recall 6) Former employees 7) Miscellaneous external sources

5) Management training schemes 6) Walk-ins, write-ins, talk-ins

The sources of recruit ment can be br oadly categorized into internal and external sources Internal Rec ruitme nt Internal recruitment seeks applicants for positions from within the co mpany. The various internal sources include  Promotions a nd T ransfers Pro motion is an effective means using job posting and personnel records. Job posting requires notifying vacant posi tions by

posting notices, circulating publications or announcing at staff meetings and inviting employees to ap ply. Personnel records help discover employees who are doing jobs below their educational qualifications or skill levels. Pro motions has many advantages like it is good public relations, who are builds morale, encourages th e

co mpetent

individuals

a mbitious,

improves

probability of good selection since infor mation on the individuals

performan ce is readily available, is cheaper than going outside to recruit, those chosen internally are familiar with the organization thus reducing the orientation time and energy and also acts as a training device for developing middle-level and top-level

managers. Ho wever, pro motions restrict the field of selection preventing fresh blood & ideas from e ntering the organization. It also leads to inbreeding in the organization. Transfers are also important in providing employees with a broad-based view of the organization, necessary for future promotions.  Emplo yee refe rralsEmployees can develop good prospects for their fami lies and friends by acquainting them with the advantages of a job with the co mpany, furnishing them with introduction and encouraging them to apply. This is a very effective mean s as many qualified people can be reached at a very lo w cost to the co mpany. The other

advantages are that the e mployees would bring only those referrals that they feel would be able to fit in the organization based on their own e xperience. The organization can be assured of the reliability and the character of the referrals. In this way, the organization can also fulfill social obligations and create goodwill.

 Former Emplo yeesThese include retired employees wh o are willing to work on a part-time basis, individuals who left work and are willing to come back for higher co mpensations. Even retrenched e mpl oyees are taken up once again. The advantage here is that the people are already known to the organization and there is no need to find out their past perfor mance and character. Also, there is no need

of an orientation programme for the m, since they are familiar with the organization.

 Dependents of deceased employeesUsually, banks follow this policy. If an e mployee dies, his / her spouse or son or daughter is recruited in their place. This is usually an effective way to fulfill social obligati on and create goodwill.

 Recalls: W hen manage ment faces a problem, which can be solved only by a manager who has proceeded on long leave, it may de decided to recall that persons after the problem is solved, his leave ma y be extended.

 Retireme nts: At ti mes, manage ment ma y not find suitable candidates in place of the one who had retired, after mer itorious service. Under the circumstan ces, manage ment ma y decide to call retired managers with ne w e xtension.

 Internal notification (advertise me nt): So meti me s, manage ment issues an internal notificati on for the benefit of existing employees. Most e mployees know fro m their own e xperience about the require ment of the job and what sort of person the company is looking for. Often employees have friends or acquaintances who meet these requ irements. Suitable persons are appointed at the vacant posts.

(II) External Rec ruitme nt External recruitment seeks applicants for positions from sources outside the company. They have

outnu mbered the internal methods. The various external sources include

Professional or T rade Associations : Many associations provide placemen t service to its me mbers. It consists of co mpiling job seekers lists and providing access to me mbers during regional or national conventions. Al so, the

publications of these associations carry classified advertisements fro m e mployers interested in recruiting their me mbers. These are particularly useful for attracting highly educated, experienced or skilled personnel. Also, the recruiters can zero on in specific job seekers, especially for hard-to-fill technical posts.  Ad ve rtiseme nts :It is a popular method of seeking recruits, as many recruiters prefer advertisements because of th eir wide reach. W ant ads describe the job benefits, identify the e mployer and tell those interested how to apply. Ne wspaper is the most co mmon mediu m but for highly specialized recruits, advertisements may be placed in professional or business journals. Advertise ments must contain proper information like the job content, working conditions, location of job, co mpensation

including fringe benefits, job specifications, growth aspects, etc. The advertisement has to sell the idea that the co mpany and job are perfect for the candidate.Recruit ment advertise ments can also serve as corporate advertisement s to build company i mage. It also cost effective.  Emplo yme nt Exc ha nges:-

Employment Exchanges have been set up all over the country in deference to the provision of of the Employment Act, Exchanges The Act

(Co mpulsory

Notification

Vacancies)

1959.

applies to all industrial establishments having 25 workers or more each. The Act requires all the industrial establishment s to notify the vacancies before they are filled. The ma jor functions of the exchanges are to increase the pool of possible applicants and to do the preliminary screening. Thus, e mployment e xchanges act as a link between the employers and the prospective employees. These offices are particularly useful to in recruiting blue-collar, white collar and technical workers.  Campus Recruitme nts:Colleges, universities, research laboratories, sports fields and institutes are fertile ground for recruiters, particularly the

institutes. Campus Recruit ment is going global with companies like HLL, Citibank, HCL-HP, ANZ Grindlays, L&T, Motorola and Reliance looking for global markets. So me co mpanies recruit a given number of candidates fro m th ese institutes every year. Ca mpus recruitment is so much soug ht after that each college; university department or institute will have a placement officer to handle recruitment functions. Ho weve r, it is often an expensive process, even if recruiting process produces job offers an d acceptances eventually. A ma jority leave the organi zation within the first five years of their e mploymen t. Yet, it is a ma jor source of recruitment for prestigious compani es.  Walk-ins, Write-ins a nd T alk-insThe most co mmon and least e xpensive approach for candidates is direct applications, in which job seekers sub mit unsolicited application letters or resumes. Direct applications can also provide a pool of potential employees to meet future needs. Fro m e mployees viewpoint, walk-ins are preferable as they are free 9

fro m the hassles associated with other methods of recruit ment. W hile direct applications are particularly effective in filling entrylevel and unskilled vacancies, so me o rganizations co mpile pools of potential employees fro m direct applications for skilled

positions. Write- ins are those who se nd written enquiries. These jobseekers are asked to co mplete application forms for further processing. Talk-ins involves the job aspirants meeting the recruiter (on an appropriated date) for detailed talks. No

application is required to be submitted to the recruiter.  Contractors:They are used to recruit casual workers. The names of the workers are not entered in the co mpany records and, to this extent; difficulties experienced in maintaining permanent workers are avoided.  Consulta nts:They are in the profession for recruiting and selecting managerial and executive personnel. and They lend are useful as they the have hiring

nationwide

contacts

professionalism to

process. They also keep prospective e mployer and e mployee anonymous. Ho wever, the cost can be a deterrent factor.  Head Hunters:They are useful in specialized and skilled candidate working in a particular co mpany. An agent is sent to represent the recruiting co mpany and offer is made to the candidate. This is a useful source when both the co mpanies involved are in the same field, and the e mployee is reluctant to take the offer since he fears, that his co mpany is testing his loyalty.  Radio, Television a nd Inte rnet:Radio and television are used to reach certain types of job applicants such as skilled workers. Radio and television are used 10

but sparingly, and that too, by govern ment depart ment s only. Co mpanies in the private sector are hesitant to use the media because of high costs and also because they fear that such advertising will make the co mpanies look desperate and damage their conservative image. Ho wever, t here is nothing inherently desperate about using radio and television. It depends upon what is said and how it is delivered. Internet is beco ming a popular option for recruitment today. There are specialized sites like naukri.com. Also, websites of co mpani es have a separate section wherein; aspirants can submit their resu mes and applications. This provides a wider reach.  Competitors:This method is popularly known as p oaching or raiding which involves identifying the right people in rival companies, offering the m better ter ms and luring them a way. For instance, several executives of HMT left to join Titan W atch Company. There are legal and ethical issues involved in raiding rival firms fo r

potential candidates. From the legal point of view, an e mployee is expected to join a ne w organization only after obtaining a no objection certificate fro m his/ her p resent e mployer. Violating this requirement shall bind the employee to pay a fe w months salary to his/ her present e mployer a s a punish ment. Ho wever, there are man y ethical issues attached to it.  Merge rs and Acq uisitions:W hen organizations combine, they have a pool of employees, out of who m so me ma y not be necessary any longer. As a result, the new organization has, in effect, a pool of qualified job applicants. As a result, ne w jobs may be created. Both ne w and old jobs may be readily staffed by drawing the be st-qualified applicants from this employee pool. This method facilitates the immediate

11

imple mentation of an organizations st rategic plan. It enables an organization to pursue a business plan, Howe ver, the need to displace employees and to integrate a large number of the m rather quickly into a new organization means that the personnelplanning and selection process becomes critical more than ever. Eva luation of External Rec ruit ment: External sources of recruitment have b oth merits and de merits. T he merits are:The organization will have the benefit of ne w skill s, new talents and new e xperiences, if people are hired fro m e xternal sources. The manage ment will be able to fulfill reservation requirements in favor of the disadvantaged sections of the society. Scope for resent ment, heartburn and jealousy can be avoided by recruiting from outside.

T he demerits are Better motivation and increased morale associated with

pro moting own e mployees re lost to the organization.  External recruitment is costly.  If recruitment and selection processes are not properly carried out, chances of right candidates being reje cted and wron g applicants being selected occur.  High training time is associated with external recruitment.

INT ERVIEW: Interview is formal, in-depth conversation conducted to evaluate the applicants acceptability. It is considered to be excellent selection

12

device. It is face-to-face exchange of view, ideas and opinion between the candidates and interviewers. Basically, interview is nothing but an oral exa mination of candidates. Interview can be adapted to unskilled, skilled, managerial and profession employees.

Objectives of interview:Interview has at least three objectives and they are a follows: 1) Helps obtain additional information from the applicants 2) Facilitates giving general information to the applicants such as co mpany policies, job, products manuf actured and the like 3) Helps build the companys i mage a mon g the applicants

Reference Check:- Many e mployers request na mes, addresses, and telephone numbers of references f or the purpose of verifying information and perhaps, gaining additional background information on an applicant. Although listed on the application form, references are not usually checked until an applicant has successfully reached the fourth stage of a sequential selection process. W hen the labour market is very tight, organizations someti mes hire applicants before checking references. Previous e mployers, known as public figures, university professors, neighbors or friends can act as refere nces. Previous e mployers are preferable because they are already a ware of the applicants performan ce. But, the proble m with this reference is the tendency on the part of the previous employers to over-rate the applicants performan ce just to get rid of the person. Organizations normally seek letters of reference or telephone

references. The latter is advantageous because of its accuracy and low cost. The telephone reference also has the advantage of soliciting immediate, relatively candid co mments and attitude can so meti mes be inferred fro m hesitations and inflections in speech.

13

It may be stated that the information gathered through references hardly influence selection decisions. The reasons are obvious: 1. The candidate approaches only those persons who would speak well about him or her. 2. People may write favorably about the candidate i n order to get rid of him or her. 3. People may not like to divulge the truth about a candidate, lest it might da mage or ruin his/her career.

Cost per Hire defined: - Cost per hire in an organization is the sum of total direct and indirect costs incurred on each new hire starting from sourcing the candidate and ending with placing the candidate on live production within a given time frame.

Direct costs (Per Hire): A cost item that can be identified with or traced to a cost centre in an economically feasible manner.Direct costs are those costs that could be allocated direct to each new hire. Some of these costs are listed below

1. Recruiter costs 2. Employee Relocation expenses 3. Referral costs 4.Agency costs (background checks etc)

Indirect costs: All those costs other than Direct costs which cannot be allocated per hire basis. These costs have to be allocated on a pro-rata basis per each hire. Some of the indirect costs are listed below. 1. Training costs 2. Advertising costs

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Formula for Measurement of Cost Per Hire: Total Direct costs + Total Indirect costs / No of New hires for Time The Time T stands for any period of time, say, 1 month, 3 months, 6 months or 1 year.

Cost Per hire plays a vital role in making decisions on the level of performance of Recruiters department Moreover, the lesser the per hire costs, the higher is productivity.

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Recruitment Costs Activity/Process Direct cost ( Available in Rupee value) Indirect ( Not easy to calculate in Rupee Value Sourcing y y Printing Advertisements Cost of Job Portal

(The total cost divided by number of people hired) Resume Screening Cost of activity in case outsourced Time spent by recruitment staff cost of the time

Interview

y y y y y

Travel Costs for interview Video Conference costs Telephonic Interview Cost Cost of Psychometric Tests Reimbursements of hotel stay for candidate

Time spent by recruitment staff in coordinating interviews

Cost of time spent by officers involved in interview process

Cost of Medical Check for fitness

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Hiring Costs

Fee to be paid to agency through which the resume was acquired/ amount paid to internal employee for referral

Time spent in negotiations with candidate to accept offer

Time spent by HR in making arrangements for shifting

Reimbursement of notice pay to candidate for payment to previous employer in case applicable y

Time spent for induction/ orientation training

Cost of shifting the household / travel of family

Cost of brokerage for accommodation if applicable

Cost of school admission fee paid for children

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REFERENCES:
1. K Ashwathappa, (1997) Human Resource and Personnel Management, Tata McGraw- Hill 131-176

2. Chris Dukes, (2001) Recruiting the Right Staff

3. John

M.

Ivancevich,

Human

Resource

Management,

Tata

McGraw- Hill, 2004

4. Steve Kneeland, (1999) Hiring People, discover an effective interviewing system; avoid hiring the wrong person, recruit outstanding performers

5. Stone,

Harold

and

Kendell,

W .E

Effective

Personnel

Selection Procedures, 1956

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BIBLIOGRAPHY
NEWS PAPERS:
TIMES OF INDIA THE ECONOMIC TIMES

MAGAZINES :
BUSINESS W ORLD BUSINESS TODAY INDIA TODAY

WEB: ww w. googl e. c om ww w. s oopl e. c om ww w. inf os ys . c om ww w. learni ngm ate. com

EXECUTIVE SUMMARY

Today, in every organization personnel planning as an activity is necessary. It is an i mportant part of an organization. Huma n Resource Planning is a vital ingredient for the success of the 19

organization in the long run. There are certain ways that are to be followed by every organization, which ensures that it has right nu mber and kind of people, at the right place and right time, so that organization can achieve its planned objective. The objectives of Hu man Resource Depart ment are Hu man Resource Planning, Career Recruitment planning, a nd Selection, and Training and Risk

Development,

Transfer

Promotion,

Manage ment , Perfor man ce Appraisal and so on. Each ob jective needs special attention and proper planning and imple mentation. For every organization it is important to have a right person on a right job. Re cruitment and Selection plays a vital role in this situation. Shortage of skills and the use of ne w te chnology are putting considerable pressure on how e mployers go about Recruiting and Selecting staff. It is recommen ded to carry out a strategic analysis of Recruitment and Selection procedure. W ith reference to this context, this project is been prepared to put a light on Recruitment and Selection process. This project includes Meaning and Definition of Recruitment and Selection, Need and Purpose of Recruit ment, Tips.Sources Evaluation of of Recruit ment through Process, which an

Recruitment

Recr uitment

Organization gets suitable application.Scientific Recruitment and Selection, which an Organization should follow for, right manpo wer. Job Analysis, which gives an idea about the requirement of the job. Next is Selection process, which includes steps of Selection, Types of Test, Types of Interview, Co mmon Interview Problems and their Solutions. Approaches to Selection, Scientific Selection Policy, Selection in India and problems. Recruitment and Selection are si multaneous process and are

incomplete without each other. They are important co mponents of the organization and are different fro m each other. Since all the aspect needs practical exa mple and explanation this project

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includes Recruitment and selection Process of Infosys. And a practical case study. It also contains addresses of various and top placement consultants and the pricelist of advertisements in the magazine.

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RECRUITMENT AND SELECTION

Recruitme nt and Selection

Recruitment and selection are two of the most i mportant functions of personnel manage ment. Recruit ment precedes selection and helps in selecting a right candidate. Recruitment is a process to discover the sources of manpo wer to meet the requirement of the staffing schedule and to employ effective measures for attracting that manpo wer in adequate

nu mbers to facilitate effective selection of efficient personnel. Staffing is one basic function of manage ment. All managers hav e responsibility of staffing function by selecting the chief executive and even the foremen and supervisors have a staffing responsibility when they select the rank and file workers. Ho wever, the personnel manager and his personnel departmen t is mainly concerned with the staffing function. Every organization needs to look after recruitment and selection in the initial period and thereafter as and when additional manpo wer is required due to expansion and development of business activities. Right person for the right job is the basic principle in recruitment and selection. Ever organization should give attention to the selection of its manpower, especially its managers. The operative manpower is equally important and essential for the orderly working of an enterprise. Every business

organization/unit needs manpower for carrying different business activities smoothly and efficiently and for this recruitment and selection of suitable candidates are essential. Human resource management in an organization will not be possible if unsuitable persons are selected and employment in a business unit.

TYBMS

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