Human Resource Planning

HUMAN RESOURCE PLANNING – UNIT II (4th Note)
Recruitment
Recruitment is defined as a process of searching out the prospective employees and
stimulating them for offering candidatures for job in the organization. It is an activity to find
out the potential candidates for filling up the vacancies of the job and to encourage them to
apply for those jobs.
Objectives of recruitment
To provide best available personnel
To help to ensure uninterrupted running of the organization
To produce a dynamic workforce which accepts changes in the organization
To get the required number and quality of employees at minimum cost.
To help to achieve strategic human resource management
To keep the unqualified applicants away from the entry to the organizations.
Sources of recruitment
Sources of recruitment include internal and external sources.
Internal sources of recruitment

This refers to company source of existing internal candidates. The various internal sources
are referred to as follows :
Through apprentices
Temporary workers
Through promotion under company’s promotion policy
Through transfers
Retired or retrenched employees
Employees close relatives and referrals
Deceased dependents on compassionate grounds
Advantages of Internal sources of recruitment

Ensures smooth uninterrupted supply of quality human resources as per needs of the
company.
Cost of recruitment, training and induction is meagre.
It gives more information about the candidates.
It takes less time to select candidates as the candidates are already working within the
organization.
Motivates the employee to work hard, and give their best.
Disadvantages of Internal sources of recruitment

Company gets to choose employees from a limited number of candidates. So the best possible
talent may not be available.
There are chances of biasness as the candidates are most of the time well known to the
selectors.
Here , emphasis is given to seniority than merit , which may not always be correct.
Internal recruitment discourages experienced and skilled employees from outside the
organization.
External sources of recruitment

External sources of recruitment include the employee sources outside the organization. They
are mentioned as below:
Employement exchange
Educational institutions
Unsolicited applicants
Trade unions
Newspaper advertisements
Company websites
Advantages of external sources of recruitment

Management gets a wider scope to select skilled people from amongst a large number of
candidates.
Selection of people is generally on the basis of skill , ability and experience , and scope of
influencing selectors is remote.
It is possible to bring in more creative and dynamic people and induce positive changes in
organizational culture .
Staff cost is generally low as in most cases new candidates are given initial salary/ minimal
emoluments.
Disadvantages of external sources of recruitment
Existing employees get demotivated as they do not find scope of going ahead in career.
Cost of training, induction, recruitment of external candidates is quite high: and it affects
economic health and profit of the company.
The process is time consuming and expensive.
External candidates take much time to adjust with organizational environment and culture.
Selection
Selection is the process of choosing the suitable candidates who possess requisite
qualifications and characteristics to fill jobs in an organization. So it is the process of picking
individuals (out of the pool of job applicants) with requisite qualifications and competence to
fill jobs in the organization.
In the process of selection, two types of errors may occur: select error and reject error.
 Select errors : Select errors are those errors which selector makes by wrongly accepting or
selecting the less competent candidates who later perform poorly on the job.
 Reject errors : Reject errors are those errors which selector makes by rejecting competent
candidates who would have later performed successfully on the job.
Purpose of selection
To predict which job applicant would be successful if selected.
To provide information to the candidates about the company.
To reduce cost in selection of candidates.
To increase production, productivity and quality of products
To create a dynamic and committed work force.
To face competition to grow, to survive and to achieve organizational goals.
Process of selection
The following are the usual steps in the selection process:
Processing of application forms
Preliminary interview
Selection tests
Employment interview
Reference and background analysis
Medical examination
Selection decision
Job offer
Processing of application forms

Organizations differentiate the application forms based on the informations provided. The
following information is generally provided :
 Personal and family information
 Educational qualifications
 Work experience
 Salary – present and expected
 Extra – curricular activities
 Details of previous employment
 References
Preliminary interview
The purpose of preliminary interview is the same – scrutiny of applicants and elimination of
unqualified ones. Also called as ‘ courtesy interview’ , it is also a good public relations
exercise.
Selection tests
Different types of selection tests may be administered. They are :
 Ability tests – determines how well an applicant can perform tasks related to the work.
 Aptitude tests – determines a person’s potential to learn in a given area.
 Personality tests – measures an applicant’s motivation to function in a particular working
environment.
 Interests tests – measures an individual’s activity preferences.
Employment interview
An employment interview is a formal , in – depth conversation conducted to evaluate the
applicant’s acceptability. They are of the following types :
 Structured – predetermined checklist of questions, usually given to all applicants.
 Unstructured – no or few planned questions; generally questions are made up during the
interview
 Mixed – usually done in practise; combination of structured and unstructured questions.
 Stress – a number of harsh rapid fire questions , intended to upset the candidates .
Reference and background check

 Done to obtain additional information from previous employers, known public figures,
university professors, neighbours and friends.
 Company may ask for names, addresses, telephone nos and emails of references.
Medical examination
The candidate is required to undergo a physical fitness test. The results of the medical
examination are recorded in a statement and are preserved in the personnel records.
Selection decision
The final decision is made from the pool of individuals who pass the tests, interviews,
reference checks and medical examination.
Job offer
Job offer is made to those applicants who have crossed all the previous hurdles. It is done
through a letter of appointment.

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HUMAN RESOURCE PLANNING – UNIT II (4th Note)

Internal sources of recruitment

Advantages of Internal sources of recruitment

Disadvantages of Internal sources of recruitment

External sources of recruitment

Advantages of external sources of recruitment

Processing of application forms

Reference and background check

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