Unit 2

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 Recruitment and Selection
• Recruitment means to ensure the available vacancies
and to make suitable arrangements for their selection
and appointment.
• It is prior selection
• The available vacancies are given wide publicity and
suitable candidates are encouraged to submit
applications so as to have a pool of eligible
candidates for scientific selection.
• It is the process of searching and obtaining applications
from interested candidates so as to have a pool of job
seekers from which most suitable person can be
selected for appointment.

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 Recruitment
• Recruitment represents the first contact that a company makes with
potential candidate.
• “recruitment is the process of searching for prospective employees and
stimulating them to apply for jobs in the organisation.” Edwin Flippo

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 Features of recruitment
1. Process of searching a right candidate
2. Connecting link between job providers and
job seekers
3. Encourages interested candidates to apply
4. Positive function
5. Prior to selection
6. Complex process

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 Sources of recruitment
• Promotion
• Transfer
Internal •
•
Former employees
Employee Referrals
• Previous Applicants

• Campus
• Press advertisement
External •
•
Consultancies
Poaching
• Walk-ins

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 Sources of recruitment (Internal)
1. Promotion implies upgrading of an employee to a higher position carrying higher status, pay and responsibilities.
Promotion from among the present employees is advantageous because the employees promoted are well acquainted
with the organisational culture, they get motivated, and it is cheaper also.
2. Transfer refers to shifting an employee from one job to another without any change in the position/post, status and
responsibilities.
3. Former employees are another source of applicants for vacancies to be filled up in the organisation. Retired or
retrenched employees may be interested to come back to the company to work on a part-time basis. Similarly, some
former employees who left the organisation for any reason may again be interested to come back to work. This source
has the advantage of hiring people whose performance is already known to the organisation.
4. Employee Referrals: The existing employees refer their family members, friends and relatives to the company as
potential candidates for the vacancies to be filled up in the organisation
5. Previous Applicants: This is considered as internal source in the sense that applications from the potential candidates
are already lying with the organisation. Sometimes, the organisations contact through mail or messenger these applicants
to fill up the vacancies particularly for unskilled or semi- skilled jobs.
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 Sources of recruitment (External)
1. Campus Recruitment: This is another source of recruitment. Though campus recruitment is a common
phenomenon, it has made its mark rather recently Of late, some organisations such as HLL, HCL. L &T, Citi Bank,
ANZ Grindlays, Motorola, Reliance etc., in India have started visiting educational and training institutes/campuses for
recruitment purposes. For this purpose, many institutes have regular placement cells/offices to serve as liaison
between the employers and the students.
2. Advertisement:
3. Consultancies: there are a number of private employment agencies who register candidates for employment and
furnish a list of suitable candidates from their data bank as and when sought by the prospective employers. The main
function of these agencies is to invite applications and short list the suitable candidates for the organisation. Of
course, the final decision on selection is taken by the representatives of the organisation.
4. Poaching: poaching is another method of recruitment whereby the rival firms by offering better terms and
conditions, try to attract qualified employees to join them
5. Walk ins:

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 Advantages of internal recruitment
1. Economical
2. Develops loyalty within the employees
3. motivation to employees
4. Provides security and continuity of employment
5. Reduces labour turnover
6. Quick and more reliable method
7. Employees do not need induction
8. Employer is in better position to evaluate
employees
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 limitations
1. Feeling of discontent among those
who are not promoted
2. Prevent entry of „fresh blood‟
3. Promotion to certain posts due to non
availability of a competent person
4. Org will not be able to attract capable
person from outside
5. It may encourage favoritism
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 Advantages of external recruitment
1. Entry of fresh blood
2. Selection can be made in an impartial manner
3. Scope of heartburn and jealousy can be avoided
4. Management can fulfill reservation requirements

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 disadvantages of external recruitment
1. Leads to labour turnover
2. Industrial disputes
3. Employees lose their sense of security
4. Employees feel frustrated
5. Costly and time consuming

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 Selection
• Selection is the process of choosing the most suitable candidates out of
many applicants.
• Selection is the process of choosing qualified individuals who are
available to fill the positions in organization.
• The Process of making a “Hire” or “No Hire” decision
regarding each applicant for a job.

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 BASIS FOR COMPARISON RECRUITMENT SELECTION

Recruitment is an activity of Selection refers to the process of

Meaning searching candidates and selecting the best candidates and
encouraging them apply for it. offering them job.

Approach Positive Negative

Inviting more and more candidates to Picking up the most suitable candidate
Objective
apply for the vacant post. and rejecting the rest.

Key Factor Advertising the job Appointment of the candidate

Sequence First Second
The firm makes applicant pass through
Vacancies are notified by the firm through
various levels like submitting form,
Process various sources and application form is
written test, interview, medical test and so
made available to the candidate.
on.
As recruitment only implies the Selection involves the creation of
Contractual Relation communication of vacancies, no contractual relation between the employer
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contractual relation is established. and employee.
Method Economical Expensive
 Job analysis

advertising

Collection of
application form

Process of selection
Scrutiny of
application

Written test

Psychological test

Personal
interview

Reference check

Medical
examination

Final selection
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 Types of tests
1. Intelligence test
2. Vocational test (liking/ suitability)
3. Analytical test
4. Synthetic test ( complex situations)
5. Personality

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 Types of interviews
1. Informal (oral interview, at any place, various questions to collect information)
2. Formal : (pre-planned que)
3. Individual
4. Panel / board
5. Group interview
6. Stress (series of harsh, rapid fire question)
7. Patterned/ Structured
8. Non directive / unstructured (freedom to speak)
9. In depth

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Performance Appraisal
Training & Management
Development

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 Definition:
1. The Performance Appraisal is a periodic evaluation or the
assessment of the employee’s job performance against the pre-
established standards such as quality and quantity of output, job
knowledge, versatility, supervision, leadership abilities, etc.
2. According to Flippo, a prominent personality in the field of Human
resources, "performance appraisal is the systematic,
periodic and an impartial rating of an employee’s
excellence in the matters pertaining to his present job
and his potential for a better job.“
3. “It is the process of evaluating the performance of
employees, sharing that information with them and
searching for ways to improve their performance’’.
4. Performance appraisal is the step where the
management finds out how effective it has been at hiring
and placing employees .
5. A “Performance appraisal” is a process of evaluating an
employee’s performance of a job in terms of its
requirements.
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Is Appraisal just carrot for employee?

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 Purpose

Empowerment

Relationship

Flexibility

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Optimal
Performance

Recognition and
Rewards

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20
NEED OF PERFORMANCE EVALUATIONS
1. Provide a review of past work performance.
2. Create an opportunity to discuss professional development goals and objectives.
3. Document employee performance.
4. Document corrective action necessary to improve work performance.

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 PURPOSES OF PERFORMANCE
APPRAISAL
1. To review the performance of the employees.
2. To judge the gap between the actual and the desired
performance.
3. To help the management in exercising organizational control.
4. To diagnose the training and development needs of the future.
5. Provide information to assist in the HR decisions like promotions,
transfers etc.
6. Provide clarity of the expectations and responsibilities of the
functions to be performed by the employees.
7. To judge the effectiveness of the other human resource functions.
8. To reduce the grievances of the employees.
9. Helps to strengthen the relationship and communication between
superior – subordinates and management – employees.
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 OBJECTIVES OF PERFORMANCE
APPRAISAL
WORK RELATED OBJECTIVES CAREER DEVELOPMENT OBJECTIVES
1. To provide a control for work done 1. To identify strong and weak points and encourage finding
2. To improve efficiency remedies for weak points through training;

3. To help in assigning work and plan future work assignment; 2. To determine career potential;
and
3. To plan developmental( promotional or lateral) assignments;
4. To carry out job evaluation and
OBJECTIVES OF COMMUNICATION
4. To plan career goals
1. To provide adequate feedback on performance;
ADMINISTRATIVE OBJECTIVES
2. To clearly establish goals, i.e what is expected of the staff
members in terms of performance and future work 1. To serve as a basis for promotion or demotion;
assignments;
3. To provide counseling and job satisfaction through open 2. To serve as a basis for allocating incentives;
discussion on performance and
3. To serve as a basis for determining transfers ; and
4. To let employees assess where they stand within the
organization in terms of their performance. 4. To serve as a basis for termination in case of reduction of
staff.
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 Process
Setting
performance
Taking corrective standards Communicating
standards
standards

Discussing Measuring
results standards
Comparing
standards

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Methods of Performance
Appraisal
TRADITIONAL METHODS OF PERFORMANCE
MODERN METHODS OF PERFORMANCE APPRAISAL
APPRAISAL
1. Rating Scales
2. Checklist
1. Management by Objectives
3. Forced Choice Method
4. Forced Distribution Method 2. Psychological Appraisals
5. Critical Incidents Method 3. Assessment Centres
6. Behaviorally Anchored Rating Scale
4. 360-Degree Feedback
7. Field Review Method
8. Performance Tests and Observations 5. 720-Degree Feedback
9. Confidential Reports
10. Essay Method
11. Cost Accounting Method
12. Comparative Evaluation Approaches: Ranking Method, Paired
Comparison Method

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 Traditional Methods of Performance Appraisal
1. RATING SCALES:
2. CHECKLIST:
The numerical scale is prepared that represents the
job evaluation criterion such as the output, initiative,
attendance, attitude, dependability, etc. and ranges A checklist of employee traits in the form of
from excellent to poor. Thus, each employee is given statement is prepared where the rater put a
the rating based on his performance against each set tick mark in “Yes” or “No” column against the
criteria and then the consolidated score is computed
accordingly. The rating scales are one of the easiest trait checked for each employee.Once the
traditional methods of performance appraisal and checklist gets completed the rater forwards
can be applied to any job.
the list to the HR department for the final
evaluation of the employee.

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Traditional Methods of Performance Appraisal

3. FORCED CHOICE METHOD: 4. FORCED DISTRIBUTION METHOD:

Under this method, the rater is forced to This method of performance appraisal is
answer the ready-made statements as given based on the assumption that employee’s job
in the blocks of two or more, about the performance conforms to the normal
employees in terms of true or false . Once he distribution curve i.e. a bell shaped curve.
is done with the list, it is forwarded to the HR Hence, the rater is compelled to put
department for the final assessment of the employees on each point on the scale. It is
employee seen that cluster of employees is placed at
the highest point on a rating scale.

No.
of
employees 10% 20% 40% 20% 10%

poor Below average good Excellent

average

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Force distribution curve
Traditional Methods of Performance Appraisal

6. BEHAVIORALLY ANCHORED RATING

5. CRITICAL INCIDENTS METHOD:
SCALE:
The descriptive statements about
Under this method, the critical behavior of employees’ behavior, both effective and
each employee that make a difference in the ineffective are put on the scale points, and
effective or non-effective performance is the rater is asked to indicate which
recorded by the supervisor and is taken into behavioral point describes the employee
consideration while evaluating his behavior the
Performance best.
Points Behavior
performance. Extremely good 7 Can expect trainee to make valuable suggestions for
increased sales and to have positive relationships with
customers all over the country.

Good 6 Can expect to initiate creative ideas for improved

sales.
Above average 5 Can expect to keep in touch with the customers
throughout the year.
Average 4 Can manage, with difficulty, to deliver the goods in
time.
Below average 3 Can expect to unload the trucks when asked by the
supervisor.
Poor 2 Can expect to inform only a part of the customers.

Extremely poor 1 Can expect to take extended coffee breaks & roam
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Traditional Methods of Performance Appraisal

8. PERFORMANCE TESTS AND

7. FIELD REVIEW METHOD:
OBSERVATIONS:
Under this method, the performance evaluation of The test either written or oral is conducted
an employee is done by someone who does not
belong to his department or is usually from the to test the knowledge and the skills of
corporate office or the HR department.The outsider employees. Sometimes the employee is
reviews the performance of an employee through his asked to demonstrate his skills in the given
records and holds interviews with the assessee and
his superiors. situation and then he is evaluated on that
Performance subordinate peers superior customer basis.
Dimension

Leadership ^ ^

Communication ^ ^

Interpersonal skills ^ ^

Decision making ^ ^ ^

Technical skills ^ ^ ^

Motivation ^ ^ ^

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 Traditional Methods of Performance Appraisal

9. CONFIDENTIAL REPORTS: 10. ESSAY METHOD:

The confidential reports are mostly prepared by the Under this method, the detailed description of
government departments, wherein the employee is the employee performance is written by the
evaluated on some of the following parameters : rater. The performance of an employee, his
Attendance relations with other Co-workers, requirements
Leadership of training and development programs,
strengths and weaknesses of the employee, etc.
Self-expression are some of the points that are included in the
essay. The efficiency of this traditional method
Ability to work with others of performance appraisal depends on the
writing skills of the rater.
Initiative
Technical ability
Integrity
Responsibility, etc.

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Traditional Methods of Performance Appraisal

11. COST ACCOUNTING METHOD: 12. COMPARATIVE EVALUATION APPROACHES:

Under this method, several comparative analysis are
done, wherein the performance of one employee is
In this method, the employee’s performance compared with that of another Co-worker, and the
is evaluated in monetary terms, i.e. how rating is determined accordingly. The Ranking Method
and the Paired Comparison Method are the usual
much cost company is incurring on keeping comparative forms used in this approach.
the employee and how much he is ◦ Ranking Method: In the Ranking Method, superiors give the
contributing to the firm in terms of his rank from best to worst, to their subordinates on the basis
of their merits. Here, the detailed description of why best
output. or why the worst is not given.
◦ Paired Comparison Method: Under this method, the
performance of each employee is compared with the other
employee and then the decision on whose performance is
better is made

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Methods of Performance
Appraisal
TRADITIONAL METHODS OF PERFORMANCE
MODERN METHODS OF PERFORMANCE APPRAISAL
APPRAISAL
1. Rating Scales
2. Checklist
1. Management by Objectives
3. Forced Choice Method
4. Forced Distribution Method 2. Psychological Appraisals
5. Critical Incidents Method 3. Assessment Centres
6. Behaviorally Anchored Rating Scale
4. 360-Degree Feedback
7. Field Review Method
8. Performance Tests and Observations 5. 720-Degree Feedback
9. Confidential Reports
10. Essay Method
11. Cost Accounting Method
12. Comparative Evaluation Approaches: Ranking Method, Paired
Comparison Method

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 Modern Methods of Performance Appraisal

1. MANAGEMENT BY OBJECTIVES 2. PSYCHOLOGICAL APPRAISALS:

This concept was given by Peter.F.Drucker, according to This is one of the most frequently used modern
him, the performance of an employee can be assessed on methods of performance appraisal, wherein the
the basis of the targets achieved by him as set by the psychologist assesses the employee’s potential for
management of an organization. Firstly, the management the future performance rather than the past one.
sets the goals and communicate the same to the Under this method, the psychologist conducts the in-
employees, and then the performance of an employee is depth interviews, psychological tests, discussions
compared against these set goals and is evaluated on this with the supervisors and the reviews of other
basis. In case the employee is not able to achieve the pre- evaluations. This assessment is done to determine
established goals, then management decides on a new the intellectual, emotional, motivational and other
strategy or policy that should be undertaken for the related characteristics of an employee that is
accomplishment of unattainable goals. necessary to predict his potential for the future
performance.

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 Modern Methods of Performance Appraisal

3. ASSESSMENT CENTRES: 4. 360-DEGREE FEEDBACK:

The assessment center is the central location where the It is a feedback method wherein the details of an
managers come and perform the job exercises. Here the employee’s performance is gathered from other
stakeholders such as superiors, peers, team members
assessee is requested to participate in in-basket and self. In this method, the employee is asked about
exercises, role playing, discussions, computer himself, i.e. what he feels about his performance, and
simulations, etc. Where they are evaluated in term of then accordingly he can realize his strengths and
their persuasive ability, communication skills, weaknesses. Also, the peers or team members are
asked about assessee’s performance through which
confidence, sensitivity to the feelings of others, mental the employee knows about what others feel about
alertness, administrative ability, etc. This entire exercise him and can overcome his disbeliefs if any. Thus, this
is done under the trainer who observes the employee method is used to have a detailed evaluation of an
employee from all the perspectives.
behavior and then discusses it with the rater who finally
evaluates the employee’s performance.

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 Modern Methods of Performance Appraisal

5. 720-DEGREE FEEDBACK:

This is an another feedback method, wherein the **Nowadays, companies use the modern
assessment is done not only by the stakeholders within methods of performance appraisal which
the company but also from the groups outside the have a broader scope than the traditional
organization. These external groups who assesses the
employee’s performance are customers, investors, methods and provides a more accurate and
suppliers and other financial institutions.It is one of the comprehensive evaluation of an individual.
most crucial modern methods of performance appraisal
because this is the only group that determines the
success of the organization as a whole.

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Performance Appraisal
ADVANTAGES DISADVANTAGES

1. provide a record of performance over 1. If not done appropriately, can be a

a period of time. negative experience.
2. provide an opportunity for a
manager to meet & discuss 2. very time consuming, especially
performance for a manager
3. Provide the employee with feedback 3. subject to rater errors & biases.
about their performance
4. If not done right can be a complete
4. Provide an opportunity for an waste of time.
employee to discuss issues and to
clarify expectations 5. Can be stressful for all involved
5. Can be motivational with the
support of a good reward and
compensation
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Training AND DEVELOPMENT
“TRAINING IS EXPENSIVE.
WITHOUT TRAINING IT IS
MORE EXPENSIVE “-Nehru

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“TRAINING IS EXPENSIVE. WITHOUT TRAINING IT IS
MORE EXPENSIVE “-Nehru
-Training is a act of increasing knowledge and skill of
an employee for doing a particular job.
-Training is a short term educational process
-Training improves changes and moulds employee’s
knowledge, skill, behavior and attitude towards the
requirements of the job and the org.

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Is there a difference
between Training and
development

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NEED OF TRAINING ADVANTAGES OF TRAINING

1. To match employee specifications with 1. Increased productivity

job requirements and organizational
needs 2. Increased morale

2. Organizational feasibility and 3. Reduced supervision

transformation process 4. Reduced accidents
3. Technological advancement 5. Increased organizational stability
4. Organizational complexity
5. Human relations

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Training methods

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Process of training

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Management development
It is a systematic process of growth and development by which the managers develop their
abilities to manage.

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Methods of management development

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