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Recruitment and Selection
ASSESSMENT # 3
1.
i.
ii.
iii.
iv.
2.
Total Marks: 30
Give short answers to the following questions:
(12)
What is an ‘ Induction Programme?’
What are the advantages and disadvantages of promoting employees from within the
company?
Why do employers transfer employees?
Outline the main objectives of recruitment process in an organisation.
Describe the recruitment process step–by-step.
Case Study
(8)
(10)
Fun & Learn, Inc. is a national chain of retail outlets specialising in creative toys and innovative
learning materials for children. The company caters to the upper end of the market and focuses
on customer service for a competitive advantage. Fun & Learn plans to expand and to open five
new retail outlets in the coming quarter. This may mean up to 200 new hires, and the executive
team wants to make sure that the best people are hired and retained. It has issued a challenge
to its retail management personnel to design a staffing process that will accomplish these goals.
The children’s market in which Fun & Learn operates demands service personnel who are
endlessly patient; knowledgeable about children, toys, and learning; and, perhaps most
important, sociable, enthusiastic, and engaging. Excellent customer service is the top priority at
Fun & Learn, and obtaining the desired performance from personnel has meant a major
investment in training.
Unfortunately, new workers often leave within a year of being hired. This means that the
company barely gets an adequate return on the training it has invested in its new hires.
Apparently, turnover is due (at least, in part) to the demanding nature of the job.
Recently, Fun & Learn has been emphasizing the establishment of work teams to improve the
quality of its services, identify and fix any problems in service delivery and brainstorm new
opportunities.
This approach has yielded better than anticipated results, so the team concept will be central to
the new outlets.
Questions:
1. How can Fun & Learn attract the best applicants for jobs at its new retail outlets? On
what groups, if any, should be company’s recruiting effort focus? How should the
recruiting be done?
2. How should Fun & Learn select the best candidates? What type of characteristics and
HRM Level 4
Brentwood Open Learning College
Page: 1
Recruitment and Selection
ASSESSMENT # 3
Total Marks: 30
measures should be used? Why?
3. How might Fun & Learn socialise its employees so that they are attuned to the firm’s culture
and plans for the future?
4. How might Fun & Learn address its retention problems?
HRM Level 4
Brentwood Open Learning College
Page: 2
HUMAN RESOURCE MANAGEMENT
UNIT-3
3
Recruitment and
Selection
Learning Outcomes
By the end of this unit the learner will be able to:
Identify the factors affecting recruitment
Assess the recruitment process
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Unit 3
Recruitment and Selection
Introduction
In today’s business environment, organisations are under pressure to produce more with fewer
resources. An organisation’s success depends upon its employees and it is that capital that is the largest
fixed cost. Producing more and decreasing the cost of that production is what most organisations aim
for. Human resources play an important role here because it is this department that must ensure that
the organisation attracts the most talented people at the lowest cost.
Competitive advantage is built on hiring the right people, whether in the public or private sector,
the corporate world or the world of education. People are an “inimitable” or unmatched asset. The right
people and their skills cannot be imitated by competitor organisations. High-calibre employees are the
most valuable asset for any organisation. Finding the right people and putting them in the right jobs is
the most important challenge.
What is Recruiting?
Once it knows how many human resources it needs, management has to find the places where these
resources will be available. They must also find a way of attracting the right people to the organisation
before selecting suitable candidates for jobs. All of this is generally known as recruitment.
Recruitment is “a process to discover the sources of manpower to meet the requirements of the staffing
schedule and to employ effective measures for attracting that manpower in adequate numbers to
facilitate effective selection of an efficient workforce.” Edwin B. Flippo, author of many personal
management books, defined recruitment as “the process of searching for prospective employees and
stimulating them to apply for jobs in the organization.”
Objectives of Recruitment
1. To attract people with a broad range of skills and experiences that will suit the present and future
organisational plans.
2. To bring in new people with a new perspective to lead the company.
3. To position new people with fresh ideas within all levels of the organisation.
4. To develop a culture that attracts competent people to the company.
5. To search for people whose skills fit company values.
6. To think about ways of assessing psychological traits.
7. To seek out unique and unconventional talent.
8. To search for talent globally and not just within the company (more so for large organisations).
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9. To design entry salaries that compete on quality but not on importance.
10. To anticipate what new positions might become available and find people for these positions that
do not yet exist.
Recruitment Policy
The recruitment policy of any firm comes from the personnel policy of that organisation. The policy must
include ways of motivating the employees through internal promotions or improving employee loyalty
by trying to accommodate retrenched or laid-off employees. It must also take into account the
situation of casual/temporary employees or dependents of present/former employees based on their
capabilities.
The following factors should be taken into consideration when deciding and formulating recruitment
policy:
1.
2.
3.
4.
5.
6.
Government policies
Personnel policies of competing organisations
Organisation’s personnel policies
Recruitment sources
Recruitment needs
Recruitment costs
7. Selection criteria and preference etc.
Planning for Recruitment
Before interviewing for a job, the organisation needs to ensure a number of important steps are taken.
These prior steps include the forecasting of human resource needs, the description of individual job
requirements, and the establishment of appropriate recruitment channels. The HRM specialists in the
organisation are likely to be particularly prominent (as are line managers) in this process.
Factors Affecting Recruitment
Both internal and external factors affect recruitment. The external factors include supply of and demand
for human resources, employment opportunities and/or unemployment rate, labour market conditions,
political and legal requirements, government policies, social factors, and information systems.
Internal Factors
A detailed job description should be prepared after specific human resource needs have been identified.
The job description is a legal requirement and assists the HR manager when selecting candidates. The
direction taken by the company from there will depend greatly on the corporate philosophy. For
example:
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Will the company look internally or externally to fill its employment needs?
Does the company believe in hiring the most qualified candidates, regardless of background, or does
it wish to be an industry leader when it comes to workforce diversity?
Will the organisation try to sell itself as a high-wage, high-search, or high-training organisation as
identified by Stigler?
By keeping the above questions and the existing company policies and practices in mind, the
recruiter will have the necessary base on which to proceed to the external environment.
External Factors
For legal, ethical, and practical reasons, it is important for the recruiter to be very aware of the
organisation’s external environment. All of these factors will play a hand in the recruiter’s strategy:
Legal: The legal environment is constantly changing as new laws and regulations are passed. These
affect all aspects of human resources management. The recruiter must follow the rules to avoid
punitive government actions.
Ethical: While ensuring the internal corporate philosophy, the recruiter should follow the guidelines
that keep and expand the company’s positive corporate image.
Practical: Many avenues are open for the recruiter when seeking appropriate job candidates. Having
updated information on the labour market and economy on both a national and local level will
improve the efficiency of the effort.
All of the above considerations will lead to an efficient and effective recruiting process for the HR
professional.
Internal Recruiting
Internal recruiting is the search for employees already in the organisation. These employees will
have the abilities and the attitudes to fulfil the requirements and help the organisation achieve its
objectives.
Advantages of Internal Recruiting
Recruiting Costs: Since the company is focusing on an already existing group of employees to fill a
vacant position, the selection processes will be less time- and energy-consuming. Internal recruiting
tends to be less expensive than external recruiting.
Motivation: When the company promotes or transfers someone within the same organisation it
shows other employees that the organisation offers room for advancement. This addresses the
employees’ needs for self-achievement.
Familiarity: The familiarity of the employee is positive in two ways: On the one hand the employee is
familiar with the organisation’s policies, procedures and customs. On the other hand, the
organisation has established an employment history showing the worker’s formal and informal skills
and abilities.
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Disadvantages of Internal Recruiting
Inbreeding: One drawback of extensive internal recruiting is the reduced likelihood of innovation and
new perspectives. A lack of new employees from the outside leads to a lack of new ideas and
approaches on the inside.
Equal Employment Opportunity (EEO) Criteria: The Equal Employment Opportunity Commission
insists that job openings within a company must be available to all people, not just those from within
the organisation. Diversification in the workforce must be ensured. This is a legal requirement and
also relates to the political and geographical environment.
More training: Recruiting from within an organisation will entail more employee training. In order to
develop the skills needed to train the current workforce in new processes and technologies, the
organisation has to provide a more expensive training programme.
External Sources of Recruitment for Organisations
External Sources Include:
a)
b)
c)
d)
e)
f)
g)
h)
Campus Recruitment
Employment Agencies/Consultants
Public Employment Exchanges
Professional Associations
Data Banks
Casual Applicants
Similar Organisations
Trade Unions.
Campus Recruitment: Recruitment from campuses is often carried out by industries, businesses, and
social or religious organisations. Inexperienced candidates from institutions such as colleges and
universities are often selected. Candidates may also come from training institutions such as State
Government or National Industrial Training Institutes or Vocational Training Centres. Potential
candidates studying subjects such as Science, Commerce, Arts, Engineering and Technology, Agriculture,
and Medicine, etc. may be chosen for certain industries.
Campus recruitment facilities are usually available at universities and institutes that provide courses in
engineering technology, management studies, etc.
Private Employment Agencies/Consultants: Private employment agencies or consultants will recruit
people on behalf of companies. They will charge a fee. Line managers can then be taken off
recruitment duties to concentrate on their operational activities, while recruitment is entrusted to a
private agency or consultant. However, high costs, ineffectiveness in performance, and the confidential
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nature of this function sometimes make it hard for management to depend on this source.
Nonetheless, these agencies tend to function effectively in the recruitment of executives.
Public Employment Exchange: Job vacancies can be found by checking with public employment
exchanges set up by the government. These provide information about job vacancies for those seeking
opportunities. These places are also helpful to organisations searching for suitable candidates.
Professional Organisations: Professional organisations or associations keep extensive bio-data on their
members and provide these to various organisations upon request. They also act as an exchange
between their members and recruiting firms by giving information and clarifying doubts. Organisations
find this source more useful when recruiting experienced and professional employees such as
executives, managers and engineers.
Data Banks: Management can collect the bio-data of candidates from different sources such as
employment exchanges, educational institutes, and candidates, etc. and load them onto their computer.
This will become another source from which the company can obtain this information when it needs to
recruit.
Casual Applicants: Candidates are able to apply for jobs by post or by personally handing in their
applications and CVs to personnel departments. This is a source for temporary or lower-paid jobs. This
all depends on factors such as the reputation of an organisation, the time it takes to respond, the level of
unemployment and the extent of its involvement in local activities.
Similar Organisations: Generally, experienced candidates are available in similar organisations, i.e.
producing similar products or engaged in similar businesses. Management is able to find suitable
candidates from similar organisations, and this is the most effective source for executive positions
in particular. Similar companies are a good source for newly established, expanded or diversified
organisations looking for potential candidates.
Trade Unions: Generally, unemployed or underemployed people or employees seeking a change in
employment can go to their trade union. Unions’ relationship with management can help them find
suitable employment. Thus, trade union leaders are aware of the availability of candidates (appropriate
people for certain jobs). Because of this, and to satisfy the trade union leaders, managers make
enquiries with trade unions for suitable candidates.
Depending on the type of candidates that are needed and the time period etc., management will decide
on the best sources to use. When this is done, recruitment procedures must be finalised.
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The Recruitment Process
Recruitment is the process in which the company identifies its need to employ certain people to fill
certain positions. Its aim is to hire the best qualified candidates. These potential new employees must
have suitable abilities to help the organisation achieve its corporate goals.
The recruitment process works in a particular way. Applications and CVs are received after the initial
advertising for new employees. A short list is compiled and those included on it are asked to attend for an
interview. The interviewing structure can vary. For example, in some cases a number of interviews will
be conducted; in others, the recruiters may ask the candidates to take certain tests in order to assess
their suitability. The chosen candidate will receive an official job offer.
When the recruitment process has produced a number of applicants, the important steps in selection are
as follows:
short-listing candidates for the next stage
test arrangements for the short-listed candidates, which may take place in an assessment
centre and include the testing of certain knowledge or skills. Testing is optional, however, and
depends on the position.
interviewing the candidates (and giving them feedback on the tests) and allowing them to ask the
selectors questions about the job
choosing the successful candidate
ensuring references are checked (this is sometimes done before the interview but it must be
done at some stage)
offering the position, confirming in writing and receiving acceptance from the chosen candidate
organising the induction process
evaluating the result, usually after a certain period of time
Short-Listing
Short-listing involves reducing the number of applications received down to a manageable list of the best
candidates. These candidates are then invited for an interview. There are two possible approaches to this
reduction process. Firstly, there is the screening approach where unsuitable applicants are rejected. This
will leave only the required number of applicants to be interviewed. The second method is one of
inclusion where each applicant is compared with the job requirements and given a score through a preset scoring system. For example, a maximum of 10 points might be awarded for experience, 8 for
qualifications, 15 for demonstration of certain key skills or competencies and 7 for other factors, giving a
total of 40 points. It would also be agreed that a minimum number of points would need to be scored in
certain categories for the candidates to be included on the list. This process avoids discrimination and is
much fairer to all the candidates, even though it takes a little longer.
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Selection Testing
The aim is to choose a candidate who will be successful and perform well. These tests may include
ability tests, aptitude tests and personality tests, etc.
Interviewing the Candidates
An interview has been the traditional method of selecting new employees for de cades. A successful
interview comprises preparation, operation and summation.
Preparation includes the following elements:
All the relevant documents should be compiled, especially the application form and candidate’s
accompanying letter.
The appropriateness of the candidate should be agreed upon by all the interviewers. It may be
carried out using a points system based on how closely the person meets all the job criteria or by
an agreed system of elimination.
The interview time should be divided between telling the candidate a little more about the
organisation and the position, questioning the candidate and giving the candidate the
opportunity to ask questions.
The room allocated for the interview should be prepared, preferably in an informal way. There
should be no interruptions.
The nature of the data recording must be agreed on, the stationary printed and the recording
roles assigned.
Operation covers a wide area and can be divided into a number of sections:
opening the interview
listening
asking the right questions
structuring the interview.
Summation is then required to assess the candidates and chose the right one.
Choosing the Successful Candidate
The final decision is about selecting the preferred candidate. This should follow the same process that
applies to short-listing. Only the candidates who match the ‘essential’ aspects of the job specification
should be considered.
A poor option is to select ‘the best on the day’ when this person only fulfils half of the necessary criteria.
It is far better to start the process again than to take a serious risk in such an investment. If two or more
candidates meet all the criteria, the final decision can be made in a number of ways. Generally, the
decision is given to the line manager who will have to motivate, develop and manage the person
concerned. The manager should ju …
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