Recruitment

Recruitment is understood as the process of searching for & obtaining applicants for jobs, from whom the right people can be selected. OR Recruitment is the process of attracting prospective employees and stimulating them for applying job in an organization. Recruitment refers to the process of receipt of applications from job seekers. There are recruitment boards for railways, banks & other organizations.

Purposes & Importance of Recruitment:

The general purpose of recruitment is to provide a pool of potentially qualified job candidates. - Determine the present & future requirements of the firm in conjunction with its personnel-planning & job-analysis activities; - Increase the pool of job candidates at minimum cost; - Help increase the success rate of selection process by reducing the number of visibly unqualified & over qualified job applicants; - Help reduce the probability that job applicants, once recruited & selected will leave the organization only after a short time; - Increase organizational & individual effectiveness in the short-run & in long-run.

Recruitment represents the 1st contact that a company makes with potential employees. It is through recruitment that many individuals will come to know a company & eventually decide whether they wish to work for it. A well-planned & well-managed recruiting effort will result in high-quality applicants. The recruitment process should inform qualified individuals about employment opportunities, create a positive image of the company, provide enough information about the jobs so that applicants can make comparisons with their qualifications & interests, & generate enthusiasm among the best candidates so that they will apply for the vacant positions. The failure to generate an adequate number of reasonably qualified applicants can prove costly complicating the selection process & may result in lowering of selection standards.

Factors Governing Recruitment OR Factors Influencing Recruitment:

External Factors:
- Supply & Demand:

Supply of specific skills in the labour market is one of the important external factor. If the demand for a particular skill is high relative to the supply, an extraordinary recruiting effort may be needed. For E.g. the demand for programmers & Financial Analysts is likely to be higher than their supply.

- Unemployment Rate:
When The unemployment rate in a given area is high, the company’s recruitment process may be simpler.
- Labour Market:
Labour market conditions in a local area are of primary importance in recruiting for most non-managerial, supervisory & middle-management positions. However, so far as recruitment for executive & professional positions is concerned, conditions for all India Market is concerned.
- Political & Legal Considerations:
Reservations of jobs for SC’s, ST’s, minorities & OBC’s is a political decision. There is a strong case for giving preference to people hailing from less-advantaged sections of the society.
- Sons of soil:
- Company’s Image:
The company’s image also matters in attracting large number of job seekers. Blue chip co’s attract large number of applications. Infosys handles nearly 1 million applications per annum.

Internal Factors:
- Recruiting Policy:
Most firms have a policy on recruiting internally or externally. Generally, the policy is to prefer internal sourcing, as own employees know the company well & can recommend candidates who fit the organization’s culture.
- Temporary & Part-time Employees:
An organization hiring temporary & part-time employees is in a less advantageous position in attracting sufficient applications.
- HRP:
A major internal factor that can determine the success of the recruiting programme is whether or not the company engages in HRP. In most cases, a company cannot attract prospective employees in sufficient numbers with required skills overnight. A Effective HRP greatly facilitates the recruiting efforts.

- Size of the firm:
Size Of the firm is another internal factor having its influence on the recruitment process. An organization with 1000 employees will find less problematic than a firm with just 100 employees.
- Cost:
Cost of recruiting is yet another internal factor that has to be considered. Recruiting costs are calculated per new hire & the total amount is considerable now a days. Careful HRP & forethought by recruiters can minimize recruitment costs. Evaluating the quality, quantity & costs of recruitment helps ensure that it is efficient & cost-effective.
- Growth & Expansion:
Growth & Expansion will have more recruiting on hand than the one which finds its fortunes declining.

Recruitment Process:

Recruitment is the process of identifying & attracting job seekers so as to build a pool of qualified job applicants. The process comprises 5 interrelated stages:- Planning, Strategy Development, Searching, Screening & Evaluation & Control.

1. Recruitment Planning:
Planning Involves the translation of likely job vacancies & information about the nature of these jobs into a set of objectives that specify the number & type of applicants to be contacted.
- Number of Contacts:
Organizations nearly always plan to attract more applicants than they will hire. Some of those contacted will be uninterested, unqualified, or both. Companies calculate yield ratio which expresses the relationship of applicant inputs to outputs at various decision point.
- Type of Contacts:
This refers to the type of people to be informed about job openings. The type of people depends on the tasks & responsibilities involved & the qualifications & experience expected.

2. Strategy Development:
Once Number of contacts & type of contacts are known, serious consideration needs to given to ( Make or Buy, Technological Sophistication of recruitment & selection devices, Geographic Distribution of labour markets comprising job seekers, sources of recruitment, sequencing the activities in the recruitment process)
- Make or Buy:
Firms must decide whether to hire less skilled employees & invest on training & education programmes, or they can hire skilled labour & professionals.
- Technological Sophistication:
Computers have given employers & job seekers a wide scope of options in the initial screening stage. Technological advancement has made it possible for job seekers to gain better access. They have begun sending videotapes about themselves to a number of companies without wasting time & without spending money on travel.

- Where to Look:
In Order to reduce costs, firms look into labour markets most likely to offer the required job seekers. Generally, companies look into the national market for managerial & professional employees, regional or local markets for technical, clerical & blue-collar employees. But now-a days company’s adopt incremental strategy in which initial efforts are concentrated in regional or local labour markets & expanded only if these efforts fail to achieve the desired result.
- How to look:
It refers to the methods or source of recruitment. It can broadly classified into 2. Internal Source & External Source.
Internal recruitment seeks applicants for positions from those who are currently employed.

- When to look:

An Effective recruiting strategy must determine when to look – decide on the timings of events- besides knowing where & how to look for job applicants. Time Lapsed Data (TLD) will be highly useful in determining the timings. TLD show the average time elapses between major decision points in the recruitment process.

1. Present Employees: Promotions & transfers from among the present employees can be a good source of recruitment. Promotion to higher positions has several advantages. ( It builds morale, it encourages competent individuals who are ambitious, it is a cheaper than outside to recruit, those chosen internally are familiar with the organization)
2. Employee Referrals: Employees working with an organization recommend their families or friends for vacant positions in the organization. When used wisely, referrals can be an effective way of recruiting.
3. Former Employees: Former employees are also an internal source of applicants. Some retired employees may be willing to come back to work on a part-time basis or may recommend someone who would be interested in working for the company.

4. Previous Applicants: Although not truly an internal source, those who have previously applied for jobs can be contacted by mail, a quick & inexpensive way to fill an unexpected opening.

External Recruitment-
1. Professional or Trade Association: Many associations provide placement services for their members. Many associations publish or sponsor trade journals or magazines for their members. These publications often carry classified advertisements from employers interested in recruiting their members. ( E.g. American Bar Association, National Notary Association etc.)
2. Advertisements: ‘Want Ads’ describe the job & the benefits, identify the employer, & tell those who are interested & how to apply. They are the most familiar form of employment advertising. ‘Blind Ads’ is another form where no identification of the firm is given. Respondents are asked to reply to a post box number or to a consulting firm that is retained by the organization.
3. Campus recruitments: Colleges, universities, institutes are one of the important external source of recruitment for organizations looking for fresh talents. IIM’s, IIT’s are on the top of the list of avenues for recruiters.
4. Walk-ins, Write-ins, & Talk-ins: The most common & least expensive approach for candidates is direct applications in which job seekers submit resumes. Write-ins are those who send written enquiries. These jobseekers are asked to complete application forms for further processing. Talk-ins are becoming more popular now-a days. Job aspirants are required to meet the recruiter for detailed tasks.
5. Consultants: Consultants are useful as they have nation-wide contacts & lend professionalism to the hiring process. E.g. ABC Consultants, Ferguson Associates etc.

6. Contractors: Contractors are used to recruit casual workers. The names of the workers are not entered in the company records & the difficulties experienced in maintaining permanent workers are avoided.

7. Displaced Persons: Rehabilitating the displaced people is a social responsibility of business. Such people are a source of recruitment for the company. Rehabilitation of displaced persons is mandated by the government also.
8. Radio & Television: Radio & Television are used mostly by the government departments. Companies in the private sector are hesitant to use the media because of the high cost & they also fear that such advertising will damage the conservative image.
9. Competitors: Rival firms can be a source of recruitment. Popularly called poaching. This method involves identifying the right people in rival companies & offering them better terms.

10. E-recruiting: Currently, employers can electronically screen candidates soft attributes, direct potential candidates for online skill assessment, interview candidates via videoconferencing & manage entire process with web-based software.

3. Searching:
Once a recruiting plan & strategy are worked out, the search can begin. The 2 steps involved are:
- Source Activation:
This means that if the firm has planned well & done a good job of developing its sources & search methods, activation soon results in a flood of applications/resumes. The applications received must be screened. Those who pass have to be contacted & invited for interview.
- Selling:
Another important issue here is communication. Organizations walk a tightrope. On one hand, they want to do whatever they can to attract desirable applicants. On the other they must resist the temptation of overselling their virtues. In selling the company, both the message & media deserve attention.
4. Screening:
Screening of applications can be regarded as an integral part of the recruiting process, though many view it as the 1st step in the selection process. The selection process will begin after the applications have scrutinized & shortlisted. The purpose of screening is to remove from the recruitment process, at an early stage, those applicants who are visibly unqualified for the job. Effective screening can save a great deal of time & money.

5. Evaluation & Control:
Evaluation & Control is necessary as considerable costs are incurred in the recruitment process. Costs incurred are:- ( Salaries for recruiters; Management time spent on preparing job description, job specifications, & advertisements; Cost of Advertisements; Recruitment Overheads, Costs of overtime, etc) Questions should be asked to know whether the recruitment methods used are valid & whether the recruitment process is effective.
- Evaluation of Recruitment Process:
The Recruitment process has the objective of searching for & obtaining applications from job-seekers in sufficient numbers & quality. Evaluation might include:-
a. Number of suitable candidates for selection;
b. Retention & performance of the candidates selected;
c. Cost of the recruitment process;
d. Time lapsed data;
e. Comments on image projected.

- Evaluation of Recruitment Methods:
a. Number of initial enquiries received which resulted in completed application forms;
b. Number of candidates at various stages of the recruitment & selection process, especially those shortlisted;
c. Number of candidates recruited;

d. Number of candidates retained in organization after 6 months

Recruitment Policy:

The recruitment policy of an organization would normally be in alignment with the objectives & policies of the organization. It lays down the objectives of recruitment, & the channels & sources of recruitment. A good policy recruitment policy is based on the organization’s objectives, identification of the recruitment needs, preferred sources of recruitment, cost of recruitment, & so on. It should reflect the reputation &image of the organization.

Human Resource Management Models

HRM Models provide an analytical framework for studying. They serve as a heuristic device-something to help us discover & understand the world for explaining the nature & significance of key HR Practices.

There are 4 HR Models:-

- Fombrun, Tichy, & Devanna Model:

Being the 1st model, this emphasizes just 4 functions & their interrelatedness. The 4 functions are Selection, Appraisal, HRD, Rewards. These 4 components of HRM are expected to contribute to organizational effectiveness. The Fombrun Model is incomplete as it focuses on only 4 functions of HRM & ignores all environmental & contingency factors that impact HR functions. Nevertheless, the model deserves appreciation for being the 1st & has set stage for other theories to emerge.

- The Harvard Model:

The dimensions included in The Harvard Model are stakeholders interest, situational factors, HRM Policy choices, HR Outcomes, & Long-term consequences. The Stakeholders interests recognize the importance of “trade offs” between the interests of the owners & those of employees. Trade offs also exists among other interest group also. But this is a challenge for HR Manager as he needs to balance the interests of all stakeholders;
The Situational factors influence management’s choice of HR strategy. The contingent factors included in the model include work force characteristics, management philosophy, labour market, technology, trade unions etc;
The HRM Policy choices emphasise the management’s decisions & actions in terms of HRM can be fully appreciated only if it is recognized that they result from an interaction between constraints & choices;

Organizational commitment, competence, congruence, cost-effectiveness constitute HRM Outcomes. The assumption here is that employees have talents which are rarely exploited for organizational growth & they are willing to grow with the organization if a participative environment is available;
The Long-term consequences include societal well-being, organizational effectiveness, & individual welfare. There is obvious linkage among the three. Employee welfare leads to organizational effectiveness & efficacy of all organizations contributes to societal well-being;

The feedback loop is the sixth component of the Harvard Model. As situational factors influence HRM Policy & choices, & are influenced by long-term consequences. Similarly, stakeholders interests influence HRM Policy choices.

- The Guest Model:

HRM Model was developed by David Guest & claims to be much superior to other models. The model emphasizes the logical sequence of 6 components– HR Strategy, HR Practices, HR Outcomes, Behavioural Outcomes, Performance Results & Financial Results. Looking inversely, the financial results depend on employee performance, which in turn is the result of action oriented employee behaviours. Behavioural outcomes are the result of employee commitment, quality & flexibility, which in turn are impacted by HR practices. HR practices need to be in tune with HR strategies which are invariably aligned with organizational strategies. This clearly maps out the field of HRM & indicates the inputs & outcomes. It also tells how HRM can contribute of the organizational effectiveness.

- The Warwick Model:

This Model was developed by 2 researchers, Hendry & Pettigrew of University of Warwick. It has classified into 5 elements i.e. Outer Context ( Macro Environmental Forces)
Inner Context ( Firm Specific or Micro environmental Forces)
Business Strategy
HRM Context, HRM Content
The Strength of the model is that it identifies & classifies important environmental influences on HRM. It maps the connection between the external & environmental factors & explores how HRM adopts to changes in the context. Obviously, those organizations achieving an alignment between the external & internal contexts will achieve performance & growth.

Strategic Human Resource Management

Strategic Planning:
Strategic HR Planning involves designing HR goals in alignment with the goals of the organization, identifying the HR required to achieve the goals & then developing these resources internally or acquiring them from outside. It also includes the conception & implementation of new HR initiatives required to accomplish organizational goals. The essence of Strategic Planning is to ask “ Where are we now as a business, Where do we want to be, & how should we get there ?”.
Strategic HRM:
Strategic HRM is the optimum utilization of HR to achieve the set goals & objectives in the business environment. This has to go with the organizational strategy & with the strategies of other functional areas like finance & marketing.

Strategic HRM refers to the process of developing practices, programmes & policies that help achieve organizational objectives. The nature of strategic HRM becomes more clear when it is contrasted with traditional HRM. In traditional HRM, the responsibility for people management programme rests with staff specialists in an organization but in SHRM the task of managing people vests with the line mangers. In HRM focus is on employee relations, ensuring that employees are motivated, whereas in SHRM focus on partnership with internal & external constituent groups. The role of traditional HRM is of a change follower, whereas in SHRM the role is of a change leader & initiator.

An effective HRM practices can improve performance in 3 main ways:
- Managing with technology:-
Technological applications like those of Web Portals, E-procurement, Electronic signatures etc improve HR’s performance in 4 main ways:- Self service, call-centers, productivity improvement & outsourcing. For. E.g. Using Dell’s HR Intranet, the firm’s employees can self service many of their personnel transactions, such as updating personal information & changing benefits allocations. Technology also enabled Dell to create a centralized HR Call center. Here Dell HR specialists answer questions from all Dell’s far-flung employee, reducing the need for HR Department’s each Dell Location. Firms also install internet & computer based systems for improving HR productivity. Technology also makes it easier to outsource HR activities to specialist providers by giving access to HR database

- Effective HR Practices:
HR Practices can improve performance. For E.g. a recent review of personality testing concluded that screening applicants through personality testing can produce employees who perform better. Similarly, well-trained employees perform better than untrained ones, & safe workplace produce fewer lost-time accidents.

- High Performance Work Systems:
A high-performance work system is an integrated set of HRM policies & practices that together produce superior employee performance. These includes, Employment Security, Selective Hiring, Extensive Training, Decentralized Decision Making, Information sharing, Emphasis on High-Quality work etc.

Human Resource management

Human Resource Management:

It is the process of acquiring, training, appraising, & compensating employees, & of attending to their labor relations, health & safety, & fairness concerns. OR HRM is also a management function concerned with hiring, motivating, & maintaining people in an organization. It focuses on people in organizations.

Scope of HRM:

The Scope of HRM is really vast. All major activities in the working life of a worker from the time of his or her entry into an organization until he or she leaves-come under the purview of HRM. The activities included are- Introduction to HRM, Employee Hiring, Employee & Executive Remuneration, Employee Motivation, Employee maintenance, IR, etc. HRM is a broad concept, where HRD & PM is a part of it. HRM differs from PM both in scope & orientation. HRM views people as an important source or asset to be used for the benefit of organizations, employees & the society. It is emerging as a distinct philosophy of management aiming at policies that promote mutuality- mutual goals, mutual respect, mutual rewards & mutual responsibilities. PM has a limited scope & inverted orientation. It viewed labour as a tool, the behavior of which could be manipulated for the benefit of the organization & replaced when it was worn-out.

HRM- Objectives & Functions:

The Primary Objective of HRM is to ensure the availability of a competent & willing work force to an organization.

- Societal Objectives: To be ethically & socially responsible to the needs & challenges of the society while minimizing the negative impact of such demands upon the organization.

- Organizational Objectives: To recognize the role of HRM in bringing about organizational effectiveness.

- Functional Objectives: It reminds the HRM that it has only functional value & should not become too expensive at the cost of the organization.

- Personal Objectives: To assist employees in achieving their personal goals. ( So as to keep workers retained & motivated ).

Functions:

Every manager must get things done through people. An effective manager should be able to utilize human & non-human resources to eventually achieve these goals.

1. Managerial Functions ( Planning, Organizing, Staffing, Directing & Controlling);

2. Operative Functions

- Employment- Job Analysis, Human Resource Planning, Recruitment, Selection, Placement, Induction;

- Human Resource Development- Performance Appraisal, Training, Management Development, Career Planning & Development;

- Compensation- Incentives, Bonus, Fringe Benefits;

- Employee Relations.

The Changing Environment Of HRM:

- Globalization Trends:

Globalization is the tendency of firms to extend their sales, ownership, &/or manufacturing to new markets abroad. E.g. Sony, Apple, Nike, Mercedes Benz are some firms that market all over the world. More globalization means more competition, & more competition means more pressure to be “ world class” to lower costs, to make employees more productive, & to do things better & less expensively. For consumers it means lower prices & higher quality on everything from computers to cars to air travel, but also the prospect of working harder & perhaps having less secure jobs. E.g. IBM shifted several 100’s analysis jobs abroad.

- Technological & Training Trends:

Technological Trends have been rapid & radical in India in recent years. The use of computer technology for better data management & communication is now pervasive in all the organizations. Till a few years ago, most of the government organizations & public sector banks were apprehensive of taking to this new technology, now even such organizations are quick to adopt new technologies. They have realized the importance & benefits of new & better technologies. They have decided to invest in new technologies & also to train their employees in adapting to this new technology. T&D of employees has to be a continuous process in any organization if it has to survive & progress.

- Quality of Work Life:

QFL Refers to the extent to which an employee’s work meets his professional needs. Every employee has some expectations from his work, like a sense of satisfaction or achievement, security, a high self-esteem etc. The quality of work life gets better when more & more of these employee needs are satisfied. Organizations in today’s world are continuously striving to improve the quality of anxieties, encouraging employee participation in work & employment related relations etc.

- The Impact of the Government:

Government policies & programs have a major effect on the way the markets operate. Today every one talks of globalization, diverse investment, & liberalization etc, which was absent before 1991. Various labor laws & acts formulated & amended over the years like ( Trade Unions Act, Payment of Wages, Gratuity Act)

- The Changing Attitudes of Workforce:

The First cost cutting measures adopted by any company to improve its bottom line is downsizing. Many companies believe that it is important to be lean & mean to survive in a competitive market. The concept of “Job Security” has become outdated as no employee knows when he might be asked to take leave & search for another job. Employees have realized the market dynamics & are no longer loyal to their employers as they used to be. Companies like Eicher, & ONGC have realized that a family-friendly environment acts like a competitive weapon. This has resulted in low absenteeism & turnover. E.g. ONGC encourages its employees children by rewarding them with merit scholarships. Eicher helps its employees with payment of their electricity bills so that they need not waste their time standing in long queues.

Line & Staff Aspects of HRM:

Line Authority gives managers the right or authority to issue orders to other managers or employees. It creates a superior-subordinate relationship. Staff authority gives the manager the right or authority to advise other managers or employees. It creates an advisory relationship. Line Managers have line authority. Staff managers have staff authority, as generally they cannot issue orders down the chain of command except in their own departments. HR Managers are staff managers. They assist & advise line managers in areas like recruiting, hiring & compensation. However line managers still have HR duties.

- Line Managers HR Duties: Placing the right person on the right job, Starting new employees in the organization ( orientation ), Training employees, Improving the job performance of each person, Developing the abilities of each person, Controlling labor costs, Protecting employees health & physical condition.

- Human Resource Manger’s Duties:

- A line Function: The HR manager directs the activities of the people in his or her own department & in related service areas. In other words, he or she exerts line authority within the HR Department.

- A Coordinate Function: HR manager acts as the “right arm of the top executive” to ensure that line managers are implementing the firm’s HR policies & practices.

- Staff Functions: Assisting & Advising line mangers is the heart of the HR manager’s job. He or she advises the CEO to better understand the personnel aspects of the company’s strategic options. HR assists in hiring, training, evaluating, rewarding, promoting & firing employees. It also administers the various benefit programs like health & accident insurance, retirement, vacation & so on.

HR Policies & Procedures:

HR Policies can be defined as the set of guidelines that determine the way in which employees are to be treated in organization. They are based on the organizational culture & the external environment, apart from the organizational objectives. These should aim at achieving both employee satisfaction & organizational objectives, without any conflict between the two. E.g. If an organization believes that its employees are its most important assets & that it needs to keep them happy, then its HR Policies would be employee-friendly. Similarly, if an organization’s goal is to grow rapidly in the market on the strength of its employees, this would be reflected in its policy to train & develop & invest in employees. If HR are treated as just factors of production, then HR Department would have a very limited role to play.

- Good HRM Policies enable the management to keep the workforce secure, satisfied, & motivated;

- They also help the management in deriving better employee performance, in better management & also in cost-savings;

- HR Policies need to find a balance between a number of factors like organizational objectives, individual expectations, market demands etc. ( It is difficult to formulate & implement);

- HR Policies need to be updated to match the changing needs of the organization & the employees;

- HR Policies should be easy to understand & implement. ( They should favor the employees of the organization & not leave room for any discrimination among them).

- HR Policies must be stable. Stability creates a climate of security & removes uncertainty from the minds of employees