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Divine Word College of Bangued

Bangued, Abra
School of Business Management and Accountancy
Bachelor of Science in Business Administration

MODULE 2
in
HRM 3
RECRUITMENT AND SELECTION

MIDTERMS

HRM 3 Recruitment and Selection 1


This module is a property and is exclusively used by the DWCB College Department. Any duplication and reproduction, storing in any retrieval system,
distribution, posting or uploading online as well as transmitting in any form or means ( photocopying & electronic sharing ) of any part , without prior written
permission from the owner is strictly prohibited.
Divine Word College of Bangued
Bangued, Abra
School of Business Management and Accountancy
Bachelor of Science in Business Administration

I. Title RECRUITMENT AND SELECTION

II. Course Profile


Course Code : HRM 3
Course Title : Recruitment and Selection
Unit Credit : 3 units
Contact Hours/Week : 3 hours
Prerequisite : BM 3
Instructor’s Name : Margo Angelica C. Bargas, MBA, LPT
CP # 09273789095 / E-mail: bargasmargoangelica@gmail.com
III. Course Description:

This course covers the fundamental methodologies of attracting new talents needed by the organization with
emphasis on effective sourcing of manpower, selection of prospective employees, matching job requirements with
qualifications of applicants in the workplace, and induction of newly hired employees to facilitate their integration in the
new business environment. The students will be oriented with the strategies and techniques to fill-up vacant positions
at the right time with adequate qualifications of new hires which will help organizations achieve business plans and
operational objectives for a given period.

IV. Learning Objectives:


At the end of the course, the students are expected to be equipped with the following:
1. enough knowledge and in depth understanding of:
a. recruitment, and planning and forecasting personnel needs,
b. the importance of recruitment,
c. stages of recruitment,
d. sources of applicants,
e. recruiting a more diverse workforce,
f. recruiting tools,
g. recruiters,
h. selection, and
i. selection process.
2. develop the capability of:
a. appreciating the importance of adopting a recruitment policy,
b. applying accurately the concepts of recruitment and selection, and
c. approximately resolving issues on recruitment and selection.
3. competencies in:
a. preparation of application letters,
b. writing of resumes,
c. job interviews,
d. forecasting future personnel needs,
HRM 3 Recruitment and Selection 2
This module is a property and is exclusively used by the DWCB College Department. Any duplication and reproduction, storing in any retrieval system,
distribution, posting or uploading online as well as transmitting in any form or means ( photocopying & electronic sharing ) of any part , without prior written
permission from the owner is strictly prohibited.
Divine Word College of Bangued
Bangued, Abra
School of Business Management and Accountancy
Bachelor of Science in Business Administration

e. presenting an organization’s ideal recruitment and selection practices, and


f. a thorough analysis of an organization’s recruitment and selection problems.

V. Course Outline:
I. Definitions of Recruitment and Employment Planning
a. Recruitment defined
b. Employment Planning
II. Forecasting Personnel Needs
a. Simple tools for projecting personnel needs
b. Forecasting the Supply of Inside Candidates
c. Forecasting the Supply of Outside Candidates
III. The Need for Effective Recruiting: The Importance of Recruitment, What Makes it a Challenge, Organizing How
You Recruit and the Recruiting Pyramid
a. The Importance of Recruitment
b. What Makes Effective Recruiting a Challenge?
c. Organizing How You Recruit
d. The Recruiting Yield Pyramid
IV. Job Analysis
a. The Different Job Terms
b. Specific Information Provided by Job Analysis
c. Uses of Job Analysis Information
V. Human Resource Recruitment Process
a. Stages of Recruitment
VI. Recruitment Sources and their Advantages and Disadvantages

VI. Presentation of Topic

LESSON 5: HUMAN RESOURCE RECRUITMENT PROCESS

Lesson Objectives:
At the end of the lesson, you are expected to:
a. identify the importance of human resource recruitment process.
b. enumerate and discuss the stages of recruitment.

The role of human resource recruitment is to build a supply of potential new hires that the organization can draw on if
the need arises. Thus, human resource recruitment is defined as my practice or activity carried on by the organization with the
primary purpose of identifying and attracting potential employees. It thus creates a buffer between planning and actual selection
of new employees.

HRM 3 Recruitment and Selection 3


This module is a property and is exclusively used by the DWCB College Department. Any duplication and reproduction, storing in any retrieval system,
distribution, posting or uploading online as well as transmitting in any form or means ( photocopying & electronic sharing ) of any part , without prior written
permission from the owner is strictly prohibited.
Divine Word College of Bangued
Bangued, Abra
School of Business Management and Accountancy
Bachelor of Science in Business Administration

• Recruitment activities are designed to affect (1) the number of people who apply for vacancies, (2) the type of
people who apply for them, and/or (3) the likelihood that those applying for vacancies will accept positions if
offered. The goal of an organizational recruitment program is to ensure that the organization has a number of
reasonably qualified applicants (who would find the job acceptable) to choose from when a vacancy occurs.

• The goal of recruiting is not simply to generate large number of applicants. If the process generates a sea of
unqualified applicants, the organization will incur great expense in personnel selection, but few vacancies will
actually be filled. This problem of generating too many applicants is often promulgated by the use of wide-reaching
technologies like the internet to reach people.

• The goal of personnel recruitment is not to finely discriminate among reasonably qualified applicants either.
Recruiting new personnel and selecting new personnel are both complex processes. Each task is hard enough to
accomplish successfully, even when one is well focused. Organizations explicitly trying do both at the same time
will probably not do either well.

• Applicants respond less positively to highly structured interviews, and yet this is precisely the type in terms of
interview that has the highest validity of making effective screening decisions. Because of strategic differences
among companies, the importance assigned to recruitment may differ.

• In general, however, all companies have to make decisions in three areas of recruiting:
a. personnel policies, which affect the kinds of jobs the company has to offer
b. recruitment sources used to solicit applicants, which affect the kinds of people who apply,
c. and the behaviors of the recruiter.

• These, in turn, influence both the nature of the vacancies and the nature of the people applying for jobs in a way
that shapes job choice decisions.

Stages of Recruitment
1. Determine Whether a Vacancy Exists A vacancy may occur in two ways:
a. when an employee resigns, retires, dies, or is discharged from the service;
b. when a new position is created as a result of expansion, restructuring or reorganization. When a vacancy happens,
it must be critically asked whether or not there is a need for replacement. Can the tasks of the vacant position be
distributed to the remaining incumbents? Could this not be rendered redundant through restructuring, reorganizing,
automating, reengineering, or contact outsourcing?

2. Prepare a Job Description and Person Specification

Job description has a number of purposes:


• for recruitment,
• job evaluation process,
HRM 3 Recruitment and Selection 4
This module is a property and is exclusively used by the DWCB College Department. Any duplication and reproduction, storing in any retrieval system,
distribution, posting or uploading online as well as transmitting in any form or means ( photocopying & electronic sharing ) of any part , without prior written
permission from the owner is strictly prohibited.
Divine Word College of Bangued
Bangued, Abra
School of Business Management and Accountancy
Bachelor of Science in Business Administration

• for training programs where training is focused on the key elements of a job and how employees can perform
better in their jobs; and
• in performance management process where an employee's performance is measured against the requirements of
the job set out in the job description.

• It is principally used for recruitment as a guide on how a particular employee will fit into the organization. It will
therefore need to set out the title of the job, to whom the employee is responsible, for whom the employee is
responsible, and a simple job description of the role and duties of the employee in the organization.

• It is a job indicator for applicants for a job.

• It could also be used as a guideline for an employee and his immediate superior as to his role within the
organization.

• Job descriptions come in many shapes and sizes depending upon the size and complexity of the organization and
the purpose for which it is written.

• For a clerical position, a simple version would suffice. For a supervisory or managerial position, a more complex
version is necessary.

Person specification
• It goes beyond a mere job description. In addition, it highlights the mental and physical attributes required of the
job holder.
• For example, a salesman's post is expected to show extrovert personality, aggressiveness, energy, tenacity and
persuasiveness.

3. Media Announcement
• There are many possible avenues for advertising position vacancy. Depending upon the size of the company, the
importance of the position, the urgency, budgetary constraints, media announcement would vary. The most
common means are through:
a. Bulletin boards
b. Word of mouth
c. Professional journals
d. Employment agencies, headhunters
e. Campus recruitment
f. Website job market
g. Job fairs
h. Newspaper advertisements
i. Summer cadre training

HRM 3 Recruitment and Selection 5


This module is a property and is exclusively used by the DWCB College Department. Any duplication and reproduction, storing in any retrieval system,
distribution, posting or uploading online as well as transmitting in any form or means ( photocopying & electronic sharing ) of any part , without prior written
permission from the owner is strictly prohibited.
Divine Word College of Bangued
Bangued, Abra
School of Business Management and Accountancy
Bachelor of Science in Business Administration

4. Managing the Response


• Announcement of vacancies through bulletin board or by word of mouth is the easiest and fastest means of inviting
interested parties to apply. To discourage those obviously not qualified to apply, you should spell out not only the
job specifications but also the person specifications of the job.

• Circulating your vacancies through professional publications is another way of reaching out to interested
applicants. Readership of these publications may however be limited and the response may also be limited. Using
this type of media is good to target particular professions such as in human resource management.

• Employment agencies are good especially if you need temporary employees to fill up positions where the
incumbents are on long leaves such as maternity or sabbatical leaves. It is also a favorite avenue for filling up
seasonal needs for more manpower. Headhunters can be availed of for top managerial positions or jobs that
require highly specialized skills. These are the types of people who are not looking for jobs but can be searched
and enticed by headhunters to join your organization for a certain finder's fee which ranges from 15% to 25% of
the gross annual pay you offer to a selected candidate.

• Campus recruitment is the most important source of recruits for entry-level professional technical vacancies Well
known firms like Procter and Gamble and SGV try to attract talented graduates from reputable colleges and
universities to join their organizations.

• The use of use of computer networks to advertise job vacancies is beginning to be utilized by some companies.
One of the most actively searched sites is the Job Search of the Department of Labor and Employment Conducting
or participating in Job Fairs is another popular way of attracting skilled staff. Fast food and business process
outsourcing companies are notably active in utilizing this this medium.

• Advertising in newspapers is the most popular way to recruit personnel even though they generate fewer desirable
recruits than the other modes. But the medium reaches a wider swath of applicants as job seekers generally read
through Classified Ads of newspapers with wide circulations. You just have to spend some time in processing the
huge number of applicants and separate the many obviously not qualified.

• Summer Cadre Training are very effective in attracting graduating students who are in the Dean's list from
reputable schools to join the summer cadre training and pay them some kind of per diem. The training provides
the company ample time to observe their work behaviour and potential. Conversely, it also affords the graduating
students the opportunity to decide whether it's the right company to work with when they graduate. Usually, the
organizations offer jobs to the most suitable ones right after their graduation and train them up the ladder until they
become managers.

HRM 3 Recruitment and Selection 6


This module is a property and is exclusively used by the DWCB College Department. Any duplication and reproduction, storing in any retrieval system,
distribution, posting or uploading online as well as transmitting in any form or means ( photocopying & electronic sharing ) of any part , without prior written
permission from the owner is strictly prohibited.
Divine Word College of Bangued
Bangued, Abra
School of Business Management and Accountancy
Bachelor of Science in Business Administration

5. Short-Listing
• Separating the "chaff from the wheat" or discarding those who are not qualified is probably the easiest work in the
whole process of recruitment. The idea is not to lose your precious time and those of the other managers in
interviewing those who do not meet the basic requirements. Once the short-list is done, it may be the most
appropriate time to do a reference and background check. The advantage is, you may still be able to pare down
the list to the barest minimum by weeding out those who have negative results in the reference and/or background
check.

6. Arrange Interviews
• Once the applicant pool has been screened and individuals to be considered are identified, interviews should be
arranged with those candidates.
• The following steps may be observed:
a. Arrange and confirm dates and times with candidates.
b. Develop the interview schedule and confirm with all individuals who will be in the interview process. Provide
a final copy of the schedule dates and time to all involved interviewers. Asking candidates to come on time
and making them wait for the interviewers create a negative image to the company.
c. Provide interviewers with a job description and person specification of the job.
d. Ensure that all interviewers are trained in the techniques of the interview.
e. Develop an evaluation tool for all interviewers to use upon completion of the interview.

7. Conduct the Interview


• You check on your notes to be sure that you have not missed any important information about the applicant. Before
you close the interview, it is good practice to allow the applicant the opportunity to ask questions. It is a good way
of telling him that the interview is a two-way process. This portion of the interview is the time for you to project the
good image of the company.

• In a marketing sense, hiring somebody is actually buying one's talent, experience, values, effort and time in and
time in exchange for salary and benefits.

• For important positions, the applicant may be given y be given a short tour of the premises. Even if the applicant
is not chosen, he goes away feeling good about the company.

• If the applicant asks about your impressions of him and his chance of getting employed, decline any comment and
tell him instead that you are still in the process of considering other applicants and will inform him of the decision
in due time.

• In closing the interview, summarize what had been covered, thank the applicant for his time in the interview and
his interest in joining the company.

HRM 3 Recruitment and Selection 7


This module is a property and is exclusively used by the DWCB College Department. Any duplication and reproduction, storing in any retrieval system,
distribution, posting or uploading online as well as transmitting in any form or means ( photocopying & electronic sharing ) of any part , without prior written
permission from the owner is strictly prohibited.
Divine Word College of Bangued
Bangued, Abra
School of Business Management and Accountancy
Bachelor of Science in Business Administration

8. Reference/Background Checks
• Reference or background checks should be made only for those candidates who have advanced to the finalist
stage and who are under serious consideration for the job. Courtesy demands that the candidates should be
informed on the intention of the company to conduct reference/background check of them. Their express assent
protects you from later charge of invasion of their privacy.

• One of the most crucial but often neglected steps in the recruitment process is reference/background checking
Reference checking can be a frustrating exercise that sometimes yields little useful information about a candidate.
In the first place, persons cited as reference by a candidate are either his friends, relatives or somebody he knows
of some prominence or rank in business, academe or society who would normally give good remarks about the
candidate.

• Prudent but meticulous open-ended and follow-up questions may reveal important strengths and shortcomings of
the candidate that would help you in deciding whether or not he is the candidate you are looking for.

• On background checks, the author is averse to the practice of sending a prepared stereotyped questionnaire with
a self-addressed stamped envelope. Whether it is a previous school or former employer of the candidate, the
respondent may just-if your letter of request is not thrown in the waste basket-carelessly give excellent or good
ratings on your forced choice answers to the questionnaire. If the respondent is sincere enough to provide you
with the right answers, he may be reluctant to do so for fear that he could be at the receiving end of a libel case.

• The best way is to call up the former employer, identify yourself, and state that the information provided about the
candidate will remain confidential and would help in making your hiring decision. If the respondent at the end of
the line, gives glowing praises about the candidate, ask the final question: "If there's vacancy in your firm and the
candidate applies, would you re-hire him?" If there's a long pause, and the answer is "yes" but it's not spontaneous,
don't hire the guy. The respondent is probably hiding from you something unpleasant about the candidate.

9. Offer to Hire
• Once the candidate is chosen, the job will be offered to him.
• The important issues that should be addressed in the job offer are:
a. Starting pay, salary progression;
b. Starting date;
c. Tenure of the contract, whether temporary, casual, for fixed term cs period, probationary or regular,
d. Benefits, and
e. Any other points of negotiation.

• The candidate should be given time to either accept or reject the offer. You should not however, compromise the
availability of other candidates if the candidate of choice declines the offer or ask for so much time to make a
decision

HRM 3 Recruitment and Selection 8


This module is a property and is exclusively used by the DWCB College Department. Any duplication and reproduction, storing in any retrieval system,
distribution, posting or uploading online as well as transmitting in any form or means ( photocopying & electronic sharing ) of any part , without prior written
permission from the owner is strictly prohibited.
Divine Word College of Bangued
Bangued, Abra
School of Business Management and Accountancy
Bachelor of Science in Business Administration

10. Appointment Action


• Once the candidate of choice accepted the position, the written appointment shall be made confirming the offer
and for the candidate to accept and sign his conformity on the space provided in the letter.
• All other candidates should be notified immediately. They should be informed of the closure to the search and
thanked for their interest in the position. It is proper etiquette to notify those candidates who were interviewed
either by telephone, letter or in person.

LESSON 6: RECRUITMENT SOURCES AND THEIR ADVANTAGES AND DISADVANTAGES

Lesson Objectives:
At the end of the lesson, you are expected to:
a. identify the recruitment sources as well as their advantages and disadvantages.
b. discuss when to conduct internal recruitment and when to perform external recruitment.

Recruitment Sources
The sources from which a company recruits potential employees are a critical aspect of its overall recruitment strategy.
The total labor market is expansive; any single organization needs to draw from only a fraction of that The size and nature of
the fraction that applies for an organization's vacancies will be affected by how (and to whom) the organization communicates
its vacancies. The type of person who is likely to respond to a job advertised on the Internet may be different from the type of
person who responds to an ad in the classified section of a local newspaper. In this section, we examine the different sources
from which recruits can be drawn, highlighting the advantages and disadvantages of each.

Sources of Applicants
A. Internal Sources
• This is the use of promotion from within taking into consideration the advantages and disadvantages.
• Companies make use of job posting and job bidding to inform employees of job vacancies. This involves posting
a notice in central location and giving a specified period to apply for the job.
• Other methods include memos to supervisors and listings in employee publications. Job postings are now usually
computerized and accessible to all employees.
• Computer posting systems allow the employee to match an available job opening with their own skills and
experience.
• The posting presents information so the employee knows what needs to be done if he wishes to apply for this
position.
• Although computer job posting may not be applicable for small organizations, one has to always take note that to
fill an opening, it is better to look at the current employees first.

Referrals
• Another internal source of applicant is the referral system in which present employees are asked to encourage
friends or relatives to apply. This is the most often used recruiting tool in many small organizations.

HRM 3 Recruitment and Selection 9


This module is a property and is exclusively used by the DWCB College Department. Any duplication and reproduction, storing in any retrieval system,
distribution, posting or uploading online as well as transmitting in any form or means ( photocopying & electronic sharing ) of any part , without prior written
permission from the owner is strictly prohibited.
Divine Word College of Bangued
Bangued, Abra
School of Business Management and Accountancy
Bachelor of Science in Business Administration

Finding Internal Candidates


• Hiring from within ideally relies on job posting and the firm's skills inventories. Job posting means publicizing the
open job to employees (usually by literally posting it on company intranets or bulletin boards). These postings list
the job's attributes, like qualifications, supervisor, work schedule, and pay rate.
• Qualification skills also play a role.
o For example, the database may reveal persons who have potential for further training or who have the
right background for the open job.

Using Internal Sources: Pros and Cons (by Gary Dessler)


• Filling open positions with inside candidates has several advantages.
o First, there is really no substitute for knowing candidate's strengths and weaknesses, as you should after
working with them for some time. Current employees may also be more committed to the company.
Morale may rise if employees see promotions as rewards for loyalty and competence.
o Inside candidates should require less orientation and perhaps training than outsiders. However, hiring
from within can also backfire.
o Employees who apply for jobs and do not get them may become discontented; telling them why you
rejected them and what remedial actions they might take is crucial.
o Too often, internal recruitment is something of a waste of time. Many employers require managers to post
job openings and interview all inside candidates. Yet the manager often knows ahead of time who he or
she wants to hire. Requiring the person to interview a stream of unsuspecting inside candidates can be
a waste of time for all concerned. Inbreeding is another potential drawback. When all managers come up
through the ranks, they may have a tendency to maintain the status quo, when a new direction is required.

The Advantages and Disadvantages of Internal Recruitment


By Ranulfo Payos, LLB, FPM

Advantages:
1. It is usually cheaper in terms of starting pay and faster to fill up internal vacancies.
2. Savings can be made since individuals with inside knowledge of how a business operates will need shorter periods of
training and time for "fitting in”.
3. It improves employee's morale; it acts as an incentive to all staff to work harder within the organization.
4. From the company's point of view, the strengths and weaknesses of an insider will have been assessed. It has potential
then for a better success rate since the track record of the employees is known.
5. Internal employees are already attuned to the culture of the organization.
6. The organization is unlikely to be disrupted by someone used to working with in the company.
7. It keeps proprietary and industry knowledge inside the organization.

Disadvantages:
1. The management will have to replace the person who has been promoted, creating a ripple effect-more job openings
occur as employees are moved about.

HRM 3 Recruitment and Selection 10


This module is a property and is exclusively used by the DWCB College Department. Any duplication and reproduction, storing in any retrieval system,
distribution, posting or uploading online as well as transmitting in any form or means ( photocopying & electronic sharing ) of any part , without prior written
permission from the owner is strictly prohibited.
Divine Word College of Bangued
Bangued, Abra
School of Business Management and Accountancy
Bachelor of Science in Business Administration

2. Promoting from within may upset some inside the company thereby lowering the morale of those not selected for the
position.
3. It deprives the company from getting fresh views and new ways of doing things.
4. It creates negative internal competition for the position.
5. An insider may be less likely to make essential criticisms to get the company working more effectively

B. External Sources
• This is used when the organization is unable to fill its hiring needs from internal sources. One inherent advantage
of this is that the pool of talents is much larger and more diverse than that available from internal sources plus the
new employee bringing in new ideas, different cultural values, and fresh approaches.

1. Job advertisement
• This is the placement of help-wanted advertisements in daily newspapers, in trade and professional publications,
or on radio and television.
• Help-wanted advertisements need to be carefully prepared If the organization's name not used and a post office
number is substituted (termed as blind advertisement), then advertisement response may not be as high as
reflected in a study which found out that corporate image was an important factor in reader response (JG Paolillo
The Influence of Corporate Image and Specificity of Candidates Qualifications in Response to Recruitment
Advertisement. The Journal of Management Spring 1996).

2. Employment agencies
• These are agencies that charge a fee for each applicant they place. Companies usually turn to an agency because
they do not have their own HR department geared to do recruiting or screening or they find it difficult to generate
a pool of qualified applicants.
• In some cases, they need to quickly fill up a particular opening. For different persons to fill positions, companies
use agencies or executive search firms to recruit and screen potential candidates.

3. Walk-ins
• Corporate image has a significant impact on the number and quality of people who apply to an organization in this
manner.

4. Campus recruitment
• This is a primary source of entry-level job candidates.
• This is usually coordinated with the university or college placement center.
• Organizations send one or more recruiters to the campus for initial interview then the most promising recruits are
then invited to visit the office before a final employment decision is made.

5. Internships
• For students, this can help them in honing their business skills, check out potential employers and learn more
about their likes and dislikes when it comes to choosing careers
HRM 3 Recruitment and Selection 11
This module is a property and is exclusively used by the DWCB College Department. Any duplication and reproduction, storing in any retrieval system,
distribution, posting or uploading online as well as transmitting in any form or means ( photocopying & electronic sharing ) of any part , without prior written
permission from the owner is strictly prohibited.
Divine Word College of Bangued
Bangued, Abra
School of Business Management and Accountancy
Bachelor of Science in Business Administration

• For employers, they can use their interns to make useful contribution while they are being evaluated as possible
full-time employees.

6. Employment databases
• These are databases where organizations can quickly and efficiently gain access to prospective applicants.
• These include databases maintained by university alumni group, databases owned by private employment
agencies, and databases open to the general public.

7. Special events recruiting


• This refers to joining or sponsoring employment fairs.
• Group of firms sponsor a meeting or exhibition at which each has a booth to publicize job openings.
• This is especially helpful for smaller and less well-known employers. It appeals to job seekers who wish to work in
a particular area and those wanting to minimize travel and interview.
• Hiring managers are usually around to interview candidates that are first prescreened by company recruiters.

8. Online recruitment
• The choice of an external recruitment method depends largely on the circumstances surrounding the hiring
situation.
• The following factors are the most relevant:
a. The type of job being filled
b. How quickly the job needs to be filled
c. The geographic region of recruitment
d. The cost of implementing the recruitment method
e. Whether the method will attract the right mix of candidates

9. Professional associations, meetings and conferences


• Professional societies like the Philippine Institute of Certified Public Accountants (PICPA) for accountants,
Philippine Medical Association (PMA) for physicians, Personnel Management Association of the Philippines
(PMAP) for Human Resource practitioners, Philippine Mechanical Engineering Society (PMES) for mechanical
engineers, and the like are good "hunting grounds" for potential managers and executives whose names appear
on bulletin boards during conventions and seminars.

10. Employee referrals and recommendations


• This is considered the most effective and cheapest source of recruiting new workers. Employees are encouraged
to recommend friends and acquaintances to work in their organization. No written word will carry much weight
except as supported by the verbal testimony of satisfied employees.

HRM 3 Recruitment and Selection 12


This module is a property and is exclusively used by the DWCB College Department. Any duplication and reproduction, storing in any retrieval system,
distribution, posting or uploading online as well as transmitting in any form or means ( photocopying & electronic sharing ) of any part , without prior written
permission from the owner is strictly prohibited.
Divine Word College of Bangued
Bangued, Abra
School of Business Management and Accountancy
Bachelor of Science in Business Administration

The Advantages and Disadvantages of External Recruitment By Ranulfo Payos, LLB, FPM

Advantages:
1. It draws upon a wider range of talent, and provides the opportunity to bring new experience and ideas into the
organization, enhancing creativity and innovation.
2. It brings in an opportunity to acquire new skills and competencies not found in the organization.
3. It enables the organization to hire people with knowledge of competitors' secrets-an easy though arguably dubious way
of conducting competitive intelligence gathering.
Disadvantages:
1. It is usually more costly to hire somebody from outside.
2. The outsider does not fit into the organization's culture.
3. Some risks in failure, for example, an employee could be less effective in actual job than what appears on paper
application and interview.
4. It takes a longer time to get acclimated to the job and to the organization's culture.
5. It may demoralize employees who did not get the promotion and adversely affect their commitment levels.

• It is up to the organization to weigh the advantages and disadvantages of each option Labor contracts may impel
an organization to hire from within. One should recognize, however, that there are times when the organization
has to hire somebody from outside.
o For example, when a company decides to create a research, a quality assurance, or information
technology department and there is obviously no one from the ranks with the knowledge, skills,
competence to head the new department, external hiring is imperative.

Rehiring
• Should you rehire someone who left your employ?
o It depends.
o On the plus side, former employees are known quantities (more or less) and are already familiar with how
you do things.
o On the other hand, employees who you let go may return with less-than-positive attitudes.
o And hiring former employees who resigned back into better positions may signal current employees that
the best way to get ahead is to leave.
o In any event, you can reduce the chance of adverse reactions. After employees have been back on the
job for a certain period, credit them with the years of service they had accumulated before they left.
o In addition, inquire (before rehiring them) about what they did during the layoff and how they feel about
returning: "You don't want someone coming back who feels they've been mistreated," said one manager.

HRM 3 Recruitment and Selection 13


This module is a property and is exclusively used by the DWCB College Department. Any duplication and reproduction, storing in any retrieval system,
distribution, posting or uploading online as well as transmitting in any form or means ( photocopying & electronic sharing ) of any part , without prior written
permission from the owner is strictly prohibited.
Divine Word College of Bangued
Bangued, Abra
School of Business Management and Accountancy
Bachelor of Science in Business Administration

VII. References:

Corpuz, C. (2006). Human Resource Management Revised Edition, Manila, Philippines Rex Book Store, Inc.

Dessler, G. (2010). Human Resource Management 12th Edition. Jurong, Singapore. Pearson Education Inc.

Maximiano, J. M. (2006). Managing Human Resources in the 21" Century. Manila, Philippines. Rex Book Store, Inc.

Noe, et. al. (2009). Human Resource Management Gaining A Competitive Advantage Sixth Edition. New York.
McGraw-Hill/Irwin

Payos, R. (2010). Human Resource Management (From The Practitioner's Point Of View). Manila, Philippines.
Rex Book Store, Inc.

HRM 3 Recruitment and Selection 14


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