CHRUTAR VIDYA MANDAL’S

SEMCOM
VALLABH VIDYANAGAR
(WHAT WE THINK, OTHERS DON’T)

Class : SYBBA ITM (SEM III) 2020-21

Subject : Human Resource Management - I
Faculty :Dr. Joe Mary George
Unit 2 : Recruitment, Selection & Employee Training

Meaning & Definition of Recruitment

Recruitment is a process of searching for prospective employees and stimulating and encouraging them to
apply for jobs in an organization. It is often termed positive in that it stimulates people to apply for jobs to
increase the selection ratio i.e. the number of applicants for a job. Selection on the other hand tends to be
negative because it rejects a good number of those, who apply, leaving only the best to be hired.
- Flippo
Procurement function of personnel department includes three major sub-functions
(a) Recruitment;
(b) Selection; and
(c) Placement on the job.

According to Edwin B. Flippo, “Recruitment is the process of searching for prospective employees and
stimulating them to apply for jobs in the organization.”
The Sources of recruitment may be grouped into two:
(a) Internal Sources.
(b) External Sources.

Figure: Sources of Recruitment

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 (A) Internal Sources
Internal sources include personnel already on the pay-roll of the organization. Whenever any vacancy
arises, somebody from within the organization may be looked into; following are the internal sources of
recruitment.
(1) Promotion: Promotion means shifting of an employee to a higher position carrying higher
responsibilities,
Facilities, status and Salaries Various positions in an organization are usually filled up by promotion of
existing employees on the basis of merit or seniority or a combination of these.
(2) Transfer: Transfer is the movement of an employee from one job to another without involving any
substantial change in his duties, responsibilities, required skill, status and Compensation. Promotion
involves upward mobility while transfer refers to a horizontal mobility of employees.
(3) Retired/Retrenched Employees: The retired employees of the company who held good record in the
books of the company are remembered and called back by the company to get the advantage of their
expertise. Also Retrenched (laid off) employees are called back when the company improves its economic
conditions.
(4) Dependents/Relatives: The present employees dependents and relatives are proposed by the present
employees for employment.

Advantages of Internal Sources of Recruitment

(a) Familiarity: The organization and its employees are familiar to each other. The organization knows the
ability and skills of the likely candidates since they are insiders-similarly, employees also know about the
working conditions and job requirements of the vacancies.
(b) Better utilization of internal talent: Reliance on internal recruitment enables the enterprise to make the best
use of the capabilities of its employees. For example, some employees may be so talented that they
deserve, promotion, or some may do better on transfer to other jobs.
(c) Economy: The cost of recruiting internal employees is minimal. The enterprise need not incur any
expenditure on informing and inducing its employees to apply.
(d) Motivational value: Internal recruitment is a source of encouragement and motivation for employees. The
employees can look for promotion and transfer with hope and thereby do their jobs well so as to earn the
desired promotion/transfer.
(e) Better evaluation: The employer is in a better position to evaluate those presently employed than outside
candidates. This is because the company maintains a record of the progress, experience and service of its
employees.
(f) Employee loyalty: It promotes loyalty among the employees, for it gives them a sense of job security and
opportunities for advancement.

Disadvantages of Internal Sources of Recruitment

(a) Restricted Choice: Internal recruitment restricts the options and freedom for the enterprise in choosing the
most suitable candidates for the vacancies. It has a narrow base. The enterprise may have to compromise
on quality of its choice of candidates.
(b) Inbreeding: If the enterprise depends too much on internal recruitment, it means that the enterprise denies
itself fresh talent and ‘new blood’ available outside. Existing employees, even if promoted or transferred
may continue to work and behave in the same habitual ways, without any dynamism.
(c) Absence of Competition: In the absence of competition from qualified candidates from outside employees
are likely to expect automatic promotion by seniority as sure prospect. Thus they may lose the drive for
proving their worth.

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 (d) Conflict: There may be chance of conflict and infighting among those employees who aspire for
promotion to the available vacancies. Those who are not promoted are unhappy and their efficiency may
decline.
(e) Inadequate internal sources: There are possibilities that internal sources may “dry up”, and it may be
difficult to find the requisite personnel from within an organization.

(B) External Sources

These Sources lie outside the Organization. They usually include:
(i) New entrants to the labour force, i.e., young, mostly inexperienced potential employees- the college
students
(ii) The unemployed-with a wide range of skills and abilities.
(iii) Retired experienced persons such as mechanics, machinists, welders and accountants;
(iv) Others are not in the labour force, such as married women.
(v) People employed in other organizations seeking a change.

Following are the common external sources:-

(1) Advertising: Advertising in newspapers and periodicals is one of the most important methods of
recruitment today. This is specially so in case of recruitment of management and technical personnel. The
company needing manpower advertises details about the job requirements, salary, perquisites, duties and
responsibilities etc.
(2) Employment Exchange: There is government as well as private employment agencies providing a
nation-wide or area-wise service in matching personnel demand and supply. Employment exchanges are well
regarded particularly in the field of unskilled, semi-skilled and skilled operative jobs. Government of India has
established Public employment exchanges throughout the country. These exchanges provide information
about job vacancies to the job seekers and help employers in identifying suitable candidates. They contain a
data bank of candidates for different types of jobs. Whenever they get requisition/notice from employers, the
concerned candidates are informed. A list of such persons is also sent to the employer. The Employment
Exchanges (Compulsory notification of vacancies) Act, 1959 makes it obligatory for both public sector and
private sector enterprises to fill certain type of vacancies through employment exchanges.
(3) Executive Search Agencies: However in the technical and professional area, private consultancy firms
provide recruitment facilities. Several private consultancy firms, e.g., A.F. Ferguson Associates, Price
Waterhouse, ABC Consultants, etc. perform recruiting function on behalf of client companies by charging fee.
They perform all the functions of recruitment and selection so that the client is relieved of this burden.
(4) Gate Hiring: In the country like ours, where there are a large number of unemployed people, it is usual to
find job-seekers thronging the factory gates. Whenever workers are required, the people who are available at
the gate are recruited in necessary number. This method can be used safely for unskilled workers.
(5) Education institutions: Direct recruitment from colleges and universities is prevalent for the recruitment
of the higher staff. They hold preliminary on-campus interviews and select some students for final interview
mostly at their offices.
(6) Employee Recommendations: In order to encourage existing employees, some concern have made a
policy to recruit further staff only from the applicants introduced and recommended by the employees or the
employees union.
(7) Leasing: To adjust short term fluctuations in personnel needs, the possibilities of leasing personnel for
some specified period may be considered. This system of leasing has been well adopted by the public sector
organizations with the rapid growth of public sector; the acute shortage of managerial personnel has been

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 solved by borrowing the personnel from the government departments. At the end of their term they are given
option to choose either parent services or the present organization.
(8) Waiting Lists: Many organizations prepare waiting lists of candidates who have gone through the
recruitment processes but who have not been employed for the time being. When the need arises such
candidates may be called for employment.
(9) Field Trips: An interviewing team makes trips to towns and cities which are known to contain the kinds
of employees required by the enterprise. Arrival dates and the time and venue of interview are advertised in
advance.
(10) Unsolicited Applications: One of the important sources of recruitment is unsolicited applicants who
send their requests for appointment against a vacancy, if any.
(11) Ex-employees: Ex-employee means persons who have even worked in the enterprise and have left the
organization and now eager to return. Such employees having good record may be preferred.

Advantages of External Sources of recruitment

(a) Wide Options: External sources bring in a large number of applicants. This will permit the enterprise to
have a free hand in making the selection.
(b) Infusion of new blood: The enterprise can expect to get fresh, talented candidates from outside. This
means infusions of new blood and new ideas, into the enterprise represented by outside candidates.
(c) Element of Competition: Internal candidates have to compete with outside candidates for the vacancies.
This is a healthy feature from the point of view of the enterprise.

Disadvantages of External source of recruitment

(a) Frustration among existing employees: Recruitment from outside may cause dissatisfaction and frustration
among the existing employees who aspire for the jobs by promotion or transfer. This is likely to strain the
relations between management and the employees.
(b) High Expense: The process of recruitment of candidates from outside involves considerable expense in
the form of advertising for vacancies, screening and selection.
(c) Time Consuming: External recruitment takes more time than the internal recruitment since the enterprise
has to publicize about the vacancies, or otherwise contact the sources and wait for their response.
(d) Lack of Certainty: The prospective candidates from outside may or may not be good for the enterprise.
There is no guarantee that the enterprise will be able to attract suitable applicants even after advertisement
and other steps.
Meaning of Selection:
Selection is the process of choosing the most suitable persons out of all the applicants. In the selection process
required information is collected about the applicants through a series of steps so as to evaluate their
suitability for the job. It is the process of matching the qualifications of applicants with the job requirements.
It is a process of weeding out unsuitable candidates and finally identify the most suitable candidate. The
selection process divides all the candidates into two categories ------- (a) suitable and (b) unsuitable.
Recruitment comes before selection. Recruitment involves identifying the sources of manpower and
stimulating them to apply for jobs in the organisation. On the other hand, selection is the process of choosing
the best out of those recruited. Recruitment is positive activity as it aims at increasing the number of
applicants for wider choice or for increasing the selection ratio. Selection is negative as it rejects a large
number of applicants to identify the few who are suitable for the job. Recruitment involves prospecting or
searching whereas selection involves comparison and choice of candidates.
Steps in selection process (figure of the pic)

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The selection process consists of a series of steps. At each stage, facts may come to light about the applicants
which may lead to the rejection of the applicants. It is a series of successive hurdles or barriers which an
applicant must cross. These hurdles or screens are designed to eliminate unsuitable or unqualified candidates
at any point in the selection process. These technique is called “successive hurdles”
There is no standard selection procedure to be used for all organisations or for all jobs. The strategy and
method for selecting employees varies from organisation to organisation and from job to job. The complexity
of selection procedure increases with the level and responsibility of the position to be filled. Steps in selection
of employees are explained in detail as under with the help of a diagram.
1. Preliminary interview
Initial screening is done to weed out totally undesirable candidates at the outset. Preliminary interview is a
sorting process in which prospective candidates are given the necessary information about the nature of the
job and the organisation. Necessary information is also collected from the candidates about their education,
skills, experience, salary expected, etc. If the candidate is found suitable, he is selected for further screening.
Preliminary interview avoids unnecessary waiting for the rejected candidate and waste of money or further
processing of an unsuitable candidate.
It is brief and generally carried out by a junior executive at the reception office. It is the first contact of an
individual with the organisation.
2. Application blank
Application form is used to collect information from candidates. Big organisations use different typespf
application forms for different jobs. It provides all the information relevant to selection. It helps to weed out
the candidates who lack in education, experience, etc. It helps in formulation questions to be asked in
interview. It is also called biodata or curriculum vitae. Generally it contains the following informations.
Identification information------- name, address, telephone no., etc,
Personal information ----age, sex, place of birth, marital status, dependents, etc,
Physical characteristics ---- height, weight, eye sight, etc.
Family background
Education--- academic, technical and professional.
Experience --- job held, employers, duties performed, salary drawn, etc
References
Miscellaneous ---- extra curricular activities, hobbies, games, sports, membership in professional bodies, etc.
3. Selection test
A test is a sample of some aspect of an individual’s attitudes, behaviour, personality and performance. It also
provides a systematic basis for comparing the behaviour, performance and attitudes of two persons. It reduces
bias in selection. It is helpful in matching of candidates and the job. Tests may also reveal qualifications
written in application. It reveals that the candidates who have scores above the predetermined cut off points
and who is more successful than those scoring below the cut off points. Tests are useful when the number of
applicants are in large number and it can be used only if it is properly designed and administered. There are
various tests like----
1. Mental or intelligence tests.
2. Mechanical aptitude tests.
3. Psycho-motor or skill tests.
4. Achievement or proficiency tests.
5. Job knowledge tests.
6. Work sample tests.

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 7. Personality tests.
8. Situation tests.
9. Interest tests.
10. Projective tests.
4. Employment interview
An interview is a conversation between two persons. It involves a personal, observational and face to face
appraisal of candidates for employment. It is an essential element of the selection process and no selection is
complete without one or more personal interviews. The information collected through application and test are
cross checked in the interview. It is of three purposes, (a) to obtain information about the background,
education, training, work history and interests of the candidate. (b) to give information to candidate about the
company, the job and human resource policies. (c) to establish a friendly relationship between employer and
the candidate.
5. Medical examination
Applicants who have crossed the above stages are sent for a physical examination either to the company’s
physician or to a medical officer approved for the purpose. Such medical check up is useful for the following
purposes.

It determines whether the candidate is physically fit to perform the job.

It reveals existing disabilities and provides a record of the employee’s health at the time of selection.
It prevents the employment of people suffering from contagious diseases.
It identifies candidates who are otherwise suitable but require specific jobs due to physical handicaps and
allergies.
6. Reference checks
The applicant is asked to mention in his application form, the names and addresses of two or more persons
who know him well. These may be his previous employers, heads of educational institutions or public figure.
The organisation contacts them by mail or telephone if required. They are requested to provide their frank
opinion about the candidate. They are assured that all information supplied will be kept confidential.
7. Final approval
In most of the organisations, selection process is carried out by the human resource department. The decisions
of this department are recommendatory. The candidates listed by the department are finally approved by the
executives of the concerned departments. Employment is offered in the form of an appointment letter
mentioning the post, the rank, the salary grade, the date by which the candidate should join and other terms
and conditions in brief. In some organisations a contract of service on judicial paper is signed by both the
candidate and the representative of the organisation. Appointment is generally made on a probation of one or
two years. After satisfactory performance during this period, the candidate is finally confirmed in the job on
permanent basis.

Figure: Selection Process (figure in the ppt)

Meaning of Employee Training

Training is the process of increasing the knowledge and skills for doing a particular job. It is an organized
procedure by which people learn knowledge and skill for a definite purpose. The purpose of training is
basically to bridge the gap between job requirements and present competence of an employee. Training is

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aimed at improving the behaviour, performance, personality and attitude of a person. It is a never ending
process.
Importance of training
A well planned and well executed training programme can provide the following advantages.
1. Higher productivity: Training helps to improve the level of performance. Trained employees perform
better by using better method of work. Improvements in manpower productivity through training adds to the
development of the nations.
2. Better quality of work: In formal training, the best methods are standardized and taught to the employee.
Uniformity of work methods and procedures helps to improve the quality of product or service. Trained
employees are less likely to make operational mistakes or accidents.
3. Less learning period: A systematic training programme helps to reduce the time and cost involved in
learning. Employees can more quickly reach the acceptable level of performance. They need not waste their
time and efforts in learning through trial and error.
4. Cost reduction: Trained employees make more economical use of materials and machinery. Reduction in
wastage and spoilage together with increase in productivity help to minimize cost of operations per unit.
Maintenance cost is also reduced due to fewer machine breakdown and better handling of equipments. Plant
capacity can be put to the optimum use.
5. Reduced supervision: Well trained employees tend to be self-reliant and motivate. They need less
guidance and control. Therefore, supervisory burden is reduced and the span of supervision can be enlarged.
6. Low accident rate: Trained employees adopt the right methods of working and make use of the prescribed
safety devices. Therefore, the frequency of accidents are reduced. Health and safety of employees can be
improved.
7. High Morale: Proper training can develop positive attitude among employees. Job satisfaction and morale
are improved due to rise in the earnings and job security of employees. Training reduces employee grievances
because opportunities for internal promotion are available to well trained employees.
8. Personal growth: Training enlarges the knowledge and skills of the participants. Therefore, well trained
employees can grow faster in their career. Training prevents obsolescence of knowledge of knowledge and
skills. Trained employees are more valuable asset to the organisation. Training helps to develop people for
promotion to higher posts and to develop future managers.
9. Organisational climate: A sound training programme helps to improve the climate of an organisation.
Industrial relations and discipline can be improved. Therefore, decentralization of authority and participative
management can be introduced. Resistance to change is also reduced. Organisations having regular training
programmes can fulfil their future needs for personnel from internal sources. It also helps employee turnover
and absenteeism. Training is an investment in people, and therefore, systematic training is a sound business
investment.
10.Acceptance for change: The highly motivated employees easily accepts the changes as the organisations
supports them in coping up with the changes and give them necessary training and development.
11. Low employee turnover and absenteeism: As the company provides required training and development
for the employees from time to time, employee turnover and absenteeism will be reduced. The motivated
employees will be working in the organisation with complete zeal and enthusiasm and will also encourage
others to work harmoniously in the organisation.

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 Methods/Techniques of training
Training Methods

Off-the-job Methods
On-the-job Methods

1. Vestibule training
1. Job rotation
2. Role playing
2. Coaching
3. Lecture method
3. Job Instruction
4. Conference or discussion
4.Committee Assignments
5. Programmed instruction

The methods employed for training are explain as under.

On-The-Job Training Methods
This type of training, also known as job instruction training, is the most commonly used method. Under this
method, the individual is placed on a regular job and taught the skills necessary to perform that job. The
trainee learns under the supervision and guidance of a qualified worker or instructor. On the-job training has
the advantage of giving first-hand knowledge and experience under the actual working conditions. While the
trainee learns how to perform a job, he is also a regular worker rendering the services for which he is paid.
The problem of transfer of trainee is also minimized as the person learns on-the-job. The emphasis is placed
on rendering services in the most effective manner rather than learning how to perform the job. On-the-job
training methods include job rotation, coaching, job instruction or training through step-by-step and
committee assignments.
Advantages:
1. The main advantage of OJT is that the trainee learns on the actual machine in use and in the real
environment of the job. He is therefore better motivated to learn and there is no problem of transfer of training
skills to the job.
2. Secondly this method is very economical because no additional space, equipment, personnel or other
facilities are required for training. The trainee produces while he learns.
3. Thirdly the trainee learns the rules regulations and procedures by observing their day-to-day applications.
4. Fourthly this is the most suitable method for teaching knowledge and skills which can be acquired through
personal observation in a relatively short time period.

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5. Fifthly line supervisors take an active part in training their subordinates.
Disadvantages:
1. In on the job training the learner finds it difficult to concentrate due to noise of the actual workplace. 2.
Secondly this method is often haphazard and unorganized. The superior or experienced employee may not be
a good trainer.
3. Thirdly in this method the trainee may cause damage to costly equipment and materials.
1. Job Rotation: This type of training involves the movement of the trainee from one job to another. The
trainee receives job knowledge and gains experience from his supervisor or trainer in each of the different job
assignments. Though this method of training is common in training managers for general management
positions, trainees can also be rotated from job to job in workshop jobs. This method gives an opportunity to
the trainee to understand the problems of employees on other jobs and respect them.
2. Coaching: The trainee is placed under a particular supervisor who functions as a coach in training the
individual. The supervisor provides feedback to the trainee on his performance and offers him some
suggestions for improvement. Often the trainee shares some of the duties and responsibilities of the coach and
relieves him of his burden. A limitation of this method of training is that the trainee may not have the freedom
or opportunity to express his own ideas.
3. Job Instruction: This method is also known as training through step by step. Under this method, the trainer
explains to the trainee the way of doing the jobs, job knowledge and skills and allows him to do the job. The
trainer appraises the performance of the trainee, provides feedback information and corrects the trainee.
4. Committee Assignments: Under the committee assignment, a group of trainees are given and asked to
solve an actual organisational problem. The trainees solve the problem jointly. It develops team work.

Off-the-Job Methods
Under this method of training, the trainee is separated from the job situation and his attention is focused upon
learning the material related to his future job performance. Since the trainee is not distracted by job
requirements, he can place his entire concentration on learning the job rather than spending his time in
performing it. There is an opportunity for freedom of expression for the trainees. Companies have started
using multimedia technology and information technology in training.
Off-the-job training methods are as follows:
1. Vestibule Training: In this method, actual work conditions are simulated in a class room. Material, files
and equipment which are used in actual job performance are also used in training. This type of training is
commonly used for training personnel for clerical and semi-skilled jobs. The duration of this training ranges
from days to a few weeks. Theory can be related to practice in this method.
2. Role Playing: It is defined as a method of human interaction that involves realistic behaviour in imaginary
situations. This method of training involves action, doing and practice. The participants play the role of certain
characters such as the production manager, mechanical engineer, superintendents, maintenance engineers,
quality control inspectors, foremen, workers and the like. This method is mostly used for developing inter-
personal interactions and relations.
3. Lecture Method: The lecture is a traditional and direct method of instruction. The instructor organizes the
material and gives it to a group of trainees in the form of a talk. To be effective, the lecture must motivate and
create interest among the trainees. An advantage of the lecture method is that it is direct and can be used for a
large group of trainees. Thus, costs and time involved are reduced. The major limitation of the lecture method
is that it does not provide for transfer of training effectively.

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4. Conference or Discussion: It is a method in training the clerical, professional and supervisory personnel.
This method involves a group of people who pose ideas, examine and share facts, ideas and data, test
assumptions and draw conclusions, all of which contribute to the improvement of job performance.
Discussion has the distinct advantage over the lecture method, in that the discussion involves two-way
communication and hence feedback is provided. The participants feel free to speak in small groups. The
success of this method depends on the leadership qualities of the person who leads the group.
5. Programmed Instruction: In recent years, this method has become popular. The subject matter to be
learned is presented in a series of carefully planned sequential units. These units are arranged from simple to
more complex levels of instructions. The trainee goes through these units by answering questions or filling the
blanks. This method is expensive and time consuming.

Advantages:
1. The main advantage of this method is that it combines theory and practice.
2. The trainee acquire skills which are valuable in the job market.
3. Apprenticeship programme provide skilled workforce to industry.
Disadvantage:
1. It is time consuming and expensive.
2. Many employee leave the training programme midways as the training period ranges from one year to five
year.

DISCLAIMER: This study material is prepared by Dr. Joe Mary George. The basic objective is to
supplement teaching and discussion in the classroom in the subject.
Students are required to go for extra reading in the subject through library work.

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