HRM Ch-4 Print

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Recruitment

• Recruitment is the process of locating potential candidate for selection.

• Recruitment is the process of finding and attracting capable applicants for


employment.

• Recruitment is the process of searching for prospective employees and


stimulating and encouraging them to apply for jobs in an organization.
Dale Yoder
• Recruitment is a positive activity. It is positive because it stimulates people
to apply for jobs to increase the hiring ratio. The process begins when the
new recruits are sought and ends when their applications are submitted.
Flippo
Recruitment is a two way sheet. Both the recruiter and recruitee have a right to
choose each other
Characteristics of Recruitment

It is a positive activity.

Process of finding and attracting capable


applicants.

The process begins when the new recruits are


sought

The process ends when new recruits applications


are submitted.

It is a two way process


The Recruitment and Selection Process
1. Decide what positions to fill through personnel planning
and forecasting.
2. Build a candidate pool by recruiting internal or external
candidates.
3. Have candidates complete application forms and
undergo initial screening interviews.
4. Use selection tools to identify viable candidates.
5. Decide who to make an offer to, by having the
supervisor and others interview the candidates.

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FIGURE 5–1 Steps in Recruitment and Selection Process

The recruitment and selection process is a series of hurdles aimed at selecting the best candidate for the job.

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FIGURE 5–2 Linking Employer’s Strategy to Plans

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• The term job posting refers to publicizing an open job to
employees through a firm's intranet or on bulletin boards.
Outside candidates are recruited through advertisements,
employment agencies, executive recruiters, and online job
boards, such as Monster.com and CareerBuilder.com.
• The purpose of an applicant tracking system is to help
employers attract, gather, screen, compile, and manage outside
applicants. Such an online system is needed because Web-
based ads tend to generate a large number of applicants.
• Experienced advertisers use AIDA when constructing ads,
which stands for attention, interest, desire, and action. An ad
should attract attention, develop interest in the job, create
desire for the job, and prompt readers to take action. Although
benefits and salary may be mentioned in ads, implying long-
term benefits is not an element of the AIDA guide.
Planning and Forecasting
• Employment or Personnel Planning
 The process of deciding what positions the firm
will have to fill, and how to fill them.
• Succession Planning
 The process of deciding how to fill the company’s
most important executive jobs.
Succession planning entails three stages:
1) Identifying key needs (Identify what the
company's future needs will be and formulate job
description and job specification for them. The key
needs are based on the company's future plans

© 2008 Prentice Hall, Inc. All rights reserved. 5–6


• 2) Creating (identifying potential internal
candidates for the future key positions and) and
assessing (providing them developmental
experiences to be viable candidates) the
candidates. Employers develop candidates through
internal training, cross-functional experiences, job
rotation, external training, and global/regional
assignments. Skills inventories are records that list
employees' qualifications. &
• 3) Selecting those who will fill the key positions.
• What to Forecast?
• Overall personnel needs
• The supply of inside candidates
• The supply of outside candidates
Paying continuous attention to workforce planning
issues is called predictive workforce monitoring.
Forecasting Personnel Needs

Forecasting
Tools

Trend Analysis Ratio Analysis Scatter Plotting

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• A trend analysis is the study of a firm's variation of past employment
levels over a period of years to predict future needs. The purpose of a
trend analysis is to identify trends that might continue into the future. A
trend analysis can provide firms with an initial estimate of future
staffing needs.
• A ratio analysis is a forecasting technique for determining future staff
needs by using ratios between, for example, Causal factor (sales
volume) and the number of employees required. For example, if a
salesperson usually generates $500,000 in sales, and a firm hopes to
produce an extra $3 million in sales, then six new salespeople would
need to be hired.1:5,00,00, then ?: 30,00,000
• A scatter plot graphically illustrates the relationship between two
variables such as sales and your firm's staffing levels.
FIGURE 5–3
Determining the
Relationship
Between Hospital
Size and Number
of Nurses

Note: After fitting the


line, you can project
how many employees
you’ll need, given your
projected volume.

Size of Hospital Number of


(Number Registered
of Beds) Nurses
200 240
300 260
400 470
500 500
600 620
700 660
800 820
900 860

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Using Computers to Forecast Personnel
Requirements
• Computerized Forecasts
 Software that estimates future staffing needs by:
 Projecting sales, volume of production, and
personnel required to maintain different volumes
of output.
Forecasting staffing levels for direct labor
(assembly worker), indirect staff (secretaries), and
exempt staff (executives).
 Creating metrics for direct labor hours and three
sales projection scenarios—minimum, maximum,
and probable.
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10
Forecasting the Supply of
Inside Candidates

Qualification
Inventories

Manual
Computerized
Systems and
Information
Replacement
Systems
Charts

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• Qualifications or skills inventories are used by managers
when determining which employees should be promoted
or transferred. A skills inventory contains data on
employees' performance records, career and development
interests, languages, and special skills, educational
background, and promotability.
• Smaller firms often use personal inventory and
development record form to track employee qualifications.
-Personnel replacement charts, position replacement cards,
and skills inventory software are all tools for tracking and
maintaining qualifications inventories.
• Personnel replacement charts are company
records showing present performance and
promotability of inside candidates for a firm's top
positions. Such charts show the present
performance and promotability for each position's
potential replacement.
• Position replacement card is a card prepared for
each position in a company to show possible
replacement candidates and their qualification.
FIGURE 5–4
Management
Replacement
Chart Showing
Development
Needs of
Potential Future
Divisional Vice
Presidents

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• Computer skill inventories-Large employers
cannot track hundreds and thousands of
employees manually and they computerize this
information using various package software
systems e.g. HRIS-an employee’s skills
inventories might automatically update each
time he is trained or appraised.
Forecasting Outside Candidate Supply
• Factors In Supply of Outside Candidates
 General economic conditions
 Expected unemployment rate

• Sources of Information

Periodic forecasts in business publications
 Online economic projections

India. Congressional Budget Office (CBO)

iNdian Department of Labor’s O*NET ™
 Bureau of Labor Statistics (BLS)
 Other agencies and private sources
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15
• A recruiting yield pyramid is used by employers
to calculate the number of applicants a firm
must generate in order to hire the required
number of new employees. A recruiting yield
pyramid is the historical arithmetic relationship
between recruitment leads and invitees, invitees
and interviews, interviews and offers made, and
offers made and offers accepted.
FIGURE 5–7 Recruiting Yield Pyramid

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21
• 8 (New Hire)
• 20 (Offers made)
• 50 (Candidate’s interviewed)
• 100 (Candidate’s invited)
• 200 (Applicants)
FIGURE 5–6 Sample Acceptable Questions Once Conditional Offer Is Made

1. Do you have any responsibilities that conflict with the job vacancy?
2. How long have you lived at your present address?
3. Do you have any relatives working for this company?
4. Do you have any physical defects that would prevent you from
performing certain jobs where, to your knowledge, vacancies exist?
5. Do you have adequate means of transportation to get to work?
6. Have you had any major illness (treated or untreated) in the past 10
years?
7. Have you ever been convicted of a felony or do you have a history of
being a violent person? (This is a very important question to avoid a
negligent hiring or retention charge.)
8. What is your educational background? (The information required here
would depend on the job-related requirements of the position.)

© 2008 Prentice Hall, Inc. All rights reserved. 5–


18
Sources of Recruitment

Sources of Recruitment

Internal Sources Outside/External Sources


Sources of Recruitment (Internal Sources)
• Internal Sources of Recruitment
– Internal Sources of Recruitment includes hiring from within the
organization.
– In other words it means filling positions with inside candidates.

Advantages


Better knowing candidates.

Current employee can be more committed to the company.

Employee morale may rise

Require less orientation and training

Less expensive

Disadvantages


Reject candidates may be discontented.

Sometimes waste of time.

Political Influence

Organization deprived from fresh ideas
Sources of Recruitment (External Sources)
• External Sources of Recruitment
– External Sources of Recruitment includes hiring from outside the organization.
– All organizations have to use external sources for recruitment to higher positions
when existing employees are not suitable. More persons are needed when
expansions are undertaken.

Advantages


Can have the opportunity to inject new ideas into operation.

Helps in sustaining competitive advantage.

Improves knowledge and skills of the organization.

Disadvantages


It is costly.

Causes brain drain.

Increases employee turnover rate.

Demoralize existing employees.
Sources of Recruitment (External Sources)
• Informal Recruiting
– Many job openings aren’t publicized at all, jobs are created and become
available when employers serendipitously come across the right candidates.

• Recruiting Via Internet


– Most employers recruit through the organization’s won websites, or use job
boards.
– Intelligent automated resume screening is another trend. Employer use
online tracking software to identify likely candidates based on resume key
words.
– Organization use applicant tracking system which is the online systems that
helps employers attract, gather, screen, compile, and manage applicant.
Sources of Recruitment (External Sources)
• Social Media
– Recruiting is also shifting from online job boards to social
networking sites, such as Facebook and LinkedIn.
– Many firms uses its Facebook and LinkedIn pages to
announce job openings.

• On-demand Recruiting Service (ODRS)


– Services that provides short term specialized recruiting to
support specific projects without the expense of retaining
traditional search firms.
– In other words ODRS are recruiters who are paid by the
hour or project, instead of a percentage fee , to support
specific project.
Sources of Recruitment (External Sources)
• Advertisement
– It is a method of recruitment frequently used for skilled workers, clerical and
higher staff.
– Advertisement can be given in newspapers and professional journals. These
advertisements attract applicants in large number of highly variable quality.
– Preparing good advertisement is a specialized task. If a company wants to
conceal its name, a ‘blind advertisement’ may be given asking the applicants to
apply to Post Bag or Box Number or to some advertising agency.

• Employment Agencies
– Employment agencies can be public or private.
– Employment agencies are important sources of clerical, white-collar and
managerial personnel.
– They charge fee for each applicant they place
– Most are “fee-paid job” in which employer pays the fee.
• Executive recruiters or headhunters are special
employment agencies retained by employers
seeking top executives. Temporary staffing would
be less beneficial to a firm seeking a top
executive. Although Internet sites are popular
sources for finding employees, headhunters are
more appropriate for filling top positions in a firm.
Sources of Recruitment (External Sources)
• College Recruiting
– Direct recruitment from educational institutions for certain jobs which require
technical or professional qualification has become a common practice.
– A close liaison between the company and educational institutions helps in getting
suitable candidates.
– The students are spotted during the course of their studies.
– Junior level executives or managerial trainees may be recruited in this way.
Improved Productivity Through HRIS:
An Integrated Technology Approach to Recruiting

Requisition Management System

Integrated Recruiting Solution


Integrated Employee
Recruitment System
Screening Services

Hiring Management

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Recruiting A More Diverse Workforce

Single Parents

The Disabled Older Workers

Minorities and
Welfare-to-Work
Women

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Developing and Using Application Forms

Uses of Application
Information

Applicant’s Applicant’s Applicant’s Applicant’s


education and progress and employment likelihood of
experience growth stability success

© 2008 Prentice Hall, Inc. All rights reserved. 5 –44


FIGURE 5–13
Employment
Application

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Application Forms and the Law

Education
Achievements

Housing Arrest
Arrangements Record

Areas of Personal
Information Notification in
Marital
Case of
Status
Emergency

Physical Memberships in
Handicaps Organizations

© 2008 Prentice Hall, Inc. All rights reserved. 5 –46


Recruitment Process

• Decision is made Whether Recruitment is Necessary


01.

• Job Description and Specification is Prepared


02.

• Advertisement Plan is Made


03.

• Application Forms are Gathered


04.

• References are Requested


06.
Common Mistakes in Recruitment

Failing to define the position being offered

Underestimating the importance of corporate culture

Taking sole responsibility for hiring

Failing to prepare for interview

Biasness

Make the process over expensive


Selection
• Selection is the process of selecting a qualified person who can successfully
do a job and deliver valuable contributions to the organization.

• Selection is the process of picking up individuals (out of the pool of job


applicants) with requisite qualifications and competence to fill jobs in
the organization.

• “Selection is the process of differentiating between applicants in order to


identify and hire those with a greater likelihood of success in a job.”
Characteristics of Selection

It is a process of selecting a qualified person

It depends on job analysis

It differentiates between applicants

It is a negative activity

It is a two way process


The Basis of Testing & Selecting Employees

Reliability
Criterion Validity
Basis of Testing
Content Validity
Validity
Construct Validity
The Basis of Testing & Selecting Employees
Reliability

• Reliability test is one that yields consistent scores when a person takes two alternative forms of
the tests or when he/she takes the same test on two or more different occasion.
• Reliability refers to how dependably or consistently a test measures a characteristic
• Reliability test is measuring something consistently.
• Test reliability can be measured in tow types:
• Test-retest reliability: test two times with the same question set
• Equivalent form estimate: Using two different tests to measure the same thing.
• Internal consistency: Using a multi-item test where all the items are intended to measure the
same variable.

Validity

• Validity refers to what characteristic the test measures and how well the test measures that
characteristic
• it refers to the correctness of the conclusion that we can make based on the test.
• Criterion Validity: It is a type of validity based on showing that scores on the test related to job
performance.
• Content validity: it is a test that demonstrate that the content of a selection procedure is
representative of important aspects of performance on the job.
• Construct Validity: a test is construct valid when it demonstrate that the selection procedure
measures a construct (morale & honesty) and that construct is important to job performance. that
this characteristic is important to successful performance on the job.
How to Validate a Test

Related
Cross
Analyze Choose the Administe Test
Validate &
the Job Tests r the Test Scores &
Revalidate
Criterion
The Basis of Testing & Selecting Employees
Analyze the Job
• The first step is to analyze the job and write job description and job
specifications. The aim here is to specify human traits and skills one
believe are required for job performance.

Choose the Tests


• The next step is to answer what test are available and where to get them to
test the predictors? Organizations usually don’t start with just one test,
instead they choose several test and combine them into a test battery.
Sometimes organization hire professional for the choose of test or collect it
from virtually any purchaser.

Administer the Test


• One way to administer test is to compare current employees test scores
with their current performance is known as concurrent validation.
• Predictive validation is second and more dependable way to validate. Here
one administer the test to applicant before hiring them, then hiring these
applicant only using exiting selection techniques. After they have been on
the job for some time then measure their performance & compare it to
their earlier test. After that one can determine whether he/she could have
used their performance on the new test to predict their performance.
The Basis of Testing & Selecting Employees

Related Test Scores & Criterion


• It is to ascertain if there is a significant relationship between test
scores and performance. The usual method is to determine the
statistical relationship between scores on the test and job performance
using correlation analysis.

Cross Validate & Revalidate


• Before using the test can check it by cross-validating through performing
step 3 and 4 on a new sample of employees.
Basis Categories of Selection Test
Tests of Cognitive Abilities
• Cognitive tests include tests of general reasoning ability and tests of
specific mental abilities like memory and inductive reasoning. It also tests
persons IQ and specific mental abilities such as deductive reasoning ,
verbal comprehension, memory, and numerical ability.
Tests of Motor & Physical Abilities
• Here one might want to measure motor abilities such as finger dexterity,,
manual dexterity, reaction time.
• Test of physical abilities include static strength (lifting weights), dynamic
strength (pull-ups), body coordination (jumping rope), and stamina.
Measuring Personality
• Personality test measure basic aspects of an applicant’s personality, such as
introversion, stability, and motivation. Most people are hired based on their
qualification and most are fired because of attitude, motivation, and
temperament.
Achievement Test
• Achievement tests measures what someone has learned. Most of the tests in
school are achievement tests
Recruitment and Selection Process

Recruitment
Process

Selection
Process
Background Investigations and Reference Checks

Former Employers
Former Employers

Current Supervisors
Current Supervisors

Sources of Commercial Credit


Sources of Commercial Credit
Information Rating Companies
Information Rating Companies

Written References
Written References

Social Networking Sites


Social Networking Sites
Difference between Recruitment & Selection

Basis Recruitment Selection


Meaning It is an activity of establishing contact It is a process of picking up more
between employers and applicants. competent and suitable employees.
Objective It encourages large number of It attempts at rejecting unsuitable
Candidates for a job. candidates.
Process It is a simple process. It is a complicated process.
Hurdles The candidates have not to cross over Many hurdles have to be crossed.
many hurdles.
Approach It is a positive approach. It is a negative approach.
Sequence It proceeds selection. It follows recruitment.
Economy It is an economical method. It is an expensive method.
Time Less time is required. More time is required.
Consuming

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