Recruitment and Selection(As per the New Syllabus of Mumbai University for S.Y. BMS, Semester III)

Vaneeta RaneyM.M.S, M.Com., NET (MGMT),

B.M.M. Course Coordinator & Corporate Trainer.S.I.E.S. College ASC,

Sion (W), Mumbai.

Dr. Veena PrasadPh.D., M.Com., M.Phil., M.B.A.,

Co-ordinator – Banking and Insurance Department,SIWS College, Wadala,

Mumbai.

Booma HalpethB.Sc., M.B.A., M.D.B.A., P.G.D.R.M., NET,

Assistant Professor,SIA College of Higher Education,

Dombivali (E).

Arti SharmaMBA, M.Phil.,

Assistant Professor,Viva Institute of Management & Research,

Virar.

Byshi PanikarM.Com., B.Ed., PGDHRM,BMS & BBI Co-ordinator,

Patuck Gala College of Commerce & Management,Santacruz (E)

MUMBAI NEW DELHI NAGPUR BENGALURU HYDERABAD CHENNAI PUNE LUCKNOW AHMEDABAD ERNAKULAM BHUBANESWAR INDORE KOLKATA GUWAHATI

© AuthorsNo part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by anymeans, electronic, mechanical, photocopying, recording and/or otherwise without the prior written permission of thepublisher.

First Edition : 2015

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ACKNOWLEDGMENT

With the blessings and grace of our “Puj. Sai Dr. Rochaldas Sahibji”, I wish to personally thankfor their latent contributions to my inspiration and knowledge.

I would like to express my gratitude to the many people who saw me through this book; to all thosewho provided support, talked things over, read, wrote, offered comments, allowed me to quote theirremarks and assisted in the editing, proof-reading and design.

I would like to thank S.K. Srivastav, Nimisha, Archana, Sunanda, Deepak, Rakesh and Rajesh forhelping me in the process of selection and editing. Thanks to Pandeyji, my publisher, who encouraged me.

I beg forgiveness of all those who have been with me over the course of the years, my parentsSmt. Nisha and Shri Premkumar Raney with my little princesses Kanchan and Sanam, whose names I havefailed to mention.

Please share your feedback. It improves everyone’s experience with the content and it opens up theopportunity for multi-directional conversation.

My deepest regards and gratitude to Shiv Baba – Incorporeal God Father ‘Shiva’ throughBrahma – Baba of Prajapati Brahamkumari Ishwariya Vishwavidyalaya and B.K. Meenakshi Behen.

Vaneeta Raney

I would like to express my deepest thanks to the Management of SIWS NR Swamy College ofCommerce and Economics, Mumbai, for their constant support in bringing out this book. Last but not theleast, it’s the students who had always encouraged me in this pursuit.

My thanks and admiration goes to the talented Editorial and Production people who have done awonderful job to transform the manuscript into a handsome book. I would like to express heartfelt gratitudeto all my Colleagues and Library Staff, who have helped me in writing the book.

My sincere thank to my parents, husband and my lovely kids for their support and providingunceasing encouragement, precious, erudite suggestions and directions, constant and untiring guidance.

I would like to express my sincere gratitude and thanks to Himalaya Publishing House Pvt. Ltd. forsupporting me in the publication of this book.

Dr. Veena Prasad

I would like to thank my husband, son and my parents for encouraging me and supporting me. I thankall my students who have always inspired me and helped me to identify means to improve myself as ateacher.

I would like to express my heartfelt gratitude to all those who motivated me to write this book. I thankS.K. Shrivastav, Nimisha, and Archana for helping me and supporting me. I thank Himalaya PublishingHouse Pvt. Ltd. for giving me this opportunity to co-author this book.

Booma Halpeth

I am grateful to those who have relentlessly provided the necessary support, the right kind ofinformation and the expertise required for achieving the mission. During the intervening period, I cameacross some wonderful people in the form of relatives, friends and acquaintances from which I have learntimmensely. While it is not possible to name them individually, I would like to express a deep sense ofgratitude towards the publisher Mr. Shrivastav Sir. My sincere thanks is to my husband Shrinidhi Sharmaand my two kids Soham and Karthik who has contributed a lot towards the book. I would also like toappreciate all those who help me to gather the information and complete this book.

Arti Sharma

Preface

Recruitment of talented employees is an essential part of any company’s ability to maintainsuccess and ensure the achievement of standards within an organisation.

As the world economy experiences significant improvements in employment, slowly growingand becoming more stable in the prolonged wake of The Great Recession, spurred job creation couldusher in innovation for recruiters. Across the globe, as more businesses look to hire new employeesquickly so they can meet the rising demands of their operations, HR personnel appear to be turning toadvanced tools that will help them make their recruiting practices more efficient.

While the Internet alone has proved to be an effective solution for companies hoping to hire,organisations are now embracing mobility to ensure that they make the applications process readilyavailable to viable prospects, which could allow companies to take on the talent they need withoutexpending a substantial amount of resources.

As recruiting innovations continue to grow, we are excited about the new and emergingtechnologies and how they will disrupt our industry. In today’s recruiting landscape, businesses havemore choices than ever when it comes to talent acquisition and recruitment solutions. As employersand recruiters look to the most effective channels for sourcing the most qualified talent, it is importantthat they also assess their own internal hiring processes.

The composition of the handbook is as per the prescribed syllabus of Mumbai University, forSecond Year BMS Semester III students and instructors at large. It shall also prove valuable toHR executives for in-depth references and study for enhancing their conceptual understanding.

Authors

Syllabus

RECRUITMENT AND SELECTION[60 Lectures: 3 Credit]

Learning Objectives:1. The objective is to familiarise the students with concepts and principles, procedure of

Recruitment and Selection in an organisation.2. To give an in-depth insight into various aspects of Human Resource Management and make

them acquainted with practical aspect of the subject.

Unit No Name of the Topic No. of Lectures

Unit 1 1. Concepts of Recruitment – Meaning, Objectives, Scope andDefinition, Importance and Relevance of Recruitment.

2. Job Analysis – Concept, Specifications, Description, Process andMethods, Uses of Job Analysis.

3. Job Design – Introduction, Definition, Modern Techniques, FactorsAffecting Job Design, Contemporary Issues in Job Designing.

4. Source or Type of Recruitment – (a) Direct/Indirect, (b) Internal/External.Internal – Notification, Promotion Types, Transfer Types,Reference.External – Campus Recruitment, Advertisement, Job Boards,Website/Portals, Internship, Placement.Consultancies – Traditional (In-house, Internal Recruitment, OnCampus, Employment and Traditional Agency). Modern(Recruitment Books, Niche Recruitments, Internet Recruitment,Service Recruitment, Website and Job, Search Engine, SocialRecruiting and Candidate Paid Recruiters).

5. Technique of Recruitment – Traditional vs Modern Recruitment6. Evaluation of Recruitment – Outsourcing Programme.

18

Unit 2 1. Selection – Concept of Selection, Criteria for Selection, Process,Advertisement and Application (Blank Format).

2. Screening – Pre and Post Criteria for Selection, Steps of Selection3. Interviewing – Types and Guidelines for Interviewer and

Interviewee, Types of Selection Tests, Effective InterviewingTechniques.

4. Selection Hurdles and Ways to Overcome Them.

15

Unit 3 1. Induction – Concept, Types – Formal/Informal, Advantages ofInduction, How to Make Induction Effective.

2. Orientation and Onboarding – Programme, Types and Process.

15

3. Socialisation – Types – Anticipatory, Encounter, Setting in,Socialisation Tactics.

4. Current Trends in Recruitment and Selection Strategies with respectto Service, Finance, IT, Law and Media Industry.

Unit 4 1. Preparing Bio-data and C.V.2. Social and Soft Skills Group Discussion and Personal Interview,

Video and Tele Conferencing Skills.3. Presentation and Negotiation Skills, Aesthetic Skills.4. Etiquettes – Different Types and Quitting Techniques.5. Exit Interview – Meaning, importance.

12

.

Paper Pattern

Maximum Marks: 75Time: 2.5 Hours

Note: 1. All questions are compulsory subject to internal choice.

2. Figures to right indicate full marks.

Q.1. Attempt any 2 Questions (15 Marks)(a) (7.5 Marks)(b) (7.5 Marks)(c) (7.5 Marks)

Q.2. Attempt any 2 Questions (15 Marks)(a) (7.5 Marks)(b) (7.5 Marks)(c) (7.5 Marks)

Q.3. Attempt any 2 Questions (15 Marks)(a) (7.5 Marks)(b) (7.5 Marks)(c) (7.5 Marks)

Q.4. Attempt any 2 Questions (15 Marks)(a) (7.5 Marks)(b) (7.5 Marks)(c) (7.5 Marks)

Q,5. Case Study (15 Marks)

Contents

Unit I1. Concepts of Recruitment — Meaning, Importance and Relevance of Recruitment 1 – 72. Job Analysis (Concepts, Specifications, Description, Process,

Methods and Uses) 8 – 163. Job Design (Definition, Modern Techniques, Factors Affecting Job Design,

Contemporary Issues) 17 – 294. Sources or Types of Recruitment (Direct and Indirect, Internal and External) 30 – 415. Techniques of Recruitment (Traditional vs Modern) 42 – 496. Evaluation of Recruitment (Outsourcing Programme) 50 – 56

Unit II7. Selection 57 – 718. Interview 72 – 83

Unit III9. Induction – Concept, Types – Formal/Informal 84 – 91

10. Orientation and Onboarding – Programme, Types and Process 92 – 10211. Current Trends in Recruitment and Selection Industry 103 – 108

Unit IV12. Preparing Bio-data and C.V. 109 – 11713. Social Skills, Group Discussion and Personal Interview Skills 118 – 13314. Presentation and Negotiation Skills, Aesthetic Skills 134 – 14315. Etiquette and Quitting Techniques 144 – 15416. Exit Interview 155 – 157

References 158 – 158

UNIT – I

Introduction

Successful human resource planning should identify our human resource needs. Once we knowthese needs, we will want to do something about meeting them. The next step in the acquisitionfunction, therefore, is recruitment. This activity makes it possible for us to acquire the number andtypes of people necessary to ensure the continued operation of the organisation.

Hallett says, “It is with people that quality performance really begins and ends.” Robert Helleralso says, “If people of poor calibre are hired, nothing much else can be accomplished and Gresham’slaw will work: the bad people will drive out the good or cause them to deteriorate.”

Recruiting is the discovering of potential candidates for actual or anticipated organisationalvacancies. Or, from another perspective, it is a linking activity — bringing together those with jobs tofill and those seeking jobs.

Recruitment: Meaning and DefinitionRecruitment forms a step in the process which continues with selection and ceases with the

placement of the candidate. It is the next step in the procurement function, the first being themanpower planning. Recruiting makes it possible to acquire the number and types of people necessaryto ensure the continued operation of the organisation. Recruiting is the discovering of potentialapplicants for actual or anticipated organisational vacancies.

According to Edwin B. Flippo, “Recruitment is the process of searching for prospectiveemployees and stimulating them to apply for jobs in the organisation.”

According to Lord, “Recruitment is a form of competition. Just as corporations compete todevelop, manufacture, and market the best product or service, so they must also compete to identify,attract and hire the most qualified people. Recruitment is a business, and it is a big business.”

Chapter 1

Concepts of Recruitment —

Meaning, Importance and Relevanceof Recruitment

In the words of Dale Yoder, “Recruiting is a process to discover the sources of manpower tomeet the requirements of the staffing schedule and to employ effective measures for attracting thatmanpower in adequate numbers to facilitate effective selection of an efficient working force.”

According to Werther and Davis, “Recruitment is the process of finding and attracting capableapplicants for employment. The process begins when new recruits are sought and ends when theirapplications are submitted. The result is a pool of applicants form which new employees are selected.”

Dales S. Beach writes, “Recruitment is the development and maintenance of adequate manpowerresources. It involves the creation of a pool of available labour upon whom the organisation candepend when it needs additional employees.”

Thus, recruitment process is concerned with the identification of possible sources of humanresource supply and tapping those sources. In the total process of acquiring and placing humanresources in the organisation, recruitment falls in between different sub-processes as shown in picture.

Fig. 1.1: Recruitment to Human Resource Acquisition Process

Process of RecruitmentRecruitment process passes through the following stages:Recruitment process begins when the personnel department receives requisitions for recruitment

from any department of the company. The personnel requisitions contain details about the position tobe filled, number of persons to be recruited, the duties to be performed, qualifications expected fromthe candidates, terms and conditions of employment and the time by which the persons should beavailable for appointment etc.

Locating and developing the sources of required number and type of employees. Identifying the prospective employees with required characteristics. Developing the techniques to attract the desired candidates. The goodwill of an organisation

in the market may be one technique. The publicity about the company being a goodemployer may also help in stimulating candidates to apply. There may be others of attractivesalaries, proper facilities for development etc.

Evaluating the effectiveness of recruitment process.

Human ResourcePlanning

Job Analysis

Recruitment

Selection

Placement

According to Scott, Clothier and Spriegel the need for recruitment arises out of the followingsituations:

Vacancies created due to expansion, diversification, and growth of business.

An increase in the competitive advantage of certain concerns, enabling them to get more ofthe available business than formerly.

An increase in business arising from an upswing during the recovery period of a businesscycle. Vacancies created due to transfer, promotion, retirement, termination, permanentdisability or death.

The normal population growth, which requires increased goods and services to meet the needsof the people.

A rising standard of living, which requires more of the same goods and services as well as thecreation of new wants to be satisfied.

According to Famularo, personnel recruitment process involves five elements, viz., arecruitment policy, a recruitment organisation, a forecast of manpower, the development of sources ofrecruitment, and different techniques used for utilising these sources, and a method of assessing therecruitment programme. The explanation of these is described below:

Fig. 1.2: Place of Recruitment in Selection System

Human ResourcePlanning

Job AnalysisJob Description

Job Specification Recruitment Selection Placement

Identifying Sourcesof PotentialEmployees

Search forProspectiveEmployees

EvaluatingRecruiting

Effectiveness

PersonnelResearch

InternalSources

Job Posting

Upgrading inSame Position

Transferring toNew Job

Prompting toHigher

Responsibilities

Evaluating forSelection

EmployeeReferrals

Advertising

Scouting

External Sources

1. Recruitment Policy: It specifies the objectives of recruitment and provides a framework forthe implementation of the recruitment programme. It also involves the employer’scommitment to some principles as to find and employ the best qualified persons for each job,to retain the most promising of those hired, etc. It should be based on the goals, needs andenvironment of the organisation.

2. Recruitment Organisation: The recruitment may be centralised like public sector banks ordecentralised. Both practices have their own merits. The choice between the two will dependon the managerial philosophy and the particular needs of the organisation.

3. Sources of Recruitment: Various sources of recruitment may be classified as internal andexternal. These have their own merits and demerits.

4. Methods of Recruitment: Recruitment techniques are the means to make contact withpotential candidates, to provide them necessary information and to encourage them to applyfor jobs.

5. Evaluation of Recruitment Programme: The recruitment process must be evaluatedperiodically. The criteria for evaluation may consist of cost per applicant, the hiring ratio,performance appraisal, tenure of stay, etc. After evaluation, necessary improvements shouldbe made in the recruitment programme.

Recruitment PolicyAs Yoder et al observe recruitment policy spells out the objectives of the recruitment and

provides a framework for implementations of the recruitment programme in the form of procedures. Itmay involve a commitment to broad principles such as filling vacancies with the best qualifiedindividuals. The recruitment policy may embrace several issues such as the extent of promotion fromwithin, attitudes of enterprise in recruiting old, handicapped, and minor individuals, minority groupmembers, part-time employees and relatives of present employees. In addition, the recruitment policymay also involve the organisation system to be developed for implementing the recruitmentprogramme and procedures to be employed. Explicitly, an organisational system is a function of thesize of an enterprise. In smaller enterprises, there may be merely informal recruiting procedures andthe line official may be responsible to handle this function along with their usual responsibilities. Onthe other hand, in larger organisations, there is usually a staff unit attached with personnel or anindustrial relations department designated as employment or recruitment office. This specialisation ofrecruitment enables staff personnel to become highly skilled in recruitment techniques and theirevaluation. However, recruitment remains the line responsibility as far as the personnel requisitionforms are originated by the line personnel, who have also the final word in the acceptance or rejectionof a particular applicant. Despite this, the staff personnel have adequate freedom in respect of sourcesof manpower to be tapped and the procedure to be followed for this purpose.

Recruitment policy covers the following areas: To prescribe the degree of emphasis. Inside the organisation or outside the organisation. To provide the weightage that would be given to certain categories of people such as local. Population, physically-handicapped personnel, personnel from scheduled castes/tribes and

other backward classes. To prescribe whether the recruitment would be centralised or decentralised at unit levels.

To specify the degree of flexibility with regard to age, qualifications, compensation structureand other service conditions.

To prescribe the personnel who would be involved in recruitment process and the role ofhuman resource department in this regard.

To specify the budget for meeting the expenditures incurred in completing the recruitmentprocess.

According to Yoder, “the recruitment policy is concerned with quantity and qualifications ofmanpower.” It establishes broad guidelines for the staffing process. Generally, the following factorsare involved in a recruitment policy:

To provide each employee with an open road and encouragement in the continuingdevelopment of his talents and skills;

To provide individual employees with the maximum of employment security, avoiding,frequent lay-off or lost time;

To avoid cliques which may develop when several members of the same household orcommunity are employed in the organisation;

To carefully observe the letter and spirit of the relevant public policy on hiring and, on thewhole, employment relationship;

To assure each employee of the organisation interest in his personal goals and employmentobjective; To assure employees of fairness in all employment relationships, includingpromotions and transfers;

To provide employment in jobs which are engineered to meet the qualifications ofhandicapped workers and minority sections; and

To encourage one or more strong, effective, responsible trade unions among the employees.Pre-requisites of a Good Recruitment Policy: The recruitment policy of an organisation must

satisfy the following conditions:

It should be in conformity with its general personnel policies; It should be flexible enough to meet the changing needs of an organisation; It should be so designed as to ensure employment opportunities for its employees on a long-

term basis so that the goals of the organisation should be achievable; and it should developthe potentialities of employees;

It should match the qualities of employees with the requirements of the work for which theyare employed; and

It should highlight the necessity of establishing job analysis.

Importance of RecruitmentThe main purpose of recruitment is to provide a pool of potentially qualified job candidates. The

specific purpose are to:1. Determine the present and future requirements of the firm in conjunction with personnel-

planning and job-analysis activities.

2. Increase the pool of job candidates at minimum cost.3. Help increase the success rate of the selection process by reducing the number of visibly

under qualified or over qualified job applicants.4. Help reduce the probability that job applicants, once recruited and selected, will leave the

organisation only after a short period of time.5. Meet the organisation’s legal and social obligations regarding the composition of its

workforce.6. Begin identify and preparing potential job applicants who will be appropriate candidates.7. Increase organisational and individual effectiveness in the short term and long term.8. Evaluate the effectiveness of various recruiting techniques and sources for all types of job

applicants.

Questions:1. Define recruitment. Explain the process of recruitment.2. Explain the need for recruitment.3. What are the pre-requisites of a good recruitment policy?4. Explain the importance of recruitment.

Global Solution For Swift Expansion Into U.S. Market From Europe.WilsonHCG guided its client with consultation and recruited and onboarded its resources for a

complete build-out of its U.S. market presence.ChallengeWilsonHCG’s client is a European-based company that was not a recognised brand in the United

States. It required a strong global recruitment partner with market intelligence to establish a sales staff andconduct all onboarding functions within a three-month timeframe. In addition to guidance on recruitmentbest practices, the client needed a trusted human resources advisor to ensure compliance with U.S. labourlaws.

SolutionsBecause the client was just entering into the U.S. market, WilsonHCG provided on-site resources for

the strategic build-out of each regional sales team. The resources were the only representation of thecompany in the country. Delivering a complete end-to-end international recruitment solution, WilsonHCGincreased its client’s brand awareness by generating conversations about the company via social mediainitiatives and on-site recruiting methods. The development and execution of a multichannel and creativesourcing plan that included targeting LinkedIn groups and hosting interview days contributed to thebuilding of talent communities to fill the immediate-need positions. WilsonHCG consulted its client on U.S.labour laws, including OFCCP, compensation and right-to-work states. It also advised the client on hiringbest practices in the United States such as appropriate interview questions, background checks and drugscreening.

ResultsWilsonHCG increased its client’s brand recognition in the industry and leveraged the talent

communities it created to fill the immediate-need positions in 19.3 days, which was well below the 30-daySLA goal. The client was impressed with the quality of candidates submitted, which resulted in a submit-to-

hire ratio of 2-to-1 and in hiring 125 per cent of the number of sales associates it originally planned. As theclient’s U.S. business grows, WilsonHCG continues to partner with the company to provide globalrecruiting services for additional roles. The successful entrance into the U.S. market was largely attributedto WilsonHCG’s consultation regarding the country’s hiring practices and labour laws.

Recruiting and selecting staff at Thomas Cook: Case StudyAccording to the IRS (2007), employees are seeking to control or reduce their recruitment expenditure. Inthe case of travel agent Thomas Cook, the business is very cost conscious, with quite low margins, but staffturnover – especially in their call centre – is rather high. The measures taken by the company to reduce theircosts have focused on the following:i. Making the recruitment process wholly online until the interview stage. This means that the company willaccept application forms and CVs online and use email as a preferred way of communicating withcandidates. It also conducts an online pre-screening process for selecting sales consultants in order to siftout unsuitable applicants at as early a stage as possible.ii. Controlling employment agency costs through the introduction of preferred supplier lists where hard-to-fill or specialist post are concerned.iii. Working with two local government funded agencies that provide candidates free of charge. This isparticularly appealing when the company has to recruit around 100 people a year for its call centre. One ofthe agencies offers potential candidates on a free-trial basis, where they can work for fifteen days with noobligations on either side. This is useful way for the organisation to judge whether an individual mightprove to be a suitable employee, even though he or she may not have all the necessary experience on paper.Questions:1. Identify other industries experiencing high staff turnover and low margins that might operate on a

similarly cost-conscious basis as Thomas Cook. Investigate the recruitment and selection processes usedby companies within these industries. To what extent do they replicate these methods, and how wouldyou judge their effectiveness in terms of securing and retaining effective employees?

2. How effective are the approaches taken by Thomas Cook in promoting their brand and in securingemployee commitment? What might they do to improve in both areas?

3. Compare the Thomas Cook graduate recruitment and selection process with any other organisation. Whatare the similarities and difference in approach? To what extent do both employees recruit for ‘fit’ or‘skill’?