project on internal and external recuritment and retairnment
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A STUDY ON THE PROCESS OF INTERNAL AND EXTERNAL
RECRUITMENT AND RETAINMENT OF THE EMPLOYEES IN NOKIA
SIEMENS NETWORK
SUBMITED IN PRACTICAL FULFILLMENT OF THE REQUIREMENT OF THE
AWARD OF THE DEGREE OF
MASTER OF BUISNESS ADMINISTRATION
ABSTRACT
The study is conducted in Nokia Siemens network Oragadam. The
topic of the study is A study on recruitment and retainment in Nokia Siemens
network.
The study is basically a descriptive study with a sample size of 50. The
respondents are the employees in the organization.
Recruitment and retainment process is the main duty of an HR the
organisation must select a right person for right job the person should be selected
correctly and the next main duty of an HR is to make the employee to retain in
the organisation. To understand the needs of the employees and give what they
require so that the employee may remain in the organisation
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In the recruitment and retainment process observed the present
system is satisfactory communication between the employees and the
organisation is good enough so that the employees get a good atmosphere in
the organisation and they may not leave the organisation.
CONTENTS Page No.
CHAPTER 1
INTRODUCTION
ABOUT THE TOPIC
BACKGROUND STUDY
NEED FOR THE STUDY
SCOPE OF THE STUDY
LIMITATIONS OF THE STUDY
RESEARCH OBJECTIVES
OBJECTIVES
MAJOR OBJECTIVES
CHAPTER 2
COMPANY PROFILE
CHAPTER 3
REVIEW OF THE LITERATURE
CHAPTER 4
RESEARCH METHODOLOGY
TYPE OF RESEARCH
RESEARCH APPROACH
SOURCES OF DATA
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SAMPLING PLAN
POPULATION AND SAMPLING UNIT
SAMPLE SIZE
SAMPLING PROCEDURE
MODE OF DATA COLLECTION
DATA COLLECTION INSTRUMENT
TOOLS USED FOR ANALYSIS
CHAPTER 5
DATA ANALYSIS AND INTERPRETATION
CHAPTER 6
FINDINGS
RECOMMENDATIONS
CHAPTER 7
CONCLUSION
BIBLIOGRAPHY
ANNEXURES
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CHAPTER 1
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1.INTRODUCTION
1.1 INTRODUCTION TO HUMAN RESOURCE
Human resources is a term with which many organizations describe the
combination of traditionally administrative personnel functions with performance,
Employee Relations and resource planning. The field draws upon concepts developed
in Industrial/Organizational Psychology. Human resources have at least two related
interpretations depending on context.
The original usage derives from political economy and economics, where it wastraditionally called labour, one of four factors of production. The more common usage
within corporations and businesses refers to the individuals within the firm, and to the
portion of the firm's organization that deals with hiring, firing, training, and other
personnel issues. This article addresses both definitions. The objective of Human
Resources is to maximize the return on investment from the organization's human
capital and minimize financial risk. It is the responsibility of human resource managers
to conduct these activities in an effective, legal, fair, and consistent manner.
Human resource management serves these key functions:
1. Selection
2. Training and Development
3. Performance Evaluation and Management
4. Promotions
5. Redundancy
6. Industrial and Employee Relations
7. Record keeping of all personal data.
8. Compensation, pensions, bonuses etc in liaison with Payroll
9. Confidential advice to internal 'customers' in relation to problems at work.
10. Career development
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1.2 RESEARCH BACKGROUND
INTRODUCTION TO RECRUITMENT AND RETENTION
According to Edwin B. Flippo, Recruitment is the process of searching thecandidates for employment and stimulating them to apply for jobs in the organisation.
Recruitment is the activity that links the employers and the job seekers
A few definitions of recruitment are:
A process of finding and attracting capable applicants for employment. The
process begins when new recruits are sought and ends when their applications are
submitted. The result is a pool of applications from which new employees are selected.
It is the process to discover sources of manpower to meet the requirement of
staffing schedule and to employ effective measures for attracting that manpower inadequate numbers to facilitate effective selection of an efficient working force.
Recruitment of candidates is the function preceding the selection, which helps
create a pool of prospective employees for the organisation so that the management can
select the right candidate for the right job from this pool. The main objective of the
recruitment process is to expedite the selection process.
Recruitment is a continuous process whereby the firm attempts to develop a
pool of qualified applicants for the future human resources needs even though specific
vacancies do not exist. Usually, the recruitment process starts when a manger initiates
an employee requisition for a specific vacancy or an anticipated vacancy.
RECRUITMENT NEEDS ARE OF THREE TYPES
PLANNED
i.e. the needs arising from changes in organization and retirement policy
.
ANTICIPATED
Anticipated needs are those movements in personnel, which an organization
can predict by studying trends in internal and external environment.
UNEXPECTED
Resignation, deaths, accidents, illness give rise to unexpected needs.
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Purpose & Importance Of Recruitment
Attract and encourage more and more candidates to apply in the
organisation. Create a talent pool of candidates to enable the selection of best
candidates for the organisation. Determine present and future requirements of the
organization in conjunction with its personnel planning and job analysis activities.Recruitment is the process which links the employers with the employees. Increase the
pool of job candidates at minimum cost. Help increase the success rate of selection
process by decreasing number of visibly under qualified or overqualified job
applicants.
Help reduce the probability that job applicants once recruited and Selected
will leave the organization only after a short period of time. Meet the organizations
legal and social obligations regarding the composition of its workforce. Begin
identifying and preparing potential job applicants who will be appropriate candidates.
Increase organization and individual effectiveness of various recruiting techniques and
sources for all types of job applicants Retention
Employee Retention involves taking measures to encourage employees to
remain in the organization for the maximum period of time. Corporate is facing a lot of
problems in employee retention these days. Hiring knowledgeable people for the job is
essential for an employer. But retention is even more important than hiring. There is
no dearth of opportunities for a talented person. There are many organizations which
are looking for such employees. If a person is not satisfied by the job hes doing, he may
switch over to some other more suitable job. In todays environment it becomes very
important for organizations to retain their employees. The top organizations are on the
top because they value their employees and they know how to keep them glued to the
organization. Employees stay and leave organizations for some reasons. The reasonmay be personal or professional. These reasons should be understood by the employer
and should be taken care of. The organizations are becoming aware of these reasons
and adopting many strategies for employee retention.
1.3 Need for recruitment:The need for recruitment may be due to th e following reasons /
situation:
Vacancies due to promotions
a) Transfer, retirement, termination, permanent disability, death andlabour turnover.
Creation of new vacancies due to the growth, expansion and
diversification of business activities of an enterprise. In addition, new
vacancies are possible due to job specification
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1.4 Scope of the study :
To determine the present and future requirements of the
organization on conjunction with its personnel-planning and job analysis
activities.
1. To increase the pool of job candidates at minimum cost.2. To help increase the success rate of the selection process by reducing
the number of visibly under qualifi ed or overqualified job
applicants.
3. To help reduce the probability that job applicants, once recruitedand selected, will leave the organization only after a short period oftime.
4. To meet the organizations legal and social obligations regarding thecomposition of its work force.
5. To begin identifying and preparing potential job applicants who willbe appropriate candidates.
6. To increase organizational and individual effectiveness in th e shortterm and long term.
7. To evaluate the effectiveness of various recruiting techniques andsources for all types of job applicants.
1.5 OBJECTIVES
OBJECTIVES OF THE STUDY
Recruitment helps a company to achieve its objective from time to time by
creating a positive attitude among workers. Reducing wastage and making maximumuse of resources etc.
Allocating the jobs to the right person:-
If proper recruitment and selection methods are followed, the company will
be able to select the right people for the right job. When this happens the number of
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people leave the job will reduce as the will be satisfied with their job leading to decrease
in labour turnover
To know the benefits of recruitment to the employees with respect totheir welfare activities.
HR management function that helps managers to recruit, select, train andretain members for an organization.
So the study of the HR recruitment and retainment means basically the brief study of
all HR functions related to recruitment and retainment in the organization. I believe
the recruitment and retainment is a vital part of an organization, which helps the
organization to achieve the goal of the organization.
All companies are having their recruitment and retainment process but the companywho is having the best, is the most
successful company among its competitors. So the company can get success within its
competitors
by applying best, effectiveness in the organisation
The main objective of the project is
To understand and study the recruitment and retainment process in the
organisation
To know how the organisation recruit employees
To study what are the sources of recruitment in the organisation
To study what are the test the organisation conduct
To study how the organisation retain the employees
HR function is very important in every organization. It helps the organization to
manage not only
the people of the organization but to manage all the working processes in it also. HR
management function that helps managers to recruit, select, train and retain members
for an organization.
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CHAPTER: 2
Company profile
With more than 60,000 people in over 150 countries, Nokia Siemens Networks
is one of the largest telecommunications hardware, software and services companies inthe world. We are committed to innovation and sustainability and offer a complete
portfolio of mobile, fixed and converged network technologies as well as professional
services including consulting and systems integration, network implementation,
maintenance and care, and managed services.
We serve more than 600 customers around the world Communications
Service Providers (CSPs) who face a multitude of challenges as they focus on capturing
greater value through business model innovation, reducing the complexity within their
businesses and networks, growing their customer base and minimizing subscriber
churn.
It is our aim to play the vital role of an enabler, someone who helps CSPs
build stronger, more lasting and ultimately more profitable customer relationships. We
aim to do so by enhancing the efficiency and sustainability of their business practices,
and in turn help them meet pressing challenges.
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Our initiatives aim to foster sustainable business practices which increase
profitability and demonstrate the broad impact of the telecommunications industry on
other sectors. One such initiative is our participation in the WWF Climate Savers
program under which we have pledged to undertake a number of steps that reduce our
annual CO2 emissions by approximately two million tons. One of our key co mmitments
is to improve the energy efficiency of our GSM/EDGE and WCDMA/HSPA base
station products by up to 40 percent by 2012. Our Flexi Base Station has the lowest
energy consumption in the market, and has been recognized as the worlds most
progressive mobile network technology at GSMA Global Mobile Awards 2009. In
addition, we recently launched the industrys most comprehensive energy solutions
offering, which includes the innovative Green Energy Control. Currently we have more
than 390 sites across 25 countries which run on renewable energy. By 2011, renewable
energy will be our preferred source of power supply for every remote base station site
that we install.
Our vast and market-leading portfolio of offerings aptly reflects our
emphasis on thought leadership and innovation. We have pioneered a centralized
Global Service Delivery model by creating integrated multi-technology, multi-vendor
Global Network Solutions Centres which drive the worlds most efficient networks. We
also enjoy leadership in several other areas, including Professional Services where we
are the industrys fastest growing vendor, voice solutions where we power the
conversations of more than one-fourth of the worlds population, 3G where we have
more than 160 3G radio references, and network deployment where we enjoy the
largest market share. As a leader in technology innovation, we are committed to
driving the commercial uptake of LTE starting in 2010, and offer an end-to-endsolution which provides a future-proof, easy and cost-efficient path to LTE.
Mission and Vision
The road ahead
Until now, development in our industry has mainly been a matter of delivering
connections more, faster, cheaper, and more efficient. This is still important. The
connectivity explosion continues, and by 2015 we know that 5 billion people and further
billions of devices will be connected. So, we must continue applying our expertise in
order to deliver on the reality of hundred-fold increases in traffic.
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Towards an ecosystem of partners
Today, however, we are also focusing like never before on delivering quality
quality experience. We can see that a more open, collaborative and customer-centric
way of working could bring so much more value to billions of individuals, and to
millions of businesses. We at Nokia Siemens Networks must drive that change by
leaving the closed and proprietary mindset behind, and leading the way in a new spirit
of openness and collaboration.
Our customers challenges
Our customers, Communications Service Providers (CSPs), face challenges on
all fronts: the need to increase efficiency keeps pressure on capital and operational
costs; the dramatic rise in traffic due to the proliferation of internet applications
demands new business models for monetization; and an ever fiercer competitive
climate is challenging CSPs to prove they can retain the customers they have and win
back any they might have lost. Nokia Siemens Networks will play a vital role in helping
CSPs meet these challenges. This role is our mission its about building value.
Our mission
by improving efficiency and experience
We have built value by addressing efficiency, and we continue to do that. But we also
need to address the customers need for a better experience, because its experience
that builds relationships, and relationships that build value.
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Our vision
We believe that CSPs can ultimately enable and deliver a segment of one
where they can define and enhance the service experience for each and every
individual. Customers whose communications experience fit and works for them dont
change operators. And operators who can devote themselves to enriching the
customers experience build stronger, more lasting and profitable customer
relationships.
The individual communications experience is the greatest value a
communications service provider can deliver to their customer, and so its the greatest
value we can support communications service providers in delivering.
The road ahead
The future of service is largely network-based. Internet applications hosted in
the cloud (email, social networking sites, corporate service and communication tools,
etc.), already account for a large proportion of the services people access every day.
Every day, therefore, quality of network experience has more and more to do with
quality of life.
Ultimately every service is delivered to an individual. And those individuals
will benefit from the services being delivered in a way that fits their personal needs and
desires. This experience cannot be the privilege of the few. It must be as true for
customers in emerging countries with just a dollar to spend, as for businesses in
developed countries with greater resources, and for the trillions of devices that make upthe Internet of Things.
Our vision acknowledges that communications service providers need to
manage this complexity wisely, ensuring the necessary security and authentication for
users, while having the ability to profitably deliver a customized experience, based on a
persons locations, context, device, usage patterns and preferences.
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Our vision guides our mission, and our mission is to build more valuable
customer relationships. The individual communications experience builds more
valuable customer relationships.
CHAPTER: 3
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REVIEW OF LITERATURE
3.1 Scientific recruitment and selection
The importance of selection recruitment and selection of staff i s now
accepted in the business world. Selection is important as it has its i mpact
on work performance and employee cost. As result scientific methods of
recruitment and selection are extensively for the selection of managers
and the supervisory staff. The assistance of experts such as industrial
psychologist and management consultants are also taken for the purpose
of scientific selection. As a result, the objective of right man for th e right
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job is achieved in many organizations. Moreover, right job is the basi c
principle in manpower procurement.
3.2 RECRUITMENT PROCESS
Recruitment refers to the process of identifying and att racting job
seekers so as to build a pool of qualified job app licants. The process
comprises five interrelated stages, viz,
1. Planning.2. Strategy development.3. Searching.4. Screening.5. Evaluation and control.
The ideal recruitment programme is the one that attracts a
relatively larger number of qualified applicants who will survive the
screening process and a ccept positions with the organisation, when
offered. Recruitment programmes can miss the ideal in many ways i. e. by
failing to attract an adequate applicant pool, by under/over selling the
organisation or by inadequate screening applicants before they enter the
selection process. Thus, to approach the ideal, individuals responsible for
the recruitment process must know how many and what types o f
employees are needed, where and how to loo k for the individuals with the
appropriate qualifications and interests, what inducement to use for
various types of applicants groups, how to distingui sh applicants who are
qualified from those who have a reasonable chance of success and how to
evaluate their work.
STAGE 1:
RECRUITMENT PLANNING:
The first stage in th e recruitment process is planning. Planning
involves the translation of likely job vacancies and information about the
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nature of these jobs into set of objectives or targets that specify the (1)
Numbers and (2) Types of applicants to be contacted.
Numbers of contact:
Organization, nearly always, p lan to attract more applicants than
they will hire. Some of those contacted will b e uninterested, unqualified
or both. Each time a recruitment Programme is contemplated, one task is
to estimate the number of appli cants necessary to fill all vacancies with
the qualified p eople.
Types of contacts:
It is basically concerned with the types of people to be informed
about job openings. The type of people depends on the tasks and
responsibilities involved and the qualifications a nd experience expected.
These details are available through job d escription and job specification.
STAGE 2:
STRATEGY DEVELOPMENT:
When it is estimated that what types of recruitment and how many
are required then one has concentrate in
(1). Make or Buy employees. (2). Technological sophistication of
recruitment and selection devices. (3). Geographical distribution of
labour markets comprising job seekers. (4). Sources of recruitment.
(5). Sequencing the activities in the recruitment process.
Make or Buy:
Organisation must decide whether to hire le skilled employees and
invest on training and education programmes, or they can hi re skilled
labour and professional. Essentially, this is the make or buy decision.
Organizations, which hire skilled and professionals shall have to pay more
for these employees.
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Technological Sophistication:
The second decision in st rategy development relates to the methods
used in recruitment and selection. This decision is mainly influenced by
the available technology. The advent of computers has made it possible
for employers to scan national and inte rnational applicant qualification.
Although impersonal, computers have given employers and ob seekers a
wider scope of options in th e initial screening stage.
Where to look:
In order to reduce the costs, organisations look in to labour markets
most likely to offe r the required job seekers. Generally, companies look in
to the national market for managerial and professional employees,
regional or local markets for technical employees and local markets for
the clerical and b lue-collar employees.
When to look:
An effective recruiting strategy must determine when to look-
decideon the timings of events besides knowing where and how to
look for job applicants.
STAGE 3:
SEARCHNG:
Once a recruitment plan and strategy are worked out, the search
process can begin. Search involves two steps
A). Source activation and
B). Selling.
A). SOURCE ACTIVATION:
Typically, sources and search methods are activated by th e
issuance of an employee requisition. This means that no a ctual recruiting
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takes place until lone managers have verified that vacancy does exist or
will exist.
If the organisation has planned well and done a good job of
developing its sources and search methods, activation soon results in aflood of applications and/o r resumes.
The application received must be screened. Those who pass hav e to
be contacted and invited for interview. Unsuccessful appli cants must be
sent letter of regret.
B). SELLING:
A second issue to be addressed in the searching process concernscommunications. Here, organisation walks tightrope. On one hand, th ey
want to do whatever they can to attract desirable applicants. On the other
hand, they must resist th e temptation of overselling their virtues.
In selling the organisation, both the message and the media deserve
attention. Message refers to the employment adv ertisement. With regards
to media, it may b e stated that effectiveness of any recruiting message
depends on the media. Media are several- some have low credibility, whileothers enjoy high credibility. Selection of medium or media needs to be
done with a lot of care.
STEP 4:
SCREENING:
Screening of applicants can be regarded as an integral part of the
recruiting process, th ough many view it as the first step in the selectionprocess. Even the definition on recruitment, we quoted in the beginning of
this chapter, excludes screening from its scope. However, we have
included screening in recruitment for valid reasons. The selection process
will begin after the applications have been scrutinized and short-listed.
Hiring of professors in a university is a typical situation. Application
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received in response to advertisements is screened and only eligible
applicants are called for an int erview. A selection committee comprising
the Vice-chancellor, Registrar and subject experts conducts interview.
Here, the recruitment process extends up to screening the applications.
The selection process commences only later.
Purpose of screening
The purpose of screening is to remove from the recruitment process,
at an early stage, those applicants who are visibly unqualified for the job.
Effective screening can save a great deal of t ime and money. Care must be
exercised, however, to assure tha t potentially good employees a re not
rejected without justification.
In screening, clear job specifications are invaluable. It is both good
practice and a legal necessity that applicants qua lification is judged on
the basis of their knowledge, skills, abilities and interest required to do
the job.
The techniques used to screen applicants vary depending on th e
candidate sources and recruiting methods used. Interview and application
blanks may be used to screen walk-ins. Campus recruiters and agency
representatives use interviews and resumes. Reference checks are a lso
useful in screening.
STAGE 5:
EVALUATION AND CONTROL:
Evaluation and control is n ecessary as considerable costs are
incurred in the recruitment process. The costs generally incurred are: -
1. Salaries for recruiters.2. Management and professional time spent on preparing job d escription,
job specifications, advertisements, agency liaison and so forth.
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3. The cost of advertisements o r other recruitment methods, that is,agency fees.
4. Recruitment overheads and administrative expenses.5. Costs of overtime and outsourcing while the vacancies remain unfilled.6. Cost of recruiting unsuitable candidates for the selection process.3.3 EVALUATION OF RECRUITMENT PROCESS
The recruitment has the objective of searching for and obtain ing
applications for job seekers in sufficient number and quality. Keeping this
objective in the mind, the evaluation might include:
1. Return rate of application sent out.2. Number of suitable candidates fo r selection.3. Retention and performance of the candidates selected.4. Cost of the recruitment process5. Time lapsed data6. Comments on image projected.
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3.4 Sources of Recrui ent
SOURCES OF MANAGERIAL RECRUITMENT
INTERNAL SOURCES E TERNAL SOURCES
1) Promotion 1) Campus recruitment
2) Transfers 2) Press advertisement
3) Internal notification 3) Management consultancy service
(Advertisement) & private employment exchanges
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4) Retirement 4) Deputation of personnel or transfer
from one enterprise to another
5) Recall 5) Management training schemes
6) Former employees 6) Walk-ins, write-ins, talk-ins
7) Miscellaneous external sources
The sources of recruitment can be broadly categorized into internal and
external sources-
(I) Internal Recruitment Internal recruitment seeks applicants forpositions from within the company. The various inte rnal sources
include
Promotions and Transfers
Promotion is an effective means using job posting and
personnel records. Job posting requires notifying vacant po sitions by
posting notices, circulating publications or announcing at staff
meetings and inviting employees to apply. Personnel records help
discover employees who are doing jobs below their educational
qualifications or skill levels. Promotions has many advantages like it is
good public relations, builds morale, encourages competent individuals
who are ambitious, improves the p robability of good selection sinceinformation on the individuals performance is readily available, is
cheaper than going outside to recruit, those chosen internally are
familiar with the organization thus reducing the orientation time and
energy and also acts as a t raining device for developing middle-level
and top-level managers. However, promotions restrict th e field of
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selection preventing fresh blood & ideas from entering the
organization. It also leads to i nbreeding in the organization. Transfers
are also important in p roviding employees with a broad-based view of
the organization, necessary for future promotions.
Employee referrals-
Employees can develop good prospects for th eir families and
friends by acquainting them with the advantages of a job with the
company, furnishing them with introduction and encouraging them to
apply. This is a very effective means as many qualified people can be
reached at a very low cost to the company. The other advantages are
that the employees would bring only those referrals that they feel
would be able to fit in the organization based on th eir own experience.
The organization can be assured of t he reliability and the character of
the referrals. In this way, the organization can also fulfill social
obligations and create goodwill.
Former Employees-
These include retired employees who are willing to work on a
part-time basis, individuals who left work and are willing to come back
for higher compensations. Even retrenched employees are taken up
once again. The advantage here is that the people are already known to
the organization and there is no need to find out their past
performance and character. Also, there is no need of an o rientation
program for them, since they are familiar with th e organization.
Dependents of deceased employees-
Usually, banks follow this policy. If an employee dies, his / her
spouse or son or daughter is recruited in their place. This is usua lly an
effective way to fulfill social obligation and create goodwill.
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Recalls: -
When management faces a problem, which can be solved only
by a manager who has proceeded on long leave, it may de decided to
recall that persons after the problem is solved, his leave may be
extended.
Retirements: -
At times, management may not find suitable candidates in
place of the one who had retired, after meritorious service. Under the
circumstances, management may decide to call retired managers with
new extension.
Internal notification (advertisement): -
Sometimes, management issues an internal notification for the
benefit of existing employees. Most employees know from their o wn
experience about the requirement of the job and what sort of person
the company is looking for. Often employees have friends or
acquaintances who meet these requirements. Suitable persons are
appointed at the vacant posts.
(II) External Recruitment Exte rnal recruitment seeks applicants for
positions from sources outside the company. They have outnumbered the
internal methods. The various external sources include
Professional or Trade Associations :-
Many associations provide placement service to it s members.
It consists of compiling job seekers lists and providing access to
members during regional or national conventions. Also, thepublications of these associations carry classified advertisements from
employers interested in recruiting their members. These are
particularly useful for attracting highly educated, experienced or
skilled personnel. Also, the recruiters can zero on in specific job
seekers, especially for hard -to-fill technical posts.
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Advertisements :-
It is a popu lar method of seeking recruits, as many recruiters
prefer advertisements because of their wide reach. Want ads describe
the job benefits, identify the employer and tell those interested how to
apply. Newspaper is the most common medium but for highly
specialized recruits, advertisements may be p laced in professional or
business journals.
Advertisements must contain proper information like the job
content, working conditions, location of job, compensation including
fringe benefits, job specifications, growth aspects, etc. The
advertisement has to sell the idea tha t the company and job are perfect
for the candidate. Recruitment advertisements can also serve as
corporate advertisements to bu ild company image. It also cost
effective.
Employment Exchanges:-
Employment Exchanges have been set up all ove r the country in
deference to the provision of the E mployment Exchanges (Compulsory
Notification of Vacancies) Act, 1959. The Act applies to all indu strial
establishments having 25 workers or more each. The Act requires all
the industrial establishments to notify the vacancies before they are
filled. The major functions of the exchanges are to increase the pool of
possible applicants and to do the preliminary screening. Thus,
employment exchanges act as a link between the employers and the
prospective employees. These offices are particularly useful to in
recruiting blue-collar, white collar and technical workers.
Campus Recruitments:-
Colleges, universities, research laboratories, sports fi elds
and institutes are fertile ground f or recruiters, particularly the
institutes. Campus Recruitment is going global with companies like
HLL, Citibank, HCL-HP, ANZ Grind lays, L&T, Motorola and
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Reliance looking for global markets. Some companies recruit a given
number of candidates from these institut es every year. Campus
recruitment is so much sought a fter that each college; university
department or institute will have a placement officer to handle
recruitment functions. However, it is oft en an expensive process, even
if recruiting process produces job o ffers and acceptances eventually. A
majority leave the organization within the first five years of their
employment. Yet, it is a major source of recruitment for prestigious
companies.
Walk-ins, Write-ins and Talk-ins-
The most common and least expensive approach for
candidates is direct applications, in which job seekers submit
unsolicited application letters or resumes. Direct applications can also
provide a pool of potential employees to meet future needs. From
employees viewpoint, walk-ins are preferable as they a re free from the
hassles associated with other methods of recruitment. While di rect
applications are particularly effective in fi lling entry-level and
unskilled vacancies, some organizations compile pools of potential
employees from direct applications for skilled posit ions. Write-ins are
those who send written enquiries. These jobseekers are asked to
complete application forms for further processing. Talk-ins involves
the job aspirants meeting the recruiter (on an appropriated date) for
detailed talks. No application is required to be submitted to the
recruiter.
Contractors:-
They are used to recruit casual workers. The names of the
workers are not entered in the company reco rds and, to this extent;
difficulties experienced in maintaining pe rmanent workers are avoided.
Consultants:-
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They are in the profession for recruiting and selecting
managerial and executive personnel. They are useful as they have
nationwide contacts and lend professionalism to th e hiring process.
They also keep prospective employer and employee anonymous.
However, the cost can be a deterrent factor.
Head Hunters:-
They are useful in specialized and skilled candidate working
in a particular company. An agent i s sent to represent the recruiting
company and offer is made to the candidate. This is a u seful source
when both the companies involved are in the same field, and the
employee is reluctant to take th e offer since he fears, that his company
is testing his loyalty.
Radio, Television and Internet:-
Radio and television are used to reach certain types of job
applicants such as skilled workers. Radio and t elevision are used but
sparingly, and that too, by government d epartments only. Companies in
the private sector are hesitant to use the media because of high costs
and also because they fear that such advertising will make the
companies look desperate and damage th eir conservative image.
However, there is n othing inherently desperate about using radio and
television. It depends upon what is said and how it i s delivered.
Internet is becoming a popular option for recruitment today. There are
specialized sites like naukri.com. Also, websites of companies have a
separate section wherein; aspi rants can submit their resumes and
applications. This provides a wider reach.
Competitors:-
This method is popularly known as poaching or raiding
which involves identifying the right people in rival companies, offering
them better terms and luring th em away. For instance, several
executives of HMT left to join Titan Wat ch Company. There are legal
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and ethical issues involved in raiding rival firms for potential
candidates. From the legal point of vi ew, an employee is expected to
join a new organization only a fter obtaining a no obj ection certificate
from his/ her present employer. Violating this requirement shall bind
the employee to pay a few months salary to his/ her present employer
as a punishment. However, there are many ethical issues attached to it.
Mergers and Acquisitions:-
When organizations combine, th ey have a pool of employees,
out of whom some may not be necessary any longer. As a result, the
new organization has, in effect, a pool of qualified job applicants. As a
result, new jobs may be created. Both new and old jobs may be readily
staffed by drawing the best-qualified applicants from this employee
pool. This method facilitates the imm ediate implementation of an
organizations strategic plan. It enables an organization to pursue a
business plan, However, the need to displace employees and to
integrate a large number of them rather quickly into a new
organization means that the p ersonnel-planning and selection process
becomes critical more than ever.
Evaluation of External Recruitment:
External sources of recruitment have both merits and demerits.
3.5 The merits are-
The organization will have the benefit of new skills, new talents
and new experiences, if people a re hired from external sou rces.
The management will be able to fulfill reservation requirements
in favour of the disadvantaged sections o f the society.
Scope for resentment, heartburn and jealousy can be avoided by
recruiting from outside.
3.6 The demerits are-
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Better motivation and increased morale associated with
promoting own employees re lost to t he organization.
External recruitment is costly.
If recruitment and selection processes are not properly carried
out, chances of right candidates being rejected and wrong
applicants being selected occur.
High training time is associated with external recruitment.
98% of organizational success depends upon efficient employee selection
3.7 SELECTION
Selection is defined as the p rocess of differentiating between
applicants in order to identify (and hire) those with a greater likelihood
of success in a job.
Selection is basically picking an applicant from (a pool of
applicants) who has the app ropriate qualification and competency to do
the job.
The difference between recruitment and selection:
Recruitment is id entifying n encouraging prospective employees to
apply for a job. And Selection is selecting the right candidate from the
pool of applicants
.1 SELECTION PROCESS
Selection is a long p rocess, commencing from the p reliminary
interview of the applicants and ending with the contract of employment.
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The following chart gives an idea about selection process: -
External Environment
Internal Envir nment
Preliminary Interview
Selection Tests
Employment Interview
Reference and Background
Analysis
Selection Decision
Physical Examination
Job Offer
Employment Contract
Evaluation
ReectedA
lication
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Environment factor affecting selection: -
Selection is influenced by several facto rs. More prominent among
them are supply and demand of specific skills in the labou r market,
unemployment rate, labour- market conditions, legal and political
considerations, companys image, companys policy, hu man resources
planning and cost of hiring. The last t hree constitute the internal
environment and the remaining form th e external environment of selection
process.
STEP 1: -
PRELIMINARY INTERVIEW
The applicants received from job seekers would be subj ect to scrutiny
so as to eliminate unqualified applicants. Thi s is usually followed by a
preliminary interview the purpose of which is more or less the same as
scrutiny of application, that is, eliminate of unqualified applicants. Scrutiny
enables the HR specialists to eliminate unqualified jobseekers based on the
information supplied in t heir application forms. Preliminary interview, on
the other hand, helps reject misfits for reason, which did not appear in the
application forms. Besides, preliminary interview, often called courtesy
interview, is a go od public relation exercise.
STEP 2: -
SELECTION TEST:
Job seekers who pass the screening and the preliminary interview are
called for tests. Different types o f tests may be administered, depending on
the job and th e company. Generally, tests are used to determine the
applicants ability, aptitud e and personality.
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The following are the type of tests taken:
1). Ability tests: -
Assist in determining how well an individual can perform tasks
related to the job. An excellent illustration of this is t he typing tests
given to a prospective employer for secretarial job. Also called as
ACHEIVEMENT TESTS. It is concerned with what one has
accomplished. When applicant claims to know something, an achievement
test is taken to measure how well they know it. Trade tests are the most
common type of achievement test gi ven. Questions have been prepared
and tested for such t rades as asbestos worker, punch-press operators,
electricians and machinists. The re are, of course, many unstandardized
achievement tests given in industries, such as typing or dictation tests for
an applicant for a stenographic position.
2). Aptitude test: -
Aptitude tests measure whether an individual s has the capacity or
latent ability to learn a given job if given adequate training. The use ofaptitude test is advisable when an applicant has had little o r no experience
along the line of the job opening. Aptitudes tests help determine a persons
potential to learn in a given area. An example of such test is the general
management aptitude tests (GMAT), which many business students take
prior to gaining admission to a g raduate business school program.
Aptitude test indicates the ability or fitness of an individual to
engage successfully in any number of specialized activities. They cover suchareas clerical aptitude, numerical aptitude, mechanical aptitude, motor co-
ordination, finger dexterity and manual dexterity. These t ests help to detect
positive negative points in a persons sensory or intellectual ability. They
focus attention on a particular type of talent such as learning or reasoning
in respect of a particular field o f work.
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Forms of aptitude test:
1. Mental or intelligence tests:They measure the overall intellectual ability of a person and enable
to know whether the person has the mental ability to deal with certain
problems.
2. Mechanical aptitude tests:They measure the ability of a p erson to learn a particular type of
mechanical work. These tests helps to measure specialized technical
knowledge and problem solving abilities if the candidate. They are useful in
selection of mechanics, maintenance workers, etc.
3. Psychomotor or skills tests:They are those, which measure a persons ability to do a specific job.
Such tests are conducted in respect of semi- skilled and repetitive jobs such
as packing, testing and inspection, etc.
4. Intelligence test:This test helps to evaluate traits of intelligence. Mental ability,
presence of mind (alertness), numerical ability, memory and such other
aspects can be measured.
The intelligence is probably the most widely administered standardized test
in industry. It is ta ken to judge numerical, skills, reasoning, memory and
such other abilities.
5. Interest Test:This is conducted to find out likes and dislikes of candidates
towards occupations, hobbies, etc. such tests in dicate which occupations are
more in line with a p ersons interest. Such tests also enable the company to
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provide vocational guidance to the selected candidates and even to the
existing employees.
These tests are used to measure an individuals a ctivity
preferences. These tests are particularly useful for students consideringmany careers or employees deciding upon career changes.
6. Personality Test:The importance of personality to job success is undeniable. Often
an individual who possesses the intelligence, aptitude and experience for
certain has failed because of inability to get along with and motivate other
people.
It is conducted to judge maturity, social or interpersonal skills,
behaviour under stress and strain, etc. this t est is very much essential on
case of selection of sales force, public relation staff, etc. where personality
plays an important role.
Personality tests are simila r to interest tests in that they, also,
involve a serious problem of obtaining an honest answer.
7. Projective Test:This test requires interpretation of problems or situations. For
example, a photograph or a picture can b e shown to the candidates and they
are asked to give their views, and opinions a bout the picture.
8. General knowledge Test:Now days G.K. Tests are very common to find gen eral awareness of
the candidates in the fi eld of sports, politics, world affairs, current affairs.
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9. Perception Test:At times perception tests can be conducted to find out beliefs,
attitudes, and mental sharpness.etc.
10.Graphology Test:It is designed to analyze the handwriting of individual. It has been
said that an individuals handw riting can suggest the degree of energy,
inhibition and spontaneity, a s well as disclose the idiosyncrasies and
elements of balance and control. For example, big letters and emphasis on
capital letters indicate a t endency towards domination and competitiveness.
A slant to the right, moderate pressure and good legibility show leadership
potential.
11.Polygraph Test:Polygraph is a lie detector, which is designed to ensure accuracy
of the information given in the applications. Department store, banks,
treasury offices and jewellery shops, that is, those highly vulnerable to theft
or swindling may find polygraph t ests useful.
12. Medical Test:It reveals physical fitness of a candidate. With the development of
technology, medical tests have become diversified. Medical servicing helps
measure and monitor a candidates p hysical resilience upon exposure to
hazardous chemicals.
CHOOSING TESTS:
The test must be chosen in the criteria of reliability, validity,
objectivity and standardization. They are: -
1. RELIABILITY: -
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It refers to standardization of the procedure of administering and
scoring the test results. A person who takes tests one day and ma kes a
certain score should be able to take the same test the next day or th e next
week and make more or less the same score. An individuals intelligence, for
example, is generally a stable characteristic. So if we administer an
intelligence test, a person who scores 110 in March would score close to 110
if tested in July. Tests, which produce wide variations in results, serve little
purpose in selection.
2. VALIDITY: -It is a t est, which helps predict whether a person will b e successful in
a given job. A test that has been validated can be helpful in differentiatingbetween prospective employees who will be able to perform the job well and
those who will not. Naturally, no test will be 100% accurate in predicting
job success. A validated test increases possibility of success.
There are three ways of validating a t est. They are as follows: -
1). Concurrent Validity: - this involves determining the factors that are
characteristics of successful employees and th en using these factors a s the
yardsticks.
2). Predictive Validity: - it involves using a selection test during the
selection process and then id entifying the successful candidates. The
characteristics of both successful and less successful candidates a re then
identified.
3). Synthetic Validity: - it involves taking parts of several similar jobs
rather than one complete job to valid ate the selection test.
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3. OBJECTIVITY:
When two or more people can inte rpret the result of the same test and
derive the same conclusion(s), the test is said to be objective. Otherwise, the
test evaluators subjective opinions may render the test useless.
4. STANDARDRIZATION:A test that is standardized is administered under standard condition to
a large group of person who are representatives of the individua ls for whom
it is intended. The purpose of standardization is to obtain n orms or
standard, so that a specific test score can be meaningful when compared to
other score in the group.
STEP 3: -
INTERVIEW:
The next step in the selection process is an interview. Interview is formal,
in-depth conversation conducted to evaluate the applicants acceptability. It
is considered to be excellent selection device. It is face-to-face exchange of
view, ideas and opinion between the candidates an d interviewers. Basically,
interview is nothing but an oral examination of candidates. Inte rview can be
adapted to unskilled, skilled, managerial and p rofession employees.
Objectives of interview: -
Interview has at least three objectives and th ey are a follows: -
1)Helps obtain additional information from the applicants2)Facilitates giving general information to the applicants such as company
policies, job, products manufactured and the like
3)Helps build the companys image among the applicants.4)Types of interview: -
Interviews can be of different types. There interviews employed by the
companies.
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Following are the various types of interview: -
1)Informal Interview:An informal interview is an oral interview and may take place
anywhere. The employee or the manager or the personnel manager mayask a few almost inconsequential qu estions like name, place of bi rth,
names of relatives etc. either in t heir respective offices or anywhere
outside the plant of company. It id not planned and nobody prepares for
it. This is used widely when the labour market is tight and when you need
workers badly.
2)Formal Interview:Formal interviews may be held in th e employment office by he
employment office in a more formal atmosphere, with the help of well
structured questions, the time and place of the int erview will be stipulated
by the employment office.
3)Non-directive Interview:Non-directive interview or un structured interview is d esigned to
let the interviewee speak his mind freely. The interviewer has no formal
or directive questions, but his all attention is t o the candidate. He
encourages the candidate to talk by a little prodding whenever he is silent
e.g. Mr. Ray, please tell us about yourself after yo ure graduated from
high school.
The idea is o give the candidate complete freedom to sell himself,
without the encumbrances of the interviewers question. But the
interviewer must be of higher calibre and must guide and relate the
information given by the app licant to the objective of th e interview.
4)Depth Interview:It is designed to intensely examine the candidates background and
thinking and to go into considerable detail on particular subjects of an
important nature and of special interest to the candidates. For example, if
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the candidate says that he is interested in tennis, a series of questions may
be asked to test the depth of understanding and interest of the candidate.
These probing questions must be asked with tact and through exhaustive
analysis; it is possible to get a good picture of th e candidate.
5)Stress Interview:It is designed to t est the candidate and hi s conduct and behaviour
by him under conditions o f stress and strain. The int erviewer may start
with Mr. Joseph, we do not thin k your qualifications and experience are
adequate for this position, and watch the reaction of the candidates. A
good candidates will not yield, on the contrary he may substantiate why
he is qualified to handle the job.
This type of interview is borrowed from the Military organisation
and this is very useful to test b ehaviour of individuals when they are faced
with disagreeable and trying situations.
6)Group Interview:It is designed to save busy executives time and t o see how the
candidates may be brought together in the employment office and they
may be int erviewed.
7)Panel Interview:A panel or interviewing board or selection committee may
interview the candidate, usually in th e case of supervisory and
managerial positions. This type of int erview pools the collective
judgment and wisdom of th e panel in the assessment of the candidate
and also in questioning the faculties of th e candidate
8)Sequential Interview:The sequential interview takes the one-to-one a step further and
involves a series of interview, usually utilizing the st rength and
knowledgebase of each interviewer, so that each interviewer can ask
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questions in relation to his o r her subject area of each candidate, as the
candidate moves from room to room.
9)structures Interview:In a st ructured interview, the interviewer uses preset standardized
questions, which are put to all the interviewees. This interview is also
called as Guided or Patterned interview. It is useful for valid
results, especially when dealing with the large number of app licants.
10) Unst ructured Interview:
It is also known as Unpatterned interview, the interview is
largely unplanned and the interviewee does most of the talking.
Unguided interview is advantageous in as much as it leads to a friendly
conversation between the interviewer and the interviewee and in the
process, the later reveals more of his or her desire and problems. But
the Unpatterned interview lacks unifo rmity and worse, this approach
may overlook key areas of the applicants skills or background. It is
useful when the interviewer tries to probe p ersonal details of the
candidate it analyse why they are not right for the job.
11) Mixed Interview:
In practice, the int erviewer while interviewing the job seekers
uses a blend of structured and structured and unstructured questions.
This approach is called the Mixed Interview. The structured questions
provide a base of interview more conv entional and permit greater
insights into the unique differences between applicants.
12) Impromptu Interviews:
This interview commonly occurs when employers a re approached
directly and tends to be very informal and unstructured. Applicants
should be prepared at all ti mes for on-the-spot interviews, especially in
situations such as a job fair or a cold call. It is an ideal time for
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employers to ask the candidate some basic questions t o determine
whether he/she may be interested in formally interv iewing the
candidate.
13) Dinner Interviews:
These interviews may be structured, informal, or socially
situated, such as in a restaurant. Decide what to eat quickly, some
interviewers will ask you to order first ( do not appear indecisive).
Avoid potentially messy foods, such as spaghetti. B e prepared for the
conversation to abruptly change from friendly chat to di rect interview
questions, however, do not underestimate the value of casual
discussion, some employers place a great value on it. B e prepared to
switch gears rapidly, from fun talk to bu siness talk.
14) Telephone Interviews:
Have a copy of your resume and any points you want to
remember to say nearby. If you are on your home t elephone, make sure
that all roommates or fami ly members are aware of the interview (no
loud stereos, barking dogs etc.). Speak a bit slower than usual. It is
crucial that you convey your enthusiasm verbally, since the inte rviewer
cannot see your face. If there are pauses, do not worry; the interviewer
is likely just taking some notes.
15) Second Inte rviews:
Job seekers are invited back after they have passed the first
initial interview. Middle or senior management generally conducts the
second interview, together or separately. Applicants can expect more
in-depth questions, and the employer will b e expecting a greater level
of preparation on the part of the candidates. Applicants should
continue to research the employer following the first interview, and b e
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prepared to use any information gained through the p revious interview
to their advantage.
STEP 4: -
REFERENCE CHECK:-
Many employers request names, addresses, and telephone
numbers of references for the purpose of verifying information and
perhaps, gaining additional background information on an applicant.
Although listed on the appli cation form, references are not u sually
checked until an applicant has successfully reached the fourth stage of asequential selection process. When the labour market is very tight,
organisations sometimes hire applicant s before checking references.
Previous employers, known as public figu res, university professors,
neighbours or friends can act as references. Previous employers are
preferable because they are already aware of th e applicants performance.
But, the problem with this reference is the tendency on the part of the
previous employers to over-rate the applicants p erformance just to get rid
of the person.
Organisations normally seek letters of reference or telephone
references. The latt er is advantageous because of its accuracy and low cost.
The telephone reference also has the advantage of soliciting i mmediate,
relatively candid comments and attitude can sometimes be in ferred from
hesitations and inflections in speech.
It may be stated that the information gathered through references
hardly influence selection decisions. The reasons are obvious:
1. The candidate approaches only those persons who would speak wellabout him or her.
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2. People may write favourably about t he candidate in order to get ridof him or her.
3. People may not like to divulge the truth about a candidate, lest itmight damage or ruin his/her career.
STEP 5: -
SELECTION DECISION: -
After obtaining information through the preceding st eps, selection
decision- the most critical o f all the steps- must be made. The othe r stages
in the selection process have been used to narrow the number of t he
candidates. The final decision has to be made th e pool of individuals who
pas the tests, int erviews and reference checks.
The view of the line manager will be generally considered in the final
selection because it is he/she who is responsible for the performance of the
new employee. The HR manager plays a crucial role in the final selection.
STEP 6: -
PHYSICAL EXAMINATION: -
After the selection decision and before the job offer is made, the
candidate is required to undergo a physical fitness test. A job offer is, often,
contingent upon the candidate being declared fit after the physical
examination. The results of the medical fitness test are recorded in a
statement and a re preserved in the personnel records. There a re several
objectives behind a physical t est. Obviously, one reason for a physical testis to detect if the individual carries any infectious disease. Secondly, the
test assists in determining whether an applicant is physically fit to p erform
the work. Thirdly, the physical examination in formation can be used to
determine if there are certain physical capabilities, which differentiate
successful and less successful employees. Fourth, medical check-up protects
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applicants with health defects from undertaking work that could be
detrimental to them or might o therwise endanger the employers property.
Finally, such an examination will p rotect the employer from workers
compensation claims that a re not valid because the injuries or i llness were
present when the employee was hired.
STEP 7: -
JOB OFFER: -
The next step in the selection process is job offer to those
applicants who have crossed all the previous hurdles. Job offer is made
through a letter of appointed. Such a letter generally contains a date by
which the appointee must report on duty. The appointee must be given
reasonable time for reporting. Thos is pa rticularly necessary when he or she
is already in employment, in which case the appoint ee is required to obtain
a relieving certificate from the previous employer. Again, a n ew job may
require movement to another city, which means considerable preparation,
and movement of property.
The company may also want the individual to d elay the date of
reporting on duty. If the new employees first job upon joining the company
is to go on company until perhaps a week before such training begins.
Naturally, this practice cannot be abused, especially if the individual is
unemployed and does not have sufficient finances.
Decency demands that th e rejected applicants be informed about
their non-selection. Their applicants may be preserved for future use, if
any. It needs no emphasis that the applications of selected candidates mustalso be preserved for the future references.
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STEP 8: -
CONTRACT OF EMPLOYMENT: -
After the job offer has been mad and candidates accept th e offer,
certain documents need to be executed by the employer and the candidate.
One such document is the attestation form. This fo rm contains vital details
about the candidate, which are authenti cated and attested by him/h er.
Attestation form will b e a valid record for the future reference.
There is also a need for preparing a contract of employment. The
basic information that should be included in a written contract of
employment will vary according to the level of the job, but the following
checklist sets out the typical h eadings:
1. Job title2. Duties, including a parse such as T he employee will perform
such duties and will be responsible to such a person, as the
company may from time to ti me direct.
3. Date when continuous employment starts and th e basis forcalculating service.
4. Rate of pay, allowance, overtime and shift rates, method ofpayments.
5. Hours of work including lunch break and overtime and shiftarrangements.
6. Holiday arrangements:y Paid holidays per year.
y Calculation of holiday pay.
y Qualifying period.
y Accrual of holidays and holiday pay.
y Details of holiday year.
y Dates when holidays can be taken.
y Maximum holiday that can be t ake at any one time.
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y Carryover of holiday entitlement.
y Public holidays.
7. Length of notice due to and from employee.
8. Grievances procedure (or reference to it).
9. Disciplinary procedure (or any reference to it).
10. Work rules (or any referen ce to them).
11. Arrangements for terminating employment.
12. Arrangements for union membership (if applicable).
13.Special terms relating to rights to patent s and designs,confidential information and restraints on trade after
termination of employment.
14.Employers right to vary t erms of the contract subject toproper notification being given.
Alternatively called employment agreements or simply bonds,
contracts of employment serve many useful purposes. Such contracts seek to
restrain job-hoppers, to protect knowledge and info rmation that might be
vital to a companys healthy bottom lin e and to prevent competitors from
poaching highly valued employees.
Great care is taken to draft th e contract forms. Often, services of
law firms (prominent firms in this category include Mulla, Craigie, Blunt
and Caroe, Crawford Bailey, Amarchand Mangaldas Hiralal, etc.) are
engag4d to get the forms drafted and finalized.
Most employers insist on agreements being signed by newly hired
employees. But high turnover sectors such as so ftware, advertising and
media are more prone to use contracts.
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The drawback with the contracts is that it is almost to enforce
them. A determined employee is bound to leave the organisation, contract
or no contract. The employee is prepa red to pay the penalty for breaching
the agreement or the new employer will provide compensations. It i s the
reason that several companies have scrapped the contracts altogether.
STEP 9: -
CONCLUDING THE SELECTION PROCESS : -
Contrary to popu lar perception, the selection process will not end
with executing the employment contract. There is anothe r step amore
sensitive one reassuring those candidates who have not selected, not because
of any serious deficiencies in their personality, but because their profile did
not match the requirement of the organisation. They must be told that those
who were selected were done purely on relative merit.
STEP 10: -
EVALUATION OF SELECTION PROGRAMME: -
The broad test of the effectiveness of the selection process is the
quality of the pe rsonnel hired. An organisation must have competent and
committed personnel. The selection process, if p roperly done, will ensure
availability of such employees. How to evaluate the effectiveness of a
selection programme? A periodic audit is the answer. People who work
independent of HR department must conduct audit. The table below
contains an outline that highlights th e areas and questions to be covered in
a systematic evaluation.
3.8 Four Approaches to Selection:
1). Ethnocentric Selection:
In this approach, staffing decisions are made at the organizations
headquarters. Subsidiaries have limited autonomy, and the employees from
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the headquarters at home and abroad fill key jobs. Nationals from the
parent country dominate the organisations at home and abroad.
2). Polycentric Selection:
In polycentric selection, each subsidiary is treated as a distinct
national entity with local control key financial targets and investment
decisions. Local citizens manage subsidiaries, but the key jobs remain with
staff from the parent country. This is the approach, which is largely
practiced in our country
3). Regiocentric Selection: -
Here, control within the group and the movements o f staff are
managed on a regional basis, reflecting the particular disposition of
business and operations within th e group. Regional managers have greater
discretion in decision. Movement of staff is largely restricted to specific
geographical regions and promotions to the jobs continue to be dominated
by managers from the parents company.
4). Geocentric Staffing: -
In this case, business strategy is integrated thoroughly on global basis.
Staff development and promotion are based on ability, not nationality. The
broad and other parts of the top management structure a re thoroughly
international in composition. Needless to say, such organisations are
uncommon.
a.PROBLEMS IN EFFECTIVE SELECTION:The main objective of selection is t o hire people having competence
and commitment. This obj ective s often defeated because of certain
barriers. The impediments, which check effectiveness of selection, are
perception, fairness, validity, reliability and pressure.
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Perception: -
Our inability to understand others accurately is p robably the
most fundamental barrier to selecting the right candidate. Selection
demands an individual or a group of people to assess and compare the
respective competencies of othe rs, with the aim of choosing the right
persons for the jobs. But our views are highly p ersonalized. We all perceive
the world differently. Our limited perceptual ability i s obviously a
stumbling block to the objective and rational selection of the people.
Fairness: -
Fairness in selection requires that no individual should be
discriminated against on the basis o f religion, region, race or gender. But
the low numbers of women and other less privileged sections of the soci ety
in middle and senior management positions and open discrimination on the
basis of age in job advertisements and in th e selection process would suggest
that all the efforts to minimize inequity have not been effective.
Validity: -
Validity, as explained earlier, is a test that helps predict job
performance of an incumbent. A test that has been validated can
differentiate between the employees who perform well and those who will
not. However, a validated test does not predict job Success accurately. It
can only increase possibility of success.
Reliability: -
A reliable method is one, which will p roduce consistent results
when repeated in similar situations. Like validated test, a reliable test may
fail to predict job performance with precision.
Pressure: -
Pressure is brought on t he selectors by politicians,
bureaucrats, relatives, friends and peers to select particular candidates.
Candidates selected because of compulsions are obviously not the right
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ones. Appointments to publi c sectors undertakings generally take place
under such pressures.
3.10 Difference (Recruitment and Selection)
1.) Recruitment is the process of searching for prospective candidates and
motivating them to app ly for job in t he organisation. Whereas, selection is a
process of choosing most suitable candidates out of those, who are
interested and also qualified for job.
2.) In the recruitment process, vacancies available are finalized, publicity is
given to them and application s are collected from interested candidates. In
the selection process, available applications are scrutinized. Tests, interview
and medical examination are conducted in order t o select most suitable
candidates.
3.) In recruitment the purpose is to attract maximum numbers of suitable
and interested candidates through applications. In selection process the
purpose is that the best candidate out of those qualified and interested in
the appointment.
4.) Recruitment is prior to selection. It creates proper base for actual
selection. Selection is next to recruitment. It is out of candidates
available/interested.
5.) Recruitment is the positiv e function in which inte rested candidates are
encouraged to submit application. Selection is a n egative function in which
unsuitable candidates are eliminated and the best one is selected.
6.) Recruitment is the short process. In recruitment publicity is given to
vacancies and applications are collected from different sources Selection is
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a lengthy process. It involves scrutiny of applications, giving tests,
arranging interviews and medical examination.
7.) In recruitment services of expert is not required. Whereas in selection,
services of expert is required.
8.) Recruitment is not costly. Expenditure is required mainly for
advertising the posts. Selection is a costly activity, as expenditure is needed
for testing candidates and conduct of interviews.
Retention:
To retain the employees is very important in the organisation if
the employees star to leave the organisation then its a heavy loss for the
organisation so it is essential to retain them in the organisation to mke the
employee retain the organisation must provide a good welfare activities so that
the organisation can make the employee retain in the organisation
Importance Of Employee Retention
Now that so much is being done by organizations to retain its employees,
Why is retention so important? Is it just to reduce the turnover costs? Well, the answer is
a definite no. Its not only the cost incurred by a company that emphasizes the need of
retaining employees but also the need to retain talented employees from getting poached.
The process of employee retentionwill benefit an organization in the following ways:
1. The Cost of Turnover:
The cost of employee turnover adds hundreds of thousands of money to a
company's expenses. While it is difficult to fully calculate the cost of turnover
(including hiring costs, training costs and productivity loss), industry experts often
quote 25% of the average employee salary as a conservative estimate.
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2. Loss of Company Knowledge:
When an employee leaves, he takes with him valuable knowledge about the
company, customers, current projects and past history (sometimes to competitors).
Often much time and money has been spent on the employee in expectation of a future
return. When the employee leaves, the investment is not realized.
3. Interruption of Customer Service:
Customers and clients do business with a company in part because of the people.
Relationships are developed that encourage continued sponsorship of the business.
When an employee leaves, the relationships that employee built for the company are
severed, which could lead to potential customer loss.
4. Turnover leads to more turnovers:
When an employee terminates, the effect is felt throughout the organization. Co-workers are often required picking up the slack. The unspoken negativity often
intensifies for the remaining staff.
5. Goodwill of the company:
The goodwill of a company is maintained when the attrition rates are low.
Higher retention rates motivate potential employees to join the organization.
6. Regaining efficiency:
If an employee resigns, then good amount of time is lost in hiring a newemployee and then training him/her and this goes to the loss of the company directly
which many a times goes unnoticed. And even after this you cannot assure us of the
same efficiency from the new employee
What Makes Employee Leave?
Employees do not leave an organization without any significant reason. There
are certain circumstances that lead to their leaving the organization.
The most common reasons can be:
Job is not what the employee expected to be:
Sometimes the job responsibilities dont come out to be same as expected by the
candidates. Unexpected job responsibilities lead to job dissatisfaction.
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Job and person mismatch:
A candidate may be fit to do a certain type of job which matches his personality.
If he is given a job which mismatches his personality, then he wont be able to perform it
well and will try to find out reasons to leave the job.
No growth opportunities:
No or less learning and growth opportunities in the current job will make
candidates job and career stagnant.
Lack of appreciation:
If the work is not appreciated by the supervisor, the employee feels de-motivated
and loses interest in job. Lack of trust and support in co-workers, seniors and
management.
Trust is the most important factor that is required for an individual to stay in the
job. Non-supportive co-workers, seniors and management can make office environment
unfriendly and difficult to work in.
Stress from overwork and work life imbalance:
Job stress can lead to work life imbalance which ultimately many times lead to
employee leaving the organization.
Compensation:
Better compensation packages being offered by other companies may attract
employees towards themselves.
New job offer:
An attractive job offer which an employee thinks i
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