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RECRUITMENT
According to Edwin B. Flippo, Recruitment is the process of searching the candidates for employment and stimulating them to apply for jobs in the organization. Recruitment is the activity that links the employers and the job seekers.

02. SORCES OF RECRUITMENT Internal Sources of Recruitment


The internal sources of recruitment are:1. Promotions: Promotion means to give a higher position, status, salary and responsibility to the employee. So, the vacancy can be filled by promoting a suitable candidate from the same organization. 2. Transfers: Transfer means a change in the place of employment without any change in the position, status, salary and responsibility of the employee. So, the vacancy can be filled by transferring a suitable candidate from the same organization. 3. Internal Advertisements: Here, the vacancy is advertised within the organization. The existing employees are asked to apply for the vacancy. So, recruitment is done from within the organization. 4. Retired Managers: Sometimes, retired managers may be recalled for a short period. This is done when the organization cannot find a suitable candidate. 5. Recall from Long Leave: The organization may recall a manager who has gone on a long leave. This is done when the organization faces a problem which can only be solved by that particular manager. After he solves the problem, his leave is extended.

Merits of Internal Sources


The benefits / advantages / merits of using internal sources of recruitment:1. It is time saving, economical, simple and reliable. 2. There is no need of induction training because the candidate already knows everything about the organization, the work, the employee, the rules and regulations, etc. 3. It motivates the employees of work hard in order to get higher jobs in the same organization. 4. It increases the morale of the employees and it improves the relations in the organization. 5. It reduce executive turnover. 6. It develops loyalty and a sense of responsibility.

Demerits of Internal Sources


The limitations / demerits of using internal sources of recruitment:1. It prevents new blood from entering the organization. New blood brings innovative ideas, fresh thinking and dynamism into the organization. 2. It has limited scope because it is not possible to fill up all types of vacancies from within the organization. 3. The position of the person who is promoted or transferred will be vacant. 4. There may be bias or partiality in promoting or transferring persons from within the organization. 5. Those who are not promoted will be unhappy. 6. The right person may be promoted or transferred only if proper confidential reports of all employees are maintained. This involves a lot of time, money and energy.

External Sources of Recruitment


The external sources of recruitment are:1. Management Consultants: Management consultants are used for selecting higher-level staff. They act as a representative of the employer. They make all the necessary arrangements for recruitment and selection. In return for their services, they take a service charge or commission. 2. Public Advertisements: The Personnel department of a company advertises the vacancy in newspapers, the internet, etc. This advertisement gives information about the company, the job and the required qualities of the candidate. It invites applications from suitable candidates. This source is the most popular source of recruitment. This is because it gives a very wide choice. However, it is very costly and time consuming. 3. Campus Recruitment: The organization conducts interviews in the campuses of Management institutes and Engineering Colleges. Final year students, who're soon to get graduate, are interviewed. Suitable candidates are selected by the organization based on their academic record, communication skills, intelligence, etc. This source is used for recruiting qualified, trained but inexperienced candidates. 4. Recommendations: The organization may also recruit candidates based on the recommendations received from existing managers or from sister companies. 5. Deputation Personnel: The organization may also recruit candidates who are sent on deputation by the Government or Financial institutions or by holding or subsidiary companies.

Advantages of External Sources


The benefits / merits / advantages of using external sources of recruitment:1. It encourages young blood with new ideas to enter the organization. 2. It offers wide scope for selection. This is because a large number of suitable candidates will come for the selection process. 3. There are less chances of bias or partiality. 4. Here there is no need to maintain confidential records.

Limitations of External Sources


The demerits / limitations of using external sources of recruitment:1. It is very costly. This is because advertisements, test, medical examination etc., has to be conducted. 2. It is very time consuming. This is because the selection process is very lengthy. 3. It may not develop loyalty among the existing managers. 4. The existing managers may leave the organization if outsiders are given higher post.

Sources of Recruitment
The different sources of recruitment are classified into two categories, viz. 1. 2.

Internal: sources of recruitment are from within the organization. External: sources of recruitment are from outside the organization.

Q. What are the different sources of recruitment? Explain the merits and demerits of each. Ans. The sources of recruitment are broadly divided into internal sources and external sources consisting of the following: Internal sources of Recruitment: 1. Present Permanent Employees : Organizations consider the candidates from this source for higher level of jobs due to availability of most suitable candidates for jobs relatively or equally to external sources, to meet the trade union demands and due to the policy of the organization to motivate the present employees. 2. Present temporary/casual Employees: Organizations find this source to fill the vacancies relatively at the lower level owing to the availability of suitable candidates or trade union pressures or in order to motivate them on present job.

3. Retrenched or Retired Employees: Employees retrenched due to lack of work are given employment by the organization due to obligation, trade union pressure etc. Sometimes they are re-employed by the organization as a token of their loyalty to the organization or to postpone some interpersonal conflicts for promotion.

4. Dependents of Deceased, Disabled, retired and present employees: Some organizations function with a view to developing the commitment and loyalty of not only the employee but also his family members.

5. Employee Referrals: Present employees are well aware of the qualifications, attitudes, experience and emotions of their friends and relatives. They are also aware of the job requirements and organizational culture of their company. As such they can make preliminary judgment regarding the match between the job and their friends and relatives.

External Sources of Recruitment 6 Campus Recruitment: These candidates are directly recruited by the Co; from their college/educational institution. They are inexperienced as far as work experience is concerned. 1 Private Employment Agencies/Consultants: Public employment agencies or consultants like ABC Consultants in India perform recruitment functions on behalf of a client company by charging fees. Line managers are relieved from recruitment functions and can concentrate on operational activities. 2 Public Employment Exchanges: The Government set up Public Employment Exchanges in the country to provide information about vacancies to the candidates and to help the organization in finding out suitable candidates. As per the Employment Exchange act 1959, makes it obligatory for public sector and private sector enterprises inIndia to fill certain types of vacancies through public employment exchanges. 3 Professional Organizations: Professional organizations or associations maintain complete bio-data of their members and provide the same to various organizations on requisition. They act as an exchange between their members and recruiting firm.

4 Data Banks: The management can collect the bio-data of the candidates from different sources like Employment Exchange, Educational Training Institutes, candidates etc and feed them in the computer. It will become another source and the co can get the particulars as and when required. 5 Casual Applicants: Depending on the image of the organization its prompt response participation of the organization in the local activities, level of unemployment, candidates apply casually for jobs through mail or handover the application in the Personnel dept. This would be a suitable source for temporary and lower level jobs. 6 Similar Organizations: Generally experienced candidates are available in organizations producing similar products or are engaged in similar business. The Management can get potential candidates from this source.

7 Trade Unions: Generally unemployed or underemployed persons or employees seeking change in employment put a word to the trade union leaders with a view to getting suitable employment due to latter rapport with the management.

8 Walk In: The busy organization and rapid changing companies do not find time to perform various functions of recruitment. Therefore they advise the potential candidates to attend for an interview directly and without a prior application on a specified date, time and at a specified place.

9 Consult In: the busy and dynamic companies encourage the potential job seekers to approach them personally and consult them regarding the jobs. The companies select the suitable candidates and advise the company regarding the filling up of the positions. Head hunters are also called search consultants.

10 Body Shopping: Professional organizations and the hi-tech training develop the pool of human resource for the possible employment. The prospective employers contact these organizations to recruit the candidates. Otherwise the organizations themselves approach the prospective employers to place their human resources. These professional and training institutions are called body shoppers and these activities are known as body shopping. The body shopping is used mostly for computer professionals. Body shopping is also known as employee leasing activity.

11 Mergers and Acquisitions: Business alliances like acquisitions, mergers and take over help in getting human resources. In addition the companies do also alliances in sharing their human resource on adhoc basis.

12 E_recruitment: The technological revolution in telecommunications helped the organizations to use internet as a source of recruitment. Organizations advertise the job vacancies through the world wide wed (www). The job seekers send their applications through e-mail using the internet.

13 Outsourcing: Some organizations recently started developing human resource pool by employing the candidates for them. These organizations do not utilize the human resources; instead they supply HRs to various companies based on their needs on temporary or ad-hoc basis.

Merits and Demerits of Internal Sources of Recruitment

Sr.

Merits of Internal Sources of Recruitment

1. 2. 3.

Demerits of Internal Sources of Recruitment Trade union pressure may not always give the right Motivates present employees when they are candidate for the job. The management may have upgraded internally. to consider some concessions. Retrenched workers get an opportunity to work Managements gets a chance to postpone again. promotion due to interpersonal conflicts. Dependents of the deceased get a job easily Excessive dependence on this source results in in-

4. 5. 6. 7.

Morale of employees is improved Loyalty, commitment, security of present employees can be enhanced Cost of recruitment, training, induction, orientation, etc is reduced Trade unions can be satisfied.

breeding, discourages flow of new blood into the organization. The organization becomes dull without innovations, new ideas, excellence and expertise.

Merits and Demerits of External of Recruitment

Sr. 1. 2.

3. 4. 5. 6. 7. 8. 9.

Merits of External Sources of Recruitment Demerits of External Sources of Recruitment The candidates with skill, knowledge talents etc are generally available. Campus recruited employees lack work experience. Cost of recruitment is high and there is no Cost of employees can be minimized. confidentiality. Expertise, excellence and experience in other Specified vacancies have to be filled by candidates organizations can be easily brought into the referred by employment exchanges which do not organization. allow other candidates to be eligible. Existing sources will also broaden their personality. Human Resource mix can be balanced Qualitative human resource benefits the organization in the long run. Reduction in time for recruitment Increase in the selection ratio i.e. recruiting more candidates. HR professionals can concentrate on strategic issues.

Sources Of Recruitment
Every organization has the option of choosing the candidates for its recruitment processes from two kinds of sources: internal and external sources. The sources within the organization itself (like transfer of employees from one department to other, promotions) to fill a position are known as the internal sources of recruitment. Recruitment candidates from all the other sources (like outsourcing agencies etc.) are known as the external sources of recruitment.

SOURCES OF RECRUITMENT

Internal Sources Of Recruitment


1. TRANSFERS: The employees are transferred from one department to another according to their efficiency and experience. 2. PROMOTIONS: The employees are promoted from one department to another with more benefits and greater responsibility based on efficiency and experience. 3. Others are Upgrading performance. and Demotion of present employees according to their

4. Retired and Retrenched employees may also be recruited once again in case of shortage of qualified personnel or increase in load of work. Recruitment such people save time and costs of the organizations as the people are already aware of the organizational culture and the policies and procedures. 5. The dependents and relatives of Deceased employees and Disabled employees are also done by many companies so that the members of the family do not become dependent on the mercy of others.

External Sources of Recruitment

1. PRESS ADVERTISEMENTS Advertisements of the vacancy in newspapers and journals are a widely used source of recruitment. The main advantage of this method is that it has a wide reach. 2. EDUCATIONAL INSTITUTES Various management institutes, engineering colleges, Medical Colleges etc. are a good source of recruiting well qualified executives, engineers, medical staff etc. They provide facilities for campus interviews and placements. This source is known as Campus Recruitment. 3. PLACEMENT AGENCIES Several private consultancy firms perform recruitment functions on behalf of client companies by charging a fee. These agencies are particularly suitable for recruitment of executives and specialists. It is also known as RPO (Recruitment Process Outsourcing) 4. EMPLOYMENT EXCHANGES Government establishes public employment exchanges throughout the country. These exchanges provide job information to job seekers and help employers in identifying suitable candidates.

5. LABOUR CONTRACTORS Manual workers can be recruited through contractors who maintain close contacts with the sources of such workers. This source is used to recruit labor for construction jobs.

6. UNSOLICITED APPLICANTS Many job seekers visit the office of well-known companies on their own. Such callers are considered nuisance to the daily work routine of the enterprise. But can help in creating the talent pool or the database of the probable candidates for the organization.

7. EMPLOYEE REFERRALS / RECOMMENDATIONS many organizations have structured system where the current employees of the organization can refer their friends and relatives for some position in their organization. Also, the office bearers of trade unions are often aware of the suitability of candidates. Management can inquire these leaders for suitable jobs. In some organizations these are formal agreements to give priority in recruitment to the candidates recommended by the trade union.

8. RECRUITMENT AT FACTORY GATE Unskilled workers may be recruited at the factory gate these may be employed whenever a permanent worker is absent. More efficient among these may be recruited to fill permanent vacancies.