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Sources of Recruitment
The different sources of recruitment are classified into two categories, viz.,
1. Internal : sources of recruitment are from within the organisation.
2. External: sources of recruitment are from outside the organisation.
4. Retired Managers : Sometimes, retired managers may be recalled for a short period.
This is done when the organisation cannot find a suitable candidate.
5. Recall from Long Leave : The organisation may recall a manager who has gone on a
long leave. This is done when the organisation faces a problem which can only be solved
by that particular manager. After he solves the problem, his leave is extended.
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.
The following factors should be taken into consideration in determining wage and
salary structure of workers:
by a job description and job evaluation, those that are usually taken into consideration for wage
and salary administration are:
The organizations ability to pay -Wage increases should be given by those organizations
which can afford them. Companies that have good sales and therefore high profits tend to pay
higher wages than those which are running at a loss or earning low profits because of the high
cost of production or low sales.
Supply and demand of labour -If the demand and certain skills are high and the supply is low
the result is rise in the price to be paid for these skills. The other alternative is to pay higher
wages if the labour supply is scarce and lower wages when it is excessive.
The cost of living -When the cost of living increases, workers and trade unions demand adjusted
wages to offset the erosion of real wages. However when living costs are stable or decline the
management does not resort with this argument as a reason for wage reduction.
The living wage -Employers feel that the level of living prescribed in workers budget is opened
to argument since it is based on subjective opinion.
Job requirements -Jobs are graded according to the relative skill responsibility and job
conditions required.
Trade unions bargaining power -Trade unions do affect the rate of wages. Generally the
stronger and more powerful trade union, higher the wages.
Productivity -Productivity is another criterion and is measured in terms of output man-hour. It is
not due to labour efforts alone. Technological improvements, greater ingenuity and skill by the
labour are all responsible for the increase in productivity.
Prevailing market rate -This is also known as comparable wages or going wage rate. Reason
behind this is competition demand that competitors adhere to the same relative wage level.
Skill levels available in the market -With the rapid growth of industries, business trade there is
shortage of skilled resources. The technological development, automation has been affecting the
skilled levels at a faster rate.
Psychological and social factors -This determine in a significant measure how hard a person
will work for the compensation received or what pressures he will exert to get his compensation
increased. Psychologically, persons perceive the level of wages as a measure of success in life.
Sociologically and ethically, people feel that equal work should carry equal that wages should
be commensurate with their efforts, that they are not exploited, and that no distinction is made on
the basis of caste, color, sex or religion. To satisfy the conditions of equity, fairness and justice,
a management should take these factors into consideration.