Recruitment is the generating of applications or applicants for specific

positions to be filled up in the organisation. In other words, it is a process of

searching for and obtaining applicants for jobs so that the right people in right
number can be selected. Go through the following definitions of recruitment.
These will help you understand the meaning of recruitment in a better manner.
According to Dale Yoder, Recruitment is a process to discover the sources of
manpower to meet the requirements of the staffing schedule and to employ
effective measures for attracting that manpower in adequate numbers to
facilitate effective selection of an efficient working force.
In the words of Werther and Davis, Recruitment is the 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 applicants from which new employees are selected.
Flippo has defined recruitment as a process of searching for prospective
employees and stimulating and encouraging them to apply for jobs in an
organisation.
According to Bergmann and Taylor Recruitment is the process of locating,
identifying, and attracting capable applicants.
Recruitment can now easily be defined as the process of searching for and
securing applicants for the various job positions which arise from time to time
in the organisation.

Factors affecting recruitment:

There are a number of factors that affect recruitment.

These are broadly classified into two categories:

1. Internal Factors
2. External Factors
These are discussed one by one.

1. Internal Factors:
The internal factors also called endogenous factors are the factors within the
organisation that affect recruiting personnel in the organisation. Some of these
are mentioned here.
a. Size of the Organisation:
The size of an organisation affects the recruitment process. Experience
suggests that larger organisations find recruitment less problematic than
organisations with smaller in size.
b. Recruiting Policy:
The recruiting policy of the organisation i.e., recruiting from internal sources
(from own employees) and from external sources (from outside the
organisation) also affects recruitment process. Generally, recruiting through
internal sourcing is preferred, because own employees know the organisation
and they can well fit into the organisations culture.
c. Image of Organisation:
Image of organisation is another internal factor having its influence on the
recruitment process of the organisation. Good image of the organisation
earned by a number of overt and covert actions by management helps attract
potential and competent candidates. Managerial actions like good public

relations, rendering public services like building roads, public parks, hospitals
and schools help earn image or goodwill for the organisation. That is why blue
chip companies attract large number of applications.
d. Image of Job:
Just as image of organisation affects recruitment so does the image of a job
also. Better remuneration and working conditions are considered the
characteristics of good image of a job. Besides, promotion and career
development policies of organisation also attract potential candidates.

2. External Factors:
Like internal factors, there are some factors external to organisation which has
their influence on recruitment process.
Some of these are given below:
a. Demographic Factors:
As demographic factors are intimately related to human beings, i.e.,
employees, these have profound influence on recruitment process.
Demographic factors include sex, age, literacy, economic status etc.
b. Labour Market:
Labour market conditions i.e., supply and demand of labour is of particular
importance in affecting recruitment process. For example, if the demand for a
specific skill is high relative to its supply, recruiting employees will involve
more efforts. On the contrary, if supply is more than demand for a particular
skill, recruitment will be relatively easier.
In this context, the observation made by 11PM in regard to labour market in
India is worth citing: The most striking feature in the Indian Labour market is

the apparent abundance of labour yet the right type of labour is not too
easy to find.
c. Unemployment Situation:
The rate unemployment is yet another external factor having its influence on
the recruitment process. When the unemployment rate in a given area is high,
the recruitment process tends to be simpler. The reason is not difficult to seek.
The number of applicants is expectedly very high which makes easier to
attract the best qualified applicants. The reverse is also true. With a low rate of
unemployment, recruiting process tends to become difficult.
d. Labour Laws:
There are several labour laws and regulations passed by the Central and
State Governments that govern different types of employment. These cover
working conditions, compensation, retirement benefits, and safety and health
of employees in industrial undertakings.
Child Labour (Prohibition and Regulation) Act, 1986, for example, prohibits
employment of children in certain employments. Similarly, several other acts
such as Employment Exchange (Compulsory Notification of Vacancies) Act,
1959, the Apprentices Act, 1961; die Factory Act, 1948 and the Mines Act,
1952 deal with recruitment.
e. Legal Considerations:
Another external factor is legal considerations with regard to employment.
Reservation of jobs for the scheduled castes, scheduled tribes, and other
backward classes (OBCs) is the popular example of such legal consideration.
The Supreme Court of India has given its verdict in favour of 50 per cent of

jobs and seats. This is so in case of admissions in the educational institutions

also.
Recruitment Sources: Internal and External Sources of Recruitment!
After determining the manpower requirements of the enterprise and finalizing
job requirements of the tasks, the next problem is where to get it. This is done
through recruitment. What is recruitment? Simply stated, recruitment is a
process of obtaining interested people/applicants in search of job.
According to Edwin B. Flippo, Recruitment is a process of searching for
prospective employees and stimulating and encouraging then to apply for jobs
in an organization. Recruitment is as simple in principle is not so simple in
practice. Recruitment in small-scale enterprises is more difficult because
these cannot compete with their larger counterparts in terms of salary, fringe
benefits and apparent stability.
These limitations impose severe problems for small enterprises for attracting
qualified and committed work force. No doubt, by paying emoluments
comparable to those offered by the large units as also emphasis on
promotional opportunities, the small entrepreneurs can offset, to a great
extent, above mentioned handicaps. The entrepreneur should also strive hard
to create a public image of his enterprise as a worthy place to work and
prosper. However, this is easier said than done.
As regards recruitment in small-scale enterprises, the most prevalent practice
exercised in small-scale units is to seek out and select candidates rather than
wait for applications as happens in the case of large-scale industrial units.

Broadly, there could be two sources of recruitment in small-scale

enterprises:
1. Internal Sources
2. External Sources
A brief mention about these follows in seriatim:

1. Internal Sources:
Internal sources refer to recruitment from the present work force of the
enterprise itself. If there is a vacancy in the enterprise at any time, someone
already working in the enterprise in promoted or transferred, as the case may
be. Filling vacancies from own existing employees boosts the morale of the
employees because they look forward scope and avenues for their career
advancement.
Such hope for future often motivates the employees to put in their best
performance. However, this method of recruitment has other side also. One of
the serious drawbacks of this manner, to mention, is that while the quality of
level of employees remains limited to that of the existing employees, on the
one hand, the advantages of inducting fresh blood are also missed, on the
other.

2. External Sources:
It will not be less than correct to state that external sources overcome the
limitations, just mentioned above, imposed by internal sources of recruitment.
The various external sources an enterprise can opt for recruiting his
employees can broadly be classified into:
(i) Employees Referrals:

Many a times, the existing employees of the enterprise and other sister
organizations can refer to suitable candidates. In this case, kinship, friendship
and village ties of the existing employees expectedly play a major role in the
recruitment process.
(ii) Recommendations:
Sometimes the entrepreneurs receive recommendations from their friends and
relatives to employ the persons known to them. The experience suggests that
the entrepreneurs need to be cautious in considering such recommendations.
The best principle in such case will be: Never hire a person to please
someone, make sure that you want him.
(iii) Unsolicited Applications:
This is one of the common manners exercised in recruiting employees in
small enterprises. The enterprise receives applications and requests for jobs
from several sources. The applications are kept and as and when there is a
need to recruit people, these applicants are contacted, if still available.
(iv) Advertisements:
If the entrepreneurs have sufficient time at their disposal to process and
interview the candidates, they advertise their vacancies in the newspapers
and other Medias like radio and television. This manner ensures wider and
better choice for entrepreneurs to recruit the employees.
In other words, most small-scale enterprises follow the home grow tendency.
Koonz and ODonnel call it raise talent rather than raid for it. In actual
practice, as the various research studies indicate (see Table 29.1), the jobsearch-methods used by small-scale industries are mainly internal in nature.

Table 29.1: Research Studies on Recruitment Sources in Small-Scale

Enterprises in India:
Sources of
Recruitment

Research Study
S.B. Rangnekar: Social and

Caste and

Economic Aspects of Small

Communal loyalty

Industries in Ludhiana,

played a major part UNESCO Research Centre

in recruitment

Publication, 1962.

Occasional
advertisements, gate Shashi Bala: Management
hiring. Kinship ties

of Small-Scale Industries,

played a major role

Deep & Deep Publications,

in recruitment.

New Delhi, 1984.

Kinship, friendship
and village ties

M. N. Srinivas: A

played a major part Sociological Study of Okhla

in the recruitment

Industrial Estate, Delhi,

process

1962.

67 per cent of the

M. C. Gupta:

employees through

Entrepreneurship in Small-

personal sources

Scale Industries, Anmol

and 33 per cent

Publications, New Delhi,

through employment 1984.

exchanges (Total

Workers: 1236)
Direct request from
candidates,

Hein Streefkerk: Too Little to

intermediaries,

Live On, Too Much to Die

advertisements

On, Economic and Political

played a major part. Weekly, April, 1981.

V. Surya Prakasa Rao:
Pre-employment

Human Resource

acquaintances,

Management in Small

casual callers, gate Industry, Discovery

hiring major factor in Publishing House, New
recruitment

Delhi, 1991.

Now, the different sources of recruiting personnel in small-scale

enterprises can be presented as follows:

Factors Affecting Recruitment Process # 1.

The Economic Factors:
Economic conditions of a country influence the recruitment process in all the
organisations. The globalisation and liberalisation of Indian economy, since
1991 onwards has resulted in a boom in financial services in India. As a result
of the new economic policy, the demand for MBA/CA/ICWA/CFA students has
grown tremendously.
Even the engineering students had to get finance/marketing degrees or
diplomas to encash job opportunities as their demand, especially in the
manufacturing sector has not kept pace. People with specific fund
management skills were in great demand.
Companies had to resort to extensive advertising to hire suitable people. But
the trend had changed by the late 1990s. Except software and
pharmaceuticals sectors, recession had set in almost all the other sectors.
As a result, companies had to cut down their recruitment costs and they had
to resort to less expensive media advertising only in place of campus
recruitment, search firms, employee referrals, contractors etc.

Factors Affecting Recruitment Process # 2.

The Social Factors:
The social factors also affect the recruitment policy of an organisation. Social
changes in the past two decades in India have forced organisations to place

increased emphasis on recruitment. The mentality of modern employees has

changed from just any job to asatisfying career.
If they are not satisfied with their jobs they do-not hesitate to leave the
organisations and go in search of greener pastures outside. To ward off such
problems, the companies, now-a-days, present a more realistic picture of the
job and the encouraging career opportunities to prospective employees
through innovative recruitment campaigns.
The organisations have to be aware of and sensitive to the prevailing social
values and norms, otherwise their recruitment efforts could go off the track.
The organisations should emphasise opportunities for training and
development and progression through a series of jobs within the same
organisation.

Factors Affecting Recruitment Process # 3.

The Technological Factors:
The globalisation and liberalisation of economy since 1991 has brought about
rapid changes in the fields of banking, electronics, telecommunications,
automobiles, software and pharma industries. New technologies have created
new jobs and existing jobs have undergone rapid changes. Several old jobs
have disappeared from the scene.
Technological changes have led to a chronic shortage of people with requisite
skills and knowledge. In such a scenario, companies have to step up their
recruitment efforts to compete successfully for a small number of suitable
candidates.

Factors Affecting Recruitment Process # 4.

The Political Factors:
The late 1980s brought the concept of equal employment opportunity in
the corporate circles. Companies at last, realised that employment should be
defined in terms of ability to perform the job, rather than in terms of race,
colour, religion, sex or national origin.
However, political compulsions and constitutional provisions covering
reservations for special groups, come in the way of recruiting people, based
solely on qualifications, skills and experience. Influence of unions,
recommendations of friends and relatives of management, political leaders
etc. also play an important role in recruitment policies followed by a concern.

Factors Affecting Recruitment Process # 5.

The Legal Factors:
The different legislative policies governing child labour, night shifts, bonded
labour, contract labour etc. have brought the legal environment to be a major
factor to be looked into carefully by all companies intending to recruit people
for various positions.
Some of the important legislations affecting recruitment are:
(i) The Factories Act, 1948:
The Factories Act prohibits the employment of women and children below 14
years of age in certain jobs which involve night work, underground jobs,
carrying heavy loads etc.

(ii) The Apprentices Act, 1961:

The Apprentices Act provides for a machinery to lay down syllabi and specify
period of training, mutual obligations of apprentices and employees etc. The
apprentice after serving a contractual term of training can be taken on regular
rolls. The Act as amended in 1986, provides for revised rates of compensation
during the apprenticeship period and for failure on the part of the employer to
execute the terms of the contract.
(iii) The Employment Exchanges Act, 1959:
The Employment Exchanges Act, 1959 requires all employers to notify the
vacancies arising in their establishments to prescribed employment exchange
before these are filled. The Act covers all establishments in public sector and
non-agricultural establishments employing 25 or more workers in the private
sector.
(iv) The Contract Labour Act, 1970:
The Contract Labour Act is applicable to every establishment (contractor)
employing 20 or more persons. It tries to regulate the employment conditions
of contract labour in certain establishments and also provides for the abolition
of contract labour in certain circumstances.
(v) Bonded Labour System (Abolition) Act, 1976:
This Act provides for the abolition of bonded labour (system of forced labour to
liquidate debts payable to parties who are bent on exploiting the vulnerability
of the victim) or his family members.

(vi) The Child Labour Act, 1986:

The Child Labour Act prohibits the employment of children below 14 years of
age to certain employments. This has become a serious issue in India recently
when German firms refused to accept carpets exported from Uttar Pradesh,
objecting to the employment of child labour in the carpet industry.

The five steps involved in recruitment process are as follows: (i) Recruitment
Planning (ii) Strategy Development (iii) Searching (iv) Screening (v)
Evaluation and Control.
These are depicted in Figure 6.2.

Now, a brief description of these follows:

1. Recruitment Planning:
The first step involved in the recruitment process is planning. Here, planning
involves to draft a comprehensive job specification for the vacant position,
outlining its major and minor responsibilities; the skills, experience and
qualifications needed; grade and level of pay; starting date; whether
temporary or permanent; and mention of special conditions, if any, attached to
the job to be filled

2. Strategy Development:
Once it is known how many with what qualifications of candidates are
required, the next step involved in this regard is to devise a suitable strategy
for recruiting the candidates in the organisation.
The strategic considerations to be considered may include issues like whether
to prepare the required candidates themselves or hire it from outside, what
type of recruitment method to be used, what geographical area be considered
for searching the candidates, which source of recruitment to be practiced, and
what sequence of activities to be followed in recruiting candidates in the
organisation.

3. Searching:
This step involves attracting job seekers to the organisation. There are broadly
two sources used to attract candidates.
These are:

1. Internal Sources, and

2. External Sources
These have been just discussed, in detail, under 6.3 Sources of Recruitment.

4. Screening:
Though some view screening as the starting point of selection, we have
considered it as an integral part of recruitment. The reason being the selection
process starts only after the applications have been screened and shortlisted.
Let it be exemplified with an example.
In the Universities, applications are invited for filling the post of Professors.
Applications received in response to invitation, i.e., advertisement are
screened and shortlisted on the basis of eligibility and suitability. Then, only
the screened applicants are invited for seminar presentation and personal
interview. The selection process starts from here, i.e., seminar presentation or
interview.
Job specification is invaluable in screening. Applications are screened against
the qualification, knowledge, skills, abilities, interest and experience
mentioned in the job specification. Those who do not qualify are straightway
eliminated from the selection process.
The techniques used for screening candidates vary depending on the source
of supply and method used for recruiting. Preliminary applications, deselection tests and screening interviews are common techniques used for
screening the candidates.

5. Evaluation and Control:

Given the considerable cost involved in the recruitment process, its evaluation
and control is, therefore, imperative.
The costs generally incurred in a recruitment process include:
(i) Salary of recruiters
(ii) Cost of time spent for preparing job analysis, advertisement
(iii) Administrative expenses
(iv) Cost of outsourcing or overtime while vacancies remain unfilled
(v) Cost incurred in recruiting unsuitable candidates
In view of above, it is necessary for a prudent employer to try to answer
certain questions like: whether the recruitment methods are appropriate and
valid? And whether the recruitment process followed in the organisation is
effective at all or not? In case the answers to these questions are in negative,
the appropriate control measures need to be evolved and exercised to tide
over the situation.
However, such an exercise seems to be only rarely carried out in practice by
the organisations employers. Having discussed recruitment process, it will be
now relevant to have an idea about recruitment practices in India. The
following section delineates the same.