Paper: 01, Human Resource Management

Module: 09, Human Resource Acquisition I

Prof. S P Bansal
Principal Investigator Vice Chancellor
Maharaja Agrasen University, Baddi

Prof YoginderVerma
Co-Principal Investigator Pro–Vice Chancellor
Central University of Himachal Pradesh. Kangra. H.P.

Prof. Rajeev Jain

Paper Coordinator Faculty of Commerce & Management,
Kota University, Kota

Dr. Anurodh Godha

Content Writer School of Commerce and Management,
VM Open University, Kota (Rajasthan) India
 Items Description of Module
Subject Name Management
Paper Name Human Resource Management
Module Title Human Resource Acquisition I
Module Id Module no.-9
Pre- Requisites Basic knowledge of Job Analysis and Job Design
Objectives To study the basic concepts of Recruitment
Keywords Recruitment, Recruitment Policy, Recruitment Process

QUADRANT-I

Module 9: Human Resource Acquisition I

1 Learning Outcome
2 Introduction
3 Meaning and Definition of Recruitment
4 Process of Recruitment
5 Recruitment Policy
6 Elements of a Good Recruitment Policy
7 Factors Affecting Recruitment
8 HR Challenges in Recruitment Process
9 Summary

1. Learning Outcome:

After completing this module, you will be able to:

 Define recruitment and its importance for an organization

 Understand the various steps in recruitment process.
 Come across the need of an recruitment policy
 Understand the prerequisites of a good recruitment policy.
 Point out the various factors affecting recruitment.
 Understand various HR challenges in recruitment process

2. Introduction

Source:http://www.mmenterprises.co.in/hrblog/wp-content/uploads/2013/11/scouting_talent_india.jpg
Recruitment is the first step in human resource acquisition function. Due to increase in global
competitiveness and increase in labour market flexibility the importance of manpower planning in
every business has increased. Recruitment function is one of the important parts in Human Resource
Planning. Competent Human Resources at the right positions in organization are crucial to constitute
core competency. The organisation enjoys strategic advantage out of it.
Recruitment helps in creating a pool of prospective employees, so that the right candidates for the
right jobs can be selected from this prospective employee’s pool. The objective of recruitment process
is to get the required number of employees with proper quality to help the organisation in goal
attainment.

Successful human resource planning should identify our human resource needs. Once we know these
needs, we will want to do something about meeting them. The next step in the acquisition function,
therefore, is recruitment. This activity makes it possible for us to acquire the number and types of
people necessary to ensure the continued operation of the organization.

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.

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

3. Meaning and Definition of Recruitment

Source: https://www.socialtalent.co/wp-content/uploads/2015/11/Venn-Diagram-Recruitment-
and-HR.jpg
Recruitment forms a step in the process which continues with selection and ceases with the placement
of the candidate. It is the next step in the procurement function, the first being the manpower
planning. Recruiting makes it possible to acquire the number and types of people necessary to ensure
the continued operation of the organisation. Recruiting is the discovering of potential applicants for
actual or anticipated organisational vacancies.
According to Edwin B. Flippo, “Recruitment is the process of searching for prospective employees
and stimulating them to apply for jobs in the organisation.”
According to Lord, “Recruitment is a form of competition. Just as corporations compete to develop,
manufacture, and market the best product or service, so they must also compete to identify, attract and
hire the most qualified people. Recruitment is a business, and it is a big business.”
In the words of Dale Yoder, “ Recruiting 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.”

Human Resource
Planning

Job Analysis

Recruitment

Selection

Placement

Figure 9.1: Recruitment to Human Resource Acquisition Process

According to 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.”
Dales S. Beach writes, “Recruitment is the development and maintenance of adequate manpower
resources. It involves the creation of a pool of available labour upon whom the organisation can
depend when it needs additional employees.”
Thus, recruitment process is concerned with the identification of possible sources of human resource
supply and tapping those sources. In the total process of acquiring and placing human resources in the
organisation, recruitment falls in between different sub-processes as shown in Figure 9.2.
According to Scott, Clothier and Spriegel the need for recruitment arises out of the following
situations:
 Vacancies created due to expansion, diversification, and growth of business.
 An increase in the competitive advantage of certain concerns, enabling them to get more
of the available business than formerly.
 An increase in business arising from an upswing during the recovery period of a business
cycle.
  Vacancies created due to transfer, promotion, retirement, termination, permanent
disability or death.
 The normal population growth, which requires increased goods and services to meet the
needs of the people.
 A rising standard of living, which requires more of the same goods and services as well as
the creation of new wants to be satisfied.

4. Process of Recruitment
Recruitment process passes through the following stages:
Recruitment Planning: Recruitment process begins when the personnel department receives
requisitions for recruitment from any department of the company, The personnel requisitions
contain details about the position to be filled, number of persons to be recruited, outlining of
major and minor responsibilities, experience and qualifications expected from the candidates,
terms and conditions of employment and the time by which the persons should be available
for appointment etc.

Source: Designed by Author

Strategy Development: The strategic considerations to be considered may include issues like
whether to recruit by own or hire it from outside, what type of recruitment method to be used,
what geographical area be considered for searching the candidates, and what sequence of
activities to be followed in recruiting candidates in the organisation. The goodwill of an
organisation in the market may be one technique. The publicity about the company being a
good employer may also help in stimulating candidates to apply. There may be others of
attractive salaries, proper facilities for development etc
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. We will discuss these in detail in next module
Screening: 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, de-selection tests and screening
interviews are common techniques used for screening the candidates.
 Human
Resource Recruitment Selection Placement
Planning

Search for Evaluating

Prospective Recruiting
Employees Effectiveness

Upgrading in
Same Position
Personnel
Research

Internal Transferring
Sources to New Job

Job Posting
Prompting
to Higher
Responsibilities

Employee
Referrals

External Advertising Evaluating

Sources for Selection

Scouting

Figure 9.2 : Place of Recruitment in Selection Process

Evaluating the effectiveness of recruitment process: 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 human resource department people
(ii) Cost of time spent for preparing job description and advertisement
(iii) Administrative and operational expenses
(iv) Cost of outsourcing until the posts are filled
(v) Heavy cost incurred in recruiting unsuitable candidates
According to Famularo, personnel recruitment process involves five elements, viz., a recruitment
policy, a recruitment organisation, a forecast of manpower, the development of sources of
recruitment, and different techniques used for utilising these sources, and a method of assessing the
recruitment programme. The explanation of these is described below:
 A. Recruitment Policy: It specifies the objectives of recruitment and provides a framework
for the implementation of the recruitment programme. It also involves the employer’s
commitment to some principles as to find and employ the best qualified persons for each job,
to retain the most promising of those hired, etc. It should be based on the goals, needs and
environment of the organisation.
B. Recruitment Organisation: The recruitment may be centralised like public sector banks
or decentralised. Both practices have their own merits. The choice between the two will
depend on the managerial philosophy and the particular needs of the organisation.
C. Sources of Recruitment: Various sources of recruitment may be classified as internal and
external. These have their own merits and demerits.
D. Methods of Recruitment: Recruitment techniques are the means to make contact with
potential candidates, to provide them necessary information and to encourage them to apply
for jobs.
E. Evaluation of Recruitment Programme: The recruitment process must be evaluated
periodically. The criteria for evaluation may consist of cost per applicant, the hiring ratio,
performance appraisal, tenure of stay, etc. After evaluation, necessary improvements should
be made in the recruitment programme.

5. Recruitment Policy

Source: http://www.castletonplc.com/wp-content/uploads/2016/03/Recruitment-Policy.png
As Yoder et al observe recruitment policy spells out the objectives of the recruitment and provides a
framework for implementations of the recruitment programme in the form of procedures. It may
involve a commitment to broad principles such as filling vacancies with the best qualified individuals.
The recruitment policy may embrace several issues such as the extent of promotion from within,
attitudes of enterprise in recruiting old, handicapped, and minor individuals, minority group members,
part-time employees and relatives of present employees. In addition, the recruitment policy may also
involve the organisation system to be developed for implementing the recruitment programme and
procedures to be employed. Explicitly, an organisational system is a function of the size of an
enterprise. In smaller enterprises, there may be merely informal recruiting procedures and the line
official may be responsible to handle this function along with their usual responsibilities. On the other
hand, in larger organisations, there is usually a staff unit attached with personnel or an industrial
relations department designated as employment or recruitment office. This specialisation of
recruitment enables staff personnel to become highly skilled in recruitment techniques and their
evaluation. However, recruitment remains the line responsibility as far as the personnel requisition
forms are originated by the line personnel, who have also the final word in the acceptance or rejection
of a particular applicant. Despite this, the staff personnel have adequate freedom in respect of sources
of manpower to be tapped and the procedure to be followed for this purpose.
Recruitment policy covers the following areas:

 To prescribe the degree of emphasis. Inside the organisation or outside the organisation.
 To provide the weightage that would be given to certain categories of people such as local
population, physically-handicapped personnel, personnel from scheduled castes/tribes and
other backward classes.
 To prescribe whether the recruitment would be centralised or decentralised at unit levels.
 To specify the degree of flexibility with regard to age, qualifications, compensation
structure and other service conditions.
 To prescribe the personnel who would be involved in recruitment process and the role of
human resource department in this regard.
 To specify the budget for meeting the expenditures incurred in completing the recruitment
process.
According to Yoder, “the recruitment policy is concerned with quantity and qualifications of
manpower.” It establishes broad guidelines for the staffing process. Generally, the following factors
are involved in a recruitment policy:

 To provide each employee with an open road and encouragement in the continuing
development of his talents and skills;
 To provide individual employees with the maximum of employment security, avoiding,
frequent lay-off or lost time;
 To avoid cliques which may develop when several members of the same household or
community are employed in the organisation;
 To carefully observe the letter and spirit of the relevant public policy on hiring and, on
the whole, employment relationship;
 To assure each employee of the organisation interest in his personal goals and
employment objective;
 To assure employees of fairness in all employment relationships, including promotions
and transfers;
 To provide employment in jobs which are engineered to meet the qualifications of
handicapped workers and minority sections; and
 To encourage one or more strong, effective, responsible trade unions among the
employees.
6. Elements of a Good Recruitment Policy:

Source: http://tradeinvest2014.babinc.org/wp-content/uploads/2013/07/P47.jpg
The recruitment policy of an organisation must satisfy the following conditions:

 It should be in conformity with its general personnel policies;

 It should be flexible enough to meet the changing needs of an organisation;
 It should be so designed as to ensure employment opportunities for its employees on a
long-term basis so that the goals of the organisation should be achievable; and it should
develop the potentialities of employees;
 It should match the qualities of employees with the requirements of the work for which
they are employed; and
 It should highlight the necessity of establishing job analysis.

7. Factors Affecting Recruitment

The recruitment function of the organizations is affected by a mix of various internal and external
forces. The internal forces or factors are the factors which can be controlled by the organization. And
the external factors are those factors which cannot be controlled by the organization. The internal and
external factors affecting recruitment function of an organization are.
Source: Designed by Author

I. 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 the firm is an important factor in 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
organisation’s culture.
C. Other Internal Factors
 Wage and salary policies;
 The age composition of existing working force;
 Promotion and retirement policies;
 Turnover rates;
 The nature of operations involved the kind of personnel required;
 The level and seasonality of operations in question;
 Future expansion and reduction programmes;
 Human resource planning strategy of the company;
 Cost involved in recruiting employees, and finally;
 Growth and expansion plans of the organisation.
II. 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. Labour Market: Labour market conditions i.e., supply and demand of labour is of
particular importance in affecting recruitment process. Employment conditions in the
community where the organization is located will influence the recruiting efforts of the
organization. If there is surplus of manpower at the time of recruitment, even informal
attempts at the time of recruiting like notice boards display of the requisition or
announcement in the meeting etc will attract more than enough.
B. Image of Organisation: Image of the employer can work as a potential constraint for
recruitment. An organization with positive image and goodwill as an employer finds it
easier to attract and retain employees than an organization with negative image. Manage-
rial 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.
C. External Cultural Factors: Obviously, the culture may exert considerable check on
recruitment. For example, women may not be recruited in certain jobs in industry.
 D. Unemployment Situation: When the unemployment rate in a given area is high, then 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.
E. Labour Laws: There are several labour laws and regulations passed by the Central and
State Governments that govern different types of employment like Child Labour
(Prohibition and Regulation) Act, 1986, Employment Exchange (Compulsory Noti-
fication of Vacancies) Act, 1959, the Apprentices Act, 1961and the Mines Act, 1952 deal
with recruitment. These cover working conditions, compensation, retirement benefits, and
safety and health of employees in industrial undertakings
F. Competitors : The recruitment policies of the competitors also affect the recruitment
function of the organizations. To face the competition, many a times the organizations
have to change their recruitment policies according to the policies being followed by the
competitors.
G. Economic Factors: Such as a tight or loose labour market, the reputation of the
enterprise in the community as a good pay master or otherwise and such allied issues
which determine the quality and quantity of manpower submitting itself for recruitment.
H. Political and Legal Factors: These factors also exert restraints in respect of nature and
hours of work for women and children, and allied employment practices in the enterprise,
reservation of Job for SC, ST and so on

8. HR Challenges in Recruitment Process

Recruitment is a function that requires business perspective, expertise, ability to find and match the
best potential candidate for the organisation. In the last few years, the job market has undergone some
fundamental changes in terms of technologies, sources of recruitment, competition in the market etc.
HR professionals are constantly facing new challenges in one of their most important function-
recruitment. The biggest challenge for such professionals is to source or recruit the best people or
potential candidate for the organisation. Other than this the following issues are the main
showstoppers in the recruitment and they are really present in every organization.
Source: Designed by Author
A. Non-adaptability to globalization: The HR professionals are expected and required to keep
in tune with the changing times, i.e. the changes taking place across the globe. HR should
maintain the timeliness of the process
B. Opening Job Vacancy without the Job Description: The manager has to invest his or her
time to write a job description. It is the only tool for the HR Recruiter to select the great job
candidates but they do not like to write down a good job description for a new job vacancy.
The manager is responsible for the selection of the job candidate. The manager has to have a
clear idea about the ideal job candidate.
C. Communication Gap in Recruitment and delay in Final Decision: Many excellent job
candidates are lost as the HR Recruiter and the manager do not communicate with them. They
wait for each other. The job candidates are not patient. They want to receive a final decision
as soon as possible. The job candidates should be selected or refused. It is a simple rule of the
recruitment process. The common recruitment issue is leaving the candidates on hold.
D. Lack of motivation to HR Professionals: Recruitment is considered to be a thankless job.
Even if the organisation is achieving results, HR department or professionals are not thanked
for recruiting the right employees and performers.
E. Inflexible Recruitment Process: The recruitment process should be flexible, adaptive and
responsive to the immediate requirements. The recruitment process should also be cost
effective.The immediacy and speed of the recruitment process are the main concerns of the
HR in recruitment.
F. Strategic Prioritization and Reviewing Employee Needs: Reviewing employee needs and
prioritizing the tasks to meet the changes in the market has become a challenge for the
recruitment professionals.

9. Summary
Recruitment forms a step in the process which continues with selection and ceases with the placement
of the candidate. It is the next step in the procurement function, the first being the manpower
planning. Recruiting makes it possible to acquire the number and types of people necessary to ensure
the continued operation of the organisation. Thus, recruitment process is concerned with the
identification of possible sources of human resource supply and tapping those sources.
Recruitment process involves five elements, viz., a recruitment policy, a recruitment organisation, the
development of sources of recruitment, and different techniques used for utilising these sources, and a
method of assessing the recruitment programme.
Recruitment policy spells out the objectives of the recruitment and provides a framework for
implementations of the recruitment programme in the form of procedures. It may involve a
commitment to broad principles such as filling vacancies with the best qualified individuals.

The factors affecting recruitment can be classified as internal and external factors. Some of the
internal factors are wage and salary policies, promotion and retirement policies, turnover rates, future
expansion and reduction programmes, growth and expansion plans of the organization. Some of the
external factors are supply and demand of specific skills in the labour market, company’s image
perception of the job seekers about the company and political and legal factors of the nation.