Human Resource Management-16MBA21

Recruitment, Selection and Placement

UNIT 3 NOTES

Unit 3: (10 hours)

Recruitment: Definition, Constraints and Challenges, Sources and Methods of Recruitment, New
Approaches to recruitment.
Selection: Definition and Process of Selection.
Placement: Meaning, Induction/Orientation, Internal Mobility, Transfer, Promotion, Demotion and
Employee Separation.
Recruitment:
Definitions: 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. 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”

Meaning: Hiring or Recruitment is the process of locating and encouraging potential applicants to apply
for existing or anticipated job openings. Attracting a large number of qualified candidates seeking for job.
Providing information to unemployed workforce regarding various job options available in job market.

RECRUITMENT NEEDS ARE OF THREE TYPES

 PLANNED:
i.e. the needs arising from changes in organization objective 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.

Recruitment Process:
Recruitment process involves a systematic procedure from sourcing the candidates to arranging and
conducting the interviews and requires many resources and time.

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 Company Strategy: Organization links their strategic planning with recruitment policy; in fact the
strategies of the company are the bases for the choosing recruitment sources and techniques.
 Corporate Strategies Recruitment Strategy
Sustainable growth Centralized recruitment
Customer Service Candidates with positive attitude and feelings

 Company strategies are the bases for various functions of HRM. In addition, job analysis processes are
carried out in line with the company strategies and HR planning for analyzing the manpower
requirements.
 If the HR planning outcome is shortage, the company plans for recruitment by defining the type and
number of manpower required.
 Recruitment is a positive process as it aims at increasing the number of applicants by stimulating more
and more people to apply for the job
 Process of recruitment consists of sub systems like, sources of recruitment, techniques of recruitment to
attract the candidates and stimulating the candidates to apply.
1. Finding out and developing the sources where the required number and kind of employees are
available
2. Developing and employing suitable techniques to attract the desirable candidates
 Implementing planned technique during the process of recruitment.
 Stimulate or attract potential candidates to apply for suitable positions in organization.
 Application pool: Candidates sends the resumes/CV and applies for the suitable post, companies receives
these applications and makes it as a talent pool.
 Evaluate effectiveness of recruitment process.

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Recruitment Yield Pyramid:

Employers use a recruiting yield pyramid to calculate the number of applicants they must generate to hire the
required number of new employees.

50 – New Hires
50 * 2 / 1 = 100
100 * 3 / 2 = 150
150 * 4 / 3 = 200
200 * 6 / 1 = 1200
To have the 50 successful hires, 1200 (6:1) leads should be the generated.

Sources of Recruitment

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Internal Sources of Recruitment: Internal source of recruitment means company looks for the candidates
within the organization and through which companies hire required employees on basis of reference of present
employees or promote or transfer present employees in organization to fill in required vacancies. The company
announces the vacancies in various departments through, magazines, job posting boards, email flashes, intranet
posts.
1. Present Permanent Employees: Organizations consider the candidates from this source for higher level
jobs due to: Availability of suitable candidates for the jobs, meet the employee union demands or due to
policy of the organization.
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 union pressure and to motivate the
employee’s present job.
3. Employee Referrals: Employee reference can be a good source of internal recruitment. Employee refers
her/his relatives, friends for the particular job in the company. Many organizations have structured system
where the current employees of the organization can refer their friends and relatives for some position in
the same organization. It is a recommendation from a current employee regarding a job applicant.
4. Retired and Retrenched employees may also be recruited once again in case of shortage of qualified
personnel or increase in load of work. Generally, a particular employee will be retrenched from a job due
to lack of work (Surplus of HR). The organizations prefer to reemploy their retired employee as a token of
loyalty.
5. Dependants of Present/Deceased/Disabled Employees: Some organization function with a view to
developing the commitment and loyalty of the employees and as well as their family members, to build up
the image and provide the employment to the dependents of deceased, disabled employees.
External Sources of Recruitment: External source of recruitment means company looks for candidates
outside the company and companies take help of third party to hire required human resource for companies.
Human resources department will systematically search the employee pool outside organizations. Many firms
will use advertisements in newspapers, job search websites, job fairs and referrals from current employees to
fill positions.

1. Educational Institutes (Campus Recruitment)

It is one of the primary sources for the recruiter as the fresh graduates can be hired. The representatives of the
organizations are sent to the educational institutions, Recruiters interacts with the students and Exchange
information with the students and stimulate them to apply for the job if the students are capable enough.

2. Placement Agencies/Private Employment Agencies (Consultants)

Several private consultancy firms perform recruitment functions on behalf of client companies by charging a
fee. This consultants hunt for the talents and supply the capable candidates to the companies. Organizations
outsource the recruitment activity to save time and cost spent on the recruitment activity. It is also known as
RPO (Recruitment Process Outsourcing)

3. Public 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.

Job Employment Job

Exchange
Seekers Givers
Agencies

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4. Professional Organizations: Professional Organizations or associations maintains complete data base (Bio
Data) of their members and provide the same to various organizations on request. Organizations find this
source more useful for recruiting experienced employees like executives, managers and engineers

5. Data Banks:
The management can collect the bio-data of the candidates from different sources like employment exchange,
training institute, candidates etc, and feed them in the data base. It will become another source for recruitment

6. Unsolicited Applicants/Casual Applicants

Many job seekers visit the company office of well-known companies on their own and handovers the copy of
resume. If the vacancy arises in future the same will be intimated to the applied candidates.
Depending upon the image of the organization, Candidates casually apply for job through mails or hand over
to the HR department.
7. Similar Organizations: Experienced candidates are available in organization producing similar products
or similar business; the organization can get most suitable candidates from this source. This would be suitable
for newly established organization or organizations which are going for expansion.
8. Trade Unions: Generally, unemployed/employees seeking change in the employment put a word to trade
union leader; these union leaders can approach management for the employment for the candidates
9. Walk-in: The busy organizations and rapid changing companies do not find time to perform various
functions of recruitment, so they advise candidates to attend the interview directly. A walk-in interview is a
job screening that happens without an appointment or scheduled meeting.
10. 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 from among such
candidates through the selection process.
11. Head-hunting: The companies request the professional organizations to search for the best candidates
particularly for the senior executive positions. It is also called as search consultants or executive search firm.
12. Body shopping: Professional organizations and hi-tech training institute develop the pool of HR for the
possible employment. The prospective employers contact these organizations to recruit the candidates. These
professional and training institutes are called as body shoppers and these activities are called as body shopping
or employee leasing activity.
13. Mergers and acquisitions: Business alliances like mergers, acquisitions or takeovers helps in getting the
HR, Sharing of HR on AD-HOC Basis. It does mean that the company with surplus HR offers the services to
the other organizations.
14. E-Recruitment: The technological revolution in telecommunication helped the organization to use
internet as a sources of recruitment. Organizations can advertise the job vacancy through World Wide Web
and job seekers send their CV through e-mails using internet. Job seekers place their CVs in Internet, which
can be drawn by the prospective employers depending upon the requirements.
E.G: LinkedIn, Monster.com, Facebook.com, Naukri.com

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Recruitment Techniques:
Recruitment techniques are the means or media by which management contacts prospective employees or
provide necessary information or exchange ideas in order to stimulate them to apply for the job

Traditional Recruitment Techniques:

1. Promotions: Most of the internal candidates would be stimulated to take up higher responsibilities
and express their willingness to be engaged in the higher level jobs
2. Transfers: Employee will be stimulated to work in the new places or department based on the
employee capability to work after transferring.
3. Advertising: Advertising is widely accepted technique of recruitment; the candidates will be
informed about the job vacancy through different sources. It includes advertising through different
media like newspapers, magazine, TV, radio and Internet.
Modern Recruitment Techniques:
1. Scouting: Scouting means sending the representatives of the organization to various sources of
recruitment with a view to persuading or stimulating the candidates to apply for the jobs.
2. Salary and Perks: Companies stimulates the prospective candidates by offering high level salary,
more perks and quick promotions.
3. ESOPs: Companies recently started stimulating the employees by offering stock ownership to the
employees through their Employees stock ownership programs.

Recruitment Methods:

Direct Indire III

Meth ct party

Campus Advertise Consultants

recruit ment Employment
Exchange

Methods of recruitment are different from the sources of recruitment. Sources are the locations/place where
prospective employees are available. On the other hand, methods are ways of establishing links with the
prospective employees; various methods are shown in above diagram:

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1. Direct method: The recruiter directly stimulating the candidates to apply for the job.
a. Campus Recruitment: In this technique, the representative of the organization is sent to the
educational institutions, the recruiter will have interaction with the students and exchange
information, and these recruiters stimulate the students to apply for the job.
Guidelines for campus recruitment:
1. Short list Campuses
2. Choose recruitment team
3. Pay smartly
4. Present a clear image
b. Scouting: Another method is through Word of Mouth: The employees of the organization contact
candidates and tell them about the vacancies.
2. Indirect Method: Advertisement in newspaper, journal, magazines, radio, TV, Internet is used to
publicize vacancies. This method is suitable when the organization wants to reach out large target group.
1. Newspaper Ads: a well designed, informative ad may help to convince people
2. TV and Radio Ads: Ads should be creative and reaches the mass target very quickly
3. Third Party Method:
a. Consultants: Like Mafoi consultants, abc consultants, career net consultants Antal consultant,
wenger and Watson consultant. etc.
b. Employment exchange agencies: Candidates themselves register with these exchanges, the
employer vacancy may be notified with the exchange agency, and the exchange agency supplies
the list of suitable candidates.
c. Internet Recruitment: Use of Job portals like Naukri.com, monster.com,

Constraints and Challenges of Recruitment:

Recruitment is a function that requires business perspective, expertise, ability to find and match the best
potential candidate for the organization, diplomacy, marketing skills (as to sell the position to the candidate)
and wisdom to align the recruitment processes for the benefit of the organization.

The major Constraints and challenges faced by the HR in recruitment are:

 Limited budgetary support: Recruiting efforts require money. Sometimes because of limited
resources, organizations may not like to carry on the recruiting efforts for long periods of time. This
can, ultimately, constrain a recruiter’s efforts to attract the best person for the job.
 Poor image: If the image of a firm is perceived to be low (due to factors such as operating in a declining
industry, earning a bad name because of poor quality products, nepotism, insider trading allegations
against promoters etc.), the likelihood of attracting a large number of qualified applicants is reduced.
 Unattractive Jobs: If the job is boring, hazardous, tension ridden and lacking in opportunities for
advancement, very few persons may be available for such jobs.
 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
 Lack of motivation – Recruitment is considered to be a thankless job. Even if the organization is
achieving results, HR department or professionals are not thanked for recruiting the right employees
and performers.

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  Process analysis – The immediacy and speed of the recruitment process are the main concerns of the
HR in recruitment. The process should be flexible, adaptive and responsive to the immediate
requirements. The recruitment process should also be cost effective.
 Organizational Policies: Internal policies of the enterprise may also act as a constraint on recruitment
of new persons. A policy of filling up higher positions from outside can discourage competent persons
to apply in such an enterprise
 Government Policies: Government policies may also act as constraints on recruitment policy.
Government legislation may require reserving certain percentage of posts for weaker sections of
society or for persons belonging to specified castes.

New Approaches to Recruitment:

1. Employer Branding: Minchington (2005) defines employer brand as "the image of your organization
as a 'great place to work' in the mind of current employees and key stakeholders in the external market
(e.g. active and passive candidates, clients),” The process of employer branding is concerned with
talent attraction, employee engagement and retention strategies deployed to enhance your company's
employer brand
2. E-Recruitment: Internet recruitment services include recruitment websites and job search engines
used to gather as many candidates as possible by advertising a position over a wide geographic area.
a. Electronic end-to-end recruitment processes
b. No more paper forms and manual processes
The buzzword and the latest trends in recruitment is the “E-Recruitment”. Also known as “Online
recruitment”, it is the use of technology or the web based tools to assist the recruitment process. The
tool can be either a job website like naukri.com, the organization’s corporate web site or its own
intranet. Many big and small organizations are using Internet as a source of recruitment. They advertise
job vacancies through worldwide web. The job seekers send their applications or curriculum vitae (CV)
through an e-mail using the Internet. Alternatively, job seekers place their CV’s in worldwide web,
which can be drawn by prospective employers depending upon their requirements
3. Social Media Recruitment: Social Media Recruitment is the new trend which can implement in the
current recruitment process. Social media helps to drive passive candidates and indirectly helps to
create brand awareness about the company. A few tools commonly used by social media recruiters
are LinkedIn, Facebook.com, Twitter, Google+, etc.
4. Outsourcing: Outsourcing of recruitment to an external provider may be the solution for some small
businesses and at times for large organizations

Selection:
After identifying the sources of human resources, searching for prospective employees and stimulating them
to apply for jobs in an organization. This may be either through advertisements, agencies or direct references
from the existing employees of the organization. The next action to be taken shall be the management has to
perform the function of selecting the right employees at the right time.

The selection procedure is the system of functions and devices adopted in a given company to ascertain
whether the candidate’s specifications are matched with the job specifications and requirements. The selection
procedure cannot be effective until and unless,

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1. Requirement of the job to be filled, have been clearly specified
2. Employee specifications (physical, mental, social, and behavioral, etc) have been clearly formulated.
3. Candidates for screening have been attracted.

Thus, the development of job analysis, human resources planning and recruitment are necessary prerequisites
to the selection process. A breakdown in any of these processes can make even the best selection system
ineffective.
Selection: Selection is a process of picking individuals who have relevant qualifications to fill jobs in an
organization.

It is defined as the Choosing qualified candidate from the pool of qualified candidates.

Recruitment Selection

1. searching for and attracting applicants qualified to fill Analyzing the qualifications of applicants and
vacant positions deciding upon those who show the most potential
2. It is concerned with tapping the sources of human Selection is concerned with choose the most
resources suitable candidate through various interviews and
tests.
3. Recruitment comes first Selection comes after recruitment

4. Recruitment is positive process encouraging more and Selection is a negative process as it involves
more employees to apply rejection of the unsuitable candidates.
5. Recruitment is calling large pool of candidates Selection is choosing the suitable candidate.

When there is a Job Opening.

Step 1 - Recruitment
* publish ads to let others know of the job openings.
* Invite applications from various sources like consultants, referrals, online portals etc,
* Screening of resumes
* Filter candidates who may be suitable for that particular job.
Step 2 - Selection
* Conduct Interviews
* Reference checks
* Select the best of the best from the rest.

Selection Process:

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 Hiring Decision Step 8
Reference Checks Step 7
Medical Examination Step 6
Selection Interview Step 5
Selection Test Step 4
Application Blank Step 3
Screening Interview Step 2
Reception Step 1
Selection process is a hurdle to candidates, each and every step must be successfully cleared, and this selection
processes various from company to company.
1. Reception: This is the first step in the process; here candidates are received for further selection process.
2. Screening Interview: (Preliminary Interview): It is generally used to cut the cost of selection by allowing
only eligible candidates to go through further stages. It is also called as courtesy interview; it is like sorting process
which eliminates misfit candidates. Informal Interaction with the candidates and observing the candidates
informally the behavior and activities.
3. Weighted Application Blank (WAB): It is widely accepted device for gathering information from
prospective employee. It is a way of getting written information about candidate particulars; company will get the
various details and check for the suitability of a person to the job. It is like a cross comparison of application of the
applicant

A Method of quantitatively combining information from application blank item by assessing weights that reflect
each item’s value in predicting job success.

It contains following Information:

1. Bio Data test 6. Work Experience
2. Age 7. Previous employer details
3. Absenteeism 8. Reasons for leaving the present job
4. Average tenure 9. References
5. Education Qualification 10. Curricular activities
Biographical information blank: BIB – it is a pre selection questionnaire that asks applicants to provide the job
related information on their personal background and life experience. This selection tool is used in Canada.
4. Selection Tests: Applicants who have short listed in the step 3 are allowed to give selection tests. The
selection tests are the standardized measure of a person’s intelligence, attitude, personality and performance. Test
are the important device used in the selection of a candidate

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5. Selection Interview: Oral examination of candidate for employment, Selection interview is a formal, in-
depth interaction between the candidate and the interviewer
---- Ask questions to get required information
----Exchange Information
----Interaction with candidates
6. Medical Examination: Certain job requires physical qualities, Selection tests and interview assesses the
mental ability of the applicants, whereas medical examination is to test the physical ability. Certain jobs require
stamina, clear vision, proper Hearing and voice etc. E.G Sales person requires stamina, strength, clear vision and
voice to convince the customers
7. Reference Checks: HR department will check the reference given by the candidates
a. Each candidate need to give 2 or 3 References
b. Candidate can give reference of previous employer, Co-workers, Academicians etc.
c. It will check about the candidate’s regularity to work, behavior, and relationship with other employees
etc.
8. Hiring Decision: The line/HR Manager will take final decision, the decision will be taken based on the
results of all these steps in the selection process. The selection team will coordinate with HR manager and takes
final decision. The selected candidates are informed about the results and company will send the offer letter to
selected candidates

SELECTION TESTS:
Selection Tests: The selection tests are the standardized measure of a person’s intelligence, attitude, personality
and performance. Tests are the important device used in the selection process of a candidate
1. Intelligence Tests: In General, it measures the IQ of a candidates, It is used to calculate the mental ability of
the individuals, some standards tests are used to establish an intelligence level of the prospective applicants
a. It is used to measure the memory, comprehension, reasoning, numerical ability etc. These tests in general
measure intelligence quotient of a candidates. In detail these tests measure capacity for comprehension,
reasoning, word fluency, verbal comprehension, numbers, memory and space
b. Predicts 6% of job success
2. Aptitude Tests: This test measure whether an individual has a capacity to learn or not, the aptitude test
are used to test the clerical and mathematical skills, numerical, logical, non-verbal, verbal etc, These tests
measure whether an individual has the capacity or latent ability to learn a given job if given adequate
training. Aptitudes can be divided into general and mental ability or intelligence and specific aptitude
such as mechanical, clerical, manipulative capacity etc.

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3. Personality Test: These tests prove deeply to discover clues to an individual’s value system, his emotional
reactions and maturity and characteristic mood. They are expressed in such traits like self-confidence, tact,
emotional control, optimism, decisiveness, sociability, conformity, objectivity, patience, fear, distrust,

initiative, judgment dominance or submission, impulsiveness, sympathy, integrity, stability and self-
confidence. These tests are used to find the overall personality of a person, how a person carries himself
in particular situation, how a person behave and react to the situation. It shows the candidates confidence
level, emotional balance and motivational skills.
There are 3 types:
a. Projective Test: Candidates are asked to project their own interpretation of certain standard
stimulus situations basing on ambiguous pictures, figures etc, under these tests, Personality tests
have disadvantage in the sense that they can be faked by sophisticated candidates and most
candidates give socially acceptable answers. Further, personality inventories may not successfully
predict job success. Candidates are given with a situation or picture or a paragraph and asked
candidate to interpret the situation/picture. Based on the interpretation the Selection team will
judge/ assess the candidate personality. E.G: Thematic Apperception Test. (TAT)
b. Interest Test: These tests are inventories of the likes and dislikes of candidates in relation to work,
job, occupations, hobbies and recreational activities. The purposes of this test is to find out whether
a candidate is interested or disinterested in the job for which he is a candidate and to find out in
which area of the job range/occupation the candidate is interested. The assumption of this test is
that there is a high correlation between the interest of a candidate in a job and job success. ‘Level
of interest shows the success rate on the job’. The Selection team will assess the personality based
on the candidate’s interest
E.G. Cricket: From this interest the selection team can assess the following personality traits:
1. Team Player
2. Performer
3. Coordinator
4. Good planner etc.
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 c. Preference Test: The candidates are given with the options and asked to pick according to their
preference which will assess the personality of the candidates. E.G. Color Preference- RED
4. Achievement tests: Candidates are given with the sample of job/work and check whether applicant can able
to perform the given sample of job or not
E.G. typing Test- Proficiency
These tests are conducted when applicant claims to know something as these tests are concerned with what one
has accomplished These tests are more useful to measure the value of specific achievement when an
organization wishes to employ experienced candidates. These tests are classified into:
(a) Job Knowledge test; (b) Work sample test.
5. Assessment Centre: Assessment centre are the centre where the competencies of the individuals are assessed.
It is conducted usually for the Managerial jobs
a. In basket method/In Tray method: The candidate, in this test, is supplied with actual letters,
telephone and telegraphic message, reports and requirements by various officers of the
organization, adequate information about the job and organization. The candidates are asked to
take decisions on various items based on the in basket information regarding requirements in the
memoranda.
i. Accumulation of tasks in the basket
ii. The candidates are asked to complete the given tasks in the basket with given time period
iii. In the methods, following competencies are assessed
1. Planning, Analyzing, Organizing, time management, Decision making, Prioritizing etc.
b. Group Discussion: Group of candidates are brought and asked to discuss on a topic, this
discussion will be observed and evaluated by the selection panels, This test administered through
group discussion approach to solve a problem under which candidates are observed in the areas
of initiating, leading, proposing valuable ideas, conciliating skills, oral communicating skills,
coordinating and concluding skills.
c. Business Games: Business games are the games which stimulate the business strategy. The business
games include the team building activities, problem identification and solving skills.
d. Individual Presentation: It will assess the individual presentation, communication skills. The selection
panels will assess the depth of knowledge about the topic
e. Case Study analysis: A real time problem is given as a case let and candidates are asked to identify,
analyze the case study.

Selection Interview
 Interview is the oral examination of candidates for employment.
 It will assess the behaviors of the candidates - in order to assess the candidate's suitability for a post.
 An interview means a face to face interaction between the interviewer and the candidates so as to obtain
desired information from candidates.
 It can also be defined as a way of exchanging meanings between individuals

Types of Interviews
• Structured: Selection panel uses pre-determined set of question that are clearly related to job, the
structured questions increases the reliability of the in Interview process, in this method, no freedom to
ask questions other than standard questions. It is also called as formal interview. In formal interview,
all the steps in the interview is fixed and standardized format.

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 • Unstructured: There is no specific questions/format to be followed; interviewer has the freedom to
ask questions based on the response of the candidates. It is also called as informal interview
• Behavioral Description Interview (BDI): Assess the behavior of the candidates by posing different
question or giving situations. ‘Past predict the future behavior’. E.G Have you handled a difficult
situation with a co worker
• Stress Interview: This interview aims at testing the candidate’s behavior and level of withstanding
the stress and strain, In the Interview candidates are asked stressful questions and assess the behavior
of the applicants. E.G. what is the similarity in boss & monkey?
• Situational: The candidates are given a real time situation, and asked to analyze the situation and
interpret the situation. E.G. If you caught a colleague cheating the company, what would you do?
• Panel Interview: A Panel of members will assess the candidates, it is like 3 to 4 people rate the
candidates. Here a group of Interviewer is going to assess the competencies of the candidates

Interview Process

5. Evaluation

4. Termination

3. InformationExchange

2. Reception

1. Preparation

1. Preparation: Effective interviews do not just happen. They are planned. This involves:
1) Establishing the objectives of the interview and determining the areas and specific questions to be
covered.
2) Reviewing the candidate’s application and resume noting areas that are vague or that may show
candidate’s strengths and weakness on which questions could be asked.
3) Keeping the test scores ready, along with interview assessment forms.
4) Selecting the interview method to be followed.
5) Choosing the panel of experts who would interview the candidates (list the number of experts to be called
plus the chairman)
6) Identifying a comfortable private room preferably away from noise and interruptions (neat and clean;
well furnished, lighted and ventilated ) where the interview could be held.
2. Reception: The candidate should be properly received. Greet the candidate with a warm friendly greeting
smile. Names are important so tell the applicant what to call you and then ask the applicant for his preferred
form of address. Tell briefly about yourself and put the applicant at ease so that he may reciprocate with
personal information. Ask the applicant about hobbies activities or some other topic so as to break the ice.
Start the interview on time.

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3. Information Exchange: To gain the confidence the candidates start the interview with a cheerful
conversation. The information exchange between the interviewer and the interviewee may proceed thus:
State the purpose of the interview, how the qualifications are going to be matched with skills needed as a
realistic job preview
Begin with open ended questions where the candidate gets enough freedom to express himself freely instead
of yes or no type of responses.
Listen to the applicant’s answers attentively and patiently and pay attention to non verbal cues (applicant’s
facial expressions, gestures, body language etc) to increase reliability and avoid discrimination ask the same
questions to all the applicants for a particular job, keep careful notes and record facts.
4. Terminate: end the interview with the happy note, the interviewer has to terminate the interview after
clarifying the doubts and provide the necessary information to the candidate.
5. Evaluate: The candidates will have to be evaluated based on the scores and the performance in the
interview, which helps to make the final hiring decision.

Appointment/Placement:

• Placement is a process of assigning a specific job to each of the selected candidates. It involves
assigning a specific rank and responsibility to an individual.
• “The determination of the job to which an accepted candidate
is to be assigned and his assignment to that job.”
• Probation ranges from 6months to 2 years
• When a candidate reports for duty-

“An agreement that formally outlines the details of employment in

the employment contract”

“Placement is the assignment of a particular job to a newly appointed employee”

EMPLOYMENT CONTRACT:
 The key principles of contract law apply to the employment contract core – employee agrees to
perform labor work in return for wage
 Every contract (including fundamental changes to the contract) must involve consideration
 Consideration – something that has value is being exchanged
 The terms of a contract can be agreed upon orally
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  Written contracts provide certainty concerning the rights and obligations of the parties
 Common point of reference in case of disagreement

Employers Employees

Employers have the Employees have the

right to hire, fire, right to quit and get
demote, or promote as another job under the
they choose, unless same constraints.
there is a law or
contract to the
contrary.

LEGAL ASPECTS OF EMPLOYMENT CONTRACT:

 Rate of pay: Condition of employee payment and details about the bonus, incentives, commission and
other benefits and facilities
 Hours of work: Minimum hours of work and disciplinary action
 Length of contract: “AT WILL” for permanent employees and Minimum period for contract employees.
 Holidays and sick leave: Company policies regarding Casual leave and medical/sick leave.
 Termination of employment: what grounds, employers can terminate the employment.
 Probationary: The employees period of probationary
 Temporary and permanent employees: The contract should have the information about the type of
employment

INDUCTION

 Induction is process meant to help the new employee to settle down quickly into the job by
becoming familiar with the people, the surroundings, the job, the firm and the industry.
 “Induction is a process of receiving and welcoming an employee when he first joins a company &
giving him the basic information he needs to settle down quickly & happily start work.”

Objectives of Induction

To promote the feeling of belongingness and loyalty to the organization among the new comers.

• To build up agreement between employee and organizational goals.

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• To inform new employee about organization culture, structure, product, policies etc.
• To introduce new worker to superiors, peers, subordinates etc in organization.
• To create sense of security to worker at his workplace and also develop goodwill of company in eyes of
new comers on organization.

Induction Programme: Before designing induction programme firm need to decide four strategic choices.

Steps:

 Welcome to the organization.

 Explain about the company.
 Show the location/department.
 Introduce team members.
 Explain about future training and career prospects.
 Clarify doubts
 Show all the facilities available to him/her.
The contents of induction programme:

A formal induction programme should provide following information: -

* Brief history and operations of the company.

* The company’s organization structure.
* Policies and procedure of the company.
* Products and services of the company.
* Location of department and employee facilities.
* Safety measures.
* Grievances procedures.
* Benefits and services of employee.
* Standing orders and disciplinary procedures.
* Opportunities for training, promotions, transfer etc.
* Suggestion schemes.
* Rules and regulations.

Employee Mobility: The lateral movement of an employee within the organization and outward movement
of employees called as employee mobility

 Internal Mobility: Internal mobility refers to the lateral or vertical movement of an employee
within an organisation.

Purpose of Internal Mobility:

 Improve organizational effectiveness

 Improve employee effectiveness
 Adjust to changing business operations
 Ensure discipline - Punishment
 To reduce the monotony

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Internal Mobility Types:

1. Promotions: Promotion means advancement within an organization.

It is an upward movement of an employee from current job to another that is higher in pay,
responsibility, status and organizational level.
“ A promotion is the transfer of an employee to a job that pays more money or that enjoys some
preferred status ” According to Scott and Spreigal
“ A promotion involves a change from one job to another that is better in term of status and
responsibility “ According to Edwin B. Flippo

Bases of Promotion:

Organizations adopt different bases of promotion depending upon their nature, size, management etc.

The well established bases of promotion are:

1. Seniority bases: Relative length of service in the same organization. The logic behind considering
the seniority as bases of promotion is that there is a positive correlation between the length of
service in the same job and the amount of knowledge and the level of skill acquired by an employee
in an organization. Every one is sure of getting the promotion one day.

2. Merit bases: Promotion based on employee merits (Performance).It denote an individual employee’s
skill, knowledge, ability, efficiency and aptitude as measured from educational, training and past
employment record. Management personnel generally prefer merit as the basis of promotion. Merit
may be determined by job performance and by analysis of employee potential for development

3. Seniority-cum-merit basis: Management mostly prefer merit as a basis of promotion as they are
interested in enriching organizational effectiveness by enriching its human resources. Trade unions
favor seniority as the sole basis of promotion with a view to satisfy the interests of majority of their
members. The combination of both seniority and merit may be considered as a sound basis for
promotion.

2. Transfers:
a. A transfer is a change in job assignment. It may involve no change at all in status and
responsibility
b. Employee moves from one job to another job in the same level and with same pay

Purposes/Reasons of transfer:

 Employee initiated Transfer:

o Due to Ill-Health
o Due to Family problem
o Due inconvenience in the work place
o Conflict with the co-workers, superiors or team leader.
o To have financial gains.
 Company initiated Transfer:
o Due to vacancy
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 o To enhance the skills, knowledge and capabilities.
o To reduce the boredom
o To punish the employee.

Transfer policy: Organizations should clearly specify their policy regarding transfers. Such a policy would
normally consist of the following things

 Specify circumstances under which the transfer has been effected

 Name the persons authorized to effect transfers
 Mention the basis for the transfer
 Clarify the position regarding pay, allowances, benefits etc

Types of transfer:

 Production Transfer: Transfer caused due to change in/fluctuation in production.

 Replacement Transfer: Transfer caused due to replacement of an employee working on the same job
for a long time.
 Rotational Transfer: Transfer initiated to increase the versatility (Usefulness) of employees.
 Shift Transfer: Transfer of an employee from one shift to another.
 Remedial Transfer: Transfer initiated to correct the wrong placements.
 Penal Transfer: Transfers initiated as a punishment for the in-disciplinary action of employees.
3. Demotions
 Demotion refers to the lowering down of the status, salary and responsibility of an employee.
 Demotion is just opposite to promotion.
 “Demotion is a shift to a position in which responsibilities are decreased. Promotion is, in a sense, an
increase in rank and demotion is decrease in rank”. According to Dale Yoder
Causes of Demotion:
 A promotee is unable to meet the challenges posed by a new job
 Due to adverse business condition, organization may decide to layoff and downgrade other jobs.
 Demotion may be used as disciplinary tool against misbehaving employees.
Demotion policy:
 A Clear list of rules along with punishment offences is made available to all the employees.
 Any violation is investigated thoroughly by a competent authority.
 In case of violations, it is better to state the reasons for taking such a step clearly.
 Once violations are proved, there should be consistent and equitable application of the penalty
 There should be enough room for review.
External Mobility/Employee Separation:
 It is the process of efficiently and fairly terminating workers
 Employee ceases to be members of an organization.
 Agreement between employer & employee comes to an end
 Employees decides to leave the organization

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VOLUNTARY SEPARATION:

1. RESIGNATION: A voluntary separation initiated by the employee himself. An employee quit due to
both personal & professional grounds.
2. RETIREMENT: Termination of Service on reaching the age of superannuation. Usually a result in the
retiree’s receiving benefits in the form of Provident fund, Pension.

 COMPULSORY RETIREMENT-Govt. employees retire compulsorily after attaining the age

of superannuation.
 VOLUNTARY RETIREMENT-some employees retire voluntarily. In some cases employer
encourages to the employees to retire voluntarily.

INVOLUNTARY SEPARATION:

LAY-OFF: A lay-off is a temporary removal of employees from the payroll of an organization due to
reasons beyond the control of an employer. Employer-employee relation does not come to an end merely
suspended. Laid off compensation has to be paid which is 50% of their basic + DA

RETRENCHMENT:
 CONCEPT-Retrenchment is the permanent termination of an employee’s services due to economic
reasons.
 The retrenchment compensation is 15 days salary for every completed year of service of the concerned
employee.
 Retrenchment Compensation = Per day salary * No. of Years * 15 Days
DUE TO-
 Surplus staff
 Illness
 Poor Performance
SUSPENSION / DISCHARGE
 CONCEPT-Prohibiting an employee from attending work and performing normal duties assigned to him
for specific period of time.
 Sort of punishment

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