Chapter Two Critical literature review

2.1. Chapter synopsis The critical literature review is the second section in the research report. The core function of this chapter is to give the idea about the topics covered in this research. The researcher designed this section as the critical literature review where the researcher used the available theories with the support of the views of the researcher and the justifications and arguments to prove these topics. The researcher has used the books, journals and websites to prepare this chapter in this research. 2.2. Introduction to human resource management It is very difficult is to put a limit or a boundary for the activity human resource management. Behind the formation of all the organizations there are some primary objectives and these primary objective are the factors that determines the functional activities of the organization. The people in the organization are the supporting factors in fulfilling the needs and the objectives of the organization. The technology in the organization is developed however; the important is of the employees or the human resources remains the same at all times in the organization. The existence of the organization is based and depended on the human resources in the organization. The human factor in the organization is the active factor in the organization. The human resources are the people in the organization and simply the human resource management is the managing of the employees in the organization. The human resources management is the set of the polices and the principles which is used to carry out the managing activities and functions of the human resources in the organization and this is a managerial activity as well. It is very easy to understand the basic functions of human resources functions in the organization which includes recruitment and selection, screening, training, motivation and appraising the employees. These are the core idea of the human resource management and the following sections will give a keen idea about the HRM in an organizations atmosphere.

HRM is the planning, organizing, directing and scheming of the procurement, expansion and reimbursement, integration, upholding and division of human resources to the end that personal, organizational and social objectives are talented.

The human resource management in an organization is viewed as the system in which the participants seek to attain both the individual and the group goals. HRM is the function in the organization that acts in the organization to make sure the effective use of the workforce in the organization.

The HRM in the organization has the following features in the organization. The HRM functions and the activities cover the all level of employees in the organization. That means all the employees in the organization from the top management and lower level employees come under the HRM department in an organization. The HRM is the matter that affects all the employees. The HRM is the integral part of the organization as a whole. HRM is the entrenched structure of the organization. The centre subsystem of the organization is the human resource management, as like all other functional management. HRM is a people oriented function as the key concentration is the employees. HRM considers the employees as people and the groups in the organization, to attain the goals. This is arrangement between the people and the employees in the organization. The concentration of HRM is to develop the employees and this leads to the developments of the organization. HRM functions are with the aim to develop the skills and capabilities of the employees. Above all the HRM is the function that concentrates on the development of the organization through the development of the employees. 2.3. Human resource planning The human resource planning is the first step in the HR planning in the organization. In the previous section we have discussed about the HRM in totality. This research is about the recruitment and selection in the organization and the HR planning is the action that comes prior to the recruitment and selection in the organization. The HR planning in the organization commences the estimation of the number of people needed in the organization to fulfill the needs of the organization. The HR planning is also known as man power planning as well, but both having the same role in the organization. The HR planning is also known as the employment planning, labor planning ad personal planning as well. The HR planning is just like all the organizational planning in the organization.

HR planning is the process in the organization that makes sure that the right number of people, right kind of the people, at the right place, at the right time to do the works

effectively in the organization. Human resource planning is the process that translates the number of the workers to meet the aim and objectives of the organization. The HR planning is the activity that determines and assures the availability of the qualified and skilled employees in meeting the needs of the organization. The HR planning concentrates activities in meeting the needs of the employees as well and the organization. 2.3.1. The need and importance of HR planning The HR planning is the integral part of the human resource management in an organization. The HR planning is linked with all the HR activities in the organization and the recruitment and selection are the most important. The HR planning is the activity that guides and supports the recruitment and selection in the organization. 2.3.1.1. Assesing the personnel needs of the company When there is a labor deficiency or the superfluous labor in the organization show the in the

absence of the proper human resource planning in the organization. The proper HR planning in the organization will help the human resource departments in avoiding this situation. Both the public and the private sector face these issues in the human resource department in the organization. The better plan in advance will lead the proper recruitment and selection in the organization. With the support of the HRP in the organization it is possible to maintain the proper number of the employees in the organization. So the proper HR panning is the guide line to the effective recruitment and selection in the organization. 2.3.1.2. Foundation of the HR functions The human resource planning is the first step of all the HRM activities in the organization. The HR planning knows the need of the employees in the organization and has an idea about the supply of the candidates from the job market as well. The HR planning is important supporting factor or activity in recruitment and selection in business firms. The HP planning offers the mandatory information needed in the recruitment and selection. 2.3.1.3. Coping with change The change in the organization is the part of business and this is the best method in the industry to meet the challenges from competition, innovations in technology, globalization,

government guidelines etc. These are the major factors that drive change to the organization. The change in the organization supports the demand in the personnel, content of the job and the qualification are determined by the HR planning in the organization. HR planning will make the employees able to adjust with the new changes in the organization. 2.3.1.4. Investment outlook Investing in the human resource is the major investment option in the employee management in an organization. Investing in the human resource is a better concept in long run in the human resource management. The human resource planning in the organization is the section that plans the investment options in the organization. 2.3.1.5. Employee turnover In all the organization there is an effect on the employee turnover, all the organizations suffer from the employee turnover. This is high among the graduates in the private sector. The issues regarding the employee turnover can be solved by the proper HR planning in the organization. 2.3.2. Objectives of human resource planning The major objectives of HR planning are detailed here: The proper assessment is possible by the HR planning in the organization. The HR planning in the organization foresees the needs of the organization and this helps the company to recruit and select as per the need of the organization. HR planning aims to create and develop the talented employees to the organization HR planning lower the cost for the employee management in the organization. HR planning makes the organization able to face the challenges from all the internal and external forces. The proper HR planning makes the employees and the HR department to work as per the objectives and the strategies of the organization. HR planning determines the skills of the organization in the future

All these objectives of the HR planning are either directly or indirectly linked with the recruitment and selection in the organization. This is the link with the HR planning and the recruitment and section process of the organization.

2.4. Recuritment After the completion of the HR planning in the organization the next step is to hire the employees needed in the organization. This is an important step in the business organization. The hiring involves the recruitment and selection. The frame work of the recruitment and selection process is detailed here.

2.4.1. Meaning and definition Recruitment is the procedure in which the large number of potential candidates is attracted by various methods to apply for the jobs. The recruitment is the process that searches the employees and stimulating them to apply for the jobs in the company. This is the major difference between the recruitment and selection. The recruitment is the process that brings the employees to the selection process or the screening process. The recruitment is the process that generating the pool of the skilled and eligible candidates for the particular job. The recruitment is the process that allows the organization to attract the candidates for the selection process in the organization. The recruitment is the process that allows the company to source the candidates to participate in the selection process. The process recruitment finds the sources to discover the employees to meet the staffing requiremts of the organization. Attracting the manpower is a major task in the

organization as this supports the human resource strategies and the overall strategy. The recuritmes is the process that separates the available ccondistes and candidates suitable for the organization. The recruitment is the process that facilitates the selection process in the organization. From the above definition it is clear that the recruitment is the process that attracts the large number of potential candidates in to the organization. This is a positive concept in the organization in which the employees will be attracted to the organization. The recruitment is the positive concept as this attracts the people to the company; in the meantime the section is a negative concept as selection rejects the applicants or the aspirants from the organization. In selection the best move to the company and this eliminates the rest in the selection process. 2.4.2. Recruitment policy All the organizations and the human resource departmts in the organization will have the recruitment policy. The recruitment policy in the organization begins with the HR planning and prior to the recruitment process and activity in the organization. A good recruitment policy is the guiding factor for the recruitment factor in the organization. The core aim of the recruitment policy in the organization is to fill the vacancies in the organization with the qualified employees available in the job market. The recruitment policy will include certain features in on the basis of the industry and the employment regulations in the country to which the company belongs. A good recruitments policy in the organization has the following features and some of the features are detailed here. The recruitment policy of the organization should be based on the objectives of the organization both in long term and in the short term basis. So the major feature of the recruitment policy of the organization is to develop the recruitment plan based on the overall strategies and the HR strategy of the organization. The job analysis is mandatory prior to the recruitment process. In the job Analysis Company will get the idea about the person specification and the demand by the organization. The section, job analysis allows the company to execute the recruitment in a proper way in the organization. The

recruitment policy needs to specify the attitude of the company about the selection of the women employees, handicaps, part time, student, expatriate etc. This will give the proper

guide line in the selection process in the organization. The recruitment policy has to lay down the long term plans for the career development of the employees. The recruitment policy in of the company should have the clear idea about the promotions within the organization. The recruitment policy needs to indicate the preferred sources for recruitment. 2.4.3. Fcators affecting the recruitment There are many factors that affect the recruitment and selection in an organization. The factors that affect the recruitment can be divided into two sections, internal and external. Both the internal and external factors have the equal importance in the organization. 2.4.3.1. Internal factors The internal factors that affect the recruitment process and the policies of the organization are detailed here. The growth plan of the organization will be taking into consideration and the expansion plans of the organization as well in the recruitment polices. The human resource planning strategy of the organization also has a role to affect the recruitment in the organization. The human resource management strategy is linked with the organizational strategy and this affects the recruitment policy of the organization. The next factors are the recruitment policy itself, and this policy has a link with the other two factors. In short this can be concluded that these are three strategies come under the internal strategy of the organization. The other internal factor is the cost that needed for the recruitment functions of the organization. The size of the organization also will be taken into account. The recruitment will be on the basis of the size of the organization. Suppose the organization is big in size the company need to recruit people in more quantity and in good quality. The trade unions also placed a role in the recruitment in the organization. The impact and the influence of the trade union is both negative and positive at the same time. The trade union can force the company to recruit the people they want to recruit to the organization. The organizational culture is the other factor that affects the recruitment strategies and the policies of the organization. The company has to meet the employees, who are able to meet the organizational standards. The other factor that affects the recruitments from the internal factors is the image of the company in the market. This is an important factor as the employees are the persons who represent the company and they should be capable to meet the image of the company in the public and in the market. The pay offered by the company will also be considered in the entire

recruitment process. The company needs

to recruit the employees, to whom the

company can offer the best pay as they can. The demand and the expectation of the candidates need to meet the ability of the company to offer to the employees. The quality of the work life is other internal factor that affects the recruitment in the organization. The quality of the work which the company can offer is important to the employees. Finally the geographical specifications in recruitment are also considered. Companies will have specific policies about the recruitment of the expatriate in the organization and this will have a base on the policies of the government as well. These are the major internal factors that affect the recruitment in the organization. 2.4.3.2. External factors Apart from the internal factors these are internal factors as well there are external factors as well. The external factors also important like the internal factors. The socio economic factors are the important among them in the recruitment. The education and the income level of the candidates are the major socio economic factors in the organization. This will affect either directly or indirectly the recruitment policies of the organization. The second external factor is the supply and the demand rate of the skilled and the qualified employees in the market. The recruitment will be a success only if the supply in the market can meet the demand of the organization. The technology and the innovations in technology also have an important role in the selection as well. The innovations in technology affect the recruitment in the organization. Finally the regulations and the polices of the respective governments. The governments are the policy makers and they affect the appointment of the expatriates in the company. Both the internal and the external factors are equally important in the organization. The keen attention of the organization over these factors is important. 2.4.4. The sources of recruitment In this section as well the recruitment sources can be divided into two: external and internal. 2.4.4.1. Internal sources The internal sources are the primary sources for the recruitments propose. In the internal sources the company can recruit the employees from the same department or from any

other departments in the organization. This gives the opportunity to recruit the employees easily and with the experience in the company. The recruiting from the internal sources will allow company to save the cost the recruitment and this allows the company to maintain this cost in other welfare activities. The recruiting will be the best option to raise the morale of the employees. This will provide the job security to the employees and this is the better tool in maintaining the employee relations as well in the organization. In the mean time the company will give the opportunity to the employees in take a partnership in the recruitments process of the organization. The support of the trade unions is important and this is available in the internal recruitment. The major sources which can be used internally are detailed here. 2.4.4.1.1. Current and present employees Many companies in the industry have the policy to inform the existing employees about the vacancies first. This gives the chance to the employees to get a hike from the current position and will get an opportunity to change the current location or the current job department. In the mean time the company can promote or transfer an employee to other department or branch by recruiting the employees. This will create a job vacancy as well and this allows the company to maintain the recruitment process. This is a good option in which the company gets an opportunity to save the money for the recruitment process. 2.4.4.1.2. Former employees The other option in the organization is to maintain the recruitment from the employees previously worked with the company. They are not presently with the company but have worked with the company before. The employee who laid-off before and the seasonal workers are normally come in to the category. The recruitments from the former

employees will be possible when the company decide to recruit from these kinds of sources. The experience and the performance of the employees will be taken into consideration. 2.4.4.1.3. Referrals from the current employees The other option is the referrals from the current employees. This can be considered as both the internal and the external source at the same time. The company can use this method effectively as like recruiting the employees from the organization itself. The current employees in the organization have the possibility to know both about the

company and the individual they refer. This will give a chance a refer the best candidate to the organization. The employee has the possibility to refer the most suitable candidates as well. The recruitments from the referrals will give the option to give an employee loyalty and employee satisfaction to the employees. This helps the human resource managers in maintaining the good relationship with the employees. 2.4.4.2. External sources It is not very easy to recruit from the internal sources alone and this will lead the company to depend the external sources as well in the recruitment process. There are many external sources that the company can make it easily in the organization. The major advantage of the external recruitment is to attract the multi and highly skilled employees from various sources and this allows the company to select from many options. The company can attract the new talents than depending on the current talents The new as well as the fresh candidates in the organization will be able to make many changes in the organization. External sources will have certain disadvantages as well in the advantages. This method will affect the morale of the insiders than the outsiders and this will affect the overall operation. The external sources will deny career advancement schemes of the employees. The cost is high while the recruitments are from the external sources. The cost of the recruitment process and the training cost also will be considered. 2.4.4.2.1. External sources There are many external sources in the organization and this allows the company to use multiple methods in the selection and the recruitment. The major and most widely used source is the advertising. The company can place the advertising about the available positions in many advertisings and this allows the candidates to come to know about the various methods. Advertising will allow the company to maintain the attraction of the candidates to the job posting. The company can place the advertising in all the traditional and the digital media. The support of the employment exchange is the other source for the recruitment purpose. This gives a data base to the company and possible to invite the job seekers. The recruitment directly from the campus and the recruitment by the help and support of the consultants in the organization will be able to make the employees recruitment effective in the organization.

In the mean time the company can recruit the employees from the competition as well. The recruitment from the competition will give a positive boost in the company. 2.5. Selection The following activity and the process in organization is selection in the organization. The aim of the selection process in the organization is to choose the suitable candidates to the organization from the stage or the process of recruitment. The selection can be considered as the final phase in the recruitments and the selection of the organization. The process of employee selection is to select the most suitable one from the all possible candidates. 2.5.1. Selection process The real purpose of the selection in the organization is to match the people with the work. The selection of the employees is one of the most effective functions of the human resource management in the organization. This is the method that makes the human resource management in the organization. The methods used in the selection process are not the matter but the effectiveness of the selection process is important. The well designed structure of the organization is the matter that determines the selection method in the organization. The excellence in the selection method is the best option in the industry to maintain the performance of the employees in the organization. The key elements in the selection are: The selection in the organization needs the clear and the precise specification in the organization. The selection in the organization needs selection process The elimination of the redundant process The selection needs to measure the ability of the candidates The selection in an organization needs the continuous improvement to use the multiple methods in the

2.5.2. Selection methods

The companies will have the option to take the take the decisions about the selection methods which they need to follow in the organization. The common methods which the companies can use in the employee selection are detailed here. 2.5.2.1. Interview method The interview method is the most common and widely used method in selecting the candidates to the company. This is the traditional method that helps the company to obtain and asses the information from the candidates. The interview method will allow the company or the interview panel to conduct a prediction about the future performance of the employees in the organization. The interview is the method that processes the evaluation and examination of the talents of the candidates in the interview. The interview panel gets the chance to review the candidate as what he detailed in the resume. This is the opportunity to identity the talents of the candidate participating in the interview. The interview panel will get an opportunity to have a face to face discussion while conducting the interview in the selection method. The interview method has both advantages and disadvantages in the business. These major advantages of interview method are detailed here. The interview method in selection will give a chance to both the candidate and the panel to get the opportunity to conduct an open discussion. The company can describe the job profile and this give the chance to the candidate to conduct and an open discussion about all the possible doubts and questions. The interview is the best method that allows the candidates to ask questions to the panel and vice versa. The face to face discussion and the interview allow the interview panel to maintain and come to an easy conclusion. The interview method will allow the candidate to come to know about the organization and the opportunities which the company can offer to the organization. Apart from the advantages there are certain disadvantages as well. The predictions which are possible by the help of the interview method would have the problem of validity in and this may not be true at all times.

The interview panel cannot reach at the final conclusion on the basis of interviews as the skills for some job may not be identified with the help of the interview. The interview will lead to subjective judgment in the organization.

2.5.2.2. Assesmnet centers One of the most useful selection methods is the selection by the assessment centers. The assessment centers give a comprehensive approach in the selection method and the selection of the candidates. The assessment centers are the place where the company can assess the candidates with the support of many methods and the help of the third party in the selection method. The centre focus in the assessment centre is the behavior of the candidates. These centers make sure about the evaluation and examination on the candidates from all the dimensions. The company and the candidates will get the chance to review the candidates from various view points and this makes sure about the good and sound selection in the organization. 2.5.2.3. Graphology One of the modern approaches in the selection is graphology and this is not widely used as the method is not easy to execute in the company. The graphology is the method that allows the company to assess the candidates with the help of his or her writing. The hand writing is the best and scientifically proven method to identify the behavior of the human beings. The methods is a less time consuming method but this method is not always valid in the selection method. This method is uncommon in the United Kingdom. This method will be effective while it can be used as one among the method in the selection in the organization. The validity of this method is poor in nature. 2.6. Outsourcing the recruitment and selection The other common method in the recruiting and selection is to outsource the recruitment and selection in the organization. The aim and purpose of the outsourcing the selection and the recruitment is to give this job to outside agencies and the outside consultants. These outsourcing parties carry out the all the activities until the final selection in the organization. The outsourcing is effective in the middle level and the lower level employees and this is not applied in the senior level mangers and the senior level staff. The lower level employees are

quick and the quite in the operations. The company and sometimes the candidates need to pay of the agencies 15 % of the salary in the first years. However these outsourcing agencies are effective in offering the professional service to both the candidates and the employers. The process of outsourcing the employees is starts with the agreement with the company and the employers. The employers need to give the brief idea about the person specification and the rest of the things will be taken care by the agencies. While applying the outsourcing facilities the company will be engaged with the final selection in the organization. The employers will be free from the preceding activities and this allows them to save the time in the doing the activities and full concentration in the selection is possible. This is the era of globalization and the recruitment from the outsourcing companies is common in nature. This allows the company to maintain a sound and good selection process in the organization. The outsourcing of the recruitment is effective in both large scale and the small scale companies. The outsourcing of the recruitment is the best method to grow the business and this allows the company in maintaining the effective role of human resources in the organization.

2.7. E-Recruitment and selection The other modern approach in the human resource function in the recruitment is the Erecruitment in the business organization. The process of E-Recruitment is the process that allows the company to make possible the online recruitment with the help and support of the online facilities like internet. The major process in E-recruitment consisted attracting, screening, tracking the applications, selecting and offering the job or rejecting. All the recruitment and selection are possible through the recruitments and selection. The most important advantage of the recruitment and selection with the support of the online is the ability of this method in saving the time and cost of the organization and the human resource department in particular. This only method that follows the same method as the traditional method in the human resource management.

The method saves money but this is not the only advantage of this method in the organization. The E-recruitment and selection allows the company to offer more information about the company and the job profile. This allows the candidates to check with his or her skills and this will be possible in the effective application of the recruitment and selection process in the organization. The E-recruitment is the option that makes the recruitment and selection process more effective and this allows the company to maintain the flexibility of the recruitment process of the organization. This is much long process of selection than the traditional method but this method allows more effective and smooth process in the recruitment and selection. In the post modern era the use and the application of the information technology is important in the recruitment and the selection in the company. If the company is not using the e recruitment and selection also the early stage communication is possible with the support of the internet and other online measures. The companies will have many possibilities and chances to use the advantages of the internet in the recruitment and the selection. The application of the IT allows the company to review more applications within the short period of time. 2.8. Recuritment, selection and employee retention Retaining the employees is one of the most difficult and most needed tasks in the organization to maintain in the human resource management in the organization. This allows the company to retain the best employee with the company. The importance of selecting employees who retain with the organization is important. If the company applies the recruitment and selection frequently in the organization this is due to high employee turnover in the organization and this will lead the company in failing the effective employee relationship in the organization. Along with the recruitment and the selection process the company needs to maintain the possibilities and the strategies to retain the employees as well in the organization. The challenge which the company faces in the recruitment and the selection is not only to select the people to the company bit also to retain them at the maximum period of time in the organization. The good recruitment and the selection process in the organization are able to identify the employees with the possibility to retain in the organization. In order to grow in a profitable way the company need to maintain a good retention polices the base of the retention policy is linked with the recruitment and the selection methods and the strategies of the company.

2.9. Improving the effectiveness of the selection and the recruitments The recruitment and the selection process in the organization is linked with the entire human resource management in an organization. The companies have the possibility in maintaining the effectiveness in the selection and the recruitment of the organization. The best method that supports the companies to maintain the effectiveness in the recruitment and selection in the organization are matched the needs of the company with the skills and the capabilities of the employees very closely. The effectiveness can be reviewed by adding the commitment in the recruitment and the selection process in the organization. The company can make sure the accuracy and the effectiveness of the recruitment and selection method by applying and mixing the accurate methods in the selection and the recruitment methods. In the detailed diagram the researcher details the accuracy of certain methods used in the selection process.

The recruitment and the selection methods and the strategies need a sophisticated approach in the organization and in the human resource management. 2.10. Conclusion In the final stage of this chapter the researcher is going to conclude the summary of this section. The researcher of this research is detailed about the recruitment and the selection in the organization. This is the integral part in the human resource management in the organization. The companies need to make a keen interest in this section as this is the base of all the human resource management functions.