MM ZC441: Human

Resource Management
BITS Pilani Lecture-4 Total ppt: 51 Date: 13/8/16 Swati Alok
Hyderabad Campus
 BITS Pilani
Hyderabad Campus

Chapter-6
Recruiting Human Resources
Learning Objectives

• Understand recruitment process

• Various recruitment methods
• Matching sources with methods
• How to make effective advertisement
• Recruitment source effectiveness

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Cisco Case

• Sources : active seekers, passive seekers, senior engineers,

marketing professionals, internet savy manger, people from silicon
valley
• Consumer behaviour analysis(market research): how sources
spend free time, websites they visit, how they felt about job hunting
• Friend suggestions ; “word of mouth”, corporate dilbert ; www.
Travelquest .com;
• “make friends @ Cisco
• Profiler tool (Oh No! My boss is coming!
• Amazing people- referal program
• Convenience for new employee: “fast start” assign New Buddy; 2
days workshop in “Cisco Business essentials “

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Nature and Purposes of
Recruitment
Recruitment is the process of searching for and
obtaining applicants for jobs
• Qualified job candidate is your customer when you are trying to sell
the job to him or her: some key questions to be answered by
everyone involved in recruiting process is
• Your target market – source;, consumer behaviour; methods;
positioning
• Do you treat applicants as your customer
• Would applicants describe their visit as positive and pleasant.
• What are the most important things the applicant is looking for in a
job,?
• Are interview scheduled around the applicants preference?

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 Recruitment process
Recruitment planning (yield ratio; make-buy skill )

Employee requisition

Recruitment

Internal sources External sources

Internal methods External methods

Recruited individuals (prescreening)

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Recruitment Yield Pyramid

Offer Acceptance
20
Offers/Acceptance (3:2)
Job Offer
30 Interview/Offers (4:3)
Invited for Final
Interview
40
Screening/Invites (5:1)
Invited to Screening
Interview
200
Contacts/Screens (10:1)
Initial Contacts
2000

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Internal recruitment methods

Source: where qualified candidates are located, such as

college, competitors
Internal source: current employees
Internal methods: job posting ( bulletin board, intranet,
internet, company's online news letter, email alerts)
Employee Referrals
– Applicants who are referred to the organization by current
employees
• Referral is a cost-effective recruitment program.

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Internal Sources of Candidates:
Hiring from Within
Advantages Disadvantages
– Foreknowledge of – Failed applicants
candidates’ strengths become discontented
and weaknesses
– Time wasted
– More accurate view of
candidate’s skills interviewing inside
candidates who will not
– Candidates have a
stronger commitment to be considered
the company – Inbreeding of the status
– Increases employee quo
morale
– Less training and
orientation required

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External recruitment sources
Vocational schools
College & universities
Competitors in labour market
Former employees
Unemployed
Military personnel

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External recruitment methods
Media advertising
Employment agencies
Job fairs
Internships
Walk-in interviews
Event recruiting
E-recruitment
Employee Referrals
– Applicants who are referred to the organization by current
employees
• Referral is a cost-effective recruitment program.

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External recruitment methods

Employment agencies: Organization that helps forms

recruit employees and at same time aids individual in
their attempt to locate jobs
Job Fair: recruiting method engaged in by a single
employer or group of employers to attract a large
number of applicants to one location for interviews.
Event recruiting: Recruiters going to events where
individuals the company is seeking to attend. Eg cisco

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External recruitment methods
Advertising
– The Media: selection of the best medium depends on the
positions for which the firm is recruiting.
• Newspapers (local and specific labor markets)
• Trade and professional journals
• Internet job sites
• Marketing programs
Constructing an effective ad
– Wording related to job interest factors should evoke the
applicant’s attention, interest, desire, and action (AIDA) and
create a positive impression of the firm.

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 Designing advertisement
• When drafting your recruitment advertisements, bear in mind the following points which are universally applicable job
advertisement should be:
• eye-catching (Wherever you advertise, have a bold heading. You can use the job title itself if it sounds impressive or
is unusual..Alternatively, you might prefer to put the name of your company across the top of the advertisement. Do this if it is
both well known and has a good reputation locally or nationally, as appropriate. )
• concise (Once the potential applicant has seen the recruitment advertisement, lie must study it. To encourage this, the
text should be brief and to the point. Supply key information as succinctly as possible. Use compact paragraphs and short
sentences. Stick to plain English, avoiding fancy and confusing phrases. If details are not relevant, cut them out. Should your
words not be absolutely clear, change them. Otherwise, the reader will lose interest and look at the next advertisement
instead. )
• logical (Similarly, set out the text in a sensible and progressive order (job duties, salary, fringe benefits and so on).
Jumping back and forth to and from different subjects is discouraging. Each paragraph should deal with one, self contained
topic. Every sentence should make one simple point Do not cover the same topic or points again. Never repeat yourself)

• humour-free (Although humour can be very effective in some advertising campaigns, steer clear of it in recruitment
advertisements. Most people view job hunting as a serious matter-they could be unemployed with a mortgage to pay and
children to support- and might be alienated by comments which they regard as flippant or patronizing. Also, everyone’s sense
of humour is different. ‘Funny ha-ha’ to one person may be ‘funny peculiar’ to another. )

• non-discriminatory (As always, you should avoid discriminating on the grounds of sex, marital status or race. The
presentation and phrasing of your advertisements must not imply that only people of a particular sex, marital status or racial
group should apply for the job. Be especially careful of your job title. Replace the discriminatory ‘Barmaid’ or ‘Salesman’ with
‘Bar Person’ and ‘Sales Person’. Put ‘Typist (Male or Female)’ and ‘Car Mechanic (Male or Female)’. Should you use a
personal pronoun, state ‘He/She’ or ‘He or She’? The Equal Opportunities. It is worth adding here that you should encourage
suitable people with disabilities to contact you too. Perhaps add a phrase such as ‘We welcome applications from disabled
persons’. This will help to ensure that you are seen as a company which offers fair and equal opportunities to all suitably
qualified applicants.)

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 Help
Wanted Ad

Source: The Miami Herald, March 24, 2004, p. SF. Figure 5–7
5–15
 Tailoring recruitment methods to sources
External Exte campus inte referrals Headh Profession Employm
source rnal interview rnsh unting al ent
met ip associated agencies
hods

colleges
Competitors/o
ther firms

unemployed

High schools

Human Resource Management, 5E 16

Recruitment cost
Cost per hire= AC+ AF+RB+TC+RE+RC
H
AC- Advertisement cost
AF- agency fees
RB- referral bonus
TC- travel cost
RE- relocation cost
RC- recruiter costs
H- no. of hires

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 Assessing effectiveness of recruitment
source (example)
Source No. of No. of Total cost Turnover Average
employment acceptances after 1 performance
offers year rating at 1
year
College
recruitmen
t
referrals
E-
recruiting

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Cisco Case

Methods adopted:

Corporate website
Advertisement
Referral program (Amazing people)
Job fair (event recruiting)

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 Assessing effectiveness of recruitment
source (Cisco)
Source No. of No. of Total cost Turnover Average
employment acceptances after 1 performance
offers year rating at 1
year
Corporate 8000(81%) 66% Reduce by Retention high
website 40% (6.3%)
referrals Twice then Reduction in hiring cycle from 68 days to 45 days
average

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Summary

Recruitment is sales activity

Yield ratio
Internal source and internal methods
External source and external methods
Mapping of source with method
Cost per hire
Measure of effectiveness of recruitment process

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 BITS Pilani
Hyderabad Campus

Chapter 7: Selecting Human Resources

 Chapter 7
Selecting Human Resources

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Learning Objectives

• Understand the nature of

selection and appreciate its role
• Describe the selection process
• Identify new methods of selection
• Evaluation of Selection Program

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Selection
Selection is the process of picking individuals (out
of the pool of job applicants) with requisite
qualifications and competence to fill jobs in the
organization.
“It is the process of differentiating between
applicants in order to identify (and hire) those
with a greater likelihood of success in a job.”

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Why is ‘Careful Selection’
important?

The Importance of Selecting

the Right Employees

Legal
Organizational Costs of Recruiting
Obligations and
Performance and Hiring
Liability

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Legal
Obligations and Liability

Negligent hiring ; hiring workers with

questionable backgrounds without proper
safeguards

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Selection Decision Outcomes

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Selection Process External Environment

Internal Environment

Preliminary Interview

Selection Tests

Employment Interview
Rejected Applicants

Reference and
Background Analysis

Selection Decision

Physical Examination

Job Offer

Employment Contract

Evaluation

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Basic Testing Concepts
Reliability
– The consistency of scores obtained by the same
person when retested with the identical or equivalent
tests.
– Are the test results stable over time?
Test validity
– The accuracy with which a test, interview, and so on
measures what it purports to measure or fulfills the
function it was designed to fill.
– Does the test actually measure what we need for it to
measure?

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Types of validity

Test validity

Criterion
Content validity
validity

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Types of Validity

Criterion validity : a type of validity based on showing that

scores on the test (predictors) are related to job
performance (criterion)

Content validity: a test that is content valid is one that

contains a fair sample of the tasks and skills actually
needed for the job in question.

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How to Validate a Test
Step 1: Analyze the job
– Predictors: job specification (KSAOs)
– Criterion: quantitative and qualitative measures of job
success
Step 2: Choose the tests
– Test battery or single test?
Step 3: Administer the test
– Concurrent validation
• Current employees’ scores with current performance
– Predictive validation
• Later-measured performance with prior scores

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How to Validate a Test (cont’d)
Step 4: Relate Test Scores and Criteria
– Correlation analysis

• Actual scores on the test with actual performance

• Expectancy chart

Step 5: Cross-Validate and Revalidate

– Repeat Step 3 and Step 4 with a different sample of employees.

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Selection test

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Cognitive ability test

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 Job knowledge test

Which gear will turn the same way as the driver?

Source: Reproduced by permission. Copyright 1967, 1969 by The Psychological Corporation, New York, NY. All rights reserved. Author’s
note: 1969 is the latest copyright on this test, which is still the main one used for this purpose. Figure 6–5
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Personality test

Human Resource Management, 5E 38

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Measuring Personality and Interests
Personality tests
– Tests that use projective techniques and trait
inventories to measure basic aspects of an applicant’s
personality, such as introversion, stability, and
motivation.
– Disadvantage
• Personality tests—particularly the projective type—
are the most difficult tests to evaluate and use.
– Advantage
• Tests have been used successfully to predict
dysfunctional job behaviors and identify successful
candidates for overseas assignments.

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Interest inventory test

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Integrity test

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Structured interview test

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Work sample test

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 Assessment center ( A set of stimulated tasks or exercise that

candidates (usually for managerial positions) are asked to perform)

Human Resource Management, 5E 44

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Physical ability test

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Other selection Tests
Graphology test is designed to analyse the handwriting of
an individual. It has been said that an individual’s
handwriting can suggest the degree of energy, inhibitions
and spontaneity, as well as disclose the idiosyncracies,
and elements of balance and control.
Polygraph tests are designed to ensure accuracy of the
information given in the applications. Department stores,
treasury offices and jewellery shops – that is those highly
vulnerable to theft or swindling – may find polygraph
tests useful

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Methods of Interviews

(a) One-to-One Interview

(b) Sequential Interview

(c) Panel Interview

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Kinds of Interview
Type Type of Questions
Structured A preset checklist of questions
usually asked from all the
applicants
Unstructured Few planned questions.
Questions are framed during the
course of interview
Mixed Combination of structured and
unstructured questions.
Behavioural Framing questions for the
hypothetical situation created in
interview and evaluating on the
basis of solution and approach
offered by applicant
Stressful A series of harsh, rapid fire
questions intended to upset the
applicant
Field(s) where applicable
Useful for getting valid results
especially when dealing with
large number of applicants
Applied when interviewer wishes
to validate and confirm certain
facts
Realistic approach that yields
comparable answers plus in-
depth insights.
Useful in exploring personality
make-up, abilities, and other
psychological variables related
to employment
Useful in assessing candidates
for stressful jobs like handling
customer complaints etc.
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Shortcomings of interviews
Absence of reliability
Lack of validity
Biases of interviewers
Common interview problem:
Halo effect: occurs when an interviewer judges an
applicant’s entire potential for job performance on basis
of single trait, such as how applicant dresses or talks.
Contrast effect :

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Three Ways to Make the
Interview Useful

Structure the interview to

increase its validity

Making the Carefully choose what sorts of

Interview Useful traits are to be assessed

Beware of committing
interviewing errors

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Creating Effective Interview
Structures
Base questions on actual job duties.
Use job knowledge, situational or behavioral questions, and
objective criteria to evaluate interviewee’s responses.
Use the same questions with all candidates.
Use descriptive rating scales (excellent, fair, poor) to rate
answers.
If possible, use a standardized interview form.

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Sample Interview Evaluation
form

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Background Investigations &
Reference Checks
 Investigations and Checks
– Reference checks
– Background employment checks
– Criminal records
– Driving records
– Credit checks

 Why?
– To verify factual information provided by applicants.
– To uncover damaging information.

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 Reference & Background Checks

– The importance of checking:

• 40 percent of applicants lie about work histories

and educational backgrounds.
• 20 percent of applicants falsify credentials and
licenses.
• 30 percent of applicants make misrepresentations
on their resumes.

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Reference Checking Form

Source: Society for

Human Resource
Management, ©
2004. Reproduced
with permission of
Society for Human
Resource
Management in the
Format Textbook
via Copyright
Clearance Center.

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Background Investigations and
Reference Checks (cont’d)

Former Employers

Current Supervisors

Sources of Commercial Credit

Information Rating Companies

Written References

Social Networking Sites

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The Job Offer

– Making the job offer:

• May be done by phone, letter or in person.

• Make arrangements for further conditions:
– Physical exam and drug screen.
• Discuss salary and benefits:
– Avoid quoting an annual salary.
• Realistic job preview,

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 Job offer is made through a letter of appointment.
Decency demands that the rejected applicants be informed
about their non-selection.
Contracts of Employment:
Job titles, duties, date of joining, salary, method of
payment, working hours, holidays, notice period.

Human Resource Management, 5E 58

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Evaluation of selection program

Human Resource Management, 5E 60

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KEY TERMS :Please read
notes uploaded …
Ability Test
Accept Error
Aptitude Test
Reject error
Behavioral Interview
Content validity
Criterion validity
Halo Effect
Intelligence Test
Concurrent validation
Predictive validation
Reliability

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