Recruitment and Selection (As per the New Syllabus of Mumbai University for S.Y. BMS, Semester III)

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2 Recruitment and Selection (As per the New Syllabus of Mumbai University for S.Y. BMS, Semester III) Vaneeta Raney M.M.S, M.Com., NET (MGMT), B.M.M. Course Coordinator & Corporate Trainer. S.I.E.S. College ASC, Sion (W), Mumbai. Booma Halpeth B.Sc., M.B.A., M.D.B.A., P.G.D.R.M., NET, Assistant Professor, SIA College of Higher Education, Dombivali (E). Dr. Veena Prasad Ph.D., M.Com., M.Phil., M.B.A., Co-ordinator Banking and Insurance Department, SIWS College, Wadala, Mumbai. Arti Sharma MBA, M.Phil., Assistant Professor, Viva Institute of Management & Research, Virar. Byshi Panikar M.Com., B.Ed., PGDHRM, BMS & BBI Co-ordinator, Patuck Gala College of Commerce & Management, Santacruz (E) MUMBAI NEW DELHI NAGPUR BENGALURU HYDERABAD CHENNAI PUNE LUCKNOW AHMEDABAD ERNAKULAM BHUBANESWAR INDORE KOLKATA GUWAHATI

3 Authors No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording and/or otherwise without the prior written permission of the publisher. First Edition : 2015 Published by : Mrs. Meena Pandey for Himalaya Publishing House Pvt. Ltd., Ramdoot, Dr. Bhalerao Marg, Girgaon, Mumbai Phone: / , Fax: himpub@vsnl.com; Website: Branch Offices : New Delhi : Pooja Apartments, 4-B, Murari Lal Street, Ansari Road, Darya Ganj, New Delhi Phone: , ; Fax: Nagpur : Kundanlal Chandak Industrial Estate, Ghat Road, Nagpur Phone: , ; Telefax: Bengaluru : No. 16/1 (Old 12/1), 1st Floor, Next to Hotel Highlands, Madhava Nagar, Race Course Road, Bengaluru Phone: , , , Hyderabad : No , Lingampally, Besides Raghavendra Swamy Matham, Kachiguda, Hyderabad Phone: , Chennai : New-20, Old-59, Thirumalai Pillai Road, T. Nagar, Chennai Mobile: Pune : First Floor, "Laksha" Apartment, No. 527, Mehunpura, Shaniwarpeth (Near Prabhat Theatre), Pune Phone: / ; Mobile: Lucknow : House No. 731, Shekhupura Colony, Near B.D. Convent School, Aliganj, Lucknow Phone: ; Mobile: Ahmedabad : 114, SHAIL, 1st Floor, Opp. Madhu Sudan House, C.G. Road, Navrang Pura, Ahmedabad Phone: ; Mobile: Ernakulam : 39/176 (New No. 60/251) 1 st Floor, Karikkamuri Road, Ernakulam, Kochi Phone: , Mobile: Bhubaneswar : 5 Station Square, Bhubaneswar (Odisha). Phone: , Mobile: Indore : Kesardeep Avenue Extension, 73, Narayan Bagh, Flat No. 302, IIIrd Floor, Near Humpty Dumpty School, Indore (M.P.). Mobile: Kolkata : 108/4, Beliaghata Main Road, Near ID Hospital, Opp. SBI Bank, Kolkata , Phone: , Mobile: Guwahati : House No. 15, Behind Pragjyotish College, Near Sharma Printing Press, P.O. Bharalumukh, Guwahati , (Assam). Mobile: , , DTP by : Pooja Printed at : Rose Fine Art, Mumbai. On behalf of HPH.

4 ACKNOWLEDGMENT With the blessings and grace of our Puj. Sai Dr. Rochaldas Sahibji, I wish to personally thank for their latent contributions to my inspiration and knowledge. I would like to express my gratitude to the many people who saw me through this book; to all those who provided support, talked things over, read, wrote, offered comments, allowed me to quote their remarks and assisted in the editing, proof-reading and design. I would like to thank S.K. Srivastav, Nimisha, Archana, Sunanda, Deepak, Rakesh and Rajesh for helping me in the process of selection and editing. Thanks to Pandeyji, my publisher, who encouraged me. I beg forgiveness of all those who have been with me over the course of the years, my parents Smt. Nisha and Shri Premkumar Raney with my little princesses Kanchan and Sanam, whose names I have failed to mention. Please share your feedback. It improves everyone s experience with the content and it opens up the opportunity for multi-directional conversation. My deepest regards and gratitude to Shiv Baba Incorporeal God Father Shiva through Brahma Baba of Prajapati Brahamkumari Ishwariya Vishwavidyalaya and B.K. Meenakshi Behen. Vaneeta Raney I would like to express my deepest thanks to the Management of SIWS NR Swamy College of Commerce and Economics, Mumbai, for their constant support in bringing out this book. Last but not the least, it s the students who had always encouraged me in this pursuit. My thanks and admiration goes to the talented Editorial and Production people who have done a wonderful job to transform the manuscript into a handsome book. I would like to express heartfelt gratitude to all my Colleagues and Library Staff, who have helped me in writing the book. My sincere thank to my parents, husband and my lovely kids for their support and providing unceasing encouragement, precious, erudite suggestions and directions, constant and untiring guidance. I would like to express my sincere gratitude and thanks to Himalaya Publishing House Pvt. Ltd. for supporting me in the publication of this book. Dr. Veena Prasad I would like to thank my husband, son and my parents for encouraging me and supporting me. I thank all my students who have always inspired me and helped me to identify means to improve myself as a teacher. I would like to express my heartfelt gratitude to all those who motivated me to write this book. I thank S.K. Shrivastav, Nimisha, and Archana for helping me and supporting me. I thank Himalaya Publishing House Pvt. Ltd. for giving me this opportunity to co-author this book. Booma Halpeth I am grateful to those who have relentlessly provided the necessary support, the right kind of information and the expertise required for achieving the mission. During the intervening period, I came across some wonderful people in the form of relatives, friends and acquaintances from which I have learnt immensely. While it is not possible to name them individually, I would like to express a deep sense of gratitude towards the publisher Mr. Shrivastav Sir. My sincere thanks is to my husband Shrinidhi Sharma and my two kids Soham and Karthik who has contributed a lot towards the book. I would also like to appreciate all those who help me to gather the information and complete this book. Arti Sharma

5 Preface Recruitment of talented employees is an essential part of any company s ability to maintain success and ensure the achievement of standards within an organisation. As the world economy experiences significant improvements in employment, slowly growing and becoming more stable in the prolonged wake of The Great Recession, spurred job creation could usher in innovation for recruiters. Across the globe, as more businesses look to hire new employees quickly so they can meet the rising demands of their operations, HR personnel appear to be turning to advanced tools that will help them make their recruiting practices more efficient. While the Internet alone has proved to be an effective solution for companies hoping to hire, organisations are now embracing mobility to ensure that they make the applications process readily available to viable prospects, which could allow companies to take on the talent they need without expending a substantial amount of resources. As recruiting innovations continue to grow, we are excited about the new and emerging technologies and how they will disrupt our industry. In today s recruiting landscape, businesses have more choices than ever when it comes to talent acquisition and recruitment solutions. As employers and recruiters look to the most effective channels for sourcing the most qualified talent, it is important that they also assess their own internal hiring processes. The composition of the handbook is as per the prescribed syllabus of Mumbai University, for Second Year BMS Semester III students and instructors at large. It shall also prove valuable to HR executives for in-depth references and study for enhancing their conceptual understanding. Authors

6 Syllabus Learning Objectives: RECRUITMENT AND SELECTION [60 Lectures: 3 Credit] 1. The objective is to familiarise the students with concepts and principles, procedure of Recruitment and Selection in an organisation. 2. To give an in-depth insight into various aspects of Human Resource Management and make them acquainted with practical aspect of the subject. Unit No Name of the Topic No. of Lectures Unit 1 1. Concepts of Recruitment Meaning, Objectives, Scope and Definition, Importance and Relevance of Recruitment. 2. Job Analysis Concept, Specifications, Description, Process and Methods, Uses of Job Analysis. 3. Job Design Introduction, Definition, Modern Techniques, Factors Affecting Job Design, Contemporary Issues in Job Designing. 4. Source or Type of Recruitment (a) Direct/Indirect, (b) Internal/ External. Internal Notification, Promotion Types, Transfer Types, Reference. External Campus Recruitment, Advertisement, Job Boards, Website/Portals, Internship, Placement. Consultancies Traditional (In-house, Internal Recruitment, On Campus, Employment and Traditional Agency). Modern (Recruitment Books, Niche Recruitments, Internet Recruitment, Service Recruitment, Website and Job, Search Engine, Social Recruiting and Candidate Paid Recruiters). 5. Technique of Recruitment Traditional vs Modern Recruitment 6. Evaluation of Recruitment Outsourcing Programme. Unit 2 1. Selection Concept of Selection, Criteria for Selection, Process, Advertisement and Application (Blank Format). 2. Screening Pre and Post Criteria for Selection, Steps of Selection 3. Interviewing Types and Guidelines for Interviewer and Interviewee, Types of Selection Tests, Effective Interviewing Techniques. 4. Selection Hurdles and Ways to Overcome Them. Unit 3 1. Induction Concept, Types Formal/Informal, Advantages of Induction, How to Make Induction Effective. 2. Orientation and Onboarding Programme, Types and Process

7 3. Socialisation Types Anticipatory, Encounter, Setting in, Socialisation Tactics. 4. Current Trends in Recruitment and Selection Strategies with respect to Service, Finance, IT, Law and Media Industry. Unit 4 1. Preparing Bio-data and C.V. 2. Social and Soft Skills Group Discussion and Personal Interview, Video and Tele Conferencing Skills. 3. Presentation and Negotiation Skills, Aesthetic Skills. 4. Etiquettes Different Types and Quitting Techniques. 5. Exit Interview Meaning, importance. 12.

8 Paper Pattern Note: 1. All questions are compulsory subject to internal choice. 2. Figures to right indicate full marks. Q.1. Attempt any 2 Questions (a) (b) (c) Q.2. Attempt any 2 Questions (a) (b) (c) Q.3. Attempt any 2 Questions (a) (b) (c) Maximum Marks: 75 Time: 2.5 Hours (15 Marks) (15 Marks) (15 Marks) Q.4. Attempt any 2 Questions (15 Marks) (a) (b) (c) Q,5. Case Study (15 Marks)

9 Contents Unit I 1. Concepts of Recruitment Meaning, Importance and Relevance of Recruitment Job Analysis (Concepts, Specifications, Description, Process, Methods and Uses) Job Design (Definition, Modern Techniques, Factors Affecting Job Design, Contemporary Issues) Sources or Types of Recruitment (Direct and Indirect, Internal and External) Techniques of Recruitment (Traditional vs Modern) Evaluation of Recruitment (Outsourcing Programme) Unit II 7. Selection Interview Unit III Unit IV 9. Induction Concept, Types Formal/Informal Orientation and Onboarding Programme, Types and Process Current Trends in Recruitment and Selection Industry Preparing Bio-data and C.V Social Skills, Group Discussion and Personal Interview Skills Presentation and Negotiation Skills, Aesthetic Skills Etiquette and Quitting Techniques Exit Interview References

10 UNIT I Chapter 1 Concepts of Recruitment Meaning, Importance and Relevance Introduction Successful human resource planning should identify our human resource needs. Once we know these needs, we will want to do something about meeting them. The next step in the acquisition function, therefore, is recruitment. This activity makes it possible for us to acquire the number and types of people necessary to ensure the continued operation of the organisation. Hallett says, It is with people that quality performance really begins and ends. Robert Heller also says, If people of poor calibre are hired, nothing much else can be accomplished and Gresham s law will work: the bad people will drive out the good or cause them to deteriorate. Recruiting is the discovering of potential candidates for actual or anticipated organisational vacancies. Or, from another perspective, it is a linking activity bringing together those with jobs to fill and those seeking jobs. Recruitment: Meaning and Definition Recruitment forms a step in the process which continues with selection and ceases with the placement of the candidate. It is the next step in the procurement function, the first being the manpower planning. Recruiting makes it possible to acquire the number and types of people necessary to ensure the continued operation of the organisation. Recruiting is the discovering of potential applicants for actual or anticipated organisational vacancies. According to Edwin B. Flippo, Recruitment is the process of searching for prospective employees and stimulating them to apply for jobs in the organisation. According to Lord, Recruitment is a form of competition. Just as corporations compete to develop, manufacture, and market the best product or service, so they must also compete to identify, attract and hire the most qualified people. Recruitment is a business, and it is a big business.

11 In the words of Dale Yoder, Recruiting is a process to discover the sources of manpower to meet the requirements of the staffing schedule and to employ effective measures for attracting that manpower in adequate numbers to facilitate effective selection of an efficient working force. According to Werther and Davis, Recruitment is the process of finding and attracting capable applicants for employment. The process begins when new recruits are sought and ends when their applications are submitted. The result is a pool of applicants form which new employees are selected. Dales S. Beach writes, Recruitment is the development and maintenance of adequate manpower resources. It involves the creation of a pool of available labour upon whom the organisation can depend when it needs additional employees. Thus, recruitment process is concerned with the identification of possible sources of human resource supply and tapping those sources. In the total process of acquiring and placing human resources in the organisation, recruitment falls in between different sub-processes as shown in picture. Human Resource Planning Job Analysis Recruitment Selection Placement Fig. 1.1: Recruitment to Human Resource Acquisition Process Process of Recruitment Recruitment process passes through the following stages: Recruitment process begins when the personnel department receives requisitions for recruitment from any department of the company. The personnel requisitions contain details about the position to be filled, number of persons to be recruited, the duties to be performed, qualifications expected from the candidates, terms and conditions of employment and the time by which the persons should be available for appointment etc. Locating and developing the sources of required number and type of employees. Identifying the prospective employees with required characteristics. Developing the techniques to attract the desired candidates. The goodwill of an organisation in the market may be one technique. The publicity about the company being a good employer may also help in stimulating candidates to apply. There may be others of attractive salaries, proper facilities for development etc. Evaluating the effectiveness of recruitment process.

12 According to Scott, Clothier and Spriegel the need for recruitment arises out of the following situations: Vacancies created due to expansion, diversification, and growth of business. An increase in the competitive advantage of certain concerns, enabling them to get more of the available business than formerly. An increase in business arising from an upswing during the recovery period of a business cycle. Vacancies created due to transfer, promotion, retirement, termination, permanent disability or death. The normal population growth, which requires increased goods and services to meet the needs of the people. A rising standard of living, which requires more of the same goods and services as well as the creation of new wants to be satisfied. According to Famularo, personnel recruitment process involves five elements, viz., a recruitment policy, a recruitment organisation, a forecast of manpower, the development of sources of recruitment, and different techniques used for utilising these sources, and a method of assessing the recruitment programme. The explanation of these is described below: Human Resource Planning Job Analysis Job Description Job Specification Recruitment Selection Placement Identifying Sources of Potential Employees Search for Prospective Employees Evaluating Recruiting Effectiveness Personnel Research Upgrading in Same Position Internal Sources Transferring to New Job Job Posting Prompting to Higher Responsibilities Employee Referrals External Sources Advertising Evaluating for Selection Scouting Fig. 1.2: Place of Recruitment in Selection System

13 1. Recruitment Policy: It specifies the objectives of recruitment and provides a framework for the implementation of the recruitment programme. It also involves the employer s commitment to some principles as to find and employ the best qualified persons for each job, to retain the most promising of those hired, etc. It should be based on the goals, needs and environment of the organisation. 2. Recruitment Organisation: The recruitment may be centralised like public sector banks or decentralised. Both practices have their own merits. The choice between the two will depend on the managerial philosophy and the particular needs of the organisation. 3. Sources of Recruitment: Various sources of recruitment may be classified as internal and external. These have their own merits and demerits. 4. Methods of Recruitment: Recruitment techniques are the means to make contact with potential candidates, to provide them necessary information and to encourage them to apply for jobs. 5. Evaluation of Recruitment Programme: The recruitment process must be evaluated periodically. The criteria for evaluation may consist of cost per applicant, the hiring ratio, performance appraisal, tenure of stay, etc. After evaluation, necessary improvements should be made in the recruitment programme. Recruitment Policy As Yoder et al observe recruitment policy spells out the objectives of the recruitment and provides a framework for implementations of the recruitment programme in the form of procedures. It may involve a commitment to broad principles such as filling vacancies with the best qualified individuals. The recruitment policy may embrace several issues such as the extent of promotion from within, attitudes of enterprise in recruiting old, handicapped, and minor individuals, minority group members, part-time employees and relatives of present employees. In addition, the recruitment policy may also involve the organisation system to be developed for implementing the recruitment programme and procedures to be employed. Explicitly, an organisational system is a function of the size of an enterprise. In smaller enterprises, there may be merely informal recruiting procedures and the line official may be responsible to handle this function along with their usual responsibilities. On the other hand, in larger organisations, there is usually a staff unit attached with personnel or an industrial relations department designated as employment or recruitment office. This specialisation of recruitment enables staff personnel to become highly skilled in recruitment techniques and their evaluation. However, recruitment remains the line responsibility as far as the personnel requisition forms are originated by the line personnel, who have also the final word in the acceptance or rejection of a particular applicant. Despite this, the staff personnel have adequate freedom in respect of sources of manpower to be tapped and the procedure to be followed for this purpose. Recruitment policy covers the following areas: To prescribe the degree of emphasis. Inside the organisation or outside the organisation. To provide the weightage that would be given to certain categories of people such as local. Population, physically-handicapped personnel, personnel from scheduled castes/tribes and other backward classes. To prescribe whether the recruitment would be centralised or decentralised at unit levels.

14 To specify the degree of flexibility with regard to age, qualifications, compensation structure and other service conditions. To prescribe the personnel who would be involved in recruitment process and the role of human resource department in this regard. To specify the budget for meeting the expenditures incurred in completing the recruitment process. According to Yoder, the recruitment policy is concerned with quantity and qualifications of manpower. It establishes broad guidelines for the staffing process. Generally, the following factors are involved in a recruitment policy: To provide each employee with an open road and encouragement in the continuing development of his talents and skills; To provide individual employees with the maximum of employment security, avoiding, frequent lay-off or lost time; To avoid cliques which may develop when several members of the same household or community are employed in the organisation; To carefully observe the letter and spirit of the relevant public policy on hiring and, on the whole, employment relationship; To assure each employee of the organisation interest in his personal goals and employment objective; To assure employees of fairness in all employment relationships, including promotions and transfers; To provide employment in jobs which are engineered to meet the qualifications of handicapped workers and minority sections; and To encourage one or more strong, effective, responsible trade unions among the employees. Pre-requisites of a Good Recruitment Policy: The recruitment policy of an organisation must satisfy the following conditions: It should be in conformity with its general personnel policies; It should be flexible enough to meet the changing needs of an organisation; It should be so designed as to ensure employment opportunities for its employees on a longterm basis so that the goals of the organisation should be achievable; and it should develop the potentialities of employees; It should match the qualities of employees with the requirements of the work for which they are employed; and It should highlight the necessity of establishing job analysis. Importance of Recruitment The main purpose of recruitment is to provide a pool of potentially qualified job candidates. The specific purpose are to: 1. Determine the present and future requirements of the firm in conjunction with personnelplanning and job-analysis activities.

15 2. Increase the pool of job candidates at minimum cost. 3. Help increase the success rate of the selection process by reducing the number of visibly under qualified or over qualified job applicants. 4. Help reduce the probability that job applicants, once recruited and selected, will leave the organisation only after a short period of time. 5. Meet the organisation s legal and social obligations regarding the composition of its workforce. 6. Begin identify and preparing potential job applicants who will be appropriate candidates. 7. Increase organisational and individual effectiveness in the short term and long term. 8. Evaluate the effectiveness of various recruiting techniques and sources for all types of job applicants. Questions: 1. Define recruitment. Explain the process of recruitment. 2. Explain the need for recruitment. 3. What are the pre-requisites of a good recruitment policy? 4. Explain the importance of recruitment. Global Solution For Swift Expansion Into U.S. Market From Europe. WilsonHCG guided its client with consultation and recruited and onboarded its resources for a complete build-out of its U.S. market presence. Challenge WilsonHCG s client is a European-based company that was not a recognised brand in the United States. It required a strong global recruitment partner with market intelligence to establish a sales staff and conduct all onboarding functions within a three-month timeframe. In addition to guidance on recruitment best practices, the client needed a trusted human resources advisor to ensure compliance with U.S. labour laws. Solutions Because the client was just entering into the U.S. market, WilsonHCG provided on-site resources for the strategic build-out of each regional sales team. The resources were the only representation of the company in the country. Delivering a complete end-to-end international recruitment solution, WilsonHCG increased its client s brand awareness by generating conversations about the company via social media initiatives and on-site recruiting methods. The development and execution of a multichannel and creative sourcing plan that included targeting LinkedIn groups and hosting interview days contributed to the building of talent communities to fill the immediate-need positions. WilsonHCG consulted its client on U.S. labour laws, including OFCCP, compensation and right-to-work states. It also advised the client on hiring best practices in the United States such as appropriate interview questions, background checks and drug screening. Results WilsonHCG increased its client s brand recognition in the industry and leveraged the talent communities it created to fill the immediate-need positions in 19.3 days, which was well below the 30-day SLA goal. The client was impressed with the quality of candidates submitted, which resulted in a submit-to-

16 hire ratio of 2-to-1 and in hiring 125 per cent of the number of sales associates it originally planned. As the client s U.S. business grows, WilsonHCG continues to partner with the company to provide global recruiting services for additional roles. The successful entrance into the U.S. market was largely attributed to WilsonHCG s consultation regarding the country s hiring practices and labour laws. Recruiting and selecting staff at Thomas Cook: Case Study According to the IRS (2007), employees are seeking to control or reduce their recruitment expenditure. In the case of travel agent Thomas Cook, the business is very cost conscious, with quite low margins, but staff turnover especially in their call centre is rather high. The measures taken by the company to reduce their costs have focused on the following: i. Making the recruitment process wholly online until the interview stage. This means that the company will accept application forms and CVs online and use as a preferred way of communicating with candidates. It also conducts an online pre-screening process for selecting sales consultants in order to sift out unsuitable applicants at as early a stage as possible. ii. Controlling employment agency costs through the introduction of preferred supplier lists where hard-tofill or specialist post are concerned. iii. Working with two local government funded agencies that provide candidates free of charge. This is particularly appealing when the company has to recruit around 100 people a year for its call centre. One of the agencies offers potential candidates on a free-trial basis, where they can work for fifteen days with no obligations on either side. This is useful way for the organisation to judge whether an individual might prove to be a suitable employee, even though he or she may not have all the necessary experience on paper. Questions: 1. Identify other industries experiencing high staff turnover and low margins that might operate on a similarly cost-conscious basis as Thomas Cook. Investigate the recruitment and selection processes used by companies within these industries. To what extent do they replicate these methods, and how would you judge their effectiveness in terms of securing and retaining effective employees? 2. How effective are the approaches taken by Thomas Cook in promoting their brand and in securing employee commitment? What might they do to improve in both areas? 3. Compare the Thomas Cook graduate recruitment and selection process with any other organisation. What are the similarities and difference in approach? To what extent do both employees recruit for fit or skill?

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