A

PROJECT REPORT ON

RECRUITMENT AND SELECTION

SUBMITTED TO

SCDL, PUNE

SUBMITTED BY

NIKITA TANWAR

PGDHRM

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 Table of contents

CHAPTER NO TITLES PAGE NO

1 Introduction 3
2 What is recruitment 4
3 Process of recruitment 5
4 Scope of recruitment 8
5 Source of recruitment 9
6 Internal sources of 10
recruitment
7 Types of internal sources 11
8 Merits and Demerits of internal 12
sources
9 External sources of recruitment 16
10 Type of external sources 17
11 Merits and demerits of external 19
sources
12 Difference between external and 23
internal sources of recruitment

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 INTRODUCTION

After having determined the number and kinds of personnel required, the human resource
manager proceeds with the identification of sources and recruitment and funding suitable
candidates for employment. Both internal and external sources of work force are used
depending upon the type of personnel needed.

The selection procedure starts with the receipt of application for various jobs from the
interested candidates. Totally unsuitable candidates are rejected at the screening stage. The
human resource department administers various kinds of tests to the candidates to determine
if they would be able to do their jobs efficiently. Those passing this stage are called for
employment interview. Candidates found suitable for employment are required to go through
medical examination and reference checking. The employment process is complete when
appointment letters are issued to the applicants and are asked to join the organisation. After
the new employee joins, he/she is inducted into the organisation and placed on the job for
which he/she is most suitable. Recruitment and Selection is an important operation in HRM,
designed to maximize employee strength in order to meet the employer’s strategic goals and
objectives. In short, Recruitment and Selection is the process of sourcing, screening,
shortlisting and selecting the right candidates for the filling the required vacant positions.

Selection such as the recruitment process, the factors affecting recruitment, recruitment
planning, methods of recruitment, recruitment interviews, selection process and making an
offer. Both these processes are very important and must be carried out systematically to
achieve the goals set by any organisation.

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 WHAT IS RECRUITMENT

Recruitment is concerned with attracting the candidates for consideration of selection to

various jobs.it enables the management to select suitable employee for different jobs.
Recruitment is done before selection or employment of employees. Recruitment is a
process of searching the prospective employees and attracting them to apply for vacancies.
Recruitment refers to the overall process of attracting, shortlisting, selecting and
appointing suitable candidates for jobs (either permanent or temporary) within an
organization , Recruitment can also refer to processes involved in choosing individuals for
unpaid roles. Managers, human resource generalists and recruitment specialists may be
tasked with carrying out recruitment, but in some cases public-sector employment
agencies, commercial recruitment agencies, or specialist search consultancies are used
to undertake parts of the process. Internet-based technologies which support all aspects
of recruitment have become widespread. The process of identification of different sources
of personnel is known as recruitment. It is a positive process as it attracts suitable
candidates who apply for available job.

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PROCESS OF RECRUITMENT

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The five steps involved in recruitment process are as follows: (i) Recruitment Planning (ii)
Strategy Development (iii) Searching (iv) Screening (v) Evaluation and Control.

1. Recruitment Planning:The first step involved in the recruitment process is

planning. Here, planning involves to draft a comprehensive job specification for the
vacant position, outlining its major and minor responsibilities; the skills, experience
and qualifications needed; grade and level of pay; starting date; whether temporary
or permanent; and mention of special conditions, if any, attached to the job to be
filled”
2. 2. Strategy Development:Once it is known how many with what qualifications of
candidates are required, the next step involved in this regard is to devise a suitable
strategy for recruiting the candidates in the organisation. The strategic
considerations to be considered may include issues like whether to prepare the
required candidates themselves or hire it from outside, what type of recruitment
method to be used, what geographical area be considered for searching the
candidates, which source of recruitment to be practiced, and what sequence of
activities to be followed in recruiting candidates in the organisation.

3. Searching:This involves attracting job seekers to the organisation. There are

broadly two sources internal and external

4. Screening:
Though some view screening as the starting point of selection, we have considered it as an

integral part of recruitment. The reason being the selection process starts only after the

applications have been screened and shortlisted. Let it be exemplified with an example.In

the Universities, applications are invited for filling the post of Professors. Applications re-

ceived in response to invitation, i.e., advertisement are screened and shortlisted on the

basis of eligibility and suitability. Then, only the screened applicants are invited for

seminar presentation and personal interview. The selection process starts from here, i.e.,

seminar presentation or interview.Job specification is invaluable in screening. Applications

are screened against the qualification, knowledge, skills, abilities, interest and experience
mentioned in the

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 job specification. Those who do not qualify are straightway eliminated from the
selection process.

The techniques used for screening candidates vary depending on the source of supply

and method used for recruiting. Preliminary applications, de-selection tests and
screening interviews are common techniques used for screening the candidates.

5. Evaluation and Control:

Given the considerable cost involved in the recruitment process, its evaluation and
control is, therefore, imperative.

The costs generally incurred in a recruitment process include:

(i) Salary of recruiters

(ii) Cost of time spent for preparing job analysis, advertisement

(iii) Administrative expenses

(iv) Cost of outsourcing or overtime while vacancies remains unfilled.

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 SCOPE OF RECRUITMENT

Scope of recruitment process is very wide as the candidates for various jobs are widely
scattered. Recruitment is one of the most fundamental activities of the HR team. If the
recruitment process is efficient, then

 The organization gets happier and more productive employees

 Attrition rate reduces.
 It builds a good workplace environment with good employee relationships.
 It results in overall growth of the organization.
Here is a list that shows the purpose and importance of Recruitment in an organization −

 It determines the current and future job requirement.

 It increases the pool of job at the minimal cost.
 It helps in increasing the success rate of selecting the right candidates.
 It helps in reducing the probability of short term employments.
 It meets the organization’s social and legal obligations with regards to the work
force.
 It helps in identifying the job applicants and selecting the appropriate resources.
 It helps in increasing organizational effectives for a short and long term.
 It helps in evaluating the effectiveness of the various recruitment techniques.
 It attracts and encourages the applicants to apply for the vacancies in an
organization.
 It determines the present futures requirements of the organization and plan
according.
 It links the potential employees with the employers.

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 SOURCES OF RECRUITMENT

The eligible and suitable candidates required for a particular job are available through

various sources. These sources can be divided into two categories, Internal Sources and
External Sources

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 INTERNAL SOURCES OF RECRUITMENT

The best employee can be often found from within the organisation itself. Many

organisations in India, therefore, do give preference to people from within the company.

When a vacancy arises in the organisation, it may be given to an employee who is already

on the pay-roll. Internal sources include promotion, transfer and in certain cases demotion.

When a higher post is given to a deserving employee, it motivates all other employees of

the organisation to work hard. The employees can be informed of such a vacancy by

internal advertisement. Some organisations even maintain database of voluntary

applications, which can be referred to in future. Besides, present employees are good

sources of suggestions for job applications. However it is necessary to inform immediately

such applicants the decision as to whether they were successful or not being selected for

the new opening, it may be necessary to inform them tactfully why they were not selected

they can further be advised on how they can develop themselves further for future
openings.

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 TYPE OF INTERNAL FACTORS OF RECRUITMENT :

PROMOTION: The promotion policy is followed as a motivational technique for the

employees who work hard and show good performance. Promotion results in

enhancements in pay, position, responsibility and authority. The important requirement for

implementation of the promotion policy is that the terms, conditions, rules and regulations

should be well-defined. A promotion is the transfer of an employee to a job that carries

higher pay and status. A promotion involves reassignment of an employee to a position

having increased responsibilities, greater skills, higher status and higher pay. According to

Pigors and Myres “Promotion is the advancement of an employee to a better job in

terms of higher responsibilities, greater skills, higher status and higher pay.

TRANSFER:
Employees may be transferred from one department to another wherever the post becomes

vacant. Transfer is defined as a lateral shift causing movement of an employee from one

position to another ordinarily without involving any marked change in duties,

responsibilities, skills needed for compensation”.

Transfer is viewed as a change in the assignment in which the employee moves from one

job to another in the same level of hierarchy requiring similar skills, involving identical

level of responsibility, same status and same level of pay. Thus, transfer is a horizontal job
assignment.

EMPLOYEE REFERRALS: This is yet another internal source of recruitment. The

existing employees refer their family members, friends and relatives to the company as
potential candidates for the vacancies to be filled up in the organisation.

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 MERITS OF INTERNAL SOURCES

1. Familiarity with own employees:

The organisation has more knowledge and familiarity with the strengths and weaknesses of
its own employees than of strange and unknown outsiders.

2. Better use of the talent:

The policy of internal recruitment also provides an opportunity to the organisation to make
a better use of the talents internally available and to develop them further and further.

3. Economical Recruitment:
In case of internal recruitment, the organisation does not need to spend much money, time

and effort to locate and attract the potential candidates. Thus, internal recruitment proves to
be economical, or say, inexpensive.

4. Improves Morale:
This method makes employees sure that they would be preferred over the outsiders as and
when vacancies will be filled up in their organisation.

5. A Motivator:
The promotion through internal recruitment serves as a source of motivation for employees

to improve their career and income. The employees feel that organisation is a place where

they can build up their life-long career. Besides, internal recruitment also serves as a means
of attracting and retaining competent employees in the organisation.

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 6.Reduce time to hire:

When recruiting externally, hiring teams find candidates (either through sourcing or job
posting), evaluate them and, if all goes well, persuade them to join their company. All of
which takes time. Conversely, internal candidates are already part of your workplace, so
the time you need to find and engage those candidates is much less. It’s also easier to
assess internal candidates because:

 They’re prescreened for culture fit.

 Their track record is easily accessible
 They may not always need full interviews with managers (for example, if they are
moving within their department, the department head already knows the candidate.)

All these reduce the time spent on each hiring stage and your overall time to hire.

Whether you’re recruiting internally or externally, Workable automates hiring tasks, keeps
resumes organized, bolsters referrals and helps you post jobs quickly to free and paid job
boards. Request a demo to learn more.

7.Shorten onboarding times

Everyone needs some time to adjust to a new role, but internal hires are quicker to onboard
than external hires. This is because they:

 Know how your company operates and most of your policies and practices.
 May be familiar with people in their new team, especially in smaller businesses.
 May already know the content and context of their new roles if they move within the
same team or to a similar one (for example, a sales associate becoming a category
manager).

8.Cost less
Research has shown that external hiring may cost 1.7 times more than internal hiring. This
is because when hiring from within, you usually don’t need to:

 Post ads on job boards. It’s easy to inform internal candidates about job openings
through e-mail or your company’s internal newsletter. You could also place printed job
ads on a bulletin board, if all your employees work in one place.
 Subscribe to resume databases. Instead of sourcing passive candidates on resume
databases, ask managers about their team members or look into your HRIS to find
coworkers who might fit in your open roles.
 Pay for backgrounds checks. You may already have conducted background checks on
internal candidates when you first hired them. And, you know if they’re in good
standing based on their manager’s input or employee records.

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 DEMERITS OF INTERNAL SOURCES

Despite all the merits of internal recruitment, there are some things to keep in mind. Hiring
from within can:

1.Create resentment among employees and managers

Employees who were considered for a role could feel resentful if a colleague or external
candidate is eventually hired. Also, managers are often uncomfortable losing good team
members and may even go so far as to hinder the transfer or promotion process.

2.Leave a gap in your existing workforce

When you promote someone to fill an open position, their old position becomes vacant.
This means that a series of moves and promotions may ensue that could disrupt your
business’ operations. Ultimately you may need to turn to external recruitment in addition to
your internal hire.

3.Limit your pool of applicants

While your company may have a lot of qualified candidates for specific positions, this isn’t
necessarily true for every open role. For example, if a role is fairly new to your business,
your employees will have other specialties and may not be able to fill this skills gap.
Relying solely on internal hiring means you could miss the chance to hire people with new
skills and ideas.

4.Result in inflexible culture

Doing most of your hiring from inside your business may result in a stagnant culture. This
is because employees can get too comfortable with the ‘way things are done’ and struggle
to spot inefficiencies and experiment with new ways of working. An inflexible culture will
be more problematic in leadership positions where employees may need to advocate for
change and improvements instead of relying on established, inefficient practices. External
hires are essential in shaking up culture and offering a fresh perspective on existing
problems.

5.Limited Choice:
Internal recruitment limits its choice to the talent available within the organisation. Thus, it

denies the tapping of talent available in the vast labour market outside the organisation.

Moreover, internal recruitment serves as a means for “inbreeding”, which is never j healthy
for the future of the organisation.

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6. Discourages Competition:
In this system, the internal candidates are protected from competition by not giving
opportunity to otherwise competent candidates from outside the organisation. This, in turn

develops a tendency among the employees to take promotion without showing extra
performance.

3. Stagnation of Skills:

With the feeling that internal candidates will surely get promoted, their skill in the long run
may become stagnant or obsolete. If so, the productivity and efficiency of the organisation,
in turn, decreases.

Creates Conflicts:
Conflicts and controversies surface among the internal candidates, whether or not they
deserve promotion.

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EXTERNAL SOURCES OF RECRUITMENT

External sources of finance are equity capital, preferred stock, debentures, term loans,
venture capital, leasing, hire purchase, trade credit, bank overdraft, factoring etc. External
sources of finance are those sources of finance which come from outside the business.
The External Sources of Recruitment mean hiring people from outside the organization.
In other words, seeking applicants from those who are external to the organization. There
are several methods for external recruiting. The firm must carefully analyse the vacant
positions and then use the method which best fulfils the requirement.

Characteristics of External Sources

 Long and time-consuming process.

 It is an expensive process.

 When external people are given opportunities over them, then existing workers lose
morale

 Hiring new employees can lead to the introduction of new blood and thus the
introduction of a new set of skills and ideas.

External sources far outnumber the internal methods. Specifically, sources external to a
firm are professional or trade associations, advertisements, employment exchanges,
college/university/institute placement services, walk-ins and write-ins, consultants,
contractors, displaced persons, radio and television, acquisitions and mergers.

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 TYPES OF EXTERNAL SOURCES OF RECRUITMENT

Some of the major types of external sources are as follows: 1. Media Advertisement 2.

Employment Exchanges 3. Walk -Ins 4. Campus Placement 5. Labour Contractors 6.

Casual Callers 7. Telecasting 8. Direct Employment or Recruitment Notice at Factory

Gate.

1. Media Advertisement: The advertisement is the most common and preferred source of
external recruiting. The ads in newspapers, professional journals, give a comprehensive
detail about the organization, type, and nature of job position, skills required, qualification
and experience expected, etc. This helps an individual to self-evaluate himself against the
job requirements and apply for the jobs which best suits him.
2. Employment Exchange: The employment exchange is the office run by the government
wherein the details about the job seekers such as name, qualification, experience, etc. is
stored and is given to the employers who are searching for men for their organizations.

For certain job vacancies, it is mandatory for every organization to provide details about it
to the employment exchange. It is the most common source of external recruitment that
offers jobs to unskilled, semi-skilled and skilled workers.

3. Direct Recruitment: The direct recruitment also called as factory gate recruitment is an
important source of hiring, especially the unskilled workers or badli workers who are paid
on a daily-wage basis. Here, the company puts up a notice on a notice board or on the
factory gate regarding the jobs available, such that the applicant sees it and apply for the
job directly.
4. Casual Callers: The casual callers, also called as unsolicited applications are the job
seekers who come to the well-renowned organizations casually and either mail or drop in
their job applications seeking the job opportunity.

This could be considered as an important source of external recruitment as the personnel

department maintains the folder of unsolicited applications and call those who fulfill the
job requirements, whenever the vacancy arises.

5. Educational Institutions or Campus Placement: Creating a close liaison with the

educational institutes for the recruitment of students with technical and professional
qualifications has become a common practice of external recruitment. Here, the companies,
visit the technical, management and professional colleges to recruit the students directly
for the job positions. The recruitment from educational institutions is also termed as
campus recruitment.

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6. Labor Contractors: This is the most common form of external recruitment wherein the
labor contractors who are either employed with the firm or have an agreement to supply
workers to the firm for the completion of a specific type of a task. This method is again
used for hiring the unskilled and semi-skilled workers. The contractor keeps in touch with
the workers and sends them to the places where their need arises. In doing so, the
contractors get the commission for each worker supplied.

7.Walk-Ins: This is again a direct form of recruitment wherein the prospective candidates
are invited through an advertisement to come and apply for the job vacancy. Here, the
specified date, venue, and time are mentioned, and the candidates are requested to come
and give interviews directly without submitting their applications in advance.

8.E-recruiting: The e-recruiting means searching and screening the prospective candidates
electronically. There are several online job portals that enable the job seekers to upload
their resume online which are then forwarded to the potential hirers. Such as naukri.com,
monster.com, shine.com, etc. are some of the well renowned online job portals.

9.Management Consultants: There are several private management firms that act as a
middleman between the recruiter and the recruit. These firms help the organization to hire
professional, technical and managerial personnel, and they specialize in recruiting middle
level and top level executives.

These firms maintain data of all the job seekers, such as education, qualification,
experience, etc. and give their details to the companies who are looking for men.
Nowadays, the engineers, accountants, lawyers help their counterparts to get suitable jobs
in industrial organizations.

These are some of the commonly used methods of external recruiting that companies select
depending on the nature of the job position and the number and type of candidates to be
reached out.

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MERITS OF EXTERNAL SOURCES

Following are few mentioned are a few advantages of the recruitment process,

1. Increased chances: In this increased chance, the company receives a variety and
number of candidates who owns knowledge and ability to handle that job. If the company
enters a selection procedure with external recruitment then there are increased chances of
finding a suitable candidate for the job. This increased chance provides better availability
of skilled and qualified employees for the company by using the external recruitment
method.

2. Fresher skill and input:When a company goes with an external recruitment method,
there is a quite better possibility of finding and identifying a fresher candidate who is
capable of delivering new skills and inputs for the betterment of the company. Therefore,
hiring a candidate with external recruitment makes things clear and better for the company
who is in desperate need of fresher skills and inputs for the overall growth of the company.

3. Qualified candidates: Nowadays, when a company posts an advertisement in social

media or newspaper. One common thing they look for is a well experienced and qualified
candidate. With external recruitment advertising, the company can find a variety of
qualified candidates for the post offered. And eventually, this process helps to identify the
best candidates in a lot of skilled candidates.

4. Better competition:In the external recruitment process, there will be a chance of facing
better competition in terms of hiring new talent.Most of the time some of the company
looks for the candidates who are capable of handling a certain skilled job and some of
them search those candidates who are better with their risk-taking ability.

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5. Generation of creative ideas: Most probably when the company is in need of those

candidates who can provide creative ideas for the growth of the company, then the

company needs to go with an external recruitment process for the overall development of

the company. Therefore, once the company understands the working nature of external

recruitment then there is a possibility that the company might select a candidate with new

and better creative ideas.

6. Lesser internal politics: In the external recruitment process, there is a very less
possibility that the candidate might face internal politics of existing candidates. And these
lesser internal politics avoids a number of internal issues and requests of the existing
employees of the company . Once the candidate is selected, then the company can be
aware of all the political and internal disputes of the company as well. Therefore, it is a
process with a high potential candidate who is capable of handling any type of situations in
the company.

7. Better growth:By using an external recruitment process, the company can expect
growth not just for the candidate, but actually, the company can expect it for itself
also.When a company selects a candidate with high potential, then there is a higher
possibility of the overall growth of the company. The employees within the organization
also broaden their capacity and may try to match with the new talent.

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DEMERITS OF EXTERNAL SOURCES

1. A limited understanding of the company:When a candidate is selected from an

external recruitment process, there is a possibility that the candidate might have less
chance of understanding the environment of the company. And this lesser
understanding can make a big difference in the future activities of the company.Therefore,
there is some sort of issues with an external process which needs to be rectified for a better
understanding of the company environment.

2. Higher risk:There is a possibility that the candidate selected for the post is not worthy
of the position offered and he/she can take advantage of their position in the
company.This type of risk is very much common in an external recruitment process as
most of the candidates applied for the job are total strangers to the company. And that is
why it is considered one of the higher risk processes of recruitment.

3. Time-consuming:The main disadvantages of external recruitment are that it is time-

consuming as most of the companies post an advertisement for their company recruitment
drive.Then there is a quite possible chance of receiving a higher number of applicants for
the post and the recruiter need to be very careful with their decision of selecting the best
candidate for each round selection process.These different rounds of selection take a bit
longer than the internal recruitment process as it involves a number of processes.

4. High costs:As most part of the external recruitment process mainly deals with complete
new candidates then the company need to come up with a pay scale for that candidate
which should value his/her skill and ability.This can turn things a bit costly for the
company as they are in need of new ideas and to get such new and creative ideas from the
potential candidate. The company needs to provide him/her the best possible deal to
refuse.With all these aspects, the company needs to provide intense training for the
candidates. Screening a large number of candidates consumes more money.

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5. Internal disputes with existing employees:

When a company considers a fresh candidate for the higher post than the existing

candidates, then there is a higher possibility that the company existing employees might

show some sort of internal dispute among the officials of the company.

This kind of internal dispute can lead things to a completely different level. And

eventually, the company can fall on their back with such differences of opinions.

6. Issues of Maladjustment:

There are a number of possible ways where the new employee recruited may not adjust to

the new environment. They also would not adjust with the new employees in the

organization.

When such scenarios take place, they have to leave the organization or the management

should take initiatives to replace them. By this way, the management may lose good

employees and need to hunt for another.

7. Agencies are not trusted:

By recruiting candidates through external recruitment, recruitment agencies play the role

where they do not have adequate knowledge about the culture of the organization and their

intrinsic qualities. They also do not care much about the key requirements of the post

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DIFFERENCE BETWEEN INTERNAL AND EXTERNAL SOURCES OF
RECRUITMENT
DIFFERENCE BETWEEN INTERNAL AND EXTERNAL SOURCES OF
RECRUITMENT