Project on Internal and External Recuritment and Retairnment

8/7/2019 Project on Internal and External Recuritment and Retairnment

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A STUDY ON THE PROCESS OF INTERNAL AND EXTERNAL

RECRUITMENT AND RETAINMENT OF THE EMPLOYEES IN NOKIA

SIEMENS NETWORK

SUBMITED IN PRACTICAL FULFILLMENT OF THE REQUIREMENT OF THE

AWARD OF THE DEGREE OF

MASTER OF BUISNESS ADMINISTRATION

ABSTRACT

The study is conducted in Nokia Siemens network Oragadam. The

topic of the study is A study on recruitment and retainment in Nokia Siemens

network.

The study is basically a descriptive study with a sample size of 50. The

respondents are the employees in the organization.

Recruitment and retainment process is the main duty of an HR the

organisation must select a right person for right job the person should be selected

correctly and the next main duty of an HR is to make the employee to retain in

the organisation. To understand the needs of the employees and give what they

require so that the employee may remain in the organisation

www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/


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In the recruitment and retainment process observed the present

system is satisfactory communication between the employees and the

organisation is good enough so that the employees get a good atmosphere in

the organisation and they may not leave the organisation.

CONTENTS Page No.

CHAPTER 1

INTRODUCTION

ABOUT THE TOPIC

BACKGROUND STUDY

NEED FOR THE STUDY

SCOPE OF THE STUDY

LIMITATIONS OF THE STUDY

RESEARCH OBJECTIVES

OBJECTIVES

MAJOR OBJECTIVES

CHAPTER 2

COMPANY PROFILE

CHAPTER 3

REVIEW OF THE LITERATURE

CHAPTER 4

RESEARCH METHODOLOGY

TYPE OF RESEARCH

RESEARCH APPROACH

SOURCES OF DATA



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SAMPLING PLAN

POPULATION AND SAMPLING UNIT

SAMPLE SIZE

SAMPLING PROCEDURE

MODE OF DATA COLLECTION

DATA COLLECTION INSTRUMENT

TOOLS USED FOR ANALYSIS

CHAPTER 5

DATA ANALYSIS AND INTERPRETATION

CHAPTER 6

FINDINGS

RECOMMENDATIONS

CHAPTER 7

CONCLUSION

BIBLIOGRAPHY

ANNEXURES



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CHAPTER 1



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1.INTRODUCTION

1.1 INTRODUCTION TO HUMAN RESOURCE

Human resources is a term with which many organizations describe the

combination of traditionally administrative personnel functions with performance,

Employee Relations and resource planning. The field draws upon concepts developed

in Industrial/Organizational Psychology. Human resources have at least two related

interpretations depending on context.

The original usage derives from political economy and economics, where it wastraditionally called labour, one of four factors of production. The more common usage

within corporations and businesses refers to the individuals within the firm, and to the

portion of the firm's organization that deals with hiring, firing, training, and other

personnel issues. This article addresses both definitions. The objective of Human

Resources is to maximize the return on investment from the organization's human

capital and minimize financial risk. It is the responsibility of human resource managers

to conduct these activities in an effective, legal, fair, and consistent manner.

Human resource management serves these key functions:

1. Selection

2. Training and Development

3. Performance Evaluation and Management

4. Promotions

5. Redundancy

6. Industrial and Employee Relations

7. Record keeping of all personal data.

8. Compensation, pensions, bonuses etc in liaison with Payroll

9. Confidential advice to internal 'customers' in relation to problems at work.

10. Career development



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1.2 RESEARCH BACKGROUND

INTRODUCTION TO RECRUITMENT AND RETENTION

According to Edwin B. Flippo, Recruitment is the process of searching thecandidates for employment and stimulating them to apply for jobs in the organisation.

Recruitment is the activity that links the employers and the job seekers

A few definitions of recruitment are:

A process of finding and attracting capable applicants for employment. The

process begins when new recruits are sought and ends when their applications are

submitted. The result is a pool of applications from which new employees are selected.

It is the process to discover sources of manpower to meet the requirement of

staffing schedule and to employ effective measures for attracting that manpower inadequate numbers to facilitate effective selection of an efficient working force.

Recruitment of candidates is the function preceding the selection, which helps

create a pool of prospective employees for the organisation so that the management can

select the right candidate for the right job from this pool. The main objective of the

recruitment process is to expedite the selection process.

Recruitment is a continuous process whereby the firm attempts to develop a

pool of qualified applicants for the future human resources needs even though specific

vacancies do not exist. Usually, the recruitment process starts when a manger initiates

an employee requisition for a specific vacancy or an anticipated vacancy.

RECRUITMENT NEEDS ARE OF THREE TYPES

PLANNED

i.e. the needs arising from changes in organization and retirement policy

.

ANTICIPATED

Anticipated needs are those movements in personnel, which an organization

can predict by studying trends in internal and external environment.

UNEXPECTED

Resignation, deaths, accidents, illness give rise to unexpected needs.



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Purpose & Importance Of Recruitment

Attract and encourage more and more candidates to apply in the

organisation. Create a talent pool of candidates to enable the selection of best

candidates for the organisation. Determine present and future requirements of the

organization in conjunction with its personnel planning and job analysis activities.Recruitment is the process which links the employers with the employees. Increase the

pool of job candidates at minimum cost. Help increase the success rate of selection

process by decreasing number of visibly under qualified or overqualified job

applicants.

Help reduce the probability that job applicants once recruited and Selected

will leave the organization only after a short period of time. Meet the organizations

legal and social obligations regarding the composition of its workforce. Begin

identifying and preparing potential job applicants who will be appropriate candidates.

Increase organization and individual effectiveness of various recruiting techniques and

sources for all types of job applicants Retention

Employee Retention involves taking measures to encourage employees to

remain in the organization for the maximum period of time. Corporate is facing a lot of

problems in employee retention these days. Hiring knowledgeable people for the job is

essential for an employer. But retention is even more important than hiring. There is

no dearth of opportunities for a talented person. There are many organizations which

are looking for such employees. If a person is not satisfied by the job hes doing, he may

switch over to some other more suitable job. In todays environment it becomes very

important for organizations to retain their employees. The top organizations are on the

top because they value their employees and they know how to keep them glued to the

organization. Employees stay and leave organizations for some reasons. The reasonmay be personal or professional. These reasons should be understood by the employer

and should be taken care of. The organizations are becoming aware of these reasons

and adopting many strategies for employee retention.

1.3 Need for recruitment:The need for recruitment may be due to th e following reasons /

situation:

Vacancies due to promotions

a) Transfer, retirement, termination, permanent disability, death andlabour turnover.

Creation of new vacancies due to the growth, expansion and

diversification of business activities of an enterprise. In addition, new

vacancies are possible due to job specification



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1.4 Scope of the study :

To determine the present and future requirements of the

organization on conjunction with its personnel-planning and job analysis

activities.

1. To increase the pool of job candidates at minimum cost.2. To help increase the success rate of the selection process by reducing

the number of visibly under qualifi ed or overqualified job

applicants.

3. To help reduce the probability that job applicants, once recruitedand selected, will leave the organization only after a short period oftime.

4. To meet the organizations legal and social obligations regarding thecomposition of its work force.

5. To begin identifying and preparing potential job applicants who willbe appropriate candidates.

6. To increase organizational and individual effectiveness in th e shortterm and long term.

7. To evaluate the effectiveness of various recruiting techniques andsources for all types of job applicants.

1.5 OBJECTIVES

OBJECTIVES OF THE STUDY

Recruitment helps a company to achieve its objective from time to time by

creating a positive attitude among workers. Reducing wastage and making maximumuse of resources etc.

Allocating the jobs to the right person:-

If proper recruitment and selection methods are followed, the company will

be able to select the right people for the right job. When this happens the number of



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people leave the job will reduce as the will be satisfied with their job leading to decrease

in labour turnover

To know the benefits of recruitment to the employees with respect totheir welfare activities.

HR management function that helps managers to recruit, select, train andretain members for an organization.

So the study of the HR recruitment and retainment means basically the brief study of

all HR functions related to recruitment and retainment in the organization. I believe

the recruitment and retainment is a vital part of an organization, which helps the

organization to achieve the goal of the organization.

All companies are having their recruitment and retainment process but the companywho is having the best, is the most

successful company among its competitors. So the company can get success within its

competitors

by applying best, effectiveness in the organisation

The main objective of the project is

To understand and study the recruitment and retainment process in the

organisation

To know how the organisation recruit employees

To study what are the sources of recruitment in the organisation

To study what are the test the organisation conduct

To study how the organisation retain the employees

HR function is very important in every organization. It helps the organization to

manage not only

the people of the organization but to manage all the working processes in it also. HR

management function that helps managers to recruit, select, train and retain members

for an organization.



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CHAPTER: 2

Company profile

With more than 60,000 people in over 150 countries, Nokia Siemens Networks

is one of the largest telecommunications hardware, software and services companies inthe world. We are committed to innovation and sustainability and offer a complete

portfolio of mobile, fixed and converged network technologies as well as professional

services including consulting and systems integration, network implementation,

maintenance and care, and managed services.

We serve more than 600 customers around the world Communications

Service Providers (CSPs) who face a multitude of challenges as they focus on capturing

greater value through business model innovation, reducing the complexity within their

businesses and networks, growing their customer base and minimizing subscriber

churn.

It is our aim to play the vital role of an enabler, someone who helps CSPs

build stronger, more lasting and ultimately more profitable customer relationships. We

aim to do so by enhancing the efficiency and sustainability of their business practices,

and in turn help them meet pressing challenges.



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Our initiatives aim to foster sustainable business practices which increase

profitability and demonstrate the broad impact of the telecommunications industry on

other sectors. One such initiative is our participation in the WWF Climate Savers

program under which we have pledged to undertake a number of steps that reduce our

annual CO2 emissions by approximately two million tons. One of our key co mmitments

is to improve the energy efficiency of our GSM/EDGE and WCDMA/HSPA base

station products by up to 40 percent by 2012. Our Flexi Base Station has the lowest

energy consumption in the market, and has been recognized as the worlds most

progressive mobile network technology at GSMA Global Mobile Awards 2009. In

addition, we recently launched the industrys most comprehensive energy solutions

offering, which includes the innovative Green Energy Control. Currently we have more

than 390 sites across 25 countries which run on renewable energy. By 2011, renewable

energy will be our preferred source of power supply for every remote base station site

that we install.

Our vast and market-leading portfolio of offerings aptly reflects our

emphasis on thought leadership and innovation. We have pioneered a centralized

Global Service Delivery model by creating integrated multi-technology, multi-vendor

Global Network Solutions Centres which drive the worlds most efficient networks. We

also enjoy leadership in several other areas, including Professional Services where we

are the industrys fastest growing vendor, voice solutions where we power the

conversations of more than one-fourth of the worlds population, 3G where we have

more than 160 3G radio references, and network deployment where we enjoy the

largest market share. As a leader in technology innovation, we are committed to

driving the commercial uptake of LTE starting in 2010, and offer an end-to-endsolution which provides a future-proof, easy and cost-efficient path to LTE.

Mission and Vision

The road ahead

Until now, development in our industry has mainly been a matter of delivering

connections more, faster, cheaper, and more efficient. This is still important. The

connectivity explosion continues, and by 2015 we know that 5 billion people and further

billions of devices will be connected. So, we must continue applying our expertise in

order to deliver on the reality of hundred-fold increases in traffic.



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Towards an ecosystem of partners

Today, however, we are also focusing like never before on delivering quality

quality experience. We can see that a more open, collaborative and customer-centric

way of working could bring so much more value to billions of individuals, and to

millions of businesses. We at Nokia Siemens Networks must drive that change by

leaving the closed and proprietary mindset behind, and leading the way in a new spirit

of openness and collaboration.

Our customers challenges

Our customers, Communications Service Providers (CSPs), face challenges on

all fronts: the need to increase efficiency keeps pressure on capital and operational

costs; the dramatic rise in traffic due to the proliferation of internet applications

demands new business models for monetization; and an ever fiercer competitive

climate is challenging CSPs to prove they can retain the customers they have and win

back any they might have lost. Nokia Siemens Networks will play a vital role in helping

CSPs meet these challenges. This role is our mission its about building value.

Our mission

by improving efficiency and experience

We have built value by addressing efficiency, and we continue to do that. But we also

need to address the customers need for a better experience, because its experience

that builds relationships, and relationships that build value.



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Our vision

We believe that CSPs can ultimately enable and deliver a segment of one

where they can define and enhance the service experience for each and every

individual. Customers whose communications experience fit and works for them dont

change operators. And operators who can devote themselves to enriching the

customers experience build stronger, more lasting and profitable customer

relationships.

The individual communications experience is the greatest value a

communications service provider can deliver to their customer, and so its the greatest

value we can support communications service providers in delivering.

The road ahead

The future of service is largely network-based. Internet applications hosted in

the cloud (email, social networking sites, corporate service and communication tools,

etc.), already account for a large proportion of the services people access every day.

Every day, therefore, quality of network experience has more and more to do with

quality of life.

Ultimately every service is delivered to an individual. And those individuals

will benefit from the services being delivered in a way that fits their personal needs and

desires. This experience cannot be the privilege of the few. It must be as true for

customers in emerging countries with just a dollar to spend, as for businesses in

developed countries with greater resources, and for the trillions of devices that make upthe Internet of Things.

Our vision acknowledges that communications service providers need to

manage this complexity wisely, ensuring the necessary security and authentication for

users, while having the ability to profitably deliver a customized experience, based on a

persons locations, context, device, usage patterns and preferences.



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Our vision guides our mission, and our mission is to build more valuable

customer relationships. The individual communications experience builds more

valuable customer relationships.

CHAPTER: 3



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REVIEW OF LITERATURE

3.1 Scientific recruitment and selection

The importance of selection recruitment and selection of staff i s now

accepted in the business world. Selection is important as it has its i mpact

on work performance and employee cost. As result scientific methods of

recruitment and selection are extensively for the selection of managers

and the supervisory staff. The assistance of experts such as industrial

psychologist and management consultants are also taken for the purpose

of scientific selection. As a result, the objective of right man for th e right



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job is achieved in many organizations. Moreover, right job is the basi c

principle in manpower procurement.

3.2 RECRUITMENT PROCESS

Recruitment refers to the process of identifying and att racting job

seekers so as to build a pool of qualified job app licants. The process

comprises five interrelated stages, viz,

1. Planning.2. Strategy development.3. Searching.4. Screening.5. Evaluation and control.

The ideal recruitment programme is the one that attracts a

relatively larger number of qualified applicants who will survive the

screening process and a ccept positions with the organisation, when

offered. Recruitment programmes can miss the ideal in many ways i. e. by

failing to attract an adequate applicant pool, by under/over selling the

organisation or by inadequate screening applicants before they enter the

selection process. Thus, to approach the ideal, individuals responsible for

the recruitment process must know how many and what types o f

employees are needed, where and how to loo k for the individuals with the

appropriate qualifications and interests, what inducement to use for

various types of applicants groups, how to distingui sh applicants who are

qualified from those who have a reasonable chance of success and how to

evaluate their work.

STAGE 1:

RECRUITMENT PLANNING:

The first stage in th e recruitment process is planning. Planning

involves the translation of likely job vacancies and information about the



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nature of these jobs into set of objectives or targets that specify the (1)

Numbers and (2) Types of applicants to be contacted.

Numbers of contact:

Organization, nearly always, p lan to attract more applicants than

they will hire. Some of those contacted will b e uninterested, unqualified

or both. Each time a recruitment Programme is contemplated, one task is

to estimate the number of appli cants necessary to fill all vacancies with

the qualified p eople.

Types of contacts:

It is basically concerned with the types of people to be informed

about job openings. The type of people depends on the tasks and

responsibilities involved and the qualifications a nd experience expected.

These details are available through job d escription and job specification.

STAGE 2:

STRATEGY DEVELOPMENT:

When it is estimated that what types of recruitment and how many

are required then one has concentrate in

(1). Make or Buy employees. (2). Technological sophistication of

recruitment and selection devices. (3). Geographical distribution of

labour markets comprising job seekers. (4). Sources of recruitment.

(5). Sequencing the activities in the recruitment process.

Make or Buy:

Organisation must decide whether to hire le skilled employees and

invest on training and education programmes, or they can hi re skilled

labour and professional. Essentially, this is the make or buy decision.

Organizations, which hire skilled and professionals shall have to pay more

for these employees.



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Technological Sophistication:

The second decision in st rategy development relates to the methods

used in recruitment and selection. This decision is mainly influenced by

the available technology. The advent of computers has made it possible

for employers to scan national and inte rnational applicant qualification.

Although impersonal, computers have given employers and ob seekers a

wider scope of options in th e initial screening stage.

Where to look:

In order to reduce the costs, organisations look in to labour markets

most likely to offe r the required job seekers. Generally, companies look in

to the national market for managerial and professional employees,

regional or local markets for technical employees and local markets for

the clerical and b lue-collar employees.

When to look:

An effective recruiting strategy must determine when to look-

decideon the timings of events besides knowing where and how to

look for job applicants.

STAGE 3:

SEARCHNG:

Once a recruitment plan and strategy are worked out, the search

process can begin. Search involves two steps

A). Source activation and

B). Selling.

A). SOURCE ACTIVATION:

Typically, sources and search methods are activated by th e

issuance of an employee requisition. This means that no a ctual recruiting



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takes place until lone managers have verified that vacancy does exist or

will exist.

If the organisation has planned well and done a good job of

developing its sources and search methods, activation soon results in aflood of applications and/o r resumes.

The application received must be screened. Those who pass hav e to

be contacted and invited for interview. Unsuccessful appli cants must be

sent letter of regret.

B). SELLING:

A second issue to be addressed in the searching process concernscommunications. Here, organisation walks tightrope. On one hand, th ey

want to do whatever they can to attract desirable applicants. On the other

hand, they must resist th e temptation of overselling their virtues.

In selling the organisation, both the message and the media deserve

attention. Message refers to the employment adv ertisement. With regards

to media, it may b e stated that effectiveness of any recruiting message

depends on the media. Media are several- some have low credibility, whileothers enjoy high credibility. Selection of medium or media needs to be

done with a lot of care.

STEP 4:

SCREENING:

Screening of applicants can be regarded as an integral part of the

recruiting process, th ough many view it as the first step in the selectionprocess. Even the definition on recruitment, we quoted in the beginning of

this chapter, excludes screening from its scope. However, we have

included screening in recruitment for valid reasons. The selection process

will begin after the applications have been scrutinized and short-listed.

Hiring of professors in a university is a typical situation. Application



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received in response to advertisements is screened and only eligible

applicants are called for an int erview. A selection committee comprising

the Vice-chancellor, Registrar and subject experts conducts interview.

Here, the recruitment process extends up to screening the applications.

The selection process commences only later.

Purpose of screening

The purpose of screening is to remove from the recruitment process,

at an early stage, those applicants who are visibly unqualified for the job.

Effective screening can save a great deal of t ime and money. Care must be

exercised, however, to assure tha t potentially good employees a re not

rejected without justification.

In screening, clear job specifications are invaluable. It is both good

practice and a legal necessity that applicants qua lification is judged on

the basis of their knowledge, skills, abilities and interest required to do

the job.

The techniques used to screen applicants vary depending on th e

candidate sources and recruiting methods used. Interview and application

blanks may be used to screen walk-ins. Campus recruiters and agency

representatives use interviews and resumes. Reference checks are a lso

useful in screening.

STAGE 5:

EVALUATION AND CONTROL:

Evaluation and control is n ecessary as considerable costs are

incurred in the recruitment process. The costs generally incurred are: -

1. Salaries for recruiters.2. Management and professional time spent on preparing job d escription,

job specifications, advertisements, agency liaison and so forth.



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3. The cost of advertisements o r other recruitment methods, that is,agency fees.

4. Recruitment overheads and administrative expenses.5. Costs of overtime and outsourcing while the vacancies remain unfilled.6. Cost of recruiting unsuitable candidates for the selection process.3.3 EVALUATION OF RECRUITMENT PROCESS

The recruitment has the objective of searching for and obtain ing

applications for job seekers in sufficient number and quality. Keeping this

objective in the mind, the evaluation might include:

1. Return rate of application sent out.2. Number of suitable candidates fo r selection.3. Retention and performance of the candidates selected.4. Cost of the recruitment process5. Time lapsed data6. Comments on image projected.



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3.4 Sources of Recrui ent

SOURCES OF MANAGERIAL RECRUITMENT

INTERNAL SOURCES E TERNAL SOURCES

1) Promotion 1) Campus recruitment

2) Transfers 2) Press advertisement

3) Internal notification 3) Management consultancy service

(Advertisement) & private employment exchanges



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4) Retirement 4) Deputation of personnel or transfer

from one enterprise to another

5) Recall 5) Management training schemes

6) Former employees 6) Walk-ins, write-ins, talk-ins

7) Miscellaneous external sources

The sources of recruitment can be broadly categorized into internal and

external sources-

(I) Internal Recruitment Internal recruitment seeks applicants forpositions from within the company. The various inte rnal sources

include

Promotions and Transfers

Promotion is an effective means using job posting and

personnel records. Job posting requires notifying vacant po sitions by

posting notices, circulating publications or announcing at staff

meetings and inviting employees to apply. Personnel records help

discover employees who are doing jobs below their educational

qualifications or skill levels. Promotions has many advantages like it is

good public relations, builds morale, encourages competent individuals

who are ambitious, improves the p robability of good selection sinceinformation on the individuals performance is readily available, is

cheaper than going outside to recruit, those chosen internally are

familiar with the organization thus reducing the orientation time and

energy and also acts as a t raining device for developing middle-level

and top-level managers. However, promotions restrict th e field of



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selection preventing fresh blood & ideas from entering the

organization. It also leads to i nbreeding in the organization. Transfers

are also important in p roviding employees with a broad-based view of

the organization, necessary for future promotions.

Employee referrals-

Employees can develop good prospects for th eir families and

friends by acquainting them with the advantages of a job with the

company, furnishing them with introduction and encouraging them to

apply. This is a very effective means as many qualified people can be

reached at a very low cost to the company. The other advantages are

that the employees would bring only those referrals that they feel

would be able to fit in the organization based on th eir own experience.

The organization can be assured of t he reliability and the character of

the referrals. In this way, the organization can also fulfill social

obligations and create goodwill.

Former Employees-

These include retired employees who are willing to work on a

part-time basis, individuals who left work and are willing to come back

for higher compensations. Even retrenched employees are taken up

once again. The advantage here is that the people are already known to

the organization and there is no need to find out their past

performance and character. Also, there is no need of an o rientation

program for them, since they are familiar with th e organization.

Dependents of deceased employees-

Usually, banks follow this policy. If an employee dies, his / her

spouse or son or daughter is recruited in their place. This is usua lly an

effective way to fulfill social obligation and create goodwill.



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Recalls: -

When management faces a problem, which can be solved only

by a manager who has proceeded on long leave, it may de decided to

recall that persons after the problem is solved, his leave may be

extended.

Retirements: -

At times, management may not find suitable candidates in

place of the one who had retired, after meritorious service. Under the

circumstances, management may decide to call retired managers with

new extension.

Internal notification (advertisement): -

Sometimes, management issues an internal notification for the

benefit of existing employees. Most employees know from their o wn

experience about the requirement of the job and what sort of person

the company is looking for. Often employees have friends or

acquaintances who meet these requirements. Suitable persons are

appointed at the vacant posts.

(II) External Recruitment Exte rnal recruitment seeks applicants for

positions from sources outside the company. They have outnumbered the

internal methods. The various external sources include

Professional or Trade Associations :-

Many associations provide placement service to it s members.

It consists of compiling job seekers lists and providing access to

members during regional or national conventions. Also, thepublications of these associations carry classified advertisements from

employers interested in recruiting their members. These are

particularly useful for attracting highly educated, experienced or

skilled personnel. Also, the recruiters can zero on in specific job

seekers, especially for hard -to-fill technical posts.



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Advertisements :-

It is a popu lar method of seeking recruits, as many recruiters

prefer advertisements because of their wide reach. Want ads describe

the job benefits, identify the employer and tell those interested how to

apply. Newspaper is the most common medium but for highly

specialized recruits, advertisements may be p laced in professional or

business journals.

Advertisements must contain proper information like the job

content, working conditions, location of job, compensation including

fringe benefits, job specifications, growth aspects, etc. The

advertisement has to sell the idea tha t the company and job are perfect

for the candidate. Recruitment advertisements can also serve as

corporate advertisements to bu ild company image. It also cost

effective.

Employment Exchanges:-

Employment Exchanges have been set up all ove r the country in

deference to the provision of the E mployment Exchanges (Compulsory

Notification of Vacancies) Act, 1959. The Act applies to all indu strial

establishments having 25 workers or more each. The Act requires all

the industrial establishments to notify the vacancies before they are

filled. The major functions of the exchanges are to increase the pool of

possible applicants and to do the preliminary screening. Thus,

employment exchanges act as a link between the employers and the

prospective employees. These offices are particularly useful to in

recruiting blue-collar, white collar and technical workers.

Campus Recruitments:-

Colleges, universities, research laboratories, sports fi elds

and institutes are fertile ground f or recruiters, particularly the

institutes. Campus Recruitment is going global with companies like

HLL, Citibank, HCL-HP, ANZ Grind lays, L&T, Motorola and



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Reliance looking for global markets. Some companies recruit a given

number of candidates from these institut es every year. Campus

recruitment is so much sought a fter that each college; university

department or institute will have a placement officer to handle

recruitment functions. However, it is oft en an expensive process, even

if recruiting process produces job o ffers and acceptances eventually. A

majority leave the organization within the first five years of their

employment. Yet, it is a major source of recruitment for prestigious

companies.

Walk-ins, Write-ins and Talk-ins-

The most common and least expensive approach for

candidates is direct applications, in which job seekers submit

unsolicited application letters or resumes. Direct applications can also

provide a pool of potential employees to meet future needs. From

employees viewpoint, walk-ins are preferable as they a re free from the

hassles associated with other methods of recruitment. While di rect

applications are particularly effective in fi lling entry-level and

unskilled vacancies, some organizations compile pools of potential

employees from direct applications for skilled posit ions. Write-ins are

those who send written enquiries. These jobseekers are asked to

complete application forms for further processing. Talk-ins involves

the job aspirants meeting the recruiter (on an appropriated date) for

detailed talks. No application is required to be submitted to the

recruiter.

Contractors:-

They are used to recruit casual workers. The names of the

workers are not entered in the company reco rds and, to this extent;

difficulties experienced in maintaining pe rmanent workers are avoided.

Consultants:-



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They are in the profession for recruiting and selecting

managerial and executive personnel. They are useful as they have

nationwide contacts and lend professionalism to th e hiring process.

They also keep prospective employer and employee anonymous.

However, the cost can be a deterrent factor.

Head Hunters:-

They are useful in specialized and skilled candidate working

in a particular company. An agent i s sent to represent the recruiting

company and offer is made to the candidate. This is a u seful source

when both the companies involved are in the same field, and the

employee is reluctant to take th e offer since he fears, that his company

is testing his loyalty.

Radio, Television and Internet:-

Radio and television are used to reach certain types of job

applicants such as skilled workers. Radio and t elevision are used but

sparingly, and that too, by government d epartments only. Companies in

the private sector are hesitant to use the media because of high costs

and also because they fear that such advertising will make the

companies look desperate and damage th eir conservative image.

However, there is n othing inherently desperate about using radio and

television. It depends upon what is said and how it i s delivered.

Internet is becoming a popular option for recruitment today. There are

specialized sites like naukri.com. Also, websites of companies have a

separate section wherein; aspi rants can submit their resumes and

applications. This provides a wider reach.

Competitors:-

This method is popularly known as poaching or raiding

which involves identifying the right people in rival companies, offering

them better terms and luring th em away. For instance, several

executives of HMT left to join Titan Wat ch Company. There are legal



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and ethical issues involved in raiding rival firms for potential

candidates. From the legal point of vi ew, an employee is expected to

join a new organization only a fter obtaining a no obj ection certificate

from his/ her present employer. Violating this requirement shall bind

the employee to pay a few months salary to his/ her present employer

as a punishment. However, there are many ethical issues attached to it.

Mergers and Acquisitions:-

When organizations combine, th ey have a pool of employees,

out of whom some may not be necessary any longer. As a result, the

new organization has, in effect, a pool of qualified job applicants. As a

result, new jobs may be created. Both new and old jobs may be readily

staffed by drawing the best-qualified applicants from this employee

pool. This method facilitates the imm ediate implementation of an

organizations strategic plan. It enables an organization to pursue a

business plan, However, the need to displace employees and to

integrate a large number of them rather quickly into a new

organization means that the p ersonnel-planning and selection process

becomes critical more than ever.

Evaluation of External Recruitment:

External sources of recruitment have both merits and demerits.

3.5 The merits are-

The organization will have the benefit of new skills, new talents

and new experiences, if people a re hired from external sou rces.

The management will be able to fulfill reservation requirements

in favour of the disadvantaged sections o f the society.

Scope for resentment, heartburn and jealousy can be avoided by

recruiting from outside.

3.6 The demerits are-



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Better motivation and increased morale associated with

promoting own employees re lost to t he organization.

External recruitment is costly.

If recruitment and selection processes are not properly carried

out, chances of right candidates being rejected and wrong

applicants being selected occur.

High training time is associated with external recruitment.

98% of organizational success depends upon efficient employee selection

3.7 SELECTION

Selection is defined as the p rocess of differentiating between

applicants in order to identify (and hire) those with a greater likelihood

of success in a job.

Selection is basically picking an applicant from (a pool of

applicants) who has the app ropriate qualification and competency to do

the job.

The difference between recruitment and selection:

Recruitment is id entifying n encouraging prospective employees to

apply for a job. And Selection is selecting the right candidate from the

pool of applicants

.1 SELECTION PROCESS

Selection is a long p rocess, commencing from the p reliminary

interview of the applicants and ending with the contract of employment.



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The following chart gives an idea about selection process: -

External Environment

Internal Envir nment

Preliminary Interview

Selection Tests

Employment Interview

Reference and Background

Analysis

Selection Decision

Physical Examination

Job Offer

Employment Contract

Evaluation

ReectedA

lication



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Environment factor affecting selection: -

Selection is influenced by several facto rs. More prominent among

them are supply and demand of specific skills in the labou r market,

unemployment rate, labour- market conditions, legal and political

considerations, companys image, companys policy, hu man resources

planning and cost of hiring. The last t hree constitute the internal

environment and the remaining form th e external environment of selection

process.

STEP 1: -

PRELIMINARY INTERVIEW

The applicants received from job seekers would be subj ect to scrutiny

so as to eliminate unqualified applicants. Thi s is usually followed by a

preliminary interview the purpose of which is more or less the same as

scrutiny of application, that is, eliminate of unqualified applicants. Scrutiny

enables the HR specialists to eliminate unqualified jobseekers based on the

information supplied in t heir application forms. Preliminary interview, on

the other hand, helps reject misfits for reason, which did not appear in the

application forms. Besides, preliminary interview, often called courtesy

interview, is a go od public relation exercise.

STEP 2: -

SELECTION TEST:

Job seekers who pass the screening and the preliminary interview are

called for tests. Different types o f tests may be administered, depending on

the job and th e company. Generally, tests are used to determine the

applicants ability, aptitud e and personality.



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The following are the type of tests taken:

1). Ability tests: -

Assist in determining how well an individual can perform tasks

related to the job. An excellent illustration of this is t he typing tests

given to a prospective employer for secretarial job. Also called as

ACHEIVEMENT TESTS. It is concerned with what one has

accomplished. When applicant claims to know something, an achievement

test is taken to measure how well they know it. Trade tests are the most

common type of achievement test gi ven. Questions have been prepared

and tested for such t rades as asbestos worker, punch-press operators,

electricians and machinists. The re are, of course, many unstandardized

achievement tests given in industries, such as typing or dictation tests for

an applicant for a stenographic position.

2). Aptitude test: -

Aptitude tests measure whether an individual s has the capacity or

latent ability to learn a given job if given adequate training. The use ofaptitude test is advisable when an applicant has had little o r no experience

along the line of the job opening. Aptitudes tests help determine a persons

potential to learn in a given area. An example of such test is the general

management aptitude tests (GMAT), which many business students take

prior to gaining admission to a g raduate business school program.

Aptitude test indicates the ability or fitness of an individual to

engage successfully in any number of specialized activities. They cover suchareas clerical aptitude, numerical aptitude, mechanical aptitude, motor co-

ordination, finger dexterity and manual dexterity. These t ests help to detect

positive negative points in a persons sensory or intellectual ability. They

focus attention on a particular type of talent such as learning or reasoning

in respect of a particular field o f work.



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Forms of aptitude test:

1. Mental or intelligence tests:They measure the overall intellectual ability of a person and enable

to know whether the person has the mental ability to deal with certain

problems.

2. Mechanical aptitude tests:They measure the ability of a p erson to learn a particular type of

mechanical work. These tests helps to measure specialized technical

knowledge and problem solving abilities if the candidate. They are useful in

selection of mechanics, maintenance workers, etc.

3. Psychomotor or skills tests:They are those, which measure a persons ability to do a specific job.

Such tests are conducted in respect of semi- skilled and repetitive jobs such

as packing, testing and inspection, etc.

4. Intelligence test:This test helps to evaluate traits of intelligence. Mental ability,

presence of mind (alertness), numerical ability, memory and such other

aspects can be measured.

The intelligence is probably the most widely administered standardized test

in industry. It is ta ken to judge numerical, skills, reasoning, memory and

such other abilities.

5. Interest Test:This is conducted to find out likes and dislikes of candidates

towards occupations, hobbies, etc. such tests in dicate which occupations are

more in line with a p ersons interest. Such tests also enable the company to



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provide vocational guidance to the selected candidates and even to the

existing employees.

These tests are used to measure an individuals a ctivity

preferences. These tests are particularly useful for students consideringmany careers or employees deciding upon career changes.

6. Personality Test:The importance of personality to job success is undeniable. Often

an individual who possesses the intelligence, aptitude and experience for

certain has failed because of inability to get along with and motivate other

people.

It is conducted to judge maturity, social or interpersonal skills,

behaviour under stress and strain, etc. this t est is very much essential on

case of selection of sales force, public relation staff, etc. where personality

plays an important role.

Personality tests are simila r to interest tests in that they, also,

involve a serious problem of obtaining an honest answer.

7. Projective Test:This test requires interpretation of problems or situations. For

example, a photograph or a picture can b e shown to the candidates and they

are asked to give their views, and opinions a bout the picture.

8. General knowledge Test:Now days G.K. Tests are very common to find gen eral awareness of

the candidates in the fi eld of sports, politics, world affairs, current affairs.



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9. Perception Test:At times perception tests can be conducted to find out beliefs,

attitudes, and mental sharpness.etc.

10.Graphology Test:It is designed to analyze the handwriting of individual. It has been

said that an individuals handw riting can suggest the degree of energy,

inhibition and spontaneity, a s well as disclose the idiosyncrasies and

elements of balance and control. For example, big letters and emphasis on

capital letters indicate a t endency towards domination and competitiveness.

A slant to the right, moderate pressure and good legibility show leadership

potential.

11.Polygraph Test:Polygraph is a lie detector, which is designed to ensure accuracy

of the information given in the applications. Department store, banks,

treasury offices and jewellery shops, that is, those highly vulnerable to theft

or swindling may find polygraph t ests useful.

12. Medical Test:It reveals physical fitness of a candidate. With the development of

technology, medical tests have become diversified. Medical servicing helps

measure and monitor a candidates p hysical resilience upon exposure to

hazardous chemicals.

CHOOSING TESTS:

The test must be chosen in the criteria of reliability, validity,

objectivity and standardization. They are: -

1. RELIABILITY: -



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It refers to standardization of the procedure of administering and

scoring the test results. A person who takes tests one day and ma kes a

certain score should be able to take the same test the next day or th e next

week and make more or less the same score. An individuals intelligence, for

example, is generally a stable characteristic. So if we administer an

intelligence test, a person who scores 110 in March would score close to 110

if tested in July. Tests, which produce wide variations in results, serve little

purpose in selection.

2. VALIDITY: -It is a t est, which helps predict whether a person will b e successful in

a given job. A test that has been validated can be helpful in differentiatingbetween prospective employees who will be able to perform the job well and

those who will not. Naturally, no test will be 100% accurate in predicting

job success. A validated test increases possibility of success.

There are three ways of validating a t est. They are as follows: -

1). Concurrent Validity: - this involves determining the factors that are

characteristics of successful employees and th en using these factors a s the

yardsticks.

2). Predictive Validity: - it involves using a selection test during the

selection process and then id entifying the successful candidates. The

characteristics of both successful and less successful candidates a re then

identified.

3). Synthetic Validity: - it involves taking parts of several similar jobs

rather than one complete job to valid ate the selection test.



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3. OBJECTIVITY:

When two or more people can inte rpret the result of the same test and

derive the same conclusion(s), the test is said to be objective. Otherwise, the

test evaluators subjective opinions may render the test useless.

4. STANDARDRIZATION:A test that is standardized is administered under standard condition to

a large group of person who are representatives of the individua ls for whom

it is intended. The purpose of standardization is to obtain n orms or

standard, so that a specific test score can be meaningful when compared to

other score in the group.

STEP 3: -

INTERVIEW:

The next step in the selection process is an interview. Interview is formal,

in-depth conversation conducted to evaluate the applicants acceptability. It

is considered to be excellent selection device. It is face-to-face exchange of

view, ideas and opinion between the candidates an d interviewers. Basically,

interview is nothing but an oral examination of candidates. Inte rview can be

adapted to unskilled, skilled, managerial and p rofession employees.

Objectives of interview: -

Interview has at least three objectives and th ey are a follows: -

1)Helps obtain additional information from the applicants2)Facilitates giving general information to the applicants such as company

policies, job, products manufactured and the like

3)Helps build the companys image among the applicants.4)Types of interview: -

Interviews can be of different types. There interviews employed by the

companies.



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Following are the various types of interview: -

1)Informal Interview:An informal interview is an oral interview and may take place

anywhere. The employee or the manager or the personnel manager mayask a few almost inconsequential qu estions like name, place of bi rth,

names of relatives etc. either in t heir respective offices or anywhere

outside the plant of company. It id not planned and nobody prepares for

it. This is used widely when the labour market is tight and when you need

workers badly.

2)Formal Interview:Formal interviews may be held in th e employment office by he

employment office in a more formal atmosphere, with the help of well

structured questions, the time and place of the int erview will be stipulated

by the employment office.

3)Non-directive Interview:Non-directive interview or un structured interview is d esigned to

let the interviewee speak his mind freely. The interviewer has no formal

or directive questions, but his all attention is t o the candidate. He

encourages the candidate to talk by a little prodding whenever he is silent

e.g. Mr. Ray, please tell us about yourself after yo ure graduated from

high school.

The idea is o give the candidate complete freedom to sell himself,

without the encumbrances of the interviewers question. But the

interviewer must be of higher calibre and must guide and relate the

information given by the app licant to the objective of th e interview.

4)Depth Interview:It is designed to intensely examine the candidates background and

thinking and to go into considerable detail on particular subjects of an

important nature and of special interest to the candidates. For example, if



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the candidate says that he is interested in tennis, a series of questions may

be asked to test the depth of understanding and interest of the candidate.

These probing questions must be asked with tact and through exhaustive

analysis; it is possible to get a good picture of th e candidate.

5)Stress Interview:It is designed to t est the candidate and hi s conduct and behaviour

by him under conditions o f stress and strain. The int erviewer may start

with Mr. Joseph, we do not thin k your qualifications and experience are

adequate for this position, and watch the reaction of the candidates. A

good candidates will not yield, on the contrary he may substantiate why

he is qualified to handle the job.

This type of interview is borrowed from the Military organisation

and this is very useful to test b ehaviour of individuals when they are faced

with disagreeable and trying situations.

6)Group Interview:It is designed to save busy executives time and t o see how the

candidates may be brought together in the employment office and they

may be int erviewed.

7)Panel Interview:A panel or interviewing board or selection committee may

interview the candidate, usually in th e case of supervisory and

managerial positions. This type of int erview pools the collective

judgment and wisdom of th e panel in the assessment of the candidate

and also in questioning the faculties of th e candidate

8)Sequential Interview:The sequential interview takes the one-to-one a step further and

involves a series of interview, usually utilizing the st rength and

knowledgebase of each interviewer, so that each interviewer can ask



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questions in relation to his o r her subject area of each candidate, as the

candidate moves from room to room.

9)structures Interview:In a st ructured interview, the interviewer uses preset standardized

questions, which are put to all the interviewees. This interview is also

called as Guided or Patterned interview. It is useful for valid

results, especially when dealing with the large number of app licants.

10) Unst ructured Interview:

It is also known as Unpatterned interview, the interview is

largely unplanned and the interviewee does most of the talking.

Unguided interview is advantageous in as much as it leads to a friendly

conversation between the interviewer and the interviewee and in the

process, the later reveals more of his or her desire and problems. But

the Unpatterned interview lacks unifo rmity and worse, this approach

may overlook key areas of the applicants skills or background. It is

useful when the interviewer tries to probe p ersonal details of the

candidate it analyse why they are not right for the job.

11) Mixed Interview:

In practice, the int erviewer while interviewing the job seekers

uses a blend of structured and structured and unstructured questions.

This approach is called the Mixed Interview. The structured questions

provide a base of interview more conv entional and permit greater

insights into the unique differences between applicants.

12) Impromptu Interviews:

This interview commonly occurs when employers a re approached

directly and tends to be very informal and unstructured. Applicants

should be prepared at all ti mes for on-the-spot interviews, especially in

situations such as a job fair or a cold call. It is an ideal time for



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employers to ask the candidate some basic questions t o determine

whether he/she may be interested in formally interv iewing the

candidate.

13) Dinner Interviews:

These interviews may be structured, informal, or socially

situated, such as in a restaurant. Decide what to eat quickly, some

interviewers will ask you to order first ( do not appear indecisive).

Avoid potentially messy foods, such as spaghetti. B e prepared for the

conversation to abruptly change from friendly chat to di rect interview

questions, however, do not underestimate the value of casual

discussion, some employers place a great value on it. B e prepared to

switch gears rapidly, from fun talk to bu siness talk.

14) Telephone Interviews:

Have a copy of your resume and any points you want to

remember to say nearby. If you are on your home t elephone, make sure

that all roommates or fami ly members are aware of the interview (no

loud stereos, barking dogs etc.). Speak a bit slower than usual. It is

crucial that you convey your enthusiasm verbally, since the inte rviewer

cannot see your face. If there are pauses, do not worry; the interviewer

is likely just taking some notes.

15) Second Inte rviews:

Job seekers are invited back after they have passed the first

initial interview. Middle or senior management generally conducts the

second interview, together or separately. Applicants can expect more

in-depth questions, and the employer will b e expecting a greater level

of preparation on the part of the candidates. Applicants should

continue to research the employer following the first interview, and b e



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prepared to use any information gained through the p revious interview

to their advantage.

STEP 4: -

REFERENCE CHECK:-

Many employers request names, addresses, and telephone

numbers of references for the purpose of verifying information and

perhaps, gaining additional background information on an applicant.

Although listed on the appli cation form, references are not u sually

checked until an applicant has successfully reached the fourth stage of asequential selection process. When the labour market is very tight,

organisations sometimes hire applicant s before checking references.

Previous employers, known as public figu res, university professors,

neighbours or friends can act as references. Previous employers are

preferable because they are already aware of th e applicants performance.

But, the problem with this reference is the tendency on the part of the

previous employers to over-rate the applicants p erformance just to get rid

of the person.

Organisations normally seek letters of reference or telephone

references. The latt er is advantageous because of its accuracy and low cost.

The telephone reference also has the advantage of soliciting i mmediate,

relatively candid comments and attitude can sometimes be in ferred from

hesitations and inflections in speech.

It may be stated that the information gathered through references

hardly influence selection decisions. The reasons are obvious:

1. The candidate approaches only those persons who would speak wellabout him or her.



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2. People may write favourably about t he candidate in order to get ridof him or her.

3. People may not like to divulge the truth about a candidate, lest itmight damage or ruin his/her career.

STEP 5: -

SELECTION DECISION: -

After obtaining information through the preceding st eps, selection

decision- the most critical o f all the steps- must be made. The othe r stages

in the selection process have been used to narrow the number of t he

candidates. The final decision has to be made th e pool of individuals who

pas the tests, int erviews and reference checks.

The view of the line manager will be generally considered in the final

selection because it is he/she who is responsible for the performance of the

new employee. The HR manager plays a crucial role in the final selection.

STEP 6: -

PHYSICAL EXAMINATION: -

After the selection decision and before the job offer is made, the

candidate is required to undergo a physical fitness test. A job offer is, often,

contingent upon the candidate being declared fit after the physical

examination. The results of the medical fitness test are recorded in a

statement and a re preserved in the personnel records. There a re several

objectives behind a physical t est. Obviously, one reason for a physical testis to detect if the individual carries any infectious disease. Secondly, the

test assists in determining whether an applicant is physically fit to p erform

the work. Thirdly, the physical examination in formation can be used to

determine if there are certain physical capabilities, which differentiate

successful and less successful employees. Fourth, medical check-up protects



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applicants with health defects from undertaking work that could be

detrimental to them or might o therwise endanger the employers property.

Finally, such an examination will p rotect the employer from workers

compensation claims that a re not valid because the injuries or i llness were

present when the employee was hired.

STEP 7: -

JOB OFFER: -

The next step in the selection process is job offer to those

applicants who have crossed all the previous hurdles. Job offer is made

through a letter of appointed. Such a letter generally contains a date by

which the appointee must report on duty. The appointee must be given

reasonable time for reporting. Thos is pa rticularly necessary when he or she

is already in employment, in which case the appoint ee is required to obtain

a relieving certificate from the previous employer. Again, a n ew job may

require movement to another city, which means considerable preparation,

and movement of property.

The company may also want the individual to d elay the date of

reporting on duty. If the new employees first job upon joining the company

is to go on company until perhaps a week before such training begins.

Naturally, this practice cannot be abused, especially if the individual is

unemployed and does not have sufficient finances.

Decency demands that th e rejected applicants be informed about

their non-selection. Their applicants may be preserved for future use, if

any. It needs no emphasis that the applications of selected candidates mustalso be preserved for the future references.



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STEP 8: -

CONTRACT OF EMPLOYMENT: -

After the job offer has been mad and candidates accept th e offer,

certain documents need to be executed by the employer and the candidate.

One such document is the attestation form. This fo rm contains vital details

about the candidate, which are authenti cated and attested by him/h er.

Attestation form will b e a valid record for the future reference.

There is also a need for preparing a contract of employment. The

basic information that should be included in a written contract of

employment will vary according to the level of the job, but the following

checklist sets out the typical h eadings:

1. Job title2. Duties, including a parse such as T he employee will perform

such duties and will be responsible to such a person, as the

company may from time to ti me direct.

3. Date when continuous employment starts and th e basis forcalculating service.

4. Rate of pay, allowance, overtime and shift rates, method ofpayments.

5. Hours of work including lunch break and overtime and shiftarrangements.

6. Holiday arrangements:y Paid holidays per year.

y Calculation of holiday pay.

y Qualifying period.

y Accrual of holidays and holiday pay.

y Details of holiday year.

y Dates when holidays can be taken.

y Maximum holiday that can be t ake at any one time.



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y Carryover of holiday entitlement.

y Public holidays.

7. Length of notice due to and from employee.

8. Grievances procedure (or reference to it).

9. Disciplinary procedure (or any reference to it).

10. Work rules (or any referen ce to them).

11. Arrangements for terminating employment.

12. Arrangements for union membership (if applicable).

13.Special terms relating to rights to patent s and designs,confidential information and restraints on trade after

termination of employment.

14.Employers right to vary t erms of the contract subject toproper notification being given.

Alternatively called employment agreements or simply bonds,

contracts of employment serve many useful purposes. Such contracts seek to

restrain job-hoppers, to protect knowledge and info rmation that might be

vital to a companys healthy bottom lin e and to prevent competitors from

poaching highly valued employees.

Great care is taken to draft th e contract forms. Often, services of

law firms (prominent firms in this category include Mulla, Craigie, Blunt

and Caroe, Crawford Bailey, Amarchand Mangaldas Hiralal, etc.) are

engag4d to get the forms drafted and finalized.

Most employers insist on agreements being signed by newly hired

employees. But high turnover sectors such as so ftware, advertising and

media are more prone to use contracts.



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The drawback with the contracts is that it is almost to enforce

them. A determined employee is bound to leave the organisation, contract

or no contract. The employee is prepa red to pay the penalty for breaching

the agreement or the new employer will provide compensations. It i s the

reason that several companies have scrapped the contracts altogether.

STEP 9: -

CONCLUDING THE SELECTION PROCESS : -

Contrary to popu lar perception, the selection process will not end

with executing the employment contract. There is anothe r step amore

sensitive one reassuring those candidates who have not selected, not because

of any serious deficiencies in their personality, but because their profile did

not match the requirement of the organisation. They must be told that those

who were selected were done purely on relative merit.

STEP 10: -

EVALUATION OF SELECTION PROGRAMME: -

The broad test of the effectiveness of the selection process is the

quality of the pe rsonnel hired. An organisation must have competent and

committed personnel. The selection process, if p roperly done, will ensure

availability of such employees. How to evaluate the effectiveness of a

selection programme? A periodic audit is the answer. People who work

independent of HR department must conduct audit. The table below

contains an outline that highlights th e areas and questions to be covered in

a systematic evaluation.

3.8 Four Approaches to Selection:

1). Ethnocentric Selection:

In this approach, staffing decisions are made at the organizations

headquarters. Subsidiaries have limited autonomy, and the employees from



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the headquarters at home and abroad fill key jobs. Nationals from the

parent country dominate the organisations at home and abroad.

2). Polycentric Selection:

In polycentric selection, each subsidiary is treated as a distinct

national entity with local control key financial targets and investment

decisions. Local citizens manage subsidiaries, but the key jobs remain with

staff from the parent country. This is the approach, which is largely

practiced in our country

3). Regiocentric Selection: -

Here, control within the group and the movements o f staff are

managed on a regional basis, reflecting the particular disposition of

business and operations within th e group. Regional managers have greater

discretion in decision. Movement of staff is largely restricted to specific

geographical regions and promotions to the jobs continue to be dominated

by managers from the parents company.

4). Geocentric Staffing: -

In this case, business strategy is integrated thoroughly on global basis.

Staff development and promotion are based on ability, not nationality. The

broad and other parts of the top management structure a re thoroughly

international in composition. Needless to say, such organisations are

uncommon.

a.PROBLEMS IN EFFECTIVE SELECTION:The main objective of selection is t o hire people having competence

and commitment. This obj ective s often defeated because of certain

barriers. The impediments, which check effectiveness of selection, are

perception, fairness, validity, reliability and pressure.



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Perception: -

Our inability to understand others accurately is p robably the

most fundamental barrier to selecting the right candidate. Selection

demands an individual or a group of people to assess and compare the

respective competencies of othe rs, with the aim of choosing the right

persons for the jobs. But our views are highly p ersonalized. We all perceive

the world differently. Our limited perceptual ability i s obviously a

stumbling block to the objective and rational selection of the people.

Fairness: -

Fairness in selection requires that no individual should be

discriminated against on the basis o f religion, region, race or gender. But

the low numbers of women and other less privileged sections of the soci ety

in middle and senior management positions and open discrimination on the

basis of age in job advertisements and in th e selection process would suggest

that all the efforts to minimize inequity have not been effective.

Validity: -

Validity, as explained earlier, is a test that helps predict job

performance of an incumbent. A test that has been validated can

differentiate between the employees who perform well and those who will

not. However, a validated test does not predict job Success accurately. It

can only increase possibility of success.

Reliability: -

A reliable method is one, which will p roduce consistent results

when repeated in similar situations. Like validated test, a reliable test may

fail to predict job performance with precision.

Pressure: -

Pressure is brought on t he selectors by politicians,

bureaucrats, relatives, friends and peers to select particular candidates.

Candidates selected because of compulsions are obviously not the right



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ones. Appointments to publi c sectors undertakings generally take place

under such pressures.

3.10 Difference (Recruitment and Selection)

1.) Recruitment is the process of searching for prospective candidates and

motivating them to app ly for job in t he organisation. Whereas, selection is a

process of choosing most suitable candidates out of those, who are

interested and also qualified for job.

2.) In the recruitment process, vacancies available are finalized, publicity is

given to them and application s are collected from interested candidates. In

the selection process, available applications are scrutinized. Tests, interview

and medical examination are conducted in order t o select most suitable

candidates.

3.) In recruitment the purpose is to attract maximum numbers of suitable

and interested candidates through applications. In selection process the

purpose is that the best candidate out of those qualified and interested in

the appointment.

4.) Recruitment is prior to selection. It creates proper base for actual

selection. Selection is next to recruitment. It is out of candidates

available/interested.

5.) Recruitment is the positiv e function in which inte rested candidates are

encouraged to submit application. Selection is a n egative function in which

unsuitable candidates are eliminated and the best one is selected.

6.) Recruitment is the short process. In recruitment publicity is given to

vacancies and applications are collected from different sources Selection is



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a lengthy process. It involves scrutiny of applications, giving tests,

arranging interviews and medical examination.

7.) In recruitment services of expert is not required. Whereas in selection,

services of expert is required.

8.) Recruitment is not costly. Expenditure is required mainly for

advertising the posts. Selection is a costly activity, as expenditure is needed

for testing candidates and conduct of interviews.

Retention:

To retain the employees is very important in the organisation if

the employees star to leave the organisation then its a heavy loss for the

organisation so it is essential to retain them in the organisation to mke the

employee retain the organisation must provide a good welfare activities so that

the organisation can make the employee retain in the organisation

Importance Of Employee Retention

Now that so much is being done by organizations to retain its employees,

Why is retention so important? Is it just to reduce the turnover costs? Well, the answer is

a definite no. Its not only the cost incurred by a company that emphasizes the need of

retaining employees but also the need to retain talented employees from getting poached.

The process of employee retentionwill benefit an organization in the following ways:

1. The Cost of Turnover:

The cost of employee turnover adds hundreds of thousands of money to a

company's expenses. While it is difficult to fully calculate the cost of turnover

(including hiring costs, training costs and productivity loss), industry experts often

quote 25% of the average employee salary as a conservative estimate.



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2. Loss of Company Knowledge:

When an employee leaves, he takes with him valuable knowledge about the

company, customers, current projects and past history (sometimes to competitors).

Often much time and money has been spent on the employee in expectation of a future

return. When the employee leaves, the investment is not realized.

3. Interruption of Customer Service:

Customers and clients do business with a company in part because of the people.

Relationships are developed that encourage continued sponsorship of the business.

When an employee leaves, the relationships that employee built for the company are

severed, which could lead to potential customer loss.

4. Turnover leads to more turnovers:

When an employee terminates, the effect is felt throughout the organization. Co-workers are often required picking up the slack. The unspoken negativity often

intensifies for the remaining staff.

5. Goodwill of the company:

The goodwill of a company is maintained when the attrition rates are low.

Higher retention rates motivate potential employees to join the organization.

6. Regaining efficiency:

If an employee resigns, then good amount of time is lost in hiring a newemployee and then training him/her and this goes to the loss of the company directly

which many a times goes unnoticed. And even after this you cannot assure us of the

same efficiency from the new employee

What Makes Employee Leave?

Employees do not leave an organization without any significant reason. There

are certain circumstances that lead to their leaving the organization.

The most common reasons can be:

Job is not what the employee expected to be:

Sometimes the job responsibilities dont come out to be same as expected by the

candidates. Unexpected job responsibilities lead to job dissatisfaction.



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Job and person mismatch:

A candidate may be fit to do a certain type of job which matches his personality.

If he is given a job which mismatches his personality, then he wont be able to perform it

well and will try to find out reasons to leave the job.

No growth opportunities:

No or less learning and growth opportunities in the current job will make

candidates job and career stagnant.

Lack of appreciation:

If the work is not appreciated by the supervisor, the employee feels de-motivated

and loses interest in job. Lack of trust and support in co-workers, seniors and

management.

Trust is the most important factor that is required for an individual to stay in the

job. Non-supportive co-workers, seniors and management can make office environment

unfriendly and difficult to work in.

Stress from overwork and work life imbalance:

Job stress can lead to work life imbalance which ultimately many times lead to

employee leaving the organization.

Compensation:

Better compensation packages being offered by other companies may attract

employees towards themselves.

New job offer:

An attractive job offer which an employee thinks i

Documents

Project on Internal and External Recuritment and Retairnment