RECRUITMENT & SELECTION by Baratha Dewanarayana. Management Consultant. B.Sc in Business Administration, Business Economics (Special)

Recruitment

•         Definition

            The process of finding and attracting suitably qualified people to apply for employment.

The Need for Recruitment

Vacancies can be occurred due to

1. Transfer
2. Promotion
3. Retirement
4. Termination
5. Permanent disability
6. Death
7. Business Expansion
8. Diversification
9. Growth
10. Changes of Company Policies
11. Changing the Top Management
12. Government Regulations

Recruitment Process

1. Identify Job Vacancy

2. Establish Job Requirements & Required Skills

3. Assessment of External and Internal Influence

4. Select the Method of Recruitment

5. Implement & Evaluation

Recruitment types

•         Internal Recruitment

            Considering current employees as applicant for higher –level jobs in the organization.

•         External Recruitment

            Getting candidates from outside the organization

Sources of Internal Recruitment

·         Job Posting

Publishing an open job to employees and listing its attributes like Qualifications, Supervisors, working schedule, and pay rate. 

·         Review Personal Records

·         Succession Planning

The process of ensuring a suitable supply of successors for current senior or key jobs.

·         Circulars

·         Memos

Sources of External Recruitment

·         Advertisement

·         Educational Institutions

·         Employment Agencies

·         Interested Application

·         Internet Job Posting

• College Recruiting

This is an important source of management trainees, professional and technical employees.

·         Recruiting on the Internet

Ex: Jobs net, top jobs

Advantages of Internal Recruiting

·         Good Public Relations

·         Build morale

·         Performance information already available

·         Chosen already know the organization

·         Helps in developing in middle and top managers

·         Reduce Cost

Disadvantages of Internal Recruiting

·         Employees who apply for jobs and don’t get them become discontented

·         Groups are sometimes not as satisfied when their new boss is appointed    from within their own ranks.

Advantages of External Recruiting

·         Attract new skills to the organization

·         Adding new ideas to the organization  

Disadvantages of External Recruiting

·         Additional cost

·         Take time to familiarize with the organization culture people etc

·         Existing employees become dissatisfied.

Selection

            Definition

The process of making the choice of most appropriate person from the pool of applicants recruited to fill the relevant job vacancy.

Selection Process

1.      Applications/Screening

2.      Exams/Test

3.      Interviews

4.      Medical Test

5.      Decision Making

6.      Appointment

01. Application Evaluation

Short listing the Applications

02. Employment Tests

Organizations use tests as a major input for selection process.

•         Intelligent tests

•         Aptitude tests

•         Ability tests

•         Interest tests

•         General Knowledge test

•         Graphology (handwriting analysis)

•         Honesty tests

03. Interviews

      Applicants, who have passed the earlier steps, take this interview.

                  Some or all of the following can interview:

•         HR Interviewers

•         Senior managers

•         Potential supervisor

•         Potential colleagues

3.1. INTERVIEWS

·         Preliminary Interview

·         Selection Interview

§  Formal &Structured Interview

§  Unstructured Interview

§  Stress Interview

§  Group Interview Method

§  Panel Interview

§  In-depth   Interview

04. Background investigation

Investigating Background information of potential employees:

•         Contacting former employers

•         Contacting other job-related or personal references

•         Verifying educational accomplishments

•         Verifying legal status to work

•         Checking credit references and criminal records

05. Medical Test

This examination is given to screen out those applicants who are unable to physically comply with the requirements of the job.

Offer Letter

Appointment letter

Types of employment

1) Permanent Employees

            Permanent employee is confirmed in the company and is eligible for all benefits specified. The organization is obliged to give him work on a continuous basis.

           

2) Apprentice

            An Apprentice cannot be considered as a workman or an employee. An Apprentice is merely acquiring the knowledge of he/she is interested in and an employer merely undertakes to train him.

3) Fixed Term Contract

            Employee under a Fixed Term Contract is a person who is employed by the employer for a specified period of time and at the end of the said period contract is considered to be expired.

4) Temporary Employees

            A temporary employee is an employee taken to fulfill a temporary need

5) Probationers

            A Probationer is an employee who enters into a contract of employment with the employer. The sole purpose of having a probationary period is to ascertain and evaluate the capability and capacity of the employee. Most often contract itself contains a provision for the extension of the probationary period

Job Design

 Job Design

—  Process of determining the specific tasks to be performed, the methods used in performing these tasks, and how the job relates to other work in the organization

Job Design Techniques

—  Job enrichment - Basic changes in the content and level of responsibility of a job, so as to provide greater challenge to the worker

—  Job enlargement - Changes in the scope of a job to provide greater  variety to the worker

—  Re-engineering – Fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quality, service and speed

—  Scientific Technique

            More specialized job that has a shorter job cycle.

—  Job Rotation

—  Shifting an employee from one particular job to another .

JOB ANALYSIS

—  Need information about the Person & about the Job

Definitions

—  Job Analysis: the process of collecting & analyzing information about jobs to write:

—  Job Description: a document that identifies the tasks & duties performed by a job

—  Job Specification: a document that identifies the qualifications required by a job

—  Most organizations combine the Job Description & the Job Specification into a single document for each job

—  Usually simply called a “Job Description”

—  Task: a unit of work activity performed by a worker within a limited time period

—  Duty: several related tasks that are performed by a worker

—  Position: the set of all tasks & duties performed by a worker

—  Job: a group of identical positions

Job Analysis Process

• Familiarize with nature and type of work of the organization
• Identify and select jobs to be analyzed
• Develop a JA information format
• Develop a JA information format
• Evaluation.   

Feed back is a must for this process 

Fa 01. familiarize with nature and type of work of the organization

02 02. Decide purposes of the job analysis

a.       How do you want to use the Job Descriptions?

                                                              i.      Job design

                                                            ii.      Recruiting

                                                          iii.      Selection

                                                          iv.      Performance appraisal

                                                            v.      Training

                                                          vi.      Compensation

03 03.Data Collection & Analysis

Collect job data

a.       Reduce sources of bias

b.      Conduct effective interviews

Analyze the job data

Report results to organization

c.       Write the job descriptions

Periodically recheck the job data

d.      Update & revise the job descriptions as needed

Methods of collection of data

• —  1. Observation
• —  2. Participation
• —  3. Questionnaire

04. Evaluate the Job Analysis process

—  Continuous improvement: learn from both successes & mistakes to continuously get better

—  Did the project finish on-time and under-budget?

—  Did you collect the correct information?

Are the Job Descriptions being used as intended?

The Organizational Environment by Baratha Dewanarayana. Management Consultant. B.Sc in Business Administration, Business Economics (Special)

The Organizational Environment

Organizational Environment

l  Organizational Environment: those forces outside its boundaries that can impact it.

n  Forces can change over time and are made up of Opportunities and Threats.

l  Opportunities: openings for managers to enhance revenues or open markets.

n  New technologies, new markets and ideas.

l  Threats: issues that can harm an organization.

n  Economic recessions, oil shortages.

l  Managers must seek opportunities and avoid threats.

Forces in the Organizational Environment

l  Task Environment

n  Competitors

n  Customers

n  Distributors

n  Supplier

l  The General Environment

n  Demographic forces

n  Political & Legal Forces

n  Global Forces

n  Technological Forces

n  Socio cultural Forces

n  Economic Forces

Task Environment

l  Task Environment: forces from suppliers, distributors, customers, and competitors.

l  Suppliers: provide organization with inputs

n  Managers need to secure reliable input sources.

n  Suppliers provide raw materials, components, and even labor.

u Working with suppliers can be hard due to shortages, unions, and lack of substitutes.

u Suppliers with scarce items can raise the price and are in a good bargaining position.

n  Managers often prefer to have many, similar suppliers of each item.

l  Distributors: organizations that help others to sell goods.

n  Compaq Computer first used special computer stores to sell their computers but later sold through discount stores to reduce costs.

n  Some distributors like Wal-Mart have strong bargaining power.

u They can threaten not to carry your product.

l  Customers: people who buy the goods.

n  Usually, there are several groups of customers.

u For Compaq, there are business, home, & government buyers.

l  Competitors: other organizations that produce similar goods.

n  Rivalry between competitors is usually the most serious force facing managers.

n  High levels of rivalry often mean lower prices.

u Profits become hard to find.

n  Barriers to entry keep new competitors out and result from:

u Economies of scale: cost advantages due to large scale production.

u Brand loyalty: customers prefer a given product.

Industry Life Cycle

l  Reflects the changes that take place in an industry over time.

l  Birth stage: firms seek to develop a winning technology.

n  VHS vs. Betamax in video, or 8-track vs. cassette in audio.

l  Growth stage: Product gains customer acceptance and grows rapidly.

n  New firms enter industry, production improves, and distributors emerge.

l  Shakeout stage: at end of growth, there is a slowing customer demand.

n  Competitor rivalry increases, prices fall.

n  Least efficient firms fail and leave industry.

l  Maturity stage: most customers have bought the product, growth is slow.

n  Relationships between suppliers, distributors more stable.

n  Usually, industry dominated by a few, large firms.

l  Decline stage: falling demand for the product.

n  Prices fall, weaker firms leave the industry.

The General Environment

l  Consists of the wide economic, technological, demographic and similar issues.

n  Managers usually cannot impact or control these.

n  Forces have profound impact on the firm.

l  Economic forces: affect the national economy and the organization.

n  Includes interest rate changes, unemployment rates, and economic growth.

n  When there is a strong economy, people have more money to spend on goods and services.

l  Technological forces: skills & equipment used in design, production and distribution.

n  Result in new opportunities or threats to managers.

n  Often make products obsolete very quickly.

n  Can change how we manage.

l  Social cultural forces: result from changes in the social or national culture of society.

n  Social structure refers to the relationships between people and groups.

l  Different societies have vastly different social structures.

n  National culture includes the values that characterize a society.

l  Values and norms differ widely throughout the world.

n  These forces differ between cultures and over time.

l  Demographic forces: result from changes in the nature, composition and diversity of a population.

n  These include gender, age, ethnic origin, etc.

l  For example, during the past 20 years, women have entered the workforce in increasing numbers.

n  Currently, most industrial countries are aging.

l  This will change the opportunities for firms competing in these areas.

l  New demand for health care, assisting living can be forecast.

l  Political-legal forces: result from changes in the political arena.

n  These are often seen in the laws of a society.

n  Today, there is increasing deregulation of many state-run firms.

l  Global forces: result from changes in international relationships between countries.

n  Perhaps the most important is the increase in economic integration of countries.

n  Free-trade agreements (GATT, NAFTA, EU) decreases former barriers to trade.

Provide new opportunities and threats to managers.

Managing the Organization Environment

l  Managers must measure the complexity of the environment and rate of environmental change.

l  Environmental complexity: deals with the number and possible impact of different forces in the environment.

n  Managers must pay more attention to forces with larger impact.

n  Usually, the larger the organization, the greater the number of forces managers must oversee.

l  The more forces, the more complex the manager’s job becomes.

l  Environmental change: refers to the degree to which forms in the task and general environments change over time.

n  Change rates are hard to predict.

n  The outcomes of changes are even harder to identify.

l  Managers thus cannot be sure that actions taken today will be appropriate in the future given new changes.

Reducing Environmental Impact

l  Managers can counter environmental threats by reducing the number of forces.

n  Many firms have sought to reduce the number of suppliers it deals with which reduces uncertainty.

l  All levels of managers should work to minimize the potential impact of environmental forces.

n  Examples include reduction of waste by first line managers, determining competitor’s moves by middle managers, or the creation of a new strategy by top managers.

Organizational Structure

l  Managers can create new organizational structures to deal with change.

n  Many firms use specific departments to respond to each force.

l  Managers also create mechanistic or organic structures.

n  Mechanistic structures have centralized authority.

u Roles are clearly specified.

u Good for slowly changing environments.

n  Organic structures authority is decentralized.

u Roles overlap, providing quick response to change.

Boundary Spanning

l  Managers must gain access to information needed to forecast future issues.

n  Rod Canyon’s forecast of Compaq’s future was wrong due to his incorrect view of the environment.

l  Boundary spanning is the practice of relating to people outside the organization.

n  Seek ways to respond and influence stakeholder perception.

n  By gaining information outside, managers can make better decisions about change.

l  More management levels involved in spanning yields better overall decision making.

 Scanning and Monitoring

l  Environmental scanning is an important boundary spanning activity.

n  Includes reading trade journals, attending trade shows, and the like.

l  Gate keeping: the boundary spanner decides what information to allow into organization and what to keep out.

n  Must be careful not to let bias decide what comes in.

l  Inter organizational Relations: firms need alliances globally to best utilize resources.

Managers can become agents of change and impact the environment