Introduction of Recruitments

8/7/2019 Introduction of Recruitments

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1. Introduction

1.1 Introduction of The Insurance Industry

Overview

The story of insurance is probably as old as the story of mankind. The same

instinct that prompts modern businessmen today to secure themselves against loss

and disaster existed in primitive men also. They too sought to avert the evil

consequences of fire and flood and loss of life and were willing to make some sort

of sacrifice in order to achieve security. Though the concept of insurance is largely

a development of the recent past, particularly after the industrial era past few

centuries yet its beginnings date back almost 6000 years.

The first two decades of the twentieth century saw lot of growth in insurancebusiness. From 44 companies with total business-in-force as Rs.22.44 crore, it rose

to 176 companies with total business-in-force as Rs.298 crore in 1938. The

Insurance Act 1938 was the first legislation governing not only life insurance but

also non-life insurance to provide strict state control over insurance business.

Some of the important milestones in the life insurance business in India are:

1818: Oriental Life Insurance Company, the first life insurance company on Indian

soil started functioning.

1870: Bombay Mutual Life Assurance Society, the first Indian life insurance

company started its business.

1912: The Indian Life Assurance Companies Act enacted as the first statute to

regulate the life insurance business.

1928: The Indian Insurance Companies Act enacted to enable the government to

collect statistical information about both life and non-life insurance businesses.

1938: Earlier legislation consolidated and amended to by the Insurance Act withthe objective of protecting the interests of the insuring public.

1956: 245 Indian and foreign insurers and provident societies are taken over by the

central government and nationalized. LIC formed by an Act of Parliament, viz.


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LIC Act, 1956, with a capital contribution of Rs. 5 crore from the Government of

India.

The General insurance business in India, on the other hand, can trace its roots to

the Triton Insurance Company Ltd., the first general insurance company

established in the year 1850 in Calcutta by the British.

Some of the important milestones in the general insurance business in India are:

1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all

classes of general insurance business.

1957: General Insurance Council, a wing of the Insurance Association of India,

frames a code of conduct for ensuring fair conduct and sound business practices.

1968: The Insurance Act amended to regulate investments and set minimum

solvency margins and the Tariff Advisory Committee set up.

1972: The General Insurance Business (Nationalisation) Act, 1972 nationalised the

general insurance business in India with effect from 1st January 1973.

With largest number of life insurance policies in force in the world, Insurance

happens to be a mega opportunity in India. Its a business growing at the rate of

15-20 per cent annually and presently is of the order of Rs 450 billion. Together

with banking services, it adds about 7 per cent to the countrys GDP. Gross

premium collection is nearly 2 per cent of GDP and funds available with LIC for

investments are 8 per cent of GDP.

Yet, nearly 80 per cent of Indian population is without life insurance cover while

health insurance and non-life insurance continues to be below international

standards. And this part of the population is also subject to weak social security

and pension systems with hardly any old age income security. This itself is an

indicator that growth potential for the insurance sector is immense.

A well-developed and evolved insurance sector is needed for economic

development as it provides long term funds for infrastructure development and at

the same time strengthens the risk taking ability. It is estimated that over the next

ten years India would require investments of the order of one trillion US dollar.

The Insurance sector, to some extent, can enable investments in infrastructure

development to sustain economic growth of the country.


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India has come a full circle from being an open competitive market to

nationalization and back to a liberalized market again. Tracing the developments in

the Indian insurance sector reveals the 360 degree turn witnessed over a period of

almost two centuries.

Present Scenario

The Government of India liberalized the insurance sector in March 2000 with the

passage of the Insurance Regulatory and Development Authority (IRDA) Bill,

lifting all entry restrictions for private players and allowing foreign players to enter

the market with some limits on direct foreign ownership.

The opening up of the sector is likely to lead to greater spread and deepening of

insurance in India and this may also include restructuring and revitalizing of the

public sector companies. In the private sector 14 life insurance and 8 generalinsurance companies have been registered. A host of private Insurance companies

operating in both life and non-life segments have started selling their insurance

policies..

Life Insurance Market

The Life Insurance market in India is an underdeveloped market that was only

tapped by the state owned LIC till the entry of private insurers. The penetration of

life insurance products was 19 percent of the total 400 million of the insurable

population. The state owned LIC sold insurance as a tax instrument, not as aproduct giving protection. Most customers were under- insured with no flexibility

or transparency in the products. With the entry of the private insurers the rules of

the game have changed.

The 12 private insurers in the life insurance market have already grabbed nearly 9

percent of the market in terms of premium income. The new business premiums of

the 12 private players has tripled to Rs 1000 crore in 2002- 03 over last year.

Innovative products, smart marketing and aggressive distribution. That's the triple

whammy combination that has enabled fledgling private insurance companies to

sign up Indian customers faster than anyone ever expected. Indians, who havealways seen life insurance as a tax saving device, are now suddenly turning to the

private sector and snapping up the new innovative products on offer.

The private insurers also seem to be scoring big in other ways- they are persuading

people to take out bigger policies. Buoyed by their quicker than expected success,


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nearly all private insurers are fast- forwarding the second phase of their expansion

plans.

Major Insurance Players

Licenses have been issued for the following companies

ICICI Prudential Life Insurance Limited ICICI Prudential Life Insurance Company Limited HDFC Standard Life Insurance Company Limited Birla Sun Life Insurance Company Limited TATA AIG Life Insurance Company Limited Max New York Life Insurance Company Limited SBI Cardiff Life Insurance Company Limited ING Vysya Life Insurance Company Limited Bajaj Allianz Life Insurance Company Limited MetLife Life Insurance Company Limited Aviva Life Insurance Company Limited AMP Sanmar Life Insurance Company Limited Sahara India Life Insurance Limited Sri Ram Life Insurance Limited

Protection of the interests of policyholders:

IRDA has the responsibility of protecting the interest of insurance policyholders.

Towards achieving this objective, the Authority has taken the following steps:


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1. IRDA has notified Protection of Policyholders Interest Regulations 2001 toprovide for: policy proposal documents in easily understandable language;

claims procedure in both life and non-life; setting up of grievance redressal

machinery; speedy settlement of claims; and policyholders' servicing. The

Regulation also provides for payment of interest by insurers for the delay in

settlement of claim.

2. The insurers are required to maintain solvency margins so that they are in a position to meet their obligations towards policyholders with regard to

payment of claims.

3. It is obligatory on the part of the insurance companies to disclose clearly thebenefits, terms and conditions under the policy. The advertisements issued

by the insurers should not mislead the insuring public.

4. All insurers are required to set up proper grievance redress machinery intheir head office and at their other offices.

The Authority takes up with the insurers any complaint received from the

policyholders in connection with services provided by them under the

insurance contract

1.2. COMPANY PROFILE

ICICI PRUDENTIAL LIFE INSURANCE

ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a

premier financial powerhouse and Prudential plc, a leading international financial

services group headquartered in the United Kingdom.

ICICI was established in 1955 to lend money for industrial development. Today, it


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has diversified into retail banking and is the largest private bank in the country.

Prudential plc was established in 1848 and is presently the largest life insurance

company in UK.

ICICI Prudential is currently the No. 1 private life insurer in the country. For the

financial year ended March 31, 2005, the company garnered Rs 1584 crore of new

business premium for a total sum assured of Rs 13,780 crore and wrote nearly

615,000 policies.

The Company recognizes that the driving force for gaining sustainable competitive

advantage in this business is superior customer experience and investment behind

the brand. The Company aims to achieve this by striving to provide world class

service levels through constant innovation in products, distribution channels and

technology based delivery. The Company has already taken significant steps to

achieve this goal.

India's Number One private life insurer, ICICI Prudential Life Insurance Company

is a joint venture between ICICI Bank-one of India's foremost financial services

companies-and Prudential plc- a leading international financial services group

headquartered in the United Kingdom. Total capital infusion stands at Rs. 23.72

billion, with ICICI Bank holding a stake of 74% and Prudential plc holding 26%.

ICICI Prudential was the first life insurer in India to receive a National Insurer

Financial Strength rating of AAA (Ind) from Fitch ratings. For three years in a

row, ICICI Prudential has been voted as India's Most Trusted Private Life Insurer, by The Economic Times - AC Nielsen ORG Marg survey of 'Most Trusted

Brands'. As we grow our distribution, product range and customer base, we

continue to tirelessly uphold our commitment to deliver world-class financial

solutions to customers all over India.

ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a

premier financial powerhouse, and Prudential plc, a leading international financial

services group headquartered in the United Kingdom. ICICI Prudential was

amongst the first private sector insurance companies to begin operations in

December 2000 after receiving approval from Insurance Regulatory Development

Authority (IRDA).

ICICI Prudential's capital stands at Rs. 23.72 billion with ICICI Bank and

Prudential plc holding 74% and 26% stake respectively. For the first quarter ended


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June 30, 2007, the company garnered Rs. 987 crore of weighted retail + group new

business premiums and wrote over 450,000 retail policies in the period. The

company has assets held to the tune of over Rs. 18,400 crore.

ICICI Prudential is also the only private life insurer in India to receive a National

Insurer Financial Strength rating of AAA (Ind) from Fitch ratings. The AAA (Ind)

rating is the highest rating, and is a clear assurance of ICICI Prudential's ability to

meet its obligations to customers at the time of maturity or claims.

For the past six years, ICICI Prudential has retained its position as the No. 1

private life insurer in the country, with a wide range of flexible products that meet

the needs of the Indian customer at every step in life.

Distribution

ICICI Prudential has one of the largest distribution networks amongst private life

insurers in India. It has a strong presence across India with over 680 branches and

over 235,000 advisors.

The company has over 23 bancassurnace partners, having tie-ups with ICICI Bank,

Federal Bank, South Indian Bank, Bank of India, Lord Krishna Bank, Idukki

District Co-operative Bank, Jalgaon Peoples Co-operative Bank, Shamrao Vithal

Co-op Bank, Ernakulam Bank, 9 Bank of India sponsored Regional Rural Banks

(RRBs), Sangli Urban Co-operative Bank, Baramati Co-operative Bank, Ballia

Kshetriya Gramin Bank, The Haryana State Co-operative Bank and Imphal Urban

Cooperative Bank Limited

DISTRIBUTION

ICICI Prudential has one of the largest distribution networks amongst private life

insurers in India, having commenced operations in 150 cities and towns in India,

stretching from Bhuj in the west to Guwahati in the east, and Jammu in the north to

Trivandrum in the south.

The company has 9 bank partnerships for distribution, having agreements with

ICICI Bank, Bank of India, Federal Bank, South Indian Bank, Lord Krishna Bank,

and some co-operative banks, as well as over 300 corporate agents and brokers. It


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2. INTRODUCTION OF HUMAN RESOURCES

MANAGEMENT

The Human Resources Management (HRM) function includes a variety ofactivities, and key among them is deciding what staffing needs you have and

whether to use independent contractors or hire employees to fill these needs,

recruiting and training the best employees, ensuring they are high performers,

dealing with performance issues, and ensuring your personnel and management

practices conform to various regulations. Activities also include managing your

approach to employee benefits and compensation, employee records and personnel

policies. Usually small businesses (for-profit or nonprofit) have to carry out these

activities themselves because they can't yet afford part- or full-time help. However,

they should always ensure that employees have -- and are aware of -- personnelpolicies which conform to current regulations. These policies are often in the form

of employee manuals, which all employees have.

Note that some people distinguish a difference between HRM (a major

management activity) and HRD (Human Resource Development, a profession).

Those people might include HRM in HRD, explaining that HRD includes the

broader range of activities to develop personnel inside of organizations, e.g., career

development, training, organization development, etc.

There is a long-standing argument about where HR-related functions should beorganized into large organizations, eg, "should HR be in the Organization

Development department or the other way around?"

The HRM function and HRD profession have undergone tremendous change over

the past 20-30 years. Many years ago, large organizations looked to the "Personnel

Department," mostly to manage the paperwork around hiring and paying people.

More recently, organizations consider the "HR Department" as playing a major

role in staffing, training and helping to manage people so that people and the

organization are performing at maximum capability in a highly fulfilling manner.

Recently, the phrase "talent management" is being used to refer the activities to

attract, develop and retain employees. Some people and organizations use the

phrase to refer especially to talented and/or high-potential employees. The phrase

often is used interchangeably with the field ofHuman Resource Management --

although as the field of talent management matures, it's very likely there will be an


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increasing number of people who will strongly disagree about the interchange of

these fields. For now, this Library uses the phrases interchangeably.

Human resource management (HRM) is the strategic and coherent approach to

the management of an organization's most valued assets - the people working there

who individually and collectively contribute to the achievement of the objectives

of the business.[1]

The terms "human resource management" and "human

resources" (HR) have largely replaced the term "personnel management" as a

description of the processes involved in managing people in organizations.[1]

In

simple sense, HRM means employing people, developing their resources, utilizing,

maintaining and compensating their services in tune with the job and

organizational requirement.

Features

Its features include:

y Organizational managementy Personnel administrationy Manpower managementy Industrial management

But these traditional expressions are becoming less common for the theoretical

discipline. Sometimes even employee and industrial relations are confusingly listed

as synonyms, although these normally refer to the relationship between

management and workers and the behavior of workers in companies.

The theoretical discipline is based primarily on the assumption that employees are

individuals with varying goals and needs, and as such should not be thought of as

basic business resources, such as trucks and filing cabinets. The field takes a

positive view of workers, assuming that virtually all wish to contribute to the

enterprise productively, and that the main obstacles to their endeavors are lack of

knowledge, insufficient training, and failures of process.

Human Resource Management(HRM) is seen by practitioners in the field as a

more innovative view of workplace management than the traditional approach. Its

techniques force the managers of an enterprise to express their goals with

specificity so that they can be understood and undertaken by the workforce, and to

provide the resources needed for them to successfully accomplish their

assignments. As such, HRM techniques, when properly practiced, are expressive of


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the goals and operating practices of the enterprise overall. HRM is also seen by

many to have a key role in risk reduction within organizations.

Synonyms such aspersonnel managementare often used in a more restricted sense

to describe activities that are necessary in the recruiting of a workforce, providing

its members with payroll and benefits, and administrating their work-life needs. So

if we move to actual definitions, Torrington and Hall (1987) define personnel

management as being:

a series of activities which: first enable working people and their employing

organisations to agree about the objectives and nature of their working

relationship and, secondly, ensures that the agreement is fulfilled" (p. 49).

While Miller (1987) suggests that HRM relates to:

".......those decisions and actions which concern the management of employees at

all levels in the business and which are related to the implementation of strategies

directed towards creating and sustaining competitive advantage" (p. 352).

Academic theory

The goal of human resource management is to help an organization to meet

strategic goals by attracting, and maintaining employees and also to manage them

effectively. The key word here perhaps is "fit", i.e. a HRM approach seeks to

ensure a fit between the management of an organization's employees, and theoverall strategic direction of the company (Miller, 1989).

The basic premise of the academic theory ofHRM is that humans are not

machines, therefore we need to have an interdisciplinary examination of people in

the workplace. Fields such as psychology, industrial engineering, industrial,

Legal/Paralegal Studies and organizational psychology, industrial relations,

sociology, and critical theories: postmodernism, post-structuralism play a major

role. Many colleges and universities offer bachelor and master degrees in Human

Resources Management.

One widely used scheme to describe the role ofHRM, developed by Dave Ulrich,

defines 4 fields for the HRM function:[6]

y Strategic business partnery Change management


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y Employee championy Administration

However, many HR functions these days struggle to get beyond the roles of

administration and employee champion, and are seen rather as reactive than

strategically proactive partners for the top management. In addition, HR

organizations also have the difficulty in proving how their activities and processes

add value to the company. Only in the recent years HR scholars and HR

professionals are focusing to develop models that can measure ifHR adds value.

Business practice

Human resources management comprises several processes. Together they are

supposed to achieve the above mentioned goal. These processes can be performed

in an HR department, but some tasks can also be outsourced or performed by line-managers or other departments. When effectively integrated they provide

significant economic benefit to the company.[8]

y Workforce planningy Recruitment (sometimes separated into attraction and selection)y Induction, Orientation and Onboardingy Skills managementy Training and developmenty Personnel administrationy Compensation in wage or salaryy Time managementy Travel management (sometimes assigned to accounting rather than HRM)y Payroll (sometimes assigned to accounting rather than HRM)y Employee benefits administrationy Personnel cost planningy Performance appraisal

Cornell University's School of Industrial and Labor Relations was the world's first

school for college-level study in HRM


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The sort of careers available in HRM are varied. There are generalist HRM jobs

such as human resource assistant. There are careers involved with employment,

recruitment and placement and these are usually conducted by interviewers, EEO

(Equal Employment Opportunity) specialists or college recruiters. Training and

development specialism is often conducted by trainers and orientation specialists.

Compensation and benefits tasks are handled by compensation analysts, salary

administrators, and benefits administrators.

Several universities offer programs of study pertaining to HRM and broader fields.

Cornell University created the world's first school for college-level study in HRM

(ILR School).[9]

University of Illinois at Urbana-Champaign also now has a school

dedicated to the study ofHRM, while several business schools also house a center

or department dedicated to such studies; e.g., University of Minnesota, Michigan

State University, Ohio State University, and Purdue University.

Professional organizations

Professional organizations in HRM include the Society forHuman Resource

Management, the Australian Human Resources Institute (AHRI), the Chartered

Institute of Personnel and Development (CIPD), the International Public

Management Association forHR (IPMA-HR), Management Association of Nepal

(MAN) and the International Personnel Management Association of Canada

(IPMA-Canada), Human Capital Institute (HCI)

Functions

The Human Resources Management (HRM) function includes a variety of

activities, and key among them is deciding what staffing needs you have and

whether to use independent contractors or hire employees to fill these needs,

recruiting and training the best employees, ensuring they are high performers,

dealing with performance issues, and ensuring your personnel and management

practices conform to various regulations. Activities also include managing your

approach to employee benefits and compensation, employee records and personnel

policies. Usually small businesses (for-profit or nonprofit) have to carry out these

activities themselves because they can't yet afford part- or full-time help. However,

they should always ensure that employees haveand are aware ofpersonnel

policies which conform to current regulations. These policies are often in the form

of employee manuals, which all employees have.


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Note that some people distinguish a difference between HRM (a major

management activity) and HRD (Human Resource Development, a profession).

Those people might include HRM in HRD, explaining that HRD includes the

broader range of activities to develop personnel inside of organizations, including,

eg, career development, training, organization development, etc.

There is a long-standing argument about where HR-related functions should be

organized into large organizations, eg, "should HR be in the Organization

Development department or the other way around?"

The HRM function and HRD profession have undergone tremendous change over

the past 2030 years. Many years ago, large organizations looked to the "Personnel

Department," mostly to manage the paperwork around hiring and paying people.

More recently, organizations consider the "HR Department" as playing a major

role in staffing, training and helping to manage people so that people and theorganization are performing at maximum capability in a highly fulfilling manner.


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3. INTRODUCTION OF RECRUITEMENT

Recruitment refers to the process of attracting, screening, and selecting qualified

people for a job at an organization or firm. For some components of the

recruitment process, mid- and large-size organizations often retain professional

recruiters or outsource some of the process to recruitment agencies.

The recruitment industry has five main types of agencies: employment agencies,

recruitment websites and job search engines, "headhunters" for executive and

professional recruitment, niche agencies which specialize in a particular area of

staffing and in-house recruitment. The stages in recruitment include sourcing

candidates by advertising or other methods, and screening and selecting potential

candidates using tests or interviews.

Recruitment is a process of a department in any organisation specially assignedwith the job for eg.: Human Resource Management/Department. The process

starts with the screaching for the jobs vacant with the organisation. Then comes

few steps to cover this process. After having vacancies the HRD look for the right

candidate who can either from with the organisation or outside. Recruitment

involves sourcing of the resumes which are requested to fill the vacancies,

screaning of the resumes received, selecting the suitable candidates matching the

criteria's, conducting interviews, tests etc. shortlisting and putting the right

candidate at the right place.

According to EDWIN B FLIPPO, "Recruitment is the process of searching forprospective employees and stimulating and encouraging them to apply for jobs in

an organisation."

Thus, recruitment enables the organisation to select suitable employees for

different jobs. it is the most important function of the personnel department.

It is concerned with the discovery of the sources of manpower and tapping of

these sources so that the potential employees are properly evaluated and the new

employees are placed and inducted to fill up the vacant position in the

organisation.

Recruitment aims at developing and maintaining adequate supply of labourforce according to the need of the organisation.

According to Edwin B. Flippo, recruitment is the process of searching the

candidates for employment and stimulating them to apply for jobs in the

organisation.Recruitmentis the activity that links the employers and the job


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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 in adequate 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.

3.1 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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3.2 PURPOSE & IMPORTANCE OF RECRUITMENT

The Purpose and Importance of Recruitment are given below:

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.


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4. RECRUITMENT PROCESSThe recruitment and selection is the major function of the human resource

department and recruitment process is the first step towards creating the

competitive strength and the recruitment strategic advantage for the

organisations. Recruitment process involves a systematic procedure from

sourcing the candidates to arranging and conducting the interviews and

requires many resources and time. A general recruitment process is as follows:

Identifying the vacancy:

The recruitment process begins with the human resource department receiving

requisitions forrecruitment from any department of the company. These

contain:

Posts to be filled

Number of persons

Duties to be performed

Qualifications required

y Preparing the job description and person specification.y Locating and developing the sources of required number and type of

employees (Advertising etc).

y Short-listing and identifying the prospective employee with requiredcharacteristics.

y Arranging the interviews with the selected candidates.y Conducting the interview and decision making


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1. Identify vacancy2. Prepare job description and person specification3. Advertising the vacancy4. Managing the response5. Short-listing6. Arrange interviews7. Conducting interview and decision making

The recruitment process is immediately followed by the selection process i.e.

the final interviews and the decision making, conveying the decision and theappointment formalities.


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Maven follows a systematic and rigorous procedure for recruitments, in sync with

the industry practices. Realizing the crucial importance of successful recruitment,

we pursue an organized, efficient and practical methodology.


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To comprehend the specific requirements of our clients, we get acquainted with

their needs by meeting them in person. This gives a crystal clear idea of what is

expected from us and the desired skill-set to be considered before starting our hunt

for the right candidate.

After understanding the roles and responsibilities of the prospective candidate, the

search process starts. A long list of matching resumes are reviewed and selected.

Further short listing of the candidates leaves behind a list of most potential and

appropriate candidates, who meet the desired requirements of the client.

These short listed candidates are contacted and a pre-interview check is conducted.

Meanwhile, the client is informed about the short listed candidates.

Next, our client interviews the most eligible and short listed candidates. Finally,

our clients then inform us about the selected and successful candidates, who are

updated about the positive feedback by us while auto-mailers are sent out to the

rest of the unsuccessful applicants. Once the salary negotiations are over we assistyou with the employee management.


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Recruitment refers to the process of screening, and selecting qualified people for a

job at an organization or firm, or for a vacancy in a volunteer-based some

components of the recruitment process, mid- and large-size organizations and

companies often retain professional recruiters or outsource some of the process to


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recruitment agencies. External recruitment is the process of attracting and selecting

employees from outside the organization.

The recruitment and selection is the major function of the human resource

department and recruitment process is the first step towards creating the

competitive strength and the strategic advantage for the organizations. Recruitment

process involves a systematic procedure from sourcing the candidates to arranging

and conducting the interviews and requires many resources and time. A general

recruitment process is as follows:

Identifying the vacancy:

The recruitment process begins with the human resource department receiving

requisitions for recruitment from any department of the company.

These contain:-- Posts to be filled

-- Number of persons

-- Duties to be performed

-- Qualifications required

Preparing the job description and person specification.

Locating and developing the sources of required number and type of employees

(Advertising etc).

Short-listing and identifying the prospective employee with required

characteristics.

Arranging the interviews with the selected candidates.

Conducting the interview and decision making

Recruitment Process1. Identify vacancy

2. Prepare job description and person specification

3. Advertising the vacancy

4. Managing the response

5. Short-listing

6. Arrange interviews7. Conducting interview and decision making

The recruitment process is immediately followed by the selection process i.e. the

final interviews and the decision making, conveying the decision and the

appointment formalities.


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5. SOURCES OF RECRUITMENTS1. Internal Sources2. External Sources5.1 INTERNAL SOURCES OF RECRUITMENT

Some Internal Sources Of Recruitments are given below:

1. TRANSFERS

The employees are transferred from one department to another according

to their efficiency and experience.

2. PROMOTIONS

The employees are promoted from one department to another with more

benefits and greater responsibility based on efficiency and experience.

3. Others are Upgrading and Demotion of present employees according

to their performance.

4. Retired and Retrenched employees may also be recruited once again

in case of shortage of qualified personnel or increase in load of work.

recruitment such people

save time and costs of the organisations as the people are already aware of

the organisational culture and the policies and procedures.


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5. The dependents and relatives of Deceased employees and Disabled

employees are also done by many companies so that the members of the

family do not become dependent on the mercy of others.

a. Friends and Family- Many experts will advise against hiring friends andfamily. In my opinion friends and family should be treated as any other

potential employee with no favoritism. They should be subject to the same

hiring process as other potential employees to ensure they have the

qualifications for the job. Working with friends or family can be a

disadvantage if they feel they can slack off since they know you. On the

other hand it can be an advantage because since they know you they may be

more motivated to help you succeed.b. Referrals- You can get referals from friends, family, coworkers andacquaintances. Your bound to know somebody who needs a job.


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5.2 EXTERNAL SOURCES OF RECRUITMENT

1. PRESS ADVERTISEMENTS

Advertisements of the vacancy in newspapers and journals are a widely

used source of recruitment. The main advantage of this method is that it

has a wide reach.

2. EDUCATIONAL INSTITUTES

Various management institutes, engineering colleges, medical Colleges

etc. are a good source of recruiting well qualified executives, engineers,

medical staff etc. They provide facilities for campus interviews and

placements. This source is known as Campus Recruitment.

3. PLACEMENT AGENCIES

Several private consultancy firms perform recruitment functions on

behalf of client companies by charging a fee. These

agencies are particularly suitable forrecruitment of executives and specialists.

It is also known as RPO (Recruitment Process Outsourcing)

4. EMPLOYMENT EXCHANGESGovernment establishes public employment exchanges throughout thecountry. These exchanges provide job information to job seekers and

help employers in identifying suitable candidates.


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5. LABOUR CONTRACTORSManual workers can be recruited through contractors who maintain close

contacts with the sources of such workers. This source is used to recruit

labour for construction jobs.

6. UNSOLICITED APPLICANTSMany job seekers visit the office of well-known companies on their

own. Such callers are considered nuisance to the daily work routine of

the enterprise. But can help in creating the talent pool or the database of

the probable candidates for the organisation.

7. EMPLOYEE REFERRALS / RECOMMENDATIONSMany organisations have structured system where the current employees

of the organisation can refer their friends and relatives for some position

in their organisation. Also, the office bearers of trade unions are often

aware of the suitability of candidates. Recruitment Management can

inquire these leaders for suitable jobs. In some organizations these are

formal agreements to give priority in recruitment to the candidates

recommended by the trade union.

8. RECRUITMENT AT FACTORY GATEUnskilled workers may be recruited at the factory gate these may beemployed whenever a permanent worker is absent. More efficient

among these may be recruited to fill permanent vacancies.


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6. FACTORS AFFECTING RECRUITMENT

The recruitment function of the organisations is affected and governed by amix of various internal and external forces. The internal forces or factors are

the factors that can be controlled by the organisation. And the external

factors are those factors which cannot be controlled by the organisation. The

internal and external forces affecting recruitment function of an

organisation are:

FACTORS AFFECTING RECRUITMENT


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6.1 INTERNAL FACTORS AFFECTING RECRUITMENTThe internal factors or forces which affecting recruitmentand can be

controlled by the organisation are

1. RECRUITMENT POLICY

The recruitment policy of an organisation specifies the objectives of

recruitment and provides a framework for implementation of recruitment

programme. It may involve organizational system to be developed for

implementing recruitment programmes and procedures by filling up vacancies

with best qualified people.

FACTORS AFFECTING RECRUITMENT POLICY

Organizational objectives

Personnel policies of the organization and its competitors.

Government policies on reservations.

Preferred sources of recruitment.

Need of the organization.

Recruitment costs and financial implications.

2.HUMAN RESOURCE PLANNINGEffective human resource planning helps in determining the gaps present inthe existing manpower of the organization. It also helps in determining the

number of employees to be recruited and what qualification they must

possess.

3. SIZE OF THE FIRMThe size of the firm is an important factor in recruitment process. If the

organization is planning to increase its operations and expand its business, it

will think of hiring more personnel, which will handle its operations.

4.

COSTRecruitment incur cost to the employer, therefore, organizations try to

employ that source of recruitment which will bear a lower cost of

recruitment to the organization for each candidate.

5. GROWTH AND EXPANSIONOrganization will employ or think of employing more personnel if it is


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expanding its operations.

6.2 EXTERNAL FACTORS AFFECTING RECRUITMENT

he external factors which affecting recruitmentare the forces which cannot

be controlled by the organisation. The major external forces are:

1. SUPPLY AND DEMANDThe availability of manpower both within and outside the organization is an

important determinant in the recruitment process. If the company has a

demand for more professionals and there is limited supply in the market for

the professionals demanded by the company, then the company will have to

depend upon internal sources by providing them special training and

development programs.

2. LABOUR MARKET

Employment conditions in the community where the organization is located

willinfluence the recruiting efforts of the organization. If there is surplus of

manpower at the time of recruitment, even informal attempts at the time of

recruiting like notice boards display of the requisition or announcement in the

meeting etc will attract more than enough applicants.

3. IMAGE / GOODWILLImage of the employer can work as a potential constraint forrecruitment. An

organization with positive image and goodwill as an employer finds it easier

to attract and retain employees than an organization with negative image.Image of a company is based on what organization does and affected by

industry. For example finance was taken up by fresher MBAs when many

finance companies were coming up.

4. POLITICAL-SOCIAL- LEGAL ENVIRONMENTVarious government regulations prohibiting discrimination in hiring and


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employment have direct impact on recruitment practices. For example,

Government of India has introduced legislation for reservation in

employment for scheduled castes, scheduled tribes, physically

handicapped etc. Also, trade unions play important role in recruitment.

This restricts management freedom to select those individuals who it

believes would be the best performers. If the candidate cant meet criteria

stipulated by the union but union regulations can restrict recruitment

sources.

5. UNEMPLOYMENT RATEOne of the factors that influence the availability of applicants is the

growth of the economy (whether economy is growing or not and its rate).

When the company is not creating new jobs, there is often oversupply of

qualified labour which in turn leads to unemployment.

6. COMPETITORSThe recruitment policies of the competitors also effect the recruitment

function of the organisations. To face the competition, many a times the

organisations have to change their recruitment policies according to the

policies being followed by the competitors.


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7. RECRUITMENT POLICY OF A COMPANY

In todays rapidly changing business environment, a well defined recruitment

policy is necessary for organizations to respond to its human resource

requirements in time. Therefore, it is important to have a clear and concise

recruitment policy in place, which can be executed effectively to recruit the

best talent pool for the selection of the right candidate at the right place

quickly. Creating a suitable recruitment policy is the first step in the

efficient hiring process. A clear and concise recruitment policy helps ensure a

sound recruitment process.

It specifies the objectives of recruitment and provides a framework forimplementation of recruitment programme. It may involve organizational

system to be developed for

implementing recruitment programmes and procedures by filling up vacancies

with best qualified people.

7.1 COMPONENTS OF THE RECRUITMENT POLICY

y The general recruitment policies and terms of the organisationy Recruitment services of consultantsy Recruitment of temporary employeesy Unique recruitment situationsy The selection processy The job descriptionsy The terms and conditions of the employment

A recruitment policy of an organisation should be such that:

y It should focus on recruiting the best potential people.y To ensure that every applicant and employee is treated equally with


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dignity and respect.

y Unbiased policy.y To aid and encourage employees in realizing their full potential.y Transparent, task oriented and merit based selection.y Weightage during selection given to factors that suit organization needs.y Optimization of manpower at the time of selection process.y Defining the competent authority to approve each selection.y Abides by relevant public policy and legislation on hiring and

employment relationship.

y Integrates employee needs with the organisational needs.

7.2 FACTORS AFFECTING RECRUITMENT POLICY

y Organizational objectivesy Personnel policies of the organization and its competitors.y Government policies on reservations.y Preferred sources of recruitment.y Need of the organization.y Recruitment costs and financial implications.


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8.RECENT TRENDS IN RECRUITMENT

The following trends are being seen in recruitment:

8.1 OUTSOURCING

In India, the HR processes are being outsourced from more than a decade

now. A company may draw required personnel from outsourcing firms. The

outsourcing firms help the organisation by the initial screening of the

candidates according to the needs of the organisation and creating a suitable

pool of talent for the final selection by the organisation. Outsourcing firmsdevelop their human resource pool by employing people for them and make

available personnel to various companies as per their needs. In turn, the

outsourcing firms or the intermediaries charge the organisations for their

services. Recruitment Process Outsourcing is a form of business process

outsourcing (BPO) where an employer outsources or transfers all or part of its

recruitment activities to an external service provider.

The Recruitment Process Outsourcing Association defines RPO as follows:

"when a provider acts as a company's internal recruitment function for a

portion or all of its jobs. RPO providers manage the entire recruiting/hiringprocess from job profiling through the on-boarding of the new hire, including

staff, technology, method and reporting. A properly managed RPO will

improve a company's time to hire, increase the quality of the candidate pool,

provide verifiable metrics, reduce cost and improve governmental

compliance."[1]

The RPO Alliance, a group of the Human Resources Outsourcing Association

(HROA), approved this definition in February 2009: "Recruitment Process

Outsourcing (RPO) is a form of business process outsourcing (BPO) where an

employer transfers all or part of its recruitment processes to an external

service provider. An RPO provider can provide its own or may assume the

company's staff, technology, methodologies and reporting. In all cases, RPO

differs greatly from providers such as staffing companies and

contingent/retained search providers in that it assumes ownership of the

design and management of the recruitment process and the responsibility o


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results."

Occasional recruitment support, for example temporary, contingency and

executive search services is more analogous to out-tasking, co-sourcing or just

sourcing. In this example the service provider is "a" source for certain types o

recruitment activity. The biggest distinction between RPO and other types o

staffing is Process. In RPO the service provider assumes ownership of the

process, while in other types of staffing the service provider is part of a

process controlled by the organization buying their services.

History

While temporary, contingency and executive search firms have provided

staffing services for many decades, the concept of an employer outsourcing

the management and ownership of part or all of their recruiting process wasn't

first realized on a consistent basis until the 1970s in Silicon Valley's highly

competitive high tech labor market. Fast-growing high tech companies were

hard-pressed to locate and hire the technical specialists they required, and so

had little choice but to pay large fees to highly specialized external recruiters

in order to staff their projects. Over time, companies began to examine how

they might reduce the growing expenses of recruitment fees while still hiringhard-to-find technical specialists. Toward this end, companies began to

examine the various steps in the recruiting process with an eye toward

outsourcing only those portions that they had the greatest difficulty with and

that added the greatest value to them. Initial RPO programs typically consisted

of companies purchasing lists of potential candidates from RPO vendors. This

"search/research" function, as it was called, generated names of competitors'

employees for a company and served to augment the pool of potential

candidates from which that company could hire.

Over time, as business in general embraced the concept of outsourcing moreand more, RPO gained favor among Human Resource management: not only

did RPO reduce overhead costs from their budgets but it also helped improve

the company's competitive advantage in the labor market. As labor markets

became more and more competitive, RPO became more of an acceptable

option. Furthermore, through the advent in the 1980's and 1990's of human


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resources outsourcing (HRO) companies that began taking on the processes

associated with benefits, taxes, and payroll, companies began recognizing that

recruiting--a significant cost of HR--should also be considered for

outsourcing. In the early 2000's more companies began considering the

outsourcing of recruitment for major portions of their recruiting need.

There have been fundamental changes in the US labor market that serve to

reinforce the use of RPO as well. The labor market has become increasingly

dynamic: workers today change employers more often than in previous

generations. De-regulated labor markets have also created a shift towards

contract and part-time labor and shorter work tenures. These trends increase

recruitment activity and may encourage the use of RPO. It should also be

noted that even in slower economic times or higher unemployment, RPO is

still considered by companies to assist in an increasing need to screen through

a larger candidate pool.

Benefits

RPO's promoters claim that the solution offers improvement in quality, cost,

service and speed.

RPO providers claim that leveraging economies of scale enables them to offer

recruitment processes at lower cost while economies of scope allow them to

operate as high-quality specialists. Those economies of scale and scope arise

from a larger staff of recruiters, databases of candidate resumes, and

investment in recruitment tools and networks.

RPO solutions are also claimed to change fixed investment costs into variable

costs that vary with fluctuation in recruitment activity. Companies may pay by

transaction rather than by staff member, thus avoiding under-utilization or

forcing costly layoffs of recruitment staff when activity is low.

Problems

If a company failed to define its overall recruitment strategy and hiring

objectives, then any recruiting program may fail to meet the company's needs.

This is especially true for outsourced programs like RPO: RPO can only

succeed in the context of a well-defined corporate and staffing strategy.


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As with any program, a company must manage its RPO activities. A company

must provide initial direction and continued monitoring to assure the desired

results. Overall, providing guidance to external activities can present a

significant management challenge. Outsourcing of company processes may

fail or prove a poor organizational fit. Improperly implemented RPO could

reduce the effectiveness of recruitment.

The costs charged for outsourced recruitment transactions may total more than

the cost of the internal recruitment department.

RPO service providers may fail to provide the quality or volume of staf

required by their customers.

Placing all recruitment in the hands of a single outside provider may

discourage the competition that would arise if multiple recruitment agencieswere used.

An RPO solution may not work if the company's existing recruitment

processes are performing poorly. An RPO solution may not work if the

service provider has inadequate recruitment processes or procedures to work

with the client.

RPO may not resolve difficulties that organizations have hiring staff when the

organization is perceived negatively by potential employees. This will instead

require improved branding and an adjustment of image. The perception is thatvery few RPOs can successfully integrate their client's brand and therefore do

not represent their client's brand as well as a retained search or internal

recruiting resource may drive brand representation and or marketing.

Further, most RPOs perform their staffing functions and service offsite,

further disconnecting the client's growth & recruiting strategy from the actual

workforce within the client company. This is important because during a

period of rapid recruitment growth, one of the many positive effects that a

company typically enjoys is an increase in the workforce wellness or an

overall workforce positivity of sentiment of optimism that comes withpersonnel additions... this may be lessened with an offsite recruiting function.

Organizations with efficient hiring process that are viewed as employers o

choice by potential staff may stand to gain negligible benefits from RPO.


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Advantages of outsourcing are:

1. Company need not plan for human resources much in advance.2. Value creation, operational flexibility and competitive advantage3. turning the management's focus to strategic level processes ofHRM4. Company is free from salary negotiations, weeding the unsuitable

resumes/candidates.

5. Company can save a lot of its resources and time8.2 POACHING/RAIDING

Buying talent (rather than developing it) is the latest mantra being

followed by the organisations today. Poaching means employing a

competent and experienced person already working with another reputed

company in the same or different industry; the organisation might be a

competitor in the industry. A company can attract talent from another firm

by offering attractive pay packages and other terms and conditions, better

than the current employer of the candidate. But it is seen as an unethical

practice and not openly talked about. Indian software and the retail sector

are the sectors facing the most severe brunt of poaching today. It has

become a challenge for human resource managers to face and tackle

poaching, as it weakens the competitive strength of the firm.

8.3E-RECRUITMENTMany big organizations use Internet as a source of recruitment. E-

recruitment is the use of technology to assist the recruitment process. They

advertise job vacancies through worldwide web. The job seekers send theirapplications or curriculum vitae i.e. CV through e mail using the Internet.

Alternatively job seekers place their CVs in worldwide web, which can be

drawn by prospective employees depending upon their requirements.


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y Advantages of recruitment are:o Low cost.o No intermediarieso Reduction in time for recruitment.o Recruitment of right type of people.o Efficiency of recruitment process.

The buzzword and the latest trends in recruitment is the E-Recruitment .

Also known as Online recruitment , it is the use of technology or the web

based tools to assist the recruitment processes. The tool can be either a job

website like naukri.com, the organisations corporate web site or its own

intranet. Many big and small organizations are using Internet as a source o

recruitment. They advertise job vacancies through worldwide web. The job

seekers send their applications or curriculum vitae (CV) through an e-mail

using the Internet. Alternatively job seekers place their CVs in worldwide

web, which can be drawn by prospective employees depending upon their

requirements.

The internet penetration in India is increasing and has tremendous potential.

According to a study by NASSCOM Jobs is among the top reasons why new

users will come on to the internet, besides e-mail. There are more than 18

million resumes floating online across the world.

The two kinds of e-recruitment that an organisation can use is

8.4 Job portals i.e. posting the position with the job description and the job

specification on the job portal and also searching for the suitable resumesposted on the site corresponding to the opening in the organisation.

Creating a complete online recruitment/application section in the companies

own website. - Companies have added an application system to its website,

where the passive job seekers can submit their resumes into the database of


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the organisation for consideration in future, as and when the roles become

available.

8.5 Resume Scanners: Resume scanner is one major benefit provided by the

job portals to the organisations. It enables the employees to screen and filter the

resumes through pre-defined criterias and requirements (skills, qualifications,

experience, payroll etc.) of the job.

Job sites provide a 24*7 access to the database of the resumes to the employees

facilitating the just-in-time hiring by the organisations. Also, the jobs can be

posted on the site almost immediately and is also cheaper than advertising in

the employment newspapers. Sometimes companies can get valuable references

through the passers-by applicants. Online recruitment helps the organisations

to automate the recruitment process, save their time and costs on recruitments.

8.6 Online recruitment techniques

y Giving a detailed job description and job specifications in the jobpostings to attract candidates with the right skill sets and qualifications at

the first stage.

y E-recruitment should be incorporated into the overall recruitmentstrategy of the organisation.

y A well defined and structured applicant tracking system should beintegrated and the system should have a back-end support.

y Along with the back-office support a comprehensive website to receiveand process job applications (through direct or online advertising) should

be developed.

Therefore, to conclude, it can be said that e-recruitment is the Evolving face of

recruitment.


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9.TYPES OF JOB SEEKERS

Types Of Job Seekers

1. Quid Pro QueThese are the people who say that I can do this for you, what can you give

me These people value high responsibilities, higher risks, and expect higher

rewards, personal development and company profiles doesnt matter to them.

2. I will be with youThese people like to be with big brands. Importance is given to brands. They

are not bothered about work ethic, culture mission etc.

3. I will do you what you wantThese people are concerned about how meaningful the job is and they define

meaning parameters criteria known by previous job.

4. Where do you want me to come

These people observe things like where is your office, what atmosphere do you

offer. Career prospects and exciting projects dont entice them as much. It is the

responsibility of the recruiter to decide what the employee might face in given

job and thus take decision. A good decision will help cut down employee

retention costs and future recruitment costs.

9.1 RECRUITMENT MANAGEMENT SYSTEM

Recruitment management system is the comprehensive tool to manage the

entire recruitment processes of an organisation. It is one of the technological

tools facilitated by the information management systems to the HR o

organisations. Just like performance management, payroll and other systems,

Recruitment management system helps to contour the recruitment processes

and effectively managing the ROI on recruitment.

The features, functions and major benefits of the recruitment management


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system are explained below:

y Structure and systematically organize the entire recruitment processes.y Recruitment management system facilitates faster, unbiased, accurateand reliable processing of applications from various applications.

y Helps to reduce the time-per-hire and cost-per-hire.y Recruitment management system helps to incorporate and integrate thevarious links like the application system on the official website of the company,

the unsolicited applications, outsourcing recruitment, the final decision

making to the main recruitment process.

y Recruitment management system maintains an automated active databaseof the applicants facilitating the talent management and increasing theefficiency of the recruitment processes.

y Recruitment management system provides and a flexible, automated andinteractive interface between the online application system, the recruitment

department of the company and the job seeker.

y Offers tolls and support to enhance productivity, solutions andoptimizing the recruitment processes to ensure improved ROI.

yRecruitment management system helps to communicate and createhealthy relationships with the candidates through the entire recruitment

process.

The Recruitment Management System (RMS) is an innovative information

system tool which helps to sane the time and costs of the recruiters and

improving the recruitment processes.


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9.2 ROI ON RECRUITMENT

Before making any investment, every organisation would want to evaluate

the investment by answering the following questions in quantifiable terms:

What are the costs and the corresponding and related risks on the

investment?

What are the expected returns of the investment?

What is the expected pay-back period of the investment?

An organisation makes a tremendous amount of investment in its

recruitment processes.

A lot of resources like time and money are spent on recruitment processes

of an organisation. But assessing or quantifying the returns on the

recruitment process, or, calculating the return on investment (ROI) on

recruitment is a complicated task for an organisation. Indeed, it is difficult

to judge the success of their recruitment processes. Instead, recruitment is

one activity that continues in an organisation without anyone ever realizing

its worth or measuring its impact on the organisations business.

According to a survey, 38 % of organisations do not prepare or produce any

kind of documents or reports on their The recruitment processes, and there


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is no accountability of the HR department for the costs incurred and the

opportunities missed.

With the increasing strategic focus on the human resources, more and more

organisations are adopting one or the other way for calculating the ROI on

its recruitments. Many organisations are examining theirHR functions and

processes and are trying to quantify their results and returns.

A recruitment professional or manager can calculate and maximize the

return on investments on its organisations recruitment by

y Clear definition of the results to be achieved from recruitment.y Developing methods and ways measuring the results like the time to

hire, cost-Per-Hire and effectiveness of the recruitment source etc.

y Estimating the costs associated with the recruitment projecty Estimating the tangible and intangible benefits to the organization

including the payback period of the recruitments.

y Providing and ensuring proper training and development of therecruitment professionals.

Assessing theROI on recruitments can assist an organisation to strengthen its

HR processes, improving its recruitment function and to build a strategic

human resource advantage for the organisation.


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10.RECRUITMENT PROCESS IN TOP ORGANISATIONS ININDIAN INDUSTRY

10.1 RECRUITMENT STRATEGIESRecruitment is of the most crucial roles of the human resource

professionals. The level of performance of and organisation depends on the

effectiveness of its recruitment function. Organisations have developed and

follow recruitment strategies to hire the best talent for their organisation and

to utilize their resources optimally. A successful recruitment strategy

should be well planned and practical to attract more and good talent to apply

in the organisation.

For formulating an effective and successful recruitment strategy, the strategy

should cover the following elements:

1. Identifying and prioritizing jobsrecruitment keep arising at various levels in every organisation; it is

almost a never-ending process. It is impossible to fill all the positions

immediately. Therefore, there is a need to identify the positions requiring

immediate attention and action. To maintain the quality of the recruitment

activities, it is useful to prioritize the vacancies whether to focus on all

vacancies equally or focusing on key jobs first.

2. Candidates to targetThe recruitment process can be effective only if the organisation

completely understands the requirements of the type of candidates that are

required and will be beneficial for the organisation. This covers the


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following parameters as well:

o Performance level required: Different strategies are required forfocusing on hiring high performers and average performers.

o Experience level required: the strategy should be clear as to what isthe experience level required by the organisation. The candidates

experience can range from being a fresher to experienced senior

professionals.

o Category of the candidate: the strategy should clearly define thetarget candidate. He/she can be from the same industry, different

industry, unemployed, top performers of the industry etc.

3. Sources of recruitmentThe strategy should define various sources (external and internal) of

recruitment. Which are the sources to be used and focused for the

recruitment purposes for various positions. Employee referral is one of

the most effective sources of recruitment.

4. Trained recruitersThe recruitment professionals conducting the interviews and the other

recruitment activities should be well-trained and experienced to conductthe activities. They should also be aware of the major parameters and

skills (e.g.: behavioural, technical etc.) to focus while interviewing and

selecting a candidate.

5. How to evaluate the candidatesThe various parameters and the ways to judge them i.e. the entire

recruitment process should be planned in advance. Like the rounds of

technical interviews, HR interviews, written tests, psychometric tests etc.


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10.2 HR CHALLENGES IN RECRUITMENT

Recruitment is a function that requires business perspective, expertise, abilityto find and match the best potential candidate for the organisation, diplomacy,

marketing skills (as to sell the position to the candidate) and wisdom to align

the recruitment processes for the benefit of the organisation. The HR

professionals handling the recruitment function of the organisation- are

constantly facing new challenges in Recruitment. The biggestHR challenge

in Recruitmentfor such professionals is to source or recruit the best people or

potential candidate for the organisation.

In the last few years, the job market has undergone some fundamental changes

in terms of technologies, sources of recruitment, competition in the market

etc. In an already saturated job market, where the practices like poaching and

raiding are gaining momentum.

HR professionals are constantly facing new challenges in one of their most

important function- recruitment. They have to face and conquer various

challenges to find the best candidates for their organisations.

The majorchallenges faced by the HRin recruitment are:

y Adaptability to globalization The HR professionals are expected andrequired to keep in tune with the changing times, i.e. the changes taking

place across the globe. HR should maintain the timeliness of the process

y Lack of motivation Recruitment is considered to be a thankless job.Even if the organisation is achieving results, HR department or

professionals are not thanked for recruiting the right employees and

performers.

y Process analysis The immediacy and speed of the recruitment processare the main concerns of the HR in recruitment. The process should be


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flexible, adaptive and responsive to the immediate requirements. The

recruitment process should also be cost effective.

y Strategic prioritization The emerging new systems are both anopportunity as well as a challenge for the HR professionals. Therefore,

reviewing staffing needs and prioritizing the tasks to meet the changes inthe market has become a challenge for the recruitment professionals.

10.3 RECRUITING EXPATRIATESExpatriate is a person who leaves his country to work and live in a foreign

country. Generally, expatriates are the nationals from the other countries than

the host and the MNCs parent country, i.e. expatriates are the third country

nationals.

The unavailability of the required skills and talents takes the organisation to

source talent from other countries. The procedures and processes of

recruiting and selecting the human resources are never uniform even within a

single organisation. The procedures vary according to the post, the skill set

required, the nature of work etc. More of it is seen in the case of recruitment

of expatriates. The recruitment and selection procedures and considerationsare drastically different for expatriates than that

of the domestic employees. Recruitment of expatriates involves greater time,

monetary resources and other indirect costs. Improper recruitment and selection

can cause the expatriates to return hastily or a decline in their performance.

A mismatch between job (its requirements) and people can reduce the

effectiveness of other human resource activities and can affect the performance

of the employees as well as the organisation.

Recruiting expatriates require special considerations and skills to select the

best person for the job. Except for a few expatriate selection policies, the

expatriate selection criterion is generally organisation and nation specific.

The recruiters for recruiting the expatriates should be carefully selected and

trained. The recruitment strategies for expatriates should be aligned with


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requirements of the job. The interviews of expatriates are designed in a manner

to judge their:

y Adaptability to the new culturey Intercultural interactiony Flexibilityy Professional expertisey Past international work experiencey Tolerance and open-mindednessy Family situationy Language abilityy Attitude and motivationy Empathy towards local culture

A few researches in this field also suggest that women are morel likely to be

successful in certain positions as expatriates as they are more sensitive towardsnew culture and people. recruitment of expatriates should be followed by

cultural and sensitivity training, and language training.

10.4HEAD HUNTING

Headhunting refers to the approach of finding and attracting the bestexperienced person with the required skill set. Headhunting is also a

recruitment process involves convincing the person to join your organization.


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forms of recruitmentpractices according to the specific needs of the

organisation. The organisations can choose from the centralized or

decentralized forms of recruitment, explained below:

CENTRALIZED RECRUITMENT

The recruitment practices of an organisation are centralized when the HR /

recruitment department at the head office performs all functions of

recruitment. Recruitment decisions for all the business verticals and

departments of an organisation are carried

out by the one central HR (or recruitment) department. Centralized from of

recruitment is commonly seen in government organisations.

Benefits of the centralized form of recruitment are:

y Reduces administration costsy Better utilization of specialistsy Uniformity in recruitmenty Interchangeability of staffy Reduces favoritismy Every department sends requisitions for recruitment to their central office

DECENTRALIZED RECRUITMENT

Decentralized recruitment practices are most commonly seen in the case of

conglomerates operating in different and diverse business areas. With diverse

and geographically spread business areas and offices, it becomes important to

understand the needs of each department and frame the recruitment policies

and procedures accordingly. Each department carries out its own recruitment.

Choice between the two will depend upon management philosophy and needsof particular organization. In some cases combination of both is used. Lower

level staffs as well as top level executives are recruited in a decentralized

manner.


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10.6 EQUAL EMPLOYMENT OPPORTUNITYEqual employment opportunity refers to the approach of the employers to

ensure the practice of being fair and impartial in the employment process.

*The term "Equal Opportunity Employment" was first given by President

Lyndon B. Johnson when he signed Executive Order 11246 which was created

to prohibit federal contractors from discriminating against employees on the

basis of race, sex, creed, religion, color, or national origin*. The scope of the

order also covered the discrimination on the basis of the minority status.

Discrimination in employment

Discrimination refers to the any kind of prejudice, biasness or favoritism on the

basis of

y disabilityy racey agey sexy sexualityy pregnancyy Marital status

in employment. No person should be treated less favourably than any other on

the basis of the specified issues above. Many countries (like SA) have already

implemented Equal Opportunity Act, making it against the law to treat anybody

unfairly.

Diversity in workforce

With the globalization and the increasing size of the organisations, the diversityin the workforce is increasing i.e. people from diverse backgrounds,

educational background, age groups, race, gender, abilities etc come together to

work for one organisation and common objectives. Therefore, it is the

responsibility of the employer to create an equality-based and discrimination-

free working environment and practices.


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Equal opportunity means treating people equally and fairly irrespective of their

race, religion, sex, age, disability etc. Giving women an equal treatment and

access to opportunities at the workplace. Any employee should be ill-treated or

harassed by the employer or other employees.

Equal Employment Opportunity principles help to realize and respect the actual

worth of the individual on the basis of his knowledge, skills, abilities and merit.

And the policy should cover all the employees of an organisation whether

permanent or temporary, contractual etc.

Equal employment opportunity is necessary to ensure:

y To give fair access to the people of all development opportunitiesy To create a fair organisation, industry and society.y To encourage and give disadvantaged or disabled people a fair chance to

grow with the society


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11. RECRUITMENT PROCESS IN INDIAThe recruitment process in India is designed in such a way that each

candidate gets the desired job profile according to his or her own choice.

Placing the candidate in the right job profile, in the best company, is the end

solution of most of the Indian recruitment agencies.

The recruitment process in India involves identifying the vacancies,

preparing the job description and person specification, advertising, managing

the response, short-listing, arranging interviews, conducting interviews,

decision making, convey the decision and appointment action. This means

that a lot of time and resources have to be invested before the right candidate

is selected.

Most of the recruitment companies in India follow three steps in the

recruitment process, which basically are application short listing,

preliminary assessment and final interview & selection.

The recruitment process may include a written test to judge particular skills

of a candidate. In this case, the test should be prepared carefully, not

deviating from the subject. A lot can be judged about the candidate from his

CV. A proper presentation of his CV in an organized and refined manner

speaks a lot about the individual. His mindset and attitude can be judged

according to his CV.

Next come the interview, which is an important and crucial part of the

recruitment process. The person taking the interview of the candidate has to

be well prepared in advance. Concerns like the location of the interview, the

time table, the structure of the question strategy, style of taking the interview

needs to be decided beforehand so that nothing is left out and all the issues

are properly addressed.

Moreover, there are a few things that need to be kept in mind during the

recruitment process. Until the final decision about a certain candidate is

taken, it is important to keep in regular touch with the candidate. The

decision making process should not take very long to avoid the candidate

from taking up some other opportunity. A candidate should be duly informed


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once the decision is taken. He or she should be told the complete process of

his appointment clearly with details of all the documents that he or she needs

to submit. A record file should be maintained of the candidate for future

reference.

The recruitment process must be robust and justifiable and should stand up

to external scrutiny. Only a good recruitment agency with good

understanding of the domain as well as the process can perform the same

successfully. In India most of the recruitment agencies understand the needs

of the clients and of the candidates and they work in a planned way to recruit

people.


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12. RECRUITING STARS: TOP TEN IDEAS FORRECRUITING GREAT CANDIDATES

Looking for talent? The smartest employers, who hire the best people, recruit a

pre-qualified candidate pool of potential employees before they need to fill a job.

Or, as Harvey Mackay, well-known, irreverent, author and speaker, says about

networking, Dig Your Well, Before You're Thirsty (Compare Prices).

You can develop relationships with potential candidates long before you need

them. These ideas will also help you in recruiting a large pool of candidates when

you have a current position available. Read on to discover the best ways to developyour talent pool and recruit employees.

The earlier you adopt these practices, the better your organization will do in the

upcoming war for talent. (And, trust me, you will experience wars for talent as the

baby boomer generation retires.) Read on to discover the best ways to develop

your talent pool.

12.1 Recruiting Your Ideal CandidateA job description that tells potential employees the exact requirements of the

position is useful. Even more useful is the process you use to develop the job

description internally and the behavioral characteristics of your ideal candidate.

Assemble a team of people who represent the best qualities of the people who

currently hold the same or a similar position. Include the hiring manager.

Develop a job description that delineates the key responsibilities and outputs of the

position. Then, define the behavioral characteristics of the person you feel is your

ideal candidate. Finally, list your five - ten key responsibilities and characteristics

you will use to screen resumes, perform phone screens and eventually, establishthe questions for the candidates you interview.

Sound like a lot of effort? It is. But, you'll have a much better idea about the

characteristics of the ideal candidate you want to attract to your company when

you do this planning via email or a recruiting planning meeting.


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12.2 Tap Your Employee Networks in Recru

Introduction of Recruitments

Documents

Transcript of Introduction of Recruitments