Chapter 4 – Recruitment and selection

Recruitment is the process of seeking and attracting a pool of people from which
candidates for job vacancies can be chosen.

Internal sources of recruitment

a) Promotion:
Promotion is the vertical movement of employee in the organizational
hierarchy of structure. HRI provides sufficient information about the capable
employees for the promotion.

b) Transfer:
Transfer is the horizontal movement of the employee from one job to another
at the same level. This could be the best method for broadening the
knowledge of employees.

c) Rehiring:
Skilled employees who had left the organization can be rejoined in the vacant
post as the internal source of the recruitment. Downsizing or restructuring
makes the cut-off or laid off of the employees which can be rejoined as
rehiring.

d) Job rotation:
Job rotation changes the current job of the employee into another. This
provides the knowledge of different jobs to the employee. This source is used
to expose the management trainee to provide almost all knowledge of the
organization as well as to cover the vacant post internally.

Internal methods of recruitment

a) Job posting:
Job posting is an invitation to all the working employees for the vacant post
of the organization. Description of the vacant job is announced and circular
through different means i.e., bulletin board, magazine, email etc. This
method provides opportunity to all the employees.

b) Employee referrals:
In this method, the candidate for the vacant post is referred by the seniors.
Informal communication between the senior managers selects the qualified
and skilled employee for the vacant post. Through this method only
employee in favor of manager get chance to get the position.

c) HRI search:
 HRI provides all the sufficient information about employees currently
working. Manager uses the information from HRI to search the capable
employee from the organization for the vacant post. This is quicker and fair
method for the recruitment internally.

Advantages of internal recruiting

a) Better selection:
Good candidate can be selected from the known candidate working in an
organization. So best one can be promoted for the organization.
b) Morale Building:
If an organization has the provision for the promotion, this help in building
morale of employees and they get motivated in an organization.
c) Adaptability:
Currently working employees do not need time for the adaptation in an
organization. So, it’s advantageous to have internal recruitment.
d) Cost-efficiency:
It’s less costly for the recruitment from internal sources as it need low cost
for the training and the other.

Disadvantages of internal recruiting

a) Limited choice:
There are limited employees for the selection among the currently working in
an organization. Employees may not have skills needed for the job.
b) In-breeding:
Only in-build knowledge and ideas contains with employees working
currently. Organization lacks new ideas and knowledge.
c) Favoritism:
Only those employees who are in favor of manager get chance to take part in
internal recruitment.
d) Seniority based:
Seniors get chance for the promotion in an organization but those who
performs best may not get chance for promotion or other. This causes the
morale down of the meritorious employees.

External sources of recruitment

a) Employment exchange:
By maintaining the databank of job seeker and job vacancies, such
employment exchange program provides the list of suitable candidates to the
prospective employers.
 b) Private employment agencies:
Such agencies collect the information of the suitable applicants and charge
some for their service. They publish vacancies and also perform shortlisting,
selection and placement.

c) Educational institutions:
These institutions provide fresh educated and trained individual who lacks the
work experiences. Usually, employers visit educational institutions for
publication of their vacancies and they likely to hire for their organization.

d) Unsolicited application:
Some possible candidate might submit their resume through the mail, email
or internet forms for the application of vacant post of the organization. Some
may come to the HR department to drop their bio data. This is also a good
source for recruitment.

External methods of recruitment

a) Advertisement:
Advertising job vacancy is one of the best methods of external recruitment.
The different media for advertising like newspaper, poster, FM radio or
television can be chosen according to the area to be covered. Through the
advertisement in different media, a large pool of capable candidates can be
collected.

b) Employee referrals:
Through this method, currently working employees recommend their
relatives or friends who have got sufficient qualifications for the vacant post
of the organization. This is word of mouth recruitment.

c) Universities and institutions:

In this method, either educational institution send the bio-data of final year
students of graduate or post-graduate level to the organization or
representative from the organization comes to the institution for collecting
information of capable student for the vacant post.

d) Internet search:
In the modern technological era, information of the possible candidate can be
made available through the internet. Different recruitment websites provides
information of the technological employees. This is a faster method of
recruitment.
Advantages of external recruitment

a) Qualitative HRs:
External recruitment is the good source that provides pool of large group of
qualified HR. Among them best and suitable qualified HR can be selected.
b) Environmental Adaptation:
For coping with changing technology and other environmental changes new
people from outside the organization is needed. They bring new knowledge,
ideas, and skills for making the adaptation with environment.
c) Fairness in recruitment:
There is no favoritism, and other reservation on external recruitment. So, it
is one of the fair methods of recruitment.
d) Organizational upgrading:
Organization get chance to upgrade with new employees from outside with
new knowledge, skills and ideas. This is one of the advantages of external
recruitment.

Disadvantages of external recruitment

a) High cost:
It’s costly for attracting the skilled and potential candidate as compared to
the internal recruitment.
b) Poor employee morale:
Employees gets dissatisfied as their promotion is stopped by new entrants.
This adversely affects the morale of existing employees.
c) Wrong selection:
External recruitment may lead to wrong selection of employees which affects
the effectiveness of the organization.
d) Adaptability problem:
For adjusting to the new employees in an organization it takes some time as
well as some employee is difficult to adapt. Training and orientation programs
are needed.

Recruitment process

a) Recruitment planning:
HR planning helps HR manager to plan what kind and number of people are
to be hired in the future by publishing vacancies. Job analysis and design
provides necessary information to plan about recruitment.

b) Strategy development:
It is the second step after recruitment plan. To implement recruitment plan
HR managers develop recruitment strategy. It involves the decision on which
 source and method to be used for recruitment, sequence of activities to be
followed in recruiting candidates etc.

c) Searching candidates:
This step involves searching and attracting job seekers to the organization.
There are broadly two sources used for searching candidates i.e., internal
source and external source.

d) Screening applications:
In this step, applications are screened against the qualification, knowledge,
skills, abilities, interest and experience mentioned in the job specification,
and suitable candidates are shortlisted.

e) Evaluation and control:

In this step managers try to evaluate the effectiveness of recruitment
activities. If it is not as expected, then control measures need to be applied.

Selection

Selection is the process of choosing from those available individuals who are most
likely to perform successfully in a job.

Importance of selection

a) Improve productivity and performance:

The best way to improve performance is to hire people who have the greater
competence and willingness to work. Wrong selection of an employee can
have severe impact to rest of the workforce.

b) Reduce employee turnover:

If a right person is selected and placed at the position of their experience and
interest, they perform better, become motivated for the work which reduces
employee turnover.

c) Minimize training cost:

When employees are properly selected, they require very little training. They
are assigned on jobs based on their skill, efficiency and knowledge. So it
reduces the amount of time, effort and money spent on such training
programs.

d) Helps to establish committed staff:

 Employees who are properly selected remain committed and loyal to the
organization. Effective employee selection reduces absenteeism, turnover
and accidents. It improves employer-employee relations.

e) Environmental adaptation:
Proper selection enables the organization’s environmental adaptation.
Change management is made easier. Employees continuously learn new
things in order to improve their knowledge and skill.

Selection process

a) Reception of application:
The reception of applications is the first step of the selection process. It is
also known as application blank. This technique is widely accepted for
securing information from prospective candidates.

b) Initial screening:
Initial screening is also called preliminary interview. It is to solicit necessary
information from the prospective applicants and to assess the applicant’s
suitability for the job. This step is useful as a process of eliminating
undesirable and unsuitable applicants.

c) Employment/Selection test:
Job seekers who pass the screening and preliminary interview are called for
selection tests. Different types of tests may be administered, depending on
the job and company.

d) Selection interview:
The next step in the selection process is the selection interview. An interview
is conducted to evaluate the applicant’s acceptability.

e) Background study:
Many employers request name, address and phone number of references to
verify the information and perhaps gaining additional background information
on an applicant.

f) Final interview:
The final interview is conducted to evaluate candidate’s fitness for the job. It
is most widely used and essential step in the process of selection.

g) Physical examination:
After the final interview and before the job offer is made, the candidate is
required to undergo a physical fitness test. A job offer is often contingent
upon the candidate being declared fit after the physical examination.
 h) Placement or appointment:
The organization finally places the candidate who was best fit, in an
appropriate position. Immediately the candidate will be trained in various
related jobs and is monitored closely to evaluate the performance.

Selection tests

a) Achievement test:
Achievement tests are designed to measure a person’s level of skills,
knowledge and accomplishments in a specific area. It measures the level of
proficiency achieved by an individual.

b) Aptitude test:
Aptitude tests are normally used to measure the potential ability of individual
to acquire fresh knowledge and also determines the capacity to gain the
training.

c) Personality test:
Personality tests aim to measure the basic make-up or characteristics of an
individual. It measures a person’s emotional stability, openness,
conscientiousness, agreeability etc.

d) Interest test:
Interest tests measure a candidate’s activity preferences. It measures like
and dislike related to hobbies, recreational activities and career choices.

e) Attitude test:
Attitude is an evaluative judgment related to objects, people or any events.
This test measures the favorability of an individual in different such
conditions or with people.

f) Graphology test:
It is conducted to analyze the handwriting of an individual. An individual’s
handwriting can suggest various personal characteristics.

g) Honesty test:
They ensure the accuracy and reliability of information provided by the
candidates. Polygraph test is a common form of honesty test to use lie
detector to measure the reliability of information.

h) Situational test:
For finding the capability of handling the critical situation such test is
conducted.
Methods of employee selection

a) Academic qualification and experience:

Under this, candidates' academic qualifications and experience are
carefully examined. For this, candidates are required to submit bio-data.
This method is generally used for the selection of specialists.

b) Work proficiency test: This method of employee selection is used for the
selection of candidates for technical jobs such as machine operators,
typists, drivers, etc. It tests the knowledge about the job. The most
suitable candidate is selected based on the results of such a test.

c) Written and interview:

This method is used for administrative posts. Under this, candidates first
appear for a written test. Successful candidates again appear for an
interview. The results of the written test and interview are combined for
selection purposes.

d) Interview only:
As per the requirement, some organizations can select the candidates just
by conducting interviews only. Under this, candidates appear for a face-
to-face interview. The interview can be structured, semi-structured, or
unstructured. Suitable candidates are selected based on the evaluation of
interviewers. This method is used basically for higher-level posts and
some technical nature jobs.

Interview

Interview is the face-to-face observation and appraisal of candidate’s suitability for

the job.

Types of interview

a) Unstructured interview:
In such interview questions are not planned. Questions are asked according
to the situation of the conversation.

b) Semi-structured interview:
Under it, major questions to be asked are broadly planned in advance. But
the interviewer has flexibility in asking specific questions for detailed probing
purposes.

c) Structured interview:
 In this approach, the recruiter uses a predetermined set of job-related
questions. Since every applicant is asked the same basic question,
comparisons among applicants can be made more easily. Structured
questions improve the reliability of the interview process, eliminate biases
and errors.

d) Stress interview:
In stress interview, the interviewer attempts to find how applicants would
respond to aggressive, embarrassing, rude and insulting questions. The
whole exercise is meant to see whether the applicant can cope high highly
stress-producing, anxious and demanding situations while at work, in a calm
and composed manner.

e) Depth interview:
This is designed to intensively examine the candidate’s background and
thinking and to go into considerable detail on a particular subject to special
interest to the candidate. The theory behind it is that if the candidate is
found good in his area of special interest, the chances are high that if given a
job he would take a serious interest in it.

Limitations of interview

a) Snap judgment:
Interview gives the quick decision regarding the first impression is last
impression. But this may lead to an error on choosing the right personnel for
the vacant post. Interview cannot assure the job performance from the short
interaction.

b) Contrast effect:
While making the judgment through interview, the comparison on
performance of previous candidate is taken by interviewers. Candidate after
too good or too bad applicant is compared and this may create an error of
judgment.

c) Halo effect:
Halo effect is the interviewer’s tendency to evaluate a candidate on the basis
of single trait or characteristic like how well s/he dress or speaks.

d) Influence of non-verbal behavior:

Interviewers get positive to that candidate who is well in making good
posture, smile, eye contact, motion of head etc. These character lead to
selection of candidate but this do not measure the whole quality of person.
 e) Personal biases:
Personal bias may lead to wrong selection of candidate. For example, anti-
black, anti-woman, anti-political party etc. may lead to wrong decision by
interviewer.

f) Lack of knowledge of job:

Interviewer without proper knowledge of particular job requirement may lead
to the wrong decision.

Socialization

Socialization is an ongoing process through which an employee begins to

understand and accept the values, norms and beliefs held by others in the
organization.

Purpose of socialization

a) Improve performance:
Socialization helps new employees to understand and accept the
organization’s norms, values and culture. This helps to achieve better
employee performance. It also helps to improve the quality of work.

b) Organizational stability:
An effective socialization creates a favorable impression of the organization
and work environment. Thus, the stability of employees and the organization
is also increased through socialization.

c) Reduce employee anxiety:

New employees suffer from anxiety. They worry about how well they will
perform in the new job. In such a situation, socialization helps them to
internalize the norms, values and attitudes of other members of the
organization. It reduces the anxiety of new employees by giving them
information on the job environment, introducing them to co-workers and
encouraging them to ask questions.

d) Positive attitude:
Through socialization, management tries to create favorable attitudes
towards the organization, its policies and its personnel. It can generate
enthusiasm and high morale.

e) Helping employees to deal with change:

 Socialization helps new employees in preparing for change. They develop
that ability by the way of training and orientation given to them during
socialization process.

f) Screen out deviant employees:

Effective socialization process helps to screen out deviant, rebellious and
norm rejecting type employees. New employees which are on probation and
or the wrong type can be spotted for screening out during socialization.

Recruitment and selection practice in Nepal

a) Recruitment process:
In all organized type of Nepalese organizations, there is a process of formal
recruitment and selection. This process includes attracting, collecting, short-
listing candidates, and interviewing and selecting employees.

b) Sources and methods of recruitment:

Nepalese organizations practice a mix of internal and external sources of
recruitment. Friends and relatives are main source of recruitment for private
sector organizations; public companies seek candidates from labor market.
For government organizations, recruitment is done by Public Service
Commission.

c) Selection:
Private companies have informal selection practices and are mainly based on
nepotism and favoritism whereas government organizations follow systematic
selection process which also includes written test and interview.

d) New development in recruitment and selection practices in Nepal:

There are a lot of new developments in recruiting and selection practices in
Nepal these days. Social inclusion, outsourcing, hiring locals, employee
leasing are just a few of them.