HRM Chapter 3

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MOHAMAD SHUKRI BIN MUDA

COMMERCE DEPARTMENT
POLITEKNIK METrO BETONG SARAWAK
RECRUITMENT
Definition
The process of attracting suitable people to apply for job vacancies
RECRUITMENT PROCESS
 There are five (5) steps in recruitment process.
 Requirement from human resource planning or managers’ requisition
 Evaluate alternatives to recruitment

 Determine types of recruitment


◼ Internalrecruitment
◼ External recruitment

 Chooses sources and methods of recruitment


 Recruited individuals
RECRUITMENT PROCESS (Cont’d)
Requirement from human resource planning or managers’ requisition
 HR Planning refers to the process of deciding what positions to fill and how to fill them.
 HR managers take some basic assumptions about the future by forecasting HR needs, supply
of internal candidates and supply of external candidates.
 First step in HR planning is to forecast revenue and then estimate the number of persons
needed to achieve this volume.
 Forecast techniques include:
◼ Trend analysis - study a company’s past HR needs over several years to predict the future needs.
◼ Ratio analysis - a forecasting technique to determine future staff needs by using ratios between e.g.,
sales volume and number of employees needed.
◼ Scatter plot - a graphical method used to identify the relationship between two variables.
◼ Computer forecast - computer software program used to forecast HR requirements
◼ Managerial judgment - becomes important that other techniques are rare to continue unchanged
RECRUITMENT PROCESS (Cont’d)
Evaluate alternatives to recruitment
Overtime
 A firm asks its employees to work extra despite recruiting new hands due to peaks of
production.
 Fetches extra income for the additional piece of work to employees
 Saves cost incurred in recruiting new persons.
 An overtime leads to fatigue, reduces the productivity of an employee and ultimately
leads to more accidents and absenteeism.
RECRUITMENT PROCESS (Cont’d)
Evaluate alternatives to recruitment
Employee Leasing
 The company pays a fee to the leasing firm or the consultancy that handles employee
benefits, payroll, and all other HR functions on behalf of the client company.
 Also called as “staff outsourcing” wherein the permanent employees of other firms
are hired due to their specialization in a certain field on a lease basis
 This is basically to meet the short term requirements of the client company.
RECRUITMENT PROCESS (Cont’d)
Evaluate alternatives to recruitment
Subcontracting
 A business practice wherein a certain portion of the work is delegated to other
specialized agencies to meet a surge in the demand for goods and services.
 The contractor with a mutual consent assigns some task to some other specialist
contractor who helps in completing the project.
 The subcontracting is prevalent in the complex jobs such as construction, building, and
information technology.
RECRUITMENT PROCESS (Cont’d)
Evaluate alternatives to recruitment
Temporary Employment
 Temporary employees are those who are hired for a specific time period until the task gets
accomplished.
 Earlier the temporary employment agencies were used in hiring the unskilled and semi-skilled
laborers.
 Nowadays the employees are readily available for the technical, professional and executive
positions as well.
 The temporary employment is beneficial for the firms as the cost of labor is relatively less,
services of an experienced labor can be utilized, and there is flexibility in responding to the
future needs of workers.
 However, temporary employment lacks labor commitment to the organizational goals since the
workers hired do not know about the culture and workflow of the firm.
RECRUITMENT PROCESS (Cont’d)
Evaluate alternatives to recruitment
Outsourcing
 The companies outsource or assign the task of recruitment to the third party specialist,
who then carry out all the recruitment activities which would have been done in-house
otherwise.
 It is beneficial for the firms which are small and have a lack of expertise in recruitment
to delegate the authority to the third party to carry out the recruitments on the
company’s behalf.
 But the responsibility lies with the client company itself and must ensure that all the
activities related to recruitment are performed effectively by the third party.
RECRUITMENT PROCESS (Cont’d)
Determine types of recruitment
 Internal
◼ For promotion from within, most companies use job posting, HR records and skill bank.
◼ Job posting – publicizing an open job to employees and listing its attributes, like qualifications,
supervisor, working schedule and pay rate.
◼ An examination on HR record reveals employees who are working in jobs below their
education or skill levels and identify persons who have potentials for further training or right
background for the open job.
◼ Rehiring – hiring former employees who left for greener pastures back into better positions.

 External
◼ Companies may not find employees they need from internal sources.
◼ Use external sources from advertising and employment agencies.
RECRUITMENT PROCESS (Cont’d)
Chooses sources and methods of recruitment (external)
◼ Advertising
◼ Most suitable medium (local paper, TV or internet).
◼ For specialized employees, the company can advertise in trade and professional journals
◼ Construction of the advertisement follow the AIDA principles (Attention, Interest, Desire, Action)
◼ Develop interest in the job (many opportunities for advancement) and create desire by
highlighting the job’s interest factors (travel, challenge) and make sure the advertisement
encourages action with a statement (call today, please forward your resume)
RECRUITMENT PROCESS (Cont’d)
Chooses sources and methods of recruitment (external)
◼ Employment agencies
◼ Government and non-profit agencies
◼ Related to government departments in charge of manpower and employment
◼ Important source of blue-collar and white-collar workers
◼ Other employment agencies are tied to non-profit organizations
◼ Most professional associations have units that help member to find jobs
◼ Commercial agencies
◼ Important sources of clerical, white-collar and managerial personnel
◼ Charge fees for each applicant they place
◼ Employers usually pay the fee
◼ Employers assume the best way to attract qualified, currently employed applicants who may
not be willing to switch jobs if they have to pay the fees.
RECRUITMENT PROCESS (Cont’d)
Recruited individuals
After the recruitment process, the companies will perform the below processes to
determine the best candidate to fill the job vacancy.
 Cancel out unqualified applicants
 Here the selection process begins- In this stage the application which are not suitable for
the job are cancel out by the HRM department.
 The application can be weed out based on the un-matching qualification or experience of
the candidate.
 Arrangement of candidates
 The applicants who are matching to the requirement of the job vacancy are then rated
based on their on-paper experience and qualification.
 The ratings convey how well the applicant is fit of the vacant job profile.
 It is time consuming process and many times excel sheets are used to sort out the
application and rank them based on their suitability to the job profile.
ADVANTAGES AND DISADVANTAGES OF INTERNAL
AND EXTERNAL RECRUITMENT
Internal Recruitment External Recruitment
Advantages Advantages
• Employment record of applicant available. Thus • Avoids inbreeding
accurate assessment is possible. • Possible to widen choice of applicants by having a
• No induction needed pool of candidates
• Little or no cost involved
• Employees’ morale and motivational increased

Disadvantages Disadvantages
• Filling a vacancy in one department may lead to a • High cost of recruitment process
more serious gap in another • Frustration among existing employees
• No suitable candidates may be available
• Supervisors may be reluctant to release key
employees
SELECTION
Definition
The process of choosing a suitable applicant to fill an available job
vacancy
SELECTION PROCESS ACTIVITIES
Activities involved in selection process are as follows:
 Review of application form and resumes
 Preliminary screening/first interview/early interview

 Employment/Selection test

 Employment/Job interview

 Background/Reference check

 Selection decision/Supervisory approval

 Medical examination

 Employed the individual


SELECTION PROCESS ACTIVITIES (Cont’d)
Review of application form and resumes
 Application form should be customized for different jobs and include

only questions relevant to determining whether the applicant is


suitable for the job.
 Application form should summarize adequately the candidate’s

background, skills, abilities and accomplishments.


 Resumes are often incomplete, wordy and inaccurate. They provide
very little useful information about a job applicant.
SELECTION PROCESS ACTIVITIES (Cont’d)
Preliminary screening/first interview/early interview
 A brief job interview to determine a qualified applicant.

 Can be conducted over the phone, via video chat, or in person.

 A brief review of a candidate’s background and a few questions -

qualifications, salary requirements and availability to work.


 The results of the screening interview will determine if the candidate
moves to the next round of the interview process.
SELECTION PROCESS ACTIVITIES (Cont’d)
Employment/Selection test
 Cognitive test
 Measures general reasoning ability (intelligence) and tests of specific mental abilities like memory
and inductive reasoning.
 Intelligence (IQ) tests are tests of general intellectual abilities – measure abilities such as memory,
vocabulary, verbal fluency and numerical ability.
 Occupational skills and aptitude skills – measure applicant’s aptitude for the job or occupation,
inductive and deductive reasoning, verbal comprehension, memory and numerical ability.
 Physical abilities test
 Measure the applicant’s physical abilities such as finger dexterity, speed of arm movement and
reaction time.
 There are tests that measure physical abilities such as strength, body coordination and stamina.
 For example, lifeguards must be tested on their swimming and lifesaving skills before the
employment.
SELECTION PROCESS ACTIVITIES (Cont’d)
Employment/Selection test
 Work sample test

 Several tasks related to the job are chosen and applicants are tested on each.
 An observer records on a checklist how well the applicant performs
 Advantages include the technique measures actual on-the-job tasks, harder for applicants
to fake answers, work samples are related to the job, fair to all applicants and have
better validity in predicting performance.
 Personality test
 Measure the basic aspects of an applicant’s personality such as motivation, introversion
and stability.
 Many of personality test are projective that needs the person to interpret and react.
 Useful for helping employers to predict which candidates will succeed the job.
SELECTION PROCESS ACTIVITIES (Cont’d)
Employment/Job interview
 Most widely used method of gathering information about job applicants

 For many employers, the interview is the only evaluation tool used apart from the application
form
 The interview is aimed to navigate the background, evaluate communication skills and
identify experience and knowledge necessary to good job as well as personality traits
 While planning the interview, the interviewers must consider the timing, venue and topic for
discussion
 While conducting the interview, the interviewers need to avoid stress techniques, establish
rapport and ask the right questions.
 After the interview, recruitment officers need to compare the applicants and make final
choice of candidate
SELECTION PROCESS ACTIVITIES (Cont’d)
Background/Reference check
 Verify the accuracy of factual information provided by the applicant and to
uncover any missing information
 Most employers at least try to verify applicant’s current position and salary
with their current employer by phone
 Some employers get background reports from commercial credit rating
companies – provide information about credit standing, indebtedness,
reputation, character, lifestyle etc.
 Inexpensive and straightforward way to verify factual information including
current and previous job titles, current salary range, dates of employment
and education background.
SELECTION PROCESS ACTIVITIES (Cont’d)
Selection decision/Supervisory approval
 The selected few applicants, which may consist of four or five people

will be ranked according to their suitability for the job


 The candidate at top of the list will be offered the job and the
remainder will be kept aside in case the preferred applicant declines
the job
 The selection of applicant must be then approved by the supervisor or
manager of respective department
SELECTION PROCESS ACTIVITIES (Cont’d)
Medical examination
 Verify that applicant meets the physical requirements of the position

and discover any medical limitations that you should take into account
in placing the applicant.
 Establish a record and baseline of the applicant’s health for future

insurance or compensation claims.


 By identifying health problems, the examination can also reduce
absenteeism and accidents and detect communicable diseases that
may be unknown to the applicant.
SELECTION PROCESS ACTIVITIES (Cont’d)
Employed the individual
 When a choice has been made, the selected candidate must be

contacted and offered the job


 Preparing a letter should not be delayed to forestall the best
candidates from being offered a job elsewhere
 A contract of service comes into existence once an employee accepts

the offer of employment from an employer


SELECTION PROCESS AND SITUATIONAL NEEDS
 In order to select the best candidate from among a group of
applicants, an employer can examine a curriculum vitae and an
application form completed by the candidates and conducts interviews
and tests.
 Once the most suitable candidate has been chosen to fill a job
vacancy, a job offer must be made.
 The terms and conditions of employment to be offered to an employee
must be considered carefully.
 Once a new employee reports for duty, he or she must undergo an
induction programme.
THANK YOU
THANK YOU

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