STRATEGIC HUMAN RESOURCE MANAGEMENT
Group: - 3
RAIHAN SYED SIR
DEPARTMENT OF MBA
MAHARANI’S ARTS & COMMERCE
COLLEGE FOR WOMEN,MYSORE
1. Discuss the advantages and disadvantages of recruiting internal verses
external and briefly discussed any two external methods of
* Lower cost, because not paying external
agency to recruit for you
* May improve morale of existing staff
* Recognition and reward of the good
performance of internal staff
* Reinforces & supports the company’s
succession planning strategies
* Internal staff are a ‘known’ quantity with
existing information available about their skills
* Can reinforce existing negative culture
* Run the risk of 'in breeding'
* Those that are not promoted can become
* A strong performance management system is
* Can encourage political 'in-fighting' for
promotions among internal staff
Typically, if internal strategies are widely used by an organization, then the majority of outside
recruitment only takes place for lower level jobs, which then serve as an entry point into that
organization. This strategy works particularly well in organizations that have an embedded and
effective succession planning process in place.
The disadvantage of these internal strategies is that vacancies often will attract applications from
staff that are clearly not qualified or unsuitable for the position, even though they may be
otherwise thought of as valued employees. How to manage potential 'fall out' and sustain staff
morale in the face of unsuccessful job applications needs to be managed carefully by the
*Avoids the risk of creating resentment by
promoting 'favorites' from the inside
* Outsiders bring in fresh ideas, skills and
* Forces internal staff to 'compete' & update their
skills, education, etc
* Helps to facilitate change in culture
* New blood' & more dynamic workforce
*New appointee may not fit the existing culture
within the organization
* May affect the morale of internal staff who have
* Require a longer period of induction and
* May take longer to fill the vacancy
* May create resentment from existing employees
Many organizations may seek to fill a vacant position internally in the first instance, and then
follow through with an external campaign if no suitable inside staff are identified. To avoid
resentment among existing staff, the organization must be clear and consistent in communicating
the corporate recruitment policy as it relates to sourcing suitable staff.
The major disadvantage in an external job search campaign is that it can be time consuming and
costly, particularly in a full employment economy. Organizations need to be wary of the state of
the labor market as it relates to the particular vacancy at hand, so that an effective external
recruitment strategy can be clearly thought through and put into place.
For example, sales jobs are notoriously difficult to fill but are usually 'mission critical' to an
organization, given that they are integral to securing a company's income. In such instances, and
in order to fill the vacancy quickly, the nature and extent of advertising (e.g. local, national or
overseas advertising) will need to be taken into consideration. On the other hand, when there is
high unemployment, a smaller and less costly campaign may be sufficient.
Methods of External Recruitment
1. Campus Recruitment
Many entry-level professional and managerial jobs require a college degree. Each year
employers spend thousands of dollars to send recruiters to college campuses around the
nation. Campus recruitment programs account for more than 50 percent of “college-educated
talent hired each year”. Campus recruiters serve two functions. They act as the organization’s
representatives to individuals who typically have no firsthand knowledge of the firm, as well
as first-level screening agents for the organization. Thus they are part of both the recruitment
and the selection process.
2. Special Events
On occasion, an employer may wish to recruit applicants at special events such as job
fairs. Job fairs may be sponsored by a chamber of commerce, educational institution, or
government agency. These special events not only offer a potential source of applicants for
the employer but also serve as a good public relations gesture. They represent an opportunity
for an employer to become better known in the community and to link that employer’s name
with a well-respected sponsor. In addition, some organizations may hold open houses for the
community. These open houses provide an opportunity to demonstrate community
involvement, as well as to make employment possibilities more obvious and attractive to
2. Define the term recruitment and selection, Describe the linkage
between business strategy and effectiveness of the recruitment and
selection process ?
Meaning of Recruitment
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.
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". Recruitments the
activity that links the employers and the jobseekers. A few definitions of recruitment are:
The main objective of the recruitment process is to expedite the selection process.
Recruitment is a continuous process whereby the firm attempts to develop a pool of qualified
applicants for the future human resources needs even though specific vacancies do not exist.
Usually, the recruitment process starts when a manger initiates an employee requisition for a
specific vacancy or an anticipated vacancy.
RECRUITMENT NEEDS ARE OF THREE PLANNED
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.
The Purpose and Importance of Recruitment
Attract and encourage more and more candidates to apply in the organisation.
Create a talent pool of candidates to enable the selection of best candidates for the
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
Begin identifying and preparing potential job applicants who will be appropriate
Increase organization and individual effectiveness of various recruiting techniques and
sources for all types of job applicants
SOURCES OF RECRUITMENT
Internal Sources of Recruitment
1. Promotions :
Promotion means to give a higher position, status, salary and responsibility to the
employee. So, the vacancy can be filled by promoting a suitable candidate from the same
Transfer means a change in the place of employment without any change in the position,
status, salary and responsibility of the employee. So, the vacancy can be filled by
transferring a suitable candidate from the same organisation.
3. Internal Advertisements:
Here, the vacancy is advertised within the organisation. The existing employees are asked
to apply for the vacancy. So, recruitment is done from within the organisation.
4. Retired Managers:
Sometimes, retired managers may be recalled for a short period. This is done when the
organisation cannot find a suitable candidate.
5. Family and Friends of Employee:
This source is usually one of the most effective methods of recruiting because many
qualified people are recruited at a very low cost to the company.
6. Recall from Long Leave :
The organisation may recall a manager who has gone on a long leave. This is done when
the organisation faces a problem which can only be solved by that particular manager.
After he solves the problem, his leave is extended.
External Sources of Recruitment
Advertisement in local or national newspapers and trade and professional journals is
generally used when qualified or experienced personnel are not available from other
sources. Advertisement gives the management a wider range of candidates from which to
(2) Educational Institutions:
Direct recruitment from educational institutions for jobs which require technical or
professional qualifications has become a common practice. the company and educational
institutions helps in getting suitable candidates to man various positions. This is also
known as `Campus Recruitment'.
3) Professional or Trade Associations:
Many associations provide placement services for their members. These services may
consist of compiling job seeker's lists and providing access to members during regional or
Professional or trade associations are particularly useful for attracting highly educated,
experienced or skilled personnel.
4) Management Consultants:
Management consultancy firms help the organisations to recruit technical, professional and
managerial personnel. They specialize in middle-level and top-level executive placements.
5) Write-ins are those who send written enquiries.
These job seekers are asked to complete application forms for further processing
The organisation may also recruit candidates based on the recommendations received
from existing managers or from sister companies.
7) Deputation Personnel:
The organisation may also recruit candidates who are sent on deputation by the Government
or Financial institutions or by holding or subsidiary companies.
Recent Trends in Recruitment
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
theorganisation and creating a suitable pool of talent for the final selection by
theorganisation. Outsourcing firms develop 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.
The size of the labour market, the image of the company, the place of posting, the nature of
job, the compensation package and a host of other factors influence the manner of aspirants
are likely to respond to the recruiting efforts of the company. Through the process of
recruitment the company tries to locate prospective employees and encourages them to apply
for vacancies at various levels. Recruiting, thus, provides a pool of applicants for selection.
Selection is the process of picking individuals who have relevant qualifications to fill jobs in
an organisation. The basic purpose is to choose the individual who can most successfully
perform the job from the pool of qualified candidates.
Selection is usually a series of hurdles or steps. Each one must be successfully cleared before
the applicant proceeds to the next one. The time and emphasis place on each step will
definitely vary from one organisation to another and indeed, from job to job within the same
organisation. The sequence of steps may also vary from job to job and organisation to
organisation. For example some organisations may give more importance to testing while
others give more emphasis to interviews and reference checks. Similarly a single brief
selection interview might be enough for applicants for lower level positions, while applicants
for managerial jobs might be interviewed by a number of people.
Recruitment Vs Selection
Both recruitment and selection are the two phases of the employment process. The
differences between the two are:
1.The recruitment is the process of searching the candidates for employment and stimulating
them to apply for jobs in the organisation WHEREAS selection involves the series of steps
by which the candidates are screened for choosing the most suitable persons for vacant posts
.2. The basic purpose of recruitments is to create a talent pool of candidates to enable the
selection of best candidates for the organisation, by attracting more and more employees to
apply in the organisation WHEREAS the basic purpose of selection process is to choose the
right candidate to fill the various positions in the organisation.
3. Recruitment is a positive process i.e. encouraging more and more employees to apply
WHEREAS selection is a negative process as it involves rejection of the unsuitable
4. Recruitment is concerned with tapping the sources of human resources WHEREAS
selection is concerned with selecting the most suitable candidate through various interviews
5. There is no contract of recruitment established in recruitment WHEREAS selection results
in a contract of service between the employer and the selected employee
Business strategy and Effective Recruitment and selection process
To build an effective recruitment and selection process for your company, first align the
executive team with a clear vision, values, and mission of your company as well as a clear
business strategy. For example, most companies want to have X revenue and Y employees in Z
number of years.
To make sure that your vision and business strategy makes for an effective recruitment and
selection process, make sure they are realistic. Executives should not set themselves or have
someone else set them a $2 million quota if it is not even possible they will reach it. Although
shooting high is great, a lack of realistic goals will result in poor morale and countless other
The business strategy needs to actually create a proper expectation. This doesn’t mean that you
won’t miss the mark by a little bit. However, make sure it is within your reach. Look over
problems you might encounter that will keep your company from reaching these goals and ask
yourself what it is going to cost if you make the wrong hires.
Benchmark Your Employees
To develop an effective recruitment and selection process in each department, benchmark all of
your current employees (assuming your company is big enough to have employees) and find the
common denominators between your star players and between the poor performers.
It is crucial that you take a look at all employees and factor in all qualities relevant to success in
their position. For example, if your company has a team of eight programmers and three of them
are star performers, most recruiters will only take a look at the three star performers and try to
duplicate their common denominators
The Hiring Profile
Put together a hiring profile, factoring in your business strategy as well as the common
denominators between both the star performers and the poor performers. Develop a list of
questions that recruiters can ask for each position that will clearly uncover whether the potential
hires are a great fit with your business strategy and the common denominators.
Put together scorecards with each important quality that employees should have and rank each
quality on the scorecard in low, medium, or high importance. In the interview process, rank each
applicant from one to five in each of these qualities. This way, you will have a record of all the
people that are interviewing for each position and you can compare them in an objective manner.
It is important to conduct your recruitment and selection process in this objective way, instead of
relying on a gut feeling.
3. Discuss the detail how the internet have changed the way companies
recruit an enumerate advantages and disadvantages of e-recruitment?
E - Recruitment
E - Recruitment is also known as “Online recruitment”, it is the use of technology or the web
based tools to assist the recruitment processes. E-recruiting, embracing the term web-based
recruiting can be described as any recruiting processes that a business organization conducts via
web-based tools, such as a firm’s public Internet site or its corporate intranet. We use the terms
online recruitment, Internet recruitment, and e-recruitment interchangeably
We are living in the computer age and organizations are beginning to increasingly depend on the
Internet for all types of business activities including online recruitment of candidates – more
popularly referred to as E-recruitment. The human resources departments are taking advantage of
the advancing technology and deploying web-based tools for inviting and comparing resumes.
The term e-recruitment means using information technology (IT) to speed up or enhance parts of
the recruitment process. It ranges from the applicant interface for advertising vacancies and
making job applications, to the back office processes, which allow aliaison between human
resources (HR) and line managers to set up a talent pool or database of potential recruits.
Many big and small organizations are using Internet as a source of 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 CV’s in
worldwide web, which can be drawn by prospective employees depending upon their
requirements. There is growing evidence that organisations are using Internet technology and the
World Wide Web as a platform for recruiting and testing candidates. E-recruitment is the latest
recruitment trend and is increasingly being adopted by small and large corporate as well as
Advantages of E-Recruitment
1. No intermediaries.
2 . Reduction in the time for recruitment (over 65 percent of the hiring time).
3. Facilitates the recruitment of right type of people with the required skills.
4. Gives a 24*7 access to an online collection of resumes.
5. Cost efficient: Advertisements in internet when compared to newspaper, magazines, and
employment agencies is considerably cheap. As in the other sources continuously one has to
revise the advertisement, for example a company wanted their ad to appear on every Sunday for
a month thus was suppose to pay for four advertisements. But for internet it is not applicable.
6. Time saving device: Time to deliver; to communicate is minimized by this. Response is direct
and immediate without any delay. Beforehand the postal services, fax was one way
communication and was time consuming. Phones provided two way communications but resume
management, communicating worldwide were not possible.
7. Widens the search: In the era of globalization the reach cannot be restricted at one place. It
provides global reach that also within a fraction of second. Truly the process supports the
definition of recruitment by creating a vast pool of potential candidates.
8. Scope for better match: Information in detail is provided with clarity therefore suitable
candidate match is possible. The search is widened link with other websites are possible, these
attracts the candidates and after the job profile matches, the candidates apply.
9. Standardization: The information of the candidates is collected in a standard format. Besides
collecting the data it also consolidates information received from various sources.
10. Reservoir: It acts as the reservoir of information. From the job profile to candidate profile is
available along with past applicant data.
11. Lessen paper work: As the data collection, filing, administrative work are done electronically
thus paper work or documentation has been lessened.
12. Lower costs to the organization. Also, posting jobs online is cheaper than advertising in the
Disadvantages of E-Recruitment:
Apart from the various benefits, e-recruitment has its own share of shortcomings and
disadvantages. Some of them are:
1. Screening and checking the skill mapping and authenticity of millions of resumes is a problem
and time consuming exercise for organizations
2. There is low Internet penetration and no access and lack of awareness of internet in many
locations across India.
3. Organizations cannot be dependant solely and totally on the online recruitment methods.
4. In India, the employers and the employees still prefer a face-to-face interaction rather than
5. Require being computer savvy: The process is restricted within computer savvy candidates. As
the search is based on various websites, their screening, keywords application demands for a
computer savvy person and company.
6.Legal consequences: Alike other recruitment sources this source also should be aware o f the
words used in the advertisements otherwise it may lead to the charge of discrimination. For
example, Disney World was sued for screening the resumes preferring the key words used by
7. Vast pool of applicants: This benefits the Organizations as well as it is disadvantage to them
also. Because the huge database cannot be scanned in depth. Either first few candidates are
called for interview or the resumes are screened based on some key words. On the other hand
applicants also face global competition.