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  • 1. STRATEGIC HUMAN RESOURCE MANAGEMENTMODULE-3Submitted ByGroup: - 3SIRIMA NANDSHIVVIJETHA.M.HRITU SINGH.LDEEPA .R.KRAKSHITHASubmitted ToRAIHAN SYED SIRDEPARTMENT OF MBAMAHARANI’S ARTS & COMMERCECOLLEGE FOR WOMEN,MYSORE
  • 2. 1. Discuss the advantages and disadvantages of recruiting internal versesexternal and briefly discussed any two external methods ofrecruitment?Internal recruitmentAdvantages* Lower cost, because not paying externalagency to recruit for you* May improve morale of existing staff* Recognition and reward of the goodperformance of internal staff* Reinforces & supports the company’ssuccession planning strategies* Internal staff are a ‘known’ quantity withexisting information available about their skillsDisadvantages* Can reinforce existing negative culture* Run the risk of in breeding* Those that are not promoted can becomediscontent* A strong performance management system isrequired* Can encourage political in-fighting forpromotions among internal staffTypically, if internal strategies are widely used by an organization, then the majority of outsiderecruitment only takes place for lower level jobs, which then serve as an entry point into thatorganization. This strategy works particularly well in organizations that have an embedded andeffective succession planning process in place.The disadvantage of these internal strategies is that vacancies often will attract applications fromstaff that are clearly not qualified or unsuitable for the position, even though they may beotherwise thought of as valued employees. How to manage potential fall out and sustain staffmorale in the face of unsuccessful job applications needs to be managed carefully by theorganization.
  • 3. External recruitmentAdvantages*Avoids the risk of creating resentment bypromoting favorites from the inside* Outsiders bring in fresh ideas, skills andknowledge* Forces internal staff to compete & update theirskills, education, etc* Helps to facilitate change in culture* New blood & more dynamic workforceDisadvantages*New appointee may not fit the existing culturewithin the organization* May affect the morale of internal staff who havebeen over-looked* Require a longer period of induction andorientation* May take longer to fill the vacancy* May create resentment from existing employeesMany organizations may seek to fill a vacant position internally in the first instance, and thenfollow through with an external campaign if no suitable inside staff are identified. To avoidresentment among existing staff, the organization must be clear and consistent in communicatingthe 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 andcostly, particularly in a full employment economy. Organizations need to be wary of the state ofthe labor market as it relates to the particular vacancy at hand, so that an effective externalrecruitment 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 anorganization, given that they are integral to securing a companys income. In such instances, andin order to fill the vacancy quickly, the nature and extent of advertising (e.g. local, national oroverseas advertising) will need to be taken into consideration. On the other hand, when there ishigh unemployment, a smaller and less costly campaign may be sufficient.
  • 4. Methods of External Recruitment1. Campus RecruitmentMany entry-level professional and managerial jobs require a college degree. Each yearemployers spend thousands of dollars to send recruiters to college campuses around thenation. Campus recruitment programs account for more than 50 percent of “college-educatedtalent hired each year”. Campus recruiters serve two functions. They act as the organization’srepresentatives to individuals who typically have no firsthand knowledge of the firm, as wellas first-level screening agents for the organization. Thus they are part of both the recruitmentand the selection process.2. Special EventsOn occasion, an employer may wish to recruit applicants at special events such as jobfairs. Job fairs may be sponsored by a chamber of commerce, educational institution, orgovernment agency. These special events not only offer a potential source of applicants forthe employer but also serve as a good public relations gesture. They represent an opportunityfor an employer to become better known in the community and to link that employer’s namewith a well-respected sponsor. In addition, some organizations may hold open houses for thecommunity. These open houses provide an opportunity to demonstrate communityinvolvement, as well as to make employment possibilities more obvious and attractive toattendees
  • 5. 2. Define the term recruitment and selection, Describe the linkagebetween business strategy and effectiveness of the recruitment andselection process ?RECRUITMENTMeaning of RecruitmentA process of finding and attracting capable applicants for employment. The process begins whennew recruits are sought and ends when their applications are submitted. The result is a pool ofapplications from which new employees are selected.It is the process to discover sources of manpower to meet the requirement of staffing scheduleand to employ effective Measures for attracting that manpower in adequate numbers to facilitateeffective selection of an efficient working force.Recruitment of candidates is the function preceding the selection, which helps create a pool ofprospective employees for the organisation so that the management can select the right candidatefor the right job from this pool.DefinitionsAccording to Edwin B. Flippo, recruitment is the process of searching the candidates foremployment and stimulating them to apply for jobs in the organisation". Recruitments theactivity 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 qualifiedapplicants 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 aspecific vacancy or an anticipated vacancy.
  • 6. RECRUITMENT NEEDS ARE OF THREE PLANNEDANTICIPATED Anticipated needs are those movements in personnel, which anorganization 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 theorganisation. Determine present and future requirements of the organization in conjunction with itspersonnel 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 underqualified or overqualified job applicants. Help reduce the probability that job applicants once recruited and selected will leave theorganization only after a short period of time. Meet the organizations legal and social obligations regarding the composition of itsworkforce. Begin identifying and preparing potential job applicants who will be appropriatecandidates. Increase organization and individual effectiveness of various recruiting techniques andsources for all types of job applicants
  • 7. SOURCES OF RECRUITMENTInternal Sources of Recruitment1. Promotions :Promotion means to give a higher position, status, salary and responsibility to theemployee. So, the vacancy can be filled by promoting a suitable candidate from the sameorganisation.2. Transfers: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 bytransferring a suitable candidate from the same organisation.3. Internal Advertisements:Here, the vacancy is advertised within the organisation. The existing employees are askedto 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 theorganisation cannot find a suitable candidate.
  • 8. 5. Family and Friends of Employee:This source is usually one of the most effective methods of recruiting because manyqualified 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 whenthe 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 Recruitment1) Advertisements:Advertisement in local or national newspapers and trade and professional journals isgenerally used when qualified or experienced personnel are not available from othersources. Advertisement gives the management a wider range of candidates from which tochoose.(2) Educational Institutions:Direct recruitment from educational institutions for jobs which require technical orprofessional qualifications has become a common practice. the company and educationalinstitutions helps in getting suitable candidates to man various positions. This is alsoknown as `Campus Recruitment.3) Professional or Trade Associations:Many associations provide placement services for their members. These services mayconsist of compiling job seekers lists and providing access to members during regional ornational conventions.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 andmanagerial personnel. They specialize in middle-level and top-level executive placements.
  • 9. 5) Write-ins are those who send written enquiries.These job seekers are asked to complete application forms for further processing6) Recommendations:The organisation may also recruit candidates based on the recommendations receivedfrom existing managers or from sister companies.7) Deputation Personnel:The organisation may also recruit candidates who are sent on deputation by the Governmentor Financial institutions or by holding or subsidiary companies.Recent Trends in RecruitmentOUTSOURCINGIn India, the HR processes are being outsourced from more than a decade now. A companymay draw required personnel from outsourcing firms. The outsourcing firms help theorganisation by the initial screening of the candidates according to the needs oftheorganisation and creating a suitable pool of talent for the final selection bytheorganisation. Outsourcing firms develop their human resource pool by employing peoplefor them and make available personnel to various companies as per their needs. In turn,theoutsourcing firms or the intermediaries charge the organisations for their services.SELECTIONIntroductionThe size of the labour market, the image of the company, the place of posting, the nature ofjob, the compensation package and a host of other factors influence the manner of aspirantsare likely to respond to the recruiting efforts of the company. Through the process ofrecruitment the company tries to locate prospective employees and encourages them to applyfor vacancies at various levels. Recruiting, thus, provides a pool of applicants for selection.
  • 10. DefinitionSelection is the process of picking individuals who have relevant qualifications to fill jobs inan organisation. The basic purpose is to choose the individual who can most successfullyperform the job from the pool of qualified candidates.ProcessSelection is usually a series of hurdles or steps. Each one must be successfully cleared beforethe applicant proceeds to the next one. The time and emphasis place on each step willdefinitely vary from one organisation to another and indeed, from job to job within the sameorganisation. The sequence of steps may also vary from job to job and organisation toorganisation. For example some organisations may give more importance to testing whileothers give more emphasis to interviews and reference checks. Similarly a single briefselection interview might be enough for applicants for lower level positions, while applicantsfor managerial jobs might be interviewed by a number of people.Recruitment Vs SelectionBoth recruitment and selection are the two phases of the employment process. Thedifferences between the two are:1.The recruitment is the process of searching the candidates for employment and stimulatingthem to apply for jobs in the organisation WHEREAS selection involves the series of stepsby 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 theselection of best candidates for the organisation, by attracting more and more employees toapply in the organisation WHEREAS the basic purpose of selection process is to choose theright candidate to fill the various positions in the organisation.3. Recruitment is a positive process i.e. encouraging more and more employees to applyWHEREAS selection is a negative process as it involves rejection of the unsuitablecandidates.4. Recruitment is concerned with tapping the sources of human resources WHEREASselection is concerned with selecting the most suitable candidate through various interviewsand tests.5. There is no contract of recruitment established in recruitment WHEREAS selection resultsin a contract of service between the employer and the selected employee
  • 11. Business strategy and Effective Recruitment and selection processTo build an effective recruitment and selection process for your company, first align theexecutive team with a clear vision, values, and mission of your company as well as a clearbusiness strategy. For example, most companies want to have X revenue and Y employees in Znumber of years.To make sure that your vision and business strategy makes for an effective recruitment andselection process, make sure they are realistic. Executives should not set themselves or havesomeone else set them a $2 million quota if it is not even possible they will reach it. Althoughshooting high is great, a lack of realistic goals will result in poor morale and countless othernegative effects.The business strategy needs to actually create a proper expectation. This doesn’t mean that youwon’t miss the mark by a little bit. However, make sure it is within your reach. Look overproblems you might encounter that will keep your company from reaching these goals and askyourself what it is going to cost if you make the wrong hires.Benchmark Your EmployeesTo develop an effective recruitment and selection process in each department, benchmark all ofyour current employees (assuming your company is big enough to have employees) and find thecommon 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 intheir position. For example, if your company has a team of eight programmers and three of themare star performers, most recruiters will only take a look at the three star performers and try toduplicate their common denominatorsThe Hiring ProfilePut together a hiring profile, factoring in your business strategy as well as the commondenominators between both the star performers and the poor performers. Develop a list ofquestions that recruiters can ask for each position that will clearly uncover whether the potentialhires 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 eachquality on the scorecard in low, medium, or high importance. In the interview process, rank eachapplicant from one to five in each of these qualities. This way, you will have a record of all thepeople 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 ofrelying on a gut feeling.
  • 12. 3. Discuss the detail how the internet have changed the way companiesrecruit an enumerate advantages and disadvantages of e-recruitment?E - RecruitmentE - Recruitment is also known as “Online recruitment”, it is the use of technology or the webbased tools to assist the recruitment processes. E-recruiting, embracing the term web-basedrecruiting can be described as any recruiting processes that a business organization conducts viaweb-based tools, such as a firm’s public Internet site or its corporate intranet. We use the termsonline recruitment, Internet recruitment, and e-recruitment interchangeablyWe are living in the computer age and organizations are beginning to increasingly depend on theInternet for all types of business activities including online recruitment of candidates – morepopularly referred to as E-recruitment. The human resources departments are taking advantage ofthe 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 ofthe recruitment process. It ranges from the applicant interface for advertising vacancies andmaking job applications, to the back office processes, which allow aliaison between humanresources (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 advertisejob vacancies through worldwide web. The job seekers send their applications or curriculumvitae (CV) through an e-mail using the Internet. Alternatively job seekers place their CV’s inworldwide web, which can be drawn by prospective employees depending upon theirrequirements. There is growing evidence that organisations are using Internet technology and theWorld Wide Web as a platform for recruiting and testing candidates. E-recruitment is the latestrecruitment trend and is increasingly being adopted by small and large corporate as well asplacement firms.Advantages of E-Recruitment1. 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.
  • 13. 4. Gives a 24*7 access to an online collection of resumes.5. Cost efficient: Advertisements in internet when compared to newspaper, magazines, andemployment agencies is considerably cheap. As in the other sources continuously one has torevise the advertisement, for example a company wanted their ad to appear on every Sunday fora 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 directand immediate without any delay. Beforehand the postal services, fax was one waycommunication and was time consuming. Phones provided two way communications but resumemanagement, communicating worldwide were not possible.7. Widens the search: In the era of globalization the reach cannot be restricted at one place. Itprovides global reach that also within a fraction of second. Truly the process supports thedefinition of recruitment by creating a vast pool of potential candidates.8. Scope for better match: Information in detail is provided with clarity therefore suitablecandidate match is possible. The search is widened link with other websites are possible, theseattracts the candidates and after the job profile matches, the candidates apply.9. Standardization: The information of the candidates is collected in a standard format. Besidescollecting 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 isavailable along with past applicant data.11. Lessen paper work: As the data collection, filing, administrative work are done electronicallythus paper work or documentation has been lessened.12. Lower costs to the organization. Also, posting jobs online is cheaper than advertising in thenewspapers.Disadvantages of E-Recruitment:Apart from the various benefits, e-recruitment has its own share of shortcomings anddisadvantages. Some of them are:1. Screening and checking the skill mapping and authenticity of millions of resumes is a problemand time consuming exercise for organizations2. There is low Internet penetration and no access and lack of awareness of internet in manylocations across India.3. Organizations cannot be dependant solely and totally on the online recruitment methods.
  • 14. 4. In India, the employers and the employees still prefer a face-to-face interaction rather thansending e-mails.5. Require being computer savvy: The process is restricted within computer savvy candidates. Asthe search is based on various websites, their screening, keywords application demands for acomputer savvy person and company.6.Legal consequences: Alike other recruitment sources this source also should be aware of thewords used in the advertisements otherwise it may lead to the charge of discrimination. Forexample, Disney World was sued for screening the resumes preferring the key words used bywhites.7. Vast pool of applicants: This benefits the Organizations as well as it is disadvantage to themalso. Because the huge database cannot be scanned in depth. Either first few candidates arecalled for interview or the resumes are screened based on some key words. On the other handapplicants also face global competition.