This series include Staffing function of management for XII Business Studies students for AISSCE preparation.

1. Business Studies By : Pratap Naik
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STAFFING
Vikash Residential School
External Sources of Recruitment
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Learning Objectives
External Sources
1. Direct Recruitment
2. Casual Callers
3. Advertisement
4. Employment Exchange
5. Placement Agencies
6. Campus Recruitment
7. Recommendations of Employees
8. Labour Contractors
9. Advertising on Television
10. Web Publishing
External Sources of Recruitment
Merits of External Source
Limitation of External Sources

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Learning Objectives
MERITS OF EXTERNAL SOURCE
1. Qualified Personnel
2. Wider Choice
3. Fresh Talent
4. Competitive Spirit
External Sources of Recruitment
Merits of External Sources
Limitation of External Sources

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Learning Objectives
LIMITATION OF EXTERNAL SOURCES
1. Dissatisfaction among existing staff
2. Lengthy process
3. Costly process
External Sources of Recruitment
Merits of External Source
Limitation of External Sources

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Let’s Start..

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External Sources of Recruitment
What are the external sources ??
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External sources of recruitment refer
to filling job position from outside of
the organisation.
This bring new blood to the
organisation.

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Concept of Recruitment
▰ No matter how large an organisation is, all the vacancies cannot be filled
through internal recruitment.
▰ The existing staff may be insufficient or they may not fulfill the eligibility criteria
of the jobs to be filled.
▰ External source of recruitment provides wide choice and brings new blood in the
organisation.

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1. Direct Recruitment
Under Direct Recruitment a notice is placed on the notice-board of the enterprise specifying the
details of the jobs available.
▰ Job seekers assemble outside the premises of the organisation on the specified date and
selection is done on the spot .
Suitability
▰ This method is commonly used by factories for casual vacancies of unskilled or semi-
skilled jobs.
Internal Sources of Recruitment

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1. Direct Recruitment
Advantages
▰ This method of recruitment is inexpensive as it does not involve any cost of advertising
jobs.
▰ Organisation may be able to fill vacancy within a short notice.
Disadvantage
▰ Not suitable for fill vacancy which requires skilled and specialised personnel.
▰ Time consuming if large number of people appear for interview.
Internal Sources of Recruitment

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2. Casual Callers
Many organisations maintain a database of unsolicited applicants in their offices.
▰ These database may be used to fill in the vacancies as and when arises.
Suitability
▰ This method can be used to fill in job positions at lower level or job which non-core and
non-technical.
Advantages
▰ The cost of recruiting workforce in comparison to other sources less.
▰ It is easy to find suitable person.
Disadvantage
▰ Maintaining database is a time consuming and hectic task.
▰ Suitable only for lower level position.

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3. Advertisement
Under this method, advertisement is given in newspapers or trade and professional journals
along with full description of the job and detail information about the organisation.
Suitability
▰ Most of the senior positions of industry and commerce are filled by this method and when
a wider choice is required.
Advantages
▰ Advertisement gives the management a wider range of candidates from which to choose.
▰ Along with job description , detail information about the company can be given.
Disadvantage
▰ It may bring in a large number of applications, it take lot of time to scrutinize the
application.
Internal Sources of Recruitment

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4. Employment Exchange
Employment exchanges run by the Government are used for filling unskilled and skilled operative jobs
positions
▰ Individual has to register themselves at employment exchange as potential and available
candidates.
▰ Employment exchanges help to match personnel demand and supply by serving as link between
job-seekers and employers.
Suitability
▰ This method is suitable for unskilled and skilled operative jobs
Advantages
▰ Cheaper methods of recruitment, as fee charged by employment exchange is very less.
Disadvantage
▰ Databases are often not up to date and many of the candidates referred by them may not be
found suitable.

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5. Placement Agencies and Management Consultants
Placement Agencies are private organisations which provide details information of candidates
with desirable profiles to their clients.
▰ They maintain pan India database of available prospective candidates and provide
information on demand.
▰ They charge certain fees for their services.
▰ They also helps in preliminary screening of applicants
Suitability
▰ Placement Agencies’ recommendations are suitable for entry level operative job positions.
Internal Sources of Recruitment

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5. Placement Agencies and Management Consultants
Management Consultancies have expertise in recruiting technical, professional and managerial
personnel.
▰ They specialise in middle level and top level executive placements.
▰ They maintain data bank of persons with different qualifications and skills and even
advertise the jobs on behalf of their clients to recruit right type of personnel.
Suitability
▰ Management consultancies are suitable for recruitment of middle level and top level job
positions.
Internal Sources of Recruitment

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5. Placement Agencies and Management Consultants
Advantages
▰ Saves times as placement agencies perform the preliminary screening and provide only
suitable candidates.
▰ Management consultancies may bring in the efficient and successful managers working
with competitors.
Disadvantage
▰ It is an expensive method of recruitment.
▰ The agencies may recommend candidates without proper verification.
Internal Sources of Recruitment

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6. Campus Recruitment
Recruitment from educational institutions by visiting their campus is referred to as campus
recruitment.
Many organisations maintain a close liaison with the universities, professional institutions to
recruit qualified personnel for various entry level jobs.
Suitability
▰ It is the best method to recruit fresh talent with versatile skill and knowledge.
Advantages
▰ Fresh and inexperience employee can be trained and molded as per the organisational need.
▰ Induct fresh talent in the organisation.
Disadvantage
▰ This increase training cost as employees are totally untrained.
▰ They may not handle responsibility effectively.

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7. Recommendations of Employees
Sometimes applicants introduced by present employees, to fill vacant job position in the
organisation.
▰ Such applicants are likely to be good employees because their background is sufficiently
known.
▰ Recommendation act as preliminary screening as present employee knows both applicant
and company.
Suitability
▰ This method is suitable for all types of job position in the organisation.
Advantages
▰ It is one of the cheapest source of recruitment and also there is no need of preliminary
screening.
Disadvantage
▰ Limited choice and may have to compromise on skill and talent .

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8. Labour Contractors
▰ Labour contractors are employees themselves in the companies.
▰ They maintain close contacts with labourers and can provide the required number of unskilled
workers at short notice.
Suitability
▰ This method is suitable for appointment of unskilled and causal worker at a short notice.
Advantages
▰ Labour contractors can bring appropriate type and number of workers at a short notice.
▰ Most of the labour relation and labour problems will be dealt by the labour contractor.
Disadvantage
▰ If the contractor himself leaves the organisation, all the workers employed through him may
follow him.

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9. Advertising on Television
▰ Companies may use electronic media like television to telecast vacant job positions.
▰ It a great medium as details of job requirement as well company’s profile can be presented
innovatively.
Suitability
▰ It is suitable if the company wants to have a wider choice of candidates.
Advantages
▰ Television as a media has wider reach.
▰ The company can get an opportunity to promote itself also.
Disadvantage
▰ It is a very expensive source of recruitment.
▰ Screening takes lot of time in case of more response.

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10. Web Publishing
▰ Internet and web publishing is the most important and common source of recruitment .
▰ There are certain websites specifically designed and dedicated for the purpose of providing
information about both job seekers and job opening.
▰ Almost all companies’ web site have a career column.
Suitability
▰ This method is suitable for all types of job position in the organisation.
Advantages
▰ It is a source of large database of prospective employees.
▰ These also create an instant links between job seekers and organisations.
Disadvantage
▰ Sometimes the data may not be accurate and authentic.
▰ More efforts required in the preliminary screen stage. .

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Merits of External Sources
Why should one go for External Sources??
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1. Qualified Personnel
▰ Organisation can attract more qualified and trained people to apply for vacant jobs by
using external source of recruitment.
2. Wider Choice
▰ The management has a wider choice while selecting the people for employment when it
prefers external sources.
▰ When vacancies are advertised widely, company can get a large number of applicants
from outside the organisation.
Merits of External Sources

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3. Fresh Talent
▰ External recruitment provides wider choice and brings new blood in the organisation.
▰ Though it is expensive and time-consuming.
4. Competitive Spirit
▰ If a company taps external sources, the existing staff will have to compete with the
outsiders.
▰ This will compel the existing staff to improve their productivity and performance.
Merits of Internal Sources

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Limitation of ExternalSources
Why not go for External Sources ??
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1. Dissatisfaction among existing staff
▰ External recruitment may lead to dissatisfaction and frustration among existing
employees.
▰ They may feel that their chances of promotion are reduced.
2. Lengthy process
▰ Recruitment from external sources takes a long time.
▰ The business has to notify the vacancies and wait for applications to initiate the
selection process.
3. Costly process
▰ It is very costly to recruit staff from external sources.
▰ A lot of money has to be spent on advertisement and processing of applications.
Limitations of External Sources

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Recap
1. Direct Recruitment
2. Casual Callers
3. Advertisement
4. Employment Exchange
5. Placement Agencies
6. Campus Recruitment
7. Recommendations
8. Labour Contractors
9. Advertising on
Television
10. Web Publishing
MERITS
1. Qualified Personnel
2. Wider Choice
3. Fresh Talent
4. Competitive Spirit
LIMITATION
1.Dissatisfaction
2. Lengthy process
3. Costly process
External Sources

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THANKS!
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You can find me at
9437368451
sreepratap@gmail.com