Advantage and Disadvantage of Internal and External Recruitment Sources:

Advantage and Disadvantage of Internal and External Sources:

Internal Sources of Recruitment
Advantages		Disadvantages
1	Morale of promote	Inbreeding
2	Better assessment of abilities	Possible morale problems of those not promoted
3	Lower cost for same jobs	Political infighting for promotions
4	Motivator for good performance	Need for management development program
5	Causes a succession of promotions
6	Have to hire only at entry level
External Sources of Recruitment
1	New blood brings news perspectives	May not select someone who will “fit” the job or organization
2	Cheaper and faster than training professionals	May cause morale problems for internal candidate not selected
3	No group of political support in organization already	Loner adjustment or orientation time
4	May bring new industry insight

Factors Influencing Recruitment:

Factors Influencing Recruitment:

Ø  External factors

Ø  Internal Factors

External Factors:

1.       Supply and Demand of skills in the labor market:

a.       If demand is high and supply of talent is less then extra ordinary requirement efforts are required

b.       E.g. programmers, financial analysts

2.       Unemployment Rate:

a.       If high unemployment rate then easy recruitment

b.       If low unemployment rate then recruitment efforts increased

c.        New sources explored

3.       Labor Market:

a.       Lower, Middle Manager: Primary importance to local market

b.       Top and Executive Level: All India market is important

4.       Political and Social Factors:

a.       Legal considerations

b.       Reservation of ST/SC/OBC

c.        Central and state acts related to jobs & labor

d.       Recruiting more than 25 employees, must notify employment exchange

e.       Preferences to Son of Soil are another political factor.

5.       Company’s Image:

a.       Perception of the Job seekers

Internal Factors:

1.       Recruitment Policy:

a.       Internal recruitment from own employees or recommended by own employees

b.       Externally: from outside organization

c.        Temporary or part time employees: attracting less applicants

d.       Recruitment of local citizens:

                                                               i.      Local language

                                                             ii.      Customs

                                                           iii.      Business Practices

2.       HRP of organization:

a.       Greatly facilitate the recruitment efforts

b.       Prospective employees, sufficient numbers with required skills, cannot be attracted overnight

c.        Examine the alternate sources

d.       Productive methods to obtain sources and employees

3.       Size of HR and organization:

a.       If the size of organization is large: recruitment less problematic

b.       Size is small of organization then more difficult and more efforts for results

4.       Cost of recruitment:

a.       Cost per hire (New hire)

b.       Operate within Budget

5.       Growth and expansion: more recruitment

a.       Decline: less recruitment

Recruitment: Definition, Purpose and Importance

Recruitment

Ø  HRP:

o   Number of people

o   Type of people organization needs

Ø  Job Analysis:

o   Job description

o   Job specification

Ø  Hiring:

o   Recruitment

o   Selection

Recruitment: (Definition, Purpose, Importance)

Ø  Attracting and obtaining as many applications as possible from eligible job seekers.

Ø  Pool of applications from which new employees are selected.

Ø  Pool of potentially qualified job candidates.

Ø  Increase the pool of job candidates at minimum cost.

Ø  Activity extends to the screening of applications so as to eliminate those who are not qualified for the job.

Ø  Help to increase success rate of selection process by reducing (screening) the number of visibly under-qualified  or over-qualified job applicants

Ø  Reduce the possibility of selected candidates will leave the organization after short period of time. (Stay Longer)

Ø  Meet the legal and social obligations

Ø  Should inform qualified individuals about employment opportunities.

Ø  Create positive image of company

Ø  Information about qualification

Ø  Create enthusiasm(interest, eagerness, zeal, zest) among the best candidate

Ø  Potential source of competitive advantage to a firm

Ø  Best pool of candidates quickly and cost effectively

Ø  Help to create more culturally diverse workforce

Poor Recruitment:

Ø  Extra cost on training and supervision

Ø  When recruitment fails to meet organization needs for talent, a typical response is to raise entry level pay scale

Ø  Distort salary and wages relationship in organization

The Behavioral Approach

The Behavioral Approach:

Ø  Attempts to define the behaviors and employee must exhibits to be effective in the job.

Ø  The various techniques define those behaviors and then require managers to assess the extent to which employees exhibits them.

Critical Incidents

Ø  This approach requires managers to keep a record of specific examples of effective and ineffective performance on the part of each employee.

Ø  Feedback About Employee: What they do well? What they do poorly?

Ø  Many Managers resist having to keep a daily or weekly log of their employee’s behavior.

Ø  It is also often difficult to compare employees because each incident is specific to that individual. 

Behaviorally Anchored Rating Scales (BARS)

Ø  Builds on the critical incidents approach.

Ø  It is designed to specifically define performance dimensions by developing behavioral anchors associated with different levels of performance.

Ø  To develop a BARS, gather a large number of critical incidents that represents effective and ineffective performances on the job.

Ø  These incidents are classified into performances dimensions, and the ones that experts agree clearly represent a particular level of performances are used as behavior example( or anchors) to guide raters.

Organization Behavior Modification (OBM)

Ø  OBM entails managing the behavior of employee through a formal system of behavioral feedback and reinforcement.

Ø  Behaviorist View of Motivation: Individual’s future behavior is determined by the past behavior that has been positively reinforced.

Ø  OB Modi. Have four components:

o   Define a set of key behavior necessary for job performance.

o   Use a measurement system to assess whether these behaviors are exhibited.

o   Manager or consultant informs employee of those behaviors, setting goals for how often the employees should exhibit those behaviors.

o   Feedback and reinforcement are provided to employees.

The Attribute Approach

The Attribute Approach

Ø  The attribute approach to performance management focuses on the extent to which individual have certain attributes (characteristics or trait e.g. initiative, leadership, and competitiveness) believed desirable for the company’s success.

Graphics Rating Scale:

Ø  A list of traits is evaluated by a five-points (or more) rating scale.

Ø  The manager considers one employee at a time, circling the number that signifies how much of that trait the individual has.

Ø  Carefully constructed graphic rating scales have a number of advantages:

o   Standardization of content permitting comparison of employees.

o   Ease of development use and relatively low development and usage cost.

o   Reasonably high rater and ratee acceptance.

Ø  A disadvantage of such rating scales is that they are susceptible to rating errors which result in inaccurate appraisals. Possible rating errors include halo effect.

Performance Dimensions	Rating
	Distinguished	Excellent	Commendable	Adequate	Poor
Knowledge	5	4	3	2	1
Communication	5	4	3	2	1
Judgment	5	4	3	2	1
Managerial Skill	5	4	3	2	1
Quality  Performance	5	4	3	2	1
Teamwork	5	4	3	2	1
Interpersonal skills	5	4	3	2	1
Initiative	5	4	3	2	1
Creativity	5	4	3	2	1
Problem solving	5	4	3	2	1