Module 2

HR Planning: Importance of HR Planning, Manpower Planning to HR Planning, Factors

Affecting HR Planning, Benefits of HR Planning, HRP Process, Tools for Demand Forecasting,
Attributes of an Effective HR Planning, Barriers to HR Planning, The Challenges for HR,
Process of Job Analysis, Job Description and Job Evaluation. Recruitment and Selection:
Importance of Recruitment, Recruitment Policies, Factors Influencing Recruitment,
Recruitment Process, Sources, Evaluation of Recruitment Process, Recruitment Strategy,
Future Trends in Recruitment; Selection Process; Selection Tests; Factors Influencing
Selections.

Introduction
Manpower planning is concerned with the determination of quantitative and qualitative
requirements of manpower for the organization. Determination of manpower requirements is
one of the most important problems in manpower planning. Job analysis and job design,
provide this knowledge. Before going through the mechanism of job analysis and job design,
it is relevant to understand the terms which are used in job analysis and job design
First part of Human resource strategy is HRP – Human Resource Planning. All other HR
activities like employee hiring, training and development, remuneration, appraisal and labour
relations are derived from [Link] planning is important in a wide variety of industries and
firms. HR planning affects what employers do when recruiting, selecting, and retaining people,
and of course these actions affect organizational results and success. The challenges caused by
changing economic conditions during recent year’s show why HR workforce planning should
occur. Staffing an organization is an HR activity that is both strategic and operational in nature.
As the HR Headline indicates, HR planning is important in a wide variety of industries and
firms. HR planning affects what employers do when recruiting, selecting, and retaining people,
and, of course these actions affect organizational results and success. Human Resources
planning mean different means to different organizations. To some companies, human
resources planning mean management development. It involve helping executives to make
better decisions, communicate more effectively, and know more about the firm. The purpose
of HRP is to make the manager a better equipped for facing the present and future. Job: A job
may be defined as a “collection or aggregation of tasks, duties and responsibilities which as a
whole, are regarded as a regular assignment to individual employees,” and which is different
from other assignments.
In other words, when the total work to be done is divided and grouped into packages, we call
it a “job.” Each job has a definite title based upon standardized trade specifications within a
job; two or more grades may be identified, where the work assignment may be graded
according to skill, the difficulty of doing them, or the quality of workmanship.
Thus, it may be noted that a position is a “collection of tasks and responsibilities regularly
assigned to one person;” while a job is a “group of position, which involve essentially the same
duties, responsibilities, skill and knowledge.” A position consists of particular set of duties
assigned to an individual.

Human Resource Planning (HRP)

According to Vetter, “HRP is the process by which management determines how the
organization should move from its current man power position to desired manpower position.
Through planning, management strives to have the right time, doing things which result in both
the organization and individual receiving maximum long run benefits”.
According to Gordon Mc Beath, “HRP is concerned with two things: Planning of manpower
requirements and Planning of Manpower supplies”
According to Beach, “HRP is a process of determining and assuming that the organization will
have an adequate number of qualified persons, available at proper times, performing jobs which
meet the needs of the enterprise and which provides satisfaction for the individuals involved”
Simply HRP can be understood as the process of forecasting an organization’s future demands
for and supply of the right type of people in the right number. In other words HRP is the process
of determining manpower needs and formulating plans to meet these needs.

Manpower Planning to HR Planning

There are two terms— manpower planning and human resource planning in the management
literature. In the current pursuit of human resource management, many organisations appear to
be practicing ‘Human Resource Planning’ as opposed to “Manpower Planning”. How are we
to under-stand this change?
Is it one which is best described as, old wine in new bottles? And, hence, simply a matter of
semantics changes, or is something more fundamental happening in the process, techniques
ambitions and outcomes of resource planning? An attempt is made in this section to address to
this question
In fact, a shift from manpower planning to human resources planning is a shift of the concept
of planning philosophy. In case of manpower planning, it is made based on the “power” or
“strengths” man processes. “Manpower” is the concern of manpower planning. Manpower
planning takes care of the “power” of people to make positive contribution.
The other side of the coin, i.e., weaknesses, is not its concern. Taking into account the
organisation’s manpower system, manpower planning includes the key elements like
manpower forecasting, job analysis, carrier path, training etc.

Nature of HRP
 Human Resource Planning deals with the manpower needs of an organization
 It helps in discovering the unused talent presently available with the organization
 It also talks about the present inventory of manpower in the organization
 It projects the manpower needs of the organization
 It deals with the procurement, utilization, improvement and preservation of manpower

Objectives of Human Resource Planning

1. To ensure optimum utilization of human resources currently available in the
organization.
2. To recruit and retain the human resources of required quality and quantity
3. To foresee the employee turnover and make the arrangement for minimizing turnover
and filling up consequent vacancies.
4. To meet the needs of the programmes of expansion, diversification etc.
5. To foresee the impact of technology on work, existing employees and future HR
requirements
6. To assess or forecast the future skill requirement of the organization.
7. To provide control measures to ensure that necessary resources are available as and
when required.

Importance of HRP
HRP is the subsystem in the total organizational planning. Organizational planning includes
managerial activities that set the company’s objective for the future and determines the
appropriate means for achieving those objectives. The importance of HRP is elaborated on the
basis of the key roles that it is playing in the organization.
(a) HRP helps in judging the effectiveness of manpower policies and programmes of
management.
(b) It develops awareness on effective utilization of human resources for the overall
development of organization.
(c) It facilitates selection and training of employees with adequate knowledge, experience and
aptitudes so as to carry on and achieve the organizational objectives
(d) HRP encourages the company to review and modify its human resource policies and
practices and to examine the way of utilizing the human resources for better utilization

Benefits of HRP
• Future Personnel needs
• Part of Strategic planning
• Creating Highly talented Personnel
• Foundation for Personnel functions
• Increasing investments in HR
• Resistance to change
• Succession Planning
• Uniting the viewpoint of line managers and staff managers

Factors Affecting HRP

EXTERNAL FACTORS and INTERNAL FACTORS

External Factors includes

1. Government Policies – Policies of the government like labor policy, industrial relation policy,
policy towards reserving certain jobs for different communities and sons of the soil etc., affect
HRP.
2. Level of Economic Development – It determines the level of HRD in the country and thereby
the supply of human resources in the future for the country.
3. Business environment – External business environmental factors influence the volume and
mix of production and thereby the future demand for human resources.
4. Information Technology – Information technology brought amazing shifts in the way how
do businesses operate. These shifts include business process reengineering, enterprise resource
planning and supply chain management.
5. Level of technology – Level of technology determines the kind of human resources required
6. International Factors – International factors like the demand for and supply of human
resources in various countries.
Internal Factors includes
1. Company strategies – Company’s policies and strategies relating to expansion,
diversification, alliances etc. determine the human resources demand in terms of quality
and quantity.
2. Human Resource Policies – HR Policies of the company regarding quality of human
resources, compensation level, and quality of work life etc. Influence human resources
plan.
3. Job analysis – Fundamentally, human resource plan is based on job analysis, job
description and job specification.
4. Time Horizons – Companies with a stable competitive environment can plan for the
long run, whereas firms with an unstable competitive environment can plan for only
short term range.
5. Type and quality of information – any planning process needs qualitative and accurate
information.
6. Company’s production / operations policy – Company’s policy regarding how much to
produce and how much to buy from outside to prepare a final product influences the
number and kind of people required.
7. Trade Unions – Influence of trade unions regarding the number of working hours per
week, recruitment sources etc., and affect HRP.

HRP Process
HRP effectively involves forecasting personnel needs, assessing personnel supply and
matching demand – supply factors through personnel related programmes. The HR planning
process is influenced by overall organizational objectives and environment of business.

Step1 Environmental Scanning It refers to the systematic monitoring of the external forces
influencing the organization. The following forces are essential for pertinent HRP.

Economic factors, including general and regional conditions.

Technological changes
Demographic changes including age, composition and literacy,
Political and legislative issues, including laws and administrative rulings
Social concerns, including child care, educational facilities and priorities.
By scanning the environment for changes that will affect an organization, managers can
anticipate their impact and make adjustments early.

Step 2 Organizational Objectives and Policies: HR plan is usually derived from the
organizational objectives. Specific requirements in terms of number and characteristics of
employees should be derived from organizational objectives
Once the organizational objectives are specified, communicated and understood by all
concerned, the HR department must specify its objective with regard to HR utilization in the
organization.
Step 3 HR Demand Forecast:
Demand forecasting is the process of estimating the future quantity and quality of people
required to meet the future needs of the organization. Annual budget and long-term corporate
plan when translated into activity into activity form the basis for HR forecast

Demand forecasting is essential because it helps the organization to

1. Quantify the jobs, necessary for producing a given number of goods,

2. To determine the nature of staff mix required in the future,
3. To assess appropriate levels in different parts of organization so as to avoid
unnecessary costs to the organization,
4. To prevent shortages of personnel where and when, they are needed by the
organization. 5. To monitor compliances with legal requirements with
regard to reservation of jobs.

Techniques like managerial judgment, ratio- trend analysis, regression analysis, work study
techniques, Delphi techniques are some of the major methods used by the organization for
demand forecasting.

Step 4 HR Supply Forecast:

Supply forecast determines whether the HR department will be able to procure the required
number of workers. Supply forecast measures the number of people likely to be available from
within and outside an organization, after making allowance for absenteeism, internal
movements and promotions, wastage and changes in hours, and other conditions of work.
Supply forecast is required because it is needed as it

1. Helps to quantify the number of people and positions expected to be available in future to
help the organization realize its plans and meet its objectives
2. Helps to clarify the staff mixes that will arise in future
3. It assesses existing staffing in different parts of the organization.
4. It will enable the organization to prevent shortage of people where and when they are most
needed.
5. It also helps to monitor future compliance with legal requirements of job reservations.
Supply analysis covers the existing human resources, internal sources of supply and external
sources of supply.

Step 5 HR Programming: Once an organization’s personnel demand and supply are

forecasted the demand and supply need to be balanced in order that the vacancies can be filled
by the right employees at the right time.

Step 6 HR Plan Implementation: HR implementation requires converting an HR plan into

action. A series of action are initiated as a part of HR plan implementation. Programmes such
as recruitment, selection and placement, training and development, retraining and
redeployment, retention plan, succession plan etc. when clubbed together form the
implementation part of the HR plan.

Step 7 Control and Evaluation:

Control and evaluation represent the final phase of the HRP process. All HR plan include
budgets, targets and standards. The achievement of the organization will be evaluated and
monitored against the plan. During this final phase organization will be evaluating on the
number of people employed against the established (both those who are in the post and those
who are in pipe line) and on the number recruited against the recruitment targets.

Evaluation is also done with respect to employment cost against the budget and wastage
accrued so that corrective action can be taken in future.

Requisites or Attributes for Successful HRP

1. HRP must be recognized as an integral part of corporate planning
2. Support of top management is essential
3. There should be some centralization with respect to HRP responsibilities in order to have
co-ordination between different levels of management.
4. Organization records must be complete, up to date and readily available.
5. Techniques used for HR planning should be those best suited to the data available and degree
of accuracy required.
6. Data collection, analysis, techniques of planning and the plan themselves need to be
constantly revised and improved in the light of experience

Barriers to HRP / Problems of the HRP

Human Resource Planners face significant barriers while formulating an HRP. The major
barriers are elaborated below:

1. Accuracy of Forecasting – HRP involves the forecasting the demand and supply of human
resources. Thus the effectiveness of planning depends on the accuracy of forecasts. If the
forecasts is not correct planning will be defective.
2. Identity Crisis - Many of the organization’s human resources do not know the whole process
of HRP. Because of this, there is generally an identity crisis. Till the specialist are developed a
strong sense of purpose, planning will be effective.
3. Support of the Top Management – HRP requires full and wholeheartedness support from the
top management. In the absence of this support and commitment, it would not be possible to
ensure the necessary resources, cooperation and support for the success of HRP.
4. Resistance from the Employees – Employees and trade unions resist manpower planning.
They feel that this planning increases their overall workload and regulates them through
productivity bargaining.
5. Insufficient Initial Efforts – Successful HRP flourishes slowly and gradually. Sometimes
sophisticated technologies are forcefully introduced just because competitors adopted them.
6. Management Information System – In the most of Indian industries, HR Information System
has not fully developed. In the absence of reliable data it would not be possible to have effective
planning.
7. Expensive & Time consuming – HRP is a time consuming process. Employers may resist
man power planning feeling that it increases the cost of manpower.
8. Conflict may exist between short term and long term HR needs. For example, there can be a
conflict between the pressure to get the work done on time and long term needs, such as
preparing people for assuming greater responsibilities. Many managers are of the belief that
HR needs can be met immediately because skills are available on the market as long as wages
and salaries are competitive. Therefore, long times plans are not required, short planning are
only needed.
9. There is conflict between quantitative and qualitative approaches to HRP. Some people view
HRP as a number game designed to track the flow of people across the department. Others take
a qualitative approach and focus on individual employee concerns such as promotion and career
development. Best result can be achieved if there is a balance between the quantitative and
qualitative approaches.
10. Non-involvement of operating managers renders HRP ineffective. HRP is not strictly an
HR department function. Successful planning needs a co-ordinated effort on the part of
operating managers and HR personnel.

Tools for Demand Forecasting

1. Ratio-trend Analysis - This is the quickest HR forecasting technique. The technique

involves studying past ratios, say, between the number of workers and sales in an organisation
and forecasting future ratios, making some allowance or changes in the organisation or its
methods.
2. Regression Analysis - This is similar to ratio-trend analysis in that forecast is based on
the relationship between sales volume and employee size. However, regression analysis is more
statistically sophisticated. A firm first draws a diagram depicting the relationship between sales
and workforce size. It then calculates regression line – a line that cuts right through the center
of the points on the diagram. By observing the regression line, one can find out number of
employees required at each volume of sales.
3. Delphi Techniques - Delphi Technique Named after the ancient Greek Oracle at the city
of Delphi, the Delphi technique is a method of forecasting personnel needs. It solicits estimates
of personnel needs from a group of experts, usually managers. The human resource planning
(HRP) experts act as intermediaries, summarize the various responses and report the findings
back to the experts. The experts are surveyed again after they receive this feedback. Summaries
and surveys are repeated until the experts’ opinions begin to agree. The agreement reached is
the forecast of the personnel needs. The distinguishing feature of the Delphi technique is the
absence of interaction among experts.
4. Work Study Technique - Commonly referred to as workload analysis, the work-study
technique predicts comprehensive activities and production for a specified future time period.
The end result of the work-study technique is an estimation of the work hours required per unit
produced.

When estimating future work hours needed, human resource management professionals must
take into consideration-
• Resignations
• Dismissals
• Strikes
• Technical difficulties
• Absenteeism
• Turnover rate

5. Econometrics Models - The econometrics model analyses the relationship of an

dependent variable with an independent variable. An example of an dependent variable are
human resources and an example of an independent variable are sales. Statistical and
mathematical techniques used throughout the econometrics model allows human resource
management professionals to estimate future demand with significant accuracy.

Job Analysis
According to Michael L. Jucius, “Job analysis refers to the process of studying the operations,
duties and organizational aspects of jobs in order to derive specifications or as they called by
some, job descriptions.”
According to DeCenzo and P. Robbins, “A job analysis is a systematic exploration of the
activities within a job. It is a basic technical procedure, one that is used to define the duties,
responsibilities, and accountabilities of a job.”

Uses of Job Analysis

1. Organization and Manpower Planning: It is helpful in organization planning, for it defines
labour in concrete terms and co-ordinates the activities of the work force, and clearly divides
duties and responsibilities.
2. Recruitment and Selection: Job analysis provides you with information on what the job
entails and what human requirements are required to carry out these activities. This information
is the basis on which you decide what sort of people to recruit and hire.
3. Placement and Orientation: Job analysis helps in matching the job requirements with the
abilities, interests and aptitudes of people. Jobs will be assigned to persons on the basis of
suitability for the job. The orientation programme will help the employee in learning the
activities and understanding duties that are required to perform a given job more effectively.
4. Job Evaluation and Compensation: Job evaluation is the process of determining the relative
worth of different jobs in an organization with a view to link compensation, both basic and
supplementary, with the worth of the jobs. The worth of a job is determined on the basis of job
characteristics and job holder characteristics. Job analysis provides both in the forms of job
description and job specification.
5. Performance Appraisal: Performance appraisal involves comparing each employee’s actual
performance with his or her desired performance. Through job analysis industrial engineers
and other experts determine standards to be achieved and specific activities to be performed.

Process of Job analysis

1. Determine the Use of the Job Analysis Information: Start by identifying the use to which the
information will be put, since this will determine the type of data you collect and the technique
you use to collect them.
2. Collection of Background Information: According to Terry, “The make-up of a job, its
relation to other jobs, and its requirements for competent performance are essential information
needed for a job evaluation. This information can be had by reviewing available background
information such as organization, class specifications and the existing job descriptions which
provide a starting point from which to build the revised job description”.
3. Selection of Jobs for Analysis: To do job analysis is a costly and time consuming process. It
is hence, necessary to select a representative sample of jobs for purposes of analysis. Priorities
of various jobs can also be determined.
4. Collection of Job Analysis Data: Job data on features of the job, requited employee
qualification and requirements, should be collected either form the employees who actually
perform a job; or from other.
5. Processing the Information: Once job analysis information has been collected, the next step
is to place it in a form that will make it useful to those charged with the various personnel
functions.
6. Preparing Job Descriptions and Job Classifications: Job information which has been
collected must be processed to prepare the job description form. It is a statement showing full
details of the activities of the job. Separate job description forms may be used for various
activities in the job and may be compiled later on. The job analysis is made with the help of
these description forms. These forms may be used as reference for the future.
7. Developing Job Specifications: Job specifications are also prepared on the basis of
information collected. It is a statement of minimum acceptable qualities of the person to be
placed on the job. It specifies the standard by which the qualities of the person are measured.
Job analyst prepares such statement taking into consideration the skills required in performing
the job properly. Such statement is used in selecting a person matching with the job.

Job Description
Job description is the immediate product of job analysis process; the data collected through job
analysis provides a basis for job description and job specification.
Job Description: is a written record of the duties, responsibilities and requirements of a
particular job. It is concerned with the job itself and not with the job holders. It is a statement
describing the job in such terms as its title, location, duties, working conditions and hazards.
Job Specification
According to Dale Yoder, “The job specification, as such a summary properly described is thus
a specialized job description, emphasizing personnel requirement and designed especially to
facilitate selection and placement.”
Flippo has defined job specification as, “Job specification is a statement of the minimum
acceptable human qualities necessary to perform a job properly ………….. It is a standard of
personnel and designates the qualities required for acceptable performance.”
In is clear from the above definitions that job specification is a statement of summary of
personnel requirements for a job. It may also be called “standard of personal for the selection

Job Enlargement: Another means of increasing employee’s satisfaction with routine jobs is
job enlargement, or increasing the number of tasks performed (i.e. increasing the scope of the
job). Job enlargement, like job rotation, tries to eliminate short job cycles that create boredom.
Unlike job rotation, job enlargement actually increases the job cycle. When a job is enlarged,
either the tasks being performed are enlarged or several short tasks are given to one worker.
Job enrichment: It is a motivational technique which emphasizes the need for challenging and
interesting work. It suggests that jobs be redesigned so that intrinsic satisfaction is derived from
doing the job. In its best applications it leads to a vertically enhanced job by adding function
from other organizational levels, making it contain more variety and challenge and offer
autonomy and pride to the employee.
JOB ENLARGEMENT vs. JOB ENRICHMENT
Job enlargement and job enrichment are both important forms of job design in order to enhance
productivity and satisfaction of the employees. They differ from each other in the following
respects:

1. Nature of Job: The major difference between job enrichment and enlargement lies in the
nature of additions to the job. Enlargement involves a horizontal loading or expansion, or
addition of tasks of the same nature. Enrichment involves vertical loading of tasks and
responsibility of the job holder; it improves the quality of the job in terms of its intrinsic worth.
2. Purpose: The purpose of job enlargement is to reduce the monotony in performing repetitive
jobs by lengthening the cycle of operation. On the other hand, the purpose of job enrichment
is making the job lively, challenging and satisfying. It satisfies the higher levelneeds such as
ego satisfaction, self-expression, and sense of achievement and advancement of Job holders.
3. Skill Requirement: Job enlargement may not necessarily require the use of additional skills
which the job holder was using in performing the job before the enlargement. This is due to
similarity of additional tasks. Enrichment calls for development and utilization of higher skills,
initiative, and innovation on the part of the job holder in performing the job.
4. Direction and Control: Job enlargement requires direction and control from external sources,
say supervisor. In fact, the job holder may require more direction and control because of
enlargement of his responsibility. Enrichment does not require external direction and control
as these come from the job holder himself. He requires only feedback from his supervisor.
A job evaluation is a systematic way of determining the value/worth of a job in relation to other
jobs in an organization. It tries to make a systematic comparison between jobs to assess their
relative worth for the purpose of establishing a rational pay structure.
Job Evaluation is a systematic process of determining the worth of one job in relation to another
job in the organisation. During job evaluation, the relative worth of various jobs are assessed
so that wages can be paid depending upon the worth of the job.
Kimball and Kimball define job evaluation “as an effort to determine the relative value of
every job in a plant to determine what the fair basic wage for such a job should be.”
Objectives of job evaluation
1. To provide a standard procedure for determining the relative worth or value of each job in a
plant.
2. To determine a rate of pay for each job which is fair and equitable with relation to other jobs
in the plant, community and industry.
3. To ensure that like wages are paid to all qualified employees on like work.
4. To promote fair and accurate consideration of all employees for advancement and transfer.
5. To provide a factual basis for the consideration of wage rates for similar jobs both within the
community and within the industry.
RECRUITMENT
Definition Recruitment forms a step in the process which continues with selection and ceases
with the placement of the candidate. It is the next step in the procurement function, the first
being the manpower planning.
Recruiting makes it possible to acquire the number and types of people necessary to ensure the
continued operation of the organisation. Recruiting is the discovering of potential applicants
for actual or anticipated organisational vacancies.
According to Edwin B. Flippo, “Recruitment is the process of searching for prospective
employees and stimulating them to apply for jobs in the organisation.”
Dales S. Beach writes, “Recruitment is the development and maintenance of adequate
manpower resources. It involves the creation of a pool of available labour upon whom the
organisation can depend when it needs additional employees.”
Thus, recruitment process is concerned with the identification of possible sources of human
resource supply and tapping those sources.
Recruitment Policy: It specifies the objectives of recruitment and provides a framework for the
implementation of the recruitment programme. It also involves the employer’s commitment to
some principles as to find and employ the best qualified persons for each job, to retain the most
promising of those hired, etc. It should be based on the goals, needs and environment of the
organisation.
Objectives of Recruitment
To attract people with multi-dimensional skills & experiences that suit the present & future
organizational strategies.
• To induct outsiders with a new perspective to lead the company.
• To infuse fresh blood at all levels of the organization.
• To develop org culture that attracts competent people to the company.
• To Head hunt/head pouch people whose skills fit the company’s values.
• To devise methodologies for assessing psychological traits.
• To Search for talent globally & not just within the company.
• To anticipate people & find people for positions
Factors influencing Recruitment
The internal factors are:
 Wage and salary policies;
 The age composition of existing working force;
 Promotion and retirement policies;
 Turnover rates;
 The nature of operations involved the kind of personnel required;
 The level and seasonality of operations in question;
 Future expansion and reduction programmes;
 Recruiting policy of the organisation;
 Human resource planning strategy of the company;
 Size of the organisation and the number of employees employed;
The external factors are:
 Supply and demand of specific skills in the labour market;
 Company’s image perception of the job seekers about the company.
 External cultural factors: Obviously, the culture may exert considerable check on
recruitment. For example, women may not be recruited in certain jobs in industry.
 Economic factors: such as a tight or loose labour market, the reputation of the enterprise
in the community as a good pay master or otherwise and such allied issues which determine
the quality and quantity of manpower submitting itself for recruitment.
 Political and legal factors also exert restraints in respect of nature and hours of work
for women and children, and allied employment practices in the enterprise, reservation of Job
for SC, ST and so on.
 Labour market condition
 Information system like employment exchanges / tele recruitment like internet.
Sources of Recruitment
Traditional Sources of Recruitment
Modern sources of Recruitment
 Traditional sources of Recruitment
Internal sources
• Present Permanent employees
• Present Temporary employees
• Retrenched / Retired employees.
• Dependents of the deceased, disabled , Retired,& Permanent employees
External Sources
• Campus recruitment.
• Private Employment Agencies/Consultants.
• Public Employment Exchanges.
• Professional associations.
• Data banks.
• Casual applicants.
• Similar organizations
• Trade unions
Internal Sources
1. Present permanent employees Organizations consider the candidates from this source
for higher level jobs due to
• Availability of most suitable candidates for jobs relatively or equally to the external
source
• To meet the trade union demands
• To motivate the present employees.
2. Present Temporary or casual employees
• Organizations find this source to fill the vacancies relatively at the lower-level owing to the
availability of suitable candidates.
• Trade union pressures.
• Motivate them on the present job
3. Retrenched or Retired Employees
• A particular organization retrenches the employees due to lack of work.
• The organization takes the candidates for employment from retrenched employees due to
obligation {compulsion}.
• Trade Union Pressures.
• Organizations prefer to reemploy the retired employees of their loyalty to the organization.
4. Dependents of the deceased, Disabled, & present Employees.
Some employees function with a view to developing the commitment & loyalty of not only the
employee but also his family members & building image & provide employment to the
dependent of deceased disabled & present e employees.
Why do Organizations prefer Internal Sources?
• Internal Recruitment can be used as a technique of motivation.
• Morale of the employees can be improved.
• Loyalty, commitment, a sense of belongingness & security of the present employees can be
enhanced.
• Employee’s psychological needs can be met by providing an opportunity for advancement.
 Employee’s economic needs for promotion, higher income can be satisfied.
• Cost of selection can be minimized.
• Cost of training, induction, orientation, period of adaptability to the organization can be
reduced.
• Trade Unions can be satisfied.
• Discharge of social responsibility towards employees.
• Stability of employment can be ensured
Why do Organizations prefer External Sources?
These are the sources which are outside the organization.
Organizations search for the required candidates from these sources for the following reasons:
The suitable candidates with skill, knowledge, talent etc. are generally available.
• Candidates can be selected without any preconceived notions or reservations
• Cost of employees can be minimized
• Expertise, excellence & experience in other organizations can be easily brought into the
organization.
• Human Resources mix can be balanced with different background can be easily brought into
the organization.
• Latest knowledge skill, innovative or creative talent can also be flowed into the organization.
• Existing sources will also broaden their personality
External Sources
Campus recruitment
Different types of organizations like industries, business firms, service organisations, social or
religious organisations can get in experienced candidates of different types from various
• Educational Institutions like colleges, universities imparting education in Science, computers,
arts, engineering, technology, medicine, management studies
Private Employment agencies.
Agencies/consultants perform recruitment functions by charging certain fees.
• Line managers are relieved from recruitment functions so that they can concentrate on their
operational activities.
• Organisations depend on this source for highly specialized positions & executive positions.
Public Employment Exchanges (PEE)
PEE provide information about vacancies to the candidates & help organization in finding out
suitable candidates.
• The employment Exchange Compulsory Notification or vacancies)Act,1959 makes it
obligatory for public sector & private sector enterprises to fill certain types of vacancies
through employment exchanges.
• These industries have to depend on public employment exchanges for the specified vacancies.
Data banks
Management can collect the biodata of the candidates from different sources like employment
Exchange educational training institutes & feed the m into the computer.
• Acts as a source of recruitment.
• Companies can get the particulars as & when required
Casual applicants
Depending upon the image of the organization, Prompt response, Participation of the
organization in the local activities, Level of unemployment
• Candidates apply casually for jobs through mail or hand over applications in the personnel
department
• Suitable for Temporary & lower level jobs. Experienced Candidates are available in
organizations engaged in similar business.
• Effective source for executive positions for newly established organizations or expanded
organisations.
Trade Unions - Unemployed/Underemployed/employees seeking change in employment seek
trade union leaders to get suitable employment
Modern Sources
Internal sources
Employee Referrals – Present employees are well aware of the qualifications, attitudes,
experience and emptions of their friends and relatives. They also know the job requirements
and organizational culture of the company. As such they can make preliminary judgement
regarding the match between the job and their friends or relatives.
External sources
 Walk—in.
 Consult—in
 Head hunting.
 Body shopping
 Mergers & Acquisitions
 Tele recruitment
 Outsourcing.
Walk—in:
• Busy organisations, rapidly changing companies do not find time to perform various functions
of recruitment
• Therefore they advise potential candidates to attend for an interview directly without prior
application on a specified date, time & place.
• Suitable candidates from among the interviewees will be selected for an appointment after
screening the candidates through tests & interviews.
Consult—in:
• Busy &dynamic companies encourage potential job seekers to approach them personally &
consult them regarding the jobs.
• The companies select from among such candidates through the selection process.
Head—Hunting:
• Companies request the potential organizations to search for the best candidates particularly
for the senior executive positions.
• Professional organizations search for most suitable candidates & advise the company
regarding the filling up of the positions.
• Head-hunters are also called “search Consultants”
Body Shopping:
Professional organizations, Hi-tech training institutes develop pool of human resources for the
possible employment.
• Prospective employers contact these organizations to recruit the candidates.
• Otherwise the organizations themselves approach the prospective employers to place their
human resources.
• These professional & training institutions are called as “Body shoppers”
• The activities are known as “Body Shopping”
• The body Shopping is used mostly for computer professionals.
• Body shopping is also known as employee leasing activity.
• The leasing firms employ the people & lease them for the use by various companies for
payment of a commission.
E-Recruitment
The technological revolution in telecommunication helped the organizations to use internet as
a source of recruitment
• Organisations advertise the job vacancies through the World Wide Web (www).
• Job seekers place their CV’s in the internet, which can be drawn by the prospective employers
depending upon their requirements.
Mergers and acquisitions –
Business alliances like acquisitions, mergers and takeovers help in getting human resources.
In addition, the companies do also have alliances in sharing their human resources on ad hoc
basis.
Outsourcing –
Some organizations recently started developing human resource pool by employing the
candidates for themselves. These organizations do not utilize the human resource, instead they
supply HRs to various companies based on their needs on temporary

Methods of Recruitment
Methods of recruitment are different from the sources of recruitment. Sources are the locations
where prospective employees are available. On the other hand, methods are way of establishing
links with the prospective employees. Various methods employed for recruiting employees may
be classified into the following categories

Traditional Techniques
Promotion – Most of the internal candidates would be stimulated to take up higher
responsibilities and express their willingness to be engaged in the higher level jobs if the
management gives them the assurance that they will be promoted to next higher level.
Transfers – Employees will be stimulated to work in the new sections or places if the
management wishes to transfer them to the places of their choice.
Advertising – It is widely accepted technique of recruitment, though it mostly provides one
way communication. It provides the candidates in different sources, the information about the
job and the company and stimulates them to apply for jobs.
Modern Techniques
Scouting - Means sending the representatives of the organizations to various sources of
recruitment with a view to persuade or stimulating candidates to apply for jobs
Representatives provide information about the company & exchange information & ideas &
clarify doubts of the candidates.
Salary Perks - Companies stimulate the prospective employees by offering higher level salary,
perks, and quick promotions.
ESOP – Companies recently started stimulating the employees by offering stock ownership to
the employees through the Employee Stock Ownership Programmes
An ESOP must invest “primarily” in the stock of its sponsoring company.
• An ESOP is the only qualified plan under ERISA allowed to borrow money.
• An ESOP is allowed to acquire the stock of its sponsoring Company in stages (multiple stock
sales).
Recruitment Process
 Recruitment Planning:
 The first step involved in the recruitment process is planning. Here, planning
involves to draft a comprehensive job specification for the vacant position, outlining
its major and minor responsibili-ties; the skills, experience and qualifications
needed; grade and level of pay; starting date; whether temporary or permanent; and
mention of special conditions, if any, attached to the job to be filled ”

 Strategy Development:
 Once it is known how many with what qualifications of candidates are required, the
next step involved in this regard is to devise a suitable strategy for recruiting the
candidates in the organisation. The strategic considerations to be considered may
include issues like whether to prepare the required candidates themselves or hire it
from outside, what type of recruitment method to be used, what geographical area
be considered for searching the candidates, which source of recruitment to be
practiced, and what sequence of activities to be followed in recruiting candidates in
the organisation.
 3. Searching: This step involves attracting job seekers to the organisation. There are
broadly two sources used to attract candidates. These are:
 Internal Sources, and External Sources
 Screening:
 Though some view screening as the starting point of selection, we have considered
it as an integral part of recruitment. The reason being the selection process starts
only after the applications have been screened and shortlisted. Let it be exemplified
with an example.
 In the Universities, applications are invited for filling the post of Professors.
Applications received in response to invitation, i.e., advertisement are screened and
shortlisted on the basis of eligibility and suitability. Then, only the screened
applicants are invited for seminar presentation and personal interview.
 The selection process starts from here, i.e., seminar presentation or interview. Job
specification is invaluable in screening. Applications are screened against the
qualification, knowledge, skills, abilities, interest and experience mentioned in the
job specification. Those who do not qualify are straightway eliminated from the
selection process.
 The techniques used for screening candidates vary depending on the source of
supply and method used for recruiting. Preliminary applications, de-selection tests
and screening interviews are common techniques used for screening the candidates.
 Evaluation and Control:
 Given the considerable cost involved in the recruitment process, its evaluation and
control is, therefore, imperative.
 The costs generally incurred in a recruitment process include:
 Salary of recruiters
 (cost of time spent for preparing job analysis, advertisement
 Administrative expenses
 Cost of outsourcing or overtime while vacancies remain unfilled
 Recruitment Strategy
 Recruitment strategy is the second step of the recruitment process, where a strategy
is prepared for hiring the resources. After completing the preparation of job
 descriptions and job specifications, the next step is to decide which strategy to adopt
for recruiting the potential candidates for the organization.
 While preparing a recruitment strategy, the HR team considers the following points
–
 Make or buy employees
• Types of recruitment
• Geographical area
• Recruitment sources
 The development of a recruitment strategy is a long process, but having a right
strategy is mandatory to attract the right candidates. The steps involved in
developing a recruitment strategy include –
 Setting up a board team
 Analyzing HR strategy
 Collection of available data
 Analyzing the collected data
 Setting the recruitment strategy

SELECTION

Selection is the process of choosing people by obtaining and assessing information about the
applicants with a view to matching these with the job requirements. It involves a careful
screening and testing of candidates who have put in their applications for any job in the
enterprise. It is the process of choosing the most suitable persons out of all the applicants. The
purpose of selection is to pick up the right person for every job.

According to Dale Yoder, “Selection is the process in which candidates for employment are
divided into two classes-those who are to be offered employment and those who are not”.

According to Thomas Stone, “Selection is the process of differentiating between applicants in

order to identify (and hire) those with a greater likelihood of success in a job”.
According to Keith Davis, “Selection is the process by which an organisation chooses from a
list of screened applicants, the person or persons who best meet the selection criteria for the
position available.”

Selection Meaning - The process of choosing the most suitable candidate for a job from among
the available applicants.

It is the process of ascertaining the qualifications, experience, KSA etc., of an applicant with
the purpose of determining his suitability for a job.

“Choosing the best within the Organization or from the outside, the most suitable person for
the current position or for the future position”

Process of Selection

The selection procedure is concerned with securing relevant information about an applicant.
This information is secured in a number of steps or stages. The objective of selection process
is to determine whether an applicant meets the qualification for a specific job and to choose the
applicant who is most likely to perform well in that job. Selection is a long process,
commencing from the preliminary interview of the applicants and ending with the contract of
employment (sometimes).

STEP 1. JOB ANALYSIS ✓ Job analysis is the basis for selecting the right candidate. ✓ Every
organization should finalize the job analysis, job description, job specification, & employee
specifications before proceeding to the next step of selection.

STEP 2. HUMAN RESOURCE PLAN

✓ Every company plans for the required number of & kind of employees for a future date. ✓
This is the basis for recruitment function

STEP 3. RECRUITMENT
✓ Recruitment refers to the process of searching for prospective employees & stimulating them

to apply for jobs in an organization. ✓ It is a basis for the remaining techniques of the selection
& the latter varies depending upon the former. ✓ It develops the applicant’s pool.

STEP 4. APPLICATION BLANK: Commonest device for getting information from a

prospective candidates. (
a) Biographical Information: Father’s name, gender, Nationality, Height & Weight, Marital
Status, Identification Mark, No. of dependents.
(b) Educational Information : Academic Qualification, Courses, Year of Passing, Subjects
offered, % of Marks, Name of Educational Institution, Training Acquired & scholarship.
(c) Work Experience: Position held, Name of the Employer, Nature of Job, Salary, Duration,
Reasons for leaving jobs.
(d) Extra Curricular: NSS, NCC Hobbies, & Debate. (e) Reference: 2 or 3 referees, who know
the character, work & abilities of the candidate.

STEP 5. WRITTEN EXAMINATION: Qualified candidates after they are screened on the basis
of the application blanks so as to measure the candidate’s ability in aptitude, Reasoning, general
knowledge and English language.

STEP 6. PRELIMINARY INTERVIEW:

To eliminate unsuitable or unqualified candidates, Due care has to be taken during weeding
process. PI should be taken by someone who inspires confidence, who is genuinely interested
in people & whose judgement in adjudging of applicants is fairly reliable.

STEP 7. BUSINESS GAMES: BG help to evaluate the applicants in the areas of decision -
making, identifying the potentialities, handling the situations, problem solving skills, human
relations skills etc.,
Group Discussion

The technique of group discussion is used in order to secure further information regarding the
suitability of the candidate for the job.
• Group discussion is a method where groups of successful applicants are brought around a
conference table & are asked to discuss either a case study or a subject matter.
• The candidates in the group are required to analyse, discuss, find alternative solutions & select
the sound solution.
• Participants are placed in a hypothetical work situation & are required to play the role
situations the game.
STEP 8. TESTS:
1883 - Francis Galton developed a variety of tests of sensory determination to measure person’s
intellect.
• Definition: “A test is a standardized, objective measure of person’s behaviour, performance
or attitude.
• It is standardized because the way the test is carried, the environment in which the test is
administered and the way the individual scores are calculated- are uniformly applied.
• It is objective in that it tries to measure individual differences in a scientific way, giving very
little room for individual bias and interpretation
Test are classified into 6 types:
1. Aptitude Test.
2. Achievement Test.
3. Situational Test

a. Aptitude Test - These test measure whether an individual has the capacity or latent
{hidden} ability to learn a given job if adequate training is given. It measure an individual
potential to learn certain skills clerical, mechanical, mathematical etc. Ex: clerical tests
incumbents ability to take notes, perceive things correctly and quickly and efficiently.

Aptitudes can be divided into

• General aptitudes.
• Mental ability/intelligence aptitude
• Specific Aptitudes--- such as mechanical, clerical, manipulative capacity.

a. Intelligence Test - This is an IQ test. These test measure capacity for comprehension,
logical reasoning, analytical skills, word fluency, verbal comprehension, numbers, memory &
space. Intelligence test include sample learning, ability, adaptability tests etc. The cope of
Intelligence test is expressed in terms of IQ.
b. Emotional Quotient - Most of the organizations realized that emotional involvement &
commitment of the employees determine their contribution to the company rather than their
intelligence quotient. As such ,emotional quotient (EQ) is used as an important criteria in the
employee selection process

EQ is calculated by using the following formula.

EQ=Emotional age/Actual age*100

c. Skill Tests - These tests measure the candidate’s ability to do a job perfectly &
intelligently. These tests are useful to select the candidates to perform artistic jobs, product
design, design of the tools, machinery, etc. The candidates can request for elected to assembly
work, testing & inspection also.
d. Mechanical Aptitude Tests - These tests measure the capabilities of spatial visualization,
perceptual speed & knowledge of mechanical matter. These tests are useful for selecting
apprentices, skilled, mechanical employees, and technicians.
e. Psychomotor Tests - These tests measure abilities like manual dexterity, motor ability,
& eye hand coordination of candidates. These tests are useful to select semiskilled workers &
workers for repetitive operations like packing & watch assembly.
b. Achievement Test
Also termed as Proficiency or knowledge tests.
◼ Measure the job-related proficiency and knowledge of the applicants
◼ Org use these tests to identify and select experienced applicants.
◼ These tests are conducted when applicants claim to know something as these tests are
concerned with what one has accomplished.
These tests include
Job Knowledge tests - Under this test, a candidate is tested in the knowledge of a particular
job.
For ex: If a junior lecturer applies for a job of senior lecturer in commerce, he may be tested in
job knowledge where he is asked questions about Accountancy Principles, banking, Law, and
Business management.
Work Sample tests - Under this test, a portion of the actual work is given to the candidate as a
test & the candidate is asked for it. If a candidate applies for a post of lecturer in management,
he may be asked to deliver a lecture on management as work sample test. Thus, the candidate’s
achievement in his career is tested regarding his knowledge about the job & actual work
experience.
c. Situational Test - This tests are generally used in middle and senior level management
selection, to test the applicant’s likely response to real-life business situations .This test
evaluates a candidate in a similar real life situation. In this test the candidate is asked either to
cope with the situation or solve critical situations of the job.
In basket - Situational test is administered through in basket.
The candidate in this test is supplied with actual letters, telephone & telegraphic message,
reports & requirements by various officers of the organization’s adequate information about
the job & organization.
The candidate is asked to take decisions on various items based on the in basket information
regarding requirements in the memoranda.
d. Interests tests: These tests show the areas of work in which a person is most interested. The
basic idea to place right man on the right job.
e. Personality Test - To measure basic aspects of applicant’s personality such as motivation,
emotional balance, self-confidence, interpersonal behaviour, deeply discover individual’s
value system. His/her emotional reactions & maturity and characteristic mood. It is expressed
in such traits like self-confidence, tact, emotional control, optimism sociability etc.

Objective Test: Most personality tests are objective tests as they are suitable for groups testing
and can be scored objectively
Projective tests: expect the candidate to interpret problems or situations based on their own
motives, attitudes, values. A picture is presented to the candidate and asked to interpret and
react to it. Since the picture is clouded, persons interpretation must come from inside and thus
get projected

f. Multidimensional Testing - However the need for multi skills is being felt by most of the
companies upon globalization, competitiveness & the consequent customer-cantered strategies.
Organization have to develop multi-dimensional testing in order to find out whether the
candidates possess a variety of skills or not, candidates ability to integrate the multi-skills &
potentiality to apply them based on situational & functional requirement.
STEP 9. INTERVIEW Interview is widely used selection method. It is face-to-face interaction
between interviewee and interviewer.
Definition: It is a conversation with a purpose and the purpose may be to get information, to
give information and to make a friend- Walter.
It is an attempt to secure maximum amount of information from the candidate concerning
his/her suitability for the job under consideration
“It is a powerful exchange of ideas, the answering of questions and communication between
two or more persons”- Scott
Unstructured Interview/ Non Directive Interview: In this interview the candidate is given the
freedom to tell about himself by revealing his knowledge on various items / areas, his
background, expectations, interest etc. Similarly, the interviewer also provides information on
various items required by the candidate
Structured or Direct Interview : In this type of interview, all the formalities, procedure like
fixing the value , time, panel of interviewers, opening and closing, intimating the candidates
officially etc. are strictly followed and arranging and conducting the interview.

 The course of the interview is replanted and structured, in advance, depending on job
requirements.
 The questions items for discussion are structured and experts are allotted different areas
and questions to be asked.
 There will be very little room for the interviewers to deviate from the questions
prepared in advance in a sequence.

Limitations of Interview

Personal Bias-
 Interviewers like other people have personal biases. 
 Their likes and dislikes affect their judgment. 
 Gender, race and attitudes similar to those of interviewers may lead to positive
evaluations.
The Halo effect-
 A single prominent characteristic of the candidate affects the judgment of the interviewer on
all other traits. 
Physical appearance of the candidate, his fluency in language, his foreign returned status or
brilliant scholastic record etc. may create a halo effect.
Constant Error-  Arises because the interview of previous candidate unduly influences the
interviewer in favour of or against the candidate.  For instance- a qualified candidate may be
underrated just because the previous candidate was brilliant.
Stereotyping-  This error arises when the interviewer believes some association b/w a
particular type of personality and particular trait, commercial origin or cultural background. 
For example- the interviewer may be of the opinion that people from urban areas are better
dressed and fluent in language as compared to people from rural areas.
Pressure to Hire-  Also undermines interviews usefulness.  In one study a group of mangers
was told to assume that they were behind in their recruiting quota.  A second group was told
that they were ahead of their quota.  Those behind evaluated the same recruits much more
highly than did those ahead.
Telegraphing-  Some interviewers help the applicant respond correctly to their questions by
telegraphing the correct answers.  Ex- question like this: “this job calls for a lot of overtime.
You can do that, can’t you?” the telegraphing is not always so obvious.  For example, an
interviewer’s favourable first impression of a candidate tends to result in a more positive
interview style by the interviewers. This can translate into sending subtle areas regarding what
answer is being sought.
GUIDELINES FOR EFFECTIVE INTERVIEWING
 Interview should never be hurried. An interview should have a definite time schedule
with ample time for its conduct.
 A description of the job should be prepared in advance. It should be in the form of a list
of job duties, required knowledge, skills, abilities and other qualifications.
 Each job duty should be rated on the basis of its importance to job success and on the
amount of time required to perform it compared to other tasks. Aim here to identify the main
duties of the job.
 Interview questions should be developed for the questions and a five point rating scale
for each question should also be developed.
 Benchmark answers should be developed for the questions and a five-point rating scale
for each question should also be developed.
 Competent, trained and experienced persons should be chosen as interviewers.
 The interview should be conducted in a quiet, comfortable and non-stressful
atmosphere.
 Proper method of interviewing should be employed and a specific set of guidelines
should be given to the interviewers
 The interviewers should listen carefully to what the applicant says and the information
collected should be recorded carefully
 The interviewer should try to minimize his personal bias or prejudice.
STEP 10. REFERENCE CHECKS: The candidates asked to supply 2 or 3 names of persons
I.e. referees who know him /her personally : Pervious employers, University Professors etc.,
STEP 11. MEDICAL EXAMINATION: Purpose of carrying physical or medical examination
is to have proper matching of job requirement with the physical ability of the candidate.
STEP 12. FINAL SELECTION: Last step in selection process. The candidate who have cleared
all the above hurdles are finally selected and a letter of job offer is offered.
STEP 13. JOB OFFER: Appointment letter contain pay-scale, allowances & other terms &
conditions, when & whom he/she should repot for joining the duty
Job offer
 Intimation of the decision to both successful as well as unsuccessful candidates
 Job offers to the successful candidates may be either immediate or after some time depending
on the time schedule
 Candidate on receiving job offer communicates acceptance or non-acceptance or requests for
modifications in terms and conditions
STEP 14. EMPLOYMENT  May or may not modify the terms and conditions requested by
the candidates  The company employees those candidates who accept the job offer
Future Trends in Recruitment
1. Gamification - Without office and in-person interactions, employees are in danger of
feeling isolated, disconnected, and bored. It is why one of the recruiting trends will be how to
ensure employees are content and engaged. One of the best ways to achieve that is through
gamification. Gamification makes 90 per cent of hires more productive.
2. Data-driven strategy - Data drive strategy is one of the latest recruiting trends.
Information and data will continue to pile up with remote work and ever-emerging changes
that the coronavirus is inducing in the world of work. That is why managers will have to
thoroughly understand data, budgets, and other essential information for a healthy bottom line.
Hence, they will ensure that every strategy aligns with crucial data and reports.
3. Increase of workforce analytics - The aftermaths of COVID-19 will continue to plague
our world and workplaces even when we step into 2021. The economy will continue being
erratic, and companies will have to ensure that they can respond to the new, hectic realm. It is
why workforce planning will be essential and added to the list of new recruiting trends, and
recruiters will implement digital tools that will analyze if every process is optimized.
4. Artificial intelligence (AI) - As technology becomes more powerful, HR departments
will experience an engulfing AI wave. Most companies will implement systems that work on
the principle of artificial intelligence, making this one of the most significant recruiting trends.
5. Virtual and augmented reality (VR/AR) - We might see the convergence of AI and
VR/AR, but even if that doesn't happen next year. It is sure that virtual and augmented reality
will play a significant role in employee onboarding and training. It is an advanced technology
that opens a path to a myriad of opportunities that can boost engagement.
6. Gig economy - The pandemic caused higher levels of unemployment than those at the
time of the Great Recession, meaning that a myriad of people is looking for jobs. Many of these
job seekers will consider short-term gigs, which can also boost employee empowerment and
entrepreneurship.
7. User-intuitive interface - The recovery from the chaos of 2020 means that people will
prefer simplicity in the coming years more than after. It is why companies will choose HR
systems and platforms that are straightforward, easy to browse, and with a seamless user
interface.
Factors Influencing Selection
Internal Factors
Size of organization • Recruiting policy • Image of organization • Image of job
Size of Organization - The most significant issues moving the recruitment process are to expand
the size of the organization, recruitment planning is compulsory for hiring more resources,
which will be handling the future operations.
Recruiting Policy - Signing from internal or external bases of group is also a factor in
recruitment policy of an organization, which touches the recruitment process. It states the
purposes of the recruitment and offers a framework for the application of recruitment programs.
Image of Organization - Organizations having a decent positive image in the market can
effortlessly entice competent resources. Keep up good public relations, given that public
services, etc., certainly helps an organization in improving its standing in the market, and
thereby appeal to the best likely resources.
Image of Job - Just like the image of the institute, the image of a job plays a precarious role in
employment. Jobs having a positive brand in terms of better payment, advancements, credit,
good work environment with career growth opportunities are considered to be the
characteristics to entice qualified candidates.

External Factors

Demographic factors − Demographic factors are associated to the features of possible

employees such as their age, religion, literacy level, gender, occupation, economic status, etc.

Labor market − Labor market panels the demand and supply of labor. For instance, if the supply
of people having a precise skill is less than the demand, then the employing will need more
hard work. On the other hand, if the demand is less than the supply, the hiring will be relatively
easier.
Unemployment rate − If the unemployment rate is high in an exact area, hiring of capitals will
be simpler and easier, as the number of candidates is very high. In contrast, if the
unemployment rate is low, then recruiting tends to be very difficult due to less number of
resources. Labor laws –
Labor laws replicate the social and political surroundings of a market, which are produced by
the central and state governments. These laws command the compensation, working
environment, security and health regulations, etc., for dissimilar types of employments. As the
government changes, the laws to change.
Legal considerations − Job reservations for different castes such as STs, SCs, OBCs are the
best instances of legal concerns. These concerns, passed by government, will have a positive
or negative impact on the recruitment policies of the organizations.
Competitors − When governments in the similar business are contending for the best capable
resources, there is a requisite to examine the competition and offer the resources packages that
are best in terms of industry values.