Human resource notes MBA Notes

What is internal and external recruitment sources and methods

Internal and External Recruitment

There are some factors, which determine whether to promote people from within or recruit from outside. Internal placement is desirable when:

• There is a large talent pool.
• Internal development is a key personnel issue.
• Business conditions are stable.
• Building cross-functional capabilities is a strategic objective of the organization.
• Skills required to perform the job can be developed in-house.

External placement is desirable when:

• There is a limited talent pool.
• Specializing in a core area is a key personnel issue.
• Business conditions are radically changing.
• There is an urgent need to upgrade the managerial cadre.

Internal sources of recruitment

The best employees can often be found from within the organization itself. Many organizations in India, therefore, do give preference to people from within the company. At the National Machinery Manufacturers Ltd., for example, whenever a vacancy exists in a department, as far as practicable, such vacancy is filled in by promoting a suitable employee from the lower cadre from the same department. When so promoting, the employee’s seniority, merits, initiative, the accuracy of work, job knowledge and personnel record are taken into consideration. Again, at Tata Motors, outside recruitment is resorted to only when the requirements for trained staff cannot be met from the resources generated by the company’s training scheme or by internal promotion. Some organizations even maintain a database of voluntary applications, which can be referred to in the future. The current belief is that it is better to search first within the company by examining the existing stock or inventory of personnel for appointments. Besides, an announcement of the vacancy can be made on the notice board. It can then be left to the individual candidate within the company to apply so as to improve his own career. This type of internal advertising can be useful for drawing attention to potential transfer and promotion prospects. At Sandoz (India) Ltd., for example, internal advertising resorts for all vacancies in manual, technical, clerical or supervisory positions. Such vacancies are notified on the notice board (besides informing employment exchanges when necessary and advertising in local newspapers). After that, the selection is made by merit. Besides, present employees are also good sources of suggestions for job applications.

Thus, when there is a specific opening in an organization, it is first desirable to look for applicants from within the organization itself. Vacancies can be filled through transfers and promotions, which again will provide further entry-level positions for which external recruitment can be done. For a good internal transfer and promotion system, one requires a good communication system and an employee information system or manpower skills inventory. Domestic advertising, as already mentioned, can be done as far as the communication system is concerned. This may be through bulletin boards, employee newspapers or special cyclostyled announcements circulated in departments. Whichever method is used, it is likely to boost the morale of the employees and develop loyal and kind employees. However, it is necessary to inform immediately such applicants the decision as to whether they were successful or not in being selected for the new opening. In the case of unsuccessful employees, it may be necessary to inform them tactfully why they could not be chosen. They can further be advised on how they can develop themselves further for future openings.

External sources of recruitment The outer sources of recruitment include the following:

1. Recruitment advertising for inviting applications in response to an advertisement by the company.
2. Reference to employment exchanges.
3. Recruitment from colleges.
4. A study of the database maintained of past applicants not selected at that time.
5. Use of specialized consultants for recruiting.

Some organizations entice persons away from other companies. This is especially true in the case of appointments like that of a sales representative. The employment exchange has unfortunately been found to be an unpopular source of recruitment by companies in India. In the case of recruitment advertising, i.e., advertisements inviting applications from outside, the principal question is as to what medium is appropriate for recruitment advertising. While many types of med are have been tried, particularly abroad, including the television, press advertising has still been found to be the chief and the most efficient medium for recruitment advertising. The objective of such advertising is to solve the recruitment problem speedily and economically. Speed and economy are however often incompatible. Speed is the biggest consideration for recruitment advertising. The question of avoiding proximity to aggressive advertising is considered not as important as using the established forum for similar publicity. For example, there are particular pages and specific days fixed for classified advertisements (situations vacant) or appointments on Wednesdays on which a majority of recruitment advertising is incorporated in certain papers like the Times of India, which probably constitute the best forum for this purpose. The advertisement must also be well drafted as it can represent the best filter against unlikely applicants thereby saving the company the unnecessary expenses and trouble of having to handle a flood of useless applications.


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