REVIEW OF LITERATURE:

According to Costello (2006) recruitment is described as the set of activities and

processes used to legally obtain a sufficient number of qualified people at the right
place and time so that the people and the organization can select each other in their
own best short and long term interests.

Jovanovic (2004) said recruitment is a process of attracting a pool of high quality

applicants so as to select the best among them. For this reason, top performing
companies devoted considerable resources and energy to creating high quality selection
systems. Due to the fact that organizations are always fortified by information
technology to be more competitive, it is natural to also consider utilizing this
technology to re-organize the traditional recruitment and selection process through
proper decision techniques, with that both the effectiveness and the efficiency of the
processes can be increased and the quality of the recruitment and selection decision
improved.

Barber (1998) defines Employee recruitment as “practices and activities carried on by

an organization for the purpose of identifying and attracting potential employees”.
Many large corporations have employee recruitment plans that are designed to attract
potential employees that are not only capable of filling vacant positions but also add to
the organization’s culture.

According to Montgomery (1996) is on matching the capabilities and inclinations of

prospective candidates against the demands and rewards inherent in a given job.

Need of the Recruitment and Selection Process

Dessler, (2000) found in his study that the Recruitment and selection forms a core part
of the central activities underlying human resource management: namely, the
acquisition, development and reward of the workers. It frequently forms an important
part of the work of human resource managers – or designated specialists within work
organizations. However, and importantly, recruitment and selection decisions are often
for good reason taken by non-specialists, by the line managers. Recruitment and
1
selection also have an important role to play in ensuring worker performance and
positive organizational outcomes. Recruitment and selection had the capacity to form a
key part of the process of managing and leading people as a routine part of
organizational life, it is suggested here that recruitment and selection has become ever
more important as organizations increasingly regard their workforce as a source of
competitive advantage. Of course, not all employers engage with this proposition even
at the rhetorical level. However, there is evidence of increased interest in the utilization
of employee selection methods which are valid, reliable and fair. Dessler listing the
essence of these in the following; build a pool of candidates for the job, have the
applicants fill out application forms, utilize various selection techniques to identify
viable job candidates, send one or more viable job candidates to their supervisor, the
candidate(s) go through selection interviews, and determine to which candidate(s) an
offer should be made.

Mullins (1999) indicated that to be a high performing organization, human resource

management must be able to assist the organization to place the right person in the
right job. The human resource management practices include recruitment, selection,
placement, evaluation, training and development, compensation and benefits, and
retention of the employees of an organization. Businesses have developed human
resource information systems that support: (i) recruitment, selection, and hiring, (ii) job
placement, (iii) performance appraisals, (iv) employee benefits analysis, (v) training
and development, and (vi) health, safety, and security.

Process of Recruitment

Miyake, (2002) indicated that while advertising is usual for job vacancies, applicants
were sometimes recruited by word of mouth, through existing employees. Besides
being cheaper, the “grapevine” finds employees who stay longer (low voluntary
turnover) and who are less likely to be dismissed (low involuntary turnover). People
recruited by word of mouth stay longer because they have a clearer idea of what the job
really involves. The study reviewed five studies in which average labor turnover of
those recruited by advertising was 51 percent. The labor turnover for spontaneous
applicants was 37 per cent and turnover for applicants recommended by existing
2
employees was 30 percent. One hypothesis proposed to account for this was the “best
information” hypothesis. It was argued that people who were suggested by other
employees were better and more realistically informed about the job than those who
applied through newspapers and agencies. Thus, they were in a better position to assess
their own suitability. Better informed candidates are likely to have a more realistic
view of the job, culture of the organization and job prospects.

Kersley et al (1997) reiterated the anticipatory socialization stage for students planning
to enter professions, and in particular the effects of recruitment and selection
experiences on career expectations and orientation. They agreed that the nature of
students’ job search activity, the possession of relevant work experience, and exposure
to employers through recruitment and selection activities may form part of the
“evolving sequence of a person’s work experiences” which contributes to anticipatory
socialization. It has been argued that exposure to employers through recruitment and
selection is a social process where employers and potential employees gradually
perceive a match. Through job search activities and awareness of employers’
recruitment literature and events, students gather information about the organization’s
goals, values, climate and work practices to guide their ultimate decision. Exposure to
selection procedures provides information about the culture and attributes of an
organization, and candidates form judgments from their perceptions of the fairness of
the selection methods used.

Delery and Doty (1996) argued that providing students with a greater awareness of
employment opportunities, and equipping them with the ability to be proactive in
approaching potential employers, will lead to more effective career self-management
and selection processes.

Smith et al. (1989) argue that the more effectively the recruitment stage is carried out,
the less important the actual selection process becomes. When an organization makes
the decision to fill an existing vacancy through recruitment, the first stage in the
process involves conducting a comprehensive job analysis. This may already have been
conducted through the human resource planning process, particularly where

3
recruitment is a relatively frequent occurrence. Once a job analysis has been
conducted, the organization has a clear indication of the particular requirements of the
job, where that job fits into the overall organization structure, and can then begin the
process of recruitment to attract suitable candidates for the particular vacancy.

Burack, (1985) argues that recruitment sources are significantly linked to differences
in employee performance, turnover, satisfaction and organizational commitment. In a
survey of 201 large US companies, Burack asked respondents to rate the effectiveness
of nine recruitment sources in yielding high-quality, high-performing employees. The
three top ranked sources were employee referrals, college recruiting and executive
search firms. However, cautions that, while these general results are useful, there is a
need for greater internal analysis of the relative quality of recruits yielded by different
sources.

Odiorne (1984) indicated that the quality of new recruits depends upon an
organization's recruitment practice, and that the relative effectiveness of the selection
phase is inherently dependent upon the caliber of candidates attracted.

According to Odiorne, (1984) one result of effective recruitment and selection is

reduced labour turnover and good employee morale. Recruiting ineffectively is costly,
since poor recruits may perform badly and/or leave their employment, thus requiring
further recruitment. In a cross national study of recruitment practices, suggests that, in

reality, recruitment practices involve little or no attempt to validate practices. Personnel

managers tend to rely on feedback from line managers and probationary periods and
disciplinary procedures to weed out mistakes. Firms with high quit rates live with them
and tend to build them into their recruitment practices and they do not analyze the
constitution of their labor turnover. A number of recent studies have suggested that
some recruitment methods are more effective than others in terms of the value of the
employees recruited.

4
The Selection Decision

Miyake, (2002) In a comparison of personnel selection practices in seven European

countries explored the utilization of a range of established selection methods. They
reported a general trend towards structured interviews in all countries and, while the
general validity and acceptability of methods such as work samples, group exercises
and assessment centres were widely recognized, reported usage of these methods was
infrequent.
Burton (2001) in his study of recruitment and selection practices in the USA, found
that approximately 25 percent of respondent organizations conducted validation studies
on their selection methods. Furthermore, in a rating of various selection methods, those
perceived to be above average in their ability to predict employees' job performance
included work samples, references/recommendations, unstructured interviews,
structured interviews and assessment centres.

Cran (1995) suggests that developments in the realm of selection lend some support to
those who propound the HRM thesis, where a key feature has been the increase in
testing designed explicitly to assess behavioral and attitudinal characteristics. He
further indicates that the extent to which these more sophisticated and systematic
approaches can be, and are, deployed, depends to a large degree, on sectoral
circumstances and on the wider employment-management policies being pursued.

Gould, (1984) argues that most mistakes are caused by the fact that managers
generally give little thought to the critical nature of the decisions. Employers are
surprised and disappointed when an appointment fails, and often the person appointed
is blamed rather than recognizing the weaknesses in the process and methodology,
eventhe soundest of techniques and best practice (in selection) contain scope for error.
Some of this is due to the methods themselves, but the main source is the frailty of the
human decision makers. Selection tools available to organizations can be characterized
along a continuum that ranges from the more traditional methods of interviews,
application forms and references, through to the more sophisticated techniques that
encapsulate
biographicaldata,aptitudetests,assessmentcentres,worksamples,psychological testing,

5
and so forth. Each method of selection has its advantages and disadvantages and
comparing their rival claims involves comparing each method's merit and psychometric
properties. The degree to which a selection technique is perceived as effective and
perhaps sophisticated is determined by its reliability and validity.

Recruiting Sources/Methods

Kaplan and Norton (2004) found that the number of people who refused to provide
screening information tended to be higher by telephone than in person. However,
refusals over the telephone tend to be less likely than with mailed surveys (Kelly,
2006). It should be noted that telephone methods can be used not only for recruitment,
but also for data collection. Recent advances in telephone survey methodology have
made telephone recruitment and surveying an increasingly attractive option in many
researchfields.

Drucker (1999) has studied that Recruitment procedures need not be limited to one
method. It is possible and often desirable to combine methods to enhance the
recruitment success of a particular project. For example, use of focus groups and pilot
studies that involve the community and pre-recruitment, publicity can lead to higher
rates of consent.
From the above review of literature, it is observed that the sources of recruitment and
selection are through advertising, via the internet and so forth. However, recruitment
and selection are faced with lots of challenges.

Armstrong (1991) studied the issues to consider include the type of sample (random or
convenience), cost, ease, participant time demands (e.g., total time, days of the week,
and time of day), and efficiency (e.g., staff hours per recruited participant). Researchers

have a number of methods from which to choose, including advertising, direct mail,
and telephone.

French (1982) found that there are two options of recruitment. First, Institutions or
events (such as medical offices, schools, community sports organizations, health fairs,
6
community events, and churches) often are used as a setting for recruitment. Schools
present a promising avenue for the recruitment and assessment of youth. Recruitment
at schools may not be appropriate in studies having a family or neighborhood context,
requiring a greater dispersal of participants from a larger area, or focusing on data
collection in the home. Door-to-door recruitment is another option. For large studies,
this recruitment method can be costly in terms of staff time and travel expenses, and it
is difficult to assure that recruiters randomly sample homes. Despite these concerns,
door-to-door recruitment may be a necessary recruitment strategy for certain potential
participants (e.g., those who do not have a residential phone.

Challenges of Recruitment and Selection

According to Kaplan and Norton, (2004) a common problem in recruitment and

selection is poor HR planning. Rigorous HR planning translates business strategies into
specific HRM policies and practices. This is particularly so with recruitment and
selection policies and practices. The key goal of HR planning is to get the right number
of people with the right skills, experience and competencies in the right jobs at the
right time at the right cost. Past research shows that the competency level of HR
managers has a major influence on recruitment and selection and experienced HR
experts within the HR department will not only shorten vacancy duration, but also
improve the quality of the applicants. Moreover, effective recruitment and selection is
possible only if there is a dedicated and competent HR team.

Whitmell Associates, (2004) observed that the extent of recruitment and selection
strategy integration can be gauged through four distinctive indicators. These indicators
are: the timely supply of an adequately qualified workforce, effective job analysis and
descriptions, effective selection, and the involvement of line managers in the
recruitment and selection practices. A key source of uncertainty in the business strategy
implementation is whether there is a timely supply of adequately qualified people, and
to a great extent this uncertainty involves the quality of employees. An organization
can successfully eliminate this uncertainty if its recruitment and selection policies and
practices are strategically integrated with the business.

7
Dess and Jason, (2001) suggest that in business strategy implementation the
involvement of line managers in the entire staffing process (i.e., drafting of job

descriptions, setting selection criteria and being on the panel of recruitment) is vital for
ensuring recruitment and selection to meet business needs. In other words, the line
managers are the owner of the recruitment and selection process along with HR
playing a facilitator role.
Scholars have argued that other key issues and controversies run through analyses of
human resource management and recruitment and selection: efficiency, control, and the
difficulty of orienting practice towards social justice are often cited. The first two
problematic, as Burton, (2001) notes, have been central to the management of people
for as long as managers have been present in organizations. The latter is also common
across all organizations, but is a particular academic and policy concern for smaller or
growing organization.

Johnston, (1999) analyzed that for every job in the organization, a thorough job
analysis, which includes the job description and job specification, is necessary and
based on this, an appropriate selection criteria is vital. The job description provides
indications of the duties to be undertaken, and the job specification usually prescribes
relevant personal qualities and attitudes as well as skills and knowledge required for
the job.