Internal and external Recruitment
Recruitment is the process of filling vacancies in an organization with candidates who satisfy the requirements of a job description. It is one of the most important functions of the Human Resource management. Recruitment consists mainly of two types (1) Internal Recruitment (2) External Recruitment
Internal recruitment – Internal recruitment is the process of filling the vacancies from within the organization, through promotions or transfers. The HR managers are informed about the vacancy and they go through the personal portfolios of all potential candidates including their performance appraisal reports to short list candidates fulfilling the description. These candidates may be subjected to further interviews and a 360- degree appraisal before finalizing the right person for the job. Internal recruitment is preferable over external recruitment because of its multiple benefits (Chan, 1996).
External recruitment – When vacancies are filled from outside the organization, the process is called external recruitment. Once the HR department is informed about a vacancy, they establish eligibility criteria from the job description provided. An advertisement notifying the vacancy and the description is posted in newspapers and employment newsletters or employment agencies are contacted for applications of interested candidates fulfilling the eligibility criteria. The applications are sorted out and candidates satisfying the requirements are subjected to screening tests and interviews. The candidates shortlisted are then offered the job and if there is an agreement on the remuneration and other terms and conditions a formal appointment letter is issued.
Role of HR department in making strategic decisions
HR department plays a crucial role in aiding strategic decision making issues like mergers, outsourcing etc. Expansion strategies like mergers need the assistance of HR managers in diversity management, training and development for implementation of change management and selection of employees to fill the vacancies emerging from the merger and retention of employees valuable to the organization. HR strategy and activities are instrumental in supporting the realization of new business propositions by ascertaining the availability of the right skill and expertise and by encouraging good teamwork, employee empowerment and a constructive culture (Schroeder, 2013, p.80)
Outsourcing is the process of hiring employees on temporary basis for specific jobs. Both domestic outsourcing and off shoring are strategic decisions that need careful HR planning. The decision to outsource must be supported by inputs from the HR department regarding its cost effectiveness, the feasibility of the decision with respect to ease of implementation; mobilizing workforce across borders may not be an easy process, preparing the existing workers to accept the temporary workforce so that they may not feel threatened, assessing the skills and qualifications of the outsourced employees and drafting a contract that documents clearly all terms and conditions related to the job to avoid controversies or legal disputes later.
Recruiting people valuable for the organization and retaining them
The HR management plays the critical role of identifying competencies that will be useful for the company and recruiting them. However these people may be in high demand because of their job specific skills and leadership qualities, hence retaining them within the company may be a challenge for the HR department. Moreover people with exceptional intelligence and competencies are looking for challenging assignments which fulfills their need of self actualization and therefore the HR manager should conceptualize such roles for them which may satisfy these needs.
Often organizations are looking for such people who have the expertise to give an impetus to the growth or expansion strategies of an organization. These experts may already be working in some other group. The HR department while making an offer to such people must formulate a remuneration package that is more than their present packages and design the contents of the job to make it interesting so that it satisfies individual aspirations. Since these people have an innovative bent of mind and display excellent leadership qualities, their retention is necessary to support future plans of the organization.
Role of Corporate Social Responsibility and Ethics in HRM
Human Resource management should incorporate CSR and ethics in its functions to reinstate the organization’s stand on the issue. It should eliminate discriminatory behavior in executing its functional responsibilities like recruitment selection and performance appraisal by offering equal opportunities for all deserving candidates. It should formulate policies to address bullying and harassment issues and design an impartial process to resolve them as part of its adherence to ethical behavioral norms.
The functions of HRM are influenced by the CSR policies of an Organization. In certain companies there are special recruitment drives for the underprivileged sections as a CSR intervention. HRM is also responsible for designing many CSR activities like adopting villages for developing them, providing training to people for self employment, initiating literacy drives in rural areas through voluntary participation of employees and implementing employee welfare schemes etc.
Influence of Management approaches on recruitment
Each organization is governed by a unique approach to management, namely classical approach, behavioral approach and the modern approach to management. The recruitment process is affected by the approaches that exist in an organization
The Classical approach – In this approach management is based on functional and administrative activities. Hence recruitment is also guided by functional requirements, based on the assumption that recruiting personnel who have the administrative and functional qualifications to perform a job will satisfy the job requirements completely and no further interventions will be needed to improve performance. Hence in this approach to management recruitment function concentrates solely on the vacancies in different functional areas and attempts to fulfill them through conventional methods of hiring.
The Behavioral approach – This approach believes that performances can be altered through interventions like the Need theories and applies them to achieve desired performances. Thus recruitment of employees is also based on this approach where employees are recruited after ascertaining their aspirations and using them as motivational tools to improve performances.
The Modern approach – This approach applies the Management by Objectives concept where the organization sets a goal for its future position after a period. The HR department is assigned the responsibility of projecting a requirement of personnel having skills in different areas who will help in realization of the goals. Recruitment process is initiated keeping in mind the organizational objectives.
Outsourcing in relation to HRM
“Outsourcing refers to the practice of transferring activities traditionally done within a firm to third party providers within the country or “off-shore” (Sen and Shiel, 2006). Human resource specific Outsourcing is the process of temporarily hiring employees to complete a project or jobs in an organization. Human resource outsourcing is done when the requirement is temporary and the organization may not have the necessary skills within the organization or may not be in a position to spare the existing employees. Also recruiting permanent employees for the job may not be feasible cost-wise. The job may need specialized competency and outsourcing may provide a better quality result. The role of HR department is critical in the decision to outsource because it advises the management on the specific skills needed, the timeline and the outsourcing contracts terms and conditions.
Research on Strategic role of HR functions
There has been considerable research on the subject on the strategic role of HR functions especially in the emerging business scenario where business is being conducted globally. Human Resource functions are not confined to the traditional activities like recruiting, training, determining compensation, performance appraisal but have taken up new roles like diversity management, out sourcing, ethical management, succession planning, stress management etc. Even the conventional roles of HRM are being performed using IT enabled platforms. Scholars and HR experts have introduced new concepts. Strategic Human Resource management refers to the development and implementation of a process intended to achieve competitive advantage by managing human capital that supports the overall business strategy of the organization (Kaufman, 2002, p 507). Kaufman discusses five theories or models preceding the emergence of the strategic role of HRM. Previously HRM was known as labor management and the workforce was treated as commodities bought in exchange of money. Other than commodities they were also viewed as machines, public utilities etc. (p. 516). The welfare theory emerged only after Taylor’s scientific management theory. Maslow’s need Hierarchy model and Herzberg’s two factor theory further contributed to the theory that human resources can be motivated to enhance performances, and human resource management contributed significantly to strategic management
Importance of recruiting the right people
In the present business environment where performance plays a critical role in the survival of an organization, recruiting the right people is of utmost significance. By right people we mean employees who not only have the required skills to perform their specific organizational tasks efficiently but also are loyal to the organization and committed to organizational interests. These employees contribute towards building the right image of the company. However retaining employees who are committed to organizational welfare is a challenge for the HRM who must formulate such policies that are supportive of employee welfare and give them a positive environment that helps them evolve within the organization.
Consequences of recruiting employees who are misfit in the organizational culture
An organization is a set up that is directed by a common goal supported by a common culture; all its employees must work in synergy to attain the goals. Any employee who fails to realize this and works against the system may be a problem for the HR department. It is the responsibility of the HR department to acclimatize new recruits to the organizational culture through induction and training programs. However some employees may not adapt to these norms easily and thus pose a challenge for the organization. Minor problems can be corrected by counseling but some errant employees may break rules and indulge in activities that may be detrimental for the organization’s reputation. In such cases organizations are faced with the dilemma whether they should retain such employees or terminate them. If corrective interventions also fail to influence them, the HR management may decide to terminate their services. However termination may not be so easy because employees are protected by legislations and also by union affiliations. Therefore employees who do not conform to the norms of an organization may pose a challenge for the HR Managers.
References
Allen, D. G., Bryant, P. C., & Vardaman, J. M. (2010). Retaining talent: Replacing misconceptions with evidence-based strategies. The Academy of Management Perspectives, 24(2), 48-64.
Chan, W. (1996); External recruitment versus internal promotion, Journal of Labor Economics, 555-570
Kaufman, B. E. (2002). The theory and practice of strategic HRM and participative management: Antecedents in early industrial relations. Human Resource Management Review, 11(4), 505-533
Schroeder, H. (2013). The importance of human resource management in strategic sustainability: An art and science perspective. Journal of Environmental Sustainability, 2(2), 4
Sen, F., & Shiel, M. (2006); From business process outsourcing (BPO) to knowledge process outsourcing (KPO): Some issues. Human Systems Management, 25(2), 145-155
