Recruitment And Selection Plays A Vital Role In Every Industry

Recruitment And Selection Plays A Vital Role In Every Industry Recruitment and Selection plays a vital role in every industry. Recruitment is also the process of locating and attracting the applicants which are capable for the vacancy. Recruitment and selection both are very closely linked. Both of the activities directs towards achieving the appropriate candidate with the requisite competencies and attitudes. The recruitment can also be understood as the foundation for the selection process by providing the number of applicants from which the selection panel and select the suitable candidates. So it is the source of manpower to meet the requirements which are needed in the staffing (Flippo, 2000). There are basically two types of recruitment, internal and external. Internal recruitment can be understood as they where the suitable candidate is chosen amongst the employees within the organization; however external recruitment is where the suitable candidate with the required competencies and attitudes are chosen externally. In simple words the ou tsiders are invited to fill the current vacancy. The aims of recruitment are: To get a pool of candidates with appropriate competencies for the vacant posts To choose the candidate with the fair process To make sure that all the recruitment activities are achieved as per lines to the organizational goals The recruitment process is conducted in a cost effective manner The term selection can be the best understood as the process to fill the vacancy either internally or externally. . It is to make a choice among all the applicants and to choose the best for the organization (Banfield, P.Kay,R, 2008). The major goal of selection is to choose the best person for the job. Selection matches the candidates as per the job requirements to understand that how well the candidate will perform to the requirements of the offered position as they do not want that the candidate to leave the organization in a short span of time. As the recruitment and selection process costs to the company hence the selectors want the best candidate. Basically the objectives of the selection are as follows: To collect the relevant information. Organize and study the information collected. Evaluate each candidate. Hence, it could be better understood as the important aspects in the organisation. The organisation does the recruitment and selection to achieve the organizational goals. The inappropriate selection can result in the loss to the organisation. There are various ways of doing the recruitment, like advertisement, head hunters and some do the recruitment fairs. Hence the recruitment and selection process differs from the sector to sector. In current scenario, the company invests the considerable amount of money to recruit and select the best suitable person for the organization so that the person could be an asset for the organisation. The long process starts from, Identifying requirements, screening, process design and the process end by offering the appointment letter. After this the training is provide to the candidate. The training also cost a considerable amount of money on the candidate. The following stages are used in the recruitment process. Refer Fig . Identify vacancy Prepare job description and specifications Advertising the vacancy Managing the response Short listing Arrange interviews Conduct interviews and decision making India is recognized as the emerging economies worldwide. India has a large population and it has got a vast land size. The land size has a diverse culture and extreme diversities in income level which vary state to state. The country has a high level of illiteracy rate among the large population, however, the country still got a huge reservoir of managers and technological advanced talent. Between 30%-35% of population resides in metros and urban cities and rest in urban, semi urban and rural centres. The countrys economic policy framework reflects features such as structure, size and diversity of the banking and the financial sector. There are basically two types of sectors operated in India, Private sector and the Public sector. In the private sector there are three main types of organization, which are Sole traders, Partnership and the franchises. The public companies are those companies which are owned by the government. These companies are well known in national and as well as the international companies. Recruitment Process Fig , Different Stages for Recruitment process The country need to have a sound and effective banking system so that the country could have a healthy economy. The banking system of any country should be smooth and should be ready to face of the challenges which could be incurred by the technological or the other external or internal forces. The major name in the Indian banking industry is State Bank of India. This bank originates in the first decades of the 19 century. Later, it got merged with the imperial bank of India. Further the government of India nationalized the Imperial bank along with the reserve bank of India and the name was changed to State bank of India. It is one of the Indias largest commercial banks. The government controls maintains a stake of 60% in State bank of India. The bank has 13,500 branch offices throughout India, staffed by nearly 220,000 employees (Source: www.sbi.co.in). State Bank of India is also present worldwide. Not only is this but the important point to notice here that, because of the effective management the SBI has to manage to make an international presence as well. Thats the only reason that they have office in almost 12 other countries around the world apart from India such as the ones listed below (Source: www.sbi.co.in) Bahrain China Japan Mauritius United States of America Indonesia United Kingdom Nepal Singapore SBI Canada SBI California South Africa Aim of the Project The main aim of this research would be to target on the importance of recruitment and selection in one of the leading public and private sector banks in India, State bank of India and I. C. I.C.I and how does it differ from a private limited bank. Secondly, would try to find out, how the recruitment and selection process affects the applicants and their views, with the help of a questionnaire. Objectives of the project To identify the general practices used by both the public limited bank, State bank of India. To identify the general practices used by both the private limited bank, I. C. I. C. I. To make a broader understanding as how the recruitment and the selection process affects the State bank of India and I. C. I. C. I banks. How the recruitment and selection in State bank of India differs from a private limited bank. To determine as which practice is the best form the comparison study. To find out the recruitment policy of ICICI Bank Importance of the Project Study The study that I have done is quite significant in one sense; its to highlight the practical application that the HR Managers need to deal with their HR policies relations and responsibilities. The study is to provide a flavour the recruitment and selection process is carried out in these banks. Reason for the Project The reasons for the project are quite clear, having a look the tremendous history of the bank. Its quite evident that any passerby would like to have a look, what is that has made the bank to become of the biggest in the country and a worldwide presence too. That is the reason that these project and research studies have been designed. The main reason for the project is to understand the business areas of these two major Indian public and private banks and understand their way of business and then primarily understand the HR plans and their working cultures. Because India being such a diverse nation and to put across any business lines or strategies it needs to be really sound and the people who are behind the planning and the implementation of these strategies need to be having the exact idea and the way the people are going to respond the idea of the bank. All this is done with a clear picture of the banks goals and objectives. So these are the main areas that are basically tired t o be analysed. The other important area to be analysed for this project is the customers and the bank relationships too. Scope of the Project The scope of this project is to understand the working and the recruitment and selection of the employees. The following points Extent of the Research Inclusions On the research Exclusion of the research Limitations to the research Literature Review As mentioned earlier, the term recruitment can be determined as the process of identifying the pool of appropriate candidates which is suitable for the job vacancy outside the organization or within the organization is a cost effective manner. However selection can be best understood as the process where the best person is chosen from a pool of desired candidates. The recruitment and the selection are the core areas of the human resource management. Hence, it makes the company to choose the appropriate person for the organization which helps in achieving the goals and performance of the organization. In simple words the recruitment selection chooses the best person for the organization. The recruitment and selection process focuses on the candidate which fulfils all the requirements of the vacancy and also trains them for the desired post. The employees are recruited on the basis of many things, good communication skills, flexibility and openness of the person etc. The recruiters sel ect the candidate on the basis of many qualities for the good performance and also on the qualities which they notice while interviewing the person (Hay, 2006). The largest country in South Asia is India. It has a huge financial system with varied financial institution. Indian banking sector was well developed prior to its Independence (1947). There was a significant presence of both foreign and domestic banks and well developed stock market. (Bery, 1996). In India there are 26 public sector bank, 22 private sector bank, 56 Urban and cooperative bank and 29 foreign banks in India (Indian banking Association). In India the top banks among all the banks is the Reserve bank of India. The Reserve bank of India supervises the banking functions of the other banks (Source: www.sbi.co.in). State bank of India is the largest financial service provider company. It provides a range of banking products. It has got 16,000 branches and India and has the highest branch in India. The company had a profit of Rs.10, 998 crores ($24.18 billion) (Source: www.sbi.co.in). Recruitment and selection plays a major role in any of the banking or financial sector. The people are the main force on which the economy depends. If the HR people take a wrong decision in selecting a candidate to work the company can die. The majority of the companies use the same pattern of recruiting and selecting the employees which are as follows: Job analysis profile of knowledge, skill, competencies, ability and the temperament suggest decision made on recruitment and selection. Identification of the need for the new employee through the re organization or by the replacement of the employee. Select the employee internally. Format the application and the process foe examining the criteria determined. Job vacancy and the other publicity material are put into the public domain. An application arrives Experimental procedures Research Methodology In my research I will be using the qualitative and the quantitative methods but will focus majorly on the qualitative method. The reason is that the qualitative data is quite descriptive and I will be able to express the results and also the feedback from the employees in a descriptive manner. The main aim of the study will be the recruitment and selection in State bank of India. The reason of retention in the companies, as the research requires more of interviews, which can be telephonic or face to face makes the report more descriptive. The questionnaire will be distributed in both the public and the private bank and the analysis will be done as which practice is the best. The project will be done in two stages. Primary research Secondary research Primary research Primary research involves the collection and also the raw data which is collected through surveys and interviews will be analysis. The result will be discussed and evaluated. The primary sources which I will be using to collect the data are- Collecting the data from common using questionnaires. Interviewing the employee and the HR managers of the multinational organization. Secondary research This research includes the study based upon the reading of the books and the journals which are referred in the library. The reading will involve the reading which is written by the different scholars on the same issue. All the arguments from the different scholars will be deeply analysis will be conducted. The conclusion will be drawn and then evaluated with the date and the finding collected by me. The basic understanding can be achieved by the review of the different books. The secondary sources which I will use to collect the data are- The digital library B.C.U library Human resource management articles and journals Business magazines Reports News paper articles Data Processing The graphs and the pie charts will be used to show the data collected from the questionnaires. The result be descriptive and will be achieved by the questionnaires and the personal contact with the Human resource management people and the employees of both the public and the private limited company. Concept of the Project The project is basically broken down into three broad areas Basic Recruit process and their importances Recruit and selection process of State Bank of India Recruitment and selection process of I. C. I. C. I A brief qualitative study is done on the three highlighted areas of the project, the main area of research is to analyse how the recruitment process of the bank are in line with the ones commonly followed by the general companies and the ones that are specifically developed by the bank keep in view their requirements etc. Methodology The following methodology is followed in this project in order to achieve the aim objectives. The following flow chart gets the information regarding the flow of the project and the way in which the result is and the analysis is carried out. Refer Fig . Recruit and Selection Process in Banks Recruit and Selection Process in Banks Recruit and Selection Process in Banks Recruit and Selection Process in Banks Recruitment Process Definition Understanding of Recruitment Recruitment means is the process of estimation of the available vaccines and to make the required arrangements for their selection and appointment. Recruitment can also be defined as the process for obtaining people for a certain job, and from the pool the right people can be selected. The formal definition of the recruitment process is Its the process of attracting and finding among them capable and suitable candidates for possible employment. The whole process starts when the new recruits are sought, and their applications are submitted to go to the next level of the process. This first process results in a pool of applicants for whom the potential new employees can be selected. The process with a wide range of publicity through different sources and the interested candidates are encouraged to submit applications for further processing and the following interviews. The most important thing to remember is to say that recruitment is the first step of contact that a company makes with its potential future employees. Recruitment is the process of searching for prospective employees and stimulating them to apply for jobs in the organisation Edwin Flippo Need for Recruitment The recruitment can be as a result form the following reasons that may arise in any of the companies or organisations The vacancies that are as result of internal departmental promotions, Employee transfers, Retirement of employees, Termination or Resignation of Employees, Permanent Disability of Employees and Death of Employees Requirement of new jobs due to expansion of the organization or diversification of business activities. Requirements that may arise due to increase in business resulting from the unexpected or massive success of a specific product or service of the company Refer fig . Fig , Reasons for Recruitment Importance of Recruitment The main purposes of the requirement are listed down of the many advantages of the requirement process a few are listed below. Refer Fig . To determine the present and the future requirements of any business in line with the HR planning To increase the capable resources for the business with a minimum impact on the budget for recruitment To increase the success and the efficiency of the selection process. This can be achieved by the reduction of under qualified and over qualified candidates To minimize the probability of candidates who may leave the organization after a short time. Because the recruitment process involves money and time. To help the company or the organization to meet the legal rules and regulations of the country Evaluate and increase the efficiency of the recruitment process and enhance the process and find out flaws from time to time in order to maintain the company standard. Fig , Functions of Requirement Effects of Improper and Unplanned Requirement Process The recruit process can be considered the deciding factor that plays a very important role in the companys search for the best talent available in the market in the form of the employees who are going to take the company to meets its goal and objectives but if the process is not carried in a planned fashion then it may result in catastrophic damage for the companys future operations. The following are a few effects that the company may face due to the poor recruitment techniques. Low productivity of the Employees Low or very little turnover of the company due to incompetency of the employees Excessive wastage of the resources due to lack of the best in class knowledge of the tools More accidents that may result at the work place creating a loss to the company Inefficient use of the tools and the companys processes Process of Recruitment The process of recruit is attracting the able candidates to fill the vacancy and become employees of the organisation. The process of recruitment has a few procedures that need to be followed at all times in order to successful completion of the recruitment process The recruitment process can be considered to be completed in the following five stages Planning the recruitment process Developing a strategy for the process Searching for the right candidate Screening the candidates Evaluation and control of the process The best recruitment process is the one that attracts a large number of applicants, who can survive all the above mentioned process. If not properly planned and executed may result in the loss of potential candidates. In order to avoid this the HR department needs to have clear idea of what is the job profile that is required and the type of assessment that are to be carried out in order to have the perfect applicant to be chosen. Refer Fig . Fig , Stages of Recruitment Process Phase 1 Planning Recruitment Process This is the first stage of the recruitment process, proper planning and process would help the company to select skilful and good potential employees from the pool of candidates. The main goal of the planning stage is the translation of the available job vacancies and the job description into an understandable format for the candidates to apply. The places where the walk-in interviews need to be taken and the people who are going to assists for the technical and the administration departments also need to made well in advance so that the potential loss of a expected candidate can be avoided. The main targets include. Refer Fig . The number of vacancies available in each of the specific category The type of applicants the company is interested The job descriptions and roles involved in the jab category Planning of the whole recruiting process from the venue to the people who are going to support the whole process. Fig , Recruitment Planning Process in an Organisation Phase 2 Developing a strategy for the process When the planning phase is successfully completed with de acceptance, form the head of the department s of the different departments. The next and the important phase of the process is to build a strategy for how the whole process is going to work and what is to be done the event of a unplanned scenario etc, who are the key and the responsible people for the whole event and any other related information tot assists the HR people to make decisions. The main important points to develop a strategy for the recruitment process are listed below. Refer Fig . Create the New Employees or Buy the New Employees * The technological tools that are required for the recruitment process Study of the Geographical distribution of the skill markets (Labour Markets) Study of Sources of Recruitment Sequencing the activities in the recruitment process Fig , Developing the Strategy for Recruitment *A Creating new employee is the process of hiring new applicants forms from the pool of skill that is a result of the advertisement and publicity. These after a proper and strategic assessment will be used for the selection of the candidate. On the other hand the Buying means hiring form a third party manpower suppliers a or taking people on a contract for a specific period of time. This type of recruitment is basically when you want people to work on a very specific and a limited basis. Phase 3 Searching for the right candidate The third phase in the process after the successful implantation of the other two is where and how to search for the perfect candidates and the perfect skills you are looking for. Studies have suggested that there are two basic ways of searching for the right candidate with the right skill set etc. This is taken in a step by step process with each other working back to back. Refer Fig . Step 1: Resource Activation request declaration form the middle management Step -2: Selling Step 1: Resource Request Typically in an organisation the recruitment process starts with a vacancy that has aroused in any of the departments such as the technical or non-technical or any of the administration departments. Once there is a vacancy or a n extra resource is required for the job then the middle mangers have need to pass it over to the top management or the bosses for a resource in the weekly or the bi-weekly meeting , then that is further cascaded to the HR to search for the suitable candidate. Firstly they have study in various aspects of the requirement, such as the Budget etc and try to see and internal was of filling the post and if they have no one to fill in then they starts using all the above mentioned ways to fill in the post. Step 2: Selling This is the second step is the immediate reaction the company is going to undergo once when they find a vacancy due for a filling, then they may use the advertising agencies in order to attract the right candidates and for further assessment before they can be hired Fig , Steps in searching phase of Recruitment Phase 4 Screening the candidates Screening is the most important of all the four in the sense that it differentiates or filter the good candidates from the bad or the ones that company would like not to hire. The recruitment process starts from the screening phase. All the scrutinised in this phase of the recruitment process, the following points are worth consideration to understand the process in more detail. Purpose of the screening process The main purpose of the screening process is for sough ting out the unfavourable conditions or the candidates who are not up to the mark and the standards at a early stage of the recruitment process. In the screening process there are no clear job specifications that are required for the candidate to have for the job. But as a good experience and good practice the candidates qualifications are judged on the basis of their skills, knowledge of the subject, attitude and important of all the interest to do the job. Refer Fig . Fig , Screening process for Recruitment The screening process vary for the different for kind of jobs that are required for filling and every job will need to be handle in a different way depending on the criticality of the job and the type of skills that are required for Example: There are some specific jobs such a s hiring a Professor for a educational Institution such as a university is a kind of typical situation. The applications that are received as a response to the publicity and the advertisements are screened and only the eligible candidates are called fro a personal interview. Then the interview is taken y a selection committee which may comprise of the important people of the university such as the Vice Chancellor, Registrar and the Subject Experts who can conduct the interviews. So even there are some certain ways to follow for the general situation for the screening process there may be certain situations there may be some enhancement to be made to the existing system or special type of committees can be brought in to do the job screening the candidate for the job. Phase 5 Evaluation and control of the process The evaluation and control is necessary and termed as the important step in the recruitment process. Because of the recruitment process there are costs incurred by the company so there needs to some kind of control over the money that is going into the recruit process with the budget that has been selected by the company. The following are the ways in which there can be money to be spent by the company. Salaries and perks for the people involved in the recruitment process The time of the management and the professional people spent on the preparation of the job vacancy numbers, Job descriptions, Advertisements, Agency Liaison, so on and so forth. The important and major way of spending on the recruitment is the advertisement and the contracts with the third party agents. Overheads and unplanned events that are a result of recruitment process and the administrative expenses. The extra cost that is resulting from the overtime and the outsourcing while the vacancies remain unfilled for a long time or there are very limited resources on a specific skill set. The cost that the company needs to bare due to the selection of unsuitable or candidates not fitting the bill for the job are selected. The above mentioned five phases of the recruitment process are the very common ones that are used for the recruitment by the organisation. But as it mentioned earlier as well that there may be other ways in which the recruitment process can be taken. So this implies to say that the recruitment process is a critical process and needs a lot of planning and in depth knowledge to pick the best candidates who have the desired qualities professionally and personally. The more the people who fit the job are picked the company will have a sure success then by selecting unsuitable people. Sources of Recruitment The other important area of the recruitment process is the sources of recruitment. The following the common ways in which the organisations generally source for the recruitment process in their companies. Refer Fig . The flow chart gives the information regarding the major of sourcing that can be used in the recruitment process. In order to have a diverse work force and good work culture its always better to have a new recruitment in order to have a new ideas to come in the process which may help the organisation in many ways. Because by the internal referral schemes it may be for a certain and a certain number of vacancies but if this type of sourcing is followed then it may have a certain disadvantages as well. Because this would have an impact on the companys future as well, if not corrected and acted in time. The sources of recruitment are broadly classified in two main categories Internal Sources of Recruitment External Source of Recruitment Internal Source of Recruitment Promotions and Transfers This is a very effective measure for the filling of certain type of vacancies depending on the personal records and the achievements of an employee. The personal records may include educational qualifications and the skill level incurred in the process of acquiring experience. Promotions are a best way to build up good relations between the organisation and the employee. This is way to build the morale of the employee apart from the encouraging the component individuals who are self motivated to make them more recognisable for a promotion. So, this is a good way to enhance the performance for the employees. On the other hand the transfers are other way to make the employees view the organisation on a broad spectrum. This may even be helpful to find employees for the future promotions. Employee Internal Referrals Employees can help their pals and family by acquainting them with the advantages of the company and the vacancy that are available in the company. The major advantage of this type of source is that the employees may only bring those referrals those they feel will fit the bill. This also gets the feeling of ownership for the employees. Former Employees This type includes the employees who are retired by but still can work on limited time basis such as Part time and also other employees who have left the company in the past but would return for better prospects or higher compensations. There are a lot of advantages in this type because these employees have a lot of information and good understanding of the processes of the company. This would further minimise the time in a sense there is no need for induction etc. This in turn saves time and money to the company. Recalling Earlier Employees This type can be used to recall certain employees who have left the company or made redundant in the past, because of recession or lack of business or order to conti