Meaning and Definition of Recruitment and Its Policy

Employees of an organisation are essential and active factor of production. In addition to their major contributes to all the affairs of the business, they activate other factors. Without employees, the enterprise would have been a collector material and equipments. Efficient employees are an asset of the enterprise, inefficient will prove to be a liability. Therefore, very organisation should recruit the most suitable and competent persons on the basis of the needs and nature of the job. In other words, right men should be recruited taking into consideration the long term needs of the organisation and they should be placed on jobs for which they are the most suitable. After the manpower requirements are determined in terms of numbers through manpower planning and quality of employees through job analysis the process of recruitment begins. In this way recruitments is an activity of establishing contact between employer and applicant. Recruitment ordinarily means obtaining fresh supplies, but in the context of personnel management it is an activity of discovering job-seekers for the present and future needs of the organisation. In the words of Filippo, “Recruitment is the process of searching for prospective employers and stimulating them to apply for jobs in the organisation.” The efficient operation of the enterprise and its future depends upon recruitment policy.

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Recruitment Policy

A good recruitment policy should have the following considerations.

  • Recruitment should be made by central institute. Every department should send its requirement.
  • Recruitment should be made according to posts fallen vacant.
  • Vacancies must be approved by competent authorities.
  • Recruitment should be based upon competence and ability of the applicant.
  • Recruitment should be made by approved and appropriate source.
  • Employees should be clearly told about the nature of work, remuneration and other service conditions.
  • Recruitment should be made by competent and experienced employees, so that they may ask questions ascertain their suitability.
  • Recruitment should be fair and free from any favor and pressure.
  • There should not be false assurance given to candidates about promotion, wages and other amenities, because in future, if the assurance is not met the employee will lose his interest in the work.
  • Recruitment policy should be elastic, clear and comprehensive, so that necessary improvement and modification can be made as per the real situations.


Internal Sources of Recruitment

Internal sources of recruitment means shifting of the existing employees of the organisation from one place to another place and from one post to another post. Personnel records as computerized information assist in tracing out the suitable employee for the specific job within the organisation. Vacancies can also be advertised through circulars or on the notice board and the employees having requisite qualification may asked to apply for the post. These sources are as under:

By promotion of employees

Vacant posts at higher level are filled up by the promotion of employees. This promotion may be based upon both seniority and merit. In a good promotion policy employees should know what will be contribution their seniority and merit in their promotion. The employee has the privilege of working in the real situation of the business, So he does not feel any difficulty incase of promotion.


By transfer of employees

Transfer of employees is made from one place to other place in the interest of work, worker and the organisation. An effective management places right men on right jobs. If he find that a person is misfit or he will be more useful at some other place, he is shifted. In case of transfer, scale of pay remains unchanged.

By demotion

In the business under deflationary pressure employees may be demoted back to their original jobs. Demotion the moral and self respect of employees, so it should be avoided. Demotion is generally made when the promotion is conditional on the court has disapproved or vacancy was temporarily caused by have of a senior employee.


By recruitment of Ex-Employees

This source of internal recruitment is adopted to reemploy the ex-employee. It may happen that employees, who have left organisation are willing to join it. In such case the organisation may record them priority. These employees have been in the organisation in the past and have worked therefore they will immediately pick up the work without any training. The enterprise goes trusted competent and experienced employees also.

Merits / Advantage of Internal Sources of Recruitment

Promotional avenues

The existing employees of the organisation get an opportunity for promotion. They render their best services to prove their claim for the promotion.


This source is economical, because the enterprise is not required to indulge in the various formalities of recruitment. There are lesser number of candidate and the most suitable candidate is selected according to merit or seniority or both.

Encouragement to render better services

The employee tries to continue his best efforts and energies, so that he employee tries to continue his best efforts and energies, so that he may get a promotion as a reward.

Knowledge of actual working conditions and policies

The employees are aware of policies plans and the actual working conditions of the enterprises. So they are not required to waste time and energy a teaching it.

Reference not required

The service record of employees is available in the organisation. Therefore, any outside reference and its verification is not required.

Availability of efficient and experienced employees

Generally promoted employees have already been performing the job as a delegate before their promotion, so they do not have any difficulty. The organisation is also benefited because they start working without any formal training.

Less time-consuming

Internal source of recruitment are less time consuming that external source of recruitment incase of internal sources of recruitment. They can be immediately selected. Strenuous and time consuming and selection procedures are not required.

Demerits of Internal Sources of Recruitment

Promotion of inefficient employees

If the organisation adopts a policy of promotion by seniority, anyone who is senior, whether efficient or inefficient is promoted. In case of promotion on merit preferences and approaches play important part. It encourages favoritism and nepotism i.e., appointment is restricted to relatives and influential.

No opportunity for efficient outsiders

Outsiders however competent, trained and experienced, do not get opportunity for appointment, so enterprise is deprived of the new, and improved skills, which outsiders may introduce.

Not a complete solution

This source is not capable of meeting entire requirement of the organisation and it has to depend on external sources also.

External Sources of Recruitment

The limitations of internal sources of recruitment lead obviously to external sources, where employees are selected from outside the enterprise through a prescribed selection procedure:

Recruitment on the recommendation of existing employees and trade unions

The existing employees of the organisation recommend the recruitment of the members of their families, friends, relatives and acquintances and the organisation recruits them. This method will be useful, if the employees recommend most suitable candidates. The method creates a feeling of belongingness with the venture and the existing employees contribute their best efforts.

Recruitment through labor unions

In order to keep worker and their union satisfied, employees can be recruited through workers unions also. The unions have been inflicting pressures on the employers that if employees can be appointed on the recommendation of manager why not on the recommendation of managers. Why not on their recommendations. The employers have to satisfy them.

Recruitment through middlemen & contractors

There are certain individuals and organizations, which work as middlemen to supply workers. If the enterprise fails to get works directly. It meets its requirement through this source. The method is commonly used in construction works.

Direct Recruitment or recruitment at the factory gate or casual recruitment

This type of recruitment is made by labor officers. Generally workers gather at factory gate or they are called through notice. The suitable candidates are recruited. This method is applied to meet the casual needs of employees. This recruitment can be made by interview or written test or both.

Recruitment through advertisement

The enterprise advertises its vacancies in newspapers, employment news and magazines. The details of work and the types of persons required are magazines. The details of work and the types of persons required are given in the advertisement. Candidates, who think themselves suitable for the post apply for it. After written test or interview or both suitable candidates are recruited. If necessary, medical and other psychological tests are also made.

Recruitment through employment exchanges

The unemployed and underemployed males and female register themselves with the employment exchanges. Their names, addresses, qualifications and experience are noted with the employment exchange. The employers contact these employment exchanges to meet their employees requirements. These exchange direct the suitable candidates to contact employers, who after their testing, recruit suitable requisites number of candidates.

Campus interviews and field trips

The employers contact universities, technical institutes to meet their employee requirement. The heads of the institutions send a list of candidates fulfilling qualifications. Employers select candidates after interviewing them.

Recruitment through cooperation and competing ventures

Two enterprises in co-operation with each other can recruit surplus employees of the other enterprise. It may also happen that efficient employees of the competing institutions may be provided better scales and amenities and they join the firm leaving their job in the old firm.

Recruitment through advisory institutions of management consultants

Certain institutions are authorized by Indian or foreign enterprises to recruit specific type of employees on their behalf. This method is adopted in the recruitment of technical persons. These institutions are run by certain organizations jointly. They have the information about candidates. Whenever there is any vacancy, it is met through these institutions. These institutions charge commission for their services. It is a common source of recruitment in foreign countries especially in America.

Recruitment through irregular application

There are certain highly qualified persons who contact the ventures through their bio-data and interviews. If the enterprise needs such persons it can recruit them. This is an informal method.

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