Literature Review The planning function, in general, involves defining an organizations goals, establishing a strategy for achieving those

goals, and developing a comprehensive set of plans to integrate and coordinate activities (Robbins &Judge, 2013). The necessity of this function follows from the nature of organizations as purposive (goal-seeking) entities (Gibson, Ivancevich, Donnelly, &Konopaske, 2012). Planning activities can be complex or simple, implicit or explicit, impersonal or personal. Good human resource planning involves meeting current and future personnel needs.

Human resource planning is used by organizations to ensure that they have the right number and the right kind of people at the right place and at the right time, plan for future needs by deciding how many people, with what skills, the organization will need.

Where this process is carried out properly, it brings maximum long-run benefits to both the organization and the individual employee. Dainty (2000) holds the view that human resource can save the organization a lot of money and at the same time add competent staff to the organization to surpass business target. HRP also depends on the time periods and accordingly the short and long-term plans are adopted. And this time span is based on the degree of environmental uncertainties. In todays world, people are an integral part of an organization. It is important to have the right person for the right job in this competitive environment. This helps in ensuring that the task is performed efficiently and also helps in the growth and development of the organization. Thus, hiring a particular employee is a very important task for an organization. This process of hiring begins with effective recruitment of candidates. Recruitment is the process of generating a pool of capable people to apply for employment to an organization. Selection is the process by which managers and others use specific instruments to choose from a pool of applicants a person or persons more likely to succeed in the job(s), given management goals and legal requirements. Recruitment and selection is the foundation of the core activities and processes underlying

human resource management and such activities include the acquisition, training and development, and rewarding performance of workers (Gilmore, and Williams, 2009). Most of the organizations success and development is directly related to the skills and competencies of the employees. Also, the entry point into any organization is dependent on the effectiveness of the recruitment and selection practices of the hiring team within the organization. Without a good recruitment and selection process, an organization will be unable to hire the required and most appropriate candidates.

Importance of recruitment Recruitment is an integral part of a hiring process. Without an effective recruitment, effective hiring is not possible. The importance to recruitment is:

Provides organization with a pool of qualified candidates Helps increase the pool of candidates at minimum cost The more qualified the pool the better the success rate in selection Helps in reducing the probability that candidates once recruited and selected will not leave the organization Can help the organization meet affirmative action goals Can increase organizational effectiveness

Steps in recruitment The recruitment process consists of the following steps:

Step 1: Identification of Job Vacancies The first step in the recruitment process is the identification of the job vacancies available in the organization. The HR department or any other department responsible for recruitment receives information about the job vacancies. The details regarding the vacancies include: Post to be filled Number of people required New vacancy or replacement

Step 2: Job Description and Person Specification Once the job vacancies have been identified, it is important to know understand the job for which the person is being hired. It is also important to take the job environment into account. This enables to understand the person specification in terms of behavioral attributes required for the job and rather than just the technical parameters and qualifications.

Step 3: Advertise the Vacancy After the job vacancy has been identified and the Job description and person specification identified, it is important to advertise the vacancy and order to bring together the job seekers. It is one of the most important parts of the recruitment process since the advertisement process must have a balance between the advertising costs, legal provisions and quality. The most appropriate sources of recruitment should be identified and the advertisement should be managed in a judicious manner.

Step 4: Managing Response Managing the advertisement campaign carefully results in a large pool of applicants with the desired qualifications. A large pool of candidates has to be carefully managed for the short-listing process. This stage involves finding out more about the employees, informing them about the next stage of recruitment etc.

Step 5: Short-listing of Applicants After receiving more information about the applicants, short-listing of these candidates is done in order to find people with the most appropriate skills and qualifications required for the job. This stage helps in saving a lot of expenditure during the later stages of hiring. It also increases the chance of finding the person best fit for the job.

Step 6: Arrange the Interviews This last process involves arranging for interviews for the final selection process that will be done in order to hire the best person.

Sources of Recruitment The sources of recruitment can be broadly classified into two categories: 1. Internal Sources 2. External Sources

Internal sources Transfers: The employees are transferred from one department to another according to their efficiency and experience.

Promotions (through Internal Job Postings): The employees are promoted from one department to another with more benefits and greater responsibility based on efficiency and experience.

Re-employment of ex-employees: Re-employment of ex-employees is one of the internal sources of recruitment in which employees can be invited and appointed to fill vacancies in the concern. There are situations when ex-employees provide unsolicited applications also.

Retired and Retrenched Employees: Retired and Retrenched employees may also be recruited once again in case of shortage of qualified personnel or increase in load of work. Recruitment such people save time and costs of the organizations as the people are already aware of the organizational culture and the policies and procedures.

Dependents and Relatives of Employees: The dependents and relatives of Deceased employees and Disabled employees are also done by many companies so that the members of the family do not become dependent on the mercy of others.

External sources

Press Advertisements Advertisements of the vacancy in newspapers and journals are a widely used source of recruitment. The main advantage of this method is that it has a wide reach.

Educational Institutes Various management institutes, engineering colleges, medical Colleges etc. are a good source of recruiting well qualified executives, engineers, medical staff etc. They provide facilities for campus interviews and placements. This source is known as Campus Recruitment.

Placement Agency Several private consultancy firms perform recruitment functions on behalf of client companies by charging a fee. These agencies are particularly suitable for recruitment of executives and specialists. It is also known as RPO (Recruitment Process Outsourcing)

Employment Exchanges Government establishes public employment exchanges throughout the country. These exchanges provide job information to job seekers and help employers in identifying suitable candidates.

Labor Contractors Manual workers can be recruited through contractors who maintain close contacts with the sources of such workers. This source is used to recruit labor for construction jobs.

Unsolicited Applicants Many job seekers visit the office of well-known companies on their own. Such callers are considered nuisance to the daily work routine of the enterprise. But can help in creating the talent pool or the database of the probable candidates for the organization

Employee Referrals/Recommendations

Many organizations have structured system where the current employees of the organization can refer their friends and relatives for some position in their organization. Also, the office bearers of trade unions are often aware of the suitability of candidates. Management can inquire these leaders for suitable jobs. In some organizations these are formal agreements to give priority in recruitment to the candidates recommended by the trade union

Recruitment at Factory Gate Unskilled workers may be recruited at the factory gate these may be employed whenever a permanent worker is absent. More efficient among these may be recruited to fill permanent vacancies.

Weighted application blank A weighted application blank is one of the widely recruitment tool. It is a form whose responses are assigned numerical values. The weighted application evaluation is conducted by first assigning numeric values to key positions and then ranking qualified applicants based on their weighted scores. These values correlate to the skills, knowledge and abilities that are needed to perform a job. It helps in differentiating between the successful and unsuccessful candidates. Data obtained from these forms may also be used to obtain other information such as equal employment opportunity/affirmative action information, reference information, and other details on which to focus during the further selection processes. It is also a cost effective tool that can help in reducing turnover. (Beall, 1991) Recruiting yield pyramid The recruiting yield pyramid is used in order to calculate the number of applicants that must be generated in order to hire the required number of new employees. The company first determines the ratios based on which the organization determines the candidates to be selected for each level. This pyramid first helps the firm to identify the leads generated. Using the predetermined ratios, the company then determines the number of candidates to be invited for the selection process at each level.

Selection After the recruitment process has been completed, the next step is the selection of the best candidate for the job. The applicant pool is reduced gradually by using different selection tools. The implementation of the appropriate selection tools help in selecting the best person for the job. Selecting the right person for the job in very important for the following reasons: (Garry Dessler) Performance: employees with the right skills will be able to perform better for their supervisors and the organization as a whole. If the employee lacks the required skills, the performance of the entire organization may suffer with his/her employees. Cost: selecting the right candidate is important since the recruitment and selection process is a very expensive process. Legal obligations: the selection process also has legal obligations. Negligent hiring can lead to negligent hiring. Steps in selection There are several steps involved in the selection process. These steps are: 1. Preliminary interview After the applications are received by the organization, the thing done is scrutinizing the applications so as to eliminate the unqualified applicants. This is done on the basis of the information provided in the application form. But with the help of preliminary interview, misfit applicants can be rejected for reasons other than those provided in the application form. Besides, preliminary interview is also a good public relations exercise. 2. Selection test After the screening and preliminary interview is done, the jobseekers that pass this phase are called for the selection test. Different types of selection tests are conducted based on the type of job. These tests are usually conducted in order to determine the ability, aptitude and personality of the applicant. The selection test includes the following tests: a. Ability test: The ability test helps in determining how well a person can perform tasks that are related to the job. An excellent illustration of this is the typing tests given to a prospective

employer for secretarial job. This test is concerned with what one has accomplished. When an applicant claims to know something, an ability test helps in determining how well they know it. b. Aptitude test: Aptitude tests measure whether an individual has the capacity or latent ability to learn a given job if given adequate training. The aptitude test is most suitable for candidates who have very little or no work experience. Aptitude test helps to determine a persons potential to learn in a given area. There are different types of aptitude tests that are used determine several things. Types of aptitude test Mental or intelligence tests: This test measures the intellectual ability of a person and also helps to know whether a person has the mental ability to deal with certain problems or not. Mechanical aptitude tests: This test helps in determining a persons ability to learn mechanical work. They are useful in selection of mechanics, maintenance workers, etc. Psychomotor or skills tests: This test helps in measuring a persons ability to do a specific job. These tests are conducted in respect to semi- skilled and repetitive jobs. c. Intelligence test: This test helps in measuring mental ability, presence of mind (alertness), numerical ability, memory and such other aspects. This test is one of the most widely administered tests. It helps in judging numerical skills, reasoning, memory etc. d. Interest Test: This test helps in determining the likes and dislikes of candidates towards occupations, hobbies, etc. Such tests indicate which occupation is more in line with a persons interest. e. Personality Test: This test is conducted to judge maturity, social or interpersonal skills, behavior under stress and strain, etc. f. Projective Test: This test requires interpretation of problems or situations. g. General knowledge Test: This test helps to find general awareness of the candidates in the field of sports, politics, world affairs, current affairs. h. Perception Test: Perception test is conducted to find out beliefs, attitudes, and mental sharpness.etc. i. Medical Test: It reveals physical fitness of a candidate.

3. Interview The next step in the selection process is an interview. Interview is formal, in-depth conversation that is conducted in order to evaluate the applicants acceptability. Basically, interview is nothing but an oral examination of candidates. Interview can be adapted to unskilled, skilled, managerial and profession employees. Types of interview There are many different types of interview. They are: a. Informal Interview: An informal interview is an oral interview where a few questions are asked by the interviewer. It is not planned and nobody prepares for it. b. Formal Interview: this type of interview is conducted in a more formal atmosphere, with well structured questions. c. Structured Interview: In a structured interview, the interviewer uses preset standardized questions, which are put to all the interviewees. This interview is also called as Guided or Patterned interview. It is useful for valid results, especially when dealing with the large number of applicants. d. Unstructured Interview: In an unstructured interview, he interview is largely unplanned and the interviewee does most of the talking. This type of interview leads to a friendly conversation between the interviewer and interviewee but it lacks uniformity. This type of interview is useful when tries to probe the interviewee for information. e. Stress Interview: It is designed to test the candidate conditions of stress and strain. f. Group Interview: It is designed to save busy executives time and to see how the candidates may be brought together in the employment office and they may be interviewed. g. Panel Interview: A panel or interviewing board or selection committee may interview the candidate, usually in the case of supervisory and managerial positions. This type of interview pools the collective judgment and wisdom of the panel in the assessment of the candidate and also in questioning the faculties of the candidate. h. Telephone Interviews: Have a copy of your resume and any points you want to remember to say nearby. If you are on your home telephone, make sure that all roommates or family members are aware of the interview (no loud stereos, barking dogs etc.). Speak a bit slower than usual. It is crucial that you convey your enthusiasm verbally, since the interviewer cannot

see your face. If there are pauses, do not worry; the interviewer is likely just taking some notes. 4. Reference check Current employers often request for information of references (previous employers) in order to verify information provided by the applicant. Although listed on the application form, references are not usually checked until an applicant has successfully reached the fourth stage of a sequential selection process. Organizations normally ask for letters or telephone references. 5. Management assessment centers In the management assessment centers, a two to three days simulation takes place with ten to twelve candidates. These candidates perform some realistic management tasks under the observation of experts. The experts appraise each candidates performance and the best of them is selected. The most common simulation tasks conducted are: The in-basket: The candidates are confronted with an accumulation of reports, memos, notes of incoming phone call, letters, and other material collected in the in-basket of simulated job. The candidates must then take appropriate actions on each of the items. The efforts of the candidates are then evaluated by trained evaluators. Leaderless group discussions: A leaderless group is give is given a discussion question by the trainers. The group members are required to arrive at a group decision. Based on this, the trainers then evaluate each members interpersonal skills, acceptance by the group, leadership ability, and individual efforts. Management games: The participants are required to solve realistic problems as members of the simulated companies that are competing in the market place. Individual presentations: Each participant is required to make an assigned oral presentation based on which their communication skills and persuasiveness is evaluated. Objective tests: Tests of personality, mental ability, interests, and achievements are also included in an assessment center. The interview: In most assessment centers, interview is also required. The interview between the trainer(s) and each participant helps to assess the interests, past performance, and motivation of the participants. 6. Selection decision

After obtaining information through the previous steps, selection decision is made. The other stages in the selection process are used to narrow the number of the candidates. The final decision has to be made from the pool of individuals who pas the tests, interviews and reference checks. The HR manager plays a crucial role in the final selection. 7. Job offer After the applicant passes all the tests, the job offer is made to the selected candidate. The selected candidate also signs a contract with the organization. With this, the selection process comes to an end. Basic training concepts When any selection tool is used by an organization, it is assumed that the tool is reliable and valid. It is important that the organization checks for reliability and validity of the selection tools used. Reliability Reliability of any test refers to its consistency. A test is considered to be reliable if it gives the same results for two alternative tests by the same person. There are different ways to check the reliability of the tests. The first way is retest estimate. In this method, the same test is administered to the same person twice, and the results are then compared. Another way of testing the reliability is equivalent form estimate. In this, the test is administered and its results are compared with the result of the test that experts believe to be an equivalent test. Internal comparison estimate is a way of testing the internal reliability if the test. This test includes consistency in the type of questions provided for the test. Validity Reliability only tells that that the test is measuring something consistently. It does not prove that the test measures what the person intends to measure. Along with reliability, it is also important to insure that the tests are valid and they are measuring what they are said to measure. Test validity shows whether the test measures what it is supposed to measure. Criterion validity demonstrates that those who do well in the test do well in their jobs as well and vice-versa. Content validity demonstrates that the test constitutes a fair sample of the jobs content.

Selection Approaches There are different types of approaches that an organization uses in order to complete its selection process. These approaches are based on the number and type of recruited candidates. The different selection approaches followed by organizations are as follows: Multiple hurdle/ discrete approach In a multiple hurdle/ discrete approach, the candidates are rejected at each level of the selection process. This type of approach is useful when there are a large number of recruited candidates. Compensatory/ comprehensive approach When there are a few numbers of candidates, all the candidates are involved in all the levels of the selection process. The final candidate is then selected on the basis of the aggregate performance results during all the selection steps. This type of test is useful when there is few numbers of candidates. Hybrid The hybrid involves using a combination of multiple hurdle and compensatory approach.

The main purpose of recruitment and selection is to provide an equal opportunity for potential candidates to apply for vacancies, to attract highly qualified individuals, to systematically collect information about each applicants ability to meet the requirements of the advertised position, and to select a candidate that will be successful in performing the tasks and meeting the responsibilities of the position. However, according to Pilbeam and Corbridge (2002) recruitment and selection extends to attracting suitable candidates, eliminating unsuitable candidates and converting the successful candidates to an effective employee.