Module III

HUMAN RESOURCE INFLOW

Introduction
One of the important functions of the Human Resource Department is the acquisition of
required manpower for the organization. The acquisition process involves mainly three steps:
I. Recruitment
II. Selection
III. Placement
Recruitment
According to Edwin B Flippo, “Recruitment is the process of searching for prospective
employees and stimulating them to apply for the jobs in the organization.”
When more persons apply for jobs there will be a scope for recruiting better persons. It is
often termed as positive as it stimulates people to apply for jobs to increase the number of
applicants for a job.
Factors Affecting Recruitment
1. Size of the organization
2. Employment Conditions
3. Salary Structure and Working Conditions
4. Rate of Growth of enterprise
Types or Sources of Recruitment
A. Internal Sources
Internal sources are one of the important sources of recruitment. The employees already
working in the organization may be more suitable for higher jobs than those recruited
from outside. The present employees may help in the recruitment of new persons also.
The internal sources of recruitment include:
1. Transfer
Transfer involves shifting of persons from present job to other similar jobs. These do
not involve any change in rank, responsibility and prestige. The number of persons
does not increase with transfer but vacant posts may be filled.
2. Promotion
Promotion refers to shifting of persons to positions carrying better prestige, higher
responsibilities and more salaries. The higher positions falling vacant may be filled
up from within the organization.

Arun M S, Assistant Professor, Department of Commerce, Sree Vivekananda College, Kunnamkulam pg. 1
 3. Present Employees
The present employees of an enterprise may be informed about likely vacant
positions. The employees recommend their relations or persons intimately known to
them. Management is relieved of botheration for looking out prospective candidates.
B. External Sources
Every enterprise has to use external sources for recruitment to higher positions when
existing employees are not suitable. More persons are needed when expansions are
undertaken. External methods of recruitment include:
1. Advertisement in print media
Advertisement is the best method of recruiting persons for higher and experienced
jobs. The advertisements are given in local or national press, trade or professional
journals. Management gets a wider range of candidates for selection.
Except for the occasional recruitment advertisement on radio and television, the
media are mainly made up of the following categories of press.
(a) National newspapers:
The newspapers now carry a separate section for the job aspirants.
(b) Trade, technical and professional journals:
These are the more obvious choices for recruitment advertising addressed to those
with special skills, qualifications and experience. For example, jobs in advertising are
advertised in The Brand Reporter whereas computer recruitment ads are more
suitable in magazines like PC Quest or Chip.
(c) Regional press:
Local dailies and weeklies are used to advertise jobs offered by local employers. The
vernacular newspapers carry a lot of local accountant and sales jobs.
(d) Free publications:
A number of freely distributed publications gain their revenue chiefly from
recruitment advertising, e.g. Curiosity, which are distributed in selective places or
even in the office places. Recruitment advertising is also featured in the free
newspapers delivered weekly to homes.
(e) Advertisement in Audio Visual Media
Audio-visual media mainly include radio, television, short films, Internet, moving
slides, film slides, etc.
(f) Advertising in Websites

Arun M S, Assistant Professor, Department of Commerce, Sree Vivekananda College, Kunnamkulam pg. 2
 Online advertising, also known as online marketing, Internet advertising, digital
advertising or web advertising, is a form of marketing and advertising which uses the
Internet to promote products and services to audiences and platform users.
2. Employment Exchanges
Employment exchanges run by the government are also a good source of recruitment.
Unemployed persons get themselves registered with these exchanges. The vacancies
may be notified with the exchanges, whenever there is a need. The exchange supplies
a list of candidates fulfilling required qualifications.
3. Educational Institutions
The jobs in trade and industry are becoming technical and complex. These jobs
require certain amount of educational and technical qualifications. The employees
maintain a close relation with universities and technical institutions. The students are
spotted during the course of their studies.
4. Unsolicited Applicants
Persons in search of employment may contact employees through telephone, by post
or in person. Generally employers with good reputation get unsolicited applications.
If an opening is there or is likely to be there then these persons are considered for
such jobs. Personnel department may maintain a record of unsolicited applications.
5. Professional Organisations
Professional organizations maintain complete bio-data of their members and supply it
to companies on demand. These organizations also act as exchange between the
members and recruiting firms. Firms can seek clarifications and clear doubts about
persons they want to recruit.
6. Data Banks
The recruiting firms can prepare a data bank about various persons in different fields.
They can collect information from educational institutions, employment exchanges,
professional organizations etc.
7. Similar Organisation
The organizations producing similar products or having the same line of business act
as an important source of recruitment. The persons having same experiences as
required by the recruiting firms will be available in similar organizations.
8. Casual Callers

Arun M S, Assistant Professor, Department of Commerce, Sree Vivekananda College, Kunnamkulam pg. 3
 Management may appoint persons who casually call on them for meeting short-term
demands, this will avoid following a regular procedure of selection. These persons
are appointed for short periods only.
9. Labour Contractors
It is quite common to engage contractors for the supply of labour. When workers are
required for short periods and are hired without going through the full procedure of
selection etc. Contractors or jobbers are the best source of getting them.
10. Trade Unions
Generally, unemployed and underemployed persons make a request to trade union
leaders for finding suitable jobs for them. Union leaders are aware of various
vacancies in firms and also know the management. These leaders can help in the
recruitment of suitable persons.
Selection
Recruitment ends with the selection of employees. Selection is a process of choosing the right
talents from the pool of applicants. Selection is a process of identifying and hiring the
applicants for filling the vacancies in an organization. Employee selection is a process of
matching organization's requirements with the skills and the qualifications of individuals.
Selection Process
The selection process can be defined as the process of selection and short listing of the right
candidates with the necessary qualifications and skill set to fill the vacancies in an
organisation. The selection process varies from industry to industry, company to company
and even amongst departments of the same company.
Steps in Selection Process
1. Announcement of Job Position
The first step in the selection process is the announcement of job position. Its
objective is to communicate the job position, description of job, qualification
required, responsibilities involved, compensation packages etc. The HR manager
utilizes appropriate media for communicating job positions.
2. Receiving Applications
The applications received from candidates contain all particulars which facilitate
choosing the right candidates. It helps the human resource department to make a
preliminary screening of the information so that some applicants who do not possess
the required qualifications may be rejected at this stage.
3. Screening of Applications
Arun M S, Assistant Professor, Department of Commerce, Sree Vivekananda College, Kunnamkulam pg. 4
 Proper screening of applications is necessary to verify that the candidates furnish all
required information. On screening the applications those with incomplete
information are rejected. Similarly applicants who do not satisfy the qualifications or
skill requirements are also eliminated. Thus eligible applications are accepted for
further selection process.
4. Employee tests
Employee tests are widely used to measure the ability, skills and aptitude of the
candidate applying for the jobs. The objective of employment test is to short list
sufficient number of candidates to appear for personal interview and facilitate
selection.
5. Personal Interview
Candidates qualified in the selection tests are short listed for personal interview.
Interview is a face to face contact of the candidate to evaluate his or her suitability for
the job position. The object of conducting the interview is to elicit information
directly from the candidate supporting those provided with the application.
6. Reference and Verifications
The candidates qualifies in the personal interview are further short listed for
appointment. But before their final selection it is necessary to verify their identity,
qualification, character, integrity etc from the persons given as references by
applicants. Usually teachers or reputed personalities who know the candidate well are
given as references for employment.
7. Medical Examination
The reference verification will reveal the identity, integrity and good conduct of the
candidate qualifies within personal interview. The next step is to verify the physical
fitness of the candidate. It is necessary to ensure that the candidates are physically fit
to undertake the job and do not have any physical illness or ill health. The candidates
are required to undergo medical examination by a qualified medical board consisting
of a group of medical officers. Such examination will reveal whether the candidate is
physically fit for the job specified.
8. Appointment Letters
After the candidates have successfully completed the above stages the next stage is to
issue appointment letters to qualified candidates. The appointment letter is a
document offering job for a specified remuneration. The letter is to be send by
registered post in the address given for communication.
Arun M S, Assistant Professor, Department of Commerce, Sree Vivekananda College, Kunnamkulam pg. 5
Placement
Placement is the process of assigning specific jobs and work places to the selected
candidates. i.e. matching the individual and the job. Correct placement is in no way less
important than accurate selection.
In the simple words placement is concerned with the sending of newly selected personnel to
some department for work. It is also concerned with the assignment of authority and
responsibility to the new comer in the organisation.
Internal Mobility
Internal Mobility is the movement of employees (vertically and laterally) to new career and
development opportunities within the same organization. This includes promotions,
demotions, new positions, mentorships, cross-team or additional projects, job shadowing, and
job swaps. Internal mobility refers to a qualified employee's general ability to rise through the
ranks or transfer laterally within the company to another job role that has more appeal, is an
advancement opportunity or represents a career change.
Need for Internal Mobility
Job changes are necessary due to the following reasons:
1. Changes in job structure, job redesign and job regrouping
2. Changes in technology demanding more skills and experience of employees
3. Restructuring of organization, mechanization, expansion and diversification of
operations
4. Introducing new product line or dropping of existing product lines.
5. Relocating the business, starting new divisions or branches.
6. Satisfying the needs of career enhancement and career development of employees
7. For enforcing discipline and order in the organization employees may be transferred
or demoted.
8. Satisfying demand of trade unions and government regulations on manpower
management
9. Accommodate environmental, social, cultural or religious conditions of employees of
the region.
Methods of Internal Mobility
I. Transfer
II. Promotion
III. Demotion

Arun M S, Assistant Professor, Department of Commerce, Sree Vivekananda College, Kunnamkulam pg. 6
Transfer
A transfer is a horizontal or lateral movement of an employee from one job, section,
department, shift, plant or position to another at the same or another place where his salary,
status and responsibility are the same.
Reasons for Transfer
1. To meet organizational change
2. To satisfy employee requirements
3. To improve employee efficiency
4. To make optimum use if manpower
5. To reduce work related problems
6. To maintain discipline in the organization
Types of Transfer
1. Production Transfer
It is transfer of employees made for the purpose of change in production or to meet
the requirements of the organization.
2. Replacement Transfer
It is transfer to replace a person who is retiring or to relieve another who has been
employed in the position for a long period.
3. Rotation Transfer
It is initiated to make the employee familiar with all types of jobs in the organization
and make him more versatile.
4. Shift Transfer
It is transfer of employee from one shift to another to facilitate shift working and
maintain equitable working environment.
5. Remedial Transfer
Remedial transfer is made to correct the wrong placement of an employee by
transferring him to a suitable job assignment.
6. Punishment Transfer
Transfer may be made to give punishment to an employee who is not displaying
expected behavior or committing acts of indiscipline.
Promotion
Promotion refers to upward movement of an employee from his current job position to
another that is higher is pay, responsibility and hierarchy within an organization. Promotion
refers to advancing an employee's rank or position in a hierarchical structure.
Arun M S, Assistant Professor, Department of Commerce, Sree Vivekananda College, Kunnamkulam pg. 7
Purpose of Promotion
1. To meet the needs of human resources for various grades of jobs or job positions
2. To satisfy the employees need for career advancement and career objectives
3. To motivate the employees for accepting higher responsibilities and positions in the
organization
4. To motivate employees to acquire additional qualifications and skills
5. To manage succession planning in the organization and develop managerial hierarchy.
Type of Promotion
1. Merit based Promotion
In this method merit or qualification is the only criterion for promotion of employees.
Employees are promoted to higher positions based on their knowledge, experience,
skills, suitability and ability to discharge the functions related to the higher position.
2. Seniority based Promotion
Under this method, seniority of the employee or his number of years of service in the
organization is the important consideration for promotion. It assumes that the longer
the years of service, the better experienced and motivated the employee will be given
higher responsibility and position.
Promotion Transfer
Promotion Transfer is defined as the movement of an employee from one position to another
position of a higher pay grade or salary and from one place to another place.
Need of Promotion Transfer
1. To reward and motivate employees to higher productivity.
2. To develop competitive spirit and inculcate the zeal in the employees to acquire skill,
knowledge etc.
3. To promote employees satisfaction and boost their morale.
4. To build loyalty among the employees toward organization.
Demotion
Demotion is just opposite to promotion. In demotion, the employee is shifted to a job lower in
status, grade and responsibilities. “Demotion refers to the lowering down of the status, salary
and responsibilities of an employee.”
Demotion is the lowering of a rank, reduction in salary, status and responsibilities. It may be
defined as the assignment of an individual to a job of lower rank and pay usually involving
lower level of authority and responsibility.
Reasons for Demotion
Arun M S, Assistant Professor, Department of Commerce, Sree Vivekananda College, Kunnamkulam pg. 8
1. Breach of Discipline:
A breach of discipline may attract demotion as a punishment. An organisation can work only
if proper discipline is maintained. A punitive action for such breach may be necessary so that
people do not flout rules, regulation etc. of the company.
2. Inadequacy of Knowledge:
A person may not be competent to perform his job properly. He may not be able to meet job
requirements. In such a situation demotion becomes necessary.
3. Unable To Cope With Change:
Now-a-days, there is a rapid change in technology and methods of work. The existing
employees may not be able to adjust themselves as per the new requirements. It may be due
to lack of education, technical skill, ill health, old age or other personal reasons. Under these
circumstances new persons may be needed to take up such jobs.
4. Organisational Re-Organisation:
Sometimes there may be organisational changes. It may be necessitated by either combining
the departments or closing of some sections or departments. In such situations the number of
positions is reduced and some employees may be posted at the lower positions until normality
is restored. Such demotions are not due to any fault of the employees.

Arun M S, Assistant Professor, Department of Commerce, Sree Vivekananda College, Kunnamkulam pg. 9