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Human Resources Management - Selection And Induction

Sources of Recruitment - Selection And Induction

   Posted On :  12.06.2018 10:33 pm

The different sources of recruitment could be classified into two broad categories, viz.,

Sources of Recruitment

The different sources of recruitment could be classified into two broad categories, viz.,
a.   Internal sources and
b.   External sources

Internal Sources

The various internal sources are

1. Present employees

2. Employee referrals

3. Former Employees

4. Previous applicants

Present Employees

Promotions and transfers from among the present employees can be a good source of recruitment. Promotion implies upgrading of an employee to a higher position carrying higher status, pay and responsibilities.

Former Employees

Former employees are another source of applicants for vacancies to be filled up in the organization. Retired or retrenched employees may be interested to come back to the company to work on a part-time basis. Some former employees, who left the organization for any reason, may again be interested to come back to work.

Employee Referrals

The existing employees refer their family members, friends and relatives to the company as potential candidates for the vacancies to be filled up most effective methods of recruiting people in the organization because employees refer to those potential candidates who meet the company requirement by their previous experience.

Previous Applicants

Those who applied previously and whose applications though found good were not selected for one reason or other may be considered at this point of time. Unsolicited applications may also be considered.

Advantages of internal source are

Familiarity with their own employees

Better use of the talent

Economical recruitment

Morale booster

Gives motivation.

Disadvantages of Internal Source

Limited choice

Discourages competition

Creates conflicts.

External Sources

1. The different external sources are

2. Employment Exchanges

3. Advertisements

4. Employment Agencies

5. Professional Associations

6. Campus Recruitment

7. Deputation

8. Word-of-Mouth

9. Raiding.

Employment Exchanges

After India’s independence, National Employment Service was established to bring employees and job seekers together. In response to it, the Compulsory Notification of Vacancies Act of 1959 (commonly called Employment Exchange Act) was enacted which became operative in 1960. Under S4 of the Act, it is obligatory for all industrial establishments having 25 workers or more, to notify the nearest employment exchange of vacancies in them, before they are filled. Employment exchanges are particularly useful in recruiting blue-collar, white collar and technical workers.

Employment Agencies

In addition to the government agencies, there are a number of private employment agencies who register candidates for employment and furnish a list of suitable candidates from their data bank as and when sought by prospective employers. The main function of these agencies is to invite applications and short list the suitable candidates for the organization. Of course, the final decision on selection is taken by the representatives of the organization. The representatives of the employment agencies may also sit on the panel for final selection of the candidates.


Advertisement is perhaps the most widely used method for generating many applications. This is because its reach is very high. This method of recruitment can be used for jobs like clerical, technical and managerial.
While preparing advertisement, a lot of care has to be taken to make it clear and to the point. It must ensure that some selection among applicants takes place and that only qualified applicants respond to the advertisement. Advertisement copy should be prepared very well to answer AIDA. That is, the advertisement should arrest attention, gain interest, arouse desire and result in action.

Professional Associations

Very often recruitment for certain professional and technical positions is made through professional associations. Institute of Engineers, Indian Medical Association, All India Management Association etc., provide placement services for their members. For this, the professional associations prepare either list of job seekers or publish or sponsor journals or magazines containing advertisements for their members.

Campus Recruitment

This is another source of recruitment. This is gaining popularity in India. The advantages are:

Most of the eligible candidates are available at one place.

The interviews are arranged in a short notice.

The teaching faculty can also be consulted.

Gives opportunity to sell the organization to a large students’ body who would be graduating subsequently.


Yet another source of recruitment is deputation i.e., sending an employee to another organization for a short duration of two or three years. This method of recruitment is in vogue in Government Departments and public sector organizations. This method provides ready expertise and the organization does not have to incur the initial cost of induction and training.


Some organizations in India practice ‘the word-of-mouth’ method of recruitment. In this method, the word is passed around about the possible vacancies or openings in the organization. Another form of word-of-mouth recruitment is “employee-pinching” ie., the employees working in another organization are offered an attractive offer by the rival organizations. This method is economic, both in terms of time and money.

Raiding or Poaching

Raiding or poaching is another method of recruitment whereby the rival firms by offering better terms and conditions, try to attract qualified employees to join them. This raiding is a common feature in the Indian organizations.

Merits of External Source

Larger availability of talented candidates.

Opportunity to select best candidates.

Provides healthy competition among job seekers.


Expensive and time consuming

Unfamiliarity with the organization

Discourages the existing employees and they may feel belittled.

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