Tag: Internal

  • Internal and External Sources of Recruitment of Employees!

    Internal and External Sources of Recruitment of Employees!

    Learn, What is Internal and External Sources of Recruitment of Employees?

    Sources of Recruitment of Employees: Internal and External Sources (with its Advantages and Disadvantages)! The searching of suitable candidates and informing them about the openings in the enterprise is the most important aspect of the recruitment process. Also learn, Recruitment, Internal and External Sources of Recruitment of Employees!

    The candidates may be available inside or outside the organization. Basically, there are two sources of recruitment i.e., internal and external sources.

    (A) Internal Sources:

    Best employees can be found within the organization… When a vacancy arises in the organization, it may give to an employee who is already on the payroll. Also, Internal sources include promotion, transfer and in certain cases demotion. When a higher post is given to a deserving employee, it motivates all other employees of the organization to work hard. The employees can inform of such a vacancy by internal advertisement. Also learn, What is the Internal Sources of Recruitment?

    Methods of Internal Sources:

    The Internal sources are given below:

    1. Transfers:

    The transfer involves shifting of persons from present jobs to other similar jobs. These do not involve any change in rank, responsibility or prestige. The numbers of persons do not increase with transfers.

    2. Promotions:

    Promotions refer to shifting of persons to positions carrying better prestige, higher responsibilities, and more pay. The higher positions falling vacant may fill up from within the organization. A promotion does not increase the number of persons in the organization.

    As well as, A person going to get a higher position will vacate his present position. The promotion will motivate employees to improve their performance so that they can also get the promotion.

    3. Present Employees:

    The present employees of a concern are informing about likely vacant positions. The employees recommend their relations or persons intimately known to them. Management is relieving of looking out prospective candidates.

    The persons recommended by the employees may be generally suitable for the jobs because they know the requirements of various positions. Also, the existing employees take full responsibility for those recommended by them and also ensure their proper behavior and performance.

    Advantages of Internal Sources:

    The Following are The Advantages of Internal Sources:

    1. Improves morale:

    When an employee from inside the organization is given the higher post, it helps in increasing the morale of all employees. Generally, every employee expects promotion to a higher post carrying more status and pay (if he fulfills the other requirements).

    2. No Error in Selection:

    When an employee is selecting from inside, there is the least possibility of errors in selection since every company maintains a complete record of its employees and can judge them in a better manner.

    3. Promotes Loyalty:

    It promotes loyalty among the employees as they feel secure on account of chances of advancement.

    4. No Hasty Decision:

    The chances of hasty decisions are completely eliminating as the existing employees well try and can rely upon.

    5. The economy in Training Costs:

    The existing employees are fully aware of the operating procedures and policies of the organization. The existing employees require little training and it brings the economy to training costs.

    6. Self-Development:

    It encourages self-development among the employees as they can look forward to occupying higher posts.

    Disadvantages of Internal Sources:

    (i) It discourages capable persons from outside to join the concern.

    (ii) It is possible that the requisite number of persons possessing qualifications for the vacant posts may not be available in the organization.

    (iii) For posts requiring innovations and creative thinking, this method of recruitment cannot follow.

    (iv) If the only seniority is the criterion for promotion, then the person filling the vacant post may not be really capable.

    In spite of the disadvantages, it is frequently using as a source of recruitment for lower positions. It may lead to nepotism and favoritism. The employees may employ on the basis of their recommendation and not suitability.

    (B) External Sources:

    All organizations have to use external sources for recruitment to higher positions when existing employees are not suitable. More persons are needs when expansions are undertaking. Also learn, What is the External Sources of Recruitment?

    The external sources are discussing below:

    Methods of External Sources:

    1. Advertisement:

    It is a method of recruitment frequently use for skill workers, clerical and higher staff. Advertisement can give in newspapers and professional journals. These advertisements attract applicants in a large number of highly variable quality.

    Preparing good advertisement is a specializing task. If a company wants to conceal its name, a ‘blind advertisement’ may give asking the applicants to apply to Post Bag or Box Number or to some advertising agency.

    2. Employment Exchanges:

    Employment exchanges in India are run by the Government. For unskilled, semi-skilled, skilled, clerical posts etc., it is often using as a source of recruitment. In certain cases, it has been made obligatory for the business concerns to notify their vacancies to the employment exchange. In the past, employers used to turn to these agencies only as a last resort. The job-seekers and job-givers are brought into contact by the employment exchanges.

    3. Schools, Colleges, and Universities:

    Direct recruitment from educational institutions for certain jobs (i.e. placement) which require technical or professional qualification has become a common practice. A close liaison between the company and educational institutions helps in getting suitable candidates. The students are spot during the course of their studies. Junior level executives or managerial trainees may recruit in this way.

    4. Recommendation of Existing Employees:

    The present employees know both the company and the candidate is recommending. Hence some companies encourage their existing employees to assist them in getting applications from persons who are known to them.

    In certain cases, rewards may also be given if candidates recommended by them are actually selected by the company. If recommendation leads to favoritism, it will impair the morale of employees.

    5. Factory Gates:

    Certain workers present themselves at the factory gate every day for employment. This method of recruitment is very popular in India for unskilled or semi-skilled labor. The desirable candidates are selected by the first line supervisors. The major disadvantage of this system is that the person selected may not be suitable for the vacancy.

    6. Casual Callers:

    That personnel who casually come to the company for employment may also consider for the vacant post. It is a most economical method of recruitment. In the advanced countries, this method of recruitment is very popular.

    7. Central Application File:

    A file of past applicants who were not selected earlier may maintain. In order to keep the file alive, applications in the files must check at periodical intervals.

    8. Labour Unions:

    In certain occupations like construction, hotels, maritime industry etc., (i.e., industries where there is instability of employment) all recruits usually come from unions. It is advantageous from the management point of view because it saves expenses of recruitment. However, in other industries, unions may ask to recommend candidates either as a goodwill gesture or as a courtesy towards the union.

    9. Labour Contractors:

    This method of recruitment is still prevalent in India for hiring unskilled and semi-skilled workers in brick kiln industry. The contractors keep themselves in touch with the labor and bring the workers to the places where they are requiring. They get the commission for the number of persons supplied by them.

    10. Former Employees:

    In case employees have been laid off or have left the factory on their own, they may take back if they are interested in joining the concern.

    11. Other Sources:

    Apart from these major sources of external recruitment, there are certainly other sources which are exploiting by companies from time to time. Also, These include special lectures delivering by the recruiter in different institutions, though apparently, these lectures do not pertain to recruitment directly.

    Then there are video files which are sent to various concerns and institutions so as to show the history and development of the company. These films present the story of the company to various audiences, thus creating interest in them.

    Various firms organize trade shows which attract many prospective employees. Also, Many a time advertisements may make for a special class of workforce who worked prior to their marriage.

    These ladies can also prove to be the very good source of the workforce. Similarly, there is the labor market consisting of physically handicapped. Visits to other companies also help in finding new sources of recruitment.

    Merits of External Sources:

    1. Availability of Suitable Persons:

    Internal sources, sometimes, may not be able to supply suitable persons from within. External sources do give a wide choice to the management. A large number of applicants may be willing to join the organization. They will also be suitable as per the requirements of skill, training, and education.

    2. Brings New Ideas:

    The selection of persons from outside sources will have the benefit of new ideas. The persons having experience in other concerns will be able to suggest new things and methods. This will keep the organization in a competitive position.

    3. Economical:

    This method of recruitment can prove to be economical because new employees are already training and experience and do not require much training for the jobs.

    Demerits of External Sources:

    1. Demoralisation:

    When new persons from outside join the organization then present employees feel demoralized because these positions should have gone to them. There can be a heart burning among old employees. Some employees may even leave the enterprise and go for better avenues in other concerns.

    2. Lack of Co-Operation:

    The old staff may not co-operate with the new employees because they feel that their right has been snatch away by them. This problem will be acute especially when persons with higher positions are recruiting from outside.

    3. Expensive:

    The process of recruiting from outside is very expensive. Also, it starts with inserting costly advertisements in the media and then arranging written tests and conducting interviews. In spite of all this if suitable persons are not available, then the whole process will have to repeat.

    4. The problem of Maladjustment:

    There may be a possibility that the new entrants have not been able to adjust to the new environment. They may not temperamentally adjust with the new persons. In such cases either the persons may leave themselves or management may have to replace them. These things have the adverse effect on the working of the organization.

    Suitability of External Sources of Recruitment:

    External Sources of Recruitment are Suitable for The Following Reasons:

    (i) The requiring qualities such as will, skill, talent, knowledge etc., are available from external sources.

    (ii) It can help in bringing new ideas, better techniques and improving methods to the organization.

    (iii) The selection of candidates will without preconceive notions or reservations.

    (iv) The cost of employees will minimal because candidates selected in this method will place the minimum pay scale.

    (v) The entry of new persons with varied experience and talent will help in human resource mix.

    (vi) The existing employees will also broaden their personality.

    (vii) The entry of qualitative persons from outside will be in the long-run interest of the organisation.

    Internal and External Sources of Recruitment of Employees - ilearnlot

  • What is the Internal Sources of Recruitment?

    What is the Internal Sources of Recruitment?

    Learn, What is the Internal Sources of Recruitment? Explaining!

    Internal sources of recruitment seek applicants for positions from within the company. In deciding requirement of employees, initial consideration should give to a company’s current employees. Which is concerned with internal recruitment. They include those who are already available on the payroll of the company. This is the important source of recruitment as it provides opportunities for better development and utilization of existing human resources in the organization. Also learn, the Principles of Learning in Training, What is the Internal Sources of Recruitment?

    The various internal sources of recruitment include:

    Promotions and Transfers!

    Promotion is an effective means using job posting and personnel records. Job posting requires notifying vacant positions by posting notices. Circulating publications or announcing at staff meetings and inviting employees to apply. Personnel records help discover employees who are doing jobs below their educational qualifications or skill levels. Promotions have many advantages like it is good public relations, builds morale, encourages competent individuals who are ambitious, improves the probability of good selection. Since information on the individual’s performance is readily available, is cheaper than going outside to recruit. Those chosen internally are familiar with the organization thus reducing the orientation time and energy and also acts as a training device for developing middle-level and top-level managers.

    However, promotions restrict the field of selection preventing fresh blood & ideas from entering the organization. It also leads to inbreeding in the organization. Transfers are also important in providing employees with a broad-based view of the organization, necessary for future promotions.

    Employee Referrals!

    Employees can develop good prospects for their families and friends by acquainting them with the advantages of a job with the company, furnishing them with the introduction and encouraging them to apply. This is a very effective means as many qualified people can reach a very low cost to the company. The other advantages are that the employees would bring only those referrals that they feel would be able to fit in the organization based on their own experience. The organization can be assured of the reliability and the character of the referrals. In this way, the organization can also fulfill social obligations and create goodwill.

    Former Employees!

    These include retired employees who are willing to work on a part-time basis, individuals who left work and are willing to come back for higher compensations. Even retrenched employees are taken up once again. The advantage here is that the people are already known to the organization and there is no need to find out their past performance and character. Also, there is no need for an orientation programme for them, since they are familiar with the organization.

    Dependents of deceased employees!

    Usually, banks follow this policy. If an employee dies, his / her spouse or son or daughter is recruited in their place. This is usually an effective way to fulfill the social obligation and create goodwill.

    Recalls!

    When management faces a problem, which can solve only by a manager who has proceeded on long leave, it may decide to recall that persons after the problem are solving, his leave may extend.

    Retirements!

    At times, management may not find suitable candidates in place of the one who had retired, after meritorious service. Under the circumstances, management may decide to call retired managers with the new extension. Also learn, The Theory of Human Relationship Management!

    Internal Notification (Advertisement)!

    Sometimes, management issues an internal notification for the benefit of existing employees. Most employees know from their own experience about the requirement of the job and what sort of person the company is looking for. Often employees have friends or acquaintances who meet these requirements. Suitable persons are appointed at the vacant posts.

    Previous Applicants!

    This is considered as an internal source in the sense that applications from the potential candidates are already lying with an organization. Sometimes the organization contacts through mail or messengers these applicants to fill up the vacancies particularly for unskilled or semiskilled jobs.

    Advantages and Disadvantages of Internal Sources of Recruitment

    The advantages of the internal sources of recruitment include the following:

    • Familiarity with own employees: The organization has more knowledge and familiarity with the strengths and weaknesses of its own employees than of strange to unknown outsiders.
    • Better use of the talents: The policy of internal recruitment also provides an opportunity to the organization to make a better use of talents internally available and to develop them further and further.
    • Economical recruitment: In case of internal recruitment, the organization does not need to spend much money, time and effort to locate and attract the potential candidates. Thus, internal recruitment proves to be economical, or say, inexpensive.
    • Improves morale: This method makes employees sure that they would prefer over the outsiders as and when they filled up in the organization vacancies.
    • A motivator: The promotion through internal recruitment serves as a source of motivation for the employees to improve their carrier and income. The employees feel that organization feel that organization is a place where they can build up their life-long career. Besides, internal recruitment also serves as a means of attracting and retaining employees in the organization.

    The main drawbacks associated with the internal sources of recruitment is as follows:

    • Limited choice: Internal recruitment limits its choice to the talents available within the organization. Thus, it denies the tapping of talents available in the vast labor market outside the organization. Moreover, internal recruitment serves as a means for “inbreeding”, which is never healthy for the future organizations.
    • Discourage competition: In this system, the internal candidates are protecting from the competition by not giving. The opportunity to otherwise competent candidates from outside the organization. This, in turn, develops a tendency among the employees to take the promotion without showing extra performance.
    • Stagnation of skills: With the feeling that internal candidates will surely get promoting. Their skill, in the long run, may become stagnant or obsolete. If so, productivity and sufficiency of the organization, in turn, decreases.
    • Creates conflicts: Conflicts and controversies surface among the internal candidates, whether or not they deserve the promotion.
    What is the Internal Sources of Recruitment - ilearnlot
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  • Factors affecting Organizational Change, External and Internal

    Factors affecting Organizational Change, External and Internal

    Factors affecting Organizational Change; Change is inevitable in the life of an organization. In today’s business world, most organizations are facing a dynamic and changing business environment. Also Learn, What are the Participation and Organizational Change? factors affecting change in organization External, and Internal. They should either change or die, there is no third alternative. Organizations that learn and cope with change will thrive and flourish and others who fail to do so will be wiped out. The major forces which make the changes not only desirable but inevitable are technological, economic, political, social, legal, international, and labor market environments.

    Explain are Factors affecting Organizational Change, Difference between External and Internal Factors. 

    In very simple words, we can say that change means the alteration of the status quo or making things different. The factors affecting change in organisation; “The term change refers to any alterations which occur in the overall work environment of an organization.”

    “When an organizational system is disturbed by some internal or external force, change frequently occurs. Change, as a process, is simply the modification of the structure or process of a system. It may be good or bad, the concept is descriptive only.”

    Organizational changes are required to maintain equilibrium between various external and internal forces to achieve organizational goals. Therefore various factors that may be important for necessitating organizational changes may group into two categories: external and internal.

    #EXTERNAL FACTORS:

    Every organization exists in some context: no organization is an island in itself. Each must continually interact with other organizations and individuals – the consumers, suppliers, unions, shareholders, government – and many more. Each organization has goals and responsibilities related to others in its environment. Thus not only an organization must deal with its environment in conducting its affairs, but it must also consider the goals of others as it establishes its foals and conducts its operations.

    The present-day environment is dynamic and will continue to be dynamic. Changes in social, political, economic technological, and legal environments force organizations to change themselves. Such change may result in organizational changes like major functions, production processes, labor-management relations, nature of competition, economic constraints, organizational methods, etc. to survive in the changing environment, an organization must change.

    How the change in various environmental factors necessitates the change in the organization may see in the following context:

    1. Technological Changes:

    when there is a change in technology in the organization’s environment and other organizations adopt the new technology, the organization under focus becomes less cost-effective and its competitive position weakens. Therefore, it has to adopt new technology. When organizations adopt new technology, their work structure stands affected and a new equilibrium has to establish. For example computers and automation have made a significant impact on organizational functioning. Also read, Explain Organizational Culture.

    2. Changes in Marketing Conditions:

    Since every organization exports its outputs to the environment, an organization has to face competition in the market. There may be two types of forces that may affect the competitive position of an organization – other organizations supplying the same products and buyers who are buying the product. Any change in these forces may require suitable changes in the organization. For example, when the Indian economy was liberalized (the process continues), many foreign organizations entered the Indian market.

    This forced many Indian organizations to realign themselves with the new situation. The result is that there have been many cases of divesting the businesses and concentrating on the core businesses, acquiring core businesses, and developing competitive competence to face competitive threats. Similarly, there may be changes in buyers in terms of their needs, liking – disliking, and income disposal for a product. These changes force the organizations to bring those products which meet the buyer’s requirements.

    3. Social changes:

    The social changes reflect in terms of people’s aspirations, their needs, and their way of working. Social change has taken place because of several forces like the level of education, urbanization, feeling of autonomy, and international impact due to new information sources. These social changes affect the behavior of people in the organization. Therefore it is required to adjust its working so that it matches people.

    Political and legal factors broadly define the activities which an organization can undertake and the methods which will follow it in accomplishing those activities. Any change in these political and legal factors may affect the organizational operation. Don’t forget for learning, Dimensions of Organizational Climate.

    #INTERNAL FACTORS:

    It is not only the change in external factors that may necessitate organizational change, but any change in an organization’s internal factors may also necessitate change. Such a change is required because of two reasons: a change in managerial personnel and a deficiency in existing organizational practices.

    1. Change in Managerial Personnel:

    Besides environmental; changes, there is a change in managerial personnel. Old managers are replaced by new managers who are necessitating because of retirement, promotion, transfer, or dismissal. Each new manager brings his ideas and way of working in the organization. The manager brings his ideas and way of working to the organization. The relationships more particularly informal ones, change because of changes in managerial personnel. Moreover, attitudes of the personnel change even though there is no change in them. The result is that an organization has to change accordingly.

    2. Deficiency in Existing Organization:

    Sometimes, changes are necessary because of deficiencies in the present organizational arrangement and process. These deficiencies may be in the form of an unmanageable span of management, a large number of managerial levels, lack of coordination between various departments, obstacles in communication, the multiplicity of committees, lack of uniformity in policy decisions, lack of cooperation between line and staff, and so on.

    3. Nature of the workforce:

    The nature of the workforce has changed with time. Different work values have been expressed by different generations. Workers who are in the age group of 50 plus value loyalty to their employers. Workers in their mid-thirties to forties are loyal to themselves only. The youngest generation of workers is loyal to their careers. The profile of the workforce is also changing fast. The new generation of workers has better education; they place greater emphasis on human values and question the authority of managers. Their behavior has also become very complex and leading them towards organizational goals is a challenge for the managers. The employee turnover is also very high which again puts the strain on the management.

    4. To avoid developing inertia:

    In many cases, organizational changes take place just to avoid developing inertia or inflexibility. The conscious manager takes into account this view of the organization that the organization should be dynamic because any single method is not the best tool for management every time. Thus, changes are incorporated so that the person develops a liking for change and there is no unnecessary resistance when the major change in the organization is brought about.

    What are Factors affecting Organizational Change External and Internal
    What are the Factors affecting Organizational Change? External and Internal.

    Reference:

    1. Organizational Changes – //livinfo.blogspot.in/2012/10/participation-and-organisational-climate.html
    2. Factors Affecting Organizational Change – //www.mbaknol.com/management-concepts/factors-affecting-organizational-change/
    3. Photo Credit URL – //bookboonglobal.com/wp-content/uploads/sites/8/2013/09/How-demographic-changes-will-impact-organizations-and-managers.png
    4. Image Source HD Wallpapers.