Quiz 10: How to Obtain and Manage Human Resources and Diversity in Small Companies


Recruiting employees is one of the complicated tasks involved in entrepreneurial process. Minute things need consideration while completing this task as selected employees are the future representatives of an organization. The employers look for perfect candidates who can take their company's vision and mission ahead. There are various external sources using which the new employees are found out. Some of them are as follows: • If the organization has good relationship with the former employees who have left the job due to some personal issues, they can be contacted to join again or to refer a candidate whose qualifications are aligned with the needs of the company. • Personal connections of present employees are also considered while recruiting as current employees know the work process of the company. • Resumes and applications submitted through mails or in personal are scrutinized to find the perfect match. • The employees of competing firms can be recruited as they have the idea about the same segment of the market along with the tactics of a different company. • There are various recruiting agencies which deal in providing right candidates to the organizations as and when they need. Apart from the above sources, schools, colleges, retired workers, and part-time workers are also hired when the organization need their services. Big firms directly go to business schools/colleges and select the employees directly from the campus. It can be said that selectors and recruiters choose the accurate method according to the companies' suitability.

Recruitment can be done internally or externally. Internal recruitment refers to promoting internal employees to a new position or provides the existing employees the job responsibilities of new openings. External recruitment refers to hire new employees from outside resources such as recruitment agencies and resumes screening. Job openings can be filled within the company. A formal process of interview is organized for the employees already working in the company or sometimes directly they are told to switch to other department of the same company. This process has both advantages and disadvantages. Advantages: • It saves time and cost of the company. • Since, these people are already a part of the system; they take the charge of the new position within no time. • The track record of these employees is accessible to the employers. The chance of holding new positions is given to only those who possess a good work history within the organization. • This process motivates other employees to work with their full potential. They work with the intention of getting new responsibilities along with a salary revision. Disadvantages: • All the employees do not get a chance to hold new positions; the ones who do not get the chance feel resented and spoil the company's atmosphere. • When someone is promoted to a managerial position, it becomes difficult for him/her to manage the employees as they take internal mangers for granted. • Internal recruitment is the sign of inflexible culture wherein outsiders who possess knowledge, skills and attitude to handle the job are not even considered for hiring. Overall, the process of internal recruitment is fast and reliable. The existing employees understand the work culture and do not require additional guidance to resume the work. Sometimes the new openings demand specific qualifications which are not there in the existing employees, during such situations external recruitment is the better option.

While recruiting an employee each and every aspect of the company is considered. Each job role has definite requirements of standards and practices. Employees are screened and interviewed on the basis of these requirements. Whether the recruitment is internal or external, the candidates are examined for their potential to handle the job efficiently. Internal recruitment can be of three types: upgrading, promoting or transferring. Although these three terms reflect the process of using the same employees for different roles, all of them possess different meanings. Upgrading of employees is done when they are not capable of handling their jobs well. They are trained for their existing roles so that they can work on their positions smoothly. This condition arises when an undeserving candidate is hired for a position. Promoting as the name suggests is a process of moving an employee to a higher designation than his/her current position. This is done when a remarkable work is done by the employees. Transferring refers to transfer or switch the employees to a different location or different department. This is basically done without changing the designation and the compensation. This is done when the company feels that a particular employee can handle a different location or a different department more efficiently than the current one. All these approaches are used to make the work process of the organizations smooth, clear, transparent and feasible. These decisions are not taken on a random basis. Each detail is scrutinized before any such action is performed. Employees are consulted to know whether they are comfortable with the decision. Everything is done on a planned and systematic manner.