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Human Resource is also an important determinant of business
location and functioning. Factors such as the availability of labour of
different skill levels, productivity and cost of labour, flexibility of
labour, attitude and behaviour patterns of labour, nature of trade unionism
etc. are important to a business. The whole process begins with the task of
hiring manpower for starting a business for filling the present and
prospective vacancies in the company. The objective of hiring manpower is to
procure the right number of employees, with the required qualifications to do
the right type of jobs. The hiring process involves four main steps i.e.
manpower planning, recruitment, selection and placement. Each of these steps
and sub-steps help the employer obtain more and more information about the
candidates and thus help in obtaining the best possible manpower for the
firm. This function must be performed carefully because any error committed
at the time of hiring manpower may prove to be very costly for the firm both
in the short as well as long term. These costs will be in the form of waste
of time, money and energy in repeated hiring process. The training costs
incurred on them will go waste. The efficiency of the organisation will go
down due to hiring of unsuitable candidates. At the same time the rate of
absenteeism and labour turnover will be higher. Hence, an effective hiring
procedure includes the answers to the following questions :-
- What are the
requirements of the jobs to be filled?
- What kind of
persons are needed?
- How many
persons are needed?
- What sources
of recruitment may be utilised?
- What steps
should be taken to select the right type of candidates for employment?
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