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Literature Review

Discuss about the Human Resource Management for Direct and Indirect Method.

Human Resource Management (HRM) can be regarded as a strategic approach that leads to the effective management of the employees and staffs of the companies so that they can help the companies in gaining the required competitive advantage. In the process of HRM, the processes of recruitment and selection of the employees are considered as two of the major aspects (Armstrong & Taylor, 2014). Recruitment and selection process is regarded as the processes that help the companies in the selection of the best individuals among a pool of applicants for a particular position of job. For this reason, the HR managers of the companies have the responsibility to carry on this recruitment and selection process in the best manner so that employee retention can be increased along with the reduction in executive turnover. The main aim of this essay is the analysis and evaluation of different recruitment and selection methods so that the best possible method can be suggested to the provided manufacturing company (Joshi, 2013).    

Hiring is considered as one of the major functions of the HR managers and there is not any exception of this fact in case of the provided manufacturing industry. In this context, it needs to be mentioned that there are two major parts in the hiring process in the companies and they are Recruitment and Selection. The presence of different types of methods or processes of recruitment and selection can be seen in different business industries and the HR managers are required to select the correct recruitment and selection methods based on the nature of their business operations (Bratton & Gold, 2017).

Irrespective of the types of the business industries, the presence of three major methods for recruitment and selection can be seen in the organization in the wider sense; they are Direct Method, Indirect Method and Third Party Method. Under the direct method, the business organizations use to send their HR representatives to the potential candidates so that they can establish contact with them for the purpose of hiring (Wayne Dean Mondy & Joseph, 2015). Under the indirect method, business organizations provide advertisements in various mediums like television, newspaper, radio and others so that they can attract the potential candidates for the vacant position (Aswathappa, 2013). With the help of this method, the business organizations can reach out to large variety of potential candidates. Under the third party method, the business organizations use different employment agencies, management consultants, employee referral agencies and others to make contact with the job-seekers. In the broader aspect, these are three methods of recruitment and selection in the business organizations (Bailey, C., Mankin, Kelliher & Garavan, 2018).

Analysis

After the process of recruitment, the next process is considered as the selection process. Selection is regarded as the process to pick individuals with requisite qualification and competence to fill the job position. It needs to be mentioned that every business organization follows some common methods or techniques for the purpose of selection (Storey, 2014). At the same time, some companies use multiple methods for the purpose of selection. Preliminary interview is considered as one of the methods of selection and the main purpose of this process is the elimination of unqualified candidates based on the information provided (Cardy & Leonard, 2011). After this, selection test is another method of selection used by the business organizations all over the world. After this process, interview of the recruited employees is another major method for selection for the business organizations. Most of the business organizations including the manufacturing companies consider this method as an excellent method. Apart from this, the presence of other selection method can also be seen in the business organizations (Bratton & Gold, 2017). 

From the above discussion, it can be observed that the business organizations from different industries have the option to select from various types of methods of recruitment and selection. In this context, it needs to be mentioned that the retention of the employees as well as staffs largely depends the adoption of correct recruitment and selection process. The below discussion shows how correct recruitment leads to employee retention:

It needs to be mentioned that effective job recruitment has major positive impact on the aspect of employee retention. In today’s business world, the process of hiring has become expensive as well as competitive. In this kind of situation, a minor reduction in employee turnover contributes to major cost-saving for the business organizations. In the presence of effective recruitment process, it become possible for the companies in recording all the information like details of wages, employee benefits, working hours and others and all this information is related to the employees (Stone & Stone, 2013). Hence, the presence of all this information reduces the chance of any unhappy surprise or misunderstanding with the new employees or the existing employees. For this reason, this aspect reduces the possibility of employee turnover. Referral is considered as one of the methods of recruiting the employees. In this process of recruitment, business organizations already have enough information about the candidates and thus, the companies can take care of all the needs of these employees at the time of their initial years of joining (Cardy & Leonard, 2014). This aspect plays a vital role in increasing retention of employees in the organizations. At the same time, there are many other types of recruitment that largely contributes towards increasing the rate of employee retention in the business organizations. All these aspects are highly applicable in case of the manufacturing industries all well (Tyson, 2014).

Recommendations

Business organizations all over the world adopt different types of strategies for the selection of the appropriate employee hiring process that includes both recruitment and selection. One of such processes is to take interviews to the human resource managers of the industries. For the purpose of the selection of the correct recruitment and selection process of the provided manufacturing company, interviews have been conducted to some of the HR managers in the manufacturing industry. The result of the interview is discussed below:

From the answers of all of the interviewers, it can be observed that most of the manufacturing companies prefers to take into consideration both the direct and indirect method of recruitment as these methods help the company in recruiting the correct employees for the production process. As per the result of the interview, the main reason behind the adoption of the method of direct recruitment is that the business organizations can establish direct contact with the potential employees (Marchington et al., 2016). In the presence of direct contact or relation with the potential customers, companies can make better decision related to the hiring of the employees. On the other hand, the main reason behind preferring the indirect method of recruitment is that the companies can make contact with large number of potential candidates with the help of various mediums like newspaper, television, advertisements and several others (Stredwick, 2013).

From the above discussion, one aspect is clear that the adoption of both the direct as well as indirect methods of recruitment and selection enhances the scope of hiring in the companies. At the same time, the HR managers of the companies can become able in increasing the rate of employee retention in the businesses. All these aspects play integral part in the overall development of the business organizations as these aspects assist the companies by providing them with the cost cutting opportunities (Marler & Fisher 2013).          

The above discussion involves in discussing all the methods of employee recruitment and selection within the business organization. From the given situation, it can be observed that the provided company is a manufacturing company. As per the provided situation, the company has been experiencing high turnover of their production executives within short period of time. From this, it can be understood that the company has been facing major issues related to recruitment and selection of the higher level employees (Tyson, 2014).

After considering all these issues and negative aspects, it can be recommended that the company is needed to adopt both direct and indirect methods of recruitment for enhancing the scope of hiring. Under the method of direct recruitment, it is suggested that the company can recruit employees for the post of production executives from the present or existing employee force or the former employees (Cardy, Miller & Ellis, 2007). The main advantage of this processes is that the company will have direct contact with the potential candidates that will make the hiring process effective as well as easier for companies. At the same time, these two processes are less expensive than the other processes (Armstrong & Taylor, 2014). 


Under the process of indirect recruitment, the company is suggested to adopt three aspects to recruit employees; they are employee exchange, employee agencies and advertisements. The main advantage of adopting these methods is that the company will have large number of potential employees for the positions and they can correct one as per their requirements (Joshi, 2013).

In case of the selection process, the recommendation to the company is that the company needs to follow more than one process for selecting the employees. In this process, the first step will be preliminary interview that will include in the elimination of the unqualified candidates. The next process will be selection test that will include aptitude test, personality test and ability test. The last process will be the final employment interview where the selection of the employees will be done (Bailey, C., Mankin, Kelliher & Garavan, 2018). 

References

Armstrong, M., & Taylor, S. (2014). Armstrong's handbook of human resource management practice. Kogan Page Publishers.

Aswathappa, K. E. M. A. L. (2013). Human resource management: Text and cases. Tata McGraw-Hill Education.

Bailey, C., Mankin, D., Kelliher, C., & Garavan, T. (2018). Strategic human resource management. Oxford University Press.

Bratton, J., & Gold, J. (2017). Human resource management: theory and practice. Palgrave.

Cardy, R., & Leonard, B. (2014). Performance Management: Concepts, Skills and Exercises: Concepts, Skills and Exercises. Routledge.

Cardy, R.L. & Leonard, B. (2011). Performance Management: Concepts, Skills, and Exercises, 2nd edition. M.E. Sharpe: Armonk, NY.

Cardy, R.L., Miller, J.S., & Ellis, A.D. (2007). Employee equity: Towards person-based approach to HRM. Human Resource Management Review, 17, 140-151

Joshi, M. (2013). Human Resource Management. Bookboon.

Marchington, M., Wilkinson, A., Donnelly, R., & Kynighou, A. (2016). Human resource management at work. Kogan Page Publishers.

Marler, J. H., & Fisher, S. L. (2013). An evidence-based review of e-HRM and strategic human resource management. Human Resource Management Review, 23(1), 18-36.  

Stone, R. J., & Stone, R. J. (2013). Managing human resources. John Wiley and Sons.

Storey, J. (2014). New Perspectives on Human Resource Management (Routledge Revivals). Routledge.

Stredwick, J. (2013). An introduction to human resource management. Routledge.

Tyson, S. (2014). Essentials of human resource management. Routledge.

Wayne Dean Mondy & Joseph J., (2015). Human Resource Management, Pearson International. 

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