UNIT – I Lesson 1 HRM – AN OVERVIEW Lesson Outline Nature of ...

Internal factors
External factors
1. Size : The organizational size is an influencing factor. Larger
organizations find recruitment less problamatic than smaller size units.
2. Policy : The policy of recruitment by the organization, whether
recruitment is from internal source (from own employees) or from
external sources also affect the recruitment process. Generally,
recruiting through internal sourcing is preferred in view of cost
consideration, familiarity and in easily finding most suitable.
3. Image : Image of the organization is another internal factor influencing
recruitment. Managerial actions like good public relations, rendering
public services like building roads, public parks, hospitals and schools
help to earn image or goodwill for the organization.
4. Image of jobs: Better remuneration, and working conditions are
considered the characteristics of good image of a job. Besides,
promotion and career development progammes of the organization also
attract potential candidates.
1. Demographic factors: Demographic factors such as sex, age, literacy,
economic status etc, have influence on recruitment process.
2. Labour markets : Labour market conditions, that is, supply labour is of
particular importance in affecting recruitment process. If the demand for a
specific skill requirements is high relative to its supply, recruiting employees
will involve more efforts. On the contrary, if supply is more than demand for
particular skill, recruitment will be relatively easier.
3. Unemployment situation: The rate of unemployment is yet another external
factor having its influence on the recruitment process. When the unemployment
rate in a given area is high, the recruitment process tends to be simpler.
4. Labour laws : There are several labour laws and regulations passed by the
central and state Governments that govern different types of employment.
These cover, working conditions, compensation, retirement benefits and safety
and health of employees in industrial undertakings. Child Labour (Prohibition
and Regulation) Act, 1986, for example prohibits employment of children in
certain employments. So also, several other acts such as Employment