Recruitment Sources: Internal vs External

This assignment examines the effectiveness of different recruitment sources - both internal and external - in contributing to organizational performance. It requires students to delve into relevant theories and research, comparing and contrasting the advantages and disadvantages of each source. The analysis should draw upon academic literature provided as references to support arguments and conclusions.

Human Resource
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Purpose and function of HRM and workforce planning........................................................1
P2 Strengths and weaknesses of different approaches of selection and recruitment..................2
TASK 2............................................................................................................................................4
P3 Benefits of HRM practices for employer and employee.......................................................4
P4 Effect of different HRM practices on profit and productivity...............................................5
TASK 3............................................................................................................................................6
P5 Role of employee relation on HRM decision making...........................................................6
P6 Elements of employment legislation......................................................................................7
TASK 4............................................................................................................................................7
P7 Application of HRM practices...............................................................................................7
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Company is group of two or more people which work to achieve business objectives.
While in big organisations there are many workers which achieve goals and objectives. They
have different perception and it is important to create balance between their perceptions. Human
Resource department works for improving condition of workers and it is essential to motivate
them to work with full efficiency (Pfeffer, 2010). Employees must emphasise on giving best so
there will best outcomes. This report is based on ALDI group which is joint venture of two retail
supermarket outlets. They deals in various parts of country and established in 1913. this report
tells about roles and responsibilities of HR manager, requirement of workforce planning, types of
approaches used by company to recruit and selection and its advantages. There is some impact of
HR policies on profit and productivity as well, laws related to employees, importance of HR
policies on employees and employer relation is also discussed in this report.
TASK 1
P1 Purpose and function of HRM and workforce planning
There are many employees in ALDI and they are taken acre by HR Manager. They have
different issues related to professional and personal life, this is taken care by manager,. This
helps in creating good environment in association and there will less labour turnover and
absenteeism. This helps in generating good image in market. There are many functions
performed by HR manager apart from selection and recruitment such as planning events,
entertainment activities, etc. This helps in achieving business its goals and objectives effectively.
Functions of HRM are as follows:
Training programme- There is requirement of training when change in business
operations. There are possibilities that ALDI has to change their working style due to change in
external environment so it is essential to learn new techniques. This helps in improving quality of
product and services (Sirmon and et. al., 2011). There are various sources of training but it is
essential to accept which is best.
Compensation and other benefits- This is basic and primary duty of HR manager. HR
manager see that salary, compensation, allowances, etc. must be credited to specific date. This
helps in motivating employees and this does to create indifference among workers. ALDI deals
in various parts of country so it is essential to select HR manager to every branches so there will
not be confusion in activities.
1

Purpose of HRM are as follows:
Law related policies- There are many laws related to employees which provide them
chance to take their stand in case of any problem. This is responsibility of HR manager to take
care about these laws. When person is joining company then it is essential to tell them about
these laws and regulation. There are possibilities that government made modifications in these
laws so manager has to made alterations in plans and policies too.
Employee and employer relations- Employee and employer both are important part of
organisation and it is essential to make good relations among them. This can be done through
entertainment related activities which are important and helps in interacting with each other. This
has good impact on workplace also (Surroca, Tribó and Waddock, 2010).
Purpose of Workforce Planning:
There is requirement of employees due to expansion, growth, new product, launch, etc.
So before meeting this requirement it is essential to plan what to do and how to achieve it. There
are different policies which can be applied to select best candidate. Through planning there will
be positive results and resources does not get waste. It is essential that manager has to perform
this task with due care and responsibility . There are various department in ALDI organisation
has it is essential to perform task as per know the requirement and then strategies must be
framed.
P2 Strengths and weaknesses of different approaches of selection and recruitment
Recruitment and selection are two aspect of company which are performed by HR
department in very effective manner. There are different policies which helps company to
achieve goals and objectives. There are different activities in ALDI which helps in increasing
image in market and it is essential to give them chance to come with new and innovative ideas.
There are many departments in ALDI and there is requirement of some qualities to perform task.
So according tom requirement there must be selection of candidates. Selection and recruitment is
time and cost consuming process so best candidate can be placed. There are two main methods
of selection and recruitment- internal and external source (Zheng, Yang and McLean, 2010).
They are discussed as under-
INTERNAL SOURCE
There is requirement of employees in company to achieve business objectives, sometimes
this requirement is urgent. So HR manager can take help of employees working within
2

organisation. This source helps company to motivate employees and get them chance to provide
hype to their career. E.g. Retired employees, relatives and dependents of deceased employees,
etc.
Advantages of internal source
Motivation of existing employees- There is requirement of motivation factors so
employees perform with their full efficiency. When manager of company is promoting people on
the basis of their performance then there are possibilities of better results and this creates
confidence among workers (Zott and Amit, 2010).
Trust factor- when employees is place through internal source then it helps company to
share plans and policies as per requirement. Policies will remain confidential and there will no
outflow of confidential information.
Disadvantage of internal source
Limited selection scope- This is one of the biggest limitation of internal source. There is
limited scope of selection for the people, so manager is bind to select among them.
Chances of personal conflict- If one person get promotion or transfer then it may create
difference among employees and their performance also get affected (Bakker, 2011).
EXTERNAL SOURCE
This helps company to place person from outside the organisation . It is essential that
company has to perform task as per requirement of external environment. This source is
beneficial when company wants to come with some ideas. Through this method ALDI can
contact to various colleges through where they get chance to elect person with current
knowledge. E.g. labour contractors, employees referrals, advertisement, etc.
Advantage of external source
Innovative and fresh ideas- When new person is place in organisation then there will be
possibilities of fresh ideas. This helps to improve working of company and creates good image in
market.
No partiality and biassness- Through this source there are nil chances of partiality. This
helps company to achieve business objective more effectively and creates good culture in
organisation. There is external party appointed in organisation so it helps in performing task with
full efficiency and energy. New workers will not bee part of existing issues so there will less
dissatisfaction among personnel (Carter and Liane Easton, 2011).
3

Disadvantage of external source
Costly and time consuming- This methods is costly as advertisement agency charge
money, contactors charge commission and they require time also to perform activities.
Involvement of external parties: When candidate is place through external sources then
there are possibilities that he/ she cannot coop up with environment of organisation. This may
create chances of wastage of time as well as money (Internal and External Sources of
Recruitment, 2017.).
TASK 2
P3 Benefits of HRM practices for employer and employee
There are different advantages for employee as well as employer to achieve business
objectives. There are possibilities of improvement in image of company in front of employee and
in society. This is responsibility to assign duties as per employee's skills and qualities. This helps
company to achieve business objectives effectively. Employees also get chance to polish their
skills and compete with external world. Some benefits are as follows-
Benefits for employees
Performance appraisal- This is important component of company which says there is
requirement of improving performance of workers as per their performance and knowledge.
There must be provision of performance appraisal as this helps company to achieve business
objectives and boost confidence of workers (Danish and Usman, 2010). This implies that
manager has to check performance of worker and then they must get hype in their salary as well
as position.
Prospects of growth and development- Through HR department employees has chance to
grow their career and it is essential to perform duties as per requirement of their skills. There are
different roles and responsibilities to every individual in ALDI. As per change in external
environment of business it is essential to train personnel regarding it. This helps company to
achieve improve quality of product and services.
Benefits for employer
Optimal utilisation of resources- Resources used in company are either from outside or
inside company. So it is essential to tell employee how to use resources in best and optimal
manner. This can be done through motivation of employees and it is essential to perform task as
4

per guidance. HR manager must emphasise on good culture so employees communicate with
each and there will no overlapping (Ellison and Boyd, 2013).
Good communication- HR manager focuses on creating good environment , so this helps
company to achieve business objectives within specific time. There are different policies framed
by HR manager which creates interaction between employer and employee.
P4 Effect of different HRM practices on profit and productivity
There are many employees in ALDI working to achieve business objectives. It is
essential to tell them about vision mission of company so they are ware about their cod of
conduct. It is important that company has to perform activities which creates simulation in
activities. HR manager has direct interaction with employees son it is essential to perform
activities as skills of employees. HR policies helps company to create good environment in
organisation hence this helps in creating good environment within organisation. There are
different activities such as town hall meetings, movie, playing related activities this creates good
environment and good relations among employees.
This helps company to achieve business objectives effectively and in efficient manner.
Objective of ALDI is to create good relations which customer and increase profits. To achieve
this target employees are most powerful component. HR must frames policies which provides
chances to employees to share their ideas (Fernandez and et. al., 2012). There are possibilities of
new and innovative ideas which can be implemented by HR personnel. There will be positive
effect of HR policies on employee's performance so there will be positive impact on profits and
production also. When employees are satisfied with their workplace then this is fruitful for
company as well as employees. It is essential to give emphasis on working style so this helps in
increasing on production.
There are different approaches used by manager as per their choice. But that must be
beneficial for company. These policies will help company to perform task in most appropriate
manner. HR manager has to analysis market and then frame policies because it is essential to
work according to external market and they will competent, this brings confidence among them.
TASK 3
P5 Role of employee relation on HRM decision making
Employees are the key component of ALDI. Policies are framed by top level personnel
but it is implemented by subordinates. So it is essential to motivate them to perform task with
5

full efficiency. It is essential that HR manager has to take care about employees problems and
grievances so they also take actions to perform task in best and alternative manner. There are
different policies framed by manager to coop up with external factors of organisation. There are
possibilities that due to change in techniques, there is need of training, so they can improve
performance (Griffin, 2013).
Sometimes employees is not ready to work under changed environment, then HR
manager must know the reason of not accepting new techniques and then try to resolve it. There
are many changes taking place in business so it is responsibility of HR manager to frame policies
which are effective and adaptable to change. There are many employees in company having
different mindset HR manager has to communicate with them so they acme to know what
employee think. There is difference between employee and organisational goal, then leader must
tray to bridge gap between both and come with policies which satisfies employees demand also.
There are many factors which creates personal conflicts among employees, so employees do not
like to work under team. So HR manager must take actions to reduces it.
Better communication- To create good relations among employees it is essential to reduce
communication gap. This helps company to achieve business objectives in more effective
manner. Communication is the way which help company to take participate in business
objectives and goals. But it is important to considered cultural values of individual so they are
satisfy and perform task as per guidance. When employee communicate with each other then
there will possibilities of proper use of resources and there will be no repetition of activities
(Luthans and et. al., 2010).
Share vision- ALDI has some goals and objectives for which they are working. It is
essential to deliver this information among employees hence this helps in getting new ideas from
employees. When change in policies take place then it must be deliver to workers so they know
what to perform and why they are doing.
Employee's involvement- In ALDI there are policies which provide chance to employee to
take part in decision making,. This helps in motivating them as they are important part of
company. Sometimes few workers do not come with new ideas then HR manager motivates
them.
6

P6 Elements of employment legislation
Employee working in ALDI have some backup through which they can take stand when
they feel that organisation is cheating. There are possibilities that government of UK has framed
policies which has to be followed by manager. It is essential to convey it to employees. There are
modification in rules and regulations then it is essential to modify policies of ALDI also. Some
laws related to employees are as follows-
Equality Act, 2010- This act says that company must frame policies which creates
environment in which all employees are equal (McWilliams and Siegel, 2011). There should not
be discrimination due caste, colour, creed, sex, etc. This helps company to reduce chances of
personal conflicts.
Data protection- As per this act, it is advisable for management of ALDI to keep data of
consumer safe and confidential. At time when individual joins ALDI organisation as employees
then they have to submit their data for documentation, so employees does not have fear in mind
regarding misuse of their documents.
Health and safety act- There is use of different techniques in organisation, so as per this
laws it must be safe and secure. There must be proper ventilation, air, light, etc. which does not
affect operations of company. There are some machines which are necessarily be under
maintenance. If in case employee get injured at workplace while working due to any reason then
he/ she can sue petition under this act (Mithas, Ramasubbu and Sambamurthy, 2011).
TASK 4
P7 Application of HRM practices
Above is theoretical description about HR policies. In this task practical application will
be identified. HR manager take interview, keep record of workers safely, advertisement, etc. are
operations of company. Some activities performed b y HR manager are discussed below-
In ALDI when there is requirement of personnel in organisation. Then it must be
delivered to society through various advertisement such as online, newspaper, etc. Advertisement
helps society to know about position and required skills.
VACANCY
ALDI has vacant marketing manager position
7

Post – Marketing manager
Qualification – BBA, PGDM
Experience – Minimum experience 6 months
The chosen candidates will be call for interview.
The candidates will have to apply for job through email or post.
Last Date to apply- 3 May, 2018
Address: Southbank, 67A Park William
Email: hrm&[e-mail]
Contact: 2365854
Job specification- This document provides knowledge about roles and responsibilities of vacant
position. It is essential to form this so HR manager can select candidate which is best among all.
JOB SPECIFICATION
Job details
Position :- Marketing manager
Department – Marketing
Job role
 Create leads.
 Patient and calm to handle customer queries.
8

 Come with new and innovative ideas.
Duties and Responsibilities
 Satisfy need of consumer
 Able to work in team.
 Able to represent products in meetings.
Curriculum Vitae- This document is carried by candidate at the time of interview, which
contains their skills and quality, experience of candidate and interviewer judges with it. CV for
the position of marketing manager is as under-
CURICULAM VITAE
Curriculum Vitae
Name: Smith Devin
Address : Plot 6A, Street Apartments, Hong Kong.
Phone No. - 25698536
Profile summary:
A PGDM in Marketing with 1 years of experience want to grow career in positive way by
joining corporate world. Competent to external world
Specialisation:
 Good communication skills
 Knowledge about current market trends Can create good relationship with various departments of organisation.
Educational qualification: -
 Bachelor in Commerce. (BBA) PGDM (Marketing)
Declaration:
I hereby declare that all the information provided is true and is best of my knowledge.
9

Date:
Place:
These helps ALDI company to select best candidate among crowd. There is requirement
of proper process through which employees get scrutinise (Parker, Bindl and Strauss, 2010).
After selection also HR manager has to perform activities such as documentation, induction,
joining dates, discussion about pay scale, etc.
CONCLUSION
There is change in goals and objectives of company and hence it is essential to
communicate them about such modifications so they can focus on improving performance.
Human resource department plays an important role in creating good environment in
organisation and it is essential to give them chance to take part in decisions of company. When
there is requirement of training then best method must be allotted, which is beneficial for
company as well as employees. There must be check done to know impact of training for this
there must be check of performance before and after training. There are possibilities that
employees are not ready to learn new things then motivation is the key which leader has to adopt.
Internal source of recruitment help company to satisfy need but at the same time it may create
dissatisfaction among workers.
10

REFERENCES
Books and Journals
Bakker, A. B., 2011. An evidence-based model of work engagement. Current Directions in
Psychological Science. 20(4). pp.265-269.
Carter, C. R. and Liane Easton, P., 2011. Sustainable supply chain management: evolution and
future directions. International journal of physical distribution & logistics
management. 41(1). pp.46-62.
Danish, R. Q. and Usman, A., 2010. Impact of reward and recognition on job satisfaction and
motivation: An empirical study from Pakistan. International journal of business and
management. 5(2). p.159.
Ellison, N. B. and Boyd, D. M., 2013. Sociality through social network sites. In The Oxford
handbook of internet studies.
Fernandez, S. and et. al., 2012. Managing successful organizational change in the public sector.
In Debating Public Administration (pp. 33-52). Routledge.
Griffin, R. W., 2013. Fundamentals of management. Cengage Learning.
Luthans, F. and et. al., 2010. The development and resulting performance impact of positive
psychological capital. Human resource development quarterly. 21(1). pp.41-67.
McWilliams, A. and Siegel, D. S., 2011. Creating and capturing value: Strategic corporate social
responsibility, resource-based theory, and sustainable competitive advantage. Journal of
Management. 37(5). pp.1480-1495.
Mithas, S., Ramasubbu, N. and Sambamurthy, V., 2011. How information management
capability influences firm performance. MIS quarterly, pp.237-256.
Parker, S. K., Bindl, U. K. and Strauss, K., 2010. Making things happen: A model of proactive
motivation. Journal of management. 36(4). pp.827-856.
Pfeffer, J., 2010. Building sustainable organizations: The human factor. The Academy of
Management Perspectives. 24(1). pp.34-45.
Sirmon, D. G. and et. al., 2011. Resource orchestration to create competitive advantage: Breadth,
depth, and life cycle effects. Journal of management. 37(5). pp.1390-1412.
Surroca, J., Tribó, J. A. and Waddock, S., 2010. Corporate responsibility and financial
performance: The role of intangible resources. Strategic management journal. 31(5).
pp.463-490.
Zheng, W., Yang, B. and McLean, G. N., 2010. Linking organizational culture, structure,
strategy, and organizational effectiveness: Mediating role of knowledge
management. Journal of Business research. 63(7). pp.763-771.
Zott, C. and Amit, R., 2010. Business model design: an activity system perspective. Long range
planning. 43(2-3). pp.216-226.
Online
Internal and External Sources of Recruitment. 2017. [Online]. Available through:<http://kalyan-
city.blogspot.in/2011/07/internal-and-external-sources-of.html >.
11

12