Principles And Practices Of Banking short notes

Maslow proposed that human needs are arranged in a hierarchy: physiological needs, safety needs, social needs, esteem needs and self-actualisation needs. Lower-level needs must be reasonably satisfied before higher-level needs become strong motivators. Once a need is satisfied, it stops motivating and the next higher need becomes important.

Strategies operate at different levels. Corporate level strategy deals with overall direction such as growth, stability or diversification. Business level strategy focuses on how to compete in a particular industry through cost leadership, differentiation or focus. Functional level strategy refers to departmental strategies (marketing, finance, HR, operations) that support the business strategy and achieve targets efficiently.

Recruitment is the process of searching for and attracting prospective candidates to apply for vacancies. It creates a pool of applicants through internal sources (promotion, transfer, referrals) and external sources (advertisements, campus recruitment, consultants, online portals). Recruitment is important because without adequate applicants, the organisation cannot select suitable employees; it also influences quality of workforce and organisational image.

Selection is the process of choosing the most suitable candidate from the applicants. It generally includes screening, application form, tests, interviews, reference checks, medical examination and final appointment. Selection is important because the right selection reduces labour turnover, improves performance and saves cost of training and supervision.

Differences: Recruitment is a positive process that aims to attract maximum candidates and comes first, while selection is a negative process that rejects unsuitable candidates and results in appointment. Recruitment gives a pool of applicants; selection gives the best employee for the job.