How does recruitment take place through ‘Placement Agencies’ and ‘Recommendation’?

(i) Placement Agencies: These days placement agencies are coming up as a good source of external recruitment. These agencies are established by private individuals. People can get their names registered with them. Such a registration is done usually for high or medium level jobs. On the request of an organisation, these agencies do the whole job of recruitment on behalf of the organisation. They get their fee for rendering this service from the organisation. They are helpful in establishing a balance between the demand and supply of the employees on the national level.

(ii) Recommendations: With a view to establishing good employer-employee relations, sometimes managers recruit people on the recommendation of their existing employees. In this way, present employees feel encouraged and there is a complete control over new employees. This source is mostly used for appointing lower level employees.