--- title: "Recruitment vs hiring; need of incentives" subject: "Organization and Management" chapter: 7 key: "semester_7/organization_and_management:recruitment-vs-hiring" source: https://www.bctengineer.com/q/semester_7/organization_and_management/recruitment-vs-hiring site: BCT Engineering --- # Recruitment vs hiring; need of incentives Organization and Management · Chapter 7: Personal Management - Asked in: 2072 Chaitra, 4+4 marks - Answer checked by Claude Opus 5.5 (high effort) on 2026-10-14 - Page: https://www.bctengineer.com/q/semester_7/organization_and_management/recruitment-vs-hiring - Whole chapter: https://www.bctengineer.com/md/semester_7/organization_and_management/chapter-7 ## Question What is the difference between recruitment and hiring? Why do we need incentives in an organization? ## Short answer Recruitment attracts applicants; hiring selects and appoints the best candidate. Incentives, monetary or non-monetary, are needed to motivate employees, increase productivity, reduce turnover, and align individual goals with organizational goals. ## Answer #### Recruitment vs hiring Recruitment is the process of searching for and attracting qualified candidates to apply for jobs. Hiring (selection and appointment) is the process of choosing the best candidate from the applicants and giving the job through an offer. | Basis | Recruitment | Hiring | |---|---|---| | Meaning | Finding and attracting applicants | Choosing and appointing a candidate | | Nature | Positive; encourages applications | Negative; rejects unsuitable people | | Stage | Early stage | Final stage | | Main activities | Advertising, campus visits, job portals | Tests, interviews, background check, offer, contract | | Aim | Create a pool of candidates | Fill the post with the best person | | Result | List of applicants | Appointed employee | | Contract | None | Appointment letter, as per Labour Act, 2074 | #### Need for incentives in an organization Incentives are extra rewards (bonus, commission, recognition, promotion) over regular pay. They are needed because: 1. **Motivation:** They encourage employees to work harder and smarter. 2. **Higher productivity and quality:** Reward is linked with output. 3. **Attracts and retains good staff,** reducing turnover (important in the competitive IT and banking sector of Nepal). 4. **Builds loyalty and team spirit.** 5. **Reduces absenteeism and supervision cost.** 6. **Fair recognition** of better performers. 7. **Aligns employee and organizational goals,** for example through profit sharing under the Bonus Act, 2030. 8. **Improves job satisfaction and morale.** ## Check yourself The answer's key points as multiple-choice questions, with the correct option and why. 1. Which pair correctly states the aim of recruitment and hiring? A. Recruitment appoints; hiring advertises B. Both only create a pool of candidates C. Both only reject candidates D. Recruitment creates a pool of candidates; hiring fills the post with the best person Answer: D. Recruitment attracts applicants to form a pool; hiring selects and appoints the best one. (Key point: Recruitment vs hiring) 2. Why is recruitment called positive and hiring negative? A. Recruitment encourages applications; hiring rejects unsuitable people B. Hiring encourages more applicants C. Recruitment rejects people D. Both are positive Answer: A. Recruitment invites applications, while hiring involves rejecting unsuitable candidates. (Key point: Nature of the two) 3. Which activity belongs to hiring rather than recruitment? A. Job portal advertisement B. Campus visits C. Tests, interview, background check and offer D. Searching for applicants Answer: C. Hiring is the final stage with tests, interviews, checks, offer and contract. (Key point: Stage and activities) 4. How can incentives help align employee and organizational goals? A. By removing the Bonus Act B. By stopping promotions C. By reducing recognition D. Through schemes like profit sharing under the Bonus Act, 2030 Answer: D. Profit sharing ties employees' rewards to organizational results. 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