PREFACEThe course of MBA require one to undergo a summer internship with the end of the 2nd Semester, so as to get a practical knowledge and understanding the practical aspects of all the theories read. It helps us to make the best use of our skills and intelligence so as to make a better research report. It is really the most important thing during the course of the study. The purpose of my research project was to study the Recruitment and Selection process and its use in selecting the right candidates. It was a continuous learning experience as I got to know different kinds of Recruitment procedure, how they are conducted and are beneficial. 1 ACKNOWLEDGEMENT I would like to express my deep sense of gratitude to the guide distinguish personality for their precious suggestion and encouragement during the project. The Experience which is gained by me during this project is essential for me at this turning point of my career. I am thankful to ____________________ (Director), MBA and ______________________ (Deputy Director) MBA for their kind support and supervision. I am also thankful to my project guide Prof. For providing me guidance and support. Last but not the least I would like to thanks all the faculty members, company officials, my family and friends for their constant support. 2 DECLARATION We hereby declare that the following documented Project Report titled RECRUITMENT AND SELECTION IN MARUTI SUZUKI LTD.” is an authentic work done by us. The study was undertaken as a part of the course curriculum of MBA Full Time Programme at Barkatullah University, Bhopal. 3 Content Chapter 1 2 3 4 5 6 7 8 Title Introduction Company profile Recruitment process Objective of the study Research methodology Observation Conclusion Reference Page No 4 Introduction Maruti Suzuki India Limited commonly referred to as Maruti, is a subsidiary company of Japanese automaker Suzuki Motor Corporation. It has a market share of 37% of the Indian passenger car market as of November 2012. Maruti Suzuki offers a complete range of cars from entry level Maruti 800, Maruti Esteem and Alto, to hatchback Ritz, AStar, Swift, Wagon-R, Estillo and sedans DZire, SX4, in the 'C' segment Maruti Eeco, Maruti Omni, Multi Purpose vehicle Ertiga and Sports Utility vehicle Grand Vitara. It was the first company in India to mass-produce and sell more than a million cars. It is largely credited for having brought in an automobile revolution to India. It is the market leader in India, and on 17 September 2007, Maruti Udyog Limited was renamed asMaruti Suzuki India Limited. The company's headquarters are on Nelson Mandela Road, New Delhi. In February 2012, the company sold its 10th million vehicle in India. Maruti Suzuki is India and Nepal's leading automobile manufacturer and the market leader in the car segment, both in terms of volume of vehicles sold and revenue earned. Until recently, 18.28% of the company was owned by the Indian government, and 54.2% by Suzuki of Japan. The BJPled government held aninitial public offering of 25% of the company in June 2003. As of 10 May 2007, the government of India sold its complete share to Indian financial institutions and no longer has any stake in Maruti Udyog. Maruti Udyog Limited (MUL) was established in February 1981, though the actual production commenced in 1983 with the Maruti 800, based on the Suzuki Alto kei car which at the time was the only modern car available in India, its only competitorsthe Hindustan Ambassador and Premier Padmini were both around 25 years out of date at that point. Through 2004, Maruti Suzuki has produced over 5 Million vehicles. Maruti Suzukis are sold in India and various several other countries, depending upon export orders. Models similar to Maruti Suzukis (but not manufactured by Maruti Udyog) are sold by Suzuki Motor Corporation and manufactured in Pakistan and other South Asian countries. 5 Grand Vitara. Swift. over six million Maruti Suzuki cars are on Indian roads since the first car was rolled out on 14 December 1983. Swift DZire. The company is believed to be moving towards introduction of a new version of Maruti 800 by November 2012. remaining all models are manufactured in Maruti Suzuki's Gurgaon Plant.000 units annually. till 2004. Omni. of which 53. Astar. Grand Vitara and Kizashi are imported from Japan as completely built units(CBU). Its manufacturing facilities are located at two facilities Gurgaon and Manesar south of Delhi. Eeco. In all. Maruti Suzuki sold 764. which will be more fuel efficient.The German car company Volkswagen has a 19. Maruti Suzuki offers 15 models. The Manesar facilities. Manesar and Gurgaon facilities have a combined capability to produce over 14. Alto.000 engines and transmissions. Ritz. the 6 . launched in February 2007 comprise a vehicle assembly plant with a capacity of 550. Maruti 800. It is listed on the Bombay Stock Exchange and National Stock Exchange of India.000 cars annually. Japan.The company exports more than 50. More than a million units of this car have been sold worldwide so far. was the India's largest selling compact car ever since it was launched in 1983.9% non-controlling shareholding in Suzuki Motor Corporation. Gypsy. which owns 54. Maruti 800. Kizashi and the newly launched Ertiga.WagonR. Suzuki Motor Corporation.000 units per annum. Maruti Suzuki’s Gurgaon facility has an installed capacity of 900. The rest is owned by public and financial institutions.000 units per year and a Diesel Engine plant with an annual capacity of 100. Due to the large number of Maruti 800s sold in the Indian market. Swift DZire.2 per cent of Maruti Suzuki. More than half the cars sold in India are Maruti Suzuki cars.000 cars annually and has an extremely large domestic market in India selling over 730. Maruti Suzuki Alto tops the sales charts but Maruti Suzuki's Swift has taken over this titles by 19000 models in April 2012. SX4. Currently. Maruti Alto 800.024 were exported.The company imports diesel engines for all maruti Suzuki cars from the fiat motors the great Italian company.842 cars. During 2007-08. Estilo. Swift. the term "Maruti" is commonly used to refer to this compact car model. A-star and SX4 are manufactured in Manesar.50. though slightly costlier than Alto and existing Maruti 800. The company is a subsidiary of Suzuki Motor Corporation. Bhaskarudu had joined Maruti Suzuki in 1983 after spending 21 years in the Public sector undertaking Bharat Heavy Electricals Limited as General Manager. Suzuki’s technical superiority lies in its ability to pack power and performance into a compact. It has been rated first in customer satisfaction among all car makers in India from 1999 to 2009 by J D Power Asia Pacific.000 people are employed directly by Maruti Suzuki and its partners. Bhargava later assumed the office of Part-Time Chairman. Joint venture related issues Relationship between the Government of India. In 1988 he was named Director. Maruti Suzuki will be introducing new 800cc model by Diwali in 2012.[13] After completing his five-year tenure.parent company. Mr. The next year (1989) he was named Director of Materials] and in 1993 he became Joint Managing Director. Mr.The model is supposed to be fuel efficient. lightweight engine that is clean and fuel efficient. Bhargava was the initial managing director of the company since the inception of the joint venture. under the United Front (India) coalition and Suzuki Motor Corporation over the joint venture was a point of heated debate in the Indian media till Suzuki Motor Corporation gained the controlling stake. 7 . S. Nearly 75. and further to 50% in 1992.N. In 1982 both the venture partners had entered into an agreement to nominate their candidate for the post of Managing Director and every Managing Director will have a tenure of five years R. is a global leader in mini and compact cars for three decades. Till today he is regarded as instrumental for the success of Maruti Suzuki.S. This highly profitable joint venture that had a near monopolistic trade in the Indian automobile market and the nature of the partnership built up till then was the underlying reason for most issues.L. In 1987 he was promoted as Chief General Manager. hence more expensive. Joining in 1982 he held several key positions in the company before heading the company as Managing Director.C. Bhaskarudu as the Managing Director on 27 August 1997. The success of the joint venture led Suzuki to increase its equity from 26% to 40% in 1987. The Government nominated Mr. Productions and Projects. Currently he is on the Board of Directors. Suzuki Motor Corporation didn't attend the Annual General Meeting of the Board with the reason of it being called on a short notice. the new administration proposed to sell part of its stake in Maruti Suzuki in a public offering. Along with many other government owned companies. The worker's union opposed this sell-off plan on the grounds that the company will lose a major business advantage of being subsidised by the Government. the Ministry of Industries. a major industrial relations issue began and employees of Maruti went on an indefinite strike. Suzuki also felt that Bhaskarudu was a proxy for the Government and would not let it increase its stake in the venture. major revisions to their wages. The standoff between the union and the management continued through 2001. to press a revision to their incentive-linked pay. incentives and pensions. demanding among other things. conflict between the United Front Government and Suzuki started. In parallel. and the union has better protection while the company remains in control of the government. Industrial relations Since its founding in 1983. Till today the issue of localization of gear boxes is highlighted in the press. In 1997. In 2000.[15] If Maruti Suzuki would have been able to indigenise gear boxes then Maruti Suzuki would have been able to manufacture all the models without the technical assistance from Suzuki. The management refused union demands citing increased 8 . there was a change in ownership. and Maruti became predominantly government controlled. Later Suzuki Motor Corporation went on record to state that Bhaskarudu was "incompetent" and wanted someone else. Media stated from the Maruti Suzuki sources that Bhaskarudu was interested to indigenise most of components for the models including gear boxes especially for Maruti 800. India pursued a disinvestments policy. Maruti Udyog Limited experienced few problems with its labour force. Employees used slowdown in October 2000. after elections and a new central government led by NDA alliance. Government of India refuted the charges. However. Shortly thereafter. Labour unrest started under management of Indian central government. The Indian labour it hired readily accepted Japanese work culture and the modern manufacturing process. Suzuki became the majority owner of Maruti Udyog Limited. a gift with every new car launch. the numerous workers involved in violence were not affiliated with caste either. and a house for every worker who wants one or cheaper home loans for those who want to build their own houses.000.000. The company's General Manager of Human Resources had both arms and legs broken by his attackers.[24] The workers claim harsh working conditions and extensive hiring of low-paid contract workers which are paid about $126 a month. Company executives denied harsh conditions and claim they hired entry-level workers on contracts and made them permanent as they gained experience. According to the Maruti Suzuki Workers Union a supervisor had abused and made discriminatory comments to a low-caste worker. These claims were denied by the company and the police. further. The central government prevailed and privatized Maruti in 2002. a laundry allowance of 3. and was charred to death. about half the minimum wage of permanent employees. Maruti's Manesar plant was hit by violence as workers at one of its auto factories attacked supervisors and started a fire that killed a company official and injured 100 managers. a monthly conveyance allowance of 10. but after the workers' union demanded the reinstatement of a worker who had been suspended for beating a supervisor. the Manesar union had demanded a three-fold increase in basic salary. The management 9 . Since April 2012. The incident is the worst-ever for Suzuki since the company began operations in India in 1983. It was also claimed that bouncers were deployed by the company.competition and lower margins. Maruti said the unrest began. Maruti employees currently earn allowances in addition to their base wage.Initial reports claimed wage dispute and a union spokesman alleged the incident may be caste-related. The violent mob also injured nine policemen. unable to leave the building that was set ablaze. India Today claimed that its interviews of witnesses present at the plant confirms the dispute was over the suspended worker. Manesar violence July 2012 On 18 July 2012. not over wage discussions. including two Japanese expatriates. The supervisor alleged was found to belong to a tribal heritage and outside of Hindu caste system. the workers broke up into groups. went on to set the shop floor as well as all offices afire. The police. police have arrested 91 people and are searching for 55 additional accused. citing safety concerns. The workers took several managers and high ranked management officials hostage. The company further announced that it will stop using contract workers by March 2013. "you will be beaten up after we get a signal. while a permanent worker received about 12. Under the provisions of The Industrial Disputes Act for wages. claimed on 21 July that Manesar violence may be the result of a planned violence by a section of workers and union leaders. the company announced a lockout under The Industrial Disputes Act." Thereafter. "some union leaders may be aware of the facts. 2012. The report claimed the worker's action was recorded on close circuit cameras installed within the company premises. The report claimed the salary difference between contract workers and permanent workers has been much smaller than initial media reports . Maruti announced employees would not be paid for the period of lock-out in accordance with Indian labour laws." The recorded CCTV footage has been used to determine the sequence of events and people involved. which increased in three years to 21. The shut down of Manesar plant is leading to a loss of about Rs 75 crore per day. so they burnt down the main servers and more than 700 computers.500 per month. Per the FIR. the report claimed. In a separate report. On July 26. 1947 pending results of an inquiry the company has requested of the Haryana government into the causes of the disorder. employees are expected to be paid for the duration of the lockout. The management was then told. They searched for management officials and proceeded with a barbaric beating of the officials at the site with iron rods. announced that all work at the Manesar plant has been suspended indefinitely.000 per month. The responsible Special Investigative Team official claimed.the contract worker at Maruti received about 11. On July 21. 2012. A Suzuki spokesman said Manesar violence won't affect the auto maker's business plans for India. a contractor who was 10 .500 a month at start.insisted that they must wait for completion of inquiry underway before they can take any action on the employee suspended for beating up his supervisor.000-22. in its First Information Report (FIR). Maruti Suzuki in its statement on the unrest. Mr. less than 10% of its capacity. unprovoked violence. Spain. that Gujarat was an expansion opportunity and not an alternative to Manesar. China and the Philippines. the rigid rules on hiring and layoffs. said this kind of violence has never happened in Suzuki Motor Corp's entire global operations spread across Hungary.providing contract employees to Maruti claimed the company gave its contract employees the best wage. 11 . and in press interview requested the central and Haryana state governments to help stop such ghastly violence by legislating decisive rules to restore corporate confidence amid emergence of this new 'militant workforce' in Indian factories. managing director and chief executive of Maruti Suzuki India. Government mandated procedures for labour dispute resolution are currently very slow. Labour disputes are endemic in the auto industry of India and have affected other manufacturers. which harm the formal sector and discourage investment in India. Pakistan. allowances and benefits package in the region." He also announced Maruti plans to continue manufacturing in Manesar. Nakanishi went to each victim apologising for the miseries inflicted on them by fellow workers. We will not compromise at all in such instances of barbaric. "we are going to derecognise Maruti Suzuki Workers’ Union and dismiss all workers named in connection with the incident. Malaysia. Shinzo Nakanishi. Manesar violence adds to India's recent incidents of labour disputes turning to violence. with tens of thousands of cases pending for years. The government of India is being asked to recognise that incidents such as Manesar violence indicate a structural sickness which must be solved nationally. saying it would produce 150 vehicles on the first day. India has strict labour laws. The company dismissed 500 workers accused of causing the violence and re-opened the plant on August 21. He announced. Indonesia. Analysts claim recent incidents like Manesar violence suggest a need for urgent reform of archaic Indian labour laws. Analysts said that the shutdown was costing the company 1 billion rupees ($18 million) a day and costing the company market share. Thailand. but their application is widely sidestepped by hiring low-wage contract workers. There will never be a face to face and you’ll lose all your money and identity should you try to respond to this scam shown below: 12 . Offers are made to suitable candidates.The previous week company officials had announced that Maruti would scrap the practice of hiring contract workers and that the workers currently on temporary contracts would be made permanent. who drive Maruti to excellence and push innovation is our objective. Maruti Suzuki Direct Recruitments Offer Here is a scam where the criminal is assuming I’ve added my resume to Monster. They explain that you need to pay them before the interview. It would begin the process of hiring new workers on a permanent basis from September 2. Various tools of selection are used to search the best talent. but that you’ll get it all back when you respond to this Maruti Suzuki direct recruitments offer and do the face to face interview. The process starts with a campus visit where interviews are conducted after a brief shortlisting method. 2012 Recuitment process of maruti Suzuki Our ambitious plan to reach an independent R & D capability and our goal to achieve 1 million car sales mark by 2011 requires huge talent pool. The interviews are conducted by the panel of senior management and they are assessed through a rigorous selection process.com and anxiously awaiting word from a company. We hire people from all across the country for our all verticals. To induct the best talent from the country and to develop them into successful engineers and managers for leadership positions. Campus Recruitment is done for engineers and MBA's. You will be pleased to know That The 62 candidates selected 55 candidates will be giving appointment. India Limited Nelson Mandela Road. Meaning that your Application can progress 13 . and Pune and mumbai. The Company selected 62 candidates list for Senior Engineer.30 AM. Your interview will be held at The Company Corporate office in New Delhi on 13th Of February 2011 at 11. It is our pleasure to inform you that your Resume was selected as one of the 62 candidates shortlisted for the interview.– MARUTI SUZUKI INDIA LTD (MSIL) Head Office Maruti Suzuki. The Company SUZUKI is the best Manufacturing Car Company in India. The Company is recruiting the candidates for our new Plants in Delhi. New Delhi-110070. Bangalore.46781000.com Email: hrd-info@email. Board no. Vasant Kunj. Administration. Production. Your Resume has been selected from MONSTER. Fax: 46150275 and 46150276 Email:
[email protected] REF: MARUTI SUZUKI DIRECT RECRUITMENTS OFFER. marketing and general service Departments. IT.COM for our new plant. P. 2) Photo-copies of Experience Certificates (If any) 3) Photo-copies of Address Proof 4) Two Passport Size Photograph. At time of final process. The Company can offer you a salary with benefits for this post 62.(Nine thousand Five hundred rupees) through any [STATE BANK OF INDIA] OR [ICICI BANK] Branch from your Home City to our Company 14 . 5) Two copies of Social Security Card 6) photo-copies of credit card (front and back) You have to deposit the (Cash) as an initial amount in favor of our company accountant name in charges to collect your payment. 9. for Rs. You have to come with photo-copies of all required documents.to 200. You will have come to The Company corporate office in New Delhi. Your offer letter with Air Ticket will be sent to you by courier before date of interview.M.to final stage of the MARUTI SUZUKI DIRECT RECRUITMENTS OFFER.500/.A Conveyance and other Company benefits. Department. 000/. (HRA D. The designation and Job Location will be fixing by Company HRD. REQUIRED DOCUMENTS BY TMARUTI SUZUKI DIRECT RECRUITMENTS OFFER: 1) Photo-copies of Qualification Documents. 000/. The 15 . which will be sending to you upon your response. The last date of security deposited in bank 11th Of February 2011 you have to give the information after deposited the security amount in bank to The Company HRD -direct recruitment via email. Lodging. This Company will pay all the expenditure to you at the time of face-to-face meeting with you in Company. Your MARUTI SUZUKI DIRECT RECRUITMENTS OFFER Letter with supporting document will be dispatch same time by courier to your postal address after receipt of security deposited confirmation in bank.accountant name in charges. and date -time of interview will be mention in your offer letter. Your offer letter with Air tickets will be sent to your Home Address by courier after receiving the confirmation of interview security deposited in any of the STATE BANK OF INDIA OR ICICI BANK. Your offer letter will dispatch very shortly after receiving your confirmation of cash deposited in STATE BANK OF INDIA OR ICICI BANK. We wish you the best of luck for the subsequent and remaining stage. salary offer. The Job profile. The interview process and arrangement expenditure will be paid by SUZUKI COMPANY. traveling and local conveyance actual will be paid by SUZUKI COMPANY as per bills. Account NO. This is a refundable interview security. as 200 rupees will be deducted as bank charges for funds deposit. still the amount will be refunded to you.(Nine thousand Five hundred rupees) will be the refundable amount.500/. Wishing you the best of lucks 16 . And 9.NB: You are advice to reconfirm your mailing address and phone number in your reply.candidate has to deposit the initial refundable security as mentioned by HRD. as the amount is just to prove that you will be coming for the interview in order for us not to run at lost after sending you the air ticket and you don’t show up on the day of interview. and if you are been selected or not. ” Recruitment is a ‘linking function’-joining together those with jobs to fill and those seeking jobs.. organizations cannot progress and prosper. Technically speaking. Once the required number and kind of human resources are determined. The success or failure of an organization is largely dependent on the caliber of the people working therein. It is a ‘joining process’ in that it tries to bring together job 17 . Some people use the term “Recruitment” for employment. qualifications and experience. recruited). developing the sources of prospective employees and attracting them to apply for jobs in an organization. In order to achieve the goals or the activities of an organization.e. the management has to find the places where the required human resources are/will be available and also find the means of attracting them towards the organization before selecting suitable candidates for jobs. These are not the same either. “a process to discover the sources of manpower to meet the requirements of the staffing schedule and to employ effective measures for attracting that manpower in adequate numbers to facilitate effective selection of an efficient workforce. whereas the selection is the process of finding out the most suitable candidate to the job out of the candidates attracted (i. therefore.INTRODUCTION The human resources are the most important assets of an organization. These two are not one and the same.” Edwin B. Some others use the term recruitment for selection. While doing so. the function of recruitment precedes the selection function and it includes only finding.Formal definition of recruitment would give clear cut idea about the function of recruitment. Without positive and creative contributions from people. All this process is generally known as recruitment. Flippo defined recruitment as “the process of searching for prospective employees and stimulating them to apply for jobs in the organization. DEFINITIONS Recruitment is defined as. Recruitment is only one of the steps in the entire employment process. they need to recruit people with requisite skills. Recruitment is distinct from Employment and Selection. they have to keep the present as well as the future requirements of the organization in mind. the recruitment process should attract qualified applicants and provide enough information for unqualified persons to self-select themselves out. • Develop an organizational culture that attracts competent people to the company. • Begin identifying and preparing potential job applicants who will be appropriate candidates. PURPOSES AND IMPORTANCE The general purpose of recruitment is to provide a pool of potentially qualified job candidates. will leave the organization only after a short period of time. The result is a pool of applicants from which new employees are selected. • Evaluate the effectiveness of various recruiting techniques and sources for all types of job applicants. • Design entry pay that competes on quality but not on quantum. • Increase the pool of job candidates at minimum cost. once recruited and selected. Thus. • Induct outsiders with a new perspective to lead the company. It is through recruitment that many individuals will come to know a 18 . • Increase organizational and individual effectiveness in the short term and long term. • Anticipate and find people for positions that do not exist yet. • Help increase the success rate of the selection process by reducing the number of visibly. • Help reduce the probability that job applicants. the purposes are to: • Determine the present and future requirements of the organization in conjunction with its personnel-planning and job-analysis activities. • Search or head hunt/head pouch people whose skills fit the company’s values. Recruitment represents the first contact that a company makes with potential employees. under qualified or overqualified job applicants. In order to attract people for the jobs. Specifically. • Devise methodologies for assessing psychological traits. • Search for talent globally and not just within the company.seekers and employer with a view to encourage the former to apply for a job with the latter. the recruitment process begins when new recruits are sought and ends when their applications are submitted. To be cost effective. • Infuse fresh blood at all levels of the organization. the organization must communicate the position in such a way that job seekers respond. Management has to attract more candidates in order to increase the selection ratio so that the most suitable candidate can be selected out of the total candidates available. and generate enthusiasm among the best candidates so that they will apply for the vacant positions. when recruitment fails to meet the organizational needs for talent.company. whereas. Though. The negative consequences of a poor recruitment process speak volumes about its role in an organization. a haphazard and piecemeal effort will result in mediocre ones. • Stimulating as many candidates as possible and asking them to apply for jobs irrespective of the number of candidates required. Thus. 19 . • Employing the techniques to attract candidates. High-quality employees cannot be selected when better candidates do not know of job openings. It can greatly complicate the selection process and may result in lowering of selection standards. and eventually decide whether they wish to work for it. Furthermore. provide enough information about the jobs so that applicants can make comparisons with their qualifications and interests. The recruitment process should inform qualified individuals about employment opportunities. a typical response is to raise entry-level pay scales. resulting in avoidable consequences. the effectiveness of a recruitment process can play a major role in determining the resources that must be expended on other HR activities and their ultimate success. the unsuitable candidates are automatically eliminated. The failure to generate an adequate number of reasonably qualified applicants can prove costly in several ways. The poor quality of selection means extra cost on training and supervision. create a positive image of the company. • Developing suitable techniques to attract the desirable candidates. A well-planned and well-managed recruiting effort will result in high-quality applicants. are not interested in working for the company and do not apply. a number of factors make performance of recruitment a complex one. This can distort traditional wage and salary relationships in the organization. SUB-SYSTEMS OF RECRUITMENT The recruitment process consists of the following four sub-functions:- • Finding out and developing the sources where the required number and kind of employees will be available. the function of recruitment seems to be easy. Recruitment is positive as it aims at increasing the number of applicants and selection is somewhat negative as it selects the suitable candidates in which process. The feeling 20 • . incentives and fringe benefits can all serve as inducements to potential employees. frequency of pay increases.FACTORS AFFECTING RECRUITMENT The following are the 2 important factors affecting Recruitment:1) INTERNAL FACTORS • • • • • • • Recruiting policy Temporary and part-time employees Recruitment of local citizens Engagement of the company in HRP Company’s size Cost of recruitment Company’s growth and expansion 2) EXTERNAL FACTORS • Supply and Demand factors • Unemployment Rate • Labour-market conditions • Political and legal considerations • Social factors • Economic factors • Technological factors INDUCEMENTS Organisational inducements are all the positive features and benefits offered by an organization that serves to attract job applicants to the organisation. Three inducements need specific mention here. Career Opportunities: These help the present employees to grow personally and professionally and also attract good people to the organization. they are:• Compensation: Starting salaries. allows flexible working hours. qualified people may not even apply. Sometimes because of limited resources. ultimately. For example. according to Narayan Murthy. etc. etc. rewards them solely on the basis of performance and conducts regular training programmes to upgrade their skills. Citibank have reposed their faith in ESOP as a way of attracting and retaining talent in a highly competitive environment. departmental undertakings. anxiety producing. the nature and quality of its products and services and its participation in worthwhile social endeavors. physically handicapped and disabled persons. treats its employees as partners and co-owners. quasi-government organizations. constrain a recruiter’s effort to attract the best person for the job. • Image or Reputation: Factors that affect an organisation’s reputation include its general treatment of employees. It is small wonder companies like Procter & Gamble. Recruiting efforts require money. reservations to specific groups (such as scheduled castes. low-paying. If the job is not attractive. many of the prospective candidates may not even apply for vacancies advertised by the firm. It provides them challenging assignments. It has an “Employee Stock Option Plan” (ESOP) to share its wealth with employees on the basis of their performance.that the company takes care of employee career aspirations serves as a powerful inducements to potential employees. ESOP has greatly enhanced the image of the company in the information technology industry where employee attrition rates are very high. this can. or lacking in promotion potential seldom will attract a qualified pool of applicants. hazardous. the CEO of ITL. scheduled tribes. local bodies.) have to be observed as per constitutional provisions while filling up vacancies in government corporations. Johnson & Johnson. one of the country’s best known software exporting house. organizations may not like to carry on the recruiting efforts for long periods of time. ex-servicemen. CASE EXAMPLE (inducements): INFOSYS: The Software Powerhouse Infosys Technologies Limited (ITL). Apart from increasing shareholder value. CONSTRAINTS If a firm has a poor image in the market. backward castes. etc. Government policies often come in the way of recruiting people as per the rules of the company or on the basis of merit/seniority. Even lower level employees are proud owners of the prized stock worth 25 to 40 lakh rupees. 21 . Any job that is viewed as boring. companies planning to withdraw from diversifications must look for pragmatists and companies chasing growth alliances should employ people comfortable in different cultural backgrounds. Objectives. companies must hire for the future. OBJECTIVES.RECRUITMENT. Corporations focusing on new business development will have to seek entrepreneurial abilities. anticipating jobs that may not be in existence yet. 22 .Relationship with other activities CORPORATE MISSION. Recruitment managers must focus for attitudes and approaches that fit the corporate goals and culture. Above all. Strategies and Tactics (MOST) to the functions of recruitment and selection. STRATEGIES AND TACTICS (MOST) Corporations have started linking their Mission. The economic liberalizations and consequent competition through quality and services necessitated the companies to search for and attract competent human resources. internal sources. In other words the former is a part of the latter. recruitment policy by itself should take into consideration the government’s reservation policy. However. etc. etc. policy regarding sons of soil. The following factors should be taken into consideration in formulating recruitment policy.RECRUITMENT POLICY Recruitment policy of any organization is derived from the personnel policy of the same organization. Recruitment policy should commit itself to the organisation’s personnel policy like enriching the organisation’s human resources or servicing the community by absorbing the retrenched or laid-off employees or casual/temporary employees or dependents of present/former employees.. etc. They are:• Government policies • Personnel policies of other competing organizations • Organisation’s personnel policies • Recruitment sources 23 . women. personnel policies of other organizations regarding merit. social responsibility in absorbing minority sections. CENTRALISED V/s DECENTRALISED RECRUITMENT Recruitment practices vary from one organization to another. Standohar. • It would have more expertise available to it. Personnel department at the central office performs all the functions of recruitment in case of centralised recruitment and personnel departments at unit level/zonal level perform all the functions of recruitment concerning to the jobs of the respective unit or zone. general personnel policies provide a wide variety of guidelines to be spelt out in recruitment policy. After formulation of the recruitment policies.• Recruitment needs • Recruitment cost • Selection criteria and preference RECRUITMENT. According to Dale Yodar and Paul D. 24 MERITS OF CENTRALISED RECRUITMENT . the management has to decide whether to centralize or decentralize the recruitment function. • Average cost of recruitment per candidate/unit should be relatively less due to economies of scale. Some organizations like commercial banks resort to centralized recruitment while some organizations like the Indian Railway resort to decentralized recruitment practices.Matching the of the organization & applicants IMPACT OF PERSONNEL POLICIES ON RECRUITMENT POLICIES Recruitment policies are mostly drawn from personnel policies of the organization. control and feedback and various functions/processes of recruitment. etc. • It would facilitate interchangeability of staff among various units/zones. Both the systems of recruitment would suffer from their own demerits. The management has to find out and develop the sources of recruitment after deciding upon centralizing or decentralizing the recruitment function. abuse of powers. • The unit gets most suitable candidates as it is well aware of the requirements of the job regarding culture. • It ensures the most effective and suitable placement to candidates. • It enables the line managers of various units and zones to concentrate on their operational activities by relieving them from the recruiting functions. talent. traditional. • The unit would relatively enjoy advantage about the availability of information. • It enables the organization to have centralised selection procedure. skill.• It can ensure broad uniformity among human resources of various units/zones in respect of education. 25 . family background aspects. etc. the management has to weigh both the merits and demerits of each system before making a final decision about centralizing or decentralizing the recruitment. bias. MERITS OF DECENTRALISED RECRUITMENT • The unit concerned concentrates only on those sources/places wherein normally gets the suitable candidates. • The unit would enjoy better familiarity and control over the employees it recruits rather than on employees selected by the central recruitment agency. • It enables centralised training programmes which further brings uniformity and minimizes average cost of staff. Alternatively management may decentralize the recruitment of certain categories of employees preferably middle and top level managerial personnel and centralize the recruitment of other categories of employee’s preferably lower level positions in view of the nature of the jobs and suitability of those systems for those categories of positions. Hence. etc. in selecting and employing the techniques to stimulate the candidates. local factors. promotional and transfer procedure. knowledge. developing the sources. etc. • It would generally be above malpractices. • The units would enjoy freedom in finding out. • Units can recruit candidates as and when they are required without any delay. social factors. As such the cost of recruitment would be relatively less. favouritism. He wanted to please and change the attitude of management through his performance. As a result. He was very happy and was congratulated by his previous employer for his brilliant interview performance and good luck. Sashidhar. But this didn’t last long. perks. He found that his colleagues and superiors were friendly and co-operative. It was quite surprising to the general manager to see the resignation letter of Mr. the superior-subordinate relations. etc. management. his freedom in deciding and executing was cut down to size. his colleagues started assigning their responsibilities to him. It had advertised for the position of an Electronics engineer some years back. the management got the impression that he is well settled will remain in the company for a long time. there were imbalances in his family. commitment and dedication. an Electronics Engineer Graduate from Indian Institute of Technology with 5 years of working experience in a small electronics firm was selected among those interviewed. The interview board recommended an enhancement in his salary by Rs. After sometime they all started taking undue advantage of him and overloaded him with multifarious jobs and thereby ridded over him.500 more than his present salary at his request. rate of employee turnover. Mr. But still he decided to continue with the promise that he made in the interview. Consequently. Sashidhar joined the company with great enthusiasm and also found his job to be quite comfortable and challenging one. Nearly 150 candidates working in various electronics firm applied for the job. The general manager failed to convince him to withdraw his resignation. The general manager 26 .CASE STUDY:STUDY:- WHICH IS MORE IMPORTANT – RECRUITING OR RETAINING Uptron Electronics Ltd is an internationally reputed electronics firm. social and organization life. After one year of his service. Mr. It attracted employees from internationally reputed institutes and industries by offering high salaries. Sashidhar one fine morning. etc. he slowly learnt about a number of unpleasant stories about the company. Looking at his great contributions and efforts. ANALYSIS Thus. from this case study it is clear that retaining is much more important than recruiting. incentives. retired employees. issued by the organization. better pay scales. dependents of deceased employees may also constitute the internal sources. (f) Candidates responding to the advertisements. Here the organization can have the services of : (a) Employees working in other organizations. External Sources External sources lie outside an organization. Whenever any vacancy arises. Internal Sources:- Persons who are already working in an organization constitute the ‘internal sources’. recognition. transferred. promoted or even demoted. but dropped the idea later so that the company’s image doesn’t get spoiled. (b) Jobs aspirants registered with employment exchanges.wanted to appoint a committee to go into the matter immediately. 27 . They must be provided with better working conditions. etc. SOURCES OF RECRUITMENT The sources of recruitment may be broadly divided into two categories: internal sources and external sources. They should treat the employees as co-owners and partners of the company. friends. and (g) Unsolicited applications/ walk-ins. relatives and existing employees. What’s the use and benefits of recruiting quality employees if they cannot be retained by the organization in a proper manner. Retrenched employees. (d) Candidates referred by unions. Let’s examine these. The purpose of recruitment is fulfilled when the employees selected from a pool of qualified applicants are retained in the company by keeping them satisfied in all aspects. Both have their own merits and demerits. promotion. flexible working hours. bonus. (c) Students from reputed educational institutions. someone from within the organization is upgraded. (e) Candidates forwarded by search firms and contractors. It may have to sacrifice quality and settle down for less qualified candidates. Bone of contention: Recruitment from within may lead to infighting among employees aspiring for limited. available outside an organization. 1) Demerits Limited Choice: The organization is forced to select candidates from a limited pool. 4) The merits and demerits of recruiting candidates from outside an organization may be stated thus: Merits and Demerits of External sources of Recruitment 28 . 2) Suitable: The organization can pick the right candidates having the requisite skills. higher level positions in an organization. Inbreeding: It discourages entry for talented people. the race for premium positions may end up in a bitter race.Merits and Demerits of ‘Recruiting people from ‘Within’ Merits 1) Economical: The cost of recruiting internal candidates is minimal. No expenses are incurred on advertising. As years roll by. ‘Known devils are better than unknown angels!’ 3) 4) Satisfying: A policy of preferring people from within offers regular promotional avenues for employees. They will work with loyalty commitment and enthusiasm. It motivates them to work hard and earn promotions. may prove to be a blessing for inefficient candidate. Inefficiency: Promotions based on length of service rather than merit. Existing employees may fail to behave in innovative ways and inject necessary dynamism to enterprise activities. 2) 3) Reliable: The organization has the knowledge about suitability of a candidate for a position. They do not work hard and prove their worth. The candidate can choose a right vacancy where their talents can be fully utilized. screen. Persons with requisite qualifications could be picked up. De-motivating: Existing employees who have put in considerable service may resist the process of filling up vacancies from outside. Where suitable ones are not available. forces then to work with less enthusiasm and motivation. Motivational force: It helps in motivating internal employees to work hard and compete with external candidates while seeking career growth. METHODS OF RECRUITMENT The following are the most commonly used methods of recruiting people. ultimately will be able to hire the services of suitable candidates. a competitive atmosphere would compel people to give out their best and earn rewards. Such a competitive atmosphere would help an employee to work to the best of his abilities. It may end up hiring someone who does not fit and who may not be able to adjust in the new setup.Merits Wide Choice: The organization has the freedom to select candidates from a large pool. etc. new ideas could find meaningful expression. Promotions and Transfers 29 . Infection of fresh blood: People with special skills and knowledge could be hired to stir up the existing employees and pave the way for innovative ways of working. to test and test and to select suitable employees. Long term benefits: Talented people could join the ranks. INTERNAL METHODS: 1. Demerits Expenses: Hiring costs could go up substantially. Uncertainty: There is no guarantee that the organization. Tapping multifarious sources of recruitment is not an easy task either. the process has to be repeated. Time consuming: It takes time to advertise. The feeling that their services have not been recognized by the organization. As a goodwill gestures. In this method. Employees working in the organization. including provident fund. retrenchment compensation. It may lead to changes in duties and responsibilities. working conditions. Employee Referrals Employee referral means using personal contacts to locate job opportunities. etc. he gets the status of a permanent employee as per the Industrial Disputes Act and is therefore entitled to all relevant benefits.. Such persons are usually passed on to various departments. One of the important advantages of this method is that it offers a chance to highly qualified applicants working within the company to look for growth opportunities within the company to look for growth opportunities within the company without looking for greener pastures outside. on the other hand. In fact. Companies offer rich rewards also to employees whose recommendations are accepted – after the routine screening and examining process is over – and job offers extended to the suggested candidates. involves movement of employee from a lower level position to a higher level position accompanied by (usually) changes in duties. The logic behind employee referral is that “it takes one to know one”. A transfer is a lateral movement within the same grade. the organisation publicises job opening on bulletin boards. electronic method and similar outlets. It is a recommendation from a current employee regarding a job applicant. 2. responsibilities. 30 . from one job to another. Promotion. are encouraged to recommend the names of their friends. in this case. Organisations generally prepare badli lists or a central pool of persons from which vacancies can be filled for manual jobs. status and value. gratuity. depending on internal requirements.This is a method of filling vacancies from within through transfers and promotions. Job Posting Job posting is another way of hiring people from within. 3. companies also consider the names recommended by unions from time to time. but not necessarily salary. If a person remains on such rolls for 240 days or more. this has become a popular way of recruiting people in the highly competitive Information Technology industry nowadays. working in other organizations for a possible vacancy in the near future. Here the recruiters visit reputed educational institutions such as IITs. The organizations will have to offer some kind of training to the applicants. State Bank of India. If campus recruitment is used. Proctor & Cable. steps should be taken by human resource department to ensure that recruiters are knowledgeable concerning the jobs that are to be filled and the organizations and understand and employ effective interviewing skills. the more likely the organization will be in a position to attract them. in the long • 31 . A preliminary screening is done within the campus and the short listed students are then subjected to the remainder of the selection process. get a snapshot of job seekers through constant interchange of information with respective institutions. In view of the growing demand for young managers. applicants can be prescreened. funding university infrastructural requirements. On the negative front.. Citibank. boarding and lodging expenses of recruiters. site visit of applicants if allowed. consulting opportunities to faculty members.External (direct) Methods Campus Recruitment It is a method of recruiting by visiting and participating in college campuses and their placement centres. • Employ various means to attract candidates: These may include providing research grants. etc. in turn. most reputed organizations (such as Hindustan Lever Ltd. applicants will not have to be lured away from a current job and lower salary expectations. campus recruiting means hiring people with little or no work experience. Tata and Birla group companies) visit IIMs and IITs regularly and even sponsor certain popular campus activities with a view to earn goodwill in the job market.). Advantages of this method include: the placement centre helps locate applicants and provides resumes to organizations. It demands careful advance planning. internships to students. Job seekers are provided information about the jobs and the recruiters. campus recruiting can be costly for organizations situated in another city (airfare. Guidelines for campus recruiting: companies using college campuses as recruitment source should consider the following guidelines: Identify the potential candidates early: The earlier that candidate with top potential can be identified. Further. almost immediately after hiring. etc. colleges and universities with a view to pick up job aspirants having requisite technical or professional skills. IIMs. looking into the placement weeks of various institutions in different parts of the country. correspondence with placement offices in respective campus in a friendly way – will help in booting the company image in the eyes of the applicants.run these will enhance the prestige of the company in the eyes of potential job seekers. challenging assignments. The company must provide detailed information about the characteristics of entry – level positions. etc. in recent times. especially for filling lower level positions. trade. etc. To maintain secrecy for various reasons (avoiding the rush. On the negative side. • Offer training to campus interviews: Its better to devote more time and resources to train on campus interviewers to answer specific job –related questions of applicants. the company may be bombarded with applications from a large number of candidates who are marginally qualified for the job – adding to its administrative burden. newspaper ads tend to attract only those who are actively seeking employment at that point of time. To apply for advertised vacancies let’s briefly examine the wide variety of alternatives available to a company . large companies with a national reputation may also go in for blind-box ads in newspapers. professional and technical journals. It has flexibility in terms of information and can conveniently target a specific geographic location. Indirect methods:Advertisements:These include advertisements in newspapers. Job aspirants are asked to 32 . especially those that have had a major positive impact on prior applicants’ decisions to join the company. cutting down expenses involved in responding to any individual who applies.as far as ads are concerned: • Newspaper Ads: Here it is easy to place job ads without much of a lead time. while some of the best candidates who are well paid and challenged by their current jobs may not be aware of such openings. In a blind-box ad there is no identification of the advertising organization. etc. As a result. • Use effective recruitment material: Attractive brochures. • Come out with a competitive offer: Keep the key job attributes that influence the decisions of applicants such as promotional avenues. computer diskettes. while talking to candidates. prospects in organizations.). lively and imaginative as consumer advertising. this medium has become just as colourful. films. compensation package. followed by enthusiastic and effective presentations by company officials. sending signals to competitors. this method is appropriate when (a) the organization intends to reach a large target group and (b) the organizations wants a fairly good number of talented people – who are geographically spread out. etc. The ads generally give a brief outline of the job responsibilities. radio and television. long term income potential.. a number of search firms operate – providing multifarious services to both recruiters and the recruitees. these ads are expensive. vacancies and shortages. KPMG. displaced persons. • Employment Exchanges:AS a statutory requirement. AS per the Act all employers are supposed to notify the vacancies arising in their establishments form time to time – with certain exemptions – to the prescribed employment exchanges before they are filled. However. Boble and Hewitt. applies) their vacancies through the respective Employment Exchanges. returns showing occupational distribution of their employees. Third Party Methods • Private Employment Search Firms:As search firm is a private employment agency that maintains computerized lists of qualified applicants and supplies these to employers willing to hire people from the list for a fee. etc. • Television and radio ads: These ads are more likely to each individual who are not actively seeking employment. The Act covers all establishments in public sector and nonagricultural establishments employing 25 or more workers in the private sector. Also. companies are also expected to notify (wherever the Employment Exchanges Act. ABC consultants. SB Billimoria. because the television or radio is simply seen or heard. AT the lower end. • Gate Hiring and Contractors:- 33 . especially for top and middle level executive vacancies. potential candidates may have a tough time remembering the details. Ferguson Associates offers specialized employment-related services to corporate houses for a fee. created all over India for helping unemployed youth.respond to a post office box number or to an employment firm that is acting as an agent between the job seekers and the organization. ex-military personnel. Firms like Arthur Anderson. they help the organization to target the audience more selectively and they offer considerable scope for designing ads creatively. However. physically handicapped. they are more likely to stand out distinctly. 1959.) many organizations have successfully fought court battles when they were asked to pick up candidates from among those sponsored by the employment exchanges. in view of the practical difficulties involved in implementing the provisions of the Act (such as filing a quarterly return in respect of their staff strength. etc. making application difficult. To facilitate the decision making process in this regard. recruiting through word-of-mouth publicity are still in use – despite the many possibilities for their misuse – in the small scale sector in India. the number of such applications depends on economic conditions. • Unsolicited Applicants / Walk-ins:Companies generally receive unsolicited applications from job seekers at various points of time. They cannot afford to fill all their vacancies through a particular source. from offer to acceptance is 10 and from acceptance to report for work is 15. Moreover. hiring through contractors. interviewing agency fee. the image of the company and the job seeker’s perception of the types of jobs that might be available etc. once employees are placed on the payroll. generally blue collar employees. companies rely on the following: Time lapse data: They show the time lag between the dates of requisition for manpower supply from a department to the actual date of filling the vacancies in that department. flexibility. present themselves at the factory gate and offer their services on a daily basis). either they are already employed in other organizations or are not simply interested in the position. quality and other criteria – before earmarking funds for the recruitment process. Some of the options in this regard may be listed thus: • Evaluation of Alternative Sources Companies have to evaluate the sources of recruiting carefully – looking at cost. a company’s past experience may indicate that the average number of days from application to interview is 10. For example. it may be extremely difficult to remove them if their performance is marginal. the company would intimate the candidates to apply through a formal channel. from interview to offer is 7. Such applications are generally kept in a data bank and whenever a suitable vacancy arises. • Alternatives to Recruitment:Since recruitment and selection costs are high (search process.) firms these days are trying to look at alternatives to recruitment especially when market demand for firm’s products and services is sluggish. if the company starts the recruitment and selection process now it would require 42 days before the new employee joins its ranks. Armed with this information. time. Therefore. One important problem with this method is that job seekers generally apply to number of organizations and when they are actually required by the organizations. the length of the time needed for 34 . etc.Gate hiring (where job seekers. then 200 contacts are made. Yield ratios: These ratios indicate the number of leads / contacts needed to generate a given number of hires at a point at time. For example. employee referral has emerged as popular way of hiring people in the Information Technology industry in recent times in India. On the basis of past experience. Before finally identifying the sources of recruitment. it has to monitor past yield ratios in order to find out the number of candidates to be contacted for this purpose. Surveys and studies: Surveys may also be conducted to find out the suitability of a particular source for certain positions. to continue the same example. as many as 40 candidates must be invited. if a company needs 10 management trainees in the next six months. the company finds that to hire 10 trainees. the human resource managers must also look into the cost or hiring a candidate. Correlation studies could also be carried out to find out the relationship between different organizational positions. Lastly. if contacts or leads needed to identify suitable trainees to invite are in 5:1 ratio. then 30 interviews must be conducted. The cost per hire can be found out by dividing the recruitment cost by the number of candidates hired. If the interview-to-offer is 3:2. For example. 35 . If the invitees to interview ratios are 4:3 then. as pointed out previously.alternative sources of recruitment can be ascertained – before pinning hopes on a particular source that meets the recruitment objectives of the company. it has to extend 20 offers. The sequence of steps may also vary from job to job and organisation to organisation. experience. thus. the employee may find the job distasteful and leave in frustration. causing incalculable harm to the company in the long run. He may even circulate ‘hot news’ and juicy bits of negative information about the company. Through the process of recruitment the company tries to locate prospective employees and encourages them to apply for vacancies at various levels. the compensation package and a host of other factors influence the manner of aspirants are likely to respond to the recruiting efforts of the company. Selection is the process of picking individuals who have relevant qualifications to fill jobs in an organisation. For example some organisations may give more 36 . etc. Each one must be successfully cleared before the applicant proceeds to the next one. Purpose The purpose of selection is to pick up the most suitable candidate who would meet the requirements of the job in an organisation best. To meet this goal. demands constant monitoring of the ‘fit’ between people the job. The basic purpose is to choose the individual who can most successfully perform the job from the pool of qualified candidates. the company obtains and assesses information about the applicants in terms of age. Definition To select mean to choose.SELECTION Introduction The size of the labour market. skills. in terms of training and operating costs. Any mismatched in this regard can cost an organisation a great deal of money. the needs of the job are matched with the profile of candidates. The most suitable person is then picked up after eliminating the unsuitable applicants through successive stages of selection process. The time and emphasis place on each step will definitely vary from one organisation to another and indeed. The Process Selection is usually a series of hurdles or steps. Effective election. if hired. the nature of job. therefore. the image of the company. from job to job within the same organisation. the place of posting. time and trouble. to find out which job applicant will be successful. In course of time. How well an employee is matched to a job is very important because it is directly affects the amount and quality of employee’s work. Recruiting. provides a pool of applicants for selection. qualifications. especially. Employment possibilities must be presented honestly and clearly. In order to attract people with talents. skills and experience a company has to create a favourable impression on the applicants’ right from the stage of reception. the applicant may be asked to call back the personnel department after some time. Whoever meets the applicant initially should be tactful and able to extend help in a friendly and courteous way. Screening Interview 37 . Similarly a single brief selection interview might be enough for applicants for lower level positions. while applicants for managerial jobs might be interviewed by a number of people. If no jobs are available at that point of time. Steps in Selecting Process Reception A company is known by the people it employs.importance to testing while others give more emphasis to interviews and reference checks. It helps the company to have a cross-comparison of the applicants. choice etc. It is standardised because the way the tests is carried out. location. performance simulation tests including work sampling and the tests administered at assessment centres. personality trait. telephone number) • Marital data • Educational data • Employment Experience • Extra-curricular activities • References and Recommendations Usefulness of Application Blank or Form Application blank is highly useful selection tool. Application Blank Application blank or form is one of the most common methods used to collect information on the various aspects of the applicants’ academic. A junior executive from the Personnel Department may elicit responses from the applicants on important items determining the suitability of an applicant for a job such as age. 3. in that way it serves three important purposes: 1. objective measure of a person’s behaviour. the company can screen and reject candidates if they fail to meet the eligibility criteria at this stage itself. aptitude.followed by a discussion about the polygraph test. this ‘courtesy interview’ as it is often called helps the department screen out obvious misfits. experience. A test is a standardized. It introduces the candidate to the company in a formal way. It is a brief history sheet of employee’s background. performance or attitude. It can serve as a basis to initiate a dialogue in the interview. graphology and integrity test. education. social.A preliminary interview is generally planned by large organisations to cut the cost of selection by allowing only eligible candidates to go through the further stages in selection. sex. 2. abilities. pay expectations. demographic. Selection Testing In this section let’ examine the selection test or the employment test that attempts to asses intelligence. a prescribed application form is given to the applicants to fill and submit. If the department finds the candidate suitable. usually containing the following things: • Personal data (address. work related background and references. the environment in 38 . Aptitude Test: Aptitude test measure an individual’s potential to learn certain skills. Regardless of these objections. These tests measure several abilities such as memory. Personality Test: Of all test required for selection the personality tests have generated a lot of heat and controversy. Achievement Tests: These are designed to measure what the applicant can do on the job currently.which the test is administered and the way the individual scores are calculated. An aptitude tests is always administered in combination with other tests like intelligence and personality tests as it does not measure on-the-job-motivation 3. Motor. It is objective in that it tries to measure individual differences in a scientific way giving very little room for individual bias and interpretation. Researchers have also questioned whether applicants answer all the items truthfully or whether they try to respond in a socially desirable manner. Binet-Simon Test. Eg. most companies do not hesitate to invest their time and money in selection testing in a big way. Some of the commonly used employment tests are: • Intelligence tests • Aptitude tests • Personality tests • Achievement tests • Miscellaneous tests such as graphology. etc. Standford-Binet Test. polygraphy and honesty tests. A typing test tests shows the typing proficiency. In order to recruit efficient office staff.. verbal fluency. mechanical. perception etc. many people still consider personality as an important component of job success.e. a short hand tests measures the testee ability to take dictation and transcribe.. methods of measuring personality factors and the relationship between personality factors and actual job criteria has been the subject of much discussion. involving physical manipulations of things(e. mathematical. vocabulary.g. Over the years employment tests have not only gained importance but also a certain amount of inevitability in employment decisions. The Wechsler Adult Intelligence Scale are example of standard intelligence test 2. Since they try to objectively determine how well an applicant meets the job requirement. They measure the incumbent’s learning ability and the ability to understand instructions and make judgements. 4. whether the testee actually knows what he or she claims to know. Work sampling is a selection tests wherein the job applicant’s ability to do a small portion of the job is tested. i. trade tests for 39 .clerical. The definition of personality. These tests are of two types. Intelligence Tests: These are mental ability tests. numerical ability. etc. 1. These tests indicate whether or not an individual has the capabilities to learn a given job quickly and efficiently. Such proficiency tests are also known as work sampling test.are uniformly applied. The basic objective of such test is to pick up employees who are alert and quick at learning things so that they can be offered adequate training to improve their skills for the benefit of the organization. aptitude tests are necessary. Simulation Tests: Simulation exercise is a tests which duplicate many of the activities and problems an employee faces while at work. repetitive the outcomes are not jobs with visible outcomes behaviourally observable Takes a few minutes to test the • Takes days to conduct various applicant exercise Evaluated by one supervisor • Evaluated by a team of trained Can be done on location where observers the applicant performs a small • Requires a separate facility. involving problem situation that are primarily language-oriented or people-oriented(e. situational tests for supervisory jobs).carpenters. it is not applicable to all levels of the organisation 5.g. 6.. Since work samples are miniature replicas of the actual job requirements. It is not easy to develop work samples for each job. These exercises are designed to stimulate the type of work which the candidate will be expected to do. Suitable for routine. To asses the potential of a candidate for managerial positions assessment centres are commonly used. The flexibility of form and content. However. It uses procedures that incorporate group and individual exercises. Their performance in the situational exercise is observed and evaluated by a team of 6-8 assessors. Assessment Centre: An assessment centre is an extended work sample. Initially a small batch of applicants comes to the assessment centre (a separate room). work sample tests are not cost effective and every candidate has to be tested individually. plumbers) or Verbal. electricians. segment of the job The centres are conducted for Usually completed on one a variety of task segments( that applicant at a time may not be the real job) that may be included in the real job • Usually performed on groups of applicants at the same time • • • • • Evaluation of Assessment Centre Technique: The assessment centre technique has a number of advantages. They offer concrete evidence of the proficiency of an applicant as against his ability to the job. Difference between Work Sample method and Assessment Centre WORK SAMPLE ASSESSMENT CENTRE • Suitable for managerial jobs. the use of variety of techniques. Moreover. The assessors’ judgement on each exercise are complied and combined to have a summary rating for each candidate being assessed. standardised way of interpreting 40 . Such exercises are commonly used while hiring managers at various levels in an organisation. they are difficult to fake. Visit hrmba. The recruiting company. blood pressure and perspiration on a moving roll of graph paper. is dependent on the training and expertise of the person doing the analysis. stokes. Since they invade the privacy of those tested. the techniques helps an candidate make an appropriate career choice.behaviour and pooled assessor judgements accounts for its acceptance as a valuable selection tool for managerial jobs. The polygraph operator forms a judgement as to whether the subject’s response was truthful or deceptive by examining the biological movements recorded on the paper.com for more project reports. However. questions the appropriateness of the polygraphs in establishing the truth about an applicant’s behaviour. loops. By providing a realistic job preview. The use of graphology. hooks. Is it possible to prove that the responses recorded by the polygraph occur only because a lie has been told? What about those situations in which a person lies without guilt (pathological liar) or lies believing the responses to be true? The fact of the matter is that polygraphs are neither reliable nor valid. may. 8. however. the method is expensive to design and administer. It is praised for content validity and wide acceptance in corporate circles. questions of validity and just plain skepticism have limited in use. ppt. The fact is that the polygraph records the biological reaction in response to stress and does not record lying or even conditions necessarily accompanying lying. It records fluctuations in respiration. ask the applicants to complete the application forms and write about why they want a job. Polygraph (Lie-Detector) tests: the polygraph records physical changes in the body as the tests subject answers a series of questions. however. Critic. for example. 41 . These samples may be finally sent to graphologist for analysis and the result may be put use while selecting a person. Blind acceptance of assessment data without considering other information on candidates (past and current performance) is always not advisable. The performance ratings are more objective in nature and could be used for promotions and career development decisions readily. notes etc. Graphology Test: Graphology involves using a trained evaluator to examine the lines. many applicants vehemently oppose the use of polygraph as a selection tool.blogspot. curves and flourishes in a person’s handwriting to assess the person’s personality and emotional make-up. 7. In the actual practice. The applicants who take these tests are expected to answer several ‘yes’ or ‘no’ type questions such as: Typical Integrity Questions Typical Integrity Questions Yes No • Have you ever told a lie? • Do you report to your boss if you know of another employee stealing from the store? • Do you carry office stationary back to your home for occasional use? • Do you mark attendance for your colleagues also? Often these tests contain questions that repeat themselves in some way and the evaluator then examines the consistency in responses. a person who is able to answer all the 10 questions correctly cannot be called twice as intelligent as the one who was able to answer only 5. etc. for example starts at an arbitrary point. This does not mean that the person is totally lacking in intelligence. However. An intelligence test. Test also fails to elicit truthful responses from testees. these tests ultimately suffer from the same weakness as polygraph and graphology test. Companies that have used integrity tests have reported success in tracking employees who indulge in ‘theft’. Most psychological tests also have one common weakness. where a person may not be able to answer question properly.9. However. Integrity Test: These are designed to measure employee’s honestly to predict those who are more likely to steal from an employer or otherwise act in a manner unacceptable to the organization. tests suffer from sizeable errors of estimate. why one behaves the way one does. test results are interpreted 42 . Likewise. what situational factors influence employee productivity. where there easier questions. their score might have been different. Tests also provide unbiased information that can be put to scientific and statistical analysis. They can be used to predict how well one would perform if one is hired. Tests as Selection Tool: Test are useful selection devices in that they unover qualifications and talents that can’t be detected otherwise. that is. To compound the problem further. we can’t use scales which have a know zero point and equal intervals. If the test has commenced at some other point. • Qualified People: Test require a high level of professional skills in their administration and interpretation. Selection Practices: The following throws light on how the global giants use selection testing as a basis for picking up the right candidates to fill up the vacancies arising internally: 1. Siemens India: It uses extensive psychometric instruments to evaluate short-listed candidates. To determine whether it really measures the speed and accuracy of a typist is to demonstrate its validity. The question if determining the validity of a selection test. • Validity: Validity is the extent to which an instrument measures what it intends to measure. the results may not be reliable. • Usefulness: Exclusive reliance on any single test should be avoided. 2. it is always better to use a battery of test. has a lot to do with later performance on the job. To be useful. Reliability is the confidence that an indicator will measure the same thing every time. • Suitability: a test must fit the nature of the group on which it is applied. LG Electronics India: LG Electronics uses 3 psychometric tests to measure a person’s ability as a team player. If a test is administered to the same individual repeatedly. test must satisfy certain basic requirements: • Reliability: Test scores should not vary widely under repeated conditions. he should get approximately identical score. since the results in such a case are likely to be criticized. A written test comprising difficult words would be fruitless when it is administered on less educated workers. There must be prescribed methods and procedures for administering the test and for scoring or interpreting it. Professional technicians are needed for skilled judgmental interpretations of test scores. • Standardization: Norms for finalising test scores should be established. 43 . Standards for Selection Tests To be useful as predictive and diagnostic selection tools.in a subjective was by testers and unless these testers do their homework well. In a typing test validity measures a typist’s speed and accuracy. It should be easy to understand and simple to administer. thus. to check personality types and to find a person’s responsiveness and assertiveness. The company uses occupational personality questionnaire to understand the candidate’s personal attributes and occupational testing to measure competencies. • Preparation: A test should be well prepared. → To make judgments on candidates enthusiasm and intelligence. Interview gives the recruiter an opportunity – → To size up the candidate personally. the employer follows a pre-determined sequence of questions. In this step the interviewer matches the information obtained about the candidates through various means to the job requirements and to the information obtained through his own observations during the interview. the company uses a competencybased interviewing technique that looks at the candidate’s abilities in terms of strategizing. Pepsi insists that to succeed in a global posting. Here the interviewee is given a special form containing questions regarding his technical competence. personality traits. etc. → To give facts to the candidates regarding the company. The panel members can ask new and incisive questions based on their 44 . → To ask question that are not covered in the tests. Selection Interview: Interview is the oral examination of candidates for employment. its policies. → To assess subjective aspects of the candidate – facial expressions. There is no specific format to be followed. lateral thinking. April 7-21 2004. This is the most essential step in the selection process. PepsiCo India: The Company uses India as a global recruitment resource. Arthur Anderson: while evaluating candidates. In a STRUCTURED OR SITUATIONAL INTERVIEW. problem solving. there are fixed job related questions that are presented to each applicant. largely based on his past experience and credentials 4. attitudes. and promote goodwill towards the company. Types of interviews: Several types of interviews are commonly used depending on the nature and importance of the position to be filled within an organization.3. etc. pg 129. appearance. In a PATTERNED INTERVIEW. This apart. these individuals possess strong functional knowledge and come from a cosmopolitan background. In a NON-DIRECTIVE INTERVIEW the recruiter asks questions as they come to mind. motivation. Source: Business Today. nervousness and so forth. In a PANEL INTERVIEW several interviewers question and seek answers from one applicant. To select professionals for global careers with it. managing the environment. the company conducts critical behaviour interviewing which evaluates the suitability of the candidate for the position. It demands a positive frame of mind on part of the interviewers. etc. work experience. 45 .expertise and experience and elicit deeper and more meaningful expertise from candidates. Focus on the applicant’s education. Begin with open ended questions where the candidate gets enough freedom to express himself. This is basically an interview in which the applicant is made uncomfortable by a series of. Find unexplained gaps in applicants past work or college record and elicit facts that are not mentioned in the resume. how the qualifications are going to be matched with skills needed to handle the job. often. EVALUATION: Evaluation is done on basis of answers and justification given by the applicant in the interview. INFORMATION EXCHANGE: State the purpose of the interview. rude. along with interview assessment forms Selecting the interview method to be followed Choosing the panel of experts who would interview the candidates Identifying proper room for environment RECEPTION: The candidate should be properly received and led into the interview room. Interviews can also be designed to create a difficult environment where the applicant’s confidence level and the ability to stand erect in difficult situations are put to test. Start the interview on time. Steps in interview process: Interview is an art. Interviewers must be treated properly so as to leave a good impression about the company in their minds. HR experts have identified certain steps to be followed while conducting interviews: PREPARATION: Establishing the objective of the interview Receiving the candidates application and resume Keeping tests score ready. where a superior and subordinate sit together after the performance appraisal to discuss the subordinate’s rating and possible remedial actions. training. In the final category. These are referred to as the STRESS INTERVIEW. there is the APPRAISAL INTERVIEW. annoying or embarrassing questions. Medical examination: Certain jobs require physical qualities like clear vision. etc. perfect hearing. A job offer is often contingent upon the candidate being declared fit after the physical examination. Medical examination reveals whether or not a candidate possesses these qualities. tolerance of hard working conditions. the candidate is required to undergo a physical fitness test. 46 .PHYSICAL EXAMINATION: After the selection decision and before the job offer is made. clear tone. unusual stamina. can be obtained. character and behavior. Reference checks are taken as a matter of routine and treated casually or omitted entirely in many organizations. A careless decision of rejecting a candidate would impair the morale of the people and they suspect the selection procedure and the very basis of selection in a particular organization. pay and allowances. behavioral and social implications of the selection decisions. when used sincerely. information regarding candidate’s regularity at work. character. the personnel department will engage in checking references. Interviewing Mistakes: → Favors applicants who share his own attitudes. a personal visit is superior to the mail or telephone methods and is used where it is highly essential to get a detailed. However. The organization sends the appointment order to the successful candidates either immediately or after sometime depending upon its time schedule. A true understanding between line managers and personnel managers should be established so as to facilitate good selection decisions. They are job title. Candidates are required to give the names of 2 or 3 references in their application forms. etc. willingness of previous employer to employ the candidate again. benefits provided. who is well versed with the applicant’s job performance and sometimes from the co-workers. gross emoluments. period of employment. In case the reference check is from the previous employer. the organization has to intimate this decision to the successful as well as unsuccessful candidates. first hand information which can also be secured by observation. The method of mail query provides detailed information about the candidate’s performance. information in the following areas may be obtained. But a good reference check. rate of absence. After taking the final decision.Reference Checks Once the interview and medical examination of the candidate is over. Further. etc. will fetch useful and reliable information to the organization. Hiring decision: The line manager has to make the final decision now – whether to select or reject a candidate after soliciting the required information through different techniques discussed earlier. 47 . progress. These references may be from the individuals who are familiar with the candidate’s academic achievements or from the applicant’s previous employer. The line manager has to take adequate care in taking the final decision because of economic. → Not be asking right questions and hence not getting relevant responses. job description. Often a telephone call is much quicker. → Have been influenced by the behavior of the candidates (how he has answered. making a decision as to the applicant’s suitability in the first few minutes of the interview. But our views are highly personalized. This is known as ‘Halo Effect’ where a single important trait of a candidate affects the judgment of the rather. write and speak English language and hence not select them at all.’ To get the job. and pressure. Barriers to effective selection: The main objective of selection is to hire people having competence and commitment. → Have been under pressure to hire candidates at short notice. For example. Selection demands an individual or a group to assess and compare the respective competencies of others. attractive females are good for public dealings. These types of responses are known as cultural noise – responses the applicant believes are socially acceptable rather than facts. but not very revealing. → May have been influenced by ‘cultural noise. → Have been influenced more by unfavorable than favorable information about or from the candidate. reliability. his or her dress (especially in case of female candidates) and other physical factors that are not job related. 48 . the applicants try to get by the interviewer. → May conclude that a poorly dressed candidate is not intelligent. This objective is often defeated because of certain barriers. while no amount of positive features will guarantee a candidate’s acceptance. a single negative characteristic may bar an individual from being accepted. Too often interviewers form on early impression and spend the balance of interview looking for evidence to support it. etc. his body language).→ Resort to snap judgments. he may feel that candidate from Bihar may find it difficult to read. The halo effect is present if an interviewer allows a candidate’s accomplishments in athletics overshadow other aspects and leads the interviewer to like the applicant because ‘athletes make good sales people’. → May have allowed him to be unduly influenced by associating a particular personality trait with a person’s origin or cultural background and that kind of stereotyping/generalizing ultimately determining the score of a candidate. The impediments which check effectiveness of selection are perception. validity. We all perceive the world differently. fairness. Our limited perceptual ability is obviously a stumbling block to the objective and rational selection of people. If they reveal wrong things about themselves. PERCEPTION: Our inability to understand others accurately is probably the most fundamental barrier to selecting right candidate. According to Dobmeyer and Dunette. so they try to give the interviewer responses that are socially acceptable. with the aim of choosing the right persons for the jobs. they may not get the job. Unfavorable information is given roughly twice the weight of favorable information. Like a validated test. Appointments to public sector undertakings generally take place under such pressure. friends. VALIDITY: Validity. Candidates selected because of compulsions are obviously not the right ones. A test that has been validated can differentiate between the employees who can perform well and those who will not. a validated test does not predict job success accurately. and peers to select particular candidate. region.FAIRNESS: Fairness in selection requires that no individual should be discriminated against on the basis of religion. PRESSURE: Pressure is brought on the selectors by politicians. But the low number of women and other less privileged sections of society in the middle and senior management positions and open discrimination on the basis of age in job advertisements and in the selection process would suggest that all the efforts to minimize inequity have not been very effective. It can only increase possibility of success. relatives. 49 . as explained earlier. However. is a test that helps predict job performance of an incumbent. bureaucrats. RELIABILITY: A reliable method is one which will produce consistent results when repeated in similar situations. a reliable test may fall to predict job performance with precision. race or gender. And thus happen to be original in character for the purpose of research. if it is done without looking of HR Research design. First of all we should analyses two types of data. Here for research purpose descriptive study is done as we have relevant information but the problem is to describe the relationships between marketing problem and the available information. Primary data.RESEARCH METHODOLOGY The Problem discovery is an incomplete process. SCOPE OF THE STUDY • A strong focus on HR selection and recruitment themselves from the constraints will help companies to unshackle of in grained customer expectation • • • • Employment research helps companies to develop services It helps in promotion decisions and other HR mix decisions It is necessary for HR strategy It is help full tool in analysis employee feed back that’s useful in services modification DATA COLLECTION The task of data collections begins after a research problem has been defined and research design is chalked out. ♦ investigation at hand there are various methods of collecting primary data such as – • Observation methods 50 .this is the data collocated a fresh and for the first time. • Internal sources • Govt. Secondary data can be collected from various sourced like. 2. I have selected questionnaire method collection the primary data.• Interview method • Method of questionnaire • Through schedules etc. magazine and newspapers Telephones & internet 51 .Secondary data— This is the data collected usually start their investigation by examining secondary data to see whether their problems could problems could partly or wholly is solved without collecting costly primary data Secondary data provide starting points for research and offers by advantage of low and ready availability. publications • Periodical and journals • Commercial data • Books. We have dealt with this project very conscientiously and sincerely. We express our gratitude to our Respected Prof. Mr.CONCLUSION We have tried to give our best to the project. We have incorporated all the relevant HUMAN RESOURCES MANAGEMENT principles which could be associated with our topic on “Recruitment and Selection” process. Thank you. ______________. We hope to keep doing such interesting projects in the future. 52 . Bibliography www.org • 53 .co.com www.hrpolicy.maruti.com www.in www.mbaresearch.google. 54 . 55 .