anamika hdfc recutimet.docx

8/16/2019 anamika hdfc recutimet.docx

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A PROJECT REPORT

ON

“RECRUITMENT & SELECTION”

AT

(HDFC)

SUBMITTED TO:

UP TECHNICAL UNIVERSITY, LUCKNOW

IN THE PARTIAL FULFILLMENT FOR THE AWARD OF THE

DEGREE OF

Master of Business Administration

( Session 2008-10 )

SUBMITTED BY:

ANAMIKA SHARMAMBA – 3rd Sem

Roll No - 081197040

INSTITUTE OF PROFESSIONAL EXCELLENCE AND

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MANAGEMENT ,GHAZIABAD.

(A -131,S.S.G.T. R!"#, I$#%'"* A+" , NH -, G"/"0"# -11 )

PREFACE

There are number forces that make marketing an endlessly changing activity The constantly

activity sociological! "sychological and "olitical environment may re"resent the uncontrollable

marketing factors To understanding these factors in better #ay marketing research is of almost

im"ortance

This Pro$ect Re"ort has been com"leted in Partial fulfillment of my %anagement Program! Post

&raduate 'i"loma in (usiness %anagement )%(A* in the com"any +',C -TAN'AR' ./,E

/N-0RANCE The ob$ective of my "ro$ect #as RECR0/T%ENT AN' -E.ECT/ON AT

+',C (AN23

+',C -TAN'AR' ./,E is the name #hich is #orking as one of the best "rivate insurance

com"any in insurance sector

4ith such large "o"ulation and the unta""ed market of "o"ulations insurance ha""ens to be very

big o""ortunity in /ndia Today it stands as a business gro#ing at the rate of 15678 "ercent

annually Together #ith banking services! /t adds about 9 "ercent to the country:s &'P /n s"ite

of all this gro#th the statistics of the "enetration of the insurance in the country is very "oor

Nearly ;8< of /ndian "o"ulations are #ithout .ife /nsurance cover and the +ealth /nsurance

This is an indicator that gro#th "otential for the insurance sector is immense in /ndia

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AC2NOLEDGEMENT

Progress in life! business or any "ro$ects comes through taking initiatives = continuing to

"rogress on ne# conce"ts = ideas The original momentum is not enough to kee" you moving

for#ard >our "rogress #ill grit to halt unless you refill your engine for ins"iration #ith fuel of

fresh ideas #ith enthusiasm = "ro"er guidance Accom"lishment re?uires the effort of many

"eo"le and this #ork is no different / #ould like to thank all those #ho hel"ed me directly or

indirectly and #hose diligent efforts made this "ro$ect "ossible

/ am grateful to P!4. S"' G%5'" )'&* of /nstitute of %anagement Education for creating a

conducive environment in the institute for a "ur"oseful education

/ e@"ress my "rofound gratitude to D. D.P. G!6"* )'irector*! D. T"%$" G"%'"7 )Assistant

'irector* = M. G%5++' S$8 S"9#+:" )Pro$ect Co6ordinator* of /nstitute of %anagement

Education for their encouragement

/ #ould like to thank most to M. A"' S$8 (HR M"$"8+) #hose initiative and guidance

enabled me to conce"tualie and construct the "ro$ect “R+9%'7+$' & S+*+9'!$” /t has been

great to #ork under their guidance

/ also take this o""ortunity to e@"ress my "rofound gratitude to all those res"ondents #ho made

this "ro$ect successful by coo"erating #ith me

.ast but not the leastB / #ould like to thank my "arents and colleagues for their kind su""ort

B++$% 2%7"


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DECLARATION

/ hereby declare that the "ro$ect re"ort entitled R+9%'7+$' & S+*+9'!$ "'3 submitted for the

M"'+ !4 B%$+ A#7$'"'!$ is my original #ork and the Pro$ect Re"ort has not formed

the basis for the a#ard of any degree! di"loma! associated! or other similar title

'ateD 6 5th June 788 to 18th July

PlaceD6 Ne# 'elhi ANA%/2A -+AR%A

%(A rd -emester

F


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CONTENTS

Page No

1 Cover Page 161

7 Preface 767

Ackno#ledgement 6

F 'eclaration F6F

5 Table of Content 565

Part G 1

H (rief +istory of Organiation H69

9 Organization structure 11-

11

8. Vision, Mission & Value 12-

16

9. Performance 17-2110. Prouct an ser!ice 22-"6

11. Pro#lem of t$e organization "7-

"8

Part % 2

12. O#ecti!e "9-'0

1(. )esearc$ Met$oolog* '1-

90

1". +nal*sis O/ 91-

9"

1'. inings 9'-96

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16. onclusion 97-

110

17. 3imitation 111-

111

18. +nne4ure 112-11(

19. 5i#liogra$* 11"-117

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PART - I

BRIEF HISTOR; OF THE ORGANIZATION

The +ousing 'evelo"ment ,inance Cor"oration .imited )+',C* #as amongst the first to

receive an in "rinci"le a""roval from the Reserve (ank of /ndia )R(/* to set u" a bank in the

"rivate sector! as "art of the R(/Is liberaliation of the /ndian (anking /ndustry The bank #as

incor"orated in August 1F in the name of +',C (ank .imited! #ith its registered office in

%umbai! /ndia The bank commenced o"erations as a -cheduled Commercial (ank in January

15

P!7!'+

+',C is /ndiaIs "remier housing finance com"any and en$oys an im"eccable track record in

/ndia as #ell as in international markets -ince its ince"tion in 199! the Cor"oration has

maintained a consistent and healthy gro#th in its o"erations to remain the clear market leader in

mortgages and banking services in /ndia /ts outstanding loan "ortfolio covers over a million

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d#elling units +',C has develo"ed significant e@"ertise in retail mortgage loans to different

market segments and also has a large cor"orate client base for its housing related credit facilities

4ith its e@"erience in the financial markets! a strong market re"utation! large shareholder base

and uni?ue consumer franchise! +',C #as ideally "ositioned to "romote a bank in the /ndian

environment

5usiness ocus+',C (ankIs mission is to be a 4orld Class /ndian (ank The (ankIs aim is to build a sound

customer franchise across distinct businesses so as to be the "referred "rovider of banking

services in the niche segments that the bank o"erates in and to achieve healthy gro#th in

"rofitability! consistent #ith the bankIs risk a""etite The bank aims to ensure the highest level of

ethical standards! "rofessional integrity and regulatory com"liance +',C (ankIs business

"hiloso"hy is based on four core valuesD O"erational E@cellence! Customer ,ocus! Product

.eadershi" and Peo"le The (ank signed a strategic business collaboration agreement #ith Chase

%anhattan (ank in ,ebruary 1

aital tructureThe authoried ca"ital of +',C (ank is RsF58 crores The "aid6u" ca"ital is Rs7;17 crores

The +',C &rou" holds 7F5< of the bankIs e?uity #hile about 1< of the e?uity is held by

the de"ository in res"ect of the bankIs issue of American 'e"ository -hares )A'-A'R /ssue*

The /ndian Private E?uity ,und! %auritius )/PE,* and /ndocean ,inancial +oldings .td!

%auritius )/,+.* )both funds advised by J P %organ Partners! formerly Chase Ca"ital Partners*

together hold about 11H< of the bankIs e?uity Roughly 1;< of the e?uity is held by ,//s!

NR/sOC(s #hile the balance is #idely held by about 88!888 shareholders The shares are

listed on the The -tock E@change! %umbai and the National -tock E@change The bankIs

American 'e"ository -hares are listed on the Ne# >ork -tock E@change under the symbol

K+'(K

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T7+B"$< A7"*8"7"'!$

/n a milestone transaction in the /ndian banking industry! Times (ank .imited )another ne#

"rivate sector bank "romoted by (ennett! Coleman = Co Times &rou"* #as merged #ith

+',C (ank .td! effective ,ebruary 7H! 7888 As "er the scheme of amalgamation a""roved by

the shareholders of both banks and the Reserve (ank of /ndia! shareholders of Times (ank

received 1 share of +',C (ank for every 595 shares of Times (ank The amalgamation added

significant value to +',C (ank in terms of increased branch net#ork! e@"anded geogra"hic

reach! enhanced customer base! skilled man"o#er and the o""ortunity to cross6sell and leverage

alternative delivery channels

D'0%'!$ N+'=!


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The %anaging 'irector! %r Aditya Puri! has been a "rofessional banker for over 78 years! and

before $oining +',C (ank in 1F #as heading CitibankIs o"erations in %alaysia

The (ankIs (oard of 'irectors is com"osed of eminent individuals #ith a #ealth of e@"erience

in "ublic "olicy = administration and commercial banking -enior e@ecutives re"resenting

+',C and J P %organ Partners )formerly Chase Ca"ital Partners* are also on the (oard

-enior banking "rofessionals #ith substantial e@"erience in /ndia and abroad head various

businesses and functions and re"ort to the %anaging 'irector &iven the "rofessional e@"ertise

of the management team and the overall focus on recruiting and retaining the best talent in the

industry! the bank believes that its "eo"le are a significant com"etitive strength

/ec$nolog*+',C (ank o"erates in a highly automated environment in terms of information technology and

communication systems All the bankIs branches have connectivity #hich enables the bank to

offer s"eedy funds transfer facilities to its customers %ulti6branch access is also "rovided to

retail customers through the branch net#ork and Automated Teller %achines )AT%s*

The (ank has made substantial efforts and investments in ac?uiring the best technology available

internationally! to build the infrastructure for a #orld class bank /n terms of soft#are the

Cor"orate (anking business is su""orted by ,le@cube! #hile the Retail (anking business by

,in#are! both from /6fle@ -olutions .td )formerly Citicor" /nformation Technology /ndia .td*

The systems are o"en! scaleable and #eb6enabled

The (ank has "rioritied its engagement in technology and the internet as one of its key goals

and has already made significant "rogress in #eb6enabling its core businesses /n each of its

businesses! the (ank has succeeded in leveraging its market "osition! e@"ertise and technology to

create a com"etitive advantage and build market share

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11


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ORGANIZATION STRUCTURE

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MISSION & >ISION

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1F


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1H


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PERFORMANCE

+',C (ank caters to a #ide range of banking services covering both commercial and

investment banking on the #holesale side and transactional branch banking on the retail side

The bank has three key business areasD6

") !*+"*+ B"$


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Personal .oans and .oans for Consumer 'urables and T#o6#heelers /t is also a leading

"rovider of 'e"ository Partici"ant )'P* services for retail customers

+',C (ank #as the first bank in /ndia to launch an /nternational 'ebit Card in association #ith

L/-A )L/-A Electron* and issues the %asterCard %aestro debit card as #ell The debit card

allo#s the user to directly debit his account at the "oint of "urchase at a merchant establishment!

in /ndia and overseas The (ank launched its credit card in association #ith L/-A in November

7881 The (ank is #ell "ositioned as a leader in various net based (7C o""ortunities including a

#ide range of internet banking services for ,i@ed 'e"osits! .oans! (ill Payments! etc

9) T+"%6 O5+"'!$

4ithin this business! the bank has three main "roduct areas 6 ,oreign E@change and 'erivatives!.ocal Currency %oney %arket = 'ebt -ecurities! and E?uities 4ith the liberaliation of the

financial markets in /ndia! cor"orate need more so"histicated risk management information!

advice and "roduct structures These and fine "ricing on various treasury "roducts are "rovided

through the bankIs Treasury team

)ating

+',C (ankIs "rogramme for Certificates of 'e"osits has been rated by the /ndian rating agency

Credit Analysis = Research .td )CARE* T+ CD "+ "'+# PR 1? '+ 8+' "'$8 4!

!' '+7 $'%7+$' $#9"'$8 %5+! 9"5"9'6 4! +5"67+$'.

F$"$9"* S'+$8'

>ear End 6 %ar 788;

Credit'e"osit D FH <

/nvestment'e"osit D HF <

Cash'e"osit D ;7 <

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Credit/Deposit; 39%Investment/Deposit; 54%

Cash/Deposit ; 7%

S"+ I$4!7"'!$

1@

Recent Price )Rs* D 799;5

Lolume D 58799

>ear To 'ate +igh )Rs* D 8

>ear To 'ate .o# )Rs* D 1;9

,ace Lalue )Rs* D 18

%arket Ca"italiation )Rs Crore* D 9;9HF

-hares Outstanding ).akhs* D 7;785

%arket .ot D 1

>"*%"'!$ R"'!

>ear End 6 %ar 788;

PriceEarnings D 78;

Price(ook D F

Price-ales D ;9

'ividend >ield )


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Cash )Rs* D 117H

'ividend )Rs* D

Total /ncome )Rs* D 9197

Earnings )Rs* D 1H

I$9!7+ S'"'+7+$'

>ear End 6 %ar 788; )Rs Crore*

Total /ncome D 78779

Other /ncome D F91

O"erating Profit D ;9H

/nterest D 111H

'e"reciation D 18H1F

Net Profit D ;9H

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BOARD OF DIRECTOR

C"7"$ "8#+ C"5!!

M"$"8$8 #+9'! A#'6" 5%

D+9'! >+$


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PRODUCT AND SER>ICE

7F


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7H


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79


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7;


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F


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5


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H


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9


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F8


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F1


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F7


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F


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FF


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F5


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FH


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F9


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F;


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P!0*+7 !4 '+ O8"$/"'!$ "$# 4%'%+ !4 '+ O8"$/"'!$

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PART -II

OBECTI>E

To study the Recruitment = -election Practices at +',C (AN2 ./%/TE'

To identify the various factors com"anies undertake "rior to the recruitment "rocess

To study ho# the com"anies establish a fit bet#een their business strategy and

recruitment strategy

To study ho# the com"anies have co"ed #ith change in the market vis a vis its

recruitment "rocess

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RESEARCH M;THOLOG;

T+ 5%5!+ !4 '+ 7+'!#!*!86 '! #+90+ '+ ++"9 5!9+#%+. T $9*%#+ !:+"**

++"9 #+8$, '+ "75*$8 5!9+#%+, '+ #"'" 9!**+9'!$ 7+'!#, "$# '+ 4+# 7+'!#

"$# "$"*6 5!9+#%+.

Out of total universe 8 res"ondents from com"any have been taken for convenience The

sam"le "rocedure chosen for this are statistical sam"ling method +ere randomly em"loyee:s are

selected and intervie#ed An in de"th intervie# is conducted #ith the +uman Resource +ead

/nformation! #hich / collected! #as based on the ?uestionnaires filled u" by the sam"le

em"loyees

0nder secondary method / took the hel" of various reference books #hich / have mentioned in

bibliogra"hy and also by #ay of surfing through the com"any #ebsite

P7"6 D"'"

%+'!$$"+ Corres"onding to the nature of the study direct! structured ?uestionnaires

#ith a mi@ture of close and o"en6ended ?uestions #ill be administered to the relevant

res"ondents #ithin the Personnel and other 'e"artments of the organisation

I$-#+5' $'+:+= #ill be conducted #ith the to" level management "ersonnel involved as

"anel members of the recruitment = selection committees of the organisation to substantiate

the ?uestionnaire administered

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S+9!$#"6 D"'"

• O8"$"'!$"* *'+"'%+ Any relevant literature available from the organisation on the

Com"any "rofile! recruitment = selection "rocedures! Job s"ecifications (KSAs)!

de"artment6#ise break u" of man"o#er strength and the orgnaisational structure

• O'+ S!%9+ A""ro"riate $ournals! magaines such as Human Capital ! relevant

ne#s"a"er articles! com"any brochures and articles on ### sites #ill also be used to

substantiate the identified ob$ectives

S"75*$8 P*"$ "$# D+8$

A questionnaire will be used for the purpose of research:

Questionnaire: To test the validity and effectiveness of the recruitment and selection

"rocedures #ithin the organisation and to test the validity and effectiveness of the "olicies

and "rocedures #ithin the organisation .

♦ The basic rationale of Questionnaire is to ascertain the perception of the non-HR

departments in terms of the validity and effectiveness of the policies and procedures used by

the organisation. It is also in line with the assessment of any suggestions/recommendations

that the respondents from these Departments might have in terms of the use of an alternative

source/device of recruitment and selection than what already forms the current practice of

the HR Department.

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Questionnaire #ould be administered to 15 res"ondents! holding a senior designation #ithin

the Personnel 'e"artment of the organisation /t #ill also be administered to at least 15

res"ondents belonging to typical 'e"artments #ithin the organisation and holding senior

designations #ithin their res"ective 'e"artments

n depth inter!iews #ould also be conducted #ith these res"ondents #ith the aim of

substantiating their vie#s entailed from the Questionnaire.

The total number of em"loyees covered in the ?uestionnaires are 8! 78 (usiness E@ecutives

and 18 Non6(usiness E@ecutives

S"75*$8 E*+7+$'

,or the "ur"ose of administering the Questionnaire! the res"ondents #ould com"rise of

"ersonnel holding senior designations #ithin the Personnel 'e"artment of the organisation

The res"ondents for the Questionnaire #ill also be "referably be "anel members of the

Recruitment = -election (oard of the organisation

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The res"ondents #ould com"rise of "ersonnel holding senior designations #ithin certain

ty"ical 'e"artments identified #ithin the organisation! namelyD

- S'!+

- F$"$9+

- O5+"'!$

- E*+9'!$9

- E$8$++$8

S"75*$8 T+9$%+

Judgement -am"ling #ould be used for the "ur"ose of choosing the sam"le for the "ur"ose

of administering Questionnaire The identified e@"ert #ould have a thorough kno#ledge

about all the res"ondents #ithin the Personnel 'e"artment of the organisation Thus hisher

e@"ertise #ould be incor"orated in locating! identifying and contacting the re?uired

res"ondents

Again Judgement sam"ling #ould be effectively used in identifying the typical non 6 +R

'e"artments #ithin the organisation and subse?uently for the location and identification of

suitable res"ondents for Questionnaire.

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DIAGNOSTIC MODEL

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C!75!'!$ !4 *"0! 4!9+ "$# *!9"'!$ !4 !8"$/"'!$

As the number of legal re?uirements has increased! it has become more im"ortant for an

organiation to analye the com"osition of #orkforce -uch analysis is done to determine

#hether the firmIs em"loyment "ractices are discriminatory The location of the organiation

and the relevant market #ill "lay a ma$or role in the com"osition of the #ork force

Therefore! government and union restrictions labor market conditions! the make u" of the #ork

force and the location of the organiation are e@ternal forces that affect each other None of these

forces are necessarily more im"ortant than any other force Each of them must be considered in

develo"ing a sound recruitment "lan that results in an effectively functioning organiation

"#$%AC#&"S &' #H$ %$C%#A" #H$ &%*A"+A#&"

The nature of the organiation and the goals of the manager are highlighted in the above

diagram! as is the nature of the task The techni?ues used and the sources of recruits vary #ith

the $ob As

afar as the

a""licants are

concerned!

their abilities and "ast #ork e@"erience affect ho# they go about seeking a $ob

5;

'esirable End Results

-ocially res"onsible = Com"etitive! high ?uality Com"etitive!high

Ethical "ractices "roducts ?uality services

HUMAN RESOURCE PROCESSES

Protecting andEvaluating

• -afety!

health =#ellness

• Evaluation

Ac?uiring+uman

Resources

• +R

"lanning

• Job Analysis

= design

• Recruitment

= -election

'evelo"ing+uman

Resources

• Orientation

= Training

• 'evelo"me

nt

• Career

Planning

Re#arding+uman

resources

• Performanc

e Evaluation

• Com"ensati

on

• (enefits =

-ervices

I$'+$"* E$:!$7+$'"*

I$4*%+$9+

• -trategy• &oals

• Organiational Culture

• Nature Of the task

• 4ork grou"

• .eader:s style =

e@"erience

E'+$"* E$:!$7+$'"*

I$4*%+$9+

• &ovtRegulations =.a#s

• The 0nion

• Economic ConditionsD

domestic =/nternational

• Com"osition Of labor


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T+ !8"$/"'!$ :+= !4 +9%'$8

-everal as"ects affect recruiting from organiationIs vie# "oint D the recruiting re?uirements set!

organiation "olicies and "rocedures! and the organiational image

R+9%'$8 +%+7+$'

The recruiting "rocess necessarily begins #ith a detailed $ob descri"tion and $ob s"ecification

4ithout these! it is im"ossible for recruiters to determine ho# #ell any "articular a""licantIs fits

the $ob /t should be made clear to the recruiter #hich re?uirements are absolutely essential and

#hich ones are merely desirable This can hel" the organiation avoid having unrealistic

e@"ectations of "otential em"loyees D an em"loyer might e@"ect a""licants #ho stand first in

their class! are "resident of all e@tra curricular activities! have #orked their #ay through school!

have 18 years of e@"erience and are #illing to #ork for long hours

Contrasted #ith this unrealistic a""roach! the effective organiation e@amines the s"ecifications

that are absolutely necessary for the $ob Then it uses these as its beginning e@"ectations for

recruits

,inding a""licants #ho "ossess the needed skills for a $ob is the KscienceK of recruiting (eyond

determining #hether an a""licant has the skills needed for the $ob! recruitment in the coming

years #ill also have to determine #hether the a""licant #ill function #ell #ithin the culture and

value system of the organiation /ntervie# "erformances in terms of inter"ersonal styles is one

of the most critical factors used by recruiters to evaluate "ros"ective $ob candidates

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O8"$/"'!$ 5!*9+ "$# 5"9'9+

/n some organiationIs! +R% "olicies and "ractices affect recruiting and #ho is recruited One

of the most significant of these is "romotion from #ithin This "olicy means that organiationIs

recruit from outside the organiation only at the initial hiring level They feel this is fair to

"resent loyal em"loyees and assures them a secure future and a fair chance of "romotion! and

most em"loyees favor this a""roach -ome em"loyers also feel this "ractice hel"s "rotect trade

secrets

O8"$/"'!$"* 7"8+

The image of the em"loyer generally held by the "ublic can also affect the recruitment all else

being e?ual it is easier for the organiation #ith a "ositive cor"orate image to attract and retain

em"loyees than an organiation #ith a negative image

The good or bad! #ell6kno#n or unkno#n images of these organiationIs #ill affect ho# they are

vie#ed by the $ob recruits The organiations image is com"le@! but it is "robably based on #hat

the organiation does and #hether it is "erceived as "roviding a good "lace of #ork The larger

the organiation! the more likely it is to have a #ell6develo"ed image A firm that "roduces a

"roduct or service the "otential em"loyee kno#s about or uses is also more likely to have an

image for the a""licant

The organiationIs image is also affected by its industry These images change Job a""licants

can seldom have intervie#s #ith all the organiations that have $ob o"enings of interest to them

(ecause there are time and energy limits to the $ob search! they do some "reliminary screening

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One of these screens is the image the a""licants have of the organiation! #hich can attract or

re"el them

/n sum! the ideal $ob s"ecifications "referred by an organiation may have to be ad$usted to meet

the realities of the labor market! government or union restrictions! the limitations of its "olicies

and "ractices and its image /f an ade?uate number of ?uality "eo"le a""ly! the organiation may

have to ad$ust the $ob to fit the best a""licant or increase its recruiting efforts

T+ 5!'+$'"* +75*!6++ :+= !4 +9%'$8

The a""licants have abilities! attitudes and "references based on "ast #ork e@"eriences and

influences by "arents! teachers and others These factors affect recruits in t#o #aysD ho# they

set their $ob "references and ho# they go about seeking a $ob

P+4++$9+ !4 +9%' 4! !8"$/"'!$ "$# !0

Recruits have a set of "references for a $ob The recruit also faces the limitation of labor market!

government and union restrictions and the limits og organiational "olicies and "ractices The

recruit must antici"ate the com"romises $ust as the organiation does

4hat factors affect the organiation decisionM A more educated set kno#s the labor market

better! have higher e@"ectations of #ork and find organiationIs that "ay more and "rovide and

more stable em"loyment

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!0 +"9 "$# 4$#$8 " !0 '+ +9%'

/t is not al#ays enough to be sim"ly in the right "lace at the right time The effective $ob

searcher creates o""ortunities in a systematic #ay Effective $ob search involves several ste"s

including self6assessment! information gathering and net#orking! targeting s"ecific $obs and

successful "resentation

The $ob search "rocess begins #ith self6assessment The "ur"ose of self6assessment is for $ob

searchers to recognie their career goals! their strengthIs and #eaknesses! interests values and

"referred life styles This information is later used in the search "rocess to hel" the a""licant

assess #hether there is a fit #ith a "articular $ob offer The assessment is similar to #hat

organiational recruiters #ill be doing! only from the "ers"ective of the a""licant

/nformation gathering and net#orking are methods for generating lists of "otential em"loyers

and $obs! information sources include ne#s"a"ers! trade "ublications! college recruitment offices

and organiational insiders

METHODS OF RECRUITING

%ost $ob o"enings are filled #ith "eo"le from #ithin the organiation and entry6level "ositions

are the most likely to be filled by e@ternal sources %ethods for internal recruiting include $ob

"osting! skill inventories! $ob bidding and referrals %ethods of e@ternal recruiting include

school and college recruiting! advertising! and using em"loyment agencies and e@ecutive

research firms and the internet

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I$'+$"* :+% +'+$"* +9%'$8 7+'!#

/nternal recruiting methods include "osting "osition o"enings! distributing memos #ithin the

organiation and searching organiational databases for a match bet#een the skills re?uired to

"erform the $ob and the skills held by the current em"loyees This method of recruiting looks to

internal sources to fill "ositions and encourages "romotions from #ithin E@ternal recruiting

methods include advertising "osition 4hether managers choose internal or e@ternal6recruiting

methods de"ends on the degree to #hich organiationIs strategy encourages "romotions and

transfers from #ithin the organiation Recruiting from #ithin can lead to $ob satisfaction and

motivation if em"loyees see ne# career o""ortunities available /n addition filling "ositions #ith

e@isting em"loyees ensures to large e@tHent that these em"loyees are socialied as to the

organiationIs culture and "ersonality +o#ever "roblems can arise if the internal "romotion

system is not vie#ed as fair

The best #ay to avoid negative backlash #hen hiring or "romoting from #ithin is to install fair

"ractices and "rocedures /f ste"s are taken to ensure a fair internal "romotional "rocess! most

"eo"le #ill acce"t their loss and remain "roductive and useful organiational citien E@ternal

recruiting method hel"s bring ne# ideas and a""roaches to the organiation

I$'+$"* +9%'$8 7+'!#

!0 5!'!$$8

%any "osition can be filled as a result of "osting the $ob o"ening on the bulletin boards!

announcing the o"ening in a com"any ne#sletter or "osting announcement on the com"anies

intranet A $ob "osting "rocedure enables em"loyees to strive for a better "osition #ithin the

com"any Notices of im"ortant o"enings should include all6im"ortant information about the $ob

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-ome firms have turned to com"uters to make their $ob "osting more fruitful All em"loyees

#ho #ish to "artici"ate com"lete ?uestionnaires about themselves! #hich include items

concerning relocation #illingness and "references as #ell as training and educational

backgrounds A fe# skills are selected out of the total that best re"resent their functional skills

4hen a "osition needs to be filled the re?uirements are matched and candidates selected

Although "ositing $obs can be an efficient method of recruiting! number of "roblems have been

associated E@am"le it can lead to "ersonal bias and stiff com"etition

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S


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$,#$%"A- %$C%#"* $#H&

S9!!* "$# 9!**+8+ +9%'$8

Recruiting at high school or vocational schools is often a strategic a""roach ado"ted by

organiations #ith "osition o"enings at the entry level or internal training "rograms Recruiting

at the college level serves as a ma$or source for ac?uiring managerial! "rofessional and technical

skills

The ga" that e@ists bet#een the skills that organiations #ill need over the ne@t several years

and those currently "ossessed by "otential em"loyees is gro#ing The number of $obs re?uiring

a college degree is on the increase 0nfortunately for the organiation it is a very time

consuming and e@"ensive e@ercise (ut "ressures from the e@ternal environment #ill continue to

force organiations to be highly visible and active in this kind of recruiting

/n college recruiting the organiation sends an em"loyee usually called a recruiter! to a cam"us

intervie# candidates and describes the organiation to them Coinciding #ith the visit! brochures

and other literature about the organiation are often distributed The organiation also runs ads

to attract the candidates

/n the ty"ical "rocedure! those seeking em"loyment register at the college "lacement service

This "lacement service is a labor market e@change "roviding o""ortunities for students and

em"loyers to meet and discuss "otential hiring Preliminary intervie# #ith em"loyers is done

-tudents are given detailed influence about the $ob and the "rofile -alaries are negotiated The

e@"enses are borne by the organiation %any of the changes are designed to reduce overall

recruiting costs #hile maintaining a strong a""licantIs flo# into the organiation The trend

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seems to be for an organiation to develo" a stronger! ongoing relationshi" #ith a relatively

select number of schools

A#:+'$8

Advertising $ob o"enings in ne#s"a"ers! magaines! ne#sletters and other media sources is a

relatively ine@"ensive recruiting mechanism Advertising is useful for filling o"en "osition

?uickly Advertising usually does not target a s"ecific audience -"ecified defined advertisements

#ill attract ?ualified a""licants! dissuade un?ualified ones from a""lying and make the

recruitment "rocess more efficient

P:"'+ +75*!67+$' "8+$9+

Private em"loyment agencies vary considerably in sie and effectiveness as good sources of

em"loyee and must be chosen carefully by em"loyers and $ob seeking alike A "reliminary

intervie# is conducted for the a""licants 0nfortunately some agencies are more concerned #ith

"lacing em"loyees ?uickly than in effecting a good match bet#een the em"loyee and the

organiation The discre"ancy can be reduced if the +R managers give detailed and s"ecific

re?uirements

T+ $'+$+' "$# '+

One of the fastest gro#ing recruitment methods is the internet and the 444 Com"anies #ho

do use the lnternet as a recruiting source a""ear to be ha""y #ith the "rocess and the results /t

allo#s access to broader set of "eo"le and hence broader set of e@"ertise and skills /t is also

faster and convenient +o#ever it may not be accessible to all

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UTILIZING RECRUITING RESOURCES

Com"anies fre?uently use a variety of internal and e@ternal recruiting strategies to locate and

hire their #orkers Although one techni?ue may #ork #ell for some organiations! the same

techni?ue may "rove ineffective for others -ome techni?ue may mesh #ell #ith the

organiationIs com"etitive strategy! but others do not

(y integrating both internal and e@ternal recruiting techni?ues! a com"any can develo" an

overall recruiting "lan that is s"ecifically tailored to su""ort its overall strategy and result in

selection of highly ?ualified a""licants

E@actly ho# many recruits are needed can be determined from "ast recruitment efforts

-"ecifically a yield ratio can be develo"ed for each "osition to be filled A yield ratio is the

number of candidates #ho "ass a "articular recruitment hurdle divided by the number #ho

attem"ted the hurdle

/t is im"ortant to kee" in mind that the "lan should su""ort the com"anies overall strategic

a""roach

R+- R+9%'7+$' '"'+8+

Re6Recruitment strategy is a series of ste"s a com"any can take and retain key em"loyees Re6

Recruitment strategies are a good idea! but essential in turbulent times such as after do#nsiing

or a ma$or organiational restructuring 2ey em"loyees are defined as em"loyees #hose loss

#ould have a most detrimental effect on the organiation

Once the key em"loyers have been located! the ne@t ste" is to determine #hat can be done to

motivate them to remain #ith the organiation A fle@ible #ork arrangement #ill mean

something different to every em"loyee! so it is im"ortant to dearly delineate #hat key em"loyees

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#ant and need #ith res"ect to fle@ibility ,le@ibility can also be offered by introducing

com"ressed #ork #eeks! fle@ible starting times and com" time #here #orkers can leave #ork

for an hour or t#o to deal #ith family matters An increase in the com"ensation can also hel"

retain a key em"loyee Retention bonuses have also been used successfully as a means of getting

technical staffers 4ithout a salary ad$ustment key em"loyees may be stolen a#ay by

com"etitors!

C"++ #+:+*!57+$' !55!'%$'+

College graduates entering #ork force for the first time are clear about their e@"ectations and are

less #illing to ada"t their values and #ork styles to accommodate to their em"loyers

The follo#ing factors entice first careerist to stay #ith the $ob and the com"anyD

1 /mmediate involvement in the essential #ork of the firm

7 The ability to a""ly ne#ly learned kno#ledge and skills

The o""ortunity to understand the big "icture of the firm

F Ra"id career develo"ment

5 Ra"id salary advancement

H The o""ortunity to learn ne# skills

Com"anies are res"onding to these needs by offering a variety of "rograms for ne# em"loyees

One factor that should be considered "rior to selection is the KfitK bet#een the individual career

ob$ectives and the career "ath that can be realistically offered by the firm Career "lateauing

#hich refers to the "oint in a career #here future hierarchical movement is unlikely! has become

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a real "roblem in organiationIs today 'o#nsiing and restructuring has severely restricted the

"otential for vertical movement in many managerial career "aths

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ALTERNATI>ES TO RECRUITMENT

Another strategic business decision can be made is not to recruit /nstead they can rely on

alternative staffing o"tions

Common alternati!e staffin/ options

T"#'!$"* '+75!"6 +*5

A "otential em"loyee is recruited! tested! screened and em"loyed by a tem"orary staffing

agency They assign ?ualified individuals to #ork at a clients site! generally to su""ort or

su""lement the current #ork force

L!$8 '+7 '+75!"6 "8$7+$'

/t is becoming increasing "o"ular for an organiation to staff "art of its #ork force #ith

tem"orary #orkers on an ongoing basis These individuals are not considered short6term

re"lacements! but more a "art of the regular #ork force

P"' '7+ +75*!6++

4orkers #ho #ork less than F8 hours a #eek are considered "art time em"loyees They

can be organiationIs "ay roll or assigned via a tem"orary agency

E75*!6++ *+"$8

A Com"any #ill transfer some of its em"loyees to a leasing firm The leasing firm then

leases back the #orkers to "erform the same $ob they did for the Client Com"any +o#ever

the leasing firm is no# res"onsible for cost and #ork associated #ith the ty"ical +R

functions such as Payroll! benefits and record kee"ing

I$#+5+$#+$' 9!$'"9'!

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/nde"endent contractors are self6em"loyed individuals #ho market a s"ecific skill they

"osses to a variety of com"anies A Com"any #ill hire them for a s"ecific "ro$ect or

contract Payment is usually based on the time and effort the individuals "ut forth on the

"ro$ect and e@"enses are fre?uently reimbursed

O%'!%9$8 +:9+

An inde"endent com"any #ith e@"ertise area #ill contract #ith a firm to take full

res"onsibility for that s"ecific function in the organiation

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E>ALUATING THE RECRUITING METHODS

&iven the im"ortance of recruiting to the organiation the method used in recruiting should be

evaluated "eriodically One of the most im"ortant reasons to evaluate recruiting method is to

determine the cost versus benefits of various methods 4hen recruiting method do not attract

enough a""licants many organiation:s res"ond by raising the salaries Although some $ob

a""licants may be enticed by money! this may not be a cost6effective method of recruiting

,urther em"loyees #ithin the organiation may "erceive ine?uity if ne# em"loyees are brought

in at a similar or even higher salary

Recruiting costs include factors such as the cost of advertising! the salaries and travel e@"enses

of recruiters! travel e@"enses of "otential $ob a""licants and recruiting agencies These costs

must be #eighed against factors such as the "otion of acce"tance offers At a minimum!

organiations should com"are the length of time a""licants from each recruiting source stay #ith

the organiation #ith the cost of hiring from a "articular source The effectiveness of recruiting

method varies among organiations and even $obs #ithin the same organiation

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THE SELECTION PROCESS

S+*+9'!$ is the "rocess of choosing individuals #ho have the ?ualifications to "erform a

"articular $ob #ell Organiation differs as to the com"le@ity of their selection systems -ome

organiationIs make a strategic decision to fill "ositions ?uickly and ine@"ensively by scanning

a""lication forms and hiring individuals based on this information alone Other organiationIs

ho#ever makes a strategic decision to choose the best "erson "ossible by having an elaborate

and sometimes costly selection system These systems may re?uire "otential em"loyees to fill

out a""lication forms and "rovide information for a background check! take a number of $ob

related tests! and "erform #ell through a series of intervie#s %ost organiationIs have more

than one selection "rocess

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that have been found to "redict successful $ob "erformance A""licants receive "oints according

to the information they re"ort on the form and can then be ranked based on their total "oints

Although #eighted a""licants blanks have been found to be "redictive of future "erformance! the

time and cost of develo"ing an effective are often "rohibitive

Resumes are often instead of a""lication blanks Job a""licants develo" their o#n resumes!

#hich should include essentially standard information

T;PES OF SELECTION TESTS

A number of selection tests have been develo"ed to aid the human resources manager in hiring

em"loyees The follo#ing section covers mental ability test! #ork sam"le tests! trainability tests!

"ersonality and interest inventories and honesty tests as selection devices

M+$'"* "0*'6 '+'

Pa"er and "encil tests have been develo"ed by "sychologists and are used by organiationIs to

measure mental ability and a"titude Ability and a"titude tests e@amine a variety of tests such as

general intelligence! an understanding of s"atial relationshi"s! numerical skills! reasoning and

com"rehension

!< "75*+

Also called "erformance tests! #ork sam"le tests measure the ability to do something rather than

the ability to kno# something These tests may measure motor skills or verbal skills 4ork

sam"le tests should test the im"ortant as"ects of the $ob -ince $ob a""licants are actually

"erforming a small "ortion of the $ob! it is difficult to KfakeK ones ability on these tests

One of the most effective #ays to design #ork sam"le tests is by using the results of a $ob

analysis! because the results of a $ob analysis indicate #hich tasks are most critical and #hich are

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re?uired for successful com"etition of the task /t is easy to determine #hich activities need to

be re"resented on the tests

T"$"0*'6 '+'

,or $obs in #hich training is necessary due to

1 The skills level of the $ob a""licants

7 Changing nature of the $ob! trainability tests are useful

Essentially the goal is to determine the trainability of the candidate /n the first ste" of the

"rocess! the trainer demonstrates ho# to "erform a "articular task Then the $ob a""licants are

asked to "erform the task #hile the trainer hel"s to coach him or her through the "rocess several

t;mes ,inally the candidate monitors the "erformance! recording any errors! to determine the

overall trainability of the $ob a""licant

(ut #ork sam"le tests and trainability test have sho#n to have high to moderate success

"redicting $ob "erformance

P+!$"*'6 "$# 8+$+"* $'++' $:+$'!+

Personality and general interest inventories are tests that have no KcorrectK or KincorrectK

ans#ers /nterest tests are used to measure an individualIs #ork and career orientations

Personality tests focus on identifying traits or ty"ical behaviors of individuals and are used to

measure a variety of traits including aggression! self6esteem and ty"e A behavior Although

"ersonality and general interest inventories are tests that have no KcorrectK or KincorrectK

ans#ers /nterest tests are used to measure an individualIs #ork and career orientations

Personality tests focus on identifying traits or ty"ical behaviors of individuals and are used to

measure a variety of traits including aggression! self6esteem and ty"e A behavior Although

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"ersonality tests can be costly! they can hel" human resources managerIs determiner individual

characteristics o"t obtained from a resume! thus increasing the likelihood of finding a go KfitK

bet#een the $ob "osition and the em"loyee

A serious criticism of "ersonality inventories is their tendency to be invasive in that they seek to

Kuncover3 revealing data about a "ersonIs "syche Com"anies that use this ty"e of "re

em"loyment tests must therefore ensure that the information they seek and the #ay they use this

information are relevant to the $ob in order to "revent la#suits by re$ected a""licants

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THE INTER>IE

%ost organiationIs! regardless of sie! use intervie#ing as a selection method /nterestingly!

intervie#s have been criticied for being unreliable sources of information due to "erce"tual and

$udgment errors on the "art of the intervie#er E@am"le intervie#ers often form a first

im"ression of the $ob a""licant based on the influence obtained on the a""lication blank or the

first t#o minutes of the intervie#

Another ty"e of "erce"tual error is called the H"*! +44+9'. /n this case! one characteristic or

behavior of the $ob a""licant overrides all or most other characteristics

C!$'"' +44+9' have also been found to distort intervie#er $udgments about $ob a""licants

Contrast effects occur #hen the intervie#er evaluates a $ob a""licant by com"aring this "erson to

"revious $ob a""licants

Other "erce"tual errors can distort an intervie#ers evaluation include stereoty"ing! leniency!

strictness and central tendency errors

Establishing a system for conducting an intervie# can im"rove the reliability and validity of

intervie# assessments

T65+ !4 $'+:+=

/ntervie#s can be classified into three general categoriesD structured! semi structured and

unstructured

S'%9'%+#

4hen conducting a structured intervie#! the intervie#er asks ?uestions from a "re"ared list

and does not deviate from it e@ce"t for some follo# u" ?uestions 'uring the intervie#!

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the intervie#er records his or her thoughts and reactions on a standard organiational form

4hen different intervie#er reach the same or similar conclusion about a given candidate!

the inter"retation reliability is high 0nfortunately this ty"e of intervie# is very restricted

T#o most common ty"es of structured intervie#s are the behavioral descri"tion intervie#

and the situational intervie#

T+ 0+":!"* #+95'!$ $'+:+= allo#s you to gather and evaluate information

about #hat candidates have done in the "ast to "redict ho# they #ill act in the future A

thorough $ob analysis of the $ob is done for #hich the intervie# is being develo"ed The

s"ecific 2-A8s are uncovered! re?uired by the $ob as #ell as a""ro"riate and im"ortant

behaviors "erformed by the $ob incumbents Ne@t ?uestions #ill have to be designed

#hich elicit the behaviors

The second ty"e of structured intervie# is the '%"'!$"* $'+:+= /n this $ob e@"erts

develo" ?uestions that focus on situations that might arise in the actual $ob /t is conducted

#ith a "anel of intervie#ers! each of them inde"endently rate the a""licants This ty"e of

intervie# is kinder to the a""licant because a "ast e@am"le does not have to be "rovided

S+7 '%9'%+#

+ere only the ma$or ?uestions are "re"ared in advance and are recorded on a standardied

form This ty"e of intervie# involves some "lanning on the "art of the intervie#er but

allo#s for some fle@ibility regarding e@actly #hat and ho# ?uestions are asked Although

the inter rater reliability is not so high as #ith structured intervie#! the information

obtained may be richer and "ossibly more relevant

U$'%9'%+# $'+:+=

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The unstructured intervie# involves little "lanning or no "lanning on the "art of the

intervie#er 'ue to lack of "lanning! the intervie#s tend to vary greatly bet#een

intervie#ers and also bet#een intervie#ees 0nstructured intervie#s have lo# reliability

and seldom yield valid and useful information

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MANAGERIAL SELECTION DE>ICES

-election devices for managers can differ from non6managerial em"loyee selection Assessment

centers #ere develo"ed to ta" these numerous managerial skills by collecting #ork sam"le

information an assessment center is not a "lace but a "rocess /n this "rocess trained

"rofessional evaluators! called assessors! observe and record and evaluate ho# a candidate

"erforms in simulated $ob situations

Although the validity of assessment center tends to be high! some "roblems recently have been

identified #ith this selection device

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RECRUITMENT AND SELECTION - O>ER>IE

Till recently the rules of recruitment #ere very retrogressive Com"anies sim"ly hired fresh

graduates or %(As 6 seeking out the to" rankers 6 started them off as trainees! "aternally

oversa# their vertical "rogress and re"eated the "rocess every year On the rare occasions that

they had to recruit at higher levels! they advertised 6 the discreetness of the address matching the

stature of the com"any as a coveted em"loyer 6 or used services of a head hunter and chose on

the basis of a track record Job ho""ers #ere never favored and com"anies hired everyone for

lifetime

No# a recruitment revolution is beginning And the "eo"le #hom com"any #ill soon com"ete

for most fiercely #ill be those #ho have earned their s"urs in different functions! com"anies!

industries6 and not one com"any! one function s"ecialist +aving succeeded in hiring them!

CE8s must not e@"ect all of them to stay -ome #ill leave the com"any #hen the com"any

changes its o"erational focus 6 as it must to stay ahead of change and needs different kind of

"eo"le Others #ill o"t for entre"reneurial careers in favor of 6!em"loyment >et others #ill go

back to school to restrictions 6educate themselves and "roceed to the ne@t "hase of their "ortfolio

careersI

Abandoning their old "olicies of hiring only at the bottom! therefore com"anies #ill have to

induct ne# talent at every level! including those #here internal "romotions #ere once develo"ed

rigueur Even the search for CE8s #ill intensify as ne# com"etitors look for team ca"tains and

e@isting com"anies feel the need for ne# ?ualities 6 not available in house 6 in their CE8s lnfact

the search for the right "eo"le at every level #ill "ick u" "ace

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And #hile com"anies #ill have to develo" innovative techni?ues to beat the com"etition at

recruitment hots"ots like cam"uses! they must also look outside their conventional hunting

grounds ,or that is #here "eo"le #ith unorthodo@ 4inning ideas #ill come from CE8s looking

for breakthrough marketers #ill have to recruit them from other industries since everyone

already in the sector #ill only offer tired ideas +unting for kno#ledge #orkers! com"any va

have to raid research laboratories! non6governmental organiationIs! college staff6rooms and even

s"orts fields And the ?uest for managers #ith the ability to lead mega "ro$ects #ill have to be

global and not limited to the country

At the organiational level! com"anies must tailor their man"o#er recruitment "lan to cor"orate

ob$ectives! dra#ing u" the "rofiles of suitable fires accordingly Com"any focusing on ne#

business develo"ment #ill have to seek entre"reneurial abilitiesB com"anies "lanning to

#ithdra# from diversificationIs must look for "ragmatistsB com"anies chasing gro#th through

alliances should hire "eo"le comfortable in different cultural backgrounds Above all com"anies

must hire for the future! antici"ating $obs that may not be in e@istence yet

-o recruitment of managers must focus not on functional e@"ertise! but for attitudes and

a""roaches that fit the cor"orate goals and culture Among the ?ualities that com"anies #ill have

to screen! therefore #ill be interests! dis"osition! attainments! general intelligence! s"ecial

a"titudes are even "hysical makeu" ,or every $ob that a com"any seeks to fill therefore the

must "re"are "sychological "rofiles of the ideal candidate And to test candidates for a fit #ith

that "rofile! com"anies #ill increasingly have to use "sychogra"hics testing techni?ues such as

Thomas Profiling %yers6 (dgg Ty"e irdicator! or the "articular "reference /nventory that dra#

u" the com"lete "sychological and behavioral characteristics of an individual

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The test for "ersonality traits #ill involve using unconventional tools like gra"hology Also on test #ill be candidates result orientation analytical

ability! initiative! communication skills and innovativeness! giving em"loyers as much information as "ossible #ith #hich they decide #hether an

individual #ill be a""ro"riate for the $ob To validate the conclusions of the tests! line managers and human resources "ersonnel #ho conduct

intervie#s #ill have to be trained intervie#ing skills And com"anies #ill have to use multi6session de"th intervie#s ad of one off interactions to

e@"lore different facets of a candidate under different circumstances and varying degrees of "ressure

4hat are the elements #hich com"anies must use to entice to" talent:M Com"ensation #ill be

crucial only till it isnIt absurdly belo# The com"etitor offer /nstead recruiting teams #ill have

to market their com"any as a "lace #here em"loyees have fun #orking! "articularly to "eo"le

that the com"any is trying to hire from old6fashioned organiations

A cor"orate culture that cares for "eo"le and gives them room to gro# #ill be a com"anyIs

strongest magnet for attracting good "eo"le CEOs #ill have to ensure that their line managers

and human resources de"artment design unconventional $obs and daring res"onsibilities to create

offers that their targets cannot refuse And if "ursuing the right "erson and convincing him to

agree takes time! the com"anies should be #illing for it /n the kno#ledge economy the

cor"orate ?uest for intellectual ca"ital #ill be a continuous "rocess

Recruitment costs

.o# cost "er hire may affect the ?uality of recruiting Com"anies may think that the cost of hire

may be high but if the com"any is able to attract the best talent! the com"any is successful

uality of hire is a useful metric to assess the strength of the recruiting "rocess

-ome com"anies evaluate candidates through multi"le intervie#ers! assessment tests! reference

and credit checks! background and educational verifications Even #ith all of these techni?ues

com"anies continue to realie the same Kbell curveK distribution of em"loyee "erformance

Others are smarter! they a""ly the techni?ue of "osition! "rofiling to identify to" "erformers and

to change the bell curve

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Com"anies can design a brief "erformance evaluation "rocess and use it on ne# entrants! #ithin

si@ and 1; months of $oining The ?uality of "erformance "uts the recruiting "rocess to test

4hile filling internal "ositions! the recruiting manager res"onds to his internal customer 6 the

line manager %easure of customer satisfaction "roves to be a "recious techni?ue for fine

tuning the system Recruiting managers use "ost hire surveys and evaluations for this "ur"ose

/t is im"ortant for com"anies to document "re hire re?uirements and conduct ob$ective "ost hire

evaluations %anagers also seek feedback from the candidates themselves -uch data could give

insights into further streamlining the recruiting "rocess

How long before they are in?

Recruitment cycle time is measured by the time taken to fill a vacancy Another metric is

staffing time ratio 6 the ratio of actual time in days to start to "re6contracted time to start The

contracted time to start is agreed u"on bet#een the hiring manager and the recruiter and it can be

changed during the recruiting "rocess #ith mutual consent

Internal hiring a more viable option

Cor"orate recruiters have a dangerous bias to#ards hiring from an outside source /ndustry

giants like +.. and TataIs believe in homegro#n talent %ore often than not heavy recruitment

ha""ens at entry level and incumbents move along a structured career "ath as they gro# #ith the

com"any The "ool of talent kee"s #idening and gains richness #ith time As a result it is never

a daunting task to fill roles created out of une@"ected situations

On the other hand fast gro#ing! innovative relatively ne#er firms tend to focus more on e@ternal

hires! a strategy guided "artly by default and "artly by design (y and large all com"anies end

u" using a mi@ed strategy

;5


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-ome com"anies believe that e@ternal hiring give facts about the com"etitors E@ternal hiring

brings in ne# ideas! "ers"ectives! com"etencies and readymade skills that do a#ay #ith the need

for much investment on training On the other hand internal recruitment #orks fine! sometimes

better The culture of certain com"anies may be such so as to mould the e@isting em"loyees for

further vacancies -uch com"anies boast of lo# em"loyee turnover rate /nternal recruitment

may have its benefits but it also demands a great deal from the +R of the com"any

;H


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I$'+$"* $8 9%' !%' !$ #!=$/$8

(uilding an internal talent "ool #orks as an innovative ans#er to overstaffing! es"ecially if the

com"any is #ary of do#nsiing as the o"tion

I$'+$"* $8 7!+ '"$ %' 4**$8 " *!'

Recruiting by itself serves a single "ur"ose filling a slot (ut #hen a com"any favors internal

over e@ternal sources! it also addresses the critical issue of succession "lanning /t does not cater

to e@ecutive re"lacement alone! it underlines a commitment to leadershi" develo"ment A

greater "ool of talent can be harnessed at a short notice #ithout the hassles of an elaborate search

e@ternally and #ithout investing in further hiring and training costs

The above kind of a "rocess involves "sychometric "rofilers! offsite interactive #orksho"s! multi

rater feedback "rocesses! management games and o"tions as sim"le as observation and "ast

"erformance records

R+9%'$8 ... $ 5'+ !4 !##.

Recruitment business has dro""ed by almost F8< lately and the situation may remain lo# "rofile

at least for the coming months There is general reduction in intake! recruiters are shying a#ay

from taking fresher or even "eo"le from cross6functional industries so that there is less

investment in training OrganiationIs are trying to reallocate $obs! add "ortfolios to e@isting

"ositions even considering outsourcing Jobs are diminishing! merging or even disa""earing

altogether 4hile there are definite signs of conventional recruitment activity having slo#ed

do#n! there are strong signals that organiationIs are successfully e@"erimenting #ith more

innovative techni?ues of talent scouting and sourcing of re?uisite skills need to be re"lenished

;9


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Innovative sourcing .... Its happening

98< of recruitment in /ndia ha""ens through the direct advertising route 0se of recruitment

consultants is the second most favorite techni?ue +ead hunting is very much in demand along

#ith in de"th intervie#ing The /ndian recruiter may have access to the best of /ndian

recruitment consultancy firms as #ell as the cream of international search firms! all fiercely

com"eting on grounds of ?uality and value added service (ut he has started looking for

different sourcing o"tions Em"loyee referrals! for one is gaining "o"ularity

Employee referrals

+',C (AN2 ./%/TE' on "ersonal contacts is still a strong source of recruitment #orld#ide

and is being ca"italied in more so"histicated #ays by many organiationIs +e#lett Packard in

the com"uting sector is re"orted to have ado"ted Kcom"any6o"ting schemesK #hereby em"loyees

are "romoted to recruitment "ositions and re#arded for their ability to become good recruiters

Recruiters have acce"ted the fact that recruitment advertising is an intricate "rocess! involving a

"sychic attitude change /ts not about a sim"le $ob announcement in a ne#s"a"er /t is about

attracting ?uality "eo"le #ho are not des"erately looking for a $ob An international restaurant

chain realie that the candidates need to have a feel of the com"any before they decide to a""ly

for a $ob The com"any "lanned a t#o day event for "otential recruits to #alk in and meet

managers "ersonally! see videos and slide sho#s about the com"any The o"en days also marked

a change in direction as far as the recruiting "rocess #as concerned /nstead of screening for

basic skills and "ast e@"erience! the com"any concentrates on recruiting "eo"le for their

"ersonality! so that "eo"le could fit in

A $+= +*+9'!$ "#

;;


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All /ndia %anagement Association )A/%A* has taken a useful initiative by introducing an all

/ndia level test for the em"loyability of "ros"ective management em"loyees )TE%* The test is

administered to candidates #ho are in the second 1 final year of %(A "rograms or an e?uivalent

course or have less than 7 years of "ost ?ualification #ork e@"erience Candidates are tested on

"arameters like general management skills! thinking skills! a#areness of current business and

economic environment and on their functional areas like marketing! finance! +R'! o"erations

Etc

TE% has been endorsed by H7 com"anies like +..! Ceat .T'! /TC .td! .abor=T! &EC

Alsthom .td! 'C% -hriram etc the scores achieved by the candidates in this test along #ith

other details are sent to cor"orates to be short listed for I/ntervie#s and subse?uent "lacement

Cor"orate houses get access to scientifically evaluated candidates from allover the country

#ithout having to visit each and every cam"us! thus saving time and effort On the other hand!

the candidates get access to a host of com"anies #ithout individually a""lying to them

;


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A %'"0*+ +9%'7+$' '"'+86

An effective recruitment system like any other +R sub6system needs to be sync #ith the business

strategy and ob$ectives of the organiation Organiations ado"t s"ecific recruiting strategies

tailored to their business needs These business needs may change de"ending on the stage of

gro#th of the organiation

8


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Recruitment strategy varied with stage of growth of the

organization

B%$+ '%"'!$ C""9'+'9 !4 0%$+

'%"'!$

C""9'+'9 !4

9"$##"'+

-tarting a ne# business ,inancial risk

No systems"rocedures

Organiation

O"erational e@"erience base is

lacking

.imited relation #ith

-u""liers! customers

Lision

/n6de"th kno#ledge

-taffing

Organiing and team

(uilding

Turnaround Need for ra"id decision

making

4eak com"etitive "osition

.o# esteemmorale

(ureaucratic organiation

structure

/ncom"etentinefficient

"ersonnel

-trong leader

-trong analytical skills

(usiness strategist

&ood crisis management

-kills

Credibility

Ne# ac?uisitions Ne# management "roving

themselves

E@isting management

defensive about change

Need to integrate ac?uired

Analytical ability

Relationshi" building

skills

Credibility

1


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com"any #ith "arent

.i?uidation of business 4eak com"etitive "ositions

.o# returns

.o# morale! deficiency of

skills

Need to cut losses and make

decisions

'etermination

+ighly analytical in case

of costbenefits

4illing to do dirty $obs

4ants to be res"ected not

$ust liked

Rede"loyment .o# short termlong term risks

Resistance to change

%ismatch of organiation

resources and need

.ack of strategic "lan for ?uite

some time

&ood manager of change

+ighly "ersuasive

-u""ortive

Risk taker

"' "+ '+


93/119

ANAL;SIS


94/119

F


95/119

5


96/119

H


97/119

,/N'/N&

9


98/119

;


99/119

CONC.0-/ON

1 / have given various o"tions for $oining of the candidates in the organiation in the

?uestionnaire Also / got more o"tions from the em"loyees #hile interacting #ith them %ost

of the em"loyees)7;


100/119

Good Salary

Job Security

Promotion

Working Condition

Interesting Work

Management Loyalty

Tactful Disipline

ppreciation

!nderstanding

"eeling#in# on t$ings

%

&

'

'

&

%

'

%

(

%

)mployees satisfaction

*ating scale

188


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O'+ 4$#$8 !4 '+ %"*'"':+ +5!$+ +$'"*+# 4!7 '+ HR D+5"'7+$' (based on

Questionnaire)

The organisation de"loys both internal as #ell as e0ternal sources for the "rocess of

recruitment

The internal sources of recruitment mainly com"rise ofD

Promotions

Transfers .

The e0ternal sources of recruitment includeD

Em"loyment e@change

Advertisements

• The pipeline for recruitment #ith reference to the internal sources of recruitment is 1

month2 #herein in the case of the e0ternal sources2 it is 3 months.

• The detailed breaku" of the process of selection is as follo#sD

Em"loyment e@change Recei"t of a""lications -creening of a""lications

Trait tests 4ritten tests /ntervie# (panel of 4ud/es) ,inal selection .

• 5al6 ins7write ins are de"loyed by the organisation only on compassionate /rounds. This is

a""licable under certain s"ecial circumstances #herein! in the event of the death of an

em"loyee of the organisation! the laid $ob s"ecifications (in terms of KSAs) #ould be rela@ed

for recruiting a family successorsondaughter

• 8ac6/round in!esti/ations are not used as a means for the verification of data furnished by

the candidate in the application blan6.

181


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• 9hysical e0aminations are conducted on a very thorough basis for the selection of lower

le!el mana/ement. The organisation lays s"ecific ob specifications in terms of specialised

abilities! vi height! eyesight and #eight for "otential candidates! a""lying at this level E.8.

All selection for -ower le!el mana/ement employees2 within the 'ire

epartment7#echnical station2 requires potential candidates to possess specific

requirements2 in terms of physical dimensions.

• As an indicator of 4ob proficiencyD

The Application form is not considered effective! as it sim"ly furnishes the bio6

data"ersonal information of the a""licant

At the non6managerial level designations! involving routinised o"erations! traditional

paper;and;pencil tests constitute an effective device

nter!iews are considered as a moderately effecti!e device

• Other tests de"loyed as effective selection devices by the organisation areD

A"titude tests

Trait tests

Ty"ing tests

&eneral communication tests

-horthand tests

'riving tests

• These tests form highly effective indicators"redictors for 4ob proficiency.

187


103/119

S%77"6 !4 '+ +9!77+$#"'!$ 8:+$ 06 '+ N!$-HR #+5"'7+$' " +$'"*+# 4!7

'+ "$"*6

The recommendations given by the different 'e"artments constituting the sam"le for the

analysis! are in terms of additional sources of recruitment and selection devices that should be

de"loyedused by the organisation in addition to current "ractice (specific for these

epartments)

D+5"'7+

$'

R+9!77+$#"'!$ $ '+7 !4

!%9+ !4 +9%'7+$' '! 0+

#+5*!6+# $ "##'!$ '! 9%+$'

5"9'9+

R+9!77+$#"'!$ $ '+7 !4

+*+9'!$ #+:9+ '! 0+ #+5*!6+#

$ "##'!$ '! 9%+$' 5"9'9+

-tores • Em"loyee referrals

• Em"loyee Job "ools

4ork sam"les

Reference checks

,inance • Em"loyment e@change 4ork -am"les

Reference checks

O"erations • Em"loyee referrals

• Consultants

6

Electronics • Cam"us intervie#s (iddle -e!el

ana/ement)

4ork sam"les

Reference checks ( for

Comple0 mana/erial

operations)

Engineerin

g

• Cam"us intervie#s (#op2 middle

and -ower -e!el ana/ement)

4ork sam"les


Comple0 mana/erial

operations)

18


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%"*'"':+ +5!$+ (C&$"#S) 8:+$ 06 '+ :"!% D+5"'7+$' +5!$#+$' (as

entailed from Questionnaire)

D+5"'7+$' F!7 '+ 5!$' !4 :+= !4 '+

!8"$"'!$

F!7 '+ 5!$' !4 :+= !4 '+

D+5"'7+$'

-tores !illing employees based on their

performance should be recruited

instead of giving promotion on

seniority basis.

There is no cadre in the "tores

Department therefore the staff

wor#ing in "tores on rotation is

incorrect. The cadre should have

been there which gives moral

bac#up to e$isting hard wor#ing

employees for their future

prospects.

,inance Right candidate for the right %ob

should be selected irrespective of

constraints regarding caste creed

age etc.

&$perience should be given

preference for middle level

managerial positions over new

candidates.

O"erations There should be no reservations

for any category' the only criteria

should be competence.

In all promotions physical fitness

should be a specific criterion.

Engineering "election of candidates for various

posts in different cadres should be

strictly on the basis of

(ualification and the merit of the

Qualification of candidates along

with merit should be the

consideration for promotion of

candidates in the &ngineering

18F


105/119

candidates. )anagement should

lay emphasis on selecting

professionally (ualified

individuals.

Department. *ow Qualified

engineers should have promotions

only to a certain level.

Electronics +s per the merit of the candidate

selection should be done.

!e must segregate good and bad

wor#ers during

selection/promotion

185


106/119

R+9!77+$#"'!$ +$9*!+# '! HDFC B"$< L7'+#0"+# !$ '+ ++"9

The organisation should de"loy a se/mentation matri0 for the "ur"ose of talent sourcin/.

This is in line #ith the identification of the talents that the organisation needs to attract for

value creation At the same time! the matri0 also serves to screen any redundant talents that

the organisation does not re?uire #ithin its "ool of 2-As

HIGH

.arge number of best talent

is attracted from the target

"rofile of the a""licants

LO

.o# attraction of suitable

talent from target "rofile of

the a""licants

HIGH

Attracts talent in large

numbers

1. RETAIN

'evelo" strategies to attract

and retain talent at any cost

. CONTAIN

2ee" attracting talent

#ithin s"ecified cost limits

)not at any cost*

LO

Attracts mediocre talent

3. ATTAIN

,ocus and go afterattack to

attract talent from the target

"rofile

. ABSTAIN

'o not "ut much energy in

talent sourcing

18H


107/119

• The A/ should endeavor to find out as to #hat attracts the ri/ht employees to a""ly to the

organisation Thus! kno#ing #hat the "otential candidates #ho a""ly e@"ect from the

organisation and the reasons behind their desire to #ork for the organisation #ill hel" in


108/119

• S'%9'%+# $'+:+=D /ntervie#s conducted by the %ecruitment = Selection Committee of

A 2 #hile hiring for senior e0ecuti!e positions2 should cover the follo#ing basic as"ectsD

18;

C%*':"'+ +!%9+

D+'"*+# #+8$ & 5*"$

R+9%'7+$'

D+5*!6

T"$

I$'+8"'+ $'!

I$#%9'

I$'+8"'+ +*+9'!$

'+'$'+:+=

O44+


109/119

'ecision making

Problem solving

Achievement

'eadline consciousness

Crisis management

Customer orientation

.eadershi"

%otivation

Communication

/nter6"ersonal skills

Planning

Ad$ustment

• E7!'!$"* I$'+**8+$9+ The recruitment "olicy of A should incor"orate an evaluation of


110/119

S%88+'!$R+9!77+$#"'!$

S%77"6 !4 '+ +9!77+$#"'!$ 8:+$ 06 '+ N!$-HR #+5"'7+$' " +$'"*+# 4!7

'+ "$"*6

The recommendations given by the different 'e"artments constituting the sam"le for the

analysis! are in terms of additional sources of recruitment and selection devices that should be

de"loyedused by the organisation in addition to current "ractice (specific for these

epartments)

D+5"'7+

$'

R+9!77+$#"'!$ $ '+7 !4

!%9+ !4 +9%'7+$' '! 0+

#+5*!6+# $ "##'!$ '! 9%+$'

5"9'9+

R+9!77+$#"'!$ $ '+7 !4

+*+9'!$ #+:9+ '! 0+ #+5*!6+#

$ "##'!$ '! 9%+$' 5"9'9+

-tores • Em"loyee referrals

• Em"loyee Job "ools

4ork sam"les

Reference checks

,inance • Em"loyment e@change 4ork -am"les

Reference checks

O"erations • Em"loyee referrals

• Consultants

6

Electronics • Cam"us intervie#s (iddle -e!el

ana/ement)

4ork sam"les


Comple0 mana/erial

operations)

118


111/119

Engineerin

g

• Cam"us intervie#s (#op2 middle

and -ower -e!el ana/ement)

4ork sam"les


Comple0 mana/erial

operations)

%"*'"':+ +5!$+ (C&$"#S) 8:+$ 06 '+ :"!% D+5"'7+$' +5!$#+$' (as

entailed from Questionnaire)

D+5"'7+$' F!7 '+ 5!$' !4 :+= !4 '+

!8"$"'!$

F!7 '+ 5!$' !4 :+= !4 '+

D+5"'7+$'

-tores !illing employees based on their

performance should be recruited

instead of giving promotion on

seniority basis.

There is no cadre in the "tores

Department therefore the staff

wor#ing in "tores on rotation is

incorrect. The cadre should have

been there which gives moral

bac#up to e$isting hard wor#ing

employees for their future

prospects.

,inance Right candidate for the right %ob

should be selected irrespective of

constraints regarding caste creed

age etc.

&$perience should be given

preference for middle level

managerial positions over new

candidates.

O"erations There should be no reservations

for any category' the only criteria

In all promotions physical fitness

should be a specific criterion.

111


112/119

should be competence.

Engineering "election of candidates for various

posts in different cadres should be

strictly on the basis of

(ualification and the merit of the

candidates. )anagement should

lay emphasis on selecting

professionally (ualified

individuals.

Qualification of candidates along

with merit should be the

consideration for promotion of

candidates in the &ngineering

Department. *ow Qualified

engineers should have promotions

only to a certain level.

Electronics +s per the merit of the candidate

selection should be done.

!e must segregate good and bad

wor#ers during

selection/promotion

117


113/119

L7'"'!$

The organisation should de"loy a se/mentation matri0 for the "ur"ose of talent sourcin/.

This is in line #ith the identification of the talents that the organisation needs to attract for

value creation At the same time! the matri0 also serves to screen any redundant talents that

the organisation does not re?uire #ithin its "ool of 2-As

HIGH

.arge number of best talent

is attracted from the target

"rofile of the a""licants

LO

.o# attraction of suitable

talent from target "rofile of

the a""licants

HIGH

Attracts talent in large

numbers

. RETAIN

'evelo" strategies to attract

and retain talent at any cost

J. CONTAIN

2ee" attracting talent

#ithin s"ecified cost limits

)not at any cost*

LO

Attracts mediocre talent

@. ATTAIN

,ocus and go afterattack to

attract talent from the target

"rofile

. ABSTAIN

'o not "ut much energy in

talent sourcing

A$$+%+

11


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11F


115/119

115


116/119

BIBLIOGRAPH;

1. N+= P"5+

• Times of /ndia

• +industan Times

• Economic Times

• The Pioneer

• The +indu

• Catalyst

• ,inancial E@"ress

•Economic and Political 4eekly

. M"8"/$+

• /ndia Today

• Today:s traveller

• A=%

• (usiness Today

• (usiness 4orld

• (usiness 'igest

3. +0 '+

• ###hdfccom

• ###indiatimescom

. BOO2S

• Robbins P -te"hens! ,rganisational ehavior Prentice +all! 9th Edition! Cha"ter 1H! "ages

HH6HF1

• 2oont +arold = 4eihrich +ein! &ssentials of )anagement %c &ra# +ill! 5th Edition!

Cha"ter 11! "ages 71967F5

11H

http://www.indiatimes.com/http://www.indiatimes.com/


117/119

• 'eceno A 'avid = Robbins P -te"hen! ersonnel/HR )anagement Prentice +all! rd

Edition! Cha"ters H!9 = ;! "ages 119678

%A&A/NE

N"7+ !4 '+

M"8"/$+

>!*. N!. M!$' &

6+"

P%0*$8

"8+$96

N"7+ !4

'+ "'9*+

N"7+ !4

'+ ='+

P8. N!.

+uman Ca"ital F -e"I8 +R

/nformation

-ervices

IThe Trick

of not losing

themI

(rahma

&autam

17!1

+uman Ca"ital F -e"I8 +R

/nformation

-ervices

IThe %etrics

of +iringI

6 1F 6 19

+uman Ca"ital 9 'ecI8 +R

/nformation

-ervices

IReady get

set = goI

Jomon

%&

F8 6 FF

+uman Ca"ital F 7 JulyI788F +R

/nformation

-ervices

I-caling

heights

togetherI

(hatnagar

Jyotsna =

%enon

'ee"ti

F8 6 FH

119


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0E-T/ONNA/RE

NAME

COMPAN;

DESIGNATION

DEPARTMENT

1 4hat is the #orking "eriod of em"loyees in the com"anyM )Tick any one*

4ithin 1 year

(et#een 167 years

(et#een 76 years

(et#een 65 years

7 4hat are the reason of the candidate to $oin the com"anyM )Tick all that a""ly*

Re"utation of the com"any salary "ackage

4orking environment $ob "ros"ects

.ocation of the com"any career gro#th o""ortunity

+o# candidates are recruited in the com"anyM

4ritten e@am #ritten e@am and intervie#

4ritten e@am! &' and intervie# others

F 'id you get the same $ob s"ecification as offered during the intervie#M

>es No

5 /s there any role of 0nion in the organiationM

>es No

H /s there any changes occurred in the recruitment and selection "rocedures of the com"any in

the last five yearsM

>es No

9 /s there any effect of recruitment and selection "rocedure to#ards gratitude of em"loyeesM

>es No

; /s the organiation doing anything to reduce the em"loyee turnover rationM )Tick all that

a""ly*

11;


119/119

(etter salary "ackage

More #enets

Changing /m"roving #orking conditions

(etter "romotion Career 'evelo"ment O""ortunity

Are you satisfied #ith the salary and $ob security "rovided by the com"anyM

>es No

18 /s th

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