Recruitment and Selection Project - ATS Pvt Ltd

7/25/2019 Recruitment and Selection Project - ATS Pvt Ltd

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A PROJECT REPORT ON

ROLE OF RECRUITMENT AND SELECTION IN HRM

AT

ADITYA TRADING SOLUTIONS PVT LTD

Project Report sub!tte" !#

P$rt!$% &u%&!%%e#t &or t'e $($r" o&

MASTER OF )USINESS ADMINISTRATION

Sub!tte" )*

SULTANA

Ro%% No+

OSMANIA UNIVERSITY

,-.-/,-.,

1



DECLARATION

I hereby declare that the Project Report titled 0Ro%e o& Recru!te#t $#" Se%ect!o# !# HRM $t

ATS P1t Lt" 2 submitted by me to the Department of Osmania University is a bonafide work

undertaken by me and it is not submitted to any other University or Institution for the award of

any degree diplomacertificate or published any time before!

3SULTANA4

"



AC5NO6LEDEMENTS

I am grateful to #r! #d $asee Uddin% &R #anager of '() Pvt *td for granting permission to

do my project work in their esteemed organi+ation and I thank #r! #d! Ismail ,Recruitment

#anager- for giving me permission and necessary information in the department!

I thank my family and friends for being a source of inspiration and support! *ast but not the

least I am thankful to my respondents for giving me the necessary information!

I would like to thank .ollege guide for his co/operation in completing my project work!

,)U*('0'-



2



. INTRODUCTION+

&uman resource management ,&R#-% also called personnel management% consists of all the

activities undertaken by an enterprise to ensure the effective utili+ation of employees toward

the attainment of individual% group% and organi+ational goals! 'n organi+ation3s &R# function

focuses on the people side of management! It consists of practices that help the organi+ation to

deal effectively with its people during the various phases of the employment cycle% including

pre/hire% staffing% and post/hire! (he pre/hire phase involves planning practices! (he

organi+ation must decide what types of job openings will e4ist in the upcoming period and

determine the necessary 5ualifications for performing these jobs! During the hire phase% the

organi+ation selects its employees! )election practices include recruiting applicants% assessing

their 5ualifications% and ultimately selecting those who are deemed to be the most 5ualified!

In the post/hire phase% the organi+ation develops &R# practices for effectively managing

people once they have 6come through the door!6 (hese practices are designed to ma4imi+e the

performance and satisfaction levels of employees by providing them with the necessary

knowledge and skills to perform their jobs and by creating conditions that will energi+e% direct%

and facilitate employees3 efforts toward meeting the organi+ation3s objectives! Once the

re5uired numbers of human resources are determined% the management has to find the places

where re5uired human resources are ,will- be available and also find the means of attracting

them towards the organi+ation before selecting suitable candidates for jobs! 'll this process is

generally known as recruitment! )ome people use the term 7Recruitment8 for employment!

Personnel selection and assessment activities are integral parts of organi+ational life! Decisions

about hiring and classifying applicants are based on e4pectations or predictions about their

future work behaviors! (his article e4amines different methods of assessment and selection

commonly used by organi+ations today9 the interview% psychological tests% assessment centre

and bio/data!

:hile most firms have a human resources or personnel department that develops and

implements &R# practices% responsibility lies with both &R professionals and line managers!

(he interplay between managers and &R professionals leads to effective &R# practices! ;or

e4ample% consider performance appraisals! (he success of a firm3s performance appraisal

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necessary input for developing effective practices! #anagers carry out many procedures and

methods devised by &R professionals! ;or instance% line managers=

• Interview job applicants

• Provide orientation% coaching% and on/the/job training

• Provide and communicate job performance ratings

• Recommend salary increases

• .arry out disciplinary procedures

• Investigate accidents

• )ettle grievance issues

(he development of &R# procedures and methods often re5uires input from line managers!

;or e4ample% when conducting a job analysis% &R professionals often seek job information

from managers and ask managers to review the final written product! 'dditionally% when &R

professionals determine an organi+ation3s training needs% managers often suggest what types of

training are needed and who% in particular% needs the training!

NEED AND IMPORTANCE OF THE STUDY

Pre/H!re P'$se

(he major &R# activities in the pre/hire phase are human resource planning and job analysis!

(hese activities form the cornerstone upon which other &R# practices are built! &uman

resource planning helps managers to anticipate and meet changing needs related to the

ac5uisition% deployment% and utili+ation of employees! (he organi+ation first maps out an

overall plan called a strategic plan! (hen% through demand and supply forecasting it estimates

the number and types of employees needed to successfully carry out its overall plan! )uch

information enables a firm to plan its recruitment% selection% and training strategies! ;ore4ample% assume that a firm3s &R plan estimates that 1< additional engineers will be needed

during the ne4t year! (he firm typically hires recent engineering graduates to fill such

positions! ?ecause these majors are in high demand% the firm decides to begin its campus

recruiting early in the academic year% before other companies can 6snatch away6 the best

candidates!

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Aob analysis is the systematic process used for gathering% analy+ing% and documenting

information about particular jobs! (he analysis specifies what each worker does% the work

conditions% and the worker 5ualifications necessary to perform the job successfully! (he job

analysis information is used to plan and coordinate nearly all &R# practices% including=

• Determining job 5ualifications for recruitment purposes

• .hoosing the most appropriate selection techni5ues

• Developing training programs

• Developing performance appraisal rating forms

• &elping to determine pay rates

• )etting performance standards for productivity improvement programs

;or e4ample% an organi+ation may decide to use a mechanical aptitude test to screen applicants

because a job analysis indicated that mechanical aptitude is an important job skill! Or% a firm

may raise the pay of one of its employees because a job analysis indicated that the nature of the

work recently changed and is now more demanding!

H!r!#7 P'$se

(he hiring phase of human resource management is also called staffing! )taffing involves

policies and procedures used by organi+ations to recruit and select employees! Organi+ations

use recruitment to locate and attract job applicants for particular positions! (hey may recruit

candidates internally ,i!e!% recruit current employees seeking to advance or change jobs- or

e4ternally! (he aim of recruitment practices is to identify a suitable pool of applicants 5uickly%

cost/efficiently% and legally! )election involves assessing and choosing among job candidates!

(o be effective% selection processes must be both legal and technically sound% accurately

matching people3s skills with available positions!

Post/H!r!#7 P'$se

(raining and development are planned learning e4periences that teach workers how to

effectively perform their current or future jobs! (raining focuses on present jobs% while

development prepares employees for possible future jobs! (raining and development practices

B



are designed to improve organi+ational performance by enhancing the knowledge and skill

levels of employees! ' firm must first determine its training needs and then selectdevelop

training programs to meet these needs! It also must also take steps to ensure that workers apply

what they have learned on the job! (hrough the performance appraisal process% organi+ations

measure the ade5uacy of their employees3 job performances and communicate these

evaluations to them! One aim of appraisal systems is to motivate employees to continue

appropriate behaviors and correct inappropriate ones! #anagement also may use performance

appraisals as tools for making &R#/related decisions% such as promotions% demotions%

discharges% and pay raises!

.ompensation entails pay and benefits! Pay refers to the wage or salary employees earn% while

benefits are a form of compensation provided to employees in addition to their pay% such ashealth insurance or employee discounts! (he aim of compensation practices is to help the

organi+ation establish and maintain a competent and loyal workforce at an affordable cost!

Productivity improvement programs tie job behavior to rewards! Rewards may be financial

,e!g!% bonuses and pay raises- or nonfinancial ,e!g!% improved job satisfaction-! )uch programs

are used to motivate employees to engage in appropriate job behaviors% namely those that help

the organi+ation meet its goals!

O)JECTIVES OF THE STUDY

1! (o find out the recruitment policy of '() Pvt *td!

"! (o find out the recruiting procedure in '() Pvt *td!

! (o find out how '() Pvt *td takes interview and short listed!

2! (o find out what is the selection criteria of '() Pvt *td!

<! (his survey aims at suggesting the management to recruit and selection of Cmployees!

>! (o ascertain whether the selection procedures adopted by '() Pvt *td helps in recruit

the best suitable candidates!



SCOPE OF THE STUDY

1- (he study is focused on Recruitment and )election at '() Pvt *td! (he study covers

workers% nonEmanagement and management staff of '() Pvt *td!

"- &ow effective Recruitment and )election at '() Pvt *td!

RESEARCH METHODOLOGY

SOURCES OF DATA+

Pr!$r* Source+

(he primary source of data is data collected from the employees of '() Pvt *td!

Seco#"$r* Sources+

(he secondary data was collected form the .ompany profile% &R manuals and Internet!

D$t$ A#$%*s!s+

(he data is analy+ed using the statistical techni5ues! In this Project ?ar Diagrams and pie

charts have been used to analy+e the out comes of the Project study!

S$p%e S!8e+

'bout 2F employees of the company at randomly were taken for the study ,survey-!

D$t$ Co%%ect!o#+

(he data collected with the help of a well frame Guestionnaire% as the aim of the study is to

elicit as much information as possible from the interviewer!

LIMITATIONS

.9 Due to lack of time all employees were not involved!

,9 (he accuracy of the information is not guaranteed as the information is given by the

interviewer dependent largely on their moods and time of interviewing!

1F



11



ADITYA TRADING SOLUTIONS PVT LTD AT A GLANCE

'() Pvt *td is an I( management consulting firm whose mission is to help leading

corporations create and sustain competitive advantage! 's a truly international firm% our

strong global presence offers clients and employees a wealth of cross/cultural e4perience! '()

Pvt *td is a global management consulting% technology services and outsourcing company!

.ommitted to delivering innovation% '() Pvt *td collaborates with its clients to help them

become high/performance businesses and governments! :ith deep industry and business

process e4pertise% broad global resources and a proven track record% '() Pvt *td can mobili+e

the right people% skills% and technologies to help clients improve their performance

6'$t "o t'e ost success&u% or7$#!8$t!o#s :#o( $bout outsourc!#7/$#" ('o !s 'e%p!#7

t'e &!#" t'e $#s(ers;

Outsourcing is more than a cost/saving mechanism! )mart decision/makers know that

outsourcing is an indispensable business tool to not only reduce cost% but to drive business

value into their enterprises!

:hen you choose '() Pvt *td to help you with your outsourcing needs% you get more than a

provider! Hou get a partner who will help your company achieve high performance!

Our outsourcing services focus on your distinctive capabilities! Hou3ll gain access to best/in/

class skills and capabilities to lower your operating costs and improve your bottom line!

.ombined with our application outsourcing and infrastructure outsourcing business% '() Pvt

*td has the broadest outsourcing services offering in the market% unmatched in scope% scale and

depth!

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'() Pvt *td provides advanced information technology solutions and consulting services to a

host of corporate clients in the ?;)I% *ife )ciences% &ealthcare% (elecom% #anufacturing%

(echnology% Retail% and various federal% state and local government agencies% across crucial

markets service!

'() Pvt *td offerings encompass 'pplication)ystems Development as well as #anagement

Outsourcing% ?usiness Intelligence Data :arehousing% Infrastructure #anagement and

ProductionOperations )upport% CRP .R# services% Cnterprise 'pplication Integration%

Guality 'ssurance )ervices and :eb 'pplications!

'n employee/centric company with a clientele that ranges from smallmidsi+e enterprises to

;ortune 1FFF companies% '() Pvt *td has helped implement some of the most scalable and

comple4 projects using onsite% offsite ,near shore- offshore model! '() Pvt *td has a

demonstrated ability to integrate diverse technologies into a seamless enterprise technology

delivery platform! '() Pvt *td e4cellent project e4ecution capabilities and 5uality metrics

focus using global delivery leads to successful e4ecution of projects at a very attractive cost

advantage for our clients!

:ith its proven record of consistently delivering on its promises '() Pvt *td uni5ue mi4 of

integrity% drive and preparedness is what helping customers reengineer and reinvent their

businesses giving the competitive edge in today8s ever/changing marketplaceJ

'() Pvt *td offers timely% reliable% high 5uality information technology consulting services!

'() Pvt *td consulting services provide support at any point in the application life cycle!

:hether the need is for a single programming resource or a team to develop the ne4t

generation of applications or the complete support and maintenance of I( operations% '() Pvt

*td consulting services can help!

1



'() Pvt *td consultants have the skills and e4perience to analy+e business processes and

apprise on using I( effectively to accomplish business goals and ma4imi+e the Return on

Investments! '() Pvt *td can fill re5uirements and manage by skill competency across

multiple geographic locations!

'() Pvt *td currently has 1<FFK technology trailbla+ers and passionate professionals

speciali+ed in a range of technologies and disciplines and leveraging their industry domain

knowledge to rapidly address business re5uirements! Using a strong technical global recruiting

engine '() Pvt *td is able to provide clients with subject matter e4perts and talented5ualified

individuals with tough/to/find skills in a cost/effective manner!

'() Pvt *td consultants are highly skilled in the areas of planning% designing% development%

testing% maintenance% service provisioning% research% training% operations and administration

(o deploy the right skilled resource at the right place% '() Pvt *td has a global resource

management framework! (his framework enables '() Pvt *td to provide resources to its

clients from various resource pools spread across different geographies while ensuring timely

deployment of right resources!

'() Pvt *td Inc is a global provider of high/5uality business and technology services and is

founded by a team of professionals with more than F years of combined consulting e4perience

in the U)'% UL and India! Right from the inception% our primary objective is to add value to

our clients through operational e4cellence% stewardship and deep domain knowledge!

Outsourcing with '() Pvt *td Inc allows our clients to focus on core capabilities and unlock

their total potential to significantly improve their business performance!

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OVERVIE6+

Our focused data and knowledge process outsourcing solutions enable our clients to produce

more with less and stay focused on their core competencies! :e leverage our deep cross

industry e4perience and demonstrated business tools to successfully deliver measurable

business value and performance improvement!

Our pricing will save you up to >FM of the cost while providing other both tangible and

intangible benefits! :e sign a 0on Disclosure 'greement ,0D'- to address your data security

concerns before we start working on your projects!

1>



DATA MANAGEMENT SERVICES+

:e offer a full spectrum of 5uality and efficient data management solutions that provide you

with necessary insight into the volumes of data and empower you with valuable information /

so that you can take right decisions at the right time to stay ahead of the competition!

:e understand that your organi+ation3s information is among your most important assets% and

so we take appropriate care to maintain high security and confidentiality!

Our Data #anagement services help you in consolidating data in a way that is easy to manage%

retrieve% and maintain! :e offer a complete spectrum of customi+ed Data #anagement

)ervices to medium and large/scale businesses across all major industry verticals in the U)% the

UL and other Curopean countries!

DATA MANAGEMENT SERVICES INCLUDE+

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DATA ENTRY+

In some companies the need for data entry is constant while for others there may be just a

temporary re5uirement! :hatever the need may be% accurate and easily accessible data is a

necessity! :e offer comprehensive data entry solutions and shown below are some of them!

• Data Cntry from hardsoft copy to any database format

• Insurance .laims Cntry

• PD; Document Inde4ing

• Data entry from images and PD; files

• Online order entry and follow up

• .ustom data e4portimport interfaces with audits

• $arious other formats

DATA CAPTURING < CONVERSION+

Data imaging involves the conversion of an image on paper to an electronic image! Once the

hard copy is scanned% the source documents can be destroyed or archived! Processing continues

from the electronic copy! (his may involve optical character recognition ,O.R- or intelligent

character recognition ,I.R-! #any fields of data are captured in a custom application that will

be used for downstream processing such as mailings% order processing financial systems% or

further data mining! (he need for data conversion is at a peak now as there are several

processes and challenges present in any enterprise= mergers% ac5uisitions and new technology

developments! :e handle different formats

• ;rom paper document conversions to computer ready files for the Internet% Intranet and

C4tranet% .D/RO# and database

• ;rom audio tape to .D

• ;rom (I; files to paper documents

• ;rom Paper Documentsscanned images to #) :ord

• ;rom )canned paper reportsimages to C4cel

• ;rom Image to html

• ;rom (iff to PD;

1B



DATA CLEANSING < NORMALI=ATION+

Data cleansing can assure a valuable and accurately maintained database! :ith our strengths in

servicing a range of international clientele and successfully e4ecuting several data management

projects% we ensure a hassle free outsourcing e4perience for our customers! Our data cleaning

service covers several steps% depending on the type of data! :e begin the data cleansing

process with first understanding the current state of the data and what needs to be cleansed and

standardi+ed and apply a series of automated and manual steps to complete the normali+ation

and cleansing process! :e offer complete range of data cleansing and normali+ation services

by adopting various permutations of pattern matching rules% database 5ueries and manual

inspection

• Data normali+ation to avoid duplicate and redundant data

• Identify and remove duplicate data

• )tandardi+e inconsistent data

• )upplier rationali+ation

• $erify one/to/many and many/to/many relationships ,e!g! same vendor% multiple ta4 ids

etc-

DATA STANDARDI=ATION < ENRICHMENT+

:e provide data enrichment services% which may involve sourcing content from various

sources! 'longside web research% we do manual sourcing in order to collect all possible key

data elements to be able to generate meaningful information from the raw data!

:e undertake standardi+ation and enrichment services by using all or some of the following

techni5ues

• ;ocused Internet )earches

• #anufacturer web sites

• Industry specific web sites

• Directly contacting suppliers

• Other as re5uired

1



SPEND ANALYSIS

*ack of )pend visibility is a common issue facing many businesses today! (his is typically

caused by

• *ack of aggregate spend data from multiple data sources

• Data inconsistencies and missing critical data elements

• Duplicate supplier names

• #issing parent/child relationships

• )pend data not properly categori+ed

:e provide end/to/end spend management solutions by addressing all the above mentioned

spend visibility issues so that our clients can achieve their cost reduction and cost containment

objectives!

OPERATIONS E>CELLENCE+

Our primary objective is to add value to our clients through operational e4cellence%

stewardship and deep domain knowledge! 't '() Pvt *td Inc% our clients come first E Our

corner stones are built around providing long/lasting and measurable value to our clients and

e4ceed their e4pectations!

:e work closely with our client project teams to define Ley Performance Indicators ,LPIs-

and well structured )ervice *evel 'greements ,)*'s- early on in the process! :e believe that

the most successful outsourcing relationships involve the outsourcing provider and the client

participating in continuous process improvements!

6E AL6AYS TA5E A PHASED APPROACH FOR MOST OF THE PROJECTS 6E

UNDERTA5E+• Understand the objectives of off shoring and e4pected benefits E:hyJ

• Understand the current processes carried in these projects E &owJ

• Cstablish a dedicated offshore team suitable for the project

• Identify the appropriate training program for the offshore team

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• .arry out pilot project,s- in a controlled environment

• ;ine/tune the processes as necessary

• #ove in to a production environment

•.ontinue sly monitor performance against )*'

• On/going process improvement

6OR5ING 6ITH ADITYA TRADING SOLUTIONS PVT LTD+

:e at '() Pvt *td Inc believe that our People are our greatest asset! One of our key

differentiators is our energetic% committed and dedicated People! Our ability to provide world/

class service to our clients is only possible if we have a world/class team! :e thrive to provide

you with lot of freedom and fle4ibility and would like to harness an open work environment

where the ideas can be e4changed freely and provide innovative solutions to our clients! :e

know that our employees8 success is our success!

6E CONSTANTLY ARE LOO5ING FOR INDIVIDUALS 6ITH THE FOLLO6ING

?UALITIES+

• 'daptable

• 'ttention to detail

• .omfortable in a team setting

• Desire to learn and continuously improve

• Positive attitude and accountable

• Proactive and willingness to take initiative

• (ake ownership and pride in their work

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STUDY IN ADITYA TRADING SOLUTIONS PVT LTD

(he success of any organi+ation depends on how effectively human resources are managed and

utili+ed! In today8s highly comple4 and competitive situations% the choice of right personnel has

far reaching implications for the enterprise! Due to rapid technological changes e4alting labors

costs and shifting job re5uirements! Recruitment and selection is only a matter of satisfying a

company8s needs but also the shape of the company8s future! '() Pvt *td has a policy and

planning for the recruitment and selection in their organi+ation! (hey have allocated a special

budget for the process of recruitment and selection! (he recruitment of the personnel

determined through manpower forecast and the need due to labor turnover!

T'e scree#!#7s $t ATS P1t Lt" $re "o#e !# t'ree st$7es+

1! Preliminary interview!

"! :ritten test!

! #ain interviewfinal interview!

't every stage the aspirants are short listed before they go to the ne4t stage! )ometimes% based

upon the importance a job holds% personnel% stress and depth interviews are also conducted!

'() Pvt *td advertises of its vacancies in leading newspapers and also employment

newspapers! :hile screening the applications priority will be given to skills and knowledge%

then to 5ualifications and their work e4perience of the applicants! '() Pvt *td takes one to two

months time to screen the recruiters thoroughly and then placements are done! Placements are

followed by probationary and review periods! '() Pvt *td also has good induction procedure

to make the employees get accustomed to their work very soon! (he interview method that is

followed in '() Pvt *td is structured!

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"



IT INDUSTRY IN INDIA

Information (echnology ,I(- industry in India is one of the fastest growing industries! Indian

I( industry has built up valuable brand e5uity for itself in the global markets! I( industry in

India comprises of software industry and information technology enabled services ,I(C)-%

which also includes business process outsourcing ,?PO- industry! India is considered as a

pioneer in software development and a favorite destination for I(/enabled services!

(he origin of I( industry in India can be traced to 1@2% when the mainframe manufacturer%

?urroughs% asked its India sales agent% (ata .onsultancy )ervices ,(.)-% to e4port

programmers for installing system software for a U!)! client! (he I( industry originated under

unfavorable conditions! *ocal markets were absent and government policy toward private

enterprise was hostile! (he industry was begun by ?ombay/based conglomerates which entered

the business by supplying programmers to global I( firms located overseas!

During that time Indian economy was state/controlled and the state remained hostile to the

software industry through the 1@Fs! Import tariffs were high ,1<M on hardware and 1FFM on

software- and software was not considered an 6industry6% so that e4porters were ineligible for

bank finance! Novernment policy towards I( sector changed when Rajiv Nandhi became Prime

#inister in 1B2! &is 0ew .omputer Policy ,0.P/1B2- consisted of a package of reduced

import tariffs on hardware and software ,reduced to >FM-% recognition of software e4ports as a

6delicensed industry6% i!e!% henceforth eligible for bank finance and freed from license/permit

raj% permission for foreign firms to set up wholly/owned% e4port/dedicated units and a project

to set up a chain of software parks that would offer infrastructure at below/market costs! (hese

policies laid the foundation for the development of a world/class I( industry in India!

(oday% Indian I( companies such as (ata .onsultancy )ervices ,(.)-% :ipro% Infosys% &.* et

al are renowned in the global market for their I( prowess! )ome of the major factors which

played a key role in India3s emergence as key global I( player are=

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I#"!$# E"uc$t!o# S*ste

(he Indian education system places strong emphasis on mathematics and science% resulting

in a large number of science and engineering graduates! #astery over 5uantitative

concepts coupled with Cnglish proficiency has resulted in a skill set that has enabled India

to reap the benefits of the current international demand for I(!

H!7' ?u$%!t* Hu$# Resource

Indian programmers are known for their strong technical and analytical skills and their

willingness to accommodate clients! India also has one of the largest pools of Cnglish/

speaking professionals!

Copet!t!1e Costs

(he cost of software development and other services in India is very competitive as

compared to the :est!

I#&r$structure Sce#$r!o

Indian I( industry has also gained immensely from the availability of a robust

infrastructure ,telecom% power and roads- in the country!

In the last few years Indian I( industry has seen tremendous growth! Destinations such as

?angalore% &yderabad and Nurgaon have evolved into global I( hubs! )everal I( parks

have come up at ?angalore% &yderabad% .hennai% Pune% Nurgaon etc! (hese parks offer

)ilicon $alley type infrastructure! In the light of all the factors that have added to the

strength of Indian I( industry% it seems that Indian success story is all set to continue!

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Information (echnology is one of the most important industries in the Indian economy! (he I(

industry of India has registered huge growth in recent years! India3s I( industry grew from

1<F million U) Dollars in 1F/11 to a whopping <F billion UD Dollars in "FF>/"FF@!

In the last ten years the Information (echnology industry in India has grown at an average

annual rate of FM!

(he liberali+ation of the Indian economy in the early nineties has played a major role in the

growth of the I( industry of India! Deregulation policies adopted by the Novernment of India

have led to substantial domestic investment and inflow of foreign capital to this industry! In

1@F% high import duties had forced I?# to leave India! &owever% after the early nineties%

many multi national I( companies% including I?#% have set up their operations in India!

During the ten year period 1"/"FF"% the Indian software industry grew at double the rate as

the U) software industry!

Soe o& t'e $jor re$so#s &or t'e s!7#!&!c$#t 7ro(t' o& t'e IT !#"ustr* o& I#"!$ $re /

• 'bundant availability of skilled manpower

• Reduced telecommunication and internet costs

• Reduced import duties on software and hardware products

• .ost advantages

• Cncouraging government policies

Soe o& t'e $jor cop$#!es !# t'e IT !#"ustr* o& I#"!$ $re /

• (ata .onsultancy )ervices ,(.)-

• Infosys

• :ipro

• I?#

• &P

">



• &.*

• .ogni+ant (echnology )olutions ,.()-

• Patni

• )atyam

• 0II(

India3s I( industry caters to both domestic and e4port markets! C4ports contribute around

@<M of the total revenue of the I( industry in India! (he I( industry can be broadly divided

into four segments /

• I( services

• )oftware ,includes both engineering and Research and Development-

• I(C)/?PO

• &ardware

GRO6TH OF INDIAN INFORMATION TECHNOLOGY SECTOR

Poised to become a U) ""< billion industry by "F"F% the Indian information technology ,I(-

industry has played a key role in putting India on the global map! (he I(/?PO sector has

become one of the most significant growth catalysts for the Indian economy! In addition to

fuelling India8s economy% this industry is also positively influencing the lives of its people

through an active direct and indirect contribution to various socio/economic parameters such as

employment% standard of living and diversity! (he industry has played a significant role in

transforming India8s image from a slow moving bureaucratic economy to a land of innovativeentrepreneurs and a global player in providing world class technology solutions and business

services% according to 0ational 'ssociation of )oftware and )ervice .ompanies ,0')).O#-!

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(he sector is estimated to have grown by 1 per cent in the ;H"F11% clocking revenue of

almost U) @> billion! India8s outsourcing industry has witnessed a rebound and registered

better than e4pected growth according to 0')).O#!

(he e4port revenues are estimated to have aggregated to U) < billion in ;H"F11 and

contributed "> per cent as its share in total Indian e4ports ,merchandise plus services-%

according to a research report 7I(/?PO )ector in India= )trategic Review "F118% published by

0')).O#! (he workforce in Indian I( industry will touch F million by "F"F and this

sunrise industry is e4pected to continue its mammoth growth% e4pect various industry e4perts!

;urthermore% 0')).O# said that the domestic I(/?PO revenues e4cluding hardware are

e4pected to have grown at almost 1> per cent to reach U) 1@!< billion in ;H"F11! )trong

economic growth% rapid advancement in technology infrastructure% increasingly competitive

Indian organisations% enhanced focus by the government and emergence of business models

that help provide I( to new customer segments are the key drivers for increased technology

adoption in India!

(he data centre services market in the country is forecast to grow at a compound annual

growth rate ,.'NR- of ""!@ per cent between "FF and "F11% to touch close to U) "!" billion

by the end of "F11% according to research firm ID. India3s report! (he ID. India report statedthat the overall India data centre services market in "FF was estimated at U) 1! billion!

India will see its number of internet users triple to "@ million by "F1<% from B1 million

registered in )eptember "F1F% according to a report titled 3Internet3s 0ew bn3% by the ?oston

.onsulting Nroup ,?.N-! ?.N said Internet penetration rate in India is e4pected to reach 1

per cent by "F1<% up from the current seven per cent!

(elecom Regulatory 'uthority of India ,(R'I- is targeting a 1F/fold increase in broadband

subscribers to 1FF million by "F12! (he country has 1F!" million subscribers now! 6:e will

have 1FF million broadband subscribers by "F12%6 A!)! )arma% .hairman% (R'I said at the fifth

India Digital )ummit "F1F organised by the Internet and #obile 'ssociation of India!

"B



(he penetration of the internet in rural areas will see an all time high in "F11! In a survey

conducted by I#R? for the Internet and #obile 'ssociation of India ,I'#'I-% the total

number of active internet users in rural area will rise by B per cent to touch "2 million by the

end of "F11 from 1"!1 million in December "F1F! (he survey said that the claimed internet

user category is also set to grow by > per cent to reach "! million by December "F11 from

1<!" million in December "F1F! ,'ctive users are those% who have used the internet at least

once in the past one month! .laimed internet users are those% who have used the internet

sometime but not necessarily in the past one month!-

T'e Gro(t' Stor*

India is a preferred destination for companies looking to offshore their I( and back/office

functions! It also retains its low/cost advantage and is a financially attractive location when

viewed in combination with the business environment it offers and the availability of skilled

people!

(he country8s domestic market for business process outsourcing ,?PO- is projected to grow

over " per cent to touch U) 1!2 billion in "F11% says global research group Nartner! In "F1F%

the domestic ?PO market was worth U) 1!1 billion! (he firm predicts that the domestic ?PO

market would reach U) 1!> billion in "F1" and increase to U) "!2@ billion by "F12!

:ith the first 5uarter of the new fiscal "F11/1" offering positive business outlook% hiring

sentiments for sectors like I(% I(e) and telecom have risen by over "F per cent% says a study by

(eam*ease )ervices Pvt! *td! 's per the Cmployment Outlook Report for the period 'pril/

Aune "F11% released by (eam*ease )ervices Pvt! *td!% hiring intent from I( and I(e) was the

highest in cities like 0ew Delhi% #umbai% &yderabad and Pune!

India3s top technology firms like (.)% Infosys% :ipro and &.* are readying plans to gain a

bigger share of their largest market% U)% by aggressively chasing contracts being served by

multinational rivals! 'nalysts e4pect the top I( firms to grow between "/"@ per cent in the

;H"F1" on the back of more number of discretionary projects% improved pricing% and robust

business volumes!

"



I#1este#ts

?etween 'pril "FFF and ;ebruary "F11% the computer software and hardware sector received

cumulative foreign direct investment ,;DI- of U) 1F%@F< million% according to the

Department of Industrial Policy and Promotion!

(he total investments of C#. .orporation% a leading global player of information

infrastructure solutions in India% will touch U) " billion ,over U) "!F1 billion- by "F12!

Russian I( security software provider% Laspersky *ab% will be investing U) " million in its

India operations at &yderabad during "F11!

On the back of 2F per cent revenue growth% .ogni+ant will invest more than U) <FF milliontill "F12 to e4pand its campuses to add over B million s5uare feet to house over <<%FFF

employees! It will create additional software development and training facilities in regions

designated as special economic +ones in .hennai% Pune% .oimbatore and Lolkata!

In order to integrate the learning e4perience for the students% Nlobsyn ?usiness )chool% would

launch an online platform% e/Nlobsyn% by Auly "F11 that would work as a virtual classroom

environment for its students% as well as facilitate them with other amenities!

.hennai/based Polaris )oftware *ab has announced that it is buying an B< per cent stake in

)an ;rancisco/based digital identity authentication services provider Iden/(rust for U) "F

million! (he ac5uisition will mark Polaris3 entry into the cloud computing space for financial

technology solutions% the company said in a filing to the ?ombay )tock C4change!

Go1er#e#t I#!t!$t!1es

Novernment sector is a key catalyst for increased I( adoption/ through sectors reforms thatencourage I( acceptance% 0ational eNovernanceProgrammes ,0eNP- % and the Uni5ue

Identification Development 'uthority of India ,UID'I- programme that creates large scale I(

infrastructure and promotes corporate participation!

.ertain crucial steps taken by the Indian government to propel the sector growth are=

F



• .onstitution of the (echnical 'dvisory Nroup for Uni5ue Projects ,('NUP- under the

chairmanship of 0andan0ilekani! (he Nroup would develop I( infrastructure in five

key areas% which includes the 0ew Pension )ystem ,0P)- and the Noods and )ervices

(a4 ,N)(-

• )etting up the 0ational (askforce on Information (echnology and )oftware

Development with the objective of framing a long term 0ational I( Policy for the

country!

• Cnactment of the Information (echnology 'ct% which provides a legal framework to

facilitate electronic commerce and electronic transactions!

• )etting up of )oftware (echnology Parks of India ,)(PIs- in 11 for the promotion of

software e4ports from the country!(here are currently <1 )(PI centres where apart from

e4emption from customs duty available for capital goods% there are also e4emptions

from service ta4% e4cise duty% and rebate for payment of .entral )ales (a4!

• Plans to formulate Information (echnology Investment Regions ,I(IRs-! (hese regions

would be endowed with e4cellent infrastructure and would reap the benefits of co/

siting% networking and greater efficiency through use of common infrastructure and

support services!

Ro$" A'e$"

(he Indian information technology sector continues to be one of the sunshine sectors of the

Indian economy showing rapid growth and promise!

'ccording to a report prepared by #cLinsey for 0')).O# called 3Perspective "F"F=

(ransform ?usiness% (ransform India3% the e4ports component of the Indian industry is

e4pected to reach U) 1@< billion in revenue by "F"F! (he domestic component will

contribute U) <F billion in revenue by "F"F! (ogether% the e4port and domestic markets are

likely to bring in U) ""< billion in revenue% as new opportunities emerge in areas such as

public sector and healthcare and as geographies including ?ra+il% Russia% .hina and Aapan opt

for greater outsourcing!

1



"



@9 LITERATURE REVIE6

HUMAN RESOURCE MANAGEMENT

If an organi+ation is to achieve its goals% it must not only have the re5uired resources% it must

also use them effectively! (he resources available to a manager are human% financial% physical%

and informational! :hile human resources ,&R- have always been critical to the success of any

organi+ation% they have assumed an increasingly greater importance that is being recogni+ed

inside and outside work organi+ations! &uman resources departments typically include

individuals with a wide variety and range of knowledge% skills% and abilities who are e4pected

to perform job activities in a manner that contributes to the attainment of organi+ational goals!

&ow effectively employees contribute to the organi+ation depends in large part upon the

5uality of the &R program ,including staffing% training% and compensation- as well as the

ability and willingness of management//from the .CO to first/line supervisors//to create an

environment that fosters the effective use of human resources!

6'* Stu"* Hu$# Resources M$#$7ee#t 3HRM4;

'nyone who embarks on a course of speciali+ed study typically wonders about its relevance to

his or her interests and goals! (he answer to the 5uestion 6:hy study &R#J6 should become

apparent as we e4plore the importance of &R# and e4amine the contributions it can make to

an organi+ation! :hether you are working in the &R# function of your organi+ation or as a

staff professional or line manager% you will definitely need to be aware of the various roles and

responsibilities in dealing with employers in your organi+ation!

T'e Iport$#ce o& HRM

;or many decades such responsibilities as selection% training% and compensation were

considered basic functions of the area historically referred to as personnel management! (hese

functions were performed without much regard for how they related to each other! ;rom this

narrow view we have seen the emergence of what is now known as human resources

management!



&uman resources management ,&R#-% as it is currently perceived% represents the e4tension

rather than the rejection of the traditional re5uirements for managing personnel effectively! 'n

understanding of human behavior and skill in applying that understanding are still re5uired!

'lso re5uired are knowledge and understanding of the various personnel functions performed

in managing human resources% as well as the ability to perform those functions in accordance

with organi+ational objectives! 'n awareness of e4isting economic% social% and legal constraints

upon the performance of these functions is also essential!

&R#% as it is practiced today% recogni+es the dynamic interaction of personnel functions with

each other and with the objectives of the organi+ation! #ost important% it recogni+es that &R

planning must be coordinated closely with the organi+ation8s strategic and related planning

functions! 's a result% efforts in &R# are being directed toward providing more support for the

achievement of the organi+ation8s goals% whether it be a profit% not for profit% or governmental

organi+ation!

HRM+ Curre#t C'$%%e#7es

'ccording to a survey of senior &R e4ecutives in Personnel Aournal3s top 1FF companies

,based on 1" revenues-% the most challenging &R issues are health care costs% reorgani+ing

and downsi+ing organi+ations% and mergers and ac5uisitions! (hese issues are followed by

problems in managing diverse groups of workers who have different attitudes% values% and

work behaviors9 managing for top/5uality performance ,(G#-9 team building9 and responding

to the needs of the families of employees! Other areas presenting challenges are workers8

compensation% labor relations% and management development! International companies face

increased global competition!

One may e4pect to see new issues and challenges emerging in the future that re5uire

appropriate action! Cvolving business and economic factors forge changes in the &R field

re5uiring that preparation for change be an ongoing process!

2



policies relating to the &R functions% all managers and supervisors are responsible for

performing these functions in their relations with subordinates!

It is in such positions of leadership that the majority of students will be employed! &R# is

therefore oriented to help you in managing subordinates more effectively% whether you become

first/line supervisor or chief e4ecutive officer! Discussions concerning the role of the &R

department can serve to provide one with a better understanding of the functions performed by

this department! ' familiarity with the role of the &R department should help you to cooperate

more closely with the department8s staff and to utili+e more fully the assistance and services

available from this resource!

(he present status of &R# was achieved only after years of evolutionary development! Hou

need to understand the forces that have contributed to this process and to become more aware

of forces acting today that will have an effect on &R# in the future!

De1e%ope#t o& Hu$# Resources M$#$7ee#t

&R#% at least in a primitive form% has e4isted since the first attempts at group effort! .ertain

&R functions% even though informal in nature% were performed whenever people came together

for a common purpose! During the course of this past century% however% the processes of

managing people have become more formali+ed and speciali+ed% and a growing body of

knowledge has been accumulated by practitioners and scholars!

'n understanding of the events contributing to the growth of &R# can provide a perspective

for contemporary policies and practices!

&I)(ORI.'* DC$C*OP#C0( O; &R# PR'.(I.C)

YEAR EVENT1@> Carliest authenticated strike in 'merica9 Philadelphia printers seek to gain minimum

weekly wage of >!

1B2B Passage of a law in Philadelphia setting a minimum wage for workers in commercial

occupations!

1BB1 ?eginning of ;rederick :! (aylor8s work in scientific management at the #idvale

>



)teel Plant in Philadelphia!

1BB Cstablishment of the U!)! .ivil )ervice .ommission!

1BB> ;ounding of the 'merican ;ederation of *abor ,';*-!

11" Passage in #assachusetts of the first minimum wage law!

11 Cstablishment of the U!)! Department of *abor!

11< ;irst course in personnel administration% offered at Dartmouth .ollege!1"F ;irst te4t in personnel administration% published by Ordway (ead and &enry .!

#etcalf!

1"2 Point method of job evaluation developed by the 0ational Clectric #anufacturers8

'ssociation and the 0ational #etal (rades 'ssociation!

1"@ &awthorne studies begun by #ayo% Roethlisberger% and Dickson!

1< Cstablishment of the .ongress of Industrial Organi+ations ,.IO- by several unions

previously affiliated with the ';*!

1< Publication of the first edition of the Dictionary of Occupational (itles!

121 ?eginning of U!)! involvement in :orld :ar II% demanding the mobili+ation ofindividuals trained in personnel management and the rapid development of

personnel programs in the military and in industry!

1<< #erger of the ';* and .IO!

1<@ ;ederal :omen8s Program established by the U!)! .ivil )ervice .ommission to

enhance the employment and advancement of women!

1@< ?eginning of a professional accreditation ,now certification- program by the

Personnel 'ccreditation Institute!

1@B Passage of the .ivil )ervice Reform 'ct% which established the Office of Personnel

#anagement ,OP#-% the #erit )ystems Protection ?oard ,#)P?-% and the ;ederal

*abor Relations 'uthority ,;*R'-!

1B" ?eginning of the erosion of the employment/at/will doctrine% with increasing

attention to 6just cause6 terminations!

1B< Increased emphasis on employee participation in organi+ational decision making to

improve productivity and competitive position!

1F &eightened awareness of privacy rights of employees as employers monitor

employee performance!

11 Increased emphasis on global &R practices9 greater use of temporary employees9

observed

1< Cmphasis on se4ual harassment9 heightened attention to greater diversity in the

workforce9 increased emphasis on total 5uality management9 and downsi+ing or

6rightsi+ing6 of organi+ations!

T'e F$ctor* S*ste

@



During the nineteenth century% the development of mechanical power made possible a factory

system of production! (he concentration of workers in factories served to focus public attention

on their conditions of employment% which were often unhealthy and ha+ardous! During the late

1BBFs% laws were passed in some states to regulate hours of work for women and children% to

establish minimum wages for male labor% and to regulate working conditions that affect

employee health and safety! It was also at this time that laws were enacted to provide payments

for injuries suffered in industrial accidents! Cventually% as the result of legislation and

collective bargaining% employment conditions began to improve!

T'e M$ss Pro"uct!o# S*ste

#ass production was made possible by the availability of standardi+ed and interchangeable

parts designed to be used in assembly/line production! :ith this system came improvements in

production techni5ues and the use of labor/saving machinery and e5uipment! (he

accompanying increases in overhead costs and wage rates% however% forced companies to seek

ways of using production facilities and labor more efficiently! ;rederick :! (aylor8s work at

the #idvale )teel plant in Philadelphia stimulated the scientific management movement!

'ccording to (aylor% scientific management re5uired accurate performance standards based on

objective data gathered from time studies and other sources! (hese standards provided a basis

for rewarding the superior workers financially and for eliminating the unproductive ones!

(aylor3s approach was in sharp contrast to the then/prevailing practice of attempting to gain

more work from employees by threatening them with the loss of their jobs!

B



Sc!e#t!&!c $#$7ee#t

)ubstitution of e4act scientific investigation and knowledge for individual judgment of either

the worker or the boss

T'e H$(t'or#e Stu"!es

?egun in the 1"Fs% the &awthorne studies were an effort to determine what effect hours of

work% periods of rest% and lighting might have on worker fatigue and productivity! (hese

e4periments constituted one of the first cooperative industry/university research efforts! 's the

studies progressed% however% it was discovered that the social environment could have an

e5uivalent if not greater effect on productivity than the physical environment!

.onducted at the :estern Clectric .ompany8s &awthorne :orks near .hicago% Illinois% these

studies were a pioneering endeavor to e4amine factors affecting productivity! &R specialists

generally agree that the &awthorne studies played a very important role in the development of

&R#! (he studies spurred efforts to humani+e the workplace and to find more/sensitive ways

to motivate workers! Out of the interviewing techni5ues used by the &awthorne researchers

grew the nondirective approach to counseling% which recogni+es the importance of feelings!Q

Until that time% it was generally considered inappropriate in employment situations to study

attitudes% beliefs% behaviors% and feelings!

T'e Hu$# Re%$t!o#s Mo1ee#t

(he &awthorne studies% and related industry research% helped to give rise to the human

relations movement by providing new insights into human behavior! (his movement focused

attention on individual differences among employees! It studied the influence that informal

groups can have upon employee performance and behavior! It also focused attention on the

necessity for managers to improve their communications and to be more sensitive to the needs

and feelings of their subordinates!

(his research emphasi+ed the need for a more participative and employee/centered form of

supervision! $arious principles and practices currently applied in employee involvement% work



to employers8 lack of social responsibility% as manifested by their poor treatment of employees

in the past! 's a manager of people% wherever you work in the world% you will constantly be

dealing with a great many legal regulations affecting your actions in dealing with employees!

I#cre$se" Spec!$%!8$t!o# o& HR Fu#ct!o#s

Initially% the management of human resources was limited largely to hiring% firing% and record

keeping% functions carried out by managerial and supervisory personnel! Cventually% clerical

personnel were employed to assist in keeping records relating to hours worked and to payroll!

.omputers handle much of the general record keeping in most parts of the world!

?y the 12Fs the typical personnel department in a medium/si+ed or large firm included

individuals with specific training andor e4perience in carrying out various speciali+ed

functions! (he major functions performed in organi+ations today are shown below!

I#cre$s!#7 Ep'$s!s o# Str$te7!c M$#$7ee#t

(op management e4pects &R managers to assume a broader role in overall organi+ational

strategy! &R# is playing a vital role in creating and sustaining the competitive advantage of an

organi+ation! In order to carry out their e4panded role% many &R professionals will need to

ac5uire competencies such as these=

1! ?usiness capabilities! &R professionals will need to know the business of their

organi+ation thoroughly! (his re5uires an understanding of its financial capabilities!

"! )tate/of/the/art &R# practices! &R professionals will be the organi+ation8s behavioral

science e4perts! &R professionals should develop competencies in staffing% development%

appraisal% rewards% team building% and communication!

! #anagement of change process! &R professionals will have to be able to manage change

processesQ so that &R activities are effectively merged with the business needs of the

organi+ation!

(he ability to integrate business% &R#% and management of change is essential! ?y helping

their organi+ations build a sustained competitive advantage and by learning to manage many

activities well% &R professionals will become strategic business partners! #any of the most

21



forward/looking .COs are seeking top &R managers who will report directly to them and help

them address key issues!

Pro&ess!o#$%!8$t!o# o& Hu$# Resources M$#$7ee#t

?ecause of the changes occurring in the workforce% &R managers can no longer function

simply as technical specialists who perform the various &R# functions! Instead% they must

concern themselves with the total scope of &R# and its role within the organi+ation and in

society as a whole! (herefore &R managers today should be professionals with respect to both

their 5ualifications and their performance!

One of the characteristics of a profession is the development through research and

e4perimentation of an organi+ed body of knowledge! (his knowledge is e4changed through

conferences% seminars% and workshops sponsored by professional associations! (he latest

information in the field is communicated through the literature published by the professional

associations% as well as by various nonprofit organi+ations and educational institutions! Other

characteristics of a profession include the establishment of a code of ethics and of certification

re5uirements for its members! &R# e4hibits all these characteristics!

Pro&ess!o#$% Assoc!$t!o#s $#" Cert!&!c$t!o#

(oday a number of professional organi+ations represent general% as well as speciali+ed% areas of

&R#! (he professional association with the largest membership//more than 2@%FFF//is the

)ociety for &uman Resource #anagement ,)&R#-! 'ffiliated with )&R# are more than 2FF

local chapters in major cities throughout the United )tates% many of which sponsor student

conferences% seminars% and workshops!

(he national annual meeting of the society is held in a different city each year! (he society

publishes &R #aga+ine ,formerly Personnel 'dministrator- and &R 0ews ,formerly

Resource-% as well as various books and bulletins! :hile &R #aga+ine is available to the

general public and is found in most libraries% &R 0ews is generally available only by personal

or organi+ational subscription!

2"



)&R# fre5uently collaborates with the U!)! ?ureau of 0ational 'ffairs ,?0'- in conducting

surveys in various areas of &R#! Other leading professional associations in the field include

the International Personnel #anagement 'ssociation% the International 'ssociation for

Personnel :omen% the 'merican #anagement 'ssociation ,'#'-% and the .onference ?oard

,.?-! '#' and .? are prominent nonprofit organi+ations that provide publications and

educational services relating to &R# and other functional areas!

Organi+ations that represent speciali+ed areas of interest include the &uman Resource Planning

)ociety% the 'merican .ompensation 'ssociation% the International ;oundation of Cmployee

?enefit Plans% the 'merican )ociety for (raining and Development% the 'ssociation for

Industrial Research% and the )ociety for Industrial and Organi+ational Psychology of the

'merican Psychological 'ssociation! ;or professors in the field% there is the Personnel and

&uman Resources Division of the 'cademy of #anagement!

'll of these organi+ations sponsor meetings and workshops that promote the professional

growth of their members! (hey also provide opportunities for contact with other organi+ations%

including government agencies! #ost have e4cellent websites for you to review! (he

professionali+ation of a field generally leads to some form of certification for practitioners to

enhance their status and to recogni+e their competency! (he &uman Resource .ertification

Institute of )&R# has developed such a program for professionals in &R#! (he program

offers two types of certification% each of which reflects the number of specialties and the

amount of e4perience andor academic training possessed by the recipient!

(o 5ualify for either certification% an applicant must provide verification of e4perience and pass

an intensive four/hour written e4amination to demonstrate mastery of knowledge! (he

certifications% which must be renewed every three years% serve largely to indicate the

5ualifications of recipients and encourage others to 5ualify for certification!

(here are other certifying agencies with specific certification designations in the areas of

compensation% employee benefits% and safety and health! 's the reputations of these programs

2



grow and the programs become more widely recogni+ed by top management% certification will

become an important 5ualification for individuals seeking positions in &R#!

Co"e o& Et'!cs

It is typical for professional associations to develop a code of ethics that members are e4pected

to observe! (he code shown in &ighlights in &R# " was developed for &R managers by the

)&R#! #any large corporations have their own code of ethics to govern corporate relations

with employees and the public at large!

SOCIETY FOR HUMAN RESOURCE MANAGEMENT

Co"e O& Et'!cs

's a member of the )ociety for &uman Resource #anagement% I pledge myself to=

#aintain the highest standards of professional

and personal conduct!

Instill in the employees and the public a sense

of confidence about the conduct and intentions

of my employer!

)trive for personal growth in the field of

human resource management!

#aintain loyalty to my employer and pursue its

objectives in ways that are consistent with the

public interest!

)upport the )ociety8s goals and objectives for

developing the human resource management

profession!

Uphold all laws and regulations relating to my

employer8s activities!

Cncourage my employer to make the fair and

e5uitable treatment of all employees a primary

concern!

Refrain from using my official positions% either

regular or volunteer% to secure special privilege%

gain or benefit for myself!

)trive to make my employer profitable both in

monetary terms and through the support and

encouragement of effective employment!

#aintain the confidentiality of privileged

information

Improve public understanding of the role of

human resource management

(his .ode of Cthics for members of the )ociety for &uman Resource #anagement has been

adopted to promote and maintain the highest standards of personal conduct and professional

standards among its members! 'dherence to this code is re5uired for membership in the )ociety

and serves to assure public confidence in the integrity and service of human resource

management professionals!

22



'dherence to a code often creates a dilemma for professionals% including those in &R#!

.onsider these 5uestions! :hom do &R professionals serviceJ :ho is the client//management

or the individual employeesJ In the course of serving the employees and management and

maintaining respect and regard for human values% whose needs are paramountJ :hat happens

whenas is fre5uently the case in &R workthe confidential issues of management andor

the employees are in conflictJQ

(hese and similar 5uestions are not easy to answer! &owever% the fact that there is a code in

itself focuses attention on ethical values and provides a basis for &R professionals to evaluate

their plans and actions! (he &R staff is concerned with monitoring ethics in its own operations!

&owever% &R departments have been given a greater role in communicating the organi+ation8s

values and standards% monitoring compliance with its code of ethics% and enforcing the

standards throughout the organi+ation! #any organi+ations have ethics committees and ethics

ombudsmen to provide training in ethics to employees!

(he ultimate goal of ethics training is to avoid unethical behavior% adverse publicity% and

potential lawsuits and to gain a strategic advantage! (o achieve these objectives% two

approaches are fre5uently used= ,1- developing employee awareness of ethics in business and

,"- drawing attention to potential ethical issues to which an employee may be e4posed!

Pro&ess!o#$% L!ter$ture

Personal development in any profession re5uires knowledge of the current literature in the

field! ' number of periodicals contain articles on general or speciali+ed areas of interest in

&R#! )ome of the more important journals students and practitioners should be familiar with

are shown below!

2<



Soe Iport$#t Pro&ess!o#$% Jour#$%s

.ompensation and ?enefits Review

Cmployee Relations *aw Aournal

Cmployee Responsibility and Rights&R ;ocus

&R #aga+ine

&R 0ews

&uman Relations

&uman Resource #anagement

&uman Resource #anagement Review

&uman Resource Planning

&uman Resources= Aournal of the International

'ssociation for Personnel :omen

Industrial and *abor Relations Review

Industrial Relations

International Aournal of &uman Resources

#anagement

International Aournal of )election and

'ssessment

Aournal of 'pplied PsychologyAournal of .ollective 0egotiation in the Public

)ector

Aournal of *abor Research

Aournal of #anagement

*abor *aw Aournal

#onthly *abor Review

0ational Productivity Review

Personnel

Personnel Aournal

Personnel Psychology

Public Personnel #anagement

)upervisory #anagement

(raining and Development Aournal

Other periodicals that cover the general field of business and management often containarticles pertaining to &R#! 'mong these are 'cademy of #anagement C4ecutive% 'cademy of

#anagement Aournal% 'cademy of #anagement Review% ?usiness &ori+ons% .alifornia

#anagement Review% .anadian ?usiness Review% Curopean #anagement Aournal% ;ortune%

&arvard ?usiness Review% Aournal of ?usiness Cthics% #anagement Review% ?usiness :eek%

and (he :all )treet Aournal!

Rese$rc' Or7$#!8$t!o#s

(he primary function of &R Research organi+ations is to conduct research and to make their

findings available to all who are interested! #any such organi+ations are found at universities!

Probably the largest university research center in the behavioral sciences is the Institute for

)ocial Research at the University of #ichigan! Its three divisions//the )urvey Research .enter%

2>



the Research .enter for Nroup Dynamics% and the .enter for Political )tudies//have together

published over <%FFF books% articles% and reports!

' number of state universities have centers for the study of labor and industrial relations%

including the Universities of .alifornia% #innesota% Illinois% and 0ew Hork! (he )chool of

Industrial and *abor Relations at .ornell University is also well known for its publications!

Organi+ations sponsored by industry% such as the 'merican #anagement 'ssociation ,'#'-

and the .onference ?oard ,.?-% publish research studies that benefit managers in &R#! Rand

.orporation of )anta #onica% .alifornia% and the ?rookings Institution of :ashington% D!.!%

are also recogni+ed for their contributions to this field!

(he ?ureau of 0ational 'ffairs ,?0'-% .ommerce .learing &ouse ,..&-% and Prentice/&all

,P&- also conduct surveys relating to &R# policies and practices! )urvey results from these

organi+ations may be found in loose/leaf volumes that contain a wealth of information about

policies and practices and the legal aspects of &R#! (he student of &R# should become

familiar with the various ?0'% ..&% and P& publications that are updated regularly! (hese

volumes are available in many college and university libraries% city libraries% and the libraries

of the larger work organi+ations! (he :orld :ide :eb search engines will help you gain

access to these organi+ations and &R Research!

Ac$"e!c Tr$!#!#7

:ith so much attention focused on the behavioral sciences during the 1>Fs and 1@Fs% the

subject of &R# suffered from neglect at some U!)! colleges and universities! )ince then%

however% e5ual employment opportunity% international &R#% employee rights% concern for

productivity% cost of employee benefits% and other current issues have rekindled interest in

&R# courses and in &R# as a major field of study!

In the past% many &R professionals entered the field with degrees in liberal arts and sciences%

having perhaps taken a few business courses as electives! &owever% as certification

re5uirements and other factors became essential for professional status% a bachelor3s degree and

even a master8s degree in business have become more important! In addition to business

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courses% students planning careers in &R# should take courses in such areas as personnel and

organi+ational psychology% industrial sociology% economics% industrial engineering% and

electronic data processing! ' knowledge of computer operations is essential for processing and

reporting personnel data to gauge the performance of &R programs!

Pro7r$s &or M$#$7!#7 Hu$# Resources

'n &R program constitutes the overall plan for managing people and for guiding managers and

supervisors in decisions relating to their subordinates! It establishes the objectives% policies%

procedures% and budget pertaining to the &R functions to be performed! 'lthough &R

managers are responsible for coordinating and enforcing policies relating to &R functions%

responsibility for performing these functions rests with all managers and supervisors within an

organi+ation!

Object!1es

&R objectives are determined by the organi+ation3s objectives as a whole! #ore and more% &R

objectives are reflecting the increased social responsibilities of firms% which include not only

traditional responsibilities to customers% employees% and shareholders but also responsibilities

to the community and to the total society!

Po%!c!es

.losely related to &R objectives are &R policies that serve to guide the actions re5uired to

achieve these objectives! Policies provide the means for carrying out the management

processes and as such are an aid to decision making! *ike objectives% they may be idealistic or

realistic% general or specific% fle4ible or infle4ible% 5ualitative or 5uantitative% broad or narrow

in scope! &owever% while objectives determine what is to be done% policies e4plain how it is to

be done!

Nee" &or Po%!c!es

.arefully developed policies are vital to &R# because employees are sensitive to any

differences% no matter how slight% in the treatment they may receive compared with others! (he

2B



5uickest way to impair employee efficiency and morale is for a manager to show favoritism in

decisions such as those relating to vacations% schedules% raises and promotions% overtime% and

disciplinary action! Decisions can be made more rapidly and more consistently if policies

relating to these and other subjects have been formulated and communicated throughout the

organi+ation!

Foru%$t!o# o& Po%!c!es

(he formulation of &R policies for approval by top management should be a cooperative

endeavor among managers% supervisors% and members of the &R staff! In some cases it may be

important to have employees8 input! Policy committees facilitate the pooling of e4perience and

knowledge! Participation by operating managers is particularly important because they are

often more familiar with the specific areas in which problems arise/and also because their cooperation is re5uired for policy enforcement! (he manager and staff of the &R department

have the responsibility for e4ercising leadership in formulating policies that are consistent with

overall organi+ational objectives! (hey also must make certain that these policies are

compatible with current economic conditions9 collective bargaining trends9 and laws and

regulations at federal% state% and local levels!

6r!tte# Po%!c* St$tee#ts

Organi+ations can make their &R policies more authoritative by putting them in writing! (o

strengthen their effectiveness% these statements% which may be compiled into a policy manual%

should include the reasons the policy is needed! :ritten policy statements can serve as

invaluable aids in orienting and training new personnel% administering disciplinary action% and

resolving grievance issues with employees and their unions! :hen distributed to employees%

these policy statements can provide answers to many 5uestions that might otherwise have to be

referred to supervisors!

&R policy statements and employee handbooks assume the force of a legal contract between

employer and employee! Aust as employers refer to policy statements as a basis for their

personnel actions% employees now cite organi+ational failure to adhere to established policies

as a violation of their rights! (his is not their intended use! #any firms insert a disclaimer or

2



waiver in employee manuals to the effect that the contents of the manual do not constitute a

contract! (he disclaimer should be prominently placed% not buried in a footnote! :ording the

manual carefully ,avoiding alwaysQ and never%Q for e4ample-% using a conversational tone

rather than legalistic jargon% and having an outside labor counsel check the manual can help in

avoiding problems!

Proce"ures

&R procedures serve to implement policies by prescribing the chronological se5uence of steps

to follow in carrying out the policies! Procedures relating to employee selection% for e4ample%

might provide that individuals first be re5uired to complete an application form% followed by an

interview with an &R office representative!

HR proce"ures

Nrievances% promotions% transfers% and wage adjustments likewise must be administered

according to established procedure in order to avoid problems resulting from oversights! ;or

e4ample% as a step in the disciplinary procedure% the failure to give an employee written

warning of a violation might prevent the organi+ation from discharging the employee for a

second violation!

&R procedures% like &R policies% must be treated as means to an end% not as ends in

themselves! :hen organi+ations become bureaucratic% complaints may be raised about

e4cessive red tape% infle4ibility% and impersonality in making &R decisions! Unfortunately%

when procedures become too detailed or numerous% they can impair rather than further the

interests of the organi+ation and its employees! (o avoid this ha+ard% procedures must be

reviewed periodically and modified to meet changing conditions!

Hu$# Resources I#&or$t!o# S*stes

Cffective &R# re5uires an &R information system ,&RI)- to provide current and accurate

data for purposes of control and decision making! (he system is composed of procedures%

e5uipment% information% methods to compile and evaluate information% the people who use the

information% and information management!

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HR bu"7et

:hile a firm8s selection policy may be to hire only fully 5ualified applicants to fill vacancies%

its ability to observe this policy will depend on whether it budgets enough money to screen

applicants carefully! )ecuring ade5uate funds for the &R budget further re5uires the &R staff to

be able to convince top management that the &R program is cost/effective and is producing

results!

E1$%u$t!#7 t'e Hu$# Resources Pro7r$

Aust as financial audits are conducted% audits or evaluations of the &R# program should be

conducted periodically to assure that its objectives are being accomplished! 'udits typically

involve analy+ing data relative to the program% including employee turnover% grievances%

absences% accidents% and similar indicators! )pecial attention is usually given to assessing

compliance with laws and regulations governing various specific areas such as e5ual

employment opportunity and safety and health! ' comprehensive audit should encompass all

aspects of the &R function! (his audit should be performed by both the &R department and the

operating and line managers!

T'e Hu$# Resources Dep$rte#t

(he &R manager is assuming a greater role in top/management planning and decision making!

(his trend reflects a growing awareness of the contributions that &R# can make to the success

of the firm! 'lthough managerial personnel at all levels are engaged in &R# activities% the top

manager of the &R department has the primary responsibility for developing a program that

wilt help the organi+ation to meet its &R# objectives!

Respo#s!b!%!t!es o& t'e Hu$# Resources M$#$7er

Novernment legislation and court decisions have had a major influence on &R policies and

practices! #ore recently% concern for productivity improvement% employee desires for

balancing family and job demands% and desire of workers for more e5uitable treatment have

added to the responsibilities of the &R manager! (hese influences have thus re5uired &R

managers not only to be more knowledgeable about many issues but also to be more versatile

in handling several activities!

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(he major activities for which an &R manager is typically responsible are as follows=

1! Policy initiation and formulation! (he &R manager generally proposes and drafts new

policies or policy revisions to cover recurring problems or prevent anticipated problems!

Ordinarily% these are proposed to the senior e4ecutives of the organi+ation% who actually

issue the policy!

"! 'dvice! (he &R manager generally counsels and advises line managers! (he &R staff is

e4pected to be fully familiar with &R policy% labor agreements% past practices% and the

needs and welfare of both the organi+ation and the employees in order to develop sound

solutions to problems!

! )ervice! (he &R manager generally engages in activities such as recruiting% selection%

testing% planning of training programs% and hearing employee concerns and complaints!

2! .ontrol! (he &R manager generally monitors performance of line departments and other

staff departments to ensure conformity with established &R policy% procedures% and

practice!

(he &R manager8s authority in carrying out these activities is restricted to staff authority

,policy initiation and formulation and advice giving- and functional authority ,service and

control-! :ithin the scope of functional authority% the &R manager generally has the right and

is e4pected to issue policies and procedures for &R functions//i!e!% selection% training%

performance evaluation% and so on//throughout an organi+ation! (he only line authority the &R

manager has is over subordinates in his or her department!

I#/House Co#su%t$#ts

' major contribution that the &R department staff can make to the organi+ation is to serve as

in/house consultants to the managers and supervisors of other departments! 'lerting top

management to contemporary issues and changes within society that affect the organi+ation is

also an important responsibility! .losely related is the responsibility of monitoring new

<



Dep$rte#t Or7$#!8$t!o#

In a small firm the &R department may consist only of a manager and a few assistants! In a

larger firm many additional staff members may be re5uired! Increased si+e eventually leads to

the establishment of departmental units! (he most common departments are=

• &R Planning

• Aob Re5uirements

• Recruitment

• )election

• 'ffirmative 'ction

• (raining

• .areer Development

• Performance 'ppraisal

• .ompensation

• ?enefits

• )afety and &ealth

• *abor Relations

HRM IN THE FUTURE

During the 1Fs &R# has been in the throes of a radical transformation! (he &R function is

being transformed into a significant management function! :here &R departments fail to

recogni+e their responsibilities to become vital members of the management team% line

managers are reaching out to take control and ownership of the various &R functions! 'lthough

line managers need an understanding of &R#% the technical aspects should be delegated to

professional &R staffs! *ooking ahead% both line and &R e4ecutives agree that a proactive and

strategically oriented &R function will be critical! (here is a need for dramatic changes from

centrali+ed and functionally organi+ed &R units to more fle4ible and decentrali+ed units! (his

will necessitate more supervisory involvement in &R activities! (here will likely be is a new

role model for the &R department and its function! (he future will support the concept of

shared responsibilities between line managers and &R managers! (he single greatest attribute

of the &R staff will be the ability to educate and influence line managers on &R issues!

In 1B% a study prepared for the )ociety for &uman Resource #anagement was conducted to

determine what pressures organi+ations face today% what they must do to remain competitive%

what the role of &R is in providing a competitive advantage% and how this role is changing! '

leading 5uestion in the survey was :hat distinguishes superior &R performance from average

performanceJQ (he study found a clear link between an organi+ation8s level of success and the

<<



effectiveness of its &R leadership! During the course of the study more than twenty .COs and

more than fifty practitioners participated in determining the role they e4pect &R to play in

meeting competitive and organi+ational challenges! (his information was used to create the

)enior/*evel &R .ompetency #odel shown below! (he purpose of this model is to define and

describe the competencies re5uired of superior &R leaders from the perspective of both .COs

and &R practitioners! )tudy the individual competencies within each of the five clusters= goal

and action management% functional and organi+ational leadership% influence management%

business knowledge% and &R technical proficiency! :hile the &R competency model was

prepared as guidance for &R leaders and those who aspire to such positions% the knowledge

and skills within the individual clusters can be used as a guide by anyone who wishes to

succeed in a work organi+ation or as an entrepreneur!

COMPETENCY CLUSTERS AND INDIVIDUAL COMPETENCIES

<>

SENIOR LEVEL

HR

COMPETENCY

MODEL

NO'* '0D '.(IO0#'0'NC#C0(

Cfficiency orientationProactivity.oncern with impactDecisiveness

;U0.(IO0'* '0D

ORN'0IS'(IO0'**C'DCR)&IP

Developing othersNroup management skills;unctional marketing*eading through visionIntegrity

(C.&0I.'*PRO;I.IC0.H

&R planning% selection andPlacement

(raining and developmentCmployee and labor relations.ompensation and benefits&ealth% safety% and securityPersonnel researchOrgani+ational development &RI) I0;*UC0.C

#'0'NC#C0(

Perceptual objectivity

.oalitionnetwork building

.ommunication process skills

0egotiation skills

?U)I0C))

L0O:*CDNC

)trategic focusOrgani+ational awarenessIndustry knowledge$alue/added perspectiveNeneral management skills



RECRUITMENT

Recruiting refers to these sets of activities an organi+ation uses to attract job candidates

processing the appropriate characteristics to help the organi+ations reach its objectives!

'ccording to ?yras and Rue% Recruitment involves seeking and attracting a pool of people

from which 5ualified candidates for job vacancies can be chosenQ!

SU) SYSTEMS OF RECRUITMENT+

• ;inding out and developing the sources where the re5uired number and kind of

employees are ,will- be available!

• Developing suitable techni5ues to attract the desirable conditions!

• Cmploying the techni5ues to attract candidates% and

• )timulating as many candidates as possible and making them to apply for jobs

irrespective of number of candidates re5uired!

FUNCTIONS OF RECRUITMENT+

• Organi+ational policy regarding of filling up of certain percentage of vacancies by

internal candidates!

• *ocal candidates ,sons of soil-

• Influence of trade unions!

• Novernment regulations reservations of certain number of vacancies to candidates

based on community! ,Region% caste% se4-

• Influence of recommendations% nepotism etc!

INTERNAL FACTORS OF OTHER ACTIVITY OF RECRUITMENT+

• :orking conditions

• Promotional opportunities!

• )alary levels% type and e4tent of benefits!

• Image of the organi+ation!

• Other personal policies and practices!

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• 'bility and skill of management to stimulate the candidates!

E>TERNAL FACTORS+

• Personnel policies and practices of various organi+ations regarding working conditions%

salary% benefits% promotional opportunities% employee relations!

• .areer opportunities in the organi+ations!

• Novernment regulations! &owever formulating sound process can minimi+e the degree

of comple4ity function!

RECRUITMENT POLICY+

• Recruitment policy of any organi+ation is derived from the personnel policy of the

same organi+ation!

• Novernment policies!

• Personnel policies of other competing organi+ations9

• Organi+ational personnel policies!

• Recruitment sources!

• Recruitment needs!

• Recruitment cost!

• )election criteria and preference etc!

T'e recru!te#t process ust &o%%o( $ #o o& steps+

• Defining the job!

• Cstablishing the person profile!

• #aking the vacancy known!

• Receiving and documenting applications!

• Designing and using the application form!

• )electing!

• Induction!

<B



EMPLOYEE RE?UISITION+

(he recruitment process is triggered with the receipt of the re5uisition form from the

department which wants a position to be filled up! (he re5uisition form should contain a brief

description of the post% 5ualifications and e4perience re5uired the reason for recruitment%

which are new vacancy or replacement and the sanction for the post! (he signature of the

re5uisitioning authority important% particularly in large organi+ations to intimate the personnel

department that an employee is re5uired in a particular job! Receipt of the employee re5uisition

is the official authori+ation for the personnel department to start up selection procedures!

JO) SPECIFICATIONS AND JO) DESCRIPTIONS+

Once the employee re5uisition has been sent and duly received% the representative of the

personnel department and the manager who sent the re5uisition must review the job

descriptions and job specifications contained in the re5uisition so that both have clear and up/

to/date information regarding the duties of the job and the specific% desired 5ualifications! Aob

specifications and job descriptions are essential components of effective selection! (hese

devices provide the personnel function with a clear perspective of the vacancy that is re5uired

to be filled and the 5ualifications that the new recruit must posses!

SOURCES OF RECRUITMENT+

Once the organi+ation has decided it needs additional employees% it has the option of looking at

two sources of applicants E InternalQ and C4ternalQ! :hile recruiting internally% the firm may

look at present employees% friendsrelatives of employees% former employees and also former

applicants! 'gain% promotions% demotions% and transfers can also provide personnel among

which to choose from!

$4 A"1ert!see#t+

(his is a mode of generating applications% which is fre5uently used! $arious media are

employed% the most common of which are the daily newspapers! Organi+ations also advertise

for personnel in trade and professional publicationsjournals as on billboards% radio% ($ and

general maga+ines! (he advertisement should be specific and include sufficient detail! :hen

using recruitment advertisements% employers should ask four key 5uestions=

<



1! :hat do we want to accomplishJ

"! :ho are the people we want to reachJ

! :hat should the advertising message conveyJ

2! &ow should the message be presentedJ

' well thought out and planned advertisement for an appointment reduces appreciably the

labour and time subse5uently re5uired to be put in! a good% carefully drafted advertisement can

also help in building the image of an organi+ation since very often% potential candidates are

first introduced to the company through advertisements in the media!

b4 Ep%o*e#t $7e#c!es+

1- Public agency "- Private agency

Cmployment e4changes% with branches in most cities% are a good source for generating

applications! (hey are mainly concerned with the registration of job seekers and their

placement in notified vacancies9 studies have shown that employment e4changes have been

very useful in placement of workers particularly blue/collar% white/collar% craft and technical

workers! ?esides public employment e4change% there are also several private agencies charging

fees and speciali+ing in providing specific types of personnel generally at supervisory and

higher levels! (heir principal function is to furnish a list of suitable candidates for prospective

employers from their databank! ' current trend that has developed is for these agencies to

recruit on behalf of an organi+ation without disclosing the identity of that organi+ation! (hey

go as far as short/listing the candidates for the organi+ation which then makes its final choice!

In some cases% a representative of the employment agency may even sit on the panel% which

makes the final selection! ;or the organi+ation% there is a two/ fold advantage to be derived

from the use of these private employment agencies!

On the one hand% in terms of cost% this may be a cheaper alternative than doing it oneself! (he

time and man hours saved in processing% short/listing% and completing other formalities could

be otherwise utili+ed! On the other% unto certain point% the organi+ation8s identity remains

>F



unknown! It is% therefore% able to avoid the inconveniences of receiving and answering letters

and phone calls% issuing clarifications% being pressuri+ed% etc!

c4 O# c$pus recru!te#t+

.ampus recruitment has been a large/scale operation for many companies all over the world

for 5uite some time now! :ithin many such campuses themselves% regular placement services

have developed! (hese placement services give opportunity for students and employees to meet

and discuss potential hiring! Organi+ations usually send an employee or a small team of

employees to a campus to interview candidates and describe the organi+ation to them!

.oinciding with such visits% organi+ations take the opportunity to distribute brochures and

other literature to spread awareness and build company image! Representatives of the

organi+ation also meet the teaching faculty to get an idea of course content and curriculum as

well as the track record of students! #any firms actually issue appointment letters after

conducting interviews! #any invite chosen candidates to make a site visit to the company

head5uarters where they are given appointment letter after some further testing or observation!

;or students coming out of educational institutions% this form of recruitment is very convenient

and satisfying! ;or employers% it saves a great deal of time and processing costs and they get

access to a large number of bright% young people at one place from among whom they can

choose and with whom interviews can be fi4ed at short notice!

"4 Deput$t!o#+

(his is the system of loaning an employee to another organi+ation for a duration that ranges

normally between and < years! )ince the person possesses certain abilities useful to another

organi+ation% he is deputed to it for a specified duration! Deputation is a fairly common method

of recruitment in public sector organi+ations and government agencies! Its e5uivalent in the

private sector could be said to take place when an employee is sent from one unit of the same

group to another for a short period on the understanding that on completion of his term% he will

return to his parent unit!

e4 Ep%o*ee recoe#"$t!o#s+

>1



In this recruiting is done by taking referrals from the employees of that organi+ation! 'n

employee recommendation is widely followed in many organi+ations!

&4 Tr$"e $#" copet!t!1e sources+

#any professional societies and other trade associations publish

journalsnewslettersmaga+ines which contain advertisements for job openings! )uch

publications are often a good source for filling certain professional and technical positions!

74 6$%:/!#s+

:here there are organi+ations there are also people applying to them for jobs almost

continuously! (here is no reason to assume that none of these will be suitable! :hen their bio/

data or curriculum vitae are stored and scanned% often with the help of a computer% some of

them could as well be found suitable for the recruitment! .hoices made among such casual

applicants are called 7:'*L/I0)8!

Over the years% there has also evolved a system of walk in interviewsQ where a target group is

identified and encouraged to approach the recruiting department of an organi+ation with their

bio/data on specified dates between specified times!

INTERNAL SOURCES+

a- Present permanent employees!

b- Present temporary or casual employees

c- Retrenched or retired employees!

d- Dependence of diseased% disabled retired and present employees!

(he organi+ations prefer for internal source since it is a techni5ue of motivation% moral of

employees can be improved! Internal candidate can be judged better than e4ternal candidates!

.ost of selection% training% induction% period of adoptability minimi+ed! (rade Unions can be

satisfied!

E>TERNAL SOURCES+

>"



1! (he suitable candidate8s knowledge% talent etc are generally available!

"! .andidates can be selected with out any pre/ conceived notion or reservations!

! .ost of employees can be minimi+ed because employees selected from this source are

generally placed in minimum pat scale!

2! C4pertise% e4cellence and e4perience in other organi+ations can be easily brought into the

organi+ation!

<! C4isting will also broaden their personality!

>! *ong/run benefit to the organi+ation in the sense that 5ualitative human resources can be

brought!

E>TERNAL SOURCES INCLUDED+

1! Cducational and training institutes!

"! Private employment agencies ,consultants-!

! Public employment e4changes!

2! Professional 'ssociations!

<! Data banks!

>! .asual applicants!

@! )imilar organi+ations!

B! (rade Unions!

RECRUITMENT TECHNI?UES+

• Promotions!

• (ransfers!

• Recommendations of the present employees!

• )couting!

• 'dvertising!

>



SELECTION+

(he most valuable asset of any large/scale organi+ation is the high/caliber personnel! Nood

morale and motivation bind the employees together and breed enthusiasm and goodwill in

them% leading to better output an important part of personnel selection% therefore% is to make

reasonably sure that the person appointed to any position is interested in the work he has to do!

(he ac5uisition of new employees is the most important and comple4 test! (o find and employ

the best individuals available is every personnel manager8s goal!

One of the important aspects in personnel selection is individual difference! Individuals differ

in their ability to perform the different types of activities! (hey differ the different types of

activities! (hey differ in their physical characteristics% intelligence and intellectual aptitudes% in

interests! In temperaments% and in characteristics% intelligence and intellectual aptitudes% in

interests! In temperaments% and in character! (hese differences in the individuals are to a large

e4tent uncorrelated! ?ecause of these large e4tent uncorrelated! ?ecause of these large

differences in human abilities% the problem of proper selection becomes a very important one

for modern industry!

:hen an organi+ation gets application from more candidates than the actual re5uirement the

organi+ation has to device methods through which it can divide this application into catenaries

those who will be offered employment and those who will not offer for the employment! )ince%

more candidates will be rejected than those hired through this process! (his is also called as the

process RejectionQ!

Se%ect!o# o& ep%o*ee p%$*s 1er* !port$#t !# t'e or7$#!8$t!o#+

SELECTION POLICY+

:hen formulating the selection policy% due consideration should be given to organi+ational

re5uirements as well as technical and professional dimensions of selection procedures!

SELECTION PROCESS 3OR4 PROCEDURE+

>2



)election process involves a number of steps9 the basic idea is to select ma4imum possible

information about the candidates to ascertain they8re suitable for employment!

,a- Initial ,or- preliminary interview!

,b- 'pplication blank ,or- blanks!

,c- .heck of references!

,d- Psychological interview!

,e- Cmployment interview!

,f- 'pproval by the supervisor!

,g- Physical e4amination!

,h- Induction ,or- orientation!

$4 Pre%!!#$r* !#ter1!e(+

(he more non/selective the recruitment program% the more likely it is that a preliminary

interview will be re5uired! (his initial interview is usually 5uite short and has as its object the

elimination the obviously un5ualified! It the applicant appears to have some chance to

5ualifying for e4isting job openings% he ,or- she is given the application blank to complete!

b4 App%!c$t!o# b%$#:+

'n application is a brief history sheet of an employee8s background and can be used for feature

reference% in case of need! In a nutshell% an application blank should be complete enough to

relive the interviewer of the burden of recording considerable factual data!

c4 C'ec: o& Re&ere#ce+

(he case of reference is common in most selection procedures% for it involves only a little and money%

and minimum of effort check on references are made by mail ,or- telephone and occasionally in

person% ,or- by using a reference form!

"4 Ps*c'o%o7!c$% Test+

(he ne4t step in the procedure outline above is that of testing! In all organi+ations% large and small% are

considered! It is apparent that most are not using psychological tests! #ost of the larger companies that

><



can afford to have a more detailed and accurate selection procedure do utili+e some form of

employment testing!

e4 I#ter1!e(!#7+

Interviewing is probably the most widely used single method of selection! ' substantial amount of

subjectivity% and therefore% unreliability% is to be e4pected from interviewing when used as a tool of

evaluation! (he interview consists of interaction between interviewer and applicant! If handled

properly% it can be a powerful techni5ue in achieving accurate information! Interviews are of 2 types=

,a- Preliminary interview ,b- )tress interview

,c- Depth interview ,d- Patterned interview!

&4 Appro1$% b* t'e super1!sor+

In e4ecuting the personal unit screening functions% the emphasis tends to be more on formal

5ualifications and general suitability when the supervisor takes over% the emphasis tends to switch

towards more specifically job oriented worker characteristics such as (raining and relevant past

e4perience!

74 P'*s!c$% E$!#$t!o#+

(he physical e4amination is an employment step found in most business! It can vary from a very

comprehensive e4amination and matching of an applicant8s physical capabilities to job re5uirement!

(o a simple check of general physical appearance and well/being! In the selection procedure the

physical e4amination has at least three basic objectives! ;irst% it serves to ascertain the applicant8s

physical capabilities! (he second objective of the e4amination is to project the company against

unwarranted claims under worker8s compensation laws% ,or- against lawsuits for damages! 'nd the

final objective is to prevent communicable diseases from entering the organi+ation!

'4 I#"uct!o#+

Induction is concerned with the problem of introducing ,or- orienting a new employee to the

organi+ation!

>>



I#ter1!e(+

(he interview is the heart of the employment process! (he personal interview% along with the

application blank continues to be used by almost every employer! Interviewing is considered to be the

most useful selection method! (he interview is a conversation with a purpose! Its aim is to provide the

candidate with information about the job and the company and also to give the candidate a favorable

impression of the company! (here are three purposes that may be served obtain information% giving

information and motivation!

(here are several techni5ues in the interviews such as=

,a- Preliminary interview

,b- Patterned interview

,c- 0on/directive interview

,d- )tress interview

,e- Depth interview

,f- Nroup interview

,g- Panel interview

>@



>B



@9 DATA ANALYSIS AND INTERPRETATIONS

.9 Recru!te#t po%!c* o& ATS P1t Lt"

a- 'dvertising in 0ewspaper

b- 'dvertising in Cmployment 0ewspaper

c- (elevision Radio

d- .ampus Interview

e- Internet

;ig= Recruitment policy of '() Pvt *td

I#terpret$t!o#+

;rom the above diagram the Recruitment policy of '() Pvt *td is to recruit <<M by

Cmployment 0ewspaper 'ds% 2FM by 0ewspaper 'ds <M by .ampus interviews!

>



,9 Ho( "!" *ou coe to :#o( $bout t'e 1$c$#c!es !# ATS P1t Lt" Pr!1$te

L!!te";

a- 0ewspaper

b- Cmployment 0ewspaper

c- Cmployment C4change

d- Others

I#terpret$t!o#+

;rom the above diagram it is clear that 2@M of the '() Pvt *td employees came to know about

the vacancies by seeing Cmployment 0ewspaper 'ds "M through Cmployment C4change!

B9 Ho( (ere *ou recru!te";

@F



a- direct Recruitment

b- )creening by a written test

c- )creening by an interview

d- )creening by both a written test and interview

I#terpret$t!o#+

;rom the above diagram it is clear that B@M of the '() Pvt *td employees got recruited

through written test interview% <M by Direct Recruitment #ethod!

@1



@9 Ho( *ou $re s'ort %!ste"; )$se" o#;

a! C4perience

b! Gualification

c! Performance in interview

d! 'ny other aptitude test

I#terpret$t!o#+

;rom the above diagram it is clear that 2"M of the '() Pvt *td employees got short listed

based on interview performance 1FM based on C4perience!

@"



4 6'$t $ccor"!#7 to *ou $re t'e se%ect!o# cr!ter!$ o& ATS P1t Lt" Pr!1$te L!!te";

a! Gualification

b! C4perience

c! Personal relationship

d! )kills and knowledge

I#terpret$t!o#+

;rom the above diagram it is clear that <@M of the '() Pvt *td employees got selected based

on )kills Lnowledge and "FM based on e4perience!

@2



9 A&ter se%ect!o# 'o( uc' t!e "!" t'e* t$:e to p%$ce *ou;

a!Immediately

b! One month

c!(wo months

d! #ore than two months

I#terpret$t!o#+

;rom the above diagram it is clear that @M of the '() Pvt *td employees got placed after two

months of being selected "FM got placed immediately!

@<



4 Do *ou &$1or Reser1$t!o# s*ste;

a! Hes

b! 0o

I#terpret$t!o#+

;rom the above graph it is clear that 2FM of the '() Pvt *td employees are in favour of

Reservation )ystem!

@>



4 Is t'ere Prob$t!o#$r* )$#" re1!e( per!o";

a- Hes

b- 0o

I#terpret$t!o#+

;rom the above graph it is clear that "!<M of the '() Pvt *td employees are aware of

Probationary Review Periods!

@@



.-4 Are t'ere I#"uct!o# &$c!%!t!es;

a- Hes

b- 0o

I#terpret$t!o#+

;rom the above graph it is clear that <M of the '() Pvt *td employees are aware of Induction

facilities!

@B



..4 Ho( (!%% *ou s'ort%!st;

a- C4perience

b- Gualification

c- Performance in interview

d- 'ny other 'ptitude test

I#terpret$t!o#+

;orm the above graph it is clear that <FM of '() Pvt *td employees are short listed by

e4perience and @!<M by other ways!

@



.,4 6'$t $ccor"!#7 to *ou s'ou%" be 7!1e# !port$#ce &or $# !#ter1!e(;

a- .ommunication )kills

b- )ubject knowledge

c- Physical appearance

d- 'll the above

I#terpret$t!o#+

;rom the above graph it is clear that <<M of '() Pvt *td employees are recruited based on

subject knowledge and @!<M by physical appearance!

BF



.B4 Are t'e op!#!o#s re7$r"!#7 t'e recru!te#t process $re t$:e# &ro t'e $pp%!c$#ts;

a- Hes

b- 0o

I#terpret$t!o#+

;rom the above graph it shows that @<M employees do not take give opinions regarding the

recruitment process!

B1



.@4 I# se%ect!o# proce"ure t'e (e!7't$7e !s 7!1e# &or '!s p$st eper!e#ce < $c'!e1ee#t;

a- Hes

b- 0o

I#terpret$t!o#+

;rom the above graph it shows that @FM weightage is given for his past e4perience

achievement!

B"



.4 Do t'e recru!te#t < se%ect!o# proce"ures c'$#7e $%o#7 (!t' t'e c'$#7!#7 t!es;

a- Hes

b- 0o

I#terpret$t!o#+

;orm the above graph it shows that >"!<M employees of '() Pvt *td agree the change in

recruitment and selection procedures along with the changing times!

B



.4 6'et'er t'e &res'er (!t' reu!re" s:!%%s < c$p$b!%!t!es $re recru!te";

a- Hes

b- 0o

I#terpret$t!o#+

;rom the above graph it shows that <<M employees of '() Pvt *td agreed that the fresher with

re5uired skills and capabilities are recruited!

B2



.4 Is ore (e!7't$7e 7!1e# &or !#ter#$% recru!te#t;

a- Hes

b- 0o

I#terpret$t!o#+

;rom the above graph it shows that @<M of '() Pvt *td employees with the internal

recruitment!

B<



.4 6'et'er t'e su77est!o#s so obt$!#e" $re co#s!"ere" &or t'e re&or!#7 t'e se%ect!o#

process;

a- Hes

b- 0o

I#terpret$t!o#+

;rom the above graph it shows that ><M of '() Pvt *td employees are considering for the

reforming the selection process!

B>



.4 Ho( (ere *ou recru!te";

a- Direct Recruitment

b- )creening by an written test

c- )creening by an interview

d- )creening by both written test interview

I#terpret$t!o#+

;rom the above graph it shows that <<M of employees were recruited by written test and

interview% 1FM were recruited by direct recruitment!

B@



BB



9.FINDINGS

1! It is found that '() Pvt *td advertises of its vacancies in employment newspaper and

other widely read newspapers!

"! #ajority of the recruitments are done on the basis of responses to the advertisements

given!

! 'bout FM of the employees get recruited through written test and interviews and the

performance in the interviews is given prior importance and secondary to the

5ualifications and other aptitude tests!

2! (he type of interviews conducted at '() Pvt *td is mostly panel interviews and

personal interviews!

<! )kills and knowledge are given due importance in the selection process!

>! (he time duration between the selection and placement in two to three months!

@! Cmployees of '() Pvt *td are made aware of the probationary and review periods and

also the induction facilities!

B! >FM of the employees of '() Pvt *td do not favor reservation system!

B



9, SUGGESTIONS

1! '() Pvt *td should also give due importance to 5ualifications and e4perience of the

candidates at the time of recruitment!

"! )tress interviews should also be conducted to those who are to be placed in the crucial

position of the organi+ation!

! (he time duration between selection and placement should be reduced so that the

organi+ation does not lose out potential human resources!

2! .ampus interviews also should be done to invite fresh blood with fresh ideas into the

organi+ation!

<! Organi+ation should also adopt methods like group discussions and depth interviews to

find the right personnel!

>! #ore innovative methods of recruitment and selection may be adopted!

F



1



9B CONCLUSION

&R# represents a new concept of and approach to performing personnel functions! It still

re5uires the performance of those personnel functions that have evolved over the years in

response to emerging needs! &owever% instead of treating these functions as separate and

distinct% &R# considers them interrelated parts of a management system that must be

integrated closely with strategic organi+ational planning! &R managers are becoming more

involved in the decision making of top management in a wide variety of issues and problems!

Lnowledge of &R# is important for individuals who will occupy managerial and supervisory

roles% since they will also perform &R functions!

(he present status of &R# was achieved only after years of evolutionary development! During

the nineteenth century the factory system enabled products to be manufactured more cheaply

than before! (he concentration of workers in factories in turn focused public attention on the

need for better working conditions and greater consideration for employee health and safety!

During this period an objective and systematic approach to improving worker efficiency known

as scientific management emerged! ?y the early 1FFs some of the knowledge and research

from the field of psychology was beginning to be applied to the management of personnel!

)ince the late 1"Os severa1 forces have contributed significantly to the &R# movement!

(he &awthorne studies were influential in humani+ing the workplace% and the human relations

movement focused attention on individual differences and informal groups! 's the human

relations movement evolved% it became broader in scope and included the various behavioral

sciences% focusing on the achievement of organi+ational objectives! During this period political

pressures gave rise to government legislation affecting &R# around the world! 0ow there is

increasing speciali+ation of &R functions and an emphasis on strategic management!

"



&R# may be referred to as a profession because it has the following characteristics= ,1- It is

based upon an organi+ed body of knowledge developed through research and e4perimentation%

,"- the knowledge is disseminated through publications and professional meetings% ,-

professional associations promote the professional growth of their members% ,2- various types

of certification allow practitioners to increase their competency% and ,<- the various &R#

professional associations have developed codes of ethics that their members are e4pected to

observe!

' code of ethics focuses attention on ethical values and provides a basis for &R professionals

to evaluate their plans and their actions! &R departments have been given a greater role in

communicating the organi+ation3s values and standards and in monitoring compliance with its

code of ethics! (he principal elements of an &R program are objectives% policies% and pro/

cedures!

&R objectives are determined by the organi+ation8s objectives as a whole! Policies serve to

guide the actions re5uired to achieve these objectives! &R policies must be compatible with

current economic conditions% collective bargaining trends% and laws and regulations at all

levels! &R procedures implement policies by prescribing the steps to follow in carrying out the

policies!

)tatements relating to objectives% policies% and procedures can be meaningful only if they are

supported financially by the budget! It is important that the &R# program be audited

periodically to assure that its objectives are being accomplished! (he &R department is

responsible for initiating and formulating policy9 counseling and advising line managers9

providing services such as recruiting% selection% and planning of training programs9 and

monitoring the performance of line and staff departments to ensure conformity with established

&R policy and procedures!



(he &R manager8s authority in carrying out these activities is restricted to staff authority and

functional authority! &R managers often use the services of outside consultants% and more

recently% they have outsourced some of the &R functions to vendors on a long/term basis!

&R# is in the midst of a radical transformation! *ine managers are reaching out to take control

over the &R functions where &R departments fail to recogni+e their responsibilities!

.omprehensive research studies have shown that a proactive% strategically oriented perspective

is critical! ?oth line and &R e4ecutives support the concept of shared responsibility between

line and &R managers! 'n &R competency model emphasi+es goal and action management%

functional and organi+ational leadership% influence management% business knowledge% and &R

technical proficiency!

I am of the view that there are some short falls in the way of recruitment and procedure of the

selection by the organi+ation! (hose short falls can be compensated by following the above

suggestions! 0ot all employees of '() Pvt *td are considering for the reforming the selection

process! In some instances company should take views from the employees to achieve efficient

and effective results which help in transformation of the organi+ation in the future!

2



5EY TERMS

• ?ehavioral sciences

• .ertification

• &awthorne studies

• &R budget

• &R information system ,&RI)-

• &R objectives

• &R policies

• &R procedures

• &uman relations movement

• &uman resources management

• Outsourcing

• )cientific management

<



>



)I)ILIOGRAPHY

)OO5S+

1! ?ohlander% "FF>% &uman Resource #anagement% 1Fth Cdition% (homson!

"! Dessler Nary% "FF>% &uman Resource #anagement% 1Fth Cdition% Pearson Prentice

&all of India!

! #ondy% "FF@% &uman Resource #anagement% th Cdition% Pearson Cducation!

2! :ayne ;! .ascio "FF>% #anaging &uman Resources% (#&!

<! 'swathappa% "FF>% &uman Resource #anagement% 2th Cdition % (#&!

>! Desimone% "FF@% &uman Resource Development% 1Fth Cdition% (homson!

@! 0oe '!Raymond% Aohn &ollenbeck% ?arry Nerhart and Patrick :right= &uman

Resource #anagement% (ata #cNraw &ill!

B! Decen+o '!David and )tephen Robbins E &uman Resource #anagement% Aohn :iley

)ons!

! Ayothi P! and D0 $enkatesh E "FF>% &uman Resource #anagement% O4ford University

Press!

1F! $)P Rao "FF>% &uman Resource #anagement% (e4t and .ases% C4cel ?ooks!

6E)SITES+

www!adityatrading!in

www!citehr!com

www!google!com

http://www.adityatrading.in/

http://www.citehr.com/

http://www.google.com/

http://www.adityatrading.in/

http://www.citehr.com/

http://www.google.com/

Recruitment and Selection Project - ATS Pvt Ltd

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