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STUDY OF
RECRUITMENT AND SELECTION
AT MARG LIMITED
An Project Report
Submitted in the partial fulfillment of the requirement for the award of the Diploma
in Master of Business Administration
2010-2012
Submitted By: Under the Guidance of:
Nisha Tanwar Mr. Prashant Chauhan
Dy. Manager-HR
Marg Limited
INSTITUTE OF MANAGEMENT TECHNOLOGY
CENTRE FOR DISTANCE LEARNING-GHAZIABAD
BLOSSOMS (FARIDABAD-02)
DECLARATION
This is to certify that I have completed the Project Report titled “Study of Recruitment and
Selection at Marg Limited” under the guidance of Mr. Prashant Chauhan-Dy. Manager-HR
in the partial fulfillment of the requirement for the award of the Diploma in Master of Business
Administration of Institute of Management Technology, Ghaziabad. This is an original piece of
work & I have neither copied nor submitted it earlier elsewhere.
_______________
NISHA TANWAR
PREFACE
During the past three decades the personnel function has witnessed dramatic changes. The
widespread usage of the term human resource management in place of personnel function is itself
symbolic of this change. The HR function has acquired a unique status and reputation in almost
all services sectors including banking, finance, construction, insurance, software, and telecom.
Human is the resource for an organization and therefore, should be managed effectively. A good
human resource forms an asset for an organization and so is the case with the Construction
Industry which is booming and will remain so with the continuation of the development process
especially in the developing countries.
My time at Marg Limited focused on getting a taste on how Recruitment and Selection process is
practically carried out. This report sheds light on the importance of having an effective
Recruitment and Selection Policy, the recent trends that are influencing the recruitment and
selection process of organizations and the challenges that the recruiters face during the hiring
process.
The research methodology is based on both primary data as well as secondary data. An interview
schedule was prepared to gather information on the recruitment and selection policy of the
organization. The universe consists of 4 people from the EPC-Delhi Division of Marg Limited
comprising of 3 members of recruitment department headed by the HR Head. The whole
population was considered for this study.
The major limitation to the study was the possibility of ambiguous replies due to confidentiality
of information. In the end there are few recommendations and suggestions which may benefit the
organization if looked upon seriously.
_______________
NISHA TANWAR
ACKNOWLEDGEMNET
“THANK YOU”. These two words are very less to be measured when it comes to extend my
gratitude towards all those who have made my project - a learning and a memorable experience.
I owe my sincere and whole hearted thanks to Mr. Prashant Chauhan (Dy. Manager–HR) for
providing me an opportunity to carry out my summer training in their prestigious organization
“Marg Limited” and facilitate me with a training which proves to be a valuable source of practical
knowledge. Also, I deeply acknowledge all other members of the organisation, who have shared
their ideas and spared time for accomplishment.
Words cannot express my sincere thanks to Ms. Nidhi Mathur, my project guide from the
institute, for constantly guiding me and tackling variety of hurdles with implicit patience
throughout my project work and infused in me a great inspiration and confidence in taking up this
study in right direction.
I am committed to extend my profound thanks to Mr. S.K. Sharma (Director) for his valuable
guidance and support and the entire faculty of Blossoms under the prestigious
Institute of Management Technology who had been a constant source of guidance throughout my
assignment.
Lastly, I would like to convey my heartiest thanks to my parents and my friends with whose
support and guidance this assignment of mine is successfully accomplished.
NISHA TANWAR
CONTENTS
Preface
Acknowledgement
Contents
Chapter I: Introduction
Industry Overview
Company Profile
Competitors
SWOT Analysis
Chapter II: Research Methodology
Objective of study
Scope and Managerial Usefulness of Study
Research Design and Methodology
Limitations
Chapter III: Theoretical Framework
Concept of Recruitment and Selection
Recruitment v/s Selection
Recruitment and Selection Process
Novel Recruitment Practices
Chapter IV: Recruitment and Selection Process of MARG LIMITED
Chapter V: Data Analysis
Chapter VI: Findings
Chapter VII: Conclusion and Recommendations
Annexure
Bibliography
CHAPTER - I
INTRODUCTION
INTRODUCTION
In today's rapidly changing business environment, organisations have to respond quickly to
requirements for people as human resources are the most important assets of an organisation. The
success or failure of an organisation is largely dependent on the caliber of the people working
therein. Without positive and creative contributions from people, an organisation cannot progress
and prosper. In order to achieve the goals or perform the activities of an organisation, therefore,
there is a need to recruit people with requisite skills, qualifications and experience. While doing
so, one must keep the present as well as the future requirements of the organisation in mind.
Hence, a well-defined recruitment policy helps in effectively executing the process and getting
the best fits for the vacant positions. Selecting the wrong candidate or rejecting the right candidate
could turn out to be costly mistakes for the organisation. Selection is one area where the
interference of external factors is minimal. Hence the HR department can use its discretion in
framing its selection policy and using various selection tools for the best results. Thus it is
importance for organisations to have an effective recruitment and selection policy. The need for a
sound recruitment and selection policy was first realized by Chinese countries ago and Prussia
was the first country in modern time to have evolved a sound recruitment system. In India, the
merit principle has been in existence since 1853.
Recruitment and Selection are the major function of the human resource department. Recruitment
and Selection process involves a systematic procedure from sourcing the candidates to arranging
and conducting the interviews and picking the most suitable candidate who would best meet the
requirements of the job and the organisation, decision making, conveying the decision and the
appointment formalities.
INDUSTRY OVERVIEW
CONSTRUCTION INDUSTRY IN INDIA
Today, India is the second fastest growing economy in the world. The Indian construction
industry, an integral part of the economy and a conduit for a substantial part of its development
investment, is poised for growth on account of industrialization, urbanization, economic
development and people's rising expectations for improved quality of living. The strong emphasis
on infrastructure creation by the Central and the State Governments has brought about a sustained
inflow of orders for infrastructure development and construction companies over past couple of
years.
INDUSTRY SEGMENTS
REAL ESTATE : Residential (Housing & Development), Industrial (Industrial Parks,
Factories, Plants, etc.), Corporate (Office, Research Centers), Commercial (Retail: Malls,
Shops, Showrooms; Hotels; etc.)
INFRASTRUCTURE : Roads, Railways, Urban infrastructure (improved housing, water-
supply and sanitation, schools, universities, health and security, etc.), Ports, Airports,
Power
BOOMING OPPORTUNITIES IN INDIA
There are a lot of opportunities that are sprouting up for the construction sector. Some of these are
as follows:
Residential houses for growing middle class population
Water supply and sanitation projects
Projects to develop Special Economic Zones
Power Plants to provide reliable, affordable and quality power to all users
The "Sagar Mala" project for expansion and modernization of ports, inland navigation and
maritime transport
Projects to develop Special Bio-Technology Parks and IT Parks
COMPANY PROFILE
MARG GROUP
Marg Group of Companies, headquartered in Chennai, is promoted by Mr. G.R.K. Reddy, a civil
engineering professional, with almost three decades of experience in the infrastructure business.
Marg Ltd is 18-year-old world class engineering, construction and services conglomerate. The
Marg Group comprises of 5 dynamic companies – Marg Foundation, Karaikal Port, Marg
Swarnabhoomi, Marg Properties, Marg Junction, each of them armed with a vision to become the
first amongst equals.
Having successfully completed over 200+ projects within the scheduled time-frame and with the
best of quality, the Group is now marching ahead with a strong order book position of another
200 ongoing projects.
MARG GROUP – VISION!!!!!
“Big dreams rooted in practicality is what helps us translate our dreams into reality. We are
conscious of the fact that every project we deliver has an obvious impact on the economy,
infrastructure and society. We believe ours is a never ending journey of innovation and learning
and the body of knowledge from each project we work on is invaluable in our evolution”
GROUP BUSINESS PORTFOLIO
MARG FOUNDATION
MARG PROPERTIES
MARG SWARNABHOOMI
MARG JUNCTION
MARG KARAIKAL PORT
MARG GROUP OF COMPANIE
S
MARG FOUNDATION
(EPC - MARG FOUNDATION)
MARG Foundation India, MARG’s EPC division provides integrated turnkey solutions. Its range
of services include integrated design, engineering, material procurement, field services and
construction & project management services for infrastructure sector and real estate projects.
MARG Foundation India is poised to be the growth engine of the MARG Group. Some of its
large external customers include Government of Puducherry, Petronet, Alstom, Asian Wind
Turbines, Assotech Ltd, BHEL, Daslagerway Wind Turbines Ltd, L&T and Enercon India (P) Ltd
etc.
MARG KARAIKAL PORT
(MARINE INFRASTRUCTURE & SERVICES)
MARG Karaikal Port is a premier, hi-tech, all weather port on the South East coast of India.
Karaikal Port has a sizable primary hinterland because of its strategic location. It is the only all
weather, deep water, multi-commodity port between Chennai port and Tuticorin port and is
strategically located at the middle of this 680 km coastline.
MARG SWARNABHOOMI
(URBAN & INDUSTRIAL INFRASTRUCTURE)
MARG Swarnabhoomi, christened as the “Land of New Thinking”, is the campus of education,
research, innovation, industry and living. Located on scenic East Coast Road (ECR), mid-way
between Chennai and Puducherry, it has proximity to the Auto & Electronic industrial belts of the
nation. This strategic ECR stretch is “the growth corridor” of the future and being close to
Chennai, has access to world class academia. It is also well connected via road, rail & airport and
unlike other industrial clusters, it has all the facilities to foster business. Away from common din
of the cities, located at scenic backwaters of ECR, the city is planned in such a way that it
harmonizes with nature and offers scenic tranquility and peacefulness to uplift human mind and
soul.
MARG PROPERTIES
REAL ESTATE - RESIDENTIAL
MARG ProperTies, the residential arm of the infrastructure major MARG, is one of the leading
real estate developers in Chennai that offer homes to all segments, viz Affordable homes, Urban
smart homes, integrated townships and Ultra luxury homes. Delivering the “Right Product” with
the “Right Value” to a wide segment of consumers has always been the brand promise of MARG
ProperTies.
MARG JUNCTION
REAL ESTATE - COMMERCIAL
The state-of-the-art MARG Junction Mall is slated to be South Chennai's biggest retail
opportunity for business, leisure and entertainment. Opening in 2013 on the strategic IT corridor
and spread over 1.83 million sq. ft., this mall on the bustling OMR will be Chennai's largest
'mixed use' development comprising of a 5 star hotel by Shangri-La. MARG Junction mall is
planned as a 'social asset' with a unique Chennai DNA.
Providing the best in 'comfort , convenience & entertainment' , MARG Junction Mall will have a
1000 seater food court, 6 fine dining restaurants, a 14,000 sq ft. double height EGA Gaming
World, 16 lane international bowling alley and a 9 screen-2000 seater multiplex.
MARG LIMITED
Marg Limited incorporated in the year 1994 is the flagship company of the Marg Group of
Companies, which stands out as one of the few fully integrated infrastructure development
companies with a diverse presence across various sectors in the industry.
MARG Group is one of India's fastest growing infrastructure organizations - undertaking holistic
regional development, unlocking economic prosperity and creating inclusive & sustainable
growth models. The organization has embarked on an innovation led development, on the canvas
of new sustainable India that few have attempted. Listed by Dun & Bradstreet as among
"India's Top 500 Companies 2011", MARG Group has projects worth more than Rs. 3400
crores under execution, a seasoned human capital of more than 1100, global partners in the Infra
space and offices spread across India, Singapore and China.
Extensively awarded for 'Corporate Social Responsibility initiatives', MARG Parivarthan - the
MARG CSR brand complements the above business verticals.
MARG Limited (BSE: 530543) is listed on the Bombay Stock Exchange and its shares are traded
on the NSE under the category of 'Permitted Security'.
BUSINESS OVERVIEW
HIGHLY PROFESSIONAL APPROACH
At Marg, business relationships are valued and thus they have adopted a professional approach
towards them with core principles that underpin how to work with their partners.
Thus the approach adopted is motivated by qualified & experienced professionals, modern &
latest equipment, all company-owned, adaptability of latest and mechanized methodology, holistic
approach, creativity and hi-tech solution, quality, safety & environment management systems and
backward and forward integration to other sister units of the group to optimize costs.
MODERN EQUIPMENT
High-end tools and equipment for construction work boosts the Division’s capability to execute
projects with speed & quality. Thus, time and again, the Division takes the effort to invest in
modern tools and equipments. These tools and equipment include:
Pile driving
Mass concreting
Welding of rails
Support making with in-house facility
Large size steel structural work
The parent company has a separate & specialized Equipment Management Division engaged in
the business of leasing world-class equipment and machinery to the infrastructure development
industry. The in-house availability of sophisticated & contemporary high-end machinery in turn
lends tremendous strength to and provides a distinct advantage in the quality of construction and
execution of projects.
COMPETITIVE STRATEGY
A winning competitive strategy is founded on consistently understanding and predicting
changing market conditions and customer needs. The measures that have helped the organisation
in designing their competitive strategy are in-house competencies thereby reducing quantum of
work outsourced to the minimal, Competitive Pricing, Optimum use of in-house resources and
On-time delivery schedule.
SOUND FINANCIAL BACKGROUND
Growth in business has to be accompanied by sound financial management and controls.
Marg’s impeccable track record of over two decades stands testament to the sound financial
background which is further vindicated in the company’s robust year- on- year growth for the past
five years accompanied by timely financial closure and good profitability levels.
STRONG MANPOWER
The organisation realizes that experienced and committed manpower is their asset and thus make
elaborate efforts to identify, retain and enhance skilled workers. While bidding for the project,
end customers are becoming increasingly concerned about finding providers that have a high level
of technical expertise in house. Their technical team has helped them execute some challenging
projects resulting in their customers being content with the project outcome.
KEY PROJECTS
ONGOING PROJECTS
AEVP-VRINDAVAN YOJNA-1
Braithwate & Co. Limited (BCL-KOLKATA)
Bharat Heavy Electricals Limited (BHEL-JAGDISHPUR)
Directorate General of Married Accommodation Project (DGMAP-AGRA-411PFC)
Directorate General of Married Accommodation Project (DGMAP-AGRA-AIRFORCE)
Directorate General of Married Accommodation Project (DGMAP-AGRA-AMAR
SINGH CAMP)
Directorate General of Married Accommodation Project (DGMAP-AGRA-
BHARATPUR LINE)
Construction of Test Research Laboratory (HSCC-DWARKA)
Haryana Urban Development Authority (HUDA- REWARI)
Lucknow Development Authority (LDA-1-JANKIPURAM)
Lucknow Development Authority (LDA-1-JANKIPURAM)
Military Engineer Services (MES-RR HOSPITAL-DHAULA KUAN)
Military Engineer Services (MES-PALAM)
National Buildings Construction Corporation (NBCC-CHANAKYAPURI)
National Buildings Construction Corporation (NBCC-DWARKA)
National Capital Region (NCR-JHANSI)
COMPETITORS
JAIPRAKASH ASSOCIATES LIMITED
Jaiprakash Associates Ltd., the flagship company of the Jaypee Group, is a leader in Construction
of river valley and hydropower projects on turnkey basis for more than 4 decades. The company
is currently executing various projects in hydropower, irrigation and other infrastructure fields
and has had the distinction of executing simultaneously 13 hydropower projects spread over 6
states and the neighbour country Bhutan for generating 10,290 MW of power.
IRB INFRASTRUCTURE DEVELOPERS LIMITED
IRB Infrastructure Developers Ltd. was incorporated to fund the capital requirements of the IRB
Group initiatives in the infrastructure sector. The company undertakes development of various
infrastructure projects in the road sector through several Special Purpose Vehicles. The company,
along with its subsidiaries has constructed or, operated and maintained around 1200 kms of road
length so far and is one of the major road developers in the country.
GAMMON INFRASTRUCTURE PROJECTS LIMITED
Gammon Infrastructure Projects Limited (GIPL) is an infrastructure project development
company promoted by Gammon India Limited, to participate in the development of infrastructure
projects on a public private partnership ("PPP") basis across sectors such as Roads &
Expressways, Ports, Hydro Power, Urban infrastructure, Airports, Special Economic Zones,
Water and Wastewater management, Railways, Power Transmission lines, and Agricultural
Infrastructure. GIPL is among the first companies in India to be modeled as an infrastructure
developer holding company with investments spread across various sectors.
HINDUSTAN CONSTRUCTION COMPANY LIMITED
As a pre-eminent Indian infrastructure company, established over eight decades ago, HCC has,
over the years, strongly anchored itself to India’s development effort. HCC, as an industry leader
in engineering construction, currently nurtures projects that span across such diverse segments as
transportation, power, marine projects, oil and gas pipeline constructions, irrigation and water
supply, utilities and urban infrastructure, all of which impact the nation of India, and the progress
of its people.
IVRCL INFRASTRUCTURE AND PROJECTS LIMITED
IVRCL is dedicated to improving the overall quality of life in the country. It believes in making a
holistic contribution to all sectors including water, roads, industrial structures, residential
complexes, power projects etc. For IVRCL, quality is the overpowering virtue around which the
whole system functions. Engineering and design capabilities are IVRCL's proven strengths. Its
turnkey projects in various sectors are characterized by pioneering ideas and impressive execution
capabilities.
NAGARJUNA CONSTRUCTION COMPANY LIMITED
NCC’s range of business verticals comprising of Buildings & Housing, Transportation, Water &
Environment, Irrigation, Power, Electricals, Metals, Oil & Gas and International business reflect
an expertise positioned to capture every infrastructure upturn. NCC has a reputed record of
completing projects on time without compromising on quality and is the only construction
company in India to achieve the recognition as one of the 250 “best under a billion” listed
companies in Asia Pacific in 2005 by Forbes Asia.
SIMPLEX INFRASTRUCTURES LIMITED
Simplex Infrastructures Limited was established in the year 1924 at Lancaster, United Kingdom.
Its chief construction activities include commercial and residential complexes and huge industrial
projects. In India, Simplex Infrastructures was responsible for constructing the first private sector
steel plants at Burnpur and Tatanagar. It also built the approach passages to Howrah Bridge.
Simplex has been catering to major organisations involved in the public sector, private sector, and
Government departments. The company has been using latest techniques and innovations in its
production process. Some of Simplex construction activities have been Power projects,
Processing plants, Huge industrial projects, Constructions of commercial & residential
complexes, Piling jobs, Marine ports and bridges, Ground strengthening and Soil investigations.
SWOT ANALYSIS
STRENGTHS
Diversified business model
Presence across diverse sectors,
customers and geographies
Ability to offer single-point turnkey
solutions
Improved financial performance
Repeat orders from reputed clients
More than 70% of the orders are
from few reputed clients.
WEAKNESSES
The Company has cases of
unclaimed deposits.
Problems in any major project can
adversely affect its financials.
Inability to bid for large projects.
Enable to retain manpower.
OPPORTUNITIES
Planed investment of Rs.175000
crore in infrastructure as per the
11th Five Year Plan leading to a
strong flow of orders.
Pick-up in economy has lead to
many new and expansion projects
across industries.
Construction of residential houses
for growing middle class
population.
THREATS
Competition from other players.
Political Influence due to operations
in different states.
Change in policies due to turbulence
in the government structure.
Economic meltdown may affect the
customer base due to increasing cost
of raw materials.
Compensation claim by the clients
in case of delay in completing their
project.
CHAPTER – II
RESEARCH METHODOLOGY
OBJECTIVES OF STUDY
To highlight the importance of having an effective Recruitment and Selection Policy for
organisations.
To identify the recent trends of corporate recruiting.
To study the existing process of Recruitment and Selection in Marg Limited.
To determine the applicability of the recent trends in the Recruitment and Selection
Process of Marg Limited.
To determine the challenges faced by the recruiters during the hiring process.
SCOPE OF STUDY
This study has a vast scope as it makes all the concepts clear about what exactly goes in
making a new employee a part of the organization. EPC-Delhi It highlights the recent
trends that are influencing the Recruitment and Selection Process of organisations.
It can also be useful as a source of information for similar projects.
MANAGERIAL USEFULNESS OF STUDY
The study clearly shows all the steps, which go in recruiting a person and having a right
person at right place.
This project work enables the comparison of relevant conceptual and theoretical
knowledge of Recruitment and Selection Process with actual application in the industry.
It will help the managers to understand the benefits of having an effective Recruitment
and Selection Policy for an organisation.
It will provide a thorough knowledge about the recent trends of corporate recruiting.
It provides a list of the problems that the recruiters face during the hiring process which
needs to be overcome.
It includes valuable suggestions that will help the recruiters in the hiring process.
RESEARCH DESIGN
Descriptive Research Design was adopted for this study. This design generally concentrate on the
aspects like setting objectives, defining and stating the problem under study, designing the
method of data collection, including sampling, survey, analysis and interpretation of data, report
writing, arriving at inductions, deductions and conclusions, etc. The recommendations and
findings in a descriptive research are definite.
SAMPLING PLAN
UNIVERSE
The population of the study comprises of three members of Recruitment Department and the Head of HR
Department, EPC-Delhi of Marg Limited, Head Office, New Delhi.
SAMPLE SIZE
4 (the entire population was studied).
DATA SOURCE
Both, Primary and Secondary data are used to perform this very task.
Primary Data Collection
Interview Schedule
Informal talks with employees of MARG LIMITED.
Observations made during the execution of the Recruitment & Selection Process.
Secondary Data Collection
Organisational Manual and Annual Report
Papers/files/letters
Internet
Books and Journals
DATA COLLECTION TOOL
An Interview Schedule was designed containing both open- ended and multiple-choice questions
to meet all the objectives of the study.
LIMITATIONS
The study was undertaken for a period of two months, so there was a constraint of time.
Possibility of ambiguous replies due to confidentiality of information.
Another constraint is some sort of biasness in my study. This study remains an analysis of
all what I gathered from my observation, the personal interaction and the information from
seniors and colleagues.
Errors might have crept into the report during typing and compilation.
CHAPTER – III
THEORETICAL FRAMEWORK
MEANING OF RECRUITMENT
The human resource is the most important asset of an organisation. The success or failure of an
organisation is largely dependent on the caliber of the people working therein. In order to achieve
the goals or the activities of an organisation it needs to recruit people with requisite skills,
qualification and experience.
Edwin B. Flippo defined recruitment as “the process of searching the candidates for employment
and stimulating them to apply for jobs in the organisation”. Recruitment is also defined as “a
process of finding and attracting capable applicants for employment”.
Recruitment is the activity that links the employers and the job seekers. The process begins when
new recruits are sought and ends when their applications are submitted. Recruitment of candidates
is the function preceding the selection, which helps create a pool of prospective employees for the
organisation so that the management can select the right candidate for the right job from this pool.
The main objective of the recruitment process is to expedite the selection process. Recruitment,
logically, aims at:
Attracting a large number of qualified applicants who are ready to take up the job if it’s
offered, and
Offering enough information for unqualified persons to self-select themselves out.
RECRUITMENT NEEDS ARE OF THREE TYPES
1. Planned Need
Planned needs are the needs arising from changes in organisational policies.
2. Anticipated Need
Anticipated needs are identified base on the movements in personnel, which an
organisation can predict by studying trends in internal and external environment.
3. Unexpected Need
Resignation, deaths, accidents and illness give rise to unexpected needs.
FACTORS AFFECTING RECRUITMENT
The recruitment function of the organisations is affected and governed by a mix of various
internal and external forces. The internal factors are those that can be controlled by the
organisation and the external factors are those which cannot be controlled by the organisation.
The external factors include supply of and demand for human resources, employment
opportunities and/or unemployment rate, labour market conditions, political, legal requirement
and government policies, social factors, information systems, etc. The internal factors include the
company’s pay package including salary, fringe benefits and incentives, quality of work life,
organisational culture, career planning and growth opportunities, size of the company, company’s
product/services, geographical spread of the company’s operations viz., local, national or global,
company’s growth rate, Role of Trade Unions and cost of recruitment.
PURPOSE & IMPORTANCE OF RECRUITMENT
Attract and encourage more and more candidates to apply in the organisation.
Create a talent pool of candidates to enable the selection of best candidates for the
organisation.
Recruitment is the process which links the employers with the employees.
Increase the pool of job candidates at minimum cost.
Help increase the success rate of selection process by decreasing number of visibility
under qualified or overqualified job applicants.
Help reduce the probability that job applicants once recruited and selected will leave the
organisation only after a short period of time.
Meet the organisations legal and social obligations regarding the composition of its
workforce.
Begin identifying and preparing potential job applicants who will be appropriate
candidates.
Increase organisation and individual effectiveness of various recruiting techniques and
sources for all types of job applicants.
SOURCES OF RECRUITMENT
Every organisation has the option of choosing the candidates for its recruitment processes from
two kinds of sources: internal and external sources. The sources within the organisation itself to
fill a position are known as the internal sources of recruitment. Recruitment candidates from all
the other sources are known as the external sources of recruitment.
SOURCES OF RECRUITMENT
INTERNAL SOURCES EXTERNAL SOURCES
Transfers Press Advertisements
Promotions Educational Institutes
Upgradation Placements agencies/Outsourcing
Demotion Employment Exchanges
Retired Employees Labour contractors
Retrenched Employees Unsolicited Applicants
Dependents of Deceased Employees Employee Referrals
Recruitment at Factory Gate
INTERNAL SOURCES OF RECRUITMENT
ADVANTAGES DISADVANTAGES
It is less costly.
Candidates are already oriented towards
organisation.
Organisation has better knowledge about
the internal candidates.
Enhancement of employee morale.
Good performance is rewarded.
Discourages entry of talented people.
It perpetuates the old concept of doing
things.
Bone of contention i.e. politics play greater
role.
Candidate’s current work may be affected.
Morale problem for those not promoted.
EXTERNAL SOURCES OF RECRUITMENT
ADVANTAGES DISADVANTAGES
Injection of fresh blood with new skills,
new talents and new experience.
Compliance with reservation policy becomes
easy.
Scope for resentment, jealousies and heartburn
are avoided.
Long term benefits of talented people.
Demotivates internal employees.
It is costly and time consuming.
Does not ensure that the services of a suitable
candidate are hired.
Adjustment of new employees of the
organisational culture takes longer time.
RECRUITMENT POLICY OF A COMPANY
In today’s rapidly changing business environment, a well defined recruitment policy is necessary
for organisations to respond to its human resource requirements in time. Therefore, it is important
to have a clear and concise recruitment policy in place, which can be executed effectively to
recruit the best talent pool for the selection of the right candidate at the right place quickly.
Creating a suitable recruitment policy is the first step in the efficient hiring process. A clear and
concise recruitment policy helps executing a sound recruitment process.
It specifies the objectives of recruitment and provides a framework for implementation of
recruitment programme. It may involve organisational system to be developed for implementing
recruitment programmes and procedures by filling up vacancies with best qualified people.
COMPONENTS OF THE RECRUITMENT POLICY
Organisation’s objectives
Identification of the recruitment needs to take decisions regarding the balance of the
qualitative dimensions of the would be recruits
Preferred sources of recruitment
Criteria of selection and preferences
The cost of recruitment and financial implications of the same
The terms and conditions of the financial
ESSENTIALS OF A GOOD RECRUITMENT POLICY
The policy should be in conformity with its general HR policies.
Focused on recruiting the best potential people.
Unbiased policy.
Transparent, task oriented and merit based selection.
Flexible enough to meet the changing needs of the organisation.
Cost effective i.e. to recruit competent people at a minimum cost.
Weightage during selection given to factors that suit organisation needs.
Optimization of manpower at the time of selection process.
Defining the competent authority to approve each selection.
Abides by relevant public policy and legislation on hiring and employment relationship.
Integrates employee needs with the organisational needs.
FACTORS AFFECTING RECRUITMENT POLICY
Organisational objectives
Personnel policies of the organisation and its competitors.
Government policies on reservations.
Preferred sources of recruitment.
Needs of the organisation.
Recruitment costs and financial implications.
MEANING OF SELECTION
Through the process of recruitment, a company tries to locate prospective employees and
encourages them to apply for vacancies at various levels. Recruiting, thus, provides a pool of
applicants for selection. Selection is the process of picking individuals out of the pool of job
applicants with requisite qualification and competences to fill jobs in the organisation.
Selection is a discrimination decision based on ability and suitability of the candidate. It can be
defined as “the process of differentiating between applicant in order to identify (and hire) those
with a greater likelihood of success in a job”. Often based on an initial job analysis, the ultimate
goal of personnel selection is to ensure an adequate return on investment - in other words, to
make sure the productivity of the new employee warrants the costs spent on recruiting and
training that employee.
The purpose of selection is to pick individuals out of the pool of job applicants with requisite
qualifications and competences to fill jobs in the organisation. The needs of the jobs are matched
with the profile of the candidates. The most suitable person is then picked up after eliminating the
less suitable applicants through successive stages of selection process. How well an employee is
matched to a job is very important because it directly affects the amount and quality of
employee’s work.
Any mismatch can cost an organisation a great deal in terms of money, time and trouble,
especially by way of training and operating costs. In course of time, the employee may find the
job distasteful and leave frustration. He may even circulate ‘hot-news’ and juicy bits of negative
information about the organisation, causing incalculable harm in the long run. Effective selection,
therefore, demands constant monitoring of the ‘fit’ between the person and the job.
Several screening methods exist that may be used in personnel selection. Examples include the
use of minimum or desired qualifications, resume/application review, oral interviews, work
performance measures (e.g., writing samples), and traditional tests (e.g., of job knowledge).
SELECTION TESTS
Recruiting personnel is a long and expensive process. It is very important that a company gets it
right, if the company hires someone that turns out to be unsuitable then it costs time, money and
potential new clients. To reduce the possibility of hiring an inappropriate candidate employers use
several filtering methods. Traditionally these have been the CV, covering letter, and interview.
However respected companies find that traditional candidate elimination techniques do not go far
enough and are not cost effective.
As a result employers are using different tests in addition to the traditional selection methods.
These tests aim to provide a potential employer with an insight into how well a candidate can
work with other people, how well he can handle stress, and whether he will be able to cope with
the intellectual demands of the job. These are as follows:
Achievement Test: It assist determining how well as individual can perform tasks related
to the job.
Aptitude Test: It helps in determining a persons potential to learn in given area.
Personality Test: They are given to measure a prospective employee’s motivation to
function in a particular working environment.
Interest Test: They are used to measure an individual’s activity preferences.
Dexterity Test: In this test checks the capacity of a person to learn a particular
mechanical type of work.
SELECTION INTERVIEW
OBJECTIVES OF INTERVIEWS
Helps obtain additional information from the applicant.
Facilities giving general information to the applicant such as company policies, job
profile, products manufactured, etc.
Helps build the company’s image among the applicants.
To get an opportunity to judge an applicants qualifications and characteristics.
To ask question that are not covered in tests.
TYPES OF INTERVIEWS
TYPES TYPE OF QUESTIONS USUAL APPLICATIONS
STRUCTURED
A predetermined checklist
of questions, usually asked
of all applicants
Useful for valid results, especially when
dealing with large number of applicants.
UNSTRUCTURED
Few, if any, planned
questions are made up
during interview.
Useful when the interviewer tries to proper
personal details of the candidate to analyze
why they are not right for the job.
MIXED
A combination of
structured and unstructured
questions
A realistic approach that yields comparable
answers plus in depth insights.
BEHAVIOURAL
Questions limited to
Hypothetical situations.
Useful to understand applicants reasoning
and analytical aptitude under modest
stress.
STRESS
A series of harsh, rapid fire
questions intended to upset
the applicant
Useful for stressful jobs, such as handling
complaints
BARRIERS TO EFFECTIVE SELECTION
The main objective of selection is to hire people having competence and commitment. This
objective is often defeated because of certain barriers. The impediments which check
effectiveness of selection are perception, fairness, validity, reliability and pressure.
Perception : Our inability to understand others accurately is probably the most fundamental
barrier to selecting the right candidate. Selection demands an individual a group or people to
assess and compare the respective competencies of others, with the aim of choosing the right
person for the jobs. But our views are highly personalized. We all perceive the world
differently. Our limited perceptual ability is obviously a stumbling block to the objective and
rational selection of people.
Fairness : Fairness in selection requires that no individual should be discriminated against on
the basis of religion, region or gender. But the low members of women and other less-
privileged sections of the society in middle and senior management positions and open
discrimination on the basis of age in job advertisements and in the selection process would
suggest that all the efforts to minimize inequity have not been very effective.
Validity : Validity, as explained earlier, is a test that helps predict job performance of an
incumbent. A test that has been validated can differentiate between the employees who can
perform well and those who will not. However, a validated test does not predict job success
accurately. It can only increase possibility of success.
Reliability : A reliable method is one which will produce consistent results when repeated in
similar situations. Like a validated test, a reliable test may fail to predict job performance
with precision.
Pressure : Pressure is brought on the selectors by politicians, bureaucrats, relatives, friends
and peers to select particular candidates. Candidates selected because of compulsion are
obviously not the right ones. Appointments to public sector undertaking generally take place
under such pressure.
RECRUITMENT IS DISTINCT FROM SELECTION
Some people use the term recruitment and selection interchangeably. These two terms are not one
and the same either. Recruitment includes only finding the sources of prospective employees and
attracting them to apply for jobs in an organisation, whereas the selection is the process of finding
out the most suitable candidate to the job out of the candidates attracted. Technically speaking the
function of recruitment precedes the selection function.
The differences between the two are as follows:
1. Recruitment is the process of searching the candidates for employment and stimulating them
to apply for jobs in the organisation whereas selection involves the series of steps by which
the candidates applying for the job are screened for choosing the most suitable one for the
vacant post.
2. The basic purpose of recruitment is to create a talent pool of candidates to enable the selection
of best candidate for the organisation, by attracting more and more employees to apply in the
organisation whereas the basic purpose of selection process is to choose the right candidate to
fill the vacant position in the organisation.
3. Recruitment is a positive process i.e. encouraging more and more candidates to apply whereas
selection is a negative process as it involves rejection of the unsuitable candidates.
4. Recruitment is concerned with tapping the sources of human resources whereas selection is
concerned with selecting the most suitable candidate through various interviews and tests.
5. There is no contract of recruitment established in recruitment process whereas selection
results in a contract of service between the employer and the selected candidate.
RECRUITMENT AND SELECTION PROCESS
Recruitment and Selection are the major functions of the human resource department and
recruitment process is the first step towards creating the competitive strength and the strategic
advantage for the organisation. Recruitment and Selection process involves a systematic
procedure from sourcing the candidates to arranging and conducting the interviews and picking
the most suitable candidate who would best meet the requirements of the job and the organisation.
Though, theoretically recruitment process is said to end with the receipt of applications, in
practice the activity ends with the screening of applications so as to eliminate those who are not
qualified for the job. The recruitment process is immediately followed by the selection process i.e.
the final interview and decision making, conveying the decision and the appointment formalities.
A general recruitment and selection process is as follows:
1. Human Resource Planning (HRP)
HRP means to identify the future manpower requirements from different departments of the
organisation.
2. Comparing with existing manpower
The number of manpower required is then compared to the existing inventory of manpower.
There are two possible outcomes: Surplus and Demand. In case an organisation has surplus
manpower, it can retain, retrenched or redeployed them. If there is more demand of
manpower, then the HR Department receives requisitions for recruitment containing the
number of persons required, the levels and criticality of vacancies.
3. Locating and developing sources of recruitment
From the various sources of recruitment (internal and external) available at the option of the
organisation, the most appropriate ones are selected based on their validity (time period) and
viability (feasibility).
4. Preparing the job descriptions
Then job descriptions and job specifications are prepared by the Departmental Heads of the
vacant positions.
5. Advertise and invite applications
The next step is to publish advertisements in newspapers, on-line, etc. on the basis of the job
description prepared to let others know of the job openings and applications.
6. Managing the response and Initial screening
Next step is to review the applications received and sieve the applications of the prospective
applicants with the required characteristics.
7. Conduct Selection Tests
In addition to the traditional selection methods, employers are using different selection tests.
These tests aim to provide a potential employer with an insight into how well a candidate can
work with other people, how well he can handle stress, and whether he will be able to cope
with the intellectual demands of the job. These tests can be split into Achievement Test,
Aptitude Test, Personality Test, Interest Test and Dexterity Test.
8. Selection interviews
Interview is a formal, in depth conversation conducted to evaluate the applicant’s
acceptability. It allows a two way exchange of information, the interviewers learn about the
applicant and the applicant learns about the employer. An interview can be:
One to One: There are only two participants the interviewer & the interviewee.
Panel Interview: Consists of two or more interviewers.
Sequential Interview: It involves the series of the interviews, usually utilizing the strength
and knowledge base of each interviewer.
9. Reference Check
Completing reference checks is a critical part of the selection process. A thorough reference
check may produce additional information to help insure that the most suitable candidate is
hired. It is a way to clarify, verify and add data to what has been learned in the interview and
from other portions of the selection process. Organisation normally seeks letter of reference or
telephone reference the later is advantageous because of its accuracy and low cost. In several
cases, references are a formality and seldom verified by the employer.
10. Selection Decisions
After obtaining information through the preceding steps, selection decision - the most crucial
of all the steps - must be made. The other stages in the selection process are used to narrow
the candidates. The final decision has to be made from the pool of the individual who passed
the tests, interviews and reference checks. If it is impossible to make a selection at this point,
one may consider scheduling an additional interview or conducting additional reference
checks. If the recruiters feel that none of the applicants are qualified, then they may choose to
re-recruit.
11. Physical Examination
After the selection decision and before the job offer is made, the candidate is required to
undergo a physical fitness test. The result of this test is recorded in a statement and is
preserved in the personnel record.
There are several objectives behind a physical test:
To detect if the individual carries any infectious disease.
Determining whether an applicant is physically fit to perform the work.
To protect the employer from worker’s compensation claims those are not valid because
the injuries or illness were present when the employee was hired.
12. Job Offer
The candidate finally selected is offered the job. In case he rejects the offer, it is made to the
next suitable candidate. After the job offer has been made and the candidate accepts it, a
contract of employment is prepared. The basic information that should be included in a
written contract of employment will vary according to the level of the jobs.
13. Joining formalities
Joining formalities include all the paper work to be done to fulfill the legal requirements of
employment.
14. Induction
Induction is a systematic & planned introduction of employees to their job, co-workers and
the organisation. Induction conveys 3 types of information:
General information about the daily work routine.
Review of organisation’s history, objectives, operations and products or services.
Organisational policies, work rules & employee benefits.
15. Placement
The selected candidate is then put to the actual work area where he has to perform the tasks
assigned to him.
16. Evaluation and review of the process
The last step is the broad test of the effectiveness of the process. This is done by evaluating
the performance or the quality of the personnel hired. An organisation must have competent
and committed personnel. The recruitment and selection process, if properly done, ensures
availability of such employees.
PROBLEMS FACED DURING
RECRUITMENT AND SELECTION PROCESS
Problems that are faced during the recruitment and selection process which should be avoided to
make the whole process more effective are as follows:
No weighting of interview questions
Poor settings for the interview
Insufficient follow-up questions
Failure to check with former employers
Use of hiring quotas
Failure to notify unsuccessful contenders of the selection decision
Failure to provide the new employee with a substantive orientation of the job
Rushed selection process
Unclear job requirements
Insufficient outreach
Recruitment outside of the personnel system
Failure to post openings
Tapping successors
Vague selection criteria
Untrained interviewers
Inappropriate questions
HR CHALLENGES IN RECRUITMENT
Recruitment is a function that requires business perspective, expertise, ability to find and match
the best potential candidate for the organisation, diplomacy, marketing skills (as to sell the
position to the candidate) and wisdom to align the recruitment processes for the benefit of the
organisation. The HR professionals – handling the recruitment function of the organisation- are
constantly facing new challenges. The biggest challenge for such professionals is to source or
recruit the best people or potential candidate for the organisation.
In the last few years, the job market has undergone some fundamental changes in terms of
technologies, sources of recruitment, competition in the market etc. In an already saturated job
market, where the practices like poaching and raiding are gaining momentum, HR professionals
are constantly facing new challenges in one of their most important function- recruitment. They
have to face and conquer various challenges to find the best candidates for their organizations.
The major challenges faced by the HR in recruitment are:
Adaptability to globalization – The HR professionals are expected and required to keep
in tune with the changing times, i.e. the changes taking place across the globe. HR should
maintain the timeliness of the process.
Lack of motivation – Recruitment is considered to be a thankless job. Even if the
organisation is achieving results, HR department or professionals are not thanked for
recruiting the right employees and performers.
Process analysis – The immediacy and speed of the recruitment process are the main
concerns of the HR in recruitment. The process should be flexible, adaptive and
responsive to the immediate requirements. The recruitment process should also be cost
effective.
Strategic prioritization – The emerging new systems are both an opportunity as well as a
challenge for the HR professionals. Therefore, reviewing staffing needs and prioritizing
the tasks to meet the changes in the market has become a challenge for the recruitment
professionals.
MODEL FOR FUTURE
As shown in the figure, the future of all recruitment related activities will revolve around a few
aspects, which are of prime importance. Recruitment is undoubtedly central to all activities.
However, the loop will satisfactorily complete only if the right equation is maintained between
the demand-supply ratio, which, in turn, is possible only if all recruiters, be it in-house or external
agencies understand the employee-employer welfare in consonance and the motive of operation
should be training and development.
E-RECRUITMENT
The buzzword and the latest trends in recruitment is the “E-Recruitment”. Also known as “Online
recruitment”, it is the use of technology or the web based tools to assist the recruitment process.
The tool can be either a job website like naukri.com, the organisation’s corporate web site or its
own intranet. Many big and small organisations are using Internet as a source of recruitment.
They advertise job vacancies through worldwide web. The job seekers send their applications or
curriculum vitae (CV) through an e-mail using the Internet. Alternatively job seekers place their
CV’s in worldwide web, which can be drawn by prospective employees depending upon their
requirements.
The two kinds of e- recruitment that an organisation can use are –
Job portals – i.e. posting the position with the job description and the job specification on the
job portal and also searching for the suitable resumes posted on the site corresponding to the
opening in the organisation.
Creating a complete online recruitment/application section in the companies own
website. - Companies have added an application system to its website, where the ‘passive’ job
seekers can submit their resumes into the database of the organisation for consideration in
future, as and when the roles become available.
Resume Scanners: Resume scanner is one major benefit provided by the job portals to the
organisations. It enables the employees to screen and filter the resumes through pre-defined
criteria’s and requirements (skills, qualifications, experience, payroll etc.) of the job. Job sites
provide a 24 X 7 access to the database of the resumes to the employees facilitating the just-in-
time hiring by the organisations. Also, the jobs can be posted on the site almost immediately and
is also cheaper than advertising in the employment newspapers. Sometimes companies can get
valuable references through the “passers-by” applicants. Online recruitment helps the
organisations to automate the recruitment process, save their time and costs on recruitments.
Therefore, to conclude, it can be said that e-recruitment is the “Evolving face of recruitment.”
ADVANTAGES OF E-RECRUITMENT
Lower costs to the organisation. Also, posting jobs online is cheaper than advertising in the
newspapers.
No intermediaries.
Reduction in the time for recruitment.
Facilitates the recruitment of right type of people with the required skills.
Improved efficiency of recruitment process.
Gives a 24X7 access to an online collection of resumes.
Online recruitment helps the organisations to weed out the unqualified candidates in an
automated way.
Recruitment websites also provide valuable data and information regarding the compensation
offered by the competitors etc. which helps the HR managers to take various HR decisions
like promotions, salary trends in industry etc.
DISADVANTAGES OF E-RECRUITMENT
Apart from the various benefits, e-recruitment has its own share of shortcomings and
disadvantages. Some of them are:
Screening and checking the skill mapping and authenticity of million of resumes is a problem
and time consuming exercise for organisations.
There is low internet penetration and no access and lack of awareness of internet in many
locations across India.
Organisations cannot be dependant solely and totally on the online recruitment methods.
In India, the employers and the employees still prefer a face-to-face interaction rather than
sending e-mails.
NOVEL RECRUITMENT PRACTICES
The changes in the recruitment landscape have brought in many a new ways and methods of
recruitment and other allied practices. They have optimized the utilization of available resources
with the employers and the employees. This, in turn, has also enabled local companies going
global and vice versa. Few novel practices in corporate recruitment are as follows:
POACHING / RAIDING
“Buying talent” (rather than developing it) is the latest mantra being followed by the
organisations today. Poaching means employing a competent and experienced person already
working with another reputed company in the same or different industry; the organisation might
be a competitor in the industry. A company can attract talent from another firm by offering
attractive pay packages and other terms and conditions, better than the current employer of the
candidate. But it is seen as an unethical practice and not openly talked about.
EMPLOYER BRANDING
Nothing is hotter around the globe in recruiting than employer branding i.e. to create brand equity
in the eyes of the potential employees. Firms throughout Asia, in particular, are increasingly
adopting employer branding as a wildly important activity for 2009. The success of Google, a
firm that has built the world’s strongest employer brand over an amazing five-year period, has led
others to focus on this impactful long-term strategy. Key focus areas include increasing media
coverage, increasing visibility online, building your “green” brand, and countering your
“negative” employer brand.
RECRUITMENT PROCESS OUTSOURCING
Another upcoming trend in recruitment industry is Recruitment Process Outsourcing (RPO). This
enables the client company to actually outsource the entire gamut of recruitment to the
consultancies. This will include the following activities starting from searching candidates
through the job portals, job postings, inbuilt database, etc. to joining formalities, induction and
training. The RPO is the form of Business Process Outsourcing (BPO) where the client or the
employer transfers all or part of its recruitment activities and functions to an external service-
providers or to third party specialists, not only to save on cost and involvement, but also for
making a specialized job being handled by an expert.
BOOMERANG RECRUITMENT
In today’s scenario, one of the most cost-effective and successful recruitment strategies is
boomerang recruitment. Boomerangs, rehires and returnees are the terms coined to recognize top
performing ‘corporate alumni’ who are brought back into the organisation with a definite
objective, or who return on their own after being away from the organisation for sometime. In the
view of the consequent attrition that is often a major setback to a company on various fronts, the
practice of rehiring former employees is fast catching on to recall exceptional talent, especially
when the organisation face a severe shortage of trained, skilled personnel. Companies prefer to
rehire former employees rather than settle for inefficient new recruits. They are in fact initiating
proactive steps to encourage them to come back into the organisation.
REINVIGORATING REFERRAL PROGRAMS
Despite the growth of career-related internet sites, the highest volume and quality candidates still
come from well-designed employee referral programs. While heavy adoption was initially
hampered by cultural issues around the world, today such programs are proving highly effective
everywhere. Key focus areas include proactively approaching key employees for referrals
(program targeting), leverage non-employee referrals, making reward systems more
comprehensive, immediate, and visible, and last but not least, helping employees leverage social
media to restore relationships, make new relationships, and build stronger relationships.
ONLINE ASSESSMENT TOOLS
Online tests are becoming increasingly popular where candidates are asked to answer the
questions either on paper or using a PC or palm-top. The advantage of online testing is that once
the test is completed, an analysis of the results can be calculated straight away. This means that
the organisation can continue with the selection process with the results ‘in hand’ rather than
keeping the candidates waiting or send them home and call them back on a later date. Another
advantage is that candidates can take the test at a recruitment agency or even in their own home.
Online testing is particularly suitable for initial screening as it is very cost-effective.
THE JIT PHILOSOPHY
Companies in sectors like BPOs, financial services and retail firms are troubled with the problems
of rising employee attrition. Such companies have been opting for Just in Time (JIT) service. The
JIT Philosophy is built on the principle that a consumer’s demand has to be met with minimum
delays, which works well for a human supply chain, too. Some employees quit companies after
training even before earning anything for the company. In such situations, JIT comes handy by
ensuring that their new recruits become productive from Day One. In the case of JIT, the ROI for
all parties involved is ensured. Firstly, for companies, the total cost of ownership per employee
will drop. Secondly, the new recruits are assured of both the job and the training in the firm
without paying any fee. Thirdly, the recruitment and training companies can charge a premium
from hiring companies for sourcing the required candidates. Thus, the model ensures that
employees become billable from day one.
VISUME
Second only to employee referrals, the most impactful tool for effectively demonstrating the
excitement and passion at a firm is online video. Today, video resume, popularly known as
‘visume’, the potent combination of the internet and video, has imparted a digital form to the
resumes. It is short video developed by the candidate showcasing his skills and experience for a
job position, which is then uploaded on suitable job portals for prospective employers to view. If
a picture is worth a thousand words, then moving pictures demonstrating what it’s like to work at
your firm would have to be “priceless.” Video resumes have opened the gateway for a
revolutionized concept in the field of online recruitment. They are fast proving to be a handy tool
for prospective candidates for marketing themselves faster and better.
UTILIZING SOCIAL NETWORKS
Few firms have found productive ways to truly leverage social media sites. However, as new
approaches are developed that more accurately align with the paradigm of social media audiences,
recruiting on social networks will become more mainstream. Focus areas include encouraging
your employees to be more visible online and using networks to identify innovators. Key
networking sites include Facebook, MySpace, Friendster and LinkedIn.
USING MOBILE - PHONE RECRUITING
As mobile phones with amazing features spread throughout the population, recruiting managers
are beginning to realize that they can be a powerful recruiting media. Key focus areas include text
messaging, mobile video, and mobile-accessible corporate career sites.
USING EMPLOYEE BLOGS FOR RECRUITING
A practice that is finally beginning to enter the mainstream is employee blogging to support
recruiting efforts. The very best firms use blogs not just to spread their message but also to
answer questions and to make their company appear more “real” and approachable.
REVITALIZING CORPORATE JOBS PAGE
Recruiting managers are beginning to understand that pitifully dull and dated websites drive away
innovators. Focus areas include providing personalized information to the visitor, flash video
integration, blogs, podcasts, and virtual Q&As.
RECRUITING GLOBALLY
Recruiting managers are beginning to learn how to differentiate multi-national recruiting from
true global recruiting. Key focus areas include global sourcing, globalized websites, and
globalized employer referral programs.
CHAPTER - IV
RECRUITMENT AND
SLECTION PROCESS OF
MARG LIMITED
RECRUITMENT AND SLECTION PROCESS OF MARG LTD.
Budgeting
Approval by CMD, Business Head and HR Head
Preparation of Job Description
Allocate Sources of Recruitment
Initial Screening of CVs
Calling and Scheduling
Preparation of Interview Schedule
Conducting Interviews
Approval by HR Head and Business Head
Issue of LOI to selected candidate Rejected
Accepted Offer to next candidate
Joining formalities and issue of Appointment Letter
Induction
Placement
Follow-up
Internal SourcesTransferIn-house DivisionReferrals
External SourcesJob PortalReferralsWalk-in Interviews
1. Budgeting
The process begins with assessing the manpower requirement as per the projects. This is done
by the Technical Department which maintains a Green Book for the same. The details of the
budgeting are then sent to the HR Department.
2. Approval by CMD, Business Head and HR Head
The HR Department sends this detail to CMD for approval. The approval is then sent to the
Business Head who forwards it to the HR Head. The HR Head then sends the details of
manpower requirement to the Recruitment Department to further carry out the process.
3. Preparation of Job Description
The next step is the preparation of Job Descriptions by the Departmental Head of the vacant
positions. Job Description is “a written record of the duties, responsibilities and requirements
of a particular job. It is concerned with the job itself and not with work”.
4. Allocate Sources of Recruitment Description
The Recruitment Department then decides upon the appropriate source of recruitment to fill
the vacant position. There are two types of recruitments: Commercial Recruitment and
Technical Recruitment. The sources of recruitment used by MARG LIMITED are as follows:
Internal Sources : In-House Division, Transfers and Referrals.
External Sources : Job Portals, Referrals and Walk-in Interviews.
5. Initial Screening of CVs
Various applications/CVs received are then screened out by the Recruitment Department
eliminating those who don’t meet the basic qualifications required for the job. The list of the
qualified candidates is sent to department related to the position to be filled who further
shortlist them as per their requirements.
6. Calling and Scheduling
The shortlisted candidates are then called up to confirm if they will be coming for interview
and to check the basic parameters provided in the CVs by the candidates. Also they are told
about the date and time for interview along with the required documents for interview. Date
and time decided is put on the CVs. Documents to be carried are:
Updated CV
1 latest photograph
Testimonials (both original and photocopied)
Last/Current company’s information and letter
Last salary slip
ID Proof
Address Proof
7. Preparation of Interview Schedule
An Interview Schedule is prepared in Excel which includes the following items: Candidate’s
name, Residence, Work experience, Current Company, Designation, CTC, Expected Salary,
Source of recruitment, Interview Date, Interview Time, Remarks. This Interview Schedule is
sent to the Recruitment Department (technical/commercial) and to the HR Head. One day
before the interview date, a reminder call is given to the candidates. In MARG LIMITED,
interviews are generally held on Fridays.
8. Conducting Interviews
On the day of the interview, the candidates are required to fill an Employment Form. There
are two types of Employment Forms: (a) for the designations below managers, and (b) for
designations of managers and above. Filled Employment Form attached with self attested
documents is sent to the Recruitment Department for verification. After verification,
interviews are held. Minimum 3 rounds of interviews are conducted. The candidates are
marked against different parameters on the Interview Evaluation/Assessment Sheet along with
the final remarks to differentiate between the shortlisted and not-suitable candidates.
9. Approval by HR Head and Business Head
Interview Assessment Sheet, Employment Form, CV and all other documents (in the same
order) of the shortlisted candidates are then sent to HR Head and Business Head for their
approval.
In case of post for manager or above, Chairman’s approval is also required. Some interviews
are conducted on construction sites itself. In such a case, all requisite documents and the
joining report are sent to the HR Department, Head Office.
10.Issue of LOI to selected candidate
Preparation of Letter of Intent (LOI) or Offer Letter is the next step. LOI is generated by ERP.
Two copies of LOI signed by the HR Head are made. One is given to the candidate and
another is sent for CMD record.
In case, the selected candidate is not available, LOI is mailed to him or a call is given to him.
Also, the candidate is also told about the policies of the company, bachelor’s accommodation,
additional HRA (if with family), conveyance, food facilities, etc.
There is a separate MIS for LOI with the following contents:
Candidate’s name
Post and Department selected for
Joining Date
Current/Previous Employer
Residence
Contact
Remarks
11. Joining formalities and issue of Appointment Letter
If the job offer is rejected by the selected candidate, the job is offered to the next most suitable
applicant. Acceptance of job offer by the candidate is followed by the joining formalities.
For fulfilling the joining formalities, the employee is required to fill a Joining Form
containing personal details, gratuity fund nominees, Form 2 (for deducting PF) and Form 11
(for not deducting PF), etc. The appointment letter is also given on the same day.
All the requisite documents are then verified which includes: Mark Sheets, Experience
Certificates, last salary slip, leaving letter from the last organisation, ID proof, address proof,
etc.
12. Induction
The next step is to carry out an effective induction program. Induction is a systematic &
planned introduction of employees to their jobs, co-workers and the organisation.
Organisational Manual is also given to them containing information about Marg Group, its
HR policies, on-going projects and the Organisational Structure of the related division. If any
person joins in Head Office (HO), a welcome note is issued to him followed by introduction
with the Departmental Head; issue of ID card; opening bank account and
e-mail id, sitting arrangements, etc.
Candidates are required to fill a feedback form to check the usefulness of the induction
program and its benefits for the employees.
13. Placement
After the process of induction is over, the employee is placed to the actual work area
(site/department) where he is supposed to work. It is HR Department’s responsibility to put him
in the right job, to achieve the optimum output for any organisation.
14. Follow-up
Once an employee is placed, follow up is done to ensure the selection of right man for right
job.
PROCEEDINGS FOR TRANSFER
HR Department sends their MIS of budgeting to different sites. Sites with surplus manpower send
detail of their excess manpower to the HR Department. Then, the HR Department talks to the Site
Incharge and the Project Coordinator of that site for confirmation. The Site Incharge is required to
e-mail the information of their surplus staff to the HR Department on the basis of which a
Transfer Approval is issued by the HR Department (Approval of ED is required). HR Department
then generates a Transfer Letter. Transfer Letter is kept in the personal file of the employee, and
also a copy is send to the Business Head, HR Head and project coordinators of both (current and
new) sites. Next comes Handing-over and Taking-over from the previous site to get a Clearance
Copy for working on the new site. The copy of clearance is submitted to the Departmental Head
and HR Department for records.
FOLLOW UP OF TRANSFERS
Follow up is required to check if the employee has reported on the new site or not.
There is a separate MIS for Follow Up. It contains:
Employee Code
Name
Designation
Date of Transfer
Reporting Date
Previous Site
New Site
Contact
Remarks
In Follow-up, there are three possible outcomes:
1. The employee transferred reports on the new site on time and performs his tasks as
required.
2. The employee transferred doesn’t report to the new site and the reason being that he is not
discharged from the previous site. In such a case, previous site is called up for
confirmation.
3. The employee transferred is discharged from the previous site but doesn’t report to the
new site. In such a case, the employee is called up. If it is not possible to contact the
employee; an Absenting Letter is mailed to both the sites regarding transfer but not
reporting, his salary is hold, and an Absenting Letter is send on his permanent address
through a registry. Two such letters are sent and even then if the employee doesn’t report,
legal procedure is carried out and accordingly, status in MIS is updated.
PROCEEDINGS FOR IN-HOUSE DIVISION
The process of recruitment through In-house Division is same as that of Transfer. The
only difference between the two is that Transfer takes place from one site to another
within the same division and in case of In-house Division it is from one division to
another.
CHAPTER - V
DATA ANALYSIS
DATA ANALYSIS
1. Which type of recruitment need your organization have?
0
20
40
60
80
100
120
Planned Anticipated Unplanned
Recruitment Need
Perc
enta
ge
INTERPRETATION
100% of the respondents are of the opinion that Marg Limited has planned need for recruitment
arising from changes in organizational policies.
2. What are the sources of recruitment that you use?
INTERNAL SOURCES
Promotions
Transfers
Referrals
EXTERNAL SOURCES
Newspaper Advertisements
Campus Recruitment
Job Portal
Walk-in Interviews
INTERPRETATION
Sources of recruitment that Marg Limited uses:
Internal Sources – Transfers, Referrals and Promotions.
External Sources – Newspaper Advertisements, Campus Recruitment, Job Portal and
Walk-in Interviews.
3. Do you think that recent trends of Recruitment and Selection have
influenced the process of Marg Ltd?
Yes
No
INTERPRETATION
100% responses agree that the Recruitment and Selection Process of Marg Limited has been
greatly influenced by the recent trends in the hiring process.
4. What are the recent trends of recruitment that your organization is using?
0
20
40
60
80
100
120
Outsourcing Job Portal Poaching/Raiding Online Recruitment
Recent Trends
Perc
enta
ge
INTERPRETATION
100% replied that among the various recent trends, Marg Limited uses only Job Portal
(Naukri.com) for recruiting.
5. Which source of recruitment provides the most stable and the least stable
manpower?
Commercial Recruitment
Job Portals Referrals
Technical Recruitment
ReferralsDirect/walk-in
Interviews
More Stable
Least Stable
INTERPRETATION
For commercial recruitment, Job Portals provides the most stable manpower whereas Referrals
provides the least stable ones. On the other hand, for technical recruitment, Referrals provides the
most stable manpower whereas direct/walk-in interviews provide the least stable ones.
6. How do you find the recruitment and selection policy of your organization?
INTERPRETATION
75% feels that the Recruitment and Selection Policy of Marg Limited is flexible whereas 25%
feels that it is rigid.
7. What is the basis of initial screening?
Basis for Initial Screening
Qualifications
Work-Experience
Related Background
INTERPRETATION
Qualifications, Work-Experience and related background are the parameters for initial screening
in Marg Limited.
8. How do you manage the outstation candidates for interviews?
0
10
20
30
40
50
60
Send mailand call them
TelephonicInterview
Both Others
Perc
enta
ge
INTERPRETATION
50% says that a mail is send to the outstation candidates calling them for interviews and 50% says
that both mail is sent as well as telephonic interviews are conducted for them.
9. Do you prioritize the outstation candidates while conducting interviews?
Yes
No
INTERPRETATION
100% replied that the outstation candidates are interviewed first.
10. Rank these skills based upon their preferences that you give while making selection.
Skills For Managers & above For Below ManagersBehavioral Skills 4 2Communication Skills 3 3Technical Skills 1 1Personality 2 4
INTERPRETATION
For managers and above positions, Technical Skills is initially looked for followed by Personality,
Communication Skills and Behavioral Skills.
For below manager positions, Technical Skills is initially looked for followed by Behavioral
Skills, Communication Skills and Personality.
11. When do you inform the candidates regarding their selection or rejection?
0
10
20
30
40
50
60
70
80
Immediately After 2 days Call only selectedcandidates
Perc
enta
ge
INTERPRETATION
75% says that an immediate feedback is provided while 25% says that only those who got
selected are called up and informed.
12. Does your selection process include Medical Fitness Test?
Yes
No
INTERPRETATION
100% says that the Selection Process of Marg Limited does not include a medical fitness test.
13. Do you consider those who were not selected for future requirements?
0
10
20
30
40
50
60
70
80
Yes NoPe
rcen
tage
INTERPRETATION
75% says that the candidates not selected are not considered for future requirements while 25%
says that those candidates are considered.
14.Whose feedback is considered for improving the recruitment and selection
process of Marg Limited?
HR Head
Interviewers
Candidates
INTERPRETATION
To improve the Recruitment and Selection Policy of Marg Limited, the HR Head’s, the
interviewers’ and the candidates’ feedback is considered.
15. How do you rate the recruitment and selection process of Marg Ltd.?
010
203040
5060
7080
Excellent Good Average BelowAverage
Poor
Perc
enta
ge
INTERPRETATION
75% rate the Recruitment and Selection Policy of Marg Limited as good and according to 25%, it
is average.
16.What all problems do you face while recruiting?
Problems
Non existence of technicalinterviewersLack of proper space
Incomplete documents
Limited budget
INTERPRETATION
The problems that the recruiters in Marg Limited face during the hiring process are - non
existence of technical interviewers, lack of proper space, incomplete documents filled by
candidates and limited budget.
CHAPTER - VI
FINDINGS
FINDINGS
Marg Limited has planned need for recruitment i.e. manpower requirement is estimated in
context to future plans.
Sources of recruitment that MARG LIMITED uses are:
o Internal Sources – Transfers, Referrals and Promotions.
o External Sources – Newspaper advertisements, Campus Recruitment, Job Portal and
Walk-in Interviews.
Recruitment and Selection Process of MARG LTD has been greatly influenced by the novel
recruitment practices inspite of the fact that it uses only Job Portal (Naukri.com) from the
recent trends of corporate recruiting. This is so because major recruitment is done through this
channel.
The Selection Process of MARG LIMITED does not include a medical fitness test reason
being that the organisation is into mass recruitment and testing each and every candidate is not
considered feasible by the management.
All from the Recruitment Department do not agree that the Recruitment and Selection Policy
of MARG LIMITED is flexible.
To improve the Recruitment and Selection Policy of MARG LIMITED, the HR Head’s, the
interviewers’ and the candidates’ feedback is considered but the policy is reviewed as and
when required rather than being done on regular basis.
The problems that the recruiters in MARG LIMITED face during the hiring process are:
Non availability of technical interviewers
Lack of proper space
Incomplete documents filled by candidates
Limited budget
The Recruitment and Selection Policy of MARG LIMITED is considered to be good but there
is a scope for improvement.
CHAPTER – VII
CONCLUSION
AND
RECOMMENDATIONS
CONCLUSION
Recruitment and Selection process as an HR function has assumed critical importance in today’s
business scenario. For an HR executive, it is like a treadmill, as the constant supply of intellectual
capital has to be ensured to retain the competitive advantage for the company. It is a complex
process in the sense that one has to be very careful in distinguishing between ‘eligibility’ and
‘suitability’ for a job. A candidate may satisfy the conditions of the former but it is the latter that
the recruiter has to look deeper into, to get a 100% fit for the required job.
It is important to have a well-defined recruitment and selection policy in place, which can be
executed effectively to get the best fits for the vacant positions. Recruitment and Selection
process involves a systematic procedure from sourcing the candidates to arranging and
conducting the interviews and picking the most suitable candidate who would best meet the
requirements of the job and the organisation, decision making, conveying the decision and the
appointment formalities.
Shortage of and frequent job hopping by talented and skilled employees are forcing HR
department to come up with innovative methods of finding the so-called “right fit”. Even the
conventional advertisements are getting catchier and fancier by the day. Outsourcing, online
assessment, poaching/raiding, video resumes, boomerang recruitment etc., are some of the
methods being adopted. By and large, job portals and online recruitment methods appear to have
become very popular with almost 80% employers taking them up. They are also proving highly
cost-effective. Next in the line are the greater use of internal recruitment and incentive-based
employee referral method. One major change in the conventional HR set-up of an organisation is
the establishment of a dedicated ‘recruitment team’ on round-the-year and full-time basis, which
augurs well for both the company and the HR department. With the rise in demand in talent, there
is a surge of search firms which adopt a highly professional and process-driven approach to
identify a suitable candidate.
Marg Limited is a fully integrated infrastructure company participating in India’s core infrastructure and
construction sectors. A clear and concise recruitment policy helps ensure a sound recruitment
process. The organisation does not have a well defined policy for recruitment and selection. Also
the hiring process is considered to be good but needs to be modified in order to produce better
workforce.
RECOMMENDATIONS
Though the Recruitment and selection procedure at MARG LIMITED is satisfying but still the
following suggestions can be made use of, to make it better.
The organisation lacks in proper arrangements for interviews. Therefore it needs to focus on
the following:
Proper sitting arrangements for the candidates appearing for interviews.
A separate room should be made available for them to avoid any kind of disturbance in the
routine work.
A panel of interviewers needs to be formed.
Telephonic Interviews should not be conducted wherever possible especially in case of
outstation candidates to save time and money and efforts of the interviewers. Only those
people willing to take a serious move should be asked to come for an interview.
Selection process should include a written test, which should be objective and should cover
concerned subject knowledge as well as psycho-analysis and personality test. This will help in
shortlisting the suitable candidates for interview and thus save time and efforts of the
interviewers.
Co. should also give a chance to freshers i.e. the budding talent without experience. They can
also prove to be assets for the co. if a proper candidate is selected.
Medical tests should be included in the selection process. Though it is not feasible, in terms of
time and money, to test each and every candidate who appears for an interview but those who
are selected must undergo a medical fitness test before fulfilling the joining formalities.
The Recruitment and Selection Policy of MARG LIMITED is reviewed as per the
requirements but with the change in the trends it must review its policies atleast every 6
months.
Since the not selected candidates are not considered for future requirements, resumes which
are more than 6 months old should be destroyed or send for recycling.
Outsourcing saves a lot of resources and time of the organisation by initially screening the
candidates according to the needs of the organisation and creating a suitable pool of talent for
the final selection by the organisation. Since the organisation is into mass recruitment,
outsourcing can prove to be beneficial for the organisation.
ANNEXURE
INTERVIEW SCHEDULE
(The details provided in the questionnaire will be kept confidential)
Name :
Designation (with depart.):
1. Which type of recruitment need your organisation have?
Planned Anticipated Unexpected
2. What are the sources of recruitment that you use?
Internal Sources
Transfers Promotions
Referrals Retrenched Manpower
Others (please specify) _________________________________________
External Sources
Newspaper Advertisements Private Agencies
Campus Recruitment Others (please specify) ___________
3. Do you think that recent trends of Recruitment and Selection have influenced the process
of MARG LIMITED?
Yes No
4. What are the recent trends of recruitment that your organisation is using?
Outsourcing Poaching/Raiding
Job Portals Online Recruitment
5. List the sources of recruitment providing most stable manpower and least stable
manpower.
_________________________________________________________________
_________________________________________________________________
6. How do you find the recruitment and selection policy of your organisation?
Rigid Flexible
7. What is the basis of initial screening?
Qualifications Work Experience Skills Knowledge
Reference Others (please specify) ____________________________
8. How do you manage outstation candidates for interviews?
Send mail and call them
Telephonic Interviews
Both
Others (please specify) _______________________________________
9. Do you prioritize the outstation candidates while conducting interviews?
Yes No
10. Rank these skills based upon their preferences that you give while making selection.
For Managers & above For Below Managers
Behavioural Skills
Communication Skills
Technical Skills
Personality
11. When do you inform the candidates regarding their selection or rejection?
Immediately
After 2 days
Call only selected candidates
12. Does your selection process include a Medical Fitness Test?
Yes No
If no, why?
__________________________________________________________________
13. Do you consider those who were not selected for future requirements?
Yes No
14. Whose feedback is considered for improving the recruitment and selection process of
MARG LIMITED?
__________________________________________________________________
15. How do you rate the recruitment and selection process of MARG LIMITED?
Excellent Good Average Below Average Poor
16. What all problems do you face while recruiting?
__________________________________________________________________
Suggestions for improvement
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
BIBLIOGRAPHY
BIBLIOGRAPHY
WEBSITES
www.marggroup.com
www.corporateinformation.com
www.google.com
www.bseindia.com
www.moneycontrol.com
www.valuenotes.com
BOOKS
V. S. P. Rao, Human Resource Management, Second Edition, 2005. Excel Books, New Delhi.
C.B. Mamoria and S.V. Gankar, Human Resource Management, Second Revised Edition,
2003. Himalaya Publishing House, Mumbai.
K. Aswathappa, Human Resource & Personnel Management, Third Edition, 2002. Tata
McGraw-Hill publishing Company Limited, Noida.
D K Bhattacharyya, Research Methodology, First Edition, 2003. Excel Books, New Delhi.
MAGAZINES & JOURNALS
Recruitment Dynamics, HRM Review, Vol. –VIII, November 2008, The Icfai University
Press, Hyderabad.
Boomerang Recruitment, HRM Review, Vol. –VIII, November 2008, The Icfai University
Press, Hyderabad.
Recruitment - Emerging Trends, HRM Review, Vol. –VIII, November 2008, The Icfai
University Press, Hyderabad.