CHAPTER-1

INTRODUCTION:
Permeates all type of functional, Human resource management is the central
subsystem of organization and it production, marketing and financial management.
Human resource management plays a crucial role in the development process of
modern economics. It is often felt that, through the exploitation of natural resources
availability of physical and financial resources and international aid play prominent
roles in the growth of modern economies, none of these factors is more significant
than efficient and committed manpower.
It is in fact, said that all development comes from the human mind. Human
resource management is concerned with the development of knowledge, capability,
skill, potentialities, and attaining achieving employee goals, including job
satisfaction. Human resource management aims at attaining the goals of an
organization, individual and society in an integration approach.
Human Resource Development is concerned with increasing the skills of
employees and changing their attitudes in order to enable them to function in a more
efficient manner in achieving the objectives of the organization. It is based on the
Fundamental Philosophy that Individuals in an organization have unlimited
potential for growth and development which can be harnesses for the achievement of
the objectives of the organization, while bringing about a positive change and
enhancement of the individuals general capabilities.
In recent times, organizations have realized that the human resources are
the resources which provide a competitive edge for the organization, which can be
positively utilized for more efficient and achievement of organization objectives.

Definitions of Human Resource Management:

Human Resource Management (HRM) is the function within an organization
that focuses on recruitment of, management of, and providing direction for the
people who work in the organization. Human Resource Management can also be
performed by line managers.

www.citehr.com

Human Resources Management (HRM) can is managing ( planning,

organizing, directing and controlling) the functions of employing, developing and
compensating human resources resulting in the creation and development of human
relations with a view to contribute proportionately(due to them) to organizational,
individual and social goals.

Prof. P. Subbarao

Importance of Human Resource Management:

The Human resource management (HRM) is a strategic management function.
Proper management of personnels enhances their dignity by satisfying their social
needs.

Professional significance is can be done by providing healthy working

environment it promotes the teamwork in the employees.

Features of Human Resource Management

HRM is concerned (relate) with Employees both individuals and, as a group

in attaining goals. It is also concerned with behavior, emotional and social
aspects of personal.

It is concerned with the development of human resources i.e. knowledge,

capability, Skills, potentialities and attaining and achieving employees. Goals
including Job satisfactions.

It is common in all types of organizations since it applies to the Employees

in all types of organizations in the world.

It will never end & it is a continuous process.

It aims at attaining (achieve) the goals of organizations individual L. society

in an integrated approach:,

It is mainly concerned with human resources at work.

HRM aims at securing unreserved co-operation from all Employees in order

to attain pre determined goals.

OBJECTIVES OF THE STUDY

1. To study the effectiveness of the each human resource concept in the

industry
2. To understand the practical importance of the concept.
3. To find out the HR strategies of Jasper automobile private limited with
customer employees and other public.
4. To make an analysis of the effectiveness of each program being conducted by
Jasper industries private limited.
5. To study the competitive strength of the Jasper.
6. To know the HR position of Jasper.
7. Cost saving and best service initiatives.
8. To find out the satisfaction level of HR.
9. To find out the awareness level of HR.

SCOPE OF THE STUDY

The scope of the study means the limits or the boarders of the study. A
concussed review on various related to H.R department, Selection procedures and
methods or studies. Over all HRM Practices scope is to be covered with reference to
Jasper Industries Pvt., Ltd.
To know about the Over all HRM Practices in the organization:
1. The survey is conducted by interacting with Employees of different levels of
management at Jasper Industries Pvt., Ltd. Unit.
2. The scope of the study is confirmed to the hierarchical levels at Jasper
Industries Pvt., Ltd. Unit. It is mainly intended to know the quality of HRM
Practices conducted at Jasper Industries Pvt., Ltd. Unit.
3. The study is conducted only on employees of Hyderabad Jasper Industries
Pvt., Ltd. Unit, which forms the universe of this study.

LIMITATIONS OF THE STUDY:

1. I will have to rely upon the information get from secondary sources and
given by respondents which may not be fully true.
2. This study will be limited to only some areas of Hyderabad and surrounding
areas.
3. It is only for short period of time.
4. Lack of professional approach since researcher is a student.
5. The sample size is 100 so; the sample may not be truly representative of the
Hyderabad population.
6. This project has been done with in a limited period of 8 weeks, so it may not
cover all the areas.
7. This study was confirmed mainly to the HR activities of Jasper automobiles
private limited.
8. Due to non availability of personal of top and middle cadre personnel
interviews are not up to the mark

METHODOLOGY
Data which is required for the analysis and that could fulfill our objectives has been
collected from two sources. They are.
Primary data:
Primary data are those which are gathered specifically for the project at hand. These
include the information gathered from. For my survey primary data have been used
as a questionnaire to collect the data.

Questionnaire.

Observation.

Questionnaire:
A well constructed questionnaire was developed for employees and employers to
extract information. Questionnaire was personally administered to employers,
employees, small business holders, industrials, agriculturists and some other
customers.
Secondary data:
Secondary data are generally published sources which have been collected originally
for some other purposes. That is the data collected from,

Company reports

HR text books and journals

Magazine

Books

News papers and internet

INDUSTRY PROFILE
AUTOMOTIVE INDUSTRY IN INDIA
The Automotive Industry in India is one of the largest in the world and one
of the fastest growing globally. India's passenger car and commercial vehicle
manufacturing industry is the sixth largest in the world, with an annual production of
more than 3.7 million units in 2010. According to recent reports, India is set to
overtake Brazil to become the sixth largest passenger vehicle producer in the world,
growing 16-18 per cent to sell around three million units in the course of 2011-12. In
2009, India emerged as Asia's fourth largest exporter of passenger cars, behind
Japan, South Korea, and Thailand.. In 2010, India reached as Asia's third largest
exporter of passenger cars, behind Japan and South Korea beating Thailand.
As of 2010, India is home to 40 million passenger vehicles. More than 3.7
million automotive vehicles were produced in India in 2010 (an increase of 33.9%),
making the country the second fastest growing automobile market in the world.
According to the Society of Indian Automobile Manufacturers, annual vehicle sales
are projected to increase to 5 million by 2015 and more than 9 million by 2020.By
2050, the country is expected to top the world in car volumes with approximately
611 million vehicles on the nation's roads.
The majority of India's car manufacturing industry is based around three
clusters in the south, west and north. The southern cluster near Chennai is the
biggest with 35% of the revenue share. The western hub near Maharastra is 33% of

the market. The northern cluster is primarily Haryana with 32%. Chennai is also
referred to as the "Detroit of India" with the India operations of Ford, Hyundai,
Renault and Nissan headquartered in the city and BMW having an assembly plant on
the outskirts. Chennai accounts for 60% of the country's automotive exports.
Gurgaon and Manesar in Haryana form the northern cluster where the country's
largest car manufacturer, Maruti Suzuki, is based.
The Chakan corridor near Pune, Maharastra is the western cluster with
companies like General Motors, Volkswagen, Skoda, Mahindra and Mahindra, Tata
Motors, Mercedes Benz, Land Rover, Fiat and Force Motors having assembly plants
in the area. Aurangabad with Audi, Skoda and Volkswagen also forms part of the
western cluster. Another emerging cluster is in the state of Gujarat with
manufacturing facility of General Motors in Halol and further planned for Tata Nano
at Sanand. Ford, Maruti Suzuki and Peugeot-Citroen plants are also set to come up
in Gujarat. Kolkatta with Hindustan Motors, Noida with Honda and Bangalore with
Toyota are some of the other automotive manufacturing regions around the country.
OVERVIEW:
The Indian Automobile Industry manufactures over 11 million vehicles and
exports about 1.5 million each year. The dominant products of the industry are twowheelers with a market share of over 75% and passenger cars with a market share of
about 16%.Commercial vehicles and three-wheelers share about 9% of the market
between them. About 91% of the vehicles sold are used by households and only
about 9% for commercial purposes. The industry has a turnover of more than USD
$35 billion and provides direct and indirect employment to over 13 million people?

The supply chain is similar to the supply chain of the automotive industry in Europe
and America.
Interestingly, the level of trade exports in this sector in India has been
medium and imports have been low. However, this is rapidly changing and both
exports and imports are increasing. The demand determinants of the industry are
factors like affordability, product innovation, infrastructure and price of fuel. Also,
the basis of competition in the sector is high and increasing, and its life cycle stage
is growth. With a rapidly growing middle class, all the advantages of this sector in
India are yet to be leveraged.
With a high cost of developing production facilities, limited accessibility to
new technology, and increasing competition, the barriers to enter the Indian
Automotive sector are high. On the other hand, India has a well-developed tax
structure. The power to levy taxes and duties is distributed among the three tiers of
Government. The cost structure of the industry is fairly traditional, but the
profitability of motor vehicle manufacturers has been rising over the past five years.
Major players, like Tata Motors and Maruti Suzuki have material cost of about 80%
but are recording profits after tax of about 6% to 11%.
The level of technology change in the Motor vehicle Industry has been high
but, the rate of change in technology has been medium. Investment in the
technology by the producers has been high. System-suppliers of integrated
components and sub-systems have become the order of the day. However, further
investment in new technologies will help the industry be more competitive. Over the
past few years, the industry has been volatile. Currently, India's increasing per capita

10

disposable income which is expected to rise by 106% by 2015 and growth in exports
is playing a major role in the rise and competitiveness of the industry.
Tata Motors is leading the commercial vehicle segment with a market share
of about 64%. Maruti Suzuki is leading the passenger vehicle segment with a market
share of 46%. Hyundai Motor India and Mahindra and Mahindra are focusing
expanding their footprint in the overseas market. Hero MotoCorp is occupying over
41% and sharing 26% of the two-wheeler market in India with Bajaj Auto. Bajaj
Auto in itself is occupying about 58% of the three-wheeler market.
Consumers are very important of the survival of the Motor Vehicle
manufacturing industry. In 2008-09, customer sentiment dropped, which burned on
the augmentation in demand of cars. Steel is the major input used by manufacturers
and the rise in price of steel is putting a cost pressure on manufacturers and cost is
getting transferred to the end consumer. The price of oil and petrol affect the driving
habits of consumers and the type of car they buy.
The key to success in the industry is to improve labour productivity, labour
flexibility, and capital efficiency. Having quality manpower, infrastructure
improvements, and raw material availability also play a major role. Access to latest
and most efficient technology and techniques will bring competitive advantage to
the major players. Utilizing manufacturing plants to optimum level and
understanding implications from the government policies are the essentials in the
Automotive Industry of India.

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HISTORY:
The first car ran on India's roads in 1897. Until the 1930s, cars were
imported directly, but in very small numbers. Embryonic automotive industry
emerged in India in the 1940s. Mahindra & Mahindra was established by two
brothers as a trading company in 1945, and began assembly of Jeep CJ-3A utility
vehicles under license from Willys. The company soon branched out into the
manufacture of light commercial vehicles (LCVs) and agricultural tractors.
Following the independence, in 1947, the Government of India and the
private sector launched efforts to create an automotive component manufacturing
industry to supply to the automobile industry. However, the growth was relatively
slow in the 1950s and 1960s due to nationalization and the license raj which
hampered the Indian private sector. After 1970, the automotive industry started to
grow, but the growth was mainly driven by tractors, commercial vehicles and
scooters. Cars were still a major luxury. Japanese manufacturers entered the Indian
market ultimately leading to the establishment of Maruti Udyog. A number of
foreign firms initiated joint ventures with Indian companies.
In the 1980s, a number of Japanese manufacturers launched joint-ventures
for building motorcycles and light commercial-vehicles. It was at this time that the
Indian government chose Suzuki for its joint-venture to manufacture small cars.
Following the economic liberalization in 1991 and the gradual weakening of the
license raj, a number of Indian and multi-national car companies launched
operations. Since then, automotive component and automobile manufacturing
growth has accelerated to meet domestic and export demands.

12

Following economic liberalization in India in 1991, the Indian automotive

industry has demonstrated sustained growth as a result of increased competitiveness
and relaxed restrictions. Several Indian automobile manufacturers such as Tata
Motors, Maruti Suzuki and Mahindra and Mahindra, expanded their domestic and
international operations. India's robust economic growth led to the further expansion
of its domestic automobile market which has attracted significant India-specific
investment by multinational automobile manufacturers.
In February 2009, monthly sales of passenger cars in India exceeded 100,000
units and have since grown rapidly to a record monthly high of 182,992 units in
October 2009. From 2003 to 2010, car sales in India have progressed at a CAGR of
13.7%, and with only 10% of Indian households owning a car in 2009 (whereas this
figure reaches 80% in Switzerland for example) this progression is unlikely to stop
in the coming decade. Congestion of Indian roads, more than market demand, will
likely be the limiting factor.
SUPPLY CHAIN OF AUTOMOBILE INDUSTRY
The supply chain of automotive industry in India is very similar to the supply
chain of the automotive industry in Europe and America. The orders of the industry
arise from the bottom of the supply chain i. e., from the consumers and go through
the automakers and climbs up until the third tier suppliers. However the products, as
channeled in every traditional automotive industry, flow from the top of the supply
chain to reach the consumers. Automakers in India are the key to the supply chain
and are responsible for the products and innovation in the industry.

13

The description and the role of each of the contributors to the supply chain are
discussed below.

Third Tier Suppliers: These companies provide basic products like rubber,
glass, steel, plastic and aluminum to the second tier suppliers.

Second Tier Suppliers: These companies design vehicle systems or bodies

for First Tier Suppliers and OEMs. They work on designs provided by the
first tier suppliers or OEMs. They also provide engineering resources for
detailed designs. Some of their services may include welding, fabrication,
shearing, bending etc.

First Tier Suppliers: These companies provide major systems directly to

assemblers. These companies have global coverage to follow their customers
to various locations around the world. They design and innovate to provide
"black-box" solutions for the requirements of their customers. Black-box
solutions are solutions created by suppliers using their own technology to
meet the performance and interface requirements set by assemblers.

PRODUCT AND SERVICE SEGMENTATION:

The automotive industry of India is categorized into passenger cars, twowheelers, commercial vehicles and three-wheelers, with two-wheelers dominating
the market. More than 75% of the vehicles sold are two-wheelers. Nearly 59% of
these two-wheelers sold were motorcycles and about 12% were scooters. Mopeds
occupy a small portion in the two-wheeler market however; electric two-wheelers
are yet to penetrate.

14

The passenger vehicles are further categorized into passenger cars, utility
vehicles and multi-purpose vehicles. All sedan, hatchback, station wagon and sports
cars fall under passenger cars. Tata Nano is the world's cheapest passenger car,
manufactured by Tata Motors - a leading automaker of India. Multi-purpose vehicles
or people-carriers are similar in shape to a van and are taller than a sedan, hatchback
or a station wagon, and are designed for maximum interior room. Utility vehicles are
designed for specific tasks. The passenger vehicles manufacturing account for about
15% of the market in India.
Commercial vehicles are categorized into heavy, medium and light. They
account for about 5% of the market. Three-wheelers are categorized into passenger
carriers and goods carriers. Three-wheelers account for about 4% of the market in
India.
VEHICLE REGISTRATION:
India had over 100 million vehicles registered on its roads in the year 2008.
This is a growth of about 100% in the past 9 years. Over 77% and about 77 million
of these vehicles are two-wheelers, about 14% and over 14 million are cars, jeeps
and taxis. Over 5 million and over 1 million vehicles registered are goods vehicles
and buses respectively.
Two-wheelers account a significant market share. Tata Motors with the
launch of Tata Nano is trying to attract some of these two-wheeler buyers to buy a
small, cheap and affordable passenger car.

15

GEOGRAPHIC SEGMENTATION:
The total number of new vehicles registered in the 28 states and 7 union
territories of India in the year 2008 were about 106,591. The diagram above displays
the registration of new vehicles in various states and union territories. About 16
states and 1 union territory had over a million new vehicles registered. Tamil Nadu
had about 16 million new vehicles registered, Maharastra had over 13 million, and
Gujarat had over 10 million.
About 91% of these vehicles are non-commercial vehicles purchased by
households looking for a two-wheeler, or a car. Only about 9% of new vehicles
registered are used for commercial purposes. Details of category wise new vehicle
registrations in the various states and union territories are displayed. The number of
new vehicles registrations has grown by about 66% in the past five years.
EXPORTS
Indias automobile exports have grown consistently and reached $4.5 billion
in 2009, with United Kingdom being India's largest export market followed by Italy,
Germany, Netherlands and South Africa. India's automobile exports are expected to
cross $12 billion by 2014.
According to New York Times, India's strong engineering base and expertise
in the manufacturing of low-cost, fuel-efficient cars has resulted in the expansion of
manufacturing facilities of several automobile companies like Hyundai Motors,
Nissan, Toyota, Volkswagen and Suzuki.

16

INTERNATIONAL MARKETS
International Markets Exports:

The level of trade export is medium

The level of trade export is increasing

International Markets Imports

The level of trade import is low

The level of trade import is increasing

INTERNATIONAL MARKETS ANALYSIS:

The Indian automotive industry embarked a new journey in 1991 with delicensing of the sector and subsequent opening up for 100% foreign direct
investment (FDI). Since then almost all global majors have set up their facilities in
Indian taking the level of production from 2 million in 1991 to over 10 million in
recent years. The exports in automotive sector have grown on an average compound
annual growth rate of 30% per year for the last seven years. The export earnings
from this sector are over USD 6 billion.
Even with this rapid growth, the Indian automotive industry's contribution in
global terms is very low. This is evident from the fact that even thought passenger
and commercial vehicles have crossed the production figures of 2.3 million in the
year 2008, yet India's share is about 3.28% of world production of 70.53 million

17

passenger and commercial vehicles. India's automotive exports constitute only about
0.3% of global automotive trade.
BASIS OF COMPETITION:
Competition in this industry is high. Competition in this industry is
increasing. Automotive industry is a volume-driven industry, and certain critical
mass is a pre-requisite for attracting the much-needed investment in research and
development and new product design and development. Research and development
investment is needed for innovations which is the lifeline for achieving and retaining
competitiveness in the industry. This competitiveness in turn depends on the
capacity and the speed of the industry to innovate and upgrade. The most important
indices of competitiveness are productivity of both labor and capital.
The concept of attaining competitiveness on the basis of low cost and
abundant labor, favorable exchange rates, low interest rates and concessional duty
structure is becoming inadequate and therefore, not sustainable. A greater emphasis
is required on the development of the factors like innovation which can ensure
competitiveness on a long-term basis.
India, with a rapidly growing middle class (450 million in 2007 as per
NCAER Report), market oriented stable economy, availability of trained manpower
at competitive cost, fairly well developed credit and financing facilities and local
availability of almost all the raw materials at a competitive cost, has emerged as one
of the favorite investment destinations for the automotive manufacturers. These
advantages need to be leveraged in a manner to attain the twin objective of ensuring

18

availability of best quality product at lower cost to the consumers on the one hand
and developing and assimilating the latest technology in the industry on the other
hand.
As per Automotive Mission Plan 20062016 (2008), the Indian Government
recognizes its role as a catalyst and facilitator to encourage the companies to move
to higher level of competitive performance. The Indian Government wants to create
a policy environment to help companies gain competitive advantage. The
government aims that with its policies its encourage growth, promote domestic
competition and stimulate innovation.
LIFE CYCLE:
The life cycle stage is growth Life Cycle Reasons The market for
manufacturing motor vehicles is consistently increasing. The products manufactured
by this industry are profitable. Companies have been consistently opening new plats
and employing over the past five years. Japanese and European manufacturers of
motor vehicles have entered the market. Industry value added has been rising, along
with the rise in GDP. Life Cycle Analysis
General improvement in availability of trained manpower and good
infrastructure is required for sustainable growth of the industry. Keeping this in
view, the Indian Government has launched a unique initiative of National
Automotive Testing and R&D Infrastructure Project (NATRIP) to provide
specialized facilities for Testing, Certification and Homologation to the industry. A

19

similar initiative is required for creating specialized institutions in automotive sector

for education, training and development.
The auto industry has grown in the clusters of interconnected companies
which are linked by commonalities and complementarities. The major clusters are in
and around Manesar in North, Pune in West, Chennai in South, Jamshedpur-Kolkata
in East and Indore in Central India. The Government is planning to create a National
Level Specializes Education and Training Institute for Automotive Sector and to
enhance the transportation, communication and export infrastructure facilities.
The contribution of automotive sector in the GDP of India is expected to
double by 2016 through major spotlight on export of small cars, Multi-Utility
Vehicles, Two- and Three-wheelers.
KEY COMPETITORS
Tata Motors
Market Share: Commercial Vehicles 63.94%, Passenger Vehicles 16.45%
Tata Motors Limited is India's largest automobile company, with
consolidated revenues of USD 14 billion in 2008-09. It is the leader in commercial
vehicles and among the top three in passenger vehicles. Tata Motors has winning
products in the compact, midsize car and utility vehicle segments. The company is
the world's fourth largest truck manufacturer, and the world's second largest bus
manufacturer with over 24,000 employees. Since first rolled out in 1954, Tata
Motors as has produced and sold over 4 million vehicles in India.

20

Tata Motors is the first company from India's engineering sector to be listed
in the New York Stock Exchange (September 2004), has also emerged as an
international automobile company. Through subsidiaries and associate companies,
Tata Motors has operations in the United Kingdom, South Korea, Thailand and
Spain. Among them is Jaguar Land Rover, a business comprising the two British
brands which was acquired in 2008. In 2004, it acquired the Daewoo Commercial
Vehicles Company, South Korea's second largest truck maker.
The rechristened Tata Daewoo Commercial Vehicles Company has launched
several new products in the Korean market, while also exporting these products to
several international markets. Today two-thirds of heavy commercial vehicle exports
out of South Korea are from Tata Daewoo. In 2005, Tata Motors acquired a 21%
stake in Hispano Carrocera, a reputed Spanish bus and coach manufacturer, and
subsequently the remaining stake in 2009. Hispano's presence is being expanded in
other markets.
In 2006, Tata Motors formed a joint venture with the Brazil-based
Marcopolo, a global leader in bodybuilding for buses and coaches to manufacture
fully built buses and coaches for India and select international markets. In 2006, Tata
Motors entered into joint venture with Thonburi Automotive Assembly Plant
Company of Thailand to manufacture and market the company's pickup vehicles in
Thailand. The new plant of Tata Motors (Thailand) has begun production of the
Xenon pickup truck, with the Xenon having been launched in Thailand in 2008. Tata
Motors is also expanding its international footprint by franchises and joint ventures

21

assembly operations in Kenya, Bangladesh, Ukraine, Russia, Senegal and South

Africa.
With over 3,000 engineers and scientists, the company's Engineering
Research Centre, established in 1966, has enabled pioneering technologies and
products. The company today has R&D centres in Pune, Jamshedpur, Lucknow,
Dharwad in India, and in South Korea, Spain, and the UK. It was Tata Motors,
which developed the first indigenously developed Light Commercial Vehicle, India's
first Sports Utility Vehicle and, in 1998, the Tata Indica, India's first fully indigenous
passenger car. Within two years of launch, Tata Indica became India's largest selling
car in its segment. In 2005, Tata Motors created a new segment by launching the
Tata Ace, India's first indigenously developed mini-truck.
In January 2008, Tata Motors unveiled its People's Car, the Tata Nano, a
development which signifies a first for the global automobile industry. Nano brings
the comfort and safety of a car within the reach of thousands of families. The
standard version has been priced at USD 2,200 or Rs.100,000 (excluding VAT and
transportation cost). The Tata Nano has been subsequently launched as planned, in
India in March 2009.
Maruti Suzuki India
Market Share: Passenger Vehicles 46.07%
Maruti Suzuki India Limited, a subsidiary of Suzuki Motor Corporation of
Japan, is India's largest passenger car company, accounting for over 45% of the
domestic car market. The company offers a complete range of cars from entry level

22

Maruti-800 and Alto, to stylish hatchback Ritz, A star, Swift, Wagon-R, Estillo and
sedans DZire, SX4 and Sports Utility vehicle Grand Vitara.
Since inception in 1983, Maruti Suzuki India has produced and sold over 10
million vehicles in India and exported over 500,000 units to Europe and other
countries. The company's revenue for the fiscal 2010-2011 stood over Rs 375,224
million and Profits after Tax at over Rs. 22,886 million.
Hyundai Motor India
Market Share: Passenger Vehicles 14.15%
Hyundai Motor India Limited is a wholly owned subsidiary of world's fifth
largest automobile company, Hyundai Motor Company, South Korea, and is the
largest passenger car exporter. Hyundai Motor presently markets 49 variants of
passenger cars across segments. These includes the Santro in the B segment, the i10,
the premium hatchback i20 in the B+ segment, the Accent and the Verna in the C
segment, the Sonata Transform in the E segment.
Hyundai Motor, continuing its tradition of being the fastest growing
passenger car manufacturer, registered total sales of 559,880 vehicles in the year
2009, an increase of 14.4% over 2008. In the domestic market it clocked a growth of
18.1% as compared to 2008 with 289,863 units, while overseas sales grew by
10.7%, with export of 270,017 units. Hyundai Motor currently exports cars to more
than 110 countries across European Union, Africa, Middle East, Latin America and
Asia. It has been the number one exporter of passenger car of the country for the
sixth year in a row.

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Mahindra & Mahindra

Market Share: Commercial Vehicles 10.01%, Passenger Vehicles 6.50%, Three
Wheelers 1.31%
Mahindra & Mahindra is mainly engaged in the Multi Utility Vehicle and
Three Wheeler segments directly. The company competes in the Light Commercial
Vehicle segment through its joint venture subsidiary Mahindra Navistar Automotives
Limited and in the passenger car segment through another joint venture subsidiary
Mahindra Renault. In the year 2009, on the domestic sales front, the Company along
with its subsidiaries sold a total of 220,213 vehicles (including 44,533 threewheelers,

8,603

Light

Commercial

Vehicles

through

Mahindra

Navistar

Automotives and 13,423 cars through Mahindra Renault), recording a growth of

0.6% over the previous year.
The company's domestic Multi Utility Vehicle sales volumes increased by
3.3%, as against a decline of 7.4% for industry Multi Utility Vehicle sales. A record
number of 153,653 Multi Utility Vehicles were sold in the domestic market in 2009
compared to 148,761 MUVs in the previous year. Hence, Mahindra & Mahindra
further strengthened its domination of the domestic Multi Utility Vehicle subsegment during the year, increasing its market share to 57.2% over the previous
year's market share of 51.3%.
Ashok Leyland
Market Share: Commercial Vehicles 22%

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Against the backdrop of the sharp slump in demand for commercial vehicles,
during 2008-09, Ashok Leyland registered sales of 47,118 medium and heavy
commercial vehicles (M&HCV), 37.5% less than in the previous year. This includes
16,049 M&HCV buses and 31,069 M&HCV trucks respectively, 8.7% and 46.3%
less than in the previous year.
The company lost 1.8% market share in the Indian medium and heavy
commercial vehicle market during the financial year 2008-09, mainly due to loss of
sales in the truck segment. This was because the Eastern Region, where the
Company's presence had been historically weak, was relatively stable, whilst the
market declined sharply in other regions. The total industry volume of the medium
and heavy duty buses declined by about 8.7%, the Company sold 6,812 vehicles in
the overseas markets during 2008-09. This represents a decrease of approximately
6.5% over the previous year. Total industry volume related to overseas markets to
which the Company exports (such as Sri Lanka, the Middle East) witnessed a
reduction of about 25% over the previous year.

25

COMPANY PROFILE
TATA MOTORS COMPANY PROFILE
Tata Motors Limited is a multinational automotive corporation headquartered
in Mumbai, India. Part of the Tata group, it was formerly known as TELCO (TATA
Engineering and Locomotive and Company). Tata Motors Limited is India's largest
automobile company, with consolidated revenues of INR 1, 23,133 crores (USD 27
billion) in 2010-11. It is the leader in commercial vehicles in each segment, and
among the top three in passenger vehicles with winning products in the compact,
midsize car and utility vehicle segments. It is the world's fourth largest truck and bus
manufacturer.
The company's over 25,000 employees are guided by the vision to be ''best in
the manner in which we operate, best in the products we deliver, and best in our
value system and ethics.'' Established in 1945, Tata Motors' presence indeed cuts
across the length and breadth of India. Over 6.5 million Tata vehicles ply on Indian
roads, since the first rolled out in 1954. The company's manufacturing base in India
is spread across Jamshedpur (Jharkhand), Pune (Maharashtra), Lucknow (Uttar
Pradesh), Pantnagar (Uttarakhand), Sanand (Gujarat) and Dharwad (Karnataka).
Following a strategic alliance with Fiat in 2005, it has set up an industrial
joint venture with Fiat Group Automobiles at Ranjangaon (Maharashtra) to produce
both Fiat and Tata cars and Fiat powertrains. The company's dealership, sales,

26

services and spare parts network comprises over 3,500 touch points; Tata Motors
also distributes and markets Fiat branded cars in India.
Tata Motors, the first company from India's engineering sector to be listed in
the New York Stock Exchange (September 2004), has also emerged as an
international automobile company. Through subsidiaries and associate companies,
Tata Motors has operations in the UK, South Korea, Thailand, Spain and South
Africa. Among them is Jaguar Land Rover, a business comprising the two iconic
British brands that was acquired in 2008. JLR supports two state of the art
engineering and design facilities and three manufacturing plants (Solihull, Castle
Bromwich & Halewood) in the UK.
In 2004, Tata Motors acquired the Daewoo Commercial Vehicles Company,
South Korea's second largest truck maker. The rechristened Tata Daewoo
Commercial Vehicles Company has launched several new products in the Korean
market, while also exporting these products to several international markets. Today
two-thirds of heavy commercial vehicle exports out of South Korea are from Tata
Daewoo.
In 2005, Tata Motors acquired a 21% stake in Hispano Carrocera, a reputed
Spanish bus and coach manufacturer, and subsequently the remaining stake in 2009.
Hispano's presence is being expanded in other markets. In 2006, Tata Motors formed
a joint venture with the Brazil-based Marcopolo, a global leader in body-building for
buses and coaches to manufacture fully-built buses and coaches for India and select
international markets.

27

In 2006, Tata Motors entered into joint venture with Thonburi Automotive
Assembly Plant Company of Thailand to manufacture and market the company's
pickup vehicles in Thailand. The new plant of Tata Motors (Thailand) has begun
production of the Xenon pickup truck, with the Xenon having been launched in
Thailand in 2008. Tata Motors (SA) (Proprietary) Ltd., Tata Motors' joint venture
with Tata Africa Holding (Pty) Ltd., has its assembly plant in South Africa at
Rosslyn, north of Pretoria, in the Gauteng province of South Africa. The plant can
assemble, from semi knocked down (SKD) kits, light, medium and heavy
commercial vehicles ranging from 4 - 50 tonnes.
Tata Motors is also expanding its international footprint, established through
exports since 1961. The company's commercial and passenger vehicles are already
being marketed in several countries in Europe, Africa, the Middle East, South East
Asia, South Asia, CIS, Russia and South America. It has franchisee/joint venture
assembly operations in Bangladesh, Ukraine, and Senegal.
The foundation of the company's growth over the last 65 years is a deep
understanding of economic stimuli and customer needs, and the ability to translate
them into customer-desired offerings through leading edge R&D. With over 4,500
engineers and scientists, the company's Engineering Research Centre, established in
1966, has enabled pioneering technologies and products. The company today has
R&D centres in Pune, Jamshedpur, Lucknow, Dharwad in India, and in South Korea,
Spain, and the UK.
It was Tata Motors, which developed the first indigenously developed Light
Commercial Vehicle, India's first Sports Utility Vehicle and, in 1998, the Tata Indica,

28

India's first fully indigenous passenger car. Within two years of launch, Tata Indica
became India's largest selling car in its segment. In 2005, Tata Motors created a new
segment by launching the Tata Ace, India's first indigenously developed mini-truck.
In January 2008, Tata Motors unveiled its People's Car, the Tata Nano, which
India and the world have been looking forward to. The Tata Nano has been
subsequently launched, as planned, in India in March 2009. A development, which
signifies a first for the global automobile industry, the Nano brings the comfort and
safety of a car within the reach of thousands of families.
Designed with a family in mind, it has a roomy passenger compartment with
generous leg space and head room. It can comfortably seat four persons. Its monovolume design will set a new benchmark among small cars. Its safety performance
exceeds regulatory requirements in India. Its tailpipe emission performance too
exceeds regulatory requirements. In terms of overall pollutants, it has a lower
pollution level than two-wheelers being manufactured in India today. The lean
design strategy has helped minimize weight, which helps maximize performance per
unit of energy consumed and delivers high fuel efficiency. The high fuel efficiency
also ensures that the car has low carbon dioxide emissions, thereby providing the
twin benefits of an affordable transportation solution with a low carbon footprint.
In May 2009, Tata Motors ushered in a new era in the Indian automobile
industry, in keeping with its pioneering tradition, by unveiling its new range of
world standard trucks called Prima. In their power, speed, carrying capacity,
operating economy and trims, they will introduce new benchmarks in India and
match the best in the world in performance at a lower life-cycle cost. In October

29

2010, Tata Motors launched the Tata Aria, the first Indian four-wheel drive
crossover. The Tata Aria redefines several benchmarks with its design and
technologies, offering class leading features that take comfort and safety to a new
height.
Tata Motors is equally focused on environment-friendly technologies in
emissions and alternative fuels. It has developed electric and hybrid vehicles both
for personal and public transportation. It has also been implementing several
environment-friendly technologies in manufacturing processes, significantly
enhancing resource conservation.
Through its subsidiaries, the company is engaged in engineering and
automotive solutions, construction equipment manufacturing, automotive vehicle
components manufacturing and supply chain activities, machine tools and factory
automation solutions, high-precision tooling and plastic and electronic components
for automotive and computer applications, and automotive retailing and service
operations.
Tata Motors is committed to improving the quality of life of communities by
working on four thrust areas employability, education, health and environment. The
activities touch the lives of more than a million citizens. The company's support on
education and employability is focused on youth and women. They range from
schools to technical education institutes to actual facilitation of income generation.
In health, our intervention is in both preventive and curative health care. The goal of
environment protection is achieved through tree plantation, conserving water and
creating new water bodies and, last but not the least, by introducing appropriate

30

technologies in our vehicles and operations for constantly enhancing environment

care.
TATA MOTORS HISTORY:
Established in 1945, when the company began manufacturing locomotives,
the company manufactured its first commercial vehicle in 1954 in collaboration
with Daimler-Benz AG, which ended in 1969.Tata motors is a dual listed company
traded on both the Bombay stock exchange as well as on the Newyork stock
exchange. Tata Motors in 2005 was ranked among the top 10 corporations in India
with an annual revenue exceeding INR 320 billion. In 2010, Tata Motors surpassed
Reliance to win the converted title of Indias most valuable brand in an annual
survey conducted by Brand Finance and The Economic Times.
Tata Motors is Indias largest automobile company, with consolidated
revenues of USD 20 billion in 2009-10. It is the leader in commercial vehicles and
among the top three in passenger vehicles. Tata Motors has products in the compact,
midsize car and utility vehicle segments. The company is the worlds second largest
bus manufacturer, and employs 24,000 workers. Since first rolled out in 1954, Tata
Motors has produced and sold over 4 million vehicles in India.
Tata motors have auto manufacturing and assembly plants in Jamshedpur,
Pantnagar, Lucknow, Ahmedabad, Sanand, Dharwad and Pune in India, as well as in
Argentina, South Africa and Thailand.
EXPANSION
After years of dominating the commercial vehicle market in India, Tata
Motors entered the passenger vehicle market in India; Tata Motors entered the
passenger vehicle market in 1991 by launching the Tata Sierra, a multi utility

31

vehicle. After the launch of three more vehicles, Tatamobile (1988), a light
commercial vehicle, Tata Sumo (LCV, 1994) and Tata Safari (1998, Indias) first
sports dutility vehicle). Tata launched the Indica in 1998, the first fully indigenous
passenger car of India.
Though the car was initially planned by auto-analysts, the cars excellent fuel
economy, powerful engine and aggressive marketing strategy made it of the best
selling cars in the history of the Indian automobile industry. A newer version of the
car, named Indica V2, was a major improvement over the previous version and
quickly become a mass-favorite. Tata Motors also successfully exported large
quantities of the car to South Africa. The success of India in many ways marked the
rise of Tata Motors.
IMPORTANT DEVELOPMENTS
TATA NANO:
In January 2008, Tata Motors launched Tata Nano; the least expensive
production car in the world at about Rs.120, 000 (US $3000) .The city cars was
unveiled during the Auto Expo 2008 exhibition in Pragati Maidan, New Delhi.
Tata has faced controversy over developing the Nano as some environmentalists are
concerned that the launch of such low-priced car could lead to global warming. Tata
has set up a factory in Sanand, Gujarat and the first Nanos are to roll out summer
2009.
Tata Nano Europa has been developed for sale in developed countries and is
to hit markets in 2010 while the normal Nano should hit markets in South Africa,
Kenya and countries in Asia and Africa by late 2009. A battery version is also
planned.

32

TATA ACE:
Tata Ace, Indias first indigenously developed sub-one ton mini-truck was
launched in May 2005. The mini-truck was a huge success in India with autoanalysis claiming that Ace had changed the dynamics of the light commercial
vehicle (LCV) market in the country by creating a new market segment termed the
small commercial vehicle (SCV) segment. Ace rapidly emerged as the first choice
for transporters and single truck owners for city and rural transport.
By October 2005, LCV sales of Tata Motors had grown by 36.6 percent to
28,537 units due to the rising demand for Ace. The Ace was built with a load body
produced by Auto line was producing 300 load bodies per day for Tata Motors. Ace
is still a top seller for TML with 5 lakh units sold to date (June 2010).
OPERATIONS OF TATA IN INDIA:
Tata Motors Limited is Indias largest automobile company, with revenues of
Rs.35, 651.48 crore (US$7.91 Billion) in 2007-08.It is the leader in commercial
vehicles in each segment, and among the top three in passenger vehicles in India
with products in the compact, midsize car and utility vehicle segments. Tata vehicles
have been produced domestically since the first Tata vehicle was assembled in 1954.
Tata set up an industrial joint venture with Flat Group Automobiles at Ranjanga on
(Maharastra) to produce both Fiat and Tata cars and Fiat power trains. Tata Motors
also distributes and markets Fiat branded cars in India.
Sales & Service Network
Tata Motors has more than 250 dealerships in more than 195 cities across 27
states and 4 Union Territories of India. It has the 3 rd largest Sales and Service
Network after Maruti Suzuki and Hyundai.

33

PROFILE OF JASPER INDUSTRIES LIMITED:

HEAD OFFICE:
Jasper Industries Limited
Golden Edifice, Khairatabad, Hyderabad, Andhra Pradesh 500004
ABOUT JASPER:
Jasper Industries Pvt. Ltd. formerly known as B Seshagiri Rao & Sons
Industries Ltd., is an authorized dealer of Commercial Vehicles of Tata Motors for
Hyderabad, Ranga Reddy, Warangal, Adilabad, Khammam, Karimnagar, Medak,
Mahaboobnagar, Nalgonda and Nizamabad Districts. It is an authorized dealer for
both Commercial and Passenger vehicles for Krishna, West Godavari and Guntur
Districts. All the above districts fall under the territory of Jasper Industries Pvt. Ltd.
The Company has its main sales offices at Hyderabad and Vijayawada, while it has
branches in different parts of its territory.
Its major workshops are at Vijayawada and Hyderabad which cater to a large
number of customer needs. The company also sells spares of TATA Motors at their
workshops mentioned above and has few outlets in different districts, to facilitate
easy accessibility to customers in its territory. It also has a mobile, spares on wheels,
van to deliver genuine Telco spares at the doorstep of retailers, fleet operators and
mechanics throughout our territory.
Services
Jasper has upgraded modern techniques and facilities to service Passenger
and Commercial Vehicles at Vijayawada. Servicing for Trucks and other similar
Commercial Vehicles is done at Hyderabad workshop.

34

VIJAYAWADA DIVISION:
Workshop for Passenger Cars
Benz Circle car workshop with its 69 working Bays, installed machinery,
equipment and special tolls, is equipped to service and handle any type of repairs
and maintenance of cars.
Workshop for Commercial Vehicles
A new commercial workshop was constructed on NH5 near Vijayawada
airport, on a site of 2.86 acres with a built up area of 47,600 sq.ft. With 52 bays,
which is a pillar less construction? The workshop is equipped with upgraded
machinery and special tools. Engine reconditioning machines like boring, honing
and 100 tons hydraulic press with a small machine shop, has been installed. Micro
Fuel Injection Pump test bench, Lucas TVS electrical test bench, Rane power
steering etc., equipments has been installed to provide complete service to the
customer. The workshop is equipped with pneumatic tools, there by reducing the
downtime of the vehicles, as well as providing better working environment for the
workforce.
HYDERABAD DIVISION:
Commercial Vehicles:
Jasper Industries Pvt., Ltd. operates as a dealer of commercial and passenger
vehicles of Tata Motors in the state of Andhra Pradesh in India. It offers passenger
cars, utility vehicles, buses, trucks, and spare parts to retailers, fleet operators, and
mechanics. The company also operates workshops to provide repair and
maintenance services for vehicles. Jasper Industries Pvt., Ltd. was formerly known

35

as B. Seshagiri Rao & Sons Pvt, Ltd. The company was founded in 1955 and is
based in Hyderabad, India.
The commercial vehicle workshop located at Autonagar, Hyderabad, is on
NH9 connecting Hyderabad and Vijayawada. The workshop is on site of 1.5 acres,
with a built up area of 38,000 sq.ft, and is equipped with upgraded machinery and
special tools. As surplus engine reconditioning machining facilities are available in
the city, these machines have not been installed. Micro Fuel Injection Pump test
bench, rane power steering equipment has been installed at the workshop. This
workshop has been provided with mobile service van to meet the customers needs.

36

THEORETICAL FRAME WORK

INTRODUCTION:
HUMAN RESOURCE:
The term Human Resources can be explained in the sense of that it is a
resource like any other resource. It does mean that the management can get and use
the skill, knowledge, ability, etc. through the development of skills, tapping and
utilizing them again and again.
According, to Leon. C. Magginson, the term Human Resources can be
thought of as, the total knowledge, skills, creative abilities, talents and aptitudes of
an organizations workforce, as well as the value, attitudes and beliefs of the
individuals involved.
HUMAN RESOURCE MANAGEMENT:
Different terms are used to denote Human Resource Management relations,
employee, employer relations, industrial relations, personnel management, human
capital management, human asset management, human resource management and
the like. Through these terms can be differentiated widely, the basic nature of
distinction lies in the scope or coverage and evolutionary stage.
In simple sense, human resource management means employing people,
developing their resources, utilizing, maintaining and compensating their services in
tune with the job and organizational requirements.
Human Resource Management is managing(planning, organizing, directing and
controlling) the function of employing, developing and compensating human
resources resulting in creating and developing human relations and utilization of

37

human resources with a view to contribute proportionately(due to them) to the

organizational individual and social goals.
HRM PRACTICES:
The functions or practices of HR can be broadly classified into two categories:
1. Managerial functions.
2. Operative functions.
The general main important HR practices are:
RECRUITMENT:
DEFINITION:
A process to discover the sources of manpower to meet the recruitments of the
staffing schedule and to employ effective measures for attracting that manpower in
adequate members to facilitate effective selection of an efficient workforce.
Edwin. B. Flippo defined recruitment as the process of searching for prospective
employees and stimulating them to apply for jobs in the organization.
PROCESS OF RECRUITMENT:
Process of recruitment consists of three subsystems in recruitment viz, sources
of recruitment, techniques of recruitment to attract the candidate and stimulating the
candidate to apply.

Finding out and developing the sources where the required number and kind
of employees are/will be available.

Developing suitable techniques and employing the techniques to attract

candidates.

Stimulating as many candidates as possible and asking them to apply for jobs
irrespective of number of candidates required.

38

FACTORS AFFECTING RECRUITMENT:

Both internal and external factors affect recruitment.
1. External factors include.
2. Internal factors include.
SOURCES OF RECRUITMENT:
1. INTERNAL SOURCES
Internal sources include:
a. Present permanent employees,
b. Present temporary casual/partime employees,
c. Retrenched or retired employees,
d. Dependants of deceased, disabled, retrieved and present employees,
e. Employee referrals.
Why do organizations prefer internal sources?

It can be used as a technique of motivation.

Trade unions can be satisfied.

Cost, time of selection, training etc... Can be minimized.

Loyalty, commitment, a sense of belongingness and security of present

employees can be enhanced.

2. EXTERNAL SOURCES: External sources are those sources which are

outside the organizational pursuits. It includes
a. Campus recruitment
b. Private employment agencies/consultants
c. Public employment exchanges
d. Professional associations

39

e. Data banks
f. Casual applicants
g. Similar organizations and
h. Trade unions
Organizations search for required candidates from external sources for the
following reasons
The suitable candidates with skill, knowledge, talent, etc,. Are generally
available.
Candidates can be selected without any pre-conceived notion or reservations.
Latest knowledge, skill, innovative or creative talent can also be flowed into
the organization.
Human resources mix can be balanced with different background,
experience, skill, etc.
MODERN SOURCES AND TECHNIQUES OF RECRUITMENT:
In addition to traditional sources, a number of modern recruitment sources and
techniques are being used by corporate sector.
These techniques include
a. Walk-in
b. Consult-in
c. Head-hunting
d. Body shopping
e. Business alliances
f. E-recruitment

40

RECRUITMENT TECHNIQUES
a) Promotions and
b) Transfers
Techniques useful to stimulate external candidates
c) Recommendations of the present employees
d) Sconnting
e) Advertising
ALTERNATIVES TO RECRUITMENT
Organizations sometimes may opt for alternatives to recruitment in view of the
cost of recruitment as well as failure of recruitment appeals in getting right
candidates. These alternatives include:
a) Work sharing/part-time employment
b) Overtime
c) Employee leasing
d) Temporary employment
Conclusion: Though there are several sources of recruitment, employers use these
sources selectively depending upon the type of the skills needed and the level of the
job.
SELECTION:
Choosing the most appropriate candidates and offering them jobs. The
selection procedure is the system of functions and devices adopted in a given
company to ascertain whether the candidates specifications are matched with the
job specifications and requirements or not.

41

ESSENTIALS OF SELECTION PROCEDURE:

The selection process can be successful if the following requirements are satisfied.
1. Some one should have the authority to select. This authority comes from the
employment requisition, as developed by an analysis of the work-load and
work-force.
2. There must be some standard of personnel with which a prospective
employee may be compared, i.e., a comprehensive job description and job
specification should be available beforehand.
3. There must be sufficient number of applicants from whom the required
number of employees may be selected.
Successive Hurdles in Selection Process:
Candidates

Written Examination

Preliminary Interview

Group Discussion

Tests

42

Final Interview

Medical Examination

Reference Checks

Line Managers Decision

Employment

SIGNIFICANCE OF SELECTION PROCESS:

Selection of HR to man to organization is a crucial, complex and continuing
function. The ability of an organization to attain its goals effectively and to develop
in a dynamic environment largely depends upon the effectiveness of its selection
programmatic right personnel are selected, the remaining functions of personnel
management become easier, the employee contribution and commitment will be at
optimum level and employee-employer relation will be congenial.
In an opposite situation where the right person is not selected, the remaining
functions of personnel management, employee-employer relations will not be
effective. If the right person is selected, he is a valuable asset to the organization and
if faulty selection is made, the employee will become a liability to the organization.
Factors Affecting Selection Decisions
The goal of selection is to sort out or eliminate those judged unqualified to
meet the job and organizational requirements, whereas the goal of recruitment is to

43

create a large pool of persons available and willing to work. Thus, it is said that
recruitment tends to be positive while selection tends to be somewhat negative.
A number of factors affect the selection decision of candidates. The important
among them are:
(i)

Profile matching.

(ii) Organizational and social environment.

(iii) Successive hurdles.
(iv) Multiple correlations.
Environmental Factors Influencing Selection: Both internal environmental factors
as well as external environmental factors influence selection process and decision.
Internal Environment: Internal environmental factors that influence selection
include: size of the company, type of organization structure, type of job design,
complexity, technological volatility, attitude and seriousness of line managers
involved in selection process.
External Environment: External environment factors influencing selection include.
Labor laws, Government rules, regulations and policies, influence of politicians in
recommending candidates, labor market conditions, culture of the country with
regard to nepotism, favoritism, written and unwritten reservation policy of the
Government, and influence of trade unions and professional associations.
PERFORMANCE APPRAISAL:
INTRODUCTION:
The process of HRD helps the employees to acquire and/or develop
technical, managerial and behavioral knowledge, skills and abilities and moulds the
values, beliefs and attributes necessary to perform present and future roles. The

44

process of performance appraisal helps the employee and management to know the
level of employees performance compared to the standard/pre-determined level.
In fact, performance appraisal is the basis for HRD. It was viewed that
performance appraisal was useful to decide upon employee promotion, salary
determination and the like.
MEANING:
Performance appraisal is evaluating employee contribution to the job.

Performance appraisal is the systematic description of an employees jobrelevant strengths and weaknesses.

The basic purpose is to find out how well the employee is performing the job
and establish a plan of improvement.

Appraisals are arranged periodically according to a definite plan.

NEED FOR PERFORMANCE APPRAISAL:

1) Provide information about the performance ranks basing on which decision
regarding salary fixation, confirmation, promotion, transfer and demotion are
taken.
2) Provide feedback information about the level of achievement and behaviors
of subordinate. This information helps to review the performance of the
subordinate, rectifying performance deficiencies and to set new standards of
work, if necessary.
3) Provide information witch helps to counsel the subordinate.
4) Provide information to diagnose deficiency in employee regarding skill,
knowledge, determine training and developmental needs and to prescribe the
means for employee growth provides information for correcting placement.

45

5) To prevent grievance and in disciplinary activities.

360 DEGREE PERFORMANCE APPRAISALS:
The appraiser may be any person who has thorough knowledge about the job
content, contents to be appraised, standards of contents, and who observes the
employee while performing a job. The appraised should be capable of determining
what is more important and what is relatively less important. He should prepare
reports and make judgments without bias. Typical appraisers are: Supervisor, peers,
subordinates, employees themselves, users of service and consultants. Performance
appraisal by all these parties is called360 degrees Performance appraisal.
METHODS OF PERFORMANCE APPRAISAL:
With the evolution and development of appraisal system, a number of methods or
techniques of performance appraisal have been developed.
Methods of Performance Appraisal

Trait Methods
1.Graphic Rating
Scales
Method
2.Ranking Methods
3.Paired Comparison
Methods
4.Forced Distribution
Methods
5.Checklist Methods
a)Simple Checklist
b)Weighted Checklist
c)Forced Choice
Method
6.Essay/Free Form
Appraisal
7.Group Appraisal
8.Confidential Reports

Behavioural Methods
1.Behavioural Checklist

Results Methods
1.Productivity Measures

2.Critical Incident Method

3.Behavioural Anchored
Rating Scales
4.Behavioural Observation
Scales
5.Assessment Centre
6.Psychological Appraisal

2.Balanced Scorecard
3.Human Resource
Accounting
4.Management by
Objectives

46

CONTINUOUS GRAPHIC RATING SCALE:

47

about job,

Designation

work accepts

No

48

opinions and1.

Attitude

Name

No interest in

pointsSI

Indifference to

Interest in

Department

Enthusiastic Enthusiastic

No

SYSTEM OF PERFORMANCE APPRAISAL:

Performance appraisal is a nine step process:
1. Establish performance standards.
2. Communicate standards/expectations to employee.
3. Measure actual performance by following the instructions.
4. Adjust the actual performance due to the environmental influence.
5. Compare the adjusted performance with that of others and previous.
6. Compare the actual performance with standards and find out deviations, if any.
7. Communicate the actual performance to the employee concerned.
8. Suggest changes in job analysis and standards, if necessary.
9. Follow-up performance appraisal report.
USE OF PERFORMANCE APPRAISAL:
Performance appraisal has several uses. The important among them are:

Performance improvement: Performance feedback allows the employee,

manager, and personal specialist to intervene with appropriate actions to
improve performance.

Compensation Adjustments: Performance evaluations help decisionmakers determined who should receive pay raises. Many firms grant part or
all of their pay increases and bonuses based upon merit, which is determined
mostly through performance appraisals.

49

Placement Decisions: Promotions, transfers and demotions are usually

based on past or anticipated performance. Often promotions are a reward for
past performance.

Training and Development Needs: Poor performance may indicate the

need for retraining. Likewise, good performance may indicate untapped
potential that should be developed.

Equal Employment opportunity: Accurate performance appraisals that

actually measure job related performance ensure that internal placement
decisions are not discriminatory.

PROBLEMS OF PERFORMANCE APPRAISAL:

The major problem in performance appraisal is
1. Rating Biases: The problem with subjective measure (is that rating which is not
verifiable by others) has the opportunity for bias. The rater biases include:
a) Halo Effect b) the error of central tendency c) the leniency and strictness biases d)
personal prejudice and e) the regency effect.
a) Halo Effect: It is the tendency of raters to define excessively on the rating of one
trait or behavioral consideration in rating all other trades or behavioral
considerations. One way of minimizing the halo effect is appraising all the
employees by one trait before going to rate on the basis of another trait.
b) The error of central tendency: Some raters follow play safe policy in rating by
rating all the employees around the middle point of the rating scale and they avoid
rating the people both the extremes of the scale they follow play safe policy because
of answerability to management or lack of knowledge about the job and person he is
rating or least interest in his job.

50

c) The Leniency and Strictness

d) Personal Prejudice
e) The Regency Effect
Advantages of Performance Appraisal through Computer:
1. There will be an objective analysis of trades of both the superior and subordinate.
2. There will be a chance for a subordinate to express his views even after
performance appraisal.
3. It over comes the communication barrier.
TRAINING:
Introduction: Organization and individual should develop and progress
simultaneously for their survival and attainment of mutual goals.
MEANING: Training provides technical skills and knowledge. Beach defines
training as.the organized procedure by which people learn knowledge and/or skill
for a definite process. In other words, training improves, changes, moulds the
employees knowledge, skill, behavior, aptitude and attitude towards the
requirements of the job and organization. Thus, trining bridges the differences
between job requirements and employees present specifications.
BENEFITS OF TRAINING:
Benefits of training are multi-faceted. Training benefits the organization, individual
and formulation of policies and in maintenance of relations. These benefits are:
How training benefits the organization:

Leads to improved profitability and/or more positive attitude towards profits

orientation.

Improves the job knowledge and skills at all levels of the organization.

51

Improves the morale of the workforce.

Helps people identify with organizational goals.

Learns from the trainee.

Helps prepared guidelines for work.

Aids in understanding and carrying out organizational policies.

Provides information for future needs in all areas of the organization.

Organization gets more effective decision making and problem solving.

Helps keep costs down in many areas, e.g. production, personnel,

administration, etc.

Improves labor-management relations.

Benefits to the individual which in turn ultimately should benefit the

organization:

Helps the individual in making better decisions and effective problem

solving.

Through training and development, motivational variables of recognition,

achievement, growth, responsibility and advancement are internalized and
operationalised.

Aids in encouraging self-development and self-confidence.

Helps a person handles stress, tension, frustration and conflict.

Increases job satisfaction and recognition.

Helps a person develop speaking and listening skills; also writing skills
when exercises are require.

52

Helps eliminate fear in attempting new tasks.

Benefits in human relations, intra and inter group relations and policy
implementation:

Improve communication between groups and individuals.

Aids in orientation for new employees and those taking new jobs through
transfer or promotion improve inter personal skills.

Improves morale.

Provides a good climate for learning, growth and co-ordination.

TRAINING OBJECTIVES:
Generally, line mangers ask the personnel manager to formulate the training policies.
The Personnel Manager formulates the following training objectives in keeping with
the Companys goals and objectives:
a) To prepare the employee both new and old to meet the present as well as the
changing requirements of the job and the organization.
b) To prevent obsolescence.
c) To impart the new entrants the basic knowledge and skill they need for an
intelligent performance of definite job.
d) To prepare employees for higher level tasks.
e) To broaden the minds of senior mangers by providing them with opportunities
for an interchange of experiences within and outside with a view to correcting
the narrowness of outlook that may arise from over-specialization.
f) To ensure smooth and efficient working of a department.
STAGES OF TRAINING:

53

Training should be conducted in a systematic order to device expected benefits from

it. The training system involves four stages:
Stage 1: Assessment of Training Needs
Training needs are identified on the basis of organizational analysis, job analysis and
man analysis.

Organizational Analysis

Department Analysis

Job/Role Analysis

Employee Analysis

Stage 2: Designing the Training Programme

The success of designing the training programme based on the accurate training
needs assessment and designing the training programme based on the needs.

Instructional Objectives

Learning Principles

Teaching Principles

Training Principles

Content design

Stage 3: Implementation
After designing the training program and making the instructor and trainee ready, the
instructor has to implement the training programme.

On-the-Job Methods

Off-the-Job Methods

Characteristics of the Instructor

54

Conduct the program

Stage 4: Evaluation
Training programmes should be evaluated to correct the shortcomings and improve
further.

Reactions

Learning

Job Behavior

Organization

Ultimate value

TRAINING METHODS:
1. On-The-Job Training Methods: This type of training, also known as job
instruction training. Under this method, the individual is placed on a regular
job and taught the skills necessary to perform that job.

Job Rotation: This type of training involves the movement of the

trainee from one job to another. The trainee receives job knowledge
and gains experience from his supervisor or trainer in each of the
different job assignments. This method gives an opportunity to the
trainee to understand the problems of employees on other jobs and
respect them.

Coaching: The trainee is placed under a particular supervisor who

functions as a coach in training the individual. The supervisor
provides feedback to the trainee on his performance and offers him
some suggestions for improvement. Often the trainee shares some of

55

the duties and responsibilities of the coach and relieves him of his
burden.

Job Instruction: This method is also known as training through step

by step. Under this method, trainer explains the trainee the way of
doing the jobs, job knowledge and skills and allows him to do the
job.

Committee Assignments: Under the committee assignment, group of

trainees are given and asked to solve an actual organizational
problem. The trainees solve the problem jointly. It develops team
work.

2. Off-the-job Methods: Under this method of training, trainee is separated

from the job situation and his attention is focused upon learning the material
related to his future job performance.

Vestibule Training: In this method, actual work conditions are

simulated in a class room. Material, files and equipment those are
used in actual job performance and also in training. This type of
training is commonly used for training personnel for clerical and
semi-skilled jobs.

Role Playing: It is defined as a method of human interaction that

involves realistic behavior in imaginary situations.

Lecture Method: The lecture is a traditional and direct method of

instruction. The instructor organizes the material and gives it to a
group of trainees in the form of a talk. To be effective, the lecture
must motivate and create interest among the trainees.

56

Conference or Discussion: It is a method in training the clerical,

professional and supervisory personnel. This method involves a
group of people who pose ideas, examine and share facts, ideas and
data, test assumptions, and draw conclusions, all of which contribute
to the improvement of job performance.

Programmed Instruction: In recent years this method has become

popular. The subject matter to be learned is presented in a series of
carefully planned sequential units. These units are arranged from
simple to more complex levels of instruction. The method is
expensive and time consuming.

3. Audio-Visual Methods and E-Training:

E-Learning provides the

opportunity of learning from anywhere in the world. For ex. Motorola is a

high-tech firm and much of its training uses on-line multi-media
technologies. Web-based/E-Learning can be revised rapidly to provide for
continuous update of material. Web-based training, when combined with
other communication technology like e-mail, teleconferencing, videoconferencing and groupware provides the following facilities and
advantages.

Self-paced learning

Interactive training

On-line help for trainees

Easy to change/revise computer program

Linkage of the computer programme to the video conferencing

57

ADVANTAGES OF TRAINING:
1) Increased Productivity: An increase in skill results in an increment in both
quality and quantity of output. However, the increasingly technical nature of modern
jobs demands systematic training to make possible even minimum levels of
accomplishment.
2) Heightened Morale: Possession of needed skills helps to meet such basic human
needs as security and ego satisfaction. Collaborate personnel and human relations
can make a contribution toward morale, but they are hollow shells if there is no solid
core of meaningful work done with knowledge, skill and pride.
3) Reduced Supervision: The trained employee is one who can perform with
limited supervision. Both employee and supervisor want less supervision but greater
independence is not possible unless the employee is adequately trained.
4) Reduced Accidents: More accidents are caused by deficiencies in people than by
deficiencies in equipment and working conditions. Proper training in both job skills
and safety attitude should contribute toward a reduction in the accident rate.
5) Increased Organizational Stability: The ability of an organization is to sustain
its effectiveness despite the loss of key personnel, can be developed only through
creation of a reservoir of employees. Flexitbility, the ability to adjust to short-run
variations in the volume of work requires personnel with multiple skills to permit
their transfer to jobs where the demand is highest.
WAGE AND SALARY ADMINISTRATION:
WAGE:
Wage and salary are often discussed in a loose sense, as they are used
interchangeably. But ILO defined the term wage as the remuneration paid by the

58

employer for the services of hourly, daily, weekly and fortnightly employees. It also
means that remuneration paid to production and maintenance or blue collar
employees.

SALARY:
The term salary is defined as the remuneration paid to the clerical and
managerial personnel employed a monthly or annual basis. This distinction between
wage and salary does not seem to be valid in these days of human resources
approach where all employees are treated as human resources and are treated as
human resources and are viewed of par. Hence, these two terms can be used
interchangeably. As such, the term wage and/or salary can be defined as the direct
remuneration paid to an employee compensating his services to an organization.
Salary is also known as basic pay.

Earnings: Earnings are the total amount of remuneration received by an

employee during a given period .These include salary (pay), dearness
allowance, house rent allowance, city compensatory allowance, other
allowances, overtime payments etc.

Nominal Wage: It is wage paid or received in monetary terms. It is also

known as money wage.

Real Wage: Real wage is the amount of wage arrived after discounting
nominal wage by the living cost. It represents the purchasing power of
money wage.

59

Take Home Salary: It is the amount of salary left to the employee after
making authorized deductions like contribution to the provident fund, life
insurance premium, income tax and other charges.

Minimum Wage: It is the amount of remuneration which could meet the

normal needs of the average employee regarded as a human being living in
a civilized society. It is defined as the amount or remuneration,which may
be sufficient to enable a worker to live in reasonable comfort, having regard
to all obligations to which an average worker would ordinarily be subjected
to.

Statutory Minimum Wage: It is the amount of remuneration fixed

according to the provisions of the minimum Wages Act, 1948. Employee
remuneration,

salary,

wage,

employee

compensation

are

used

interchangeably.

The Living Wage: According to the committee of fair wages, the living
wage is the highest amount of remuneration and naturally it would include
the amenities which a citizen living in a modern civilized society is entitled
to expect, when the economy of the country is sufficiently advanced and the
employer is able to meet the expanding aspirations of his workers.

The Fair Wage: Fair wages are equal to that received by workers
performing work of equal skill, difficulty or unpleasantness.

Incentive Wage: This is the amount of remuneration paid to a worker over

and above the normal wage as an incentive for employees contribution to
increased production or saving in time or material.

60

Wage Rate: It is the amount of remuneration for a unit of time excluding

incentives, overtime pay, etc.

Standard Wage Rate: It is the amount of wage fixed for a unit of time on
the basis of job evaluation standards.

OBJECTIVE OF WAGE AND SALARY ADMINISTRATION:

To acquire qualified competent personnel: Qualified and competent

people join the best-paid organizations. As such, the organizations should
aim at payment of salaries at that level, where they can attract competent and
qualified people.

To retain the present employees: If the salary doesnt compare favorably

with that of the other similar organizations, employees quit the present one
and join in the other organization .The organization must keep the wages
levels at the competitive level, in order to prevent such quits.

To attain internal and external equity: Internal equity does not mean
payment of similar wages for similar jobs within the organization. External
equity implies payment of similar wages to similar jobs in comparable
organizations.

To ensure desired behavior: Good rewards reinforce desired behavior like

performance, loyality, accepting new responsibility and changes.

To keep labor and administrative costs in line with the ability of the
organization to pay.

To protect the public as progressive employees and to comply and wage

legislations.

61

To pay according to content and difficulty of job and in tune with the effort
and merit of the employees.

To facilitate pay roll administration of budgeting and wage and salary

control.

To simplify collective bargaining procedures and negotiations.

To promote organization feasibility.

PRINCIPLES OF WAGE AND SALARY ADMINISTRATION:

There are several principles of wages and salary plans, policies and practices. The
important among them are:
1. Wage and salary plans and policies should be sufficiently flexible.
2. Job evaluation must be done scientifically.
3. Wage and salary administration plans must always be consistent with overall
organizational plans and programmes.
4. Wage and salary administration plans and programmes should be in
conformity with the social and economic objectives of the country like
attainment of equality in income distribution and controlling inflationary
trends.
5. These plans should simplify and expedite other administrative processes.
WAGE FIXATION INSTITUTIONS IN INDIA:
Wages are fixed by following institutions in India. They are:
1. Collective Bargaining and Adjudication: Collective bargaining is a
procedure in which compromise is reached through balancing of opposed

62

strengths. It is a means through which employee problems relating to various

issues including wages are settled.
2. Wage Boards: This is one of institutions set-up by the Government of India
for fixation and revision of wages. Separate wage boards are set-up for
separate industries. The wage board takes the following factors into
consideration for fixing the wages in various industries:

Job Evaluation

Wage rates for similar jobs in comparable industries.

Employees productivity

Firms ability to pay

Various wage legislations

Existing level of wage differentials and their desirability

Governments objectives regarding social justice, social equality,

economic justice and economic quality

Place of industry in the economy and society of the country and the
region

Need for incentives, improvement in productivity etc

3. Pay Commissions: This is another institution which fixes and revises the
wages and allowances to the employees working in government and
government departments. Pay Commissions are separately constituted by
Central and State Governments. Central Government so far has appointed
four pay commissions.

63

The First Pay Commission: This Commission was appointed by the

Central Government in the year 1946 with Varadachariar as Chairman.
The commissioner recommended the minimum wage at Rs. 30/- for
lowest grade of Class 4 employee in the Central Government.

The Second Pay Commission: The Central Appointed the Second Pay
Commission in August 1957 with a view to recommending revised pay
scales for different classes of employees of Central Government. The
Commission revised the pay scales by merging 50% of the dearness
allowance with the basic pay and it recommended Rs. 80 as the minimum
remuneration payable to a Central Government employee.

The Third Pay Commission (1970-73): Due to the continuous demand

by the employees of Central Government and the organizations, the
Government appointed Third Pay Commission in April 1970 with a view
to examining the principles which would give the structure of
remuneration and conditions of service of Central Government
employees and to consider and recommend desirable feasible changes in
the structure of remuneration and conditions of service of Central
Government employees.

The Fourth Pay Commission: The Central Government appointment

the Fourth Pay Commission in July, 1983 in response to the demands
made by the trade unions for the revisions of pay scales. The Pay
Commission has taken into consideration the following factors:
1. Incidence of poverty in country

64

2. Earning of employees in State Government, Private Sector,

Unorganized and Agricultural Sectors
3. Enforcement of the Minimum Wages Act
4. Plan Allocations
5. Cost of Living Index
6. Reduction of Pay Scales from 156 to 36
7. Minimum pay to the lowest paid Central Government employee
is Rs. 750
8. Reimbursement of Medical Expenses

The Fifth Pay Commission: The Fifth Pay Commission was appointed
by the Government of India to make the recommendations regarding
revision in the pay and allowances employees of Government of India
including the members of all India services. The recommendations of the
Commission were implemented with effect from 1st January 1996.
1. Attracting talent and retaining employees with high performance.
2. Social justice.
3. Cost of living index.
4. Reduction of pay scales from 36 to 25.
5. Minimum pay for the lowest paid Central Government employee is
Rs. 2,000.
6. Reimbursement of medical expenses.

The Sixth Pay Commission: A panel of Sixth Central Pay Commission

was setup by Union Cabinet of India on October 5, 2006 for hiking the
salaries of government employees.

65

Reduction of pay scales from 25 to 16.

The minimum-maximum ratio has been fixed at 1:15.7, which was

only 1:11.8 at present.

The lowest pay is increased from Rs. 2,550 to Rs. 6,500 per month.

The highest pay is increased from Rs. 30,000 to Rs. 80,000 per
month.

WELFARE FACTORS INFLUENCING EMPLOYEE BENEFITS:

A number of factors influence the programme of employee benefits. The important
among them are:
o Absolute and per capita cost of fringe benefits
o Organization financial ability to provide the benefits
o The bargaining strength of trade unions
o Employees significance to the organization
o Employees deficiencies or needs
o Tax benefits to the organization and individual employees
o Need for building public image for the organization
o Organizations awareness and policy towards social responsibility
o Employees reactions to the benefits
1) SOCIAL SECURITY: The wages provided to the employees, particularly
of the lower level may not be sufficient to meet their needs like medical,
children education; maternity needs of women employees and employees
wives etc.Therefore, Governments of various countries insist the employers

66

to provide the security to their employees against the social evils. In addition,
Government also provides social security measures to the people.
2) SOCIAL INSURANCE: Beverage defines Social Insurance as. The giving
in return for contribution, benefits up to subsistence level, as of right and
without means-tests, so that an individual may build freely upon it. Thus
social insurance implies that it is compulsory.
3) EMPLOYEE SECURITY: Physical and job security to the employee
should also be provided with a view to promoting security to the employee
and his family members. The benefits of confirmation of the employee on the
job create a sense of job security. Further a minimum and continuous wage
or salary gives a sense of security to the life. The payment of wages act,
1936, The Minimum Wages Act, 1948.The Payment of Bonus Act, 1965,
provides income security to the employees.
4) SAFETY AND HEALTH: Employee safety and health should be taken care
in order to protect the employee against accidents, unhealthy working
conditions and the protect workers capacity. In India, the Factories Act,
1948, stipulated certain requirements regarding working conditions with
view to provide safe working environment. These provisions relate to
cleanliness, disposal of waste and effluents, ventilation and temperature, dust
and fume, artificial humidification, over-crowding, lighting, drinking water.
5) HEALTH BENEFITS: Today various medical services like hospital,
clinical and dispensary facilities are provided by organizations not only to
employees but also to their family members. Employees State Insurance Act,
1948 deals comprehensively about the health benefits to be provided.

67

Employee in these concerns and whose wages do not exceed Rs. 1000 per
month are eligible for benefits under the Act. Benefits under this Act include:

Sickness Benefit: Insured employees are entitled to get cash benefit for a
maximum of 56 days in a year under this benefit.

Maternity Benefit: Insured women employees are entitled to maternity

leave for 12 weeks in addition to cash benefit of 75 paise per day or twice
sickness benefit, whichever is higher.

Disablement Benefit: Insured employees, who are disabled temporarily or

permanently due to employment injury and occupational diseases are entitled
to get the cash benefit under this head.

Dependants Benefit: If an insured person dies as a result of an employment

injury sustained as an employee, his dependents who are entitled to
compensation under the Act, shall be entitled to periodical payments referred
to as dependent benefit.

Medical Benefit: This benefit shall be provided to an insured employee or to

a member of his family where the benefit is extended to his family. This
benefit is provided by the following forms:
o Out-patient treatment or attendance in a hospital, dispensary, clinic or
other institutions
o By visits to the home of the insured person
o Treatment as in-patient in a hospital or other institution

VOLUNTARY ARRANGEMENTS:
o Providing health maintenance service, emergency care, on-the-job
treatment care for minor complaints, health counseling, medical

68

supervision in rehabilitation, accident and sickness prevention, health

education programme, treatment in employee colonies etc.
o Medical benefits are extended to employee family members and to
the retired employees and their family members.
WELFARE AND RECREATIONAL FACILITIES:
Canteens: Perhaps no employee benefits have received as much attention in
recent years as that of canteens. Some organizations have statutory obligation
to provide such facilities as section 46 of the Factories Act,1948 imposes a
statutory obligation to employees to provide canteens in factories employing
more than 250 workers.
Consumer Societies: Most of the large organizations located far from the
towns and which provide housing facilities near the organization set-up the
consumer stores in the employees colonies and supply all the necessary
goods at fair prices.
Credit Societies: The objective of setting-up of these societies is to
encourage thrift and provide loan facilities at reasonable terms and
conditions, primarily to employees. Some organizations encourage
employees to form cooperative credit societies with view to fostering selfhelp rather than depending upon moneylenders, whereas some organizations
provide loans to employee directly.
Housing: Of all the requirements of the workers, decent and cheap housing
accommodation is of great significance. The problem of housing is one of the
main causes for fatigue and worry among employees and this comes in the

69

way of discharging their duties effectively. Most of the organizations are

located very far from towns where housing facilities are not available.
Legal Aid: Organisations also provide assistance or aid regarding legal
matters to employees as and when necessary through company lawyers.

1. What is your opinion on the Recruitment & Selection process in Jasper

Industries?
Options

Frequency

Percentage

Excellent

12

12%

Good

76

76%

Average

12

12%

Bad

0%

70

Interpretation:
The above pie chart express it is clear that the employees opinion on the recruitment
& selection process in Jasper industries 12% are said excellent, 76% good, 12%
Average, 0% Bad

2. Applications undergo interviews in organized way (job related

questions, same questions asked of all applications) before being
selected.
Options

Frequency

Percentage

Yes

60

60%

No

23

23%

I Dont Know

17

17%

71

Interpretation:
The above pie-chart express that the applicants undergo interviews in organized way
(Job related questions, same questions asked of all applicants) before being
selected.60% said yes, 23 % said No, 17% Said dont know

3. How would classify interview structure in your organization?

Options

Frequency

Percentage

Formal and Structured

79

79%

Semi-Structured

11

11%

Unstructured

10

10%

72

Interpretation:
From the above pie-chart it is clear that the interview structure in the organization is
79% formal and structured, semi Structured 11%, 10% Unstructured.

4. How would you rate the turnover of staff in you organization?

Options

Frequency

Percentage

High

15

15%

Medium

30

30%

Low

55

55%

73

Interpretation:
From the above pie-chart it is clear that the turnover of staff in the organization is
15% high, 30% medium, and 55% low.

5. Age factor is critical component in the recruitment and selection

process?

Options

Frequency

Percentage

Strongly Agree

70

70%

Agree

20

20%

Disagree

10

10%

74

Interpretation:
From the above pie-chart it is clear that the Age factor is critical component in the
recruitment and selection process 70% are strongly Agree, 20% agree,10% Disagree.

6. Attitude test is very important in the selection process?

Options

Frequency

Percentage

Strongly Agree

47

47%

Agree

46

46%

7%

Strongly Disagree

75

Interpretation:
From the above pie-chart it is clear that the 47% are strongly agreed, 46% Agree,
7% Strongly Disagree, Attitude test is very important in the selection process.

7. How do you describe the organization?

Options

Frequency

Percentage

Formal

75

75%

Semi formal

25

25%

76

Interpretation:
From the above pie-chart it is clear that the employees opinion about the
organization culture 75% is Formal, 25% Semi formals

8. Would you recommend your formal colleagues or friends to join this

organization?

Options

Frequency

Percentage

Yes

90

90%

No

10

10%

77

Interpretation:
From the above pie-chart it is clear that the 90% of the employees recommend
friends to join the company, 10% of the employees did not recommend to join
the company.

9. What are the recruiting sources for General positions?

Options

Frequency

Percentage

News papers

20

20%

Internet

70

70%

All the above

10

10%

78

Interpretation:
From the above pie-chart it is clear that the recruitment sources for general
position is 20% internal sources, 70% paper ads, 10% job consultancies.

10. What will be the probation period given to select candidates?

Options
One Month
Two Months
Three Months
Four Months
Five Months

Frequency
60
30
10
0
0

Percentage
60%
30%
10%
0
0

79

Interpretation:
From the above pie-chart it is clear that the probation period given to select
candidates 60% one month, 30% two months, 10% three months.

11. Is your career progression in the corporation based on?

Options

Frequency

Percentage

Seniority

10

10%

Merit

75

75%

Merit and Seniority

10

10%

Any other method

5%

80

Interpretation:
From the above pie-chart it is clear that the is your career progression in the
corporation based on seniority 10% , Merit 75%, Merit and Seniority 10%, Any
other method 5%

12. To which extent programe objectives were explained.

Options
Seniority
Merit
Merit and Seniority
Any other method

Frequency
10
75
10
5

Percentage
10%
75%
10%
5%

81

Interpretation:
From the above pie-chart it is clear that extent program objectives were explained
50% very good, 20% good, 20% average, 10% poor.

FINDINGS

Employees opinion on recruitment and selection process is Formal and

structured.

They give wide opportunities for freshers.

The company gives vital importance to the internal reference.
Human Relations are maintained in an organization when the employees are
satisfied economically, socially and psychologically.

82

Majority of the employees feel that career progression in the corporation

based on purely merit.

As per the survey the probation period to select the employees is mostly one

month.
Based on the merit basis the objectives of the program will be explained to

the employees.
Welfare of an employee and his family members is an effective
advertisement and also a method of buying the gratitude and loyalty of

employees.
Welfare measures are those monetary and non-monetary benefits given to the
employees during and port employment period which are connected with the

employment but to the employees construction to the organization.

Welfare measures motivate the employees to contribute more to the
organization.

Since last several years they had been no strikes and lockouts in the
organization.

Workers participation meeting committees are not held regularly.

Performance appraisal should be done in a continuous process.

Direct observation generally provides more powerful evidence

83

SUGGESTIONS

The premises seems so unhealthy by filled with dust so if any technically

improved latest equipment are used the employees gets free from pollution &
other harmful diseases.

It should be suggested that the manpower planning and forecasting should be

done strictly and properly.

Employees are not satisfied with welfare measures, so the management

should take due steps for the effective use of welfare measures.

I suggest that management should adopt the Hot stove rule for prompt
redressal of the cases and awarding to the punishment.

The candidates are called through phone calls and e-mails. If the candidates
are not responding they are calling another candidate. It will be good for the
candidates if organization sends call letters to avoid any kind of delay or

disturbance.
They have to give less preference to internal reference and have to give a
change to external sources.

The period of appraisal system should be made quarterly or half yearly as

this would lead to the regular improvement of skills and hence performance.

Appraisal system should provide needed feedback on a continuous.

84

Conduct periodical survey on training requirements and consolidate them a

view to provide training.

Every employee has to be trained in his or her respective fields so that there
is much scope for improvement.

QUESTIONNAIRE
1. What is your opinion on the Recruitment & Selection process in Jasper
Industries?
a) Excellent b) good c) average d) bad

2. Applications undergo interviews in organized way (job related

questions, same questions asked of all applications) before being
selected.
a) Yes b) No c) I dont know

3. How would classify interview structure in your organization?

a) Unstructured b) Formal and Structured c) Semi-Structured

4. How would you rate the turnover of staff in you organization?

a) High b) Medium c) Low

5. Age factor is critical component in the recruitment and selection

process?

85

a) Disagree b) Strongly Agree

c) Agree

6. Attitude test is very important in the selection process?

a) Strongly Agree b) Agree c)Strongly Disagree

7. How do you describe the organization?

a) Formal b) Semi Formal

8. Would you recommend your formal colleagues or friends to join this

organization?
a) Yes

b)No

9. What are the recruiting sources for General positions?

a) Internet b)News papers c) All the above

10. What will be the probation period given to select candidates

a) One month b) Two Months c) Three Months d) Four Months e) Five
Months

11. Is your career progression in the corporation based on?

a) Seniority b) Merit c) Merit and Seniority d) Any other method

12. To which extent programe objectives were explained.

a) Seniority b) Merit c) Merit and Seniority d) Any other method

86

BIBIOLOGRAPHY
Text Books:
1. Aswathappa

K.

(1997).

Human

Resources

and

Personnel

Management. Tata McGraw-Hill Publishing Company limited, New

Delhi.
2. Bhagoliwala, T.N., (2001) Personal Management and Industrial
Relations, Sahitya Bhavan, Agra.
3. Edwin B.Flippo, (1976) Principles of Personal Management,
McGraw-Hill, New York.
4. L.M.Prasad, (2005), Principles and Practices of Management Sultan
Chand &Sons Educational Publishers, New Delhi.
5. Monappa

Arun

and

Saiyadin

Mizra,

(1979),

Personnel

Management, Second Edittion, Tata McGraw-Hill Publishing

Company limited New Delhi.

87