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A PROJECT REPORT ON

RECRUITMENT & SELECTION AT (HDFC)


SUBMITTED TO:
UP TECHNICAL UNIVERSITY, LUCKNOW IN THE PARTIAL FULFILLMENT FOR THE AWARD OF THE DEGREE OF

Master of Business Administration


( Session 2008-10 )

SUBMITTED BY:
ANAMIKA SHARMA MBA 3rd Sem Roll No - 0811970405

INSTITUTE OF PROFESSIONAL EXCELLENCE AND MANAGEMENT ,GHAZIABAD. (A -13/1,S.S.G.T. Road, Industrial Area , NH -24, Ghaziabad -201010 )
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PREFACE
There are number forces that make marketing an endlessly changing activity. The constantly activity sociological, psychological and political environment may represent the uncontrollable marketing factors. To understanding these factors in better way marketing research is of almost importance.

This Project Report has been completed in Partial fulfillment of my Management Program, Post Graduate Diploma in Business Management (MBA) in the company HDFC STANDARD LIFE INSURANCE. The objective of my project was RECRUITMENT AND SELECTION AT HDFC BANK

HDFC STANDARD LIFE is the name which is working as one of the best private insurance company in insurance sector.

With such large population and the untapped market of populations insurance happens to be very big opportunity in India. Today it stands as a business growing at the rate of 15-20 percent annually. Together with banking services, It adds about 7 percent to the countrys GDP. In spite of all this growth the statistics of the penetration of the insurance in the country is very poor. Nearly 80% of Indian populations are without Life Insurance cover and the Health Insurance. This is an indicator that growth potential for the insurance sector is immense in India.

ACKNOWLEDGEMENT
Progress in life, business or any projects comes through taking initiatives & continuing to progress on new concepts & ideas. The original momentum is not enough to keep you moving forward. Your progress will grit to halt unless you refill your engine for inspiration with fuel of fresh ideas with enthusiasm & proper guidance. Accomplishment requires the effort of many people and this work is no different. I would like to thank all those who helped me directly or indirectly and whose diligent efforts made this project possible.

I am grateful to Prof. Satish Gupta (DG) of Institute of Management Education for creating a conducive environment in the institute for a purposeful education.

I express my profound gratitude to Dr. D.P. Goyal (Director), Dr. Taruna Gautam (Assistant Director) & Mr. Gurpreet Singh Sachdeva (Project Co-ordinator) of Institute of Management Education for their encouragement.

I would like to thank most to Ms. Aarti Singh (HR Manager) whose initiative and guidance enabled me to conceptualize and construct the project Recruitment & Selection . It has been great to work under their guidance.

I also take this opportunity to express my profound gratitude to all those respondents who made this project successful by cooperating with me.

Last but not the least; I would like to thank my parents and colleagues for their kind support.

Beenu Kumari

DECLARATION

I hereby declare that the project report entitled Recruitment & Selection at Payal Petropack submitted for the Bachelor of Business Administration is my original work and the Project Report has not formed the basis for the award of any degree, diploma, associated, or other similar title.

Date

Place

Signature

CONTENTS
Page No.

1. Abstract 2. Introduction 3. Company Profile 4. Objective of the Project 5. Research Methodology Sample Sample Size Instrument Used 6. Data Analysis & Data Interpretation 7. Conclusions 8. Bibliography 9. Annexure

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PART - I

BRIEF HISTORY OF THE ORGANIZATION


The Housing Development Finance Corporation Limited (HDFC) was amongst the first to receive an in principle approval from the Reserve Bank of India (RBI) to set up a bank in the private sector, as part of the RBI's liberalization of the Indian Banking Industry. The bank was incorporated in August 1994 in the name of HDFC Bank Limited, with its registered office in Mumbai, India. The bank commenced operations as a Scheduled Commercial Bank in January 1995.

Promoter HDFC is India's premier housing finance company and enjoys an impeccable track record in India as well as in international markets. Since its inception in 1977, the Corporation has maintained a consistent and healthy growth in its operations to remain the clear market leader in mortgages and banking services in India. Its outstanding loan portfolio covers over a million dwelling units. HDFC has developed significant expertise in retail mortgage loans to different market segments and also has a large corporate client base for its housing related credit facilities. With its experience in the financial markets, a strong market reputation, large shareholder base and unique consumer franchise, HDFC was ideally positioned to promote a bank in the Indian environment.

Business Focus HDFC Bank's mission is to be a World Class Indian Bank. The Bank's aim is to build a sound customer franchise across distinct businesses so as to be the preferred provider of banking services in the niche segments that the bank operates in and to achieve healthy growth in profitability, consistent with the bank's risk appetite. The bank aims to ensure the highest level of ethical standards, professional integrity and regulatory compliance. HDFC Bank's business philosophy is based on four core values: Operational Excellence, Customer Focus, Product Leadership and People. The Bank signed a strategic business collaboration agreement with Chase Manhattan Bank in February 1999.

Capital Structure The authorized capital of HDFC Bank is Rs.450 crores. The paid-up capital is Rs.281.2 crores. The HDFC Group holds 24.5% of the bank's equity while about 13.3% of the equity is held by the depository in respect of the bank's issue of American Depository Shares (ADS/ADR Issue). The Indian Private Equity Fund, Mauritius (IPEF) and Indocean Financial Holdings Ltd., Mauritius (IFHL) (both funds advised by J P Morgan Partners, formerly Chase Capital Partners) together hold about 11.6% of the bank's equity. Roughly 18% of the equity is held by FIIs, NRIs/OCBs while the balance is widely held by about 300,000 shareholders. The shares are listed on the The Stock Exchange, Mumbai and the National Stock Exchange. The bank's American Depository Shares are listed on the New York Stock Exchange under the symbol "HDB".

TimesBank Amalgamation In a milestone transaction in the Indian banking industry, Times Bank Limited (another new private sector bank promoted by Bennett, Coleman & Co. /Times Group) was merged with HDFC Bank Ltd., effective February 26, 2000. As per the scheme of amalgamation approved by the shareholders of both banks and the Reserve Bank of India, shareholders of Times Bank received 1 share of HDFC Bank for every 5.75 shares of Times Bank. The amalgamation added significant value to HDFC Bank in terms of increased branch network, expanded geographic reach, enhanced customer base, skilled manpower and the opportunity to cross-sell and leverage alternative delivery channels.

Distribution Network HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable network of over branches spread over cities all across the country. All branches are linked on an online real-time basis. Customers in 39 locations are also serviced through Telephone Banking. The Bank's expansion plans take into account the need to have a presence in all major industrial and commercial centres where its corporate customers are located as well as the need to build a strong retail customer base. Being a clearing/settlement bank to various leading stock exchanges, the Bank has branches in the centres where the NSE/BSE have a strong and active member base.

The Bank also has a network of almost over networked ATMs across these cities. Moreover, HDFC Bank's ATM network can be accessed by all domestic and international Visa/MasterCard, Visa Electron/Maestro, Plus/Cirrus and American Express Credit/Charge cardholders. It is the only bank in India which provides access to all the 3 major International Card Networks on its ATM network.

Management Mr. Jagdish Capoor took over as the bank's Chairman in July 2001. Prior to this, Mr.Capoor was a Deputy Governor of the Reserve Bank of India.

The Managing Director, Mr. Aditya Puri, has been a professional banker for over 20 years, and before joining HDFC Bank in 1994 was heading Citibank's operations in Malaysia.

The Bank's Board of Directors is composed of eminent individuals with a wealth of experience in public policy & administration and commercial banking. Senior executives representing HDFC and J P Morgan Partners (formerly Chase Capital Partners) are also on the Board.

Senior banking professionals with substantial experience in India and abroad head various businesses and functions and report to the Managing Director. Given the professional expertise of the management team and the overall focus on recruiting and retaining the best talent in the industry, the bank believes that its people are a significant competitive strength.

Technology HDFC Bank operates in a highly automated environment in terms of information technology and communication systems. All the bank's branches have connectivity which enables the bank to offer speedy funds transfer facilities to its customers. Multi-branch access is also provided to retail customers through the branch network and Automated Teller Machines (ATMs).

The Bank has made substantial efforts and investments in acquiring the best technology available internationally, to build the infrastructure for a world class bank. In terms of software the

Corporate Banking business is supported by Flexcube, while the Retail Banking business by Finware, both from I-flex Solutions Ltd. (formerly Citicorp Information Technology India Ltd.). The systems are open, scaleable and web-enabled.

The Bank has prioritized its engagement in technology and the internet as one of its key goals and has already made significant progress in web-enabling its core businesses. In each of its businesses, the Bank has succeeded in leveraging its market position, expertise and technology to create a competitive advantage and build market share.

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ORGANIZATION STRUCTURE

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MISSION & VISION

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PERFORMANCE
HDFC Bank caters to a wide range of banking services covering both commercial and investment banking on the wholesale side and transactional / branch banking on the retail side.

The bank has three key business areas:-

a)

Wholesale Banking Services

The Bank's target market is primarily large, blue-chip manufacturing companies in the Indian corporate sector and to a small extent, emerging mid-sized corporates. For these corporates, the Bank provides a wide range of banking services, including working capital finance, trade services, transactional services, cash management, etc. Based on its superior product delivery / service levels and strong customer orientation, the Bank has made significant inroads into the banking consortia of a number of leading Indian corporate including multinationals, companies from the domestic business houses and prime Public Sector companies. It is recognized as a leading provider of cash management and transactional banking solutions to corporate customers, mutual funds, stock exchange members and banks.

b)

Retail Banking Services

The objective of the Retail Bank is to provide a full range of financial products and banking services, giving the customer a one-stop window for all his banking requirements. The products are backed by world class service and delivered to the customers through various delivery channels including the branch network, as well as alternative delivery channels like ATMs, Phone Banking, Net Banking and Mobile Banking.

The HDFC Bank Preferred program for high net worth individuals, the HDFC Bank Plus and the Investment Advisory Services programs have been designed keeping in mind needs of customers who seek distinct financial solutions, information and advice on various investment avenues. The Bank also has a wide array of retail loan products including Loans against shares, Auto Loans, 17

Personal Loans and Loans for Consumer Durables and Two-wheelers. It is also a leading provider of Depository Participant (DP) services for retail customers.

HDFC Bank was the first bank in India to launch an International Debit Card in association with VISA (VISA Electron) and issues the MasterCard Maestro debit card as well. The debit card allows the user to directly debit his account at the point of purchase at a merchant establishment, in India and overseas. The Bank launched its credit card in association with VISA in November 2001. The Bank is well positioned as a leader in various net based B2C opportunities including a wide range of internet banking services for Fixed Deposits, Loans, Bill Payments, etc.

c)

Treasury Operations

Within this business, the bank has three main product areas - Foreign Exchange and Derivatives, Local Currency Money Market & Debt Securities, and Equities. With the liberalization of the financial markets in India, corporate need more sophisticated risk management information, advice and product structures. These and fine pricing on various treasury products are provided through the bank's Treasury team.

Rating HDFC Bank's programme for Certificates of Deposits has been rated by the Indian rating agency Credit Analysis & Research Ltd. (CARE). The CDs are rated PR 1+ is the highest rating for short term instruments indicating superior capacity for repayment.

Financial Strength Year End - Mar 2008

Credit/Deposit Investment/Deposit Cash/Deposit

: : :

46.39 % 63.43 % 8.23 %

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Cash/Deposit 7% Credit/Deposit 39%

Investment/Dep osit 54%

Share Information 21/07/2008 Recent Price (Rs) Volume Year To Date High (Rs) Year To Date Low (Rs) Face Value (Rs) Market Capitalization (Rs Crore) Shares Outstanding (Lakhs) Market Lot : : : : : : : 277.85 50277 303 187 10

7876.49 2820.5 : 1

Valuation Ratios Year End - Mar 2008 Price/Earnings Price/Book Price/Sales Dividend Yield (%) : : 20.8 : : 1.08 3.49 3.87

Per-Share Data Year End - Mar 2008 Book Value (Rs) : 79.59 19

Cash (Rs) Dividend (Rs) Total Income (Rs) Earnings (Rs) : :

: 3 : 13.36

112.36

71.72

Income Statement Year End - Mar 2008 (Rs Crore) Total Income Other Income Operating Profit Interest Depreciation Net Profit : : : : 2022.97 473.1 : 387.6

1191.96 106.14 : 387.6

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BOARD OF DIRECTOR Chairman : Jagdesh Capoor

Managing director

Aditya puri

Director

Venkat Rao Gadwal

Director

Anil Ahuja

Additional Director

Vineet Jain

Additional Director

Arvind pande

Additional Director

Renu S Kamad

Additional Director

K.M.Mistry

Vice President & CS

Sanjay Domgre

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PRODUCT AND SERVICE

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Problem of the Organization and future of the Organization

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PART -II

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OBJECTIVE

To study the Recruitment & Selection Practices at HDFC BANK LIMITED To identify the various factors companies undertake prior to the recruitment process. To study how the companies establish a fit between their business strategy and recruitment strategy. To study how the companies have coped with change in the market vis a vis its recruitment process.

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RESEARCH MYTHOLOGY
The purpose of the methodology is to describe the research procedure. This includes overall research design, the sampling procedure, the data collection method, and the fried methods and analysis procedure. Out of total universe 30 respondents from company have been taken for convenience. The sample procedure chosen for this are statistical sampling method. Here randomly employees are selected and interviewed. An in depth interview is conducted with the Human Resource Head. Information, which I collected, was based on the questionnaires filled up by the sample employees. Under secondary method I took the help of various reference books which I have mentioned in bibliography and also by way of surfing through the company website. Primary Data Questionnaire: Corresponding to the nature of the study direct, structured questionnaires with a mixture of close and open-ended questions will be administered to the relevant respondents within the Personnel and other Departments of the organisation. In-depth interviews will be conducted with the top level management personnel involved as panel members of the recruitment & selection committees of the organisation to substantiate the questionnaire administered.

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Secondary Data

Organisational literature: Any relevant literature available from the organisation on the Company profile, recruitment & selection procedures, Job specifications (KSAs), department-wise break up of manpower strength and the orgnaisational structure.

Other Sources: Appropriate journals, magazines such as Human Capital, relevant newspaper articles, company brochures and articles on www sites will also be used to substantiate the identified objectives.

Sampling Plan and Design

A questionnaire will be used for the purpose of research:

Questionnaire: To test the validity and effectiveness of the recruitment and selection procedures within the organisation and to test the validity and effectiveness of the policies and procedures within the organisation. The basic rationale of Questionnaire is to ascertain the perception of the non-HR departments in terms of the validity and effectiveness of the policies and procedures used by the organisation. It is also in line with the assessment of any suggestions/recommendations that the respondents from these Departments might have in terms of the use of an alternative source/device of recruitment and selection, than what already forms the current practice of the HR Department.

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Questionnaire would be administered to 15 respondents, holding a senior designation within the Personnel Department of the organisation. It will also be administered to at least 15 respondents belonging to typical Departments within the organisation and holding senior designations within their respective Departments.

In depth interviews would also be conducted with these respondents with the aim of substantiating their views entailed from the Questionnaire.

The total number of employees covered in the questionnaires are 30, 20 Business Executives and 10 Non-Business Executives.

Sampling Element

For the purpose of administering the Questionnaire, the respondents would comprise of personnel holding senior designations within the Personnel Department of the organisation. The respondents for the Questionnaire will also be preferably be panel members of the Recruitment & Selection Board of the organisation.

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The respondents would comprise of personnel holding senior designations within certain typical Departments identified within the organisation, namely:

Stores Finance Operations Electronics Engineering

Sampling Technique

Judgement Sampling would be used for the purpose of choosing the sample for the purpose of administering Questionnaire. The identified expert would have a thorough knowledge about all the respondents within the Personnel Department of the organisation. Thus his/her expertise would be incorporated in locating, identifying and contacting the required respondents.

Again Judgement sampling would be effectively used in identifying the typical non - HR Departments within the organisation and subsequently for the location and identification of suitable respondents for Questionnaire.

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DIAGNOSTIC MODEL

External Environmental Influences Govt.Regulations & Laws The Union Economic Conditions: domestic & International Composition Of labor force Location of the Organisation

Internal Environmental Influences Strategy Goals Organizational Culture Nature Of the task Work group Leaders style & experience

HUMAN RESOURCE PROCESSES Acquiring Human Resources HR planning Job Analysis & design Recruitment & Selection Rewarding Human resources Performanc e Evaluation Compensati on Benefits & Services Human Resource Process Protecting and Developing Evaluating Human Resources Safety, health & Orientation wellness & Training Evaluation Developme nt Career Planning

Desirable End Results Socially responsible & high Ethical practices Competitive, high quality products Competitive, quality services

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Composition of labor force and location of organization

As the number of legal requirements has increased, it has become more important for an organization to analyze the composition of workforce. Such analysis is done to determine whether the firm's employment practices are discriminatory. The location of the organization and the relevant market will play a major role in the composition of the work force. Therefore, government and union restrictions labor market conditions, the make up of the work force and the location of the organization are external forces that affect each other. None of these forces are necessarily more important than any other force. Each of them must be

considered in developing a sound recruitment plan that results in an effectively functioning organization. INTERACTIONS OF THE RECRUITAND THE ORGANIZATION The nature of the organization and the goals of the manager are highlighted in the above diagram, as is the nature of the task. The techniques used and the sources of recruits vary with the job. As afar as the applicants are concerned, their abilities and past work experience affect how they go about seeking a job.

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The organization's view of recruiting Several aspects affect recruiting from organization's view point : the recruiting requirements set, organization policies and procedures, and the organizational image. Recruiting requirements The recruiting process necessarily begins with a detailed job description and job specification. Without these, it is impossible for recruiters to determine how well any particular applicant's fits the job. It should be made clear to the recruiter which requirements are absolutely essential and which ones are merely desirable. This can help the organization avoid having unrealistic

expectations of potential employees : an employer might expect applicants who stand first in their class, are president of all extra curricular activities, have worked their way through school, have 10 years of experience and are willing to work for long hours. Contrasted with this unrealistic approach, the effective organization examines the specifications that are absolutely necessary for the job. Then it uses these as its beginning expectations for recruits. Finding applicants who possess the needed skills for a job is the "science" of recruiting. Beyond determining whether an applicant has the skills needed for the job, recruitment in the coming years will also have to determine whether the applicant will function well within the culture and value system of the organization. Interview performances in terms of interpersonal styles is one of the most critical factors used by recruiters to evaluate prospective job candidates.

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Organization policies and practices In some organization's, HRM policies and practices affect recruiting and who is recruited. One of the most significant of these is promotion from within. This policy means that organization's recruit from outside the organization only at the initial hiring level. They feel this is fair to present loyal employees and assures them a secure future and a fair chance of promotion, and most employees favor this approach. Some employers also feel this practice helps protect trade secrets. Organizational image The image of the employer generally held by the public can also affect the recruitment. all else being equal it is easier for the organization with a positive corporate image to attract and retain employees than an organization with a negative image.

The good or bad, well-known or unknown images of these organization's will affect how they are viewed by the job recruits. The organizations image is complex, but it is probably based on what the organization does and whether it is perceived as providing a good place of work. The larger the organization, the more likely it is to have a well-developed image. A firm that produces a product or service the potential employee knows about or uses is also more likely to have an image for the applicant. The organization's image is also affected by its industry. These images change. Job applicants can seldom have interviews with all the organizations that have job openings of interest to them. Because there are time and energy limits to the job search, they do some preliminary screening.

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One of these screens is the image the applicants have of the organization, which can attract or repel them. In sum, the ideal job specifications preferred by an organization may have to be adjusted to meet the realities of the labor market, government or union restrictions, the limitations of its policies and practices and its image. If an adequate number of quality people apply, the organization may have to adjust the job to fit the best applicant or increase its recruiting efforts. The potential employees view of recruiting The applicants have abilities, attitudes and preferences based on past work experiences and influences by parents, teachers and others. These factors affect recruits in two ways: how they set their job preferences and how they go about seeking a job. Preferences of recruits for organization and jobs Recruits have a set of preferences for a job. The recruit also faces the limitation of labor market, government and union restrictions and the limits og organizational policies and practices. The recruit must anticipate the compromises just as the organization does. What factors affect the organization decision? A more educated set knows the labor market better, have higher expectations of work and find organization's that pay more and provide and more stable employment.

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Job search and finding a job: the recruit It is not always enough to be simply in the right place at the right time. The effective job searcher creates opportunities in a systematic way. Effective job search involves several steps including self-assessment, information gathering and networking, targeting specific jobs and successful presentation. The job search process begins with self-assessment. The purpose of self-assessment is for job searchers to recognize their career goals, their strength's and weaknesses, interests values and preferred life styles. This information is later used in the search process to help the applicant assess whether there is a fit with a particular job offer. The assessment is similar to what organizational recruiters will be doing, only from the perspective of the applicant. Information gathering and networking are methods for generating lists of potential employers and jobs, information sources include newspapers, trade publications, college recruitment offices and organizational insiders.

METHODS OF RECRUITING

Most job openings are filled with people from within the organization and entry-level positions are the most likely to be filled by external sources. Methods for internal recruiting include job posting, skill inventories, job bidding and referrals. Methods of external recruiting include school and college recruiting, advertising, and using employment agencies and executive research firms and the internet.

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Internal versus external recruiting methods Internal recruiting methods include posting position openings, distributing memos within the organization and searching organizational databases for a match between the skills required to perform the job and the skills held by the current employees. This method of recruiting looks to internal sources to fill positions and encourages promotions from within. External recruiting methods include advertising position. Whether managers choose internal or external-recruiting methods depends on the degree to which organization's strategy encourages promotions and transfers from within the organization. Recruiting from within can lead to job satisfaction and motivation if employees see new career opportunities available. In addition filling positions with existing employees ensures to large ext6ent that these employees are socialized as to the organization's culture and personality. However problems can arise if the internal promotion system is not viewed as fair. The best way to avoid negative backlash when hiring or promoting from within is to install fair practices and procedures. If steps are taken to ensure a fair internal promotional process, most people will accept their loss and remain productive and useful organizational citizen. External recruiting method helps bring new ideas and approaches to the organization. Internal recruiting methods Job positioning Many position can be filled as a result of posting the job opening on the bulletin boards, announcing the opening in a company newsletter or posting announcement on the companies intranet. A job posting procedure enables employees to strive for a better position within the company. Notices of important openings should include all-important information about the job.

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Some firms have turned to computers to make their job posting more fruitful. All employees who wish to participate complete questionnaires about themselves, which include items concerning relocation willingness and preferences as well as training and educational backgrounds. A few skills are selected out of the total that best represent their functional skills. When a position needs to be filled the requirements are matched and candidates selected. Although positing jobs can be an efficient method of recruiting, number of problems have been associated. Example it can lead to personal bias and stiff competition.

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Skills inventory Another recruiting method is the use of skill inventories. Essentially a skills inventory includes a list of employee names, their education, training, present position, work experience, relevant job skills and abilities and other qualifications. The organization can search through the company skill inventory to identify potential candidates for the position opening. Job bidding These procedures typically specify that qualified applicants from within the bargaining unit must fit all jobs covered by the agreement. Those interested in the vacancy bid for the job by applying if they are qualified. The individual fills the position with the highest seniority from among the qualified applicants. In some cases applicants take competitive examinations. However only current employees are eligible. Using a job bidding system is normally very easy. However it can present some difficulties. Referrals An excellent source of information is current employees who may know someone who would be qualified and interested in the open position. To entice employees to make job referrals, some companies offer a referral bonus. People tend to associate with people like themselves, if the employee fits the organization, chances are his or her referrals will be good. Employees, whose referrals are hired, are often willing to serve as a mentor to ensure their referrals succeed in the company.

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EXTERNAL RECRUITING METHOD School and college recruiting Recruiting at high school or vocational schools is often a strategic approach adopted by organizations with position openings at the entry level or internal training programs. Recruiting at the college level serves as a major source for acquiring managerial, professional and technical skills. The gap that exists between the skills that organizations will need over the next several years and those currently possessed by potential employees is growing. The number of jobs requiring a college degree is on the increase. Unfortunately for the organization it is a very time

consuming and expensive exercise. But pressures from the external environment will continue to force organizations to be highly visible and active in this kind of recruiting. In college recruiting the organization sends an employee usually called a recruiter, to a campus interview candidates and describes the organization to them. Coinciding with the visit,

brochures and other literature about the organization are often distributed. The organization also runs ads to attract the candidates. In the typical procedure, those seeking employment register at the college placement service. This placement service is a labor market exchange providing opportunities for students and employers to meet and discuss potential hiring. Preliminary interview with employers is done. Students are given detailed influence about the job and the profile. Salaries are negotiated. The expenses are borne by the organization. Many of the changes are designed to reduce overall recruiting costs while maintaining a strong applicant's flow into the organization. The trend

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seems to be for an organization to develop a stronger, ongoing relationship with a relatively select number of schools. Advertising Advertising job openings in newspapers, magazines, newsletters and other media sources is a relatively inexpensive recruiting mechanism. Advertising is useful for filling open position quickly. Advertising usually does not target a specific audience. Specified defined advertisements will attract qualified applicants, dissuade unqualified ones from applying and make the recruitment process more efficient. Private employment agencies Private employment agencies vary considerably in size and effectiveness as good sources of employee and must be chosen carefully by employers and job seeking alike. A preliminary interview is conducted for the applicants. Unfortunately some agencies are more concerned with placing employees quickly than in effecting a good match between the employee and the organization. The discrepancy can be reduced if the HR managers give detailed and specific requirements. The internet and the WWW One of the fastest growing recruitment methods is the internet and the WWW. Companies who do use the lnternet as a recruiting source appear to be happy with the process and the results. It allows access to broader set of people and hence broader set of expertise and skills. It is also faster and convenient. However it may not be accessible to all.

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UTILIZING RECRUITING RESOURCES


Companies frequently use a variety of internal and external recruiting strategies to locate and hire their workers. Although one technique may work well for some organizations, the same technique may prove ineffective for others. Some technique may mesh well with the

organization's competitive strategy, but others do not. By integrating both internal and external recruiting techniques, a company can develop an overall recruiting plan that is specifically tailored to support its overall strategy and result in selection of highly qualified applicants. Exactly how many recruits are needed can be determined from past recruitment efforts. Specifically a yield ratio can be developed for each position to be filled. A yield ratio is the number of candidates who pass a particular recruitment hurdle divided by the number who attempted the hurdle. It is important to keep in mind that the plan should support the companies overall strategic approach. Re- Recruitment strategies Re-Recruitment strategy is a series of steps a company can take and retain key employees. ReRecruitment strategies are a good idea, but essential in turbulent times such as after downsizing or a major organizational restructuring. Key employees are defined as employees whose loss would have a most detrimental effect on the organization. Once the key employers have been located, the next step is to determine what can be done to motivate them to remain with the organization. A flexible work arrangement will mean something different to every employee, so it is important to dearly delineate what key employees 66

want and need with respect to flexibility.

Flexibility can also be offered by introducing

compressed work weeks, flexible starting times and comp time where workers can leave work for an hour or two to deal with family matters. An increase in the compensation can also help retain a key employee. Retention bonuses have also been used successfully as a means of getting technical staffers. competitors, Career development opportunities College graduates entering work force for the first time are clear about their expectations and are less willing to adapt their values and work styles to accommodate to their employers. The following factors entice first careerist to stay with the job and the company: 1. 2. 3. 4. 5. 6. Immediate involvement in the essential work of the firm. The ability to apply newly learned knowledge and skills. The opportunity to understand the big picture of the firm. Rapid career development. Rapid salary advancement. The opportunity to learn new skills. Without a salary adjustment key employees may be stolen away by

Companies are responding to these needs by offering a variety of programs for new employees. One factor that should be considered prior to selection is the "fit" between the individual career objectives and the career path that can be realistically offered by the firm. Career plateauing which refers to the point in a career where future hierarchical movement is unlikely, has become

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a real problem in organization's today. Downsizing and restructuring has severely restricted the potential for vertical movement in many managerial career paths.

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ALTERNATIVES TO RECRUITMENT
Another strategic business decision can be made is not to recruit. Instead they can rely on alternative staffing options. Common alternative staffing options Traditional temporary help A potential employee is recruited, tested, screened and employed by a temporary staffing agency. They assign qualified individuals to work at a clients site, generally to support or supplement the current work force. Long term temporary assignments It is becoming increasing popular for an organization to staff part of its work force with temporary workers on an ongoing basis. These individuals are not considered short-term replacements, but more a part of the regular work force. Part time employees Workers who work less than 40 hours a week are considered part time employees. They can be organization's pay roll or assigned via a temporary agency. Employee leasing A Company will transfer some of its employees to a leasing firm. The leasing firm then leases back the workers to perform the same job they did for the Client Company. However the leasing firm is now responsible for cost and work associated with the typical HR functions such as Payroll, benefits and record keeping. Independent contractors 69

Independent contractors are self-employed individuals who market a specific skill they posses to a variety of companies. A Company will hire them for a specific project or contract. Payment is usually based on the time and effort the individuals put forth on the project and expenses are frequently reimbursed. Outsourcing services An independent company with expertise area will contract with a firm to take full responsibility for that specific function in the organization.

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EVALUATING THE RECRUITING METHODS

Given the importance of recruiting to the organization the method used in recruiting should be evaluated periodically. One of the most important reasons to evaluate recruiting method is to determine the cost versus benefits of various methods. When recruiting method do not attract enough applicants many organizations respond by raising the salaries. Although some job applicants may be enticed by money, this may not be a cost-effective method of recruiting. Further employees within the organization may perceive inequity if new employees are brought in at a similar or even higher salary. Recruiting costs include factors such as the cost of advertising, the salaries and travel expenses of recruiters, travel expenses of potential job applicants and recruiting agencies. These costs must be weighed against factors such as the potion of acceptance offers. At a minimum, organizations should compare the length of time applicants from each recruiting source stay with the organization with the cost of hiring from a particular source. The effectiveness of recruiting method varies among organizations and even jobs within the same organization.

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THE SELECTION PROCESS


Selection is the process of choosing individuals who have the qualifications to perform a particular job well. Organization differs as to the complexity of their selection systems. Some organization's make a strategic decision to fill positions quickly and inexpensively by scanning application forms and hiring individuals based on this information alone. Other organization's however makes a strategic decision to choose the best person possible by having an elaborate and sometimes costly selection system. These systems may require potential employees to fill out application forms and provide information for a background check, take a number of job related tests, and perform well through a series of interviews. Most organization's have. more than one selection process. Application blanks and resumes The initial screening of potential employees is usually done by examining resumes and 1 or having applicants fill out an application blank. Items that should be requested on an application include general biographical information. Much of information gathered on application blanks is objective so that the human resources manager can verify it. Verification of information on an application is becoming increasingly important to avoid claims of negligent hiring. An employer is guilty of negligent hiring if he or she failed to perform a thorough background check on an employee whose infliction of harm could have been predicted. Once the application has been verified, it can be numerically scored to make it comparable to others. The process of qualifying an application is called weighting an application. The use of a weighted application blank involves placing a value or score for the items on the application

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that have been found to predict successful job performance. Applicants receive points according to the information they report on the form and can then be ranked based on their total points. Although weighted applicants blanks have been found to be predictive of future performance, the time and cost of developing an effective are often prohibitive. Resumes are often instead of application blanks. Job applicants develop their own resumes, which should include essentially standard information. TYPES OF SELECTION TESTS A number of selection tests have been developed to aid the human resources manager in hiring employees. The following section covers mental ability test, work sample tests, trainability tests, personality and interest inventories and honesty tests as selection devices. Mental ability tests Paper and pencil tests have been developed by psychologists and are used by organization's to measure mental ability and aptitude. Ability and aptitude tests examine a variety of tests such as general intelligence, an understanding of spatial relationships, numerical skills, reasoning and comprehension. Work samples Also called performance tests, work sample tests measure the ability to do something rather than the ability to know something. These tests may measure motor skills or verbal skills. Work sample tests should test the important aspects of the job. Since job applicants are actually performing a small portion of the job, it is difficult to "fake" ones ability on these tests. One of the most effective ways to design work sample tests is by using the results of a job analysis, because the results of a job analysis indicate which tasks are most critical and which are 73

required for successful competition of the task. It is easy to determine which activities need to be represented on the tests. Trainability tests For jobs in which training is necessary due to 1. 2. The skills level of the job applicants Changing nature of the job, trainability tests are useful.

Essentially the goal is to determine the trainability of the candidate. In the first step of the process, the trainer demonstrates how to perform a particular task. Then the job applicants are asked to perform the task while the trainer helps to coach him or her through the process several t8mes. Finally the candidate monitors the performance, recording any errors, to determine the overall trainability of the job applicant. But work sample tests and trainability test have shown to have high to moderate success predicting job performance. Personality and general interest inventories Personality and general interest inventories are tests that have no "correct" or "incorrect" answers. Interest tests are used to measure an individual's work and career orientations.

Personality tests focus on identifying traits or typical behaviors of individuals and are used to measure a variety of traits including aggression, self-esteem and type A behavior. Although personality and general interest inventories are tests that have no "correct" or "incorrect" answers. Interest tests are used to measure an individual's work and career orientations.

Personality tests focus on identifying traits or typical behaviors of individuals and are used to measure a variety of traits including aggression, self-esteem and type A behavior. Although 74

personality tests can be costly, they can help human resources manager's determiner individual characteristics opt obtained from a resume, thus increasing the likelihood of finding a go "fit" between the job position and the employee. A serious criticism of personality inventories is their tendency to be invasive in that they seek to "uncover revealing data about a person's psyche. Companies that use this type of pre

employment tests must therefore ensure that the information they seek and the way they use this information are relevant to the job in order to prevent lawsuits by rejected applicants.

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THE INTERVIEW
Most organization's, regardless of size, use interviewing as a selection method. Interestingly, interviews have been criticized for being unreliable sources of information due to perceptual and judgment errors on the part of the interviewer. Example interviewers often form a first

impression of the job applicant based on the influence obtained on the application blank or the first two minutes of the interview. Another type of perceptual error is called the Halo effect. In this case, one characteristic or behavior of the job applicant overrides all or most other characteristics. Contrast effects have also been found to distort interviewer judgments about job applicants. Contrast effects occur when the interviewer evaluates a job applicant by comparing this person to previous job applicants. Other perceptual errors can distort an interviewers evaluation include stereotyping, leniency, strictness and central tendency errors. Establishing a system for conducting an interview can improve the reliability and validity of interview assessments. Types of interviews Interviews can be classified into three general categories: structured, semi structured and unstructured. Structured When conducting a structured interview, the interviewer asks questions from a prepared list and does not deviate from it except for some follow up questions. During the

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interview, the interviewer records his or her thoughts and reactions on a standard organizational form. When different interviewer reach the same or similar conclusion about a given candidate, the interpretation reliability is high. Unfortunately this type of interview is very restricted. Two most common types of structured interviews are the behavioral description interview and the situational interview. The behavioral description interview allows you to gather and evaluate information about what candidates have done in the past to predict how they will act in the future. A thorough job analysis of the job is done for which the interview is being developed. The specific KSA0s are uncovered, required by the job as well as appropriate and important behaviors performed by the job incumbents. Next questions will have to be designed which elicit the behaviors. The second type of structured interview is the situational interview. In this job experts develop questions that focus on situations that might arise in the actual job. It is conducted with a panel of interviewers, each of them independently rate the applicants. This type of interview is kinder to the applicant because a past example does not have to be provided. Semi structured Here only the major questions are prepared in advance and are recorded on a standardized form. This type of interview involves some planning on the part of the interviewer but allows for some flexibility regarding exactly what and how questions are asked. Although the inter rater reliability is not so high as with structured interview, the information obtained may be richer and possibly more relevant

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Unstructured interview The unstructured interview involves little planning or no planning on the part of the interviewer. Due to lack of planning, the interviews tend to vary greatly between

interviewers and also between interviewees. Unstructured interviews have low reliability and seldom yield valid and useful information.

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MANAGERIAL SELECTION DEVICES


Selection devices for managers can differ from non-managerial employee selection. Assessment centers were developed to tap these numerous managerial skills by collecting work sample information. an assessment center is not a place but a process. In this process trained

professional evaluators, called assessors, observe and record and evaluate how a candidate performs in simulated job situations. Although the validity of assessment center tends to be high, some problems recently have been identified with this selection device.

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RECRUITMENT AND SELECTION - OVERVIEW


Till recently the rules of recruitment were very retrogressive. Companies simply hired fresh graduates or MBAs - seeking out the top rankers - started them off as trainees, paternally oversaw their vertical progress and repeated the process every year. On the rare occasions that they had to recruit at higher levels, they advertised - the discreetness of the address matching the stature of the company as a coveted employer - or used services of a head hunter and chose on the basis of a track record. Job hoppers were never favored and companies hired everyone for lifetime. Now a recruitment revolution is beginning. And the people whom company will soon compete for most fiercely will be those who have earned their spurs in different functions, companies, industries- and not one company, one function specialist. Having succeeded in hiring them, CE0s must not expect all of them to stay. Some will leave the company when the company changes its operational focus - as it must to stay ahead of change and needs different kind of people. Others will opt for entrepreneurial careers in favor of -,employment. Yet others will go back to school to restrictions -educate themselves and proceed to the next phase of their portfolio careers' Abandoning their old policies of hiring only at the bottom, therefore companies will have to induct new talent at every level, including those where internal promotions were once developed rigueur. Even the search for CE0s will intensify as new competitors look for team captains and existing companies feel the need for new qualities - not available in house - in their CE0s. lnfact the search for the right people at every level will pick up pace.

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And while companies will have to develop innovative techniques to beat the competition at recruitment hotspots like campuses, they must also look outside their conventional hunting grounds. For that is where people with unorthodox Winning ideas will come from CE0s looking for breakthrough marketers will have to recruit them from other industries since everyone already in the sector will only offer tired ideas. Hunting for knowledge workers, company va have to raid research laboratories, non-governmental organization's, college staff-rooms and even sports fields. And the quest for managers with the ability to lead mega projects will have to be global and not limited to the country. At the organizational level, companies must tailor their manpower recruitment plan to corporate objectives, drawing up the profiles of suitable fires accordingly. Company focusing on new

business development will have to seek entrepreneurial abilities; companies planning to withdraw from diversification's must look for pragmatists; companies chasing growth through alliances should hire people comfortable in different cultural backgrounds. Above all companies must hire for the future, anticipating jobs that may not be in existence yet. So recruitment of managers must focus not on functional expertise, but for attitudes and approaches that fit the corporate goals and culture. Among the qualities that companies will have to screen, therefore will be interests, disposition, attainments, general intelligence, special aptitudes are even physical makeup. For every job that a company seeks to fill therefore the must prepare psychological profiles of the ideal candidate. And to test candidates for a fit with that profile, companies will increasingly have to use psychographics testing techniques such as Thomas Profiling. Myers- Bdgg Type irdicator, or the particular preference Inventory that

draw up the complete psychological and behavioral characteristics of an individual.

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The test for personality traits will involve using unconventional tools like graphology. Also on test will be candidates result orientation analytical ability, initiative, communication skills and innovativeness, giving employers as much information as possible with which they decide whether an individual will be appropriate for the job. To validate the conclusions of the tests, line managers and human resources personnel who conduct interviews will have to be trained interviewing skills. And companies will have to use multi-session depth interviews ad of one off interactions to explore different facets of a candidate under different circumstances and varying degrees of pressure.

What are the elements which companies must use to entice top talent? Compensation will be crucial only till it isn't absurdly below. The competitor offer. Instead recruiting teams will have to market their company as a place where employees have fun working, particularly to people that the company is trying to hire from old-fashioned organizations. A corporate culture that cares for people and gives them room to grow will be a company's strongest magnet for attracting good people. CEOs will have to ensure that their line managers and human resources department design unconventional jobs and daring responsibilities to create offers that their targets cannot refuse. And if pursuing the right person and convincing him to agree takes time, the companies should be willing for it. In the knowledge economy the

corporate quest for intellectual capital will be a continuous process. Recruitment costs Low cost per hire may affect the quality of recruiting. Companies may think that the cost of hire may be high but if the company is able to attract the best talent, the company is successful. Quality of hire is a useful metric. to assess the strength of the recruiting process. Some companies evaluate candidates through multiple interviewers, assessment tests, reference and credit checks, background and educational verifications. Even with all of these techniques companies continue to realize the same "bell curve" distribution of employee performance. Others are smarter, they apply the technique of position, profiling to identify top performers and to change the bell curve. 82

Companies can design a brief performance evaluation process and use it on new entrants, within six and 18 months of joining. The quality of performance puts the recruiting process to test. While filling internal positions, the recruiting manager responds to his internal customer - the line manager. Measure of customer satisfaction proves to be a precious technique for fine tuning the system. Recruiting managers use post hire surveys and evaluations for this purpose. It is important for companies to document pre hire requirements and conduct objective post hire evaluations. Managers also seek feedback from the candidates themselves. Such data could give insights into further streamlining the recruiting process. How long before they are in? Recruitment cycle time is measured by the time taken to fill a vacancy. Another metric is staffing time ratio - the ratio of actual time in days to start to pre-contracted time to start. The contracted time to start is agreed upon between the hiring manager and the recruiter and it can be changed during the recruiting process with mutual consent. Internal hiring a more viable option Corporate recruiters have a dangerous bias towards hiring from an outside source. Industry giants like HLL and Tata's believe in homegrown talent. More often than not heavy recruitment happens at entry level and incumbents move along a structured career path as they grow with the company. The pool of talent keeps widening and gains richness with time. As a result it is never a daunting task to fill roles created out of unexpected situations. On the other hand fast growing, innovative relatively newer firms tend to focus more on external hires, a strategy guided partly by default and partly by design. By and large all companies end up using a mixed strategy. 83

Some companies believe that external hiring give facts about the competitors. External hiring brings in new ideas, perspectives, competencies and readymade skills that do away with the need for much investment on training. On the other hand internal recruitment works fine, sometimes better. The culture of certain companies may be such so as to mould the existing employees for further vacancies. Such companies boast of low employee turnover rate. Internal recruitment may have its benefits but it also demands a great deal from the HR of the company.

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Internal hiring cut out on downsizing Building an internal talent pool works as an innovative answer to overstaffing, especially if the company is wary of downsizing as the option. Internal hiring: more than just filling a slot Recruiting by itself serves a single purpose filling a slot. But when a company favors internal over external sources, it also addresses the critical issue of succession planning. It does not cater to executive replacement alone, it underlines a commitment to leadership development. A greater pool of talent can be harnessed at a short notice without the hassles of an elaborate search externally and without investing in further hiring and training costs. The above kind of a process involves psychometric profilers, offsite interactive workshops, multi rater feedback processes, management games and options as simple as observation and past performance records. Recruiting ... in spite of odds. Recruitment business has dropped by almost 40% lately and the situation may remain low profile at least for the coming months. There is general reduction in intake, recruiters are shying away from taking fresher or even people from cross-functional industries so that there is less investment in training. Organization's are trying to reallocate jobs, add portfolios to existing positions even considering outsourcing. Jobs are diminishing, merging or even disappearing altogether. While there are definite signs of conventional recruitment activity having slowed down, there are strong signals that organization's are successfully experimenting with more innovative techniques of talent scouting and sourcing of requisite skills need to be replenished.

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Innovative sourcing .... Its happening 70% of recruitment in India happens through the direct advertising route. Use of recruitment consultants is the second most favorite technique. Head hunting is very much in demand along with in depth interviewing. The Indian recruiter may have access to the best of Indian

recruitment consultancy firms as well as the cream of international search firms, all fiercely competing on grounds of quality and value added service. But he has started looking for different sourcing options. Employee referrals, for one is gaining popularity. Employee referrals HDFC BANK LIMITED on personal contacts is still a strong source of recruitment worldwide and is being capitalized in more sophisticated ways by many organization's. Hewlett Packard in the computing sector is reported to have adopted "company-opting schemes" whereby employees are promoted to recruitment positions and rewarded for their ability to become good recruiters. Recruiters have accepted the fact that recruitment advertising is an intricate process, involving a psychic attitude change. Its not about a simple job announcement in a newspaper. It is about attracting quality people who are not desperately looking for a job. An international restaurant chain realize that the candidates need to have a feel of the company before they decide to apply for a job. The company planned a two day event for potential recruits to walk in and meet managers personally, see videos and slide shows about the company. The open days also marked a change in direction as far as the recruiting process was concerned. Instead of screening for basic skills and past experience, the company concentrates on recruiting people for their personality, so that people could fit in. A new selection aid

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All India Management Association (AIMA) has taken a useful initiative by introducing an all India level test for the employability of prospective management employees (TEM). The test is administered to candidates who are in the second 1 final year of MBA programs or an equivalent course or have less than 2 years of post qualification work experience. Candidates are tested on parameters like general management skills, thinking skills, awareness of current business and economic environment and on their functional areas like marketing, finance, HRD, operations. Etc. TEM has been endorsed by 62 companies like HLL, Ceat LTD, ITC Ltd, Labor&T, GEC Alsthom Ltd, DCM Shriram etc. the scores achieved by the candidates in this test along with other details are sent to corporates to be short listed for 'Interviews and subsequent placement. Corporate houses get access to scientifically evaluated candidates from allover the country without having to visit each and every campus, thus saving time and effort. On the other hand, the candidates get access to a host of companies without individually applying to them.

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A suitable recruitment strategy An effective recruitment system like any other HR sub-system needs to be sync with the business strategy and objectives of the organization. Organizations adopt specific recruiting strategies tailored to their business needs. These business needs may change depending on the stage of growth of the organization.

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Recruitment strategy varied with stage of growth of the organization Business situation Characteristics of business situation Starting a new business Financial risk No systems/procedures / Organization Operational experience base is lacking. Limited relation with Suppliers, customers. Turnaround Need for rapid decision making. Weak competitive position. Low esteem/morale. Bureaucratic organization structure. Incompetent/inefficient personnel. New acquisitions New management proving themselves Existing management defensive about change Need to integrate acquired 89 Analytical ability Relationship building skills Credibility. Strong leader Strong analytical skills Business strategist Good crisis management Skills. Credibility. Vision In-depth knowledge Staffing Organizing and team Building. Characteristics of candidate

company with parent Liquidation of business Weak competitive positions Low returns Low morale, deficiency of skills Need to cut losses and make decisions Redeployment Low short term/long term risks Resistance to change Mismatch of organization resources and need Lack of strategic plan for quite some time. Determination Highly analytical in case of cost/benefits Willing to do dirty jobs Wants to be respected not just liked Good manager of change. Highly persuasive. Supportive. Risk taker.

What are the skill sets Process skills are being given more importance as compared to solely technical skills. Recruiters are keenly selecting for general attributes like ability to cope with change, leadership, entrepreneurship, project management, tolerance of uncertainty, management skills and communication ability. The five top skills sought in entry level candidates on campus are communication skills, team working, listening and problem solving.

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ANALYSIS

91

92

93

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FINDING

95

96

CONCLUSION
1. I have given various options for joining of the candidates in the organization in the questionnaire. Also I got more options from the employees while interacting with them. Most of the employees(28%) have mentioned the salary package as a reason for joining the organization. 16% of the employees have mentioned or pointed it out the working environment as the reason for joining the organization. 17% talked about the reputation of company and 23% mentioned about career growth opportunity. So I can say salary package and career growth opportunity are the more attractive to the employees.

2. From the analysis of recruitment and selection procedure it is clear that for recruiting employees both the companies following government procedures that consist of mainly written examination followed by interview. Written exam is mandatory for mainly all types of recruitment. For selection of the technical candidates they have to go through three mandatory interviews, out of which two are technical interviews and one is the interview with the Human Resource head.

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Employees satisfaction
Feeling'in' on things Understanding Appreciation Tactful Disipline Management Loyalty Interesting Work Working Condition Promotion Job Security Good Salary

7 8 7 9 7 6 9 9 6 7

Mana Worki Tactfu Feelin Job Intere geme Appre Under ng l g'in' Good Prom nt Secur sting ciatio standi Disipli on Salary otion Condi ity Work Loyalt n ng tion ne things y Series1 7 6 9 9 6 7 9 7 8 7

Rating scale

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Other findings of the qualitative response entailed from the HR Department (based on Questionnaire) The organisation deploys both internal as well as external sources for the process of recruitment. The internal sources of recruitment mainly comprise of: Promotions Transfers.

The external sources of recruitment include: Employment exchange Advertisements

The pipeline for recruitment with reference to the internal sources of recruitment is 1 month, wherein in the case of the external sources, it is 3 months.

The detailed breakup of the process of selection is as follows: Employment exchange Trait tests Written tests Receipt of applications Interview (panel of judges) Screening of applications Final selection.

Walk ins/write ins are deployed by the organisation only on compassionate grounds. This is applicable under certain special circumstances wherein, in the event of the death of an employee of the organisation, the laid job specifications (in terms of KSAs) would be relaxed for recruiting a family successor/son/daughter.

Background investigations are not used as a means for the verification of data furnished by the candidate in the application blank.

Physical examinations are conducted on a very thorough basis for the selection of lower level management. The organisation lays specific Job specifications in terms of specialised

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abilities, viz. height, eyesight and weight for potential candidates, applying at this level. E.g. All selection for Lower level management employees, within the Fire

Department/Technical station, requires potential candidates to possess specific requirements, in terms of physical dimensions. As an indicator of job proficiency: The Application form is not considered effective, as it simply furnishes the biodata/personal information of the applicant. At the non-managerial level designations, involving routinised operations, traditional paper-and-pencil tests constitute an effective device. Interviews are considered as a moderately effective device.

Other tests deployed as effective selection devices by the organisation are: Aptitude tests Trait tests Typing tests General communication tests Shorthand tests Driving tests

These tests form highly effective indicators/predictors for job proficiency.

Summary of the recommendations given by the Non-HR departments as entailed from the analysis

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The recommendations given by the different Departments constituting the sample for the analysis, are in terms of additional sources of recruitment and selection devices that should be deployed/used by the organisation in addition to current practice (specific for these Departments) Departme nt Recommendations in terms of sources of recruitment to be deployed in addition to current practice Stores Finance Employee referrals Employee Job pools Employment exchange Work samples Reference checks Work Samples Reference checks Operations Electronics Employee referrals Consultants Campus interviews (Middle Level Work samples Management) Reference Complex operations) Engineerin g Campus interviews (Top, middle Work samples and Lower Level Management) Reference Complex operations) checks ( for checks ( for Recommendations in terms of selection devices to be deployed in addition to current practice

managerial

managerial

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Qualitative responses (COMMENTS) given by the various Department respondents (as entailed from Questionnaire)

Departments

From the point of view of the organisation

From the point of view of the Department

Stores

Willing employees based on their There is no cadre in the Stores performance should be recruited, Department, therefore the staff instead of giving promotion on working in Stores on rotation is seniority basis. incorrect. The cadre should have been there, which gives moral backup to existing hard working employees prospects. for their future

Finance

Right candidate for the right job Experience should be selected irrespective of preference

should for

be

given level

middle

constraints regarding caste, creed, managerial positions over new age etc. Operations candidates.

There should be no reservations In all promotions, physical fitness for any category; the only criteria should be a specific criterion. should be competence.

Engineering

Selection of candidates for various Qualification of candidates along posts in different cadres should be with merit should be the

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strictly

on

the

basis

of consideration for promotion of

qualification and the merit of the candidates in the Engineering candidates. Management should Department. lay emphasis on Low Qualified

selecting engineers should have promotions qualified only to a certain level.

professionally individuals. Electronics

As per the merit of the candidate, We must segregate good and bad selection should be done. workers selection/promotion during

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Recommendations enclosed to HDFC Bank Limitedbased on the research

The organisation should deploy a segmentation matrix for the purpose of talent sourcing. This is in line with the identification of the talents that the organisation needs to attract for value creation. At the same time, the matrix also serves to screen any redundant talents that the organisation does not require within its pool of KSAs.

HIGH

LOW

Large number of best talent Low attraction of suitable is attracted from the target talent from target profile of profile of the applicants HIGH 1. RETAIN the applicants 2. CONTAIN

Attracts numbers

talent

in

large Develop strategies to attract Keep and retain talent at any cost

attracting

talent

within specified cost limits (not at any cost)

LOW

3. ATTAIN

4. ABSTAIN

Attracts mediocre talent

Focus and go after/attack to Do not put much energy in attract talent from the target talent sourcing profile

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The AI should endeavor to find out as to what attracts the right employees to apply to the organisation. Thus, knowing what the potential candidates who apply expect from the organisation and the reasons behind their desire to work for the organisation will help in 'working out' relevant recruitment policies. AI could emerge as a highly successful organisation in recruiting and retaining desired applicants, when such applicants experience work culture consistent with their expectations. For the same, the HR Department needs to 'learn' the patterns and develop programs that support recruitment and retention strategies. They can follow a simplified 'waterfall recruitment process' to recruit 'world class' talent.

The Waterfall Recruitment Process

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Recruitment Detailed design & plan Cultivate resources

Integrate selection tests/interviews

Offer

Induct Integrate into Train Deploy

Structured interviews: Interviews conducted by the Recruitment & Selection Committee of AI , while hiring for senior executive positions, should cover the following basic aspects:

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Decision making Problem solving Achievement Deadline consciousness Crisis management Customer orientation Leadership Motivation Communication Inter-personal skills Planning Adjustment Emotional Intelligence: The recruitment policy of AI should incorporate an evaluation of 'emotional intelligence', thus entailing the assessment of self-awareness, self-regulation, motivation, empathy and social skills, during the evaluation of the potential candidate. Containing political pressure: Political pressure exerted by trade unions is one of the biggest problems faced by AI. These trade unions leaning towards particular political groups hamper the natural process of recruitment. The relevant authorities within the organisation should induce requisite efforts in containing this emergent political influence coupled with appropriate government assistance.

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Suggestion/Recommendation
Summary of the recommendations given by the Non-HR departments as entailed from the analysis

The recommendations given by the different Departments constituting the sample for the analysis, are in terms of additional sources of recruitment and selection devices that should be deployed/used by the organisation in addition to current practice (specific for these Departments)

Departme nt

Recommendations in terms of sources of recruitment to be deployed in addition to current practice

Recommendations in terms of selection devices to be deployed in addition to current practice

Stores

Employee referrals Employee Job pools Employment exchange

Work samples Reference checks Work Samples Reference checks

Finance

Operations

Employee referrals Consultants

Electronics

Campus interviews (Middle Level Work samples Management) Reference checks ( for

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Complex operations) Engineerin g Campus interviews (Top, middle Work samples and Lower Level Management) Reference Complex operations)

managerial

checks

for

managerial

Qualitative responses (COMMENTS) given by the various Department respondents (as entailed from Questionnaire)

Departments

From the point of view of the organisation

From the point of view of the Department

Stores

Willing employees based on their There is no cadre in the Stores performance should be recruited, Department, therefore the staff instead of giving promotion on working in Stores on rotation is seniority basis. incorrect. The cadre should have been there, which gives moral backup to existing hard working employees prospects. for their future

Finance

Right candidate for the right job Experience should be selected irrespective of preference

should for

be

given level

middle

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constraints regarding caste, creed, managerial positions over new age etc. Operations candidates.

There should be no reservations In all promotions, physical fitness for any category; the only criteria should be a specific criterion. should be competence.

Engineering

Selection of candidates for various Qualification of candidates along posts in different cadres should be with strictly on the basis merit should be the

of consideration for promotion of

qualification and the merit of the candidates in the Engineering candidates. Management should Department. lay emphasis on Low Qualified

selecting engineers should have promotions qualified only to a certain level.

professionally individuals. Electronics

As per the merit of the candidate, We must segregate good and bad selection should be done. workers selection/promotion during

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Limitation
The organisation should deploy a segmentation matrix for the purpose of talent sourcing. This is in line with the identification of the talents that the organisation needs to attract for value creation. At the same time, the matrix also serves to screen any redundant talents that the organisation does not require within its pool of KSAs.

HIGH

LOW

Large number of best talent Low attraction of suitable is attracted from the target talent from target profile of profile of the applicants HIGH 5. RETAIN the applicants 6. CONTAIN

Attracts numbers

talent

in

large Develop strategies to attract Keep and retain talent at any cost

attracting

talent

within specified cost limits (not at any cost)

LOW

7. ATTAIN

8. ABSTAIN

Attracts mediocre talent

Focus and go after/attack to Do not put much energy in attract talent from the target talent sourcing profile

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Annexure

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BIBLIOGRAPHY
1. News Paper Times of India Hindustan Times Economic Times The Pioneer The Hindu Catalyst Financial Express Economic and Political Weekly

2. Magazines India Today Todays traveller A&M Business Today Business World Business Digest

3. Web sites www.hdfc.com www.indiatimes.com

4. BOOKS Robbins P. Stephens, Organisational Behavior, Prentice Hall, 7th Edition, Chapter 16, pages 636-641. Koontz Harold & Weihrich Heinz, Essentials of Management, Mc Graw Hill, 5th Edition, Chapter 11, pages 217-245. Decenzo A. David & Robbins P. Stephen, Personnel/HR Management, Prentice Hall, 3rd Edition, Chapters 6,7 & 8, pages 117-209.

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MAGAZINE

Name of the Magazine Human Capital

Vol.

No.

Month & year

Publishing agency HR Information Services

Name of the article 'The Trick of not losing them' 'The Metrics of Hiring'

Name of the writer Brahma Gautam

Pg. No.

Sep.'03

12,13

Human Capital

Sep.'03

HR Information Services

14 - 17

Human Capital

Dec.'03

HR Information Services

'Ready get set & go'

Jomon M.G.

40 - 44

Human Capital

July'2004

HR Information Services

'Scaling heights together'

Bhatnagar Jyotsna & Menon Deepti

40 - 46

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QUESTIONNAIRE NAME: COMPANY: DESIGNATION: DEPARTMENT:

1. What is the working period of employees in the company? (Tick any one) Within 1 year Between 1-2 years Between 2-3 years Between 3-5 years

2. What are the reason of the candidate to join the company? (Tick all that apply) Reputation of the company Working environment Location of the company salary package job prospects career growth opportunity

3. How candidates are recruited in the company? Written exam Written exam, GD and interview written exam and interview others

4. Did you get the same job specification as offered during the interview? Yes No

5. Is there any role of Union in the organization? Yes No

6. Is there any changes occurred in the recruitment and selection procedures of the company in the last five years? Yes No

7. Is there any effect of recruitment and selection procedure towards gratitude of employees? Yes No

8. Is the organization doing anything to reduce the employee turnover ration? (Tick all that apply) 116

Better salary package

More benefits Changing / Improving working conditions Better promotion / Career Development Opportunity 9. Are you satisfied with the salary and job security provided by the company? Yes No

10. Is the company understanding, appreciating, providing interesting working conditions, promotion/ career growth opportunities for an employee? Yes No

11. In your views, do you think the way you are recruited in the company is fair. (If answer to this question is No, Please attend next question too) Yes No

12. If No, What all changes do you think required for fair recruitment and selection process in your company. ______________________________________________________________________________ ______________________________________________________________________________ ______________________________

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