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Program & Batch:

Term:
Course Name:
Name of the faculty:
Topic/ Title :

PGDM 2014-16
3
Human Resource Management
Dr. Hardik Shah
Recruitment Practices
A comparative study between the Travel industry and the
Automobile industry in India

Original

Original
or Revised Write-up:
3
Group Number:
Contact No. and email of Group Kirti Chablani
No: 7053143189
Coordinator:
Email: ft14kirtipishuchablani@imt.ac.in
Sl
Group Members:
Roll No.
Name
.
1 140103040
Atul Gupta
2 140102039
Christy B Mathai
3 140101083
Kirti P Chablani
4 140103107
Natasha Lobo
5 140101108
Nivesh Gupta
6 140103137
Rohan Nagar
7 140102138
Vaibhav Khandewal

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Acknowledgements
We would like to use this opportunity to express our gratitude for the support that we
received through the course of this project until completion. The guidance, advice and
criticism have helped in guiding us in several aspects.
We would like to thank Dr Hardik Shah for his support and guidance. We would also like to
thank all the people who provided us with the facilities required and information required to
complete this project successfully.

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Table of Contents
Acknowledgements....................................................................................................................2
List of tables, figures and abbreviations....................................................................................4
Introduction................................................................................................................................5
Problem Formulation.................................................................................................................7
The Travel Industry....................................................................................................................7
The Automobile Industry (Mahindra Trucks & Buses)..............................................................9
Major challenges faced:...........................................................................................................12
Standard best practices.............................................................................................................13
References................................................................................................................................14

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List of tables, figures and abbreviations

Flow chart of the recruitment process5


Sources of recruitment in Travel industry..9
Recruitment and selection at Mahindra T&B...11
Interview process at Mahindra T&B11

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Introduction
Recruitment is arguably the most important of the human resource functions because the
sourcing of people is essential for e1conomic activity to take place in an organization. The
quality of people in the organization can determine the success or failure of an effective
human resource management system. The prime objective of recruitment is to find suitable
candidates to meet organizational needs in the most cost effective manner possible.
At this point, it is essential to highlight the difference between recruitment and selection-two
words that are more often than not, used interchangeably. Recruitment is meant to attract
genuinely suitable candidate and carefully examine their credentials in order to produce a
shortlist for further investigation in the selection process. The objective can be successfully
achieved provided human resource planning and job analysis have been carried out and
applied. The recruitment process should be systematic and follow a certain pattern which is
explained in the flow chart diagram
Fig 1: Flow chart of the recruitment process
Job description
and person
specification

sourcing
strategy

send application
form and
request CV

pre selection

references/medi
cal

interview/GDs

tests (optional)

short list

appointment

induction
program

follow-up

The requirements of an effective recruitment and selection process may be conveniently


examined under the following headings:
1. Determining the vacancies
2. Sourcing strategy
3. Recruitment policy
4. Preparing and publishing information
5. Processing and assessing applications
6. Notifying applicants
Determining the vacancies is the first step in the procedure and is considered with the
demand. Job vacancies occur when an organization or work unit is set up, there is expansion;
reorganization takes place through changes of policy, technology, location, M&A, demergers
or most commonly when employees leave an organization or need to be replaced. Sound
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human resource planning analysis could ensure that there is no perpetual existence of job
vacancies.
The new trend in recruitment is contract hiring that departs from full-time, normal working
hours. The advantage of this is that it allows the organization to access new labour markets
including short term, part-time, working from home, term-time working, annualized hours,
twilight shifts and call out contracts among a variety of working time available. Apart from
the above mentioned options, franchise operations and subcontracting arrangements provide
opportunities for work to be carried out without employers bearing the costs and risks of
traditional recruitment and employment methods.
The concerns with supply and availability of resources and the particular avenues through
which they are likely to be obtained are covered under sourcing strategy. There are various
factors that impact the availability of resources at micro and macro levels. The sourcing
strategy must not fail to consider options of internal organizational sourcing as it may be
possible to fill job vacancies from within the organization through transfers and promotions.
It can be beneficial to the organization to consider internal sourcing because existing
employees are already familiar with the culture and practices, it could be more cost effective
and less time consuming. It could also be used as a means for career development.
Recruitment policy is largely a matter of making choices within a framework of legal rules
and requirements. The legal framework covers several areas under the Factories Act and the
Commercial Establishments Act and this will affect choices of recruitment methods,
advertisements and the process used. The archetypical recruitment process consists of three
types- single tier entry, two tier entry points and multiple tier entry points- which represent
the ideal types of hiring policies but in reality, there may be a mixture of these.
Decisions on recruitment policies have a big impact on career management and organization
culture. A formal recruitment policy facilitates understanding in larger and widely dispersed
organizations. A common policy of hiring encourages wider understanding of both the antidiscrimination policies and the significance of recruitment for the organizations culture.
Various sources for external hiring such as institutional agencies, private employment
agencies, advertisements in the press or other media, the internet, company website etc
should also be mentioned.
Special attention and skill is required in preparing and publishing information. The
information published should adhere to certain conditions. It should give a favourable image
of the company, should not contradict employment laws, and should aim to attract the
attention of maximum number of potentially suitable candidates. It should also answer
questions such as the details of the job in terms of skills, duties, opportunities, rewards,
conditions and special circumstances. Details on how the application is to be presented can
also be mentioned. Preparing and publishing information includes job advertisement and the
detailed format of the application form.
This is then followed by processing and assessing applications, notifying applicants and
administration of the recruitment process. Post this, the selection process begins.
Human resource planning involves the assessment of future requirements, assessment of
current resources and availability of resources in the future, labour turnover etc. New trends

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such as digital recruitment, recruitment through social medial platforms etc are becoming
increasingly popular.

Problem Formulation
There are various factors due to which the recruitment practices of various companies in
different industries differ. Some of them are as follows
Organizational objectives
Personnel policies of a particular organization
Micro economic and macro-economic factors
Differences in the sources used for recruitment
Financial implications
Recruitment costs to the company
Industry that the organization functions in
Recruitment planning should be done in such a way that the above factors are not ignored.
The industry in which the organization functions is a major determinant of recruitment
practices. For example, the hiring practices in the service sector versus hiring trends in the
manufacturing sector may vary to quite a large extent. The skills required, job descriptions
and the resources required differ to a large extent.
This, in turn, leads to differences in the recruitment planning and other human resource
practices in both the sectors. This study aims to capture the reasons for the differences in
these practices. While manufacturing involves the production of tangible products by
conversion of inputs to outputs, services require the assembly and sale of intangible
commodities such as travel, education etc. The nature of the job to be done is of high
importance in recruitment planning. There are several instances such as greater demand for a
product, increase in the number of people who wish to go on vacations etc which trigger the
need for employing resources in companies.
The objectives of the study are as follows
1) To understand the impact of accurate recruitment planning on reducing costs
2) To evaluate the challenges faced while designing recruitment practices
3) To understand the industry best recruitment practices
This project aims to achieve three main objectives which will explain the reasons for the
differences in recruitment practices between two industries.

The Travel Industry


As per the WTTC (World Travel and Tourism council) report, Indias travel and tourism
industry is expected to grow by 7.3 per cent in 2014. Through this, it will outperform the
general economy by 2.5 percentage points. The industry includes travel companies,
intermediaries, online travel providers, hotels, tour guides and everything in between. The
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human resource in this industry requires a set of hard skills and soft skills in order to engage
customers and provide economic value to the company.
The soft skills required can be mainly grouped under social skills and organizational skills.
Social skills include areas such as communication skills and working with others as part of a
team. The industry deals in services and hence do not have tangible products which a
customer can feel and touch before making a purchase. Therefore, it becomes necessary for
the human resources employed in this industry to make an extra effort to push the service to
the customer, who relies entirely on the people in most cases.
Organizational skills such as time management, decision making, prioritising, planning and
co-ordination, multitasking etc. are highly valued. From a travel consultant to a tour
manager/guide, these skills are imperative because the day doesnt always go as planned. The
phrase, Customer is King, rightly applies to this industry as the demands of clients vary as
per their requirements and they could be fussy and picky about the services being provided to
them.
Bearing all this in mind, recruiters have to plan the process of recruitment in order to ensure
that they get the right fit, for the job. An important aspect of this industry is that the
business is impacted by the seasons. For example, March to July is peak season in India
because several families go on holidays when their children have summer vacations. The
recruiter would also need to keep these fluctuations in the business volume in mind.
Sources for recruitment used are as follows:
Graduates and Post graduates
Students are hired as trainees when they pass out from college. Most of these students
hired should have done their education in Tourism. For example, Bachelors in
Tourism Management or Masters in Tourism Administration or Bachelors in Hotel
Management or Bachelors in Commerce along with a specialization in Tourism
Management., etc. In most companies, these students are hired either as executive
trainees (after completing their Bachelors programmes) or management trainees (after
completing their masters programs). They are then put through an on-the-job training
period for a span of 6 months to 12 months, post which they become a confirmed
employee (based on performance).

Laterals
The industry does demand some amount of specialization skills in order to carry out
business transactions. For this purpose, the companies carry out lateral hiring-lateral
hires are mostly from competitor companies in the same business or similar business.
They understand how the business works and do not require extensive training as far
as the skills are concerned. Laterals are hired mostly when the company is in a hurry
to replace an open position and would require the new employee to begin work
immediately by relying on the employees skills earned through experience. Lateral
hires are mostly not made at entry level positions.
Employee Referrals
The employee referral program encourages existing employees to refer their friends or
family for a particular job in exchange for some incentives. This method of
recruitment is applied in combination with 2-3 other methods as companies may not
want too many relatives or friends of a particular employee working in the same
organization. This program helps to hire people both at the entry level and as laterals.
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Online job portals


Recruiters turn to online job portals when there is a serious lack in supply of
resources. The millennial generation is always available connected through the
internet and mostly upload their job requirements on online portals. Recruiters mostly
have a tie-up with these portals in order to find the right fit for the job position. They
could also access the open resumes available on the portal if they wish to save on
costs. This form of hiring has gained popularity in recent times.

Contract employees
Due to the seasonal nature of the business, employees are also sourced on a contract
basis during peak season times in order to deal with the increase in customer
demands. The contract employee is not on the pay roll of the company but is on the
pay roll of the contractor.

Internal transfers
Most companies today encourage cross-functional transfers. After an employee has
completed a certain number of years in the company, he/she could apply for a cross
functional transfer. However, only a few positions can be fulfilled in this manner
because it would depend on various factors.

Fig2. Sources of Recruitment in the Travel Industry


17

campus recruitment

25

laterals
employee referrals

46

job portals
13

82

contract employees
internal transfers

The Automobile Industry (Mahindra Trucks & Buses)


About Company
Mahindra Truck & Bus division, formerly called Mahindra Navistar/Mahindra International
Limited is JV between Mahindra & Mahindra and Navistar International based in United
States of America. It provides engineering services for the design and development of truck
and bus products. The company was founded in 2005 and is headquartered in Mumbai, India.

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The distribution network used is of M&M. The companys three plants are located in
Mumbai, Pune & Zaheerabad.
The company works in three businesses:
Manufacturing trucks and buses in India for sale in domestic as well as foreign
markets
Engineering services for design and development of trucks and buses for Navistar
Enable Navistar to use India as significant supply base for components and materials
Manpower Planning at Mahindra T&B
According to structure of Mahindra T&B, MD heads seven departments which in turn is
headed by one HOD each for every department.
For starters, human resources management takes all the requirements of HOD. This consists
of following:
1. Permanent and contract employees- the number of workers required to exercise for a
financial year
2. No. of trainees required for engineering as well as management positions
3. Band wise breakup for new recruits
4. Requirement for summer interns on ad-hoc basis
After requirement collection, analysis is done. In case of increase or decrease in the
manpower compared with the same for last year, a proper justification needs to be asked.
Structure is formalized after the final compilation of data is done by HR. This formalized
report is put forward for approval of MD of Mahindra Truck & Bus division & Sr. VP,
Human Capital of M&M Auto Sector. The whole process is completed before March every
year.
Job Description at Mahindra T&B
After the initial requirements are finalized, HR lists down the set of unique and critical
positions in each department. The work profiles that are completely different from other are
categorized as "unique positions" while the positions having significant impact on the
business and manning of this position is absolutely important are categorized under "Critical
positions". Mahindra T&B uses two formats for description. Hay's format for critical
positions and One page format for rest all.

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Recruitment & selection at Mahindra T&B

As per flowchart, Mahindra T&B has 3 tier interview processes


Officer to Manager
1st round
Supervisor
nd
2 round
HOD & HR
Sr. Manager
1st round
Supervisor
nd
2 round
HOD & HR
3rd round
MD and Sr. VP HR
st
DGM & Above
1 round
Supervisor & HOD
2nd round
HR & MD
rd
3 round
Sr. VP HR & Chairman
Psychometric tools used by Mahindra T&B
Mahindra Truck & Bus division uses two psychometric tools. Both are listed below
1. Thomas Profiling Systems: It is a leading international managerial aid for recruitment
activities. It enables employers to realize full potential of employees by identifying
and utilizing individual strengths. It assists managers in motivating, energizing and
stimulating individuals in work environment. It also helps in raising self-esteem and
enthusiasm levels of employees. The standardised assessment instruments include
Personal Profile Analysis (PPA), Human Job Analysis (HJA), Team Assessment
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System (TSA) and Assessments for Selection and Training (TST). Each test takes not
more than 5 minutes. Results are translated into highlights of individual intellectual
strengths.
2. MBTI: Myers-Briggs Type Indicator is a self-report questionnaire designed to make
Jung's theory of psycho-logical types understandable and useful in everyday life. It
identifies valuable difference between normal, healthy people which can be a source
of misunderstanding and miscommunication later on. It helps in identifying unique
gifts of each employee. It enhances motivation, natural strengths and potential areas
for growth. It is used for variety of purposes including:
a. Self-understanding and development
b. Career development and exploration
c. Organization development
d. Team building
e. Management and leadership training
f. Problem solving
g. Relationship counselling
h. Education and curriculum development
i. Academic counselling
j. Diversity and multicultural training
Sources for recruitment
Identifying right candidates and reaching out to them is very important for recruitment
planning. For this purpose, a variety of media is used to spread the word about recruitment
process. Some of them are:
a. Newspaper advertisements
b. Employment agencies
c. On campus recruitment
d. Deputation from other organizations
e. Employee recommendations
f. Labour unions
g. Gate hiring
Apart from this, with the advent of social media, companies are moving towards hiring
through specialized portals like job portals and networking sites like LinkedIn.

Major challenges faced:

Fresh graduates (mostly executive trainees) may not remain in the company for a long
period of time. The costs involved in training these employees are high and hence
leads to a loss for the company
Most students hired through the campus recruitment program may wish to pursue
their higher education and this serves as a threat to the company
In cases of online job portals, many resumes need to be scanned in order to find a few
that may qualify for the selection process. A meeting would then need to be scheduled
with the potential recruits in order to begin the selection process. There are no-shows
in many cases and this leads to loss of time for the recruiter
Internal transfers sound easy, but may be a highly complex process with several
approvals required, both from the department letting go of the employee and from the
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department that would be absorbing the employee. The cost of the employee would
need to be transferred. This method of hiring may also give way to internal politics
Lateral hires are more costly than most other methods. Since they come with prior
experience, their existing salaries would need to be increased and adjusted to best
meet the demands. They may not accept offers if the company fails to meet their
negotiations. Another aspect to note is that most of them have to serve a notice period
ranging anywhere from 45 to 60 days. If the recruiting company requires them on an
urgent period they will have to buy out their notice period.
The seasonal nature of the business also may pose to be a problem for the company in
many cases. The company should never over-recruit or under-recruit. In case of an
excess number of employees, it will increase the costs to the company.

Standard best practices


A good HR planning system of the organization should be able to answer the following
questions.
1. What should be the size of workforce required?
Estimation needs to be made about the average productivity of the staff and based on that
estimation; size of workforce needs to be planned.
2. What would be major functional areas for which personnel would be required?
The requirements gathered from various operational heads should be broken down into
functional areas e.g. accounts, finance, IT, audit, sales etc. This will require HR personnel
to foresee a lot of complications that can be involved after the new recruits are put to
work.
3. What would be the characteristics of personnel?
Further analysis and foresight is required to chalk out the characteristics of personnel to
be put on the functional areas defined above. The functional areas will need to be further
broken down into levels of expertise and the skill levels required for them. The
anticipated job description will have its basis on the same. For example, the Internal Audit
department would require some Audit Assistants, some Audit Supervisors and one
Internal Auditor. Each of these categories of people will have a different job description
and skill requirements.
4. Where would we find appropriate people?
A target pool needs to be created by looking up information about colleges and other
institutes in local area. Information about other companies from same sector in local area
should also be available in the target pool. Recruitment portals can also be used to
increase target pool size.
5. What kind of training and inductions systems should be there for the staff?
Training and induction system for the staff will have to be customized according to
functional areas and characteristics of personnel. For example a sales person require
training in processes, procedures and products but a person joining at the middle
management level would require training in operational and financial analysis. A
combination of in-house and external trainings can also be planned.
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Recruitment, training and deployment will have to be in accordance with the HR plan.

References
http://yourstory.com/2014/07/online-travel-india/
https://www.recruiter.com/i/best-practices-in-recruiting/
http://www.euromonitor.com/travel-and-tourism-in-india/report
http://www.mahindratruckandbus.com/

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