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RECRUITMENT
Meaning
Recruitment is under tool as the process of searching and obtaining application for jobs,
from among the right people can be selected. Recruitment is only one of the steps in the entire
employment process.
Definitions of Recruitment:
“A process to discover the sources of manpower to meet the requirements of the staffing
schedule and to employee effective measures for attracting that manpower in adequate numbers
to facilitate effective selection of an efficient work force.”
“The process of searching for prospective employees and stimulating them to apply for
jobs in the organization.”
Edwin B. Flippo
“Recruitment is the process of finding and attracting capable applications for
employment. The process begins when new recruits are sought and ends when their applications
are submitted.”
The result is the pool of applications from which new employees are selected.
Recruitment Process:
Recruitment refers to the process of identifying and attracting job seekers so as to build to a
pool of qualified job application.
1 .Planning
2. Strategy development
3. Searching
4. Screening
5. Evaluation and control
Recruitment Planning:
The stage in the recruitment process in the planning. It involves the translation of
likely job vacancies and information about the nature of these jobs into a set of objectives or
Strategies that specify the number and types of applicants to be contacted.
Number of Contacts:
Organizations, nearly always, plan to attract more applications that they will hire. Some
of these contacted will be uninterested, unqualified or both. Each time recruitment
programmed is contemplated; one task is to estimate the number of applicants to fill all
vacancies with qualified people.
This refers to the type people to be informed about the opening. The types of people
depend on the tasks and responsibilities involved and the qualifications and experience. The
details are available through job description and job specification.
Strategy Development:
When, how many and what type of recruit are required is known, serious
consideration needs to be given to the following
A. Make or buy
Organization must decide whether or hire les skilled employees and invest on training
and education programs. Essentially, this is the make or buys decision.
B. Technological Sophistication
Technological advancement has made it possible for jobs seekers to gain better access.
The have began sending video tapes about themselves to a number organization without wasting
spending money on travel.
C. Sources of recruitment.
There are several sources and broadly into two types
1. Internal recruitment
2. External recruitment
1. Internal recruitment:
It includes present employees, employee referrals, former employees and previous
applications.
Present employees:
Promotions and transfers from among the present employees can be good sources of
Recruitment.
2. External recruitment:
External sources for out number the internal methods. Specifically, souces external to
an organization:
a. Professions or trade Associations.
b. Advertisements
c. Employment Exchanges
d. Campus Recruitment
e. Walk-in and write-in.
f. Consultants
g. Displaced persons
h. Radio and Television
i. Acquisitions and Mergers
j. Competitors
k. E-Recruitment
Searching:
Once a recruiting plan and strategy and worked out, the search process can begin,
search involves two steps:
a. Source activation
b. Selling
a. Source activation:
Source and search methods are activated by the issuance of employee requisition.
It means that no actual recruiting takes place until line manners have verified that a Vacancy does
exist or will exist.
b. Selling:
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In selling the organization, both the message and the media deserve attention.
Screening:
The purpose of screening is to remove from the recruitment process, at any early
stage, those applicant who are visibly unqualified for the gob .Effective screening can save great
deal of time and money care must be exercised.
In screening, clear job specifications are invaluable. Campus recruiters and agency
representatives us interviews and resumes. Reference checks are also useful in screening.
1. Scouting:
It means sending the representation of the organization various sources of recruitment
with view to persuading or stimulating the changing to apply for jobs the representative
representatives provide information about the company and exchange information and ideas and
classify the doubts of the candidates.
2. Salary and perks:
Companies stimulate the prospective candidates by offering higher level salary,
more perks, and quick promotions etc.
3. ESOPs:
Companies recently started stimulated the employees by offering stock ownership to the
employees through their employees stock ownership programs.
SELECTION
The selection procedure is concerned with Securing relevant information about an
applicant, this information is secured in a number of steps or stages .The objective of selection
process is to determine whether an applicant meets the qualifications for a specific job and to
choose the applicant who is most likely to perform well in that job.
Selection is the process choosing a person Suitable for the job out of several persons. It
involves a careful Screening and testing of candidates who have put in their applications for any
job in the enterprise. Selection involves rejection of some Candidates and hence some times
known as “negative process or Process of elimination.” Thus, selection is a negative function
.The Purpose of selection is to pick up the right person for every job.
Selection policy:
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While formulating a selection policy, due consideration should be given to organizational
requirements as well as technical and professional dimensions of selection procedure. Yoder and
others have suggested goals, technological issues, cost factors, extent of formality, etc. In other
words, an effective policy must assert the “why” And “what” aspects of the organizational
objectives.
Selection Procedure:
Selection is a long process, commencing from the elementary interview of the applicants
and ending with the contract of employment. There is no standard selection procedure to be used
in all organizations or for all jobs. The complexity of selection procedure increases with the level
and responsibility of the position to be filled. The strategy and method used for selecting
employees varies from organization to organization and from one job to another.
Selection decisions should be made after using a range of tools appropriate to the time
and resources available. The most common techniques are described below. Care should be taken
to use techniques which are relevant to the job and the business objectives of the organization.
All tools used should be validated and constantly reviewed to ensure their fairness and reliability.
Purpose of Tests:
Tests are also used for the purpose of making a differential placement of assignment of a
person to the job for which he is most suitable; for selecting candidates for promotion and
transfer within an organization’ for selecting candidates for assignment to a company training
programs and for assisting in individual employee in solving his problems.
According to Wendell, tests are used in business for three primary purposes:
a) For the selection and placement of new employees;
Proficiency Tests:
Proficiency tests are designed to measure proficiency and skills already acquired by the
candidate through training experience. There are various jobs that required specialized skill. In
these jobs, the candidate is asked to demonstrate his abilities by undergoing trade test. A number
of industrial organizations in India are using trade test for the selection of clerical, supervisors
and technical personnel.
Psychological Tests:
These tests are gained popularity in selection process because of their positive
contribution to this psychological tests are being increasingly used in selecting employees.
These tests provide a systematic procedure for sampling human behavior. They are based on the
assumptions that no two individuals are equal in terms of intelligence, attitudes, personality and
other trades. The nature and degree of once psychological and other characteristics are measured
through test. The purpose of these tests is to judge the ability of candidates in a given job
situation. Psychological tests help to predict the success of a candidate on the job. They help to
reduce bias and subjective judgment in the selection process. They also help to identify talent
that may otherwise be overlooked. These tests are called psychological tests because they have
been designed by psychologies.
Aptitude Test:
Intelligence Tests
These tests in general measure intelligence quotient or intellectual capacity of a
candidate. These reveal whether an individual has the capacity to deal with the new problems.
These help determine a person’s word fluency, memory, inductive reasoning, comprehension,
speed of perception and spatial visualization. Intelligence tests measure the ability to understand
instructions and make decision. These tests are useful in selecting employees for a wide variety
of jobs.
Psychomotor Tests:
These tests measure a person ability to perform a specific job. These tests help to
measure the mental dexterity or motor ability and similar attitudes involving muscular
movement, control and coordination. These are primarily used for selecting workers whose have
to perform semi skilled and repetitive jobs like assembly work, packing, testing and inspection.
Achievement Tests:
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These tests measure what a person can do. These tests determine the skill or knowledge
already acquired through training and on the job experience. These tests are classified into two
types,
1) Job knowledge Tests:
Under these tests a candidate is tested in the knowledge of particular job. This test
can be both oral and written. This test is also useful in the selection of typists, office
workers, sales persons and public utility employees.
Interest Tests:
These tests are inventories of the likes and dislikes of candidates in relation to work, job,
occupations, hobbies and recreation activities. These tests are used to discover a person’s area of
interest and to identify the kind of work that will satisfy him. These are generally used for
vocational guidance. A well designed questionnaire is used to assess the likes and dislikes.
Personality Tests:
These are pen and paper tests. These are used to judge the psychological makeup of a
person. This test probe deeply to discover clues to and individual’s value system, emotional
reactions and maturity, and his characteristic mood. These tests help in assessing a person
motivation and interests, his ability to adjust himself to the stress of everyday life, his capacity
for interpersonal relations, and for projecting an impressive image of himself. These are
expressed in terms of the relative significance of traits, such as self confidence, ambition, tact
emotional control optimism, decisiveness, sociability, objectivity, conformity, patience, fear,
distrust, initiative, judgment, Dominance, sympathy and integrity, etc., these tests are used to
select supervisors and executives and for counseling people. These are the widely used in
industry as these provide an all round picture of a candidate personality.
a) Objective tests:
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Most personality tests are objective tests as they are suitable for group testing and can be
scored objectively.
b) Projective tests:
Under these tests candidates are asked to project their interpretation of certain standard
stimulus situations basing on ambiguous pictures, figures etc. the way in which they respond to
these stimulus situations reflect their own values motives and personality.
Depth Interview:
In this type of interview, the candidates would be examined extensively in core areas on
knowledge and skills of the job. Experts in the particular field examine the candidates by posing
relevant questions so as to extract critical answers from them, and judge candidate’s capabilities
in the area.
Group Interview:
In this interview, groups rather than individuals are interview. Generally, a topic for
discussion is given to the group. The candidates in the group are carefully observed as to who
will lead the discussion, how well they will react to each other views. Such interview is based on
assumption that behavior displayed in a group situation is related to potential success in the job.
Stress Interview:
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This interview aims at testing candidate’s job behavior and level of withstanding during
the period of stress and strain. Interviewer tests the candidate by putting him under stress and
strain, by interrupting the candidate from answering, criticizing his options, asking questions
pertaining to unrelated areas, keeping silent for unduly ling period after he has finishing
speaking, etc.
Selection Decision:
After obtaining information through the preceding steps, selection decision- the most
critical of all the steps - must be made. The other stages in the selection process have been used
to narrow the number of candidates. The final decision has to be made from the pool of
individuals who pass the test, interviews and critical reference checks. The views of the line
manager will be generally considered in the final selection because it is he/she who is
responsible for the performance of the new employee. The HR managed plays a crucial in the
final selection.
Physical Examination:
After the selection decision and before the job after offer is made, the candidate is
required to undergo a physical fitness test. A job offer is, often, contingent upon the candidate
being declared fit after the physical examination .The results of the medical fitness test are
recorded in a statement and are preserved in the personnel records. There are several objectives
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behind a physical test. Obviously, one reason for a physical test is to detect if the individual
carries any infectious diseases. Secondly, the test assists in determining whether an applicant is
physically fit to perform the work. Third, the physical examination information may be used to
determine if there are certain physical capabilities which differentiate successful and less
successful employees. Fourth, medical check-up protects applicants with health defects from
undertaking work that could be detrimental to them or might otherwise endanger the employer’s
property. Finally, such an examination will protect the employer from workers’ compensation
claims that are not valid because the injuries or illness were present when the employee is hired.
Situation Tests:
This test evaluates a candidate in a similar real life situation. In this test the candidate is
asked to either to cope with the situation or solve critical situations of the job. These situation
tests are of two types:
a. Group Discussion:
This test is administrated through group discussion approach to solve a problem under which
candidates are observed in the areas of initiating. Leading proposing valuable ideas, conciliating
skills, oral communicating skills, co-coordinating and concluding skills.
b. In-basket:
Situation test is administered through “In-basket.” The candidate in this test is supplied
with actual letters, telephone and telegraphic message reports and requirements by various
officers of the organization, adequate information about the job and organization. The candidate
is asked to take decision on various items based on the basket information regarding
requirements in the memoranda.
Interview:-
An interview is a purposeful and exchange of ideas, the answering of questions and
communication between two or more persons”.
The interview is a selection technique which enables the employer to view the total
individual and directly appraise him and his behavior. It is a method by which an idea about
Objectives of interview:-
To crosscheck or verify the information obtained in application form and test.
To judge the candidates qualifications and characteristics so as to decide whether or not
to select him.
To establish a rapport or feeling of mutual understanding and confidence between the
Human Resource Department and the applicant who is to be employed.
Job Offer: - The next step in the selection process is job offer to those applicants who have
crossed all the previous hurdles. Job offer is made through a letter of appointment. Such a letter
generally contains a date by which the appointee must report on duty.
BPO that is contracted outside a company's country is called offshore outsourcing. BPO
that is contracted to a company's neighboring (or nearby) country is called near shore
outsourcing.
Given the proximity of BPO to the information technology industry, it is also categorized
as an information technology enabled service or ITES. Knowledge process outsourcing (KPO)
and legal process outsourcing (LPO) are some of the sub-segments of business process
outsourcing industry.
Size of industry
India has revenues of US$10.9 billion from offshore BPO and US$30 billion from IT and
total BPO (expected in FY 2008). India thus has some 5-6% share of the total BPO Industry, but
a commanding 63% share of the offshore component. This 63% is a drop from the 70% offshore
share that India enjoyed last year, despite the industry growing 38% in India last year, other
locations like Eastern Europe, Philippines, Morocco, Kenya, Egypt, Uruguay and South
Africa have emerged to take a share of the market. China is also trying to grow from a very small
base in this industry. However, while the BPO industry is expected to continue to grow in India,
its market share of the offshore piece is expected to decline. Important centers
in India are Bangalore, Hyderabad, Chennai, Kolkata, Mumbai, Pune and New Delhi.
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The top five Indian BPO exporters for 2006-2007 according to NASSCOM
are Genpact, WNS Global Services, Transworks Information Services, IBM Daksh, and TCS
BPO.
According to McKinsey, the global "addressable" BPO market is worth $122 – $154
billion, of which: 35-40 retail banking, 25-35 insurance, 10-12 travel/hospitality, 10-12 auto, 8-
10 telecoms, 8 pharma, 10-15 others and 20-25 is finance, accounting and HR. Moreover, they
estimate that 8% of that capacity was utilized as of 2006
The industry has been growing rapidly. It grew at a rate of 38% over 2005. For the FY06
financial year the projections is of US$7.2 billion worth of services provided by this industry.
The base in terms of headcount being roughly 400,000 people directly employed in this Industry.
The global BPO Industry is estimated to be worth 120-150 billion dollars; of this the offshore
BPO is estimated to be some US$11.4 billion. India thus has some 5-6% share of the total
Industry, but a commanding 63% share of the offshore component. The U.S $7.2 billion also
represents some 20% of the IT and BPO Industry which is in total expected to have revenues
worth US$36 billion for 2006. The headcount at 400,000 is some 40% of the approximate one
million workers estimated to be directly employees in the IT and BPO Sector.
The related Industry dependent on this are Catering, BPO training and recruitment,
transport vendors, (home pick up and drops for night shifts being the norm in the industry).
Security agencies, Facilities management companies.
Currently the Indian BPO Industry employs in excess of 245,100 people and another
94,500 jobs are expected to be added during the current financial year (2005–2006)
A third way in which BPO increases organizational flexibility is by increasing the speed
of business processes. Using techniques such as linear programming can reduce cycle time and
inventory levels, which can increase efficiency and cut costs. Supply chain management with the
effective use of supply chain partners and business process outsourcing increases the speed of
several business processes, such as the throughput in the case of a manufacturing company.
Finally, flexibility is seen as a stage in the organizational life cycle. BPO helped to
transform Nortel from a bureaucratic organization into a very agile competitor. A company can
maintain growth goals while avoiding standard business bottlenecks. BPO therefore allows firms
to retain their entrepreneurial speed and agility, which they would otherwise sacrifice in order to
become efficient as they expanded. It avoids a premature internal transition from its informal
entrepreneurial phase to a more bureaucratic mode of operation.
A company may be able to grow at a faster pace as it will be less constrained by large
capital expenditures for people or equipment that may take years to amortize, may become
outdated or turn out to be a poor match for the company over time.
Although the above-mentioned arguments favor the view that BPO increases the
flexibility of organizations, management needs to be careful with the implementation of it as
A further issue is that in many cases there is little that differentiates the BPO providers
other than size. They often provide similar services, have similar geographic footprints, leverage
similar technology stacks, and have similar Quality Improvement approaches.
Threats
Risks and threats of outsourcing must therefore be managed, to achieve any benefits. In
order to manage outsourcing in a structured way, maximizing positive outcome, minimizing risks
and avoiding any threats, a Business continuity management (BCM) model is setup. BCM
consists of a set of steps, to successfully identify, manage and control the business processes that
are, or can be outsourced.
COMPANY PROFILE
Dell is a multinational information technology corporation based in Round Rock,
Texas, United States, that develops, sells and supports computers and related products and
services. Bearing the name of its founder, Michael Dell, the company is one of the largest
technological corporations in the world, employing more than 96,000 people worldwide. Dell is
listed at #38 on the Fortune 500 (2010). Fortune also lists Dell as the #5 most admired company
in its industry.
On May 3, 2010, Fortune Magazine listed Dell as the 38th largest company in the States
and the 5th largest company in Texas by total revenue. It is the 2nd largest non-oil company in
Texas (behind AT&T) and the largest company in the Austin area.
History of Dell
Dell traces its origins to 1984, when Michael Dell created PCs Limited while a student at
the University of Texas at Austin. The dorm-room headquartered company sold IBM PC-
compatible computers built from stock components. Michael Dell started trading in the belief
that by selling personal computer systems directly to customers, PCs Limited could better
understand customers' needs and provide the most effective computing solutions to meet those
needs. Michael Dell dropped out of school in order to focus full-time on his fledgling business,
after getting about $300,000 in expansion-capital from his family.
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In 1985, the company produced the first computer of its own design — the "Turbo PC",
sold for US$795. PCs Limited advertised its systems in national computer magazines for sale
directly to consumers and custom assembled each ordered unit according to a selection of
options. The company grossed more than $73 million in its first year of trading.
The company changed its name to "Dell Computer Corporation" in 1988 and began
expanding globally—first in Ireland. In June 1988, Dell's market capitalization grew by $30
million to $80 million from its June 22initial public offering of 3.5 million shares at $8.50 a
share. In 1992, Fortune magazine included Dell Computer Corporation in its list of the
world's 500 largest companies, making Michael Dell the youngest CEO of a Fortune 500
company ever.
In 1996, Dell began selling computers via its web site, and in 2002, Dell expanded its
product line to include televisions, handhelds, digital audio players, and printers. Dell's
first acquisition occurred in 1999 with the purchase of Converge Net Technologies. In 2003, the
company was rebranded as simply "Dell Inc." to recognize the company's expansion beyond
computers. From 2004 to 2007, Michael Dell stepped aside as CEO, while long-time Dell
employee Kevin Rollins took the helm. During that time, Dell acquired Alien ware, which
introduced several new items to Dell products, including AMD microprocessors. To prevent
cross-market products, Dell continues to run Alien ware as a separate entity but still a wholly-
owned subsidiary.
On August 16, 2010, Dell announced its intent to acquire the data storage
company 3PAR. On September 2, 2010 Hewlett-Packard offered $33 a share, which Dell
declined to match.
Dell Facilities
Dell's headquarters are located in Round Rock, Texas. As of 2010 the company employs
about 16,000 people in the facility, which has 2,100,000 square feet (195,000 m2) of space. As of
1999 almost half of the general fund of the City of Round Rock originates from sales taxes
generated from the Dell headquarters.
By 1996 Dell was moving its headquarters to Round Rock. As of January 1996 3,500
people still worked at the then-current Dell headquarters. One building of the Round Rock
headquarters, Round Rock 3, had space for 6,400 employees and was scheduled to be completed
in November 1996. In 1998 Dell announced that it was going to add two buildings to its Round
Rock complex, adding 1,600,000 square feet (149,000 m2) of office space to the complex.
In 2000 Dell announced that it would lease 80,000 square feet (7,400 m2) of space in
the Las Cimas office complex in unincorporated Travis County, Texas, between Austin and West
Lake Hills, to house the company's executive offices and corporate headquarters. 100 senior
executives were scheduled to work in the building by the end of 2000. In January 2001 the
company leased the space in Las Cimas 2, located along Loop 360. Las Cimas 2 housed Dell's
executives, the investment operations, and some corporate functions. Dell also had an option for
138,000 square feet (12,800 m2) of space in Las Cimas 3. After a slowdown in business required
reducing employees and production capacity, Dell decided to sublease its offices in two buildings
in the Las Cimas office complex. In 2002 Dell announced that it planned to sublease its space to
another tenant; the company planned to move its headquarters back to Round Rock once a tenant
was secured. By 2003 Dell moved its headquarters back to Round Rock. It leased all of Las
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Cimas I and II, with a total of 312,000 square feet (29,000 m2), for about a seven year period
after 2003. By that year roughly 100,000 square feet (9,300 m2) of that space was absorbed by
new subtenants.
In 2008 Dell switched the power sources of the Round Rock headquarters to more
environmentally friendly ones, with 60% of the total power coming from TXU Energy wind
farms and 40% coming from the Austin Community Landfill gas-to-energy plant operated
by Waste Management, Inc.
Dell facilities in the United States are located in Austin, Texas; Nashville,
Tennessee; Oklahoma City, Oklahoma; Winston-Salem, North Carolina; and Miami, Florida.
Facilities located abroad include Penang, Malaysia; Xiamen, China; Bangalore,
India; Hyderabad, India; Chandigarh, India; Delhi, India; Bracknell, UK; Manila,
Philippines Chennai, India; Hortolandia, Brazil; Łódź, Poland and Limerick, Ireland.
Products
Scope and brands
The corporation markets specific brand names to different market segments.
Its Business/Corporate class represent brands where the company advertises emphasizes
long life-cycles, reliability, and serviceability. Such brands include:
Dell's Home Office/Consumer class emphasizes value, performance, and expandability. These
brands include:
Dell's Peripherals class includes USB keydrives, LCD televisions, and printers; Dell
monitors includes LCD TVs, plasma TVs and projectorsfor HDTV and monitors. Dell
UltraSharp is further a high-end brand of monitors.
Dell service and support brands include Dell On Call (extended domestic support
services), Dell Support Center (extended support services abroad), Dell Business Support (a
commercial service-contract that provides an industry-certified technician with a lower call-
volume than in normal queues), Dell Everdream Desktop Management ("Software as a Service"
remote-desktop management), and Your Tech Team (a support-queue available to home users
who purchased their systems either through Dell's website or through Dell phone-centers).
Manufacturing
From its early beginnings, Dell operated as a pioneer in the "configure to order" approach
to manufacturing — delivering individual PCs configured to customer specifications. In contrast,
most PC manufacturers in those times delivered large orders to intermediaries on a quarterly
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basis. To minimize the delay between purchase and delivery, Dell has a general policy of
manufacturing its products close to its customers. This also allows for implementing a just-in-
time (JIT) manufacturing approach, which minimizes inventory costs. Low inventory is another
signature of the Dell business model — a critical consideration in an industry where components
depreciate very rapidly.
Assembly of desktop computers for the North American market formerly took place at
Dell plants in Austin, Texas (original location) andLebanon, Tennessee (opened in 1999). The
plant in Winston-Salem, North Carolina (opened in 2005) is scheduled to cease operations in
January 2011, while the Miami, Florida facility of its Alienware subsidiary remains in operation.
Dell servers come from Austin, Texas.
Dell's desktop plant in Austin, Texas was shut down in 2008. It closed its desktop
manufacturing in Lebanon in early 2009. The last major U.S. plant in North Carolina is
scheduled to close in January 2011. It is expected that most of the work carried out in North
Carolina will be transferred to contract manufacturers in Asia and Mexico, though Dell said
some of the work will move to its own factories overseas.
Dell assembles computers for the EMEA market at Limerick in the Republic of Ireland,
and employs about 4,500 people in that country. Dell began manufacturing in Limerick in 1991
and went on to become Ireland's largest exporter of goods and its second-largest company and
foreign investor. On January 8, 2009, Dell announced that it would move all Dell manufacturing
in Limerick to Dell's new plant in the Polish city of Łódź by January 2010. European
Union officials said they would investigate a €52.7million aid package the Polish government
used to attract Dell away from Ireland. European Manufacturing Facility 1 (EMF1, opened in
1990) and EMF3 form part of the Raheen Industrial Estate near Limerick. EMF2 (previously
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a Wang facility, later occupied by Flextronics, situated in Castletroy) closed in 2002 and Dell
Inc. has consolidated production into EMF3 (EMF1 now contains only offices). Dell's Alienware
subsidiary also manufactures PCs in an Athlone, Ireland plant. Construction of EMF4 in Łódź,
Poland has started: Dell started production there in autumn 2007.
Dell opened plants in Penang, Malaysia in 1995 and in Xiamen, China in 1999. These
facilities serve the Asian market and assemble 95% of Dell notebooks. Dell Inc. has invested an
estimated $60 million in a new manufacturing unit in Chennai, India, to support the sales of its
products in the Indian subcontinent. Indian-made products will bear the "Made in India" mark. In
2007 the Chennai facility had the target of producing 400,000 desktop PCs, and plans envisaged
it starting to produce notebook PCs and other products in the second half of 2007Dell moved
desktop and PowerEdge server manufacturing for the South American market from the Eldorado
do Sul plant opened in 1999, to a new plant in Hortolandia, Brazil in 2007.
Green initiatives
Dell became the first company in the information technology industry to establish a
product-recycling goal (in 2004) and completed the implementation of its global consumer
recycling-program in 2006. On February 6, 2007, the National Recycling Coalition awarded Dell
its "Recycling Works" award for efforts to promote producer responsibility. On July 19, 2007,
Dell announced that it had exceeded targets in working to achieve a multi-year goal of
recovering 275 million pounds of computer equipment by 2009. The company reported the
recovery of 78 million pounds (nearly 40,000 tons) of IT equipment from customers in 2006, a
93-percent increase over 2005; and 12.4% of the equipment Dell sold seven years earlier.
On June 5, 2007 Dell set a goal of becoming the greenest technology company on Earth for
the long term. The company launched a zero-carbon initiative that includes:
Technical support
Dell routes technical support queries according to component-type and to the level of
support purchased. Dell Inc. brands its service agreements at five levels for their business
customers: (1) Basic support provides business-hours telephone support and next business-day
on-site support/ Return-to-Base or Collect and Return Services (based on contracts purchased at
point of sale); (2) Silver support provides 24×7 telephone support and 4-hour on-site support
after telephone-based troubleshooting; (3) Gold support provides additional benefits over and
above Silver support; (4) Platinum Plus support provides additional benefits to Gold Support;
and (5) two-hour on-site support, offered in select cities.
Dell's Consumer division offers 24x7 phone based and online troubleshooting rather than
only during business hours in certain markets such as the United States and Canada. On February
4, 2008 Dell launched a revamped services-and-support scheme for businesses named
"ProSupport", offering customers more options to tailor services to fit their needs. Rather than
take a one-size-fits-all approach, Dell has put together packages of options for each category of
its customers: small and medium-sized businesses, large businesses, government, education, and
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health-care- and life-sciences. Dell now also offers separate support options for IT staff and for
non-IT professionals. For the latter, the company offers "how-to" support for software
applications, such as Microsoft Office. Dell also offers collaborative support with many third-
party software vendors. For Dell-Certified IT departments, Dell offers "fast-track dispatch" of
parts and labor and access to a crisis-center to handle major outages, virus-attacks, or problems
caused by natural disasters. Dell has several unique aspects of its support program. For example,
computers use "Service Tags" unique alpha-numeric identifiers and '11 digit Express Service
codes' (punched into the IVR prompts) to get customers to the appropriate support queue. Agents
also utilize Dell Connect, (a Citrix/Go To Assist based remote-access tool that gives technicians
within Dell Support the ability to access customer computers from a remote location for
troubleshooting purposes).
Commercial aspects
Organization
A board of directors of nine people runs the company. Michael Dell, the founder of the
company, serves on the board. Other board members include Don Carty, William Gray, Judy
Lewent, Klaus Luft, Alex Mandl, Michael A. Miles, and Sam Nunn. Shareholders elect the nine
board members at meetings, and those board members who do not get a majority of votes must
submit a resignation to the board, which will subsequently choose whether or not to accept the
resignation. The board of directors usually sets up five committees having oversight over specific
matters. These committees include the Audit Committee, which handles accounting issues,
including auditing and reporting; the Compensation Committee, which approves compensation
for the CEO and other employees of the company; the Finance Committee, which
handles financial matters such as proposed mergers and acquisitions; the Governance and
Nominating Committee, which handles various corporate matters (including nomination of the
board); and the Antitrust Compliance Committee, which attempts to prevent company practices
from violating antitrust laws.
The corporate structure and management of Dell extends beyond the board of directors.
The Dell Global Executive Management Committee sets strategic directions. Dell has regional
senior vice-presidents for countries other than the United States, including David Marmonti
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forEMEA and Stephen J. Felice for Asia/Japan. As of 2007, other officers included Martin
Garvin (senior vice president for worldwide procurement) and Susan E. Sheskey (vice president
and Chief Information Officer).
Marketing
Dell advertisements have appeared in several types of media including television,
the Internet, magazines, catalogs and newspapers. Some of Dell Inc's marketing strategies
include lowering prices at all times of the year, offering free bonus products (such as Dell
printers), and offering free shipping in order to encourage more sales and to stave off
competitors. In 2006, Dell cut its prices in an effort to maintain its 19.2% market share.
However, this also cut profit-margins by more than half, from 8.7 to 4.3 percent. To maintain its
low prices, Dell continues to accept most purchases of its products via the Internet and through
the telephone network, and to move its customer-care division to India andEl Salvador.
A popular United States television and print ad campaign in the early 2000s featured the
actor Ben Curtis playing the part of "Steven", a lightly mischievous blond-haired youth who
came to the assistance of bereft computer purchasers. Each television advertisement usually
ended with Steven's catch-phrase: "Dude, you're getting' a Dell!"
A Dell advertising campaign for the XPS line of gaming computers featured in print in
the September 2006 issue of Wired. It used as a tagline the common term
in Internet and gamer slang: "FTW", meaning "For The Win". However, Dell Inc. soon dropped
the campaign.
In the first-person shooter game F.E.A.R. Extraction Point, several computers visible on
desks within the game have recognizable Dell XPS model characteristics, sometimes even
including the Dell logo on the monitors.
In 2007, Dell switched advertising agencies in the US from BBDO to Mother. In July
2007, Dell released new advertising created by Mother to support the Inspiron and XPS lines.
The ads featured music from the Flaming Lips and Devo who re-formed especially to record the
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song in the ad "Work it Out". Also in 2007, Dell began using the slogan "Yours is here" to say
that it customizes computers to fit customers' requirements.
Dell kiosks
Starting in 2002, Dell opened kiosk locations in shopping malls across the United States
in order to give personal service to customers who preferred this method of shopping to using the
Internet or the telephone-system. Despite the added expense, prices at the kiosks match or beat
prices available through other retail channels. Starting in 2005, Dell expanded kiosk locations to
include shopping malls across Australia, Canada, Singapore and Hong Kong.
On January 30, 2008, Dell shut down all 140 kiosks in the U.S. due to expansion into
retail stores such as Wal-Mart, Best Buy, and Staples all over the world.
Dell Inc. planned to use the Dallas store to house about three times as many products as it
displayed in more than 160 kiosks in malls and airports. In addition to showcasing products, the
stores also support on-site warranties and non-warranty service ("Dell on Call"). Services offered
include repairing computer video-cards and removing spyware from hard drives.
On February 14, 2008, Dell closed the Service Center in its Dallas North Park store and
lay off all the technical staff there.
The overall success of this program — as a new development for Dell Inc. — remains unclear.
Since some shoppers in certain markets show reluctance to purchase technological products
through the phone or the Internet, Dell has looked into opening retail operations in some
countries in Central Europe and Russia. In April 2007, Dell opened a retail store in Budapest. In
October of the same year, Dell opened a retail store in Moscow.
In the UK, HMV's flagship Trocadero store has sold Dell XPS PCs since December 2007.
From January 2008 the UK stores of DSGi have sold Dell products (in particular,
through Currys and PC World stores). As of 2008, the large supermarket-chain Tesco has sold
Dell laptops and desktops in outlets throughout the UK.
Competition
Dell's major competitors include Apple, Hewlett-Packard (HP), Acer, Toshiba, Gateway, Sony,
Asus, Lenovo, IBM, Samsung, and Sun Microsystems. Dell and its subsidiary, Alienware,
compete in the enthusiast market against AVADirect, Falcon Northwest, VoodooPC (a subsidiary
of HP), and other manufacturers. In the second quarter of 2006 Dell had between 18% and 19%
share of the worldwide personal computer market, compared to HP with roughly 15%.
IDC reported that Dell lost more server market share than any of the top four competitors in that
arena. IDC's Q4 2006 estimates show Dell's share of the server market at 8.1%, down from 9.5%
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in the previous year. This represents a 8.8% loss year-over-year, primarily to competitors
EMC and IBM.
On December 9, 2008, Dell and EMC announced the multi-year extension, through 2013,
of their strategic partnership that began in 2001. In addition, Dell plans to expand its product
line-up by adding the EMC Celerra NX4 storage system to the portfolio of Dell/EMC family of
networked storage systems, as well as partnering on a new line of de-duplication products as part
of its TierDisk family of data-storage devices.
Environmental record
Dell committed to reduce greenhouse gas emissions from its global activities by 40% by
2015, with 2007 as the baseline year. It is listed in Greenpeace’s Guide to Greener Electronics
that scores leading electronics manufacturers according to their policies on toxic chemicals,
recycling and climate change. In May 2010, Dell ranked 10th out of 18 listed electronics makers.
Dell was the first company to publicly state a timeline for the elimination of toxic
polyvinyl chloride (PVC) and brominated flame retardants (BFRs), which it planned to phase out
by the end of 2009. It revised this commitment and now aims to remove these toxics by 2011 but
only in its computing products. In March 2010, Greenpeace activists protested at Dell offices in
Bangalore, Amsterdam and Copenhagen calling for Dell’s founder and CEO Michael Dell to
‘drop the toxics’ and claiming that Dell’s aspiration to be ‘the greenest technology company on
the planet’ was ‘hypocritical’. Dell has launched its first products completely free of PVC and
BFRs with the G-Series monitors (G2210 and G2410) in 2009.
In the 1990s, Dell switched from using primarily ATX motherboards and PSU to using
boards and power-supplies with mechanically identical but differently wired connectors. This
meant customer wishing to upgrade their hardware would have to replace parts with scarce Dell-
compatible parts instead of commonly available parts. However, company practice in this respect
changed in 2003. In 2005, complaints about Dell more than doubled to 1,533, after earnings
grew 52% that year.
In 2006, Dell acknowledged that it had problems with customer service. Issues included
call-transfers of more than 45% of calls and long wait-times. Dell's blog detailed the response:
"We're spending more than a $100 million — and a lot of blood, sweat and tears of talented
people — to fix this." Later in the year, the company increased its spending on customer service
to $150 million.
On August 17, 2007, Dell Inc. announced that after an internal investigation into its
accounting practices it would restate and reduce earnings from 2003 through to the first quarter
of 2007 by a total amount of between $50 million and $150 million, or 2 cents to 7 cents per
share. The investigation, begun in November 2006, resulted from concerns raised by the U.S.
Securities and Exchange Commission over some documents and information that Dell Inc. had
submitted. It was alleged that Dell had not disclosed large exclusivity payments received
from Intel for agreeing not to buy processors from a rival manufacturer. In 2010 Dell finally paid
$100 million to settle the SEC's charges of fraud. Michael Dell and other executives also paid
penalties and suffered other sanctions, without admitting or denying the charges.
In May 2008, the New York Supreme Court ruled that Dell and Dell Financial Services
"engaged in fraud, false advertising, deceptive business practices, and abusive debt collection
practices". The relevant lawsuit aimed primarily to highlight and seek restitution for a lack of
technical support given to customers by Dell. The court plans to hold further proceedings to
determine how much money Dell has to pay out to customers and how much profit Dell made
unlawfully, in New York.
In July 2009, Dell apologized after the firm offered its Latitude E4300 notebook at
NT$18,558 (US$580), 70% lower than usual price of NT$60,900 (US$1900) in its Taiwan
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website. The firm withdrew orders and offered a voucher of up to NT$20,000 (US$625) a
customer in compensation. The consumer rights authorities in Taiwan fined Dell NT$1 million
(US$31250) for customer rights infringements. Many consumers sued the firm for the unfair
compensation. A court in southern Taiwan ordered the firm to deliver 18 laptops and 76 flat-
panel monitors to 31 consumers for NT$490,000 (US$15,120), less than a third of the normal
price. The court said the event could hardly be regarded as mistakes, as the prestigious firm said
the company mispriced its products twice in Taiwanese website within 3 weeks.
Executive Summary
Together, Dell and Perot Systems deliver complementary capabilities with one shared focus—
make IT and business solutions work harder for you. We are redefining services by making them
easier to access, simpler to manage, and, most importantly, by making our solutions more aligned
to your success. As a result, you can count on Dell for hardware, software, and services that
reduce IT complexity and make your organization run more efficiently.
No matter the size of your organization, we have the scale and a complete portfolio of services to
meet your needs, so you can focus on strategic initiatives. Dell Services’ comprehensive portfolio
provides:
• Services and technology expertise to mitigate risk, enable efficiency, and add
long-term value
• Flexible models that put the customers in control of what they buy and how they
consume our services
• A localized customer experience, globally
Client Products
Enterprise Products
Our enterprise server, storage, and networking products are built on industry standards
with proven reliability and scalability to maximize interoperability, optimize IT investments, and
offer a choice in performance, functionality, and form factors.
Offering
6. Keeps your end users moving with notebook tracking and data protection services
Managed Services
End User
Our messaging services meet the changing needs of our customers, while
addressing their data management and security needs. In addition, our workspace
management services help ensure our customers’ workstation technology is current, secure,
and available around the clock and around the globe—all at a predictable monthly cost.
Through our global network of high-tier data center facilities and Enterprise
Command Centers (ECCs), we reduce support costs, increase systems reliability and
availability, and ensure successful operations of your production environment through our
data center services.
Our data center services are monitored and delivered 24x7 by an expert support
team to identify growth needs and potential resource bottlenecks. We deliver cloud remote
monitoring and reporting with lower deployment costs and minimal infrastructure
management costs.
Network
Information Assurance
Hosting
Our hosting services provide scalable capacity to extend the life and value of
systems and applications, reduce service and support costs, and take advantage of greater
computing power without a capital outlay.
Software-as-a-Service/Virtualization
Our enterprise management SaaS services help manages your e-mail, crisis
notification, and enterprise infrastructure. Our enterprise management SaaS offering
leverages enterprise-class data centers to increase the availability, reliability, and security of
an organization’s IT infrastructure and messaging capability. In addition, we implement
industry best practice e-mail and infrastructure monitoring/management, while minimizing
costs.
Our business continuity SaaS services help support business requirements for e-
mail and IT availability, and crisis management. Through our business continuity SaaS
services, customers can quickly switch to a standby e-mail system if the primary fails. If
something happens to physical facilities, servers, software, network connectivity, or even
IT staff, customers can activate EMS to ensure availability of e-mail service and
preservation of data.
Virtual Desktops
Our virtual desktop services increase operating efficiency, user performance, and
cost control. Our pay-per-use fee structure reduces capital costs for desktop equipment as
well as the staffing needed to maintain and upgrade individual user devices. We also
manage the underlying technology infrastructure for greater standardization and integration
efficiencies. In addition, our consistent use of best practices along with innovative upgrades
in technology, tools, processes, and security make organizations more effective at
delivering business outcomes.
Our virtual servers and storage services minimize the risk and complexity of
integrating cloud and virtualization into your overall IT strategy by taking advantage of our
enterprise-class solutions. Using our virtual server capabilities, customers can achieve
maximum user flexibility and cost control. We offer a pay-per-use fee structure that frees
organizations from capital expenditures, including maintaining and upgrading hardware.
Application Services
Custom Development
Using state-of-the-art tools for development efforts, our employees are experts in
technologies from mainframe platforms to web- and PC-based applications, and can
develop both host and distributed applications.
Modernization
Business intelligence outputs can directly affect the bottom line of any organization
by uncovering new markets, customer trends cost overrun areas, and supplier behavior for
improved operations.
Our business intelligence services can extract insights from our customers’ large
business transaction data and provide reports and performance dashboards to management,
using our library of solution accelerators, multiple technology exposure, and proven 4D
methodology. We provide in-depth exposure to domains, including healthcare, government,
and financial services, to ensure business intelligence solutions help improve Key
Performance Indicators (KPIs).
Our enterprise and industry applications allow our customers to select the
appropriate packaged application, deploy it, and modify it to suit changing business needs.
Using our comprehensive domain knowledge, exposure to competing packaged
applications, and robust consulting methodology, customers can leverage specialized
support for industry applications for hospitals, physician groups, insurance, and financial
services.
• Business or IT transformation
• Application implementation
• Enhancements
• Full applications management outsourcing
Testing
Our application testing services focus on potential problems and their severity, and
establish testing as a competitive-edge practice backed by domain knowledge. We help
reduce test costs by deploying global resources, using our library of domain test scenarios,
automation test frameworks, and early identification of defects during development, root
cause analysis of defects, metrics, and coverage analysis. We have vast expertise in
Applications Management
Our applications management services help reduce support costs and improve
performance by enhancing existing solutions and removing defects with a proven ITIL-
based support methodology and experience with diverse technologies.
Our revenue cycle solutions blend people, processes, and technology to deliver
sustainable results whether the need is a short-term customized project or long-term
revenue cycle outsourcing. With vast experience implementing a range of business
solutions designed to increase healthcare accounts receivables, we have been the revenue
cycle solutions vendor of choice for hospitals nationally and internationally.
Physician Services
Our trusted services enable private practice groups, academic faculty practices, and
hospital-affiliated physician groups to achieve predictable, sustainable, and cost-benefiting
results. We combine our physician practice expertise with revenue cycle management,
clinical transformation, and IT expertise to improve the overall patient and practice
experience.
Our analysis team couples experience and knowledge with world-class analysis
software to provide our clients cost-saving solutions. Our new approach to product
engineering support involves true collaboration with our customers, allowing them to pay
for the specific skill sets needed.
Our procedures provide our customers with both qualitative and quantitative measurements
of performance and quality, enabling them to focus on core business-building capabilities.
Government Office
IT Consulting
Enterprise Architecture
Service Management
Our expert recommendations can help lead to significant efficiency and cost
improvements and provide cost baselines and other proposed improvements based on data
from thousands of engagements. We provide services to help design and implement
proposed improvements across many practice areas, including virtualization, storage,
Microsoft products, and more.
Our data center infrastructure consulting services combine best practices and
insights into technology trends to help make key data center investment decisions. We use
technology and industry best practices to increase resource utilization while improving
facilities efficiency.
Our in-house staff of qualified data center planning and facilities management
engineers engage in proactive planning for the future data center requirements, not only
from a floor space aspect, but also in regards to calculating power and cooling requirements
per the addition of new systems and the decommissioning of retired infrastructure.
We can reduce redundancies and optimize operational and support team costs
through portfolio rationalization of applications. We also meet stringent security
requirements and ensure no performance degradation while developing a new technology
strategy and roadmap. Our services consolidate and simplify your application portfolio and
service suppliers to realize annual IT cost savings.
End-User Computing
Our end-user computing consulting services provide IT with industry best practice
methodology and solutions to manage and control the client environment, while
maximizing the end-user experience. We can optimize hardware performance and reduce
service desk support incidents.
• Migration
• Deployment
• Energy management
• Image management
Virtualization/Cloud Integration
Our virtualization and cloud integration consulting services analyze server and
application workload requirements to find more effective and efficient infrastructure
architecture, leveraging our experts and our structured, automated approach. We can
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consolidate servers, which results in lower hardware capital and maintenance costs as well
as reductions in data center space, and power and cooling requirements.
Data Management
Our data management consulting services quickly diagnose problems and gain
proven solution recommendations from our storage architects using our sophisticated
automated discovery tools (MRI). We consolidate underused islands of storage to lower
storage cost per gigabyte, while reclaiming storage, segmenting and classifying data, and
improving backup/restore reliability and performance.
Our business continuity and disaster recovery consulting services rapidly design
and implement an effective and affordable disaster recovery program, while balancing
investments in people, process, and technology.
Our experts will help design and implement a cost effective disaster recovery plan that is
necessary to pass audits and comply with government regulations. We classify each
application’s criticality, plan, and implement the disaster recovery systems accordingly. We
also verify your ability to recover by setting and maintaining appropriate test schedules.
Strategy Consulting
Process Reengineering
Our process reengineering consulting services can redesign your business to drive
improved operational and financial performance. Our customers can achieve cost savings,
control cost increases, and manage demand for quality, cost, service, and access.
Our supply chain management solutions are designed to improve supply chains through
development and implementation of lean manufacturing techniques and technology-
enabled processes.
We help create collaborative, tightly linked supply chains through the implementation of
various organizational, process and technology solutions, including:
Clinical Transformation
By implementing clinical best practices using well-defined metrics for program success,
our clinical transformation services will effectively engage your organization and improve
overall clinical adoption.
Medical billing and coding is a fast-growing, stable career. Coders are investigators.
They hunt down the patient's most important diagnostic, which is based on the lab
procedures, signs and symptoms.
Coding involves a lot of rules, there are worldwide guidelines to follow for medical
coding—it seems like it would be more straightforward. But there are so many guidelines
to follow to pick the correct code; it's not as black and white as it appears.
Billing Process
The medical billing process is an interaction between a health care provider and the
insurance company (payer). The entirety of this interaction is known as the billing cycle.
This can take anywhere from several days to several months to complete, and require
several iterations before a resolution is reached. The interaction begins with the office visit:
a doctor or their staff will typically create or update the patient's medical record. This
record contains a summary of treatment and demographic information including, but not
limited to, the patient's name, address, social security number, home telephone number,
work telephone number and their insurance policy identity number. If the patient is a minor
then guarantor information of a parent or an adult related to the patient will be appended.
Upon the first visit, the provider will usually give the patient one or more diagnoses in
order to better coordinate and streamline their care. In the absence of a definitive diagnosis,
the reason for the visit will be cited for the purpose of claims filing. The patient record
contains highly personal information, including the nature of the illness, examination
details, medication lists, diagnoses, and suggested treatment.
Once the procedure and diagnosis codes are determined, the medical biller will
transmit the claim to the insurance company (payer). This is usually done electronically by
formatting the claim as an ANSI 837 file and using Electronic Data Interchange to submit
the claim file to the payer directly or via a clearinghouse. Historically, claims were
submitted using a paper form; in the case of professional (non-hospital) services and for
most payers the CMS-1500 form or HICF (Health Insurance Claim Form)was and is still
commonly used. The CMS-1500 form is so named for its originator, the Centers for
Medicare and Medicaid Services. At time of writing, about 30% of medical claims get sent
to payers using paper forms which are either manually entered or entered using automated
recognition or OCR software.
The insurance company (payer) processes the claims usually by medical claims
examiners or medical claims adjusters. For higher dollar amount claims, the insurance
company has medical directors review the claims and evaluate their validity for payment
using rubrics (procedure) for patient eligibility, provider credentials, and medical necessity.
Approved claims are reimbursed for a certain percentage of the billed services. These rates
are pre-negotiated between the health care provider and the insurance company. Failed
claims are rejected and notice is sent to provider. Most commonly, rejected claims are
returned to providers in the form of Explanation of Benefits (EOB) or Remittance Advice.
Upon receiving the rejection message the provider must decipher the message,
reconcile it with the original claim, make required corrections and resubmit the claim. This
exchange of claims and rejections may be repeated multiple times until a claim is paid in
full, or the provider relents and accepts an incomplete reimbursement.
A practice that has interactions with the patient must now under HIPAA send most
billing claims for services via electronic means. Prior to actually performing service and
billing a patient, the care provider may use software to check the eligibility of the patient
for the intended services with the patient's insurance company. This process uses the same
standards and technologies as an electronic claims transmission with small changes to the
transmission format, this format is known specifically as X12-270 Health Care Eligibility
& Benefit Inquiry transaction [1]. A response to an eligibility request is returned by the
payer through a direct electronic connection or more commonly their website. This is
called an X12-271 "Health Care Eligibility & Benefit Response" transaction. Most practice
management/EMR software will automate this transmission, hiding the process from the
user.
This first transaction for a claim for services is known technically as X12-837 or
ANSI-837. This contains a large amount of data regarding the provider interaction as well
as reference information about the practice and the patient. Following that submission, the
payer will respond with an X12-997, simply acknowledging that the claim's submission
was received and that it was accepted for further processing. When the claim(s) are actually
adjudicated by the payer, the payer will ultimately respond with a X12-835 transaction,
which shows the line-items of the claim that will be paid or denied; if paid, the amount; and
if denied, the reason.
Payment
In order to be clear on the payment of a medical billing claim, the health care
provider or medical biller must have complete knowledge of different insurance plans that
insurance companies are offering, and the laws and regulations that preside over them.
Large insurance companies can have up to 15 different plans contracted with one provider.
Providers typically charge more for services than what has been negotiated by the
doctor and the insurance company, so the expected payment from the insurance company
for services is reduced. The amount that is paid by the insurance is known as an allowable
amount. For example, although a psychiatrist may charge $80.00 for a medication
management session, the insurance may only allow $50.00, and so a $30.00 reduction
(known as a "provider write off" or "contractual adjustment") would be assessed. After
payment has been made a provider will typically receive an Explanation of Benefits (EOB)
or Electronic Remittance Advice (ERA) along with the payment from the insurance
company that outlines these transactions.
The insurance payment is further reduced if the patient has a co pay, deductible, or
a coinsurance. If the patient in the previous example had a $5.00 co pay, the doctor would
be paid $45.00 by the insurance. The doctor is then responsible for collecting the out-of-
pocket expense from the patient. If the patient had a $500.00 deductible, the contracted
amount of $50.00 would not be paid by the insurance company. Instead, this amount would
be the patient's responsibility to pay, and subsequent charges would also be the patient's
responsibility, until his expenses totaled $500.00. At that point, the deductible is met, and
the insurance would issue payment for future services.
A coinsurance is a percentage of the allowed amount that the patient must pay. It is
most often applied to surgical and/or diagnostic procedures. Using the above example, a
coinsurance of 20% would have the patient owing $10.00 and the insurance company
owing $40.00.
In Medicare the physician can either be 'Participating' - in which they will receive
80% of the allowable Medicare fee and 20% will be sent to the patient - or can be
'Nonparticipating' in which the physician will receive 80% of the fee, and may bill patients
for 15% or more on the scheduled amount.
For example, the regular fee for a particular service is $100.00, while Medicare's
fee structure is $70.00. The physician will therefore receive $56.00 and the patient will pay
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$14.00. Similarly Medicaid has its own set of policies which are slightly more complex
than Medicare.
Steps have been taken in recent years to make the billing process clearer for
patients. The Healthcare Financial Management Association (HFMA) unveiled a "Patient-
Friendly Billing" project to help healthcare providers create more informative and simpler
bills for patients. Additionally, as the Consumer-Driven Health movement gains
momentum, payers and providers are exploring new ways to integrate patients into billing
process in a clearer, more straightforward manner.
HISTORY
For several decades, medical billing was done almost entirely on paper. However,
with the advent of medical practice management software also known as health information
systems it has become possible to efficiently manage large amounts of claims.
Many software companies have arisen to provide medical billing software to this
particularly lucrative segment of the market. Several companies also offer full portal
solutions through their own web-interfaces, which negates the cost of individually licensed
software packages.
HIPAA
The medical billing field has been challenged in recent years due to the introduction
of the Health Insurance Portability and Accountability Act(HIPAA).
Since 2005, medical providers have been urged to electronically send their claims in
compliance with HIPAA to receive their payment.
Title I of this Act protects health insurance of workers and their families when they
change or lose a job. Title II calls for the electronic transmission of major financial and
administrative dealings, including billing, electronic claims processing, as well as
reimbursement advice.
Medical billing service providers and insurance companies were not the only ones
affected by HIPAA regulations - many patients found that their insurance companies and
health care providers required additional waivers and paperwork related to HIPAA.
In many cases, particularly as a practice grows beyond its initial capacity to cope
with its own paperwork, providers farm out their medical billing process to a third party
known as a Medical Billing Service. These entities promise to reduce the burden of
paperwork for medical staff and recoup lost efficiencies caused by workload saturation,
paving the way for further practice growth. A recent trend towards outsourcing in countries
such as India has shown a potential to reduce costs, but it is not clear if this trend will
continue or decline as a result of customer concerns over quality control.
Sampling Methods
Type of Sampling
1. Probability
2. Non - Probability
Probability
• Random sampling
• Systematic sampling
• Stratified sampling
• Cluster Sampling
• Multi – Stage Sampling
1. Random sampling
Random sampling is the purest form of probability sampling. Each member
of the population has an equal and known chance of being selected. When there are
very large populations, it is often difficult or impossible to identify every member
of the population, so the pool of available subjects becomes biased.
2. Systematic sampling
random sampling method. Its only advantage over the random sampling technique
is simplicity. Systematic sampling is frequently used to select a specified number of
records from a computer file.
4. Cluster Sampling
Cluster Sampling is the fourth statistical sampling method is called cluster
sampling, also called block sampling. In cluster sampling, the population that is
being sampled is divided into groups called clusters. Instead of these subgroups
being homogeneous based on a selected criterion as in stratified sampling, a cluster
is as heterogeneous as possible to matching the population. A random sample is
then taken from within one or more selected clusters. For example, if an
organization has 30 small projects currently under development, an auditor looking
for compliance to the coding standard might use cluster sampling to randomly
select 4 of those projects as representatives for the audit and then randomly sample
code modules for auditing from just those 4 projects. Cluster sampling can tell us a
lot about that particular cluster, but unless the clusters are selected randomly and a
lot of clusters are sampled, generalizations cannot always be made about the entire
population. For example, random sampling from all the source code modules
written during the previous week, or all the modules in a particular subsystem, or all
modules written in a particular language may cause biases to enter the sample that
would not allow statistically valid generalization.
For example residents within Islington (London) may have been chosen for a
survey through the following process:
Throughout the UK the south east may have been selected at random,
As demonstrated four stages were gone through before the final selection of
respondents were selected from the electoral register.
Non - Probability
Convenience sampling
Judgment sampling
Quota sampling
Dimensional Sampling
Snowball sampling
1. Convenience sampling
2. Judgment sampling
3. Quota sampling
4. Dimensional Sampling
5. Snowball sampling
Sample Size
Sample Area
Research instrument
Questionnaire:
It is considered as heart of the present study. It is the out line of what information is
required for gathering market recruitment information. So it requires at most skill and care.
Man power requirements are to be estimated far beyond the actual requirements.
Recruitment and selection plays a vital role in attracting people with multi-dimensional
skills and experiences that suit the present and future organization strategies. Large
corporations on every where are realizing the advantage of choosing an effective employee.
Under this requirement, this study has been undertaken to understand the requirement and
selection at DELL Services.
This study has been confined to the employees of DELL Services. This study
mainly focuses on the sources and procedures of Recruitment and Selection at DELL
Services.
The scope of HRM is indeed vast. All major activities in the working life of worker
from time to time of his or her entry in to an organization until he or her leaves come under
preview of HRM .Specifically, the activities includes are HR planning, job analysis, and
job design, recruitment An a selection, orientation and placement, training and
development, performance appraisal, and job evaluation, employee and executive
remuneration, motivation and communication, welfare, safety and health, industrial
relations and like.
Primary
• To study the Recruitment and selection Process in DELL Services
Secondary
• To know the various ways of Hiring the candidates and placing them in right
category.
• To identify the various practices of recruitment prevailing.
Primary data:
Secondary data:
1. The study was restricted to the employees of DELL Services. The result cannot be
generalized to employees of other organization.
2. The information from all the employees could not be able to collect since they are
busy.
3. The respondents were hesitant to give the necessary information because of the fear
of the management.
Interpretation:
From the data it was clear that 68% of employees were working for 0-5
years, 29% of employees were working for 5-10 years and 3% of employees
were working for above 10 years.
Interpretation:
From the data it was clear that 76% of employees were working in Non-Voice
department and 24% of employees were working in Voice department.
Interpretation:
From the data it was clear that 40% of respondents knew about the
recruitment through newspapers, 17% of respondents knew about the recruitment
through Job Fairs, 15% of respondents knew about the recruitment through Job
Portals, 10% of respondents knew about the recruitment through Consultancy, 10%
of respondents knew about the recruitment through Campus Selections and 8% of
respondents knew about the recruitment through Associate Reference.
Interpretation:
From the data it was clear that 38% of respondents chosen the job for Company
Reputation, 26% of respondents chosen the job for Opportunity for Advancement, 19% of
respondents chosen the job for Good working conditions, 17% of respondents chosen the
job for job security.
Interpretation:
From the data it was clear that 43% of employees were recurred as a permanent
employee in this organization, 23% of employees were recurred as a temporary employee
in this organization, 20% of employees were recurred as a contract employee in this
organization and 14% of employees were recurred as a part time employee in this
organization.
Interpretation:
From the data it was clear that 100% of respondents have undergone all the type of
recruitment process (Typing Test, Aptitude Test, HR Round and Operation Round).
Interpretation:
From the data it was clear that 43% of respondents felt Good about recruitment
process in DELL Services, 27% of respondents felt Excellent about recruitment process in
DELL Services, 15% of respondents felt Average about recruitment process in DELL
Services, 8% of respondents felt Bad about recruitment process in DELL Services and 7%
of respondents felt Very Bad about recruitment process in DELL Services.
Interpretation:
From the data it was clear that 60% of respondents said that Typing Test was easy,
25% of respondents said that Typing Test was Tough and 15% of respondents said that
Typing Test was Very simple.
Interpretation:
From the data it was clear that 37% of respondents were Satisfied the time gap
between hiring and placement, 30% of respondents were Neither Satisfied nor Dissatisfied
the time gap between hiring and placement, 16% of respondents were Dissatisfied the time
gap between hiring and placement, 13% of respondents were Highly Satisfied the time gap
between hiring and placement and 4% of respondents were Highly Dissatisfied the time
gap between hiring and placement.
Interpretation:
From the data it was clear that 50% of respondents were Very True for the adequate
and reliable information about the company and job the company has given to them, 40%
of respondents were Partly True for the adequate and reliable information about the
company and job the company has given to them and 10% of respondents were Not True
for the adequate and reliable information about the company and job the company has
given to them.
Interpretation:
From the data it was clear that 30% of respondent’s promotions were given on
Merit basis, 25% of respondents promotions were given on Experience basis, 25% of
respondents promotions were given on Seniority basis, 15% of respondents promotions
were given on Performance basis and 5% of respondents promotions were given on the
entire basis.
Interpretation:
From the data it was clear that 49% of respondent’s said that the Interview Process
was Average, 43% of respondent’s said that the Interview Process was Good and 8% of
respondent’s said that the Interview Process was Poor.
Interpretation:
From the data it was clear that 35% of respondent’s interview was done by One
week, 30% of respondent’s interview was done by One day, 20% of respondent’s interview
was done by Three days and 15% of respondent’s interview was done more than a week.
Interpretation:
From the data it was clear that 74% of respondent said that emotional questions is
important in interview selection process of this organization and 26% of respondent said
that emotional questions is not important in interview selection process of this organization
Interpretation:
From the data it was clear that 34% of respondent said that there is a need for the
changes in recruitment & selection procedures in this Company, 26% of respondent said
that there is no need for any changes in recruitment & selection procedures in this
Company, 24% of respondent said that there can be a change for some extent in recruitment
& selection procedures in this Company and 16% of respondent said that its not at all
important for the changes in recruitment & selection procedures in this Company.
68% of the employees have work experience of less than 5 yrs whereas 29% have
experience of more than 5 – 10 years.
76% of the employees work in the non – voice department whereas 24% of then
work in the voice department.
40% of the employees came to know about the recruitment in DELL Services
through newspapers and 15% through Job Portals, Associate Reference,
Consultancy and Newspaper.
38% of the employees were attracted towards the company reputation and 28%
regarded job security.
43% of the employees fall under permanent job and 14% are part time.
It is analyzed than 100% of the employees underwent typing test, aptitude test, HR
round and operational round in the process of their interview.
43% of the employees feel good about recruitment process and 7% feel it to be very
bad.
60% of the employees respond that the typing test was held easy whereas 15% feel
it to be very simple.
37% of employees are satisfied with the existing time gap between hiring and
placement whereas 4% are highly dissatisfied.
50% of employees feel it to be very true about the adequate information provided
by the company and 10% does not agree to it.
30% of the employees consider merit as the main basis for promotion and 5%
consider merit, experience, seniority, performance.
All the employees underwent all the tests.
35% of the employees respond the duration of interview process to be one week
whereas 15% responded it to be more than a week.
74% of the employees consider emotional questions to be important and 26% do
not consider it to be important.
34% of the employees agree that there is change in the recruitment and selection
procedures whereas 16% does not consider it to be important.
The organization should give information about the company to the short listed
candidates.
The study on recruitment and selection process of DELL Services has proved that if
follows a sequential order. Majority of the employees are satisfied with the recruitment and
selection process.
The organization should reduce the time taken to conduct the interview and provide
information to the candidates regarding the recruitment and selection process.
QUESTIONNAIRES
1. For how many years are you working in this organization?
i. 0-5 years
ii. 5-10 years
iii. Above 10 years
i. Associate Reference
ii. Consultancy
iii. Job Portals
iv. Newspaper
i. Permanent
ii. Temporary
iii. Part time
iv. Contract.
i. Excellent
ii. Good
iii. Average
iv. Bad
v. Very bad
9. What is your opinion regarding time gap between hiring and placement?
i. Highly Satisfied
ii. Satisfied
iii. Neither satisfied nor dissatisfied
iv. Dissatisfied
v. Highly dissatisfied
10. Whether the company has given you the adequate and reliable information
about the company and the job.
i. Very true
ii. Partly true
iii. Not true
13. How long did it take to complete your Interview Process Successfully?
i. One day
ii. Three days
iii. One week
iv. More than a week
14. Do you feel emotional questions are important in interview selection process of
this organization.
i. Yes
ii. No
15. Do you think that there is a need for any change in recruitment & selection
procedures in this Company?
i. Yes
ii. No
iii. Some extent
iv. Not At All Important
Website:
1. www.humanresourceabout.com
2. www.recruitment&selection.com
3. www.questionpro.com
4. www.wikipedia.org
Books: