On Analysis of Recruitment & Selection Process at HCL With reference to Noida
Submitted for the partial fulfillment towards the award of the degree in Masters of Business Administration of Mahamaya Technical University
Department of MBA
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DECLARATION
I, Ritu Gupta student MBA III rd semester of NIET, Greater Noida declare that this project on Analysis of Recruitment & Selecion process for HCL Company is being submitted in the partial fulfillment of the requirement of MBA and this project has not been submitted in any other university or institute.
GUPTA) DATE: PLACE: GR.NOIDA
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ACKNOWLEDGEMENT
The entire project from the very idea of it to the reality would not have been possible without the guidance and support of many people. I would therefore like to take the golden opportunity of expressing my sincere gratitude to all those people who helped me throughout the project. I express my sincere gratitude to the management of HCL, from where I have been able to collect data for my project. I am thankful to all my faculties of my Institute to encourage me and provide timely guidance and help in completion of the project. I am especially thankful to my guide Ms.Shruti Mishra for her support and guidance. Finally I would extend my profound gratitude to all the employees of HCL for patiently filling up the questionnaire without which the study was not possible.
DATE:
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CONTENT
Chapter No.
Description
Page No.
Chapter- 1
Chapter- 2
Chapter- 3
Chapter- 4
Chapter- 5
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Executive Summary This research is based on recruitment and selection procedure in HCL.The study is carried on in a proper planned and systematic manner. This research includes: Familiarization with the organization. Observation and collection of data. Analysis of data. Conclusion and suggestion based on analysis. This research analysis the actual recruitment process in HCL and evaluate this process confirmed the objective of the industry is this process accepted or not. Recruitment represents the first contact that a company makes with the personnel having potential to be employed. From the point of view of potential candidates, recruitment is the process through which they come to know about the company and the nature of jobs that are being offered.
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Chapter :-1 Introduction
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INTRODUCTION Recruitment is the process concern with the identification of sources from where the personal can be employed and motivating them to offer themselves for employment. Whether and Davis have defined this as follows: Recruitment is the process of finding and attracting capable applicants for employment. The process begins when new recruits are sought and ends when there applications are submitted. The result is a pool of applicants from which new employees are selected. Lord has defined recruitment in terms of its competitive nature. He views that: Recruitment is a form of competition. Just as corporations compete to develop, manufacture, and market the best product or service, so they must also compete to identify, attract and hire the most qualified people. Recruitment is a business, and it is a big business. WHY HUMAN RESOURCE MANAGEMENT IS IMPORTANT An organization is nothing without human resources. What is IBM without its employees? Same is in a hotel industry. It is totally based on managing people or manpower in an efficient way. When we think about the million of organization that provide us with goods and services, any one of more of which will employ us during our lifetime, often do we explicitly consider that 8
these organization depend on people to make them operate? It is only under unusual circumstances, such as when clerks go on strike at our local supermarket, or the teachers walkout from our schools, colleges or employees working in an hotel industry, that we recognize the important role play in making organization work.
There are some question which are listed down in order to know how important HRM is are : How did these people come to be employees in an organization? How were they found and selected? Why do they come to work on a regular basis? How do they know what to do on their jobs? How does management know if the employees are performing adequately? If they are not, what can be done about it? Will todays employees be prepared for the work the organization will require of them in ten, twenty - thirty years? Management: It is the process of efficiently getting activities completed with and through other people. The management process includes the planning, organizing, leading, and controlling activities that take place to accomplish objectives. With reference to our definition, Goals are the activities completed. Limited resources are implied in efficiently. People are those in through other people. 9
First goals are necessary because activities must be directed toward some end. There is a considerable truth in the observation that if you dont know where you are going, any road will take you there. The established goals may not so explicit, but where there are no goals, there may be a need for a new managers or no need for managers at all. Second, there are limited sources. Economic resources are scarce therefore, the manager is responsible for their allocation. This requires not only that managers be effective in achieving goals that are established but they be efficient in relating output to input. They must seek a given output with a lower input that is now being used or, for a given input, strive for a greater output. It again depends how much the manager knows about his capacity and how he designs his planning structure and how efficiently he gives a better picture and utilizes it accordingly. Managers, then are concerned with the attainment of goals, which makes them effective, and with the best allocation of scarce resources, which makes them efficient. The need for two or more people is third and last requisite for management. It is with and through people that managers perform their work. Managers are those who work with and through other people, allocating scarce resources, to achieve goals.
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HRM MODEL
Training and Development - Focus is on identifying and assessing
Organization Development Focus : assessing healthy inter relationship as bell as intra N v Employee Assistance Focus : Providing personal problem solving, canceling to individual employees
- Quality of work life - Productivity - Readiness to change
+ Organization/Job Design. Focus : defining how tasks, authority and system will be organized 7 R Compensation and Benefit Focus : Assessing compensation and benefits
q Human Resource Planning : Determining the origins major HRM needs strategies and policies 11
7 Personnel research and information systems Focus : assuring a personnel information base Selection and Staffing : Focus : Matching people and their career needs and capabilities with join and career path
From the above introduction about Human Resource management, it has been pretty clear that how important is human resource and its allocation. Again it depends on human resource planning.
HUMAN RESOURCE PLANNING It is one of the most important and essential programme of Human Resource Management. Human Resource Planning is the process by which an organization ensures that it has right number of people, right kind of people, at the right places, at the right time, capable of the right places, at the right time, capable of effectively and efficiently completing those tasks which will help the organization to achieve its overall objectives as well as goals. Human Resource Planning then, translation the organizations objectives and plans into the number of workers needed to meet those objectives. Without clear-cut planning, estimation of organizations human resource need is reduced to more guesswork. Of all the MS in management (the management of materials, machines, methods, money, motive power), the most important is M for men or manpower. Manpower is a primary resource without which other resources like money, machines materials cannot be put to use. Even in the age of computer and Robert it requires human resources to execute it and plan further improvement. It is the most valuable asset of an organization. 12
If people of poor caliber are hired, nothing much can be accomplished and Grasims law will work the bad people will drive out the good car cause them to deteriorate. Organization of men for managing a purpose is age-old, even though, this science of management is yet in a developing stage especially in developing countries.
Effective utilization of manpower resources is the key note of manpower management. Ever since the factory system, production managers have devoted a great deal of time and effort to the physical organizations of the industry. During the nineteenth Century the average employer in their efforts to reduce costs centralized their attention upon management of men and machines. Man management is basically concerned with having right type of people available as and when required and improving the performance of the existing people to make them more productive on their job. Recruitment forms the first stage in the process which continues with selection and ceases with the placement of the candidates. It is the next step in the procurement function, the first being the manpower planning. Recruitment makes it possible to acquire the number and types of people necessary to ensure the continued operation of the organisation. Recruiting is the discovering of potential applicants for actual or anticipated organisational vacancies. In other words, it is a linking activity bringing together those with jobs and those seeking jobs. Its purpose is to pave the way for the selection procedures by producing, ideally the smallest number of candidates who appear to be capable either of performing the required tasks of the job from the outset, or of developing the ability to do so within a period of time acceptable to the employing organization. The smallest number of potentially suitable candidates can in theory, of 13
course, be any number. The main point that needs to be made about the recruitment task is that the employing organization should not waste time and money examining the credentials of people whose qualification do not match the requirements of the job. A primary task of the recruitment phase is to help would be applicants to decide whether they are likely to be suitable to fill the job vacancy. This is clearly in the interest of both the employing organization and the applicant. NEED AND SCOPE: Need For the Study: To know effectiveness of the companys present recruitment strategy. Manpower is the main resource of the company, therefore the company need to know the critical areas where they can implement improvement so as to get the right candidates at the right time at the right time at right place. To identify the best source through which the company can recruit good candidate at less cost. Scope of the Study: The study backed by a structured questionnaire, which was the main source of qualitative data. Initially the study required relying more on secondary data. The study also covers the tools to improve the recruitment strategy. The aims of the recruitment and selection process are, Recruit high quality staff with the right skills on the appropriate contracts to deliver the key objectives of the position and organization; Ensure that equality of opportunity is considered as an integral part of recruitment practice, thus encouraging diversity Ensure that effectives recruitment is effective as a key public relations exercise for all involved; Ensure that recruitment is fair, efficient and cost-effective. 14
PURPOSE OF THE STUDY : The objective of the study is to analyses the actual recruitment process in HCL, and to evaluate how far this process confirms to the purposes underlying the operational aspects of the industry. How far the process is accepted by it? And what are the options of the family members of the organization? The study on recruitment highlights the need of recruitment in HCL Technologies Limited.
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OBJECTIVES \The main objective of the study is to first gain some practical knowledge about the functioning of the MNCs and other organization which is very necessary to fully understand the primary functions and hence it fulfills the purpose of summer internship under M.B.A course. The other objectives are: The purpose and importance of recruitment and selection process The role of the management in recruitment and selection process The study of the process of recruitment and sources of recruitment To explore the methodology and types of recruitment processes that takes place in an organization The study of the recruitment policy of the company and the functions and relevance of selection process, for the employees as well as the organization.
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LIMITATIONS:
Every scientific study has certain limitations and the present study is no more exception. These are: - 1. Interviewing of the executive of top echelon position who are making recruitment is busy in the Organisation State of affair. So it is not possible to contact all of those every busy executives. 2. The terminology used in the subject is highly technical in nature and creates a lot of ambiguity. 3. Confidentiality of the management is the strongest hindrance to the collection of data and scientific analysis of the study. 4. All the secondary data are required were not available. 5. Respondents were found hesitant in revealing opinion about supervisors and management. In spite of all these limitations, the investigator has made an humble attempt to present an analytical picture of the study with some suggestion for the long run implementation.
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CHAPTER-II A PROFILE OF ORGANISATION
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HISTORY OF HCL In the early 70s, a group of young, enthusiastic and ambitious technocrats embarked upon a venture that would make their vision of IT revolution in India a reality. Shiv Nadar and five of his colleagues got together and in 1975, set up a new company called Micro comp. To start with they decided to capitalize on their marketing skills. Micro comp marketed calculators and within a few months of starting operations, company was outselling its major competitors. In 1976, Micro comp approached UPSEC (Uttar Pradesh State Electronics Corporation) for help to set up a computer company. Impressed by their technical and marketing competence, UPSEC agreed to set up a joint venture. On the 11th of August 1976 Hindustan computers Limited was incorporated as a join venture between the entrepreneurs and UPSEC and with an initial equity of Rs. 1.83 lakhs.
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ABOUT HCL COMPANY HCL Technologies Limited (HCL) has now become Indias one of the big technology integration company. Over the years, HCL Technologies has positioned its business operations to fulfill its vision statement: Together we create enterprises of tomorrow. The overarching theme for the companys swift progression into the software and services arena, in India and globally, is evolving. Signifying a state of constant growth, the evolve theme is visible in the many ways that has undergone a metamorphosis into becoming a complete IT solutions company. The menu of HCL Technologies global services broadly covers IT consulting and professional services in the area of vertical applications, technology integration, ERP implementation and software development. This also includes a complete portfolio of systems and network services for development. This also includes a complete portfolio of systems and network services for Facilities Management, Helpdesks, Systems Supports and network and Internet Implementation. HCL Info systems global customers include Samsung, Government of Singapore, and AMAL insurance Jurong Port in Singapore and 20
Malaysians BSN commercial bank, SIA, DBS bank, May bank life assurance charted semiconductors, Asia Matsushita and Shell Malaysia. Some of its global customer in the government sector is Inland Revenue authority of Singapore, civil aviation authority of Singapore, Singapore power, ministry of education, health and national development, telecom authority of Singapore and Penang state govt. HCL Info systems chosen platform of total technology integration lends itself to some very significant alliances with the global leaders. Among its partner are HP for high end AISCE/UNIX services and workstation and HP Open view network management solution; Intel for PC and PC server building blocks; Microsoft, Novell and SCO AG solutions; Red hat ;Linux; Samsung; Pivotal for CRM solution and ORACLE Sybase and Informix for RDBMS platform.
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INDIAN HARDWARE INDUSTRY AND HCL TECHNOLOGIES LTD. The Indian IT and Electronics market in 2004-05 was worth US$ 32.9 billion of which US$ 19.7 billion consisted of software. Electronics and IT hardware production stood at US$ 13.2 billion. Some 4,100 units are engaged in electronics production manufacturing goods as diverse as TV tubes, test and measuring instruments, medical electronics equipment, analytical and special application instruments, process control equipment, power electronics equipment, office equipment, components etc. Market researcher IDC estimates that the market-value estimate over next 3 years for hardware products is Rs.79, 000 crores 22
The Indian electronics and hardware industry has been lagging behind the impressive performance of the software sector. Most of the hardware requirements of the burgeoning software and telecom sectors are met by imports which are about 25%. The Ministry of Information Technology, Govt. of India has estimated that the total requirement of hardware and components by 2008 would be in range of US$ 160 billion and the investment required in the manufacturing facilities would be US$ 16 billion. NASSCOM, the leading IT industry body estimates that to achieve a software export target of US$ 87 billion in 2008, the hardware requirement would be US$ 50 billion. By far the most comprehensive study was carried out by Ernst & Young in association with MAIT, the hardware industry body in 2002. It estimates that given the right incentives, India's electronic hardware industry has the potential to reach US$ 62 billion by 2010, twelve times its existing size with the domestic market accounting for US$ 37 billion and exports of US$ 25 billion. The major export opportunities would be in the area of innovative new products, contract manufacturing and design services. This shows that there are large opportunities for Indian companies to increase their strength and grave these opportunities for future growth. HCL Technologies Ltd is one of those companies which are working to increase their network and making innovative new products. HCL Technologies Ltd. is currently engaged in selling manufactured hardware (like PCs, servers, monitors and peripherals) and traded hardware (like notebooks, peripherals) to institutional clients as well as retail channel partners. Besides, it offers hardware support services to existing clients through annual maintenance contracts, network consulting and facilities management. 23
In 2002-03, HCLs total hardware turnover was Rs. 10.97 billion, higher by around 24% over the corresponding figure for 2001-02. Of this, manufactured hardware constituted 60%, traded hardware 32% and hardware support services 9%. The companys reported operating margins in 2002-03 (including six months of OA, telecommunication and software businesses) increased to 6.7% from 5.9% in 2001-02, primarily because of better margins in hardware. While average material costs declined in 2002-03, the company was able to retain a part of the margins in its product realizations. Better margins in hardware resulted in the return on capital employed (ROCE) from hardware increasing from 11.9% in 2001-02 to 25.6% in 2002-03. In the domestic home PC organized sector, HCL Technologies is the market leader. Other players include Zenith Computers, IBM, Sun Microsystems, Wipro, Hewlett Packard. Assembled personal computers have a large presence in the domestic home PC market, accounting for a chunk of the total sales.
The overall market for desktop personal computers registered a 28.2 percent growth during calendar year 2004 as compared to the previous year. What is significant is that branded PCs continue to make impressive gains against the gray market. According to IDC, the share of branded PCs grew from 36.2 percent in 2003 to 49.2 percent in 2004, registering an impressive growth rate of 74.3 percent. Interestingly, the gray market remained flat, registering a growth of 2.2 percent, while the total desktop PC market registered a growth of 28.2 percent. According to IDC, the recent re-surfacing of finance-based purchase options had an accelerating effect on the consumer desktop market, which is already witnessing a consistent drop in end-user prices for both the branded and unbranded PC segments. Among the vendors, HCL Technologies 24
emerged as the market leader with a share of 13.7 percent. The company registered a 91.4 percent growth during 2004 as compared to the previous year. HP followed HCL with a market share of 11.9 percent. HP too grew at a blistering pace registering a growth rate of 73.03 percent. IBM is in the third place with a market share of 6.2 percent. IDC is not the only research firm confirming the signs of robust growth. Gartner, in a recent report, states that the Indian desktop market grew by 31.5 percent in 2004. Says Vinod Nair, Analyst, Computing Systems, Gartner India, Peaking business confidence based on strong economic growth catalyzed PC purchases in both consumer and corporate segments throughout 2004. While every research firm has given different figures, one thing is commonthe PC market is booming at double-digit growth rates. MAIT (Manufacturers Association of Information Technology) estimates that the desktop PC market grossed 17.1 lakhs units in the first half of fiscal 2004-05, registering a growth of 37 percent over the same period of the previous fiscal. With the Indian economy booming, MAIT estimates that PC sales will touch the 40 lakhs mark in fiscal 2004-05. The buoyancy in PC sales can be attributed to increased consumption by traditional industry verticals such as telecom, banking, financial services and insurance, BPO, manufacturing and government. Consumption also increased in non-traditional sectors such as education, retail outlets and self-employed professionals. In future, HCLs hardware sales to the institutional segment are likely to remain stable, with sustained hardware spending by all the verticals, especially the banking and financial services sector. Besides, in retail hardware sales, a continued reduction of price points, facilitated in part 25
by the recent reduction in excise duties on PCs, is likely to reduce the price advantage of the small assemblers, and augur well for branded PC manufacturers like HCL. In the medium term, HCLs margins, despite its sales tax advantages, may be affected by the likely removal of duty protection on manufactured PCs from the year 2005.
Current Market Share of various IT players in overall Desktop Market in 2004 Vendors Units (2003) Market share(percent) Units (2004) Percentage of Units Shipped Year-on-Year Growth (percent) HCL 232,169 9.2 4,43,535 13.7 91.04 HP 221,964 8.8 3,84,058 11.9 73.03 IBM 132,582 5.3 1,98,973 6.2 50.8
Total desktop market Units (2003) Percentage of Units Shipped Units (2004) Percentage of Units Shipped Year-on-Year Growth(percent) Branded 911,403 36.2 1,589,016 49.2 74.3 Grey 1,608,752 63.8 1,643,694 50.8 2.2 26
Total 2,520,155 100 3,232,710 100 28.2
MARKET SHARE OF BRANDED PC DURING CALENDER YEAR OF 2004 HCL
34% HP 30% IBM
15% WIPRO 8% ZENITH
13%
HCL HP IBM
WIPRO
ZENITH
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From the above figure we can clearly see that HCL emerged as the clear winner among the branded PC companies with 34% or 13.7% of market share followed by 30% or 11.9 % of market share by HP. IBM was third in the race with only 15% or 6.2% of market share of branded PC computers. Along with becoming the market leader in branded PC HCL Technologies also became 1.3 Billion Dollar company in April 2006.
SUCCESS STORY Vision, bravado and grit have seen HCL evolve from a dream of eight youngsters in 1977 to the country's top IT group today, with revenues closing in on Rs 5,000 crore 1975: Six young men get together over a cup of coffee and snacks. The conversation veers from cars and travel to jobs, career and the future. Since they all work together, its only natural that they talk shop. They also explore the possibility of starting a company of their own-one rooted in values, directed at creating a market for its products in a segment hitherto unexplored, hardware. Micro comp is born. The initial investment-all their savings, making up seed capital of Rs 1.87 lakh. 28
"Six of us, all with DCM, wanted to start a computer company. But we didn't have enough funds. We decided, therefore, to settle for a close second-we set up a calculator company, Micro comp. We were, of course, working our way upward, towards creating a computer company, till someone informed us that we would need a license for the same. The Uttar Pradesh government was offering an open license of this nature around that time. We acquired it and created Hindustan Computers Ltd (HCL). The name itself had a reason behind it-it denoted largeness, it was Indian, it was patriotic, it was perfect Two more of our friends joined us later to set up Hindustan Computers in August 1976-that took the number of people who started HCL up to eight," remembers Ajai Chowdhry, one of that original group of eight and now President and Managing Director of HCL Info systems.
"We dreamt of working in an industry that would revolutionize businesses, an industry that gave everyone an equal chance to succeed We also knew we wanted to dominate it. Through these years, we have retained our number one position and sustained our growth. The one business strategy that has dominated and been at the core of our business is constant adaptation and renovation. We have also developed new paradigms for new opportunities," adds Shiv Nadar, Chairman of HCL Technologies. A teething problem faced by the company-getting imports through. The regulations and laws of the time did not allow the import of technology. Components and sub-assemblies, however, could be imported. "The latter was a very expensive affair. This led to a sharp focus on in-house design. The first product we came out with was targeted at the engineering research market- Micro 2200, based on a 4-bit microprocessor from Rockwell," says Chowdhry. With Micro 29
2200, orders poured in for HCL. "We had no products, and we couldn't simulate them, so we had to create a bread-board model. We actually had people coming to us and looking at these models and placing orders-they believed in us!" The deadlines were tough, but they had to be met, or the orders would fall through. The first deadline was March 31, and everyone worked night and day for weeks. The final delivery date- March 27. "I remember a particular instance. After setting up of HCL (Chennai), we were flooded with orders, especially from IIT Chennai. I personally went to the airport in my old Fiat and delivered the units personally to the IIT professors," recalls Chowdhry. When MNCs weren't popular If we tabulate the history of Indian business, 1977 will go down as a "funny" year. It was in 1977 that the Janata Party government came to power. Among their first actions on the commerce front-asking IBM and Coke, among other multinational companies, to either increase the component of Indian holdings or move out. They moved out. "That was a stroke of luck for us," says Chowdhry. "We created an eight-bit computer, our first usage of Intel architecture. We went and sold that to lots and lots of companies, among them a cement company that used four floppies to manage the payroll of all its 3,000 companies." Three years later, in 1980, HCL became a Rs 2-crore company. "We decided to expand overseas and entered the Singapore market, armed with some expertise in hardware and targeting the SME market. However, once there, we realized that the demand was more for solutions, not so much for boxes. We set up a software factory in Chennai-we would go to customers and tell them we would do everything-make the box, write the software, train the staff, maintain the equipment, the works And we had to do $1 million in orders out of Singapore between August 1 and 30
December 31, 1980. That was the make or break point-less than that and we wouldn't have the cash flow to run the company." In the nick of time is how things worked out-HCL Singapore managed that figure on the morning of December 31. HCL Group: How the Dream has evolved 1975 Shiv Nadar and five colleagues start Micro comp 1976 HCL promoted with startup capital of Rs 1.83 lacs (US$ 3826.85) 1980 HCL's first transnational venture, Far East Computers, established in Singapore 1981 Set up NIIT, India's first private sector IT education institution. 1985 HCL America established with headquarters at Sunnyvale, California 1991 HCL and HP, USA agree to enter into a partnership to form HCL HP 1994 HCL Tech formed as separate software company 1996 Joint venture with James Martin & Co. and Perot Systems Corporation 1997 HCL Tech incorporated in UK, Germany, France, Sweden, Belgium, Italy and Switzerland 1998 Operations started in Japan, Hong Kong, Australia, and New Zealand 1999 Initial Public Offering made by HCL Tech Formation of Global Board of Directors and Advisory Board. Audit, Compensation and Related Party Transaction Committees set up Implementation of 'Glocal' Management Concept 2000 Large deals with Bankers Trust, KLA and GTECH 31
2001 Acquisition of Deutsche Software Acquires Ireland-based BPO firm, Apollo Contact Centre HCL Enterprise Solutions formed as a joint venture with Computech Corporation, Inc, USA The Singapore experience taught the founders a lesson-designing and manufacturing products in India and selling them overseas was akin to walking a tough and profit-less path. "This was when we decided to walk the software integration road. We created the integration database, much before Intel... but we killed it! We were so nave, we killed a product line like that," says Chowdhry. In 1984, the new computer policy was coined and standards were put in place. This saw a major move by banks toward the Unix platform. "A few companies approached us and we decided to launch the personal computer in India. We had three weeks to do this. Our people flew all over the place, including Taiwan and Bangkok, and brought back PCs. We took them apart, studied them and got into manufacturing mode. We launched our PC in three weeks. And that, incidentally, how Busybee was born," says Chowdhry. A turning point came in 1989, just when the PC and software integration business was chugging along smoothly. McKenzie & Company approached HCL and offered to carry out a study for HCL, entitled HCL's Entry Into America. "We told them we were too small and couldn't afford them. They did a project for us anyway, and refused to charge us any money," says Chowdhry. When the findings of the study were presented to the top brass at HCL, the company moved into the US market-HCL America was born. "We marked the entry into the US market with hardware. We had no environmental clearances and fell back. We could not deliver as promised. 32
Our entry strategy was right, but the product wasn't. We were in big trouble-our overheads were high, we had no revenues" Unix to the rescue It was the US reversal that made HCL look at newer avenues, and a path that would lead to more revenues. "That is how our software strategy was born, and we capitalized on our Unix strengths. Around this time, we were in talks with Hewlett-Packard for a joint venture. We were also working on Apollo, and HP bought out the product. About the same time as out foray into the US, we tied up with HP. At that time, HP was smaller than the behemoth it is today, but it still boasted global expertise. And that was something we wanted," says Chowdhry. However, HP asked HCL to close down its RISC and Unix R&D setup. Unwilling to down shutters on a going and profitable effort, HCL created a new opportunity out of the situation-HCL Consulting was set up and the said works were moved in to this new company. "We had our people working at the HP research centers, taking in all of the technologies. This was a great learning period and had a mushroom effect subsequently, when HCL Consulting turned into HCL Technologies," says Chowdhry. And along the line, HCL Technologies was also set up. Chowdhry remains upbeat on the company he runs on a day-to-day basis, HCL Info systems-despite the predicted flat growth in the current year. HCL Infosys focuses on the domestic products and software businesses and its main areas of operations are: -Products & System Integration: PCs, Phones, EPABXs, SI.
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HCLS OFFERINGS IN INFO-PROCESSING PRODUCTS
HCL Advantage HCL Technologies draws its strength from 27 years of experience in handling the ever changing IT scenario , strong customer relationships , ability to provide the cutting edge technology at best-value-for-money and on top of it , an excellent service & support infrastructure. Today HCL is country's premier information enabling company . It offers one-stop-shop convenience to its diverse customers having an equally diverse set of requirements, be it a large multi-location enterprise, or a small/medium enterprise, or a small office or a home, HCLI has a product range, sales and support capability to service the needs of the customers. The last 27 years apart from knowledge and experience have also given continuity in relationship with the customers, thereby increasing the customer confidence in HCL.
Our strengths can be summarized as: - Ability to understand customer's business and offer right technology - Long standing relationship with customers - Pan India support & service infrastructure - Best-vale-for-money offerings Technology Leadership 34
HCL Technologies is known to be the harbinger of technology in the country. Right from our inception we have attempted to pioneer the technology introductions in the country either through our R&D or through partnerships with the world technology leaders. Using own R&D HCL has: - Created own UNIX & RDBMS capability (in 80s). - developed firewalls for enterprise & personal system security. - launched our own range of enterprise storage products. - launched our own range of networking products. HCLI strive to understand the technology from the view of supporting it post installation as well. This is one of the key ingredients that go into strategic advantage. HCL Technologies has to its claim several technology pioneering initiatives. Some of them are: - Country's first Desktop PC - Busy Bee in 1985 - Country's first branded home PC - Beanstalk in 1995 - Country's first Pentium 4 based PC at sub 40k price point - Country's first Media Center PC MANUFACTURING 35
HCL's computer hardware manufacturing plant is strategically located in the Union territory of Pondicherry. Situated 165 kms south of Chennai on the coast of the Bay of Bengal with proximity to Chennai Air/Sea port, special policies for Industries of local Govt, , Inland Container Depots, attractive power and labor rates - makes Pondicherry an ideal place for business. Started in 1996 - with only Unit 1 - it now has 3 Units (Unit 1, 2, & 3) with a built up area of 3, 23,000 sq. ft., PMO has a monthly capacity to make 50,000 desktops and 2000 servers. The infrastructure is state of the art, one of the best & largest in India.
All 3 factories are ISO 9001:2000 and ISO 14001 certified. PMO was also Awarded MAIT Level 2 - by European Foundation for Quality Management in the year 2001 . HCL was also awarded ELCINA's (Electronic Component Industries Association) Quality Award for the year 2002- 2003 PMO also has Product Engg Group (PEG) and R&D teams constantly engaged in developing new products and solutions.
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Driven by a strong Manufacturing Objective "WE SHALL DELIVER DEFECT-FREE PRODUCTS, SERVICES AND SOLUTIONS TO MEET THE REQUIREMENTS OF OUR EXTERNAL AND INTERNAL CUSTOMERS, THE FIRST TIME, EVERY TIME." All processes in the manufacturing are aligned to this guiding objective . A strong emphasis of "Quality by Process" is ensured across all processes. The products manufactured here undergo stringent tests that ensures their ruggedness & durability , which may be deployed anywhere in India and may have to face severe conditions like - heat , humidity , rough transportation & handling .Our products undergo drop tests , hot & cold temperature chamber , client-site simulation tests , reliability tests et al . Computers are shipped to locations all over India with an extensive network of professional logistic support partners. There is also a Customer satisfaction cell, in plant, to take care of problems reported from field. Customers, sales & marketing, support personnel, dealers & distributors are encouraged to visit the plant to see, for them, what all goes in making a quality computer system. Philosophy of Quality "We deliver defect-free products, services and solutions to meet the requirements of our external and internal customers, the first time, and every time." To exist as a market leader in a globally competitive marketplace, organizations need to adopt and implement a continuous improvement-based quality policy. 37
One of the key elements to HCL's success is its never-ending pursuit of superior quality in all its endeavors. HCL TECHNOLOGIES believes in the Total Quality Management philosophy as a means for continuous improvement, total employee participation in quality improvement and customer satisfaction. Its concept of quality addresses people, processes and products. Over the last 20 years,HCL has adapted to newer and better Quality standards that helped us effectively tie Quality with Business Goals, leading to customer and employee satisfaction. QUALITY AT HCL TECHNOLOGIES LTD. The history of structured quality implementation in HCL Technologies began in the late 1980s with the focus on improving quality of its products by using basis QC tools and Failure Reporting and Corrective Active Systems (FRACAS). And also employed concurrent engineering practices including design reviews, and rigorous reliability tests to uncover latent design defects. In the early 90s, the focus was not merely on the quality of products but also the process quality systems. We were certified for ISO 9002 by BVQI in 1994 and re-certified in 1997 to ISO 9001- 2000 (for Design & Manufacture of Personal Computers, Business Servers, Work Stations and their Associated Sub-Assemblies). In early 1995, a major quality initiative was launched across the company based on Philip B. Crosby's methodology of QIPM (Quality Improvement Process Management). This model was selected to because it considered the need and commitment by an organization to improve but more importantly, the individual's need towards better quality in his personal life. 38
Under our Quality Education System program, we train our employees on the basic concepts and tools of quality. A number of improvement projects have been undertaken by employees, whereby process deficiencies and bottlenecks are identified, and Corrective Action Projects (CAPs) are undertaken. This reduces defect rates and improves cycle times in various processes, including personal quality. HCL has received MAIT's 'Level II recognition for Business Excellence' for initiatives in the Information Technology Industry, adding another commendation to progress. MAIT's Level II recognition is based on the 'European Foundation for Quality Management' (EFQM), for gaining quality leadership and business competitiveness. Our certifications / awards in 2003 include ISO 9001-2000 certification by BVQI for Info structure Services (for Consultancy, Implementation, Support, Audit & Management Services for Information Technology Solutions in the domain of Networking, Security, Facilities Management and System Integration) and award of First Prize by ELCINA (Electronic Component Industries Association) for Quality, 2002-03. The ELCINA award criteria considers two aspects. (1) Enablers (Leadership & Management commitment, Resource Management, Product Realization, Measurement Analysis & Improvement) and Results (Product Quality, Customer / Stake holder satisfaction , Business results). The tryst for continuous quality improvement is never-ending in HCL. HCL always strive to maintain high quality standards, which help us fulfill mission to provide world-class information technology solutions and services, to enable customers to serve their customers better. CUSTOMER SATISFACTION 39
One of the cornerstones of strategy has been a very strong customer focus. 27 years of experience in servicing a varied range of customer requirements has given domain knowledge of customer's business. As a result of this it is able to provide exact solution to customers' needs. During these years they have been able to cement their relationship with customers and gaining their trust and confidence as well. 5Today for desktop PC, they have more than 8 lakh units installed units. HCL enjoy considerable market share in segments like Government, Banking & Finance and Education & research. SUPPORT SERVICES HCL Technologies Service Support infrastructure is one of the widest in the country. No matter where you are, there's an HCL Service Centre nearby. Products are backed by an extensive direct support infrastructure spread across 170 locations nationwide which offer 24 x7 supports offering for critical sites. Channel strength is a balanced mix of retail outlets, resellers & distributors. It was strong focus on distribution network that led HCL in devoting few brands exclusively for channel. They are - Beanstalk, Busy Bee, Net manager (servers), and recently launched EzeeBee. Today distribution network helps it take a varied product range to customers in every nook & corner of the country .The product range includes Desktop PCs, Servers, and Laptops & Pocket PCs.
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CONCEPTUAL FRAMEWORK OF RECRUITMENT PROCESS Human resource Management classically pertains to planning; recruitment, selection, placement, induction, compensation, maintenance, development, welfare etc. of Human Resources of any organization to enable the organization to meet its objective while also enabling the human resources to attain their individual goals. 41
As is evident from the definition of the concept the entire theme revolves centrally around human resource and its role in enabling simultaneous satisfaction of individual and organizational goals. The immediate conclusion that follows from this is that the prime movers of the organization are the individuals. The process of bringing employees into the folds of organisation is termed as recruitment and can be unambiguously treated as the central pillar for foundation stone of the entire concept of human resource management. It is easy to see why recruitment has accorded such a high position out of the various facets of human resource management. The reason is simply that unless one has human resource in the organisation whom will the human resource managers manage or whose energy will they channelize productively and usefully. Keeping this idea into mind this Projects is an attempt to study various options that are available both theoretically as well as practically for an organisation to launch itself into the task of recruitment. The entire report is divided into various sub-sections which appear in a chronology of events that are steps in the process. DEFINITION The success of an organisation largely depends upon the Team of the skilled and qualified human resources who are chosen out of number of applicants for the job. It is the primary duty of the HRD department to procure and maintain an adequate qualified working force of various personnel necessary for manning the organisation. 42
Procurement function of personnel Department includes three major sub-functions- (A) Recruitment; (B) Selection: and (C) Placement on the job. Recruitment is the positive process of employment. The process of Recruitment is to identify the prospective employees, attract, encourage and stimulate them to apply for the job, Interview the eligible and select them for a particular job in the organisation. Recruitment is a process to discover the sources of manpower to meet the requirements of the staffing schedule and to employ effective measures for attracting selection of an efficient working force.
CATEGORICALLY CLASSIFICATION OF EMPLOYEES OF HCL CATEGORY I All workmen, All Assistants (Accounts, Stores, Field), clerk, Typist, Steno- Typist, Stenographer, Computer Operator. 43
CATEGORY II Accountant, Store keeper, Supervisor up to the level of Officers, Designer, Jr. Engineer, P.A, Sr. P.A, EDP Programmer up to officer, Admin./ personnel / HRD officer, Inspector. CATEGORY III Secretary, Executive Secretary, Management Trainee, Asst. Engineer, Engineer, Sr. Engineer, Sr. Programmer, Sr. Officer, Asst. Manager, Dy. Manager, Manager, Sr. Manager, Works Superintendent. CATEGORY IV AGM, DGM, GM, SR. G.M. CATEGORY V VP & above.
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ORGANISATION STRUCTURE OF HCL A brief introduction to Divisional / Departmental heads. 44
CHAIRMAN AND MANAGING DIRECTOR: CMD holds to most position in the organisation. He is the owner of the Company. He guide the functional heads to smoothen their activities. It is the key position in the organisation. DIRECTOR OPERATIONS: He is the overall in charge of P&A, HRD, Systems, TQM and Critical Issues. GM-PRODUCTION: He is the overall in charge of works. He is directly involved in production planning. He formulates various policies for betterment of the product. He issues guidelines to Production Department and Quality Control Department for implementation of the policies. VP-FINANCE: He is directly involved in finance matters and finance policy. He is also involved with personnel department for wages compensation, salaries and other financial benefits. AGM- PERSONNEL & ADMINISTRATION: He is the overall in charge of personnel, Administration and Industrial Relations of the group and also oversees the HRD activities.
SR.MANAGER-CORPORATE HRD: 45
HRD Department is responsible for better utilization of manpower through Recruitments, Selections, Training, Development, Retention and Welfare of the group. It is involved in policy formation and its implementation. VP-MHD: He is the profit center head of the Material Handling Division. He is responsible for Design and Projects Execution. VP-BUSINESS DEVELOPMENT: He is the main source of Business Procurement to MHD. SR.GENERAL MANAGER He is responsible for marketing, Design, Estimation and Projects Management.
RECRUITMENT PROCEDURE IN HCL 46
Human resource is a most valuable asset in the Organisation. Profitability of the Organisation depends on its utilization. If their utilization is done properly Organisation will make profit otherwise it will make loss. If a good dancer appointed as a Chief Executive Officer of a Company, he may not run the business. So right man should be procured at right place in right time, otherwise their proper utilization may not be done. To procure right man at right place in right time, some information regarding job and job doer is highly essential. This information are obtained through Job Analysis, Job Descriptions, Job Specifications. HCL procure manpower in a very scientific manner. It gets information by use of these important documents like Job Analysis, Job Descriptions and Job Specifications. Without these recruitment may be success. Before recruit a person all information regarding job, working conditions, duties and responsibilities of job doer, Skills experiences qualifications of an employee to do the particular job is highly essential. To obtain the pertinent information regarding job, duties, responsibilities, working conditions, skill efficiency, education and experience of the employee, HCL, gets the help of Job analysis, job description and job specifications.
PROCEDURE OF RECRUITMENT 47
Recruitment is a process consisting of various activities, through which search of prospective personnel- both in quantity and quality- as indicated by human resource planning and job description and job specification is made. This process includes recruitment planning, identification of recruitment sources, contacting those sources, and receiving, application from prospective employees. These applications are, then passed on to selection process as shown in figure.
Evaluation and control
Recruitment Planning Sourced of recruitment Contacting Sources To Selection Process Application Pool 48
CHAPTER-III RESEARCH METHODOLOGY
RESEARCH METHODOLOGY 49
According to Plutchick R, Research has its origin in a term which means to go around or to explore And it is a combination of Re+ Search. Literally, it means that the repetition of search. In some cases repetition can be but for the improvement of knowledge as attitude and other related aspects of previous study might have been affected by socio- economics, socio- psychological, socio- political or any other related factors. According to Kelinger, research is systematic, controlled, empirical and critical investigation of hypothetical proposition about the presumed relations among natural phenomenon. Research does not always call for a hypothesis. It may also be carried out for the discovery of hypothesis.It may also design together for descriptive information on a phenomenon. RESEARCH DESIGN Research design aids the researcher in the allocation of limited resources by posing crucial choices in methodology. Research design is the plan and structure of investigation so conceived as to obtain answers to research questions. The plan is the overall scheme or program of the research. It includes an outline of what the investigator will do from writing hypothesis and their operational implications to the final analysis of data. DESCRIPTIVE RESEARCH DESIGN The desi gn for this study is descri ptive research desi gn. Thi s desi gn was chosen as i t describes accurat el y the charact eri sti cs of a parti cul ar s1yst em as wel l as t he vi ews held by indivi duals about the syst em. The views and opini ons of employees about t he syst em help to study the suit abilit y of the system as wel l as t he constraints t hat mi ght restri ct its effecti veness.
The research involves the following steps:- 50
1. DEFINE THE PROBLEM AND RESEARCH OBJECTIVE:- If the problem is clearly defined, it is half solved .The problem Objective here to assess the scope. 2. COLLECT THE INFORMATION :- The information is collected from secondary sources- websites magazines,newspapers , and through primary source. 3. ANLAYZE THE INFORMATION:- The next step in the research process is to exact findings from the collected data . 4. PRESENT THE FINDINGS AND CONCLUSIONS:- As the last step, the findings and conclusion of whole research are presented in the end. HYPOTHESIS The organisation follows a systematic recruitment process, which contributes towards continuous flow of production without shortage or excess of labors.
SAMPLING TECHNIQUES 51
The sampling t echnique adopt ed for the purpose of the study is conveni ence sampli ng. As t he name impl ies a conveni ence sample means sel ecting particul ar units of the universe t o const itut e a sampl e. SAMPLE SIZE The sampl e size of the st udy is 150. This sampl e is considered as represent ati ve. DATA COLLECTION PRIMARY SOURCE: The primary source of dat a i s through Questionnai re. SECONDARY SOURCE: The secondary source of information is based on the vari ous detai ls retrieved from Journals, Websit es and Magazines. The data for this study has been collected through primary sources. Primary data for this study was collected with the help of Questionnaires and evaluation feedback forms. The extra information was collected through interviews with the employees at various companies UNIVERSE: An executive and a worker irrespective of their position and placements in any of the departments of the organization is considered as unit of study.
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METHOD OF DATA COLLECTION:
The primary as well as the secondary sources was used for collection of data. In primary source of data collection the interview schedule and questionnaire and opinion survey were used and in secondary source of data collection relevant records, books, diary and magazines were used. Thus the sources of data collection were as follows:
The investigator used structural interview schedule, questionnaire and opinion survey for collection of data from primary source. Interview schedules were used for workers clerical, category and questionnaires were used for supervisory and executive cadre and opinion survey was used to know the technology, perceptions, thoughts and reactions of the executives, employees/workers and trade union members of the organisation. The investigator used the secondary source like diary, books, magazines and other relevant records for collection of data to know about the industry as well as the respondents.
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CHAPTER 4
ANALYSIS AND INTERPRETATION
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TABULATION, ANALYSIS AND INTERPRETATION: After completion of data collection the editing of the responses go obtained was done. This edited data further codified and code book was prepared. On the basis of these tables the data were interpreted and analysed and conclusion was drawn. Aft er due coll ati on of data gathered, the entire data was subjected t o t he anal ysis phase, data was tabul at ed and meaningful results were deri ved from i t. Appropri at e t ool s used to draw graphs and chart s t o displ ay t he results coll ect ed from t he survey. From the sampl e size of 50 questionnai res dist ributed onl y 30 questionnaires were recovered. A tot al of fift een questi ons were i ncorporated in the questi onnai re, whi ch spanned from basic information to very rel evant business information. Starting from the first question onwards the results are displ ayed in the form of chart s and the deduced result is ment ioned bel ow it. The fi rst question was an open-ended questi on aski ng the position for the person appl y for in the organization. It was just t o make candidat e a littl e comfort abl e and att entive. Recruiting t alent is seeing a new hi gh as organizations are spending a lot to att ract t he ri ght talent. Organizations are usi ng a host of i nnovative and at the same time run-of-t he-mill methods to hire empl oyees. But in order to be effective and innovative, t he compromi se has been settl ed on the hi gh costs. Personal referral is the most effective and cheapest mode of recruitment. Compani es encourage thei r empl oyees to refer people for di fferent posi tions. It ensures that t hey att ract the best t alent and also gi ves an empowering si gnal to empl oyees about t hei r engagement wi thin the count ry. Now as t he study suggest s t hat more than hal f t he respondents had come t o k now about t he job openi ngs at The mobil e store lt d t hrough Personal Referral s, we can easil y concl ude that t he employees at The mobi le store l td are happy wit h 55
the organization and in turn are att racting more t al ent t o the organization. Secondl y, we can al so conclude that the informati on di ssemi nati on i nternall y is very good. It also shows that the number of peopl e with personal referrals getti ng sel ect ed in the organizat ion i s the hi ghest in number. Thus, t he organizati on i s successful in savi ng a l ot of cost on recruit ment. The negative poi nt whi ch comes out of this is that our Websit es, Advertisi ng and Newspaper Ads are not at tracting many peopl e. Though, there are di rect applicati ons al so which are an i nexpensi ve source of recruit ment . In t his way too, t hey are able t o capture the profil es of a si gni fi cant number of pot enti al candi dat es that help in recruitment process.
The resul t from the next question just i fies it why the personnel referrals are most import ant source i n The mobil e store lt d. The respondents who have already been t hrough the The mobil e st ore lt d Recrui tment/ Sel ecti on process find it to be effici ent except for one person who fi nds it In-effi ci ent. It also showed that all t hose 7 who gave neut ral responses were mostl y from Finance and Marketing department and mostl y all managers. 56
Before we get on with t he anal ysis of the next part it i s important that we differenti at e between Effi ci ency and Sat isfacti on. By defi niti on Effici ency is the effectiveness or compet ence of t he job whereas Sat isfact ion refers to the agreement or t he contentment with the job. Accordi ng to t he study it is evident that though many peopl e found the process to be efficient though a few were dissatisfi ed with the process. The dissatisfacti on is shown wit h the increase in the number from one t o three. This shoul d be l ooked int o very seri ousl y and the di ssatisfacti on be removed before it spreads out of the organization, as more than fift y percent of our recrui ts are personal referrals. It was also seen that out of the t hree who were dissati sfi ed two were from finance depart ment. It also means that out of t he four employees from t he fi nance depart ment t wo are di ssatisfi ed and t hat too all are managers. 57
Here again we can see that how are employees are referring the org anizati on t o pot enti al empl oyees. This goes on t o show the satisfacti on l evel of empl oyees is very hi gh. As satisfied int ernal customers means satisfi ed external customers this i s a positi ve aspect for the organizat i on. 58
As a regul ar compl aint from most employees in all bi g organizati ons, t he response remains same here as well, al most ei ght y percent of peopl e feel that duri ng the process more rel evance is given to Experi ence than Quali fi cat ion. This needs to be l ooked at and it shoul d be clearl y menti oned in the appl icati on form as well as in the job description as t o what would be preferred for a parti cul ar position and job and why. Thi s would not onl y make t he employees more satisfi ed with the process but also make those rej ected feel t hat they are not cheated. 59
With a major percentage of respondents not coming t hrough Newspaper Ads or websit es, i t is di fficult t o say that t he Recruitment/Sel ection process is adequat el y advertised. The results show a cont rary pi ct ure, with almost hal f the respondents agr eei ng to the advertisi ng presence of The mobi le store ltd. These respondents should again be quizzed on the places and t he cont ent of the advertisement to gain cl arit y. Of t he employees agreei ng t hat t he process is adequat el y advertised most of them were f rom sal es department . And from amongst the empl oyees disagreei ng most of them were from marketing department . As the marketing department themselves feel that the process i s not adequat el y advertised some st eps should be taken i f need arises. 60
Though maj ori t y of the respondents are satisfi ed wit h the st andard of the Appli cation form and its content a few have shown reservat ion regardi ng t he same. Anot her study shoul d be carried out to find out the dissatisfacti on and changes t hat peopl e suggest that would make t he Appli cation form more agreeabl e.
Here we can see that Informat ion regarding the paramet ers was not propagated and hence almost Si xt y five percent of t he respondent s who were appeari ng for an int ervi ew were unaware of t he judging paramet ers. Thi s is one of a drawback 61
of t he process as the candi dat es should be properl y informed on what parameters they woul d be reject ed or sel ect ed so that they can t ry thei r best.
Int erestingl y, a lot of peopl e had appli ed for a change in intervi ew time or request ed feedback duri ng their selecti on process. Almost 9 out of 30 appli ed for a change in the intervi ew process. The fi gure below shows the satisfacti on level of the peopl e who had made these requests.
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The company should look into the nature of the request whi ch were not sati sfi ed and check if such t hings can be avoided in the future. As we can see that on an average 25% of the requests were not satisfi ed which i s not a good si gn as thi s can bri ng a bad name to t he company.
The next set of questions consist ed of many parts and j udged t he amount of transparency generat ed by the HR ppersonnels amongst t he candi dat es through the recruitment process. The response to the fi rst part of t he questi on i s overwhelming and it seems everybody was gi ven qualit y information regardi ng the orgainzat ion. The onl y t hing that needs t o be l ooked i nto is the varying degree of dissemination of the i nformat ion and in future, effort s need to be made t o see t hat the information i s uniforml y di stribut ed. 63
Now, here we can see a great cont rast wi th respect t o the above, though peopl e were provided adequat e informati on regarding the organizat ion, t here was not enough information regarding the rol es t hat they were about to play i n it. The job descri ption which consist s of the titl e of the job, to whom the empl oyee is responsibl e, for whom the employee is responsi bl e and a si mple descri ption of the rol e and duti es of the empl oyee withi n the organization should be very cl ear in the minds of t he candidate before they starting working on t he organizat ion
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Here the response t akes a swing in favour of the informati on provi der as the respondents feel t hat they were given adequate information about the department that they were about to j oi n.
The sal ary and compensat ion st ructure was again a sore i n the information disseminati on, wit h many respondents feeling that the qualit y of the i nformati on provided was average or below average. Since sal ary is an important 65
information hence care must be taken t o explain i t in det ail so that all doubts are removed.
Taking a cue from the response we can conclude t hat a li ttle more effort i s requi red to make every single candidate appl yi ng for the job be aware of t he responsibi liti es expect ed out of him/her. This needs to be l ooked into as until the candi dat es properl y knows what thei r job is all about they would not be abl e to perform hundred percent and this can lat er l ead to dissat isfied employees and thus a hi gh att riti on rat e, which is a maj or pr obl em facing the t el ecom sector in Indi a.
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It seems as if everybody knew about t he job location t hat they were being intervi ewed for, hence a very hi gh percentage of peopl e were sati sfi ed wi th t he information provided. Care must also be t aken that any changes in the work location at a fut ure dat e shoul d also be communi cated in advance.
It is almost an i dent ical sit uation as t he earlier questi on except that t here is a small til t towards the average to below average side. A lot of care must be taken 67
to explai n t he hi erarcy and t he reporting structure to the candidate as it helps him understand more about the organizati onal st ructure and hi s position in it.
Since this parameter is an import ant one in maki ng a decision to j oin a n organizati on or nat, we should ensure that the appl icant is well aware of all t he growth oppurt uniti es in the organizati on. Here probabl y, some peopl e were dissatisfi ed wit h the qualit y of t he information provided. Today everyone wants to grow professional l y and that too in very l ess time. The mobile store ltd whi ch is an organizat ion with hi gh growth opportuniti es should inform al l candi dat es about it so that t hey feel satisfied and happy about joining such an organization. 68
Here the fl ow of information is not adequat e with around thirt y five percent respondents were eit her averagel y satisfi ed or below satisfati on l evel. Before an empl oyee j oins the organization it is important he knows about the culture foll owed in i t so that he can easil y adapt t o it.
In this question we can see that the employees feel that they were usual l y kept updat ed about t he st atus of the sel ect ion process. Thus, the organization should 69
ensure that regul ar updat es are al ways dispat ched to t he applicant s during the enti re process. This woul d instill more transparency i n the system and devel op more t rust in the organization.
Now for this part of the quest ionnai re the intenti on was to capture the pot enti al problems wit h the process that were faced by t he appli cant s. The l argest ch unk bel onged t o the Test and Int ervi ew scheduling. Most of the employees fel t that the t est/ i ntervi ew was not properl y schedul ed and the recrui tment process was very l engthy. These aspects should be considered so that the candi dat es dont feel any inconveni ence during the process. Apart from thi s 8 of t he employees 70
also felt t hat the recruitment brochures/ i nformation was not up to date and thi s can also be i mproved upon. The l ast question in the questionnaire was an open ended one which asked thei r comment s on the whole recruitment and sel ection process. The responses were as fol lows: Some tol d that the basi c el i gibi lit y qual ification for al most all jobs should be rai sed t o post -graduation The recruitment process should be more smooth, flexibl e and l ess t ime-t aking The recruitment process should be adverti sed more to at tract more t al ent Experience should not be an import ant cri terion for all jobs and thus the freshers should be promot ed easil y to get a j ob easil y During t he recruitment process, proper and timel y feedback should be given at each st age Compensation schemes shoul d be expl ained more comprehensivel y t o the empl oyees Other sources of recruitment should also be incorporat ed and the company shoul d not compl etel y rel y on personal referral s. The desi gnati on and job profil e shoul d be made more cl ear for different departments and busi nesses. RECRUITMENT and SELECTION Receiving Applications Screening Applications Testing-Achievement Trade, Intelligence, Aptitude Personality Interviewing Checking References Selection Physical & Medical examination Placement Job introduction, on the job training. Formal performance appraisal methods 71
Superiors rating of subordinates Group of superior rating subordinates Group of peers rating a colleague Subordinate rating of business Scale 1) Ranking scale 2)Paired comparison method. 3)Factor comparison each trait scale 4)grading scale-3pt,5pt,10pt 5)forced distribution system-% fixed for each grade.
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RECRUITMENT VS SELECTION Both recruitment and selection are the two phases of the employment process. The differences between the two are:
1. The recruitment is the process of searching the candidates for employment and stimulating them to apply for jobs in the organization WHEREAS selection involves the series of steps by which the candidates are screened for choosing the most suitable persons for vacant posts.
2. The basic purpose of recruitments is to create a talent pool of candidates to enable the selection of best candidates for the organization, by attracting more and more employees to apply in the organization WHEREAS the basic purpose of selection process is to choose the right candidate to
fill the various positions in the organization.
3. Recruitment is a positive process i.e. encouraging more and more employees to apply WHEREAS selection is a negative process as it involves rejection of the unsuitable candidates.
4. Recruitment is concerned with tapping the sources of human resources WHEREAS selection is concerned with selecting the most suitable candidate through various interviews and tests.
5. There is no contract of recruitment established in recruitment WHEREAS selection results in a contract of service between the employer and the selected employee.
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RECRUITMENT & SELECTION FLOWCHART
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SOURCES OF RECRUITMENT
Sources of recruitment can be classified into two categories (i)Internal Sources (ii)External Sources INTERNAL SOURCES: Internal sources of recruitment means promotion of employees from the lower rank to the upper rank. Majority of companies have established a policy of promotion from within that is, vacancies other than at the lowest level are filled up by promoting the personnel to the higher rank. Such practice leads the healthy progressive atmosphere and the cost of training and the rage of labor turnover. This source of recruitment is generally adopted to fill vacancies of middle and top personnel. EXTERNAL SOURCES It is always not possible to recruit the employees from within, especially vacancies at lower level or recruitment at the time of expansion of the firm or where job specification cannot be met by the present employees, the employer has to go to external sources of manpower supply. Amongst the most commonly used outside sources are as follows: 1.ADVERTISEMENT: Advertisement in newspapers and journals is now an external popular source of recruiting staff. For all types of types of vacancies employers resort to advertising but it is the most suitable source for filling the vacancies of technical and senior personnel. All particulars regarding the job and the qualifications of the perspective candidate are given in their advertisement. Candidates processing the requisite qualification apply for the job 2.TECHNICAL INSTITUTIONS: Campus interview is a very useful source of recruitment for a full range of jobs. The employment managers of the enterprises maintain a close liaison with the University and Technical institutions. This method is used for recruiting Officer, Apprentices, Engineers or Management Trainees. Technical Institutions empanel the promising young talents for employment and refer their names to the prospective employers as and when asked for.
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3. EMPLOYMENT EXCHANGE: Employment exchanges are regarded as good source of recruitment for unskilled, skilled or semiskilled operative jobs. The job seekers get their names registered with employment exchanges managed and operated by the Central and State Government. The employers notify the vacancies to be filled in by them to such exchanges and the exchanges refer the names of prospective candidates to them. 4. PRIVATE AGENCIES: Some private agencies are also doing a great service in recruiting technical and professional personnel. They provide a nationwide service in attempting to match the demand and supply of personnel. Many private agencies tend to specialize supply of personnel. Many private agencies tend to specialize in a particular type of jobs like Sales, Marketing, Technical Professional. 5. PERSONNEL CONSULTANTS: Consultants who specialize in the recruitment of managers and other senior officials are now being called upon to assist the management in filling of these posts. Companies hire the services of these consultants at the time of recruitment of the senior officials. These consultants agencies, on receiving requisition from the client companies, advertise job description in leading newspapers and periodicals without disclosing the names of the employers. 6. PROFESSIONAL BODIES: Some professional institutions like Institute of Chartered Accountant , I.C.W.A.I., Institute of Company Secretary etc. maintain a register of qualified persons from which they recommend the names of the job seekers to the employers when asked for. 7. UNSOLICITED APPLICATIONS: An organisation of repute draws a steam of unsolicited applications at the companys office. These applications are screened and places in the relevant Data Banks. Whenever needed to locate suitable candidates for that particular skill these are used. 8. RECRUITMENT AT THE GATE: Sometimes direct recruitment of workers is made at the gate of the factory or office. Generally, the number of vacancies, nature of work and time of interview are notified by the Personnel Department on the blackboard at the gate. Prospective candidates attend the interview at the appointed time and get the appointment. This system of recruitment is generally used to recruit the unskilled workers.
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9. PART TIME EMPLOYEES: Sometimes, persons are employed to dispose of the heavy seasonal work or the areas of work of temporary nature on part time basis. These part time employees form a good source of labours supply as and when vacancies occur. Vacancies are filled up among them if they fulfil the requisite qualification to suit the jobs. 10. LEASING: The short term fluctuations in personnel needs may be stabilized through leasing of personnel for some specified period from other industries, offices and units. This system of leasing has been well adopted by the public sector organizations. With the rapid growth of public sector, the acute shortage of managerial personnel, particularly at higher levels, they borrow the personnel of requisite caliber from the Government Departments. At the end of their term they are given an option to choose either their parent services or the present organizations. 11. TRADE UNION: In some companies trade unions also assist in recruiting the staff. This sense of cooperation helps in developing the better labor relations. This source of labor supply cannot be relied upon on the ground that sometimes trade unions support a candidate who in not fit for the job and is not acceptable to management. Such view really worsens the labor relations. However, this method is not being adopted by out organisation.
SELECTION TEST Psychological tests are essentially an objective and standardized measure of a sample of behavior. Objective of this definition refers to the validity and reliability of measuring instruments. It also means the job relatedness of the test. KINDS OF TEST Following tests are adopted for selection:- 1. Achievement 2. Aptitude 3. Interest 4. Personality 79
5. Intelligence. 6. Leaderless Group Discussion 7. Interview 1. ACHIEVEMENT TESTS This test measures a persons potential in a given area. This test measure the skill which involves performance of a sample operation requiring specialized skill and believed to be satisfactorily answered by those who have some knowledge of the occupation and trade 2. APTITUDE TEST This measures ability and skills. Specific aptitude tests have been designed for jobs that require clerical, mechanical, and manual dexterity. Aptitude tests do not measure motivation. Aptitude test is supplemented by interest and personality test. 3. INTEREST TESTS This test has been designed to discover a persons area of interest, and do identify the kind of work that will satisfy him. 4. PERSONALITY TESTS Personality tests assess individuals motivation, predisposition and other pattern of behavior. The personality tests, more often than the intelligence, achievement or aptitude tests, predict performance success for jobs that require dealing with people. Dimensions of personality such as interpersonal competence, dominance-submission, ability to lead and ambition are more suitably measured by the personality test. 5. INTELLIGENCE TEST This tests generally aptitude ones. The scores on intelligence tests are usually expressed as Intelligence Quotient (IQ), which are calculated by the following formula. Mental IQ= --------------- x 100 Actual Age 6. LEADERLESS GROUP DISCUSSION The essential feature of this technique is that instead of the candidates being interviewed separately, they are brought together in gourp of six to eight for informal discussion, and absolved and evaluated by the selectors. The two kinds of group discussions are one, where the group is given a problem to discuss and the individual member is free to choose his own approach to solving this problem; and two, where each individual is allotted an initial position and supplied with supporting information to defend his position. 80
The advantage of this method is that the decision to hire a person can be made within a very short time, and the selector can evaluate the candidates personality or leadership qualities very well
7.INTERVIEW TECHNIQUES The interview technique consists of interaction between interviewer and interviewee (applicant). Following are the methods of interview technique:-
1.PRELIMINARY INTERVIEW These interviews are preliminary screening of applicants to decide whether a more detailed interview will be worthwhile. The applicant is given job details during the interview to afford him freedom to decide whether the job will suit him. It is argued that preliminary interviews are unsatisfactory, first because they might lead to the elimination of many desirable candidates, and second, because interviews may not have much experience in evaluating candidates. The only argument for this method is that it saves the companys time and money.
2.DEPTH INTERVIEW Depth interviews cover the complete life history of the applicant and include such areas as the candidates work experience, academic qualifications, health, interests, and hobbies. It is an excellent method for executive selection, performed by qualified personnel. It is however. Costly and time consuming.
3.OATTERNED INTERVIEW Patterned interviews are a combination of direct and indirect questioning of the applicant. What is to be asked is already structured. The interviewer has certain clues and guidelines to areas which should be probed deeply. The interview also encourages the candidate to express the relevant information freely.
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SELECTION METHODS A variety of methods is used to personnel. The selection pattern, is not common for all organizations. It varies from one to another, depending on the situation and needs of the organization.
APPLICATION BLANK The application blank is a highly interview in which the questions are standardize and determined in advance. It tests the applicants ability to write, organize his thoughts, and present facts. A number of application blanks give the impression that if you have seen one you have them all. Despite the diversity, all application blanks essentially require three broad categories of information.
A.BIOGRAPHIC DATA This is concerned with such variables as age, sex marital status and number of dependents. This also have used items like the local address, age, previous salary and age of children and have found no difference in long and short tenure employees.
B.EDUCATION AND PAST EXPERIENCE This is concerned with grade point, average, division and percentage of marks as prerequisites for a job.
C.REFERENCES References are letters of recommendation written by previous employees or teachers. The general format is a paragraph or so on the person. Besides inaccurate facts, this can be attributed to the referee' inability to assess and describe the applicant, and his limited knowledge about him.
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DATA ANALYSIS INCLUDING OPINION SURVEY OF EXECUTIVES STAFF/EMPLOYEE REGARDINDING RECRUTIMENT POLICY OF HCL MANPOWER POSITION OF HCL. IN THE LAST 10 YEARS:- YEAR H.O (CORPT) FACTORY FIELD TOTAL 1995 80 200 104 414 1996 82 200 109 426 1997 82 202 109 428 1998 81 198 110 431 1999 81 195 120 440 2000 75 186 115 413 2001 76 190 118 439 2002 78 192 130 464 2003 76 188 134 464 2004 70 142 120 389
From the above table it is shown that increase in recruitment of manpower is based on availability of Projects and diversification of business. At the saturation point of one business it diversifies to another business which is highly required for a business house. There is a little bit effect of non-availability of Projects and diversification of business on manpower positions. In this way HCL, avoids retrenchment and lay off and adjust the deficit and surplus manpower within the organisation.
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COMPARATIVE STATEMENT OF MANPOWER POSITION & PROFITABILITY OF THE ORGANISATIONS SINCE LAST 10 YEARS:-
YEAR MAMPOWERSTRENGTH PROFIT / LOSS (RS. In Las) P/ L BY RECRUITING ONE EMPLOYEE(In RS.) 1997 428 249.47 58287 1998 431 195.11 45269 1999 440 225.73 59302 2000 413 280.35 67881 2001 439 192.37 43820 2002 464 242.27 52213 2003 464 215.15 46362 2004 383 180.22 47054
It is clear from the above table that when recruitment of manpower increases profitability of the organisation decreases and when recruitment of manpower decreases profitability of the organisation increases. So it is clearly understood that cost benefit analysis is not done properly before recruitment or creation of a position in the organisation.
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YEARWISE EXECUTIVES (VP AND MANAGERS) AND NON-EXECUTIVES (SUPERVISORS AND STAFFS) STRENGTH OF M/S. HCL.:-
From the perusal of the above table it is found that the ratio of span of control of HCL, is approximately 1:10 which is very good for an organisation in increase in the productivity for better cost control. But it may not leads to proper supervision and quality of work. Optimum utilisation of non-executives staff may not be achieved. OPINION SURVEY: Certain schemes yield more fruitful results in certain conditions and with some specific objectives. Needless to say that management practices differ from organisation to organisation. But the fact is that success does not follow automatically, the people who implement the system that matters just as the authority without acceptance have no meaning. Recruitment process without trust of employees and organisation has no value how hobble the objective may be so an attempt is made to study the attitude of those who are participating in recruitment process before giving any suggesting and concluding remarks. For this purpose research has taken opinion of 20 executives and 50 worker/employee of different departments/sections of the organisation. The questionnaire prepared and circulated may them is reproduced below indicating their responses to each question.
Questionnaire circulated among 20 executives Yes No No Response 85
1.Are you in support of recruitment policy? 2 Whether the existing recruitment policy is linked to productivity? 3.Do you feel that manpower recruitment has been rationalised by way of automation? 4.Whether the existing recruitment policy is getting will supports for the top management? 5.What are the benefits you are deriving from the existing recruitment policy? a)Reduction on labor cost? b)Effective utilisation of human resources? c)Maintaining timing in recruitment and staffing schedule? 6.Do you feel that job evaluation and job analysis helps in manpower recruitment in your organisation? 7.Do you think that the personal recruited from external sources is more desirable than the internal sources? 8.Whether cost benefit analysis is done before recruitment? 9.Are you satisfied with the existing recruitment system of the organisation? 10.Do you feel that performance appraisal helps in recruitment process? 11.Do you feel that training will effect to recruitment process? 12.Do you think job rotation will affect the recruitment policy?
13.How are you controlling the shortage and excess of manpower? a)By employing casual worker b)By employing extra hours c)By lay off / retrenchment
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CHAPTER-5
CONCLUSION, FINDING
&
SUGGESTIONS
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CONCLUSION
Studying the recruitment procedures of HCL, analyzing the respondents answers, opinion survey and date analysis the researcher came to a conclusion that HCL is a growing Company. It has a separate personnel department which is entrusted with the task of carrying out the various policies, programmes like recruitment selection, training etc. effectively and efficiently. The business of HCL is carried on in a very scientific manner. In the saturation point of business it need not waste the time to diversify into the another business. Management understands the business game very well. At the time of difficulty it takes necessary action to solve the problem. Now the personnel department of HCL is in infancy stage. It always try to modernize the department. It strongly believes in manpower position of the organization because it knows in the absence of M for man all Ms. like money, material, machines, methods and motivation are failure. It always tries to develop the human resources. In the absence of right man, material, money, machines all things will not be properly utilized. So it always recruits manpower in a scientific manner.
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FINDINGS
1. Under recruitment Procedures Requisition System is incorrect because the replacement does not require fresh approval, unless it is in place of termination. 2. The data banks are not properly maintained. 3. The dead bio-data are never being destroyed. 4. Proper induction is not given to all the employees. It reserves to only a few levels. 5. Salary comparison is not justifies. Old employees are demoralized by getting less surely then new employee. 6 .Salary fixations has a halo effect. 7. Recruitment procedure is not fully computerized. 8. Manpowers are recruited from private placement consultancy, who are demanding high am 1. Under recruitment Procedures Requisition System is incorrect because the replacement does not require fresh approval, unless it is in place of termination not fully utilized to recruit manpower by advertisement. 9. Before recruitment cost benefit analysis is not done properly. It causes manpower surplus which makes loss in the industry. 10. Manpower is recruited from reliable source however efficiency .
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SUGESSTION & RECOMENDATION
SUGGESTIONS
1.Fresh requisition requires approval and not replacement. 2. The Data Banks should be computerized. 3. The dead CVs should be destroyed. 4. Each level of employee should be formally inducted and introduced to the Departmental Head. If not all levels, at least Asst. Manager and above category of employees. 5. Salary comparison should be seriously done to retain the old employees. 6. Proper salary structure to be structured to attract people and make it tax effective. 7. Cost benefit analysis should be alone before creating a position or recruitment of manpower. 8. Recruitment process should be fully computerized. 9. External source should be given equal importance with internal source. By which new brain will be inducted in the company with skill, talent, efficiency etc. 10. Manpower planning should be followed before recruiting. 11. Proper inquiry should be done regarding previous employment of a candidate before recruitment to avoid industrial disputes.
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RECOMMENDATION:-
1. EDUCATION : Ability to read and understand production orders and to make simple calculations. Preferably High School Certificate.
2. TRAINING AND EXPERIENCE: No special training required. Requires one month experience to learn job duties and to attain acceptable degree of proficiency.
3. MENTAL SKILL: Requires reasoning to interpret instructions and drawings and productions orders. Must be able to concentrate when operating.
4. SUPERVISION: Routine checking and no close supervision required. Specific but no detailed instructions.
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BIBLIOGRAPHY
Principles of Management - by koontz o Donel. Principles and practice of Management by C.B. Gupta. Human Resource Development by U.B. Singh Principle and practice of Management by L. M. Prasad. Personnel Management by C.B. Mamoria. Management of human Resource. Dynamic of personnel administration by M.N. Rudrabasavaraj. Personal Management and industrial relation by R.S Davar. World Resources by M.S kar. www.hcl.com www.domain_b.com
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ANNEXURE
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ANNEXURE 1
QUESTIONNAIRE TO EXECUTIVE
1. a) Name of the respondent :
b) Date of joining:
c) Employment NO:
d) Designation:
e) Department:
2. Details of the Organisation:
a) Name :
b) Address:
c) Nature of Production:
d) Location;
e) (i) Are the organizational activities
Concentrated anywhere? (Yes/No)
(ii)If yes, then where? f) When started? g) Production figure of last 10 years
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YEAR TARGET ACTUAL PRODUCTION 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 h) Capital invested in the last 10 years: YEAR CAPITAL INVESTED 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
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i) (a) workforce strength (10 years) 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 i. Unskilled ii. Semiskilled iii. Skilled iv. Highly skill
(b) Employees strength (10 years) Managerial No. 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Supervising No. Clerical No. Others No. (J) (a) Organisation Chart: (b) Method of wage payment (%age of employee covered) Time rate Piece rate Any other method (C) Factors which influence wage determination for different categories of workers. (d) Method of wage determination (i) Collective bargaining (ii) Wage board (iii) Any other method
3. Are you satisfied in your job? Satisfied/Not-Satisfied i) Are you satisfied with the existing manpower position your department? (Satisfied/Non- Satisfied) 96
ii) If not, do you need more manpower in your department? (Yes/No) iii) Is it justified according to your workload? (Justified/Not Justified) iv) Kindly give reasons for your answer in brief. 4. (i) How do you ascertain the need of manpower in your department? Mention the technique of manpower assessment. (ii)Whether the planning period is long range/Medium range/Short range. (iii)Whether the process of recruitment is approved by top management. 5. (a) How the personnel are recruited? (i) Through external source (ii) Through internal source (iii) Or the both (b) Are you satisfied with the existing recruitment system of the organisation? (Yes/No) (c) Kindly give reasons for your answer briefly. 6. While recruiting the new personnel: (a) Is there any job evaluation or job analysis procedure adopted? (Yes/No) (b) Is there rate of labors turn over exactly calculated? (Yes/No) (c) What are the requisite sources to fill the vacancies (i) Through employment exchange (ii) Advertising through T.V, Radio, Magazines and other Journals. (iii) Through campus interview. (iv) Through management consultancy. (v) At factory gate from any reliable source 7. while the selection procedure is going on (a) Is the interview conducted in a special room?(Yes/No) (b) Whether the organisation conducts written test/verbal test/the both (c) Whether the interviewer are company men/outsider/ the both electing the candidate 97
(i) Is the induction programmer being conducted? (Yes/No) (ii) Is proper placement offered to the candidate?(Yes/No) 8. Is performance appraisal conducted for recognizing the efficiency in the performance of employees? (Yes/No) 9. (a) Is there any provision for imparting training facilities to the employees?(Yes/No) (b) Which type of training for imparting training facilities to the employees?(Yes/No) (c) In present context which type of training you considered as appropriate? (d) Do you feel that training helps in recruitment policy? (Yes/No) 10. (a) Is there any promotion facility provided to the employees in your organisation ? (Yes/No) (b) If yes, is it given on the basis of Efficiency/Seniority/the both 11. (a) What are the welfare amenities provided in your organisation? Crche Yes/No Canteen Yes/No Recreation Yes/No Medical Yes/No Conveyance Yes/No Free education for children Yes/No
b) Is there any motivational technique adopted by the company?(Yes/No) i) If yes, whether it is financial/Non-financial/the both ii) Whether it is job enrichment/job enlargement/the both iii) If no, kindly give your option 98
13.(a) How do your manage the shortage of manpower in your organisation?
By way of retrenchment/lay off/ the both/No one.
(b) How do you manage the shortage of manpower in your organisation?
Recruiting casual workers/Engaging overtime/Recruiting permanent workers/the both
12. Since the technology follow by the organisation is not up-to-date. It needs rationalization is there any future plan to bring latest technological know-how? (Yes/No)
13. If so how and it what way it is going to affect the overall manpower recruitment in the organisation. 99
ANNEXURE II
QUESTIONNAIRE TO EMPLOYEE/WORKER 1. a) Name of the respondent. b) Designation: a) Date of joining : b) Token no : c) Department :
2. a) Are you a workman / employee in the following category ? permanent / Temporary / Casual.
b) Are you getting wages in piece rate / Time rate / any other method? c) Is wages fixed by wage Board / Collective bargaining / Any other method. d) Are you feeling any work load in your job? Yes/No. e) If yes, do you need extra hands? Yes/No
3. a) How do you have recruited ? Through a employment exchange / through union / Political pressure / Through relatives.
b) Do you like internal source of recruitment ? Yes/No.
c) Do you feel that any extra manpower is needed for your organistaion? Yes/No
4. a) Is there any training facility for you? Yes/No
b) If yes, is it on the job training loft the job training / off the job training? Yes/No. 100
c) Do you feel that training is inevitable for you? Yes /No
5. a) Are you satisfied with your job? Yes /No.
b) Is the job appraised by your superior authority? Yes/No.
6. a) Are you getting promotion? Yes/No.
b) If yes, in which basis you have promoted? Efficiency / Seniority / The both.
7. Are you getting any motivational facilities? Financial / Non-financial / The both.
1. What types of facilities the company is extending for you? Creche Yes/No Canteen Yes/No Recreation Yes/No Medical Yes/No Conveyance Yes/No Free education for children Yes/No
2.Whether the organisation provides employment opportunity to the family members in case of death of the worker / employee.