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RECRUITMENT AND SELECTION PROCESS STUDY OF L&T

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SIGNATORY PAGE

TO WHOMESOEVER IT MAY CONCERN

This is to confirm that Prerna Chauhan, student of IIPM, NEW DELHI, is doing a live
project(Thesis) on the topic RECRUITMENT & SELECTION PROCESS IN HDFC
BANK under my guidance and that the work being done by the candidate is original and
is of the standard expected by an MBA student.

May god bless her with all success in her career.

Warm regards

Kamal Ghirdhar
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ABSTRACT

Recruitment and selection is a multifaceted concept. The relevance of recruitment and

selection is to determine the number of personnel required. The HR proceeds with the
identification of sources of recruitment and finding suitable candidates for employment.
Both internal and external sources of manpower are used depending upon the types of
personnel needed.

In the present business environment, organizations are faced with the pressure to produce
maximum with less recruitment. An employee, on whom an organizations profitability
depends, comprises the largest fixed cost that an organization incurs. In the past,
individual used to work with one or two organization during their entire working life
(average between 20-30 years). Organization too used to believe in lifetime employment
concept. However, such concepts are being eroded as a result of the unpredictable
business environment. Hence, organizations have to evolve methods not only to only
improve productivity but to also keep the cost down.

On the HR front, productivity can be improved by ensuring that the organization attracts
the best talent at the lowest possible cost. This objective translates in to the adoption of
the best recruitment and selection methods and instituting measures to retain and develop
them. Further, a quantitative measurement or recruitment and selection effectiveness has
to be conducted to prove ones point with respect to qualitative measure to improve HR
effectiveness, the field in still in its nascent stage. The objective of this study is to
measure the Recruitment and Selection practices and strategies in L & T. The primary
objective is to analyze how the overall recruitment and selection is done in the company
during the year.

The primary objective is well supported by a secondary objective which aims at the in-
depth study of those procedures which affects the Recruitment and Selection practices.

CONTENT
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ABSTRACT.................................................................................................ii

SIGNATORY PAGE...................................................................................iii

TOPIC APPROVAL LETTER....................................................................iv

ACKNOWLEDGMENT..............................................................................v

APPROVED THESIS SYNOPSIS............................................................vii

1. INTRODUCTION .............................................................................................1

2. COMPANY PROFILE.....................................................................................25

3. LITERATURE REVIEW.................................................................................41

4. RESEARCH METHODOLOGY.....................................................................57

5. FINDING AND ANALYSIS............................................................................59

6. CONCLUSION................................................................................................71

7. RECOMMENDATION....................................................................................73

8. BIBLIOGRAPHY............................................................................................75

9. ANNEXURE QUESTIONNAIRE................................................................76
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INTRODUCTION

The human resources are the most important assets of an organization. The success or
failure of an organization is largely dependent on the caliber of the people working
therein. Without positive and creative contributions from people, organizations cannot
progress and prosper. In order to achieve the goals or the activities of an organization,
therefore, they need to recruit people with requisite skills, qualifications and experience.
While doing so, they have to keep the present as well as the future requirements of the
organization in mind.

Recruitment is distinct from Employment and Selection. Once the required number and
kind of human resources are determined, the management has to find the places where
the required human resources are/will be available and also find the means of attracting
them towards the organization before selecting suitable candidates for jobs. All this
process is generally known as recruitment. Some people use the term Recruitment for
employment. These two are not one and the same. Recruitment is only one of the steps in
the entire employment process. Some others use the term recruitment for selection. These
are not the same either. Technically speaking, the function of recruitment precedes the
selection function and it includes only finding, developing the sources of prospective
employees and attracting them to apply for jobs in an organization, whereas the selection
is the process of finding out the most suitable candidate to the job out of the candidates
attracted (i.e., recruited).Formal definition of recruitment would give clear cut idea about
the function of recruitment.

DEFINITIONS

Recruitment is defined as, a process to discover the sources of manpower to meet the
requirements of the staffing schedule and to employ effective measures for attracting that
manpower in adequate numbers to facilitate effective selection of an efficient workforce.
Edwin B. Flippo defined recruitment as the process of searching for prospective
employees and stimulating them to apply for jobs in the organization. Recruitment is a
linking function-joining together those with jobs to fill and those seeking jobs. It is a
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joining process in that it tries to bring together job seekers and employer with a view to
encourage the former to apply for a job with the latter.

In order to attract people for the jobs, the organization must communicate the position in
such a way that job seekers respond. To be cost effective, the recruitment process should
attract qualified applicants and provide enough information for unqualified persons to
self-select themselves out. Thus, the recruitment process begins when new recruits are
sought and ends when their applications are submitted. The result is a pool of applicants
from which new employees are selected.

PURPOSES AND IMPORTANCE

The general purpose of recruitment is to provide a pool of potentially qualified job

candidates. Specifically, the purposes are to:

Determine the present and future requirements of the organization in conjunction

with its personnel-planning and job-analysis activities.

Increase the pool of job candidates at minimum cost.

Help increase the success rate of the selection process by reducing the number of
visibly, under qualified or overqualified job applicants.

Help reduce the probability that job applicants, once recruited and selected, will
leave the organization only after a short period of time.

Begin identifying and preparing potential job applicants who will be appropriate
candidates.

Induct outsiders with a new perspective to lead the company.

Infuse fresh blood at all levels of the organization.

Develop an organizational culture that attracts competent people to the company.

Search or head hunt/head pouch people whose skills fit the companys values.
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Devise methodologies for assessing psychological traits.

Search for talent globally and not just within the company.

Design entry pay that competes on quality but not on quantum.

Anticipate and find people for positions that do not exist yet.

Increase organizational and individual effectiveness in the short term and long
term.

Evaluate the effectiveness of various recruiting techniques and sources for all
types of job applicants.

Recruitment represents the first contact that a company makes with potential employees.
It is through recruitment that many individuals will come to know a company, and
eventually decide whether they wish to work for it. A well-planned and well-managed
recruiting effort will result in high-quality applicants, whereas, a haphazard and
piecemeal effort will result in mediocre ones. High-quality employees cannot be selected
when better candidates do not know of job openings, are not interested in working for the
company and do not apply. The recruitment process should inform qualified individuals
about employment opportunities, create a positive image of the company, provide enough
information about the jobs so that applicants can make comparisons with their
qualifications and interests, and generate enthusiasm among the best candidates so that
they will apply for the vacant positions.

The negative consequences of a poor recruitment process speak volumes about its role in
an organization. The failure to generate an adequate number of reasonably qualified
applicants can prove costly in several ways. It can greatly complicate the selection
process and may result in lowering of selection standards. The poor quality of selection
means extra cost on training and supervision. Furthermore, when recruitment fails to
meet the organizational needs for talent, a typical response is to raise entry-level pay
scales. This can distort traditional wage and salary relationships in the organization,
resulting in avoidable consequences. Thus, the effectiveness of a recruitment process can
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play a major role in determining the resources that must be expended on other HR
activities and their ultimate success.

SUB-SYSTEMS OF RECRUITMENT

The recruitment process consists of the following four sub-functions:-

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

Developing suitable techniques to attract the desirable candidates.

Employing the techniques to attract candidates.

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

Management has to attract more candidates in order to increase the selection ratio so that
the most suitable candidate can be selected out of the total candidates available.
Recruitment is positive as it aims at increasing the number of applicants and selection is
somewhat negative as it selects the suitable candidates in which process; the unsuitable
candidates are automatically eliminated. Though, the function of recruitment seems to be
easy, a number of factors make performance of recruitment a complex one.

FACTORS AFFECTING RECRUITMENT

The following are the 2 important factors affecting Recruitment:-

1) INTERNAL FACTORS

Recruiting policy

Temporary and part-time employees

Recruitment of local citizens

Engagement of the company in HRP

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Companys size

Cost of recruitment

Companys growth and expansion

2) EXTERNAL FACTORS

Supply and Demand factors

Unemployment Rate

Labour-market conditions

Political and legal considerations

Social factors

Economic factors

Technological factors

INDUCEMENTS

Organisational inducements are all the positive features and benefits offered by an
organization that serves to attract job applicants to the organisation. Three inducements
need specific mention here, they are:-

Compensation: Starting salaries, frequency of pay increases, incentives and

fringe benefits can all serve as inducements to potential employees.

Career Opportunities: These help the present employees to grow personally and
professionally and also attract good people to the organization. The feeling that
the company takes care of employee career aspirations serves as a powerful
inducements to potential employees.
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Image or Reputation: Factors that affect an organisations reputation include its
general treatment of employees, the nature and quality of its products and services
and its participation in worthwhile social endeavors.

Recruitment and selection

Recruitment and selection is the process of identifying the need for a job, defining the
requirements of the position and the job holder, advertising the position and choosing the
most appropriate person for the job. Retention means ensuring that once the best person
has been recruited, they stay with the business and are not poached by rival companies.

Undertaking this process is one of the main objectives of management. Indeed, the
success of any business depends to a large extent on the quality of its staff. Recruiting
employees with the correct skills can add value to a business and recruiting workers at a
wage or salary that the business can afford, will reduce costs. Employees should therefore
be carefully selected, managed and retained, just like any other resource

The recruitment process

A vacancy presents an opportunity to consider restructuring, or to reassess the

requirements of the job. This assessment is valid whether it is to fill an existing job or a
new one. Ask questions such as:

has the function changed?

have work patterns, new technology or new products altered the job?

are there any changes anticipated which will require different, more flexible skills from
the jobholder?

Answers to these questions should help to clarify the actual requirements of the job and
how it fits into the rest of the organization or department. Exit interviews, or consultation
with the current job-holder and colleagues may well produce good ideas about useful
changes.
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Writing a good job description or job specification helps in the process of analyzing the
needs of the job.

Job description/job specification

This should detail the purpose, tasks and responsibilities of the job. A good job
description should include:

main purpose of the job - try to describe this in one sentence

main tasks of the job - use active verbs, like 'writing', 'repairing', 'machining',
'calculating', instead of vaguer terms like 'dealing with', 'in charge of'

scope of the job - expanding on the main tasks and the importance of the job. Job
importance can be indicated by giving information such as the number of people to be
supervised, the degree of precision required and the value of any materials and equipment
used.

A good job description is useful for all jobs. It can help with induction and training. It
provides the basis for drawing up a person specification - a profile of the skills and
aptitudes considered essential and desirable in the job-holder. It enables prospective
applicants to assess themselves for the job and provides a benchmark for judging
achievements.

Person specification

Drawing up the person specification allows the organization to profile the ideal person to
fill the job. It is very important that the skills, aptitudes and knowledge included in the
specification are related precisely to the needs of the job; if they are inflated beyond those
necessary for effective job performance, the risk is that someone will be employed on the
basis of false hopes and aspirations, and both the employer and employee will end up
disappointed in each other

Another good reason not to set unnecessary requirements is to avoid any possibility of
discrimination against particular groups of potential applicants. The very process of
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writing a job and person specification should help the employer to develop and
implement a policy of equal opportunity in the recruitment and selection of employees.

Factors to consider when drawing up the specification include:

Skills, knowledge, aptitudes directly related to the job

The length and type of experience necessary

The competencies necessary

Education and training but only so far as is necessary for satisfactory job performance,
unless the person is being recruited on the basis of future potential (e.g. graduate
trainees), when a higher level of education may be specified

Any criteria relating to personal qualities or circumstances which must be essential and
directly related to the job, and must be applied equally to all groups irrespective of age,
sex, race, nationality, creed, disability, membership or non-membership of a trade union.
To do otherwise is potentially discriminatory.

For instance, a clause requiring the successful candidate to move their place of work
should be included only when absolutely necessary, as it is likely to discourage applicants
with family care commitments. Whilst age discrimination is not presently unlawful, to
impose age barriers will reduce the number of high quality applicants attracted by the
vacancy. Since December 2003 it has been unlawful to discriminate against people at
work in respect of religion or belief or sexual orientation. The Government plans to
introduce similar protection in respect of age by 2006.

The person specification helps the selection and subsequent interview to operate in a
systematic way, as bias-free as possible. The use of competency-based approaches can
help by focusing on the 'match' between candidate and role, but they are best used where
they are an integral part of the continuing assessment and development of staff.

Pay
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After setting the job and the person specifications, consideration should be given to pay
rates. Factors such as scales, grades and negotiated agreements, as well as market rates
and skills shortages, may affect the wage or salary, and organizations should be aware of
the requirements of equal pay and discrimination legislation. Unless there is a formal
system for increments or length of service, paying the new employee a different rate from
that paid to the preceding post holder may contravene the relevant legislation. Employers
must also comply with the provisions of the National Minimum Wage Act 1998.

Attracting applicants

The search for suitable candidates now begins. The process of marketing needs to be
undertaken carefully so as to ensure the best response at the least cost. The object is to get
a good selection of good quality candidates. Possible methods to consider are:

Internal Recruitment - This method can have the advantage of building on existing
staff's skills and training, and provides opportunities for development and promotion. It is
a good way to retain valuable employees whose skills can be further enhanced. Other
advantages include the opportunity for staff to extend their competencies and skills to the
benefit of both the organization and the individual, and the enhancement of individual
motivation. Use of a consistent, clear, procedure, agreed jointly between employer and
employees, has many advantages and avoids suspicion of favoritism

Jobcentres of the Department for Work and Pensions - will display employers'
vacancies and refer potential recruits. They also administer some of the Government
training programs. The Disability Service Team staff at Jobcentres can help address the
specific requirements of attracting disabled people

Learning and Skills Council - may well have trained workers available through their
recruitment service, and can tailor training to an employer's requirements

Commercial Recruitment Agencies - often specialize in particular types of work, eg

secretarial, office work, industrial, computing, and may already have potential applicants
registered with them
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Executive Search Organizations - usually working in the higher
management/specialist fields, will seek out suitable candidates working in other
companies by direct approach, or via specialist advertising

National L&T papers - advertising in the national press is expensive, but likely to
produce a good response for particular, specialist vacancies. Remember too there are
national ethnic group L&T papers which will reach a wide audience

Specialist and Professional Journals - less expensive than the national press, these
journals can guarantee to reach the precise group of potential applicants for specialist and
professional vacancies

Internet - is beginning to emerge as a recruitment medium. It is mainly used for

graduate-level and technical jobs because it tends to target a self-selected group who are
computer literate and have access to the web at their place of study or work.

Local L&T papers, Radio - for less specialized jobs, or to target groups in a particular
local area, advertisements in the local Engineering may produce a good response

Local Schools, Colleges and the Careers Service - maintaining contact with schools,
colleges and careers advisers will ensure that the organizations needs for school/college
leavers with particular skills and abilities are known. It can be particularly useful to offer
students the opportunity to spend some time at the company, on work experience, or
'shadowing'

Word of Mouth - introduction via existing employees or through an employers'

network. Whilst this may be economical, it is likely to lead to a much smaller pool of
suitable applicants and does not normally satisfy equal opportunities requirements
because any imbalance in the workforce may be perpetuated.

Once the recruitment channel or channels are decided, the next step is to consider:
The design and content of any advertisement used

How applicants are to respond - by application form, fax, telephone, in person at the
organization or agency, by letter, by email on the internet or by tape
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who is to be responsible for sifting the applications? What is the selection process going
to be?

If interviews are to be held, when will they be and will everyone who needs to be
involved be available?

Are selection tests to be used? Is there the expertise to administer them and ensure they
are non-discriminatory and appropriate?

Are references/medicals to be requested?

Are arrangements in hand to give prompt acknowledgement of applications received?

The advertisement

Any advertisement needs to be designed and presented effectively to ensure the right
candidates are attracted. Look through national, local or professional papers and see what
advertisements catch the eye. The L&T paper office will often advise on suitable formats.
Advertisements must be tailored to the level of the target audience, and should always be
clear and easily understood. They must be non-discriminatory, and should avoid any
gender or culturally specific language. To support this, the organization should include in
the advert its statement of commitment to equal opportunities, which will underline the
organization as one that will welcome applications from all sections of the community.

Consider the following factors in the advertisement:

If the organization is well known, does it have a logo that could feature prominently in
the advertisement? Make the advertisement consistent with the company image

should the job title be the most prominent feature?

Keep the text short and simple while giving the main aspects of the job, pay, career
prospects, location, contract length
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Mention specific details - such as pay, qualifications and experience required - be given
in a way which will reduce the number of unsuitable applications?

Is it possible to avoid generalizations such as 'attractive salary', or 'appropriate

qualifications' which may discourage valid applications?

Is the form of reply and the closing date for applications clear? Is there a contact name
and phone number for further information and enquiries?

All advertisements should carry the same information, whether for internal or external
use.

Application forms

Application forms can help the recruitment process by providing necessary and relevant
information about the applicant and their skills. The design of the form needs to be
realistic and straightforward, appropriate to the level of the job. Using application forms
has the following advantages:

Comparing like with like is easier. CVs can be time-consuming and may not provide the
information required

They provide the basis for an initial sift, and then for the interview

The standard of completion can be a guide to the candidate's suitability, if writing and
presentation skills are essential to the job; however, be aware of the possibility of
disability discrimination

They provide a record of qualifications, abilities and experience as stated by the

applicant.

Care also needs to be taken over some less positive aspects of application forms:

There is a temptation to use application forms to try to extract too much information,
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e.g. motives, values and personality characteristics. The form should concentrate on the
experience, knowledge and competencies needed for the job

some people may dislike filling in forms and so be put off applying for the job. Some
very experienced people may find the form inadequate, whilst those with little in the way
of qualifications or experience may be intimidated by large empty spaces on the form

Application forms add another stage, and therefore more time, to the recruitment
process. Some candidates may be lost if they can obtain work elsewhere more quickly

Application forms may inadvertently be discriminatory. For instance, to require a form

to be filled out 'in your own handwriting', where written English is not relevant to the job,
may discriminate against those for whom English is not their first language, or who may
not have well-developed literacy skills.

Any information such as title (marital status), ethnic origin or date of birth requested for
monitoring purposes (e.g. for compliance with the legal requirements and codes of
practice on race, sex, disability and age discrimination) should be clearly shown to be for
this purpose only, and should be on a separate sheet or tear-off section. Such information
need only be provided on a voluntary basis. Medical information should also be obtained
separately and kept separate from the application form.

All applications should be promptly acknowledged.

Selecting the best candidate

Whatever form the applications take, there may be a need to separate them before moving
on to the interview stage. Such a separation serves to match the applicants as closely as
possible to the job and person specification and to produce a shortlist of people to
interview. To avoid any possibility of bias, such saperation should be undertaken by two
or more people, and it should involve the direct line manager/supervisor as well as
personnel. The separating stage can also help the organization by providing feedback on
the advertising process and the suitability of the application form. It can also identify
people who might be useful elsewhere in the organization. If references or medicals are to
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be taken up before the invitation to interview stage, it should be made clear on the
application form/information pack sent to the applicant.

Some jobs require medicals to be given at the commencement of employment, and

employers may seek preliminary information on a separate medical questionnaire at the
time of recruitment. This applies mainly in driving work and industries where there is an
exposure to certain chemicals.

If your organization believes that pre-employment health screening is necessary, you

must make sure it is carried out in a non-discriminatory way: for instance, do not single
out disabled people for medical assessment. If a report from any individuals doctor is
sought, then permission must be given by the individual, and they have the right to see
the report

The candidates who best match the specifications may then be invited for interview. The
invitation letter should tell candidates that they should advise the organization in advance
if any particular arrangements need to be made to accommodate them on arrival or during
the interview; for instance, ramp access or lighting levels. The invitation letter should
also clearly state whether the organization will pay the candidates reasonable travel
expenses for the interview.

Who makes the decision?

In some companies there will be a personnel or human resource specialist who will
undertake most of the separating and short listing. It is very important that the line
manager/supervisor for the job also be involved, both at the job and person specification
stage and at the interview stage. The final selection will thus normally be a joint decision,
except in those very small companies where only a line manager/supervisor is available
to do the recruitment of staff. Gaining the commitment of the imEngineering te
manager/supervisor by involving them in the selection process can be vital to ensuring
that the new employee is settled successfully into the organization. It may be useful both
for the candidates to see the environment in which they would be working, and, if they
are to be part of a team, for the current team members to meet the candidate.
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Selection techniques

There is a variety of methods available to help in the selection process - including

interviews, tests (practical or psychometric), assessment centers, role plays and team
exercises, to name a few. Usually a range of methods will be used by the organization
depending on the type of job to be filled, the skills of the recruiter and the budget for
recruitment.

Interviews

Most jobs are filled through interviews. The interview has two main purposes - to find
out if the candidate is suitable for the job, and to give the candidate information about the
job and the organization. Every candidate should be offered the same opportunities to
give the best presentation of themselves, to demonstrate their suitability and to ask
questions of the interviewer.

A structured interview designed to discover all relevant information and assess the
competencies of the applicant is an efficient method of focusing on the match between
job and candidate. It also means that there is a consistent form to the interviews,
particularly important if there are a number of candidates to be seen.

Unstructured interviews are very poor for recruiting the right person. The structured
interview is most likely to be effective in obtaining specific information against a set of
clearly defined criteria. However, not every manager is skilled at interviewing, and may
not be able to judge efficiently the applicant's skills and competencies. Ideally all
interviewers should receive training, including the equal opportunities aspects of
recruitment and the relevant legislation.

Interviews need not be formal. The length and style of the interview will relate to the job
and the organization. Some vacancies may call for a formal interview panel, some for a
less formal, one-to-one interview. The interviewer(s) should consider the job and the
candidates when deciding on the nature of the interview.
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All interviews, whether formal or informal, need careful preparation if they are to be
successful. Each candidate should leave with a sense of being treated well and fairly and
having had the opportunity to give of their best.

Preparing the interview

The interviewer should prepare by:

Reading the application form, job and person specifications to identify areas which need
further exploration or clarification Planning the questions. In some interviews it is
appropriate to ask only one or two questions to encourage the candidate to talk at length
on certain subjects. In others it may be better to ask a series of short questions on several
different areas. If there is more than one interviewer, different people can cover different
topics, e.g. job knowledge, training, qualifications. Do not ask for personal information or
views irrelevant to the job. Do not ask potentially discriminatory questions such as 'Are
you planning to have children in the next few years?'

* being ready for the candidates' questions, and trying to anticipate what additional
nformation they may seek.

Conducting the interview

Conduct the interview in an environment that will allow candidates to give of their best.
Arrange for there to be no interruptions, divert telephone calls, welcome the candidate(s),
and show them cloakroom facilities, etc.

If possible, let the candidate have a brief tour of the place of work. This is particularly
useful in the case of people new to the job market (school-leavers, returning men and
women), who may have little or no experience of what to expect in a workplace. It may
also prove valuable in offering an additional opportunity to assess the candidates
interaction with possible colleagues.

Consider whether any adjustments need to be made to accommodate an interviewee who

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has indicated a disability on the application form - it is easy to overlook simple
adjustments that may be reasonable to make:

Candidates with hearing impairment may not only need to be able to clearly see the
interviewer as they are talking, but may need communication support if they are not to be
placed at a disadvantage

Is there an alternative to steps for access to the building? Can the interview take place
elsewhere, where access might be easier for someone with a physical disability?

It is common that both interviewer and candidate are nervous. Thorough preparation will
help both of you. Be careful not to fill silences by talking too much - the aim of the
interview is to draw information from the candidate to decide if they would suit the job.
The candidate should do most of the talking.

Nevertheless, the interviewer will want to encourage candidates to relax and give of their
best in what is, after all, a somewhat unnatural setting. It is important to keep the
conversation flowing, and the introductions and initial 'scene-setting' can help all parties
settle to the interview.

The following pointers may be helpful in conducting the interview:

Introduce yourself (and other interviewers if present); this also gives the candidate time
to settle down

Give some background information about the organization and the job - this helps
everyone to focus on the objective

Structure the questions to cover all the relevant areas, and don't ask too many 'closed'
questions. Open-ended questions (i.e. ones that cant be answered just by a yes or no
answer) will encourage the candidate to speak freely - they often begin 'what', 'why',
'when' or 'how'

Avoid leading questions

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Listen, and make brief notes as necessary on salient points

Have a time frame and keep to it, allowing sufficient time for candidates to ask any
questions they might have

Make sure the candidate is familiar with the terms and conditions of the job, and they
are acceptable. If not, and the candidate is the best one for the job, then some negotiation
may be necessary

*Be careful to avoid inadvertent discrimination

Tell the candidate what will happen next and when to expect to hear from the
organization.

Practical tests

If the job involves practical skills, it may be appropriate to test for ability before or at the
time of interview. This is generally acceptable for manual and word processing skills, but
less useful for clerical and administrative posts. Telephone skills are increasingly in
demand, and candidates for telesales/call centre work will almost invariably be asked to
undertake a practical test. Any tests must, however, be free of bias and related to the
necessary requirements of the job. Consideration in giving any tests must include the
objectives of such a test, the efficiency of the method selected, the numbers of candidates
(and vacancies), the costs and benefits of such method.

Psychometric and psychological tests, including bio-data

There are numerous tests commercially available which can assist in measuring aspects
of personality and intelligence such as reasoning, problem solving, decision making,
interpersonal skills and confidence. Although many large organizations have used them
for a number of years, they are not widely used, and some tests are considered
controversial - for instance, those that assess personality. Any organization considering
the use of psychometric or psychological tests should refer to the guides available, and
make sure they have the need, skills and resources necessary.
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Tests should never be used in isolation, or as the sole selection technique. Where a
decision is made solely on the automatic processing of personal data, an applicant may
require that the organization must reconsider any rejection or make a new decision on
another basis.

Bio-data (short for biographical data), is a questionnaire format with multiple choice
answers. The questions are of a biographical nature and answers are scored according to
the scoring key developed by the employer. In general bio-data is successfully used only
by really large employers, who have a large throughput of applicants. Use of bio-data,
like other tests, needs careful control to avoid any possibility of discrimination or
invasion of privacy.

Think carefully before using any test - is it actually necessary for the requirements of the
job? Is the test relevant to the person/job specification? What is the company policy about
using tests, storing results and giving feedback to the candidate? Marking criteria must be
objective, and the record sheets should be retained for Data Protection.

Assessment centres, role plays and team exercises

Assessment centres are often used by large organizations making senior management or
'fast-stream' graduate appointments. Exercises, sole and group, may take place over a few
days, normally in a residential setting. The individual may also be required to make
presentations and to take part in role-plays or team events.

Making the decision

Decide whom to employ as soon as possible after the interview/test/assessment. Use of a

structured scoring system helps here, particularly one that is based on the applicants'
competencies, and helps avoid the pitfalls of stereotyping, making snap judgments, and
'mirror-image' effects (that is, a subconscious subjectivity - looking for similarities to
oneself in the candidate). Structured scoring allows the organization to weight some
elements or competencies if desired, and to compare a candidate's score with the job
specification 'ideal' score - although care must be taken when considering the results that
a high overall score doesnt mask a low score in a crucial area.
 24
Write up notes imEngineering tely after the interview - recording relevant answers and
detail. This is not only for the decision-making process but also to provide feedback to
the candidate if requested. which will enable the candidate to ask to see interview notes
where they form part of a 'set' of information about the candidate - for instance, the
application form, references received and so on, or the full personnel file if the candidate
is already working for the organization..

Inform all the applicants of the outcome as soon as possible, whether successful or
unsuccessful. Keep in touch if the decision is delayed.

Try to give positive feedback to unsuccessful candidates on any aspects they could
reasonably improve for future success. It is sensible to maintain a favorable view of the
organization among the applicants - there may be future job vacancies for which they
would be suitable and for which you would wish them to apply. Failure to get one job
does not necessarily mean unsuitability for other jobs with the organization. You may
want to keep CVs or applications on file for future matching. Also bear in mind that
applicants and their families may be your customers as well as potential employees, so it
makes business sense to treat them fairly and courteously.

References and checking

State on the application form when any references will be sought, and do not approach a
current employer unless the candidate has given express permission. If references are
sought, they will be most effective if you include a job description with the request, with
structured, relevant questions that will enable you to gain accurate further information
about the candidate's abilities. Do not ask for personal information about the applicant.
Remember too that completing a reference takes time and proper consideration, so only
seek such references if you believe they are necessary and appropriate. A simple form
confirming dates of employment, capacity and particular skills may be satisfactory.

The holding of particular qualifications, training or licenses may be important to the job,
and it is reasonable to ask candidates for proof. If checks on such qualifications are to be
 25
made, it is good employment practice to make sure the applicant knows, and that copies
of any relevant documents will be held on their personnel file.

The timing of reference and qualification checks is variable. It is often the case that
references are taken up at shortlist or offer stage, and the candidate may be asked to bring
documentary evidence of qualifications to the interview. Job offers are sometimes made
'subject to satisfactory references being received', but this is not advisable. The referee
may simply fail to provide any kind of reference. There is no legal requirement to do so.
Or a referee may wrongly indicate the applicant is unsuitable, in which case if the offer is
withdrawn on those grounds, the organization could face legal action by the applicant.
The organization needs a policy of what to do in circumstances such as the non-supply of
a reference - an initial 'probationary' period might be an acceptable way of proceeding.

The offer

Once the successful candidate is identified, and any necessary references and checks
completed, send out an offer letter. This is preferable to telephoning the candidate, as a
letter enables the specifics of the job to be re-stated, with the terms and conditions, any
pre-conditions (e.g. subject to exam success), or post-conditions (e.g. subject to a
satisfactory probation period).

Remember that the employment contract is a legal one, and exists even before the
candidate has commenced employment. The offer letter should set out the following
points:

The job title and the offer of that job

Any conditions (pre or post) that apply to the offer

The terms of the offer - salary, hours, benefits, pension arrangements, holiday
entitlement, place of employment, etc

The date of starting, and any probationary period

What action the candidate needs to take, e.g. returning a signed acceptance of the offer,
agreement to references, any date constraints on acceptance
 26
If the letter is to form part of the contract of employment, it should say so. Alternatively
it could form the main terms and conditions of employment - a written statement required
by law to be issued to employees within two months of them starting work.

Preparing for the new employee

Once the candidate has accepted the job, the organization must then prepare for the new
employee's arrival and induction. Failure to attend to this can create a poor impression
and undo much of the positive view the candidate has gained throughout the recruitment
and selection process. A good induction program reinforces positive first impressions and
makes new employees feel welcome and ready to contribute fully.

COMPANY PROFILE

THE COMPANY.

Larsen & Tubro is Indias fourth largest company in the private sector. For more
than five decades L&T has held leadership position in designing, manufacturing,
installing plant and equipment for vital industries-food, chemical, petrochemical,
fertilizer, cement, steel, nuclear and thermal power generation. L&T also supports
Indias space programme by manufacturing rocket motor casings.

L&Ts range of activities includes shipping, manufacture of switchgear, petrol

pumps, valves, electronics, computer peripherals, cement and a comprehensive
range of construction services.

Today the focus is on turnkey projects demanding innovative technology. The

company has spent half a century developing the expertise. Its strength lies in its
largely diversified range of products and services, the commitment of its people and
its ability to absorb technology from collaborations worldwide.

L&T has been manufacturing petrol pumps for 25 years. Thousands of L&T
petrol pumps serve motorists on Indias roans and highways. These pumps are
installed at the worlds highest service station at Leh, Ladakh (India) at 3658
 27
meters. This installation has the unique distinction of being featured in the Guinness
Book of World Records.

Over 8,000 petrol pumps have been exported to several countries. They are used
by leading companies like SHELL, BP, CALTEX, TOTAL.

Around 1,000- 1,500 pumps of each type are manufactured per month and
12,000 pumps per annum. The volume of production is 5 crores per month and
around 80-90 crores per annum.

The Mission
The companys mission is to provide Equipment, Sales and Services for dispensing
petroleum products to oil industry, distributors and consumers in India and abroad. They
shall retain their market leadership and grow by providing the best value for money to
their customers through:

Enhanced product reliability

Prompt after sales service
Faster introduction of state-of-art product
Effective communication

VISION
L&T shall be a professionally-managed Indian Multinational, committed to total
consumer satisfaction and enhancing shareholder value. L&T-ites shall be an innovative,
entrepreneurial and empowered team constantly creating value and attaining global
benchmarks. &T shall foster a culture of caring, trust and continuous learning while
meeting expectations of employees, stakeholders and society.

Performance Appraisal System

 28
Performance planning and assessment is of utmost importance to any human resource
development system. A good performance assessment system is a strategic tool towards
achieving the objectives of the organization and at L & T it forms the basis for employees
training and development, future progression as well as increments to remuneration
packages.

With a view to bringing about a performance driven culture within the organisation, we
have an annual objective oriented performance appraisal system, which is implemented
uniformly across the L & T group of companies

Objective

o To assess the current level of job performance

o Counsel and address employees on areas of improvement

o Assess training and development needs

o Identify potential for undertaking higher responsibility

o Develop a system of performance-based rewards

Principle

o Cascading of organizational goals and objectives

o Specific objectives of each member

o Involvement of all parties in the decision making process

o Explicit time period

o Performance evaluation and feedback

The Process
 29
The Performance Management System is based on specific performance objectives,
which are jointly determined by subordinates and their superiors and progress towards
these objectives is periodically reviewed. Rewards are granted based on progress
towards achieving these goals. The Performance Appraisal System comprises of the
following steps:-

o Setting objectives / targets for the current year

o Mid year self assessment

o Annual review

o Setting objectives for next year

TRAINING

Human Capital is a crucial asset to our industry and more than anything else, is an
important business driver. Hence we at L & T believe that training, like all organisational
development processes cannot be a function of time, but rather is an ongoing continuous
process. Training needs of the employees are identified from a skills-gap analysis carried
out as part of the employees performance appraisal system, career plan or succession
plan. Based on an employee's identified training needs, employees are sent to training
programmes or programmes are arranged in-house, following which their performance on
the job is monitored.

L & T is also into a long-term general management education for employees in order to
nurture internal leadership. Cultural interventions are planned to promote the values &
desired behaviours among employees. We are also planning a pioneering concept called
"Training Scorecard", whereby each employee's development will be mapped through a
scorecard, to be used for his entire career with L & T.

RECRUITMENT POLICY

Recruitment policy of any organization is derived from the personnel policy of the same
organization. In other words the former is a part of the latter. However, recruitment policy
 30
by itself should take into consideration the governments reservation policy, policy
regarding sons of soil, etc., personnel policies of other organizations regarding merit,
internal sources, social responsibility in absorbing minority sections, women, etc.
Recruitment policy should commit itself to the organisations personnel policy like
enriching the organisations human resources or servicing the community by absorbing
the retrenched or laid-off employees or casual/temporary employees or dependents of
present/former employees, etc.

The following factors should be taken into consideration in formulating recruitment

policy. They are:-

Government policies

Personnel policies of other competing organizations

Organisations personnel policies

Recruitment sources

Recruitment needs

Recruitment cost

Selection criteria and preference

 31

RECRUITMENT- Matching the of the organization & applicants

IMPACT OF PERSONNEL POLICIES ON RECRUITMENT POLICIES

Recruitment policies are mostly drawn from personnel policies of the organization.
According to Dale Yodar and Paul D. Standohar, general personnel policies provide a
wide variety of guidelines to be spelt out in recruitment policy. After formulation of the
recruitment policies, the management has to decide whether to centralize or decentralize
the recruitment function.

CENTRALISED V/s DECENTRALISED RECRUITMENT

Recruitment practices vary from one organization to another. Some organizations like
commercial banks resort to centralized recruitment while some organizations like the
Indian Railway resort to decentralized recruitment practices. Personnel department at the
central office performs all the functions of recruitment in case of centralised recruitment
and personnel departments at unit level/zonal level perform all the functions of
recruitment concerning to the jobs of the respective unit or zone.
 32
MERITS OF CENTRALISED RECRUITMENT

Average cost of recruitment per candidate/unit should be relatively less due to

economies of scale.

It would have more expertise available to it.

It can ensure broad uniformity among human resources of various units/zones in

respect of education, skill, knowledge, talent, etc.

It would generally be above malpractices, abuse of powers, favouritism, bias, etc.

It would facilitate interchangeability of staff among various units/zones.

It enables the line managers of various units and zones to concentrate on their
operational activities by relieving them from the recruiting functions.

It enables the organization to have centralised selection procedure, promotional

and transfer procedure, etc.

It ensures the most effective and suitable placement to candidates.

It enables centralised training programmes which further brings uniformity and

minimizes average cost of staff.

MERITS OF DECENTRALISED RECRUITMENT

The unit concerned concentrates only on those sources/places wherein normally

gets the suitable candidates. As such the cost of recruitment would be relatively
less.

The unit gets most suitable candidates as it is well aware of the requirements of
the job regarding culture, traditional, family background aspects, local factors,
social factors, etc.

Units can recruit candidates as and when they are required without any delay.
 33
The units would enjoy freedom in finding out, developing the sources, in selecting
and employing the techniques to stimulate the candidates.

The unit would relatively enjoy advantage about the availability of information,
control and feedback and various functions/processes of recruitment.

The unit would enjoy better familiarity and control over the employees it recruits
rather than on employees selected by the central recruitment agency.

Both the systems of recruitment would suffer from their own demerits. Hence, the
management has to weigh both the merits and demerits of each system before making a
final decision about centralizing or decentralizing the recruitment. Alternatively
management may decentralize the recruitment of certain categories of employees
preferably middle and top level managerial personnel and centralize the recruitment of
other categories of employees preferably lower level positions in view of the nature of
the jobs and suitability of those systems for those categories of positions. The
management has to find out and develop the sources of recruitment after deciding upon
centralizing or decentralizing the recruitment function.

RECRUITING OR RETAINING

L & T Ltd is an internationally reputed electronics firm. It attracted employees from

internationally reputed institutes and industries by offering high salaries, perks, etc. It had
advertised for the position of an Electronics engineer some years back. Nearly 150
candidates working in various electronics firm applied for the job. Mr. Sashidhar, an
Electronics Engineer Graduate from Indian Institute of Technology with 5 years of
working experience in a small electronics firm was selected among those interviewed.
The interview board recommended an enhancement in his salary by Rs.500 more than his
present salary at his request. He was very happy and was congratulated by his previous
employer for his brilliant interview performance and good luck.

Mr. Sashidhar joined the L & T with great enthusiasm and also found his job to be quite
comfortable and challenging one. He found that his colleagues and superiors were
friendly and co-operative. But this didnt last long. After one year of his service, he
 34
slowly learnt about a number of unpleasant stories about the L & T, management, the
superior-subordinate relations, rate of employee turnover, etc. But still he decided to
continue with the promise that he made in the interview. He wanted to please and change
the attitude of management through his performance, commitment and dedication.
Looking at his great contributions and efforts, the management got the impression that he
is well settled will remain in the L & T for a long time. After sometime they all started
taking undue advantage of him and overloaded him with multifarious jobs and thereby
ridded over him. As a result, his freedom in deciding and executing was cut down to size;
his colleagues started assigning their responsibilities to him. Consequently, there were
imbalances in his family, social and organization life.

It was quite surprising to the general manager to see the resignation letter of Mr.
Sashidhar one fine morning. The general manager failed to convince him to withdraw his
resignation. The general manager wanted to appoint a committee to go into the matter
imEngineering tely, but dropped the idea later so that the L & Ts image doesnt get
spoiled.

ANALYSIS

Thus, from this case study it is clear that retaining is much more important than
recruiting. Whats the use and benefits of recruiting quality employees if they cannot be
retained by the organization in a proper manner. The purpose of recruitment is fulfilled
when the employees selected from a pool of qualified applicants are retained in the L & T
by keeping them satisfied in all aspects. They must be provided with better working
conditions, better pay scales, incentives, recognition, promotion, bonus, flexible working
hours, etc. They should treat the employees as co-owners and partners of the L & T.

SOURCES OF RECRUITMENT

The sources of recruitment may be broadly divided into two categories: internal sources
and external sources. Both have their own merits and demerits. Lets examine these.
 35
Internal Sources:-

Persons who are already working in an organization constitute the internal sources.
Retrenched employees, retired employees, dependents of deceased employees may also
constitute the internal sources. Whenever any vacancy arises, someone from within the
organization is upgraded, transferred, promoted or even demoted.

External Sources

External sources lie outside an organization. Here the organization can have the services
of : (a) Employees working in other organizations; (b) Jobs aspirants registered with
employment exchanges; (c) Students from reputed educational institutions; (d)
Candidates referred by unions, friends, relatives and existing employees; (e) Candidates
forwarded by search firms and contractors; (f) Candidates responding to the
advertisements, issued by the organization; and (g) Unsolicited applications/ walk-ins.

Merits and Demerits of Recruiting people from Within

Merits Demerits

1) Economical: The cost of recruiting 1) Limited Choice: The organization is

internal candidates is minimal. No
expenses are incurred on advertising.
2) Suitable: The organization can pick the
right candidates having the requisite
skills. The candidate can choose a right 2)
vacancy where their talents can be fully
utilized.
3) Reliable: The organization has the
knowledge about suitability of
forced to select candidates from a
limited pool. It may have to sacrifice
quality and settle down for less
qualified candidates.
Inbreeding: It discourages entry for
talented people, available outside an
organization. Existing employees may
fail to behave in innovative ways and
inject necessary dynamism to
a
 36
candidate for a position. Known devils enterprise activities.
are better than unknown angels! 3) Inefficiency: Promotions based on
4) Satisfying: A policy of preferring length of service rather than merit,
people from within offers regular may prove to be a blessing for
promotional avenues for employees. It inefficient candidate. They do not work
motivates them to work hard and earn hard and prove their worth.
promotions. They will work with 4) Bone of contention: Recruitment from
loyalty commitment and enthusiasm. within may lead to infighting among
employees aspiring for limited, higher
level positions in an organization. As
years roll by, the race for premium
positions may end up in a bitter race.

The merits and demerits of recruiting candidates from outside an organization may be
stated thus:

Merits and Demerits of External sources of Recruitment

Merits Demerits
Wide Choice: The organization has the Expenses: Hiring costs could go up
freedom to select candidates from a large substantially. Tapping multifarious sources
pool. Persons with requisite qualifications of recruitment is not an easy task either.
could be picked up. Time consuming: It takes time to
Infection of fresh blood: People with advertise, screen, to test and test and to
special skills and knowledge could be hired select suitable employees. Where suitable
to stir up the existing employees and pave ones are not available, the process has to be
the way for innovative ways of working. repeated.

Motivational force: It helps in motivating De-motivating: Existing employees who

internal employees to work hard and have put in considerable service may resist
compete with external candidates while the process of filling up vacancies from
seeking career growth. Such a competitive outside. The feeling that their services have
atmosphere would help an employee to not been recognized by the organization,
 37
work to the best of his abilities. forces then to work with less enthusiasm

Long term benefits: Talented people could and motivation.

join the ranks, new ideas could find Uncertainty: There is no guarantee that the
meaningful expression, a competitive organization, ultimately will be able to hire
atmosphere would compel people to give the services of suitable candidates. It may
out their best and earn rewards, etc. end up hiring someone who does not fit and
who may not be able to adjust in the new
setup.

LITERATURE REVIEW

The following are the most commonly used methods of recruiting people.

INTERNAL METHODS:

1. Promotions and Transfers

This is a method of filling vacancies from within through transfers and promotions.

A transfer is a lateral movement within the same grade, from one job to another. It may
lead to changes in duties and responsibilities, working conditions, etc., but not necessarily
salary. Promotion, on the other hand, involves movement of employee from a lower level
position to a higher level position accompanied by (usually) changes in duties,
responsibilities, status and value. Organisations generally prepare badli lists or a central
pool of persons from which vacancies can be filled for manual jobs. Such persons are
usually passed on to various departments, depending on internal requirements. If a
person remains on such rolls for 240 days or more, he gets the status of a permanent
employee as per the Industrial Disputes Act and is therefore entitled to all relevant
benefits, including provident fund, gratuity, retrenchment compensation.

2. Job Posting

Job posting is another way of hiring people from within. In this method, the organisation
publicises job opening on bulletin boards, electronic method and similar outlets. One of
 38
the important advantages of this method is that it offers a chance to highly qualified
applicants working within the L & T to look for growth opportunities within the L & T to
look for growth opportunities within the L & T without looking for greener pastures
outside.

3. Employee Referrals

Employee referral means using personal contacts to locate job opportunities. It is a

recommendation from a current employee regarding a job applicant. The logic behind
employee referral is that it takes one to know one. Employees working in the
organization, in this case, are encouraged to recommend the names of their friends,
working in other organizations for a possible vacancy in the near future. In fact, this has
become a popular way of recruiting people in the highly competitive Information
Technology industry nowadays. Companies offer rich rewards also to employees whose
recommendations are accepted after the routine screening and examining process is
over and job offers extended to the suggested candidates. As a goodwill gestures,
companies also consider the names recommended by unions from time to time.

External (direct) Methods

Campus Recruitment

It is a method of recruiting by visiting and participating in college campuses and their

placement centres. Here the recruiters visit reputed educational institutions such as IITs,
IIMs, colleges and universities with a view to pick up job aspirants having requisite
technical or professional skills. Job seekers are provided information about the jobs and
the recruiters, in turn, get a snapshot of job seekers through constant interchange of
information with respective institutions.

A preliminary screening is done within the campus and the short listed students are then
subjected to the remainder of the selection process. In view of the growing demand for
young managers, most reputed organizations (such as Hindustan Lever Ltd., Proctor &
 39
Cable, Citibank, State Bank of India, Tata and Birla group companies) visit IIMs and IITs
regularly and even sponsor certain popular campus activities with a view to earn goodwill
in the job market. Advantages of this method include: the placement centre helps locate
applicants and provides resumes to organizations; applicants can be prescreened;
applicants will not have to be lured away from a current job and lower salary
expectations. On the negative front, campus recruiting means hiring people with little or
no work experience.

The organizations will have to offer some kind of training to the applicants, almost
imEngineering tely after hiring. It demands careful advance planning, looking into the
placement weeks of various institutions in different parts of the country. Further, campus
recruiting can be costly for organizations situated in another city (airfare, boarding and
lodging expenses of recruiters, site visit of applicants if allowed, etc.).

If campus recruitment is used, steps should be taken by human resource department to

ensure that recruiters are knowledgeable concerning the jobs that are to be filled and the
organizations and understand and employ effective interviewing skills. Guidelines for
campus recruiting: companies using college campuses as recruitment source should
consider the following guidelines:

Identify the potential candidates early: The earlier that candidate with top
potential can be identified, the more likely the organization will be in a position to
attract them.

Employ various means to attract candidates: These may include providing

research grants; consulting opportunities to faculty members, funding university
infrastructural requirements, internships to students, etc. in the long run these will
enhance the prestige of the L & T in the eyes of potential job seekers.

Use effective recruitment material: Attractive brochures, films, computer

diskettes, followed by enthusiastic and effective presentations by L & T officials,
correspondence with placement offices in respective campus in a friendly way
will help in booting the L & T image in the eyes of the applicants. The L & T must
 40
provide detailed information about the characteristics of entry level positions,
especially those that have had a major positive impact on prior applicants
decisions to join the L & T.

Offer training to campus interviews: Its better to devote more time and resources
to train on campus interviewers to answer specific job related questions of
applicants.

Come out with a competitive offer: Keep the key job attributes that influence the
decisions of applicants such as promotional avenues, challenging assignments,
long term income potential, etc., while talking to candidates.

Indirect methods:-

Advertisements:-

These include advertisements in L&T papers; trade, professional and technical journals;
radio and Engineering ; etc. in recent times, this medium has become just as colourful,
lively and imaginative as consumer advertising. The ads generally give a brief outline of
the job responsibilities, compensation package, prospects in organizations, etc. this
method is appropriate when (a) the organization intends to reach a large target group and
(b) the organizations wants a fairly good number of talented people who are
geographically spread out. To apply for advertised vacancies lets briefly examine the
wide variety of alternatives available to a L & T - as far as ads are concerned:

L&T paper Ads: Here it is easy to place job ads without much of a lead time. It has
flexibility in terms of information and can conveniently target a specific geographic
location. On the negative side, L&T paper ads tend to attract only those who are
actively seeking employment at that point of time, while some of the best candidates
who are well paid and challenged by their current jobs may not be aware of such
openings. As a result, the L & T may be bombarded with applications from a large
number of candidates who are marginally qualified for the job adding to its
administrative burden. To maintain secrecy for various reasons (avoiding the rush,
sending signals to competitors, cutting down expenses involved in responding to any
 41
individual who applies, etc.), large companies with a national reputation may also go
in for blind-box ads in L&T papers, especially for filling lower level positions. In a
blind-box ad there is no identification of the advertising organization. Job aspirants
are asked to respond to a post office box number or to an employment firm that is
acting as an agent between the job seekers and the organization.

Engineering and radio ads: These ads are more likely to each individual who are not
actively seeking employment; they are more likely to stand out distinctly, they help
the organization to target the audience more selectively and they offer considerable
scope for designing ads creatively. However, these ads are expensive. Also, because
the Engineering or radio is simply seen or heard, potential candidates may have a
tough time remembering the details, making application difficult.

Third Party Methods

Private Employment Search Firms:-

As search firm is a private employment agency that maintains computerized lists of

qualified applicants and supplies these to employers willing to hire people from the list
for a fee. Firms like Arthur Anderson, Boble and Hewitt, ABC consultants, SB
Billimoria, KPMG; Ferguson Associates offers specialized employment-related services
to corporate houses for a fee, especially for top and middle level executive vacancies. AT
the lower end, a number of search firms operate providing multifarious services to both
recruiters and the recruitees.

Employment Exchanges:-

AS a statutory requirement, companies are also expected to notify (wherever the

Employment Exchanges Act, 1959, applies) their vacancies through the respective
Employment Exchanges, created all over India for helping unemployed youth, displaced
persons, ex-military personnel, physically handicapped, etc. AS per the Act all employers
are supposed to notify the vacancies arising in their establishments form time to time
with certain exemptions to the prescribed employment exchanges before they are filled.
 42
The Act covers all establishments in public sector and nonagricultural establishments
employing 25 or more workers in the private sector. However, in view of the practical
difficulties involved in implementing the provisions of the Act (such as filing a quarterly
return in respect of their staff strength, vacancies and shortages, returns showing
occupational distribution of their employees, etc.) many organizations have successfully
fought court battles when they were asked to pick up candidates from among those
sponsored by the employment exchanges.

Gate Hiring and Contractors:-

Gate hiring (where job seekers, generally blue collar employees, present themselves at
the factory gate and offer their services on a daily basis), hiring through contractors,
recruiting through word-of-mouth publicity are still in use despite the many
possibilities for their misuse in the small scale sector in India.

Unsolicited Applicants / Walk-ins:-

Companies generally receive unsolicited applications from job seekers at various points
of time; the number of such applications depends on economic conditions, the image of
the L & T and the job seekers perception of the types of jobs that might be available etc.
Such applications are generally kept in a data bank and whenever a suitable vacancy
arises, the L & T would intimate the candidates to apply through a formal channel. One
important problem with this method is that job seekers generally apply to number of
organizations and when they are actually required by the organizations, either they are
already employed in other organizations or are not simply interested in the position.

Alternatives to Recruitment:-

Since recruitment and selection costs are high (search process, interviewing agency fee,
etc.) firms these days are trying to look at alternatives to recruitment especially when
market demand for firms products and services is sluggish. Moreover, once employees
are placed on the payroll, it may be extremely difficult to remove them if their
performance is marginal. Some of the options in this regard may be listed thus:
 43
Evaluation of Alternative Sources

Companies have to evaluate the sources of recruiting carefully looking at cost, time,
flexibility, quality and other criteria before earmarking funds for the recruitment
process. They cannot afford to fill all their vacancies through a particular source. To
facilitate the decision making process in this regard, companies rely on the following:

Time lapse data: They show the time lag between the dates of requisition for manpower
supply from a department to the actual date of filling the vacancies in that department.
For example, a L & Ts past experience may indicate that the average number of days
from application to interview is 10, from interview to offer is 7, from offer to acceptance
is 10 and from acceptance to report for work is 15. Therefore, if the L & T starts the
recruitment and selection process now it would require 42 days before the new employee
joins its ranks. Armed with this information, the length of the time needed for alternative
sources of recruitment can be ascertained before pinning hopes on a particular source
that meets the recruitment objectives of the L & T.

Yield ratios: These ratios indicate the number of leads / contacts needed to generate a
given number of hires at a point at time. For example, if a L & T needs 10 management
trainees in the next six months, it has to monitor past yield ratios in order to find out the
number of candidates to be contacted for this purpose. On the basis of past experience, to
continue the same example, the L & T finds that to hire 10 trainees, it has to extend 20
offers. If the interview-to-offer is 3:2, then 30 interviews must be conducted. If the
invitees to interview ratios are 4:3 then, as many as 40 candidates must be invited.
Lastly, if contacts or leads needed to identify suitable trainees to invite are in 5:1 ratio,
then 200 contacts are made.

Surveys and studies: Surveys may also be conducted to find out the suitability of a
particular source for certain positions. For example, as pointed out previously, employee
referral has emerged as popular way of hiring people in the Information Technology
industry in recent times in India. Correlation studies could also be carried out to find out
the relationship between different organizational positions. Before finally identifying the
sources of recruitment, the human resource managers must also look into the cost or
 44
hiring a candidate. The cost per hire can be found out by dividing the recruitment cost by
the number of candidates hired.

SELECTION

The size of the labour market, the image of the L & T, the place of posting, the nature of
job, the compensation package and a host of other factors influence the manner of
aspirants are likely to respond to the recruiting efforts of the L & T. Through the process
of recruitment the L & T tries to locate prospective employees and encourages them to
apply for vacancies at various levels. Recruiting, thus, provides a pool of applicants for
selection.

Definition

To select mean to choose. Selection is the process of picking individuals who have
relevant qualifications to fill jobs in an organisation. The basic purpose is to choose the
individual who can most successfully perform the job from the pool of qualified
candidates.

Purpose

The purpose of selection is to pick up the most suitable candidate who would meet the
requirements of the job in an organisation best, to find out which job applicant will be
successful, if hired. To meet this goal, the L & T obtains and assesses information about
the applicants in terms of age, qualifications, skills, experience, etc. the needs of the job
are matched with the profile of candidates. The most suitable person is then picked up
after eliminating the unsuitable applicants through successive stages of selection process.
How well an employee is matched to a job is very important because it is directly affects
the amount and quality of employees work. Any mismatched in this regard can cost an
organisation a great deal of money, time and trouble, especially, in terms of training and
operating costs. In course of time, the employee may find the job distasteful and leave in
frustration. He may even circulate hot L&T and juicy bits of negative information
about the L & T, causing incalculable harm to the L & T in the long run. Effective
election, therefore, demands constant monitoring of the fit between people the job.
 45

Recruitment Process at L & T

Selection is usually a series of hurdles or steps. Each one must be successfully cleared
before the applicant proceeds to the next one. The time and emphasis place on each step
will definitely vary from one organisation to another and indeed, from job to job within
the same organisation. The sequence of steps may also vary from job to job and
organisation to organisation. For example some organisations may give more importance
to testing while others give more emphasis to interviews and reference checks. Similarly
a single brief selection interview might be enough for applicants for lower level positions,
while applicants for managerial jobs might be interviewed by a number of people.
 46

Steps in Selecting Process

Reception

L & T is known by the people it employs. In order to attract people with talents, skills and
experience L & T has to create a favourable impression on the applicants right from the
stage of reception. Whoever meets the applicant initially should be tactful and able to
extend help in a friendly and courteous way. Employment possibilities must be presented
honestly and clearly. If no jobs are available at that point of time, the applicant may be
asked to call back the personnel department after some time.

Screening Interview
 47
A preliminary interview is generally done at L & T to cut the cost of selection by
allowing only eligible candidates to go through the further stages in selection. A junior
executive from the Personnel Department may elicit responses from the applicants on
important items determining the suitability of an applicant for a job such as age,
education, experience, pay expectations, aptitude, location, choice etc. this courtesy
interview as it is often called helps the department screen out obvious misfits. If the
department finds the candidate suitable, a prescribed application form is given to the
applicants to fill and submit.

Application Blank

Application blank or form is one of the most common methods used to collect
information on the various aspects of the applicants academic, social, demographic,
work related background and references. It is a brief history sheet of employees
background, usually containing the following things:

Personal data (address, sex, telephone number)

Marital data

Educational data

Employment Experience

Extra-curricular activities

References and Recommendations

Usefulness of Application Blank or Form

Application blank is highly useful selection tool, in that way it serves three important
purposes:

1. It introduces the candidate to the L & T in a formal way.

 48
2. It helps the L & T to have a cross-comparison of the applicants; the L & T can
screen and reject candidates if they fail to meet the eligibility criteria at this stage
itself.

3. It can serve as a basis to initiate a dialogue in the interview.

Selection Testing

In this section let examine the selection test or the employment test that attempts to asses
intelligence, abilities, personality trait, performance simulation tests including work
sampling and the tests administered at assessment centres- followed by a discussion about
the polygraph test, graphology and integrity test.

A test is a standardized, objective measure of a persons behaviour, performance or

attitude. It is standardised because the way the tests is carried out, the environment in
which the test is administered and the way the individual scores are calculated- are
uniformly applied. It is objective in that it tries to measure individual differences in a
scientific way giving very little room for individual bias and interpretation. Over the
years employment tests have not only gained importance but also a certain amount of
inevitability in employment decisions. Since they try to objectively determine how well
an applicant meets the job requirement, most companies do not hesitate to invest their
time and money in selection testing in a big way. Some of the commonly used
employment tests at L & T are:

Intelligence tests

Aptitude tests

Personality tests

Achievement tests

Miscellaneous tests such as graphology, polygraphy and honesty tests.

 49
1. Intelligence Tests: These are mental ability tests. They measure the incumbents
learning ability and the ability to understand instructions and make judgements. The
basic objective of such test is to pick up employees who are alert and quick at
learning things so that they can be offered adequate training to improve their skills for
the benefit of the organization. These tests measure several abilities such as memory,
vocabulary, verbal fluency, numerical ability, perception etc. Eg. Standford-Binet
Test, Binet-Simon Test, The Wechsler Adult Intelligence Scale are example of
standard intelligence test

2. Aptitude Test: Aptitude test measure an individuals potential to learn certain skills-
clerical, mechanical, mathematical, etc. These tests indicate whether or not an
individual has the capabilities to learn a given job quickly and efficiently. In order to
recruit efficient office staff, aptitude tests are necessary. An aptitude tests is always
administered in combination with other tests like intelligence and personality tests as
it does not measure on-the-job-motivation

3. Personality Test: Of all test required for selection the personality tests have
generated a lot of heat and controversy. The definition of personality, methods of
measuring personality factors and the relationship between personality factors and
actual job criteria has been the subject of much discussion. Researchers have also
questioned whether applicants answer all the items truthfully or whether they try to
respond in a socially desirable manner. Regardless of these objections, many people
still consider personality as an important component of job success.

4. Achievement Tests: These are designed to measure what the applicant can do on the
job currently, i.e., whether the testee actually knows what he or she claims to know. A
typing test tests shows the typing proficiency, a short hand tests measures the testee
ability to take dictation and transcribe, etc. Such proficiency tests are also known as
work sampling test. Work sampling is a selection tests wherein the job applicants
ability to do a small portion of the job is tested. These tests are of two types; Motor,
involving physical manipulations of things(e.g., trade tests for carpenters, electricians,
plumbers) or Verbal, involving problem situation that are primarily language-oriented
 50
or people-oriented(e.g., situational tests for supervisory jobs). Since work samples are
miniature replicas of the actual job requirements, they are difficult to fake. They offer
concrete evidence of the proficiency of an applicant as against his ability to the job.
However, work sample tests are not cost effective and every candidate has to be
tested individually. It is not easy to develop work samples for each job. Moreover, it
is not applicable to all levels of the organisation

5. Simulation Tests: Simulation exercise is a tests which duplicate many of the

activities and problems an employee faces while at work. Such exercises are
commonly used while hiring managers at various levels in an organisation. To asses
the potential of a candidate for managerial positions assessment centres are
commonly used.

6. Assessment Centre: An assessment centre is an extended work sample. It uses

procedures that incorporate group and individual exercises. These exercises are
designed to stimulate the type of work which the candidate will be expected to do.
Initially a small batch of applicants comes to the assessment centre (a separate room).
Their performance in the situational exercise is observed and evaluated by a team of
6-8 assessors. The assessors judgement on each exercise are complied and combined
to have a summary rating for each candidate being assessed.

Selection interview

Interview structure

The structure of an interview is based on the degree of control exerted by the interviewer
as to the predictability of what questions are asked and what information is sought. When
there is specific informational needs, then a more structured approach may be used.

Unstructured interviews are unplanned, non-directed, uncontrolled, unformatted,

bilateral communications and flexible. They require skills in questioning and
probing.
 51
Semi-structured interviews are pre-scheduled, directed but flexible, major topic
areas are controlled and there is a

Structured interviews are pre-planned, interviewer directed, standardised, pre-

formatted and inflexible. They have a full structure and use highly-designed,
closed questions. They assume a consistent format will get consistent responses.

Interview types

There are four common type of selection interview:

Situational interviews use situation-specific questions based on job and look at

hypothetical performance. They are conducted by specialists: psychologists or
trained people.

Job-related interviews ask about past behaviour on job. They are typically
conducted by HR or managers.

Psychological interviews assess personality traits. They are conducted by

work/organizational psychologists.

Competency interviews widen psychological interviews to include competencies

such as interpersonal skills, leadership and other identified key competencies.

Interviews may involve a varying number of people. One-to-one interviews are

common, although there are benefits for using multiple interviewers, for example
where one person asks the questions and the other observes in a more detached
'third person' position. This objective position can look for body language and
other subtleties which the person questioning may miss.

Behavioral interviews

Behavioral interviews assume that past behaviour is likely to predict future

behaviour, and the more evidence there is of a previous pattern then the more
likely it is that it will be repeated in the future.
 52
The interview is developed with Job Analysis and Critical Incident Technique of
effective and ineffective performance, through which a range of performance
dimensions are devised that indicate critical categories and which provide basis
for detailed question themes.

The interviewer then pays particular attention to past behaviours in critical

categories and also probes for motivations behind behaviours.

Variations include Behavioral Patterned Description Interviews (BPDIs),

Behavioral Events Interviews and Criterion Referenced Interviews.

Situational interview

Situational interviews are based on Latham's Goal-Setting Theory, which assumes

intent precedes actions. There is a focus on future (vs. past of behavioural
methods).

The situational interview is developed by the use of Critical Incidents to devise

rating scale of behaviours. The costs can be high at around $1000 per question.

The interviewer asks what the person would do in theoretical situations and
assesses their response against the criteria and rating scale.

A new variant of situational interviews is the multimodal form, focusing on self-

presentation, vocabulary assessment, biographical questions and other situational
aspects.

Situational interviews tend to reduce the chance of discrimination as they offer all
candidates the same scenarios and evaluate them against the same criteria.
Candidates also prefer them, as they seems fairer, but it still limits their control
over proceedings.

Medical test are:

the medical test relates specifically to the particular duties and responsibilities of
the job
 53
the specific physical attributes required for the job are accurately identified

the attributes required for the job are reasonable in all the circumstances

ways of accommodating people without these attributes have been considered

any facilities or services required by applicants with disabilities are provided if it

does not cause unjustifiable hardship to do so

any assessment of a person's ability to perform the inherent requirements of the

job is made after these facilities or services have been provided

the test only assesses current ability and does not attempt to predict any future
deterioration. (The pre-employment medical assessment however, can be used at a
later stage to determine any health deterioration, eg. to determine hearing loss in
relation to an industrial deafness claim).

JOB REFERENCES

The #1 reason a qualified job applicant may not get the JOB OFFER is that when your
prospective employer conducted a job reference check with your former employer, the
former employer gave a negative job reference. This negative job reference might have
been in the form of your previous boss:

Badmouthing You!
Blackballing You!

Slandering You!

Or simply Giving You a Bad Reference!

Don't let an employer pass you up for a job due to a bad job reference! We will reference
check your previous employers, finding out EXACTLY what your former boss will say
about you. We can then give you strategies to counteract a BAD REFERENCE!

Difference between Work Sample method and Assessment Centre

 54
WORK SAMPLE ASSESSMENT CENTRE

Suitable for routine, repetitive jobs
with visible outcomes
Takes a few minutes to test the
applicant
Evaluated by one supervisor
Can be done on location where the
applicant performs a small segment
of the job
Usually completed on one applicant
at a time
Suitable for managerial jobs, the
outcomes are not behaviourally
observable
Takes days to conduct various
exercise
Evaluated by a team of trained
observers
Requires a separate facility. The
centres are conducted for a variety
of task segments( that may not be
the real job) that may be included in
the real job

Usually performed on groups of

applicants at the same time

Evaluation of Assessment Centre Technique:

The assessment centre technique has a number of advantages. The flexibility of form and
content, the use of variety of techniques, standardised way of interpreting behaviour and
pooled assessor judgements accounts for its acceptance as a valuable selection tool for
managerial jobs. It is praised for content validity and wide acceptance in corporate
circles. By providing a realistic job preview, the techniques helps an candidate make an
appropriate career choice. The performance ratings are more objective in nature and
could be used for promotions and career development decisions readily. However, the
method is expensive to design and administer. Blind acceptance of assessment data
without considering other information on candidates (past and current performance) is
always not advisable.
 55
7. Graphology Test: Graphology involves using a trained evaluator to examine the
lines, loops, hooks, stokes, curves and flourishes in a persons handwriting to assess
the persons personality and emotional make-up. The recruiting L & T, may, for
example, ask the applicants to complete the application forms and write about why
they want a job. These samples may be finally sent to graphologist for analysis and
the result may be put use while selecting a person. The use of graphology, however, is
dependent on the training and expertise of the person doing the analysis. In the actual
practice, questions of validity and just plain skepticism have limited in use.

8. Polygraph (Lie-Detector) tests: the polygraph records physical changes in the body
as the tests subject answers a series of questions. It records fluctuations in respiration,
blood pressure and perspiration on a moving roll of graph paper. The polygraph
operator forms a judgement as to whether the subjects response was truthful or
deceptive by examining the biological movements recorded on the paper. Critic,
however, questions the appropriateness of the polygraphs in establishing the truth
about an applicants behaviour. The fact is that the polygraph records the biological
reaction in response to stress and does not record lying or even conditions necessarily
acL & Ting lying. Is it possible to prove that the responses recorded by the polygraph
occur only because a lie has been told?. Since they invade the privacy of those tested,
many applicants vehemently oppose the use of polygraph as a selection tool.
 56

RESEARCH METHODOLOGY
 57
RESEARCH METHODOLOGY

The purpose of the methodology is to describe the research procedure. This includes
overall research design, the sampling procedure, the data collection method, and the
analysis procedures and methods.

In this study of recruitment and selection practices of L & T Ltd. descriptive type of
research has been done for collecting the primary data. It includes surveys and fact
finding enquiries of different kinds. The major purpose of descriptive research is
description of the state of affair as it exists at present. Moreover the researcher has no
control over the variables under study; he can only report what is happening or what has
happened.

Study design:

Primary data, which has been collected by descriptive research, was based on the
structured questionnaires filled up by the sample employees. For secondary data
collection method the help of various reference books have been taken which are
mentioned in bibliography and also by way of surfing through the company website.

Sample size:

Out of total universe, 50 respondents have been taken for convenience. Here, employees
are selected randomly and interviewed. An in-depth interview is also conducted with the
Human Resource Head.

Sampling design:

We would use the Probability Sampling method in designing of sample. This is simple
random line of sampling. Any one of the lot can be chosen. Here, everyone has a fair and
equal chance of being selected.
 58
In probability sampling, the randomly selected people were given a questionnaire for
filling the desired information.

My research will mainly based on information given by my external guide,. It is also

based on information collecting through primary and secondary data. Primary data
through questionnaire and secondary data will be collected through Internet, Various
magazines, L&T paper articles, books. Besides these I also use various Descriptive,
Qualitative and Quantitative methods in my research.

Sampling Methodology

Sampling Unit Customer and Marketing team of L & T

Sampling Technique Questionnaire, pie-charts, tables

Sampling Area Delhi

Size 50
 59
FINDING AND ANALYSIS

1) According to you, a Manpower Programme of L & T should be designed to

This question gives us insight in the L & T Manpower programmed that out of our
sample size of 50 employees. 40% i.e. 20 employee feels that the Manpower programmed
is to Assimilate the employees in the organization. While 30% people out of our sample
size given their views that Manpower program may reduce anxiety.
 60
2) Which section of the Manpower process do you feel is the most important for
meeting the needs of your job in L & T ?

This question was asked to 50 employees of L & Ts to get a fair idea what employee
think about the Manpower programme in a company and what they perceive which
function is the most important for the Manpower programme?

The gathered data depicted that out of our sample of 50 people, 52% people think that a
clear understanding of JOB duties and day to day routine work is the most important
function. Also 24% people think that it is important to know about the core issues related
to the company, their vision & mission so that it helps the organisation in the long run.
 61
Only 16% employees has shown their interest in knowing the benefits which they & the
company will have from this Manpower programme.

3) What special things should the organization provide to make new employees feel
comfortable, welcome and secure?

From this question, I got to know some interesting facts from L & T employees. I asked
50 employees that according to him/her what special things the organization should
provide to make new employee feel comfortable, welcome and secure.

The gathered data depicted that out of our sample of 50 employees,40% employee feels
that the special instruction given by the HR person have been successful in breaking the
ice & make them more comfortable, welcome and secure. Also 34% employees feels that
a better work area sounds more comfortable, welcoming & secure.
 62
4) What things according to you would new employees need to know about the
work environment that would make them comfortable?

This question was asked to 50 employees of L & Ts to know what things according to
them would they like to know about the work environment that would make them
comfortable.

The gathered data depicted that out of our sample of 50 employees, 46 % employees
think that knowing Companies policies and rules would make them more comfortable
than any other given options. Only 26% of the employees feel that knowing the names &
titles of key executives will boost their confidence.
 63

5 Working Period of Employees in the Company

WORKING PERIOD OF EMPLOYEES IN THE COMPANY

8%

19% 37%
<1
1-2 YRS
2-3 YRS
3-5 YRS

36%

The above chart depicts that most of the employees are doing service for more than 1
year. Usually the employees are young & have no past experience of any change in
recruitment.

The gathered data depicted that out of our sample of 50 employees, 37% of the
employees have completed more than 1 year of service. Similarly employees having 1-2
years of service comprises 36%. But there are only 19 % of employees who have
completed 2-3 years. The rest i.e. 8% comprised of the group of people who have been in
the organization for 3-5 year.
 64
6) Candidates Willingness to join the Company

Most of the Indian candidate looks in for the salary package and job security before
joining a company for job. All other things such as Reputation of the company, working
environment, job prospects, location of the company, career growth opportunity, are seen
either in isolation or in combination to each other as a whole as shown in the graph
below:

Factors for joining L&T

Reputation of the
33% 6% company
3% Working environment

Salary package

22% Job prospects

11% Location of the

company
Career growth
25%

The gathered data depicted that out of our sample of 50 employees, it follows that 33% of
employees feels that the most attractive reason to join the company is its salary
package.25 % of the employees joined due to the strong reputation& 22% joined for
career growth. Job prospects & location were given least importance.
 65

7) Recruitment Procedure for Candidates

From the chart it is quiet clear that the company adopts various processes for recruiting the
right candidate. Actual recruitment procedure followed by the company is by conducting
written examination followed by a group discussion and then a final interview which
comprised 40%(20 employees) of sample survey of 50 employees.

But still some candidates are also chosen through written exam & interview which
comprises 36 %(18 employees). 18%(9 employees) are selected through written only and
others comprising only 6%. These others include the reference of the existing employees
within the organization itself.

As it is private company most of recruitment is done through campus selection, the

candidates are selected by way of testing their knowledge and technical skills in their
prospective fields. For that very reason written test followed by a group discussion and a
personal interview is given most priority.

8) Eligibility Criteria for Recruitment

 66

The above chart depicts that the minimum qualification required to join the organisation
is graduation (10 %). Preference is given to candidates having a post graduation degree
with experience. From the responses given by the employees its clear that equal
preference is given to candidates who are either CAs or are having a post graduation
degree with experience ie 32%(16 employees) Fewer graduates are hired but those who
hired must have experience in the same industry. Post graduate freshers are also
preferred as most recruitments are done through campus recruitments ie 26%.
 67
9) Strategies for Retaining Employees:

4 options were given to the employees to know what the organization is doing to reduce
employee turnover ratio. These are: -

Better salary package

More benefits

Changing / Improving working conditions

Better promotion / Career Development Opportunity

Cant Say

After summarizing the entire 50 respondents the following analysis can be given:

Better salary package (10)

More benefits (8)

Changing / Improving working conditions (7)

Better promotion / Career Development Opportunity (23)

Cant say (2)

 68
10 Which are the parameters on which candidates are evaluated?

50% of the employees said that for evaluating an employee, performance is given at
most priority. The employee is checked for the quality of output.

30% of the employees said that for evaluating a candidate skill is taken into
consideration.

20% of the employees said that for evaluating the performance employees experience
in the particular department is taken into consideration.

No personal biasness is seen in the organization which reflects a healthy working

atmosphere.

11. Principle of right man on the right job is strictly followed.

 69

15% of the employees are strongly agreed that principle of right man on the right job
is strictly followed.

60% of the employees are moderately agreed that principle of right man on the right
job is strictly followed.

10% of the employees are strongly disagreed that principle of right man on the right
job is strictly followed.

10% of the employees are moderately disagreed that principle of right man on the
right job is strictly followed.

5%of the employees has no say.

 70
12: Is there any participation by the manager in planning and recruitment?

25% of the employees are strongly agreed that there is participation by the manager in
planning and recruitment.

50% of the employees are moderately agreed that there is participation by the
manager in planning and recruitment.

10% of the employees are moderately disagreed that there is participation by the
manager in planning and recruitment.
 71
CONCLUSION

Recruiting people with the right skills and qualities is essential for any organization if it is
to maintain and improve its efficiency. Not only the personnel manager but also the line
manager/supervisor has a part to play in the selection process. It is crucial that both these
people have training to enable them to carry out their roles effectively. Careful analysis of
the job to be done, and of the competencies required to do it, is necessary if the right
people are to be fitted into the right job, Having selected the best candidate for the job,
the next stage is to ensure that the new recruit is successfully integrated into the
organization through a well planned induction program.

The benefits of a good induction program are a more settled employee, a more effective
response to training, lower labour turnover, and improved industrial relations.

This project is give me these area of learning

Understanding the corporate product of the organization and the qualities in a

person required to market these products
Designing a recruitment poster for the job

Visiting campuses of various Graduate and Post-graduate colleges and get the
recruitment poster displayed on the notice board

Follow up with colleges for the candidates

Schedule the candidates for an interview and coordinate the same with the mentor

Taking first round of interview for the candidates and giving the feedback to the
mentor for the same

Reviewing the corporate salary account forms for mistakes and stamping

Visiting the corporate office and coordinating for screening of candidates

Listing the requirements on websites i.e. Naukri and Monster

 72
Short listing CVs from the various available websites

Setting up a channel of Tele callers and Promoters for various branches

Understand the induction manual and make corrections if required

Providing the selected candidates with the joining kit and collect the same duly
filled in by them

Visit the recruitment consultant (Third party) office with the team members and
understand how they are hiring.

Maintain record and database of the interviews conducted and the candidates
selected or rejected

Coordinating with the placement coordinators of various management colleges for

campus recruitments
 73
RECOMMENDATION

How to avoid & reduce candidates backing out:

If you and your candidates are in the same area it is always advisable to meet face-to-
face.
Be it on the phone or in person spent as much time as you can and dig for information
what motivates him to look for a change, professional and personal reasons, what are his
expectations in terms of money and roles, etc.
It is important to be in control when it comes to recruiter-candidate relationship. To
achieve that it is important that you conduct a thorough pre-qualifying. Get all the low-
down about his background and aspiration, et al.
Always insist on obtaining either verbally and/or in writing his/her response and
commitment to the job offer. You may do this with a direct approach or with great
subtlety. Which approach you resort to will depend on each individual or their level of
seniority you need to make the right judgment.
Constantly update him/her on the process and try keeping-in-touch on a frequent basis.

Pay close attention while talking to him/her and listen for those tones and
expressed/unexpressed concerns and look for those signs that might indicate his
intentions

.
If any of his/her words, expressions, actions gives you a sense of doubt and concern,
then drop him/her and move on. It is better to drop him/her now than later have a back
out in your hand.

Have a set of questionnaire that you can run through with him/her before proceeding to
qualify him - questionnaire that will test his seriousness and sincerity to look for a
change.
 74

Do not hesitate to ask them if they have discussed with his/her family members about
this plan to look for a job change. Especially for those who are married, please confirm
with them if they have consulted their other half.
Try and get inside your candidates mind, understand his needs and his aspiration.
Pro-actively try to cover all areas that you possibly think will be a likely point of
concern (reason for a back out) for him at a later stage and addressed them
imEngineering tely.

Some of the more counter measures that organizations can apply. These fall under
defensive and offensive tactics.

Defensive tactics

Provisional offers: Peeved by the fact that employees use their offer letter to negotiate a
higher pay elsewhere, organisations make only a provisional offer to the candidate. They
may only indicate the pay and wait for the employee to arrive on the chosen day before
they issue the formal letter. This is very common at junior levels.

Hold consultants responsible: It is quite common for organisations like L & T to hold
their recruitment consultants responsible for the employee joining or staying on for a
reasonable tenure. Many do not get paid until this happens.

Hire through referrals: Organisations believe that if the candidate is chosen through an
internal referral process, the chances of his honoring the offer are higher given the
emotional pressures. For this reason, a referral source is quite often the first choice today.

Create back ups: More risk-averse organisations are beginning to build back-up plans.
Realizing the futility of crying over spilt milk, these organisations just get on with life
and go after the next best find.

Offensive tactics
 75
Emotional connect: Most employees tend to go through a certain amount of "post-
purchase guilt", especially at senior levels. This is where the organisations can step in and
do a lot. And many do it quite elegantly.

Most important, their selection processes tend to be so compelling and executed with
such suave that it blows the mind of the prospective employee. The most senior
executives engage with the candidate, give time, and address every perceivable concern.
They start involving the employee in important decisions, invite him to key events,
meetings and even get-togethers much before he comes on board. They introduce the
employee to his prospective team. They start sending him mails and business related
information regularly.

In other words, they start occupying his mind. They make him feel special and never let
him think back on his decision. Most have nowadays even begun announcing to the
Engineering .

Life altering offer: Organisations making very strategically important hiring decisions
do not want to take even the most slender chance. They want it signed, sealed and
delivered. Not only is their process savvy. Their offer has the power to alter the life of the
prospective employee.

When you do that, you derisk the hiring process so significantly. You are capable of
taking the employee completely out of the race and eliminate even the most remote form
of competition. On the other hand, when you leave a bit of after-taste in closing the deal,
there is always a risk that the employee can look beyond you.

Make it snappy: Nothing succeeds like speed. When the organisation does its homework
and then takes the leap of faith with lightning speed, the employee has very little time to
think. Sometimes the length of the process tends to increase the anxiety for the employee,
forcing him to reconsider his decision.

In the days to come, it is will be hard to find good people and harder still to secure their
commitment to join. It can be most frustrating to say the least. You will need to adopt a
 76
combination of defensive and offensive tactics to win the game. But before you get there,
you will need to certainly decipher the psychology of prospective employees. Knowing
what makes candidates accept or reject job offers would help organisations take
appropriate measures to increase the joining rate, just as digging into the matter got Ike
more than just the knowledge of why Maggie ran away from commitment.
 77
BIBLIOGRAPHY

DeCenzo, David A and Robbins, Stephen P,: Human resource Management Prentice
Hall India Private Limited (2000)

Chabbra, T.N, Human Resource Management (2004); pp 161-191

Mamoria, C.B and Gankar, S.V: Personnel Management- Text and Cases Himalaya
Publishing House.
 78
ANNEXURE

QUESTIONNAIRE

1. According to you, a Manpower Programme of L & T should be designed to

(Select only one)

(a) Reduce anxiety (b) Promote two-way communication

(c) Promote a positive employee attitude

(d) Assimilate the employees in the organization.

2. Which section of the Manpower process do you feel is most important for
meeting the needs of your job in L & T?
(a) Organizational issues (b) employee and organization benefits
(c) Introductions (d) job duties

3. What special things should the organization provide to make new employees feel
comfortable, welcome and secure?)

(a) Desk (b) work area

(c) Equipment (d) special instructions

4. What things according to you, would new employees need to know about the
work environment that would make them comfortable?

(a) Names and titles of key executives

(b) Company policy and rules

(c) History of the company

(d) Product / services offered

5. Working Period of Employees in the Company

(a) <1 (b) 1-2 yrs

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(c) 2-3 yrs (d) 3-5 yrs

6. Candidates Willingness to join the Company

(a) Reputation of the company
(b) Working environment
(c) Salary package
(d) Job prospects

(e) Location of the company

(f) Career growth

7. Recruitment Procedure for Candidates

(a) Written exam (b) Written exam & interview

(c) Written exam, GD, interview (d) others

8. Eligibility Criteria for Recruitment

(a) Graduate (b) CA

(c)Post graduate with experience (d) Post graduate freshers

9. Strategies for Retaining Employees

(a) Better salary package (b) More benefits

(c) Better promotion/career development opportunity

(d) Improving working conditions (e) cant say

10. Which are the parameters on which candidates are evaluated?

(a) Patterned (b) Stress (c) Depth

11 Principle of right man on the right job is strictly followed.

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(a) Strongly agree (b) Moderately agree

(c) Strongly disagree (d) Moderately disagree

(e) Cant say

12. Is there any participation by the manager in planning and recruitment?

(a) Strongly agree (b) Moderately agree

(c) Strongly disagree (d) Moderately disagree

(e) Cant say