mahindra & mahindra
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ACKNOWLEDGEMENT
Concentration, dedication and application are necessary but not sufficient to
achieve my goal.
They must be awarded by guidance, assistance and cooperation of some people to
make it enable.
Many people have given their valuable time and ideas to enable me to complete my
project and project report. I am deeply indebted to all for their ideas and assistance,
and I bear the entire responsibility for any kind of weaknesses in my report, if any.
I am highly obliged to express my praise and profound thanks to Mr. Vivek
Tripathi (Reporting Officer) for his expert guidance and cooperation and also to
Ms. Neha Swati (Circle HR) for their supervision, encouragement and
valuable advice.
Lastly, I would like to thank all those, who have, directly or indirectly, helped me
in making the project.
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DECLARATION BY THE LEARNER
This is to declare that I have carried out this project work myself in part fulfillment of the
PGDBM Program of TAXILA BUSINESS SCHOOL .
The work is original, has not been copied from anywhere else and has not been submitted
to any other university/Institute for an award of any degree/diploma.
Date: Signature:
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About Mahindra & Mahindra Group
The Mahindra Group is an Indian multinational conglomerate company
headquartered at Mahindra Towers in Mumbai, India, with operations in 79
countries across the globe.
Mahindra & Mahindra limited was started on October 2, 1945 by the Mahindra
brothers alongwith a distinguished gentleman named Ghulam Mohammad. The
company was then named as Mahindra & Mohammad. It was set up as a franchise
for assembling jeeps from Willys, USA.
Following the Partition of India in 1947, Malik Ghulam Mohammad left the
company and emigrated to Pakistan where he became the first finance minister of
the new state. In 1948, Keshub Mahindra (Chairman of the company), changed the
company’s name to Mahindra & Mahindra.
By 1956, the company was listed on the Bombay Stock Exchange, and by 1969 the
company had entered the world market as an exporter of utility vehicles and spare
parts. Mahindra & Mahindra created a tractor division in 1982 and a tech division
(now Tech Mahindra) in 1986. It has continue to diversify its operations ever since
through both Joint Ventures and Greenfield Investments.
By 1994, the Group had become so diverse that it undertook a fundamental
reorganisation dividing into six strategic business units: Automotive, Farm
Equipment, Infrastructure, Trade and Financial services, Information Technology
and Automotive components. In 2002, there was a successful launch of Mahindra
Scorpio. Together with an overhaul in production and manufacturing methods,
these changes helped make the company more competitive, and since then the
Group's reputation and revenues have risen noticeably. Currently, Mahindra &
Mahindra is one of the 20 largest companies in India. In 2009, Forbes ranked
Mahindra among the top 200 most reputable companies in the world.
In January 2011, the Mahindra Group launched a new corporate brand, Mahindra
Rise, to unify Mahindra's image across industries and geographies. The brand
positions Mahindra products and services as aspirational, supporting customers'
ambitions to 'Rise.'
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With over 62 years of manufacturing experience, the Mahindra group has built a
strong base in technology, engineering, marketing and distribution which are key to
its evolution as a customer-centric organisation. The Group employs over 75,000
people and has several state-of-the-art facilities in India and overseas.
Divisions of Mahindra & Mahindra Group
1. Automotive
2. Farm Equipment
3. Banking & Finance
4. Information Technology
5. Club Mahindra Holidays
6. Mahindra Defence
7. Mahindra Aerospace
8. Infrastructure & Real Estate
International Operations of Mahindra & Mahindra
Mahindra has been marching globally and has established presence across all the
continents barring Antartica.
Our strategic operations in Eurasia, Africa and South-America and assembly plants
in Brazil and Egypt, are testimony to our determination to provide our global
customers with quality products and reliable service.
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Mahindra & Mahindra Financial Services Limited
(MMFSL)
About MMFSL
Mahindra & Mahindra financial services limited is a subsidiary of Mahindra &
Mahindra Limited, a leading tractor and utility vehicle manufacturer with over 62
years of experience in the Indian market. MMFSL(Mahindra Finance) is one of the
leading non-banking finance companies focused on providing finance for utility
vehicles, tractors and cars in the rural and semi-urban sector.
History of MMFSL
MMFSL was incorporated on January 1, 1991 as Maxi Motors Financial Services
Limited and received certificate of commencement of business on February 19,
1991. Its name was changed to Mahindra & Mahindra Financial Services Limited
on November 3, 1992. It is also registered with the Reserve Bank of India as a non-
banking Financial Corporation with effect from September 4, 1998 under Section
45IA of the Reserve Bank of India Act, 1934.
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THE VISION AND THE MISSION
The Vision
The vision of the company is as follows:
Our vision is to be the leading Rural Finance Company and continue to retain the
leadership position for Mahindra Products.
The Mission
We will be recognised as the premium provider of financial services on the basis of
our contribution to the sale of Mahindra range of vehicles, tractors, services and
help M&M protect its sale through availability of finance.
We will specialize in financing products based on applications and build on the
competence developed in its focus area. We will target all segments of vehicle
financing and deploy the skills acquired through an in-depth understanding of the
chosen product market.
We will provide products and services tailored to the needs of M&M, our most
favoured customer, and always meet their needs. In case of demand-supply
mismatch of funds, we will do everything to find a solution.
We will help M&M develop better products by providing first-hand information
received from the target market.
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Management- Board of Directors at MMFSLAt Mahindra Finance we have nine noted directors vested with the charge of
general supervision, direction and management of the operations of our company.
The primary responsibility of the Board of Directors includes:
Overseeing high standards of corporate governance and compliance with
various laws
Overseeing our financial management and approving various lines of
business
Shaping our policies and procedures
Monitoring our performance and evolving the growth strategy
Setting up counter-party and other prudential risk management limits
Setting up counter-party and other prudential risk management limits
Board of Directors Designation
Mr. Bharat N. Doshi Chairman
Mr. U. Y. Phadke Vice Chairman
Mr. Ramesh Iyer Managing Director
Mr. Dhananjay Mungale Director
Dr. Pawan Kumar Goenka Director
Mr. M. G. Bhide Director
Mr. Piyush Mankad Director
Mrs. Rama Bijapurkar Director
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Mr. Bharat N. Doshi
Mr. Bharat Doshi is a fellow member of both, the Institute of
Chartered Accountants of India and the Institute of Company Secretaries of India
and has a Master’s Degree in Law from the University of Bombay. He has
participated in the Program for Management Development at the Harvard Business
School.
Mr. Bharat joined Mahindra & Mahindra Limited (M&M) in the year 1973. He is
presently designated as Executive Director and Group Chief Financial Officer
(Group CFO), M&M. Mr. Bharat Doshi is very actively involved with the work of
several Chambers of Commerce and Industry in India and is a member of various
Expert Committees, which influence economic and business policies of the
Government. He was a member of the High Powered Expert Committee constituted
by the Ministry of Finance, Government of India, on Making Mumbai an
International Financial Centre and is a member of the SEBI (Securities and
Exchange Board of India) Committee on Disclosures and Accounting Standards
(SCODA).
Mr. Bharat Doshi was the Chairman of Expert Committee on Economic Affairs of
Bombay Chamber of Commerce and Industry (BCCI) during 1996-97. He was a
member of the Managing Committee of Bombay Chamber of Commerce &
Industry from May 2005 to May 2007. Mr. Bharat Doshi has been elected as Vice
President of Bombay Chamber of Commerce & Industry (BCCI) for the year 2008-
09.
Mr. Bharat Doshi was adjudged ‘India’s Best CFO’ by the leading business
fortnightly ‘Business Today’ (India Today Group Publication) in April 2005. He
was also conferred the 'CFO of the Year' Award, honouring financial excellence,
instituted by IMA India, an associate of The Economist Group, in December 2005.
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In November 2007, Bharat Doshi was honoured with the prestigious CNBC CFO
of the Year 2007 award.
Mr. U. Y. Phadke
Mr. U. Y. Phadke is a member of the Institute of Chartered
Accountants of India and the Institute of Company Secretaries of India and has a
Bachelor's degree in Commerce and Law.
Mr. Phadke joined Mahindra & Mahindra in 1973. He is presently designated as
President - Finance, Legal and Financial Services Sector and Member of Group
Management Board.
Mr. Phadke is the Vice-Chairman of Mahindra & Mahindra Financial Services
Limited. Mr. Phadke has been Chairman of the Direct Taxes Committee of the
Bombay Chamber of Commerce and Industry and on the Accounting Standards of
Board of the Institute of Chartered Accountants of India. He is a Member on the
`National Committee on Professional Services' of CII & he is on the Governing
Council of Indian Association of Corporate CFOs and Treasurers. He is a Member
of the Working Group on ‘Employee Benefits’ constituted by the International
Accounting Standards Board. He is also a Special Invitee to the meetings of
National Advisory Committee on Accounting Standards constituted under the
Companies Act.
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Mr. Ramesh Iyer
Mr. Ramesh Iyer has been the Managing Director of the Company
since 2001 and is associated with the Company since its inception. Mr. Iyer, a
commerce graduate and an MBA from Mumbai University was working with
Ashok Leyland Finance Limited prior to joining the Company. He is also a member
of core committee of Finance Industry Development Council. Mr. Ramesh Iyer has
been awarded with the Udyog Rattan from The Institute of Economic Studies, New
Delhi and has also been presented with ‘Rashtriya Udyog Pratibha Award’ from the
Council for Economic Growth & Research, Pune in December, 2007. Presently he
is the Chairman of Banking & Finance Committee of Bombay Chamber of
Commerce & Industry.
Mr. Dhananjay Mungale
Mr. Dhananjay Mungale is a Chartered Accountant and a Law
graduate. He has spent a major part of his career in corporate and investment
banking in India and Europe with Bank of America and DSP Merrill Lynch Ltd. He
is presently acting as advisor to various corporations in India and Europe. He is on
the Board of various public and private limited companies.
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Dr. Pawan Kumar Goenka
Dr. Pawan Kumar Goenka is a Mechanical Engineer with a B. Tech
from the Indian Institute of Technology, Kanpur, and a Ph.D. from Cornell
University, USA. He has also done an Advanced Management Programme (AMP)
at the Harvard Business School.
Dr. Pawan Goenka joined the Mahindra Group in October 1993 as General
Manager – Research & Development, after a successful career spanning 14 years
with General Motors, USA. Under his leadership, Mahindra & Mahindra launched
a slew of new products such as Pick-Up, Marshal, Armada 98, Bolero and
Loadking. His best acknowledged contribution is his leadership of the Scorpio
project, which brought laurels to Mahindra & Mahindra, both in India and abroad.
He became Executive Vice President – Product Development in September 2001,
and was promoted to Chief Operating Officer of the Automotive Sector in April
2003. Dr. Goenka took over as President of the Automotive Sector on 26th
September 2005. Among other achievements, he has also played a key role in the
formation of both the Renault and International Truck joint ventures.
Dr. Goenka is an internationally acknowledged scientist – manager with several
citations to his credit. He received the Distinguished Alumni Award from the
Indian Institute of Technology, Kanpur in 2004 and is a Fellow of the Society of
Automotive Engineers (SAE) and of the Indian National Academy of Engineers.
He has been honored by General Motors through the Charles L McCuen
Achievement Award twice and the Extraordinary Accomplishment Award. Dr.
Goenka is the Vice President of SIAM Executive Council and Chairman of the
Technical Committee. He holds the position of President of the ARAI Governing
Council and is a past-President of SAE India.
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Mr. M. G. Bhide
Mr. M. G. Bhide is a M.A., CAIIB. He was the Chairman &
Managing Director of Bank of India. He was also the Managing Director & Group
Executive (National Banking) of State Bank of India. He has also served on various
Committees constituted by the Reserve Bank of India.
Mr. Piyush Mankad
Mr. Piyush Mankad did his post graduation in History from St.
Stephen’s College, University of Delhi, and obtained a post graduation diploma in
Development Studies with Distinction from Cambridge, U. K.
Mr. Mankad is a retired civil servant. He was the Managing Director, State
Industrial Development and Investment Corporation and ex-officio Secretary to the
State Government. He has also held important positions including those of
Counsellor Economic, Embassy of India – Tokyo, Controller of Capital Issues –
Ministry of Finance, Director General – National Productivity Council of India,
Secretary – Departments of Industrial Development and Public Enterprises,
Secretary – Industrial Policy and Planning, Chairman – Foreign Investment
Promotion Board, Secretary Information and Broadcasting, Finance Secretary –
Government of India and Executive Director (India) and Board Member – Asian
Development Bank, Manila. He was also a member of Telecom Commission,
Space Commission and Atomic Energy Commission and is on the Board of IIM
Ahmedabad, IIM Calcutta and IIM Bangalore. He was a Member of the Investment
Advisory Committee of the Army Group Insurance Fund, India. He also served on
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the Asia Pacific Advisory Committee of Barclays Capital U.K. He is a Trustee of
the Vodafone India Foundation. He is also a Member of the Governing Body -
Lady Shriram College for Women, New Delhi and Association of Indian
Diplomats.
Mrs. Rama Bijapurkar
Ms. Rama Bijapurkar graduated with a B.Sc. (Hons.) degree in
Physics from Miranda House, Delhi University and a Post Graduate Diploma in
Management from Indian Institute of Management, Ahmedabad. She is an
independent market strategy consultant and also a visiting faculty and member,
Board of Governors of the Indian Institute of Management, Ahmedabad. She has
over 30 years of experience in industries such as advertising, marketing and
consultancy. She has previous work experience with McKinsey & Company,
MARG (now AC Nielsen India), and been a full time consultant with Hindustan
Unilever Ltd.
Mrs. Rama Bijapurkar has published extensively on emerging market and
consumer related issues and is the author of the book titled “Winning in the Indian
Market – Understanding the Transformation of Consumer India”. She serves as an
Independent Director on the Boards of various reputed Companies.
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Values of MMFSL
a) Effective Communication:
It is the essence for building a successful and healthy environment.
b) 110% Effort:
The organisation needs all its employees to contribute to the success an dgrowth of
the company for which employees need to give their 110% effort.
c) Quality of Contribution:
The company operates on the basis of being a team of equals, where the quality of
contribution being made by our colleagues is all that matters.
d) Assertiveness:
We expect every employee to be assertive and have enough confidence in you to be
positive, while at the same time understanding other people’s point of view.
e) Team Spirit:
The organisation intends to do its best so as to encourage an enjoyable working
atmosphere, proven to encourage good team spirit.
f) Flexibility:
It is a way to define how and when work gets done and how careers are organized.
The company encourages the employees to have flexibility in their work.
g) Sound Health:
The company believes in “sound mind in a sound body” and hence requests its
employees to maintain good mental and physical health. The company shall strive
to provide a work environment and welfare policies promoting the same.
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Strengths:
In depth knowledge of the rural and semi-urban market.
The relationship with Mahindra & Mahindra.
The branch network.
The association with dealers.
The client base.
The ability to borrow at competitive rates.
Business of MMFSL:
Mahindra Finance has a wide range of products and services, with something to
suit everyone’s needs. Right from finance for two wheelers, tractors, farm
equipment, cars and utility vehicles to commercial vehicles and construction
equipment, it also have a group of experts providing investment advice, surveying
available market products and choosing the most suitable product based on
customer requirements.
a) Utility Vehicle Loans:
MMFSL provide finance for a range of Mahindra Utility Vehicles. It also provides
trade advance facilities for dealers.
It is constantly trying to further enhance their services, and better reach their
approach. So that they can help their customer’s dreams of owing a Mahindra UV
come true, in the easiest and most convenient manner.
Their wide reach, speed and efficiency, flexible documentation process and
capability of our executives to take quick, smart decisions ensure that the process
of obtaining a loan is a quick and smooth one.
b) Tractor Loans:
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With the majority of our country’s population engaged in farming and agriculture,
our Farm Equipment loans help rural India surge ahead in a big way.
They understand the needs of rural India and customize loans to specific
requirements. This is seen in their flexible repayment options, including quarterly
and half-yearly repayment schedules, as well as our extensive network of branches,
enabling one to contact them anywhere. All this helps to ensure that the entire
process of obtaining a loan remains smooth and simple.
So, obtaining a Mahindra tractor and trailer is just a few steps away, with Mahindra
Finance.
It’s just one of the ways in which they bring Indians closer to their dreams.
c) Car Loans:
Mahindra Finance is a preferred financier for M&M as well as all other small car
manufacturers in the country like Hindustan Motors, Hyundai, General Motors,
Maruti Udyog limited.
They want to make sure that they can help customer’s dream of owning their
favourite car come true, in the most easiest and convenient manner.
d) Two Wheeler Loans:
With their flexible, convenient finance options, simple documentation, quick
processing and competitive interest rates, owning a two wheeler is just a few steps
away. Also, their extensive branch network in over 400 locations, makes it possible
for their customers to contact them easily and obtain a loan, wherever they are.
So, whether their customers want that moped, motorbike, scooter, they help their
customers with customised solutions and make the whole process as easy as child’s
play.
e) Refinance:
With their easy and quick finance options, customers will now have the power to
own a car soon. Be it a marriage in the family or a new job requiring travel,
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customers will be able to meet all their personal needs and obtain the vehicle of
their dreams.
It provide fast and easy finance for the purchase of used cars, utility vehicles, used
commercial vehicles and used tractors. It also provide loans against an existing car,
utility vehicle, commercial vehicle and tractors.
Customer identify the vehicle and M&M help them out.
f) Commercial Vehicle Loans:
At Mahindra Finance, we offer commercial vehicle and construction equipment
loans among many others. These vehicles include trucks, buses, tippers, excavators,
light commercial vehicles and more. We fund new vehicles as well as old, and will
even top-up existing loans.
With our simple documentation and quick turn-around time, customers can be sure
that we provide them the best and most flexible financing solutions to meet their
business requirements.
g) Investment Advisory Services-Mutual Fund Distribution:
When it comes to investing, everyone has unique needs based on their own
objectives and risk profile. While many investment avenues such as fixed deposits,
bonds etc. exist, it is usually seen that equities typically outperform these
investments, over a longer period of time. Hence, M&M is of the opinion that,
systematic investment in equity allows one to create substantial wealth.
However, investing in equity is not as simple as investing in bonds or bank
deposits, because only proper allocation of portfolio gives maximum return with
moderate risk, and this requires expertise and time.
M&M Investment Advisory Services help customers invest their money in equity
through different Mutual Fund Schemes. It ensures the best for its clients by
identifying products best suited to their individual needs.
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h) Personal Loans:
Mahindra Finance launches Personal Loans.
Now customers will never have to bother about the extra amount needed to fulfill
all their needs. They can get financial assistance for Marriage Related Expenses,
Children’s Higher Education, Medical Treatment, Consumer Durables, House
Furniture, Agricultural Needs, Exotic Needs or just squash a Temporary Cash
requirement. Whatever be the need, Personal Loans from Mahindra Finance are the
solution.
Milestones
1993
Commenced financing of M&M Utility Vehicles.
1995
Opened our first branch outside Mumbai, at Jaipur
1996
Commenced financing M&M dealers for the purchase of tractors
1998
Launched pilot project for retain tractor financing
1999
Commenced tractor retail financing in rural and semi-urban areas
2001
Total Assets crossed Rs. 10 billion
2002
Commenced financing of non-M&M vehicles Received Tier II debt from International Finance Corporation Made our first securitisation transaction of Rs. 434.8 million
2004
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Received a long-term credit rating of AA+/Stable Opened a branch in Port Blair Listing of non-convertible debentures on BSE on the wholesale debt market
segment Securitisation of tractor assets of Rs. 256.6 million Commenced Insurance Broking business through subsidiary Mahindra
Insurance Brokers Ltd.(MIBL)
2005
Tied up with HPCL Made MIBL our wholly owned subsidiary
2006
Issued our IPO Tied up with Maruti Udyog Limited Launched our marketing campaign Reached a new benchmark with 400 Branches
2007
Commenced Home Loans Business through our subsidiary Mahindra Rural Housing Finance Limited
Commenced Financing non Mahindra commercial vehicles Commenced financing of personal Loans
2008
Preferential allotment of shares to Standard Chartered Private Equity Ltd. & Axon Private Equity Ltd.
Received 12.5% equity participation from NHB for our Subsidiary Mahindra Rural Housing Finance Ltd.
2009
Commenced Fixed Deposits Program
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RECRUITMENT
It is the process of finding and attracting capable applicants for employment .It is
the process to discover 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 working force.
Definitions & Meanings:
1. According to Edwin B. Flippo,” Recruitment is the process of searching the
candidates for employment and stimulating them to apply for the jobs in the
organisation.”
2. According to Taylor & Collins, ”Recruitment includes the set of activities
undertaken by the organisation for the primary purpose of identifying a
desirable group of applicants, attracting them into its employee ranks, and
retaining them at least for the short-term.
3. It is the process of locating and encouraging potential applicants to apply
for existing or anticipated job openings.
4. Recruitment refers to the process of attracting , screening and selecting
qualified people for a job at an organisation or firm.
5. It aims at :
a) Attracting a large no. of qualified applicants who are ready to take up
the job if it is offered.
b) Offering enough information for unqualified persons to self-select
themselves out.
6. It enables the management to select suitable employees for different jobs. It
involves listing of suitable candid ates for consideration of selection for
various jobs.
7. It may be defined as the process to discover sources of manpower to meet
the requirements or the staffing schedule and to employ effective measures
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for attracting that manpower in adequate number to facilitate the selection
of an efficient working force.
Sources of recruitment:
1. Internal sources
2. External sources
Internal Sources External Sources
1. Transfer
2. Promotions
3. Recalling of laid-off employees
4. Job posting
1. Campus recruitment
2. Management consultants
3. Advertisements
4. Gate hiring & Contractors
5. Unsolicited applicants/ Walk-ins
6. Internet recruitment
7. Employment exchanges
8. Recommendations
9. Head Hunters
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Internal sources
Persons who are already working with the organisation constitute internal sources.
Whenever any vacancy arises, someone from within the organisation is upgraded,
promoted, transferred or even demoted. In those cases, Organisations need to
develop their existing manpower adopting suitable training & development
functions. Training & Development may not necessarily always ensure availability
of the best talents internally. Organisations are then compelled to recruit from
outside sources.
a) Transfer :-
It involves shifting of one employee from one job to another, one dept. to
another, or from one shift to another. It is a good source of filling vacancies
with employees from overstaffed departments or shifts. It may lead to
change in duties & responsibilities, working conditions etc. but not
necessarily salary. It involves lateral movement within the same grade.
b) Promotion s :-
It leads to shifting an employee to a higher position, carrying higher
responsibilities, facilities, status& pay. Filling vacancies in higher jobs from
within the organisation has the benefit of motivating the existing
employees. It has the great psychological impact over the employees. A
promotion at a higher level may also lead to a chain of promotions at lower
levels in the organisation.
c) Recalling of laid – off employees :-
The term lay-off means temporary separation of employees from the
employer because of the lack of work or shortage of raw materials etc.
When the situation gets normal, the demand for the labour increase and the
management can recall the employees who have been laid off.
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d) Job posting :-
It is another way of hiring people from within. In this , the organisation
publicises job openings on bulletin boards, electronic media, and similar
outlets. It offers a chance to highly qualified applicants who are working
within the company to look for growth opportunities within the company
without looking for greener pastures outside.
External sources :
It lies outside the organisation. Here the organisation can have the services of:
Employees working in their organisation
Job aspirants working with the employment exchanges
Students from reputed educational institutions
Candidates referred by unions, friends etc.
Candidates responding to advertisements, etc.
Unsolicited applications/walk-ins.
Below specified are some of the sources from which the vacancy can be filled from
outside sources.
a) Campus recruitment :-
It is a method of recruiting by visiting and participating in college campuses
& their placement centres. Job seekers are provided the 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 shortlisted students
are then subjected to the remainder of the selection process.
Advantages of this method include:
The placement centre helps locate applicants & provides resumes to
organisations.
Applicants can be pre-screened.
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Applicants will not have to be lured away from a current job
& hence lower salary expectations.
But one limitation is that, campus recruiting means hiring people
with little or no work experience. So, it will prove to be costly for the
organisations as it will have to provide some kind of training to the selected
candidates.
b) Management consultants :-
These firms help the organisations to recruit technical, professional and
managerial personnel. They specialise in middle level and top level
executive placement. They maintain data bank of the persons with different
qualifications & skills and they advertise the jobs to recruit right type of
personnel.
c) Advertisements :-
It includes ads in newspapers or trade & professional journals, radio,
television etc. Most of the senior positions in industry as well as commerce
are filled by this method. The ads generally give a brief outline of the job
responsibilities, compensation package, prospects in the organisation etc.
This method is appropriate when :
The organisation wants a fairly good number of talented people who
are geographically spread out.
The organisation intends to reach a large targeted group.
It also facilitate self-screening by the prospective candidates.
d) Gate hiring & Contractors :-
Gate hiring, where the job seekers , generally the blue collar employees,
present themselves at the factory gate & offer their services on a daily basis.
It is the direct recruitment by placing a notice on the notice board of the
enterprise, specifying the details of the jobs available. This method has the
following advantages :
It does not involve the cost of advertising the vacancies.
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It is the cheapest method to fill the vacancies.
Whenever there is rush of work or large no. of workers absent, this
source of labour may be easily used.
e) Unsolicited applicants / Walk – ins :-
Companies, generally receive unsolicited applications from job seekers at
various points of time. It, basically depends upon the image of the company,
& the applicant’s perception of the types
Of job available in the company. The co. Maintain a data bank of these
applications & whenever a job vacancy arises, it would intimate the
candidate to apply through the formal channels.
But, there is one problem with this method of recruitment, as the
job seekers generally apply to a no. of organisations and when they are
actually required by some company, either they are already employed
somewhere else or are simply not interested in the position offered.
f) Internet recruitment :-
Now a days, most of the companies have their own websites and they,
generally list their job openings on it. Internet recruiting generates fast, cost-
effective, timely responses from job applicants from different parts of the
world. After receiving of resumes, these are then converted into standard
format using the software that the co. has developed for short-listing the
candidates according to a set criteria i.e. qualifications, experience etc.
Apart from the company’s own website, there are some other sites
where the applicants can submit their resumes & potential employers can
search for the qualified candidates, such as: www.naukri.com,
www.monsterindia.com, www.timesjobs.com, etc.
But the only limitation of this method is that, the website may be
flooded with resumes from unqualified job seekers.
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g) Employment exchanges :-
As per the Employment Exchanges Act1959, all the employers are required
to notify the vacancies arising in their establishments from time to time to
the prescribed employment exchanges before they are filled. It covers all the
establishments in public sector and the non-agricultural establishments
employing 25 or more workers in the private sector.
But, with regard to the practical difficulties, involved in
implementing the provisions of this act, many organisations have
successfully fought court battles when they were asked to pick the
candidates from among those sponsored by the employment exchanges.
h) Recommendations :-
It means using personal contacts to locate job opportunities. It is a
recommendation from a current employee regarding a job applicant. The
main advantage of this method is that something about the candidate’s
background is known. Employees already associated with the co. are
encouraged to suggest or recommend some of their friends’ and relatives
names for filling up some vacancy in near future. In return, the co. give some
monetary rewards to those employees whose recommendations has been
accepted by the company, after the routine screening and examining process
is over.
To obtain the effective results, the details of referral scheme
should be given to all the levels using various means i.e. posters, e-mails,
etc. Employees should also understand that they have been entrusted with a
critical task and also, those making referrals should get quick feedback so
that they can come with more referrals. However, every attempt should be
made to ensure quality. And at last, the firm should constantly measure the
quality & performance of employees recruited through the programme.
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i) Head hunters:-
They are useful in specialised in skilled candidate working in a particular
company. An agent is sent to represent the recruiting company and an offer is
made to the candidate. This is a useful source when both the companies involved
are in the same field, and the is reluctant to take the offer since he fears that his
company is testing his loyalty.
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Difference between internal and external sources
Basis Internal sources External sources
1. Meaning It involves search of candidates
from within the organisation.
It involves finding candidates from
outside the organisation.
2. Process It is a very quick process. It is a lengthy process.
3. Cost This process is cheaper. It does not
involve any contacting the external
sources.
This process is costly as vacancies
have to be notified in newspapers etc.
4. Effect on
existing
staff
The existing staff is motivated to
improve their performance.
The existing staff feels dissatisfied if
external sources are used.
5.Choice Choice of candidates is limited. The business can hope for talented
candidates from outside.
6. Scope The scope of fresh talent is
diminished.
This means infusion of new blood and
new ideas into the enterprise.
7. Time
perspective
Internal sources help in saving time
of officials responsible for
recruitment.
External sources of recruitment are
expensive.
FACTORS AFFECTING RECRUITMENT
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The recruitment function of the organisation is affected and governed by a mix of
various internal & external forces. The internal forces or factors are the factors that
can be controlled by the organisation. And the External factors are the forces which
cannot be controlled by the organisation . The internal & external factors affecting
the Recruitment function of an organisation are :
Factors affecting recruitment are :
Internal factors :-
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Internal factors
Recruitment policyHuman resource planningSize of the firmCost of recruitmentGrowth & Expansion
External factors
Image / GoodwillSupply & DemandLabour MarketCompetitorsUnemployment ratePolitical-social-legal environment
a) Recruitment policy :-
The recruitment policy of an organisation specifies the objectives of
recruitment and provides a framework for implementation of
recruitment programme. It may involve organisational system to be
developed for implementing recruitment, programmes and
procedures by filling up vacancies with best qualified people.
Factors affecting recruitment policy are:
Organizational Objectives.
Personnel policies of the organisation & its competitors
Government policies on reservations
Preferred sources of recruitment
Need of an organisation
Recruitment costs & financial implications
b) Human resource planning :-
Effective human resource planning helps in determining the gaps
present in the existing manpower of the organisation. It also helps in
determining the number of employees to be recruited and what
qualification they must possess.
c) Size of the firm :-
The size of the firm is an important factor in the recruitment process.
If the organisation is planning to increase its operations and expand
its business, it will think of hiring more personnel, which will handle
its operations.
d) Cost to the firm :-
Recruitment incur cost to the employer, therefore, organisations try
to employ that source of recruitment which will bear a lower cost of
recruitment to the organisation for each candidate.
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e) Growth & Expansion :-
Organisations will employ or will think of employing more
personnel if it is expanding its operations.
External Factors :-
a) Supply & Demand :-
The availability of manpower both within & outside the organisation
is an important determinant in the recruitment process. If the
company has a demand for more professionals and there is limited
supply in the market for professionals demanded by the company,
then , the company will have to depend upon internal sources by
providing them special training & development programs.
b) Labour Market :-
Employment conditions i the community where the organisation is
located will influence the recruiting efforts of the organisation. If
there is surplus og manpower at the time of recruitment, even
informal attempts at the time of recruiting like notice boards display
of the requisition or announcement in the meeting etc. will attract
more than enough applicants.
c) Image & Goodwill :-
Image of the employer can work as a potential constraint for
recruitment. An organisation with positive image & goodwill as an
employer finds it easier to attract & retain employees than an
organisation with negative image. Image of the company is based on
what the company does and affected by industry. For example:-
Finance was taken up by fresher MBA’s when many finance
companies were coming up.
c) Competitors :-
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The recruitment policies of the competitors also affect the
recruitment function of the organisations. To face the competition,
many a times the organisations have to change their recruitment
policies according to the policies being followed by the competitors.
d) Unemployment rate :-
One of the factors that influence the availability of applicants is the
growth of the economy (whether economy is growing or not and its
rate). When the company is not creating new jobs, there is often
oversupply of qualified labour which in turn leas to unemployment.
e) Political-legal-social environment :-
Various government regulations prohibiting discrimination in hiring
& employment have direct impact on recruitment practices. For
Example, Government of India has introduced legislation for
reservation in employment for scheduled castes, scheduled tribes,
physically handicapped, etc. Also, Trade unions play an important
role in recruitment. This restricts management freedom to select
those individuals who it believes would be the best .
PROCESS OF RECRUITMENT
Recruitment process involves a systematic procedure from sourcing the
candidates to arranging and conducting the interviews and requires many
resources and time.
The process of recruitment involves:
a) Identifies the different sources of labour supply.
b) Assesses their ability.
c) Chooses the most suitable sources.
d) Invites applications from the prospective candidates for the vacant jobs.
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The above table represents the basic recruitment process followed by all the
organizations , though all the organisations have many different bases to select a
candidate for their organisation.
Explanation of the above process is as follows:
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Identify the vacancy
Prepare job description
Advertising the vacancy
Managing the responseShort-Listing
Arrange interviews
Conducting interviews &
Decision making
a) Identifying vacancy :-
The first step in recruitment is the identification of vacancy. Generally a
vacancy exists because of the following reasons:-
A resignation
A promotion, which has left a vacant job
Growth and expansion
The recruitment process must start with a check on whether a vacancy
actually exists, and whether there are other alternatives as opposed to recruiting a
new person.
If the vacancy has arised because of expansion and increased work
demands, it is important to ensure that the budget exists for the appointment of a
new employee. It must also be seen that whether a new employee is required
permanently or the increased work load is for a fixed period of time.
The decision of what skills are required and how many staff to employ must
be considered carefully. The goal is to place the right people, on the right job, at the
right time to ensure the success and productivity of the organisation.
b) Define the job:-
After being sure that a vacancy does exist in the organisation, the job needs
to be defined as precisely as possible, focusing on the following:-
The key functions that need to be fulfilled
The key competencies required by the employee to fulfil the roles
and duties
Other factors to decide upon include:
How urgent is it that the new employee starts with all the required
skills and experience?
To what extent is the organisation prepared to train?
Does the organisation have the time and resources to allow for the
new employee to be trained?
The nature of employment, is it a short term or permanent function?
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At the end of this point the, job has been defined and the required
competencies has been identified which will guide the selection of a
suitable applicant.
c) Define the job level:-
Once the job profile has been developed, then it must be ranked or graded
in relation to other job roles in the organisation. This process is called job
evaluation. The job evaluation systems may vary from organisation to
organisation.
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SELECTION
Selection involves a series of steps by which the candidates are screened for
choosing the most suitable persons for vacant jobs in the organisation. Selection
leads to employment of personnel and is an integral part of staffing. It facilitates
the selection of candidates who possess the ability and qualifications to perform the
jobs which have fallen vacant in the organisation. It divides the candidates for
employment into two categories:’ those who will be offered employment and those
who will not be’. This process could be called rejection since more candidates may
be turned away than those selected. That is why, selection is frequently described
as a negative process in contrast with the positive nature of recruitment.
The basic purpose of the selection process is choosing right type of
candidates to manage various positions in the organisation. In order to achieve this
purpose, a well organised selection procedure involves many steps. At each step
more and more information is obtained about the candidates so as to reject the
unsuitable candidates.
IMPORTANCE OF SELECTION
Following are some of the points which shows the benefits of selecting right kind
of people for various jobs:
1. Absenteeism & labour turnover:
Proper selection and placement of personnel go a long way towards building up a
suitable workforce. It will keep the rates of absenteeism and labour turnover low.
2. Efficiency:
Competent employees will show higher efficiency and enable the organisation to
achieve its objectives effectively.
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3. Industrial accidents:
The rate of industrial accidents will be considerably low if suitable employees are
placed on various jobs as they know very well how to use the machines effectively
an efficiently. They also make the optimum use of the resources available.
4. Job satisfaction:
When people get jobs of their taste and choice, they get higher job satisfaction.
This will build up a contended workforce for the organisation.
5. Morale:
The morale of the employees who are satisfied with their jobs is often high. And
because of this, they do their work with more of loyalty.
Comparison of Recruitment and Selection
BASIS RECRUITMENT SELECTION
1.
Meaning
It is the process of
searching candidates for
vacant jobs and making
them apply for the
same.
It is the process of selection of right type of
candidates and offering them jobs.
2. Nature It is a positive process
as more & more
candidates are sought to
be attracted.
It is a negative process as it aims at rejecting
unsuitable applicants.
3. Purpose Its purpose is to create a
pool of applicants for
various jobs in the
organisation.
But selection aims at eliminating unsuitable
candidates and ensuring most competent
people for the available vacancies.
4.
Sequence
It takes place prior to
selection.
It is done after recruitment.
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5.
Procedure
The firm notifies the
vacancies through
various sources and
distributes application
forms to candidates.
The firm asks the candidates to pass through a
number of stages such as filling of form,
employment tests, interview, medical exam etc.
6.
Contract
of service
No contractual relation
is created. Recruitment
implies communication
of vacancies only.
Selection follows recruitment and it leads to a
contract of service between the employer and
the employee.
7. Phase
of staffing
process
This is the first phase. It
envisages taking
decisions on the choice
of tapping the sources of
labour supply.
It is the second phase. It involves giving various
types of tests to the candidates and interviewing
them in order to select the suitable candidates
only.
SELECTION PROCESS
The selection process is concerned with selecting right type of candidates for
different jobs in the organisation. It involves:
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a) Obtaining information about the candidates.
b) Using information to choose the right type of people.
Selection process involves a number of steps. Each step should help in getting more
and more information about the applicants to facilitate right choice of people. The
major steps followed by modern organisations to get right type of persons are listed
below:
The points mentioned above are explained as follows:
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Preliminary Interview
Receiving Applications
Screening of Applications
Employment Tests
Employment Interview
Checking References
Medical Examination
Final Selection
1. Preliminary interview:
The preliminary interview is generally brief and it helps in eliminating the totally
unsuitable candidates. If an applicant is eliminated at this stage, the organisation
will be saved from the expenses of processing him through the remaining steps of
the selection procedure. During the course of interview, candidates are asked
questions relating to their experience, education etc. Those who come out
successfully from this interview are asked to fill the application forms.
2. Receiving applications:
An application form is designed to get a written record of candidate’s
qualifications, experience and other details. Application forms helps in securing the
necessary information about candidate’s qualifications, training, experience etc. in
his own handwriting. This all information is useful in determining the suitability of
the candidate for the concerned job.
3. Screening of applications:
This step is necessary as it helps in checking whether the candidates fulfil the
qualifications required to perform the job effectively. After the applications have
been received, these are checked properly with regards to the experience and
qualifications etc. by the screening committee. Unsuitable candidates are
eliminated at this very stage. After this, a list is prepared of the candidates to be
called for employment tests.
4. Employment tests:
These tests are widely used for judging the applicant’s suitability for the job. This
test brings out the qualities, strengths and weaknesses of individuals which could
be analysed before offering them jobs in the organisation so it must be designed in
a proper way. Also these tests should not be biased because then they will not be
the good indicators of one’s knowledge and skills and selection based on them will
be faulty. That is why, these tests should not be relied upon fully.
Individuals differ with respect to the physical characteristics, capacity, level of
mental ability, likes & dislikes and also with respect to personality traits. The
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differences among the individual candidates can be analysed with the help of
various psychological and trade tests. These tests can provide important
information about the candidate as regards his intelligence, aptitude interest,
personality, etc.
Importance of employment tests:
Employment tests have the following benefits:
i. A test is an objective and standardised sample of certain qualities. It tends
to eliminate the business in selection of personnel.
ii. Tests can identify talents of individuals which might otherwise be
overlooked.
iii. Tests reduce the cost of selection and placement because large number of
applicants can be evaluated within the least possible time.
iv. Psychological tests can measure the aptitude of candidates and predict their
success.
v. Tests provide a healthy basis for evaluating applicant’s performance. They
can compel the interviewers to think through their evaluation more
carefully.
Various types of tests available to match the characteristics of the candidates with
the requirements of the jobs advertised are as follows:
a) Intelligence tests:
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An intelligence test is used to judge the mental abilities and capacity of the
applicant. It measures the individual’s learning ability, i.e , ability to catch or
understand instructions and also the ability to take decisions. There are many
verbal and non-verbal intelligence tests constructed by psychologists for different
kind of jobs.
b) Aptitude tests:
Aptitude means the potential which an individual has for learning the skills
required to do a job efficiently. Aptitude tests measure an applicant’s capacity and
his potential for development. Aptitude tests are the most promising indices for
predicting worker’s success. There are two general types of aptitude tests:
i. Cognitive test
ii. Motor test
Cognitive test measures the mental and intellectual aptitude
Motor test measures the physical dimensions such as manual dexterity or hand –
eye coordination.
c) Achievement or proficiency tests:
Proficiency tests are those which are designed to measure the skills already acquire
by the individuals. They are also known as Occupational or trade tests. They are
used to test the level of knowledge and proficiency of an applicant to do a specific
job.
d) Interest or motivation tests:
Interest tests identify patterns of interest, that is, areas in which the individual
shows special concern, fascination and involvement. These tests would suggest
what type of jobs may be satisfying to the employees.
e) Situational or personality tests:
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Such tests are designed to observe how job applicants react to real life situations.
Personality tests probe for the qualities of the personality as a whole, the
combination of aptitude, interest and usual mood and temperament. They are
concerned with discovering clues to an individual’s value system, his emotional
reactions, maturity, etc. For example, a candidate for a managerial job may be
given a typical problem which requires on the spot decision making.
5. Employment interview:
Although applications and employment tests provide a lot of valuable information
about the candidates, still they do not provide the complete set of information
required of the applicant. Interview may be used to secure more information about
a candidate. For the selection of right types of people interview is very important.
Its objectives are to see the looks of the candidate, communication skills,
way of thinking, their conduct, temperament, their interest, presence of mind,
mental maturity etc. The main purposes of employment interview are:
a) to find out the suitability of the candidate
b) to seek more information about the candidate
c) to give the candidate an accurate picture of the job with details of terms and
conditions and some ideas of organisational policies.
This personal meeting between the panel of interviewers and the candidate may
also be used for testing the qualities and the capabilities of the candidate.
INTERVIEW
An interview is a face-to-face oral examination of a candidate by an employer. The
interview may be held at two stages:
i. Preliminary stage
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ii. Final stage
Interviewing the candidates is an important aspect of selection procedure. The final
selection is based partly on the performance of the candidate in different tests and
partly on his final interview. In the interview, the candidate has to appear before the
interviewer or a panel of interviewers. The candidate’s overall personality is judged
in the interview. It may last for 10-20 minutes. Various questions are asked from
the candidate in order to judge his ability, knowledge, capacity and so on. Usually,
it is used as a means of getting information from the candidate. It also involves
giving information that will help the applicant make up his mind about the
company.
Importance of Interview
Below given are some of the points which highlight the importance of employment
interview:
a) There is a face-to-face contact between the employer and the candidate. The
employer can assess the personality traits of the candidate.
b) The candidate can seek more information about the employer and the job. This
creates better understanding in the mind of the candidate.
c) The communication skill of the candidate can be judged in the interview. His
way of thinking can also be known.
d) Interview is important where the candidate has not to go through the
employment tests. The information contained in the application form can be
checked during the interview.
e) Many companies do not follow the elaborate selection procedure as it is costly
and time consuming. They can rely on interview if it is properly planned and
administered.
Types of interview
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Interview may be of different types as given below:
Informal interview
Formal interview
Structured Interview
Unstructured Interview
Depth Interview
Stress Interview
Board Interview
Group Interview
Sequential interview
Mixed interview
Second interview
Telephonic interview
The points mentioned above are explained as follows:
a) Informal interview:
An informal interview is an oral interview and may take place anywhere. The
employee or the manager or the personnel manager may ask a few almost
inconsequential questions like name, place of birth, name of relatives etc. either in
their respective offices or anywhere outside the plant of the company. It is not at all
planned. This is used widely when the labour market is tight or when they are
demanded badly.
b) Formal interview:
Formal interviews may be held in the employment office in a more formal
atmosphere, with the help of well-structured questions, the time and place of the
interview will be stipulated by the employment office.
c) Structured interview:
Ina structured interview the interviewer has a list of questions with answers
prepared well in advance. The candidates interviewed are asked questions only
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from the prepared list. Marks may be awarded to the candidates based on the
answer they give and thereby their suitability of the job may be assessed.
d) Unstructured interview:
In this case the interviewer does not keep any list of questions. He can ask any
question that he thinks is relevant and see how the interviewee responds.
Sometimes the interviewer may ask the candidate to express his views on the job he
has applied for, the work he did earlier, the organizations he served earlier, the
present organization and so on. The interviewer, in this kind of an interview, is a
patient listener. He does not interrupt the interviewee nor does he give his opinions
on what is stated.
e) Depth interview:
As the very name suggests depth interview attempts to know the in-depth
knowledge of the candidate in his chosen field of activity. This type of interview is
necessary where the candidates are expected to be experts in performing the job to
be assigned to them. For example, a person who is going to be appointed as the
office manager must be well versed in all aspects of office work. Similarly, a
person who is going to be employed as the labour welfare officer must be sound in
labour laws, human relations and so on.
f) Stress interview:
This kind of interview is necessary to select candidates for jobs that require
tremendous amount of patience, the capacity to overcome resistance or protest and
the mental courage to overcome stress and strain. Candidates, who are interviewed
for such jobs as those of sales representatives receptionists, public relations officers
etc., need to be subjected to a stress interview.
In a stress interview the interviewer may reach sharply to the views of the
candidate, criticize him or even try to provoke him. This he does deliberately to see
whether the candidate exercises patience and is able to overcome resistance or
protest. If the candidate fails to perform to the expected level, he may not be
considered for the post.
g) Board or panel interview:
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In this kind of an interview the candidate is interviewed simultaneously by a panel
of experts. Such an interview is necessary where the employer desires that
assessment of the candidate by a group or a team of experts is required. Each
member of the board or panel may ask questions from certain specific areas. One
interviewer may ask questions pertaining to the candidate's field of work, another
person regarding his interests and so on. The selection of the candidate will depend
on the assessment of all the board members.
h) Group interview:
In this case a group of candidates will be interviewed simultaneously. Such an
approach is normally used for the selection of management trainees. A practical
problem is given to them and each one is asked to discuss it to find a solution. The
performance of each individual in the group discussion will decide whether he will
be selected or not.
On completion of the interview process, the employer will have a list of
provisionally select candidates. The final selection is done only after checking
references and subjecting the candidates to medical examination.
i) Sequential interview: The sequential interview takes the one-to-one a step further
and involves a series of interview, usually utilising the strength and knowledgebase
of each interviewers so that each interviewer can ask his or her subject area of each
candidate, as the candidate moves from room to room.
j) Mixed interview:
In practice, the interviewer while interviewing the job seekers uses a blend of
structured and unstructured questions. This approach is called mixed interview. The
structured questions provide a base of interview more conventional and permit
greater insights into the unique differences between the applicants.
k) Second interviews:
Job seekers are invited back after they have passed the first initial interview.
Middle or the senior management generally conducts the second interview,
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together or separately. Applicants can expect more in-depth questions, and the
employer will be expecting a higher level of preparation on the art of the
candidates. Applicants should continue to research the employer after the first
interview, and be prepared to use any information gained through the previous
interview to their advantage.
l) Telephonic interview:
As its name depicts, these interviews are those which take place through telephone.
In this kind of interview it is better that you have a copy of your resume in your
hand and also if you are using your home phone then make sure that there is no
disturbance or noise from your family members. Speak a bit slower than usual. It is
crucial that you convey your enthusiasm verbally, since the interviewer cannot see
your face. If there are pauses, do not worry; the interviewer is likely taking some
notes.
6. Checking references:
Many employees request names, addresses and telephone numbers of references for
the purpose of verifying information and, perhaps gaining additional background
information on an applicant. Although listed on the application on the application
form, references are not usually checked until an applicant has successfully reached
the fourth stage of the sequential selection process.
Organisations normally seek letters of reference or telephone references.
The latter is advantageous because of its accuracy and low cost. The telephone
reference has also the advantage of soliciting immediate, relatively candid
comments and attitude can sometimes be inferred from hesitations and inflections
in speech.
It may be stated that the information gathered from references hardly
influence the selection decision. The reasons are obvious:
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a) The candidate approaches only those persons who would speak well about him
or her.
b) People may write favourably about the candidate in order to get rid of him or
her.
c) People may not like to divulge the truth of the candidate, lest it might damage or
ruin his or her career.
7. Physical/ Medical examination:
The pre-employment physical examination or medical test of a candidate is an
essential step in the selection procedure. It has three objectives:
a) It serves to ascertain the applicant’s physical capabilities to meet the job
requirements.
b) It serves to protect the organisation against the unwarranted medi-claims by the
candidate.
c) It helps to prevent the communicable diseases from entering the organisation.
A qualified medical expert appointed by the organisation or a government
employee should certify whether the candidate is physically fit to the requirements
of a specific job. A proper medical examination will ensure higher standards of
health and physical fitness of the employees and will reduce the rates of accidents,
labour absenteeism and turnover.
8. Final selection and Appointment letter:
After a candidate has cleared all the hurdles in the selection procedure, he is
formally appointed by issuing him an appointment letter. The date by which he
must join the organisation is mentioned in the letter. The broad terms & conditions
of the employment, nature of job, pay scale etc. are also an integral part of the
appointment letter.
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But now-a- days, the candidate is given the offer letter first and all the
terms & conditions are mentioned in that and he has to accept it and revert back to
the organisation and then after the completion of some months of his employment
in the organisation, then the appointment letter has been issued to him.
HR hierarchy of Mahindra& Mahindra Group
HR Hierarchy at Mahindra Finance
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Vinay Deshpande
(Vice president, HR)
Vinod Nair
Head, HR Operations
Aditi Chandra
Head, Learning & Development
Mahindra finance
Zonal HR Circle HR
Regional HR Area HR
Training at Mahindra & Mahindra Group
After crossing all the hurdles of selection process, when the candidate is finally
selected, then he will be given the offer letter of the company and he has to return
the same to the company after duly signing it. The offer letter gives all the
information regarding what is his role in the company, his joining date, respective
branch where he has to join etc.
But before the candidate joins the respective branch of the company, he has to
undertake a training which is provided by the company to all the freshers.
This training is called DRONA, and it is for a period of 5 days for all new joinees.
This training is held at Mumbai. The company bears all the expenses like,
accommodation, travelling expenditure, food etc. of all the employees who come
for this training.
In this period of 5 days, Viva’s and tests are conducted by the company and on that
basis employees are assessed as to on which level they currently stand. After the
completion of DRONA program , the employees join their respective branches.
After a period of 5 months, the company again makes an assessment of those
employees who have gone through DRONA. This time the employees have to give
presentations of what they have learnt during this period, they are required to give
several tests and viva’s again in order to prove their worth to the company.
The employees who will pass in this assessment, they will be issued the
confirmation letter of the company and from then they will be called the confirmed
employees of the company and will be given all the facilities which a confirmed
employees should get.
And, the employees who fail in this assessment, the company will give them 1
more chance to improve upon their performance.
After a period of 3 months, the employees who did not clear the previous
assessment, they will be assessed again by the company and he has to go through
various tests and other procedures and if this time he clears, then he will be
confirmed otherwise he will be terminated by the company.
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Regional HR Area HR
Facts & Findings
1. Working environment-: Working environment is an important factor to keep the
employees engages to the organization. Employees need different kind of working
environment at different levels. HR people must keep this factor in mind.
2. Performance appraisal-: Appraising performance should be done in such a way
that it does not threat the employee that any point of time. Otherwise employee
motivation and so employee engagement can come down dramatically.
3. Recognition-: Recognition is important to keep employee motivated and committed
to the organization. Different levels of hierarchy require different kind of recognition.
4. Communication-: Clear upwards and downwards communication is required for
the employee involvement in the organization. Communication barriers can create
high amount of dissatisfaction among the employees and some time it takes the form
of rumors and affect the organization badly.
5. Relationship-: Interpersonal bonding is essential for getting out of the employees
coaching and mentoring system not only developed the employee but also builds a
moral bonding for better engagement.
6. Transparency-: Transparency in the organization is required at all the levels and it
actually creates a good amount of enthusiasm especially among the middle and
bottom level of management.
7. Compensation-: Compensation is a major factor of motivation. Monetary and non-
monetary compensation can be used wisely to motivate the employees and keep the
engagement level higher.
8. Motivation-: Overall motivation of the employee depends on numerous factors and
it is a most important aspect of employee engagement.
9. Learning and growing opportunities-: this factor is especially important for the
bottom and middle level of management and it ensures long term employee
organization orientation and employee commitment.
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