STUDY OF

RECRUITMENT AND SELECTION

AT MARG LIMITED

An Project Report

Submitted in the partial fulfillment of the requirement for the award of the Diploma

in Master of Business Administration

2010-2012

Submitted By: Under the Guidance of:

Nisha Tanwar Mr. Prashant Chauhan

Dy. Manager-HR

Marg Limited

INSTITUTE OF MANAGEMENT TECHNOLOGY

CENTRE FOR DISTANCE LEARNING-GHAZIABAD

BLOSSOMS (FARIDABAD-02)

DECLARATION

This is to certify that I have completed the Project Report titled “Study of Recruitment and

Selection at Marg Limited” under the guidance of Mr. Prashant Chauhan-Dy. Manager-HR

in the partial fulfillment of the requirement for the award of the Diploma in Master of Business

Administration of Institute of Management Technology, Ghaziabad. This is an original piece of

work & I have neither copied nor submitted it earlier elsewhere.

_______________

NISHA TANWAR

PREFACE

During the past three decades the personnel function has witnessed dramatic changes. The

widespread usage of the term human resource management in place of personnel function is itself

symbolic of this change. The HR function has acquired a unique status and reputation in almost

all services sectors including banking, finance, construction, insurance, software, and telecom.

Human is the resource for an organization and therefore, should be managed effectively. A good

human resource forms an asset for an organization and so is the case with the Construction

Industry which is booming and will remain so with the continuation of the development process

especially in the developing countries.

My time at Marg Limited focused on getting a taste on how Recruitment and Selection process is

practically carried out. This report sheds light on the importance of having an effective

Recruitment and Selection Policy, the recent trends that are influencing the recruitment and

selection process of organizations and the challenges that the recruiters face during the hiring

process.

The research methodology is based on both primary data as well as secondary data. An interview

schedule was prepared to gather information on the recruitment and selection policy of the

organization. The universe consists of 4 people from the EPC-Delhi Division of Marg Limited

comprising of 3 members of recruitment department headed by the HR Head. The whole

population was considered for this study.

The major limitation to the study was the possibility of ambiguous replies due to confidentiality

of information. In the end there are few recommendations and suggestions which may benefit the

organization if looked upon seriously.

_______________

NISHA TANWAR

ACKNOWLEDGEMNET

“THANK YOU”. These two words are very less to be measured when it comes to extend my

gratitude towards all those who have made my project - a learning and a memorable experience.

I owe my sincere and whole hearted thanks to Mr. Prashant Chauhan (Dy. Manager–HR) for

providing me an opportunity to carry out my summer training in their prestigious organization

“Marg Limited” and facilitate me with a training which proves to be a valuable source of practical

knowledge. Also, I deeply acknowledge all other members of the organisation, who have shared

their ideas and spared time for accomplishment.

Words cannot express my sincere thanks to Ms. Nidhi Mathur, my project guide from the

institute, for constantly guiding me and tackling variety of hurdles with implicit patience

throughout my project work and infused in me a great inspiration and confidence in taking up this

study in right direction.

I am committed to extend my profound thanks to Mr. S.K. Sharma (Director) for his valuable

guidance and support and the entire faculty of Blossoms under the prestigious

Institute of Management Technology who had been a constant source of guidance throughout my

assignment.

Lastly, I would like to convey my heartiest thanks to my parents and my friends with whose

support and guidance this assignment of mine is successfully accomplished.

NISHA TANWAR

CONTENTS

Preface

Acknowledgement

Contents

Chapter I: Introduction

Industry Overview

Company Profile

Competitors

SWOT Analysis

Chapter II: Research Methodology

Objective of study

Scope and Managerial Usefulness of Study

Research Design and Methodology

Limitations

Chapter III: Theoretical Framework

Concept of Recruitment and Selection

Recruitment v/s Selection

Recruitment and Selection Process

Novel Recruitment Practices

Chapter IV: Recruitment and Selection Process of MARG LIMITED

Chapter V: Data Analysis

Chapter VI: Findings

Chapter VII: Conclusion and Recommendations

Annexure

Bibliography

CHAPTER - I

INTRODUCTION

INTRODUCTION

In today's rapidly changing business environment, organisations have to respond quickly to

requirements for people as human resources are the most important assets of an organisation. The

success or failure of an organisation is largely dependent on the caliber of the people working

therein. Without positive and creative contributions from people, an organisation cannot progress

and prosper. In order to achieve the goals or perform the activities of an organisation, therefore,

there is a need to recruit people with requisite skills, qualifications and experience. While doing

so, one must keep the present as well as the future requirements of the organisation in mind.

Hence, a well-defined recruitment policy helps in effectively executing the process and getting

the best fits for the vacant positions. Selecting the wrong candidate or rejecting the right candidate

could turn out to be costly mistakes for the organisation. Selection is one area where the

interference of external factors is minimal. Hence the HR department can use its discretion in

framing its selection policy and using various selection tools for the best results. Thus it is

importance for organisations to have an effective recruitment and selection policy. The need for a

sound recruitment and selection policy was first realized by Chinese countries ago and Prussia

was the first country in modern time to have evolved a sound recruitment system. In India, the

merit principle has been in existence since 1853.

Recruitment and Selection are the major function of the human resource department. Recruitment

and Selection process involves a systematic procedure from sourcing the candidates to arranging

and conducting the interviews and picking the most suitable candidate who would best meet the

requirements of the job and the organisation, decision making, conveying the decision and the

appointment formalities.

INDUSTRY OVERVIEW

CONSTRUCTION INDUSTRY IN INDIA

Today, India is the second fastest growing economy in the world. The Indian construction

industry, an integral part of the economy and a conduit for a substantial part of its development

investment, is poised for growth on account of industrialization, urbanization, economic

development and people's rising expectations for improved quality of living. The strong emphasis

on infrastructure creation by the Central and the State Governments has brought about a sustained

inflow of orders for infrastructure development and construction companies over past couple of

years.

INDUSTRY SEGMENTS

REAL ESTATE : Residential (Housing & Development), Industrial (Industrial Parks,

Factories, Plants, etc.), Corporate (Office, Research Centers), Commercial (Retail: Malls,

Shops, Showrooms; Hotels; etc.)

INFRASTRUCTURE : Roads, Railways, Urban infrastructure (improved housing, water-

supply and sanitation, schools, universities, health and security, etc.), Ports, Airports,

Power

BOOMING OPPORTUNITIES IN INDIA

There are a lot of opportunities that are sprouting up for the construction sector. Some of these are

as follows:

Residential houses for growing middle class population

Water supply and sanitation projects

Projects to develop Special Economic Zones

Power Plants to provide reliable, affordable and quality power to all users

The "Sagar Mala" project for expansion and modernization of ports, inland navigation and

maritime transport

Projects to develop Special Bio-Technology Parks and IT Parks

COMPANY PROFILE

MARG GROUP

Marg Group of Companies, headquartered in Chennai, is promoted by Mr. G.R.K. Reddy, a civil

engineering professional, with almost three decades of experience in the infrastructure business.

Marg Ltd is 18-year-old world class engineering, construction and services conglomerate. The

Marg Group comprises of 5 dynamic companies – Marg Foundation, Karaikal Port, Marg

Swarnabhoomi, Marg Properties, Marg Junction, each of them armed with a vision to become the

first amongst equals.

Having successfully completed over 200+ projects within the scheduled time-frame and with the

best of quality, the Group is now marching ahead with a strong order book position of another

200 ongoing projects.

MARG GROUP – VISION!!!!!

“Big dreams rooted in practicality is what helps us translate our dreams into reality. We are

conscious of the fact that every project we deliver has an obvious impact on the economy,

infrastructure and society. We believe ours is a never ending journey of innovation and learning

and the body of knowledge from each project we work on is invaluable in our evolution”

GROUP BUSINESS PORTFOLIO

MARG FOUNDATION

MARG PROPERTIES

MARG SWARNABHOOMI

MARG JUNCTION

MARG KARAIKAL PORT

MARG GROUP OF COMPANIE

S

MARG FOUNDATION

(EPC - MARG FOUNDATION)

MARG Foundation India, MARG’s EPC division provides integrated turnkey solutions. Its range

of services include integrated design, engineering, material procurement, field services and

construction & project management services for infrastructure sector and real estate projects.

MARG Foundation India is poised to be the growth engine of the MARG Group. Some of its

large external customers include Government of Puducherry, Petronet, Alstom, Asian Wind

Turbines, Assotech Ltd, BHEL, Daslagerway Wind Turbines Ltd, L&T and Enercon India (P) Ltd

etc.

MARG KARAIKAL PORT

(MARINE INFRASTRUCTURE & SERVICES)

MARG Karaikal Port is a premier, hi-tech, all weather port on the South East coast of India.

Karaikal Port has a sizable primary hinterland because of its strategic location. It is the only all

weather, deep water, multi-commodity port between Chennai port and Tuticorin port and is

strategically located at the middle of this 680 km coastline.

MARG SWARNABHOOMI

(URBAN & INDUSTRIAL INFRASTRUCTURE)

MARG Swarnabhoomi, christened as the “Land of New Thinking”, is the campus of education,

research, innovation, industry and living. Located on scenic East Coast Road (ECR), mid-way

between Chennai and Puducherry, it has proximity to the Auto & Electronic industrial belts of the

nation. This strategic ECR stretch is “the growth corridor” of the future and being close to

Chennai, has access to world class academia. It is also well connected via road, rail & airport and

unlike other industrial clusters, it has all the facilities to foster business. Away from common din

of the cities, located at scenic backwaters of ECR, the city is planned in such a way that it

harmonizes with nature and offers scenic tranquility and peacefulness to uplift human mind and

soul.

MARG PROPERTIES

REAL ESTATE - RESIDENTIAL

MARG ProperTies, the residential arm of the infrastructure major MARG, is one of the leading

real estate developers in Chennai that offer homes to all segments, viz Affordable homes, Urban

smart homes, integrated townships and Ultra luxury homes. Delivering the “Right Product” with

the “Right Value” to a wide segment of consumers has always been the brand promise of MARG

ProperTies.

MARG JUNCTION

REAL ESTATE - COMMERCIAL

The state-of-the-art MARG Junction Mall is slated to be South Chennai's biggest retail

opportunity for business, leisure and entertainment. Opening in 2013 on the strategic IT corridor

and spread over 1.83 million sq. ft., this mall on the bustling OMR will be Chennai's largest

'mixed use' development comprising of a 5 star hotel by Shangri-La. MARG Junction mall is

planned as a 'social asset' with a unique Chennai DNA.

Providing the best in 'comfort , convenience & entertainment' , MARG Junction Mall will have a

1000 seater food court, 6 fine dining restaurants, a 14,000 sq ft. double height EGA Gaming

World, 16 lane international bowling alley and a 9 screen-2000 seater multiplex.

MARG LIMITED

Marg Limited incorporated in the year 1994 is the flagship company of the Marg Group of

Companies, which stands out as one of the few fully integrated infrastructure development

companies with a diverse presence across various sectors in the industry.

MARG Group is one of India's fastest growing infrastructure organizations - undertaking holistic

regional development, unlocking economic prosperity and creating inclusive & sustainable

growth models. The organization has embarked on an innovation led development, on the canvas

of new sustainable India that few have attempted. Listed by Dun & Bradstreet as among

"India's Top 500 Companies 2011", MARG Group has projects worth more than Rs. 3400

crores under execution, a seasoned human capital of more than 1100, global partners in the Infra

space and offices spread across India, Singapore and China.

Extensively awarded for 'Corporate Social Responsibility initiatives', MARG Parivarthan - the

MARG CSR brand complements the above business verticals.

MARG Limited (BSE: 530543) is listed on the Bombay Stock Exchange and its shares are traded

on the NSE under the category of 'Permitted Security'.

BUSINESS OVERVIEW

HIGHLY PROFESSIONAL APPROACH

At Marg, business relationships are valued and thus they have adopted a professional approach

towards them with core principles that underpin how to work with their partners.

Thus the approach adopted is motivated by qualified & experienced professionals, modern &

latest equipment, all company-owned, adaptability of latest and mechanized methodology, holistic

approach, creativity and hi-tech solution, quality, safety & environment management systems and

backward and forward integration to other sister units of the group to optimize costs.

MODERN EQUIPMENT

High-end tools and equipment for construction work boosts the Division’s capability to execute

projects with speed & quality. Thus, time and again, the Division takes the effort to invest in

modern tools and equipments. These tools and equipment include:

Pile driving

Mass concreting

Welding of rails

Support making with in-house facility

Large size steel structural work

The parent company has a separate & specialized Equipment Management Division engaged in

the business of leasing world-class equipment and machinery to the infrastructure development

industry. The in-house availability of sophisticated & contemporary high-end machinery in turn

lends tremendous strength to and provides a distinct advantage in the quality of construction and

execution of projects.

COMPETITIVE STRATEGY

A winning competitive strategy is founded on consistently understanding and predicting

changing market conditions and customer needs. The measures that have helped the organisation

in designing their competitive strategy are in-house competencies thereby reducing quantum of

work outsourced to the minimal, Competitive Pricing, Optimum use of in-house resources and

On-time delivery schedule.

SOUND FINANCIAL BACKGROUND

Growth in business has to be accompanied by sound financial management and controls.

Marg’s impeccable track record of over two decades stands testament to the sound financial

background which is further vindicated in the company’s robust year- on- year growth for the past

five years accompanied by timely financial closure and good profitability levels.

STRONG MANPOWER

The organisation realizes that experienced and committed manpower is their asset and thus make

elaborate efforts to identify, retain and enhance skilled workers. While bidding for the project,

end customers are becoming increasingly concerned about finding providers that have a high level

of technical expertise in house. Their technical team has helped them execute some challenging

projects resulting in their customers being content with the project outcome.

KEY PROJECTS

ONGOING PROJECTS

AEVP-VRINDAVAN YOJNA-1

Braithwate & Co. Limited (BCL-KOLKATA)

Bharat Heavy Electricals Limited (BHEL-JAGDISHPUR)

Directorate General of Married Accommodation Project (DGMAP-AGRA-411PFC)

Directorate General of Married Accommodation Project (DGMAP-AGRA-AIRFORCE)

Directorate General of Married Accommodation Project (DGMAP-AGRA-AMAR

SINGH CAMP)

Directorate General of Married Accommodation Project (DGMAP-AGRA-

BHARATPUR LINE)

Construction of Test Research Laboratory (HSCC-DWARKA)

Haryana Urban Development Authority (HUDA- REWARI)

Lucknow Development Authority (LDA-1-JANKIPURAM)

Lucknow Development Authority (LDA-1-JANKIPURAM)

Military Engineer Services (MES-RR HOSPITAL-DHAULA KUAN)

Military Engineer Services (MES-PALAM)

National Buildings Construction Corporation (NBCC-CHANAKYAPURI)

National Buildings Construction Corporation (NBCC-DWARKA)

National Capital Region (NCR-JHANSI)

COMPETITORS

JAIPRAKASH ASSOCIATES LIMITED

Jaiprakash Associates Ltd., the flagship company of the Jaypee Group, is a leader in Construction

of river valley and hydropower projects on turnkey basis for more than 4 decades. The company

is currently executing various projects in hydropower, irrigation and other infrastructure fields

and has had the distinction of executing simultaneously 13 hydropower projects spread over 6

states and the neighbour country Bhutan for generating 10,290 MW of power.

IRB INFRASTRUCTURE DEVELOPERS LIMITED

IRB Infrastructure Developers Ltd. was incorporated to fund the capital requirements of the IRB

Group initiatives in the infrastructure sector. The company undertakes development of various

infrastructure projects in the road sector through several Special Purpose Vehicles. The company,

along with its subsidiaries has constructed or, operated and maintained around 1200 kms of road

length so far and is one of the major road developers in the country.

GAMMON INFRASTRUCTURE PROJECTS LIMITED

Gammon Infrastructure Projects Limited (GIPL) is an infrastructure project development

company promoted by Gammon India Limited, to participate in the development of infrastructure

projects on a public private partnership ("PPP") basis across sectors such as Roads &

Expressways, Ports, Hydro Power, Urban infrastructure, Airports, Special Economic Zones,

Water and Wastewater management, Railways, Power Transmission lines, and Agricultural

Infrastructure. GIPL is among the first companies in India to be modeled as an infrastructure

developer holding company with investments spread across various sectors.

HINDUSTAN CONSTRUCTION COMPANY LIMITED

As a pre-eminent Indian infrastructure company, established over eight decades ago, HCC has,

over the years, strongly anchored itself to India’s development effort. HCC, as an industry leader

in engineering construction, currently nurtures projects that span across such diverse segments as

transportation, power, marine projects, oil and gas pipeline constructions, irrigation and water

supply, utilities and urban infrastructure, all of which impact the nation of India, and the progress

of its people.

IVRCL INFRASTRUCTURE AND PROJECTS LIMITED

IVRCL is dedicated to improving the overall quality of life in the country. It believes in making a

holistic contribution to all sectors including water, roads, industrial structures, residential

complexes, power projects etc. For IVRCL, quality is the overpowering virtue around which the

whole system functions. Engineering and design capabilities are IVRCL's proven strengths. Its

turnkey projects in various sectors are characterized by pioneering ideas and impressive execution

capabilities.

NAGARJUNA CONSTRUCTION COMPANY LIMITED

NCC’s range of business verticals comprising of Buildings & Housing, Transportation, Water &

Environment, Irrigation, Power, Electricals, Metals, Oil & Gas and International business reflect

an expertise positioned to capture every infrastructure upturn. NCC has a reputed record of

completing projects on time without compromising on quality and is the only construction

company in India to achieve the recognition as one of the 250 “best under a billion” listed

companies in Asia Pacific in 2005 by Forbes Asia.

SIMPLEX INFRASTRUCTURES LIMITED

Simplex Infrastructures Limited was established in the year 1924 at Lancaster, United Kingdom.

Its chief construction activities include commercial and residential complexes and huge industrial

projects. In India, Simplex Infrastructures was responsible for constructing the first private sector

steel plants at Burnpur and Tatanagar. It also built the approach passages to Howrah Bridge.

Simplex has been catering to major organisations involved in the public sector, private sector, and

Government departments. The company has been using latest techniques and innovations in its

production process. Some of Simplex construction activities have been Power projects,

Processing plants, Huge industrial projects, Constructions of commercial & residential

complexes, Piling jobs, Marine ports and bridges, Ground strengthening and Soil investigations.

SWOT ANALYSIS

STRENGTHS

Diversified business model

Presence across diverse sectors,

customers and geographies

Ability to offer single-point turnkey

solutions

Improved financial performance

Repeat orders from reputed clients

More than 70% of the orders are

from few reputed clients.

WEAKNESSES

The Company has cases of

unclaimed deposits.

Problems in any major project can

adversely affect its financials.

Inability to bid for large projects.

Enable to retain manpower.

OPPORTUNITIES

Planed investment of Rs.175000

crore in infrastructure as per the

11th Five Year Plan leading to a

strong flow of orders.

Pick-up in economy has lead to

many new and expansion projects

across industries.

Construction of residential houses

for growing middle class

population.

THREATS

Competition from other players.

Political Influence due to operations

in different states.

Change in policies due to turbulence

in the government structure.

Economic meltdown may affect the

customer base due to increasing cost

of raw materials.

Compensation claim by the clients

in case of delay in completing their

project.

CHAPTER – II

RESEARCH METHODOLOGY

OBJECTIVES OF STUDY

To highlight the importance of having an effective Recruitment and Selection Policy for

organisations.

To identify the recent trends of corporate recruiting.

To study the existing process of Recruitment and Selection in Marg Limited.

To determine the applicability of the recent trends in the Recruitment and Selection

Process of Marg Limited.

To determine the challenges faced by the recruiters during the hiring process.

SCOPE OF STUDY

This study has a vast scope as it makes all the concepts clear about what exactly goes in

making a new employee a part of the organization. EPC-Delhi It highlights the recent

trends that are influencing the Recruitment and Selection Process of organisations.

It can also be useful as a source of information for similar projects.

MANAGERIAL USEFULNESS OF STUDY

The study clearly shows all the steps, which go in recruiting a person and having a right

person at right place.

This project work enables the comparison of relevant conceptual and theoretical

knowledge of Recruitment and Selection Process with actual application in the industry.

It will help the managers to understand the benefits of having an effective Recruitment

and Selection Policy for an organisation.

It will provide a thorough knowledge about the recent trends of corporate recruiting.

It provides a list of the problems that the recruiters face during the hiring process which

needs to be overcome.

It includes valuable suggestions that will help the recruiters in the hiring process.

RESEARCH DESIGN

Descriptive Research Design was adopted for this study. This design generally concentrate on the

aspects like setting objectives, defining and stating the problem under study, designing the

method of data collection, including sampling, survey, analysis and interpretation of data, report

writing, arriving at inductions, deductions and conclusions, etc. The recommendations and

findings in a descriptive research are definite.

SAMPLING PLAN

UNIVERSE

The population of the study comprises of three members of Recruitment Department and the Head of HR

Department, EPC-Delhi of Marg Limited, Head Office, New Delhi.

SAMPLE SIZE

4 (the entire population was studied).

DATA SOURCE

Both, Primary and Secondary data are used to perform this very task.

Primary Data Collection

Interview Schedule

Informal talks with employees of MARG LIMITED.

Observations made during the execution of the Recruitment & Selection Process.

Secondary Data Collection

Organisational Manual and Annual Report

Papers/files/letters

Internet

Books and Journals

DATA COLLECTION TOOL

An Interview Schedule was designed containing both open- ended and multiple-choice questions

to meet all the objectives of the study.

LIMITATIONS

The study was undertaken for a period of two months, so there was a constraint of time.

Possibility of ambiguous replies due to confidentiality of information.

Another constraint is some sort of biasness in my study. This study remains an analysis of

all what I gathered from my observation, the personal interaction and the information from

seniors and colleagues.

Errors might have crept into the report during typing and compilation.

CHAPTER – III

THEORETICAL FRAMEWORK

MEANING OF RECRUITMENT

The human resource is the most important asset of an organisation. The success or failure of an

organisation is largely dependent on the caliber of the people working therein. In order to achieve

the goals or the activities of an organisation it needs to recruit people with requisite skills,

qualification and experience.

Edwin B. Flippo defined recruitment as “the process of searching the candidates for employment

and stimulating them to apply for jobs in the organisation”. Recruitment is also defined as “a

process of finding and attracting capable applicants for employment”.

Recruitment is the activity that links the employers and the job seekers. The process begins when

new recruits are sought and ends when their applications are submitted. Recruitment of candidates

is the function preceding the selection, which helps create a pool of prospective employees for the

organisation so that the management can select the right candidate for the right job from this pool.

The main objective of the recruitment process is to expedite the selection process. Recruitment,

logically, aims at:

Attracting a large number of qualified applicants who are ready to take up the job if it’s

offered, and

Offering enough information for unqualified persons to self-select themselves out.

RECRUITMENT NEEDS ARE OF THREE TYPES

1. Planned Need

Planned needs are the needs arising from changes in organisational policies.

2. Anticipated Need

Anticipated needs are identified base on the movements in personnel, which an

organisation can predict by studying trends in internal and external environment.

3. Unexpected Need

Resignation, deaths, accidents and illness give rise to unexpected needs.

FACTORS AFFECTING RECRUITMENT

The recruitment function of the organisations is affected and governed by a mix of various

internal and external forces. The internal factors are those that can be controlled by the

organisation and the external factors are those which cannot be controlled by the organisation.

The external factors include supply of and demand for human resources, employment

opportunities and/or unemployment rate, labour market conditions, political, legal requirement

and government policies, social factors, information systems, etc. The internal factors include the

company’s pay package including salary, fringe benefits and incentives, quality of work life,

organisational culture, career planning and growth opportunities, size of the company, company’s

product/services, geographical spread of the company’s operations viz., local, national or global,

company’s growth rate, Role of Trade Unions and cost of recruitment.

PURPOSE & IMPORTANCE OF RECRUITMENT

Attract and encourage more and more candidates to apply in the organisation.

Create a talent pool of candidates to enable the selection of best candidates for the

organisation.

Recruitment is the process which links the employers with the employees.

Increase the pool of job candidates at minimum cost.

Help increase the success rate of selection process by decreasing number of visibility

under qualified or overqualified job applicants.

Help reduce the probability that job applicants once recruited and selected will leave the

organisation only after a short period of time.

Meet the organisations legal and social obligations regarding the composition of its

workforce.

Begin identifying and preparing potential job applicants who will be appropriate

candidates.

Increase organisation and individual effectiveness of various recruiting techniques and

sources for all types of job applicants.

SOURCES OF RECRUITMENT

Every organisation has the option of choosing the candidates for its recruitment processes from

two kinds of sources: internal and external sources. The sources within the organisation itself to

fill a position are known as the internal sources of recruitment. Recruitment candidates from all

the other sources are known as the external sources of recruitment.

SOURCES OF RECRUITMENT

INTERNAL SOURCES EXTERNAL SOURCES

Transfers Press Advertisements

Promotions Educational Institutes

Upgradation Placements agencies/Outsourcing

Demotion Employment Exchanges

Retired Employees Labour contractors

Retrenched Employees Unsolicited Applicants

Dependents of Deceased Employees Employee Referrals

Recruitment at Factory Gate

INTERNAL SOURCES OF RECRUITMENT

ADVANTAGES DISADVANTAGES

It is less costly.

Candidates are already oriented towards

organisation.

Organisation has better knowledge about

the internal candidates.

Enhancement of employee morale.

Good performance is rewarded.

Discourages entry of talented people.

It perpetuates the old concept of doing

things.

Bone of contention i.e. politics play greater

role.

Candidate’s current work may be affected.

Morale problem for those not promoted.

EXTERNAL SOURCES OF RECRUITMENT

ADVANTAGES DISADVANTAGES

Injection of fresh blood with new skills,

new talents and new experience.

Compliance with reservation policy becomes

easy.

Scope for resentment, jealousies and heartburn

are avoided.

Long term benefits of talented people.

Demotivates internal employees.

It is costly and time consuming.

Does not ensure that the services of a suitable

candidate are hired.

Adjustment of new employees of the

organisational culture takes longer time.

RECRUITMENT POLICY OF A COMPANY

In today’s rapidly changing business environment, a well defined recruitment policy is necessary

for organisations to respond to its human resource requirements in time. Therefore, it is important

to have a clear and concise recruitment policy in place, which can be executed effectively to

recruit the best talent pool for the selection of the right candidate at the right place quickly.

Creating a suitable recruitment policy is the first step in the efficient hiring process. A clear and

concise recruitment policy helps executing a sound recruitment process.

It 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.

COMPONENTS OF THE RECRUITMENT POLICY

Organisation’s objectives

Identification of the recruitment needs to take decisions regarding the balance of the

qualitative dimensions of the would be recruits

Preferred sources of recruitment

Criteria of selection and preferences

The cost of recruitment and financial implications of the same

The terms and conditions of the financial

ESSENTIALS OF A GOOD RECRUITMENT POLICY

The policy should be in conformity with its general HR policies.

Focused on recruiting the best potential people.

Unbiased policy.

Transparent, task oriented and merit based selection.

Flexible enough to meet the changing needs of the organisation.

Cost effective i.e. to recruit competent people at a minimum cost.

Weightage during selection given to factors that suit organisation needs.

Optimization of manpower at the time of selection process.

Defining the competent authority to approve each selection.

Abides by relevant public policy and legislation on hiring and employment relationship.

Integrates employee needs with the organisational needs.

FACTORS AFFECTING RECRUITMENT POLICY

Organisational objectives

Personnel policies of the organisation and its competitors.

Government policies on reservations.

Preferred sources of recruitment.

Needs of the organisation.

Recruitment costs and financial implications.

MEANING OF SELECTION

Through the process of recruitment, a company tries to locate prospective employees and

encourages them to apply for vacancies at various levels. Recruiting, thus, provides a pool of

applicants for selection. Selection is the process of picking individuals out of the pool of job

applicants with requisite qualification and competences to fill jobs in the organisation.

Selection is a discrimination decision based on ability and suitability of the candidate. It can be

defined as “the process of differentiating between applicant in order to identify (and hire) those

with a greater likelihood of success in a job”. Often based on an initial job analysis, the ultimate

goal of personnel selection is to ensure an adequate return on investment - in other words, to

make sure the productivity of the new employee warrants the costs spent on recruiting and

training that employee.

The purpose of selection is to pick individuals out of the pool of job applicants with requisite

qualifications and competences to fill jobs in the organisation. The needs of the jobs are matched

with the profile of the candidates. The most suitable person is then picked up after eliminating the

less suitable applicants through successive stages of selection process. How well an employee is

matched to a job is very important because it directly affects the amount and quality of

employee’s work.

Any mismatch can cost an organisation a great deal in terms of money, time and trouble,

especially by way of training and operating costs. In course of time, the employee may find the

job distasteful and leave frustration. He may even circulate ‘hot-news’ and juicy bits of negative

information about the organisation, causing incalculable harm in the long run. Effective selection,

therefore, demands constant monitoring of the ‘fit’ between the person and the job.

Several screening methods exist that may be used in personnel selection. Examples include the

use of minimum or desired qualifications, resume/application review, oral interviews, work

performance measures (e.g., writing samples), and traditional tests (e.g., of job knowledge).

SELECTION TESTS

Recruiting personnel is a long and expensive process. It is very important that a company gets it

right, if the company hires someone that turns out to be unsuitable then it costs time, money and

potential new clients. To reduce the possibility of hiring an inappropriate candidate employers use

several filtering methods. Traditionally these have been the CV, covering letter, and interview.

However respected companies find that traditional candidate elimination techniques do not go far

enough and are not cost effective.

As a result employers are using different tests in addition to the traditional selection methods.

These tests aim to provide a potential employer with an insight into how well a candidate can

work with other people, how well he can handle stress, and whether he will be able to cope with

the intellectual demands of the job. These are as follows:

Achievement Test: It assist determining how well as individual can perform tasks related

to the job.

Aptitude Test: It helps in determining a persons potential to learn in given area.

Personality Test: They are given to measure a prospective employee’s motivation to

function in a particular working environment.

Interest Test: They are used to measure an individual’s activity preferences.

Dexterity Test: In this test checks the capacity of a person to learn a particular

mechanical type of work.

SELECTION INTERVIEW

OBJECTIVES OF INTERVIEWS

Helps obtain additional information from the applicant.

Facilities giving general information to the applicant such as company policies, job

profile, products manufactured, etc.

Helps build the company’s image among the applicants.

To get an opportunity to judge an applicants qualifications and characteristics.

To ask question that are not covered in tests.

TYPES OF INTERVIEWS

TYPES TYPE OF QUESTIONS USUAL APPLICATIONS

STRUCTURED

A predetermined checklist

of questions, usually asked

of all applicants

Useful for valid results, especially when

dealing with large number of applicants.

UNSTRUCTURED

Few, if any, planned

questions are made up

during interview.

Useful when the interviewer tries to proper

personal details of the candidate to analyze

why they are not right for the job.

MIXED

A combination of

structured and unstructured

questions

A realistic approach that yields comparable

answers plus in depth insights.

BEHAVIOURAL

Questions limited to

Hypothetical situations.

Useful to understand applicants reasoning

and analytical aptitude under modest

stress.

STRESS

A series of harsh, rapid fire

questions intended to upset

the applicant

Useful for stressful jobs, such as handling

complaints

BARRIERS TO EFFECTIVE SELECTION

The main objective of selection is to hire people having competence and commitment. This

objective is often defeated because of certain barriers. The impediments which check

effectiveness of selection are perception, fairness, validity, reliability and pressure.

Perception : Our inability to understand others accurately is probably the most fundamental

barrier to selecting the right candidate. Selection demands an individual a group or people to

assess and compare the respective competencies of others, with the aim of choosing the right

person for the jobs. But our views are highly personalized. We all perceive the world

differently. Our limited perceptual ability is obviously a stumbling block to the objective and

rational selection of people.

Fairness : Fairness in selection requires that no individual should be discriminated against on

the basis of religion, region or gender. But the low members of women and other less-

privileged sections of the society in middle and senior management positions and open

discrimination on the basis of age in job advertisements and in the selection process would

suggest that all the efforts to minimize inequity have not been very effective.

Validity : Validity, as explained earlier, is a test that helps predict job performance of an

incumbent. A test that has been validated can differentiate between the employees who can

perform well and those who will not. However, a validated test does not predict job success

accurately. It can only increase possibility of success.

Reliability : A reliable method is one which will produce consistent results when repeated in

similar situations. Like a validated test, a reliable test may fail to predict job performance

with precision.

Pressure : Pressure is brought on the selectors by politicians, bureaucrats, relatives, friends

and peers to select particular candidates. Candidates selected because of compulsion are

obviously not the right ones. Appointments to public sector undertaking generally take place

under such pressure.

RECRUITMENT IS DISTINCT FROM SELECTION

Some people use the term recruitment and selection interchangeably. These two terms are not one

and the same either. Recruitment includes only finding the sources of prospective employees and

attracting them to apply for jobs in an organisation, whereas the selection is the process of finding

out the most suitable candidate to the job out of the candidates attracted. Technically speaking the

function of recruitment precedes the selection function.

The differences between the two are as follows:

1. Recruitment is the process of searching the candidates for employment and stimulating them

to apply for jobs in the organisation whereas selection involves the series of steps by which

the candidates applying for the job are screened for choosing the most suitable one for the

vacant post.

2. The basic purpose of recruitment is to create a talent pool of candidates to enable the selection

of best candidate for the organisation, by attracting more and more employees to apply in the

organisation whereas the basic purpose of selection process is to choose the right candidate to

fill the vacant position in the organisation.

3. Recruitment is a positive process i.e. encouraging more and more candidates to apply whereas

selection is a negative process as it involves rejection of the unsuitable candidates.

4. Recruitment is concerned with tapping the sources of human resources whereas selection is

concerned with selecting the most suitable candidate through various interviews and tests.

5. There is no contract of recruitment established in recruitment process whereas selection

results in a contract of service between the employer and the selected candidate.

RECRUITMENT AND SELECTION PROCESS

Recruitment and Selection are the major functions of the human resource department and

recruitment process is the first step towards creating the competitive strength and the strategic

advantage for the organisation. Recruitment and Selection process involves a systematic

procedure from sourcing the candidates to arranging and conducting the interviews and picking

the most suitable candidate who would best meet the requirements of the job and the organisation.

Though, theoretically recruitment process is said to end with the receipt of applications, in

practice the activity ends with the screening of applications so as to eliminate those who are not

qualified for the job. The recruitment process is immediately followed by the selection process i.e.

the final interview and decision making, conveying the decision and the appointment formalities.

A general recruitment and selection process is as follows:

1. Human Resource Planning (HRP)

HRP means to identify the future manpower requirements from different departments of the

organisation.

2. Comparing with existing manpower

The number of manpower required is then compared to the existing inventory of manpower.

There are two possible outcomes: Surplus and Demand. In case an organisation has surplus

manpower, it can retain, retrenched or redeployed them. If there is more demand of

manpower, then the HR Department receives requisitions for recruitment containing the

number of persons required, the levels and criticality of vacancies.

3. Locating and developing sources of recruitment

From the various sources of recruitment (internal and external) available at the option of the

organisation, the most appropriate ones are selected based on their validity (time period) and

viability (feasibility).

4. Preparing the job descriptions

Then job descriptions and job specifications are prepared by the Departmental Heads of the

vacant positions.

5. Advertise and invite applications

The next step is to publish advertisements in newspapers, on-line, etc. on the basis of the job

description prepared to let others know of the job openings and applications.

6. Managing the response and Initial screening

Next step is to review the applications received and sieve the applications of the prospective

applicants with the required characteristics.

7. Conduct Selection Tests

In addition to the traditional selection methods, employers are using different selection tests.

These tests aim to provide a potential employer with an insight into how well a candidate can

work with other people, how well he can handle stress, and whether he will be able to cope

with the intellectual demands of the job. These tests can be split into Achievement Test,

Aptitude Test, Personality Test, Interest Test and Dexterity Test.

8. Selection interviews

Interview is a formal, in depth conversation conducted to evaluate the applicant’s

acceptability. It allows a two way exchange of information, the interviewers learn about the

applicant and the applicant learns about the employer. An interview can be:

One to One: There are only two participants the interviewer & the interviewee.

Panel Interview: Consists of two or more interviewers.

Sequential Interview: It involves the series of the interviews, usually utilizing the strength

and knowledge base of each interviewer.

9. Reference Check

Completing reference checks is a critical part of the selection process. A thorough reference

check may produce additional information to help insure that the most suitable candidate is

hired. It is a way to clarify, verify and add data to what has been learned in the interview and

from other portions of the selection process. Organisation normally seeks letter of reference or

telephone reference the later is advantageous because of its accuracy and low cost. In several

cases, references are a formality and seldom verified by the employer.

10. Selection Decisions

After obtaining information through the preceding steps, selection decision - the most crucial

of all the steps - must be made. The other stages in the selection process are used to narrow

the candidates. The final decision has to be made from the pool of the individual who passed

the tests, interviews and reference checks. If it is impossible to make a selection at this point,

one may consider scheduling an additional interview or conducting additional reference

checks. If the recruiters feel that none of the applicants are qualified, then they may choose to

re-recruit.

11. Physical Examination

After the selection decision and before the job offer is made, the candidate is required to

undergo a physical fitness test. The result of this test is recorded in a statement and is

preserved in the personnel record.

There are several objectives behind a physical test:

To detect if the individual carries any infectious disease.

Determining whether an applicant is physically fit to perform the work.

To protect the employer from worker’s compensation claims those are not valid because

the injuries or illness were present when the employee was hired.

12. Job Offer

The candidate finally selected is offered the job. In case he rejects the offer, it is made to the

next suitable candidate. After the job offer has been made and the candidate accepts it, a

contract of employment is prepared. The basic information that should be included in a

written contract of employment will vary according to the level of the jobs.

13. Joining formalities

Joining formalities include all the paper work to be done to fulfill the legal requirements of

employment.

14. Induction

Induction is a systematic & planned introduction of employees to their job, co-workers and

the organisation. Induction conveys 3 types of information:

General information about the daily work routine.

Review of organisation’s history, objectives, operations and products or services.

Organisational policies, work rules & employee benefits.

15. Placement

The selected candidate is then put to the actual work area where he has to perform the tasks

assigned to him.

16. Evaluation and review of the process

The last step is the broad test of the effectiveness of the process. This is done by evaluating

the performance or the quality of the personnel hired. An organisation must have competent

and committed personnel. The recruitment and selection process, if properly done, ensures

availability of such employees.

PROBLEMS FACED DURING

RECRUITMENT AND SELECTION PROCESS

Problems that are faced during the recruitment and selection process which should be avoided to

make the whole process more effective are as follows:

No weighting of interview questions

Poor settings for the interview

Insufficient follow-up questions

Failure to check with former employers

Use of hiring quotas

Failure to notify unsuccessful contenders of the selection decision

Failure to provide the new employee with a substantive orientation of the job

Rushed selection process

Unclear job requirements

Insufficient outreach

Recruitment outside of the personnel system

Failure to post openings

Tapping successors

Vague selection criteria

Untrained interviewers

Inappropriate questions

HR CHALLENGES IN RECRUITMENT

Recruitment is a function that requires business perspective, expertise, ability to find and match

the best potential candidate for the organisation, diplomacy, marketing skills (as to sell the

position to the candidate) and wisdom to align the recruitment processes for the benefit of the

organisation. The HR professionals – handling the recruitment function of the organisation- are

constantly facing new challenges. The biggest challenge for such professionals is to source or

recruit the best people or potential candidate for the organisation.

In the last few years, the job market has undergone some fundamental changes in terms of

technologies, sources of recruitment, competition in the market etc. In an already saturated job

market, where the practices like poaching and raiding are gaining momentum, HR professionals

are constantly facing new challenges in one of their most important function- recruitment. They

have to face and conquer various challenges to find the best candidates for their organizations.

The major challenges faced by the HR in recruitment are:

Adaptability to globalization – The HR professionals are expected and required to keep

in tune with the changing times, i.e. the changes taking place across the globe. HR should

maintain the timeliness of the process.

Lack of motivation – Recruitment is considered to be a thankless job. Even if the

organisation is achieving results, HR department or professionals are not thanked for

recruiting the right employees and performers.

Process analysis – The immediacy and speed of the recruitment process are the main

concerns of the HR in recruitment. The process should be flexible, adaptive and

responsive to the immediate requirements. The recruitment process should also be cost

effective.

Strategic prioritization – The emerging new systems are both an opportunity as well as a

challenge for the HR professionals. Therefore, reviewing staffing needs and prioritizing

the tasks to meet the changes in the market has become a challenge for the recruitment

professionals.

MODEL FOR FUTURE

As shown in the figure, the future of all recruitment related activities will revolve around a few

aspects, which are of prime importance. Recruitment is undoubtedly central to all activities.

However, the loop will satisfactorily complete only if the right equation is maintained between

the demand-supply ratio, which, in turn, is possible only if all recruiters, be it in-house or external

agencies understand the employee-employer welfare in consonance and the motive of operation

should be training and development.

E-RECRUITMENT

The buzzword and the latest trends in recruitment is the “E-Recruitment”. Also known as “Online

recruitment”, it is the use of technology or the web based tools to assist the recruitment process.

The tool can be either a job website like naukri.com, the organisation’s corporate web site or its

own intranet. Many big and small organisations are using Internet as a source of recruitment.

They advertise job vacancies through worldwide web. The job seekers send their applications or

curriculum vitae (CV) through an e-mail using the Internet. Alternatively job seekers place their

CV’s in worldwide web, which can be drawn by prospective employees depending upon their

requirements.

The two kinds of e- recruitment that an organisation can use are –

Job portals – i.e. posting the position with the job description and the job specification on the

job portal and also searching for the suitable resumes posted on the site corresponding to the

opening in the organisation.

Creating a complete online recruitment/application section in the companies own

website. - Companies have added an application system to its website, where the ‘passive’ job

seekers can submit their resumes into the database of the organisation for consideration in

future, as and when the roles become available.

Resume Scanners: Resume scanner is one major benefit provided by the job portals to the

organisations. It enables the employees to screen and filter the resumes through pre-defined

criteria’s and requirements (skills, qualifications, experience, payroll etc.) of the job. Job sites

provide a 24 X 7 access to the database of the resumes to the employees facilitating the just-in-

time hiring by the organisations. Also, the jobs can be posted on the site almost immediately and

is also cheaper than advertising in the employment newspapers. Sometimes companies can get

valuable references through the “passers-by” applicants. Online recruitment helps the

organisations to automate the recruitment process, save their time and costs on recruitments.

Therefore, to conclude, it can be said that e-recruitment is the “Evolving face of recruitment.”

ADVANTAGES OF E-RECRUITMENT

Lower costs to the organisation. Also, posting jobs online is cheaper than advertising in the

newspapers.

No intermediaries.

Reduction in the time for recruitment.

Facilitates the recruitment of right type of people with the required skills.

Improved efficiency of recruitment process.

Gives a 24X7 access to an online collection of resumes.

Online recruitment helps the organisations to weed out the unqualified candidates in an

automated way.

Recruitment websites also provide valuable data and information regarding the compensation

offered by the competitors etc. which helps the HR managers to take various HR decisions

like promotions, salary trends in industry etc.

DISADVANTAGES OF E-RECRUITMENT

Apart from the various benefits, e-recruitment has its own share of shortcomings and

disadvantages. Some of them are:

Screening and checking the skill mapping and authenticity of million of resumes is a problem

and time consuming exercise for organisations.

There is low internet penetration and no access and lack of awareness of internet in many

locations across India.

Organisations cannot be dependant solely and totally on the online recruitment methods.

In India, the employers and the employees still prefer a face-to-face interaction rather than

sending e-mails.

NOVEL RECRUITMENT PRACTICES

The changes in the recruitment landscape have brought in many a new ways and methods of

recruitment and other allied practices. They have optimized the utilization of available resources

with the employers and the employees. This, in turn, has also enabled local companies going

global and vice versa. Few novel practices in corporate recruitment are as follows:

POACHING / RAIDING

“Buying talent” (rather than developing it) is the latest mantra being followed by the

organisations today. Poaching means employing a competent and experienced person already

working with another reputed company in the same or different industry; the organisation might

be a competitor in the industry. A company can attract talent from another firm by offering

attractive pay packages and other terms and conditions, better than the current employer of the

candidate. But it is seen as an unethical practice and not openly talked about.

EMPLOYER BRANDING

Nothing is hotter around the globe in recruiting than employer branding i.e. to create brand equity

in the eyes of the potential employees. Firms throughout Asia, in particular, are increasingly

adopting employer branding as a wildly important activity for 2009. The success of Google, a

firm that has built the world’s strongest employer brand over an amazing five-year period, has led

others to focus on this impactful long-term strategy. Key focus areas include increasing media

coverage, increasing visibility online, building your “green” brand, and countering your

“negative” employer brand.

RECRUITMENT PROCESS OUTSOURCING

Another upcoming trend in recruitment industry is Recruitment Process Outsourcing (RPO). This

enables the client company to actually outsource the entire gamut of recruitment to the

consultancies. This will include the following activities starting from searching candidates

through the job portals, job postings, inbuilt database, etc. to joining formalities, induction and

training. The RPO is the form of Business Process Outsourcing (BPO) where the client or the

employer transfers all or part of its recruitment activities and functions to an external service-

providers or to third party specialists, not only to save on cost and involvement, but also for

making a specialized job being handled by an expert.

BOOMERANG RECRUITMENT

In today’s scenario, one of the most cost-effective and successful recruitment strategies is

boomerang recruitment. Boomerangs, rehires and returnees are the terms coined to recognize top

performing ‘corporate alumni’ who are brought back into the organisation with a definite

objective, or who return on their own after being away from the organisation for sometime. In the

view of the consequent attrition that is often a major setback to a company on various fronts, the

practice of rehiring former employees is fast catching on to recall exceptional talent, especially

when the organisation face a severe shortage of trained, skilled personnel. Companies prefer to

rehire former employees rather than settle for inefficient new recruits. They are in fact initiating

proactive steps to encourage them to come back into the organisation.

REINVIGORATING REFERRAL PROGRAMS

Despite the growth of career-related internet sites, the highest volume and quality candidates still

come from well-designed employee referral programs. While heavy adoption was initially

hampered by cultural issues around the world, today such programs are proving highly effective

everywhere. Key focus areas include proactively approaching key employees for referrals

(program targeting), leverage non-employee referrals, making reward systems more

comprehensive, immediate, and visible, and last but not least, helping employees leverage social

media to restore relationships, make new relationships, and build stronger relationships.

ONLINE ASSESSMENT TOOLS

Online tests are becoming increasingly popular where candidates are asked to answer the

questions either on paper or using a PC or palm-top. The advantage of online testing is that once

the test is completed, an analysis of the results can be calculated straight away. This means that

the organisation can continue with the selection process with the results ‘in hand’ rather than

keeping the candidates waiting or send them home and call them back on a later date. Another

advantage is that candidates can take the test at a recruitment agency or even in their own home.

Online testing is particularly suitable for initial screening as it is very cost-effective.

THE JIT PHILOSOPHY

Companies in sectors like BPOs, financial services and retail firms are troubled with the problems

of rising employee attrition. Such companies have been opting for Just in Time (JIT) service. The

JIT Philosophy is built on the principle that a consumer’s demand has to be met with minimum

delays, which works well for a human supply chain, too. Some employees quit companies after

training even before earning anything for the company. In such situations, JIT comes handy by

ensuring that their new recruits become productive from Day One. In the case of JIT, the ROI for

all parties involved is ensured. Firstly, for companies, the total cost of ownership per employee

will drop. Secondly, the new recruits are assured of both the job and the training in the firm

without paying any fee. Thirdly, the recruitment and training companies can charge a premium

from hiring companies for sourcing the required candidates. Thus, the model ensures that

employees become billable from day one.

VISUME

Second only to employee referrals, the most impactful tool for effectively demonstrating the

excitement and passion at a firm is online video. Today, video resume, popularly known as

‘visume’, the potent combination of the internet and video, has imparted a digital form to the

resumes. It is short video developed by the candidate showcasing his skills and experience for a

job position, which is then uploaded on suitable job portals for prospective employers to view. If

a picture is worth a thousand words, then moving pictures demonstrating what it’s like to work at

your firm would have to be “priceless.” Video resumes have opened the gateway for a

revolutionized concept in the field of online recruitment. They are fast proving to be a handy tool

for prospective candidates for marketing themselves faster and better.

UTILIZING SOCIAL NETWORKS

Few firms have found productive ways to truly leverage social media sites. However, as new

approaches are developed that more accurately align with the paradigm of social media audiences,

recruiting on social networks will become more mainstream. Focus areas include encouraging

your employees to be more visible online and using networks to identify innovators. Key

networking sites include Facebook, MySpace, Friendster and LinkedIn.

USING MOBILE - PHONE RECRUITING

As mobile phones with amazing features spread throughout the population, recruiting managers

are beginning to realize that they can be a powerful recruiting media. Key focus areas include text

messaging, mobile video, and mobile-accessible corporate career sites.

USING EMPLOYEE BLOGS FOR RECRUITING

A practice that is finally beginning to enter the mainstream is employee blogging to support

recruiting efforts. The very best firms use blogs not just to spread their message but also to

answer questions and to make their company appear more “real” and approachable.

REVITALIZING CORPORATE JOBS PAGE

Recruiting managers are beginning to understand that pitifully dull and dated websites drive away

innovators. Focus areas include providing personalized information to the visitor, flash video

integration, blogs, podcasts, and virtual Q&As.

RECRUITING GLOBALLY

Recruiting managers are beginning to learn how to differentiate multi-national recruiting from

true global recruiting. Key focus areas include global sourcing, globalized websites, and

globalized employer referral programs.

CHAPTER - IV

RECRUITMENT AND

SLECTION PROCESS OF

MARG LIMITED

RECRUITMENT AND SLECTION PROCESS OF MARG LTD.

Budgeting

Approval by CMD, Business Head and HR Head

Preparation of Job Description

Allocate Sources of Recruitment

Initial Screening of CVs

Calling and Scheduling

Preparation of Interview Schedule

Conducting Interviews

Approval by HR Head and Business Head

Issue of LOI to selected candidate Rejected

Accepted Offer to next candidate

Joining formalities and issue of Appointment Letter

Induction

Placement

Follow-up

Internal SourcesTransferIn-house DivisionReferrals

External SourcesJob PortalReferralsWalk-in Interviews

1. Budgeting

The process begins with assessing the manpower requirement as per the projects. This is done

by the Technical Department which maintains a Green Book for the same. The details of the

budgeting are then sent to the HR Department.

2. Approval by CMD, Business Head and HR Head

The HR Department sends this detail to CMD for approval. The approval is then sent to the

Business Head who forwards it to the HR Head. The HR Head then sends the details of

manpower requirement to the Recruitment Department to further carry out the process.

3. Preparation of Job Description

The next step is the preparation of Job Descriptions by the Departmental Head of the vacant

positions. Job Description is “a written record of the duties, responsibilities and requirements

of a particular job. It is concerned with the job itself and not with work”.

4. Allocate Sources of Recruitment Description

The Recruitment Department then decides upon the appropriate source of recruitment to fill

the vacant position. There are two types of recruitments: Commercial Recruitment and

Technical Recruitment. The sources of recruitment used by MARG LIMITED are as follows:

Internal Sources : In-House Division, Transfers and Referrals.

External Sources : Job Portals, Referrals and Walk-in Interviews.

5. Initial Screening of CVs

Various applications/CVs received are then screened out by the Recruitment Department

eliminating those who don’t meet the basic qualifications required for the job. The list of the

qualified candidates is sent to department related to the position to be filled who further

shortlist them as per their requirements.

6. Calling and Scheduling

The shortlisted candidates are then called up to confirm if they will be coming for interview

and to check the basic parameters provided in the CVs by the candidates. Also they are told

about the date and time for interview along with the required documents for interview. Date

and time decided is put on the CVs. Documents to be carried are:

Updated CV

1 latest photograph

Testimonials (both original and photocopied)

Last/Current company’s information and letter

Last salary slip

ID Proof

Address Proof

7. Preparation of Interview Schedule

An Interview Schedule is prepared in Excel which includes the following items: Candidate’s

name, Residence, Work experience, Current Company, Designation, CTC, Expected Salary,

Source of recruitment, Interview Date, Interview Time, Remarks. This Interview Schedule is

sent to the Recruitment Department (technical/commercial) and to the HR Head. One day

before the interview date, a reminder call is given to the candidates. In MARG LIMITED,

interviews are generally held on Fridays.

8. Conducting Interviews

On the day of the interview, the candidates are required to fill an Employment Form. There

are two types of Employment Forms: (a) for the designations below managers, and (b) for

designations of managers and above. Filled Employment Form attached with self attested

documents is sent to the Recruitment Department for verification. After verification,

interviews are held. Minimum 3 rounds of interviews are conducted. The candidates are

marked against different parameters on the Interview Evaluation/Assessment Sheet along with

the final remarks to differentiate between the shortlisted and not-suitable candidates.

9. Approval by HR Head and Business Head

Interview Assessment Sheet, Employment Form, CV and all other documents (in the same

order) of the shortlisted candidates are then sent to HR Head and Business Head for their

approval.

In case of post for manager or above, Chairman’s approval is also required. Some interviews

are conducted on construction sites itself. In such a case, all requisite documents and the

joining report are sent to the HR Department, Head Office.

10.Issue of LOI to selected candidate

Preparation of Letter of Intent (LOI) or Offer Letter is the next step. LOI is generated by ERP.

Two copies of LOI signed by the HR Head are made. One is given to the candidate and

another is sent for CMD record.

In case, the selected candidate is not available, LOI is mailed to him or a call is given to him.

Also, the candidate is also told about the policies of the company, bachelor’s accommodation,

additional HRA (if with family), conveyance, food facilities, etc.

There is a separate MIS for LOI with the following contents:

Candidate’s name

Post and Department selected for

Joining Date

Current/Previous Employer

Residence

Contact

Remarks

11. Joining formalities and issue of Appointment Letter

If the job offer is rejected by the selected candidate, the job is offered to the next most suitable

applicant. Acceptance of job offer by the candidate is followed by the joining formalities.

For fulfilling the joining formalities, the employee is required to fill a Joining Form

containing personal details, gratuity fund nominees, Form 2 (for deducting PF) and Form 11

(for not deducting PF), etc. The appointment letter is also given on the same day.

All the requisite documents are then verified which includes: Mark Sheets, Experience

Certificates, last salary slip, leaving letter from the last organisation, ID proof, address proof,

etc.

12. Induction

The next step is to carry out an effective induction program. Induction is a systematic &

planned introduction of employees to their jobs, co-workers and the organisation.

Organisational Manual is also given to them containing information about Marg Group, its

HR policies, on-going projects and the Organisational Structure of the related division. If any

person joins in Head Office (HO), a welcome note is issued to him followed by introduction

with the Departmental Head; issue of ID card; opening bank account and

e-mail id, sitting arrangements, etc.

Candidates are required to fill a feedback form to check the usefulness of the induction

program and its benefits for the employees.

13. Placement

After the process of induction is over, the employee is placed to the actual work area

(site/department) where he is supposed to work. It is HR Department’s responsibility to put him

in the right job, to achieve the optimum output for any organisation.

14. Follow-up

Once an employee is placed, follow up is done to ensure the selection of right man for right

job.

PROCEEDINGS FOR TRANSFER

HR Department sends their MIS of budgeting to different sites. Sites with surplus manpower send

detail of their excess manpower to the HR Department. Then, the HR Department talks to the Site

Incharge and the Project Coordinator of that site for confirmation. The Site Incharge is required to

e-mail the information of their surplus staff to the HR Department on the basis of which a

Transfer Approval is issued by the HR Department (Approval of ED is required). HR Department

then generates a Transfer Letter. Transfer Letter is kept in the personal file of the employee, and

also a copy is send to the Business Head, HR Head and project coordinators of both (current and

new) sites. Next comes Handing-over and Taking-over from the previous site to get a Clearance

Copy for working on the new site. The copy of clearance is submitted to the Departmental Head

and HR Department for records.

FOLLOW UP OF TRANSFERS

Follow up is required to check if the employee has reported on the new site or not.

There is a separate MIS for Follow Up. It contains:

Employee Code

Name

Designation

Date of Transfer

Reporting Date

Previous Site

New Site

Contact

Remarks

In Follow-up, there are three possible outcomes:

1. The employee transferred reports on the new site on time and performs his tasks as

required.

2. The employee transferred doesn’t report to the new site and the reason being that he is not

discharged from the previous site. In such a case, previous site is called up for

confirmation.

3. The employee transferred is discharged from the previous site but doesn’t report to the

new site. In such a case, the employee is called up. If it is not possible to contact the

employee; an Absenting Letter is mailed to both the sites regarding transfer but not

reporting, his salary is hold, and an Absenting Letter is send on his permanent address

through a registry. Two such letters are sent and even then if the employee doesn’t report,

legal procedure is carried out and accordingly, status in MIS is updated.

PROCEEDINGS FOR IN-HOUSE DIVISION

The process of recruitment through In-house Division is same as that of Transfer. The

only difference between the two is that Transfer takes place from one site to another

within the same division and in case of In-house Division it is from one division to

another.

CHAPTER - V

DATA ANALYSIS

DATA ANALYSIS

1. Which type of recruitment need your organization have?

0

20

40

60

80

100

120

Planned Anticipated Unplanned

Recruitment Need

Perc

enta

ge

INTERPRETATION

100% of the respondents are of the opinion that Marg Limited has planned need for recruitment

arising from changes in organizational policies.

2. What are the sources of recruitment that you use?

INTERNAL SOURCES

Promotions

Transfers

Referrals

EXTERNAL SOURCES

Newspaper Advertisements

Campus Recruitment

Job Portal

Walk-in Interviews

INTERPRETATION

Sources of recruitment that Marg Limited uses:

Internal Sources – Transfers, Referrals and Promotions.

External Sources – Newspaper Advertisements, Campus Recruitment, Job Portal and

Walk-in Interviews.

3. Do you think that recent trends of Recruitment and Selection have

influenced the process of Marg Ltd?

Yes

No

INTERPRETATION

100% responses agree that the Recruitment and Selection Process of Marg Limited has been

greatly influenced by the recent trends in the hiring process.

4. What are the recent trends of recruitment that your organization is using?

0

20

40

60

80

100

120

Outsourcing Job Portal Poaching/Raiding Online Recruitment

Recent Trends

Perc

enta

ge

INTERPRETATION

100% replied that among the various recent trends, Marg Limited uses only Job Portal

(Naukri.com) for recruiting.

5. Which source of recruitment provides the most stable and the least stable

manpower?

Commercial Recruitment

Job Portals Referrals

Technical Recruitment

ReferralsDirect/walk-in

Interviews

More Stable

Least Stable

INTERPRETATION

For commercial recruitment, Job Portals provides the most stable manpower whereas Referrals

provides the least stable ones. On the other hand, for technical recruitment, Referrals provides the

most stable manpower whereas direct/walk-in interviews provide the least stable ones.

6. How do you find the recruitment and selection policy of your organization?

INTERPRETATION

75% feels that the Recruitment and Selection Policy of Marg Limited is flexible whereas 25%

feels that it is rigid.

7. What is the basis of initial screening?

Basis for Initial Screening

Qualifications

Work-Experience

Related Background

INTERPRETATION

Qualifications, Work-Experience and related background are the parameters for initial screening

in Marg Limited.

8. How do you manage the outstation candidates for interviews?

0

10

20

30

40

50

60

Send mailand call them

TelephonicInterview

Both Others

Perc

enta

ge

INTERPRETATION

50% says that a mail is send to the outstation candidates calling them for interviews and 50% says

that both mail is sent as well as telephonic interviews are conducted for them.

9. Do you prioritize the outstation candidates while conducting interviews?

Yes

No

INTERPRETATION

100% replied that the outstation candidates are interviewed first.

10. Rank these skills based upon their preferences that you give while making selection.

Skills For Managers & above For Below ManagersBehavioral Skills 4 2Communication Skills 3 3Technical Skills 1 1Personality 2 4

INTERPRETATION

For managers and above positions, Technical Skills is initially looked for followed by Personality,

Communication Skills and Behavioral Skills.

For below manager positions, Technical Skills is initially looked for followed by Behavioral

Skills, Communication Skills and Personality.

11. When do you inform the candidates regarding their selection or rejection?

0

10

20

30

40

50

60

70

80

Immediately After 2 days Call only selectedcandidates

Perc

enta

ge

INTERPRETATION

75% says that an immediate feedback is provided while 25% says that only those who got

selected are called up and informed.

12. Does your selection process include Medical Fitness Test?

Yes

No

INTERPRETATION

100% says that the Selection Process of Marg Limited does not include a medical fitness test.

13. Do you consider those who were not selected for future requirements?

0

10

20

30

40

50

60

70

80

Yes NoPe

rcen

tage

INTERPRETATION

75% says that the candidates not selected are not considered for future requirements while 25%

says that those candidates are considered.

14.Whose feedback is considered for improving the recruitment and selection

process of Marg Limited?

HR Head

Interviewers

Candidates

INTERPRETATION

To improve the Recruitment and Selection Policy of Marg Limited, the HR Head’s, the

interviewers’ and the candidates’ feedback is considered.

15. How do you rate the recruitment and selection process of Marg Ltd.?

010

203040

5060

7080

Excellent Good Average BelowAverage

Poor

Perc

enta

ge

INTERPRETATION

75% rate the Recruitment and Selection Policy of Marg Limited as good and according to 25%, it

is average.

16.What all problems do you face while recruiting?

Problems

Non existence of technicalinterviewersLack of proper space

Incomplete documents

Limited budget

INTERPRETATION

The problems that the recruiters in Marg Limited face during the hiring process are - non

existence of technical interviewers, lack of proper space, incomplete documents filled by

candidates and limited budget.

CHAPTER - VI

FINDINGS

FINDINGS

Marg Limited has planned need for recruitment i.e. manpower requirement is estimated in

context to future plans.

Sources of recruitment that MARG LIMITED uses are:

o Internal Sources – Transfers, Referrals and Promotions.

o External Sources – Newspaper advertisements, Campus Recruitment, Job Portal and

Walk-in Interviews.

Recruitment and Selection Process of MARG LTD has been greatly influenced by the novel

recruitment practices inspite of the fact that it uses only Job Portal (Naukri.com) from the

recent trends of corporate recruiting. This is so because major recruitment is done through this

channel.

The Selection Process of MARG LIMITED does not include a medical fitness test reason

being that the organisation is into mass recruitment and testing each and every candidate is not

considered feasible by the management.

All from the Recruitment Department do not agree that the Recruitment and Selection Policy

of MARG LIMITED is flexible.

To improve the Recruitment and Selection Policy of MARG LIMITED, the HR Head’s, the

interviewers’ and the candidates’ feedback is considered but the policy is reviewed as and

when required rather than being done on regular basis.

The problems that the recruiters in MARG LIMITED face during the hiring process are:

Non availability of technical interviewers

Lack of proper space

Incomplete documents filled by candidates

Limited budget

The Recruitment and Selection Policy of MARG LIMITED is considered to be good but there

is a scope for improvement.

CHAPTER – VII

CONCLUSION

AND

RECOMMENDATIONS

CONCLUSION

Recruitment and Selection process as an HR function has assumed critical importance in today’s

business scenario. For an HR executive, it is like a treadmill, as the constant supply of intellectual

capital has to be ensured to retain the competitive advantage for the company. It is a complex

process in the sense that one has to be very careful in distinguishing between ‘eligibility’ and

‘suitability’ for a job. A candidate may satisfy the conditions of the former but it is the latter that

the recruiter has to look deeper into, to get a 100% fit for the required job.

It is important to have a well-defined recruitment and selection policy in place, which can be

executed effectively to get the best fits for the vacant positions. Recruitment and Selection

process involves a systematic procedure from sourcing the candidates to arranging and

conducting the interviews and picking the most suitable candidate who would best meet the

requirements of the job and the organisation, decision making, conveying the decision and the

appointment formalities.

Shortage of and frequent job hopping by talented and skilled employees are forcing HR

department to come up with innovative methods of finding the so-called “right fit”. Even the

conventional advertisements are getting catchier and fancier by the day. Outsourcing, online

assessment, poaching/raiding, video resumes, boomerang recruitment etc., are some of the

methods being adopted. By and large, job portals and online recruitment methods appear to have

become very popular with almost 80% employers taking them up. They are also proving highly

cost-effective. Next in the line are the greater use of internal recruitment and incentive-based

employee referral method. One major change in the conventional HR set-up of an organisation is

the establishment of a dedicated ‘recruitment team’ on round-the-year and full-time basis, which

augurs well for both the company and the HR department. With the rise in demand in talent, there

is a surge of search firms which adopt a highly professional and process-driven approach to

identify a suitable candidate.

Marg Limited is a fully integrated infrastructure company participating in India’s core infrastructure and

construction sectors. A clear and concise recruitment policy helps ensure a sound recruitment

process. The organisation does not have a well defined policy for recruitment and selection. Also

the hiring process is considered to be good but needs to be modified in order to produce better

workforce.

RECOMMENDATIONS

Though the Recruitment and selection procedure at MARG LIMITED is satisfying but still the

following suggestions can be made use of, to make it better.

The organisation lacks in proper arrangements for interviews. Therefore it needs to focus on

the following:

Proper sitting arrangements for the candidates appearing for interviews.

A separate room should be made available for them to avoid any kind of disturbance in the

routine work.

A panel of interviewers needs to be formed.

Telephonic Interviews should not be conducted wherever possible especially in case of

outstation candidates to save time and money and efforts of the interviewers. Only those

people willing to take a serious move should be asked to come for an interview.

Selection process should include a written test, which should be objective and should cover

concerned subject knowledge as well as psycho-analysis and personality test. This will help in

shortlisting the suitable candidates for interview and thus save time and efforts of the

interviewers.

Co. should also give a chance to freshers i.e. the budding talent without experience. They can

also prove to be assets for the co. if a proper candidate is selected.

Medical tests should be included in the selection process. Though it is not feasible, in terms of

time and money, to test each and every candidate who appears for an interview but those who

are selected must undergo a medical fitness test before fulfilling the joining formalities.

The Recruitment and Selection Policy of MARG LIMITED is reviewed as per the

requirements but with the change in the trends it must review its policies atleast every 6

months.

Since the not selected candidates are not considered for future requirements, resumes which

are more than 6 months old should be destroyed or send for recycling.

Outsourcing saves a lot of resources and time of the organisation by initially screening the

candidates according to the needs of the organisation and creating a suitable pool of talent for

the final selection by the organisation. Since the organisation is into mass recruitment,

outsourcing can prove to be beneficial for the organisation.

ANNEXURE

INTERVIEW SCHEDULE

(The details provided in the questionnaire will be kept confidential)

Name :

Designation (with depart.):

1. Which type of recruitment need your organisation have?

Planned Anticipated Unexpected

2. What are the sources of recruitment that you use?

Internal Sources

Transfers Promotions

Referrals Retrenched Manpower

Others (please specify) _________________________________________

External Sources

Newspaper Advertisements Private Agencies

Campus Recruitment Others (please specify) ___________

3. Do you think that recent trends of Recruitment and Selection have influenced the process

of MARG LIMITED?

Yes No

4. What are the recent trends of recruitment that your organisation is using?

Outsourcing Poaching/Raiding

Job Portals Online Recruitment

5. List the sources of recruitment providing most stable manpower and least stable

manpower.

_________________________________________________________________

_________________________________________________________________

6. How do you find the recruitment and selection policy of your organisation?

Rigid Flexible

7. What is the basis of initial screening?

Qualifications Work Experience Skills Knowledge

Reference Others (please specify) ____________________________

8. How do you manage outstation candidates for interviews?

Send mail and call them

Telephonic Interviews

Both

Others (please specify) _______________________________________

9. Do you prioritize the outstation candidates while conducting interviews?

Yes No

10. Rank these skills based upon their preferences that you give while making selection.

For Managers & above For Below Managers

Behavioural Skills

Communication Skills

Technical Skills

Personality

11. When do you inform the candidates regarding their selection or rejection?

Immediately

After 2 days

Call only selected candidates

12. Does your selection process include a Medical Fitness Test?

Yes No

If no, why?

__________________________________________________________________

13. Do you consider those who were not selected for future requirements?

Yes No

14. Whose feedback is considered for improving the recruitment and selection process of

MARG LIMITED?

__________________________________________________________________

15. How do you rate the recruitment and selection process of MARG LIMITED?

Excellent Good Average Below Average Poor

16. What all problems do you face while recruiting?

__________________________________________________________________

Suggestions for improvement

__________________________________________________________________

__________________________________________________________________

__________________________________________________________________

BIBLIOGRAPHY

BIBLIOGRAPHY

WEBSITES

www.marggroup.com

www.corporateinformation.com

www.google.com

www.bseindia.com

www.moneycontrol.com

www.valuenotes.com

BOOKS

V. S. P. Rao, Human Resource Management, Second Edition, 2005. Excel Books, New Delhi.

C.B. Mamoria and S.V. Gankar, Human Resource Management, Second Revised Edition,

2003. Himalaya Publishing House, Mumbai.

K. Aswathappa, Human Resource & Personnel Management, Third Edition, 2002. Tata

McGraw-Hill publishing Company Limited, Noida.

D K Bhattacharyya, Research Methodology, First Edition, 2003. Excel Books, New Delhi.

MAGAZINES & JOURNALS

Recruitment Dynamics, HRM Review, Vol. –VIII, November 2008, The Icfai University

Press, Hyderabad.

Boomerang Recruitment, HRM Review, Vol. –VIII, November 2008, The Icfai University

Press, Hyderabad.

Recruitment - Emerging Trends, HRM Review, Vol. –VIII, November 2008, The Icfai

University Press, Hyderabad.