Project Report

On

Recruitment and Selection Process: A Comparison between a Manufacturing and Services sector.

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

Masters of Business Administration

In

Human Resources & Marketing

Under The Guidance of Submitted by

Ms. Tejbir Kaur Khushboo Sindhu (10800563)

Department of Business Administration

Lovely Professional University

Phagwara–140 401, Punjab (India)

CERTIFICATE

This is to certify that the project report entitled “Recruitment and Selection

Process: A Comparison between Manufacturing and Services sector”submitted

by Ms. Khushboo Sindhu is a bonafide piece of work conducted under my direct

supervision & guidance. No part of this work has been submitted for any other

degree of any other university. The data sources have been duly acknowledged. It

may be considered for evaluation in partial fulfilment of the requirement for the

award of degree of Master of Business Administration.

Date: August 2012 Ms. Tejbir Kaur

Lecturer

ACKNOWLEDGEMENT

“Acknowledging the debt is not easy for us as we are indebted to so many people”.

I take this opportunity in expressing the fact that this project report is the result of incredible amount of encouragement, co-operation, and moral support that I have received from others.

Words alone cannot express my deep sense of gratitude to Mr. Rajeev Bhatt ,

who provided me an opportunity to be a part of NFL for my training. Their

valuable guidance & support made this project work an enlightening educational

experience.

I would also like to express my gratitude from the core of my heart to my Mentor

Ms. Tejbir Kaur, who helped me in coordinating my entire project. Their consistent

support and cooperation showed the way towards the successful completion of

project.

I would like to express my deep sense of gratitude to all the members of

Jobachievers, who directly or indirectly helped me during my project work.

Khushboo Sindhu

RECRUITMENT AND SELECTION PROCESS:

CASE OF COMPARISON IN RECRUITMENT PROCESS OF KUDOS

CHEMICAL LIMITED(manufacturing) and VIRASAT-E-

KHALSA(services).

Abstract: In this research paper, a study hs been made on the recruitment and selection

processes between the two different sectors, i.e; Manufacturing sector and Services sector. The

study indicates various techniques used by the two companies, that is, Kudos Chemical Limited,

that is a manufacturing company and Virasat-e-Khalsa which belongs to the services sector. The

study made under observation comprises of the services and guidance of a recruitment agency

called Jobachievers, that is functioning from its office at Chandigarh, to provide job

opportunities to the dserving candidates, in mostly areas in Punjab.

Index Terms: Recruitment, Selection

1) INTRODUCTION

The two companies undertaken in the project study comprises of a manufacturing firm named

KUDOS CHEMICAL LIMITED and a servicing unit named VIRASAT-E-KHALSA. The

former is having a chemical base and is in the business of manufacturing “caffeine”.

The latter is a service unit, having the structure of a theme museum, in which the culture of

Punjab has been depicted in a versatile manner. Both of the companies need an adequate base of

employees, who can carry out the various functions int the firms. Due to the different nature of

the working aspects of these two firms, the recruitment and the selection process of both the

firms are entirely different.

The only area in which the recruitment process of these two firms concides is that both the firms

seeks out the help of recruitment agencies to find the appropriate and deserving candidates for

their firms. The project report, hereby, includes my work at such a recruitment agency named

“JOBACHIEVERS” under which I studied the recruitment and selection processes of various

firms and prepared my project report on the comparison between the recruitment and selection

process of a manufacturing firm and a service firm.

The process of recruitment begins with the sending of the “Job description” by the company. The

job description is comprising of the following requirements:

1) Position vacant

This very first point, clarifies to the recruiter, for which required position, the candidate is

needed. The recruiter then make use of the data that is available to him, or creates new data of

the candidates. Since I undergone the training in a job consultancy, there was pre-recorded data

already available. Thus, the recruiter can contact the person and can make him attend the

scheduled interview for the required post.

2) Examining the Job description

The Job description provided by the company tells the recruiter, the complete insight of the

position vacant and also provides the knowledge of what the company is seeking in the required

candidate. Understanding the complete JD (Job description) only can help the recruiter to move

to the next step. If the recruiter fails to understand the need of the company from the JD

provided, then all of the steps undertaken by the recruiter would turn out to be a failure.

3) Finding the required candidate

The major work of the recruiter begins here. The companies are loaded with many

responsibilities, due to which they put the pressure of the recruitment and selection of the

required candidates on a job consultancy firm. Since these firms basically, are into the business

of recruiting only, so they are having much broader aspect and determination for the access and

selection of the job seekers, plus the job providers.

Here, there are some major tools that a recruiter put to use to, in order to generate new data,

which comprises of the required candidates relevant to the given job description.

“JOB PORTALS”, usually called “PORTALS”, in midst of recruiters, are the major source of

providing the data required for the relative job description. The recruiter have the access to these

portals, by paying an amount to these portals. These portals contains the data of candidates from

almost every part of the world, ranging from a wider aspect of qualifications and experiences.

These job portals have some very famous names among them. “NAUKRI.COM”,

“SHINE.COM” and “MONSTER.COM” are some of the major job portals that are having the

bio-data of millions of candidates. The job-seeking candidates upload their resumes on these

portals, so as to open up their profiles to the recruiter and to update themselves by the latest and

the relevant opportunities in the market.

The job portals have a specific area called the “EMPLOYER’S ZONE” , through which the

recruiter can make his/her personal account and can post the relevant job and can send invites to

the desired and qualified candidates. The desired candidates can then reply to the message sent

by the recruiter, through his/her own message.

These job portals provides a very efficient method of posting the job by the employer or

recruiter. The recruiter can post the job through the “Search-Post” method or he /she can simply

search for the desired candidates through “advanced search” and can find out the resumes of

various candiadates. These portals have a special feature in which some of the portals give the

contact number of the candidate to the employer without charging any fee, and some portals do

not provide this offer to the employer.

4) Interviewing the candidate

After the candidates has been shortlisted by the recruiter, the candidates are called for the

interview. For this purpose, the recruiter prepare a logical approach to make the candidate,

understand the job for which the candidate is required and also interview him/her on the basis of

their qualification and experiences.

In some of the cases, the recruiter is the only one who conducts the interview by himself. An

another aspect when the recruitment process is handed over to a recruiting agency, the candidates

are called upon and interviewed by the agency people only. The company always would have

foretold the recruiter about the kind of candidates required, for a specific job.

5) Job Analysis

The next and the foremost part of the job procedure is “Job analysis”. When the recruiter finally

get the required candidate, then he/she has to prepare an analytic form of the work, the employee

has to do. This complete process is called “Job analysis”. Job analysis, basically, is the procedure

for determining the duties and skill requirements of a job and the kind of person who should be

hired from it.. (Reference: Human resource Management,11th edition,ch.4)

Job analysis further furthur produces information that is to be used for writing Job Descriptions.

Job analysis is furthur necessary to support several human resource management activities. In

case of recruitment and selection process, job analysis provides information about what the jobs

entails and what human characteristics are required to perform these activities. This information,

in the form of job descriptions and specifications, helps managers decide what sort of people to

recruit and hire.

Job description is again a product of job analysis. Jon description is a list of a job’s duties,

responsibilities, reporting relationships, working conditions and supervisory responsibilities. Job

description then furthur helps in training and development process, because it lists the job’s

specific duties and requisite skills.

Thus job analysis, is a a basic tool that is required bby the recruiter in making the candidate

understand the job carefully and properly. Certain other activities related to human resources like

Performance Appraisal, compensation and Legal compliances are also dependent on the Job

analysis procedure.

In this manner, the whole recruitment and selection process from the side of a recruitment

agency is done.

Now the question arises that if the whole recruitment process goes through such a

systematic, simplified and step-wise manner, then why do companies hire recruitment

agencies for this purpose?

The answer to this problem lies in several layers. The companies relies on the recruitment

agencies for a number of reasons, that they cn fulfill by simply hiring a recruitment agency,

rather doing it themselves. Some of the reasons for their hiring the recruiters are;

1) To save the time doing the recruitment.

Since the recruitment process is a very prolonged and time-constraint activity, that requires keen

observation and insight of the candidate’s perspective, qualification and approach towards the

job, so the company, by hiring a recruitment agency, save that time of theirs, to accomplish some

other task. The HR department of a company deals with a lot many activities related to legal

compliance of the company, the compensation methods and procedures for the employees etc. so

the time for hiring the new candidates become a tough job for the department, as such they have

to devote their time for a prolonged and a careful approach of finding the right candidate for the

vacant position in the organization. So the organization finds it easier to hire a recruitment

agency for the purpose of the recruitment and selection of the candidates.

The recruitment agency, having its due attention and business approach towards hiring the right

candidates for the right job, pay its full and foremost attention towards the hiring of the

candidates. Thus, by saving the time of the organization, they also provide the required

candidates for being the employees for the particular organization.

2) Convenience of coordination

When it comes to the convenience of coordination within the organization and the recruitment

agency, it becomes much more easier to coordinate with each other regarding the Job

descriptions, the interview handling and the final selection of the candidates. The company finds

it easier to connect with the recruiters to discuss only a few important points on the recruitment

process and not on the entire selection process. Thus, it becomes easier for the organization to

coordinate with the agency, rather than handling the prolonged process of selection themselves.

Also, the organization can keep a check on the activities of the recruitment agency by employing

an individual to maintain and record the progress made by the agency and to prevent any sort of

misunderstanding regarding any job constraint.

The coordination process between the organization and the recruitment agency, is a major factor

of the successful completion of the recruitment and selection process of the candidates. So, it has

to be very accurate and must be in due agreements within the two firms. Due to this convenience,

the organization put their steps forward in hiring a recruitment agency rather than handing this

process by themselves.

3) Replacement Policy

A significant and most prominently, a plus-point feature, why an organization depends much on

a recruitment agency for hiring employees for them, is the “REPLACEMENT POLICY”. Many

of the recruitment agencies (also the one in which I worked in) provide this unique feature. To be

stated, the recruitment agencies works the way like the candidate who is seeking a job and is

interested in the posted job by the recruiter on the portals, has to first register him/herself in that

particular agency. The agency has their charges from the candidates for the registration purpose.

After the candidate is registered in the agency, the interview is done by the recruiter or the

candidate is sent to the HR manager of the organization for the interview purpose. If the

candidate got selected in the interview, the agency charges for their part in the selection process.

These charges are of two different aspects.

a) If the company needed a candidate for a vacant position in their organization and

proposes a JD for the same, then after the selection of the candidate, the recruitment

agency charges its salary part from the company itself. The agency then, do not take any

amount from the employee’s end.

b) If the candidate is seeking a job in a reputed organization and contacts the recruitment

agency for the desired job, then the company sends the candidate in a particular company

for interview and if he/she gets selected there, then the agency charges its part from the

employee’s end and not from the company’s end.

This is how the recruitment agencies work. Now, for the point mentioned above, if a candidate

who is selected for the job and is placed in the organization, declines from the job or leaves it

due to some valid reason, within a given time of probation of the organization, then again the

position of that particular personnel would be left vacant. Here comes the role of the recruitment

agency again. According to the replacement policy, if such an employee, who is provided to the

organization by that agency, leaves the organization within a given time of probation, then the

recruitment agency is RESPONSIBLE for hiring another candidate fir the same position, without

charging any amount from the company’s end.

Due to this replacement policy, it become an advantage for the organization to hire a candidate

from the due help of a recruitment agency and not by themselves as the chances of getting a good

candidate from the one who is purely into the business of recruiting, is very high. And also, the

organization do not have to allocate its time in searching for an another efficient candidate for

the job, by again investing money on the whole procedure again.

Thus, the replacement policy is also a major factor, why an organization hires a recruitment

agency for hiring their employees.

Now that it is clear, that why organizations rely much on hiring candidates from the recruitment

agency’s side and not by themselves, we can now move on to the part that indicates some special

characteristics of the recruitment agencies. Due to these characteristics, the recruitment agencies

are considered to be the efficient choice of the organizations for hiring candidates for them, and

also by the candidates to provide better options for the job opportunities.

1) Act as Intermediates.

There are several instances when a job-seeking candidate cannot access the interview dates of an

organization from the data available on the sites of the organization. The general data available

on these sites are only the overview of what the organization do, and what progress they have

made in the present. Most of the sites only talk about the achievements of the organization.

Inspite of all this, very few companies have sites in which an option to upload the resumes by the

candidates interested for job, is available. The company also have a reason, NOT to put that

option on its websites to avoid spam and unwanted comments.

Now, the difficulty arises that neither the person who need the job, is able to upload his/her

resume on the company’s website, nor the company is having any resume or data of any

personnel that is required for some vacant post in the company.

Thus, in such cases the recruitment agencies act as intermediates between the job-seeking

candidate and the organization. These agencies have their tie-ups with the companies and thus

after receiving the appropriate JD, starts searching for the required candidates. Thus, the

candidate who is having the required qualification but was unable to get access to the company,

can also reach to interview desk, through the help of the recruitment agencies.

As a result bothof the sides purpose is served. And the recruitment agency get to act as the

intermediates between he two sides.

2) Can approach for collaborations.

The recruitment agencies, as are in the business of open recruiters, so they can approach any

organizations for the tie-up. To clarify this point, it is well known, that many of the organizations

have rivalries among them or even companies have cut throat competencies between them. Due

to this thing, these organizations do not communicate with each other.

But since each side of the business groups want good candidates for their organizations, so they

indulge in tie-ups with the recruitment agencies. It is the job of the recruitment agencies then to

make candidates available to all the business groups, without creating any favoritism and to work

without having any influence of any organization.

Moreover, the recruitment agencies are not bound by any sort of restriction by their

collaborators, not to approach any of the business units for business purpose. These agencies can

approach to the organizations that are having a small business unit to that of a large one, ranging

from manufacturing sectors to service sectors and from the government -owned organizations to

the private players of the market also.

The range of these agencies also depends on the sizes of them. Some recruitment agencies runs

in a larger unit offices and some of them operates from smaller offices. Most of the agencies still

have the work process in them as manual, that is candidates records etc. are kept as manual files

and data are maintained in registers or folders. But now on, the recruitment agencies are taking a

broader range, operating in big offices and the work process there is also shifting from manual to

computerized. That is, the data entry of the candidates are done in computers and special

softwares are created that can access the incoming JD’s from the companies and can search the

suitable matching candidates from the available data.

The candidates are contacted immediately through an E-mail or a message to the contact

numbers of the candidates and there are less chances of spam or missing entry and also the

chances of a missed candidate, decreases to a large extent.

3) Cut the competencies.

This is critical point to be mentioned and explained in the report, but is the extreme feature of

the agencies also. Since, the recruitment agencies have tie-ups with many organizations and also

deals with the business groups who are having rivalries or tough competencies among them, so at

many times, one organization can approach the rec ruitment agency to get the employees of some

other organization to join a jjob in their own organizations, at more pay-packages than the

previous ones.

Among all of the strategies that an organization applies to make its venture successful, this is

also one of the strategies of the company to cut the competency given to them by other

companies. Since every organization is well aware of the deserving assets of the other

organization, the organizations at many times tries to cut this competition by hiring those

employees of the others who are solely responsible for the success of any project, by offering

higher pay-packages to these employees. If the employee is committed to the organization,

he/she do not accept the offer but many cases are there, in which this thing happen.

Now, the part of the recruitment agency comes like, that one organization cannot approach the

employees of the other, directly. So they do it through the recruitment agency. The agency, on

the behalf of the other organization approach those desired employees and make an offer to

them, for the higher package for the shift in jobs plus the organizations.

Thus, being a rather critical point to be mentioned here, it is a point that is also a characteristic

of the recruitment agencies though being a disputable one.

4) Provide candidates a broader range of opportunities.

The recruitment agencies are having a larger range of dealing with different agencies. . These

agencies can approach to the organizations that are having a small business unit to that of a large

one, ranging from manufacturing sectors to service sectors and from the government -owned

organizations to the private players of the market also.

Since both the companies and the candidates with qualification, need each other, but only due to

the lack of coordination, a better talent and a better job opportunity is lost, both of the sides has

to suffer. Now, due to the role played by the recruitment agencies in the midst of them, the jjob-

seeker gets a btter job opportunity for themselves according to their qualificati0on and

experience, at the same time the organization also gets a better employee for their work who can

lead the company to success in the coming future.

As the range of the agencies are very broad, the candidates also get access to various other

opportunities which they can work up depending on certain abilities of them. Many of the

recruitment agencies have the job access to more than 1 or 2 places. They can provide the

deserving candidates a whole lot of openings to their career.

2) PROJECT BACKGROUND

2.1) KUDOS CHEMICAL LIMITED

2.1.1) BACKGROUND OF THE COMPANY

Website of the company:

KUDOS Chemical Limited is a manufacturing company which is in the business of

manufacturing “SYNTHETIC CAFFIENE”, a substance that is commonly found in various

products like Coffee etc., Chemicals, Potassium Chloride, Caustic Soda Pills, Aluminium

Sulphates, Hydrochloric Acids, and Sulphuric Acids in India. the company is located at

Derabassi, near Chandigarh.

The company is operating in a huge plant situated at Derabassi,near Chandigarh. Nearly 1800

employees are already working on the rolls of the company. The HR department of the company

has an active group of 16 members, who handles the entire works like recruiting and selecting

the employees, regulating and controlling the attrition rate, managing payrolls etc.

The Company is dealing in the making of various chemicals, thus having a huge chemical base.

The recruitment process for the required candidates is usually conducted by the recruitment

agency. The company, as mentioned, is having the business of manufacturing chemicals, so the

main requirement of the candidates is from the field of chemical background.

Currently, the company is also undertaking other projects in which it is including

pharmaceuticals branch and therefore, includes the recruitment and selection of candidates

having degree in pharmacy.

2.1.2) AREA OF BUSINESS

Kudos chemical limited, as the name suggests, is a chemical manufacturing company, which

deals in the production of Synthetic Caffeine, Chemicals, Potassium Chloride, Caustic Soda

Prills, Aluminium Sulphates, Hydrochloric Acids, and Sulphuric Acids in India. The company

is having its huge chemical base, operating in a significantly great operating unit functional at

derabassi, near Chandigarh.

For its functioning, the company basically requires persons who have complete knowledge of the

chemical field. “Chemical Engineers” are in a great demand in this manufacturing unit.

Candidates who are having either a diploma or degree in chemical field, are always required in

the plant. The company generally starts off with the initial post of an executive and moves over

thereafter.

The manufacturers of these chemicals have a great deal of bonding with the other chemical

manufacturers. The clients of this company are also distributed in every part of India. The

products manufactured in this unit goes to the manufacturers of various other products, like

synthetic caffeine goes up in the production of coffee, chocolates etc. and hydrochloric acid goes

to the manufacturers of salt production.

Thus, this unit deals in chemicals and therefore many manufacturers dealing in similar or

somewhat different products.

3) COMPARISON GROUNDS

3.1) OWNERSHIP

KUDOS Chemical Limited is a privately owned company, which is having all of its business

into the manufacturing of chemicals like Synthetic Caffeine, Chemicals, Potassium

Chloride, Caustic Soda Prills, Aluminium Sulphates, Hydrochloric Acids, and Sulphuric

Acids in India.

3.2) STABILITY PURPPOSE

No doubt, every company believes to have a stable employee who can work upto his/ her

fullest, also by being stable. Stability in a company usually states that the person should not

switch to some other organization in between an estimated period of probation.

Since the company is liable to provide training to the freshly employed candidates for the

prescribed work, the employee must get the training before he/she can think of promotion.

Generally, the employees are much more concerned about their designation and the also the

salary expectations of these candidates are very high. Keeping this thought is not purely

incorrect but first of all, the candidate has to qualify himself for the wishes of his own. That

is why, this is also in the norms of the company to start from an initial moderate salary

according to the qualification and experience of the candidate, and to provide him training of

the work that he/she is supposed to do in the company.

The organization checks the stability ot the personnel by allotting a time period of probation.

Now in this time, the company trains the employee and also cheks the stability.

Many cases are there in which the candidates appearing for job interview, already have work

experience, that is, they have worked in an already running organization.so, the chances of

their job shifting are many more, including the salary issues. While interviewing such a

candidate, the recruiter keeps a check on the candidate’s last work location and the field in

which he worked in. if the recruiter finds out that that the candidate is shifting his/her job

very quickly and frequently within 4-5 months, then the thought always come across the

recruiter that such a candidate would not be stable in an organization for a longer period of

time. Many recruiters avoid hiring such an employee because if the employee leaves an

organization, then the organization also suffers. The organization then, has to find a new

employee, shortlist candidates, conducts interviews and moreover, have to incur expenditure

on the training and development procedure of the new employee.

Thus, the stability of an employee is an important factor, which the organization and the

recruiter keeps in mind while employing a candidate, so that the organization do not serve a

loss again, and the recruiter keeps this thing in mind due to the norms of the “Replacement

Policy”.

3.3) SALARY PACKAGES

In most of the cases, while sending the JD’s (Job Description) to the recruiter, the

organizations also mentions the initial pay packages that has to be offered to the deserving

candidates. It is mentioned in the norms of the organization, what salary has to be given to

the employees according to their qualification and experiences.

There are some special norms of the organization according to which the salaries of the

employees has been decided by the HR Department of the organization, keeping in mind the

legal compliance of the company. The HR department mentions the salary packages that has

to be given to the employees of various scales and experiences.

The recruiter, while interviewing the candidates, keep in mind the salary norms. If the

recruiter after interviewing the candidate, finds him/her eligible for the required job, then the

last step is to discuss the Job location and the salry packages. The recruiter has to offer the

candidate the set amount of salary package that comes along with the JD sent to him by the

organization itself. Now, again according to the qualification and experience of the

employee, the salary gets changed.

If the candidate is a fresher in his/her field then, the salary package initially begins from Rs.

7000/- and then grows as the candidate works his way forward in the company. Kudos

Chemicals Limited has certain set norms for the candidates according to their experience, and

their qualifications.

If the candidate is having diploma in the field of chemical engineering, then the candidate has

to start at Rs. 5000 initially. If the candidate is a graduate having a degree in the required

field, then the inintial salary package is Rs. 7000 for him. And the candidate who is having

an experience in the required field, the starting salary package is Rs 10000-12000, initially.

As per about incentives, the company is responsible for the transportation facilities for the

candidates. The company provides the candidates with increments, according to the time-

span of the work and the quality and amount of work that is to be done bby the candidate in

his/ her allocated period of time.

3.4) PROBATION PERIOD

Every organization has a specific period of probation for the newly hired employees. This

probation period is usually called “Training Period” in the employees generally. The

probation period is set by the organization in order to train the new employees and to see the

skills of the qualification they have.

Kudos Chemical Limited is generally having a probation period of 1 year, for its newly hired

employees. Since, the plant operating is very large and there are a number of works that are

ongoing in a line, so the company has to train is employees about every work that is in

process. Since, the candidates are already from the chemical engineering background so the

company faces a quite minor problem to train the candidates as they do not have to start off

from the beginning.

The probation period is also having another important factor indulged in it. Sometimes the

employee hired does not find the job comforting or the the company feels that the hired

candidate is not upto the mark or is having some problem while adjusting with the job. The

probation period decides this very thing. The company gets to see the knowledge and skills

of the employee and the employee also gets a hint of how his/her career would go, being in

such an organization.

Kudos, however gives and takes a time of 1 year to get a complete insight of the employee,

and also provides the candidate with the adequate time to think and get through with his/her

job process. If in this period of time, the employee wants to quit the job, he/she can do that.

The company does not impose any responsibility on him/ her until then. But once the

candidate comes ON-ROLLS, then unlike the previous employees, the newly hired

employees also comes into the compliance of the company and they have to give a 3 months

notice, before they resigns from the job.

In the probation period, the company provides the interns with a particular amount of money,

that is called, stipend, as the employees are under training period. The proper salary amont are

not given to them until they complete their training period and become permanent employees of

the company. So, again gets time to check the stability of the newly hired employee, working as

an intern in the company.

Within the probation period, as the organization becomes aware of the skills and knowledge of

the employee and have also put a test to the learned up knowledge of the employee, to testing,

the probation period helps the organization to set the salary package for the candidates. No

doubt, the skillful candidates acquire better salary packages after their good performances in this

probation period and few employees gets sacked due to their poor performance in this probation

period.

This is why, the probation period is necessary as well as important both for the employee as well

as the organization.

3.5) RECRUITMENT PROCESS

Another significant, yet most important, differentiation comes in the RECRUITMENT

PROCESS in the organization. Since, Kudos Chemical Limited is a manufacturing unit, so that’s

why the recruiter has to keep in mind, the work background and the qualification of the

candidate in mind. While doing the recruitment, we see to it that the organization was mainly

having the demand of chemical background people. So, before we begin the recruitment process,

we have to completely understand the JD received from the company. Half of the process is

completed at the end of the recruiter, if we understand the JD completely.

Also, the company’s also requires different categories of employees. Sometimes the requirement

is of the diploma holders and sometimes the requirement is of degree holders. So, candidates are

called according to their qualification and their experience. Then begin the interview process.

The recruiter calls the candidate, reminding him/ her to bring his/her resumes or CV”S. we then

take an interview of the candidate as per his/her qualification as mentioned in their resumes. The

questions asked generally, are related to their field and relative to the aptitude of the candidate.

If in some cases, the organization demands to interview the candidates themselves, then the

recruiter’s job is to shortlist the candidatesand send the deserving and interested candidates list

and the soft copies of their shortlisted resumes, to the HR of the organization.

In Kudos Chemical Limited, the interview is conducted by the HR manager of the company, but

the screening of the candidate is done at Jobachievers only (Jobachievers is the recruitment

agency here, in which my training was done). At Jobachievers, the candidates are called along

with their resumes and the screening is done initially. Then, the shortlisted candidates are then

sent to the company located at Derabassi. There, the final interview of the candidates are done by

the HR manager of the company. Thereafter the candidates are selected accordingly by the HR

manager of the company.

The selected candidates’s name and date of joining of the job is then sent to the recruitment

agency(Jobachievers, in this case). The company then provide the agency with the amount that

has to be submitted to the agency as their fee for the work.

After that, the agency also keeps a record of the candidate’s work profile and the satisfaction

level of his/her job there. This is due to the reason, because in case if the candidate quits the job

in the probation period or within 3 months, then the agency has to re-recruit another candidate at

the same place, keeping in mind the “Replacement Policy”.

Thus, the training and the development of the newly hired employee, is bkept on record by both

the recruitment agency as well as the organization.

3.6) INTERVIEW CONDUCTION

Interviews are the most popular methods for obtaining job-related information. They may range

from completely unstructured interviews to highly structured ones in which job analysts follow

detailed questionnaires in asking their questions. (Reference: Human Resource Management, 11th

edition, ch 4)

Interview conduction, is a point of differentiation, because of its mode of conduct and by whom

the interview is being conducted. In this study, this point came under observation due to the

following two points:

a) Mode Of Conduct

The mode of conduction of the interview is again of two types: Structured and Unstructured

Interview.

Unstructured Interview is an unstructured conversational-style interview in which the interviewer

pursues points of interest as tey come up in response to questions. In these interviews, the

managers do not follow a set pattern

Unlike the unstructured interviews, the structure d interviews are having a set pattern, that is the

interview follows a sequence of questions. These are such kind of interviews that are based on

carefully selected job-oriented questions with predetermined answers that interviewers ask of all

applicants.

Now, mentioning this point was the main cause of understanding the differentiation of it. In

Kudos chemical Limited, the interview approach shifts from unstructured to structed, depending

on the need of the job-profile of the candidate. Explain this point, the candidate may or may not

be asked questions related to his field. He/she may face an unstructured interview in which

questions about his previous job, reason to leave that job and about the previous company’s

management, can be asked in the beginning of the interview.

This is how, the interview’s mode of conduct is important.

b) Panel of interviewers

This point differentiates the interview mode in such a manner, that the differentiation could be

done at this point.

In Kudos Chemical Limited, generally the interview is taken by the HR manager of the

company. Since, the HR department of the company is quite broad and efficient, thus the team of

members of the department, are sometimes in the panel made for the interview purpose. The

company gives the recruiter, the authority to conduct a screening of the candidates prior to the

interview. Thus the recruiter at first, have to short list various candidate on the basis of their

qualification and experience, and then also have to conduct a short screening based upon the

field to which the candidates belong.

The candidates are asked questions about their code of conduct in the previous company, if they

have worked somewhere else before. Also, the recruiter asks question checking the stability of

the candidate, that is, whether the candidate is having a positive attitude towards the job or

he/she is just doing the job for money purpose, because such a candidate would not be loyal to

the company, as per ther company norms.

After the screening of the candidates, the recruiter sends the deserving candidates to the

company for the final interview purpose. The company has its full team of HR department who

are in the process of recruitment and selection and handles the interviews of the shortlisted

candidates very effectively accoding to their needs and skills required int the candidates.

After the selection of the candidates, the information is sent back to the recruiter about how

many of the shortlisted candidates are selected and the amount incurred by the recruitment

company is being given to them by the company.

3.7) DESIGNATIONS PROVIDED

This point is also a part of the differentiation. The designation provided by “Kudos Chemical

Limited” to the newly hired employees is of a “Production Executive”. After the training of the

candidates are done, then the newly hired employees work in the organization on the post of a

production executive. The salary packages of the employees are also given according to the scale

of the employees and their designations in the company.

At first, all of the newly employeed candidates work on the designation of “Production

Executives” and then work there way out. The designations keep on shifting as the employee

work proficiently and attains promotion during his/her work period. The employees also have to

work in the departments suited to their profiles, as the recruiter and HR department feels to put

the candidate into.

The company is having many divisions like Quality Control, Research and Development and

many others. The candidates are having their specialization in some of these fields but after the

interview, the organization decides in which division the candidate has to be placed.

Also, the organization also provides a way of “Job Enrichment”. For doing this, the company

keeps shifting the positions of the employees so that they may not feel fatigue while doing the

same work everyday.

Since all of the employees have got the training about starting of a work during their training

period, so the employees do not face any problem in the beginning of the work. And in the way

ahead, the employees have their supervisors, who introduce the new projects and the work to be

done, so that the employees do not have to face any problem, while performing the shift in the

work.

3.8) INCREMENTAL POLICIES

The organizations are having different incremental policies for the employees. Every employee

gets his/her increment based on 2 factors:

a) Time Period of the candidate in the organization.

The candidate is employeed as a fresh candidate when he/she starts off with an initial salary that

is to be considered as the stipend of these candidates. The employees when have the time period

increasing ont heir account, then the organization according to their legal compliance, starts

giving off the increments to their employees.

The candidates also due to the process of job enrichment when have the continuous shifts in

work and starts becoming the important assets of the organization, then the incremental policies

again goes to a different scale for the candidates.

The organization sees to it that the increment policies of the organization is in full recognition

and due consent of the owners and the employees. The organization always clear its norms to all

of the candidates an tell the candidates beforehand that what amount of increment they would

receive after a due interval of time. The candidates are having knowledge about how much time

they have to spend working in an organization in order to get an increment.

b) Experience of the employee

The candidate is having incremental policies keeping in mind their experience factors also. The

experience of the candidates is also a factor that ensures some extra incentives to the employees.

If an employee have worked already in an organization, then he/she receives a certain amount of

extra incentive added upto their salary packages.

Thus, experience of the employees also is a factor that is of significance to the incremental

policies of the candidates.

Now, these are some of the points of differentiation, that are in the respect of the case of

difference between the recruitmenmt process and here, the recruitment process in a

manufacturing unit, KUDOS CHEMICAL LIMITED is discussed.

Now, that the recruitment process in a manufacturing unit is discussed, we can now move to the

recruitment process in the services sector

For the service sector, I have researched on VIRASAT-E-KHALSA, the historical theme

museum, that is located in Anandpur Sahib, Punjab.

4) VIRASAT-E-KHALSA

VIRASAT-E-KHALSA is a historical museum, depicting the culture and religion of Punjab in a

very beautiful manner, Virasat-e-Khalsa is a museum of the Sikhs located in the holy town,

Anandpur Sahib, near Chandigarh, the capital of the state of Punjab. The museum celebrates 500

years of the Sikh history and the 300th anniversary of the birth of Khalsa, based on the scriptures

written by the tenth and last guru, Sri Guru Gobind Singh ji. Virasat-e-Khalsa is conceived as a

repository of the rich heritage of the Khalsa its history and culture of the Punjab so as to inspire

visitors with the vision of the Gurus, emphasizing the eternal message of the great gurus for the

whole mankind.

Towards the end of the fifteenth century, in the Punjab region of Northern India, Guru Nanak

Dev founded a faith rooted in the core values of universalism, liberalism, and humanism. The

nine Gurus who followed Him built upon and consolidated His teachings, thereby establishing

Sikhism not only as a belief system but also as a way of life. The year 1999 marked the

Tercentenary of the Birth of the Khalsa. To commemorate this event, the Chief Minister of

Punjab S. Parkash Singh Badal laid forth the outlines of a magnificient edifice to be known as

Virasat – e – Khalsa at Sri Anandpur Sahib.

The Heritage Complex is inspired by the rich natural and architectural heritage of Sri Anandpur

Sahib, while also drawing heavily from Sikh and regional architecture. Contrary to the tradition

of domes which crown the sacred Sikh sites, the roofs of the Museum are concave-shaped

receptors facing the sky. Sheathed in stainless steel, they reflect the sun’s light towards the

Gurudwara and the Fort.

After thirteen years of construction it has been inaugurated on November 25, 2011. It has opened

for public on November 27, 2011.

4.1) BACKGROUND

Virasat-e-Khalsa (formerly known as Khalsa Heritage Memorial Complex) is a museum

located inAnandpur Sahib.[1] The museum gives an insight to the events that took place

in Punjab five hundred years ago which gave birth to Sikhism and finally the Khalsa Panth. The

museum will throw light on the vision of the Gurus, the eternal message of peace and

brotherhood which they delivered to the whole mankind and the rich culture and heritage of

Punjab.[2] The museum is intended to commemorate 500 years of Sikh history and the 300th

anniversary of the Khalsa, the scriptures written by the 10th and last Guru of Sikhism, Guru

Gobind Singh, founder of modern Sikhism.

After thirteen years of construction it has been inaugurated on November 25, 2011. It has opened

for public on November 27, 2011.

Structure of the Museum

There are two complexes at each side of a ravine, connected by a ceremonial bridge:

The smaller, western complex includes an entrance piazza, an auditorium with 400

seating-capacity, two-story research and reference library and changing exhibition galleries.

The eastern complex contains a round memorial building as well as extensive, permanent

exhibition space, consisting of two clusters of galleries that try to evoke the fortress

architecture of the region (most evident in a nearby Gurudwara) and form a dramatic

silhouette against the surrounding cliff terrain. The gathering of the galleries in groups of

five reflects the Five Virtues, a central tenet of Sikhism.

The buildings are constructed of poured-in-place concrete; some beams and columns remain

exposed, though a great deal of the structures will be clad in a local honey-colored stone. The

rooftops are stainless steel-clad and exhibit a double curvature: they gather and reflect the sky

while a series of dams in the ravine create pools that reflect the entire complex at night.

4.2) AREA OF BUSINESS

Virasat-e-Khalsa is, as foretold, is a historical museum, that is in the business of art and

preservance of culture and basically belongs to the services sector. This museum is to enlighten

the visitors about the Khalsa Panth and also as to inspire visitors with the vision of the Gurus,

emphasizing the eternal message of the great gurus for the whole mankind.

The museum is into the business of services and deals into Public Relations and Development.

The Heritage complex is having all of the events of the past, that are depicted in a very

descriptive and visual manner, to all of the visitors that come in the museum.

In Virasat-e-Khalsa, the people ranging from the local civilians to the delegates from outside

India, visits and are keen to know about the history and religion of Punjab. As foretold,the

inauguration of this museum is done by the Chief Minister of Punjab, the delegates from the

public sector, visits the place to see the past events of the culture and to remain attached with the

roots of their religion.

The area of business of Virasat-e-Khalsa, is into services sector. As people fromall of the country

and outside, usually visits the place, so the management of the organization keeps a keen

observation on the Public Management. Whole of the business of this complex is totally on the

basis of Public Relations and managing the visits and interests of various categories of people

visiting there.

5) COMPARISON GROU NDS

5.1) OWNERSHIP

Virasat-e-Khalsa is a Government Owned organization. Built by keeping the governmental

orders to display the religion based events to the people, the government undertake of the events

that are undergoing in the heritage complex. The complex is dealing with all the local people to

the foreign delegates,all over the world and the government of India is responsible for

maintaining the the Heritage Complex, for the proper functioning and smooth ongoing of

business there.

The heritage complex is having virtual visual events, for example if a person wishes to see the

event of “Jallianwala Bagh Massacre”, and he visits the location, then the place is having the

facilities of Visual Projectors, who can make the scene of the massacre LIVE to the visitors.

Such is the processing of the Heritage Complex.

In order to maintain this complex, the Government of India is solely responsible for all of the

proceedings going on there. Whenever there is an official meeting taking place or some foreign

delegates are arriving to visit the Heritage complex, the arrangements are made that are to be

governed by the Government of India itself.

5.2) STABILITY BASIS

No doubt, every company believes to have a stable employee who can work upto his/ her

fullest, also by being stable. Stability in a company usually states that the person should not

switch to some other organization in between an estimated period of probation.

Since the company is liable to provide training to the freshly employed candidates for the

prescribed work, the employee must get the training before he/she can think of promotion.

Generally, the employees are much more concerned about their designation and the also the

salary expectations of these candidates are very high. Keeping this thought is not purely

incorrect but first of all, the candidate has to qualify himself for the wishes of his own. That

is why, this is also in the norms of the company to start from an initial moderate salary

according to the qualification and experience of the candidate, and to provide him training of

the work that he/she is supposed to do in the company.

The organization checks the stability ot the personnel by allotting a time period of probation.

Now in this time, the company trains the employee and also cheks the stability.

Many cases are there in which the candidates appearing for job interview, already have work

experience, that is, they have worked in an already running organization.so, the chances of

their job shifting are many more, including the salary issues. While interviewing such a

candidate, the recruiter keeps a check on the candidate’s last work location and the field in

which he worked in. if the recruiter finds out that that the candidate is shifting his/her job

very quickly and frequently within 4-5 months, then the thought always come across the

recruiter that such a candidate would not be stable in an organization for a longer period of

time. Many recruiters avoid hiring such an employee because if the employee leaves an

organization, then the organization also suffers. The organization then, has to find a new

employee, shortlist candidates, conducts interviews and moreover, have to incur expenditure

on the training and development procedure of the new employee.

Thus, the stability of an employee is an important factor, which the organization and the

recruiter keeps in mind while employing a candidate, so that the organization do not serve a

loss again, and the recruiter keeps this thing in mind due to the norms of the “Replacement

Policy”.

Talking about the Heritage Complex, the stability of the candidate is also necessary because

whenever the delegates from outside Idia, that is, foreign delegates come to visit the Heritage

Complex, they demand the same employee, who served them the last time they visited. Due

to their personal favourites also, the stability of the employees is a noticeable factor in this

case.

5.3) SALARY PACKAGES

Since this is a government job on adhoc basis, the salary packages can be a differential factor, in

this case.

In most of the cases, while sending the JD’s (Job Description) to the recruiter, the organizations

also mentions the initial pay packages that has to be offered to the deserving candidates. It is

mentioned in the norms of the organization, what salary has to be given to the employees

according to their qualification and experiences.

There are some special norms of the organization according to which the salaries of the

employees has been decided by the HR Department of the organization, keeping in mind the

legal compliance of the company. The HR department mentions the salary packages that has to

be given to the employees of various scales and experiences.

The recruiter, while interviewing the candidates, keep in mind the salary norms. If the recruiter

after interviewing the candidate, finds him/her eligible for the required job, then the last step is

to discuss the Job location and the salry packages. The recruiter has to offer the candidate the set

amount of salary package that comes along with the JD sent to him by the organization itself.

Now, again according to the qualification and experience of the employee, the salary gets

changed.

Now, being a governmental job in the services sector, the initial salary of the employee ranges

from 25k to 30k, initially. The employees has to deal with the people ranging from local to

important delegations. That’s why, the employees has to be very good at public relations and

know very proficiently, how to deal with different kinds of people.

Now, as obvious, since the Heritage complex is in Punjab, depicting the culture and religion of

Punjab, so it is required that the employees must be able to communicate with the people in

different languages, be it English, Hindi and Punjabi. Since most of the visitors are from India

only, so the employees can make them well understand th different events displayed there, in

Hindi as well as Punjabi, and for the foreign delegates, the employees prefer to communicate in

English, in order to make them understand every aspect of the events that are displayed.

Also due to this, the salary packages of the newly employed candidates are decided.

Accordingly, the employees when gets promoted to a furthur designation, the salary packages

gets increased thereafter.

5.4) PROBATION PERIOD

Every organization has a specific period of probation for the newly hired employees. This

probation period is usually called “Training Period” in the employees generally. The

probation period is set by the organization in order to train the new employees and to see the

skills of the qualification they have.

Virasat-e-Khalsa is having a probation period of 3 months. Since the qualification of the

candidates who apply for this job is to have a B.Sc degree in Aviation, Hospitality and

Management and have to apply for the job in public relations department, so the organization

has to make the employee aware of all the virtual and visual events that are ongoing in the

Heritage Complex. So the organization puts its careful and necessary steps in training the

newly hired employees.

The probation period is also having another important factor indulged in it. Sometimes the

employee hired does not find the job comforting or the the company feels that the hired

candidate is not upto the mark or is having some problem while adjusting with the job. The

probation period decides this very thing. The company gets to see the knowledge and skills

of the employee and the employee also gets a hint of how his/her career would go, being in

such an organization.

Since the probation period of Virasat-e-Khalsa is only 3 months, soo the organization do

keep the trainies on some initial stipend, and provides them with th decided amount of salary

once the probation period is off. But the salary at the time of probation, is also comparable to

that of the original salary.

Within the probation period, as the organization becomes aware of the skills and knowledge of

the employee and have also put a test to the learned up knowledge of the employee, to testing,

the probation period helps the organization to set the salary package for the candidates. No

doubt, the skillful candidates acquire better salary packages after their good performances in this

probation period and few employees gets sacked due to their poor performance in this probation

period.

This is why, the probation period is necessary as well as important both for the employee as well

as the organization.

5.5) RECRUITMENT PROCESS

The recruitment procedure is yet another feature of the whole process, and that too an important

one. Since, Virasat-e-Khalsa is in the services sector, the JD sent to the recruitment agency, is

having the requirement of candidates that are having the B.Sc degree in Aviation, Hospitality and

Management, because in this business, the employees must be having command in dealing with

people and should have the required skills of management.

So, the JD also clarifies so much things about the candidates required for the job.

In Khalsa Heritage complex also, the final recruitment is done by the organization only, so the

recruiter’s main job is to shortlist various candidates and hen send them to the organization for

the final interview.

In such case, the organization demands to interview the candidates themselves, then the

recruiter’s job is to shortlist the candidatesand send the deserving and interested candidates list

and the soft copies of their shortlisted resumes, to the HR of the organization.

The recruiter then shortlist the candidates and send them to the organization, that is directly to

the venue at Anandpur Shib where the final interviews are to be held. In this way the process of

recruitment goes on in this case.

The selected candidates’s name and date of joining of the job is then sent to the recruitment

agency(Jobachievers, in this case). The company then provide the agency with the amount that

has to be submitted to the agency as their fee for the work.

After that, the agency also keeps a record of the candidate’s work profile and the satisfaction

level of his/her job there. This is due to the reason, because in case if the candidate quits the job

in the probation period or within 3 months, then the agency has to re-recruit another candidate at

the same place, keeping in mind the “Replacement Policy”.

Thus, the training and the development of the newly hired employee, is bkept on record by both

the recruitment agency as well as the organization.

5.6) INTERVIEW CONDUCTION

Interviews are the most popular methods for obtaining job-related information. They may range

from completely unstructured interviews to highly structured ones in which job analysts follow

detailed questionnaires in asking their questions. (Reference: Human Resource Management, 11th

edition, ch 4)

Interview conduction, is a point of differentiation, because of its mode of conduct and by whom

the interview is being conducted. In this study, this point came under observation due to the

following two points:

a) Mode Of Conduct

The mode of conduction of the interview is again of two types: Structured and Unstructured

Interview.

Unstructured Interview is an unstructured conversational-style interview in which the interviewer

pursues points of interest as tey come up in response to questions. In these interviews, the

managers do not follow a set pattern

Unlike the unstructured interviews, the structure d interviews are having a set pattern, that is the

interview follows a sequence of questions. These are such kind of interviews that are based on

carefully selected job-oriented questions with predetermined answers that interviewers ask of all

applicants.

Now talking about Virasat-e-Khalsa, the mode of conducting the interview is totally Structured,

that is the interviewer follows a set pattern of questions and follows the rules of the interview

processing in a structured way. Since, the interview conduction is having the set questions and

the interviewer is also having the predetermined answers to a specific question that is to be asked

by him. So, th e interview goes on in a complete structured manner.

a) Panel of interviewers

This point differentiates the interview mode in such a manner, that the differentiation could be

done at this point.

Unlike Kudos chemical Limited, Virasat-e-Khalsa is having the interviewers from the rank of

IAS designations. Since the job profile of the candidates to be employed for the job is to deal

with the local people to the officials of quite higher ranks. So the final interview of the deserving

candidates who has been sent by the recruiter after the screening, is usually taken by the people

of IAS designations.

The candidates are asked questions about their code of conduct in the previous company, if they

have worked somewhere else before. Also, the recruiter asks question checking the stability of

the candidate, that is, whether the candidate is having a positive attitude towards the job or

he/she is just doing the job for money purpose, because such a candidate would not be loyal to

the company, as per ther company norms.

After the selection of the candidates, the information is sent back to the recruiter about how

many of the shortlisted candidates are selected and the amount incurred by the recruitment

company is being given to them by the company.

5.7) DESIGNATIONS PROVIDED

In Virasat-e-Khalsa, the designations provided in the organization are of a Public Relations

Officer most usually called PRO, and is having the job responsibilities of dealing with the

people, whether they are local civilians or the foreign delegates.

So, the designations in this case is having the differentiation point, at the case of Designations

provided by the newly hired employees. The candidates receives their training about the public

dealing only and gets promoted in their dealing with the people of higher scales, that is ,

attending the foreign delegates and other government officials.

5.8) INCREMENTAL POLICIES

The organizations are having different incremental policies for the employees. Every employee

gets his/her increment based on 2 factors:

a) Time Period of the candidate in the organization.

The candidate is employed as a fresh candidate when he/she starts off with an initial salary that is

to be considered as the stipend of these candidates. The employees when have the time period

increasing ont heir account, then the organization according to their legal compliance, starts

giving off the increments to their employees.

The candidates also due to the process of job enrichment when have the continuous shifts in

work and starts becoming the important assets of the organization, then the incremental policies

again goes to a different scale for the candidates.

The organization sees to it that the increment policies of the organization is in full recognition

and due consent of the owners and the employees. The organization always clear its norms to all

of the candidates an tell the candidates beforehand that what amount of increment they would

receive after a due interval of time. The candidates are having knowledge about how much time

they have to spend working in an organization in order to get an increment.

b) Experience of the employee

The candidate is having incremental policies keeping in mind their experience factors also. The

experience of the candidates is also a factor that ensures some extra incentives to the employees.

If an employee have worked already in an organization, then he/she receives a certain amount of

extra incentive added upto their salary packages.

Thus, experience of the employees also is a factor that is of significance to the incremental

policies of the candidates.

Now as that the points of differentiation are discussed, an important point which is the another

important section in the work process of the recruitment agencies nowadays is “Outsourcing”.

So, this process has to be discussed fully in order to completely understand the working process

of the recruitment agencies.

6) OUTSOURCING

Outsourcing is the process of contracting an existing business process which an organization

previously performed internally to an independent organization, where the process is purchased

as a service. Though this practice of purchasing a business function—instead of providing it

internally—is a common feature of any modern economy, the term outsourcing became popular

in America near the turn of the 21st century. An outsourcing deal may also involve transfer of

the employees involved to the outsourcing business partner.

Outsourcing is contracting with another company or person to do a particular function. Almost

every organization outsources in some way. Typically, the function being outsourced is

considered non-core to the business. An insurance company, for example, might outsource its

janitorial and landscaping operations to firms that specialize in those types of work since they are

not related to insurance or strategic to the business. The outside firms that are providing the

outsourcing services are third-party providers, or as they are more commonly called, service

providers.

Although outsourcing has been around as long as work specialization has existed, in recent

history, companies began employing the outsourcing model to carry out narrow functions, such

as payroll, billing and data entry. Those processes could be done more efficiently, and therefore

more cost-effectively, by other companies with specialized tools and facilities and specially

trained personnel.

Currently, outsourcing takes many forms. Organizations still hire service providers to handle

distinct business processes, such as benefits management. But some organizations outsource

whole operations. The most common forms are information technology outsourcing (ITO) and

business process outsourcing (BPO).

Although the definition of outsourcing includes both foreign or domestic contracting,[2] the term

is sometimes used exclusively referring to the former. The more clear term for this is offshoring,

which is described as “a company taking a function out of their business and relocating it to

another country,” [3] whether the external country is physically offshore or not.

Outsourcing can offer greater budget flexibility and control. Outsourcing lets organizations pay

for only the services they need, when they need them. It also reduces the need to hire and train

specialized staff, brings in fresh engineering expertise, and reduces capital and operating

expenses

The process of outsourcing generally encompasses four stages: 1) strategic thinking, to develop

the organization's philosophy about the role of outsourcing in its activities; 2) evaluation and

selection, to decide on the appropriate outsourcing projects and potential locations for the work

to be done and service providers to do it; 3) contract development, to work out the legal, pricing

and service level agreement (SLA) terms; and 4) outsourcing management or governance, to

refine the ongoing working relationship between the client and outsourcing service providers.

One of the biggest changes in the early 21st century came from the growth of groups of people

using online technologies to use outsourcing as a way to build a viable service delivery business

that can be run from virtually anywhere in the world. The preferential contract rates that can be

obtained by temporarily employing experts in specific areas to deliver elements of a project

purely online means that there is a growing number of small businesses that operate entirely

online using offshore contractors to deliver the work before repackaging it to deliver to the end

user. One common area where this business model thrives is in provided website creating,

analysis and marketing services. All elements can be done remotely and delivered digitally and

service providers can leverage the scale and economy of outsourcing to deliver high value

services at reduced end-customer prices.

Reasons of outsourcing

The most common reasons why companies decide to outsource include cost reduction and cost

savings, the ability to focus its core business, access to more knowledge, talent and experience,

and increased profits.

Many companies decide to outsource because it cut costs such as labor costs, regulatory costs,

and training costs. Foreign countries tend to have workers who will complete the same amount of

work as in the United States, but for less than half the salary that an American employee will

make [9]. This motivates companies to outsource overseas to find foreign workers who are willing

to work for these lower wages. The company can spend up to half the usual cost to train these

workers to become experts in a different country [10]. Lower regulatory costs are an addition to

companies saving money when outsourcing. Comparing the costs to employing a worker in the

United States to a worker in China, it is noticed that an employer in the U.S. has to pay higher

taxes 

Companies are able to focus their money and resources more towards improving the core aspects

of its business when outsourced. For example an insurance company may outsource its

landscaping functions to a service provider that specializes in landscaping since it is irrelevant to

the core operations of insurance. The landscaping is performed by an expert outsourced

organization and the insurance company can focus on doing what it specializes in. This allows

the outsourcing company to build onto its core functions that keep the business running

smoothly[12]. Another example is that companies and public entities such as a public school

district that outsources functions, such as their payroll offices to companies

like ADP or Ceridian, which specialize in payroll functions.

In the case of outsourcing, firms may find that workers in other countries can provide better

customer support than their domestic counterparts. For example, an online coffee shop owner

who moved his calling center to the Philippines found that his customers received better

customer support from workers in this country.[13]

Revenue and profit plays a large role in the reason for a company outsourcing. Since the costs

are cheaper in different countries for a corporation to run it, as well as to train the employees,

this saves the company a large sum of money. More profit comes in when the vendors are able to

purchase products at a less expensive rate and continue to sell them at a reasonable price for

consumers. The prices are reduced for services as well as products when purchased at a cheaper

price.

Security

Before outsourcing an organization is responsible for the actions of all their staff and liable for

their actions. When these same people are transferred to an outsourcer they may not change desk

but their legal status has changed. They are no longer directly employed or responsible to the

organization. This causes legal, security and compliance issues that need to be addressed through

the contract between the client and the suppliers. This is one of the most complex areas of

outsourcing and requires a specialist third party adviser.

Risks

When companies offshore services, even though it may not be the core parts of the business,

those jobs leave the home country for foreign countries. [15]. Outsourcing may increase the risk of

leakage, reduce confidentiality, as well as introduce additional privacy and security concerns.

Advantages

Companies are able to provide services and products to consumers at a cheaper price while still

having a large margin for profit. This profit margin benefits both the company as well as the

consumer. The cheaper prices lead to an increase a company’s economy. Although losing jobs

hurts the economy because more citizens become unemployed, the cheaper prices allows

customers to purchase more products and services which helps to rebuild an economy.

In all cases, outsourcing success depends on three factors: executive-level support in the client

organization for the outsourcing mission; ample communication to affected employees; and the

client's ability to manage its service providers. The outsourcing professionals in charge of the

work on both the client and provider sides need a combination of skills in such areas as

negotiation, communication, project management, the ability to understand the terms and

conditions of the contracts and service level agreements (SLAs), and, above all, the willingness

to be flexible as business needs change.

The challenges of outsourcing become especially acute when the work is being done in a

different country (offshored), since that involves language, cultural and time zone differences.

The recruitment agency, in which I worked, that is, Jobachievers, is having a tie-up with an

another recruitment agency named as GRETIS INDIA, which is having this Outsourcing

process, active in their agency. The former organization mentioned in the report, that is, KUDOS

CHEMICAL LIMITED, is having a number of its employees on the rolls of GRETIS. The

chemical engineers that are working in KUDOS, are firstle employed on the rolls of Gretis, and

after a specific interval of time, the employees come ON-ROLLS of the company.

While the employees remains OFF-ROLLS, that is ON-ROLLs of Gretis, all of the necessary

things like making of the salaries, maintaining the attendance registers, keeping the records of

each and every employee, is the responsibility of Gretis.

Also, there are certain disadvantages also. While the employees remain OFF-ROLLS for the

company, the employees are proficiently deployed of all the incentives and perks that an

employee who is ON-ROLLs of the company is being provided with.

Thus, outsourcing is the newest rage of the recruitment agencies, that are coming into a new

understanding and business with the organizations as to provide the organizations with the

required candidates, maintaining the records of the newly hired employees and also keep the

employees on their rolls, so as coming to a newly developed understanding with the

organizations, participating and sharing half of the recruitment’s workload to themselves.

Thus, the process of Outsourcing is bringing the recruitment agencies and the organizations,

much closer and and are making them more understandable to each other.

REFRENCES:

1) www. Kudoschemieltd.in

2) www.virasat-e-khalsa.org

3) Human Resources Management, 11th Edition, chapter 4.