Project Report

On

Recruitment and Selection Process

In

Nagarjuna Fertilizers and Chemicals Limited

In the Partial Fulfillment of the Requirement of Post Graduate Diploma in

Management in Human Resource

Submitted By:

Preeti Upadhyay

(H3-25)

PROJECT REPORT

2009-2011

SIVA SIVANI INSTITUTE OF MANAGEMENT

KOMPALLY, SECUNDERABAD

1

DECLARATION

I Preeti Upadhyay declare that the project report entitled “RECRUITMENT AND

SELECTION PROCESS” in NAGARJUNA FERTILIZER AND CHEMICAL

LIMITED is an original and bonafide work done by me during the academic year

2009-2011. This is being submitted in the partial fulfillment of the requirement for

the award of degree of the POST GRADUATE DIPLOMA OF

MANAGEMENT from SIVA SIVANI INSTITUTE OF MANAGEMENT.

The matter embodied in this report has not been submitted for the award of any

other degree or diploma.

Place: Hyderabad Date:

2

ACKNOWLEDGEMENT

I deem it a great privilege to thank all those people who helped me to complete

this project work. I express my sincere thanks to the management of the SIVA

SIVANI INSTITUTE OF MANAGEMENT COLLEGE and our respected

Head of the department Dr. Chandra Sekhar. Dr. P.V. Sai , Mr. Durga Prasad

Head of HPD dept. of NFCL and Mr. Anand Reddy for giving me this

opportunity to undertake the project work.

I am deeply obliged to my project guide Miss Sonal, without whose guidance and

encouragement at all levels , the study wouldn’t have been completed. All

those employees of “NFCL” deserve special thanks for their cooperation and help

in the collection of necessary and relevant material for this work.

Also, I do thank and remember my friends for their effort and helping hand.

I express my profound thanks to Mr Yashwant and Dr. T. Nagandra Rao,

Hyderabad, for giving me valuable advice and guidance and sparing valuable time

in clarifying various points raised by me.

Every effort has been made to enhance the quality of work. However, I owe the

sole responsibility of the shortcoming, if any, in the study.

Preeti Upadhyay

3

CONTENT

Chapter 1 Page No.

Introduction 1

Scope of the Study 4

Objectives of the Study 4

Literature Review 5

Chapter 2

Industry Profile

Company Profile 10-19

The Policies Related to Recruitment and Selection Followed at

NFCL 20

Recruitment and Selection Process followed at NFCL 27

Chapter 3

Research Methodology

Introduction 34

Tools and Methods of Data Collection 34

Sample Profile 34

Limitations of the Study 34

Recruitment and selection process 35

4

Chapter 4

Data Analysis 55

Chapter 5

Findings and Interpretations 67

Chapter 6

Recommendations and Discussions 69

Bibliography 71

Annexure

Questionnaires 72

5

Chapter - 1

6

INTRODUCTION

Acquiring and retaining high-quality talent is critical to an organization’s success. As the job

market becomes increasingly competitive and the available skills grow more diverse, recruiters

need to be more selective in their choices, since poor recruiting decisions can produce long-term

negative effects, among them high training and development costs to minimize the incidence of

poor performance and high turnover which, in turn, impact staff morale, the production of high

quality goods and services and the retention of organizational memory. At worst, the

organization can fail to achieve its objectives thereby losing its competitive edge and its share of

the market.

Human resource department plays a crucial role in this process. The backbone of any successful

company is the HR department, and without a talented group of people to hire, culture, and

inform employees, the company is doomed for failure.

Human resource is most valuable assets in the organization. Profitability of the organization

depends on its utilization. If there utilization is done properly will make profit otherwise it will

make loss. To procure right man at right place in right time, some information regarding job and

job doer is highly essential. This information is obtained through job analysis, job description

and job specification. Without these recruitment will be unsuccessful.

A well planned and well managed recruitment will result in high quality applicants for the

company. The recruitment process should inform qualified individuals about employment

opportunities, create a positive image of the company, provide enough information of the jobs

so that applicants can make comparison with their qualifications and interests and generate

enthusiasm among the best candidates so that they will apply for vacant positions.

What distinguishes a successful company from unsuccessful one is the quality of manpower.

The role of management is to optimize the use of resource available to it. The role of HR is to

incorporate the planning and control of manpower resource into the corporate level plans so that

all resources are used together in the best possible combination.

7

Managing people at work and control of human activities in employment is a function that must

be performed in all societies. It is essential in every type of employment for every occupation

and every type of employed manpower. Manpower management is essential in government as

well as private employment under socialism or communication in small business and in large.

Recruitment, as a human resource management function, is one of the activities that impact

most critically on the performance of an organization. While it is understood and accepted that

poor recruitment decisions continue to affect organizational performance and limit goal

achievement, it is taking a long time for public service agencies in many jurisdictions to identify

and implement new, effective hiring strategies.

Recruitment is a process which provides the organization with a pool of potentially qualified

job candidates from which judicious selection can be made to fill vacancies. Successful

recruitment begins with proper employment planning and forecasting. In this phase of the

staffing process, an organization formulates plans to fill or eliminate future job openings based

on an analysis of future needs, the talent available within and outside of the organization, and

the current and anticipated resources that can be expended to attract and retain such talent.

Selection is a process of hiring the best among the pool of candidates available.

‘Right person for the right job’ is the basic principle in recruitment and selection. Every

organization should give attention to the selection of its manpower, especially its managers. The

operative manpower is equally important and essential for the orderly working of an enterprise.

Every business organization/unit needs manpower for carrying different business activities

smoothly and efficiently and for this recruitment and selection of suitable candidates is

essential. Human resource management in an organization will not be possible if unsuitable

persons are selected and employment in a business unit.

8

SCOPE OF THE STUDY

1. The study is limited to the information given by the employees.

2. Meeting some of the top management associates in the senior cadre was difficult.

3. The study has been limited due to time constraint.

4. The study is limited based on the rules and regulations of the organizations.

OBJECITIVES OF THE STUDY

To get right person at right place and in right time, the organization should have the specific and

clear policies and recruitment and selection methods which are essential for the growth of the

organization.

To analyze the actual recruitment process in NFCL.

To find whether the existing processes of recruitment and selection are taking place scientifically or not.

To review the importance and needs of recruitment and selection process.

State, explain and evaluate various methods of recruitment.

9

LITERATURE REVIEW

1. Best Practice Recruitment and Selection

The State Services Authority (the Authority) undertook a project in 2007 to evaluate the

effectiveness of recruitment selection techniques in the Victorian Government.

The project aims to:

Promote the systematic review of current recruitment selection techniques in the VPS

Develop recommendations for the use of better practice tools, based on research and

case studies

Promote better selection techniques to improve the quality and speed of recruitment

actions within the VPS and the public sector.

After the completion of the program the authority decided to adopt the Practice

Recruitment and Selection Toolkit and develop a training program which will help in

the execution of this toolkit. The training program guides participants through best

practice recruitment and selection using course booklets, PowerPoint presentations,

practical exercises and additional reference material. The similar is the direction of my

project wherein I have to suggest various measures through which the HR department at

NFCL can practice the recruitment and selection process in the best efficient manner.

The HR department should be aware of the recent trends in Recruitment and Selection

so as to adopt them whenever required. They should be given proper training in

adopting various trends in the process.

2. Recruitment and Selection

By: - Duncan Brodie

The literature states about the problems faced by the organizations at the time of selecting the

right candidate for a particular position and the various ways the organizations can overcome

these problems.

10

Train those recruiting - It is necessary for the organizations to train those people who

are involved in the process of recruitment and selection, so that they take right

decisions. They should be provided with sufficient training so that they are confident

about their decisions.

Be clear on what you are looking for - If you are going to get the right person for the

job, you need to be clear on the skills, qualifications, experience, personal attributes

and qualities that the right candidate will have.

Select The Most Appropriate Source for Securing Applicants - The key point here is

to be sure you are choosing the right place to advertise. Sometimes a local newspaper

will work. At other times, you may need to go to specialist publication or a

recruitment consultant.

Establish A Clear Framework For Short listing - The framework for short listing the

candidate should be clear to the recruiters and also to the candidates.

Consider the Best Option for Selecting Candidates - In some cases you might just go

for a traditional interview and possibly add in a presentation. Otherwise the

organization can adopt any other method of which they are more confident.

Remain Open Minded - Often people jump to conclusions about candidates within

minutes. Remember some of the best candidates might take a few minutes to get

warmed up so don't discount people too quickly.

Be Professional - When interviewing you are representing your organization, its

values, and beliefs. Today's candidate if they don't get the job could be a customer or

supplier in the future so give the best impression you can.

Give Feedback - Candidates takes good time in preparing themselves for the

interviews therefore the recruiters should also take out the time for giving them

feedback whether they are successful or unsuccessful candidates.

11

2. Recruitment and Selection – Reasons for its Importance

By-: Abhishek

The literature states about the importance of the recruitment and selection procedure and how

even a small mistake at the time of selecting the candidate can harm the organization. Any

successful business will have at its core efficient and caring employees who have complete job

satisfaction and a perfect fit for the jobs they are entrusted with. This is not an easy task to

accomplish and full credit goes to the selection and recruitment processes that the company has

in place. On the contrary, if these processes are not handled efficiently, the wrong sort of

lethargic employee appointments can prove fatal even to a well established business. It is of

utmost importance for an employer to be absolutely clear on what they expect an employee to

be. The skills required for the job should be enumerated as precisely as possible. Transferable

skills which the company could use also deserve a mention. So the chances of zeroing in on the

right candidate increase greatly if the vacancy advertised is very specific as to the requirements.

If recruitment agency service is opted for by the employer, the agency or the consultant should

get very precise instructions from the employer. It is necessary that an exact framework for

short listing applicants for a vacancy is formulated in advance. This is the first step of the

selection and recruitment process. This entails that the employers are very clear as to what sort

of qualifications and experience they expect to see on the CV of the potential employee. The

process of selection and recruitment needs to spell out very clearly the absolute requirements

vis-à-vis qualifications and qualities necessary to fill the vacancy. Based on this one can

shortlist the candidate. The next step is to take a decision on the number of interviews and/or

presentation needed to finally select the employee. If the employers give very concise and

accurate description of what they expect the employees to be, the recruitment consultant or the

agency can choose a candidate very easily. The recruitment consultant or the agency also needs

to have knowledge of the employer’s in-built processes of selection of the right candidates.

Finally, it is in the fitness of things that a feedback is provided on the interview by the

interviewer either to the applicant or the agency through which he has come. Before proceeding

with the interview which may or may not be followed by a presentation, the interviewer on

behalf of the company should have reached a decision as to what package of remuneration he is

12

willing to offer to the right person. This is a very vital but easily overlooked point in the process

of selection and recruitment. The employers would do well to remember that the potential

candidate would most definitely be sizing up the prospective employer as well during the

selection and recruitment process.

Behind every attrition there is recruitment! Whenever an employee leaves an organization

without informing and without giving notice or leaves the organization in the middle of the

project it should be known that he or she is joining some other organization. Many times the

employees of the recruitment consultants are hired by their own clients and are asked to join at a

very short notice period. They are been told that “relieving letter” is not required and some even

offer incentives for early joining. There must be some guidelines and ethics for recruitment so

that there can be fair recruitment policies. There must be some ethical guidelines such as

a) Notice period must be served and nobody must be hired without relieving letter or

providing proof of serving the notice period.

b) Corporate should not hire anyone who has spent less than one year in his current

organization. The logic is obvious. Employees six months to begin their contribution and

at least one year is required to recover recruitment process. More importantly if

somebody is hired who has worked less than a year with the current organization, that

individual will ditch in even shorter period.

c) Corporate should not head hunting from competition. They should advertise and

encourage employees seeking change to voluntarily respond to this advertisement.

d) Corporate should not bail out the prospective employee commitments such as

employment bond etc. the corporate should realize that employee signed the bond and if

he wants to break it, he should do at his own cost and the corporate should not reimburse

or compensate him for violating the employment contracts says Mr. T.

MURALIDHARAN who is the chairman of TMI NETWORK one of the India’s leading

recruitment consultancies.

In one of the study conducted on recruitment and selection process at BIOLOGICAL-E LTD

conducted by Manik Rao in the year 2005. It was found that company has used internal search

for recruiting the employees into more higher or the positions in different departments who can

13

fit into the job. It was found that the company has done it by considering it as the most cost

effective way of filling the vacancies. It has also been found that the company opted for external

sources such as advertisement agencies to fill vacancies. Employee referrals were also one of

the internal sources of recruitment.

In another study on recruitment and selection in DW PRACTICE LLC which is a HR

consultancy, it was found that most of the employees felt that the telephonic interview is not

effective and instead direct interviews are more feasible.

These are some of the studies conducted earlier on the recruitment and selections.

14

Chapter - 2

15

INDUSTRY PROFILE

Indian Fertilizer Company Profiles

There are nine public sector undertakings and two cooperative societies under the administrative

control of the Department of Fertilizers. At present, there are 63 large size fertilizer units in the

country, manufacturing a wide range of nitrogenous and phosphatic / complex fertilizers. Of

16

these, 38 units produce urea whereas   9 units produce ammonium sulphate as a by-product.

Besides, there are about 79 small and medium scale units producing single superphosphate.

Fertilizer Association/Company Website Address

The Fertilizer Association of India www.fertindia.com

Public Sector

National Fertilizers Limited www.nationalfertilizers.com

Fertilizers and Chemicals Travancore Ltd. www.fact.co.in

Rashtriya Chemicals & Fertilizers Limited www.rcfltd.com

Madras Fertilizers Limited www.madrasfert.com

Paradeep Phosphates Limited www.paradeepphosphates.com

Pyrites, Phosphates & Chemicals Limited www.ppclindia.com

Fertilizer Corporation of India Limited www.fertcorpindia.nic.in

Projects & Development India Limited www.pdil.nic.in

Cooperative Sector

Indian Farmers Fertilizer Cooperative Ltd. www.iffco.nic.in

Krishak Bharati Cooperative Limited

www.kribhco.org

www.kribhco.net

www.kribhcoindia.com

17

Private Sector

Gujarat State Fertilizer Company Limited www.gsfclimited.com

Coromondel Fertilizers Limited www.cflindia.com

Shriram Fertilizers & Chemicals Limited www.dscl.com

Zuari Industries Limited www.pdil.nic.in

Southern Petrochemicals Inds. Corpn. Ltd. www.spicgroup.com

Mangalore Chemicals & Fertilizers Limited www.mangalorechemicals.com

Gujarat Narmada Valley Fertilizers Co. Ltd. http://gnvfc.guj.nic.in

Duncans Industries Limited www.duncansfertiliser.com

Deepak Fertilizers & Petrochemicals Ltd. www.deepakgroup.com

Indo-Gulf Fertilizers & Chemicals Corpn. Ltd. www.indogulf.co.in

Godavari Fertilizers & Chemicals Limited www.gfcl.com

Nagarjuna Fertilizers & Chemicals Limited www.nagarjunagroup.com

Chambal Fertilizers & Chemicals Limited www.zuari-chambal.com

Tata Chemicals Limited www.tata.com

Oswal Chemicals & Fertilizers Limited www.oswal.org

Nagarjuna Organization:

Nagarjuna Group founded by Shri KVK Raju in 1973 with an investment of US$ 23 million.

The Nagarjuna Group today is a prominent industry of fertilizer producing in India.

18

The other groups:

In the year of 1974 birth of a business group that pioneered several core sector enterprises in

the coming decades. Starting with manufacturing steel, Nagarjuna Steels Limited was launched.

1985: With focus on agriculture input business started plant nutrition business with Nagarjuna

Fertilizers and Chemicals Limited.

1992: Forayed into the Crop Protection Business with investments in Pesticide Formulations

manufacturing followed by Technical Grade Manufacturing in the year 1994.

1994: Micro irrigation business started to address the irrigation problems of farmers living in

water and energy scarce regions.

1995: Ventured into Energy sector. Entered into power generation by setting up Nagarjuna

Power Corporation Limited.

1997: Entered into petroleum by setting up Nagarjuna Oil Corporation Limited. Consolidating

its core activities, today the Group’s major operations cover Agric and Energy sectors.

Nagarjuna Fertilizers and Chemicals Limited (Kakinada Plant)

Nagarjuna Fertilizers and Chemicals Limited operates large modern integrated Ammonia-Urea

complex laid out in two streams each with Ammonia and Urea plants. The manufacturing

facilities are located at Kakinada in the East-Coast of India in the state of Andhra Pradesh. Unit-

I, which was commissioned in Aug 1992 comprises a 900 MTPD Ammonia plant and matching

1500 MTPD Urea plant and is fully based on Natural Gas both as feed and fuel. The Ammonia

plant is based on Haldor Topsoe’s steam reformation process and the Urea plant on

Snamprogetti’s Ammonia self-stripping process.

19

PROCESS DESCRIPTION

AMMONIA PROCESS

UREA PLANT

20

COMPANY PROFILE

21

Nagarjuna Fertilizers and Chemicals Limited:

The flagship company of the Nagarjuna Group, Nagarjuna Fertilizers and Chemicals Limited is

a leading manufacturer and supplier of plant nutrients in India. The operation of plant was

commenced in 1985 and today the company’s asset base is around Rs.21 billion. This company

is the distinction of being the single largest private sector investment in southern India.

The companies’ broad portfolio of products and services include:

Nutrition solutions

Macro and Micro fertilizers and Farm Management services

Micro Irrigation solutions

The company also offers expertise for the management of chemical process plants, which

include Specialist Services and Total Project Management.

The operations and offerings have been aligned into three strategic business units:

Straight Nutrition Business

Nutrition Solutions Business

Nagarjuna Management Services

THE BUSINESS

The Nagarjuna and fertilizer and chemical limited is involved in the production and marketing

of wide range of fertilizers. Urea and Nitrogenous fertilizers both are manufactured at Kakinada

plant and marketed through export at Vizag and Kakinada ports. In the vast urea market the

brand Nagarjuna is highly preferred by the farming community. NFCL currently markets about

1.2 million tons of manufactured urea and about 0.6 million ton of imported urea per annum.

With the aim of providing total solutions to the farmers, NFCL has commenced marketing of

fertilizer mixture through domestic sourcing and has further plans to enter into phosphate

potashic segments also.

The company also marketed a wide range of micronutrients like Zinc Sulphate, DAP etc with

emphasis on quality.

22

The company associated with Haifa Chemical Limited of Israel and Yara of Norway to bring

world class solutions to its customers.

VALUES

Deliver solutions that will please our customers.

Deliver returns that motivate our investors.

Take actions that strengthen us and inspire the best in others

(by setting an example in relationships, integrity, honesty, humility and hard work)

Understanding the deep and fundamental needs of People, Customers, Investors and

Ecosystem (Alliances, Community and Environment).

AWARDS AND RECOGNITIONS:

2006- Awarded with 'Best Management' by Labour Department, Government of Andhra

Pradesh.

2006- 'Certificate of Appreciation', for its efforts towards good Corporate Citizenship.

2005- ‘Award for Excellence in Natural Gas Conservation’ in the ‘Fertilizers Sector’ category

from Gas Authority of India Limited (GAIL).

2005- 5Star Rating in O H & S Audit from British Safety Council, UK.

2005- Commendation Award in “Leadership and Excellence Awards in Safety, Health &

Environment (SHE) 2004”, by Confederation of Indian Industry, Southern Region.

THE MANAGEMENTS:

Sri K.S.Raju, Chairman & managing director:

23

A Mechanical Engineer, he has been instrumental in propelling the group forward, achieving

newer height of glory. He has successfully led the Group’s foray into several core industrial

sector.

Shri R S Nanda, Director & chief operating officer

A Mechanical Engineer, he was formerly the president and managing director of coromandal

fertilizer limited. He has a rich experience in holding senior positions in various other reputed

companies in his carrier like EDI Parry ltd, The Fertilizer Corporation of India working in

Pharmaceuticals and Agrochemicals sectors with Cyanamid India Ltd and Kanoria Chemical

Ltd.

Shri K Rahul Raju, Joint Managing Director

He is a dynamic professional with foresight and futuristic thinking, he is a member on the Board

of most Group companies. He has been fast propelling the group into several breakthrough

areas, such as , Life Science and Biotechnology. He has been instrumental in setting up the

state-of-the-arts Research Center for carrying out the R & D activities of these new initiatives

with a view to strategically position the group in the global arena.

24

The Policies Related to Recruitment and

Selection Process Followed At

NFCL

Recruitment and selection at NFCL

25

At NFCL the recruitment and selection policy has been named “Talent Engagement Policy”

and the company will recruit the required human resources through policy.

Talent Engagement Policy:

The company is having a talent engagement policy which describes the approving authority for

recruitment, selection methods followed by the company. Talent engagement form attached as

Annexure-1.

For all recruitment engagement of talents in the organization, the process shall be initiated

through human potential department (HPD) only. Group HPD is the process owner and shall be

issuing the guidelines on this from time to time.

The recruitment of new associates is based on the vacancies in the approved organization

structure of the company.

For recruitment of any position in the organization, a manpower requisition duly filled in by the

format shown in the annexure-1 has to be sent by the department head. Based on the request, the

HPD will initiate the process.

Position wise approving authority as per the policy:

Type of positions Approving authorities for recruitment

All replacement positions HOD/ Business Head

All new positions with approved organization

structure

Director and COO

All new positions outside the approved

organization structure

VC and MD

Objectives of the NFCL’s Recruitment and selection policy:

26

To create sound procedure to appoint employees within the stipulations of the approved

policy.

To recruit, select and place competent and suitably skilled people who will contribute to

the achievement of the NFCL’s strategic and operational requirements.

To attract talented and motivated people who will achieve and contribute to the NFCL’s

continued business success while enjoying long term carrier success.

To recruit and select employees, but also to ensure the full utilization and continued

development of human resources.

To ensure that all recruitment activities are handled according to best practice and

professional guidelines.

To create positive image of the company.

Cadres, Levels, Grades and designations at NFCL:

The company is divided its human resources into:

Management Cadre ( top management, senior management, middle management and jr.

Management)

Commercial / technical cadre.

The top management has been graded as NG 8 and the jr. Management has been graded as NG

1. The commercial and technical staffs have been graded as E 6 to E 1.

The company is having regional and branch offices all over India. Recruitment of its resources

will be done through centralized system .i.e. all the recruitments will be done in its Head Office

only i.e. Hyderabad.

Methods followed by the company for recruiting its human resources:

1. Internal Job Posting2. Employee referral program3. Recruitment agency4. Advertising5. Relatives of associates

27

6. Re-joining of ex-employees

1) Internal job posting:

Whenever there is a job opening in the organization, it would be posted internally for the

associates to apply.

The applications will be short-listed based on the competency required for the position.

The process of inviting and screening resumes of external candidates would also be

carried out parallel to it.

The internal candidates would be screened first for the particular opening, in case no

internal candidate is found suitable for the particular position, the screened resumes of

the external candidates would be used for the recruitment process.

There is no predefined time limit for which the internal vacancy would be posted; the

duration for which the vacancy would be posted would depend on the nature and

criticality of the job.

This policy is applicable to all the full time associates of the company who have

completed one year of service in the organization.

2) Employee Referral Program:

This policy is applicable to all full time associates (except the recruitment related associates of

HPD/ P&A department and concerned Head of the Department) of the company at all locations.

The aim of the program is to make the recruiting process more effective and to create a talent

pool of high potential people in the organization and to identify and engage performing people

known to the company associates for their contribution in the industry.

Employee referral program process:

28

All the job opportunities with the required job and skill profile will be posted on the

notice boards.

The associates have to forward the CVs of the referral to the recruitment in-charge in

the HPD department of his perusal.

Even if there are no opportunities available, associates can send in referrals, which will

be kept in the recruitment database.

The candidate will be contacted directly if considered appropriate for the position.

HPD/P&A will however not be able to provide the associate a status update, and will

also not be able to share information of the interview details with the refereeing

associate.

Reward to employees for referring candidates:

If the referral candidate is selected (except in case of trainees), the concerned associate referring

the candidate will be eligible for a reward money equivalent to 5% of the CTC.(excluding PF,

Superannuation &performance pay) of the referral candidate. The amount will be discussed as

mentioned below:

30% of the reward money will be paid soon after the candidate joins the organization.

In case the candidate leaves the organization before 6 months of his joining, the same

will be removed from the referring associate.

Balance 70% of the amount will be given after the 1st performance review of the

candidate is over and on candidate getting at least “GOOD” or equivalent rating in the

review.

3) Recruitment agency:

29

The company is having written agreements with some of the agencies for manpower

recruitment.

Details of the position required, will be intimated to the agency through email/phone by

the HPD.

Based on the required, the agency will send the suitable profiles to HPD.

The agency must guarantee the candidate for at least 3 months, if within 3 months the

candidate resigns the agency must provide alternate source with free of cost.

4) Advertising :

Vacancy advertisement will be given in the reputed national news papers, based on the type of

the vacancy. Generally this method will be used only to recruit the senior management cadre.

5) Relatives of associates:

Relatives of associates can work in the organization, the associate needs to declare in case of

referring a relative for a particular job position.

6) Re-joining of ex-employees:

In general the organization does not encourage joining of ex-employees who have voluntarily

left the organization left the organizations to join back. However, in case an associate possesses

exceptional skills and if the organization feels that by joining, the associate would be adding

tremendous value to the organization, the organization may consider the associate for the

required position upon approval of the VC & MD.

Selection Process at NFCL

Step 1:

30

The preliminary short-listing of candidates will be made by HPD/ P& A along with

concerned departmental head based on:

Minimum qualification required

Experience except (for fresher)

Step 2:

Once the short-list is completed it will be return to HPD. HPD will inimate all the short-

list candidate by phone or email advising them of their interview date, venue, time etc.

Step 3:

The company is having a full-fledged “Talent Engagement Form” which should be filled

by all the candidates at the time of interview. This form contains all the details of the

candidate i.e. his/ her family background, qualification, experience details, references,

salary particulars etc.

The short-listed candidates will go through a selection process consists of all/ one

combination of the following based on the need.

Written-test

GD (in case of campus selection)

Interview

Interview panel will consist of:

Functional experts from within/outside the organization

Department/ division head

Representative from HPD/ P & A

Step 4:

After 1st round interview, the interview panel short lists the candidates (if the no. Of

candidates attended are high compare to the available positions) for the final round

interview.

31

Step 5:

HPD will conduct the referral verification of the selected candidate by consulting the

references given by the candidate at the time of the interview. If any complaints received

against the candidate during referral verification, that candidate will be ‘deleted’ from teh

selected list. If the candidate found good in referral verification also, offer will be sent to

the candidate.

‘Offer Letters’ will be sent to the selected candidates by HPD. After getting the letter

the candidate has to confirm his joining and accordingly confirmation must be sent to the

HPD.

Step 6 (on the day of joining)

On the day of joining the candidates will be sent for Medical checkup, based on the cadre

they have selected.

The candidate must submit the following documents to HPD. HPD will verify these

documents and will be filed in the individual fie of the candidate.

Acceptance of the offer of the appointment duly signed.

Original education certificate along with one photocopy set for file copy( the original

certificates will be return immediately to the associates after verification)

Relieving letter, in original from past employer- if applicable

Last pay-slip, in original from previous employer , if applicable.

Copies of service certificates of previous employers, if applicable.

4 passport size photographs.

All associates are required to open a saving bank account with company nominated

bank. Their salary and other re-imbursement would be credited directly to their bank

accounts.

Step 7:

32

Orientation:

To understand who’s who in the organization, functions of various departments and the work

culture and induction programme will be arrange to the new recruitee. The induction

programme of the new employee will be circulated to all the concerned departments. The main

purpose of this program is to get:

Knowledge about the organization ( history and present, vision and values)

Knowledge about his/her job( roles and responsibility)

Knowledge about relevant people

Knowledge about policies, systems and practices of the organization.

Step 8:

Commencement of service:

Service of an associate will start from the day he/she reports to the duty in terms of appointment

letter.

Associate who are joined below General Manager level has to be under probationary for 6

months from the date of joining. After successful completion of the probationary period based

on the recommendation of the concerned HOD, associates will be taken in permanent roles.

Fitment of Trainees:

The company recruits various categories of trainees from different educational backgrounds for

pre- defined training period. The company shall have no obligation to regularize the trainee in

the regular roles of the company after completion of the training period. The performance/

progress of the trainee will be evaluated every 3 months during his/ her training.

Other HR policies of the company:

The company is having other HR policies which are formulated for the benefit its associates as

well as the company.

33

Work life policy: This policy explains the associates working days, time, attendance, dress

code, personnel data, and facilities to the employees at work place.

Working days: All days except 2nd and 4th Saturday, weekly holiday

Working timing:

Types of shifts

General “A”shifts “B”shifts “C”shifts

Corporate office Hyderabad

9:00a.m.-

5:30p.m.

- - -

Liaison and marketing field office

F 9:00a.m.-

5:30p.m.

ertilizers & Chemicals

Limited

- - -

Kakinada plant 8:00a.m.-4:30p.m

6:00a.m.-2:00p.m

2:00p.m.-10:00p.m

10:00p.m.-6:00a.m

Identity cards are necessary for every employee.

Each day entry in attendance register

Dress code – Formal dress for corporate employers

For Kakinada dress codes are-

Men – Rs.150/-per set

Women – Rs.15/-per blouse

3 uniforms per year

3 pair socks and 1 pair shoes

1 pair gum boots once in four year

Raincoat once in 3 year

Badget, caps,belts once in a year

34

Benefits:

Employees PF and pension schemes

Group insurance scheme in lien of EDLT

Gratuity (for employees who completed 5 years of continuous service)

Superannuation scheme for management cadres(NG1-NG8)

Long service awards on founder’s day (28 nov.)

Housing loan facilities(at 5.5% interest, E0-E3(2 lakh), E4-E6(2.75 lakh))

Two wheeler loan(for E0-E6- Rs 35000/-) 3 times in his/her service.

Furniture loan (E0-E6) Rs. 40000/-

Group saving linked insurance scheme(E0-E6)

Akshara school Kakinada plant

NEWS club at Kakinada plant

Festival advance for commercial/technical staff (E0-E6)

Baggage insurance (NG1-NG8)

Fidelity guarantee insurance

Health and wellbeing policy:

Medical checkup every year

Annual health checkup for family member at Kakinada plant

Occupational health center at Kakinada plant

Hospitalization scheme for associates of grades E0-E6

Extent of reimbursement –self 100%,spouse 80%, dependent 7500/-p.a.

Medicare scheme for management cadres(NG1-NG8)

ESI(Employee state insurance)

Family planning incentives(Rs.1500/-)

Group personal accident policy(for unfortunate event)

Leaves policy:

Compulsory paid holidays-9 Days

35

Types of leaves Days

Casual leaves 7 days

Sick leaves 11 days

Annual leaves 21 days

Birthday leaves ½ days

Maternity leaves 12 weeks(only for 2 children)

Paternity leaves 3 days(only for 2 children)

Family planning leaves 6 Days

Sick leave bank to avoid “ loss of pay “

Travel policy:

This explains the procedure and guidelines to the employees while travelling on business

purpose.

General travel rules and procedures stated.

Travel program plan (visiting plan, date, time) should be clear.

Instruction have to be sent to the administration department for approval

Copy of approval travel plan has to be sent to the finance department

Accommodation by administration department

Travel claim: All bills enclosed with travel plan, all expense mentioned in that enclosures,

and send to respective department for further process.

Travel rules for sales field staff:

Regular tour for sales- all expenses incurred will be recovered.

Marketing operation divided into two slabs-slab1 and slab2 according to state wise

Transfer and deputation:

All transfer of associates in the organization.

36

Transfer Intradepartmental transfer

Interdepartmental transfer

From one location to other

Between group of companies

Process:

Transfer request by associates

To fill Transfer form

Relocation expenses

Deputation: Transfer from one department to another department.

Learning and development:

Associate potential development: Building individual competition i.e. knowledge, skill,

behavior/ability.

ADP is a 4 step process; it gives step by step directions

NEED GENERATION

Competency gap analysis Business requirements

DESIGN

Need analysis & APD plan Faculty and program

identification Content development

37

DELIVERY

Internal program External program/seminars/long

term courses E-learning

EVALUTION

Post program Pre and Post program On the job Return on investment

Separation

Resignation is a voluntary separation initiated by associate if he/she is desirous leaving the

service of the organization. All associates are required to give a notice in writing if they wish to

discontinue their employment relationship with the organization. Process, notice period cadre

wise, retirement, termination, death benevolent assistance, final settlement.

Retirement – 58 years

Post facilities after retirement are- hospitalization scheme, pension etc

Death benevolent assistance – funeral expense i.e. Rs. 3500/-

Discrimination and harassment policy: Through grievance resolution committee

Technology used: Applicability to information Technology infrastructure available at work

location.

Ease of work Optimization of performance Ease of maintenance

38

Chapter – 3

RESEARCH METHODOLOGY

Introduction

39

The research was done in order to understand the Recruitment and Selection Process followed at

NFCL and the perception of the employees from all the cadres regarding it. To know how an

organization performs in terms of productivity and this should be directly proportional to quality

and quantity of its human resource. In order to get the right kind of people in right place in the

right time the organization should have the specific and clear personnel, policies and

recruitment methods which are essential for the growth of the organization. Hence it was

necessary to conduct a research on the process.

Sample Size

The sample undertaken to conduct research study consist of fifty people which is approximately

one tenth of the total strength working in the organization. The sample covered the employees

from all the cadres, encompassing the senior most officers to the workers. The sample was

collected from all the departments of the organization.

Tools and Methods of Data Collection

The primary method of data collection was the questionnaire method which was circulated to

the sample undertaken and the information was collected with its help. Also a general discussion

with the employees helped to gain information regarding the study. The secondary source used

to collect data was the company’s policy manual which contains the policy related to the topic.

Limitations of the Study: Although attempt was made to gather all relevant information in

connection to the study there were many shortcomings and difficulties, which could not

overcome.

The research sample was limited to one tenth of the total employees hence the

information gathered could be limited.

The conclusions are derived from the response of the employees which are expected to be

unbiased.

RECRUITMENT

Recruitment is an important part of an organization’s human resource planning and their

competitive strength. Competent human resources at the right positions in the organization are a

vital resource and can be a core competency or a strategic advantage for it. Recruiting the top

40

talent for a job takes time and attracting the quality candidates who have the knowledge and

skills needed to help the company’s growth.

Recruitment and selection are two of the most important functions of personnel management.

Recruitment precedes selection and helps in selecting a right candidate. ‘Right person for the

right job’ is the basic principle in recruitment and selection. Every organization should give

attention to the selection of its manpower, especially its managers. The operative manpower is

equally important and essential for the orderly working of an enterprise. Every business

organization/unit needs manpower for carrying different business activities smoothly and

efficiently and for this recruitment and selection of suitable candidates is essential. Human

resource management in an organization will not be possible if unsuitable persons are selected

and employment in a business unit.

Meaning of recruitment

“It is the process of finding and attracting capable applicants for the employment. The process

begins when new recruits are sought and ends when their applicants are submitted. The result is

a pool of applicants from which new employees are selected”. In this, the available vacancies

are given wide publicity and suitable candidates are encouraged to submit applications so as to

have a pool of eligible candidates for scientific selection.

Recruitment refers to the process of attracting, screening, and selecting qualified people for a

job at an organization or firm.

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

and conducting the interviews and requires many resources and time.

A general recruitment process is as follows:

1) Identifying the vacancy:

41

The recruitment process begins with the human resource department receiving requisitions for

recruitment from any department of the company. These contain:

Posts to be filled Number of persons Duties to be performed Qualifications required

2) Preparing the job description and person specification.

3) Locating and developing the sources of required number and type of employees (Advertising

etc).

4) Short-listing and identifying the prospective employee with required characteristics.

5) Arranging the interviews with the selected candidates.

6) Conducting the interview and decision making

Recruitment is a continuous process because of:

a) Staff departures (e.g. retirements, resignation )

42

1. Identify vacancy

2. Prepare job description and

person specification

3. Advertising the vacancy

4. Managing the response

5. Short-listing

6. Arrange interviews

7. Conducting interview and

decision making

b) Changes in business requirements (e.g. new products, markets, expended

operations)

c) Changes in business location (are relocation often triggers the need for

substantial recruitment)

d) Promotions

e) Transfers

Objectives of the recruitment process

To obtain the number and quality of employees that can be selected in order to help the organization to achieve its goals and objectives.

It helps to create a pool of prospective employees for the organization so that the management can select the right candidate for the right job from this pool.

To induct the outsiders with new perspectives to lead the company.

To recruit people whose skill fit the company values?

To search for talent globally not just within the company.

To device methodology for assessing psychological traits.

To anticipate and find people for positions that does not exist yet.

Factors affecting Recruitment:

The size of the organization.

The employment conditions in the community where the organization is located.

The effects of past recruiting efforts which show the organization’s ability to

locate and retain the good performing people.

Working conditions, salary and benefit packages offered by the organization.

Rate of growth of the organization.

The future expansion and production programs.

Cultural, economic and legal factors.

43

However these factors may be divided specifically as:

Internal factors

External factors

Internal Factors:

Recruitment policy of the organization

Human resource planning strategy of the company

Size of the organization and number of people employed

Cost involved in recruiting employees

Growth and expansion plans of the organization

Company pay package

Career planning and growth

Quality of work life

Role of trade union

External Factors:

Supply and demand of specific skills in the labor market.

Political and legal factors like reservations of jobs for specific sections of society etc

The job seekers image perception of the company.

Information system like employment exchange/ tele recruitment like internet.

Labor market conditions.

Recruitment checklist:

Before going to actual recruitment a checklist to be made which helps the recruiter till

the end of the process.

Whether the vacancy has been agreed by the responsible manager

Availability of the job description

What are the conditions of employment for the vacant position

Whether the candidate specification been prepared

Whether the notice of vacancy been submitted earlier

44

Whether the job advertisement been agreed

What arrangement have been made for drawing a shortlist of candidates

Whether the interview arrangement have been made

Whether offers letters been agreed and dispatched

Whether rejection letters sent to the unsuccessful candidates

Whether confirmation letter received from the selected candidate to whom offer

letter has been sent.

Recruitment policy:

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

necessary for organizations 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 ensure a sound recruitment process.

Most of the companies are having personnel policies for the organization. Recruitment policy is

a part of the perssonel policy. But before making the recruitment policy the organization must

consider the government policies, personnel policies of other organization, social responsibility

of the organization etc.

Sources of recruitment:

INTERNAL SOURCES: The most common internal sources of internal recruitment are

1. Personal recommendations

2. Notice boards

3. Newsletters

4. Memoranda

1) Personal References

The existing employees will probably know their friends or relatives or colleagues who

could successfully fill the vacancy. Approaching them may be highly efficient method of

recruitment but will almost certainly offend other workers who would have wished to have

45

been considered for the job. To keep employees satisfied make sure that potentially suitable

employees are informed of the vacancy so that they can apply. Also anyone else who is

likely to be interested is told about it as well so that they can apply for the job.

2) Notice Boards

This is the convenient and simple method of passing on important messages to the existing

staff. A job advertisement pinned to a notice board will probably be seen and read by a

sufficient number of appropriate employees at little or no cost. However many of the staff

will probably not learn of the vacancy in this way either because the notice board poorly

located or is full of out dated notices that they don’t bother to look at it, as they assume there

is nothing new to find out. A notice board must be ensured that it is well sited. Wherever it

is been placed it should be certain that it is seen by every one. It means there must be equal

opportunity to see to it and this happens when they know that just important topical notices

are on display. Attention must be paid to the design and contents of the notice if it is to catch

the eye and make the employee read on and then want to apply for the job.

3) Newsletters

Many companies regularly produce in-house newsletters, magazines or journals for their

staff to read. It is hoped that latest company news sheet is read avidly by all staff thus

ensuring that everyone is aware of the job opportunity advertised in it. Unfortunately this is

not always so, because it is sometimes not circulated widely enough and employees may

find it boring and choose not to read it. Newsletter can be utilized as the source of

recruitment if it is convinced that everybody will see a copy.

4) Memoranda

Possibly the best way of circulating news of the job vacancy is to send memoranda to

department managers to read out to the teams or to write all employees perhaps enclosing

46

memoranda in wage packets if appropriate. However it can be a time consuming process to

contact staff individually, especially if there is a large work force. It should also be kept in

mind as to in which way the memorandum is phrased out so that the job appeals to likely

applicants.

EXTERNAL SOURCES

There are many sources to choose from if you are seeking to recruit from outside the company.

1. Word of mouth

2. Notices

3. Job centers

4. Private agencies and consultants

5. Education institutions

6. The press

7. Radio

8. Television

1) Word of Mouth

Existing employees may have friends and relatives who would like to apply for he job.

Recruiting in this way appears to be simple, inexpensive and convenient. Never use word of

mouth as a sole or initial source of recruitment if the work force is wholly or

predominantly of one sex or racial group. Also employing friends and relatives of present

employees may be imprudent because it is not certain that they are as competent as the

current staff.

2) Notices

Displaying notices in and around business premises is a simple and often overlooked method

of advertising a job vacancy. They should be seen by a large number of passerby, some

actively looking for work. It can also be inexpensive with a notice varying from a carefully

47

hand written post card up to a professionally produced poster. Pay attention to the

appearance and contents of the notice if it is intended that it is applied by the right people.

3) Job Centers

Most large towns have a job center which offers employers a free recruitment service, trying

to match their vacancies to job seekers. Staff will note information about a post and the

types of person sought and then advertise the vacancy o notice boards within their premises.

Job center employees can further help if requested to do so by issuing and assessing

application forms and thus weeding out those applicants who are obviously unsuitable for

the position. Short listed candidates are then sent out for the employer to interview on his

business premises.

4) Private Agencies and Consultants

There are various types of private organization that can help to find the right person for a

particular job. Employment agencies exist in many town and cities. Some handle all general

vacancies from junior unto supervisory level while others specialize in various occupations

such as accountancy, clerical or computer personnel and marketing or sales. Since they

maintain a register of job seekers, they initially attempt to find applicants from this list. A

short list will be drawn up by reading through applications and conducting interviews on

client organization’s behalf. Although fees vary, it is expected to pay around 10 to 15% of

the annual salary offered if a suitable person is found for the job. This will be partly

refundable if he leaves within a certain period of time. For temporary staff, it is normally

charged on hourly, daily or weekly rate by the agency. They will then pay the employee.

Recruitment agencies are similar to employment agencies in the services that they offer. The

main difference is that recruitment agencies tend to operate at a higher level, concentrating

on technical, managerial and executive appointment. Accordingly, increased time, effort and

expertise are needed to compile a quality short list. This will be reflected in the fees charged,

often between 18 and 22% of the annual salary of the staff recruited. Again a proportion of

this may be refundable if the employees proves to be unsatisfactory and subsequently

departs.

48

Search consultants, also known as Headhunters, specialize in finding candidates for senior

positions. They normally head hunt people currently at work in similar posts, possibly at

rival companies. Discrete approaches, by telephone, are made direct to the persons involved.

Such a process is time consuming and requires considerable tact and diplomacy if it is to be

successful. Charges may be in excess of 30% of the annual salary. Before opting for this

source attention must be paid about those agencies who brashly promise to give a lengthy

list of candidates very quickly. It may sound impressive but suggests that they are simply

pulling names from a register perhaps of dubious quality and are not actively searching for

and screening applicants properly. A good shortlist will take time to compile. It must be

ensured that the agency with which the organizations contracting must follow a good refund

system in case the new recruit resigns or needs to be dismissed shortly after joining. Also a

free replacement warranty up to six months must be provided by the recruiting agency.

When employing an agency or consultant, make sure that they know exactly what they are

expected to do. A clear job description and employee specification, must be provided so that

they could screen by referring to the employee specification and so on. Full up to date

information about the job and person required. Supply all details and all instructions in

writing to avoid subsequent misunderstandings and disagreements.

The recruiting agency or consultant must be in touch with the client company throughout

the recruitment process to ensure that the agency is following the instructions and doing its

job well. Also it must be ensured that they are maintaining equality of opportunity and

avoiding unlawful discrimination against applicants of a particular sex, marital status or any

racial group. All applicants should be judged solely on their ability to do the job.

5) Educational Institutions Or Campus Recruitment

Those companies which require a steady intake of young person’s for new Youth Training

to trainee management positions ought establish and maintain close contact with colleges

and universities. The advantage of campus recruitment is, it is known that who the audience

49

to be addressed are. Promotional literature in the form of posters, broachers, catalogues;

press releases and so on can be issued to the audience so that the company’s name remains

prominent and their student’s minds all the time.

6) The Press

Advertising for the new staff through the press has proved successful for many companies.

Choose between local newspapers, national newspapers and the magazines. All will put in

touch with different audience. Local newspapers, read by a large cross-section of the

immediate population, may be most suitable if there is sufficient talent in the area.

National newspapers, with their mass circulations and differing attitudes to news coverage

appealing to various tastes, could be better when looking out to fill the senior position.

Trade Magazines often under estimated as useful source of recruitment might be worth

considering if looking out to recruit someone for a specialized job which possibly requires

previous experience of the particular industry.

Naturally there are some drawbacks to newspaper advertising. It is expensive in relation to

other, often equally good source such as job and careers centers, which advertise free. Other

drawbacks of newspaper advertising include a high level of wastage (the vast majority of

readers will not be job hunting) and a short life span. The daily or evening newspaper is

invariably discarded at the end of the day. A short series of advertisement incurring extra

expenses may sometimes be required and multiplying one advert by three or four starts to

make this source prohibitively costly. Trade magazines could be a better way of recruiting

staff depending upon the circumstances. Most will include employment advertisements

within a classified section which will be read by a small but select and interested number of

people. There some disadvantages, however the financial outlay is still considerable. If the

magazine is published bi-monthly or quarterly, may have to wait sometime before the

advertisement is seen. It may be intended to fill the vacancy as soon as possible.

7) Radio

50

Many radio stations broadcast special job finders advertisements throughout the day for

companies looking for new recruits. Advertising through the radio has got many advantages

as it will be transmitted to over a wide geographical area to potentially large audience.

Variety of age groups listens thus making it a suitable medium for different types and levels

of jobs. Advertisements can be broadcast very quickly sometimes within hours. Nevertheless

there are some disadvantages that must be considered carefully. As few have tune in to hear

advertisements and their thoughts invariably wander when they are on, or they may start

station hopping to find more music. The radio is also transient medium. An advertisement

lasts for perhaps 30 seconds, which is a very short period in which to put across all the

important points, and is then finished. It is usually difficult to remember (What was the

company’s name? what was its phone number?) most listeners will not have a pen and pad

handy to make notes.

8) Television

You can advertise on a regional or national basis. Recruiting staff through the Television is

still widely regarded as a new and innovative approach. Companies which use this medium

may therefore be seen as go-ahead and dynamic. Thus, this medium may not be an

immediate choice if there is only just one vacancy to be filled, although shorter and

expensive one month contracts could be negotiable and worth considering.

SELECTION

The selection procedure is concerned with securing relevant information about the applicant.

This information is secured in number of steps. The objective of selection process is to

51

determine whether an applicant meets the qualifications for a specific job and to choose the

applicant who is most likely to perform well in that job.

The hiring procedure is not a single act but it is essentially a series of methods by which

additional information is secured about the applicant. At each stage facts, which came to light,

make the acceptance or rejections of the candidate clear. Some selection processes are quite

easy and some with many hurdles this increases with the level and responsibility of the positions

to be filled.

Essentials of Selection Procedure

The selection process can be successful if the following requirements are satisfied:

1. Someone should have the authority to select. This authority comes from the

employment requisition as developed by an analysis of the work-load and work force.

2. There must be some standard of personnel with which a prospective employee may be

compared i.e., a comprehensive job description and job specification should be

available beforehand.

3. There must be sufficient number of applicants from whom the required number of

employees may be selected.

PROCESS OF SELECTION

52

Selection

Preliminary screening interview

Completion of application or form if not done previously

Employment tests

Comprehensive interview

Back ground investigation

Final employment decision

Preliminary Interview or Screening

The initial screening is usually conducted by a special interviewer a high caliber receptionist in

the employment office. These interviews are short and are known as stand-up interviews. The

53

main objective of such interviews is to screen out undesirable/unqualified candidates at very

outset. Such interviews conducted by someone who inspires confidence, who genuinely

interested in people, and whose judgment in the “sizing up” of the applicant is fairly reliable.

Basic criteria that must be met for an application to be eligible for consideration. If these criteria

are not met, there is no obligation on the employer to consider such applications. The screening

process therefore seeks to identify those applications that meet the basic entry-level

requirements applications that are therefore incomplete or do not meet the basic appointment

criteria are considered unsuccessful applications. In order to be fair and objective in the

screening of candidates, it is essential that a fixed set of valid criteria be applied in terms of each

and every candidate that applies for a position.

Certain conditions should be met in relation to the format and content of -

a) Application forms

b) Curricula Vitae (CV’s) and

c) All other relevant documentation.

What is the purpose of short-listing?

After having completed the screening process and eliminated those applicants that do not meet

the basic requirements, the next objective should be to identify a manageable size (pool) of

applicants (a short-list) who are best suited to fill the position successfully and from whose

ranks the most suitable candidate(s) is/are to be selected. It is about identifying a manageable

pool of best suited candidates for a specific position, in the interest of the State, taking into

account Affirmative Action and Employment Equity objectives.

May short-listing be used to reduce a vast number of applications to a manageable size. As

stated, the primary objective of the short-listing process is to reduce the number of qualifying

applicants to a manageable size for purposes of selecting the most suitable candidate. A further

objective with short-listing is to rank candidates, and to determine a cut-off point below which

candidates will not be interviewed. The criteria utilized for short-listing purposes should

therefore be in sufficient detail to allow for this and should be applied consistently.

54

Application Form

Application form is also known as application blank. The technique of application blank is

traditional and widely accepted for securing information from the prospective candidates. It can

also be used as a device to screen the candidate at the preliminary level. Many companies

formulate their own style of application forms depending upon the requirement of information

based on the size of the company, nature of business activities, type and level of job etc. they

also formulate different application forms for different jobs, at different levels, so as to solicit

the required information for each job. But few companies in our companies in our country do

not have prescribed application forms.

Psychological Testing

Test is defined as a systematic procedure for sampling human behavior

Tests are used in business for three primary purposes.

1) For the selection and placement of new employees

2) For appraising employees for promotion potentials and

3) For counseling employees if properly used psychological tests can be of paramount

importance for each of these purposes.

Classification of Tests on the Basis Of Human Behavior

A. Aptitude or potential ability test

Such tests are widely used to measure the latent ability of a candidate to learn new jobs

or skills. They will enable us to know whether a candidate if selected, would be suitable

for a job, which may be clerical or mechanical. These tests may take one of the

following forms.

a) Mental or Intelligence Test - measures and enables to know whether he or she has mental

capacity to deal with new problems.

55

b) Mechanical Aptitude Test - measures the capacity of a person to learn a particular type of

mechanical wok. This could help in knowing a person’s capability for spatial

visualization, perceptual speed manual dexterity, visual motor coordination or

integration, visual insights etc.

c) Psychometric tests – these tests measures a person’s ability to do a specific job

B. Achievement test

Also known as proficiency tests they measure the skill, knowledge which is acquired as

a result of a training program and on the job experience they determine the admission

feasibility of a candidate and measure what he/she is capable of doing.

a) Tests for measuring job knowledge – this type of test may be oral or written. These tests

are administered to determine proficiency in shorthand and in operating calculators

adding machines dictating and transcribing machines and simple mechanical equipment.

b) Work sample tests – demand the administration of the actual job as a test. A typing test

provides the material to be typed and notes the time taken and mistakes committed.

C. Personality tests

These tests aim at measuring those basic make up or characteristics of an individual

which are non-intellectual in their nature. In other words they probe deeply to discover

clues to an individual’s value system, his emotional reactions and maturity and

motivation interest his ability to adjust himself to the illness of the everyday life and his

capacity for interpersonal relations and self image.

a) Objective tests – it measures neurotic tendencies self-sufficiency dominance submission

and self-confidence. These are scored objectively. They are paper and pencil tests or

personality inventors.

b) Projective tests – it is a test in which a candidate is asked to project his own

interpretation into certain standard stimulus situation. The way in which he/she responds

to these stimuli depends on his own values, motives and personality.

56

c) Situation tests – these tests measures an applicant’s reaction when he is placed in a

peculiar situation his ability to undergo stress and his demonstration of ingenuinity under

pressure. Such tests usually relate to leaderless group situations, in which some problem

is posed to a group and its members are asked to reach some conclusion without the help

of a leader.

d) Interest tests – these tests aim at finding out the types of work in which a candidate is

interested. They are inventories of the likes and dislikes of the people of some occupation

hobbies and recreational activities. They are useful in vocational guidance and are

assessed in the form of answers to a well prepared questionnaire.

Interviews

Interviews are a crucial part of the recruitment process for most organizations. Their purpose is

to give the selector a chance to assess the candidate and to demonstrate their abilities and

personality. It’s also an opportunity for an employer to assess them and to make sure the

organization and position are right for the candidate. An interview is an attempt to secure

maximum amount of information from candidate concerning his suitability for the job under

consideration.

The recruitment process for most organizations follows a common theme: Applications/CVs are

received, either online or by post; and candidates are short-listed and invited for interview. The

interview format can vary considerably and may include an assessment centre and/or tests. The

number of interviews also varies. Some companies are satisfied after one interview, whereas

others will want to recall a further shortlist of candidates for more. If successful at the final

interview stage, an official job offer is sent to the candidate. Interview format is determined by

the nature of the organization, but there are various standard formats.

Chronological Interviews -These work chronologically through the candidate’s life to date and

are usually based on the CV or a completed application form.

Competency-Based Interviews -These are structured to reflect the competencies that an

employer is seeking for a particular job (often detailed in the recruitment information). This is

the most common type of interview for graduate positions today.

57

Technical Interviews - If a candidate has applied for a job or course that requires technical

knowledge (e.g. positions in engineering or IT) it is likely, at some stage in the selection

process, that the candidate will be asked technical questions or have a separate technical

interview to test his/her knowledge. Questions may focus on the final year project and his/her

choice of approach to it or on real/hypothetical technical problems. It seen that the candidate

proves himself/herself but also they admit to what they don’t know.

Kinds of Interviews:

1. One to one interview: in this type of interview one selector interviews one candidate

alone.

2. Informal interview: in this type there are discussions between the candidate and two or

more interviewers.

3. Panel of interviews: in these pre planned standard questions ranging overall aspects of

the job are asked. They focus directly on elements of person specification.

4. Direct planned interview: this interview is straight forward, face to face, question and

answer situation intended to measure the candidate’s knowledge and background.

5. Indirect and direct interview: in this type of interview the interviewer refrains from

asking direct and specific questions but creates an atmosphere in which the interviewee

feels free to talk and go into any subject he considers important. The object of the

interview is to determine what individual himself considers of immediate concern, what

he thinks about these problems, and how he conceives of his job and his organization.

6. Patterned interview: in this interview a series of questions which illuminates validated

against the record of employees who have succeeded or failed on the job.

7. Stress interview: in this interview the interviewer deliberately creates stress to see how

an applicant operates in stress situation. To induce stress, the interviewer responds to the

applicant’s answers with anger, silence and criticism. This interview aims attesting the

candidate’s job behavior and level of withstanding during the period of stress and strain.

8. Depth interview: in this type of interview, the candidate would be examined extensively

in core areas of knowledge and skills of the job.

58

Background Checks and Enquiries

Offers of appointment are subject to references and security checks. The references given in the

candidate’s application will be taken up and a security check will be conducted.  Security

checks can take a while if the candidate has lived abroad for any period of time.

Final Selection Decision

Those individuals who perform successfully on the employment tests and the interviews, and

are not eliminated by development of negative information on either the background

investigation or physical examination are now considered to be eligible to receive an offer of

employment. Who makes that employment offer? For administrative purposes the personnel

department should make the offer. But their role should be only administrative. The actual

hiring decision should be made by the manager in the department that had the position open.

59

Chapter – 4

DATA ANALYSIS

Observation made during the study and analysis of the company policy

60

The company is having all over India branches/area offices. Initial interviews will be

conducted at the area office by the concerned area manager. As the HR Department is

located in the corporate office so all the final interviews & selection will be done at its

corporate office i.e. in Hyderabad.

Sometimes screening will be done by telephonic interview which is conducted by the

HR department in corporate office.

The candidate will be filtered based on merit and experience.

The company is recruiting its manpower through consultancy also. The consultancy will

be selected based on the process used by them before sending the candidate to the

company.

The company is tie up with job portal – Naukari.com also. This is helpful for the process

of recruitment in collection of resumes.

The candidate will be selected based on the communication and their presentation at the

time of interview. Subject knowledge is also essential based on type of the vacancy.

The time lag between recruitment and placing will be done within one month.

The company will pay the applicants expenses for attending the interview, based on the

grade.

Rejected candidates will be intimated and their profile will be kept in data bank for a

period of 6 month.

1) The recruitment and selection process of company meets the current legal requirements.

61

20%

59%

14%4% 4%

Strongly Agree

Agree

no opinion

disagree

strongly disagree

Interpretation:

Near about 20% of the respondents are strongly agree with the statement that recruitment and

selection process of company meets the current legal requirements, and 60% are agree only so,

total 80% of the respondent are in favor that the process of recruitment & selection meets the

current legal requirement.

Observation:

The process of recruitment & selection which is followed by the company is helpful to meet the

company’s manpower requirement.

62

Response Pattern Remark Percentage

Strongly Agree 10 19%

Agree 30 59%

no opinion 7 14%

disagree 2 4%

strongly disagree 2 4%

2) Recruitment & Selection Policy of company is clearly stated.

25%

59%

10% 4% 2%

Strongly Agree Agree no opiniondisagreestrongly disagree

Interpretation:

The question was raised to know that employees are aware about the company’s recruitment &

selection policy or not. Near about 85% are agreed that the recruitment & selection policy is

clearly stated and only 8% are disagree.

Observation:

So the recruitment & selection policy of company is clearly stated but it requires little bit

change. But the company policy should be updated time to time.

3)   Internal source is better for company

63

Response Pattern Remark Percentage

Strongly Agree 13 25%

Agree 30 59%

no opinion 5 10%

disagree 2 4%

strongly disagree 1 2%

35%

37%

22%4% 2%

Strongly Agree Agree no opiniondisagreestrongly disagree

Interpretation:

As per the respondent response near about 70% are agree with the statement that internal source

is better for company, 22% having no response and 6% are disagree with the statement.

Observation:

After analysis it is better to get the manpower by internal source as they are aware about that

candidate skill and behavior but sometimes company will not get right candidate.

4) External source is better for company.

64

Response Pattern Remark Percentage

Strongly Agree 18 35%

Agree 19 37%

no opinion 11 22%

disagree 2 4%

strongly disagree 1 2%

4%

30%

8%40%

18%

Strongly Agree Agree no opiniondisagreestrongly disagree

Interpretation:

Near about 55% are disagree with the statement that external source is better for company’s

recruitment process and about 34% are in favor of this statement.

Observation:

From this question respondent are satisfied with the internal source but some are not satisfied

and they preferred external source.

5) I feel scarcity of manpower at my working place.

65

Response Pattern Remark Percentage

Strongly Agree 2 4%

Agree 15 30%

no opinion 4 8%

disagree 20 40%

strongly disagree 9 18%

10% 10%

25%43%

12%

Strongly Agree Agree no opiniondisagreestrongly disagree

Interpretation:

Near about 60% are disagree with this statement, means they are not feeling scarcity of

manpower and Only 20% are agree with this statement.

Observation:

This shows that HR department fulfills all the requirements of human resource in the

organization as soon as required. But as some are disagree with this statement means the

recruitment process needs change.

6) I feel that the right job is being performed by the deserved person at my working environment.

66

Response Pattern Remark Percentage

Strongly Agree 5 10%

Agree 5 10%

no opinion 13 25%

disagree 22 43%

strongly disagree 6 12%

18%

43%

18%

14% 8%

Strongly Agree Agree no opiniondisagreestrongly disagree

Interpretation:

It is very important for any organization to recruit skilled manpower, to achieve its business

target. The question was raised to know the opinion that right job is performed by right person.

So 60 % are agree and near about 20% are disagree.

Observation:

This shows company is recruiting right candidate for right job but some respondent are disagree

so selection process need improvement and proper verification of recruitee.

7) The employee’s competency matches with the job specification.

67

Response Pattern Remark Percentage

Strongly Agree 9 17%

Agree 22 43%

no opinion 9 18%

disagree 7 14%

strongly disagree 4 8%

2%

39%

41%

10% 8%

Strongly Agree Agree no opiniondisagreestrongly disagree

Interpretation:

Nearly 45% are agree with this statement and 20% are disagree but surprisingly 40% gave no

opinion this means they are not aware about other competencies,

Observation:

This interpret ate that company’s recruitment process is helpful in getting right candidate for

right job but as per of the some respondent dissatisfaction the recruitment should be more filter.

8) To what extent you are satisfied with the external source (job portals) for recruitment process.

68

Response Pattern Remark Percentage

Strongly Agree 1 2%

Agree 20 39%

no opinion 21 41%

disagree 5 10%

strongly disagree 4 8%

7%9%

49%

33%

2%

Strongly Agree Agree no opiniondisagreestrongly disagree

Interpretation:

some respondent are satisfied with the external source of recruitment ,It is observed that most of

the candidates are recruited through “Reference” or other internal source and about 50% have

no opinion the external sources like job portals, consultancies.

9) To what extent you are satisfied with the employee’s reference for recruitment process.

69

Response Pattern Remark percentage

Strongly Agree 3 7%

Agree 4 9%

no opinion 22 49%

disagree 15 33%

strongly disagree 1 2%

20%

40%4%

22%

14%

Strongly Agree Agree no opiniondisagreestrongly disagree

Interpretation:

60% of respondent are in favor of the statement that they are satisfied with the employee’s

referral, this helps in getting known candidates as company knows the skill and behavior of the

recruitee. But near about 35% are disagree with the statement so, recruitment process need good

external sources for recruitment process.

10) To what extent the selection procedure followed for your recruitment is suitable to your job.

70

Response pattern Remark percentage

Strongly Agree 10 20%

Agree 20 40%

no opinion 2 4%

disagree 11 22%

strongly disagree 7 14%

28%

40%

4%

20%8%

Strongly Agree Agree no opiniondisagreestrongly disagree

Interpretation:

Near about 70% of the candidates are satisfied with the selection procedure and this shows right

person is in right job but near about 30 % are not satisfied so this shows that selection process

also needs some changes.

71

Response pattern Remark percentage

Strongly Agree 14 28%

Agree 20 40%

no opinion 2 4%

disagree 10 20%

strongly disagree 4 8%

Chapter – 5

72

FINDINGS AND INTERPRETATION

After a thorough study and discussion on the companies recruitment & selection policy, to know

its effectiveness in the organization a self designed questionnaire has been prepared to gather

the views of employees.

The questionnaire contains 10 questions related to recruitment & selection topic. The

questionnaire has been distributed to 50 employees from various departments (HPD, Marketing,

Legal (SCM), PNS, and Finance & Logistic) and asked them to answer the questions by

selection the given choices.

The responses of all the questions were summed up from all the answered questionnaires. These

summed up responses were calculated to derive the percentages to make the interpretation more

meaningful, being represented in the form of pie chart.

These are the findings:

1. The process of recruitment & selection which is followed by the company is helpful to

meet the company’s manpower requirement to some extent.

2. The recruitment & selection policy of company is clearly stated but no updation

according to the company’s objective.

3. Company is highly dependent on employee’s referral for higher position and for lower

posts company prefers job portals and outsourcing.

4. Company is recruiting right candidate for right job but some respondent are disagree so

selection process needs improvement and proper verification of recruitee.

5. Candidates are not timely informed for their selection and also for their rejection.

6. Too much time taken by the HPD in recruiting some important urgent posts.

7. Some respondent are satisfied with the external source of recruitment ,It is observed that

most of the candidates are recruited through “Reference” or other internal source and

about 50% have no opinion the external sources like job portals, consultancies.

8. After analysis it is better to get the manpower by internal source as they are aware about

that candidate skill and behavior but sometimes company will not get right candidate.

73

Chapter – 6

74

SUGGESTIONS

After concluding the study of the companies recruitment policy, interaction with some of the

recruitment manager, company associates and based on the responses received from the

associates the following suggests are made to the company for further improvement of the

policy.

1. The organization should not majorly Clear job description is given to the candidates at

the time of interview itself, to avoid disappointment after joining.

2. The candidate should be informed in time whether they have been selected or not. There

should not be any delay in informing the candidate.

3. There should be reliability on external sources.

4. Recruitment feedback should be taken by the candidates to improve the recruitment

process.

5. The employees should be called for the interview only after checking their educational

qualifications and job experience in a proper way so as to save the time and cost involved

in the recruitment process.

6. Depend on the application bank as the major source for the details of the candidate for

recruitment purpose. It should also consider other sources which could provide them

better options.

7. Follow up to be done to the newly engaged employees to ensure that they have settled in

and to check on how well they are doing. If they have any problems it is better to

identify them at an early stage rather than allowing them to fester.

8. Internal job posting to be preferred to reduce cost of recruitment.

9. Organization should use social networking sites for creating pool of good candidates.

75

Bibliography

76

Bibliography

H. John Bernardin “ Human Resource Management”, Fourth Edition, Mc Graw

Hill,2000.

Angelo S Denisi , “Human Resource Management” ,Second Edition, Biztantra, 2005.

GaryDessler, “Human Resource Management” Tenth Edition, Pearson Education,

2007,pg. no.423-530.

C.R. Kothari, “Research Methodology Methods and Techniques”, Second Edition, New

Age International Publishers, 2004.

Information from Company Policy Manual

Abhishek Agarwal - EzineArticles.com Expert Author 

Recruitment and Selection by Duncan Brodie- EzineArticles.com Expert Author.

Websites:

www.shrm.com

www.citrhr.com

www.agi-glaspac.com

www.management.org

http://www.ssa.vic.gov.au

77

Annexure

78

Questionnaires for associates:

I am student of SIVA SIVANI INSTITUTE OF MANAGEMENT, SECUENDRABAD, and I am doing project on RECRUITMENT AND SELECTION in the field of Human Resource Department. I would be grateful if you could spare few minutes and answer the questions below. The answer will be kept confidential and used for academic purpose only.

QUESTIONNAIRE

[Kindly tick ( √ ) the options you think are right ]

1) The recruitment and selection process of company meets the current legal requirements?a) Strongly Agree b) Agree c) no opinion d) disagree e) strongly disagree

2) Recruitment & Selection Policy of company is clearly stated.a) Strongly Agree b) Agree c) no opinion d) disagree e) strongly disagree

3) Internal source is better for company.a) Strongly Agree b) Agree c) no opinion d) disagree e) strongly disagree

4) External source is better for company.a) Strongly Agree b) Agree c) no opinion d) disagree e) strongly disagree

5) I feel scarcity of manpower at my working place.a) Strongly Agree b) Agree c) no opinion d) disagree e) strongly disagree

6) I feel that the right job is being performed by the deserved person at my working environment.a) Strongly Agree b) Agree c) no opinion d) disagree e) strongly disagree

7) The employee’s competency matches with the job specification.a) Strongly Agree b) Agree c) no opinion d) disagree e) strongly disagree

79

8) To what extent you are satisfied with the external source (job portals) for recruitment process.

a) 0% b) 25% c) 50% d) 75% e) 100%

9) To what extent you are satisfied with the employee’s reference for recruitment process.

a) 0% b) 25% c) 50% d) 75% e) 100%

10) To what extent the selection procedure followed for your recruitment is suitable to your job.

a) 0% b) 25% c) 50% d) 75% e) 100%

THANK YOU……..

Date: Department:

80

81

Annexure

82