background screening & analysis

8/8/2019 Background Screening & Analysis

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PROJECT REPORT

A DISSERTATION REPORT ON

An Analytical study of

Background Verification of Employees & Analysis,

At

M/ S. Pragathi consultancy Services (PCS)

Submitted to Periyar University in partial fulfillment of the Requirement for

MASTER OF BUSINESS ADMINISTRATION

Under the Guidance of

Mr. Santosh Avadhani Prof..GG Pai B.A,A.T.I,M.B.APartner &CEO Faculty GuideM/S Pragathi Consultancy Service SSR CollegeBangalore. Bangalore

By

RAGHUPRASHANTHA MR

Reg No 05DBIA1043

2005 -2007

SSR College of Science , Commerce & Management

Study Center:Periyar University-Salem 636 011

________________________________________________________________________R.No 05DBIA1043. MBA -Human Resource Management. Page 1 of 86


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BANGALORE

PROJECT CERTIFICATE

This is to certify that the Dissertation Titled An analytical study ofBackground

verification of Employees & Analysis ,at Pragathi Consultancy Services. is

based on an Original Project Study conducted by Mr.RAGHUPRASHANTHA

M.Rof IV semester MBA Programme under the Guidance ofProf. GG.PAI

This dissertation is based on original Research and has not formed basis for the

award of any other Degree/Diploma By Periyar University.

Mr. Santosh AvadhaniPartner & CEO

Praghathi consultancy services

Bangalore



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BANGALORE

CERTIFICATE

This is to certify that the Dissertation entitled An analytical study of BackgroundVerification of Employees & Analysis ,Undertaken At

M/S Pragathi Consultancy Services.

Bangalore

Submitted in Partial Fulfillment of the Requirement for the Award of the Degree of

Master of Business Administration, Is a bonafide work carried out by

Raghuprashantha MR

Reg No 05DBIA1043

2005-2007

Under my supervision and guidance and that no part of this report has been submitted forthe award of any other Degree and the work has not been published in any scientific orpopular magazines.

Mr.N .N.Giri



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Principal SSR College of

Science,Commerce & Management

Bangalore

STUDENT DECLARATION

I hereby declare that the Project Report or the DISSERTATION entitled An

analytical study ofBackground Verification of Employees & Analysis,

Undertaken at

M/S Pragathi consultancy Services (PCS)

Under the Guidance of

Mr. Santosh Avadhani

Partner & CEOPraghathi consultancy servicesBangalore.

Prof..GG Pai B.A,A.T.I,M.B.A

Faculty GuideSSRCBangalore

Submitted in partial fulfillment of the Requirement for the award of the Degree of

Master of Business Administration, to Periyar University

Is the result of my own effort and has not been submitted to any other institution for

the award of any degree or Diploma.

Place:

Date: Raghuprashantha MR



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BANGALOR

ACKNOWLEDGEMENT

I am pleased to record my gratitude and sincere thanks to my guide Prof. GG PaiProject guide, SSRC, Bangalore for his sincere guidance and valuable assistance forcompleting this report.

I would like to express my sincere thanks to Mr.N.N.Giri Principal SSRC, Bangalore-

Periyar University for giving this opportunity.

I also take this moment to express my gratitude to Mr.BV. Raghunath , , HR & Admin

Professional ,Bangalore.

I am also indebted to my parents and friends for their support for completing this project

successfully.

Raghuprashantha MR

Reg. No 05DBIA1043



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BANGALOR

Table of Contents


Chapter No. Particulars Page No.

Certificate from the Organization

Certificate from the College

Student Declaration

Guide Certificate

Acknowledgement

1 Introduction to HRM 08

2 Introduction to Background Check 14

3 Company Profile 31

4 Grade Structure 41

5 Research Methodology 44

6 Data Analysis 48

7 Findings From the Study 71

8 Suggestions and Recommendations 73

9 CONCLUSIONS 75

10 BIBLIOGRAPHY 78

11 ANNEXURE & QUESTIONIRIES 80


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Introduction to HRM



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Earlier references: In western countries HRM had its primitive beginning in 1930s. Not

much thought was given on this subject in particular and no written records or documents

interesting to note HRM concepts was available, in ancient philosophies of Greek, Indian

and Chinese. This is not to suggest that industrial establishment and factories system, as it

is known today, existed in ancient Greece, India or china. The philosophy of managing

human being, as a concept was found developed in ancient literatures in general and in

Indian philosophy in particular.

Personnel functions: Till 1930s, it was not felt necessary to have a separate discipline

of management called Personnel management. In fact, this job was assigned as part of

the factory manager. Adam Smiths concept of factory was that it consists of three

resources, land, labour and capital. This factory manager is expected to procure,

Process and peddle labour as one of the resources. The first time when such a specialist

person was used; it was to maintain a buffer between employer and employee to

meet the legitimate need of employees. However, it is the employer who decided whatis legitimate need of employees. In fact, the specialist person was more needed to

prevent unionization of employees. This was the case before 1930-s all over the world.

Environmental Influences on HRM: Since 1930s, certain developments took place,

which greatly contributed, to the evolution and growth of Human Resources Management

(HRM). These developments are given below:

Scientific Management

Labour Movements

Government Regulations.

Need for the Study :

Shortage of skills.



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Skills and knowledge people are always on short supply. Alternatively they are too costly

to hire from outside. The best alternative is to improve skill and knowledge of existing

employees.

Technological Obsolescence.

Growth of technology takes places very fast. This will render current technology obsolete

in the future. There is a great need to upgrade technology. This needs suitable training.

Personal Obsolescence.

At the time recruitment employees possess a certain of knowledge and skill. As time

passes knowledge becomes obsolete, unless it is updated by proper training. This happens

because of changes taking place in product technology, production methods, procurement

of better machines, setting up of modern production lines, introduction of modern method

of supervision and information processing through MIS and EDO..

Organization Obsolescence.

Modern management has introduced a number of innovative steps in functions of

management like planning, organizing, controlling, coordinating and directing.

Organization which is impervious to such changes is bound to fail and become obsolete.

Upgrading Ability of Threshold workers.

Public policy provides reservation to disadvantaged sections of the society like

handicapped, minorities and dependents of deceased workers etc. All these are threshold

workers having less than minimum prescribed level of knowledge and skill. They require

extensive training to bring them up to the minimum level of performance standard.

Coercive training by government.

In order to provide better employability chances of unemployed youth, certain

governments taken initiative to mobilize resources available at pubic/government and

private sectors to outside candidates. One such example is the Apprentice Training

conducted by govt. of India. A part of expenditure incurred for this by private sectors are

reimbursed by government.



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Human capital

The latest thinking is to treat employees as human capital. The expenditure involved is

training and developments are now being considered as an investment.

Scope of Human Resource Management

The Scope of HRM is in deed fast. All major activities in the working life of

worker from time of his entry in an organization until he / she leaves, come under the

preview of HRM. Specifically, the activities included are Human Resource planning, Job

analysis and design, Recruitment, Selection, Orientation and placement, Training and

development, Performance appraisal and Job evaluation, employee and executive

remuneration and communication, employee welfare, safety and health, industrial

relations and the like.

HRM is becoming a specialized branch giving rise to a number of specialized areas like :

Staffing Welfare and Safety

Wages and Salary Administration

Training and Development

Labour Relations



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Human Resource Management in PCS :

Personnel/Human Resource of an undertaking is its important constituent.

Efficiency, Profitability and in fact the very existence of the undertaking will depend on

this constituents. Co-operation and dedication in performance on the part of its personnel

ends in the accomplishment of its objectives. Therefore human resource is of immense

importance since it involves matters such as identifying, placing, evaluating, and

developing individuals at work and maintaining effective multilateral communication

systems. Human resources along with financial and material resources contribute to

production of goods and services in an organization.. In short HRM may be defined as

the art of procuring, developing and maintaining competent workforce to achieve thegoals of an organization in an effective and efficient manner.

Objectives of the HRM are to secure the following: -


Nature of HumanResourceManagementProspects

of HRM

IndustrialRelations

Human ResourceManagement

Employee andexecutiveRemuneration

Employee hiring

Employee Maintenance Employee Motivation


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1. Industrial peace: This is secured by excellent union management relations, healthy

inter-personal relationships, and promoting participative management style and good

industrial and labour relations.

2. Achieve High Productivity: The underlying objective brings to increase the quantity

or volume of the product or service for a given input, productivity improvement

programme is very significant in a competitive environment.

3. Better quality of working life of employees: This involves both intrinsic and extrinsic

factors connected with work.

4. Obtain and sustain competitive advantage through empowerment : continuous

improvement and innovative steps being the two essential ingredients to achieve and

sustain competitive advantage, todays industries

are knowledge based and skill intensive.

5. Cordial relationship between the employer and employees.

6. Personnel research functions.

7. Proper orientation and introduction to the new employees.

BACKGROUND SCENARIO

William James of Harvard University estimated that employees could retain their jobs by

working at a mere 20-30 percent of their potential. His research led him to believe that if

these same employees were properly motivated, they could work at 80-90% of their

capabilities. Behavioral science concepts like motivation and enhanced productivity

could well be used for such improvements in employee output. Training could be one of

the means used to achieve such improvements through the effective and efficient use of

learning resources.

Training and development has been considered an integral part of any organization

since the industrial revolution era. From training imparted to improve mass production to

now training employees on soft skills and attitudinal change, training industry has come a



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long way today. In fact most training companies are expecting the market to double by

the year 2007, which just means that the Indian training industry seems to have come of

age.

Organization and individual should develop and progress simultaneously for the their

survival and attainment of mutual goals. So, every modern management has to develop

the organization through human resource development. Employee training is the most

important sub-system of human resources development. Training is a specialized function

and one of the fundamental operative functions for human resources management.

There are few generalizations about training that can help the practitioner. Training

should be seen as a long term investment in human resources using the equation given

below:

Performance = ability (x) motivation

Background Check can have an impact on both these factors. It can heighten the skills

and abilities of the employees and their motivation by increasing their sense of

commitment and encouraging them to develop and use new skills. It is a powerful tool

that can have a major impact on both employee productivity and morale, if properly used.

Introduction to Background Check________________________________________________________________________R.No 05DBIA1043. MBA -Human Resource Management. Page 14 of 86


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Background Verification is basically concerned with having the right types of people

available as and when required and improving the performance of existing people to

make them to work more effective on their jobs, Manpower management thus starts with

Background check. It is first done by studying three types of Forecasts.

1) The economic needs,

2) The Company sales and expansion forecast

3) The employee market forecast



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Such forecast results in the companys organization plans. A Comparison of these

two namely the forecast and the plans, can result in anticipating the manpower needs.

Background Deals with the management of people in an organization. It is a

management function that helps managers recruit, select, train and develops members

for organizations.

Background is related to the promotions and transfers from within the organization to

jobs for which the existing personnel are suitable.

Background deals with the management of people in an organization. It is a

management function that helps managers recruit, selects, Train and develop members

for organizations .It is with the peoples dimensions in organizations.

Background is related to the continuous process of manpower planning, selection,

performance appraisal, salary administration, training and management development and

retention of talented employees.

Thus Background refers to a set of programs, functions and activities, designed and

carried out in order to maximize both employees as well as organizational effect venal

effectiveness. Background is an actuating process, which involves every worker.

Objectives of Background Check:

The primary objective of Background check of Employees is to ensure availability of a

competent and willing work force to organizations.

Its main objective is to make the organization people oriented.

1. Social objectives

To be ethically and socially responsible to the needs and challenges of the society

while minimizing the negative impact of such demand upon the organization. The failure



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of organizations to use there resources for the societys benefits in ethical way may lead

to restrictions,

2. Organizational Objectives.

To recognize the role of Background in Brining about organization effectiveness.

Background is not an end self. It is only a means to assist the organization with its

primary objectives.

4) Functional Objectives

To maintain the departments contributions at a level appropriate to the organizations

need. Resources are wasted when Background demands.

5) To assist employees in achieving their personal goals, at least insofar as these

goals enhance the individuals contribution to the organization. Personal

objectives of employees must be met if workers are to be maintained, retained

and motivated.

10 Tips For A Better Criminal Background Check

1. Get Complete Information From Your Applicant. A criminal backgroundcheck will be based in part on the information provided by the applicant. Ifnecessary information is left out - such as which campus of a state university wasattended, or the city where they last worked - the turnaround time can beadversely affected.

2. Order An Address History Search. This search serves as the foundation of athorough criminal background check. By identifying the applicant's residencyhistory, other searches such as County Criminal Records and Driving Records canbe conducted in the proper locations.



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3. Easy Backgrounds' Address History Search is based on an applicant's SocialSecurity Number and name, so in addition to former addresses, the results willconfirm if it is a valid number and the names associated with it.

4. Compare Criminal Background Check Results. Compare the address historyprovided on the candidate's application with the criminal background checksearch results. If there are inconsistencies, ask the applicant for an explanation.

5. Include Work Locations. People spend a lot of time at work or in the area oftheir employer, so consider a County Criminal History search in this area as wellif it differs from the applicant's Address History.

6. Credit Checks for Employment. Credit History Reports for employmentpurposes are different than those obtained for credit-granting purposes. Thereports for employers have the individual account numbers screened out or altered

(a fraction of it may appear or be substituted). Using a standard credit report foremployment purposes is a violation of the FCRA.

6. Obtaining Birth Dates Without Violating The Law. As a potentialemployer, you can't ask a candidate's date of birth - but you need a date of birthto run a Criminal History Search. One option is to extend the job offer beforethe criminal background check is ordered, with the offer being contingent onthe results of the report. A second option is to have the applicant complete therelease form, including date of birth, and seal it in an envelope when theapplication is submitted. Use it only if you run a criminal background check oremployee background check.

7. Get Names of Supervisor and Co-Workers. Human Resourcedepartments will frequently give out only the most basic of information - startand termination dates, title, etc. If you can get the name of a Supervisor or afew co-workers, they are frequently less restrictive in the information theydivulge for pre employment screening.

8. Run A Statewide Criminal Search. We don't recommend StatewideCriminal Searches as a sole source of information during a criminal backgroundcheck, but they are a good way to augment your County Criminal RecordSearch. If it's available, it's a relatively inexpensive way to cover a broad area.

9. Integrate With Your Applicant Tracking System. If you use anApplicant Tracking System, Easy Backgrounds can be easily integrated so thatit will pull all the necessary data to run a criminal background check. Nodouble data entry.

10. Get With The Times. The Web is how business gets done quickly. Ifyou're not using a Web-based criminal background check provider, you're



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probably waiting longer and spending more for your pre employment screeningreports. Give Easy Backgrounds a try.

Why We need the Employee Background Check!!!!

Those two words have been devastating to many businesses and they could cost youmillions of dollars. Negligent hiring is the failure to check the backgrounds of jobapplicants before you hire them.

When a pizza deliveryman raped a customer, a jury awarded the victim $6 million of theparent company's money. The firm had failed to do a background check which mighthave disclosed the man's previous sex-offense record.

A trucking company was ordered to compensate a family when several family memberswere injured in an accident caused by one of its drivers. The amount awarded was many

times what it would have been had the company checked the driver's record before hiringhim.

Every day people with criminal records, falsified educational credentials, and otherserious liabilities are hired by companies who fail to thoroughly check their backgrounds.The result can be acts leading to expensive negligent hiring lawsuits.

Knowing the backgrounds of the people you hire is absolutely essential because a

business can be held liable for accidents and crimes committed by its employees Toprotect your company and minimize risk, get reliable background information abouteveryone you consider for employment.

Employee Background Checkminimizes these problems with its services. You canverify the accuracy and/or completeness of information provided by job applicants before hiring and training -- and thus reduce the costs incurred by high turnover andreduce your risk of liability.

Employee Background Check Services

General Information Reports Driving Record Reports Workers' Compensation Reports Credit Reports Criminal History Reports Education Verification Reports In-Depth Reports Rush Services



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EmploymentBackgroundCheck

services and companies from around the Web. The following companies offer pre-

employment screening and background check packages which typically includeverification of education and employment, credit reports, driving records, civil recordsand any other type of information you may need when conducting a search.

Provides pre-employment screening and background checks in the areas of frauddetection and prevention, risk management, debt collection, asset location andidentification, information verification, due diligence claims investigations and other permissible

Texas firm provides companies, individuals and organizations a time sensitive, costeffectivecriminalbackgroundcheckservice.

A pre-employment screening service that provides a full range of public record searches,employment and education verifications and references checks both nationally andabroad.

Provides HR professionals and hiring managers with full service employment background screening products including hand-pulled county criminal backgroundchecks, Motor Vehicle Records, and education verification and many other services.Corra has crafted handy screening packages to assist with screening various types of

employmentpositions.

DataCheck,

A full service pre-employment background screening company providing criminalrecords, driving records, credit reports, employment/education verifications and more. Nationwide searches, online ordering and retrieval. Visit their website,www.datacheckinc.com and request a free quote online.

Background Information Services works closely with companies to develop a hiringscreeningprogram.

ESRcheck

Employment background screening, with emphasis on legal compliance, Internet accessand professional HR assistance. Site contains educational articles, reports and sources onsafe hiring.

http://www.esrcheck.com/http://www.esrcheck.com/


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SecurityCheck:

Security and investigations company which offers employment and drug screening,criminal background checks, private investigations, physical security, bodyguards, andalarm monitoring and installation.

Screening Services is a leading provider of employment background checks, drug testingand physicals.

National online provider of employee background checks and investigative services.They offer pre-employment screening, tenant screening and employment verification,which include credentials check, driving records, criminal checks, sex offender checks,court eviction records, education verification, social security trace and reference checksfor human sources and small business owners.

The Background & Network service loss prevention, consulting, investigation andbackground screening agency.

Employment screening and background check firm provides comprehensive backgroundchecks, employment screening and drug testing.

Employment Background Checks:

A Jobseeker's Guide

Whether you are hired or promoted for a job may depend on the information revealed in abackground check. Job applicants and existing employees as well as volunteers may beasked to submit to background checks. For some jobs, screening is required by federal orstate law. The current emphasis on security and safety has dramatically increased thenumber of employment background checks conducted.

In short, employers are being cautious. At the same time, applicants and employees fearthat employers can dig into the past in ways that have nothing to do with the job.

This guide explains the why and how of background checks. It also tells you what can becovered in a background report, your rights under the Fair Credit Reporting Act, and

what you can do to prepare. For more information, go to the References section at the endof this guide. The PRC does not perform background checks.

Why Does an Employer Conduct a Background Check: Employers check potentialand current workers for several reasons. The things an employer wants to know aboutyou can vary with the kinds of jobs you might seek. Here are a few of the reasons foremployment screening.



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Negligent hiring lawsuits are on the rise. If an employee's actions hurt someone,the employer may be liable. The threat of liability gives employers reason to becautious in checking an applicant's past. A bad decision can wreck havoc on acompany's budget and reputation as well as ruin the career of the hiring official.

Employers no longer feel secure in relying on their instinct as a basis to hire.

Current events have caused an increase in employment screening.

Child abuse and child abductions in the news in recent years have resulted innew laws in almost every state that require criminal background checks foranyone who works with children. The move to protect children through criminalbackground checks now includes volunteers who serve as coaches for youthsports activities and scout troop leaders.

Terrorist acts of September 11, 2001, have resulted in heightened security and

identity-verification strategies by employers. Potential job candidates and long-time employees alike are being examined with a new eye following September11, 2001.

Corporate executives, officers, and directors now face a degree of scrutiny inboth professional and private life unknown before the Enron debacle and othercorporate scandals of 2002.

False or inflated information supplied by job applicants is frequently in thenews. Some estimates are that 30% to 40% of all job applications and resumesinclude some false or inflated facts. Such reports make employers wary of

accepting anyone's word at face value.

The "information age" itself may be a reason for the increase in employment screening-- the availability of computer databases containing millions of records of personal data.As the cost of searching these sources drops, employers are finding it more feasible toconduct

I don't have anything to hide. Why should I worry!!!

While some people are not concerned about background investigations, others areuncomfortable with the idea of an investigator poking around in their personal history. In-

depth background checks could unearth information that is irrelevant, taken out ofcontext, or just plain wrong. A further concern is that the report might includeinformation that is illegal to use for hiring purposes or which comes from questionablesources.

What Is Included in a Background Check!!



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Background reports can range from a verification of an applicant's Social Securitynumber to a detailed account of the potential employee's history and acquaintances. Hereare some of the pieces of information that might be included in a background check. Notethat many of these sources are public records created by government agencies.

Driving records Vehicleregistration

Credit records Criminalrecords

Social Securityno.

Educationrecords

Court records Workers'compensation

Bankruptcy Character references

Neighborinterviews

Medical records

Propertyownership

Military records State licensingrecords

Drug testrecords

Past employers Personalreferences

Incarcerationrecords

Sex offenderlists

What Cannot Be in a Background Check Report!!

Bankruptcies after 10 years. Civil suits, civil judgments, and records of arrest, from date of entry, after seven

years. Paid tax liens after seven years.

Accounts placed for collection after seven years. Any other negative information (except criminal convictions) after seven years.

Arrest information. Although arrest record information is public record, in Californiaand other states employers cannot seek from any source the arrest record of a potentialemployee. However, if the arrest resulted in a conviction, or if the applicant is out of jailbut pending trial, that information can be used.

In India, an exception exists for the health care industry where any employer whohas an interest in hiring a person with access to patients can ask about sex relatedarrests. And, when an employee may have access to medications, an employer can

ask about drug related arrests.

Criminal history. In India , criminal histories or "rap sheets" compiled by lawenforcement agencies are not public record. Only certain employers such aspublic utilities, law enforcement, security guard firms, and child care facilitieshave access to this information. With the advent of computerized court records



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and arrest information, however, there are private companies that compile virtual"rap sheets."

Workers' compensation. when an employee's claim goes through the becomespublic record. An employer may only use this information if an injury might

interfere with one's ability to perform required duties. Under the federalAmericans with Disabilities Act, employers cannot use medical information or thefact an applicant filed a workers' compensation claim to discriminate againstapplicants.

In India employers may access workers' compensation records after making an offer ofemployment. To gain access, employers must register with the and confirm that therecords are being accessed for legitimate purposes. Although the agency may not revealmedical information and the employer may not rescind an offer due to a workers'compensation claim employers sometimes discover that applicants have not revealedprevious employers where they had filed claims. In such situations, employers often

terminate the new hire because it appears they falsified the application

Bankruptcies. Bankruptcies are public record. However, employers cannotdiscriminate against applicants because they have filed for bankruptcy.

Although these laws should prevent an employer from considering certain information,there is no realistic way for the applicant to determine whether such information will berevealed in a background check. This is particularly true for investigations conductedonline where the information obtained from web-based information brokers might not beverified for accuracy or completeness.

For example, if you were arrested but never convicted, a data search could reveal thearrest, but the investigator who compiled the information might not delve further into thepublic records to determine that you were acquitted or the charges were dropped.Reputable employment screening companies always verify negative information obtainedfrom data base searches against the actual public records filed at the courthouse.

Can an employment application ask about things that should not be reported?

For example, an employment application might ask if you have "ever" been arrested. Theconsumer reporting agency cannot report an arrest that from date of entry was more thanseven years ago. It does not say the employer cannot How to handle such questions on an

employment application is of real concern to many people, especially those concernedwith a youthful mistake from the distant past.

State employment laws may limit the questions an employer includes on a jobapplication.



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Aren't some of my personal records confidential!!!

The following types of information may be useful for an employer to make a hiringdecision. However, under the federal Fair Credit Reporting Act, the employer is required

to get your permission before obtaining the records.,"

Education records., transcripts, recommendations, discipline records, andfinancial information are confidential. A school should not release student recordswithout the authorization of the adult-age student or parent. However, a schoolmay release "directory information," which can include name, address, dates ofattendance, degrees earned, and activities, unless the student has given writtennotice otherwise

Military service records. Under the federal Privacy Act, service records areconfidential and can only be released under limited circumstances. Inquiries notauthorized by the subject of the records must be made under the Freedom of

Information Act. Even without the applicant's consent, the military may releasename, rank, salary, duty assignments, awards, and duty status. For more onmilitary records,

Medical records. In many states, medical records are confidential. There are onlya few instances when a medical record can be released without your knowledge orauthorization. The requires your specific permission for the release of medicalrecords. If employers require physical examinations after they make a job offer,they will have access to the results.

There are other questions such as age, marital status, and certain psychologicaltests that employers cannot use when interviewing. These issues are beyond thescope of this fact sheet. If you have further questions, contact the resources at theend of this fact sheet. The federal Equal Employment Opportunity Commissionand the fair employment agencies in the states handle these issues.

What can my former employer say about me!!

Often a potential employer will contact an applicant's past employers. A former boss cansay anything [truthful] about your performance. However, most employers have a policy



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to only confirm dates of employment, final salary, and other limited information.California law prohibits employers from intentionally interfering with former employees'attempts to find jobs by giving out false or misleading references.

Under Indian law and the laws of many other states, employees have a right to reviewtheir own personnel files and make copies of documents they have signed. If you are astate or federal employee, Jobs such as truck driver positions fall under regulations of thefederal Department of Transportation. Employers are required to accurately respond to aninquiry from a prospective employer about whether you took a drug test, refused a drugtest, or tested positive in a drug test with the former or current employer.

Who Conducts Background Checks

There are many companies that specialize in employment screening. It is outside thepurpose of this fact sheet to identify background checking companies by name. The mostimportant thing to keep in mind is that companies conducting background checks fall intoseveral broad categories. This can range from individuals commonly knownas"privateinvestigators," to companies that do nothing but employment screening, and toonline data brokers.

Corporations that employ large numbers of people may have an established relationshipwith a third-party background checking company or may even use an affiliated companyfor their employment screening. Other background checking companies may work on aless formal basis with employers. There are about several companies that conduct

employment screening and thousands others nationwide, including private investigators.

With the information age upon us, it is easy for employers to gather backgroundinformation themselves. Much of it is computerized, allowing employers to log on topublic records and commercial databases directly through dial-up networks or via theInternet. Finding one of these online companies is as easy as using an Internet searchengine to find web sites that specialize in "background checks." Employers shouldbeware of companies advertising on the Internet that they can "find everything aboutanyone." They are not necessarily going to be in strict compliance with federal and statelaws, especially the provisions that require accuracy of background check reports.

Do I have a right to know when a background check is requested!!



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Increase the disclosure and consent requirements of employers who use "consumerreports." Such reports might consist only of a credit check. More extensive reports mightinclude criminal histories, driving records, and interviews with neighbors, friends andassociates.

To be covered by the , the Federal Trade Commission says that a report must be preparedby an outside company -- a "consumer reporting agency" or business that "for monetaryfees, dues, or on a cooperative nonprofit basis, regularly engages in ... assembling ...information on consumers for the purpose of furnishing consumer reports to thirdparties."

A job offer, or denying a promotion - it must take the following steps, which areexplained .

Before the adverse action is taken, the employer must give the applicant a "pre-

adverse action disclosure." This includes a copy of the report and an explanationof the consumer's rights under .

After the adverse action is taken, the individual must be given an "adverse actionnotice." This document must contain the name, address, and phone number of theemployment screening company, a statement that this company did not make theadverse decision, rather that the the accuracy or completeness of any of theinformation in the report.

The federal law has two significant loopholes. First, if the employer does notuse a third-party screening company but, rather conducts the background check itself, it is not

subject to the notice and consent provisions of the . Second, the employer might tell therejected applicant that its adverse decision was not based on the contents of thebackground investigation, but, rather that the job pool was so exceptional that it made itshiring decision based on the fact that there were individuals more qualified than theapplicant.

In both of these situations, the applicant would not have the ability to obtain a copy of thebackground check to find out what negative information it contained. We have learned ofsituations where the individual remained unemployed for years, not knowing thatwrongful criminal records which resulted from identity theft were the reason for theindividual's failure to find employment.

Workplace Investigations



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This is an investigation conducted by a third-party your employer may hire if theemployer suspects you of:

Misconduct relating to your employment.

A violation of federal, state or local laws or regulations. A violation of any preexisting written policies of the employer. Noncompliance with the rules of a self-regulatory organization, that, for example,

oversees the securities and commodity futures industry.

It means your employer does not have to give you notice and get your permission toconduct a misconduct investigation. Like other inquiries covered by the FCRA, this onlyapplies if the employer hires an outside party to conduct the investigation.

It also means you will not receive a notice of your rights as others who are subject to astandard employment background check normally would. If, at the end of the

investigation, the employer decides to take some action against you, you receive the"adverse action" notice only afterthe action has been taken.

You will receive only a "summary" of the investigation report, but not the more detailedreport that may include sources.

Who will see the investigation report!!

The report may be communicated to:

The employer or its agent. Any federal or state officer, agency or department or any officer, agency or

department of a unit of general local government. Any self-regulatory organization with regulatory authority over the activities of

the employer or the employee. Others, as is otherwise required by law; or A government agency, in accordance with an existing FCRA section that allows a

consumer reporting agency to disclose personal identifying information to a

government agency.



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Can I dispute the findings

Not under the BG dispute procedure. That is because this new section on workplacemisconduct investigations was affected by removing this type of investigation from the

definition of "consumer report." Thus, the usual protections that apply to a "consumerreport" conducted for employment purposes do not apply to workplace misconductinvestigations. If you find yourself in this position, you will probably want to seek theadvice of an employment law attorney.

Medical records or payments. Residential or tenant history. Check writing history. Employment history. Insurance claims.

For job applicants and employees, this means, starting in January 2005, you may receivea free copy of your "file" maintained by a "nationwide specialty consumer reportingagency" that supplies employers with background checks. Before, you could request acopy of your "file" but would have to pay for it.

Now, companies that provide employment background check reports have to, as aminimum, set up a toll-free number that gives you instructions on how to get theinformation in your "file." Companies may but are not required to also provide access tothe free "file" disclosure through a web site address.

Your "file" is not the same as your "report." The "report" is the document the backgroundscreening company gives to your employer. The gives you the right to receive a copy ofyour "report" directly from the employer," but only if the employer issues an "adverseaction" notice. Your "file" is defined in the as ".all of the information [about you]recorded and retained by a consumer reporting agency regardless of how the informationis stored." You are entitled to see your "file," whether or not the employer gives the"adverse action" notice.

Investigative Consumer Reports:

The background check that includes interviews with "neighbors, friends, or associates"

about your "character, general reputation, personal characteristics, or mode of living" iscalled an "investigative consumer report."

When information about you is gathered from interviews, the requires a separatedisclosure. You are also entitled to know the "nature and scope" of an investigativeconsumer report, but you have to ask. For more on how the staff interprets the term"investigative consumer report" and other keys topics under the



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How to Prepare for a Background Check

When you know you are going to be on the job market, take the following steps to reducethe chances that you and/or the potential employer will be "surprised" by informationfound in the background check process:

Order a copy of your credit report. If there is something you do not recognizeor that you disagree with, dispute the information with the creditor and/or creditbureau before you have to explain it to the interviewer. Another individual's namemay appear on your credit report. This happens when someone mistakenly writesdown the wrong Social Security number on a credit application causing that nameto appear on your file. Or you might be a victim of identity theft.

Check court records. If you have an arrest record or have been involved in courtcases, go to the county where this took place and inspect the files. Make sure theinformation is correct and up to date.

Reporting agencies often report felony convictions when the consumer truly

Check DMV records.

Request a copy of your driving record from the Department of Motor Vehicles, especiallyif you are applying for a job that involves driving.

Many employers ask on their application if you were ever convicted of a crime.Or they might word the question to ask whether you have ever been convicted ofa felony or misdemeanor. Typically, the application says you do not have todivulge a case that was expunged or dismissed, or that was a minor trafficviolation.

Do your own background check. If you want to see what an employer'sbackground check might uncover, hire a company that specializes in such reportsto conduct one for you. That way, you can discover if the data bases ofinformation vendors contain erroneous or misleading information. (Consult theYellow Pages under "Investigators.") Or, you can use one of the many online

search services to find out what an employer would learn if conducting abackground check in this way.

Ask to see a copy of your personnel file from your old job. Even if you do notwork there anymore, state law might enable you to see your file. Under you canaccess your file until at least a year from the last date of employment. And youare allowed to make copies of documents in your file that have your signature onthem. You may also want to ask if your former employer has a policy about the



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release of personnel records. Many companies limit the amount of informationthey disclose.

Read the fine print carefully. When you sign a job application, you will be

asked to sign a consent form if a background check is conducted. Read thisstatement carefully and ask questions if the authorization statement is not clear.Unfortunately, jobseekers are in an awkward position, since refusing to authorizea background check may jeopardize the chances of getting the job.

Notice of a background check has to be on a separate form. The only otherinformation this form can include is your authorization and information thatidentifies you. Neither the notice of a background check nor any other formshould ask questions like "race," "sex," "full date of birth," or "maiden name."Such questions violate the federal Equal Employment Opportunity laws. And, youshould not be asked to sign any document that waives your right to sue a

screening company or the employer for violations of the law.

Tell neighbors and work colleagues, past and present, that they might be askedto provide information about you. This helps avoid suspicion and alerts you topossible problems. In addition, their prior knowledge gives them permission todisclose information to the investigator. Forewarning others speeds up the processand helps you get the job faster.

Request previous background check reports. If you have been the subject of abackground check covered by the BG Department, you may be entitled to receivea copy of your "file" from the employment screening company. If you do not

know the name of the screening company, ask the employer who requested thecheck. For more on your right to get a free employment report,



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Company Profile



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M/S Pragh athi Consultancy Services

At PCS, we energetically strive to deliver the best employment options for greatcompanies and the associates we place within them. We serve best and respectedcompanies by sending them the highest-quality individuals for temporary, temp-to-hireand full-time positions.

Companies make Pragathi their first choice for full-time, direct hire, temp-to-hire andtemporary employment agencies because we're at the forefront of the ever-changingstaffing industry. We meet our clients' needs - precisely, quickly and cost-effectively -

with the finest talent.

Young and very experienced - that's probably the best way to describe us !

Pragathi helps companies in searching, selecting and managing the ever-valuable humanassets. Formed in 2005, PCS enjoys an enviable reputation for deliveringefficient, effective and professional solutions to meet our IT and ITES clientsdiverse recruitment needs. We guide the candidates too about the bestopportunities in the marketplace, and constantly advise them in their career

progression.

Pragathi Consulting brings valuable experience to benchmark, revise, implement andpreach the best practices of recruiting to our clients. We will conduct business and HR



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process reviews to assess what works and what doesn't within the client's uniquecorporate environment.

Pragathi Consulting will implement methods to decrease the joining time, reduce thecost-per-hire, and propose tailored solutions to streamline your recruitment process. Ourservices give you the opportunity to focus your expertise where it counts - on your uniquebusiness endeavors. Our goal is to ensure that our clients succeed in meeting their hiringgoals with cost-effectiveness in mind.

Our recruitment performance consulting services are designed to help take your companyto the next level of recruitment capability. Our recruitment consultants are all senior levelrecruiters with years of IT and software experience in recruiting, screening, and hiringtechniques that produce lasting results in IT sector.

Adopt a "Do what it takes to get the job done

About Pragathi

* Mission* Objectives

PCS is a dream of professional technocrats incorporated in 2005, with an aim to providecustomized software solutions of the utmost quality in the shortest of time spans and

being the most cost effective. A committed technical and marketing team backs the coregroup of people having over 50 person-years of experience in the industry.

Our role in unfurling the latest techniques, the quality of our services, our spirit ofinnovation and our sound management principles have earned us the confidence and trustof an extensive client base. We strive for excellence in:

* Acquiring and in depth understanding of our clients business sectors* Proposing solutions tailored to the specific needs of each client firm* Effectively carrying out the technology transfer* Delivering our services according to deadlines and within budgets

MISSION

To be agents of change for our clients, facilitating their passage form given condition to amore desired, improved one and by providing information technology solutions to theirbusiness needs.

OBJECTIVES

To be recognized and sought out as the best 'agents of change' because of



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* The soundness of our recommendations* The relevance of our solutions* Our technical expertise* Our uncompromising search for excellence

* Our concern of human impacts

Companies make Prahgathi consultancy Services their first choice for full-time, directhire, temp-to-hire and temporary employment agencies because we're at the forefront ofthe ever-changing staffing industry. We meet our clients' needs - precisely, quickly andcost-effectively - with the finest talent.Young and very experienced - that's probably the best way to describe us !Prahgathi consultancy Services helps companies in searching, selecting and managing theever-valuable human assets. Formed in 2005, Prahgathi consultancy Services enjoys an

enviable reputation for delivering efficient, effective and professional solutions to meetour IT and ITES clients diverse recruitment needs. We guide the candidates too aboutthe best opportunities in the marketplace, and constantly advise them in their careerprogression.

Services

1. IT and Non- IT job consultancy

2. Education consultants

3. Computer sales and service

4. Digital signature product

Prahgathi consultancy Services Consulting brings valuable experience to benchmark,revise, implement and preach the best practices of recruiting to our clients. We willconduct business and HR process reviews to assess what works and what doesn't withinthe client's unique corporate environment.

Prahgathi consultancy Services Consulting will implement methods to decrease thejoining time, reduce the cost-per-hire, and propose tailored solutions to streamline yourrecruitment process. Our services give you the opportunity to focus your expertise whereit counts - on your unique business endeavors. Our goal is to ensure that our clientssucceed in meeting their hiring goals with cost-effectiveness in mind.



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Our recruitment performance consulting services are designed to help take your companyto the next level of recruitment capability. Our recruitment consultants are all senior levelrecruiters with years of IT and software experience in recruiting, screening, and hiringtechniques that produce lasting results in IT sector.

Adopt a "Do what it takes to get the job done attitude.

Priority ONE Consulting will work with you assess your company's current recruitingprocesses and identify methods to decrease cost per hire, time to fill rates, and enhancethe screening process to hire people whose skills and talents align with our clientstechnical and corporate culture goals. We would be helping you to improve both yourperformance efficiency and effectiveness.

Clients

Skilled, experienced, high-quality professionals are always at a premium and thecompetition to acquire such individuals will always be fierce, especially in these boomingtimes. At Prahgathi consultancy Services , we believe that by fostering a positive,professional and attractive culture, we are able to attract these candidates on behalf of ourclients.

Relationships are at the core of our business. To successfully match candidates to clients,we believe we have to look at more than a resume.

We prefer for our consultants to meet with clients at their offices. This allows us to gainan insight into a client's working culture, as well as taking a detailed brief about theircompany and the position they wish to fill.

Our candidates are our product and we want our product to be the best. We attractprospective applicants through advertising, and intensive searching and selection throughjob portals, and our in-house databases, and will invite only those we judge to be ofsuitable quality to interact with one of our consultants for private interviews. At thispoint, our consultants will add a comprehensive report to the candidate's application.

We use self-developed enterprise recruitment software, enabling us to conduct acomprehensive search of our candidate database for the criteria specified by our clients.We also have the latest skills testing software to validate the candidate's proficiency andexperience on all the major software technologies. We can assist in managerial aptitudeand psychometric tests too.



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Only candidates who complete our rigorous selection process will be entered into ourrecords and considered for a specific role or other appropriate appointments. We don'tadd everyone we meet to our books.

For additional information, prior to interviews, clients are provided with our consultant'sinitial interview reports. Interviews usually take place at the client's offices, but ifrequired, we are happy for our clients to make use of our offices.

Key Clients:

Skilled, experienced, high-quality professionals are always at a premium and the

competition to acquire such individuals will always be fierce, especially in these boomingtimes. At Pragathi, we believe that by fostering a positive, professional and attractiveculture, we are able to attract these candidates on behalf of our clients.

Relationships are at the core of our business. To successfully match candidates to clients,we believe we have to look at more than a resume.

We prefer for our consultants to meet with clients at their offices. This allows us to gainan insight into a client's working culture, as well as taking a detailed brief about theircompany and the position they wish to fill.

Our candidates are our product and we want our product to be the best. We attractprospective applicants through advertising, and intensive searching and selection through

job portals, and our in-house databases, and will invite only those we judge to be ofsuitable quality to interact with one of our consultants for private interviews. At thispoint, our consultants will add a comprehensive report to the candidate's application.

We use self developed enterprise recruitment software, enabling us to conduct acomprehensive search of our candidate database for the criteria specified by our clients.We also have the latest skills testing software to validate the candidate's proficiency andexperience on all the major software technologies. We can assist in managerial aptitudeand psychometric tests too.

Only candidates who complete our rigorous selection process will be entered into ourrecords and considered for a specific role or other appropriate appointments. We don't

add everyone we meet to our books.

For additional information, prior to interviews, clients are provided with our consultant'sinitial interview reports. Interviews usually take place at the client's offices, but ifrequired, we are happy for our clients to make use of our offices.



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HR Team:

PCS also had on Excellent HR and Development team of 50+ man power Strength acrossthe world.

About HR Team:

Well Trained Staff of Four Professionals, and 2 of Business unit HR Professional, andanother Two for Training and HR operations.

Number of Departments in PCS

1. Technical Department

2. Administration

3. Human Resource

4. Finance& Accounts

5. Quality Department

6. Sale & Marketing



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Organization Chart of PCS


BusinessoneTesting

Dot net

CEO

Java

Quality deptQuality

FinanceTechnicalTecTTTechnical

HR & Admin


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HR Organization Chart


Recruitment2Recruitment1

Assi.Mgr-Documentation

DocumentsDocuments

1 Staffing 1

Corporate Manager- HR

Assi.MgrContract Staffing

Staffin 2

Assi Mgr-Recruitment


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Organization Chart of Technical Team

Registered Corporate office


Support 1

Intigrated QC

Java Team Dot net Team Testing Team TSR Group

Support 3Support 2

VP- O erations

Support 4


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Pragathi Consultancy Services,

#331,1st floor, 8th Cross

Aavalahalli Extn, BDA LayoutGirinagar

Bangalore - 560085.

INDIA

Grade Structure



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The PCS Grade structure is subject to change depending on the changes in thepolicy



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Grade Technical Group Support Group *

A Trainee Trainee/ManagementTrainee

B Engineer/Developer/Designer/Analyst/Writers/Editors.. Executive/SystemAdministrator/Associate

C Sr. Engineer/Developer/Designer/Analyst/Writers/Editors Sr. Executive/Administrator/Associate

D Team Leader - TL/PL

E Asst. Manager Asst. Manager

F Technical Manager/Technical Architect Manager/BranchManager/RegionalManager

G Sr. Technical Manager/Chief Architect Sr. Manager/NationalSales Manager

H Vice President Operations

I Managing Director

*Support: Accounts, HR, System Admin, Quality, Tech Support, Marketing

Experience Level :



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A 0-1

B >1- 3

C >3-5

D >5-7

E >7-10

F > 10 yrs, based on the expertise and managerialcapabilities, technical competencies..

G

H



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Research and Methodology

Statement of Problem:



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disclosed by the personnel department. In act, employments are one of the foremost

functions of the human resource development.

Therefore, it is necessary to know about the employment function i.e.,

recruitment, selection, interviews, placing and orientation of personnels. HR is the major

inputs for any organization to achieve its objectives. Therefore its important for any

organization to spend time and money till the right personnel are found.

Field of study:

This project work was carried out at (Pragathi Consulting Services ) PCS., Bangalore.

Research samples:

IT industry plays a very important role in the economy. The sample was therefore

chosen as it portrays the needs of the researchers.

Research provides an insight into any study top basically evaluate and judge the data or

to find the solution to any given problem a simple is representative of a group or

population that identifies itself as part of it. The sample chosen for this report is M /S

Pragathi Consultancy Services , Bangalore.

Objectives of the study:

Background Verification & analysis are one of major HRM function that helps manager

to keep the skilled members in the organization.

Data Collection:

The data collected contains primary data and secondary data. The primary data

has been collected mainly by interviewing and also observation and audit. Secondary data

has been obtained from published journals, company broachers, books, internet, etc.



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Limitations of the Study:

1. As the project is prepared for academic purpose only, it suffers from the

limitations of time and money, due to which analytical study into all the strategies

adopted by the organization was not possible.

2. The study was completed with in short span of time that was available.

3. The report also suffers from the limitations of exhaustiveness as far as the

information is concerned.

4. All this study is limited to Pragathi Consultancy Services, Bangalore only.



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Data Analysis



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1) Number of Respondent according to Gender.

Gender No. Of Respondents Percentage

Male 48 64%

Female 12 16%

Contract Employees 15 20%

Total 75 100%

0

10

20

30

40

50

60

70

80

Male Female Contract

Emplyees

Total

No. Of Respondents

Percentage

Feed Back:

The above Chart shows that 64% of Respondents is male and Female are 16% &remaining20% respondents are others.



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2) Are YOU Satisfied with Management Policies?

Management Policies No of Respondents Percentage

Yes 62 82%

No 8 10%

Not Replied 5 8%

Total 75 100%

Management Policies

0

10

20

30

40

50

60

70

80

Yes No Not

Replied

Total

No of Respondents

Percentage

Feed Back:

The above chart shows that 82 % respondents are satisfied with the managementpolicies.& Not Satisfied are 8 %.



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5.Type of Background Check Offered?

Checks No .of Respondents Percentage

National Checks 48 64%

International Checks 15 20%

Both 12 16%

Total 75 100%

Total Checks Graph

0

10

20

30

4050

60

70

80

NationalChe

cks

InternationalChecks

Both

Total

No .of

Respondents

Percentage

Feed Back:

The above chart shows that 64% of respondents prefer National check & 20%International Checks type , Both preferred for 20%.



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6)Does an Organization give importance to Background Checks?

BG Checks No. of Respondents Percentage

Yes 52 69%

No 10 13%

Not Replied 13 17%

Total 75 100%

Importance of Background Check

0

10

20

30

40

50

60

70

80

Yes No Not

Replied

Total

No. of

Respondents

Percentage

Feed Back

The above chart shows 69% of respondents feel the organizational is interested inBackground check formalities, No for 13% and 17% are not replied.



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7.Do you feel that your organization is well prepared to meet todays challenges?

Challenges No. of Respondents Percentage

Yes 68 90%

No 5 6%

Not Replied 2 2%

Total 75 100%

Challenges

0

10

20

30

40

50

6070

80

Yes No Not

Replied

Total

No. of

Respondents

Percentage

Feed Back



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The above chart shows all the 90% respondents agree that their organization is wellprepared to meet todays challenges, 6% are no response.

8. Do you have faith in Background check agency?

General opinion No. Of respondents Percentage

Yes 49 65%

No 11 14%

Not Replied 15 20%Total 75 100%

Faith in Background Check

0

10

20

30

40

50

60

7080

Yes No Not

Replied

Total

No. Of

respondents

Percentage

Feed Back



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Feed Back

The above chart shows the 67% of respondents have prefer External Agency..

10.Are you happy with the Background Check process?

BG Checks No. of Respondents PercentageYes 52 69%

No 10 13%

Not Replied 13 17%

Total 75 100%

020

40

60

80

Yes No

NotR

eplied

Total

No. of

Respondents

Percentage

Feed Back:

Around 69% of the people are happy with the B.G Check process, Not Satisfied are13%, and Not Replied are 17%.



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020406080

100120

Yes No

NotR

eplied

Total

No. of

Respondents

Percentage

Feed Back

87% of Respondents were happy with PCS commitment & Response.

15.How do you come to know about openings in PCS?


Friends 5 6.7

Internet 23 30.7News Papers 40 53.3

Others 7 9.3

Total 75 100



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0

50

100

150

200

Yes No

NotR

eplied

Total

Percentage

No. of

Respondents

Feed Back

77% of Respondents here happy to refer PCS to their Friends& Not Replied is 12%.

17. Did you have the right Designations?

BG Checks No. of Respondents PercentageYes 34 45.3

No 27 36

Not Replied 14 18.7

Total 75 100



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0

50

100

150

200

Yes No

NotR

eplied

Total

Percentage

No. of

Respondents

Feed Back

Around 45% of the employees are happy with their Designations, and 36% of theemployees are not happy ,19% of the employees not responded.

18.What should be the companys main source of BG Check?


Employment Bureau 4 5.3

Direct Verification 17 22.7

Third Party Verification 39 52

Placement agency 13 17.3



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0

50

100

150

200

Yes No Total

Percentage

No. ofRespondents

Feed Back:

Around 86.7% percent of the peoples was not knowing the fact, only 13% are knowing it.

21.Did you Informed details during BG Check?


Yes 6 8

No 69 92

Total 75 100



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0

20

40

60

80

100

120

Yes No Total

No. ofRespondents

Percentage

Feed Back

Around 92% says no the question, but only 8% are responded yes.

22.How do you think about BG Check and selection procedure in your company?BG Checks No. of Respondents Percentage

Satisfactory 72 96

Unsatisfactory 3 4

Total 75 100



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0

50

100

150

200

Satisfactory

Unsatisfacto

ryTotal

Percentage

No. of

Respondents

Feed Back

The Overall percentage is 96 say satisfactory, and 4% are says not satisfactory.



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Findings from the study

The data collected and analyzed and general observation has proven that Pragathi