recruitment and selection project - ats pvt ltd
TRANSCRIPT
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A PROJECT REPORT ON
ROLE OF RECRUITMENT AND SELECTION IN HRM
AT
ADITYA TRADING SOLUTIONS PVT LTD
Project Report sub!tte" !#
P$rt!$% &u%&!%%e#t &or t'e $($r" o&
MASTER OF )USINESS ADMINISTRATION
Sub!tte" )*
SULTANA
Ro%% No+
OSMANIA UNIVERSITY
,-.-/,-.,
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DECLARATION
I hereby declare that the Project Report titled 0Ro%e o& Recru!te#t $#" Se%ect!o# !# HRM $t
ATS P1t Lt" 2 submitted by me to the Department of Osmania University is a bonafide work
undertaken by me and it is not submitted to any other University or Institution for the award of
any degree diplomacertificate or published any time before!
3SULTANA4
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AC5NO6LEDEMENTS
I am grateful to #r! #d $asee Uddin% &R #anager of '() Pvt *td for granting permission to
do my project work in their esteemed organi+ation and I thank #r! #d! Ismail ,Recruitment
#anager- for giving me permission and necessary information in the department!
I thank my family and friends for being a source of inspiration and support! *ast but not the
least I am thankful to my respondents for giving me the necessary information!
I would like to thank .ollege guide for his co/operation in completing my project work!
,)U*('0'-
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. INTRODUCTION+
&uman resource management ,&R#-% also called personnel management% consists of all the
activities undertaken by an enterprise to ensure the effective utili+ation of employees toward
the attainment of individual% group% and organi+ational goals! 'n organi+ation3s &R# function
focuses on the people side of management! It consists of practices that help the organi+ation to
deal effectively with its people during the various phases of the employment cycle% including
pre/hire% staffing% and post/hire! (he pre/hire phase involves planning practices! (he
organi+ation must decide what types of job openings will e4ist in the upcoming period and
determine the necessary 5ualifications for performing these jobs! During the hire phase% the
organi+ation selects its employees! )election practices include recruiting applicants% assessing
their 5ualifications% and ultimately selecting those who are deemed to be the most 5ualified!
In the post/hire phase% the organi+ation develops &R# practices for effectively managing
people once they have 6come through the door!6 (hese practices are designed to ma4imi+e the
performance and satisfaction levels of employees by providing them with the necessary
knowledge and skills to perform their jobs and by creating conditions that will energi+e% direct%
and facilitate employees3 efforts toward meeting the organi+ation3s objectives! Once the
re5uired numbers of human resources are determined% the management has to find the places
where re5uired human resources are ,will- be available and also find the means of attracting
them towards the organi+ation before selecting suitable candidates for jobs! 'll this process is
generally known as recruitment! )ome people use the term 7Recruitment8 for employment!
Personnel selection and assessment activities are integral parts of organi+ational life! Decisions
about hiring and classifying applicants are based on e4pectations or predictions about their
future work behaviors! (his article e4amines different methods of assessment and selection
commonly used by organi+ations today9 the interview% psychological tests% assessment centre
and bio/data!
:hile most firms have a human resources or personnel department that develops and
implements &R# practices% responsibility lies with both &R professionals and line managers!
(he interplay between managers and &R professionals leads to effective &R# practices! ;or
e4ample% consider performance appraisals! (he success of a firm3s performance appraisal
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necessary input for developing effective practices! #anagers carry out many procedures and
methods devised by &R professionals! ;or instance% line managers=
• Interview job applicants
• Provide orientation% coaching% and on/the/job training
• Provide and communicate job performance ratings
• Recommend salary increases
• .arry out disciplinary procedures
• Investigate accidents
• )ettle grievance issues
(he development of &R# procedures and methods often re5uires input from line managers!
;or e4ample% when conducting a job analysis% &R professionals often seek job information
from managers and ask managers to review the final written product! 'dditionally% when &R
professionals determine an organi+ation3s training needs% managers often suggest what types of
training are needed and who% in particular% needs the training!
NEED AND IMPORTANCE OF THE STUDY
Pre/H!re P'$se
(he major &R# activities in the pre/hire phase are human resource planning and job analysis!
(hese activities form the cornerstone upon which other &R# practices are built! &uman
resource planning helps managers to anticipate and meet changing needs related to the
ac5uisition% deployment% and utili+ation of employees! (he organi+ation first maps out an
overall plan called a strategic plan! (hen% through demand and supply forecasting it estimates
the number and types of employees needed to successfully carry out its overall plan! )uch
information enables a firm to plan its recruitment% selection% and training strategies! ;ore4ample% assume that a firm3s &R plan estimates that 1< additional engineers will be needed
during the ne4t year! (he firm typically hires recent engineering graduates to fill such
positions! ?ecause these majors are in high demand% the firm decides to begin its campus
recruiting early in the academic year% before other companies can 6snatch away6 the best
candidates!
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Aob analysis is the systematic process used for gathering% analy+ing% and documenting
information about particular jobs! (he analysis specifies what each worker does% the work
conditions% and the worker 5ualifications necessary to perform the job successfully! (he job
analysis information is used to plan and coordinate nearly all &R# practices% including=
• Determining job 5ualifications for recruitment purposes
• .hoosing the most appropriate selection techni5ues
• Developing training programs
• Developing performance appraisal rating forms
• &elping to determine pay rates
• )etting performance standards for productivity improvement programs
;or e4ample% an organi+ation may decide to use a mechanical aptitude test to screen applicants
because a job analysis indicated that mechanical aptitude is an important job skill! Or% a firm
may raise the pay of one of its employees because a job analysis indicated that the nature of the
work recently changed and is now more demanding!
H!r!#7 P'$se
(he hiring phase of human resource management is also called staffing! )taffing involves
policies and procedures used by organi+ations to recruit and select employees! Organi+ations
use recruitment to locate and attract job applicants for particular positions! (hey may recruit
candidates internally ,i!e!% recruit current employees seeking to advance or change jobs- or
e4ternally! (he aim of recruitment practices is to identify a suitable pool of applicants 5uickly%
cost/efficiently% and legally! )election involves assessing and choosing among job candidates!
(o be effective% selection processes must be both legal and technically sound% accurately
matching people3s skills with available positions!
Post/H!r!#7 P'$se
(raining and development are planned learning e4periences that teach workers how to
effectively perform their current or future jobs! (raining focuses on present jobs% while
development prepares employees for possible future jobs! (raining and development practices
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are designed to improve organi+ational performance by enhancing the knowledge and skill
levels of employees! ' firm must first determine its training needs and then selectdevelop
training programs to meet these needs! It also must also take steps to ensure that workers apply
what they have learned on the job! (hrough the performance appraisal process% organi+ations
measure the ade5uacy of their employees3 job performances and communicate these
evaluations to them! One aim of appraisal systems is to motivate employees to continue
appropriate behaviors and correct inappropriate ones! #anagement also may use performance
appraisals as tools for making &R#/related decisions% such as promotions% demotions%
discharges% and pay raises!
.ompensation entails pay and benefits! Pay refers to the wage or salary employees earn% while
benefits are a form of compensation provided to employees in addition to their pay% such ashealth insurance or employee discounts! (he aim of compensation practices is to help the
organi+ation establish and maintain a competent and loyal workforce at an affordable cost!
Productivity improvement programs tie job behavior to rewards! Rewards may be financial
,e!g!% bonuses and pay raises- or nonfinancial ,e!g!% improved job satisfaction-! )uch programs
are used to motivate employees to engage in appropriate job behaviors% namely those that help
the organi+ation meet its goals!
O)JECTIVES OF THE STUDY
1! (o find out the recruitment policy of '() Pvt *td!
"! (o find out the recruiting procedure in '() Pvt *td!
! (o find out how '() Pvt *td takes interview and short listed!
2! (o find out what is the selection criteria of '() Pvt *td!
<! (his survey aims at suggesting the management to recruit and selection of Cmployees!
>! (o ascertain whether the selection procedures adopted by '() Pvt *td helps in recruit
the best suitable candidates!
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SCOPE OF THE STUDY
1- (he study is focused on Recruitment and )election at '() Pvt *td! (he study covers
workers% nonEmanagement and management staff of '() Pvt *td!
"- &ow effective Recruitment and )election at '() Pvt *td!
RESEARCH METHODOLOGY
SOURCES OF DATA+
Pr!$r* Source+
(he primary source of data is data collected from the employees of '() Pvt *td!
Seco#"$r* Sources+
(he secondary data was collected form the .ompany profile% &R manuals and Internet!
D$t$ A#$%*s!s+
(he data is analy+ed using the statistical techni5ues! In this Project ?ar Diagrams and pie
charts have been used to analy+e the out comes of the Project study!
S$p%e S!8e+
'bout 2F employees of the company at randomly were taken for the study ,survey-!
D$t$ Co%%ect!o#+
(he data collected with the help of a well frame Guestionnaire% as the aim of the study is to
elicit as much information as possible from the interviewer!
LIMITATIONS
.9 Due to lack of time all employees were not involved!
,9 (he accuracy of the information is not guaranteed as the information is given by the
interviewer dependent largely on their moods and time of interviewing!
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ADITYA TRADING SOLUTIONS PVT LTD AT A GLANCE
'() Pvt *td is an I( management consulting firm whose mission is to help leading
corporations create and sustain competitive advantage! 's a truly international firm% our
strong global presence offers clients and employees a wealth of cross/cultural e4perience! '()
Pvt *td is a global management consulting% technology services and outsourcing company!
.ommitted to delivering innovation% '() Pvt *td collaborates with its clients to help them
become high/performance businesses and governments! :ith deep industry and business
process e4pertise% broad global resources and a proven track record% '() Pvt *td can mobili+e
the right people% skills% and technologies to help clients improve their performance
6'$t "o t'e ost success&u% or7$#!8$t!o#s :#o( $bout outsourc!#7/$#" ('o !s 'e%p!#7
t'e &!#" t'e $#s(ers;
Outsourcing is more than a cost/saving mechanism! )mart decision/makers know that
outsourcing is an indispensable business tool to not only reduce cost% but to drive business
value into their enterprises!
:hen you choose '() Pvt *td to help you with your outsourcing needs% you get more than a
provider! Hou get a partner who will help your company achieve high performance!
Our outsourcing services focus on your distinctive capabilities! Hou3ll gain access to best/in/
class skills and capabilities to lower your operating costs and improve your bottom line!
.ombined with our application outsourcing and infrastructure outsourcing business% '() Pvt
*td has the broadest outsourcing services offering in the market% unmatched in scope% scale and
depth!
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'() Pvt *td provides advanced information technology solutions and consulting services to a
host of corporate clients in the ?;)I% *ife )ciences% &ealthcare% (elecom% #anufacturing%
(echnology% Retail% and various federal% state and local government agencies% across crucial
markets service!
'() Pvt *td offerings encompass 'pplication)ystems Development as well as #anagement
Outsourcing% ?usiness Intelligence Data :arehousing% Infrastructure #anagement and
ProductionOperations )upport% CRP .R# services% Cnterprise 'pplication Integration%
Guality 'ssurance )ervices and :eb 'pplications!
'n employee/centric company with a clientele that ranges from smallmidsi+e enterprises to
;ortune 1FFF companies% '() Pvt *td has helped implement some of the most scalable and
comple4 projects using onsite% offsite ,near shore- offshore model! '() Pvt *td has a
demonstrated ability to integrate diverse technologies into a seamless enterprise technology
delivery platform! '() Pvt *td e4cellent project e4ecution capabilities and 5uality metrics
focus using global delivery leads to successful e4ecution of projects at a very attractive cost
advantage for our clients!
:ith its proven record of consistently delivering on its promises '() Pvt *td uni5ue mi4 of
integrity% drive and preparedness is what helping customers reengineer and reinvent their
businesses giving the competitive edge in today8s ever/changing marketplaceJ
'() Pvt *td offers timely% reliable% high 5uality information technology consulting services!
'() Pvt *td consulting services provide support at any point in the application life cycle!
:hether the need is for a single programming resource or a team to develop the ne4t
generation of applications or the complete support and maintenance of I( operations% '() Pvt
*td consulting services can help!
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'() Pvt *td consultants have the skills and e4perience to analy+e business processes and
apprise on using I( effectively to accomplish business goals and ma4imi+e the Return on
Investments! '() Pvt *td can fill re5uirements and manage by skill competency across
multiple geographic locations!
'() Pvt *td currently has 1<FFK technology trailbla+ers and passionate professionals
speciali+ed in a range of technologies and disciplines and leveraging their industry domain
knowledge to rapidly address business re5uirements! Using a strong technical global recruiting
engine '() Pvt *td is able to provide clients with subject matter e4perts and talented5ualified
individuals with tough/to/find skills in a cost/effective manner!
'() Pvt *td consultants are highly skilled in the areas of planning% designing% development%
testing% maintenance% service provisioning% research% training% operations and administration
(o deploy the right skilled resource at the right place% '() Pvt *td has a global resource
management framework! (his framework enables '() Pvt *td to provide resources to its
clients from various resource pools spread across different geographies while ensuring timely
deployment of right resources!
'() Pvt *td Inc is a global provider of high/5uality business and technology services and is
founded by a team of professionals with more than F years of combined consulting e4perience
in the U)'% UL and India! Right from the inception% our primary objective is to add value to
our clients through operational e4cellence% stewardship and deep domain knowledge!
Outsourcing with '() Pvt *td Inc allows our clients to focus on core capabilities and unlock
their total potential to significantly improve their business performance!
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OVERVIE6+
Our focused data and knowledge process outsourcing solutions enable our clients to produce
more with less and stay focused on their core competencies! :e leverage our deep cross
industry e4perience and demonstrated business tools to successfully deliver measurable
business value and performance improvement!
Our pricing will save you up to >FM of the cost while providing other both tangible and
intangible benefits! :e sign a 0on Disclosure 'greement ,0D'- to address your data security
concerns before we start working on your projects!
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DATA MANAGEMENT SERVICES+
:e offer a full spectrum of 5uality and efficient data management solutions that provide you
with necessary insight into the volumes of data and empower you with valuable information /
so that you can take right decisions at the right time to stay ahead of the competition!
:e understand that your organi+ation3s information is among your most important assets% and
so we take appropriate care to maintain high security and confidentiality!
Our Data #anagement services help you in consolidating data in a way that is easy to manage%
retrieve% and maintain! :e offer a complete spectrum of customi+ed Data #anagement
)ervices to medium and large/scale businesses across all major industry verticals in the U)% the
UL and other Curopean countries!
DATA MANAGEMENT SERVICES INCLUDE+
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DATA ENTRY+
In some companies the need for data entry is constant while for others there may be just a
temporary re5uirement! :hatever the need may be% accurate and easily accessible data is a
necessity! :e offer comprehensive data entry solutions and shown below are some of them!
• Data Cntry from hardsoft copy to any database format
• Insurance .laims Cntry
• PD; Document Inde4ing
• Data entry from images and PD; files
• Online order entry and follow up
• .ustom data e4portimport interfaces with audits
• $arious other formats
DATA CAPTURING < CONVERSION+
Data imaging involves the conversion of an image on paper to an electronic image! Once the
hard copy is scanned% the source documents can be destroyed or archived! Processing continues
from the electronic copy! (his may involve optical character recognition ,O.R- or intelligent
character recognition ,I.R-! #any fields of data are captured in a custom application that will
be used for downstream processing such as mailings% order processing financial systems% or
further data mining! (he need for data conversion is at a peak now as there are several
processes and challenges present in any enterprise= mergers% ac5uisitions and new technology
developments! :e handle different formats
• ;rom paper document conversions to computer ready files for the Internet% Intranet and
C4tranet% .D/RO# and database
• ;rom audio tape to .D
• ;rom (I; files to paper documents
• ;rom Paper Documentsscanned images to #) :ord
• ;rom )canned paper reportsimages to C4cel
• ;rom Image to html
• ;rom (iff to PD;
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DATA CLEANSING < NORMALI=ATION+
Data cleansing can assure a valuable and accurately maintained database! :ith our strengths in
servicing a range of international clientele and successfully e4ecuting several data management
projects% we ensure a hassle free outsourcing e4perience for our customers! Our data cleaning
service covers several steps% depending on the type of data! :e begin the data cleansing
process with first understanding the current state of the data and what needs to be cleansed and
standardi+ed and apply a series of automated and manual steps to complete the normali+ation
and cleansing process! :e offer complete range of data cleansing and normali+ation services
by adopting various permutations of pattern matching rules% database 5ueries and manual
inspection
• Data normali+ation to avoid duplicate and redundant data
• Identify and remove duplicate data
• )tandardi+e inconsistent data
• )upplier rationali+ation
• $erify one/to/many and many/to/many relationships ,e!g! same vendor% multiple ta4 ids
etc-
DATA STANDARDI=ATION < ENRICHMENT+
:e provide data enrichment services% which may involve sourcing content from various
sources! 'longside web research% we do manual sourcing in order to collect all possible key
data elements to be able to generate meaningful information from the raw data!
:e undertake standardi+ation and enrichment services by using all or some of the following
techni5ues
• ;ocused Internet )earches
• #anufacturer web sites
• Industry specific web sites
• Directly contacting suppliers
• Other as re5uired
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SPEND ANALYSIS
*ack of )pend visibility is a common issue facing many businesses today! (his is typically
caused by
• *ack of aggregate spend data from multiple data sources
• Data inconsistencies and missing critical data elements
• Duplicate supplier names
• #issing parent/child relationships
• )pend data not properly categori+ed
:e provide end/to/end spend management solutions by addressing all the above mentioned
spend visibility issues so that our clients can achieve their cost reduction and cost containment
objectives!
OPERATIONS E>CELLENCE+
Our primary objective is to add value to our clients through operational e4cellence%
stewardship and deep domain knowledge! 't '() Pvt *td Inc% our clients come first E Our
corner stones are built around providing long/lasting and measurable value to our clients and
e4ceed their e4pectations!
:e work closely with our client project teams to define Ley Performance Indicators ,LPIs-
and well structured )ervice *evel 'greements ,)*'s- early on in the process! :e believe that
the most successful outsourcing relationships involve the outsourcing provider and the client
participating in continuous process improvements!
6E AL6AYS TA5E A PHASED APPROACH FOR MOST OF THE PROJECTS 6E
UNDERTA5E+• Understand the objectives of off shoring and e4pected benefits E:hyJ
• Understand the current processes carried in these projects E &owJ
• Cstablish a dedicated offshore team suitable for the project
• Identify the appropriate training program for the offshore team
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• .arry out pilot project,s- in a controlled environment
• ;ine/tune the processes as necessary
• #ove in to a production environment
•.ontinue sly monitor performance against )*'
• On/going process improvement
6OR5ING 6ITH ADITYA TRADING SOLUTIONS PVT LTD+
:e at '() Pvt *td Inc believe that our People are our greatest asset! One of our key
differentiators is our energetic% committed and dedicated People! Our ability to provide world/
class service to our clients is only possible if we have a world/class team! :e thrive to provide
you with lot of freedom and fle4ibility and would like to harness an open work environment
where the ideas can be e4changed freely and provide innovative solutions to our clients! :e
know that our employees8 success is our success!
6E CONSTANTLY ARE LOO5ING FOR INDIVIDUALS 6ITH THE FOLLO6ING
?UALITIES+
• 'daptable
• 'ttention to detail
• .omfortable in a team setting
• Desire to learn and continuously improve
• Positive attitude and accountable
• Proactive and willingness to take initiative
• (ake ownership and pride in their work
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STUDY IN ADITYA TRADING SOLUTIONS PVT LTD
(he success of any organi+ation depends on how effectively human resources are managed and
utili+ed! In today8s highly comple4 and competitive situations% the choice of right personnel has
far reaching implications for the enterprise! Due to rapid technological changes e4alting labors
costs and shifting job re5uirements! Recruitment and selection is only a matter of satisfying a
company8s needs but also the shape of the company8s future! '() Pvt *td has a policy and
planning for the recruitment and selection in their organi+ation! (hey have allocated a special
budget for the process of recruitment and selection! (he recruitment of the personnel
determined through manpower forecast and the need due to labor turnover!
T'e scree#!#7s $t ATS P1t Lt" $re "o#e !# t'ree st$7es+
1! Preliminary interview!
"! :ritten test!
! #ain interviewfinal interview!
't every stage the aspirants are short listed before they go to the ne4t stage! )ometimes% based
upon the importance a job holds% personnel% stress and depth interviews are also conducted!
'() Pvt *td advertises of its vacancies in leading newspapers and also employment
newspapers! :hile screening the applications priority will be given to skills and knowledge%
then to 5ualifications and their work e4perience of the applicants! '() Pvt *td takes one to two
months time to screen the recruiters thoroughly and then placements are done! Placements are
followed by probationary and review periods! '() Pvt *td also has good induction procedure
to make the employees get accustomed to their work very soon! (he interview method that is
followed in '() Pvt *td is structured!
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IT INDUSTRY IN INDIA
Information (echnology ,I(- industry in India is one of the fastest growing industries! Indian
I( industry has built up valuable brand e5uity for itself in the global markets! I( industry in
India comprises of software industry and information technology enabled services ,I(C)-%
which also includes business process outsourcing ,?PO- industry! India is considered as a
pioneer in software development and a favorite destination for I(/enabled services!
(he origin of I( industry in India can be traced to 1@2% when the mainframe manufacturer%
?urroughs% asked its India sales agent% (ata .onsultancy )ervices ,(.)-% to e4port
programmers for installing system software for a U!)! client! (he I( industry originated under
unfavorable conditions! *ocal markets were absent and government policy toward private
enterprise was hostile! (he industry was begun by ?ombay/based conglomerates which entered
the business by supplying programmers to global I( firms located overseas!
During that time Indian economy was state/controlled and the state remained hostile to the
software industry through the 1@Fs! Import tariffs were high ,1<M on hardware and 1FFM on
software- and software was not considered an 6industry6% so that e4porters were ineligible for
bank finance! Novernment policy towards I( sector changed when Rajiv Nandhi became Prime
#inister in 1B2! &is 0ew .omputer Policy ,0.P/1B2- consisted of a package of reduced
import tariffs on hardware and software ,reduced to >FM-% recognition of software e4ports as a
6delicensed industry6% i!e!% henceforth eligible for bank finance and freed from license/permit
raj% permission for foreign firms to set up wholly/owned% e4port/dedicated units and a project
to set up a chain of software parks that would offer infrastructure at below/market costs! (hese
policies laid the foundation for the development of a world/class I( industry in India!
(oday% Indian I( companies such as (ata .onsultancy )ervices ,(.)-% :ipro% Infosys% &.* et
al are renowned in the global market for their I( prowess! )ome of the major factors which
played a key role in India3s emergence as key global I( player are=
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I#"!$# E"uc$t!o# S*ste
(he Indian education system places strong emphasis on mathematics and science% resulting
in a large number of science and engineering graduates! #astery over 5uantitative
concepts coupled with Cnglish proficiency has resulted in a skill set that has enabled India
to reap the benefits of the current international demand for I(!
H!7' ?u$%!t* Hu$# Resource
Indian programmers are known for their strong technical and analytical skills and their
willingness to accommodate clients! India also has one of the largest pools of Cnglish/
speaking professionals!
Copet!t!1e Costs
(he cost of software development and other services in India is very competitive as
compared to the :est!
I#&r$structure Sce#$r!o
Indian I( industry has also gained immensely from the availability of a robust
infrastructure ,telecom% power and roads- in the country!
In the last few years Indian I( industry has seen tremendous growth! Destinations such as
?angalore% &yderabad and Nurgaon have evolved into global I( hubs! )everal I( parks
have come up at ?angalore% &yderabad% .hennai% Pune% Nurgaon etc! (hese parks offer
)ilicon $alley type infrastructure! In the light of all the factors that have added to the
strength of Indian I( industry% it seems that Indian success story is all set to continue!
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Information (echnology is one of the most important industries in the Indian economy! (he I(
industry of India has registered huge growth in recent years! India3s I( industry grew from
1<F million U) Dollars in 1F/11 to a whopping <F billion UD Dollars in "FF>/"FF@!
In the last ten years the Information (echnology industry in India has grown at an average
annual rate of FM!
(he liberali+ation of the Indian economy in the early nineties has played a major role in the
growth of the I( industry of India! Deregulation policies adopted by the Novernment of India
have led to substantial domestic investment and inflow of foreign capital to this industry! In
1@F% high import duties had forced I?# to leave India! &owever% after the early nineties%
many multi national I( companies% including I?#% have set up their operations in India!
During the ten year period 1"/"FF"% the Indian software industry grew at double the rate as
the U) software industry!
Soe o& t'e $jor re$so#s &or t'e s!7#!&!c$#t 7ro(t' o& t'e IT !#"ustr* o& I#"!$ $re /
• 'bundant availability of skilled manpower
• Reduced telecommunication and internet costs
• Reduced import duties on software and hardware products
• .ost advantages
• Cncouraging government policies
Soe o& t'e $jor cop$#!es !# t'e IT !#"ustr* o& I#"!$ $re /
• (ata .onsultancy )ervices ,(.)-
• Infosys
• :ipro
• I?#
• &P
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• &.*
• .ogni+ant (echnology )olutions ,.()-
• Patni
• )atyam
• 0II(
India3s I( industry caters to both domestic and e4port markets! C4ports contribute around
@<M of the total revenue of the I( industry in India! (he I( industry can be broadly divided
into four segments /
• I( services
• )oftware ,includes both engineering and Research and Development-
• I(C)/?PO
• &ardware
GRO6TH OF INDIAN INFORMATION TECHNOLOGY SECTOR
Poised to become a U) ""< billion industry by "F"F% the Indian information technology ,I(-
industry has played a key role in putting India on the global map! (he I(/?PO sector has
become one of the most significant growth catalysts for the Indian economy! In addition to
fuelling India8s economy% this industry is also positively influencing the lives of its people
through an active direct and indirect contribution to various socio/economic parameters such as
employment% standard of living and diversity! (he industry has played a significant role in
transforming India8s image from a slow moving bureaucratic economy to a land of innovativeentrepreneurs and a global player in providing world class technology solutions and business
services% according to 0ational 'ssociation of )oftware and )ervice .ompanies ,0')).O#-!
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(he sector is estimated to have grown by 1 per cent in the ;H"F11% clocking revenue of
almost U) @> billion! India8s outsourcing industry has witnessed a rebound and registered
better than e4pected growth according to 0')).O#!
(he e4port revenues are estimated to have aggregated to U) < billion in ;H"F11 and
contributed "> per cent as its share in total Indian e4ports ,merchandise plus services-%
according to a research report 7I(/?PO )ector in India= )trategic Review "F118% published by
0')).O#! (he workforce in Indian I( industry will touch F million by "F"F and this
sunrise industry is e4pected to continue its mammoth growth% e4pect various industry e4perts!
;urthermore% 0')).O# said that the domestic I(/?PO revenues e4cluding hardware are
e4pected to have grown at almost 1> per cent to reach U) 1@!< billion in ;H"F11! )trong
economic growth% rapid advancement in technology infrastructure% increasingly competitive
Indian organisations% enhanced focus by the government and emergence of business models
that help provide I( to new customer segments are the key drivers for increased technology
adoption in India!
(he data centre services market in the country is forecast to grow at a compound annual
growth rate ,.'NR- of ""!@ per cent between "FF and "F11% to touch close to U) "!" billion
by the end of "F11% according to research firm ID. India3s report! (he ID. India report statedthat the overall India data centre services market in "FF was estimated at U) 1! billion!
India will see its number of internet users triple to "@ million by "F1<% from B1 million
registered in )eptember "F1F% according to a report titled 3Internet3s 0ew bn3% by the ?oston
.onsulting Nroup ,?.N-! ?.N said Internet penetration rate in India is e4pected to reach 1
per cent by "F1<% up from the current seven per cent!
(elecom Regulatory 'uthority of India ,(R'I- is targeting a 1F/fold increase in broadband
subscribers to 1FF million by "F12! (he country has 1F!" million subscribers now! 6:e will
have 1FF million broadband subscribers by "F12%6 A!)! )arma% .hairman% (R'I said at the fifth
India Digital )ummit "F1F organised by the Internet and #obile 'ssociation of India!
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(he penetration of the internet in rural areas will see an all time high in "F11! In a survey
conducted by I#R? for the Internet and #obile 'ssociation of India ,I'#'I-% the total
number of active internet users in rural area will rise by B per cent to touch "2 million by the
end of "F11 from 1"!1 million in December "F1F! (he survey said that the claimed internet
user category is also set to grow by > per cent to reach "! million by December "F11 from
1<!" million in December "F1F! ,'ctive users are those% who have used the internet at least
once in the past one month! .laimed internet users are those% who have used the internet
sometime but not necessarily in the past one month!-
T'e Gro(t' Stor*
India is a preferred destination for companies looking to offshore their I( and back/office
functions! It also retains its low/cost advantage and is a financially attractive location when
viewed in combination with the business environment it offers and the availability of skilled
people!
(he country8s domestic market for business process outsourcing ,?PO- is projected to grow
over " per cent to touch U) 1!2 billion in "F11% says global research group Nartner! In "F1F%
the domestic ?PO market was worth U) 1!1 billion! (he firm predicts that the domestic ?PO
market would reach U) 1!> billion in "F1" and increase to U) "!2@ billion by "F12!
:ith the first 5uarter of the new fiscal "F11/1" offering positive business outlook% hiring
sentiments for sectors like I(% I(e) and telecom have risen by over "F per cent% says a study by
(eam*ease )ervices Pvt! *td! 's per the Cmployment Outlook Report for the period 'pril/
Aune "F11% released by (eam*ease )ervices Pvt! *td!% hiring intent from I( and I(e) was the
highest in cities like 0ew Delhi% #umbai% &yderabad and Pune!
India3s top technology firms like (.)% Infosys% :ipro and &.* are readying plans to gain a
bigger share of their largest market% U)% by aggressively chasing contracts being served by
multinational rivals! 'nalysts e4pect the top I( firms to grow between "/"@ per cent in the
;H"F1" on the back of more number of discretionary projects% improved pricing% and robust
business volumes!
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I#1este#ts
?etween 'pril "FFF and ;ebruary "F11% the computer software and hardware sector received
cumulative foreign direct investment ,;DI- of U) 1F%@F< million% according to the
Department of Industrial Policy and Promotion!
(he total investments of C#. .orporation% a leading global player of information
infrastructure solutions in India% will touch U) " billion ,over U) "!F1 billion- by "F12!
Russian I( security software provider% Laspersky *ab% will be investing U) " million in its
India operations at &yderabad during "F11!
On the back of 2F per cent revenue growth% .ogni+ant will invest more than U) <FF milliontill "F12 to e4pand its campuses to add over B million s5uare feet to house over <<%FFF
employees! It will create additional software development and training facilities in regions
designated as special economic +ones in .hennai% Pune% .oimbatore and Lolkata!
In order to integrate the learning e4perience for the students% Nlobsyn ?usiness )chool% would
launch an online platform% e/Nlobsyn% by Auly "F11 that would work as a virtual classroom
environment for its students% as well as facilitate them with other amenities!
.hennai/based Polaris )oftware *ab has announced that it is buying an B< per cent stake in
)an ;rancisco/based digital identity authentication services provider Iden/(rust for U) "F
million! (he ac5uisition will mark Polaris3 entry into the cloud computing space for financial
technology solutions% the company said in a filing to the ?ombay )tock C4change!
Go1er#e#t I#!t!$t!1es
Novernment sector is a key catalyst for increased I( adoption/ through sectors reforms thatencourage I( acceptance% 0ational eNovernanceProgrammes ,0eNP- % and the Uni5ue
Identification Development 'uthority of India ,UID'I- programme that creates large scale I(
infrastructure and promotes corporate participation!
.ertain crucial steps taken by the Indian government to propel the sector growth are=
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• .onstitution of the (echnical 'dvisory Nroup for Uni5ue Projects ,('NUP- under the
chairmanship of 0andan0ilekani! (he Nroup would develop I( infrastructure in five
key areas% which includes the 0ew Pension )ystem ,0P)- and the Noods and )ervices
(a4 ,N)(-
• )etting up the 0ational (askforce on Information (echnology and )oftware
Development with the objective of framing a long term 0ational I( Policy for the
country!
• Cnactment of the Information (echnology 'ct% which provides a legal framework to
facilitate electronic commerce and electronic transactions!
• )etting up of )oftware (echnology Parks of India ,)(PIs- in 11 for the promotion of
software e4ports from the country!(here are currently <1 )(PI centres where apart from
e4emption from customs duty available for capital goods% there are also e4emptions
from service ta4% e4cise duty% and rebate for payment of .entral )ales (a4!
• Plans to formulate Information (echnology Investment Regions ,I(IRs-! (hese regions
would be endowed with e4cellent infrastructure and would reap the benefits of co/
siting% networking and greater efficiency through use of common infrastructure and
support services!
Ro$" A'e$"
(he Indian information technology sector continues to be one of the sunshine sectors of the
Indian economy showing rapid growth and promise!
'ccording to a report prepared by #cLinsey for 0')).O# called 3Perspective "F"F=
(ransform ?usiness% (ransform India3% the e4ports component of the Indian industry is
e4pected to reach U) 1@< billion in revenue by "F"F! (he domestic component will
contribute U) <F billion in revenue by "F"F! (ogether% the e4port and domestic markets are
likely to bring in U) ""< billion in revenue% as new opportunities emerge in areas such as
public sector and healthcare and as geographies including ?ra+il% Russia% .hina and Aapan opt
for greater outsourcing!
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@9 LITERATURE REVIE6
HUMAN RESOURCE MANAGEMENT
If an organi+ation is to achieve its goals% it must not only have the re5uired resources% it must
also use them effectively! (he resources available to a manager are human% financial% physical%
and informational! :hile human resources ,&R- have always been critical to the success of any
organi+ation% they have assumed an increasingly greater importance that is being recogni+ed
inside and outside work organi+ations! &uman resources departments typically include
individuals with a wide variety and range of knowledge% skills% and abilities who are e4pected
to perform job activities in a manner that contributes to the attainment of organi+ational goals!
&ow effectively employees contribute to the organi+ation depends in large part upon the
5uality of the &R program ,including staffing% training% and compensation- as well as the
ability and willingness of management//from the .CO to first/line supervisors//to create an
environment that fosters the effective use of human resources!
6'* Stu"* Hu$# Resources M$#$7ee#t 3HRM4;
'nyone who embarks on a course of speciali+ed study typically wonders about its relevance to
his or her interests and goals! (he answer to the 5uestion 6:hy study &R#J6 should become
apparent as we e4plore the importance of &R# and e4amine the contributions it can make to
an organi+ation! :hether you are working in the &R# function of your organi+ation or as a
staff professional or line manager% you will definitely need to be aware of the various roles and
responsibilities in dealing with employers in your organi+ation!
T'e Iport$#ce o& HRM
;or many decades such responsibilities as selection% training% and compensation were
considered basic functions of the area historically referred to as personnel management! (hese
functions were performed without much regard for how they related to each other! ;rom this
narrow view we have seen the emergence of what is now known as human resources
management!
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&uman resources management ,&R#-% as it is currently perceived% represents the e4tension
rather than the rejection of the traditional re5uirements for managing personnel effectively! 'n
understanding of human behavior and skill in applying that understanding are still re5uired!
'lso re5uired are knowledge and understanding of the various personnel functions performed
in managing human resources% as well as the ability to perform those functions in accordance
with organi+ational objectives! 'n awareness of e4isting economic% social% and legal constraints
upon the performance of these functions is also essential!
&R#% as it is practiced today% recogni+es the dynamic interaction of personnel functions with
each other and with the objectives of the organi+ation! #ost important% it recogni+es that &R
planning must be coordinated closely with the organi+ation8s strategic and related planning
functions! 's a result% efforts in &R# are being directed toward providing more support for the
achievement of the organi+ation8s goals% whether it be a profit% not for profit% or governmental
organi+ation!
HRM+ Curre#t C'$%%e#7es
'ccording to a survey of senior &R e4ecutives in Personnel Aournal3s top 1FF companies
,based on 1" revenues-% the most challenging &R issues are health care costs% reorgani+ing
and downsi+ing organi+ations% and mergers and ac5uisitions! (hese issues are followed by
problems in managing diverse groups of workers who have different attitudes% values% and
work behaviors9 managing for top/5uality performance ,(G#-9 team building9 and responding
to the needs of the families of employees! Other areas presenting challenges are workers8
compensation% labor relations% and management development! International companies face
increased global competition!
One may e4pect to see new issues and challenges emerging in the future that re5uire
appropriate action! Cvolving business and economic factors forge changes in the &R field
re5uiring that preparation for change be an ongoing process!
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policies relating to the &R functions% all managers and supervisors are responsible for
performing these functions in their relations with subordinates!
It is in such positions of leadership that the majority of students will be employed! &R# is
therefore oriented to help you in managing subordinates more effectively% whether you become
first/line supervisor or chief e4ecutive officer! Discussions concerning the role of the &R
department can serve to provide one with a better understanding of the functions performed by
this department! ' familiarity with the role of the &R department should help you to cooperate
more closely with the department8s staff and to utili+e more fully the assistance and services
available from this resource!
(he present status of &R# was achieved only after years of evolutionary development! Hou
need to understand the forces that have contributed to this process and to become more aware
of forces acting today that will have an effect on &R# in the future!
De1e%ope#t o& Hu$# Resources M$#$7ee#t
&R#% at least in a primitive form% has e4isted since the first attempts at group effort! .ertain
&R functions% even though informal in nature% were performed whenever people came together
for a common purpose! During the course of this past century% however% the processes of
managing people have become more formali+ed and speciali+ed% and a growing body of
knowledge has been accumulated by practitioners and scholars!
'n understanding of the events contributing to the growth of &R# can provide a perspective
for contemporary policies and practices!
&I)(ORI.'* DC$C*OP#C0( O; &R# PR'.(I.C)
YEAR EVENT1@> Carliest authenticated strike in 'merica9 Philadelphia printers seek to gain minimum
weekly wage of >!
1B2B Passage of a law in Philadelphia setting a minimum wage for workers in commercial
occupations!
1BB1 ?eginning of ;rederick :! (aylor8s work in scientific management at the #idvale
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)teel Plant in Philadelphia!
1BB Cstablishment of the U!)! .ivil )ervice .ommission!
1BB> ;ounding of the 'merican ;ederation of *abor ,';*-!
11" Passage in #assachusetts of the first minimum wage law!
11 Cstablishment of the U!)! Department of *abor!
11< ;irst course in personnel administration% offered at Dartmouth .ollege!1"F ;irst te4t in personnel administration% published by Ordway (ead and &enry .!
#etcalf!
1"2 Point method of job evaluation developed by the 0ational Clectric #anufacturers8
'ssociation and the 0ational #etal (rades 'ssociation!
1"@ &awthorne studies begun by #ayo% Roethlisberger% and Dickson!
1< Cstablishment of the .ongress of Industrial Organi+ations ,.IO- by several unions
previously affiliated with the ';*!
1< Publication of the first edition of the Dictionary of Occupational (itles!
121 ?eginning of U!)! involvement in :orld :ar II% demanding the mobili+ation ofindividuals trained in personnel management and the rapid development of
personnel programs in the military and in industry!
1<< #erger of the ';* and .IO!
1<@ ;ederal :omen8s Program established by the U!)! .ivil )ervice .ommission to
enhance the employment and advancement of women!
1@< ?eginning of a professional accreditation ,now certification- program by the
Personnel 'ccreditation Institute!
1@B Passage of the .ivil )ervice Reform 'ct% which established the Office of Personnel
#anagement ,OP#-% the #erit )ystems Protection ?oard ,#)P?-% and the ;ederal
*abor Relations 'uthority ,;*R'-!
1B" ?eginning of the erosion of the employment/at/will doctrine% with increasing
attention to 6just cause6 terminations!
1B< Increased emphasis on employee participation in organi+ational decision making to
improve productivity and competitive position!
1F &eightened awareness of privacy rights of employees as employers monitor
employee performance!
11 Increased emphasis on global &R practices9 greater use of temporary employees9
observed
1< Cmphasis on se4ual harassment9 heightened attention to greater diversity in the
workforce9 increased emphasis on total 5uality management9 and downsi+ing or
6rightsi+ing6 of organi+ations!
T'e F$ctor* S*ste
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During the nineteenth century% the development of mechanical power made possible a factory
system of production! (he concentration of workers in factories served to focus public attention
on their conditions of employment% which were often unhealthy and ha+ardous! During the late
1BBFs% laws were passed in some states to regulate hours of work for women and children% to
establish minimum wages for male labor% and to regulate working conditions that affect
employee health and safety! It was also at this time that laws were enacted to provide payments
for injuries suffered in industrial accidents! Cventually% as the result of legislation and
collective bargaining% employment conditions began to improve!
T'e M$ss Pro"uct!o# S*ste
#ass production was made possible by the availability of standardi+ed and interchangeable
parts designed to be used in assembly/line production! :ith this system came improvements in
production techni5ues and the use of labor/saving machinery and e5uipment! (he
accompanying increases in overhead costs and wage rates% however% forced companies to seek
ways of using production facilities and labor more efficiently! ;rederick :! (aylor8s work at
the #idvale )teel plant in Philadelphia stimulated the scientific management movement!
'ccording to (aylor% scientific management re5uired accurate performance standards based on
objective data gathered from time studies and other sources! (hese standards provided a basis
for rewarding the superior workers financially and for eliminating the unproductive ones!
(aylor3s approach was in sharp contrast to the then/prevailing practice of attempting to gain
more work from employees by threatening them with the loss of their jobs!
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Sc!e#t!&!c $#$7ee#t
)ubstitution of e4act scientific investigation and knowledge for individual judgment of either
the worker or the boss
T'e H$(t'or#e Stu"!es
?egun in the 1"Fs% the &awthorne studies were an effort to determine what effect hours of
work% periods of rest% and lighting might have on worker fatigue and productivity! (hese
e4periments constituted one of the first cooperative industry/university research efforts! 's the
studies progressed% however% it was discovered that the social environment could have an
e5uivalent if not greater effect on productivity than the physical environment!
.onducted at the :estern Clectric .ompany8s &awthorne :orks near .hicago% Illinois% these
studies were a pioneering endeavor to e4amine factors affecting productivity! &R specialists
generally agree that the &awthorne studies played a very important role in the development of
&R#! (he studies spurred efforts to humani+e the workplace and to find more/sensitive ways
to motivate workers! Out of the interviewing techni5ues used by the &awthorne researchers
grew the nondirective approach to counseling% which recogni+es the importance of feelings!Q
Until that time% it was generally considered inappropriate in employment situations to study
attitudes% beliefs% behaviors% and feelings!
T'e Hu$# Re%$t!o#s Mo1ee#t
(he &awthorne studies% and related industry research% helped to give rise to the human
relations movement by providing new insights into human behavior! (his movement focused
attention on individual differences among employees! It studied the influence that informal
groups can have upon employee performance and behavior! It also focused attention on the
necessity for managers to improve their communications and to be more sensitive to the needs
and feelings of their subordinates!
(his research emphasi+ed the need for a more participative and employee/centered form of
supervision! $arious principles and practices currently applied in employee involvement% work
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to employers8 lack of social responsibility% as manifested by their poor treatment of employees
in the past! 's a manager of people% wherever you work in the world% you will constantly be
dealing with a great many legal regulations affecting your actions in dealing with employees!
I#cre$se" Spec!$%!8$t!o# o& HR Fu#ct!o#s
Initially% the management of human resources was limited largely to hiring% firing% and record
keeping% functions carried out by managerial and supervisory personnel! Cventually% clerical
personnel were employed to assist in keeping records relating to hours worked and to payroll!
.omputers handle much of the general record keeping in most parts of the world!
?y the 12Fs the typical personnel department in a medium/si+ed or large firm included
individuals with specific training andor e4perience in carrying out various speciali+ed
functions! (he major functions performed in organi+ations today are shown below!
I#cre$s!#7 Ep'$s!s o# Str$te7!c M$#$7ee#t
(op management e4pects &R managers to assume a broader role in overall organi+ational
strategy! &R# is playing a vital role in creating and sustaining the competitive advantage of an
organi+ation! In order to carry out their e4panded role% many &R professionals will need to
ac5uire competencies such as these=
1! ?usiness capabilities! &R professionals will need to know the business of their
organi+ation thoroughly! (his re5uires an understanding of its financial capabilities!
"! )tate/of/the/art &R# practices! &R professionals will be the organi+ation8s behavioral
science e4perts! &R professionals should develop competencies in staffing% development%
appraisal% rewards% team building% and communication!
! #anagement of change process! &R professionals will have to be able to manage change
processesQ so that &R activities are effectively merged with the business needs of the
organi+ation!
(he ability to integrate business% &R#% and management of change is essential! ?y helping
their organi+ations build a sustained competitive advantage and by learning to manage many
activities well% &R professionals will become strategic business partners! #any of the most
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forward/looking .COs are seeking top &R managers who will report directly to them and help
them address key issues!
Pro&ess!o#$%!8$t!o# o& Hu$# Resources M$#$7ee#t
?ecause of the changes occurring in the workforce% &R managers can no longer function
simply as technical specialists who perform the various &R# functions! Instead% they must
concern themselves with the total scope of &R# and its role within the organi+ation and in
society as a whole! (herefore &R managers today should be professionals with respect to both
their 5ualifications and their performance!
One of the characteristics of a profession is the development through research and
e4perimentation of an organi+ed body of knowledge! (his knowledge is e4changed through
conferences% seminars% and workshops sponsored by professional associations! (he latest
information in the field is communicated through the literature published by the professional
associations% as well as by various nonprofit organi+ations and educational institutions! Other
characteristics of a profession include the establishment of a code of ethics and of certification
re5uirements for its members! &R# e4hibits all these characteristics!
Pro&ess!o#$% Assoc!$t!o#s $#" Cert!&!c$t!o#
(oday a number of professional organi+ations represent general% as well as speciali+ed% areas of
&R#! (he professional association with the largest membership//more than 2@%FFF//is the
)ociety for &uman Resource #anagement ,)&R#-! 'ffiliated with )&R# are more than 2FF
local chapters in major cities throughout the United )tates% many of which sponsor student
conferences% seminars% and workshops!
(he national annual meeting of the society is held in a different city each year! (he society
publishes &R #aga+ine ,formerly Personnel 'dministrator- and &R 0ews ,formerly
Resource-% as well as various books and bulletins! :hile &R #aga+ine is available to the
general public and is found in most libraries% &R 0ews is generally available only by personal
or organi+ational subscription!
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)&R# fre5uently collaborates with the U!)! ?ureau of 0ational 'ffairs ,?0'- in conducting
surveys in various areas of &R#! Other leading professional associations in the field include
the International Personnel #anagement 'ssociation% the International 'ssociation for
Personnel :omen% the 'merican #anagement 'ssociation ,'#'-% and the .onference ?oard
,.?-! '#' and .? are prominent nonprofit organi+ations that provide publications and
educational services relating to &R# and other functional areas!
Organi+ations that represent speciali+ed areas of interest include the &uman Resource Planning
)ociety% the 'merican .ompensation 'ssociation% the International ;oundation of Cmployee
?enefit Plans% the 'merican )ociety for (raining and Development% the 'ssociation for
Industrial Research% and the )ociety for Industrial and Organi+ational Psychology of the
'merican Psychological 'ssociation! ;or professors in the field% there is the Personnel and
&uman Resources Division of the 'cademy of #anagement!
'll of these organi+ations sponsor meetings and workshops that promote the professional
growth of their members! (hey also provide opportunities for contact with other organi+ations%
including government agencies! #ost have e4cellent websites for you to review! (he
professionali+ation of a field generally leads to some form of certification for practitioners to
enhance their status and to recogni+e their competency! (he &uman Resource .ertification
Institute of )&R# has developed such a program for professionals in &R#! (he program
offers two types of certification% each of which reflects the number of specialties and the
amount of e4perience andor academic training possessed by the recipient!
(o 5ualify for either certification% an applicant must provide verification of e4perience and pass
an intensive four/hour written e4amination to demonstrate mastery of knowledge! (he
certifications% which must be renewed every three years% serve largely to indicate the
5ualifications of recipients and encourage others to 5ualify for certification!
(here are other certifying agencies with specific certification designations in the areas of
compensation% employee benefits% and safety and health! 's the reputations of these programs
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grow and the programs become more widely recogni+ed by top management% certification will
become an important 5ualification for individuals seeking positions in &R#!
Co"e o& Et'!cs
It is typical for professional associations to develop a code of ethics that members are e4pected
to observe! (he code shown in &ighlights in &R# " was developed for &R managers by the
)&R#! #any large corporations have their own code of ethics to govern corporate relations
with employees and the public at large!
SOCIETY FOR HUMAN RESOURCE MANAGEMENT
Co"e O& Et'!cs
's a member of the )ociety for &uman Resource #anagement% I pledge myself to=
#aintain the highest standards of professional
and personal conduct!
Instill in the employees and the public a sense
of confidence about the conduct and intentions
of my employer!
)trive for personal growth in the field of
human resource management!
#aintain loyalty to my employer and pursue its
objectives in ways that are consistent with the
public interest!
)upport the )ociety8s goals and objectives for
developing the human resource management
profession!
Uphold all laws and regulations relating to my
employer8s activities!
Cncourage my employer to make the fair and
e5uitable treatment of all employees a primary
concern!
Refrain from using my official positions% either
regular or volunteer% to secure special privilege%
gain or benefit for myself!
)trive to make my employer profitable both in
monetary terms and through the support and
encouragement of effective employment!
#aintain the confidentiality of privileged
information
Improve public understanding of the role of
human resource management
(his .ode of Cthics for members of the )ociety for &uman Resource #anagement has been
adopted to promote and maintain the highest standards of personal conduct and professional
standards among its members! 'dherence to this code is re5uired for membership in the )ociety
and serves to assure public confidence in the integrity and service of human resource
management professionals!
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'dherence to a code often creates a dilemma for professionals% including those in &R#!
.onsider these 5uestions! :hom do &R professionals serviceJ :ho is the client//management
or the individual employeesJ In the course of serving the employees and management and
maintaining respect and regard for human values% whose needs are paramountJ :hat happens
whenas is fre5uently the case in &R workthe confidential issues of management andor
the employees are in conflictJQ
(hese and similar 5uestions are not easy to answer! &owever% the fact that there is a code in
itself focuses attention on ethical values and provides a basis for &R professionals to evaluate
their plans and actions! (he &R staff is concerned with monitoring ethics in its own operations!
&owever% &R departments have been given a greater role in communicating the organi+ation8s
values and standards% monitoring compliance with its code of ethics% and enforcing the
standards throughout the organi+ation! #any organi+ations have ethics committees and ethics
ombudsmen to provide training in ethics to employees!
(he ultimate goal of ethics training is to avoid unethical behavior% adverse publicity% and
potential lawsuits and to gain a strategic advantage! (o achieve these objectives% two
approaches are fre5uently used= ,1- developing employee awareness of ethics in business and
,"- drawing attention to potential ethical issues to which an employee may be e4posed!
Pro&ess!o#$% L!ter$ture
Personal development in any profession re5uires knowledge of the current literature in the
field! ' number of periodicals contain articles on general or speciali+ed areas of interest in
&R#! )ome of the more important journals students and practitioners should be familiar with
are shown below!
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Soe Iport$#t Pro&ess!o#$% Jour#$%s
.ompensation and ?enefits Review
Cmployee Relations *aw Aournal
Cmployee Responsibility and Rights&R ;ocus
&R #aga+ine
&R 0ews
&uman Relations
&uman Resource #anagement
&uman Resource #anagement Review
&uman Resource Planning
&uman Resources= Aournal of the International
'ssociation for Personnel :omen
Industrial and *abor Relations Review
Industrial Relations
International Aournal of &uman Resources
#anagement
International Aournal of )election and
'ssessment
Aournal of 'pplied PsychologyAournal of .ollective 0egotiation in the Public
)ector
Aournal of *abor Research
Aournal of #anagement
*abor *aw Aournal
#onthly *abor Review
0ational Productivity Review
Personnel
Personnel Aournal
Personnel Psychology
Public Personnel #anagement
)upervisory #anagement
(raining and Development Aournal
Other periodicals that cover the general field of business and management often containarticles pertaining to &R#! 'mong these are 'cademy of #anagement C4ecutive% 'cademy of
#anagement Aournal% 'cademy of #anagement Review% ?usiness &ori+ons% .alifornia
#anagement Review% .anadian ?usiness Review% Curopean #anagement Aournal% ;ortune%
&arvard ?usiness Review% Aournal of ?usiness Cthics% #anagement Review% ?usiness :eek%
and (he :all )treet Aournal!
Rese$rc' Or7$#!8$t!o#s
(he primary function of &R Research organi+ations is to conduct research and to make their
findings available to all who are interested! #any such organi+ations are found at universities!
Probably the largest university research center in the behavioral sciences is the Institute for
)ocial Research at the University of #ichigan! Its three divisions//the )urvey Research .enter%
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the Research .enter for Nroup Dynamics% and the .enter for Political )tudies//have together
published over <%FFF books% articles% and reports!
' number of state universities have centers for the study of labor and industrial relations%
including the Universities of .alifornia% #innesota% Illinois% and 0ew Hork! (he )chool of
Industrial and *abor Relations at .ornell University is also well known for its publications!
Organi+ations sponsored by industry% such as the 'merican #anagement 'ssociation ,'#'-
and the .onference ?oard ,.?-% publish research studies that benefit managers in &R#! Rand
.orporation of )anta #onica% .alifornia% and the ?rookings Institution of :ashington% D!.!%
are also recogni+ed for their contributions to this field!
(he ?ureau of 0ational 'ffairs ,?0'-% .ommerce .learing &ouse ,..&-% and Prentice/&all
,P&- also conduct surveys relating to &R# policies and practices! )urvey results from these
organi+ations may be found in loose/leaf volumes that contain a wealth of information about
policies and practices and the legal aspects of &R#! (he student of &R# should become
familiar with the various ?0'% ..&% and P& publications that are updated regularly! (hese
volumes are available in many college and university libraries% city libraries% and the libraries
of the larger work organi+ations! (he :orld :ide :eb search engines will help you gain
access to these organi+ations and &R Research!
Ac$"e!c Tr$!#!#7
:ith so much attention focused on the behavioral sciences during the 1>Fs and 1@Fs% the
subject of &R# suffered from neglect at some U!)! colleges and universities! )ince then%
however% e5ual employment opportunity% international &R#% employee rights% concern for
productivity% cost of employee benefits% and other current issues have rekindled interest in
&R# courses and in &R# as a major field of study!
In the past% many &R professionals entered the field with degrees in liberal arts and sciences%
having perhaps taken a few business courses as electives! &owever% as certification
re5uirements and other factors became essential for professional status% a bachelor3s degree and
even a master8s degree in business have become more important! In addition to business
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courses% students planning careers in &R# should take courses in such areas as personnel and
organi+ational psychology% industrial sociology% economics% industrial engineering% and
electronic data processing! ' knowledge of computer operations is essential for processing and
reporting personnel data to gauge the performance of &R programs!
Pro7r$s &or M$#$7!#7 Hu$# Resources
'n &R program constitutes the overall plan for managing people and for guiding managers and
supervisors in decisions relating to their subordinates! It establishes the objectives% policies%
procedures% and budget pertaining to the &R functions to be performed! 'lthough &R
managers are responsible for coordinating and enforcing policies relating to &R functions%
responsibility for performing these functions rests with all managers and supervisors within an
organi+ation!
Object!1es
&R objectives are determined by the organi+ation3s objectives as a whole! #ore and more% &R
objectives are reflecting the increased social responsibilities of firms% which include not only
traditional responsibilities to customers% employees% and shareholders but also responsibilities
to the community and to the total society!
Po%!c!es
.losely related to &R objectives are &R policies that serve to guide the actions re5uired to
achieve these objectives! Policies provide the means for carrying out the management
processes and as such are an aid to decision making! *ike objectives% they may be idealistic or
realistic% general or specific% fle4ible or infle4ible% 5ualitative or 5uantitative% broad or narrow
in scope! &owever% while objectives determine what is to be done% policies e4plain how it is to
be done!
Nee" &or Po%!c!es
.arefully developed policies are vital to &R# because employees are sensitive to any
differences% no matter how slight% in the treatment they may receive compared with others! (he
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5uickest way to impair employee efficiency and morale is for a manager to show favoritism in
decisions such as those relating to vacations% schedules% raises and promotions% overtime% and
disciplinary action! Decisions can be made more rapidly and more consistently if policies
relating to these and other subjects have been formulated and communicated throughout the
organi+ation!
Foru%$t!o# o& Po%!c!es
(he formulation of &R policies for approval by top management should be a cooperative
endeavor among managers% supervisors% and members of the &R staff! In some cases it may be
important to have employees8 input! Policy committees facilitate the pooling of e4perience and
knowledge! Participation by operating managers is particularly important because they are
often more familiar with the specific areas in which problems arise/and also because their cooperation is re5uired for policy enforcement! (he manager and staff of the &R department
have the responsibility for e4ercising leadership in formulating policies that are consistent with
overall organi+ational objectives! (hey also must make certain that these policies are
compatible with current economic conditions9 collective bargaining trends9 and laws and
regulations at federal% state% and local levels!
6r!tte# Po%!c* St$tee#ts
Organi+ations can make their &R policies more authoritative by putting them in writing! (o
strengthen their effectiveness% these statements% which may be compiled into a policy manual%
should include the reasons the policy is needed! :ritten policy statements can serve as
invaluable aids in orienting and training new personnel% administering disciplinary action% and
resolving grievance issues with employees and their unions! :hen distributed to employees%
these policy statements can provide answers to many 5uestions that might otherwise have to be
referred to supervisors!
&R policy statements and employee handbooks assume the force of a legal contract between
employer and employee! Aust as employers refer to policy statements as a basis for their
personnel actions% employees now cite organi+ational failure to adhere to established policies
as a violation of their rights! (his is not their intended use! #any firms insert a disclaimer or
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waiver in employee manuals to the effect that the contents of the manual do not constitute a
contract! (he disclaimer should be prominently placed% not buried in a footnote! :ording the
manual carefully ,avoiding alwaysQ and never%Q for e4ample-% using a conversational tone
rather than legalistic jargon% and having an outside labor counsel check the manual can help in
avoiding problems!
Proce"ures
&R procedures serve to implement policies by prescribing the chronological se5uence of steps
to follow in carrying out the policies! Procedures relating to employee selection% for e4ample%
might provide that individuals first be re5uired to complete an application form% followed by an
interview with an &R office representative!
HR proce"ures
Nrievances% promotions% transfers% and wage adjustments likewise must be administered
according to established procedure in order to avoid problems resulting from oversights! ;or
e4ample% as a step in the disciplinary procedure% the failure to give an employee written
warning of a violation might prevent the organi+ation from discharging the employee for a
second violation!
&R procedures% like &R policies% must be treated as means to an end% not as ends in
themselves! :hen organi+ations become bureaucratic% complaints may be raised about
e4cessive red tape% infle4ibility% and impersonality in making &R decisions! Unfortunately%
when procedures become too detailed or numerous% they can impair rather than further the
interests of the organi+ation and its employees! (o avoid this ha+ard% procedures must be
reviewed periodically and modified to meet changing conditions!
Hu$# Resources I#&or$t!o# S*stes
Cffective &R# re5uires an &R information system ,&RI)- to provide current and accurate
data for purposes of control and decision making! (he system is composed of procedures%
e5uipment% information% methods to compile and evaluate information% the people who use the
information% and information management!
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HR bu"7et
:hile a firm8s selection policy may be to hire only fully 5ualified applicants to fill vacancies%
its ability to observe this policy will depend on whether it budgets enough money to screen
applicants carefully! )ecuring ade5uate funds for the &R budget further re5uires the &R staff to
be able to convince top management that the &R program is cost/effective and is producing
results!
E1$%u$t!#7 t'e Hu$# Resources Pro7r$
Aust as financial audits are conducted% audits or evaluations of the &R# program should be
conducted periodically to assure that its objectives are being accomplished! 'udits typically
involve analy+ing data relative to the program% including employee turnover% grievances%
absences% accidents% and similar indicators! )pecial attention is usually given to assessing
compliance with laws and regulations governing various specific areas such as e5ual
employment opportunity and safety and health! ' comprehensive audit should encompass all
aspects of the &R function! (his audit should be performed by both the &R department and the
operating and line managers!
T'e Hu$# Resources Dep$rte#t
(he &R manager is assuming a greater role in top/management planning and decision making!
(his trend reflects a growing awareness of the contributions that &R# can make to the success
of the firm! 'lthough managerial personnel at all levels are engaged in &R# activities% the top
manager of the &R department has the primary responsibility for developing a program that
wilt help the organi+ation to meet its &R# objectives!
Respo#s!b!%!t!es o& t'e Hu$# Resources M$#$7er
Novernment legislation and court decisions have had a major influence on &R policies and
practices! #ore recently% concern for productivity improvement% employee desires for
balancing family and job demands% and desire of workers for more e5uitable treatment have
added to the responsibilities of the &R manager! (hese influences have thus re5uired &R
managers not only to be more knowledgeable about many issues but also to be more versatile
in handling several activities!
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(he major activities for which an &R manager is typically responsible are as follows=
1! Policy initiation and formulation! (he &R manager generally proposes and drafts new
policies or policy revisions to cover recurring problems or prevent anticipated problems!
Ordinarily% these are proposed to the senior e4ecutives of the organi+ation% who actually
issue the policy!
"! 'dvice! (he &R manager generally counsels and advises line managers! (he &R staff is
e4pected to be fully familiar with &R policy% labor agreements% past practices% and the
needs and welfare of both the organi+ation and the employees in order to develop sound
solutions to problems!
! )ervice! (he &R manager generally engages in activities such as recruiting% selection%
testing% planning of training programs% and hearing employee concerns and complaints!
2! .ontrol! (he &R manager generally monitors performance of line departments and other
staff departments to ensure conformity with established &R policy% procedures% and
practice!
(he &R manager8s authority in carrying out these activities is restricted to staff authority
,policy initiation and formulation and advice giving- and functional authority ,service and
control-! :ithin the scope of functional authority% the &R manager generally has the right and
is e4pected to issue policies and procedures for &R functions//i!e!% selection% training%
performance evaluation% and so on//throughout an organi+ation! (he only line authority the &R
manager has is over subordinates in his or her department!
I#/House Co#su%t$#ts
' major contribution that the &R department staff can make to the organi+ation is to serve as
in/house consultants to the managers and supervisors of other departments! 'lerting top
management to contemporary issues and changes within society that affect the organi+ation is
also an important responsibility! .losely related is the responsibility of monitoring new
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Dep$rte#t Or7$#!8$t!o#
In a small firm the &R department may consist only of a manager and a few assistants! In a
larger firm many additional staff members may be re5uired! Increased si+e eventually leads to
the establishment of departmental units! (he most common departments are=
• &R Planning
• Aob Re5uirements
• Recruitment
• )election
• 'ffirmative 'ction
• (raining
• .areer Development
• Performance 'ppraisal
• .ompensation
• ?enefits
• )afety and &ealth
• *abor Relations
HRM IN THE FUTURE
During the 1Fs &R# has been in the throes of a radical transformation! (he &R function is
being transformed into a significant management function! :here &R departments fail to
recogni+e their responsibilities to become vital members of the management team% line
managers are reaching out to take control and ownership of the various &R functions! 'lthough
line managers need an understanding of &R#% the technical aspects should be delegated to
professional &R staffs! *ooking ahead% both line and &R e4ecutives agree that a proactive and
strategically oriented &R function will be critical! (here is a need for dramatic changes from
centrali+ed and functionally organi+ed &R units to more fle4ible and decentrali+ed units! (his
will necessitate more supervisory involvement in &R activities! (here will likely be is a new
role model for the &R department and its function! (he future will support the concept of
shared responsibilities between line managers and &R managers! (he single greatest attribute
of the &R staff will be the ability to educate and influence line managers on &R issues!
In 1B% a study prepared for the )ociety for &uman Resource #anagement was conducted to
determine what pressures organi+ations face today% what they must do to remain competitive%
what the role of &R is in providing a competitive advantage% and how this role is changing! '
leading 5uestion in the survey was :hat distinguishes superior &R performance from average
performanceJQ (he study found a clear link between an organi+ation8s level of success and the
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effectiveness of its &R leadership! During the course of the study more than twenty .COs and
more than fifty practitioners participated in determining the role they e4pect &R to play in
meeting competitive and organi+ational challenges! (his information was used to create the
)enior/*evel &R .ompetency #odel shown below! (he purpose of this model is to define and
describe the competencies re5uired of superior &R leaders from the perspective of both .COs
and &R practitioners! )tudy the individual competencies within each of the five clusters= goal
and action management% functional and organi+ational leadership% influence management%
business knowledge% and &R technical proficiency! :hile the &R competency model was
prepared as guidance for &R leaders and those who aspire to such positions% the knowledge
and skills within the individual clusters can be used as a guide by anyone who wishes to
succeed in a work organi+ation or as an entrepreneur!
COMPETENCY CLUSTERS AND INDIVIDUAL COMPETENCIES
<>
SENIOR LEVEL
HR
COMPETENCY
MODEL
NO'* '0D '.(IO0#'0'NC#C0(
Cfficiency orientationProactivity.oncern with impactDecisiveness
;U0.(IO0'* '0D
ORN'0IS'(IO0'**C'DCR)&IP
Developing othersNroup management skills;unctional marketing*eading through visionIntegrity
(C.&0I.'*PRO;I.IC0.H
&R planning% selection andPlacement
(raining and developmentCmployee and labor relations.ompensation and benefits&ealth% safety% and securityPersonnel researchOrgani+ational development &RI) I0;*UC0.C
#'0'NC#C0(
Perceptual objectivity
.oalitionnetwork building
.ommunication process skills
0egotiation skills
?U)I0C))
L0O:*CDNC
)trategic focusOrgani+ational awarenessIndustry knowledge$alue/added perspectiveNeneral management skills
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RECRUITMENT
Recruiting refers to these sets of activities an organi+ation uses to attract job candidates
processing the appropriate characteristics to help the organi+ations reach its objectives!
'ccording to ?yras and Rue% Recruitment involves seeking and attracting a pool of people
from which 5ualified candidates for job vacancies can be chosenQ!
SU) SYSTEMS OF RECRUITMENT+
• ;inding out and developing the sources where the re5uired number and kind of
employees are ,will- be available!
• Developing suitable techni5ues to attract the desirable conditions!
• Cmploying the techni5ues to attract candidates% and
• )timulating as many candidates as possible and making them to apply for jobs
irrespective of number of candidates re5uired!
FUNCTIONS OF RECRUITMENT+
• Organi+ational policy regarding of filling up of certain percentage of vacancies by
internal candidates!
• *ocal candidates ,sons of soil-
• Influence of trade unions!
• Novernment regulations reservations of certain number of vacancies to candidates
based on community! ,Region% caste% se4-
• Influence of recommendations% nepotism etc!
INTERNAL FACTORS OF OTHER ACTIVITY OF RECRUITMENT+
• :orking conditions
• Promotional opportunities!
• )alary levels% type and e4tent of benefits!
• Image of the organi+ation!
• Other personal policies and practices!
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• 'bility and skill of management to stimulate the candidates!
E>TERNAL FACTORS+
• Personnel policies and practices of various organi+ations regarding working conditions%
salary% benefits% promotional opportunities% employee relations!
• .areer opportunities in the organi+ations!
• Novernment regulations! &owever formulating sound process can minimi+e the degree
of comple4ity function!
RECRUITMENT POLICY+
• Recruitment policy of any organi+ation is derived from the personnel policy of the
same organi+ation!
• Novernment policies!
• Personnel policies of other competing organi+ations9
• Organi+ational personnel policies!
• Recruitment sources!
• Recruitment needs!
• Recruitment cost!
• )election criteria and preference etc!
T'e recru!te#t process ust &o%%o( $ #o o& steps+
• Defining the job!
• Cstablishing the person profile!
• #aking the vacancy known!
• Receiving and documenting applications!
• Designing and using the application form!
• )electing!
• Induction!
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EMPLOYEE RE?UISITION+
(he recruitment process is triggered with the receipt of the re5uisition form from the
department which wants a position to be filled up! (he re5uisition form should contain a brief
description of the post% 5ualifications and e4perience re5uired the reason for recruitment%
which are new vacancy or replacement and the sanction for the post! (he signature of the
re5uisitioning authority important% particularly in large organi+ations to intimate the personnel
department that an employee is re5uired in a particular job! Receipt of the employee re5uisition
is the official authori+ation for the personnel department to start up selection procedures!
JO) SPECIFICATIONS AND JO) DESCRIPTIONS+
Once the employee re5uisition has been sent and duly received% the representative of the
personnel department and the manager who sent the re5uisition must review the job
descriptions and job specifications contained in the re5uisition so that both have clear and up/
to/date information regarding the duties of the job and the specific% desired 5ualifications! Aob
specifications and job descriptions are essential components of effective selection! (hese
devices provide the personnel function with a clear perspective of the vacancy that is re5uired
to be filled and the 5ualifications that the new recruit must posses!
SOURCES OF RECRUITMENT+
Once the organi+ation has decided it needs additional employees% it has the option of looking at
two sources of applicants E InternalQ and C4ternalQ! :hile recruiting internally% the firm may
look at present employees% friendsrelatives of employees% former employees and also former
applicants! 'gain% promotions% demotions% and transfers can also provide personnel among
which to choose from!
$4 A"1ert!see#t+
(his is a mode of generating applications% which is fre5uently used! $arious media are
employed% the most common of which are the daily newspapers! Organi+ations also advertise
for personnel in trade and professional publicationsjournals as on billboards% radio% ($ and
general maga+ines! (he advertisement should be specific and include sufficient detail! :hen
using recruitment advertisements% employers should ask four key 5uestions=
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1! :hat do we want to accomplishJ
"! :ho are the people we want to reachJ
! :hat should the advertising message conveyJ
2! &ow should the message be presentedJ
' well thought out and planned advertisement for an appointment reduces appreciably the
labour and time subse5uently re5uired to be put in! a good% carefully drafted advertisement can
also help in building the image of an organi+ation since very often% potential candidates are
first introduced to the company through advertisements in the media!
b4 Ep%o*e#t $7e#c!es+
1- Public agency "- Private agency
Cmployment e4changes% with branches in most cities% are a good source for generating
applications! (hey are mainly concerned with the registration of job seekers and their
placement in notified vacancies9 studies have shown that employment e4changes have been
very useful in placement of workers particularly blue/collar% white/collar% craft and technical
workers! ?esides public employment e4change% there are also several private agencies charging
fees and speciali+ing in providing specific types of personnel generally at supervisory and
higher levels! (heir principal function is to furnish a list of suitable candidates for prospective
employers from their databank! ' current trend that has developed is for these agencies to
recruit on behalf of an organi+ation without disclosing the identity of that organi+ation! (hey
go as far as short/listing the candidates for the organi+ation which then makes its final choice!
In some cases% a representative of the employment agency may even sit on the panel% which
makes the final selection! ;or the organi+ation% there is a two/ fold advantage to be derived
from the use of these private employment agencies!
On the one hand% in terms of cost% this may be a cheaper alternative than doing it oneself! (he
time and man hours saved in processing% short/listing% and completing other formalities could
be otherwise utili+ed! On the other% unto certain point% the organi+ation8s identity remains
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unknown! It is% therefore% able to avoid the inconveniences of receiving and answering letters
and phone calls% issuing clarifications% being pressuri+ed% etc!
c4 O# c$pus recru!te#t+
.ampus recruitment has been a large/scale operation for many companies all over the world
for 5uite some time now! :ithin many such campuses themselves% regular placement services
have developed! (hese placement services give opportunity for students and employees to meet
and discuss potential hiring! Organi+ations usually send an employee or a small team of
employees to a campus to interview candidates and describe the organi+ation to them!
.oinciding with such visits% organi+ations take the opportunity to distribute brochures and
other literature to spread awareness and build company image! Representatives of the
organi+ation also meet the teaching faculty to get an idea of course content and curriculum as
well as the track record of students! #any firms actually issue appointment letters after
conducting interviews! #any invite chosen candidates to make a site visit to the company
head5uarters where they are given appointment letter after some further testing or observation!
;or students coming out of educational institutions% this form of recruitment is very convenient
and satisfying! ;or employers% it saves a great deal of time and processing costs and they get
access to a large number of bright% young people at one place from among whom they can
choose and with whom interviews can be fi4ed at short notice!
"4 Deput$t!o#+
(his is the system of loaning an employee to another organi+ation for a duration that ranges
normally between and < years! )ince the person possesses certain abilities useful to another
organi+ation% he is deputed to it for a specified duration! Deputation is a fairly common method
of recruitment in public sector organi+ations and government agencies! Its e5uivalent in the
private sector could be said to take place when an employee is sent from one unit of the same
group to another for a short period on the understanding that on completion of his term% he will
return to his parent unit!
e4 Ep%o*ee recoe#"$t!o#s+
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In this recruiting is done by taking referrals from the employees of that organi+ation! 'n
employee recommendation is widely followed in many organi+ations!
&4 Tr$"e $#" copet!t!1e sources+
#any professional societies and other trade associations publish
journalsnewslettersmaga+ines which contain advertisements for job openings! )uch
publications are often a good source for filling certain professional and technical positions!
74 6$%:/!#s+
:here there are organi+ations there are also people applying to them for jobs almost
continuously! (here is no reason to assume that none of these will be suitable! :hen their bio/
data or curriculum vitae are stored and scanned% often with the help of a computer% some of
them could as well be found suitable for the recruitment! .hoices made among such casual
applicants are called 7:'*L/I0)8!
Over the years% there has also evolved a system of walk in interviewsQ where a target group is
identified and encouraged to approach the recruiting department of an organi+ation with their
bio/data on specified dates between specified times!
INTERNAL SOURCES+
a- Present permanent employees!
b- Present temporary or casual employees
c- Retrenched or retired employees!
d- Dependence of diseased% disabled retired and present employees!
(he organi+ations prefer for internal source since it is a techni5ue of motivation% moral of
employees can be improved! Internal candidate can be judged better than e4ternal candidates!
.ost of selection% training% induction% period of adoptability minimi+ed! (rade Unions can be
satisfied!
E>TERNAL SOURCES+
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1! (he suitable candidate8s knowledge% talent etc are generally available!
"! .andidates can be selected with out any pre/ conceived notion or reservations!
! .ost of employees can be minimi+ed because employees selected from this source are
generally placed in minimum pat scale!
2! C4pertise% e4cellence and e4perience in other organi+ations can be easily brought into the
organi+ation!
<! C4isting will also broaden their personality!
>! *ong/run benefit to the organi+ation in the sense that 5ualitative human resources can be
brought!
E>TERNAL SOURCES INCLUDED+
1! Cducational and training institutes!
"! Private employment agencies ,consultants-!
! Public employment e4changes!
2! Professional 'ssociations!
<! Data banks!
>! .asual applicants!
@! )imilar organi+ations!
B! (rade Unions!
RECRUITMENT TECHNI?UES+
• Promotions!
• (ransfers!
• Recommendations of the present employees!
• )couting!
• 'dvertising!
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SELECTION+
(he most valuable asset of any large/scale organi+ation is the high/caliber personnel! Nood
morale and motivation bind the employees together and breed enthusiasm and goodwill in
them% leading to better output an important part of personnel selection% therefore% is to make
reasonably sure that the person appointed to any position is interested in the work he has to do!
(he ac5uisition of new employees is the most important and comple4 test! (o find and employ
the best individuals available is every personnel manager8s goal!
One of the important aspects in personnel selection is individual difference! Individuals differ
in their ability to perform the different types of activities! (hey differ the different types of
activities! (hey differ in their physical characteristics% intelligence and intellectual aptitudes% in
interests! In temperaments% and in characteristics% intelligence and intellectual aptitudes% in
interests! In temperaments% and in character! (hese differences in the individuals are to a large
e4tent uncorrelated! ?ecause of these large e4tent uncorrelated! ?ecause of these large
differences in human abilities% the problem of proper selection becomes a very important one
for modern industry!
:hen an organi+ation gets application from more candidates than the actual re5uirement the
organi+ation has to device methods through which it can divide this application into catenaries
those who will be offered employment and those who will not offer for the employment! )ince%
more candidates will be rejected than those hired through this process! (his is also called as the
process RejectionQ!
Se%ect!o# o& ep%o*ee p%$*s 1er* !port$#t !# t'e or7$#!8$t!o#+
SELECTION POLICY+
:hen formulating the selection policy% due consideration should be given to organi+ational
re5uirements as well as technical and professional dimensions of selection procedures!
SELECTION PROCESS 3OR4 PROCEDURE+
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)election process involves a number of steps9 the basic idea is to select ma4imum possible
information about the candidates to ascertain they8re suitable for employment!
,a- Initial ,or- preliminary interview!
,b- 'pplication blank ,or- blanks!
,c- .heck of references!
,d- Psychological interview!
,e- Cmployment interview!
,f- 'pproval by the supervisor!
,g- Physical e4amination!
,h- Induction ,or- orientation!
$4 Pre%!!#$r* !#ter1!e(+
(he more non/selective the recruitment program% the more likely it is that a preliminary
interview will be re5uired! (his initial interview is usually 5uite short and has as its object the
elimination the obviously un5ualified! It the applicant appears to have some chance to
5ualifying for e4isting job openings% he ,or- she is given the application blank to complete!
b4 App%!c$t!o# b%$#:+
'n application is a brief history sheet of an employee8s background and can be used for feature
reference% in case of need! In a nutshell% an application blank should be complete enough to
relive the interviewer of the burden of recording considerable factual data!
c4 C'ec: o& Re&ere#ce+
(he case of reference is common in most selection procedures% for it involves only a little and money%
and minimum of effort check on references are made by mail ,or- telephone and occasionally in
person% ,or- by using a reference form!
"4 Ps*c'o%o7!c$% Test+
(he ne4t step in the procedure outline above is that of testing! In all organi+ations% large and small% are
considered! It is apparent that most are not using psychological tests! #ost of the larger companies that
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can afford to have a more detailed and accurate selection procedure do utili+e some form of
employment testing!
e4 I#ter1!e(!#7+
Interviewing is probably the most widely used single method of selection! ' substantial amount of
subjectivity% and therefore% unreliability% is to be e4pected from interviewing when used as a tool of
evaluation! (he interview consists of interaction between interviewer and applicant! If handled
properly% it can be a powerful techni5ue in achieving accurate information! Interviews are of 2 types=
,a- Preliminary interview ,b- )tress interview
,c- Depth interview ,d- Patterned interview!
&4 Appro1$% b* t'e super1!sor+
In e4ecuting the personal unit screening functions% the emphasis tends to be more on formal
5ualifications and general suitability when the supervisor takes over% the emphasis tends to switch
towards more specifically job oriented worker characteristics such as (raining and relevant past
e4perience!
74 P'*s!c$% E$!#$t!o#+
(he physical e4amination is an employment step found in most business! It can vary from a very
comprehensive e4amination and matching of an applicant8s physical capabilities to job re5uirement!
(o a simple check of general physical appearance and well/being! In the selection procedure the
physical e4amination has at least three basic objectives! ;irst% it serves to ascertain the applicant8s
physical capabilities! (he second objective of the e4amination is to project the company against
unwarranted claims under worker8s compensation laws% ,or- against lawsuits for damages! 'nd the
final objective is to prevent communicable diseases from entering the organi+ation!
'4 I#"uct!o#+
Induction is concerned with the problem of introducing ,or- orienting a new employee to the
organi+ation!
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I#ter1!e(+
(he interview is the heart of the employment process! (he personal interview% along with the
application blank continues to be used by almost every employer! Interviewing is considered to be the
most useful selection method! (he interview is a conversation with a purpose! Its aim is to provide the
candidate with information about the job and the company and also to give the candidate a favorable
impression of the company! (here are three purposes that may be served obtain information% giving
information and motivation!
(here are several techni5ues in the interviews such as=
,a- Preliminary interview
,b- Patterned interview
,c- 0on/directive interview
,d- )tress interview
,e- Depth interview
,f- Nroup interview
,g- Panel interview
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>B
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@9 DATA ANALYSIS AND INTERPRETATIONS
.9 Recru!te#t po%!c* o& ATS P1t Lt"
a- 'dvertising in 0ewspaper
b- 'dvertising in Cmployment 0ewspaper
c- (elevision Radio
d- .ampus Interview
e- Internet
;ig= Recruitment policy of '() Pvt *td
I#terpret$t!o#+
;rom the above diagram the Recruitment policy of '() Pvt *td is to recruit <<M by
Cmployment 0ewspaper 'ds% 2FM by 0ewspaper 'ds <M by .ampus interviews!
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,9 Ho( "!" *ou coe to :#o( $bout t'e 1$c$#c!es !# ATS P1t Lt" Pr!1$te
L!!te";
a- 0ewspaper
b- Cmployment 0ewspaper
c- Cmployment C4change
d- Others
I#terpret$t!o#+
;rom the above diagram it is clear that 2@M of the '() Pvt *td employees came to know about
the vacancies by seeing Cmployment 0ewspaper 'ds "M through Cmployment C4change!
B9 Ho( (ere *ou recru!te";
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a- direct Recruitment
b- )creening by a written test
c- )creening by an interview
d- )creening by both a written test and interview
I#terpret$t!o#+
;rom the above diagram it is clear that B@M of the '() Pvt *td employees got recruited
through written test interview% <M by Direct Recruitment #ethod!
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@9 Ho( *ou $re s'ort %!ste"; )$se" o#;
a! C4perience
b! Gualification
c! Performance in interview
d! 'ny other aptitude test
I#terpret$t!o#+
;rom the above diagram it is clear that 2"M of the '() Pvt *td employees got short listed
based on interview performance 1FM based on C4perience!
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4 6'$t $ccor"!#7 to *ou $re t'e se%ect!o# cr!ter!$ o& ATS P1t Lt" Pr!1$te L!!te";
a! Gualification
b! C4perience
c! Personal relationship
d! )kills and knowledge
I#terpret$t!o#+
;rom the above diagram it is clear that <@M of the '() Pvt *td employees got selected based
on )kills Lnowledge and "FM based on e4perience!
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9 A&ter se%ect!o# 'o( uc' t!e "!" t'e* t$:e to p%$ce *ou;
a!Immediately
b! One month
c!(wo months
d! #ore than two months
I#terpret$t!o#+
;rom the above diagram it is clear that @M of the '() Pvt *td employees got placed after two
months of being selected "FM got placed immediately!
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4 Do *ou &$1or Reser1$t!o# s*ste;
a! Hes
b! 0o
I#terpret$t!o#+
;rom the above graph it is clear that 2FM of the '() Pvt *td employees are in favour of
Reservation )ystem!
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4 Is t'ere Prob$t!o#$r* )$#" re1!e( per!o";
a- Hes
b- 0o
I#terpret$t!o#+
;rom the above graph it is clear that "!<M of the '() Pvt *td employees are aware of
Probationary Review Periods!
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.-4 Are t'ere I#"uct!o# &$c!%!t!es;
a- Hes
b- 0o
I#terpret$t!o#+
;rom the above graph it is clear that <M of the '() Pvt *td employees are aware of Induction
facilities!
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..4 Ho( (!%% *ou s'ort%!st;
a- C4perience
b- Gualification
c- Performance in interview
d- 'ny other 'ptitude test
I#terpret$t!o#+
;orm the above graph it is clear that <FM of '() Pvt *td employees are short listed by
e4perience and @!<M by other ways!
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.,4 6'$t $ccor"!#7 to *ou s'ou%" be 7!1e# !port$#ce &or $# !#ter1!e(;
a- .ommunication )kills
b- )ubject knowledge
c- Physical appearance
d- 'll the above
I#terpret$t!o#+
;rom the above graph it is clear that <<M of '() Pvt *td employees are recruited based on
subject knowledge and @!<M by physical appearance!
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.B4 Are t'e op!#!o#s re7$r"!#7 t'e recru!te#t process $re t$:e# &ro t'e $pp%!c$#ts;
a- Hes
b- 0o
I#terpret$t!o#+
;rom the above graph it shows that @<M employees do not take give opinions regarding the
recruitment process!
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.@4 I# se%ect!o# proce"ure t'e (e!7't$7e !s 7!1e# &or '!s p$st eper!e#ce < $c'!e1ee#t;
a- Hes
b- 0o
I#terpret$t!o#+
;rom the above graph it shows that @FM weightage is given for his past e4perience
achievement!
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.4 Do t'e recru!te#t < se%ect!o# proce"ures c'$#7e $%o#7 (!t' t'e c'$#7!#7 t!es;
a- Hes
b- 0o
I#terpret$t!o#+
;orm the above graph it shows that >"!<M employees of '() Pvt *td agree the change in
recruitment and selection procedures along with the changing times!
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.4 6'et'er t'e &res'er (!t' reu!re" s:!%%s < c$p$b!%!t!es $re recru!te";
a- Hes
b- 0o
I#terpret$t!o#+
;rom the above graph it shows that <<M employees of '() Pvt *td agreed that the fresher with
re5uired skills and capabilities are recruited!
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.4 Is ore (e!7't$7e 7!1e# &or !#ter#$% recru!te#t;
a- Hes
b- 0o
I#terpret$t!o#+
;rom the above graph it shows that @<M of '() Pvt *td employees with the internal
recruitment!
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.4 6'et'er t'e su77est!o#s so obt$!#e" $re co#s!"ere" &or t'e re&or!#7 t'e se%ect!o#
process;
a- Hes
b- 0o
I#terpret$t!o#+
;rom the above graph it shows that ><M of '() Pvt *td employees are considering for the
reforming the selection process!
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.4 Ho( (ere *ou recru!te";
a- Direct Recruitment
b- )creening by an written test
c- )creening by an interview
d- )creening by both written test interview
I#terpret$t!o#+
;rom the above graph it shows that <<M of employees were recruited by written test and
interview% 1FM were recruited by direct recruitment!
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9.FINDINGS
1! It is found that '() Pvt *td advertises of its vacancies in employment newspaper and
other widely read newspapers!
"! #ajority of the recruitments are done on the basis of responses to the advertisements
given!
! 'bout FM of the employees get recruited through written test and interviews and the
performance in the interviews is given prior importance and secondary to the
5ualifications and other aptitude tests!
2! (he type of interviews conducted at '() Pvt *td is mostly panel interviews and
personal interviews!
<! )kills and knowledge are given due importance in the selection process!
>! (he time duration between the selection and placement in two to three months!
@! Cmployees of '() Pvt *td are made aware of the probationary and review periods and
also the induction facilities!
B! >FM of the employees of '() Pvt *td do not favor reservation system!
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9, SUGGESTIONS
1! '() Pvt *td should also give due importance to 5ualifications and e4perience of the
candidates at the time of recruitment!
"! )tress interviews should also be conducted to those who are to be placed in the crucial
position of the organi+ation!
! (he time duration between selection and placement should be reduced so that the
organi+ation does not lose out potential human resources!
2! .ampus interviews also should be done to invite fresh blood with fresh ideas into the
organi+ation!
<! Organi+ation should also adopt methods like group discussions and depth interviews to
find the right personnel!
>! #ore innovative methods of recruitment and selection may be adopted!
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9B CONCLUSION
&R# represents a new concept of and approach to performing personnel functions! It still
re5uires the performance of those personnel functions that have evolved over the years in
response to emerging needs! &owever% instead of treating these functions as separate and
distinct% &R# considers them interrelated parts of a management system that must be
integrated closely with strategic organi+ational planning! &R managers are becoming more
involved in the decision making of top management in a wide variety of issues and problems!
Lnowledge of &R# is important for individuals who will occupy managerial and supervisory
roles% since they will also perform &R functions!
(he present status of &R# was achieved only after years of evolutionary development! During
the nineteenth century the factory system enabled products to be manufactured more cheaply
than before! (he concentration of workers in factories in turn focused public attention on the
need for better working conditions and greater consideration for employee health and safety!
During this period an objective and systematic approach to improving worker efficiency known
as scientific management emerged! ?y the early 1FFs some of the knowledge and research
from the field of psychology was beginning to be applied to the management of personnel!
)ince the late 1"Os severa1 forces have contributed significantly to the &R# movement!
(he &awthorne studies were influential in humani+ing the workplace% and the human relations
movement focused attention on individual differences and informal groups! 's the human
relations movement evolved% it became broader in scope and included the various behavioral
sciences% focusing on the achievement of organi+ational objectives! During this period political
pressures gave rise to government legislation affecting &R# around the world! 0ow there is
increasing speciali+ation of &R functions and an emphasis on strategic management!
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&R# may be referred to as a profession because it has the following characteristics= ,1- It is
based upon an organi+ed body of knowledge developed through research and e4perimentation%
,"- the knowledge is disseminated through publications and professional meetings% ,-
professional associations promote the professional growth of their members% ,2- various types
of certification allow practitioners to increase their competency% and ,<- the various &R#
professional associations have developed codes of ethics that their members are e4pected to
observe!
' code of ethics focuses attention on ethical values and provides a basis for &R professionals
to evaluate their plans and their actions! &R departments have been given a greater role in
communicating the organi+ation3s values and standards and in monitoring compliance with its
code of ethics! (he principal elements of an &R program are objectives% policies% and pro/
cedures!
&R objectives are determined by the organi+ation8s objectives as a whole! Policies serve to
guide the actions re5uired to achieve these objectives! &R policies must be compatible with
current economic conditions% collective bargaining trends% and laws and regulations at all
levels! &R procedures implement policies by prescribing the steps to follow in carrying out the
policies!
)tatements relating to objectives% policies% and procedures can be meaningful only if they are
supported financially by the budget! It is important that the &R# program be audited
periodically to assure that its objectives are being accomplished! (he &R department is
responsible for initiating and formulating policy9 counseling and advising line managers9
providing services such as recruiting% selection% and planning of training programs9 and
monitoring the performance of line and staff departments to ensure conformity with established
&R policy and procedures!
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(he &R manager8s authority in carrying out these activities is restricted to staff authority and
functional authority! &R managers often use the services of outside consultants% and more
recently% they have outsourced some of the &R functions to vendors on a long/term basis!
&R# is in the midst of a radical transformation! *ine managers are reaching out to take control
over the &R functions where &R departments fail to recogni+e their responsibilities!
.omprehensive research studies have shown that a proactive% strategically oriented perspective
is critical! ?oth line and &R e4ecutives support the concept of shared responsibility between
line and &R managers! 'n &R competency model emphasi+es goal and action management%
functional and organi+ational leadership% influence management% business knowledge% and &R
technical proficiency!
I am of the view that there are some short falls in the way of recruitment and procedure of the
selection by the organi+ation! (hose short falls can be compensated by following the above
suggestions! 0ot all employees of '() Pvt *td are considering for the reforming the selection
process! In some instances company should take views from the employees to achieve efficient
and effective results which help in transformation of the organi+ation in the future!
2
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5EY TERMS
• ?ehavioral sciences
• .ertification
• &awthorne studies
• &R budget
• &R information system ,&RI)-
• &R objectives
• &R policies
• &R procedures
• &uman relations movement
• &uman resources management
• Outsourcing
• )cientific management
<
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>
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)I)ILIOGRAPHY
)OO5S+
1! ?ohlander% "FF>% &uman Resource #anagement% 1Fth Cdition% (homson!
"! Dessler Nary% "FF>% &uman Resource #anagement% 1Fth Cdition% Pearson Prentice
&all of India!
! #ondy% "FF@% &uman Resource #anagement% th Cdition% Pearson Cducation!
2! :ayne ;! .ascio "FF>% #anaging &uman Resources% (#&!
<! 'swathappa% "FF>% &uman Resource #anagement% 2th Cdition % (#&!
>! Desimone% "FF@% &uman Resource Development% 1Fth Cdition% (homson!
@! 0oe '!Raymond% Aohn &ollenbeck% ?arry Nerhart and Patrick :right= &uman
Resource #anagement% (ata #cNraw &ill!
B! Decen+o '!David and )tephen Robbins E &uman Resource #anagement% Aohn :iley
)ons!
! Ayothi P! and D0 $enkatesh E "FF>% &uman Resource #anagement% O4ford University
Press!
1F! $)P Rao "FF>% &uman Resource #anagement% (e4t and .ases% C4cel ?ooks!
6E)SITES+
www!adityatrading!in
www!citehr!com
www!google!com