Académique Documents
Professionnel Documents
Culture Documents
A Project Report Submitted to Institute of Public Enterprise, Hyderabad in partial fulfillment of the
requirement for the award of degree of
DECLARATION
I, hereby declare that the SIP Work titled, TO STUDY THE CONTRASTING BEHAVIOR OF THE
TRADITIONAL PRACTICES TO THE CONTEMPORARY PRACTICES IN RECRUITMENT PROCESS
is an original work done by me under the Supervision of Dr. JAGAN MOHAN REDDY,
PROFESSOR, PGDM-HRM, IPE, Shameerpet Campus, Hyderabad and Mr. SRINIVASN M,
Dy. Manager, Aurobindo Pharma Ltd.
This project has not been submitted elsewhere for the award of any degree or diploma either in
part or full in any university/institution.
Place: - Hyderabad.
Date: -
ACKNOWLEDGEMENT
No task however small can be completed without proper guidance and encouragement. It is a
pleasure to acknowledge my debt to the many people involved directly or indirectly, in the
successful completion of the project.
I would like to acknowledge the help rendered to me by Prof. R.K. Mishra, Director, IPE,
Hyderabad.
I would like to thank CS Anil Kumar, Coordinator, PGDM-HRM, IPE, Hyderabad, for
guidance and support throughout the course of this project. I express my deep sense of
gratitude to Dr. JAGAN MOHAN REDDY, PGDM-HRM, IPE, Hyderabad, for his timely help
and integrity in handling my needs. I take this opportunity to thank his profusely for his
excellent guidance and support throughout the course of this project.
My Sincere thanks to Mr. Srinivasan M, Dy. Manager, APL, Hyderabad for their guidance
and co-operation.
I extend my thanks to the HR department of APL, Hyderabad for their guidance during my
interaction with them.
Place: -
Date:-
Contents:
PAGE
1 INTRODUCTION
2 COMPANY PROFILE
20
3 LITERATURE REVIEW
35
59
5 CONCLUSIONS
70
6 BIBILOGRAPHY
72
INTRODUCTION
globe is driven by mostly through capitalistic ideas and no one can escape from the eye of this
capitalism.
Cascading the topic from international level to the
good opportunities for the Industries, In more clear sense, Manufacturing sectors contribution
to the GDP is increasing year by year and it is clear, a positive sign for the whole
Manufacturing sector. There is a positive shift taking place after approximately, 150 years after
the Industrial revolution. Though India is good at producing a good amount of Software
Engineers, in recent context India does not restricting itself to certain sectors, but trying to
create that gambit for other industries. India producing a pool of talent required for all
industries and our expertise in English compared to other countries making us unique from the
rest of South Asian countries. Being an intellect one should accept and appreciate that the
hurdles we Indians came across in Indias legacy of success.
Being
a Knowledge
account deficit, which is the investment that cannot be financed by domestic savings and has
to be financed through trade surplus, also widened.
India's pharmaceutical sector is poised to grow from the present US$ 15.6 billion, to
US$ 35.9 billion by 2017. A similar forecast has been published in a Pricewaterhouse Coopers
(PwC) report which believes that the industry size could possibly touch US$ 74 billion by 2020.
The Indian Government's Pharma Vision 2020 also aims at making India a global leader in
end-to-end manufacture by 2020, and hence the Government is planning to set up a US$ 640
million venture capital fund to boost drug discovery and further strengthen the pharmaceutical
sector. According to industry estimates, the Indian pharmaceutical industry produces about
60,000 generic brands in 60 therapeutic categories and manufactures more than 400 different
APIs. Presently, generics dominate the market while the expectations are that patent-protected
products are likely to constitute 10% of the industry cake by 2015. Both Indian and foreign
multinationals are set to launch patented drugs across India. Rural India is likely to witness a
step-up in demand since manufacturers are reaching out to chemists by expanding their
distribution network. Pharma industry is likely to see greater vibrancy when the networks start
to impact manufacturing by 2015. India is considered a high-value hub for clinical trials due to
the presence of genetically diverse population and availability of skilled doctors. In its bid to
step up Indian exports from the present tally of US$ 310 billion and reach a target of US$ 500
billion by 2014, the government believes that pharma is a major thrust sector growing at 15%
annually and generics is a major strength area. Pharma industry is considered a focus area to
achieve the overall target. India is expected to double pharmaceutical exports in the next few
years, with the Pharmaceutical Export Promotion Council (Pharmexcil) eyeing overseas sales
worth US$ 20 billion by the end of 2014-15. The figure stood at around $10 billion in 2010-11
Traditionally India has been exporting to regulated markets, the US and the EU markets
accounting for a major share apart from other regulated markets such as Oceania and Japan
and less regulated markets such as Latin America, Africa and parts of Asia. India witnessed a
phenomenal growth in the EU and North America, with growth in Africa also being spectacular.
In the former markets India has largely been existent in the upper end of the value chain.
Japan offers a fresh opportunity for quality conscious manufacturers. Given the heavy
8
pressure on the health requirements, specially its aging population, Japan which is a US$ 109
billion market, of which generics constitute 8%, has decided to enlarge its generics portfolio.
Japan today represents an opportunity for the Indian pharmaceutical industry. India has also
entered into an FTA with Japan, which is a conscious agreement to mutually increase
cooperation in the pharma sector. An element of this is the fact that Japan has extended
national treatment to Indian companies.
Salient features of the Indian pharma industry are:
Accounts for over 10% of global pharmaceutical production;
Manufactures over 60,000 generic brands across 60 therapeutic categories;
Produces more than 400 different APIs;
Over 120 US FDA and 84 UK MHRA approved manufacturing facilities in India;
Manufacturing cost of Indian pharma companies is up to 65% lower than that of US firms
and almost half of that of European manufacturers;
Lower cost of production and R&D capabilities boosts competitiveness of Indian pharma
companies;
Comparative cost advantage enhances Indian pharma exports; and,
Pharma industry exports amount to approximately US$ 310 bn a year.
Resources refers to skills, energy, talent, abilities and knowledge possessed by humans and
uses them in producing the goods and also in rendering the services.
Management
is
defined as the activity of planning, organizing, staffing, controlling and directing the resources.
So the whole term Human Resource Management refers to controlling, planning and
organizing the men.
developments led to chaos between the workers and the factory owners, a number of
philanthropic employers began to develop a paternalistic care and concern for their
employees. The word Imperialism affected World War-I and its after effects led to Personal
management and emerged with a great power and established a new orthodox. The post
World War-II had very deep interventions in personal management; Government interventions
in the functioning of labor, creating Industrial peace by avoiding Industrial disputes through
special legislatures- Trade unions Act, ID act, Sex discrimination act, Bonus act, Factory act
are some of them. These interventions by government drove the changes in the personal
management strategically into Human Resource Management.
The capitalistic world drives the economy and the pool of companies to face many
challenges, especially in the HRM. It has become more dynamic for the companies to
withstand the socio-economic environment and wide diversifications in the technologies.
Managers of today have to face these dynamic changes with strategic approaches. Some of
the challenges that both managers and the companies face in this environment are- Increasing
the size of the work force, Education level, Deep understanding in technology advances,
Dynamic changes in the political environment, Increasing aspirations of employees, changing
psychosocial systems, computerized information system, Mobility of personnel professional,
changes in the legal environment, management of human relations.
The Hr has undergone a great revolution by questioning the accepted practices and reinventing the organizations and structures, traditional approaches have been thrown outHierarchies are vanishing and there is great emphasis on flat organizations. The new role of
HRM is more strategic than the traditional- A facilitator to change, an integrated approach to
change, as a mediator. Not only in the Roles and responsibilities but also there is a change in
the functions of Hr manager as a Intellectual, Educator, Discriminator, Executive, Leader,
Humanist, Visionary and so on. While practicing as a manager in an organization Hr has to
perform both managerial and operations functions. Managerial functions like planning,
organizing directing and controlling, Operational functions like recruitment, selection, training,
placement and framing Hr policies and also settle industrial disputes.
No organization can exist and function well without formal rules of engagement in
managing the people; these are general guide lines that express how the management
11
intended to manage the people and what is expected of the employees. Policies could be
implicitly embodied in the organizations vision and mission statements or explicitly established
in its strategic plan and human resource strategic plan and they define the values and the
philosophies of the company.
A policy must ensure peoples management in line with the corporate values; Decisions
pertaining to the HR are made consistently, Minimizing the inequality among the Facilitates
decentralization, delegation and local empowerment.
It is a staff function concerned with hiring, motivating and maintaining people in an
organization that human talent is used effectively and efficiently to accomplish organizational
goals. In short, the aim is to achieve mission, vision, goals and objectives of an organization
using people as valuable resource. In comparison with the traditional approach the new
management has intervened into the employee engagement and appraising them for their
performance, Utilizing the staff capacity in most effective way; proper concern for the man
power planning and also for HR metrics are considered- This manifests itself in different
approaches used in job design, recruitment and placement and also includes redesigning of
the jobs, hiring of the multi-skilled employees and so on.
Employee commitment to the work should be encouraged; otherwise, it could result in
the low morale among the employees these can be regularized through minimizing the
conflicts, nurturing and mentoring them, integrating the organizational systems, processes and
activities through synergized approach; in turn a unique culture is made with proper values,
attitudes, norms and practices.
In pursuit, in performing these human resource functions, mangers should be able to
adapt to a dynamic change in the external system interlaying with the organizational goals and
principles. Achieving a dynamic change is not possible with the traditional bureaucratic style or
with adhocracy; a proper decentralized decision making should be made at each and every
level- How the job is done is not an important aspect rather how it is achieved is important.
In decentralization, mangers who are not directly involved in the production line are
considered as the staff managers, who are directly involving in the production line or vertical
line are considered to be line managers. The objectives of human resource management
12
implied that the HR department does not quantify to one department rather it has wider duties
and responsibilities to perform at every vertical and at every level in the organization. So, HR
department has to perform both the Line functions and the Staff functions as well. While
decentralizing the functions, a proper organization structure should be designed in such a way
that decision making level authority and the roles and responsibilities of a job is classified. In
designing the organizational structure, make sure that it should be a rigid structure and proper
concerns should be taken care off.
Organization Structure:
Organizational structure determines
are assigned,
controlled,
and
how
coordinated
the roles,
and
power
how information
and responsibilities
flows between
the
different levels of management. In designing the organization structure choosing weather the
organization to follow functional or divisional structure is mandatory. Effective structure facilities
management and clarifies relationships, roles and responsibilities, levels of authority and
supervisory or reporting lines, overall review of organization structure gives a brief idea to a
manager in determining human financial and technical resources are available and how they
should be allocated, and which resources are lacking. The structure of the organization
describes the functions, tasks and authorities of the departments divisions and individual
employees by maintaining healthy relationship between them, it also describes the number of
employees in each division unit and department on the basis of tasks, functions and authorities
these structural coordinates of different units work in conjunction as organization as a whole.
The structure should be in a way that the organization should enhance its efficiency and
profitability, the duties and responsibilities of those in the company must be identified and the
line of authorities must be carefully delineated, so that all the members of the organization
understands about their job role and responsibilities. This initiative of framing the organization
structure emanates the formal and detailed structure and everyone in the organization will
understand who reports to whom, who are the decision makers and which advisory personnel
is on hand to assist in decision making process. The manager determine the activities in
getting the job finished and writes job description and organize people into groups and assigns
them to supervisors for the establishment of goals and deadlines and establishes standards of
13
performance. Organization in general they choose Matrix type of structure as this structure
proven to be efficient enough in carrying away the daily operations. It is both dynamic and
functional, that it is the combination of two structures and allows team members to share
information more readily across the task boundaries. It also allows for specialization that can
increase depth of knowledge in a specific sector or segment.
There are some proven hardships in its structure, it increases the complexity in the
chain of command and there is wide contrast between the functional and project managers,
which confuses employees in understanding the chain of command. An additional
disadvantage in this structure is superior to sub-ordinate ratio, this result in conflicting loyalties
among the employees. Yet, matrix structure also has significant advantages that make it
valuable for companies, it is designed upon the silo critique of functional management where
it diminishes the vertical structure of functional and creates a more horizontal structure which
helps in spreading of information across departments to be happen quicker. Moreover matrix
structure allows for specialization that can increase depth of knowledge and allows individuals
to choose accordingly to project needs. Individuals and Project needs are interlaid and
produce the concept of maximizing strengths and minimizing weaknesses.
IT Practices:
In new millennium, not only HR practices but also IT practices have been booming.
Evolution of HRM intertwined with developments in IT and describing how IT has played
important role in the HRM function. HRM in the firm has changed over time from primarily
being concerned with routine transactions and traditional HR practices in dealing the complex
issues. Transactional activities are routine book keeping tasks, Traditional HR activities are
focused on HR programs like selection compensation, and performing appraisals. However,
transformational HR activities are those actions of an organization that add value to the
consumption of the firm. Thus, transformational activities increase the strategic importance and
visibility of HR function in the organization. With the intervention of technology into the HR
activities, the whole process of HR has been made easy and quick. This intervention of
technology into the HR is known as HRIS- Human Resource Information Systems, Primary
purpose of HRIS is to provide service with accurate and timely information, to the clients of the
14
system. As a HR information may be used for the strategic, tactical and operational decision
making to avoid litigations, to evaluate day to day programs, policies and also to support daily
operations. All these functions are powered by the information systems and the Internet,
almost every process in every function of HRM has been computerized today.
Electronic Human resource management reflects a philosophy for the delivery of the
HR; it uses informational technology, particularly the web, as the central component of
delivering efficient and effective HR services. Organizations embracing an e-HRM approach
dont simply utilize the technology in the support of the human resources but instead
technology is enabling the HR function to be done differently by modifying the information
flows, social interaction patterns and communication processes.
HRIS comprises the technology and processes underlying this new way of conducting
human resource management. An HRIS include technologies such as databases small
functional systems focused on a single HR application or a large scale, integrated enterprise
resource planning architecture and web based applications, Mobiles and social networking
sites that enable the employees to access the HR data remotely or to connect with others in
the Organization.
Major difference between the HRIS and the E-HRM is that e-HRm tends to be more
application and HR function focused and an HRIS is more focused on the systems and
technology underlying the design and acquisition of systems supporting the move to e-HRM.
Issues such as need analysis, cost benefit analysis and the entire cycle of HRIS
implementation and post-implementation, including project management and change
management should be addressed when implementing HRIS.
Organizational Development:
OD is an educational process designed to change the character or culture of an
organization and to improve organizational performance. Tied closely to societys increasing
concern for the welfare of the worker, OD evolved as an attempt to apply some of the values
and its insight of behavioral scientists to total organizations. A long term effort led and
supported by top management, to improve an organizations visioning empowerment learning
15
Recruitment process:
Traditional recruitment and selection procedures have been around for decades, which
is at odds with the ever changing internal and external environment of organizations. Hence,
practitioners often wonder whether there are any new research-based ways for recruiting and
selecting personnel. Another image problem for recruitment and selection is that a false
dichotomy is often created between so-called macro HR (examining HR systems more
broadly) and micro HR (examining individual differences). It is further sometimes argued that
16
organizations should value macro approaches and write off micro approaches as not being
relevant to the business world. We posit that these image problems and debates only serve to
distract and fracture the field and hide the fact that excellent HR research and practice needs
to take both macro and micro issues into consideration. For example, creating an effective
recruiting strategy (some would describe this as a macro process) requires considerable
understanding of the decision making processes of potential applicants (viewed as micro
processes). The same can be said with respect to designing effective selection systems, etc.
The challenge for many researchers then has been to demonstrate how scientifically derived
recruiting and selection practices add value to organizations. Unfortunately, when the quality
and impact of recruitment and selection procedures for business outcomes are investigated,
they are often described in rather simplistic terms. For example, in large-scale HR surveys
(e.g., Becker and Huselid, 1998; Huselid, 1995; Wright et al., 2001; 2005) sound selection
practice is often equated with whether or not formal tests were administered or whether or not
structured interviews were used. Similarly, effective recruitment is associated with the number
of qualified applicants for positions most frequently hired by the firm. Although such questions
tackle important aspects of recruitment and selection we also feel that such descriptions do not
capture the sophisticated level that recruitment and selection research and practice has
attained in recent years. This oversimplification in largescale HR surveys is understandable
due to the difficulty of getting usable survey data across a diverse set of companies.
Information Technology:
Organizations have had to adjust to the new reality of online recruiting. These
technologies have created both problems and opportunities for organizations. Organizations
can significantly reduce costs to advertise positions by using third party job boards (e.g.,
Monster.com) or through company websites. The inexpensive nature of online recruiting
permits the conveyance of large amounts of information to potential applicants at a minimal
cost relative to traditional advertising venues such as newspapers. Media content can be
substantially richer including graphics, photos, interactive text, and video. The potential also
exists for the immediate tailoring of recruiting information to target the needs of prospective
applicants. For example, after completing a needs questionnaire online, a prospective
17
applicant could conceivably be provided with targeted information about the organization, its
benefit programs, and opportunities that addresses their individual needs. Along these lines
the customized information about likely fit decreased viewing time and recall of low- fitting
individuals, suggesting a means to avoid these individuals of being attracted to the
organization. Clearly, customized realtime recruiting approaches are within the realm of
existing technologies. Despite the benefits and efficiencies of online recruiting, a downside is
that many employers complain about the flood of unqualified applicants that can result from
online advertising. This deluge of applicants can inflict considerable costs on the organization if
the online recruiting process is not accompanied by an effective and efficient screening
technology. The importance of integrating efficient screening tools and online recruitment
needs to be emphasized to a greater extent in HR practice. Researchers have also begun to
focus more specifically on what makes an effective company website for recruiting purposes.
Specifically, these authors suggest that web site content, appearance and navigability are all
important for recruiting purposes. Perceptions of the website aesthetics and usability
accounted for 33 per cent of the variance in pursuit intentions and 31 per cent of the variance
in recommendation intentions. Clearly, investing resources in web site aesthetics such as the
use of pleasing colors, pictures of smiling employees, and easy to navigate functions such as
direct links to application forms can have appreciable benefits for recruiting. Setting up a
recruiting oriented web site (instead of a screening oriented web site) was associated with
significantly higher attraction by prospective applicants.
Research Methodology:
The data for the study recruitment and selection process in Aurobindo was collected
from the companys database. The research was conducted to examine the efficacies of
Recruitment and selection process. The study gives in depth knowledge about of how
effectively; the process is implemented in the organization as a part of HR activities in the
organization.
AIM: To study the contrasting behavior of the traditional practices to the contemporary
practices in Recruitment process at Aurobindo.
Place: Aurobindo Pharma Limited, Hyderabad
18
Research Design:
The inception of the process starts from the collecting the data from the different
sources and getting the numbers, like how many employees were selected to the organization
and to which department they were selected.
Data Sources:
All the data regarding to the study is collected from the Secondary Sources. As the study do
not require any primary sources of data
19
COMPANY PROFILE
20
More than 85% of business coming from international operations across 125+
countries
Vision:
to become Asia's leading and one among the top 15 Generic Pharma companies
in the World by 2015.
21
Corporate Values:
Business Care:
1.
2.
3.
4.
Operational Excellence
Stake Holder Orientation
Quality
Innovation
People Care:
1.
2.
3.
4.
5.
Fairness
Humility
Respect
Synergy
Applied Learning
Organizational Care:
1. Accountability
2. Integrity
3. Achievement
Strength:
Is derived from its robust, vertically integrated infrastructure, intelligent
22
India
Non betalactam
Non-sterile API
Unit VIII
India
Non betalactam
Non-sterile API
Unit XIB
India
Non betalactam
Non-sterile API
Unit XIV
India
Non betalactam
Non-sterile API
Silicon LS
India
Penem
Non-sterile API
Unit IA
India
Cephalosporin
Non-sterile API
Unit VIA
India
Cephalosporin
Sterile API
Unit V
India
SSP
Sterile &
Non-sterile API
Unit IX
India
SSP
Non-sterile API
Unit II
India
Betalactum
Non-sterile
Intermediates
Unit XIU
India
Betalactum
USA
Non betalactam,
Solid Orals
23
Unit III
Unit IV
India
India
Controlled substances
Non betalactam
Non betalactam
India
Non betalactam
Ophthalmic
Solid Orals
AuroNext
India
Penem
Injectables;
Cephalosporin
Unit VIB
India
Orals;
Injectables (EM)
Brazil
Unit XII
Brazi
India
SSP / Amoxi
SSP
Eugia
India
Oncology
Injectables
Injectables and Soft
Hormones
Gel Capsules
Natrol Inc
USA
Nutraceuticals
Solid & Liquid Orals
AuroHealth
USA
Pharma OTC
Liquid Orals
Approved by Regulatory Agencies like USFDA, UKMHRA, WHO, Health Canada, MCC
SA, TGA, ANVISA Brazil
Marketing reach closer to customers:
24
Hungar
Canad
Russia
U.K
swis
Spai
n
US
Malta
Thailan
d
Nigeri
a
Brazi
l
Chin
S.Afri
ca
Australi
a
25
Journey of Aurobindo:
2014: Acquired commercial
operations in 7 Western
European countries from
Actavis and Natrol Inc. a
nutraceuticals company in USA
Differentiated offerings in Oral
& Injectable products
2006: Acquired Milpharm (UK)
2007: Acquired formulations facility
in USA and Pharmacin Netherlands)
* * Leadership in global ARV
generic
1992: Began
exporting to RoW
markets (API)
2010: Commenced
operations of SEZ Unit
VII and Aurolife, USA
facilities
26
FY 2009-10
3651
FY 2010-11
4480
FY 2011-12
4300
FY 2012-13
5451
FY 2013-14
8099
FY 2014-15
29
30
Trainee Position
Trainee Position
Probation Period
Probation Period
Assistant S4
Assistant
Assistant S3
Sr. Assistant
Assistant S2
Executive
Assistant S1
Sr. Executive
Executive E1
Assistant Manger
Executive E2
Deputy Manger
Executive E3
Manger
Executive E4
Sr. Manger
A.G.M
D.G.M
Manager
G.M
Sr. Manager
A.V.P
V.P
it is
33
34
LITERATURE REVIEW
35
Successful human resource should identify human resource needs in the organization.
Once the needs are identified, the process of recruitment or acquisition function starts.
Recruitment is the discovering of potential candidates for actual or anticipated organizational
vacancies. Or, from another perspective, it is a linking activity bringing together those with jobs
to fill and those seeking job. The ideal recruitment effort will attract a large number of qualified
applicants who will take the job if it is offered. It should also provide information so that
unqualified applicants can self select themselves out of job candidacy; this is, a good recruiting
program should attract the qualified and not attract the unqualified. This dual objective will
minimize the cost of processing unqualified candidates
RECRUITMENT:
Introduction People are integral part of any organization today. No organization can run
without its human resources. In todays highly complex and competitive situation, choice of
right person at the right place at right time has far reaching implications for an organization s
functioning. An employee well selected and well placed would not only contribute to the
efficient running of the organization but also offer significant potential for future replacement.
Thus, hiring is an important function. The process of hiring begins with human resource
planning (HRP) which helps to determine the number and type of people an organization
needs. Job analysis and job design enables to specify the task and duties of jobs and
qualification expected from prospective job. HRP, job analysis and job design helps to identify
the kind of people required in an organization and hence hiring. It should be noted that hiring is
an ongoing process and not confined to formative stages of an organization. Employees leave
the organization in search of greener pastures, some retire and some die in the saddle. More
importantly an enterprises grows, diversifies, take over the other units all necessitating hiring of
new men and women. In fact the hiring function stops only when the organization ceases to
exist
Definition:
Recruitment According to Edwin B. Flippo, Recruitment is the process of searching
the candidate for employment and stimulating them to apply for jobs in the organization.
(Flippo, 1984) It is the activity which links the employer and the job seekers. According to
36
37
Determine present and future requirements of the organization in conjunction with its
personnel planning and job analysis activities.
Recruitment is the process which links the employers with the employees.
Increase the pool of job candidates at minimum cost.
Help increase the success rate of selection process by decreasing number of visibly under
qualified or overqualified job applicants.
Help reduce the probability that job applicants once recruited and selected will leave the
organization only after a short period of time.
Meet the organizations legal and social obligations regarding the composition of its
workforce.
Begin identifying and preparing potential job applicants who will be appropriate candidates.
Increase organization and individual effectiveness of various recruiting techniques and
sources for all types of job applicants
Steps in Recruitment:
The process of recruitment can be divided into following steps:
Identification of job vacancy
Job Description and person specification
Advertise the vacancy
Manage the response
Short-listing
Arranging interview
38
applicants has to be managed for further short listing. This stage may involve scheduling of
candidates or informing them about next stage of recruitment, collecting more information
about applicants etc
Short listing of Applicants: After receiving the applications and details about applicants, a
short-listing has to be done in order to find people with most appropriate skills and
qualifications required for the job and to reject any under-qualified candidate. This stage helps
in saving a lot expenditure and time which is to be incurred in later stages of hiring. It also
increases the chances of finding the best fit for the job.
Sources of Recruitment
The sources of recruitment can be broadly classified into 2 types:
Internal sources of recruitment
External sources of recruitment
Job vacancy can also be posted on company notice board for finding a suitable candidate from
within the organization
Motivated
Disadvantages
employees
Higher morale
promotions
Industrial Peace
hampered
Relatively inexpensive
Disadvantages
Qualified Personnel
Dissatisfaction
Wider Choice
staff
Fresh Talent
Competitive Spirit
adjustment period)
Lengthy
amongst
process
existing
(Increased
Costly Process
Uncertain Process
External
43
Recruitment Policy
Labour Market
Cost
Competitors
Internal Factors
1. RECRUITMENT POLICY: The recruitment policy of an organization specifies the
objectives of recruitment and provides a framework for implementation of recruitment
strategy. It may involve organizational system to be developed for implementing
recruitment strategies and procedures by filling up vacancies with best qualified people.
The recruitment policies of an organization may be affected by following factors:
Organizational Objectives
Personnel policies of the organization
Government policies on reservation
Preferred sources of recruitment
Need of the organization
Recruitment costs and financial implications
44
3. SIZE OF THE FIRM: The size of the firm is an important factor in recruitment process. If the
organization is planning to increase its operations and expand its business, it will think of
hiring more personnel, which will handle its operations.
4. COST: Recruitment incur cost to the employer, therefore, organizations try to employ that
source of recruitment which will bear a lower cost of recruitment to the organization for each
candidate.
5. GROWTH AND EXPANSION: Organization will employ or think of employing more
personnel if it is expanding its operations.
External Factors
1. SUPPLY AND DEMAND: The availability of manpower both within and outside the
organization is an important determinant in the recruitment process. If the company has a
demand for more professionals and there is limited supply in the market for the professionals
demanded by the company, then the company will have to depend upon internal sources by
providing them special training and development programs.
2. LABOUR MARKET: Employment conditions in the community where the organization is
located will influence the recruiting efforts of the organization. If there is surplus of manpower
at the time of recruitment, even informal attempts at the time of recruiting like notice boards
display of the requisition or announcement in the meeting etc will attract more than enough
applicants
3. EMPLOYERS BRAND/ GOODWILL: Image of the employer can work as a potential
constraint for recruitment. An organization with positive image and goodwill as an employer
finds it easier to attract and retain employees than an organization with negative image. Image
of a company is based on what organization does and affected by industry.
4. POLITICAL-SOCIAL- LEGAL ENVIRONMENT: Various government regulations prohibiting
discrimination in hiring and employment have direct impact on recruitment practices. For
example, if Government introduces legislation for reservation in employment for scheduled
castes, scheduled tribes, physically handicapped etc. it becomes an obligation for the
45
employer. Also, trade unions play important role in recruitment. This restricts management
freedom to select those individuals who it believes would be the best performers.
5. COMPETITORS: The recruitment policies of the competitors also affect the recruitment
function of the organizations. To face the competition, many a times the organizations have to
change their recruitment policies according to the policies being followed by the competitors.
2. POACHING/RAIDING:
Buying talent (rather than developing it) is the latest mantra being followed by the
organizations today. Poaching means employing a competent and experienced person already
working with another reputed company in the same or different industry; the organization might
be a competitor in the industry. A company can attract talent from another firm by offering
attractive pay packages and other terms and conditions, better than the current employer of
the candidate. But it is seen as an unethical practice and not openly talked about. Indian
software and the retail sector are the sectors facing the most severe brunt of poaching today. It
has become a challenge for human resource managers to face and tackle poaching, as it
weakens the competitive strength of the firm.
3. E-RECRUITMENT
46
E- Recruitment is the use of technology to assist the recruitment process. Many big
organizations use Internet as a source of E-Recruitment. They advertise job vacancies through
worldwide web. The job seekers send their applications or curriculum vitae i.e. CV through e
mail using the Internet. Alternatively job seekers place their CV s in worldwide web, which can
be drawn by prospective employees depending upon their requirements. The two kinds of erecruitment that an organization can use are
Job portals i.e. posting the position with the job description and the job specification on the
job portal and also searching for the suitable resumes posted on the site corresponding to the
opening in the organization.
Creating a complete online recruitment/application section in the companys own website.
Companies have added an application system to in their website, where the passive job
seekers can submit their resumes into the database of the organization for consideration in
future, as and when the roles become available.
4. RECRUITMENT STRATEGIES:
Recruitment is of the most crucial roles of the human resource professionals. The level
of performance of an organization depends on the effectiveness of its recruitment function.
Organizations have developed and follow recruitment strategies to hire the best talent for their
organization and to utilize their resources optimally. A successful recruitment strategy should
be well planned and practical to attract more and good talent to apply in the organization. For
formulating an effective and successful recruitment strategy, the strategy should cover the
following elements:
1. Identifying and prioritizing jobs: Requirements keep arising at various levels in every
organization; it is almost a never-ending process. It is impossible to fill all the positions
immediately. Therefore, there is a need to identify the positions requiring immediate attention
and action. To maintain the quality of the recruitment activities, it is useful to prioritize the
vacancies whether to focus on all vacancies equally or focusing on key jobs first.
2. Candidates to target: The recruitment process can be effective only if the organization
completely understands the requirements of the type of candidates that are required and will
be beneficial for the organization. This covers the following parameters as well:
47
Performance level required: Different strategies are required for focusing on hiring high
performers and average performers.
Experience level required: the strategy should be clear as to what is the experience level
required by the organisation. The candidate s experience can range from being a fresher to
experienced senior professionals Category of the candidate: the strategy should clearly define
the target candidate. He/she can be from the same industry, different industry, unemployed,
top performers of the industry etc.
3. Sources of recruitment: The strategy should define various sources (external and internal)
of recruitment. Which are the sources to be used and focused for the recruitment purposes for
various positions? Employee referral is one of the most effective sources of recruitment.
4. Trained recruiters: The recruitment professionals conducting the interviews and the other
recruitment activities should be well-trained and experienced to conduct the activities. They
should also be aware of the major parameters and skills (e.g.: behavioral, technical etc.) to
focus while interviewing and selecting a candidate.
5. How to evaluate the candidate: The various parameters and the ways to judge them i.e.
the entire recruitment process should be planned in advance. Like the rounds of technical
interviews, HR interviews, written tests, psychometric tests etc
SELECTION:
48
The selection process is a decision making process. This step consists of a number of
activities. A candidate who fails to qualify for a particular step is not eligible for appearing for
the subsequent step. Employee Selection is the process of putting right men on right job. It is a
procedure of matching organizational requirements with the skills and qualifications of people.
Effective selection can be done only when there is effective matching. By selecting best
candidate for the required job, the organization will get quality performance of employees.
Moreover, organization will face less of absenteeism and employee turnover problems. By
selecting right candidate for the required job, organization will also save time and money.
Proper screening of candidates takes place during selection procedure. All the potential
candidates who apply for the given job are tested. The process of selection starts with
preliminary interview of candidates and ends with contract of employment. Following are the
steps which are generally involved in any selection process:
Preliminary Interview:
The applications received from job seekers are subjected to scrutiny, so as to eliminate
unqualified applicants. This is usually followed by a preliminary interview the purpose of which
is more or less the same as scrutiny of application, that is, eliminate of unqualified applicants.
Scrutiny enables the HR specialists to eliminate unqualified jobseekers based on the
information supplied in their application forms. Preliminary interview, on the other hand, helps
reject misfits for reason, which did not appear in the application forms. Besides, preliminary
interview, often called courtesy interview, is a good public relation exercise. 1.2.2 Selection
Test Job seekers who pass the screening and the preliminary interview are called for tests.
Different types of tests may be administered, depending on the job and the company.
Generally, tests are used to determine the applicant s ability, aptitude and personality.
Following are the types of tests which may be used:
1. Ability test: Assists in determining how well an individual can perform tasks related to the
job. An excellent illustration of this is the typing tests given to a prospective employee for
secretarial job. Also called as ACHEIVEMENT TESTS . It is concerned with what one has
accomplished. When applicant claims to know something, an achievement test is taken to
measure how well they know it. Trade tests are the most common type of achievement test
given. Questions have been prepared and tested for such trades as asbestos worker, punch49
press operators, electricians and machinists. There are, of course, many nonstandardized
achievement tests given in industries, such as typing or dictation tests for an applicant for a
stenographic position.
2. Aptitude test: Aptitude tests measure whether an individual has the capacity or latent
ability to learn a given job if given adequate training. The use of aptitude test is advisable when
an applicant has had little or no experience along the line of the job opening. Aptitudes tests
help determine a persons potential to learn in a given area. An example of such test is the
general management aptitude tests (GMAT), which many business students take prior to
gaining admission to a graduate business school programme. Aptitude test indicates the ability
or fitness of an individual to engage successfully in any number of specialized activities. They
cover such areas as clerical aptitude, numerical aptitude, mechanical aptitude, motor coordination, finger dexterity and manual dexterity. These tests help to detect positive-negative
points in a persons sensory or intellectual ability. They focus attention on a particular type of
talent such as learning or reasoning in respect of a particular field of work. They can be of
three types which are as follows:
Mental or Intelligence Test: They measure the overall intellectual ability of a person and
enable to know whether the person has the mental ability to deal with certain problems.
Mechanical Aptitude Test: They measure the ability of a person to learn a particular type of
mechanical work. These tests helps to measure specialized technical knowledge and problem
solving abilities if the candidate. They are useful in selection of mechanics, maintenance
workers, etc.
Psychomotor or Skill Test: They are those, which measure a person s ability to do a specific
job. Such tests are conducted in respect of semiskilled and repetitive jobs such as packing,
testing and inspection, etc.
3. Intelligence test: This test helps to evaluate traits of intelligence. Mental ability, presence of
mind (alertness), numerical ability, memory and such other aspects can be measured. The
intelligence test is probably the most widely administered standardized test in industry. It is
taken to judge numerical, skills, reasoning, memory and such other abilities.
50
4. Interest Test: This is conducted to find out likes and dislikes of candidates towards
occupations, hobbies, etc. such tests indicate which occupations are more in line with a
persons interest. It is used to measure an individual s activity preferences. This test is
particularly useful for students considering many careers or employees deciding upon career
changes. Such tests also enable the company to provide vocational guidance to the selected
candidates and even to the existing employees.
5. Personality Tests: It is conducted to judge maturity, social or interpersonal skills, behaviour
under stress and strain, etc. this test is very much essential on case of selection of sales force,
public relation staff, etc. where personality plays an important role.
6. Projective Tests: This test requires interpretation of problems or situations. For example, a
photograph or a picture can be shown to the candidates and they are asked to give their views,
and opinions about the picture.
7. Graphology Test: It is designed to analyze the handwriting of individual. It has been said
that an individuals handwriting can suggest the degree of energy, inhibition and spontaneity,
as well as disclose the idiosyncrasies and elements of balance and control. For example, big
letters and emphasis on capital letters indicate a tendency towards domination and
competitiveness. A slant to the right, moderate pressure and good legibility show leadership
potential.
8. Perception Test: At times perception tests can be conducted to find out beliefs, attitudes,
and mental sharpness.etc.
9. General Knowledge Test: days G.K. Tests are very common, they are used for finding
general awareness of the candidates in the field of sports, politics, world affairs, current affairs.
10. Polygraph Test: Polygraph is a lie detector, which is designed to ensure accuracy of the
information given in the applications. Department store, banks, treasury offices and jewellery
shops, that is, those highly vulnerable to theft or swindling may find polygraph tests useful.
Interview:
The next step in the selection process is an interview. Interview is formal, in-depth
conversation conducted to evaluate the applicant s acceptability. It is considered to be
51
excellent selection device. It is face-to-face exchange of view, ideas and opinion between the
candidates and interviewers. Basically, interview is nothing but an oral examination of
candidates. Interview can be adapted to unskilled, skilled, managerial and profession
employees. Interviews can be of various types depending upon the setting, number of
interviewers, structuring. Some of them are as follows:
1. Non- Directive Interview: Non-directive interview or unstructured interview is designed to
let the interviewee speak his mind freely. The interviewer has no formal or directive questions,
but his all attention is to the candidate. He encourages the candidate to talk by a little prodding
whenever he is silent e.g. Mr. Ray, please tell us about yourself after your graduation from
high school. The idea is to give the candidate complete freedom to sell himself, without the
encumbrances of the interviewers question. But the interviewer must be of higher calibre and
must guide and relate the information given by the applicant to the objective of the interview.
2. Stress Interview: It is designed to test the candidate and his conduct and behaviour under
conditions of stress and strain. The interviewer may start with Mr. Joseph, we do not think
your qualifications and experience are adequate for this position, and watch the reaction of
the candidates. A good candidates will not yield, on the contrary he may substantiate why he is
qualified to handle the job. This type of interview is borrowed from the Military organisation and
this is very useful to test behaviour of individuals when they are faced with disagreeable and
trying situations.
3. Panel Interview: A panel or interviewing board or selection committee may interview the
candidate, usually in the case of supervisory and managerial positions. This type of interview
pools the collective judgment and wisdom of the panel in the assessment of the candidate and
also in questioning the faculties of the candidate.
4. Structured Interview: A panel or interviewing board or selection committee may interview
the candidate, usually in the case of supervisory and managerial positions. This type of
interview pools the collective judgment and wisdom of the panel in the assessment of the
candidate and also in questioning the faculties of the candidate.
5. Unstructured Interview: It is also known as Un-patterned interview, the interview is
largely unplanned and the interviewee does most of the talking. Unstructured interview is
52
preferable because they are already aware of the applicant s performance. But, the problem
with this reference is the tendency on the part of the previous employers to over-rate the
applicants performance just to get rid of the person.
Organisations normally seek letter of reference or telephone references. The latter is
advantageous because of its accuracy and low cost. The telephone reference also has the
advantage of soliciting immediate, relatively candid comments and attitude can sometimes be
inferred from hesitations and inflections in speech.
Selection decision:
After obtaining information through the preceding steps, selection decision (the most critical of
all the steps) must be made. The other stages in the selection process are meant for narrowing
down the number of the candidates. The final decision has to be made from pool of individuals
who pass the tests, interviews and reference checks. The view of the line manager is generally
considered in the final selection because it is he/she who is responsible for the performance of
the new employee. The supervisor is better able to evaluate the applicant's technical
capabilities and is in a better position to answer the interviewee's job-related questions.
Further, the supervisor's personal commitment to the success of the new employee is higher if
the supervisor has played a role in the hiring decision.
In fact, in a majority of firms, the supervisor has the authority to make the final hiring
decision. In these cases, it is the role of the HR department to do the initial screening and to
ensure that hiring does not violate laws such as Human Rights legislation or Labour legislation.
This step may or may not be followed be followed by realistic job previews which involves
showing the applicant(s) the job site in order to acquaint them with the work setting, commonly
used equipment, and prospective co-workers . The realistic job preview is intended to prevent
initial job dissatisfaction with a job by presenting a realistic view of the job. Research shows
that job turnover is lower when realistic job previews are used.
Physical Examination:
54
After the selection decision and before the job offer is made, the candidate is required to
undergo a physical fitness test. A job offer is, often, contingent upon the candidate being
declared fit after the physical examination. The results of the medical fitness test are recorded
in a statement and are preserved in the personnel records. There are several objectives
behind a physical test. Obviously, one reason for a physical test is to detect if the individual
carries any infectious disease. Secondly, the test assists in determining whether an applicant is
physically fit to perform the work. Thirdly, the physical examination information can be used to
determine if there are certain physical capabilities, which differentiate successful and less
successful employees. Fourth, medical check-up protects applicants with health defects from
undertaking work that could be detrimental to them or might otherwise endanger the
employers property. Finally, such an examination will protect the employer from workers
compensation claims that are not valid because the injuries or illness were present when the
employee was hired.
Job Offer:
The next step in the selection process is job offer to those applicants who have crossed all the
previous hurdles. Job offer is made through a letter of appointment. Such a letter generally
contains a date by which the appointee must report on duty. The appointee must be given
reasonable time for reporting. This is particularly necessary when he or she is already in
employment, in which case the appointee is required to obtain a relieving certificate from the
previous employer. Again, a new job may require movement to another city, which means
considerable preparation, and movement of property.
Contract of Employment:
55
After the job offer has been made and the candidate accepts the offer, certain documents
need to be executed by the employer and the candidate. One such document is the attestation
form. This form contains vital details about the candidate, which are authenticated and attested
by him/her. Attestation form will be a valid record for the future reference. There is also a need
for preparing a contract of employment. The basic information that should be included in a
written contract of employment will vary according to the level of the job, but the following
checklist sets out the typical headings:
1. Job title
2. Duties, including a parse such as The employee will perform such duties and will be
responsible to such a person, as the company may from time to time direct.
3. Date when continuous employment starts and the basis for calculating service.
4. Rate of pay, allowance, overtime and shift rates, method of payments.
5. Hours of work including lunch break and overtime and shift arrangements.
6. Holiday arrangements:
i. Paid holidays per year.
ii. Calculation of holiday pay.
iii. Qualifying period.
iv. Accrual of holidays and holiday pay.
v. Details of holiday year.
vi. Dates when holidays can be taken.
vii. Maximum holiday that can be take at any one time.
viii. Carryover of holiday entitlement.
ix. Public holidays.
7. Length of notice due to and from employee.
56
57
How cost-effective was the advertising? A simple way to measure is to divide the cost (not
only in dollars but in your time) by either the number of total applicants or the number of
applicants that you considered seriously.
Were there questions that needed to be asked but weren't?
How well did the interviewers do? One way to determine this is to ask the new employee to
critique the interviewing process.
Did employment tests support or help the hiring decision? If not, maybe the firm will have to
reconsider the kinds of tests it is administering. Further, the evaluation process should help the
firm decide if the cost and time involved in the testing is worth it. Would you have come to the
same hiring decision without testing?
58
59
Data Analysis: In grasping the contrast behavior of the traditional an contemporary practices
at Aurobindo. The data was classified into Contemporary and Traditional
In Contemporary: Job Portals and Employee Data base
In Traditional: Internal Reference and Auroparichay
Case 1: Contemporary
Case 2: Traditional
Sample: 322
Duration: October 2014 March 2015
Statistical Tool used: Chi square and Annova
Chi Square: It defines the behavior of the data, whether the data draws any relation between
them are not
Annova: It defines significance of the data and also defines the scope for the data.
Statistics
Job
Employee
Internal
Auroparicha Consultanc
Portals
data base
Reference
Total
Valid
108
17
131
47
19
322
Missing
214
3.64
1.249
1.560
305
3.24
.903
.816
191
3.67
1.126
1.268
275
3.36
1.169
1.366
303
3.47
1.073
1.152
0
3.59
1.163
1.352
Mean
Std. Deviation
Variance
60
61
62
Hypothesis:
H0 = Job portal and Contemporary do not depend on each other
H1 = job portal and Contemporary depend on each other
H0 = Employee data base and Contemporary do not depend on each other
H1 = Employee data base and Contemporary depend on each other
Test Statistics
Job Portals
Chi-Square
Df
Asymp. Sig.
64.444
5
.000
Hypothesis:
H0 = Internal reference and Traditional do not depend on each other
H1 = Internal reference and Traditional depend on each other
H0 = Auroparichay and Traditional do not depend on each other
H1 = Auroparichay and Traditional depend on each other
Test Statistics
Internal Reference
Chi-Square
Df
Asymp. Sig.
47.893
4
.000
Auroparichay
28.638b
4
.000
Hypothesis:
H = There are no significant differences
63
Chi-Square Tests
Value
df
31.849a
16
.010
Likelihood Ratio
31.966
16
.010
Linear-by-Linear
Association
2.212
.137
N of Valid Cases
178
Pearson Chi-Square
Hypothesis:
H = There are no significant difference existed between Contemporary and requirement
H = There are Significant differences exited
Chi-Square Tests
Value
Pearson
Df
Chi- 14.038 20
Square
Likelihood Ratio
Linear-by-Linear
Association
N of Valid Cases
15.729 20
.209
1
.733
.648
125
ANOVA
Sum
Job Portals
Between
of
Mean
Squares
df
Square
Sig.
4.289
1.072
.695
.597
103
1.543
107
4
.113
.107
.978
Groups
Within Groups 158.896
Employee
base
Total
data Between
163.185
.452
64
Groups
Within Groups 12.607
12
Total
16
13.059
1.051
ANOVA
Sum
of df
Squares
Internal
Between
Reference
Groups
Auroparichay
Mean
Sig.
3.527
.009
.241
.913
Square
16.604
4.151
126
1.177
Total
Between
130
4
.353
42
1.463
Total
46
164.885
1.412
Groups
62.851
ANOVA
Sum
Mean
Squares
df
Square
Sig.
3.512
.878
.589
.671
120
1.490
182.368
18.034
124
4
4.508
3.661
.007
173
1.231
Total
177
CONTEMPORA Between
RY
of
Groups
Within Groups 178.856
Total
TRADITIONAL Between
Groups
231.062
65
Hypothesis:
Ho = c = T
H1 = c T
ANOVAb
Sum
Model
1
Squares
of
Df
Mean Square F
Sig.
Regression 2.827
1.414
.375a
Residual
174.405
122
1.430
Total
177.232
124
.989
Chi Square:
Table 1:
p = 0.05, significant value for the job portals is 0.0001 which is p > 0.0001 so hence null
hypothesis is rejected
p = 0.05, significant value for the employee data base is 0.065 which is p < 0.065, hence null
hypothesis is accepted
Table 2
p = 0.05, significant value for the internal reference is 0.0001 where p > 0.0001 so hence null
hypothesis is rejected
p = 0.05, significant value for the Auroparichay is 0.0001 where p > 0.0001 so hence null
hypothesis is rejected.
Table 3:
p = 0.05, significant value for the Contemporary is .829, where p > 0.829, so hence null
hypothesis is rejected
66
p = 0.05, significant value for the Traditional is 0.010, where p > 0.010, so hence null
hypothesis is accepted.
Annova:
Table 1:
p = 0.05, significant value for the Job portals and employee data base the significance for both
of the is equal to .597 and .978 where both are greater than .05 and hence both are not
significant.
Table 2:
p = 0.05, significant value for the internal reference and Auroparichay is 0.09 and 0.913where
internal reference is less than 0.05 hence it is effective and Auroparichay is greater than 0.05
and hence it is not significant
Table 3:
p = 0.05, significant value for the traditional practices and contemporary practices is 0.007
and .671where traditional practices is less than 0.05 and hence is significant and
Contemporary is .671 and hence is not significant
Table 4:
Null hypothesis is rejected since significant value is greater than 0.05.
67
FINDINGS:
1. From the data one can infer that the internal referrals are more compared to other
2.
3.
4.
5.
6.
7.
8.
9.
15. Both job portals and Employee data base will not be effective on the current
recruitment practices.
16. Internal referrals will be effective compared with Auroparichay.
CONCLUSIONS
69
CONCLUSIONS:
It is opaquely anticipated that traditional approach tops the table, Data after processing
also exhibited the similar tendencies.
Chi square static clearly denied the dependency between the Employee data base and
the Contemporary approach, the organization have a good gap to develop itself in this
specified area. So it straightly points out that the organization should strive for building
up good candidates data base, so the company might reduce its recruitment cost.
From the Data it is also observed that, Internal Reference tops the list, which means the
employees working in the organization are satisfied the most.
There has been a huge contrasting difference existed between the traditional and
contemporary approaches to the recruitments. The difference in means in both of the
approaches is huge. There is an eminent necessity in reducing the gap for a better
momentum in the growth.
Pre processed data, which is presumed to show contrasting behavior, analyzed data
resulted in proving the significant differences in Contemporary approach with respect to
the Traditional approach resulting in no differences existed.
BIBILOGRAPHY:
1. Beach, D. S. (1975). Personnel : the management of people at work. New York:
Macmillan.
2. Flippo, E. B. (1984). Personnel Management (Sixth Edition ed.). (K. A. Meyer, Ed.)
Singapore: Mc Graw- Hill Book Company.
70
3. Nair, N.G. and Nair, Latha. (2004). Personnel Management and Industrial Relations, S.
Chand
4. http://www.citehr.com/128473-hr-challenges-retail.html
5. http://www.managementstudyguide.com/employee-selection-process.htm
6. http://economictimes.indiatimes.com/articleshow/2726034.cms
7. www.aurobindopharma.com
8. www.ibef.com/pharmaceuticals
9. Pharmaceuticals.gov.in
10. Chemicals.nic.in/pharma
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