1.

1 INTRODUCTION

Recruitment and Selection:

Human Resource Planning (HRP) aims to determine the number and type of
people of a job and the qualifications expected from the prospective jobholders. The next
step is hiring the right number of people, of the right type to fill the jobs.
The job analysis and job design specifies the tasks and duties involve the following
two broad groups of activities.
Recruitment
Selection

RECRUITMENT:
DEFINITION:
Recruitment is the process of finding and attracting capable applicants for
employment, where the entire process begins when new recruits are sought and ends
when their applications are submitted, resulting in a pool of applicants are submitted,
resulting in a pool of applicants from which new employees are selected.
In general, recruitment is the process of searching for and obtaining applicants for
jobs, among whom the right people are selected.
Recruitment as the process of searching for prospective employees and stimulating them
to apply for jobs in the organization.
-------------Edwin B Flippo
It is the process of differentiating between applicants in order to identify those with a
greater likelihood of success in a job.

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Importance of Recruitment:
Determine the present and futuristic requirements of an organization with regard
to the personnel planning and job analysis activities.
Enhance and increase the job applicant pool at minimum cost
Increase the success rate of selection process by reducing the number of under
qualified, overqualified or unfit job applicants.
To ensure that the probability of turnover rate is the lowest.
Meet the organizations legal and social obligations regarding the composition of
its work force.
Begin identifying and preparing the potential job applicants who will be the
appropriate candidates.
Increase the organizational and individual effectiveness in both short term as well
as long term.
Evaluate the effectiveness of various recruiting techniques and sources for all
types of job applicants

Factors governing Recruitment:

There are two types of factors, which influence the recruitment.
External.
Internal.

External:
Supply and demand of the specific skill in the labor market.
Unemployment rate.
Labor market conditions.
Political and legal considerations.
Companys image.

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Internal:
Recruitment policy of the company
Temporary and part time employees
Local citizens.
Size of the organization.
Cost of the organization.
Growth and expansion of the organization.

Types of Recruitment:
Generally there are two types of recruitment namely:
Internal Recruitment.
External Recruitment.

Internal Recruitment:
Internal recruitment seeks applicants for job positions from those who are currently
employed by the company, these internal sources include
Present employees
Employee referrals
Former employees
Previous applicants

External Recruitment:
External recruitment is done through sources external to the organization like
Advertisements
Employment exchanges
Campus interviews
Walk-ins / write-ins/ talking
Consultants

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 Acquisitions and mergers

Competitors

RECRUITMENT PROCESS
The recruitment process comprises of the following stages:
Planning
Strategy development
Searching
Evaluation and control
1. Planning:
Recruitment planning involves the translation of likely job vacancies and information
about the nature of these jobs into specific categories specifying
Number
Type of applicants to be contacted
The type of people who need to be informed about the job openings, which basically
depends on the tasks and responsibilities involved and the qualification and experience
expected these details could be obtained through Job description & Job specification.
2. Strategy development:
Decision on recruiting employees
Technological sophistication
Geographic distribution of labor market
Sources of recruitment
Sequencing the activities in the recruitment process.

3. Searching:
Once the recruitment plan and strategy are worked out, we can start with the search
process, this basically involves two steps

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 Source activation
Selling

4. Evaluation and Control:

Evaluation and control is very crucial for the recruitment process as it helps to
control the various costs incurred during the process. Some of the costs incurred are
Salaries for the recruiters
The time spent by the management and professionals for various

activities like

job description, job specification, advertisements etc.

The cost of advertisements and other recruitment methods
Recruitment overheads and other expenses
Cost of producing supporting literature
When the vacancies are unfilled, there is cost of overtime and outsourcing.
The evaluation is done for both the recruitment process and the recruitment
methods.

Recruitment Process Evaluation:

The recruitment process can be evaluated by keeping the following objectives in
mind namely
Number of suitable candidates for selection
Retention and performance of the candidates selected
Cost of the recruitment process
Time-lapse data.

Evaluation Of Recruitment Methods

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 Number of profiles received

Number of short listed candidates at various stages of the recruitment and
selection process
Number of candidates recruited

SELECTION:
Definition:
Selection is the processes of differentiation between applicants in order to
identify and also hire those with a greater likelihood of success in a job.
In other words selection is the process of picking individuals out of the entire pool
of job applicants with requisite qualifications and competence to fill jobs in an
organization.

Role of Selection:
The selection process plays a crucial role in organizational effectiveness in the following
ways

Work Performance:
The work performance differs from individual to individual, as it basically
depends on individuals. The best way to improve the work performance is to hire people
with the competence and the willingness to work.
Inappropriate selection processes may affect individual employee morale,
demotivate and demoralize them, also causing increase in the attrition rate.

Cost Control:
The cost incurred in recruiting and hiring personnel speaks volumes about the
selection process. There are different types of costs incurred by the company like
Cost of employment
Costs associated with the transfer, training, or termination of the service

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Of the employee
Costs related to absenteeism, absconding, production etc.

SELECTION PROCESS:
Selection is the process starting with the preliminary interview of the candidate
and finally ending with the employment contract.
The general selection process consists of the following stages
Preliminary interview
Selection test
Employment interview
Selection decision
Reference and background check
Physical examination
Job offer
Employment contract
Evaluation.

Preliminary Interview:
All the profiles that are received from the job seekers are scrutinized so as to
eliminate unqualified applicants. This process helps the HR specialists to eliminate the
unqualified applications and misfits based on the information provided. This interview
also helps reject the misfits based on the information not provided in the application.

Selection Tests:
Candidates who clear the preliminary interview come for the screening tests.
There are different types of tests like ability tests, aptitude tests, personality tests, these
tests are used to determine the persons potential, assess the personality, (i.e. selfAPGCCS, Rajampet

sufficiency, sociability introversion. extroversion, locus of control and self confidence)

assess individual achievement and motivational levels etc.

Employment Interviews:
Interviews are in-depth conversation conducted to evaluate the applicants
acceptability an interview allows the two-way exchange of information between the
candidate and employer. The interview can be one to one, sequential or panel, depending
on the situation and the need.

The Objectives Of Interviews Are:

To facilitate the general information flow across to the applicant on company
policies, job description etc.
To help build the companys image among the applicants
To help and obtain additional information from the candidates.

Selection Decision
The final decision is made from the pool of candidates who clear the tests,
interviews etc. The HR manager plays a crucial role in the selection decision. The views
of the HR manager are considered as he/she will be finally responsible for the
performance of the new employee.

Reference and Background Checks:

The company requests for the names, addresses and telephone numbers of the
references for the purpose of verifying information and gaining more information about
the applicant, previous employers, professors, neighbors, friends and well known people
can be considered as references.

Physical Examination:

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After selection, a candidate has to go through the physical examination so as to be

declared fit for the job. The physical examination is done.
To detect if the individual carries any infectious disease.
To check for the candidates physical fit to perform the current job.

Job Offer:
The selected candidates are given the job offer, which is made through the appointment
letter. The appointee is given sufficient time to report on duty. In case the appointee is
already serving elsewhere, then he /she is required to obtain a relieving certificate from
the previous employee.

The different sources of recruitment in India have been classified as:

Within the organization
Badli or temporary workers
Employment agencies
Casual callers
Applicants introduced by friends and relatives in the organization.
Advertisements
Labor contractors.
According to the survey of public and private sector employees the methods were used to
recruit employees.
In the private sector (software companies), the major sources of recruitment in order of
preferences are:
Online advertisements
Newspaper advertisements
Job fairs
Consultancy
Employee referral

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 Institutions
Internal advertisements
Job portals
In the public sector the sources for recruitments are:
Employment exchange
External advertisements
Internal advertisements
Central training institutions
Introduction by the liaison officer of a corporation
Deputation personnel
Transfer from other public undertaking
In some organizations, preferences were given to sons and relatives of employees and to
local people in order of preference.
The major sources are:
Advertisements
Employment exchange
Relatives and friends
Casual caller
Employee recommendation

Those involved in the recruitment and selection process in the department,

should:
Ensure selection and recruitment of staff is given a high priority within their area
of responsibility.
Make a selection on the basis of merit.

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 Ensure that the processes are transparent and free from patronage, favoritism or
unjustified discrimination.
Apply equity and procedural fairness in making a staff selection or recruitment
decisions.
Ensure all documentation in the selection process is accessible to appropriate
people, accurate and high quality.
Understand their role, and be appropriately skilled in the process to fulfill their
role in the selection process.

1.2 INDUSTRY PROFILE

Introduction
Cement Industry:Cement Industry originated in India when the first plant commenced production in 1914
at Porbandar, Gujarat. The industry has since been growing at a steady pace, but in the
initial stage, particularly during the period before Independence, the growth had been
very slow. Since indigenous production was not sufficient to meet the entire domestic
demand, the Government had to control its price and distribution statutorily. Large
quantities of cement had to be imported for meeting the deficit. The industry was partially
decontrolled in 1982 and this gave impetus to its pace of growth. Installed capacity
increased to more than double from 27 million tons in 1980-81to 62 million tons in 198990.
The cement industry responded positively to liberalization policy and the
Government decontrolled the industry fully on 1st March 1989. From 1991 onwards
cement industry got the status of a priority industry in schedule III of the industry policy
statement, which made it eligible for automatic approval for foreign investment up to
51% and also for technical collaboration on normal terms of payment of royalty.
After the globalization and liberalization of Indian economy, the cement industry
has been growing rapidly at an average rate of 9 per cent. The country is now the second

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largest producer of cement in the world next only to China with a total capacity of 217.80
million tones. Additionally, in the last two decades, the industry has undergone rapid
technological up gradation and growth, and now, some of the cement plants in India are
comparable to the worlds best operating plants in all respects.
Till a few years ago India was importing cement from other countries, as the
production could not meet the demand for the whole country. Now the tables have turned
as India has started exporting large quantities of cement and clinker to Bangladesh,
Nepal, Sri Lanka, Maldives, Mauritius, Africa, Seychelles, Burma, UAE, and Singapore.

Profile
India is the second largest cement producing countries after China. Spread across
the length & breadth of the country, at present, there are about 60 cement companies with
134 major plants and an installed capacity of around 153.7 million tonnes. Besides, there
are 60 surviving tiny and mini cement plants with a capacity of 6.3 million tonnes.
The Indian Cement Industry plays a key role in the national economy, generating
substantial revenue for the state and central governments.

In terms of quality,

productivity, and efficiency, it compares with the best anywhere. It is almost entirely
home grown, built indigenously and using locally soured inputs. In other words, the
hardware and software that run the industry are mostly Indian. Barring one or two
exceptional years, its performance in the last two decades has been quite consistent and
commendable in terms of modernization, expansion, growth in production, and
improvement in productivity and cost efficiency.
It is the third highest contributor in terms of Central excise duty of over
Rs.7,500/-crores a year.

It contributes around Rs.6, 000/- crores as sales tax, and

Rs.3,000/- crores as royalties, octroi, and cess, people to state governments. The industry
employees a workforce of over 1.5 lakh persons and supports a further complement of 12
lakh people engaged indirectly As a result, there is high degree of competition in cement,
the quality of customer service becomes and important differentiator.
The industry is highly fragmented with a number of players by global standards.
Selling prices fluctuate from place to place and seasonally. Cement is not a product that
can be easily differentiated. Unlike in the case of customer goods, customers do not
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hesitate to switch between brands.

And again, unlike consumer products, the cost

structure and sales realization do not permit high levels of expenditure on advertising and
promotion.
The last few years have seen notable mergers and acquisitions in the Indian
cement industry. This is a slow process. The industry welcomes the trend in as much as
it involves players who are genuinely interested in cement as an on going business.
Secondly, consolidation can bring about greater efficiencies and productivity due to
economies of scale that should ultimately benefit consumers.
The improved performance of the cement industry was due to continued growth in
housing activity and increased emphasis placed by the government in the development of
infrastructure.
The nine decades of Indian cement industrys existence is marked by the roller
coaster ride it underwent, ever since its inception in 1914. From the days of scarcity,
rigid controls, and imports, cement industry today has come a long way from a sellers
market to a buyers market.

Cement
The term Cement issued to designate many different kinds of substances that are
used as binder adhesive of fixers. Cement is a binding material. It is obtained by burning
the calcareous silicons and argillaceous raw materials together and mixed in different
proportions, crushing the resulting clinkers to a fine powder.

It is the most cost

ingredient in concrete and is available in variety of forms. The properties of various

cements depend on their chemical composition, the degree of fitness, and the
manufacturing process adopted. Limestone, which is the raw material for cement is the
most important item for its production.

Process
In wet process, limestone is crushed and grounded and mixed with water to form
slurry, which is fed into kiln. The slurry has water content of 30-40%. Before the
mineralogical processes commence, the water content in the slurry has to be evaporated.
This process consumes high energy and power. On the other hand, the dry process is

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more energy efficient. The raw materials are dried in a combined drying and grinding
plant to reduce the moisture content to less than 1%.
Due to regular shifts from wet and semi-dry to dry process, nearly 89% of the
total industries kiln capacity is at dry process. Of the remaining, 9% is wet process and
2%is semi-dry process. The main advantage of shifting to any process is the 50% saving
of coal consumption. The energy cost reduces by 30-40% and the kiln output also
increases. For a given size kiln, the output for dry process is 250-300% as compared to
130-150% for semi-dry and 100% for wet process. The capacity utilization is also higher
for dry process plants.

Overview of the performance of the Cement Sector:The Indian cement Industry not only ranks second in the production of cement in
the world but also produces quality cement, which meets global standards. However, the
industry faces a number of constraints in terms of high cost of power, high railway tariff;
high incidence of state and central levies and duties; lack of private and public investment
in infrastructure projects; poor quality coal and inadequate growth of related
infrastructure like sea and rail transport, ports and bulk terminals. In order to utilize
excess capacity available with the cement industry, the government has identified the
following thrust areas for increasing demand for cement:

Housing development programmers and Promotion of concrete highways and

roads;

Use of ready-mix concrete in large infrastructure projects;

Construction of concrete roads in rural areas under Prime Ministers Gram Sadak
Yojana.
In India, the different types of cement are manufactured using dry, semi-dry, and

wet processes. In the production of Clinker Cement, a lot of energy is required. It is

produced by using materials such as limestone, iron oxides, aluminum, and silicon
oxides. Among the different kinds of cement produced in India, Portland Pozzolana
Cement, Ordinary Portland Cement, and Portland Blast Furnace Slag Cement are the

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most important because they account for around 99% of the total cement production in
India.
Major players in Indian cement sector:

Gujarat Ambuja Cement

Ultratech Cement

India Cements

Century Cements

Jaypee Group

Madras Cements

Birla Corporation

Different types of cement that are produced in India are:

1. Ordinary Portland Cement:
Most commonly used cement in structures is the Ordinary Portland Cement. It is
produced in greatest volumes and used in construction of buildings, roads, tanks,
pavement etc. The specified BIS standards for this cement are 33 grade IS269; 43
grade IS8112.
2. Portland Slag Cement
It is manufactured by grinding ordinary cement clinkers with granulated blast
furnace slag of selected quality.
3. Sulphur Resistant Portland Cement
It is used in the concrete mixture intended for the operation in mineralized and
fresh waters. To make cement more sulphate resistant, the percentage of Tri-calcium is
reduced and that of di-calcium silicate is increased.
4. Rapid Hard Nine Cement
It attains high strength in very short time and thus enables to the completion of
work at the earliest this quality is achieved by higher degree of fitness in grinding and

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clinkering at the higher temperatures and adding increased lime content into the
composition.
5. White and Colored Cement
This is obtained by using superior raw material such as china clay and pure
limestone. Coloured cement are produced by adding suitable material pigments like iron
oxide, chromium dioxide to white cement. It is used for flooring, decorations to finished
buildings, swimming pools, etc.

6. Aluminous Cement
It is obtained by mixing lime, bauxite and calcium eliminates and used for urgent
repair work, plugging up oil and gas wells, etc.
7. Pozzulana Cement
It is a mixture of Portland cement and pozzulana. Pozzulana is volcanic ash. It
has a greater resistant to sulfuric action and seawater.
8. Oil Well Cement
It is produced by adding retreblers to the original cement to attain the property of
slow setting and quick hardening after settling and used for cementing dip-oil well.
9. Quick Setting Cement
The setting action of this cement starts within 5 minutes of its use and it becomes
stone hard in less than 1 hour. It is used for under water constructions.
10. Water-Proofing Cement
It is ordinary cement mixed with suitable proportion of some metal separate at the
time of grinding. It is used for construction of water refining structures like tanks,
reservoirs, etc.

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Transition in Marketing
Marketing styles of cement companies have seen an appreciable shift, moving
from the commodity selling approach to one that is more consumer-focused, and serviceoriented. This has helped greater penetration into rural and interior markets. Companies
are continually widening their marketing networks. They are now far more customerfocused, interacting closely with end users and influencers such as masons, architects,
civil and structural engineers. This has ushered in a new style of techno-promotion,
which was not seen in the industry earlier. In the process, they have created readerfriendly products and technical literature in all the languages of the country.

Sound Fundamentals
The fundamentals of most cement companies are sound as compared to
companies in other industries. But there are a few areas of concern. Cement is one of the
most taxed commodities in India suffering various levies such as excise, sales tax,
royalties and cess. That apart, a large share of is manufacturing and distribution costs is
dependent on government-administered inputs such as power, diesel, rail freight and coal.
These statutory imports together add up to about Rs.1350 a tone or Rs.67.50 a bag, and
constitute 20 to 25% of the end price paid by the consumer.
Freight and transport costs form another major chunk of the cement price.
Handling charges in some states are very high. In contrast, selling prices vary widely
from market to market and season to season.

Depending on local supply-demand

balance. All this has an impact on profitability and makes the industry highly vulnerable
to any further increases in taxes and costs and downward variations in selling prices. The
overall tax burden on cement cannot continue to be disproportionate to its selling prices
or that of other products. This bias must be adjusted appropriately if the industry is to
play an important role as a core sector of the economy.

Cement prices have increased

marginally over the past decade as compared to other construction materials, general
manufactured products and the all-commodities index.Price movements have been
cyclical, but over the years, the share of cement in the total cost of construction has been
steadily declining while that of finishing products has gone up significantly.
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Vigorous Road Building Plans

Infrastructure is often cited as one of the main impediments to economic growth
in India. The provision of efficient and affordable infrastructure is essential for inducing
growth, progress and imparting competition in all other sectors of the economy. It must
be admitted that government policy announcements in recent years have been pro-active
and pro-growth in this respect and there has been some success in several sectors, but
players eagerly awaiting a take-off in the construction and expansion of infrastructure
projects.

Promise of Housing
Housing is another sector that can act as a powerful driver to boost cement
demand. The government has made bold statements and taken initiatives, which benefit
the cause, as per recent estimates, the country faces a shortage of over 20 million
dwelling units unofficially, his figure is placed at 40 million.
The housing sector by a rough estimate can consume over 50 million tones of
cement to help clear the backlog. Any impetus in housing activity will serve as a
powerful driver of the economy and consequently cement industry. In fact, housing is
likely to be the most powerful engine for growth of the economy. Further, construction is
highly employment intensive. Housing construction will have a multiplier effect on other
sectors and services.

Other Growth Areas

Agriculture continues to be an important sector in the economy. The latest
economic survey stressed the need to bring the farmer closer to the market. This requires
speedy creation of an efficient rural infrastructure that includes irrigation facilities,
storage market yards and mandis, and improving the connectivity of villages through the
provision of all weather roads, telecommunications and rural electrification.

The

agriculture and irrigation sectors gain significantly from the use of canal lining based on

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cement concrete by conserving scarce water resources; grain storage silos will similarly
aid food conservation. If viable means are found to implement these schemes, one can
well foresee significant benefits to farmers and rural areas apart from substantial increase
in the requirement of cement.

Export Potential
Even though India has the second largest cement industry in the word, its export
performance is not in line with the size. Exports account for less than 2% of production.
India is strategically placed to be a major exporter of cement to SAARC countries and all
those around the Indian Ocean such as West Asia and Africa but India has not been able
to fully tap this location advantage.

There is sizable surplus capacity, and quality

product. There is a vast coastline with many ports and large shipping industries.
As compared to many other sectors of the national economy, the cement industry
is favorably placed for a bright future. Cement has been a core building material for
almost a century. There is no viable substitute foreseeable in the near future.

Challenges of Cement Industry

1. Coal
Coal is used both as an energy source and as raw material for cement production.
The per tone coal requirement for a dry process plant is approximately 200 kg and for a
wet process plant 250 kg. of the total coal produced in India. The cement industry
consumes nearly 20% coal. Although there is no shortage of coal supply, there are
certain drawbacks in the coal supplied to the cement plants. The quality of coal is poor
which adversely affects the quality of cement. Cement plants receive D E and F
grades of coal and as such, the quality of cement is deteriorating. Indian coal, generally,
has a high content and is therefore low in calorific value. In order to ease the demand for
domestic coal, the government has allowed cement companies to import 0.2 tonnes of
coal for every 1 tonne of cement at 0 %(zero) duty.
2. Raw Material Availability

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Limestone is the main raw material for the cement industry. For the production of
1 M.T of cement nearly 1,350 M.Ts of limestone is required. Cement plants are located
in areas where limestone deposits are found. The concentration is mainly in the states of
Andhra Pradesh, Gujarat, Karnataka, Himachal Pradesh, Rajasthan and Madhya Pradesh.
3. Excise Duty
Of the total excise earned by the central Government nearly 5.6% is contributed
by cement industry. The excise duty on Cement is 12% on retail sale price if retail sale
price is Rs.190/- and above per 50 kg Bag and Rs.350/- per M.T if retail sale price is
below Rs.190/- per 50 kg bag.

Industry Outlook
Cement industry is cyclical in nature. It is a core sector industry and one of
the key drivers for industrial development & growt h. India is t he worlds second
largest producer of cement after China with industry capacity of over 211m tonnes
per annum (MTPA). The infrastructure and housing sectors are likely to double
infrastructure spending over the next five years towards creating and modernizing its
infrast ructure and sustaining its growth momentum, thus affecting cement product
ion and consumption. Installed capacit y of the cement industry is estimated to
increase to 232m tonnes per annum by the end of FY10 from 211m tonnes per annum.
Southern region (where Penna operates) has been one of the highest cement producing &
consuming region in the country. Southern region has witnessed highest capacity
addition of about 29.93 mn tonnes in the last 5 years out of which almost 24.45
mn tonnes has been added in last two years. Southern region had unutilized capacities in
the past. As a result, the operating rate of the region has increased from 80% in
FY 05 to 93% in FY 07 but fell to 77% in FY 09 During FY 09, cement prices in the
Southern regions were ruling at the highest level compared to other regions. In
the month of August 08, cement prices even crossed levels of Rs. 275 per bag and
have continued to remain in the narrow range of Rs.275-278 per bag thereaft er. Average

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yearly prices in the Chennai market grew by about 8% on yoy basis This financial year
has been more of a curse for the cement industry due to economic slowdown with
demand falling short of supply. Several manufacturers are implementing capacit y
expansion plans. These capacity additions will help the industry meet the increased
demand for cement in future. The demand for cement is projected to grow, especially
in infrastructure and housing sectors.

1.3 COMPANY PROFILE

Introduction:
The month of August 1994 saw the inception of the Penna Cement factory at
Talaricheruvu village in the Tadipatri Mandal of Anantapur District, in close proximity to
the cities of Chennai and Bangalore, particularly to the states of Tamil Nadu, Karnataka
and Kerala. The Tadipatri belt is home to the country's richest lime stone reserves.
Consequently, the Penna Cement plant has access" some of the finest quality limestone.
This ensures that the cement produced is of "THE BEST" quality. To cater the growing
demand we have expanded to 1.7 Million Tonne per Annum by Installing Vertical Roller
Mill supplied by M/s. UBE, Japan for grinding slag and clinker separately.
We have also established One Million Ton Plant at Ganeshpahad Village,
Damarcherla Mandal of Nalgonda District to cater the Coastal and Telangana Regions of
Andhra Pradesh, and the states of Orissa, Tamilnadu and Chattisgarh. The plant also has
close proximity to ports of Kakinada and Visakhapatnam for export of cement. The
Ganeshpahad plant is incorporated with latest Hi-tech dry process technology with rotary
Kiln and a latest six stage pre-heater Technology with low pressure drop cyclones and a

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pre-calcinator of the latest design provided by M/S. ONODA, Japan the world leaders in
cement production technology, promotes superior heat recovery and increased
calcinations. Two Eight spout 120 TP rotary electronic packers ensure that each bag
contains the correct weight. Thus, assuring you consistency, homogenity and uniformity
of our products. Penna Cement has a capacity of 5mn tpa across three plants in Andhra
Pradesh. Penna Cements is a brand that has been synonymous with quality, strength, and
durability.
Salient features
High strength and great durability.

A very perceptible saving in costs (upto 20% to 25%)

due to low setting time and early strengths.

Superior quality of the cement resulting in a better overall finish.

Stronger bondings with aggregates.

VISION, MISSION & QUALITY POLICY

Vision
To create an organization that is profitable, viable, responsive, serving the needs of the
customers, suppliers and employees
Mission
Aiming High:
We should be one of the largest Cement Companies in the Country. Our growth in size
will be through continuous review of potentials of the existing manufacturing resources,
strategic acquisitions and expansions
Core Competency:
Cement will be our mainstay. However, we shall venture into related fields, which afford
purposeful synergy.
Quality Quest:

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Product quality, consistency and customer service will be pursued as an act of faith
throughout the organization.
Modern Mindset:
In an environment, which is intensively competitive, we shall be futuristic in outlook and
effective in management.
Human Resources:
We consider people as our valuable Assets. Our HRD Systems will be totally proactive
and tuned to provide excellent working environment.
Community Welfare:
As the organization grows, as a good Corporate Citizen, we shall be sensitive to the
welfare and development needs of the Society around us.

Background
Penna Cement Industries Ltd. (Penna) has been promoted by Sri P Prathap
Reddy in 1991 with initial capacity of 0.20 MTPA at Tadipatri, AP. As on March
31, 2009, the company operated three plants in AP with an aggreagate installed
capacity of 4.70 MTPA. Apart from cement, the promoters have presence in power
generation, transportation and construction business. Penna is the third highest player
(in terms of cement dispatched) in AP region with market share of 8.12% in FY09. In
Southern India, Penna had market share of 4% in the total production in FY09.
The company has presence in UAE by way of joint venture (through its wholly owned
subsidiary) with RAK Investment Authority of the Government of the UAE. Penna has
established Parasakti Cement Industries Ltd. as a 50:50 joint venture with
Mr.P.Munikrishna and associates in India. Under the JV, a cement facility has been set
up at Parasakti, in Guntur district, Andhra Pradesh with installed capacity of 1.2 mtpa as
on March 31, 2009.

Operations

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23

Penna is engaged in the business of manufacturing of Ordinary Portland

Cement (OPC) under the 53 grade & 43 grades, Portland Pozzolona Cement
(PPC) varieties with a product-mix of OPC:PPC of 30:70 and Portland Slag
Cement (PSC). The company markets its products under the brand name Penna,
in the states of Andhra Pradesh, Tamil Nadu and Karnataka. The company has
ventured into the markets of Goa and Orissa while its planning to enter markets in
Maharashtra. The company has 5 facilities of which 3 are owned and 2 are by strategic
alliances in which Penna holds 50% stake. The plants not only have good connectivity
through road & railways but also are located in close proximity to the lime stone mines.
The overall capacity utilisation of Penna was low at 60% in FY08, mainly due starting
of commercial operation of Boyinreddypali plant in the last month of FY08
(104% after adjustment for Boyireddypalli plant). The overall capacit y utilisation was
at

73% in FY09 mainly

due

to

first

year

of

commercial

operation

of

Boyireddypally plant which is expected to stabilize in FY10.

The company entered into Fuel Supply Agreement (FSA) with M/s
Singareni Collieries Company Limit ed (SCCL) t o meet its fuel (coal) requirements.
The company also meets its fuel requirement from imported coal as and when
required. Penna is currently procuring power from Andhra Pradesh Central Power
Distribution Company Limited (APCPDCL), in case of power shortage, the
company procures power from a group company Sriba which operates 30 MW
gas based power plant. Penna is in process of setting up coal based power plant
with capacity of 77 MW which is expected to st art commercial operation from
September 2009. The company plans t o procure power from the new plant in case of
shortages if any.

Project details
Penna is setting up a cement plant in Tandur dist , of Andhra Pradesh with a
capacity of 1.5 MTPA. The plant is expected to be commissioned by March. 2010. The
project was originally estimated at Rs.260 crore for 1.0 MTPA with a Debt
Equity ratio of 0.62:1. However, due to proposed capacity enhancement to 1.5 MTPA

APGCCS, Rajampet

24

the project cost increased to Rs.360 crore.

The company has plans to fund the

incremental cost through internal accruals. As of June 2009, the company has incurred
Rs. 245 crore which was funded through debt of Rs. 87 crore and equity of Rs. 158
crore.
Penna is also setting up coal based power generation plant with the proposed
capacity of 77 MW at Ganeshpahad Village, Nalgonda Dist. Andhra Pradesh. The
power plant is expected to be commissioned by September 2009. The total project cost
is projected at Rs. 255 crore, which is proposed to be financed with a Debt Equity ratio
of 0.82:1. The financial closure of the project is over and as of June 2009, the
company has incurred Rs. 141 crore which was funded through debt of Rs. 40
crore and equity of Rs. 101 crore.

Products:
We manufacture five types of cements producing.
as per bus. standards
PENNA POWER

OPC 53 GRADE

IS: 12269

PENNA SUPER

OPC 43 GRADE

IS: 8112

PENNA SURAKSHA

PBFSC

IS: 455

PENNA GOLD

PPC

IS: 1489

PENNA COASTAL

SRPC

IS: 12330

Early Setting Time

It has been found that concrete when mixed with PENNA CEMENT attains early
strength, which is a special phenomenon, resulting in projects being completed quickly,
thereby cutting costs.

APGCCS, Rajampet

25

Total Quality Control

A central control room with a main frame computer controls all plant activities. From the
mining of limestone to the final packaging, vigorous checks are conducted at every stage
to ensure the highest quality control

Technology:
In line with latest developments in technology of cement production, Vertical Roller
Mill (VRM) from UBE, Japan has been installed for the combined operation of drying
and grinding. Cement grinding in VRM is the latest technology in cement manufacturing.
Cement produced from our VRM has an optimum Particle Size Distribution, which
results in superior quality

Another salient feature of the Plant is the adoption of the 'separate grinding and
blending of clinker and slag', providing flexibility in operations and "customized" product
specifications. The mixing of ground clinker slag is accomplished in Twin Shaft Blender,
with latest Technology.
In order to ensure that each packed bag contains the exact specified quantity of
finished product, the latest generation packers supplied EEL in collaboration with Haver
and Boecker of Germany, have been installed. Bulk loading facility is available.

Quality:
STRENGTH:-

APGCCS, Rajampet

26

As in the case of OPC, concrete of any grade can be designed by using Penna
Suraksha. It is seen that the rate of development of initial strength in concrete made with
Penna Suraksha for a given water-cement ratio is marginally lower than that obtained
with OPC. However, 28 days strength obtained in concrete made with Penna Suraksha is
as much as that when made with OPC. In addition, concrete made with Penna Suraksha
continues to gain strength upto a period of 1 year and beyond thereby achieving "Higher
Ultimate Strength".

RESISTANCE TO CHLORIDE INGRESS:-

APGCCS, Rajampet

27

Concrete under humid conditions dry only to a small depth, resulting in higher
porosity. These dried out pores suck salt water by capillary action. Subsequently, the
water evaporates leaving the salt deposited in the pores, thus building up the chloride ion
concentration on the outer zone of 10 mm to 20 mm.
The chloride penetration at deeper depths takes place by dif$fusion process. It is
observed that the initial ingress and diffusion rate to deeper sections is substantially low
in case of concrete made with Penna Suraksha due to fine pore structure and low
Type of Cement

Diffusion Level

SRPC

HIGH

OPC

HIGH

PPC

LOW

PSC

VERY LOW

Diffusion Levels in concrete

made with different types
of cement

permeability.

REDUCTION IN THERMAL TRACKING:-

APGCCS, Rajampet

28

Thermal cracking is one of the major problems in mass concrete during its initial
hardening. This can be seen especially in such cases where high cement content is
specified eighter to get higher grade of concrete or for durability.
The release of Heat of Hydration in Penna Suraksha is relatively lower and
delayed as compared to OPC. This attribute greatly reduces the risk of cracking

Financial Performance:
Penna has shown growth of 23% in FY08 over FY07 and reported operational
income of Rs.868 crore in FY09. The growth was mainly due to increase in sales
realisation over the years and increase in the production levels.
PBILDT and PAT in FY08 increased by 33% and 42% respectively over FY07
mirroring the increase in the operational income. Overall gearing levels of the company
was 1.38 as on March 31, 2008, as against 1.69 as on March 31, 2007 mainly due
to higher networth due to accretion of the profits Interest coverage has been at the
comfortable level of 10.50 times for FY08. As on Mar. 31, 2008, current ratio stood
satisfactory at 1.28 times.

Recently Cemex Penna acquisition:

Cemex the world's third largest cement manufacturer is mulling an
India entry. Towards this, the transnational cement manufacturer has initiated a dialogue
for a possible buyout of the privately-held Penna Cement.
According to sources, Mexico's Cemex has been exploring Indian opportunities
for a while but the global economic turmoil weighed heavily on the company's foray into
newer geographies. The company on Tuesday said it has incurred a net loss of $342
APGCCS, Rajampet

29

million for the first quarter of this year ended March. "But, this is also the right time to
get into dialogue for acquisitions as the Indian market is expected to grow on the back of
heavy infrastructure spends coupled with industrial recovery," the sources said.
When contacted, Penna Cement Industries' CMD P Prathap Reddy, refused to
comment on whether he was in talks with Cemex. He, however, did not deny that the
privately-held Penna Cements was indeed looking for a strategic investor. "We are
looking for a strategic investor and are in early stages of discussions with a few people.
But there is nothing concrete yet and there is nothing to speculate about. We hold 100%
stake in Penna Cements and I have to decide (when and to whom to divest)," Reddy said,
refusing to disclose how much stake he would be divesting.
However, the sources told TOI that the Hyderabad-based player was looking at
exiting the cement business all together as it was not doing too well and the promoter had
lately been focused on property development.
Communications sent to Cemex did not elicit a response. It is not clear if Cemex
would settle for a token stake or press for a management buyout. Only a few days ago,
France's Vicat announced the acquisition of 51% stake in Y S Jagan Mohan Reddy's
Bharathi Cement. The financial contours of this deal are kept tight, but sources said that
the valuation has been in the range of $200 a tonne, which would translate into $500
million.
"Even on the assumption that Penna could be valued lower that Bharathi, due to
their presence only in one geography which has excess capacity, the deal could be a
blockbuster from the financial standpoint. On an extremely conservative valuation of
$150 a tonne, Penna could fetch $750 million," sources said.
Exploring Opportunities
Penna has a capacity to produce five-million tonnes of cement annually with two

APGCCS, Rajampet

30

plants in Tadapatri and one in Nalgonda, all in Andhra Pradesh. The company is in the
process of setting up one more plant in Tandur, also in AP We are looking for a strategic
investor and are in early stages of discussions with a few people, says Penna Cement
CMD P Prathap Reddy. Various sources coming out of Mumbai mention that Penna
Cement has been looking for a strategic partner and is in discussions with a few people.
However, it is widely believed that Cemex is in negotiations with the Indian company
and the end result could see the Mexican company fulfilling its desire to enter the Indian
cement market. Penna operates three plants in Andhra Pradesh state with a total capacity
of 5 million t and is currently setting up another plant in the same region.

Competitors Information:

Ultra Tech

ACC

Zuari

Grasim

India Cements

Gujarat Ambuja
Together dominated around 60% of the production capacity. The cement

industry is characterized by a high degree of fragmentation that has created intense

competitive pressure on price realization.
In India, the per capita cement consumption is abysmally low at 99 kgs against a
world average of 255 kgs and Asian average of 200 kgs. These figures indicate good
potential for growth of the industry.

OWNERSHIP PATTERN:
Penna Cement Company is a public limited company in the industry. The boards
of directors of this company are:
Name of Managing Director/Partner/Proprietor
1. P. Prathap Reddy-Chairman & MD
2. P. Munikrishna-Director

APGCCS, Rajampet

31

3. P. Venugopal Reddy-Director
4. Sairam Mocharla-Director
5. Y.S.K. Reddy-Director
The board is capable of acting on behalf of the company with in its scope and
ambit. Instead of mere discharge of statutory obligation, the directors are provide their
best to save the company from losses.

Infrastructure Facilities:
`The company in an on going and continuous manner provides infrastructure
development support to the employees and the villagers through initiatives like

Giving quarters to employees.

Providing hospital facilities, the people of Urichintala and Talaricheruvu

villages are treated at hospital at free of cost.

Providing Upper primary English Medium School up to 10th standard. The

children of the villagers are allowed to study in the school free of cost.
Developing concrete roads.
Erecting streetlights.
Company has a large storage place in which they can store a lot of raw

material, and finished goods.

Company has a security office near to the gate.

Area of Operation :(Regional)

Penna Cement Company having operations with in the regional, the area of
operations of Penna Cement Company is mainly within the Andhra Pradesh. The
corporate office PCIL is at Hyderabad and has different plants in Andhra Pradesh. The
company has marketing in South India.
Penna Cement Industries Ltd
Unit-I, Tadipatri (M), Anantapur District,
Talaricheruvu (V) - A.P.
APGCCS, Rajampet

32

 Penna Cement Industries Ltd

Unit-II, Ganeshpahad,
Damarcherla (M), Nalgonda District,
Wadapally (V) - (A.P.)
A.P. Penna Cement Industries Ltd
Unit-III, Boyareddipally (V),
Yadiki (M), Anantapur District,
Chintalayapalli (PO)
A.P. Penna Cement Industries Ltd
Unit-IV, Tandur (M), Rangareddy District,
Andhra Pradesh.

Achievements & Awards:

The company is the habit of achieving sales targets consistently. It is having a good
reputation in profits year by year.
Annual Profit

APGCCS, Rajampet

YEAR

Rs.

2008-09
2007-08

225,47,46,580
169,15,82,273

33

2006-07

114,49,47,989

Annual Turnover
YEAR

Rs.

2008-09
2007-08
2006-07

1460,19,21,318
1139,72,42,573
907,01,19,041

Contact Us
PENNA CEMENT INDUSTRIES LIMITED
PLOT NO.705, # 8-2-268/A/1/5/1,ROAD NO.3
BANJARA HILLS, HYDERABAD 500 034.
Phone No. 040-44565100 (30 Lines)
Fax No. 040-23328073,23355941,23353947
email:bookings@pennacement.com

RESEARCH METHODOLOGY
2.1 NEED FOR THE STUDY:
Recruitment and selection study is to recruit and retain the human resource of
required quantity and quality and this study involve the forecasting of Human Resource
needs in the organization in designing appropriate course of action for carrier
development based on the Environment. Through the effective recruitment and selection

APGCCS, Rajampet

34

process the eligible and efficient manpower will existed in the correct time and at the
correct place.
2.2 OBJECTIVES:
To study the Recruitment and selection process in Penna Cement Industries Ltd.
To find out the effectiveness of selection procedure in Penna Cement Industries
Ltd.
2.3 RESEARCH DESIGN:
Research Methodology Shows the Path in which research should be done. It helps
the researcher to carry out the research on a More Systematic and Logical Way and
makes more Scientific Observations Possible; it aims at discovering new facts in Penna
Cement Industries ltd.

The Project follows on descriptive research.

2.4 Data Sources:

Primary Data
Any research study for the collection of primary data the methods like
Questionnaire, interview and Observation methods has been used very frequently. Among
these methods the questionnaire technique being used as the most versatile of all and
capable of interacting opinion and interventions was used for the purpose of data
collection. The employees are the primary data.
Secondary Data
APGCCS, Rajampet

35

The secondary information will be collected in this category is as follows:

By go through the intranet i.e., the part O&M department.
By collecting information (through informal interaction) from the employees.
By observing and studying the previous research studies.

2.5 Population and sample size:

The Sample chosen from various departments at Penna cements ltd.

The Total no of employees in Penna is 180, over all these the sample size is
110 employees of various levels of departments and we are approached and
information was collected.

2.6 Tools of study:

Statistical Tools:
Percentage Analysis:
This is the statistical tool, which may be used in any kind of analysis. This is
sample in nature and provides clear picture about a huge population by breaking it in
percentage (per 100). The mode of recruitment, no of employees taking at particular tests
and grouping of employees on the basis of rating of interviewer.
No of respondents
Percentage Method = ----------------------------- X 100
Total respondents

Chi-square test:
A test that uses the chi-square statistic to test the fit between a theoretical frequency
distribution and a frequency distribution of observed data for which each observation
may fall into one of several classes.
Statistical method to test whether two (or more) variables are: (1) independent or
(2) homogeneous. The chi-square test for independence examines whether knowing the
value of one variable helps to estimate the value of another variable. The chi-square test
APGCCS, Rajampet

36

for homogeneity examines whether two populations have the same proportion of
observations with a common characteristic. Though the formula is the same for both tests,
the underlying logic and sampling procedures vary.

(Oi - Ei) 2

-----------------

Chi-Square test =

Ei
Oi = observed frequencies
Ei = Estimated frequencies

2.7 Limitations of Study:

The study is confined to a limited period i.e. 45 days. The study does not cover
the entire organization

Accuracy of the study is purely based on the information as given by the

respondents.

ANALYSIS AND INTERPRETATION

3.1 About media to know the vacancies
Table 3.1
OPINION
News papers
Employment exchange
Educational institutions
Consultants

APGCCS, Rajampet

NO. OF RESPONDENTS
18
54

PERCENTAGE (%)
16
49

37

Others

38

35

TOTAL

110

100

Graph 3.1

Inference:
From the above graph, it is observed that 49% of the respondents are consultants,
35% of respondents are other methods and only 16% of respondents are employment
exchange are using to fill the vacancies in Penna cement Industries ltd.
3.2 Sources of recruitment
Table 3.2
OPINION
Internal
External
Both
TOTAL

APGCCS, Rajampet

NO. OF RESPONDENTS
29
27
54
110

PERCENTAGE (%)
26
25
49
100

38

Graph 3.2

Inference:
From the above graph, it is observed that 49% of the respondents are both the
sources, 26% of respondents are internal sources and only 25% of respondents are external
sources are using for Recruitment process.

3.3 Internal source

Table 3.3
OPINION
Employee referrals
Internal promotion
Transfer
Retirement
All the above

NO. OF RESPONDENTS
62
19
03
23
03

PERCENTAGE (%)
57
17
03
20
03

TOTAL

110

100

APGCCS, Rajampet

39

Graph 3.3

Inference:
From the above graph, it is observed that 57% of the respondents are employee
referrals, 20% of respondents are retirement, 17% of respondents are internal promotion,
3% of respondents are transfers and 3% of respondents are agreed with all the above factors
to fill the vacancies in Penna cement Industries ltd.
3.4 External source
Table 3.4
OPINION
Advertising
Employment exchange
Campus placement
Walk-ins
All the above

NO. OF RESPONDENTS
66
09
35
-

PERCENTAGE (%)
60
08
32
-

TOTAL

110

100

Graph 3.4

APGCCS, Rajampet

40

Inference:
From the above graph, it is observed that 60% of the respondents are
advertising, 32% of respondents are walk-ins and only 8% of respondents are employment
exchange are the external sources for recruiting the candidates in Penna cement Industries
ltd.
3.5 Sons of soil importance
Table 3.5
OPINION
Highly satisfied
Satisfied
Neither satisfied nor dissatisfied
Dissatisfied
Highly dissatisfied
TOTAL

NO. OF RESPONDENTS
34
56
10
07
03
110

PERCENTAGE (%)
31
51
09
06
03
100

Graph 3.5

APGCCS, Rajampet

41

Inference:
From the above graph, it is observed that 51% of the respondents are satisfied, 31%
of respondents are highly satisfied, 9% of respondents are neither satisfied nor dissatisfied,
6% of respondents are dissatisfied and only 3% of respondents are highly dissatisfied to
importance of sons of soil.

3.6 Recruitment procedure

Table 3.6
OPINION
Highly satisfied
Satisfied
Neither satisfied nor dissatisfied
Dissatisfied
Highly dissatisfied
TOTAL

NO. OF RESPONDENTS
31
43
11
15
10
110

PERCENTAGE (%)
28
39
10
14
09
100

Graph 3.6

APGCCS, Rajampet

42

Inference:
From the above graph, it is observed that 39% of the respondents are satisfied, 28%
of respondents are highly satisfied, 14% of respondents are dissatisfied, 10% of
respondents are neither satisfied nor dissatisfied and only 9% of respondents are highly
dissatisfied with the recruitment procedure in Penna cement Industries ltd.
3.7 Training is essential after selection
Table 3.7
OPINION
Strongly agree
Agree
Neither agree nor disagree
Disagree
Strongly disagree

NO. OF RESPONDENTS
44
50
07
06
03

PERCENTAGE (%)
40
46
06
05
03

TOTAL

110

100

Graph 3.7

APGCCS, Rajampet

43

Inference:
From the above graph, it is observed that 46% of the respondents are agree, 40% of
respondents are Strongly agree, 6% of respondents are neither agree nor disagree, 5% of
respondents are disagree and only 3% of respondents are strongly disagree as training is
essential after selection in Penna cement Industries ltd.
3.8 Personal preparation essential after selection
Table 3.8
OPINION
Strongly agree
Agree
Neither agree nor disagree
Disagree
Strongly disagree

NO. OF RESPONDENTS
40
50
09
08
03

PERCENTAGE (%)
36
46
08
07
03

TOTAL

110

100

Graph 3.8

APGCCS, Rajampet

44

Inference:
From the above graph, it is observed that 46% of the respondents are agree, 36% of
respondents are Strongly agree, 8% of respondents are neither agree nor disagree, 7% of
respondents are disagree and only 3% of respondents are strongly disagree that personal
preparation of a candidate is essential after selection.

3.9 Internal sources is benefit

Table 3.9
OPINION
Strongly agree
Agree
Neither agree nor disagree
Disagree
Strongly disagree
TOTAL

NO. OF RESPONDENTS
16
62
14
08
10
110

PERCENTAGE (%)
15
55
13
07
09
100

Graph 3.9

APGCCS, Rajampet

45

Inference:
From the above graph, it is observed that 55% of the respondents are agree, 15% of
respondents are strongly agree, 13% of respondents are neither agree nor disagree, 9% of
respondents are strongly disagree & 7% of respondents are disagree for recruiting
candidates through internal sources is benefit in Penna cement Industries ltd.
3.10 Induction programme
Table 3.10
OPINION
Strongly agree
Agree
Neither agree nor disagree
Disagree
Strongly disagree
TOTAL

NO. OF RESPONDENTS
52
32
09
11
06
110

PERCENTAGE (%)
48
29
08
10
05
100

Graph 3.10

APGCCS, Rajampet

46

Inference:
From the above graph, it is observed that 48% of the respondents are strongly agree,
29% of respondents are agree, 10% of respondents are disagree, 8% of respondents are
neither agree nor disagree and only 5% of respondents are strongly disagree with the
induction programme in Penna cement Industries ltd.
3.11 Types of interview
Table 3.11
OPINION
Stress interview
Structured interview
Unstructured interview
Behavioral interview
Depth interview
TOTAL

NO. OF RESPONDENTS
14
64
30
02
110

PERCENTAGE (%)
13
58
27
02
100

Graph 3.11

APGCCS, Rajampet

47

Inference:
From the above graph, it is observed that 58% of the respondents are structured
interview, 27% of respondents are unstructured interview, 13% of respondents are stress
interview and only 2% of respondents are under behavioral interview.

3.12 Selection criteria

Table 3.12
OPINION
Experience
Qualification
Communication skills
Referrals
All the above
TOTAL

NO. OF RESPONDENTS
38
48
08
10
06
110

PERCENTAGE (%)
35
44
07
09
05
100

Graph 3.12

APGCCS, Rajampet

48

Inference:
From the above graph, it is observed that 44% of the respondents are qualification,
35% of respondents are experience, 9% of respondents are referrals, 7% of respondents are
communication skills and only 5% of respondents are using all the above factors for
selection criteria in Penna cement Industries ltd.

3.13 Employment Procedure

Table 3.13
OPINION
Highly satisfied
Satisfied
Neither satisfied nor
dissatisfied
Dissatisfied
Highly dissatisfied

NO. OF RESPONDENTS
35
55
13

PERCENTAGE (%)
32
50
12

05
02

04
02

TOTAL

110

100

Graph 3.13

APGCCS, Rajampet

49

Inference:
From the above graph, it is observed that 50% of the respondents are satisfied, 32%
of respondents are highly satisfied, 12% of respondents are neither satisfied nor dissatisfied,
4% of respondents are dissatisfied and only 2% of respondents are highly dissatisfied with
the employment procedure organized in Penna cement Industries ltd.
3.14 Reference check during selection period
Table 3.14
OPINION
Yes
No
TOTAL

NO. OF RESPONDENTS
62
48
110

PERCENTAGE (%)
56
44
100

Graph 3.14

APGCCS, Rajampet

50

Inference:
From the above graph, it is observed that 56% of respondents undergoing reference
check during the selection period and 44% of respondents are not undergoing reference
check during the selection period.

3.15 Recruitment techniques

Table 3.15
OPINION
Scouting
Present employees
Salary & Perks
Transfers
Promotions

NO. OF RESPONDENTS
04
35
51
10
10

PERCENTAGE (%)
03
32
47
09
09

TOTAL

110

100

Graph 3.15
APGCCS, Rajampet

51

Inference:
From the above graph, it is observed that 47% of the respondents are salary &
perks,, 32% of respondents are using present employees, 9% of respondents are using
promotions, 9% of respondents are using promotions, 4% are using promotions and only
3% of respondents are scouting using recruitment techniques.

3.16 Modern sources

Table 3.16
OPINION
Body shopping
Head hunting
Walk-in
E-recruitment
Consult in

NO. OF RESPONDENTS
07
22
25
56

PERCENTAGE (%)
06
20
23
51

TOTAL

110

100

Graph 3.16

APGCCS, Rajampet

52

Inference:
From the above graph, it is observed that 51% of the respondents are consult in,
23% of respondents are E-recruitment, 20% of respondents are walk in and only 6% of
respondents are head hunting using modern sources in Penna cement Industries ltd.

3.17 Time allotted for screening test

Table 3.17
OPINION
Strongly agree
Agree
Neither agree nor disagree
Disagree
Strongly disagree

NO. OF RESPONDENTS
33
47
15
11
04

PERCENTAGE (%)
30
43
14
10
03

TOTAL

110

100

Graph 3.17

APGCCS, Rajampet

53

Inference:
From the above graph, it is observed that 43% of the respondents are agree, 30% of
respondents are strongly agree, 14% are neither agree nor disagree, 10% of respondents are
disagree and only 3% of respondents are strongly disagree with that the time allotted for
screening test is sufficient in Penna cement Industries ltd.
3.18 Stages of selecting
Table 3.18
OPINION
One
Two
Three
Four
More

NO. OF RESPONDENTS
04
10
34
56
06

PERCENTAGE (%)
03
09
31
52
05

TOTAL

110

100

Graph 3.18

APGCCS, Rajampet

54

Inference:
From the above graph, it is observed that 52% of the respondents are agree four
stages for selecting the candidates, 31% of the respondents agree for three stages, 9% of the
respondents agree for two stages, 5% of the respondents agree for more than four stages
and only 3% are agree for one stage in selecting the candidate.

3.19 Tests of selection process

Table 3.19
LEVEL OF AGREEVANCE
Aptitude test
Achievement test
Situational test
Interest test
Personality test

NO. OF RESPONDENTS
10
46
05
06
43

% OF RESPONDENTS
09
42
04
05
40

TOTAL

110

100

Graph 3.19

APGCCS, Rajampet

55

Inference:
From the above graph, it is observed that 42% of the respondents are achievement
test, 40% of respondents are personality test, 9% are aptitude test, 5% of respondents are
interest test and only 4% of respondents are using situational test during the process of
recruitment.
3.20 Required of interviewing process
Table 3.20
OPINION
Sales
Administration
HR Executives
Higher authority
Other

NO. OF RESPONDENTS
62
48
-

PERCENTAGE (%)
56
44
-

TOTAL

110

100

Graph 3.20

APGCCS, Rajampet

56

Inference:
From the above graph, it is observed that 56% of the respondents are HR executives
and 44% of respondents are higher authority are involved in interviewing process.

3.21 Time spent for selecting

Table 3.21
OPINION
10 mins
10 to 20 mins
20 to 30 mins
1 hour
More

NO. OF RESPONDENTS
03
06
40
45
16

PERCENTAGE (%)
03
05
36
41
15

TOTAL

110

100

Graph 3.21

APGCCS, Rajampet

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Inference:
From the above graph, it is observed that 34% of the respondents are 20 to 30 mins,
29% of respondents are 10 to 20 mins, 15% of respondents are 10 mins, 13% are 1hour and
only 9% of respondents are more has opted for time spent in selecting the candidate in
Penna cement Industries ltd.

3.22 What kind of verifications

Table 3.22
OPINION
Educational qualification
Legal background check
Personal background check
Reference check
Family background check

NO. OF RESPONDENTS
42
05
25
24
14

PERCENTAGE (%)
38
04
23
22
13

TOTAL

110

100

Graph 3.22

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Inference:
From the above graph, it is observed that 38% of the respondents are educational
qualification, 23% of respondents are personal background check, 22% of respondents are
reference check, 13% of respondents are family background check and only 4% of
respondents are using legal background check for verification of candidate in Penna cement
Industries ltd.
3.23 Comment on Recruitment & selection process
Table 3.23
OPINION
Excellent
Good
Average
Below average
Poor

NO. OF RESPONDENTS
41
49
12
06
02

PERCENTAGE (%)
37
45
11
05
02

TOTAL

110

100

Graph 3.23

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Inference:
From the above graph, it is observed that 45% of the respondents are good, 37% of
respondents are excellent, 11% of respondents are average, 5% of respondents are below
average and only 2% of respondents are poor on recruitment and selection process in Penna
cement Industries ltd.
Chi-square Test
Training is essential after selection
H0 = Most of the employees feel that training is not essential after selected by the
candidate
H1 = Most of the employees feel that training is essential after selected by the candidate
Training is essential after selection
Opinion
Age levels
18-25
26-35

Strongly
agree
13
19

APGCCS, Rajampet

Agree
6
10

Neither
agree
nor
disagree
1
2

Total
Disagree
0
3

Strongly
disagree
0
1

20
35

60

36-45
>=45
Total

9
3

25
8

3
1

1
2

2
1

40
15

44

49

110

Chi-Square Test
Asymp. Sig.
Value
df
(2-sided)
a
Pearson Chi-Square
21.178
12
.048
a. 12 cells (60.0%) have expected count less than 5. The minimum
expected count is .55.
Inference:
Chi-square calculated value = 21.178,
p value = 0.048,
p value < 0.05
Hence H1 accepted.
Most of the employees feel that training is essential after selected by the candidate

Chi-square Test
Satisfaction of Employment Procedure
H0 = Most of the employees feel that employment procedure is not satisfied in this
organization
H1 = Most of the employees feel that employment procedure is satisfied in this
organization
Satisfaction of Employment Procedure
Neither
agree
Strongly
nor
Strongly
Age levels
agree
Agree disagree Disagree disagree
18-25
11
6
2
0
1
26-35
11
12
8
3
1

Opinion

36-45

APGCCS, Rajampet

10

25

Total

20
35
40

61

>=45
Total

12

15

35

55

13

110

Chi-Square Test
Asymp. Sig.
Value
df
(2-sided)
a
Pearson Chi-Square
23.148
12
.026
a. 13 cells (65.0%) have expected count less than 5. The minimum
expected count is .27.
Inference:
Chi-square calculated value = 23.148,
p value = 0.026,
p value < 0.05
Hence H1 accepted.
Most of the employees feel that employment procedure is satisfied in this
organization

Chi-square Test
Comment on Recruitment & selection process
H0 = Most of the employees feel that Recruitment & selection process is not good in
Penna cements ltd.
H0 = Most of the employees feel that Recruitment & selection process is good in Penna
cements ltd.

Comment on Recruitment & selection process

Opinion
Age levels
18-25
26-35

Excellent
13
15

Good
2
13

Average
2
5

Below
average
1
2

36-45
>=45

13
0

19
15

5
0

3
0

APGCCS, Rajampet

Total
Poor
2
0

20
35

0
0

40
15

62

Total

41

49

12

110

Chi-Square Test
Asymp. Sig.
Value
df
(2-sided)
a
Pearson Chi-Square
38.723
12
.000
a. 12 cells (60.0%) have expected count less than 5. The minimum
expected count is .27.
Inference:
Chi-square calculated value = 46.954,
p value = 0.00,
p value < 0.05
Hence H1 accepted.
Most of the employees feel that Recruitment & selection process is good
in Penna cement Industries ltd.

4.1 FINDINGS

49% of the respondents are consultants, 35% of respondents are other methods and

16% of respondents are employment exchanges are using to fill the vacancies.
49% of respondents are accepted that the organization is using both the sources
(internal and external) 26% of respondents are internal sources and only 25% of

respondents are external sources for verification of candidates.

57% of the respondents are employee referrals, 20% of respondents are retirement,
17% of respondents are internal promotion, 3% of respondents are transfers and 3%

of respondents are agree with all the above factors to fill the vacancies.
60% of the respondents are advertising, 32% of respondents are walk-ins and only
8% of respondents are employment exchange are the external sources for recruiting

the candidates.
82% of the respondents are satisfied and 9% of respondents are dissatisfied because
the organization is more giving importance of sons of soil.

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67% of the respondents are satisfied and 23% of respondents are dissatisfied with

the recruitment procedure.

86% of the respondents are agree and 8% of respondents are disagree as training is

essential after selection.

82% of the respondents are agree and 10% of respondents are disagree that personal

preparation of a candidate is essential after selection.

70% of the respondents are agree that recruiting candidates through internal sources
is benefit to the organization and 16% of respondents are disagree with recruiting

candidates through internal sources.

77% of the respondents are agree, 29% of respondents are agree and 15% of

respondents are disagree with the induction programme.

58% of the respondents are structured interview, 27% of respondents are
unstructured interview, 13% of respondents are stress interview and only 2% of
respondents are under behavioral interview.

44% of the respondents are qualification, 35% of respondents are experience, 9% of

respondents are referrals, 7% of respondents are communication skills and only 5%

of respondents are using all the above factors for selection criteria.
82% of the respondents are satisfied and 6% of respondents are dissatisfied with the

employment procedure in the organization.

56% of respondents undergoing reference check during the selection period and

44% of respondents are not undergoing reference check during the selection period.
47% of the respondents are salary & perks, 32% of respondents are using present
employees, 9% of respondents are using promotions, 9% of respondents are using
promotions, 4% are using promotions and only 3% of respondents are scouting are

using recruitment techniques.

51% of the respondents are consult in, 23% of respondents are E-recruitment, 20%
of respondents are walk in and only 6% of respondents are head hunting using

modern sources.
73% of the respondents are agree and 13% of respondents are with that the time

allotted for screening test is sufficient.

52% of the respondents are agree four stages for selecting the candidates, 31% of
the respondents agree for three stages, 9% of the respondents agree for two stages,

APGCCS, Rajampet

64

5% of the respondents agree for more than four stages and only 3% are agree for

one stage in selecting the candidate.

42% of the respondents are achievement test, 40% of respondents are personality
test, 9% are aptitude test, 5% of respondents are interest test and only 4% of

respondents are using situational test during the process of recruitment.

56% of the respondents are HR executives and 44% of respondents are higher

authority are involved in interviewing process.

34% of the respondents are 20 to 30 mins, 29% of respondents are 10 to 20 mins,
15% of respondents are 10 mins, 13% are 1hour and only 9% of respondents are
more has opted for time spent in selecting the candidate.

38% of the respondents are educational qualification, 23% of respondents are

personal background check, 22% of respondents are reference check, 13% of
respondents are family background check and only 4% of respondents are using

legal background check for verification of candidate.

82% of the respondents are good and 13% of respondents are average on
recruitment and selection process.

APGCCS, Rajampet

65

4.2 SUGGESTIONS
The organization has to give the importance to other area candidates.
The Penna cement Industries ltd has to give importance to different type
of interview techniques.
The Organization has to select the candidates not only on experience
and qualification but also select the candidate based on Communication
skills.
Most of the employees accepted with the reference during selecting the
candidates so the organization has to select the candidates without any
reference.

4.3 CONCLUSION
After the study on Recruitment and Selection in Penna Cements Industries Ltd, I
conclude that the most of the employees are satisfied with existing system of recruitment
and selection procedure and a very few employees are not satisfied with recruitment
procedure in the organization because the organization more importance to sons of soil and
a very few of candidates are recruited based on their ability and skill.

APGCCS, Rajampet

66

Hence the Recruitment process is a fair and effective one and it is a

knowledgeable experience. In selection process they has to select the candidate without
any reference and Selection procedure followed in organization is also very good and
efficient.

QUESTIONNAIRE
A Study on Recruitment & Selection in Penna Cement Industries Ltd
Dear Sir/ Maam,
I, Mr. Sai Krishna from the APGCCS, Rajampet, conducting study on the
recruitment & selection process related to PENNA as a part of my MBA curriculum.

request you to spare a few minutes to fill in the questionnaire. Your valuable inputs will
be highly appreciated.
The information collected will be used purely for academic purpose.

PART- A
Personal Information
1. Name

APGCCS, Rajampet

67

2. Age

3.

Department

4. Designation

PART- B
1. Through which media you known that the Penna cement industries having
vacancies.
News papers ( ) Employment exchange ( ) Educational institutions ( )
Consultants ( )
Others ( )
2. What are the sources of recruitment in your organization?
Internal ( ) External ( ) Both ( )
3. If internal
Employee referrals ( ) Internal promotion ( ) Transfer ( ) Retirement ( )
All the above ( )
4. If external
Advertising ( ) Employment exchange ( ) Campus placement ( ) Walk-ins ( )
All the above ( )
5. Sons of soil are given importance in your organization.
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68

Highly satisfied ( ) Satisfied ( ) Neither satisfied nor dissatisfied ( ) Dissatisfied ( )

Highly dissatisfied ( )
6. Are you satisfied by the recruitment procedure in your organization?
Highly satisfied ( ) Satisfied ( ) Neither satisfied nor dissatisfied ( ) Dissatisfied ( )
Highly dissatisfied ( )
7. Training is essential after selection
Strongly agree ( ) Agree ( ) Neither agree nor disagree ( ) Disagree ( )
Strongly disagree ( )
8. Personnel preparation of a candidates is essential after selection
Strongly agree ( ) Agree ( ) Neither agree nor disagree ( ) Disagree ( )
Strongly disagree ( )
9. Recruiting candidates through internal sources is benefit to organization
Strongly agree ( ) Agree ( ) Neither agree nor disagree ( ) Disagree ( )
Strongly disagree ( )
10. Induction programme is essential after selection
Strongly agree ( ) Agree ( ) Neither agree nor disagree ( ) Disagree ( )
Strongly disagree ( )
11. What type of interview was it?
Stress Interview ( ) Structured Interview ( ) Unstructured Interview ( )
Behavioral Interview ( ) Depth Interview ( )
12. What are the selection criteria used in the organization?
Experience ( ) Qualification ( ) Communication skills ( ) Referrals ( )
All the above ( )
13. Are you satisfied with Employment Procedure?
Highly satisfied ( ) Satisfied ( ) Neither satisfied nor dissatisfied ( ) Dissatisfied ( )
Highly dissatisfied ( )
14. Do the candidates undergo reference check during selection period?
Yes ( ) No ( )

APGCCS, Rajampet

69

15. What are recruitment techniques used in the organization

Scouting ( ) Present employees ( ) Perks ( ) Transfers ( ) Promotions ( )
16. What are modern sources used in the organization?
Body shopping ( ) Head hunting ( ) Walk in ( ) E-recruitment ( ) Consult in ( )
17. Time allotted for the screening test is sufficient?
Strongly agree ( ) Agree ( ) Neither agree nor disagree ( ) Disagree ( )
Strongly disagree ( )
18. How many stages are involved in selecting the candidate?
1( )

2( )

3( )

4( )

More ( )

19. Do you use any of the following tests during the selection process?
Aptitude test ( ) Achievement test ( ) Situational test ( ) Interest test ( )
Personality test ( )
20. Apart from the HR Manager, who all from the other departments are required to
get involved in interviewing process?
Sales ( ) Administration ( ) HR Executives ( ) Higher authority ( ) Other ( )

21. What is the average time spent for selecting (each candidate) in Penna?
10mins ( ) 10 to 20mins ( ) 20 to 30mins ( ) 1 hour ( ) More ( )
22. What kind of verifications you do?
Educational qualifications ( ) Legal background check ( )
Professional background check ( ) Reference check ( ) Family background check ( )
23. Can you comment on Recruitment & selection process in Penna?
Excellent ( ) Good ( ) Average ( ) Below average ( ) Poor ( )

APGCCS, Rajampet

70

BIBLIOGRAPHY

BOOKS:

Edwin B.flippo, personnel management, McGraw hill, 2006

P. Subba Rao. Human resource management and personal management

k. Aswathappa, Human Resource and Personnel Management, Tata McGraw hill

S.P.Guptha , Research and Methodology

WEB SITES:
http://www.google.com/
http://www.sitehr.com/
http://www.scribd.com/
http://www.pennacements.com/
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