Recruitment and Selection India Bulls

RECRUITMENT & SELECTION
Abstract
Two important functions of a human resources department are

recruitment and selection. Though linked together in what is
generally called the employment discipline of human resources,
they are two distinct functions. The recruitment phase is the
initial step for all applicants--once the applicant presents the
skills, knowledge base and qualifications, she moves into
candidacy for a position. It includes finding, developing the
sources of prospective employees and attracting them to apply
for jobs in an organization.
After identifying the sources of human resources, searching for
prospective employees and stimulating them to apply for jobs in
an organization, the management has to perform the function of
selecting the right employees at the right time. The obvious
guiding policy in selection is the intention to choose the best
qualified and suitable job candidate for each unfilled job. The
objective of the selection decision is to choose the individual who
can most successfully perform the job from the pool of qualified
candidates. The selection procedure is the system of functions
and devices adopted in a given company to ascertain whether the
candidates specifications are matched with the job specifications
and requirements or not.
Finally, better recruitment and selection strategies result in

improved organizational outcomes. The more effectively
organizations recruit and select candidates, the more likely they
are to hire and retain satisfied employees. In addition, the
effectiveness of an organizations selection system can influence
bottom-line business outcomes, such as productivity and financial
performance. Hence, investing in the development of a
comprehensive and valid selection system is money well spent.
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INTRODUCTION
The utilization of people, at least in a rudimentary form, can be traced to
ancient times. Efforts to best use talents even though informal in nature
were undertaken whenever people came together in a community. The
change has been that during the course of the last century efforts to best
manage human resources have become more formal and specialized.
Staffing is a far more complex activity than in previous times, when
employment managers could rely on help wanted sign in front of the plant
or recommendations from current employees. Equal employment
opportunity laws along with the increased complexity of positions to be
filled, require more sophisticated procedures to identify and select
prospective employees.
The selection process includes several important steps. The first is carefully
defining the open position and determining which skills are needed to hold
the job successfully. Having determined the specific skills and
competencies, employment managers must then use carefully developed and
validated procedures in screening and evaluating job candidates.
Recruitment follows H.R. planning and goes hand in hand with the selection
process by which organizations evaluate the suitability of candidates for
various jobs. Without accurate planning, organizations may recruit the
wrong number or type of employees
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Recruitment is the set of activities that takes place in an organization to
attract job candidates possessing the appropriate characteristics to help the
organization reach its objectives. It involves seeking and attracting a pool of
people from where suitable qualified candidates can be chosen for a vacancy.
The basic purpose is to collect a group of potentially qualified people.
Selection is the process of finding out the most suitable candidates for the
said job. After identifying the sources of manpower, searching for prospective
employees and stimulating them to apply for jobs in the organization, the
management has to perform the function of selecting the right employees at
the right time and for the right post.
Every organization follows the process of recruitment and selection. In INDIA
BULLS, this process shall be initiated on receiving a requisition in the
prescribed format duly approved by the Managing Director / Executive
Director. It should contain the particulars of role, responsibilities reporting
relationship, qualification etc. The selection methodology for various
positions shall be based on personal interviews.
The recruitment and selection process followed in INDIA BULLS is
comparatively well defined. Most of the candidates are recruited through
Employee Reference and Consultancy. Candidates selected are given a
probationary period.
The suggestions drawn through this project study are that before placing the
candidates for personal interviews; tests like aptitude, achievement,
situational, interest, group discussion and personality development
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interview should be conducted. This helps the company in selecting the
right employees and retaining them for a long time.
MEANING OF RECRUITMENT AND SELECTION
Recruitment is the process of finding and attracting capable applicants
for employment. The process begins when new recruits are sought and ends
when their applications are submitted. The result is a pool of application
from which new employees are selected. Recruitment is understood as the
process of searching for and obtaining applicants for jobs, from among them
the right people can be selected. Though theoretically recruitment process is
said to end with the receipt of applications, in practice the activity extends
to the screening of applicationsso as to eliminate those who are not qualified
for the job.
Recruitment and selection
Applicant recruitment and employee selection form a major part of an
organization's overall resourcing strategies, which identifies and secures
people needed for the organization to survive and succeed. Recruitment
activities need to be responsive to the increasingly competitive market to
secure suitably qualified and capable recruits at all levels. To be effective,

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these initiatives need to include how and when to source the best recruits,
internally or externally. Common to the success of either are well-defined
organizational structures with sound job design, robust task and person
specification and versatile selection processes, reward, employment relations
and human resource policies, underpinned by a commitment for strong
employer branding and employee engagement and onboarding strategies.
Internal recruitment can provide the most cost-effective source for recruits if
the potential of the existing pool of employees has been enhanced through
training, development and other performance-enhancing activities such as
performance appraisal, succession planning and development center to
review performance and assess employee development needs and
promotional potential.
Increasingly, securing the best quality candidates for almost all
organizations relies, at least occasionally, if not substantially, on external
recruitment methods. Rapidly changing business models demand skill and
experience that cannot be sourced or rapidly enough developed from the
existing employee base. It would be unusual for an organization to
undertake all aspects of the recruitment process without support from
third-party dedicated recruitment firms. This may involve a range of support
services, such as provision of CVs or resumes, identifying recruitment
media, advertisement design and media placement for job vacancies,
candidate response handling, short-listing, conducting aptitude testing,
preliminary interviews or reference and qualification verification.Typically,
small organizations may not have in-house resources, or, in common with
larger organizations, may not possess the particular skill-set required to
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undertake a specific recruitment assignment. Where requirements arise,
these are referred on an ad hoc basis to government job centers or
commercially-run employment agencies
Better recruitment and selection strategies result in improved organizational
outcomes. The more effectively organizations recruit and select candidates,
the more likely they are to hire and retain satisfied employees.
This report focuses on recruiting and selecting individuals for employment
in an organization. Recruitment is the process of identifying and attracting
potential candidates from within and outside an organization to begin
evaluating them for future employment. Once candidates are identified, an
organization can begin the selection process.
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This includes collecting, measuring, and evaluating information about
candidates qualifications for specified positions. Organizations use these
processes to increase the likelihood of hiringindividuals who possess the
right skills and abilities to be successful at their jobs.
PURPOSES AND IMPORTANCE
The general purpose of recruitment is to provide a pool of potentially
qualified job candidates. Specifically, the purposes are to:
Determine the present and future requirements of the organization in
conjunction with its personnel-planning and job-analysis activities.
Increase the pool of job candidates at minimum cost.
Help increase the success rate of the selection process by reducing the
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.
Begin identifying and preparing potential job applicants who will be
appropriate candidates.
Induct outsiders with a new perspective to lead the company.
Develop an organizational culture that attracts competent people to
the company.
Search or head hunt/head pouch people whose skills fit the
companys values.
Devise methodologies for assessing psychological traits.
Search for talent globally and not just within the company.
Design entry pay that competes on quality but not on quantum.
Anticipate and find people for positions that do not exist yet.
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Increase organizational and individual effectiveness in the short term
and long term.
Evaluate the effectiveness of various recruiting techniques and
sources for all types of job applicants.
Recruitment represents the first contact that a company makes with
potential employees. It is through recruitment that many individuals will
come to know a company, and eventually decide whether they wish to work
for it. A well-planned and well-managed recruiting effort will result in high-
quality applicants, whereas, a haphazard and piecemeal effort will result in
mediocre ones. High-quality employees cannot be selected when better
candidates do not know of job openings, are not interested in working for the
company and do not apply.
The recruitment process should inform qualified individuals about
employment opportunities, create a positive image of the company, provide
enough information about the jobs so that applicants can make
comparisons with their qualifications and interests, and generate
enthusiasm among the best candidates so that they will apply for the vacant
positions.
The negative consequences of a poor recruitment process speak volumes
about its role in an organization. The failure to generate an adequate
number of reasonably qualified applicants can prove costly in several ways.
It can greatly complicate the selection process and may result in lowering of
selection standards. The poor quality of selection means extra cost on
training and supervision. Furthermore, when recruitment fails to meet the
organizational needs for talent, a typical response is to raise entry-level pay
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scales. This can distort traditional wage and salary relationships in the
organization, resulting in avoidable consequences. Thus, the effectiveness of
a recruitment process can play a major role in determining the resources
that must be expended on other HR activities and their ultimate success.
The purpose of selection is to pick up the most suitable candidate who
would meet the requirements of the job in an organization best, to find out
which job applicant will be successful, if hired. To meet this goal, the
company obtains and assesses information about the applicants in terms of
age, qualifications, skills, experience, etc. the needs of the job are matched
with the profile of candidates. The most suitable person is then picked up
after eliminating the unsuitable applicants through successive stages of
selection process.
How well an employee is matched to a job is very important because it is
directly affects the amount and quality of employees work. Any mismatched
in this regard can cost an organization a great deal of money, time and
trouble, especially, in terms of training and operating costs. In course of
time, the employee may find the job distasteful and leave in frustration. He
may even circulate hot news and juicy bits of negative information about
the company, causing incalculable harm to the company in the long run.
Effective election, therefore, demands constant monitoring of the fit
between people the job.
The overall aim of the recruitment and selection process is to obtain the
number and quality of employees that are required in order for the business
to achieve its objectives.
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OBJECTIVES OF THE STUDY
The objectives of this project study include :
To know the various sources of recruitment and their availability at
INDIA BULLS.
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To know various methods of selection procedures adopted by INDIA
BULLS.
To obtain the feedback from the employees about the recruitment and
selection procedures followed in the company.
To review the recruitment process and to make improvements to the
forthcoming recruitment programs at INDIA BULLS.
NEED OF THE STUDY:
Recruitment is the process of identifying that the organization needs to
employ someone up to the point at which application forms for the post have
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arrived at the organization. Selection then consists of the processes involved
in choosing from applicants a suitable candidate to fill a post. Training
consists of a range of processes involved in making sure that job holders
have the right skills, knowledge and attitudes required to help the
organization to achieve its objectives. Recruiting individuals to fill particular
posts within a business can be done either internally by recruitment within
the firm, or externally by recruiting people from outside.
PURPOSE AND IMPORTANCE OF STUDY
Determine the present and future requirements in conjunction with
personnel planning and job analysis activities;
Increase the pool of job candidates at minimum cost;
Help increase success rate of selection process by reducing number of
under-qualified or over-qualified applications;
Reduce the probability that job applicants once selected would leave
shortly;
Identify and prepare potential job applicants;
Evaluate effectiveness of various recruitment techniques and sources
for job applicants.
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SCOPE OF THE STUDY:
The scope of the study includes the following aspects of recruitment and
selection like:
The feedback from an employee.
Proper utilization of human resource planning.
Effectiveness of recruitment process and techniques.
The selection procedure is effective or not.
Cost effectiveness
LIMITATIONS OF THE STUDY:
The seniors may not dedicate much time to fill up the questionnaire
which results in not so authentic data or information.
The employees may not reveal few secrets of the company.
As the questionnaire is restricted to only 12 questions, the study could
not cover the other aspects of the subject.
Study is restricted to Hyderabad branch only.
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RESEARCH METHODOLOGY
Recruitment process shall commence with an internal search, which shall
be initiated by the Human ResourcesDepartment. In case no suitable person

is identified from within, search from the application data bank shall be
resorted to like placement agencies or by release of advertisements.
Applications will be collected either by post or personal. Intimation for
interviews shall normally be sent through mail/courier in the prescribed
format. In other cases, it may be sent through other modes like telegram,
telephone, etc.
Sample size taken for study is 100. A questionnaire is prepared according to
the parameters like human resource planning, cost effectiveness, induction,
recruitment and selection. The questionnaire is distributed to the executives
of INDIA BULLS and based on the obtained data, conclusions, suggestions
& recommendations are drawn.
The project work done in INDIA BULLS was based on the questionnaire
which was filled by the executives of the company. The questionnaire was
prepared in the area of recruitment and selection techniques and was
administered to their executives covering the following aspects:
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Advertisements in media
Placement agencies
Campus recruitment
Employment exchanges
Employee reference
Online recruitment
Sample size : 100 employees working at executive
level in the corporate office.
The sample was selected randomly.
In INDIA BULLS the above said techniques are used for search of suitable
candidates. Parameters used in the questionnaire are as follows:
Recruitment
Selection
Cost effectiveness
Based on the ratings of the employees, the effectiveness of the recruitment
and selection process in the INDIA BULLS will be clearly known.
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SOURCES OF DATA
1. Primary data
2. Secondary data
Primary data is collected in order to avoid any mistakes due to interpretation
which may arise when collected through secondary sources. The data is
collected by questionnaire method.
Secondary data is collected from the companies reports, manuals and
brochures. Through company records, books, HR reports etc.
The sampling method used was random sampling. The sampling method
was used because of lack of time and lack of knowledge about the universe.
The sample size was fixed to 100 respondents; the sampling procedure is
response form.
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STATISTICAL TOOLS USED: PIE CHART, PERCENTAGE ANALYSIS
In this research, various percentages are identified in the analysis and they
are presented pictorially by way of bar diagrams and pie charts in order to
have a better quality.
REVIEW OF LITERATURE
Corporations have started linking their Mission, Objectives, Strategies and
Tactics [MOST] to the functions of recruitment and selection. The economic
liberalizations and consequent competition through quality and services
necessitated the companies to search for and attract competent human
resources.Recruitment has been regarded as the most important function of
personnel administration, because unless the right type of people are hired,
even the best plans, organization charts and control systems would not do
much. A person unknown, living somewhere comes to a working unit
through this recruitment and selection process provided he is interested in
working.
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Recruitment is a process to discover the sources of manpower to meet the
requirements of the staffing schedule and to employ effective measures for
attracting the manpower in adequate numbers to facilitate effective selection
of an efficient workforce
--Yoder
The process of searching for prospective employees and stimulating them to
apply for jobs in the organization,
--Edwin B. Flippo
SUB SYSTEMS OF RECRUITMENT
There are four subsystems in recruitment which can be divided into further
subsystems.
1. Finding out and developing the sources where the required number
and kind of employees are are/will be available.
2. Developing suitable techniques to attract the desirable candidates.
3. Employing the techniques to attract candidates.
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COMPLEXITY OF THE FUNCTION OF RECRUITMENT:
The activity of recruitment i.e., searching for prospective employees is
affected by many factors like organizational policy regarding filling up of
certain percentage of vacancies by internal candidates,local candidates (sons
of soil) Influence of trade unions, Government regulations regarding
reservations of certain number of vacancies to candidates based on
community/region/caste/sex .and Influence of recommendations, nepotism
etc.
The other activity of recruitment is consequently affected by the internal
factors such as
Working conditions
Promotional opportunities
Salary levels, type and extent of benefits
Other personnel policies and practices
Image of the organization, and Ability and skill of the management to
stimulate the candidates
It is also affected by external factors like
Personal policies and practices of various organizations regarding
working conditions, salary, benefits, promotional opportunities, employee
relation etc.
Career opportunities in other organizations: and
Government regulations.
RECRUITMENT POLICIES
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Recruitment policy of any organization is derived from personnel policy of
the same organization. Recruitment policy itself should take into
consideration the governments personnel policies of the other organization
regarding merit, internal sources, social responsibility in absorbing minority
sections, women etc. Recruitment policy should commit itself to the
organizations personnel policy like enriching the organizations human
resources or serving the community by absorbing the worker sections and
disadvantaged people of the society, motivating the employees through the

internal promotions, improving the employee loyalty to the organization by
absorbing the retrenched or laid off employees or casual/temporary
employees or dependents of present/former employees etc.,
The following factors should be taken into consideration in formulating
recruitment policy. They are;
Government policies
Personnel policies of other compete ting organizations
Organizations personnel policies
Recruitment sources
Recruitment costs
Selection criteria and preference etc.
RECRUITMENT PROCESS
Recruitment Planning Recruitment Strategy Development
Number of contacts # Make or Buy Employees
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Types of contacts # Technological Sophistication
# Where to look
# How to look
Internal Recruitment (Source 1)
Present employees
Employee referrals
Transfers & Promotions
Former Employees
Previous Applicants
Evaluation of Internal Recruitment
External Recruitment (Source 2)
Professionals or Trade Associations
Advertisements
Employment Exchanges
Campus Recruitment
Walk-ins Interviews
Consultants
Contractors
Displaced Persons
Radio & Television
Acquisitions & Mergers
Competitors
.Evaluation of External Recruitment
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Searching
Source activation
Selling
Screening of Applications
Evaluation and Cost Control
Salary Cost
Management & Professional Time spent
Advertisement Cost
Producing Supporting literature
Recruitment Overheads and Expenses
Cost of Overtime and Outsourcing
Consultants fees
Evaluation of Recruitment Process
Return rate of applications sent out
Suitable Candidates for selection
Retention and Performance of selected candidates
Recruitment Cost
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Time lapsed data
Image projection
SOURCES OF RECRUITMENT
Sources are those where prospective employees are available like
employment exchanges. When a person is needed to fill a vacant
organization position, this individual may come from inside or outside the
company. Some companies prefer to recruit from within, since this aids
employee morale, loyalty and motivation. Other companies prefer to recruit
externally to prevent inbreeding and to encourage new ways of thinking.
INTERNAL OR EXTERNAL
Deciding whether the position is to be filled internally or externally is often
an early task in recruitment planning for a specific vacancy. In some cases
there is no decision to be made. For instance entry level jobs must be filled
externally, but for other position, the companys policy or union contract
may require that internally sources.
INTERNAL SOURCES
Internal sources include; present permanent Employees organizations
consider the candidates from internal source for higher level jobs due to:
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Availability of most suitable candidates for jobs relatively or equally to the
external sources.
To meet the trade unions demand
To the policy of the organization to motivate the present employees.
Present temporary or casual employees:
Organization find this sources to fill the vacancies relatively at lower level
owing to the availability of suitable candidates or trade union pressures or

in order to motivate them in their present jobs.
Retrenched or retired employees:
The organization takes the candidates for employment from the retrenched
due to obligation, trade union pressure. Sometimes the organizations prefer
to re-employ their retired employees as a token of their loyalty to the
organization or to postpone some inter personal conflicts for promotion etc.
Dependents or deceased, disabled, retired and present employees:
Some organizations, in an attempt to show loyalty, provide employment to
the dependents of deceased, disabled and present employees. Such
organizations find this source as an effective source of recruitment.
Employee Referrals:
Friends and relatives of present employees are also a good source from
which employees may be drawn. When the labour market is very tight, large
employers frequently offer their employees bonus or prizes for any referrals
that are hired and stay with the company for a specific length of time. Some
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companies maintain a register of former employees whose record was good
to contact them when there are new job openings for which they are
qualified. This method of recruitment, however, suffers from a serious defect
that it encourages nepotism, i.e. persons of one's community or caste are
employed, who may or may not be fit for the job.
Labour unions:
Firms with closed or union shops must look to the union in their
recruitment efforts. Disadvantages of a monopolistically controlled labour
source are offset, at least particularly, by savings in recruitment costs. With
one-fifth of the labour force organized into unions, organized labour
constitutes an important source of personnel.
Nepotism:
The hiring of relatives will be an inevitable component of recruitment
programs in family owned firms, such a policy does not necessarily coincide
with hiring on the basis of merit, but interest and loyalty to the enterprise
are offsetting advantages.
EXTERNAL SOURCES:
Organizations have at their disposal a wide range of external sources for
recruiting personnel. External recruiting is often needed in organizations
that are growing rapidly, or that have a large demand for technical, skilled,
or managerial employees. External source provide a larger pool of talent, and
they prove to be cheaper, especially when dealing with technical or skilled
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personnel who need not be offered any training in the organization, in the
long run.External source include:
Educational and training institutes:
Different types of organizations like industries, business firms, service
organizations can get experienced candidates of different types from various
educational institutions like colleges and universities imparting education in
science, commerce, arts, engineering and technology, agriculture, medicine,
management studies, etc., and trained candidates in different disciplines
like vocational, engineering, medicine from training institutions like
vocational training institutes of state government in various states, national
industrial training institute for engineers etc., all these provide facilities for
campus recruitment and selection.
Private employment agencies/consultants:
Public employment agencies are consultants like ABC consultant in India
perform the recruitment functions on behalf of a client company by charging
fee.
Public employment exchanges:
The government setup public employment exchanges in the country to
provide information about vacancies to the candidates and to help the
organizations to find out suitable candidates.
Professional organizations:
Professional organizations or associations maintain complete bio-data of
their members and provide the same to various organizations on requisition
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they also act as an exchange between the members and recruiting firms in
the exchanging information, Clarifying doubts etc., Organizations find this
source more useful to recruit the experienced and professional employees
like executives managers and engineers.
Data banks:
The management can collect the bio-data of the candidates from different
sources like employment exchange, educational training institutes,
candidates etc., and feed them in the computer can get the particulars as
and when it needs to recruit.
Casual applicants:
Depending upon the image of the organization .its prompt response,
participation of the organization in the local activities, level of
unemployment, candidates apply casually apply casually for jobs through
mail or handover the applications in personnel department.
Similar organizations: Generally, experienced candidates are available in
organizations producing similar products or are engaged in similar business.
The management can get most suitable candidates from this source.
Trade unions: Generally, unemployed or under employed persons or
employees seeking change in employment put a word to the trade union
leaders with a view to getting a suitable employment due to the latters
intimacy with management. The trade union leaders are aware of this fact
and in order to satisfy the trade union leaders, management enquires trade
unions for suitable candidates.
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Online recruitment: it has been one of the dominant sources where in
various websites provide the various opportunities and vacancies in
different companies. The candidates can directly apply for the jobs online
and also the companies can get the data bases of the candidates through
the internet.
Leasing:
To adjust to short-term fluctuations in personnel needs, the possibility of
leasing personnel by the hour or day should be considered. This practice
has been particularly well developed in the office administration field. The
firm not only obtains well-trained and selected personnel but avoids any
obligation in pensions, insurance, and other fringe benefits.
Voluntary organizations:
Organizations such as private clubs, social organizations might also provide
employees handicaps, widowed or married women, old persons, retired
hands, etc., in response to advertisements.
Computer data banks:
When a company desires a particular type of employee, job specifications
and requirements are fed into a computer, where they are matched against
the resume data stored therein. The output is a set of resumes for
individuals who meet the requirements. This method is very useful for
identifying candidates for hard to fill positions which call for an unusual
combination of skills.
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Advertising:
There is a trend toward more selective recruitment in advertising. This can
be affected in at least two ways. First, advertisements can be placed in
media read only by particular groups. Secondly, more information about the
company, the job, and the job specification can be included in the ad to
permit some self-screening.
Professional organizations or recruiting firms or executive recruiters:
Such organizations maintain complete information records about employed
executives. These firms are looked upon as 'head hunters', 'raiders' and
'pirates' by organizations which lose personnel through their efforts.
However, these same organizations may employ "executive search firms" to
help them find talent. These consulting firms recommend persons of high
calibre for managerial, marketing and production engineers' posts.
Indoctrination seminars for college professors:
Seminars are arranged to discuss the problem of companies and employees.
Professors are invited to take part in these seminars. Visits to plants and
banquets are arranged so that the participant professors may be favourably
impressed. They may later speak well of a company and help it in getting the
required personnel.
Unconsolidated applications:
For positions in which large numbers of candidates are not available from
other sources, the companies may gain keeping files of applications received
from candidates who make direct enquiries about possible vacancies on
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their own, or may send unconsolidated applications. The information may be
indexed and filed for future use when there are openings in these jobs.
SELECTION
Selection is the process of finding out most suitable candidate to the jobs.
After identifying the sources of manpower, searching for prospective
employees and stimulating them to apply for jobs in an organization, the
management has to perform the function of selecting the right employees at
the right time. The obvious guiding policy in selection is the intention to
choose the best qualified and suitable candidate for each unfilled spot. The
objective of selection decision is to choose the individual who can most
successfully perform the job from the pool of qualified candidates.
Selection Techniques
There is no shortcut to an accurate evolution of candidate. The hiring
procedures are therefore, generally long and complicated. Many employers
make use of such techniques and pseudo sciences while coming to hiring
decisions. However, in modern times, these are considered to be unreliable
measures.
The following is a popular procedure though it may be modified to suit
individual situation:
Initial or preliminary interview
Application blank or blanks.
Check of references.
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Psychological tests.
Employment interview
Approval by the supervisor.
Physical examination.
Induction or orientation.
Preliminary Interview
The more non selective the recruitment programme, the more likely it is that
a preliminary interview will be required. This initial interview is usually
quite short and has as its object the elimination of the obviously
unqualified. In many instances it is a stand-up interview conducted at a
desk or railing. The more obvious facts and impressions are of the type
generally obtained in an initial interview. Many firms do not bother to
initiate any paperwork at this early stage. If the applicant appears to have
some chance of qualifying for existing job openings, he or she is given the
application blank to complete.
Application Blank:
An application blank is a traditional, widely accepted device for getting
information from a prospective applicant which will enable a management to
make a proper selection. The blank provides preliminary as well as aid in
the interview by indicating areas of interest and discussion. It is a good
means of quickly collecting verifiable basic historical data from the
candidate. It also serves as a convenient device for circulating information
about the applicant to appropriate members of management and as a useful
device for storing information for, later reference. Many types of application
forms are generally called on the following items: biographical data,
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educational attainment, work experience, salary, personal items, and other
items such as names and addresses of previous employers, references etc.
An application blank is a brief history sheet of an employee's
background and can be used for future reference, in case of need. In a
nutshell, an application blank should be completed enough to relieve the
interviewer of the burden of recording considerable factual data.
Written Examination
The organization have to conduct return examination for the qualified
candidates after they are screened on the basis of the application blanks so
as to measure the candidates attitude towards the job, to measure the
candidates aptitude, reasoning, knowledge and English language.
Preliminary Interview:
Preliminary interview is to solicit necessary information for the prospective
applicants and not to assess the applicants suitability to the job. The
information thus provided by the candidate may be related to the job or
personal specification, regarding education, experience, salary expected,
physical requirement etc. preliminary interview is useful as a process of
eliminating the undesirable and unsuitable candidates. If a candidate
satisfies the job requirements regarding most of the areas, that candidate
may be selected for the further process. Preliminary interviews are short
and known as stand-up interviews or seizing up of the applicants or
screening interviews. Certain required amount of care is to be taken to
ensure that the desirable workers are not eliminated. This interview is also
useful to provide the basic information about the company to the candidate.
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Group Discussion
The technique of group discussion is
used in order to secure the further
information regarding the suitability of the candidate for the job. Group
discussion is a method where groups of the successful applicants are
brought around the conference table and are asked to discuss either a case
study or a subject matter. The candidates in a group are required to
analyses, discuss, find alternative solutions and select the sound solution. A
selection panel thus observe the candidates in the areas of initiating the
discussion, explaining the problem, soliciting unrevealing information

basing on the given information and using common sense, keenly observing
the discussion of others, clarifying controversial issues, influencing others,
speaking effectively, concealing and mediating arguments among the
participants and summarizing or concluding aptly. The selection panel,
basing on its observation, judges the candidates skill and ability and ranks
them according to their merit. In some cases, the selection panel may also
ask the candidate to write the summary of the group discussion in order to
know the candidates writing ability as well.
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Written Tests
The objective of the tests is to solicit further information to assess the
employee suitability to the job. Some of the important tests are;
Intelligent test
Aptitude test
Achievement test
Interest test and personality test
Situational test
Judgment test
Projective test
Final Interview
This is the most essential step in the process of selection. The interviewer
matches the information obtained about the candidate through various
means to the job requirements and to the information obtained through his
own observation during interview. Some of the types of interviews are:
A. Informal interview
B. Formal interview
C. Planned interview
D. Patterned interview
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E. Non-directive interview
F. Depth interview
G. Stress interview
H. Group interview
I. Panel interview
Psychological Tests:
The next step in the procedures outlined above is that of testing. If all
organizations, large and small, are considered, it is apparent that most are
not using psychological tests. However, there is a direct relationship between
the size and firm and the use of tests in hiring. Most of the larger companies
that can afford to have a more detailed and accurate selection procedure do
utilize some form of employment testing. It is the smaller company that
frequently does not bother with tests, but places greater reliance upon the
interview.
Medical Examination:
Certain jobs require certain physical qualities like
clear vision, perfect hearing, unusual stamina,
tolerance of hard working conditions, clear tone
etc. medical examination reveals whether or not a
candidate possesses these qualities.
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Reference Check:
The use of references is common in most selection procedures, for it involves
only a little time and money, and minimum of effort. The procedure places
reliance on the evaluation of former employers, friends and professional
personnel, checks on references are made by mail or telephone, and
occasionally in person, or by using a reference form.
After completion of the final interview and medical examination, the
personnel department will engage in checking references. Candidates are
required to give the names of reference in their applications forms.
Employment:
After taking the final decision, the organization has to intimate the decision
to the successful as well as unsuccessful candidates. The organization
sends the appointment orders to the successful candidates, either
immediately or after sometime, depending upon its time schedule. The
organization communicates the conditions of employment to the successful
candidates along with appointment order. Organizations prepare contracts
of employment and the organization and the candidates enter into the
contract. Then the candidate is employed by the organization by receiving
the joining report from the candidate formally. After this stage, the
candidate becomes the employee of the organization.
Placement:
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Placement is the determination of the job to which
an accepted candidate is to be assigned and his
assignment to that job. When once the candidate
reports for duty, the organization has to place him
initially in that job, for which he is selected.
Immediately the candidate will be trained in
various related jobs during the period of probation
of training or trial. The organization, generally, decides the final placement
after the initial training is over, on the basis of candidates aptitude and
performance during the training/probation period. Probation period
generally ranges between six months and two years. If the performance is
not satisfactory, the organization may extend the probation or ask the
candidate to quit the job. If the employees performance during the
probation period is satisfactory, his services will be regularized and he will
be placed permanently on a job.
Induction
Induction means introducing the employee who is designated as a
probationer to the job, job location, surroundings, organization,
organizational surroundings, and various employees is the final step of
employment process.
STEPS IN SCIENTIFIC SELECTION PROCESS
RECEIVING APPLICATIONS
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SCREENING OF APPLICATIONS
EMPLOYMENT TESTS
REJECTION OF UNSUITABLE CANDIDATES
INTERVIEW
REFERENCE CHECKING
MEDICAL EXAMINATION
FINAL SELECTION
SELECTION TESTS
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INDUSTRY PROFILE
HISTORY
INTRODUCTION TO STOCK EXCHANGE
The only stock exchange operating in the 19th century were those of
Bombay set up in 1875 and Ahmedabad set up in 1984. These were
organized as voluntary non-profit-making association of brokers to regulate
and protect their interests. Before the control on securities trading become a
central subject and the Bombay securities contracts (control) Act of 1025
39
used to regulate trading in securities. Under this Act, the Bombay stock
exchange was recognized in 1927 and Ahmedabad in 1937.
During the war boom, a number of stock exchanges were organized even in
Bombay, Ahmedabad and other centers, but they were not recognized. Soon
after it became a central subject, central legislation was proposed and a
committees and public discussion, the securities contracts (regulation) Act
became law in 1956.
NATURE AND FUNCTIONS OF STOCK EXCHANGE
There is an extraordinary amount of ignorance and of prejudice born out of
ignorance with regard to nature and functions of Stock Exchange. As
economic development proceeds, the scope for acquisition and ownership of
capital by private individuals also grow. Along with, it the opportunity for
Stock Exchange to render the service of stimulating private savings and
challenging such savings into productive investment exists on a vastly great
scale. These are services, which the Stock Exchange alone can render
efficiently.
The functions of Stock Exchange are as follows.
1. MAINTAIN ACTIVE TRADING: Shares are traded in the stock
exchange enabling the investors to buy and sell securities. The process may
vary from transaction to transaction. A continuous trading increases the
liquidity or marketability of the shares traded on the Stock Exchanges.
40
2. FIXATION OF PRICES: Price is determined by that flow from investors
demand and the suppliers preferences. Usually the traded prices are made
known to the public. This helps the investors to make the better decisions.
3. ENSURES SAFE AND FAIR DEALINGS: The rules, regulations and
bylaws of the stock exchange provide a measure of safety to the investors.
Transactions are conducted under competitive conditions enabling the
investors to get a fair deal.
4. AIDS IN FINANCING THE INDUSTRY: A continuous market for shares
provides a favorable climate for raising capital. The negotiability and
transferability of the securities helps the companies to raise long-term
funds. When it is easy to trade the securities, investors are willing to
subscribe to the initial public offerings (IPO). This stimulates the capital
formulation.
5. DISSEMINATION OF INFORMATION: Stock exchanges provide
information through their various publications. They publish the share
prices traded on their basis along with the volume traded. Directory of
Corporate Information is useful for the investors assessment regarding the
corporate. Handouts, handbooks and pamphlets provide information
regarding the functioning of the Stock Exchange.
6. PERFORMANCE INDUCERS: The prices of stocks reflect the
performance of the traded companies. This makes the corporate more
concerned with its public image and tries to maintain good performance.
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7. SELF-REGULATORY ORGANIZATION: The Stock Exchanges Monitors
the integrity of the members, brokers, listed companies and clients.
Continuous internal audit safeguards the investors against unfair trade
practices. It settles the disputes between members brokers, investors and
brokers.
8. REDISTRIBUTION OF WEALTH: Stock exchanges do not exist to
redistribute wealth although casual and professional investors do through
stock prices increases (that may result in capital gains for the Investor) and
dividends become a part of wealth in profitable business.
9. CORPORATE GOVERNANCE: By having a wide and varied scope of
owners, companies generally tend to improve on their management
standards and efficiency in order to satisfy the demands of these
shareholders and the more stringent rules for public corporations imposed
by public stock exchanges and the government. Consequently, it is alleged
that public companies (companies that are owned by shareholders who are
the general public and trade shares on public exchanges) tend to have better
management records than privately held companies (those companies where
shares are not publicly traded, often owned by the company founders
and/or their families and heirs, or otherwise by a small group of investors).
However, some well-documented cases are known where it is alleged that
there has been considerable slippage in corporate governance on the part of
some public companies (pets.com (2000), Enron corporation (2001), One.tel
(2001), Sunbeam (2001), Webvan (2001), Adelphia (2002), MCI world com
(2002), or Paramalat (2003), are among the most widely scrutinized by the
media).
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10. CREATING INVESTMENT OPPORTUNITIES FOR SMALL
INVESTORS: As opposed to other businesses that require huge capital
outlay, investing in shares is open to both the large and small stock
investors because a person buys the number of shares they can afford.
Therefore the Stock Exchange provides the opportunity for small investors to
own shares of the same companies as large investors.
11. GOVERNMENT CAPITAL-RAISING FOR DEVELOPMENT PROJECTS:
Governments at various levels may decide to borrow money in order to

finance infrastructure projects such as sewage and water treatment works or
housing estates by selling another category of securities known as bonds.
These bonds can be raised through the Stock Exchange whereby members of
the public buy them, thus loaning money to the government. The issuance
of such municipal bonds can obviate the need to directly tax the citizens in
order to finance development, although by securing such bonds with the full
faith and credit of the government instead of with collateral, the result is
that the Government must tax the citizens or otherwise raise additional
funds to make any regular coupon payments and refund the principal when
the bonds mature.
12. BAROMETER OF THE ECONOMY: At the stock exchange, share prices
rise and fall depending, largely, on market forces. Share prices tend to rise
or remain stable when companies and the economy in general show signs of
stability and growth. An economic recession, depression, or financial crisis
could eventually lead to a stock market crash. Therefore the movement of
share prices and in general of the stock indexes can be an indicator of the
general trend in the economy.
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CHARACTERISTICS OF STOCK EXCHANGES IN INDIA:
Traditionally, a stock exchange has been as association of individual
members called brokers, formed for the express purpose of regulating and
facilitating the buying and selling of securities by the public and institutions
at large. A stock exchange in India operates with the recognition from the
government under the securities and contracts (Regulation Act, 1956). The
member brokers are essentially the middlemen, who transact in securities
on behalf of the public for a communication or on their behalf. There are at
present 24 stock exchanges in India. The largest among them, being the
BOMBAY Stock Exchange (BSE), which alone accounts for over 80% of due
total volume of transactions in shares in the country. Securities and
Exchange Board of India (SEBI) has been setup in Bombay by the
Government to oversee the orderly development of Stock Exchange in the
country. All companies wishing to raise capital from the public are required
to list their securities on at least one Stock Exchange. Thus, all ordinary
shares, preference shares and debentures of publicly held companies are
listed in one or more Stock Exchanges. Stock Exchanges also facilitate
trading in the securities of the public sector companies as well as
Government Securities.
NEED OF A STOCK EXCHANGE:
As the business and industry expanded and economy became more complex
in nature, a need for permanent finance arose. Entrepreneurs require money
44
for long-term needs, were as investors demand liquidity. This solution to this
problem gave away for the origin of Stock Exchange, which is a ready
market for investment and liquidity. As per the Securities Contract Act,
1956, Stock Exchange means anybody of individuals whether incorporated
or not, constituted for the purpose of regulating or controlling the business
of buying, selling, or dealing in securities.
SECURITIES INCLUDE:
Shares, Scrips, Stocks, Bonds, Debentures and other Marketable
Securities.
Government Securities.
Rights or Interests in securities.
REGULATORY FRAMEWORK:
a. Securities Contracts (Regulation) Act, 1956:
It provides direct and indirect control of virtually all aspects of securities
trading and the running of stock exchange and aims to prevent undesirable
transactions in securities. It gives Central Government regulatory
jurisdiction over
i. Stock Exchanges, through a process of recognition and continued
supervision,
ii. Contracts in securities, and
iii. Listing of securities on stock exchanges. As a condition of recognition,
a stock exchange complies with conditions prescribed be Central
Government. Organized trading activity in securities takes places on a
specified recognized stock exchange. The stock exchanges determine their
45
own listings regulations, which have to conform to the minimum listing
criteria set out in the rules.
b. Companies Act, 1956:
It deals with issues, allotment and transfer of securities and various aspects
relating to company management. It provides for standards of disclosure in
public issues of capital, particularly in the fields of company management
and projects information about other listed companies under the same
management and management perception of risk factors. It also regulates
underwriting the use of premium and discounts on issues, rights and bonus
issues, payments of interest and dividends, supply of annual report and
other information.
c. SEBI Act 1992:
The SEBI Act, 1992 was enacted to empower SEBI with statutory
powers for protecting the interests of investors in securities, promoting the
development of the securities market, and regulating the securities market.
Its regulatory jurisdiction extends over corporate in the issuance of the
capital and transfer of securities, in addition to all intermediaries and
persons associated with securities markets. It can conduct enquiries, audits
and inspection of all concerned and adjudicate offences under the Act. It
has power to register and regulate all market intermediaries and to penalize
them in case of violations of the provisions of the Act, Rules and Regulations
made there under. SEBI has full autonomy and authority to regulate and
develop and orderly securities market.
BYE-LAWS:
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Besides the above act, the securities contracts (regulation) rules were
also made in 1957 to regulate certain matters of trading on the stock
exchanges. There are also by laws of exchanges, which are concerned with
the following subjects.
Opening/ closing of the stock exchanges, timing of trading, and
regulation of blank.
Transfers, regulation of badla or carryover business, control of the
settlement and other activities of the stock exchange, fixation of margins,
fixation of market prices or making up prices, regulation of taravani
business ( jobbing), etc., regulation of brokers trading, brokerage charges,
trading rules on the exchange, arbitration and settlement of disputes,
settlement and clearing of the trading etc.
STOCK EXCHANGES IN INDIA
S. No NAME OF THE STOCK EXCHANGE YEAR
1. Bombay Stock Exchange 1875
2. Hyderabad Stock Exchange 1943
3. Ahmedabad share and Stock Brokers Association 1957
4. Calcutta Stock Exchange Association Limited 1957
5. Delhi Stock Exchange Association Limited 1957
6. Madras Stock Exchange Association Limited 1957
7. Indoor Stock Brokers Association 1958
8. Bangalore Stock Exchange 1963
9. Cochin Stock Exchange 1978
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10. Pune Stock Exchange Limited 1982
11. U.P. Stock Exchange Association Limited 1982
12. Ludhiana Stock Exchange Association Limited 1983
13. Jaipur Stock Exchange Limited 1984
14. Gauhathi Stock Exchange Limited 1984
15. Mangalore Stock Exchange Limited
16. Maghad Stock Exchange Limited, Patna 1986
17. Bhuvaneshwar Stock Exchange Association Limited 1989
18. Over the Counter Exchange of India, Bombay 1989
19. Saurasthra Kutch Stock Exchange Limited 1990
20. Vadodara Stock Exchange Limited 1991
21. Coimbatore Stock Exchange Limited 1991
22. Meerut Stock Exchange Limited 1991
23. National Stock Exchange Limited 1992
24. Integrated Stock Exchange 1999
BOMBAY STOCK EXCHANGE LIMITED
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Bombay Stock Exchange Limited is the oldest stock exchange in Asia with a
rich heritage. Popularly known as BSE, it was established as the The
Native Share & Stock Broking Association in 1875. BSE has played a
pioneering role in the Indian securities market one of the oldest in the
world. Much before actual legislations were enacted, BSE has formulated
comprehensive set of Rules and Regulations for the Indian Capital Market. It
also laid down best practices adopted by the Indian Capital Markets after
India gained its Independence.
49
VISION:
Emerge as the premier Indian Stock Exchange by establishing global
benchmarks
BSE is the first stock exchange in the country to obtain permanent
recognition in 1956 from the government of India under the securities
contract act, 1956. The pivotal and pre-eminent role in the development of
the Indian capital market is widely recognized and its index, SENSEX, is
tracked worldwide. SENSEX, first compiled in 1986 was calculated on a
Market Capitalization-Weighted methodology of 30 component stocks
representing a sample of large, well established and financially sound
companies. The base year of SENSEX is 1978-79. From September 2003,
the SENSEX is calculated on free-float market capitalization methodology.
The free-float Market Capitalization-Weighted methodology is a widely
followed index construction methodology on which majority of global equity
benchmarks are based. The exchange has a nation-wide reach with a
presence in 417 cities and towns of India. The system and processes of the
exchange are designed to safeguard market integrity and enhance
transparency in operations. During the year 2004-2005, the trading volume
on the exchange showed robust growth.
The exchange provides an efficient and transparent market for trading in
equity, debt instruments and derivatives. The BSEs On The Line Trading
System (BOLT) is a proprietary system of exchange and is BS 7799-2-2002
certified. The surveillance and clearing and settlement function of the
exchange are ISO 9001:2000 certified.
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The exchange is professionally managed under the overall direction of the
Board of Directors. The Board comprises eminent professionals,
representatives of trading Members and the Managing Director of the
51
exchange. The Board is inclusive and is designed to benefit from the
participation of market intermediaries.
BSE as a brand is synonymous with capital market in India. The BSE
SENSEX is a benchmark equity index that reflects the robustness of the
economy and finance. It was the
First in India to introduce Equity Derivatives.
First in India to launch a Free Float Index.
First in India to launch US$ version to BSE sensex.
First in India to launch Exchange Enabled Internet Trading Platform.
First in India to obtain ISO certification for Surveillance, Clearing and
Settlement.
First to have an exclusive facility for financial training.
Moved from open outcry to Electronic Trading within just 50 days.
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NATIONAL STOCK EXCHANGE OF INDIA LIMITED
The National Stock Exchange of India Limited has genesis in the report of
the High Powered Study Group on establishment of NSE, which
recommended promotion of NSE by financial institutions to provide access
to investors from all across the country on an equal footing. Based on the
recommendations, NSE was promoted by leading financial Institution at the
behest of the government of India and was incorporated in November 1992
as a tax paying company unlike other stock exchange in the country.
On its recognition as a stock exchange under the Securities Contracts Act,
1956 in April 1993, NSE commenced operation in the Wholesale Debt
Market (WDM) segment in June 1994. The capital market segment
commenced operation in November 1994 and operations on derivatives
segment commenced in June 2000.
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The NSE of India Limited is the largest stock exchange of country. NSE is
settling the agenda for change in the securities markets in India. For last 5
years it has played a major role in bringing investors from 347 cities and
towns online, ensuring complete transparency, introducing financial
guarantee to settlement, ensuring scientifically designed and professionally
managed indices and by nurturing the dematerialization effort across the
country.
NSE is a complete capital market prime mover. Its wholly owned
subsidiaries; National Securities Cleaning Corporation Ltd (NSCCL) provides
cleaning and settlement of securities, India index services and products ltd
(IISL) provides indices and index services with a consulting and licensing
agreement with standard & Poors (S&P) and IT ltd forms the technology
strength that NSE works on.
54
Today, NSE is one of the largest exchanges in the world and still forging
ahead. NSE is constantly working towards creating a more transparent,
vibrant and innovative capital market.
55
COMPANY PROFILE
INDIA BULLS FINANCIAL SERVICES LIMITED
Introduction
India bulls are Indias leading Financial, Real Estate and Power Company
with a wide presence throughout India. They ensure convenience and
reliability in all their products and services. India bulls have over 640
branches all over India. The customers of India Bulls are more than
4,50,000 which covers from a wide range of financial services and products
from securities, derivatives trading, depositary services, research & advisory
services, consumer secured & unsecured credit, loan against shares and
mortgage & housing finance. The company employs around 4000
Relationship managers who help the clients to satisfy their customized
financial goals. India Bulls entered the Real Estate business in the year
2005 with its group of companies. Large scale projects worth several
hundred million dollars are evaluated by them.
India Bulls Financial Services Ltd is listed on the National Stock Exchange
(NSE), Bombay Stock Exchange (BSE) and Luxembourg Stock Exchange. The
market capitalization of India Bulls is around USD 2500 million
(29thDecember, 2006). Consolidated net worth of the group is around USD
56
700 million. India Bulls and its group companies have attracted USD 500
million of equity capital in Foreign Direct Investment (FDI) since March
2000. Some of the large shareholders of India Bulls are the largest financial
institutions of the world such as Fidelity Funds, Goldman Sachs, Merrill
Lynch, Morgan Stanley and Carillon Capital.
Growth of India Bulls
Year 2000-01:
One of Indias first trading platforms was set up by India Bulls Financial
Services Ltd. with the development of an in-house team.
Year 2001-03:
The service offered by India Bulls was increased to include Equity, F&O,
Wholesale Debt, Mutual fund, IPO Financing/Distribution and Equity
Research.
Year 2003-04:
In this particular year India Bulls ventured into Distribution and
Commodities Trading business.
Year 2004-05:
This was one of the most important years in the history of India Bulls.
In this year:
India Bulls came out with its initial public offer (IPO) in September
2004.
India Bulls started its Consumer Finance business.
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India Bulls entered the Indian Real Estate market and became the first
company to bring FDI in Indian Real Estate.
India Bulls won bids for landmark properties in Mumbai.
Year 2005-06:
In this year the company acquired over 115 acres of land in Sonepat for
residential home site development. The world renowned investment banks
like Merrill Lynch and Goldman Sachs increased their shareholding in India
Bulls. It also became a market leader in securities brokerage industry, with
around 31% share in Online Trading. The worlds largest hedge fund,
Farallon Capital and its affiliates committed Rs. 2000 million for India Bulls
subsidiaries Viz. India Bulls Credit Services Ltd. and India Bulls Housing
Finance Ltd. In the same year, the Steel Tycoon Mr. L N Mittal promoted
LNM India Internet venture Ltd. acquired 8.2% stake in India Bulls Credit
Services Ltd.
Year 2006-07:
In this year, India Bulls Financial Services Ltd. was included in the
prestigious Morgan Stanley Capital International Index (MSCI). India Bulls
Financial Services Ltd. was benefited with the Farallon Capital agreeing to
invest Rs.6,440 million in it. The company also received an in principle
approval from Government of India for development of multi product SEZ in
the state of Maharashtra. India Bulls Financial Services Ltd acquired 100%
of the equity share capital of Noble Realtors Pvt. Ltd. Noble Realtors is a
Company engaged in the business of construction and development of real
estate projects. India Bulls Real Estate Business was demerged to become a
separate entity called India Bulls Real Estate Ltd. The Board of India Bulls
58
Financial Services Ltd., Resolved to Amalgamate India Bulls Credit Services
Ltd and demerge India Bulls Securities Limited.
India Bulls Financial Services Ltd: In Year 2008-09 several developments
across its group companies have propelled India bulls forward and are
expected to continue to power the rise of this conglomerate. India Bulls
financial services limited has recently signed a joint venture agreement with
SOGECAP, the insurance arm of Society General (SocGen) for its upcoming
life insurance venture. At the same time it has also signed a Memorandum
of understanding with MMTC.On the asset management front, the company
has received formal approval uhby7hbfrom SEBI and is expected to shortly
launch its first NFO. India Bulls enter in to Public issuefor India Bulls
Power Ltd.
Promoters for India Bulls: Sameer Gehlaut, Rajiv Rattan and Saurabh Mittal
are the promoters of India Bulls Financial Services Limited While Sameer
Gehlaut will have a 23.0% stake in the company post the IPO Rajiv Rattan
and Saurabh Mittal will have a post issue holding of 11.5% and 10.1%
respectively. All the three promoters of the company are engineering
graduates while Saurabh Mittal is a management graduate as well.
The Team: India Bulls Securities Ltd, main strength lies in its formidable
team. This team comprising highly qualified and experienced personnel has
been responsible for the overall management of the company and has
provided direction in diverse areas of business strategy, operating
management, regulatory reporting, human resources development and
product development.
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Vision statement: To become the preferred long term financial partner to a
wide base of customers whilst optimizing stake holders value.
Mission statement: To establish a base of 1 million satisfied customers by
2010. We will create this by being a responsible and trustworthy partner
Corporate action: An Approach to Business that reflects Responsibility,
Transparency and Ethical Behavior. Respect for Employees, Clients &
Stakeholder groups
India Bulls Group entities in India
India Bulls Capital Services Ltd.
India Bulls Commodities Pvt. Ltd.
India Bulls Credit Services Ltd.
India Bulls Finance Co. Pvt. Ltd
India Bulls Housing Finance Ltd.
India Bulls Insurance Advisors Pvt. Ltd.
India Bulls Resources Ltd.
India Bulls Securities Ltd.
India Bulls Power Ltd.
India Bulls Securities Ltd is listed on the National Stock Exchange (NSE)
and the Bombay Stock Exchange (BSE) and its global depository shares are
listed on the Luxembourg Stock Exchange
Reasons to choose India Bulls Securities Ltd:
The India Bulls Financial Services stock is the best performing stock in the
MSCI Index the global benchmark for equity investments. A person who
bought India Bulls shares in the IPO at Rs. 19 (US$ 0.48) in September
2004 has been rewarded almost 100 times in three and a half years a feat
unparalleled in the history of Indian capital markets
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India Bulls Real Estate Limited partnered Farallon Capital Management LLC
of the US to bring the first Foreign Direct Investment into real estate.
Seven Reasons why investing with India Bulls Securities Limited is
smarter
1) Customization: Formulates investment plans based on customer
individual requirements
2) Expertise: Brings within customer reach, about institutional expertise
and companies valuable understanding of the financial markets
3) One-stop shop: Caters to all customers investment needs under one roof.
4) Trust: Enjoys the pedigree of India Bulls Securities Ltd and share its
expertise in financial services.
5) Personalized service: Helps customer through the entire investment
process, step by step, with innovative and efficient services.
6) Unbiased & Objective advice: We partner you in your investment
process, with our team of expert investment advisors
7) Online trading potential is huge: Online trading accounted for 5% of
overall market in FY04 as compared to an estimated 3% in FY03. India Bulls
currently has almost 20% market share of volumes in the Internet trading
space. The table below indicates the growth in volumes of the Internet
trading segment on the NSE over the last few years. The growth is indicative
of the potential of this segment, which we believe is likely to be robust going
forward as well.
This is primarily driven by increasing penetration of computers, significant
decline in Internet charges, convenience of usage and cost advantage. To put
61
things in perspective, the offline brokerage on equities is around 1.0% as
compared to 0.5% in the online trading space
Advisory services:India Bulls is also into mutual fund and insurance
advisory businesses. Though this field is extremely competitive and requires
significant research skills, these are highly profitable business segments.
Though these businesses currently account for an insignificant portion of
overall revenues, considering the penetration levels of mutual funds and
insurance in the country, prospects are promising.
Aggressive growth plans:India Bulls has set aggressive targets to expand
its business in the offline space. This includes investments in up gradation
of branch network and opening another 75 branches by the end of calendar
year 2009 (150 in total). The company has also indicated its intent to
acquire strategic stake in other companies towards growing the business
inorganically
Products provided Power India Bulls: An online trading system designed for
the high-volume trader. The platform provides enhanced trade information
and executes orders on an integrated software based trading platform.
India Bulls financial service offers:
SME finance
Mortgage loans
Commercial vehicle loans
Farm equipment loans
Commercial credit loans
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Loan against shares and
Third part distribution of insurance products.
Broking: Equity, Derivatives, Commodities, Currency Derivatives.
Distribution: Mutual funds, IPOs, Home loans, Insurance.
Divisions: Investment Advisory and Broking Division
Project Syndication Division: Institutional Equity Broking Division
Institutional Debt Broking Division:
Retail Offerings:
A. Wealth Management Services
B. Portfolio Management Services
C. Securities Broking-Equities and derivatives
D. Depository & Custodial Service & Distribution of financial products.
Services:
India Bulls securities provide a wide range of services that include Power
India Bulls: An online trading system designed for the high-volume trader.
The platform provides enhanced trade information and executes orders on
an integrated software based trading platform.
1) Equities
2) Commodities
3) Wholesale debts
4) Futures and options
5) Depository services
6) Equity research services
7) Post Trade -Custodial,
8) Depository Services
9) Payment Gateway
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10) Other back office support
Online Banks Tie-ups for trading: Company having online transaction tie-
ups with banks like HDFC BANK, ICICI BANK, IDBI BANK, CITI BANK.
Company Achievements:
The India Bulls Group is one of the top fifteen conglomerates in the country
with businesses in several significant sectors. The India Bulls Financial
Services stock is the best performing stock in the MSCI Index the global
benchmark for equity investments. India Bulls Real Estate Limited partnered
Farallon Capital Management LLC of the US to bring the first Foreign Direct
Investment into real estate. India Bulls Financial Services Limited was
accorded the highest rating P1+ for short term debt and the highest rating of
AAA (SO) by CRISIL for loan receivables securitization while India Bulls
Securities Limited is the only broker in India to be assigned CRISILs highest
broker quality grading of BQ1. In December 2007, India Bulls acquired
Pyramid Retail including Pyramid Mega stores and Trumart, their chain of
lifestyle and convenience outlets
Company competitors
Kotak Securities Ltd, ICICI Securities Ltd, HDFC Securities Ltd, Religare
Securities Ltd, Birla Money and Indiainfoline Ltd.
64
ABOUT INDIA BULLS GROUP
The India Bulls Group is one of the top fifteen conglomerates in the country
with businesses in several significant sectors. The group companies have a
market capitalization of over Rs.25,000 crore (US$ 6.25 billion) while group
revenues have grown at a cumulative annual rate of over 100% to now reach
Rs.3100 crore (US$ 775 million) and the group profit has surged to over
Rs.1200 crore (US$ 300 million). Its companies, listed in important Indian
and overseas markets, have distributed over Rs.700 crore (US$ 175 million)
as dividend in the year 2008.
India Bulls Financial Services Limited was accorded the highest rating P1+
for short term debt and the highest rating of AAA (SO) by CRISIL for loan
receivables securitization while India Bulls Securities Limited is the only
broker in India to be assigned CRISILs highest broker quality grading of
BQ1. In December 2007, India Bulls acquired Pyramid Retail including
Pyramid Megastores and Trumart, their chain of lifestyle and convenience
outlets. India Bulls growth has been nothing short of stupendous. In less
than eight years since the company was first registered, it has grown from
just five employees to 21,000 and from one Office to 600 across the country.
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The India Bulls Financial Services stock is the best performing stock in the
MSCI Index the global benchmark for equity investments. A person who
bought India Bulls shares in the IPO at Rs.19 (US$ 0.48) in September 2004
has been rewarded almost 100 times in three and a half years a feat
unparalleled in the history of Indian capital markets. India Bulls Real Estate
Limited partnered Farallon Capital Management LLC of the US to bring the
first Foreign Direct Investment into real estate.
Companies History in India
In 1999, three IIT-Delhi alumni Sameer Gehlaut, Rajiv Rattan and Saurabh
Mittal acquired Orbis, a Delhi based stock broking company. Young
entrepreneur Sameer Gehlaut established India Bulls in 2000, after
acquiring orbis Securities, a stock brokerage company in Delhi. The group
started its operations from a small office near HauzKhas bus terminal in
Delhi. The office had a tin roof and two computers. The idea of leveraging
technology for trading stocks led to the creation of India Bulls Incorporated
on 10th January 2000, it was converted into a public limited company on
27th February 2004. Its original idea of leveraging technology bore fruit
66
when India Bulls was accorded permission to conduct online trading on
Indian stock exchanges.
The company had achieved the distinction of becoming only the second
brokerage firm in India to be granted this consent. The challenges facing it
were immense not least of all the mind set of investors who were called to
make the big leap from traditional stock trading to a completely online
interface. Having overcome this resistance, the company later expanded its
service portfolio to include equity, F&O, wholesale debt, mutual fund
distribution and equity research.
In 2003-04, India Bulls ventured into insurance distribution and commodity
trading. It successfully floated its IPO in September 2004 and in the same
year entered the consumer finance segment. Real estate, the new sunrise
industry, was the next frontier for India Bulls. In 2004-05, it entered this
sector. But it wasnt just real estate that was booming.
Opportunities were opening up in retail and infrastructure as well. To
cement its position in the Indian business and industry firmament, India
Bulls acquired Pyramid Retail In 2007 and marked its presence in the power
sector by launching India Bulls Power.
Brand Value :
India Bulls is amongst the largest non-banking financial services companies
in India and enjoys strong brand recognition and customer acceptance. The
company attributes its dominant position in the brokerage industry to the
preferential status it enjoys with investors coupled with its forays into
various segments; the Group believes that the bulk of its brand story is yet
to be written.
67
Indeed, when a case study on Indias youngest brands which have had a
profound impact on the economy is crafted, India Bulls will feature
prominently in it.
Recent Developments:
Several developments across its group companies have propelled India Bulls
forward and are expected to continue to power the rise of this conglomerate.
India Bulls Financial Services Limited has recently signed a joint venture
agreement with the insurance arm of Society Generale (SocGen) for its
upcoming life insurance venture.
At the same time it has also signed a Memorandum of Understanding with
MMTC, the largest commodity trading house in India, to establish a
Commodities Exchange with 26% Ownership held by MMTC.
On the asset management front, the company has received formal approval
from SEBI and is expected to shortly launch its first NFO.
68
DATA ANALYSIS AND INTERPRETATION
1. How did you come to know about INDIA BULLS?

1. Employee Reference
2. Walk-in Interview
3. Website
4. Newspaper
5. Consultancies
Table -1
S No. PATICULARS NO OF RESPONDENTS PERCENTAGE

Employee
1 30 30%
Reference
2 Walk-in Interview 10 10%
3 Website 5 5%
4 Newspaper 5 5%
5 Consultancies 50 50%
Chart - 1
69
INTERPRETATION
It is clearly observed that 50% of Candidates are coming through the
consultancies; 30% are coming through employee reference; 10% are
through walk-in interview where major portion covered and the rest are 5%
through website and 5% through newspaper.
2. Were you explained about the number of rounds to be conducted in

the selection process?
1) Yes
2) No
Table 2
NO. OF
S No. PATICULARS PERCENTAGE
RESPONDENTS
1 Yes 70 70%
2 No 30 30%
Chart 2
70
INTERPRETATION
70% of the people were informed about the number of rounds in selection
process which makes them aware about the selection process.
3. What do you prefer in the selection process?

1) Group discussion
2) Role play
3) Written examination
4) Face to face interview
5) Telephonic interview
Table 3

1 Group Discussion 10 10%
71
2 Role Play 25 25%

Written
3 10 10%
Examination
Face to Face
4 50 50%
Interview
5 Telephonic Interview 5 5%
Chart - 3
INTERPRETATION
50 % of candidates prefer face-to-face interview which is the current
selection process at INDIA BULLS; for people outside of the City the
company prefers to go for telephonic round.
4. How much time is taken for the interview process?

1) Less than 2 hours
2) 2-6 hours
3) 6-8 hours
72
4) More than a day
Table 4

1 Less than 2 hours 0 0%
2 2-6 hours 10 10%
3 6-8 hours 20 20%
4 More than a day 70 70%
Chart 4
INTERPRETATION
INDIA BULLS takes more than a day to complete the whole interview process
for a candidate because it follows many rounds of Interviews depends on the
requirement and position.
5. How much time is given to you to join the organization?
73
1) Immediate spot interviews

2) 1-2 weeks
3) 2-4 weeks
4) More than one month
Table-5
NO OF
RESPONDENTS
Immediate spot
1 25 25%
interviews
2 1-2Weeks 50 50%
3 2-4Weeks 15 15%
4 More than one month 10 10%
Chart 5
INTERPRETATION
50% of the Candidates are asked to join organization within 2 weeks;

because its all depends on the urgency of the position opened.
74
6. What is the motive behind choosing the job at INDIA BULLS?

1) Financial support
2) Knowledge gaining
3) Skill enhancement
4) Career growth
Table-6
NO OF
RESPONDENTS
1 Financial support 20 20%
2 Knowledge gaining 10 10%
3 Skill enhancement 20 20%
4 Career growth 50 50%
Chart 6
INTERPRETATION
75
Most of the candidates choose INDIA BULLS for career growth because
now-a-days its all career development and enhancement matters to the
employee.
7. Do you agree candidates with more experience should be given
preference regardless to merit level?
1) strongly disagree
2) disagree
3) neither agree nor disagree
4) Agree
5) Strongly agree
Table-7
NO OF
RESPONDENTS
1 Strongly disagree 5 5%
2 disagree 2 2%
Neither agree nor
3 10 10%
disagree
4 agree 30 30%
5 Strongly agree 53 53%
Chart-7
76
INTERPRETATION
Candidates with more experience should be given preference.
8. Are you satisfied by the way the vacancies are advertised by the HR
DEPARTMENT?
1) Yes
2) No
Table-8
NO. OF
RESPONDENTS
1 Yes 78 78%
2 No 22 22%
Chart-8
77
INTERPRETATION
78%of the people are satisfied with the way the vacancies were
advertised; preference goes to the employee references.
9. Do you think INDIA BULLS spends too much in term of time and cost for
the
Recruitment process?
1) Strongly disagree
2) Disagree
3) Neither agree nor disagrees
4) Agree
5) Strongly agree
Table-9
NO OF
RESPONDENTS
2 disagree 10 10%
Neither agree nor
3 10 10%
disagree
4 agree 25 25%
78
Chart-9
INTERPRETATION
35% of the employees feel that INDIA BULLS spends too much of time and
cost for recruitment
10. Does the selection process at INDIA BULLS bring in the right candidate
for the right job?
2) Disagree
3) Neither agree nor disagree
4) Agree
5) Strongly agree
79
Table-10
NO OF
RESPONDENTS
2 disagree 10 10%
Neither agree nor
3 10 10%
disagree
4 agree 40 40%
Chart-10
INTERPRETATION
Most people feel that INDIA BULLS health bring in right candidates through
recruitment process
11. How did you feel when you were facing the interview at INDIA BULLS?
1) Confident
2) Tensed
3) Stressed
4) Relaxed
Table-11
80
NO OF
RESPONDENTS
1 Confident 30 30%
2 Tensed 20 20%
3 Stress 10 10%
4 Relaxed 40 40%
Chart-11
INTERPRETATION
Most of the candidates felt relaxed during their interview because the
environment and people are so friendly.
FINDINGS
1. Most of the recruitment at INDIA BULLS is done through consultancy,
followed by employee referrals.
81
2. The candidates are informed about the number of rounds in the
selection process.
3. Most of the candidates prefer face to face interview.
4. INDIA BULLS takes more than a day to complete the interview
process.
5. Most employees feel that the candidates with more experience should
be given reference regardless to merit level.
6. It is found that INDIA BULLS the cost of recruitment process is high
7. It is found that the interview process is conducted in an open climate
and helps them to express themselves freely.
8. It is found that the selection process of INDIA BULLS is effective in
getting the right candidate.
SUGGESTIONS
82
It would be more effective for INDIA BULLS to choose an Employee
Referral process for recruitment rather than consultancies as it would help
them to reduce the cost.
It was felt that there is a shortage of recruitment personnel as the
candidates had to wait for long time to finish the initial rounds.
It is advised that INDIA BULLS has to increase the recruitment
personnel or manage the selection process effectively.
The recruitment and selection time for a candidate can be reduced
when the internal recruitments are conducted in lieu with the client
interviews.
It was found that the Management Information System of INDIA
BULLS is not effective as the candidates themselves had to call back to
confirm their status of appointment.
Data bases of passed out graduates can be considered as a source of
effective recruitment strategy for any immediate requirement.
83
CONCLUSIONS
At INDIA BULLS most of the recruitment is done through
consultancies which in turn leads to high HR cost.
Candidates are satisfied by the way the present selection process is
conducted.
Most of the candidates choose for face to face interview which is the
current selection process at INDIA BULLS.
At INDIA BULLS the delay in the interview process is mainly due to
the client round where the recruiter needs to line the candidate for an
interview based on the clients availability.
84
QUESTIONNAIRE
1. How did you come to know about INDIA BULLS?
1) Employee Reference
2) Walk-in Interview
3) Website
4) Newspaper
5) Consultancy
2. Were you explained about the number of rounds to be conducted in the
selection process?
1) Yes
2) No
3. What do you prefer in the selection process?
1) Group discussion
2) Role play
3) Written examination
85
4) Face to face interview
5) Telephonic interview
4. How much time is taken for the interview process?
1) Less than 2 hours
2) 2-6 hours
3) 6-8 hours
4) More than a day
5. How much time is given to you to join the organization?
1) Immediate spot interviews
2) 1-2 weeks
3) 2-4 week
4) More than one month
6. What is the motive behind choosing the job at INDIA BULLS?
1) Financial Support
2) Knowledge Gaining
3) Skill Enhancement
4) Career Growth
7. Do you agree candidates with more experience should be given preference
regardless to merit level?
2) Disagree
4) Agree
86
5) Strongly agree
8. Are you satisfied by the way the vacancies are advertised by the HR
DEPARTMENT?
1) Yes
2) No
9. Do you think INDIA BULLS spends too much in term of time and cost for
the recruitment process?
2) Disagree
4) Agree
5) Strongly agree
10. Does the selection process at INDIA BULLS bring in the right candidate
for the right job?
2) Disagree
4) Agree
5) Strongly agree
11. How did you feel when you were facing the interview at INDIA BULLS?
1) Confident
2) Tensed
87
3) Stress
4) Relaxed
BIBLIOGRAPHY
BOOKS
Strategic staffing - Phillips
Recruitment and Selection- Gareth Robert
Recruitment and Selection - N.K Chanda
Case studies in HRM - Sanjay Srivastava
88
Essentials of Human Resource Management and Industrial
Relations P.SubbaRao
Human Resource Strategy, McGraw Hill J.W.Walker
Recruitment & Selection by Clarke
WEBSITES
http://www.valueaddknowledgeservices.com/
http://en.wikipedia.org/wiki/Human_resources
www.citehr.com
www.nseindia.com
NEWS PAPERS
Economics Times
Business Line
Times of India
MAGAZINES
Business World
Competition Success Review
TELEVISION
Undercover Boss on BBC
89
90

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RECRUITMENT & SELECTION

Two important functions of a human resources department are

Finally, better recruitment and selection strategies result in

The utilization of people, at least in a rudimentary form, can be traced to

were undertaken whenever people came together in a community. The

manage human resources have become more formal and specialized.

Staffing is a far more complex activity than in previous times, when

or recommendations from current employees. Equal employment

opportunity laws along with the increased complexity of positions to be

filled, require more sophisticated procedures to identify and select

the job successfully. Having determined the specific skills and

competencies, employment managers must then use carefully developed and

validated procedures in screening and evaluating job candidates.

process by which organizations evaluate the suitability of candidates for

various jobs. Without accurate planning, organizations may recruit the

wrong number or type of employees

Recruitment is the set of activities that takes place in an organization to

attract job candidates possessing the appropriate characteristics to help the

organization reach its objectives. It involves seeking and attracting a pool of

The basic purpose is to collect a group of potentially qualified people.

management has to perform the function of selecting the right employees at

the right time and for the right post.

Every organization follows the process of recruitment and selection. In INDIA

BULLS, this process shall be initiated on receiving a requisition in the

prescribed format duly approved by the Managing Director / Executive

Director. It should contain the particulars of role, responsibilities reporting

relationship, qualification etc. The selection methodology for various

positions shall be based on personal interviews.

The recruitment and selection process followed in INDIA BULLS is

comparatively well defined. Most of the candidates are recruited through

Employee Reference and Consultancy. Candidates selected are given a

candidates for personal interviews; tests like aptitude, achievement,

situational, interest, group discussion and personality development

interview should be conducted. This helps the company in selecting the

right employees and retaining them for a long time.

MEANING OF RECRUITMENT AND SELECTION

Recruitment is the process of finding and attracting capable applicants

when their applications are submitted. The result is a pool of application

from which new employees are selected. Recruitment is understood as the

the right people can be selected. Though theoretically recruitment process is

to the screening of applicationsso as to eliminate those who are not qualified

for the job.

Recruitment and selection

Applicant recruitment and employee selection form a major part of an

organization's overall resourcing strategies, which identifies and secures

people needed for the organization to survive and succeed. Recruitment

activities need to be responsive to the increasingly competitive market to

secure suitably qualified and capable recruits at all levels. To be effective,

internally or externally. Common to the success of either are well-defined

specification and versatile selection processes, reward, employment relations

and human resource policies, underpinned by a commitment for strong

employer branding and employee engagement and onboarding strategies.

training, development and other performance-enhancing activities such as

performance appraisal, succession planning and development center to

review performance and assess employee development needs and

Increasingly, securing the best quality candidates for almost all

organizations relies, at least occasionally, if not substantially, on external

recruitment methods. Rapidly changing business models demand skill and

experience that cannot be sourced or rapidly enough developed from the

existing employee base. It would be unusual for an organization to

undertake all aspects of the recruitment process without support from

third-party dedicated recruitment firms. This may involve a range of support

services, such as provision of CVs or resumes, identifying recruitment

media, advertisement design and media placement for job vacancies,