Anusha Project Report

A Study on “Recruitment and Selection Process in IT Industry”
Chapter-1
INTRODUCTION TO THE STUDY
We are in the age of LPG!!! Yes, it’s the era of liberalization, privatization and
globalization. Ever since 1991, when the then finance minister Dr. Manmohan
Singh announced the new economic policy (termed as LPG), the industrial
scenario is seeing revolutionary changes.
The giants of the Indian industry who are practically monopolies with no
competitions at all are now facing stiff competitions at all are now facing stiff
competition due to the entry of the MNCs into the Indian market. This is one of
the biggest things that have happened to the Indian customers who otherwise
were compelled to be satisfied with the substandard products in spite of playing
heavy prices.
Today the scenario has completely changed where the Indian customer has so
much of choice, both in quality and price as well. This has certainly awakened
the so-called Indian industries, which were having a pretty long sleep. Now they
must have released that, if they must have released that, if they don’t perform
they can’t survive.
All this led to stiff competition and the industries, which have kept the pace, are
now growing at a rapid pace. “Shape in or ship out”-seems to be the slogan of
the time. So, this vast competition has led the very fast growth of most of the
industries. The scenario is changing very fast and no company of any industry
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would like to fall behind in this “race” to be the leader. The Information
Technology (IT) is no exception.
India, is one of the countries blessed with abundant labor and which is also
comparatively cheaper-has been the ground for sudden increase in the number
of industries and more so in the Information Technology field. If lots of MNCs
have thought it profitable to enter the Indian market, the young Indian
entrepreneurs have not fallen behind. All this has led to the increase in the
number of companies in all industries.
Human resource invariably forms an indispensable input at one end of the IT

industry. Human beings are a resource to an organization. Like any other
material of economic resources they represent an investment whose
development and utilization require managing. There is a fundamental truth in the
cliché that “people are an organization’s more important asset.” In every
organization human resource is pivotal variable without which the inanimate
assets are worthless. Like cash put into savings account, human resource
appreciate in value.
HUMAN RESOURCE
The term human resource can be thought of as “the quality knowledge, skills,
creative abilities, talents and aptitudes of an organization’s workforce, as well as
the value, attitudes and beliefs of the individual involved.”
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HUMAN RESOURCE MANAGEMENT
DEFINITION:
“ Human Resource Management is that part of management concerned with

people at work and with their relationship into an effective organization; the men
and women who makes up an enterprise and having regard for the well-being of
the individual and of working groups, to enable them to make their best
contribution to its success.”
Edwa
rd Flippo
OBJECTIVES OF HUMAN RESOURCE MANAGEMENT
Objectives are predefined goals to which individual or group activity in an

organization is directed. Organizational objectives and individual and social goals
influence objectives of HRM. Some of them are as follows:
1. To create and utilize an able and motivated workforce, to accomplish the

basic organizational goals.
2. To create facilities and opportunities for individual or group developments
so as to match the growth of the organization.
3. To identify and satisfy individual and group needs by providing adequate
and equitable wages, incentives, employees benefits and social security
and challenging work, prestige, recognition, security and status.
4. To strengthen and appreciate the human assets continuously by providing
training and developmental programmes.
5. To maintain high employee morale and sound human relations by
sustaining and improving various conditions and facilities. Also provide
fair, acceptable and efficient leadership.
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SPECIFIC INTRODUCTION
INTRODUCTION TO RECRUITMENT
RECRUITMENT DEFINITION:
Edwin B Flippo defines recruitment as “the process of searching for prospective

employees and stimulating them to apply for jobs in the organization”
Yoder defines recruitment as “a process to discover the sources of manpower to
meet the requirements of the staffing schedule and to employ effective measures
for attracting that manpower in adequate numbers to facilitate effective selection
of efficient workforce”
RECRUITMENT IS DISTINCT FROM EMPLOYMENT AND

SELECTION
Once the required number and kind of human resources are determined, the
management has to find the places where required human resources are or will
be available and also find the means of attracting them towards the organization
before selecting suitable candidates for jobs. All this process is generally known
as recruitment.
Some people use the term ‘recruitment’ for employment. These two are not one
and the same. Recruitment is only one of the steps in the entire employment
process. Some others use the term recruitment for selection. These two terms
are not one and the same either.
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Technically speaking the function of recruitment precedes the selection function

and it includes only finding, developing the sources of prospective employees
and attracting them to apply for jobs in an organization, whereas the selection is
the process of finding out the most suitable candidate to the job out of the
candidates attracted. Formal definition of recruitment would give clear cut idea
about the function of recruitment.
OBJECTIVES OF RECRUITMENT
Attract peopleof multi-dimensional skills and experiences that suit the
persent and
Future organisational strategies.
Induct outsiders with a new perspective to lead the company.
Infuse fresh blood at all levels of the organization.
To develop an organizational culture that attracts competent people to the
Company.
To search or head hunt people whose skills fit the company’s values.
To devise methodologies for assessing psychological traits,
To seek out non-conventional development grounds of talent,
Search for talent globally and not just within the company.
To design entry pay that competes on quality but not on quantum,
To anticipate and find people for positions that does not exist yet.
FACTORS AFFECTING RECRUITMENT
Internal factors
External factors
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INTERNAL FACTORS:
The internal factors include the company’s pay package including salary, fringe
benefits and incentives, quality of work life, organizational culture, career
planning and growth opportunities, size of the company, company’s
product/services, geographical spread of the company’s operations viz., local,
national or global, company’s growth rate, Role of Trade Unions and cost of
recruitment.
The other activity of recruitment is consequently affected by the internal factors

such as:
1. Working conditions ; and
2. Promotional opportunities ;
3. Salary levels, type and extent of benefits;

4. Other personnel policies and practices;
5. Image of the organization;
6. Ability and skill of the management to stimulate the candidates.
EXTERNAL FACTORS:
The external factors include supply of and demand for human resources,
employment opportunities and/or unemployment rate, labor market conditions,
political, legal requirement and government policies, social factors, information
systems etc.
The other activity of recruitment is consequently affected by external factors such

as:
1.Personnel policies and practices of various organizations regarding working

conditions, salary, benefits, promotional opportunities, employee relations etc.,
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2.Career opportunities in other organizations;

3.Government regulations.
SOURCES OF RECRUITMENT
Recruitment can be made from internal sources and external sources. They are
described as follows:
INTERNAL SOURCES OF CANDIDATES:
Current employees are often best sources of candidates. When a candidate is

recriuted from the internal sources the strengths and weakness of its employees
are already known. It is often safer to promote employees from within since the
employees skills are already known. Inside employees may require less
orientation and training than the outsiders. There are different ways in which
candidates can be traced for recruitment from this source.
They are are as follows:
1. FINDING INTERNAL CANDIDATES:
To be effective promotions from within requires using job posting,

personal records and skill banks. ‘Job Posting’is publicizing and open job
to employees (often by literally posting it on bulletin board) and listing its
attributes, like qualifications,supervisor, working schedule and pay rate.
An examination of ‘personal recordds’ may reveal employees who are

working in jobs below their educational or skill levels. It may also reveal
persons who have potential for further training or who already have the right
background for the open job. ‘Skill Banks’ lists current employees with
specific skills.
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2. HIRING EMPLOYEES:
Today due to high turnover in some high-tech occupations-rehiring

former employees is back in style. Former employees are known
quantities and are already familiar with the company’s culture, style and
ways of doing things.
3. SUCCESSION PLANNING:
Succession planning typically includes activities like these:
o Determining the projected needs for managers and

professionals by company leve, function and skil.
o Auditing current executivestalent to project the likely future
supply from internal sources.
o Planning individual career paths based on objective estimates of
future needs and assesment of potential.
o Career counseling in the context of the context of the future
needs of the firm, as well as those of the individual.
o Accelerated promotions, with development targeted against the
future needs of the business.
o Performance-rated training and development to perpare
individuals forfuture roles as well as current responsibilities.
o Planned strategic recruitment to fill short-term needs and to
provide people to meet fututr needs.
o Actually filling the positions-via recruiters, promotion from within
and so on.
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EXTERNAL SOURCES OF CANDIDATES
The various external sources from where the company recruits its employees are
discussed as follows:
1. ADVERTISING:
Media plays a major role in selecting new candidates. To use help wanted
ads
Successfully, employers have to address two issues: the advertising and

the ad’s construction.
‘The Media’-it includes newspapers, TV, internet-all these sources

depends upon the positions for which one is recruiting. For e.g.- for
specialised employees, one can advertise in trade and professional
journals.
‘Constructing the Ad’- experienced advertisres usea four-point guide

called ‘AIDA’ (ATTENTION, INTEREST, DESIRE AND ACTION) to
construct ads. One must attract attention to the ad, or readers may just
miss or ignore it. It has to also develop interest in the job. One can create
desire by spotlighting the job’s interest factors with words such as travel or
challenge, for instance.
Finally the ad should prompt action with a statement like “call today” or
“write today for information”
2. EMPLOYMENT AGENCIES:
Employment are of several types. They are as follows:
Public and non-profit Agencies: these agencies are an important

source of blue-collar and white-collar workers. Beyond just filling jobs,
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for instance,counselors will visit an employer’s work site, review the

employers jor reqiurements, and even assist the employer in writing
job descriptions.
Other employment agencies are tied to non-profit organisations.Most

professonal and techinical societies have units that help members find
jobs. Many public welfare agencies try to place people who are in
special categories, such as those who are physically disabled or are
war veterans.
‘Private Agencies’- these are important sources of clerical,
White-collar and managerial personnel.
Temp Agencies and Alternative Staffing- employers often
Supplement their permanent workforce by hiring contingent or
Temporary worker often through temporary agencies. It is also
Known as part-time or just-in- time workers.
Alternative staffing- it is the use of non-traditional recruitment
Sources. Other alternative staff arrangements include”in house
Temporary employees”(people employed directly by the company,
but on an explicit short-term basis), and “contract technical
Employees” (highly skilled workers like engineers, who are
supplied for long-term projects under contract from an outside
technical services firm.
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3. EXECUTIVE RECRUITERS:
Executive recruiters, also called headhunters, are special employment

agencies retained by employers to seek out top-management talent for
their clients. They have many contacts are especially adept at contacting
aualified, current employed candidates who aren’t actively looking to
change jobs.
4. RECRUITING ON THE INTERNET:
A large and fast growing proportion of employers use the internet as a

recruiting tool. Using a corporate website to attract surfers requires
making it easy to use the site. This method is highly cost effective. It can
be timelier. Responses here can be very fast. Employers can use internet
support tools such as recruiter toolbox to develop online ads that include
prescreening tests, which further automate the recruting process
5. CAMPUS PLACEMENT:
Sending an employer’s representatives to college campuses to prescreen

applicants and create an applicant pool from the graduating class is an
important source of management trainees, promotable candidates, and
professional and technical employees. Time consuming and the axpensive
are the two major drawbacks of this type of recruitment.
‘College Recruiting Goals’- the campus recrutiter has two main goals-
determining whether a candidate is worthy of further considerations and
the most important one is to attract good students.
‘On-site visits’- Employers generally invite good cadidates to the

employers office or plant for an on-site visit, and there are several ways to
make this visit fruitful. The invitation letter should be warm and friendly but
businesslike, and should give the person a choice of dates to visit the
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company.the interviews should should be carefully planned and one

should stick on the schedule. Interruption should be avoided.
‘Internships’- many colleges students get their jobs through college

internships, a recriting approach that has grown bramatically in recent
years. Interships can be win-win situations for both students and
employers.
6. REFFERALS AND WALK-INS:
‘Employee Refferals’- the firm’s posta announcements of openings and

requests for referance in its bulletin and on its wallboards and intranet;
prizes or cash rewards are offered fir referrals that culminate in hiring.
Current employees can and usually will provide accrate information about
the job applicants they are referring, especially since they are putting their
own reputation on the line.
‘Walk-ins’- particularly for hourly workers, walk-ins direct applications

made at the office are a major source of applicants.
EXTERNAL FACTORS GOVERNING RECRIUTMENTS
• LABOUR MARKETS
Labour market conditions are of prime importance in recruiting non-

managerial, supervisory and middle management positions
• UNEMPLOYMENT RATE
When the unemployment rate is high, the company’s recruitment policy

may be simpler. On the otherhand as the unemployment rate drops,
recruiting efforts must be increased and new sources explored.
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• SUPPLY AND DEMAND
If the demand for specific skills is high reletive to the supply, an

extraordinary recruiting effort may be needed.
• POLITICAL AND SOCIAL CONSIDERATIONS
A reservation for underprivilaged classes of society and backward classes

is political decision.
• IMAGE OF THE COMPANY
It is the perception of the candidate about the company that matters in

attracting qualified employees.
INTERNAL FACTORS
• MANPOWER PLANNING
The company takes time to examine the alternatives regarding the

appropriate sources, numbers and most productive methods of attracting
them.
• SIZE OF THE FIRM
An organisation with large nunber of employees will not find any difficulty
in recruting than an organisation with less number of employees.
• RECRUITMENT POLICY
Most organisations have a policy of recruiting internally. Generally its

internal sourcing as employees known the company better.
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• RECRUTING BUDGET
Budget is calculated as per hire and figure is considerably low these days.
Careful manpower planning and forethought by recruiter can reduce the
recruitment costs.
• GROWTH AND EXPANSION
An organisation registering growth and expansion will have more

recruting.
RECRUITMENT POLICY
Every organisation derives a recruitment policy from the personnel policy of the
organisation. A recruitment policy helps in taking speedy decisions as regards to
requirement and makes recruitment a no-fuss deal. The recruitment policy
should commit itself to organisation’s personnel policy like enriching the
organisation’s human resources, serving the community, absorbing the weaker
sections and dis-advantaged people of the society, motivating the employees
through internal promotions, improvingthe employee loyalty to the organisation
by absorbing retrenched or laid-off employees. The recruitment policy when
formulated takes into consideration a few factors. They are:
• Government policies
• Personnel policies of other cometing organisation.
• Organisation’s personnel policies.
• Recruiting sources
• Recruting needs.
• Recruitment costs.
• Selection criteria and preference etc.
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INTRODUCTION TO SELECTION
DEFINITION:
“It is the process of differentiating between applicants in order to identify and hire
those with a greater likelihood of success in the job”
Selection is a long process commencing from preliminary interview of the

applicant and ending with the contract of employment. Selection is influenced by
several factors, the attitude of selector or pannel of interview, overall viability of
candidate.
SELECTION PROCESS:
After identifying the sources of human resources, seraching for prospective

employees and stimulating them to apply for jobs in an organisation, the
management has to perform the function of function of selecting the right
employees at the right time.
The obivious guiding policy in selection is the intention to choose the best
qualified and suitable job candidate for each unifilled job. The objective of
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. The selection procedure cannot be
effective until and unless,
• Requirement of the job to be filled, have been clearly specified

• Employee specifications (physical, mental, social, and behavioral, etc)
have been clearly formulated.
• Candidates for screening have been attracted.
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Thus, the development of job analysis, human resources planning and

recruitment are necessary prerequisites to the selection process. A breakdown in
any of these processes can make even the best selection system ineffective.
ESSENTIALS OF SELECTION PROCEDURE
The selection process can be successful if the following requirements are

satisfied:
• Some one should have the authority to select. This authority comes from
the employment requisition, as developed by an analysis of the work-load
and work-force.
• There must be some standard of personnel with which a prospective
employee may be compared, i.e. a comprehensive job description and job
specification should be available beforehand.
• There must be a sufficient number of applicants from whom the required
number of employees may be selected.
SIGNIFICANCE OF SELECTION PROCESS
Selection of personnel for an organization is a crucial, complex and continuing

function. The ability of an organization to attain its goals effectively and to
develop in a dynamic environment largely depends upon the effectiveness of its
selection programs.
In a situation where the right person is not selected, the remaining functions of
personnel management, employee-employer relations will not be effective. If the
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right person is selected, he/she is a valuable asset to the organization and if

faulty selection is made, the employee will become a liability to the organization.
FACTORS AFFECTING SELECTION DECISIONS
The goal of selection is to sort out or eliminate those judged unqualified to meet
the job and organizational requirements, whereas the goal of recruitment is to
create a large pool of persons available and willing to work. Thus, it is said that
recruitment tends to be positive while selection tends to be some what negative.
A number of factors affect the selection decision of candidates. The important

among them are:
(a) Profile matching.

(b) Organizational and social environment.
(c) Successive hurdles.
(d) Multiple correlation
PROFILE MATCHING:
Tentative decision regarding the selection of candidates (who are known) is

taken in advance. The scores secured by these known candidates in various
tests are taken as a standard to decide the success or failure of other candidates
at each stage. Normally, the decision about the known candidates is taken at
interview stage. Possible care is also taken to match the candidate’s bio-data
with the job specifications.
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ORGANIZATIONAL AND SOCIAL ENVIRONMENT:
Some candidates, who are eminently suitable for the job, may fail as successful
employees due to varying organizational and social environment. Hence,
candidates’ specifications must match with not only job specifications but also
with organizational and social environmental requirements.
SUCCESSIVE HURDLES:
In this method hurdles are created at every stage of selection process.

Therefore, applicants must successfully pass each and every screening device in
case of successive hurdles.
Hurdles in the process:
a) Application form
b) Written exams.
c) Preliminary interview.
d) Group discussions
e) Test-aptitude, technical etc.
f) Final interview.
g) Medical examination.
h) Reference checks.
i) Line/hiring manager’s decision.
MULTIPLE CORRELATIONS:
Multiple correlations is based on the assumption that a deficiency in one factor

can be counter-balanced by an excess amount of another. The composite test
score index is taken into accounting the selection tests. Hence, for broader line
cases multiple correlation method is useful and for other successive hurdles
method is useful.
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NEED FOR SELECTION SYSTEM
Every organisation has to follow a scientific selection procedure since problems

with the employee start after the selection and employment. In other words, if an
organisation selects a wrong person, it has to face a number of problems with the
particular employee. In addition to the cost of selection, training and other areas
will become recurring expenditure the company owing to the employee turnover
caused due to improper selection technique.
Every organisation is influenced by the social factors, as it is part and parcel of

the society. Hence, it has to do justice to all sections of the people in providing
employment opportunities. Hence, it should have an objective system of
selection that’s should be impartial and provide equal opportunity. Above all, the
organisation should also follow the government rules and regulations regarding
filling up of certain number of the candidates belonging to certain communities
and certain regions.
SELECTION PROCEDURE:
Selection procedure employs seversl methods of collecting information about the

candidate’s qualifications, experience, physical and mental ability, nature and
behaviour, knowledge, aptitude and the liking for judging whether a given
applicant is or is not suitable for the job. Therfore, the selection procedure is not
a single act but is essentially a series of methods or steps by which different
types of information can be secured through various selection techniques. At
each step, facts may come to light, which are useful for comparision with the job
requirement and employee specifications.
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Chapter-2
RESEARCH METHODOLOGY
DESCRIPTION OF THE RESEARCH
The encyclopedia of social science defines research as “the manipulation of
generalizing to extend, correct or verifying knowledge….”
This definition highlights the primary purpose of research, via, arriving at
generalizing and the method of manipulations that is an aspect of
experimentation adapted for this purpose.
TITLE OF THE STUDY
“ A Study on Recruitment and Selection Process in IT Industry”
RATIONALE BEHIND THE STUDY
Much so is the IT industry where human resource is the main input or ingredient
for its survival. The innovative brain behind every new technology forms the key
factor of the survival of the IT industry. The quality aspect is such an important
element in picking up the right kind of human inputs to make IT industry success.
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So it is very much evident that finding out quality human resource and
streamlining it towards the improvement of IT industry is a Herculean task. The
activity of recruitment and selection takes care of the responsibility of the much
needs quality IT professionals.
The research hence felt the need for a study of the recruitment and selection
process in the IT industry, to understand and analyze the process. Hence an
effort was made to find out the effectiveness of the recruitment and selection
process by actively studying the whole process with the help of four
consultancies. The study has been focused on recruitment and selection
process, the researcher was curious to learn as to how the fulfillment of the
quality IT professionals are made possible and how critical is the process on the
whole. Also deviations from the theoretical aspects were to be learnt and areas
for any possible improvement were to be found out.
STATEMENT OF PROBLEM
For an industry to survive and prosper in the economy, quality resources have to
be utilized. The quality aspect is such an important element in picking up the right
kind of human inputs to make IT industry success. The activity of recruitment and
selection takes care of the responsibility of the much needs quality IT
professionals.
With this background, it is very much felt the need for study and analysis of the
recruitment and selection process in the IT industry, as a vital function of HRM to
feed with a quality workforce.
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OBJECTIVES OF THE STUDY
To analyze the study on recruitment and selection process in IT industry

certain objectives are needed. They are as follows-
 To understand the recruitment and selection process with respect

to IT industry.
 To compare the practiced process with the theoretical process.
 To find out the quality of the professional hired.
 To gain a practical exposure and hands-on experience of the

recruitment and selection process.
 To study the recruitment models of the IT industry.
 To assess the effectiveness of the process practiced by IT

companies.
 To recommend suitable recommendations, if any, based on the

findings.
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SCOPE OF THE STUDY
Recruitment is a process to discover the sources of manpower to meet the

requirements of staffing schedule and to employ effective measures for attracting
manpower in adequate numbers to facilitate effective selection of an efficient
working force.
Selection is the process of differentiating between applicants in order to identify

and hire those with a greater likelihood of success in job.
Process scope:
Process scope indicates recruitment and selection procedure, factors considered

at the time of recruitment in an organization and other sources through which
resumes are accessed for fulfilling the requirements.
Content scope:
Specifies the depth and breadth of content provided to support the recruitment
and selection activities in an organization. Contents include procedure followed in
selection process, resumes, database, job portals, internal company websites,
employee referrals and other data from external sources.
Functional scope:
Defines the breadth of recruitment and selection process in an organization. As

this is the part of human resource management- which deals with the selecting a
right candidate for right job. As this HR function supports the process and content
in an organization.
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Organization scope:
Defines the recruitment and selection process in detail of an enterprise. The

scope for this in an organization is narrow or may depends on the size and the
nature of the organization.
RESEARCH DESIGN
“A research design is the arrangement of conditions for collection and analysis of

data in a manner that aims to combine relevance to the research purpose with
economy in procedure”.
The study was carried on with the association of four consultancies. The
information gathered was through discussions with recruiters. The study is based
on an “Explorative Method”.
SOURCES OF DATA COLLECTION
Primary data:
Are original source from which the researcher directly collects data that have not
been previously collected. It includes:
 Personal observations.
 Discussions with recruiters of consultancies.
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Secondary data:
These are sources containing data, which have collected and complied for
another purpose. The secondary data consists of already compiled statistical
statements and reports whose data may be used by the researchers for the
studies. The data is collected through the following:
 HRM textbooks.
 HR magazines- HRM review.
 HR websites
 Other articles from web sites and newspapers.
RESEARCH INSTRUMENT
The data collection was through ‘interview’ with recruiters of consultancies. Some
personal observations were also made while the interview was conducted for
applicants. A structured questionnaire was used to collect the data.
SAMPLE SCHEME
The study conducted on “Recruitment and Selection process in IT industry”, was

restricted to four consultancies. A structured questionnaire was used to collect
data from 25 recruiters of the consultancies. A convenience sampling
technique was used. So the sample size for the study is 25 recruiters. The
study is restricted to four consultants.
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METHOD OF DATA ANALYSIS
The data collected from various sources are analyzed and understood. Some
software was used for analyzing the data. They are MS WORD and MS EXCEL.
MS WORD is used for typing all the information and MS EXCEL was used for
presenting tables and graphs.
LIMITATIONS OF THE STUDY
1. Time constraint.
2. The study was limited to only four consultancies.
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Chapter-3
REVIEW OF LITERATURE
CORPORATE RECRUITMENT- AN ART OR A TASK
“A recruiter must ‘unlearn’ and relearn’ recruiting”
Many HR department/HR manager/ corporate recruiters/job consultants etc are

commonly called ‘recruiter’, view recruitment as a building block of the
organization and pay the price. The high supply of unemployed population
provides the employer an ample choice to make, but at the same time they
should not ignore employee’s values.
Each company tries to train and promote people in their functional areas but
tremendous effort has to be made to network these people. The emphasis should
be laid on recruiting diverse manpower in terms of the skill they possess.
The success of any organization depends largely on its workforce. The

organization has to guide the employers to work with full commitment in order to
realize the organization’s goals. Changes in the corporate values will have a
lasting impact on the values of the employees. This calls for creative and flexible
recruitment policies in order to retain the talented workers.
In the milieu, people have been caught in these constant corporate shifts in
working out their priorities and react accordingly. Some of major changes
highlighted are:
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1. Employees directing major level of energy away from career and

corporate, climbing toward family and children.
2. Today’s fast moving generation is getting to move towards self- reliance.
3. Candidates prefer to choose smaller companies because candidates
prefer fear about being lost to future rightsizing (growth)- small is
appealing.
4. Keep pace by upgrading oneself on the career front.
5. New opportunity with exit plan in place.

6. Candidates are looking for organizations, which are in tune with their own
value system.
THE GOAL OF RECRUITERS
Recruiters should not be just made to advertise vacancies, short-list applicants,

conduct interviews and send appointment letters. They should be made
conscious that they are laying the foundation of the organization. They should not
be asked to choose the best of the available, but should be expected to choose
the most appropriate of the best.
Recruiters should not make false commitments to the applicants about their
perks, future promotions, transfers etc
WHAT SHOULD RECRUITERS DO?
Gone are the days when just a small advertisements in the newspaper fetched
companies a large pool of applications. Recruitment through reference and
newspaper advertisements have given way to online recruitment. Today
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employees choose the best companies to work for. Every recruiter tries to attract
the minimum number of applications from genuine candidates.
It is very essential for a recruiter to make sure that their organization gets noticed
in the clutter and for that they need to build the brand identity of their organization
in the job market. They need to advocate a strong reason to convince a potential
candidate to apply for the job.
On the other hand, the online facility also brings in large number of junk
applications. Here comes the skill of the recruiter in picture, to identify the
competency and suitability of the persons.
WHAT SHOULD RECRUITERS IMPROVE UPON?
The continuous improvement doesn’t get restricted only to the technology

adaptation, production quality, financial status, etc., even the recruitment process
has to be continuously improved and ensured that every recruitment cycle
fetches a better employee then the previously recruited.
Just identifying the faults won’t solve the purpose. Every recruiter has to evaluate
his performance on the basis of the employee’s performance. Even if the
employee performs well, the recruiter should not feel satisfied, but constantly try
to improve upon the activities. It should be ensured that minimum activities reap
maximum benefits.
So, it is the key responsibility of the top management that chooses the best
recruiters/team and ensures, the team further recruits the genuine and motivated
people. The paradigm shifts in the environment, future prospects, economic and
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social networking, supply-demand ratio of employees, is an indicator that

corporate recruitment is no more a daily task, but an art to be mastered upon.
THE INDIAN IT – A SCENARIO
Modern organizations are facing unprecedented challenges of change.

Globalization technological innovation, the transition to a service economy, rising
expectations of the employees and the customers as well as the need to become
ethical and socially responsible are changing the architecture of the
organizations and also the way people are managed.
In the new millennium, the key to achieve organizational excellence through

HRM involves recruiting, utilizing, and retaining talent. Recruitment as a strategic
lever is intimately linked to all other subsequent HR activities.
The recruitment practices have changes over years. Earlier little systematic
recruitment research existed and it has advanced in a fragmented fashion. Lack
of methodical and professional practices along with inordinate delays were a
cause of frustration for the job applicants. The emergence of strategic human
resource management and the recognition of recruitment as a key strategic lever
led to increased research attention to recruitment issues both at the individual
and organizational level. Many organizations started exploring innovative
recruitment practices for sourcing the executives.
INDIAN IT SCENARIO
The Indian IT industry registered a double-digit growth in employment numbers

during the year 2005. This industry employs more than a million people
according to the latest survey by National Association of Software and Service
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Companies (NASSCOM). The landmark figure was crossed in the financial year
2004-2005.
According to a NASSCOM- McKinsey report, annual revenue projections for

India’s IT industry in 2008 are US$87 bn and market opening are emerging
across the four-broad sectors-IT services software products, IT enabled services,
and e-business.
Human resources are critical to the development of the Indian IT industry. In

keeping with the rapidly changing business scenario, the It companies are
recruiting not only the basis of technical knowledge, but more importantly on the
behavioral aspects (i.e. is cultural skills to ‘fit in’ within the organization). The
Indian education and training content are not mapped to specific IT career
profiles. Moreover, inadequate soft skills, lack of cross-cultural exposure and
grooming and absence of a multi-disciplinary holistic outlook are some of the
problem area.
To create professionals with international level certificates and accreditation,
NASSCOM and UGS (University Grants commission) are setting up ‘Techno-
Business Skills Development’ (TSD) centers within the premises of academic
institutions.
RECRUITMENT PRACTICES IN INDIAN IT INDUSTRY
The recruitment practices have undergone a metamorphism during the past two
decades. Traditional sources like advertisement in newspaper, campus interview,
and use of recruitment consultant’s involved considerable time and cost. At the
same time the problem of high attrition rate continued unabated. To counter
these, organizations started experimenting with more innovative methods of
talent sourcing.
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In today’s fast changing scenario, organizations face stiff competition for

attracting and acquiring the right talent. Firms started releasing advertisements in
business/IT magazines, such as Business India, Business World and Dataquest
and also on television (e.g., Top-Jobs ) aspects of their corporate communication
policy. Career fairs and events with video-shows, direct contacts with HR
managers and visiting the companies for actual demonstration have also become
popular for junior management positions.
All the major IT companies have their own websites/job sites. A number of top IT
companies are tied up with leading job-portals in India and abroad. Recently IBM
started using billboards for recruitment advertisement mainly for junior and
middle-level executive positions.
Informal sources of information such as ‘word-of-mouth’ and ‘referrals’ are being

used by top IT companies, such as Wipro, IBM, Cognizant Technologies, and
Sky Tech etc. The Employee Referral Incentive Scheme (ERIS) has been
initiated by the top management of these companies aimed at providing
handsome monetary reward to the employees for qualified referrals.
RECRUITMENT TRENDS AND DEVELOPING APPROPRIATE
RECRUITMENT STRATEGIES
Multi-skills, flexible specialization, and self-directed work teams have made the
traditional notions of a job rather outdated. These factors are compelling
organizations to fundamentally rethink and rebuild new recruitment trends and
take new initiatives. This is because India’s Development of Information
Technology (DIT) is trying to position India as a location for innovative
engineering rather than continuing to be known merely as a source of low-cost
software development.
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In order to remain competitive, companies like Cognizant Technologies hire

fresher from other streams also and invest in their training. To improve
teamwork, preference is given to those who can add value and possesses
complementary skills.
Companies have to ‘sell’ themselves aggressively and at the same time create
better image to attract the talent. Many companies resort to re-hire arrangements
wherein giving preference to ax-employees. Expatriates engineers are also a
source of recruitment to many.
Realizing the complex and varying needs, Wipro and a number of other
companies created a recruitment wing separate from HR department. This brings
focus to the resource function. To develop employees for future challenges IBM,
Motorola, and other organizations established ‘corporate universities’, which link
employees learning to organizational strategy. To reduce attrition rate many IT
companies are hiring fresher or trainees from ordinary institutes.
Some trends that are completely redefining the field of executive search and
selection include just-in-time hiring (hiring on a continual basis). Wipro InfoTech
has adopted Just-in-time approach to optimize resource costs and at time make
resources available. On-demand. The methodology used determining recruitment
numbers in Indian Companies are fast changing. Companies such as Infosys are
using quantitative methodologies based on current and projected business plan.
The use of Business Intelligence (BI), software is challenging the recruitment

scenario. Traditionally used in the areas of distribution, sales, marketing and
logistics, it is now being to make the hiring process effective. Data analysis plays
a crucial role here. BI can help recruiters –
• To identify zone/cities/companies/media from where they can recruit
talent.
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• To find the company to partner with; and

• To pick the colleges campuses that must be targeted.
IBM is currently providing information to its recruiting team from IBM’s marketing
research center regarding zones, skill-set of the would-be-hires on the basis of
comprehensive analysis. Some companies use data mining techniques to
understand the characteristics of their top performers and from this a ‘hiring
profile’ can be established to recruit individuals who possess similar
characteristics.
BI helps to gain enterprises-wide visibility on cost-management, resource

allocation, and talent acquisition process. It is used for fraud detection in resume.
Once the recruitment strategy is taken up. It needs to be tested for effectiveness.
A set of evaluation criteria is chosen at the pre-entry, entry, and post-entry super
recruiters.
The emerging recruitment strategies and practices must be flexible,

technologically advanced, innovative, inimitable, well publicized, timely cost-
effective and embedded in the organizational system. There must be
organization wide commitment to hire high quality executives by utilizing super
recruiters.
RECENT TRENDS IN SELECTION
New trends have been emerging in selection techniques along with other
areas of human resources management. The recent trends in selection
include:
• selection by invitation.
• leasing.
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• 360º selection program.
SELECTION BY INVITATION:
Management observes the performance of key executives of competitors. If the

performance of key executives is excellent or the key executives are change
agents, the management invites such executives to join the organization by
offering attractive salary and benefits. Thus, the significant performance of the
executives forms basis for selecting them by invitation.
LEASING PRESENTLY:
The organizations need to employ specialists to take-up the highly skilled jobs.
In fact, the changes in technology demand highly skilled employees. It would be
very difficult to small organizations to employ the skilled employees as they
demand high pay. Added to this employees may not have enough work. These
factors enabled the consultancy organizations to employ experts and depute
these employees to the needy companies on lease. These consultancy
organizations are principal employers and the needy organizations draw the
required employees from the pool on lease and pay the agreed fee to the
consultancy firms. The consultancy firms pay the salary to the employees.
This type of arrangement is beneficial to the consultants, employees on lease

and the industrial organizations. The business organizations can utilize the
services of the experts with less cost. The employees get high pay and benefits.
The leasing company derives surplus from its charges and fees.
360º SELECTION PROGRAM:
Normally superiors administer the selection tests and interviews. They judge the
fit between the job and the candidate. But the employee skills, knowledge and
performance affect not only superiors but also subordinates and the employees
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of the same level. Hence, the organizations started involving the subordinates
and the employees of the same level in administering the employment tests and
interviews. This type of selection program is called 360º selection program.
RECRUITMENT PROCESS OUTSOURCING
MEANING:
Recruitment Process Outsourcing (RPO) is a form of business process

outsourcing where an employer outsources or transfers all or part of its
recruitment activities to an external service provider.
RPO may involve the outsourcing of all or just part of recruitment functions and
process. The external service provider may serve as s virtual recruiting
department by providing a complete package of skills, tools, technologies and
activities. Or, RPO may involve occasional recruitment support, for example
temporary, contingency and executive search services.
HISTORY:
While temporary, contingency and executive search firms have provided RPO
services for many decades, the concept of an employer outsourcing the entire
recruiting process wasn't first realized in the mid-to-late 1990’S.
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It is claimed that the impetus for RPO was s shortage of skilled labour created by
the dot-com boom and RPO was created to fill the gap. However, cutting costs is
often cited as the main reason for other forms of business process outsourcing
and this may also be the case for RPO.
The use of RPO is also said be influenced by labour force trends. Workers
change employers more often than previous generations, which were often
employed by the same organization for their entire working life. De-regulated
labour markets have also created a shift towards contract and part-time labour
and shorter work tenures. These trends increase recruitment activity and may
encourage the use of RPO.
BENEFITS:
1. RPO's promoters claim that the solution offers improvement in quality,

cost, service and speed.
2. RPO providers claim that an economy of scale enables them to offer
recruitment processes at lower cost while economies of scope allows
them to operate as high-quality, specialists. Economies of scale and
scope are said to arise from a larger staff of recruiters, databases of
candidate resumes, and investment in recruitment tools and networks.
3. RPO solutions are also claimed to change fixed investment costs into
variable costs that vary with fluctuation in recruitment activity. Companies
may pay by transaction rather than by staff member, thus avoiding under-
utilization or sacking recruitment staff when activity is low.
PROBLEMS:
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1. Outsourcing of company processes may fail or prove a poor organizational

fit. Improperly implemented RPO could reduce the effectiveness of
recruitment.
2. The costs charged for recruitment transactions may total more than the
cost of the internal recruitment department.
3. RPO service providers may fail to provide the quality or volume of staff
required by their customers.
4. Placing all recruitment in the hands of a single outside provider may

discourage the competition that would arise if multiple recruitment
agencies were used.
5. An RPO solution may not work if the company's existing recruitment

processes are performing poorly. An RPO solution may not work if the
service provider has inadequate recruitment processes or procedures to
work with the client.
6. RPO may not resolves difficulties that organizations have hiring staff when
potential employees perceive them negatively. This will instead require
improved branding and an adjustment of image.
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7. Organizations with efficient hiring process that are viewed as employers-

of-choice by potential staff may stand to gain negligible benefits from
RPO.
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PSYCHOMETRIC TESTING AND EMPLOYEE REFERRAL –
A NEW CONCEPT IN RECRUITING
PSYCHOMETRIC TESTING IN RECRUTING
Psychometric testing turns out to be a handy tool for recruiting potential

employees. From the manufacturing sector to BPO, from FMCG to Banking,
there is hardly any domain that does not require organizations to assess its
employees’ personality.
Recruit the right people for the right jobs is an elusive art. The high rates of
attrition and lack of candidates possessing the appropriate qualities bear
testimony to the fact that organizations have not been getting their recruitment
process right. When faced with such dilemma, However, though psychometric
testing is not exactly new, organizations still haven’t been able to make most of it.
Some HR units are not even aware of the concept and are completely oblivious
to its benefits.
The lack of inclination towards psychometric testing can also be attributed to the
fact that it is slightly lengthy process to start with. Therefore, rather than trying to
find out what lies beneath, organizations tend to carry on with traditional modes
of selection, that merely test the candidate’s subject knowledge, or perhaps they
are skeptical of treading unknown territory.
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WHAT ARE PSYCHOMETRIC TESTS?
Psychometrics is a part of psychology concerned with determining a person’s

aptitude towards different kinds of jobs. Psychometric tests are designed to
produce a quantitative assessment of one or more psychological attributes like
reasoning ability, interests, propensity, and disposition, etc.
A psychometric test is a structure technique used to generate a careful sample of

behaviour. This behavior sample is used to make inferences about the
psychological attributes of people, who have been tested on attributes like
intelligence, self – esteem etc. By definition, psychometric tests may vary from
organization to organization. Myers – Briggs Type Indicator (MBTI) and PF 16
are two common types of tests. However, the objective remains the same: to
screen candidates at the initial stage of recruitment. In a majority the
psychometric tests, there are statements or situations to which a person
responds. There are also tests which have pictures and abstracts. The experts in
the field advise Psychometric tests are highly reliable and the success rate is
high, provided a standardized test is being used and depending on the objective
it is developed for. However, psychometric testing should not be used as a stand
alone technique.
Tests essentially fall into two main groups, ability and personality. Personality
testing helps to build a profile of characteristic, behavioral style and personality.
Ability and aptitude testing measure natural talent, and current and future
potential. Psychometric tests are usually given in the form of paper and pencil
questionnaires, but can also be computer-administered. In its simplest form, a
test will have a set of questions or tasks for the subject to complete, known as
test items. However, simulations like in–tray exercises which may consist of
memos, letters, etc that give feedback on the abilities like organizing, decision,
decision making and written communication are becoming increasingly popular in
testing used by employers,’ says a Manager- Recruitments, of a large company.
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ADOPTING PSYCHOMETRIC TESTS:
The prime objective of the test is to penetrate deeper and deeper into the
candidate’s psyche. The multistage test strives to find out the most from a
candidate. Some of the most important thing about the people cannot be easily
done by observation and interviews. His/Her attitude, personality characteristics,
abilities and aptitude cannot be viewed directly. Psychometric assessment is
assessing a person and also measuring the psychological differences between
people asserts a HR Professional. Also the results have shown that the accuracy
level through psychometric tests is nearly 85% whereas through traditional
modes, it is around 65%.
The business scenario in India is getting more complex. Companies are also
realizing that domain knowledge is not tha only trait a candidate needs to have;
key attributes like EQ also play significant role in creating a win-win situation for
all concerned. Psychometric testing is a useful tool while planning development
programs for employees. It can also be used as an additional source of
information as an behavioral aspects of a candidates personality as an aid for
making hiring decisions post the interviews.
Psychometric Testing in India (like all over the world) is bound to grow rapidly-
but there is a need to train qualified psychometric assessors.
However psychometric tests are not a panacea to all the recruitment maladies.
They should not be used as a standalone technique and should be used as one
of the special options of recruiters. At the same time, professionals also need to
be specially trained to carry out tests. If this is done, candidate selection and
hiring will become a whole lot less tedious.
Testing is also growing more sophisticated; apart from detailed questionnaires,

data mining like finding out more about the music someone likes, the books they
prefer to read and even the e mail IDs they choose can say a lot about an
individual and his personality if used prudently. If used inappropriately, these
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tests can be quite useless and possibly harmful said a psycho-analysis expert in
the field.
DIFFERENT TYPES OF PSYCHOMETRICS TESTS USED IN

SELECTION PROCESS
Tests are classified into five types. They are:
(i) Aptitude tests

(ii) Achievement tests
(iii) Situational tests
(iv) Interest tests
(v) Personality test
1. APTITUDE TESTS:
These tests measure whether an individual has the capacity or latent ability to
learn a given job if given adequate training. Aptitudes can be divided into general
and mental ability or intelligence and specific aptitude such as mechanical,
clerical, manipulative capacity etc.
Intelligence Tests:
These tests in general measure intelligence quotient of a candidates. In detail

these tests measure capacity for comprehension, reasoning, word fluency, verbal
comprehension, numbers, memory and space .Other factors such as digit spans
—both forward and backward, information known, comprehension, vocabulary,
picture arrangement and object assembly.
Though these tests are accepted as useful ones, they are criticized against
deprived sections of the community. Further, it is also criticized that these tests
may prove to be too dull as a selection device.
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2. ACHIEVEMENT TESTS:
These tests are conducted when applicant claims to know something as these
tests are concerned with what one has accomplished These tests are more
useful to measure the value of specific achievement when an organization
wishes to employ experienced candidates.
These tests are classified into:

(a) Job Knowledge test; (b) Work sample test.
Job Knowledge Test:
Under this test a candidate is tested in the knowledge of a particular job. For
example, if a junior lecturer applies for the job of a senior lecturer in commerce,
he may be tested in job knowledge where he is asked questions about
Accountancy principle, Banking, Law, Business Management etc.
Work Sample Test:
Under this test a portion of the actual work is given to the candidates as a test
and the candidate is asked to do it. If a candidate applies for a post of lecturer in
Management he may be asked to deliver a lecture on Management Information
System as work sample test.
Thus, the candidate’s achievement in his career is tested regarding his

knowledge about the job and actual work experience.
3. SITUATIONAL TEST:
This test evaluates a candidate in a similar real life situation. In this test the
candidates is asked either to cope with the situation or solve critical situations of
the job.
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(a) Group Discussion:
This test administered through group discussion approach to solve a problem

under which candidates are observed in the areas of initiating, leading, proposing
valuable ideas, conciliating skills, oral communicating skills, coordinating and
concluding skills.
(b) In Basket:
Situational test is administered through ‘in basket’ The candidate, in this test, is
supplied with actual letters, telephone and telegraphic message, reports and
requirements by various officers of the organization, adequate information about
the job and organization. The candidates is asked to take decisions on various
items based on the in basket information regarding requirements in the
memoranda.
4. INTEREST TEST:
These tests are inventories of the likes and dislikes of candidates in relation
to work, job, occupations, hobbies and recreational activities. The purposes of
this test is to find out whether a candidate is interested or disinterested in the
job for which he is a candidate and to find out in which area of the job
range/occupation the candidate is interested. The assumption of this test is
that there is a high correlation between the interest of a candidate in a job and
job success. Interest inventories are less faked and they may not fluctuate
after the age of 30.
5. PERSONALITY TESTS:
These tests prove deeply to discover clues to an individual’s value system,

his emotional reactions and maturity and characteristic mood. They are
expressed in such traits like self-confidence, tact, emotional control, optimism,
decisiveness, sociability, conformity, objectivity, patience, fear, distrust,
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initiative, judgment dominance or submission, impulsiveness, sympathy,

integrity, stability and self-confidence.
(a) Objective Tests:
Most personality tests are objective tests as they are suitable for group testing
and can be scored objectively.
(b) Projective Tests:
Candidates are asked to project their own interpretation of certain standard

stimulus situations basing on ambiguous pictures, figures etc, under these
tests.
Personality tests have disadvantage in the sense that they can be faked by
sophisticated candidates and most candidates give socially acceptable answers.
Further, personality inventories may not successfully predict job success.
EMPLOYEE REFERRALS IN RECRUITING
“Employee referral -is a system where an existing employee refers the resume of
his or her contact for an opening in the same organisation.”
Indian companies started looking at employee referrals from the end 2001.
However, no one was really active till recently. On an average employee referrals
account for over 40% of India’s IT hiring and it’s likely to cross 60% in the next
couple of years.
With the cost of hiring starting to burn deep holes in their pockets, Indian tech
corporates are betting high on the ‘Bring your Buddy’ policy.
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When recruitment is outsourced a single, entry level hire costs a minimum of Rs.
20,000, while this can go over Rs. 50,000 in those with 1-3 years’ experience and
even a couple lakhs of rupees in case of senior-level recruits. When the same
hiring is routed through employee referrals, the cost comes down by 80%. That’s
where referrals – getting employees to recommend their friends, family members
and relatives etc.,—make great financial sense to enterprises.
Many IT companies have already put a 40% bar on outsourced hiring, and are
busy dishing out attractive bonuses and cash incentives for employees to
encourage referrals. Bringing buddies to work fetch employees between Rs.
10,000 to Rs. 50,000 depending on the position, profile and package, of the
recruit.
Advantages:
• It saves time in sourcing the resumes from different job portals and
database etc.
• It ensures right kind of candidate for right job.
• It is cost effective.
• If a candidate is referred and is selected, the person who referred will be
rewarded, if the candidate servers continiously for more than 3 months.
• For multiple referrals, there are quarterly sshemes of rewards, the awards
of which are over and above the monetary rewards. For 1-15 referrals and
the highest prize is a bike.
• Employee referrals acts as an employee morale for an individual in the
organisation. In turn that employee works for the prouductivity of the
organisation.
Employee referrals account for around 40% of lateral hiring in Infosys. It’s quality
and cost-effective way of hiring said the VP & Head of HR Infosys Technologies.
Referrals reduce costs by over 60% and brought in around 2,000 of Patni’s
recruits, of the total recruitment of 4,400.
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Wipro Technologies, said employee referrals are also an effective tool to stem
the tide of attrition. When friends work together, they are seen to be less likely to
leave a company soon. Referrals help culture adaptation and tech familiarity.
HR-global head of TCS says the number of those hired through the employee
referral channel has increased in the last two years by almost 175% in the
company and expect this to increase further by 50% this year despite a higher
recruitment base.
SAP Labs India hired 60% of its 3,000 fresh recruits through referrals as against
30% the previous year. Cisco hires 55% to 60% of employees through referrals
in India. Employees are the best means to attract new talent because they
understand the culture and psyche of the organization.
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Chapter-4
IT INDUSTRY STUDY
RECRUITMENT AND SELECTION PROCESS IN IT
INDUSTRY
In the new millennium, the key to achieve organizational excellence through

HRM involves recruiting, utilizing and retaining talent. Recruitment as a strategic
lever is a intimately linked to all other subsequent HR activities.
Recruitment is a process to discover the sources of manpower to meet the

requirements of the staffing schedule and to employ effective measured for
attracting manpower in adequate number to facilitate effective selection of an
working force.
Recruitment is the discovering of potential applicants for archial or anticipated
organizational vacancies.
Selection procedure employs several methods of collecting information about the

candidate’s qualifications, experience, physical and mental ability, nature and
behaviour, knowledge, aptitude and the liking for judging whether a given
applicant is or is not suitable for the job. Therfore, the selection procedure is not
a single act but is essentially a series of methods or steps by which different
types of information can be secured through various selection techniques. At
each step, facts may come to light, which are useful for comparision with the job
requirement and employee specifications
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STEPS OF HIRING IN IT INDUSTRY
MANPOWER REQUISITION FORM
A detailed job analysis is conducted to identify the skills required to do a job, the
sources, which can be tapped and hence making the sourcing focused. Hence
the primary objective of the generation of the manpower requisition form is to
identify what the job entails and what an incumbent employee must posses to
perform successfully on the job.
Contents of manpower requisition form
Job description Job specification
Job title Education
Location Experience
Job summary Behavioral skills
Duties Specific functional skills
Job role Industry required experienced
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STRATEGY DEVELOPMENT
Once it is known the number and type of recruits are required consideration is
given to
1. Sources or recruitment to be considered
This step would enable analyzing cost benefit of recruitment-
• Job Portals
• Internal Candidates
• Advertisement on company websites
• Campus placements
• Walk-ins
2. Companies where the required hires may be employed- keeping the

information about the companies where in the desired applicant would be
employed helps in sourcing the candidates on a job portal.
3. Time constraint- time frame is laid down for each step in recruitment. It
also helps in control and evaluation of the process.
This gives the staffing members involved a clear idea of any requirement or
hurdles in the process.
C. SOURCING RESUMES FOR REQUIREMENT
1. JOB PORTALS
The most preferred job portals by the industry are Naukri.com,
Monster.com and Times of India.com.
Following are the services provided by it:
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• Search resumes
a) Advanced search: go through the entire CV and search for
the specific details like current employer, designation, key
skills, experience etc. the search should be comprehensive
and powerful. It should be focused depending on the
requirement of the recruiter.
b) Full resume search: search the entire CV. The search should
be broad nothing important about the applicant should be
missed.
c) Role search: head hunt using the role and designation of the
applicant to get the targeted results.
d) Basic search: it is useful for the initial search. Yields targeted
results for instance sales manager.
• Review/manage/modify job postings

Keywords that describe the job, fields to be searched and dates
can search postings.
• Repost inactive jobs

Keywords that describe the job, fields to be searched and dates,
job types Can search posting.
D. EMPLOYEE REFERRALS
This position is made open to existing employees for referring friends and family.
The documents containing the details of manpower requisition from are pasted
on various notice boards through out the premises of the organization and also
mailed to all the employees of the company. They also mention the name, e-mail
address and contact number of the staffing partner concerned.
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The response is captured on a excel sheet containing the details of the employee
referred, name of the candidate who is being referred, his or her experience,
qualification, skills, location. The employee who refer suitable candidate are
awarded the referral amount is given only after the candidate completes its three
months of services in the organization.
E. COMPANY WEBSITE
The open position is also published at the company website. This is done
through the help of corporate communication department. The details regarding
the position, contact details and minimum qualifications and skills required for the
job are given and response is received. The response is received and is sorted
out in the same manner as employee referral. The details of the candidates are
maintained in an excel sheet and used as source of database. This is revised
regularly.
F. DATABASE
The database is maintained in an excel sheet format and consists of resumes

sent to the business manager with details of candidates profile, comments of the
manager, interview date etc. if the requirement is such that a candidate is found
not suitable for a position in one business unit, is found suitable for another unit,
the candidate is then found reconsidered for an opening in the organization. By
applying various filters of qualification, experience, position or employer the data
is made accessible in recruitment database. The database should be updated
regularly in terms of qualification of the candidate and resumes should be sent to
business manager.
An updated database is one of the important efforts to be made to streamline the
hiring process.
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G. PRE-SCREEN THE RESUMES
The resumes received from various should be pre-screened before sending it to

the business manager. The purpose of pre-screen is to remove the candidates
who are visibly unqualified for the job. It is done in the following way:
Telephonic pre-screen
The candidate is contacted over the phone and the following details are taken-
• Ever interviewed in this organization.
• Graduation, year of pass out.
• Total years of experience
• Current employer and designation
• Job responsibility
• Total cost to company reasons for leaving the present job.
• Time required to join
• Relocation.
F. SELECTION INTERVIEWS
Selection is the process of picking the individuals with requisite qualification and
competence to fill jobs in the organization. It is a very crucial process in the
organization for at least two reasons:
• Firstly work performance depends on individuals. The best way to improve
performance is to give people who have the competence and willingness
to work.
• Secondly, the cost incurred in recruiting and hiring personnel speaks
about the role of selection.
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SELECTION PROCESS IN IT INDUSTRY
1. SELECTION TESTS:
The tests that are conducted are purely technical and aim at knowing the
technical know-how of the candidate. The test is conducted only for those
candidates with less than three years of experience. Following are the
tests conducted:
• Technical paper-one hour.
• Aptitude test-30 minutes.
• English paper-10 minutes.
Staffing team changes the paper every three months changes test paper.
The cut- off mark is hence different for different papers.
2. TECHNICAL ROUND OF INTERVIEW:
The most favored is selection technique used by most of the

organizations. Interview is an in-depth formal conversation conducted to
evaluate the applicant’s acceptability. It is considered to be an excellent
selection device. Its popularity is because of its flexibility; it can be
adapted easily to managerial skilled, unskilled and profession employees.
It allows a two-way exchange of information, the technical team about the
applicant also learns about the organization.
The selection interview consists of an extensive technical discussion;

where in the technical team asks various technical questions to the
applicant.
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The applicant is also asked to make presentations, draw technical

diagrams etc. it is necessary that a panel of at lest three people take the
interview so that subjectivity is not included.
Initially the colleagues of vacant profile take the interview and then only
there is a final interview by project manager or senior manager.
3. HR ROUND OF INTERVIEW:
The HR round of interview is not just a formality, apart from salary

discussions and negotiations and various non-technical abilities such as
ability to work under stress, decision-making skills and time management
are assessed in the HR round of interview.
The HR round is to ensure that the candidate and the organization is not a
mismatch in terms of work culture, aspirations etc.
After discussing about the candidate with the technical team HR gives its
final decision.
4. SELECTION DECISION:
After obtaining the information through preceding steps, selection

decision-the most crucial part of all steps must be made. The views of
managers will be generally considered in the final selection because it is
he who will be for the performance of new employee. The HR teams also
play a crucial role in the selection process.
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5. REFERENCE CHECKS:
The organization requests the names, address and occupations for the
purpose of verifying information perhaps gaining additional background
information of an applicant.
Although listed on the application form, references are not usually
checked until an applicant has successfully reached fourth stage of
sequential process.
Previous employer’s, colleague can act as good references. Previous co-
workers are preferable because they are aware of the applicant’s
performance.
Reference checks serve two papooses-
• To gain about the potential employee from people who have
previous experience with him or her.
• To assess the potential success of a prospect.
6. MEDICAL TEST:
After selection decision and before the job offer made the candidate has to
undergo a physical fitness test. A job offer is contingent upon the
candidate being fit after physical examination.
Following are the objectives of physical fitness test-
• To detect if the individual carries any infectious disease.
• The test assists in determining whether the applicant is physically fit
to perform the work.
• Medical check-up protects with health detects from undertaking
work that could be detrimental to them or otherwise endanger the
employer’s property.
• Finally, medical examination will protect employer from worker’s
compensation claims that are not valid because the injuries or
illness were present when the employee was hired.
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7. JOB OFFER:
The final step in the selection process is the job offer. This offer is made
through an offer letter. The offer letter is final confirmation from the
organization as to the person has cleared all selection criteria except the
medical test.
Following are the contents of the offer letter:

• Designation.
• Date of joining.
• Location.
• Business unit.
• Salary break up.
• Timing of office.
• Documents to be brought while joining medical to be conducted.
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Chapter-5
ANALYSIS AND INTERPRETATION OF DATA
ANALYSIS AND INTERPRETATION OF PRIMARY DATA
A research was conducted on “Recruitment and Selection Process in IT

Industry”. This study was conducted in association with four consultancies. The
study was restricted to four consultancies. Certain observations were made while
the recruitment process was carried on in consultancies and certain analyses
were made.
The information collected was through questionnaire and some while

discussions. Primary data gathered from this questionnaire have been classified,
tabulated, analyzed and interpreted by using graphs like pie chart, bar graphs
etc.
59
TABLE- 1
SOURCING OF RESUMES FOR REQUIREMENTS
Sources No of recruiters % Of sources used
Job portals 5 20
Advertisements 5 20
Database 3 12
Employee referral 9 36
Consultancy 3 12
Total 25 100
Source: survey data
Analysis: It is observed that 36% of the resumes are sourced through employee
referral, 20% of the resumes are sourced through job portals, 20% of them
trough advertisements, 12% of the resumes are sourced through database and
12% of them are sourced through consultancies.
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CHART-1
SOURCING OF RESUMES FOR REQUIREMENTS
sourcing of resumes for requirements
40 36
Percentage of sources
35
30
25 20 20
20
15 12 12
10
5
0
job portals advertisements database employee consultancies
referral
Sources
Inference: From the chart we can infer that most of the resumes are sourced
through employee referral and other resumes through job portals, advertisements
and some through database and consultancy.
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TABLE-2
FACTORS CONSIDERED AT THE TIME OF RECRUITMENT
Factors No of recruiters % of factors
Technical knowledge 8 32
Qualification 4 16
Work experience 4 16
Communication skill 2 8
All the above 7 28
Total 25 100
Source: Survey data
Analysis: It is observed from the table that, 32% of them prefer technical
knowledge at the time of recruitment, 28% of them prefer all the above-
mentioned factors, 16% of them prefer for qualification, 16% of them work
experience and 8% of them prefer for communication skill at the time of
recruitment.
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CHART-2
FACTORS CONSIDERED AT THE TIME OF RECRUITMENT
Factors considered at the time of recruitment
35 32
28
Percentage of factors
30
25
20 16 16
15
10 8
5
0
technical qualification work communication all the above
knowledge experience skill
Factors
Inference: From the chart we can infer that all the factors like technical
knowledge, qualification, work experience, communication skill is considered at
the time of recruitment. Most preferred is technical knowledge at the time of
recruitment.
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TABLE-3
LEVEL OF ACCEPTANCE FOR RECRUITMENT PROCESS BEING
OUTSOURCED FOR NEW ORGANIZATION
Acceptance No of recruiters % of acceptance by

recruiters
Yes 20 80
No 5 20
Total 25 100
Source:Survey data
Analysis: It is observed that, 80% of the recruiters feel that recruitment process
should be outsourced for new organization and 20% of the recruiters feel that
recruitment process should not be outsourced for new organization.
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CHART-3
LEVEL OF ACCEPTANCE FOR RECRUITMENT PROCESS BEING

OUTSOURCED FOR NEW ORGANIZATION
Acceptance for recruitment process outsourced for new

organisation
no
20%
yes
80%
yes no
Inference: From the chart we can infer that most of the recruiters feel that
recruitment should be outsourced for new organization.
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TABLE-4
IMPLEMENTATION OF MODERN TECHNOLOGY IN
RECRUITMENT MAKES RECRUITMENT PROCESS EASY
Acceptance No of recruiters % of acceptance
Yes 18 72
No 7 28
Total 25 100
Source: Survey data
Analysis: It is observed that 72% of the recruiters feel that implantation of

modern technology in recruitment makes the process easy and 28% of them feel
that it’s implantation is not easy.
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TABLE-4:
IMPLEMENTATION OF MODERN TECHNOLOGY IN
RECRUITMENT MAKES RECRUITMENT PROCESS EASY
Implementation of modern technology in recruitment makes

recruitment process easy
80
60
Percentage of
40
acceptance
20 72
28
0
yes no
Acceptance
Inference: From the chart it is observed that most of the recruiter feels that
implementation of modern technology in recruitment makes the recruitment
process easy.
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TABLE-5
FACTORS INFLUENCING CANDIDATES TO JOIN AN
ORGANIZATION
Influential factors No of recruiters % of influential factors
Pay package 6 24
Corporate image 3 12
Abroad opportunities 1 4
All the above 5 60
Total 25 100
Source: survey data
Analysis: It is observed that 60% of recruiters feel that all the above factors like
attractive pay package, corporate image and abroad opportunities influences a
candidate to join an organization, 24% of them feel that they join for attractive
pay package, 12% of them feel that they join for corporate image of the
organization and 4% of them feel that they join for abroad opportunities.
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CHART-5
FACTORS INFLUENCING CANDIDATES TO JOIN AN
ORGANIZATION
Factors influencing candidates to join an organisation
70
60
Percentage of factors
60
50
40
30 24
20 12
10 4
0
pay package corporate image abroad opportunity all the above
Factors
Inference: From the chart it is observed that all the factors like attractive pay
package, corporate image, and abroad opportunities etc influences a candidate
for joining an organization.
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TABLE-6
OPINION FOR RECRUITMENT PROCESS BEING OUTSOURCED

FOR NEW ORGANIZATION
Opinion No of recruiters % of opinions
Good 14 56
Average 7 28
Poor 4 16
Total 25 100
Source: Survey data
Analysis: It is observed that, 56% of the recruiters opines that it is good

to outsource their recruitment, 28% of them feel recruiting is average when
outsourced and 16% of them feel that recruitment process when
outsourced it will be poor.
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CHART-6
OPINION FOR RECRUITMENT PROCESS BEING OUTSOURCED

FOR NEW ORGANIZATION
opinion for recruitment process being outsourced
poor
14%
average
25% good
61%
good average poor
Inference: From the chart we can infer that most of the recruiters opines that
outsourcing recruitment process is good.
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TABLE-7
REASONS FOR ATTRITION RATE IN IT INDUSTRY
Reasons No of recruiters % of reasons
High stress 9 36
Nature of job 2 8
Loss of identity 1 4
Wrong hiring policies 7 28
Mismatched measures 6 24
and rewards
Total 25 100
Sources: Survey data
Analysis: It is observed that 36% of them feel that reason for attrition rate is due
to high stress, 28% of them feel that it’s because of wrong hiring policies,24% of
them feel that it is because of mismatches measures and rewards, 8% of them
feel it’s due to nature of job and 4% feel that it is because of loss of identity.
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CHART-7
REASONS FOR ATTRITION RATE IN IT INDUSTRY
Reasons for attririon rate in IT industry

Percentage of reasons
40 36
35
28
30 24
25
20
15
8
10 4
5
0
high stress nature of job loss of identity wrong hirihg mismatched
policies measure and
rewards
Reasons
Inference: From the chart it is observed the major reason for attrition rate in IT
industry is due high stress level at the work place.
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Chapter-6
SUMMARY OF FINDINGS, SUGGESTIONS AND
CONCLUTION
FINDINGS
The findings are based on information gathered through discussions with

recruiter and analysis. In the present study primary data plays a major role:
1) More the work experience, a candidate undergoes less number of rounds

in the selection process.
2) Sourcing of resumes for requirements are job portals,

advertisements, databases, employee referral and consultancies.
3) Different factors / criteria’s at the time of recruitment are technical

knowledge, qualification, work experience and communication skill.
4) The channel or the medium used to attract new employees from outside
by-
• New firm- newspaper and Recruitment process outsource.
• Established firm- word of mouth, specialized magazines, and online
recruitment.
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5) The most preferred type of recruitment in various level of management-

• New firm-
Top-level management- either internal recruitment or external
recruitment
Middle level management-both internal and external recruitment
Lower level management- most preferred is external recruitment and to
some extent internal recruitment.
• Established firm-
Top-level management- internal recruitment
Middle level management- most preferred is external recruitment and
to some extent internal recruitment.
Lower level management- both internal and external recruitment
6) Most of the recruiters opine that recruitment process being outsourced is

Good for new firms. It is an added advantage for the firm.
7) Most of the recruiters feel that Implementation of modern technology in

Recruitment makes the recruitment process easy.
8) The factors which influences a candidate for joining an organization are

Attractive pay package, corporate image and abroad opportunity.
9) Attrition rate in the IT industry are because of the

following reasons:
• High stress levels at the job.
• Monotonous nature of the job.
• Demand-supply disparity.
• Loss of identity.
• Wrong hiring policies.
• Mismatched measures and rewards.
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• Overwork and burnout.

10)Some organizations do not have proper hiring policies, which matches the
Organizational requirements.
11)Some organizations completely/partially outsource their recruitment to the

agencies / consultancies that are not recognized/reputed and which
lacks the experience of recruiting the top performers in the field.
12)Organizations like IBM. WIPRO etc, have a separate recruitment wing

exclusively for recruitment purpose, which acts a competitive edge over
their competitors.
13)Established firms like Infosys and Wipro etc, started releasing

Advertisements in business / IT magazines, such as Business World,
Business India, Dataquest etc, for attracting and acquiring the right talent.
14)A number of companies like Wipro, Infosys have associated with leading
job portals in India and Abroad.
15)Informal sources of information such as ‘word of mouth’ and ‘referrals’ are

being used by top IT companies like Wipro, IBM, Cognizant Technology.
16) The Employee Referral Incentive Scheme (ERIS), has been initiated by
the top management of the companies like Wipro, IBM, Infosys etc,
aimed at providing handsome monetary reward to the employee for
qualified referrals.
17) Wipro Infotech has adopted just-in-time approach to optimize to

resourcing costs and at the same time make resources available on
demand.
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18) Business Intelligence software makes the hiring process effective. It is

also used for fraud detection in the resume.
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SUGGESTIONS
1. Organizations can try to introduce modern recruitment process like

audio, video technique instead of using traditional technique.
2. Organizations can have a comprehensive sourcing strategy in place

which is designed to find and recruit top performers.
3. Organization can use detailed web analytics to track their career website
and advertising effectiveness.
4. Organization can adopt or be a early adopter of every new sourcing idea

and technique that becomes available by which probably they get a few
extra candidates.
5. Some organizations that want to have a better edge over its competitors
can try to have a separate recruitment wing like Wipro, IBM etc.
6. If the hiring policies are flexible enough and revised often, then
recruitment process becomes easier for recruiter and it avoids confusion.
7. Some organizations can encourage the concept of employee referral as

it is cost effective and saves the time for recruitment.
8. Organizations can outsource their recruiting activities partially/

completely with top consultancies that are authorized and have
certification of ISO9001: 2000/…
9. Organizations can encourage its employees to give suggestions for

developing better recruitment process.
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10. The organization can use job fair. Through this the organization may get
some good candidates.
11. The organization can try to improve their job sites, because most of the
job seekers do approach from internet only.
12. The organization must try to retain their existing employees. Hence
employee retention strategy help to save and reduce recruitment cost
and portrays a culture of loyalty among the employees towards the
organization. Some suggestions which companies can adopt are as
follows:
• Communicate the company vision to the employees showing

every one the role they have and the contribution required by
them.
• Treat employees as the most valuable client.
• Recognition in various forms is a powerful retention tool.
• Provide opportunity to learn, develop and contribute.
• Build mentoring relationships with people to strengthen their
emotional ties with the organization.
• HR philosophy should be designed in such a way as not to do
different things, but to do things differently.
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CONCLUSION
It is an established fact that human resources are assets and strategic business
tools ins an organization to derive corporate performance that provides a distinct
competitive advantage. There is a virtual war to poach and retain talent amongst
companies, as the quality workforce is the best insurance against cutthroat
competition. Hence effective recruitment plays the key role and retaining talented
employees can take the company to greater heights.
Recruitment- a selection process for people to an organization is a critical

process. If not done systematically and properly, the possibility of getting the right
people is uncertain. It is essential that a structured selection process ensuring
right kind of people are selected and placed at right positions. The organization
strength lies in using all possible techniques to ascertain the right choice and
bringing in a total clarity to the entire process. Organizations paying attention to
this regard are certain to maintain their leading status amongst their counterparts
in the market.
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QUESTIONNAIRE
Dear sir/ madam,

I ANUSHA S R a MBA student from A J Institute of
Management conducting a study on ‘Recruitment and Selection Process in IT
Industry’; I shall be obliged if you could spate a few minutes and fill up this
questionnaire and the same would be kept confidential.
Thanking you for your co-operation in this endeavor,
Yours faithfully
ANUSHA S R
1. What are the sources used for sourcing the resumes for requirements of
an organization?
a. Job portals b. Advertisements
c. Database d. Employee referral
e. Consultancy
2. What are the factors considered at the time of recruitment?
a. Technical knowledge b. Qualification
c. Work experience d. Communication skills
3. What are the sourcing decision for-

New firm-
a. Internal recruitment b. External recruitment
Established firm-
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a. Internal recruitment b. External recruitment
4. How many rounds will a candidate with a work experience undergoes at

the time of selection process?
______________________________________________________________
______________________________________________________________
5. What is the channel used to attract new employees from outside by new
firms and established firms?
_________________________________________________________
_________________________________________________________
6. Which is the most preferred type of recruitment for the various level of job
in new firm and established firm?
Levels New firm Established firm

Internal External Internal External
recruitment recruitment recruitment recruitment
Top level
management
Middle
management
Lower level
management
7. What is your opinion for recruitment process being outsourced by new

organization?
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a. Good b. Poor c. Average
8. Do you think implementing modern technology in recruitment makes

recruitment process easy?
Yes No
If no, why?
___________________________________________________________
9. Do you agree that recruitment process should be outsourced for new

organization?
Yes No
If no, why?
___________________________________________________________
10. What are the factors, which influences a candidate for joining an
organization?
a. Pay package b. corporate image
c. Abroad opportunities d. All the above
If others specify,
___________________________________________________________
11. What are the reasons for attrition rate in IT industry?

a. High Stress b. Wrong hiring policies
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c. Nature of job d. Loss of identity
e. Mismatched measures and rewards
EXECUTIVE SUMMARY
84
For an industry to survive and prosper in the economy, quality resources have to
be utilized. So it is very much evident that finding out quality human resource and
streamlining it towards the improvement of IT industry is a Herculean task. The
activity of recruitment and selection takes care of the responsibility of the much
needs quality IT professionals
The research hence felt the need for a study of the “Recruitment and
Selection Process in the IT industry”, to understand and analyze the
process. An effort was made to find out the effectiveness of the recruitment
and selection process by actively studying the whole process with the help
of four consultancies.
The data collected was through discussions with the recruiters and a structured
questionnaire was used to collect data and analyses are made for the data
collected. The collected data are classified, analyzed, tabulated and is
interpreted with the help of graph. Findings, suggestions and conclusion are
made with respect to the study.
85
BIBLIOGRAPHY
1. K.Aswathappa,
Human Resource and Personnel Management, Fourth Edition.
The McGraw-Hill Companies. Year of publication- 2005.
2. Websites-
Article on Recruitment Circa 2010; critical hiring trends and having a
winning sourcing strategy in recruitment are taken from-
www.ere.net
Other websites are-
www.humanresourcemagazine.au
www.citehr.com
3. HRM review, January 2007 issue, from ICFAI University press.
4. Article on Employee referral-

Deccan Herald’s DH Avenues, Wednesday, May 2,2007.
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FUTURE HR- A VIEW
Recruiting Circa 2010: Critical Hiring Trends
“Hiring is changing at a faster rate than most companies can manage”
Web 2.0 has resulted in a rapid change in how hiring top talent could be
conducted. The basic concept is that successful companies innovate based on a
variety of risk from simple and safe to placing major strategic bets.
Those who lose their competitive edge, Emphasize safety and short-term results;
Maybe a little more risk is in order for the recruiting department. Following are
some ideas to consider increasing market share of top talent:
• Implement a top-to-bottom consumer marketing approach to

sourcing.
In general, the best people don't post their resumes or hunt for jobs on the big
boards. And even if they do, it's a low-yield process at best. The big shift in the
next few years will be to adopt aggressive consumer-based marketing
approaches to attract top active and passive talent. Good people, even those
actively looking, want to first know something about the company, its growth
prospect, and the importance of the work they do to the company's overall
business. Yet few companies provide this type of interim or warm-up step;
instead, they force candidates to look for a specific job at a specific level in a
certain geographical area. This is counterintuitive. The big new trend here is the
use of talent hubs that can be easily found using search-engine optimization
techniques. From these micro sites, interested people can search directly for
open jobs or input their resumes into a nurturing pool powered by a CRM engine
like salesforce.com. Recruiters can then contact and network with these top
people as needed.
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• Implement staffing requirements planning (SRP).
This is also known as workforce planning on steroids. If you think about the
old days, around 1970, computer-based sales forecasting was just emerging.
This led to automated production planning, which led to Material
Requirements Planning and soon thereafter, Enterprise Requirements
Planning. Collectively, these tools allowed companies to manage all of their
resources, especially inventory, more effectively. SRP takes workforce
planning up a few notches using multiple tools to predict worldwide workforce
needs on an ongoing basis. This way, changes in economic conditions or
business strategies can be acted upon immediately. Using SRP-type tools will
allow a recruiting department to reallocate resources and change priorities
within days to meet their company's new hiring needs.
• Link business strategy directly to recruiting and sourcing.
This is part of a strong SRP effort. The idea here is that changes in business
strategy need to be instantaneously reflected in a company's recruiting
efforts. For example, in the same Business Week edition mentioned above,
there was a story on how Symbol Technologies (the bar-code company) had
to reinvigorate its R&D efforts after seeing its stock price drop dramatically.
Part of this was a major increase in hiring a new breed of technologists while
cutting back in other business functions. This required a major redeployment
in recruiting resources to pull it off. As companies expand globally, this same
shift is necessary to find the people who can operate effectively on a global
scale. More than likely it's not the same people or the team onboard right
now. These strategic business changes also require different approaches to
sourcing and recruiting, a constant barrage of advanced training and new
recruiters who are willing and able to use new tools, techniques, and
technologies.
88
• Systematize the entire hiring process.
In most companies, sourcing, interviewing, assessment, selection, and

closing are more art than science. Managers tend to use their own
interviewing methods, recruiters are an independent breed among
themselves, and recruiting and negotiating is problematic and unpredictable.
Hiring can become a systematic and scalable business process, but it won't
be if recruiters and hiring managers aren't true partners all using the best
tools and technologies in the right way. You'll soon be seeing some form of
Performance-based Hiring serving as this foundational business process. The
key here is that each phase in the process (sourcing, interviewing, recruiting)
is coordinated, connected, and reinforcing, not contradictory and
counterproductive.
• Increase specialization of the recruiting team.
A generalist recruiter handling the process from the beginning to the end is
not possible in a high-volume corporate environment. Given the increase in
workforce mobility, changing demographics and the insatiable demand for top
talent, recruiting in general is undergoing rapid transformation. Sourcing is a
great example, as it becomes a specialty by itself. Developing pools of top
talent requires the use of every networking site available, personal knowledge
of functional and industry trends, the ability to deliver candidates Just-in-Time
using the latest technology, attending industry events, and personal
acquaintance with the movers and shakers. Recruiters must act as
counselors to their candidates and advisors to their clients. This means they
must know the intimate details of the job and be able to present the situation
as a long-term career opportunity, not just another job. This requires strong
solution and consultative selling skills with a corresponding shift away from a
transactional processing mentality.
89
• Integrate the hiring process with all aspects of management. Hiring,

on boarding, performance management, and motivation/retention are not
independent activities. Each step needs to integrate with each subsequent
step in order to optimize the end result: hiring highly motivated top people
who become highly motivated long-term performers with your company.
This doesn't happen by accident. The key here is to hire people who are
highly motivated and competent to do the work you want done. Some type
of performance profile can help establish this common link and can be
used as both an on boarding and performance management tool. On
boarding is getting more sophisticated by establishing the foundation for
each new employee to succeed. This includes establishing networks of
associates and mentors, clarifying expectations upfront, and providing
advanced training. The role of the hiring manager is the critical catalyst
here and will require more involvement at every step. This means being
held accountable for hiring, retention, and developing staff as part of their
performance management review process.
These six ideas aren't really too extreme. They're just an extrapolation of what
has happened to every other business function in the past 10 to 20 years.
To use the Innovation Pyramid concept to categorize the current recruiting

initiatives into one of these four groups to see strategic progress versus
competition:
1. Safe, incremental quick wins.
These types of changes, while important, are not significant enough to allow a
company to keep up with the rapid changes taking place in the global
employment marketplace. If you're doing what everyone else is doing, you're
falling behind.
90
2. Significant changes that takes months to implement.
Changes here include a major ATS upgrade, rebuilding your career website, or
some type of recruiting or interview training. These are essential if you want to
maintain your current position in the marketplace.
3. Major changes and opportunities designed to increase a company's

market share of top talent.
This requires a complete rethinking of everything currently being done, including the
ideas above, a humongous employer re-branding effort, and probably a complete
reorganization of the recruiting department.
4. Huge strategic changes allowing the company to own its market of

the best talent.
This requires a complete overhaul of the underlying business before you even
begin thinking about the recruiting process.
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Have a Winning Sourcing Strategy in Recruitment
Process
It's pretty clear that the hunt for talent is getting more competitive. Equally clear is
that most companies don't have a formal strategy in place designed to meet this
challenge head on. Without thinking, many companies use either a "follow the
herd" or "shot-gun" strategy by default. This is a sure-fire way to hire average
people: just do what everybody else does.
In addition to the "shot gun" and "follow the herd," here are four basic sourcing
strategies that actually might improve things:
1. Employer-of-choice.
Companies that are dominant in their industry or have the potential to be

should establish themselves as great places to work. This is the ideal strategy
to get top people attracted to a company without worrying too much about the
details. This needs to be a top-down, CEO-driven strategy that affects every
aspect of the company's business. This means the company is on the Fortune
100 Best Places to Work list and is seen as a difference-maker in its market.
2. Leap-frogging or early adopter.
This strategy is based on the idea that to get a head start on the competition,
you should become an early adopter of every new sourcing idea and
technique that becomes available. First to try everything out, probably get a
few extra great candidates. Then, as soon as diminishing returns set in, jump
to the next new idea. This way, you'll always be ahead of the pack. This leap-
frogging approach as a primary strategy, it's certainly a worthy interim
approach.
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3. Targeted.
The idea here is that a company should narrow its focus to be sure that it's
hiring the best people for all mission-critical and strategic positions. This is a
good strategy to adopt if you're not an employer of choice but want to become
a dominant player in a niche market. Once you've demonstrated success here
you can leverage this strategy across the whole company.
4. Sequenced, multi-channel. This is the end-game strategy. When you've

arrived here you made hiring top talent a systematic business process
throughout the whole organization. The idea behind this is that all sourcing
channels should be optimized and managed in some logical, measured,
and business-like fashion. The foundation of this is a position-by-position
analysis in combination with appropriate messaging and technology
supporting each channel. From a marketing perspective, this is very
comparable to the development of a distribution or channel strategy.
We ponder these strategies; here are some other ideas to consider as develop a
sourcing strategy for company:
1. Understand your company's business strategy.
This will determine the types of people critical to your company's short and long-
term growth. For example, if your company has a low-cost operational efficiency
strategy, then you need people who are great in improving processes and driving
costs out of production. If your company's strategy is based on product
innovation, you need to hire the best people who can design and market these
types of products.
93
2. Prepare a rolling workforce plan.
This needs to include a quarterly forecast of all your hiring requirements by

position updated every 90 days always looking out one full year. This forecast
should tie out to your company's strategic plan and the annual operating plan. As
the forecast is updated, keep track of overall hiring needs and any big changes
by quarter. These changes are early signals that you'll need to change your
sourcing plans. A full-year forecasting process like this provides enough time to
plan rather than react to unexpected changes.
3. Categorize all hiring needs into quality levels.
Classify all of your hiring requirements by position into some type of ABC
grouping, with an A indicating a critical, top 5% to 10% person. This classification
should be based on the importance of each job class or position in relation to the
company's overall business strategy. For non-critical positions, you should
always target hiring the top-third as the minimum quality standard.
4. Develop sourcing strategies for each class of job.
Create tactical plans that map how the best people in each job classification look
for work. Once you do this, you'll realize that the best people do not start a job
hunt by looking for a specific job at a specific company with a specific title.
Instead, the best people first select a group of target companies looking at
culture fit and growth opportunities. This is why Talent Hubs are becoming more
important for this "warm-up" sourcing stage. So, if your primary sourcing tactic is
to drive people to a specific job and boring job description, don't be surprised if
you're not seeing enough top people. Also, make sure you understand the criteria
top people use when selecting one job over another. You'll use this information to
create collateral material and redesign each step in your hiring process.
Assemble a compensation strategy for each class of job. For example, knowing
94
that the best people will accept a bigger job with better growth opportunities for
less compensation, you'll need to ensure that this message comes across in your
website and in each interview.
5. Optimize each sourcing channel.
An effective sourcing program needs to encompass four basic tactics. These

include the development of a proprietary database of resumes in combination
with some CRM technology; a proactive employee referral program; a search
engine optimized online career website using talent hubs and niche job boards;
and some form of direct sourcing and networking using inside and outside
recruiters. The key to success with these channel strategies is to ensure they're
optimized to produce the best candidates possible. For example, putting a boring
job on a job board that can't be found is a waste of time and money. Significant
effort should be spent reengineering these channels to make sure that they work
as intended. Follow this basic rule of recruiting: if you're doing what everyone
else is doing, it won't work.
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Anusha Project Report

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A Study on “Recruitment and Selection Process in IT Industry”

INTRODUCTION TO THE STUDY

Human resource invariably forms an indispensable input at one end of the IT

HUMAN RESOURCE MANAGEMENT

“ Human Resource Management is that part of management concerned with

OBJECTIVES OF HUMAN RESOURCE MANAGEMENT

Objectives are predefined goals to which individual or group activity in an

1. To create and utilize an able and motivated workforce, to accomplish the

Edwin B Flippo defines recruitment as “the process of searching for prospective

RECRUITMENT IS DISTINCT FROM EMPLOYMENT AND

Technically speaking the function of recruitment precedes the selection function

Future organisational strategies.

Induct outsiders with a new perspective to lead the company.

Infuse fresh blood at all levels of the organization.

To develop an organizational culture that attracts competent people to the

To devise methodologies for assessing psychological traits,

To seek out non-conventional development grounds of talent,

To design entry pay that competes on quality but not on quantum,

FACTORS AFFECTING RECRUITMENT

The other activity of recruitment is consequently affected by the internal factors

1. Working conditions ; and

3. Salary levels, type and extent of benefits;

The other activity of recruitment is consequently affected by external factors such

1.Personnel policies and practices of various organizations regarding working

2.Career opportunities in other organizations;

INTERNAL SOURCES OF CANDIDATES:

Current employees are often best sources of candidates. When a candidate is

They are are as follows:

1. FINDING INTERNAL CANDIDATES:

To be effective promotions from within requires using job posting,

An examination of ‘personal recordds’ may reveal employees who are

Today due to high turnover in some high-tech occupations-rehiring

Succession planning typically includes activities like these:

o Determining the projected needs for managers and

EXTERNAL SOURCES OF CANDIDATES

Successfully, employers have to address two issues: the advertising and

‘The Media’-it includes newspapers, TV, internet-all these sources

‘Constructing the Ad’- experienced advertisres usea four-point guide

Employment are of several types. They are as follows:

Public and non-profit Agencies: these agencies are an important

for instance,counselors will visit an employer’s work site, review the

Other employment agencies are tied to non-profit organisations.Most

‘Private Agencies’- these are important sources of clerical,

White-collar and managerial personnel.

Temp Agencies and Alternative Staffing- employers often

Supplement their permanent workforce by hiring contingent or

Temporary worker often through temporary agencies. It is also

Known as part-time or just-in- time workers.

Alternative staffing- it is the use of non-traditional recruitment

Sources. Other alternative staff arrangements include”in house

Temporary employees”(people employed directly by the company,

but on an explicit short-term basis), and “contract technical

Employees” (highly skilled workers like engineers, who are

supplied for long-term projects under contract from an outside

technical services firm.

Executive recruiters, also called headhunters, are special employment

4. RECRUITING ON THE INTERNET:

A large and fast growing proportion of employers use the internet as a

Sending an employer’s representatives to college campuses to prescreen

‘On-site visits’- Employers generally invite good cadidates to the

company.the interviews should should be carefully planned and one

‘Internships’- many colleges students get their jobs through college

6. REFFERALS AND WALK-INS: