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EXECUTIVE SUMMARY

Success of every business enterprise depends on its human resource.

Finding the right man for the job and developing him into a valuable resource

is an indispensable requirement of every organization. Proper recruitment

helps the line managers to work most effectively in accomplishing the primary

objective of the enterprise. In order to harness the human energies in the

service or organizational goals, every HR manager is expected to pay proper

attention to recruitment and selection activities in an organization. Thus,

personnel functions, recruitment and selection, when carried out properly,

would enable the organization to hire and retain the services of the best

brains in the market. The world's best companies have established their

strength with their people. The employees identify themselves with the

company they are working for. This also helps in building up their spirit,

morale and espirit-de-cops which becomes strength of the company.

There are certain ways that are to be followed by every organization, which

ensures that it has right number and kind of people, at the right place and

right time, so that organization can achieve its planned objective. The project

covers introduction of Recruitment and Selection, Purpose and Importance of

Recruitment, Sources of Recruitment, Steps in the Recruitment & Selection

Process, and Suggestions to make the Recruitment Process more effective. It

also includes the challenges faced by HR in recruitment process and the

recent trends in recruitment process.

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CONSTRUCTION EQUIPMENT INDUSTRY IN INDIA

Construction and mining equipment cover a variety of machinery such

as hydraulic excavators, wheel loaders, backhoe loaders, bull dozers, dump

trucks, tippers, graders, pavers, asphalt drum / wet mix plants, breakers,

vibratory compactors, cranes, fork lifts, dozers, off-highway dumpers (20T to

170T), drills, scrapers, motor graders, rope shovels etc. They perform a

variety of functions like preparation of ground, excavation, haulage of

material, dumping/laying in specified manner, material handling, road

construction etc. These equipments are required for both construction and

mining activity.

Construction equipment industry is fast growing in India. As per a

report on construction equipment industry in India, jointly prepared by India

Brand Equity Foundation (IBEF) and KPMG Advisory Services, the size of the

Indian construction industry is more than Rs 8,000 crores as on 2007 and it is

growing at the rate of 30 per cent.

The Indian mining and construction equipment industry has evolved

primarily on the basis of domestic demand generated over the various plan

periods, essentially on the basis of investments which have gone into mining,

infrastructure development and the building and construction sector. Today it

is still focused largely on the domestic market and exports are marginal at a

level of around Rs.300 crores for an industry approaching a market size of

Rs.7, 000 crores.

There is a huge growth potential in construction equipment

industry and that is the reason why many leading players have entered the

space. Some of the known construction equipment companies include names

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such as BEML, Ashok Leyland, Caterpillar, Hindustan Motors, Ingersoll Rand,

L&T, Komatsu, Telco Construction Company, Volvo India.

Construction Equipment Industry in India: Overview

Size about US
$ 2.4-2.64
Billion for the
year 2007

Highly
Span a range fragmented top
of equipment 6 of about 200
India’s
for all domestic
construction/
Construction manufacturers
infrastructure Equipment contributes 60%
needs Industry output

Exports
growing at
30%-expected
to be US $
100-200 Growth of
million by over 30%
2010

Indian Earthmoving and Construction

Equipment Industry (ECE), is at a watershed in its evolution and set to

experience strong growth, spurred by the nation’s rapid economic

development. According to the study, ECE Vision 2015: Scaling new heights

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in the Indian Earth Moving and Construction Equipment Industry, conducted

by leading management consulting firm, McKinsey & Company, for CII,

IECIAL, released today at the CII Excon 2007 in Bangalore, the Indian ECE

industry has the potential to grow fivefold from its current size of US$2.3

billion to approximately US$12–13 billion by 2015, growing at 24% CAGR.

The following indicates the market position for certain broad categories

of equipment:

Hydraulic Dozers & Wheel Backhoe Road Fork


Cranes
Excavators Dumpers Loaders Loaders Compactors Lifts

Telcon Caterpillar Ingersoll TIL


BEML JCB India ECEL
(Hitachi) India Ltd. Rand (Grove)
Caterpilla Caterpilla
L&T
r India BEML r ECEL Telcon Voltas
Komatsu
Ltd India Ltd
Telcon Ingers
Udyog
BEML Telcon (John L&T Case ECEL oll
(Tata)
Deere) Rand
Voltas L&T Greaves Ltd Voltas
JCB India JCB India TIL
(Unit Rig) Case (Bomag) (P&H)
Gujarat McNei
Caterpillar
Volvo BEML Apollo ll
India Ltd
Equipment Engg.
Wirtgen
Volvo Volvo India Pvt.
Ltd

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VARIOUS PRODUCT RANGE

Earth Material Road


Concrete Material Construction
Moving Handling Construction
Equipment Preparation Vehicle
Equipment Equipment Equipment
Backhoe Concrete Telescopic Crushing Compaction Dumpers
Loaders Breaker Handlers Plants Equipment

Excavators Paver Crawler Jaw Vibratory Articulated


Finisher Crane Crusher Rollers Haulers

Loaders

Bull Concrete Mobile Pavers


Dozers Batching Crane
Plant

Skid-
Steers Slew Crane
Loaders Concrete
Pumps
Pick &
Wheel Carry
Loaders Concrete Crane
Mixers

Wheel Forklifts
Dozers

Shovels Tower
Crane

Motor
Graders

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KEY PLAYERS

JCB India

 JCB came to India in 1979.

 The company has a turnover of US $ 335 million.

 The company is growing by 25-30% annually.

 JCB India is a subsidiary of JC Bamford Excavators Ltd. (JCB)

 The product range from Backhoe Loaders, Wheeled Loaders to Excavators.

 The Company has a 70% market share in the backhoe loader segment and

around 13% market share in the overall Indian CE industry

Bharat Earth Movers Limited (BEHL)

 BEHL is its largest player in earthmoving equipment sector

 The company turnover is around US $ 484 million.

 The mining and construction equipment segment is around US $ 306.6

million; defense segment is about US $ 154.2 million; and railway around US

$ 23 million.

 The company is the largest public sector undertaking in the industry.

 It has a 70% market share in the domestic earthmover industry and 12% in

the overall construction equipment industry

L & T Case, L & T Komatsu

 The companies together have a turnover of US $ 156 million, with majority

coming from L & T Komatsu.

 L & T Case manufactures’ loaders backhoes and vibratory compactors; while

L & T Komatsu manufactures’ hydraulic excavators.

 L&T Case hold 21% market share in vibratory compactors

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 L&T Komatsu holds 20% market share in excavators

Ingersoll-Rand India Ltd.

 A public limited company (majority owned by Ingersoll Rand), is a market

leader in compactors with a turnover of US$ 104.5 million

 The company operates in construction and compact vehicle technologies, air

solutions and climate control technologies, with each of these contributing

US$ 50.8 million, US$ 62 million and US$ 0.9 million, respectively

 It has a 39% market share in the compactor segment

 Its major products are compaction equipment, pavers, loaders, light towers,

air compressors, etc.

Telco Construction Equipment Company Limited (Telcon)

 The company is a market leader in excavators

 It is a subsidiary of Tata Motors and has a turnover of US$ 283 million

 Its major products are excavators, loaders, mechanical shovels, high tonnage

crawler cranes, etc.

 It has a 50% market share in the excavator segment and an overall market

share in the construction equipment segment of 11%.

Voltas

 The public limited company – a part of the Tata group is the second largest

player in the forklifts segment. The customers are engineering industries

 Its products are: industrial air conditioning and refrigeration equipment, air

conditioners, water coolers, freezers, commercial refrigerators, forklift trucks

and large water supply pumps

 The company has a turnover of US$ 260 million, of which less than 7% is

accounted for by the material handling division

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 It has a 31% share in the forklifts segment.

ESCORTS CONSTRUCTION EQUIPMENT LIMITED

The Escorts Group is among India's leading engineering

conglomerates operating in the high growth sectors of Agri-machinery,

construction & material handling equipment, railway equipment and auto

components.

Escorts Construction Equipment Limited (ECEL) is multi product

construction equipment Manufacturer Company under Escorts Group. It has

defined the evolution of India’s Earthmoving & Construction Equipment Industry

over the past 38 years. In 1971, ECEL introduced Pick n Carry Hydraulic Cranes

Mobile Cranes and continues to be the World's No.1 manufacturer of this

Product. The World Class range of Vibratory Compactors that was first

introduced in the late 80’s is still one of the most effective compaction solutions to

the industry.

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With over 30 years experience in Construction Equipment Industry, Escorts has a

proven track record in:

o Hydraulic Mobile Cranes

o Loaders

o Forklifts

o Vibratory Compactors

While recording a rapid growth in Crane Industry ECEL has also

been able to steadily increase its presence in the field of Vibratory, Soil &

Tandem Compactors. ECEL was the first to bring the concept of Vibratory

Compactors in India in a big way, back in 80’s. Subsequently more models in

Tandem Vibratory Compactors and heavy duty Soil Compactor range were

added in technical collaboration with HAMM Germany. Recently, ECEL has

further strengthened the range with a 3T Shoulder Compactor.

Along with Cranes and Compactors, ECEL also manufacture

Frontend loaders with payload capacity of 700kgs. Suitable for narrow lanes and

confined spaces, these loaders are compact in design and are ideal for garbage

handling, handing of chemicals, sands, small chips, etc.

ECEL also offers other material handing solutions like Forklifts from

Daewoo Doosan Infracore Ltd., Korea and Articulated boom cranes from Fassi,

Italy. In LPG Forklift category, the company enjoys a market share in excess of

85%. This single-minded pursuit of precision and customer satisfaction has made

us the 3rd largest in terms of Construction Equipment Sales unit per annum.

At the recently held EXCON 2007 (Asia’s 3 rd Largest Expo on

Construction Equipment Industry) at Bengaluru, the construction equipment-

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manufacturing arm of Escorts, ECEL unveiled its largest TRX Series of Pick-n-

Carry Cranes in the 23 T, 20 T and 17 T categories, combining lifting powers with

boom height advantage.

ECEL at a Glance:

1970 - YELLOW LINE" Construction Equipment Department (predecessor of

Escorts Construction Equipment Limited) formed.

1971 - ECEL introduces Pick n Carry Cranes and Front End Loaders

1983 - Rough Terrain Hydraulic Mobile Crane

1987 - Vibratory Roller 10T Class

1995 - Escorts Fassi Articulated Boom Cranes (1.72 Tm – 78 Tm)

Escorts Daewoo Fork Lift Trucks (2T to 15T)

1997 - Escorts Franna All Terrain PNC crane

1999 - ESCORTS K10, the Next Generation Pick-N-Carry Crane.

Introduced LPG Forklifts in India

2001 - HD-85 – Tandem Vibratory Roller was launched

2002 - MAC 1214 – a wreckage recovery crane was designed, launched and

Record 280 machines were sold in launch year

2005 - 2420 – a 12 T Soil Vibratory Roller and ED -30 a 3 T Mini Tandem

Vibratory Roller were Launched during EXCON 2005

2006 - Training Facility at Started at Bangalore

HP 216, a new generation Pick n Carry Crane Came into existence

2007 - Construction of new manufacturing facility started at Ballabhgarh and

Rudrapur

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ECEL receives the Awards in two categories at 5th Construction World –

NICMAR Award- the Second fastest Growing Construction Equipment

Company and Third largest Construction equipment Company

TRX Series of Pick-n- Carry cranes launched in the category of 23 T, 17 T

and 16 T at EXCON -2007. TRX 2319, a 23 T Crane being the Largest

Crane in this category in the world

2008 - ECEL to market the world renowned 'LeeBoy' brand of equipment for road

Construction and maintenance purposes, complementing its existing

Range.

ECEL launches Fully Hydraulic Crawler Cranes.

ECEL launches Escorts Heli Forklifts Range.

2009 - ECEL has recently commissioned its state-of-art manufacturing

plantrolling out pick-n-carry cranes and vibratory compactors.

The new facility located at Ballabhgarh in Faridabad District is equipped

with inbuilt hi-tech technology, housing all the modern facilities under one

roof.

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ORGANIZATIONAL MANPOWER STRUCTURE:

JOB SIZE /
TYPICAL ROLES (ILLUSTRATIVE ONLY)
FUNCTIONAL
BAND

TM-3 • Heads of subsidiary companies of ECEL

TM-2 • Divisional Heads

TM-1 • Functional Heads of “Areas” with relatively larger


bandwidth, impact, role & responsibility

SM-3 • Heads of Functional Areas

SM-2 • Departmental Heads

SM-1 • Planning & Supervisory roles

OM-3 • Operational Management & Executory roles

OM-2 • Section / Cell Heads, Front- Line Team Leaders

OM-1 • Principal Team Member

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ORGANIZATIONAL CHART

CEO

Sales Finance
R&D HR / ER/ & & Quality
Administration Marketing IT

Manufacturing Security
Operations

Human Resource Department Hierarchy

Head Personnel
& ER

Industrial Relations
Human Resource Human Resource & Employee
Operations Welfare

Administration Environment,
Health & Safety

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OBJECTIVE OF THE PROJECT

Every task is undertaken with an objective. Without any objective a task is

rendered meaningless. The main objectives for undertaking this project are:

1. To understand the Recruitment and Selection Process at Escorts Construction

Equipment Limited.

2. To give suitable recommendations to streamline the hiring process.

3. To Study the Challenges faced by HR in recruitment.

4. To Study recent trends in Recruitment Process.

RESEARCH METHODLOGY

Research methodology is a way to systematically solve the research problem. In

it, we study the various steps that are generally adapted by a researcher in

studying research problem along with logic behind them.

It includes the formulating of research problem, study of literature, collecting the

data, analyzing that data and making interpretations of that data. Research

methodology used:

 Study of Recruitment and Selection at Escorts Construction Equipment

Limited by the manual provided by the HR department.

 Web sites.

 Books.

TYPE OF DATA COLLECTED

There are mainly two sources of data collection which are:

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1. Primary Data

2. Secondary Data

DATA COLLECTION METHODS

PRIMARY DATA COLLECTION SECONDARY DATA COLLECTION

QUESTIONNAIRE PERSONAL INTERNET BOOKS


INTERVIEW

STUDY OF
RECRUITMENT POLICY

Primary data is defined as data that is collected from original sources for a

specific purpose.

Secondary data is defined as data collected from indirect sources.

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INTRODUCTION TO RECRUITMENT AND SELECTION:

Recruitment is the process by which organizations locate and attract individuals

to fill job vacancies. Most organizations have a continuing need to recruit new

employees to replace those who leave or are promoted in order to acquire new

skills and promote organizational growth.

Recruitment is defined 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 an efficient workforce.”

Recruitment is a ‘linking function’, joining together those with jobs to fill and those

seeking jobs. It is a ‘joining process’ in that it tries to bring together job seekers

and employer with a view to encourage the former to apply for a job with the

latter. In order to attract people for the jobs, the organization must

communicate the position in such a way that job seekers respond. To be cost

effective, the recruitment process should attract qualified applicants and provide

enough information for unqualified persons to self-select themselves out. Thus,

the recruitment process begins when new recruits are sought and ends

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

which new employees are selected.

Selection refers to the task of choosing or picking the suitable candidates by first

asking for and gaining access to useful information about the candidate.

Through the process of recruitment the company tries to locate prospective

employees and encourages them to apply for vacancies at various levels.

Recruiting, thus, provides a pool of applicants for selection.

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Selection is the process of picking individuals who have relevant qualifications to

fill jobs in an organization. The basic purpose is to choose the individual who

can most successfully perform the job from the pool of qualified candidates.

The purpose of selection is to pick up the most suitable candidate who would

meet the requirements of the job in an organization best, to find out which job

applicant will be successful, if hired. To meet this goal, the company obtains

and assesses information about the applicants in terms of age, qualifications,

skills, experience, etc. the needs of the job are matched with the profile of

candidates. The most suitable person is then picked up after eliminating the

unsuitable applicants through successive stages of selection process. How

well an employee is matched to a job is very important because it is directly

affects the amount and quality of employee’s work. Any mismatched in this

regard can cost an organization a great deal of money, time and trouble,

especially, in terms of training and operating costs. In course of time, the

employee may find the job distasteful and leave in frustration. He may

even circulate ‘hot news’ and juicy bits of negative information about the

company, causing incalculable harm to the company in the long run.

NEED FOR RECRUITMENT AND SELECTION:

The need for recruitment may be due to the following reasons / situation:

• Vacancies due to promotions, transfer, retirement, termination, permanent

disability, death and labor turnover.

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• Creation of new vacancies due to the growth, expansion and

diversification of business activities of an enterprise. In addition, new

vacancies are possible due to job specification.

PURPOSE OF RECRUITMENT AND SELECTION:

The general purpose of recruitment is to provide a pool of potentially

qualified job candidates. Specifically, the purposes are to:

 Determine the present and future requirements of the organization on

conjunction with its personnel-planning and job analysis activities.

 Increase the pool of job candidates at minimum cost.

 Help increase the success rate of the selection process by reducing the

number of visibly under qualified or overqualified job applicants.

 Help reduce the probability that job applicants, once recruited and selected,

will leave the organization only after a short period of time.

 Meet the organization’s legal and social obligations regarding the composition

of its work force.

 Begin identifying and preparing potential job applicants who will be

appropriate candidates.

 Increase organizational and individual effectiveness in the short term and long

term.

 Evaluate the effectiveness of various recruiting techniques and sources for all

types of job applicants.

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SOURCES OF RECRUITMENT:

The following are the most commonly used methods of recruiting people.

INTERNAL METHODS:

This refers to the filling of job vacancies from within the business - where existing

employees are selected rather than employing someone from outside.

A business might decide that it already has the right people with the right skills to

do the job, particularly if its training and development programme has been

effective.

Promotions and Transfers

This is a method of filling vacancies from within through transfers and

promotions. A transfer is a lateral movement within the same grade, from one job

to another. It may lead to changes in duties and responsibilities, working

conditions, etc., but not necessarily salary. Promotion involves movement of

employee from a lower level position to a higher level position accompanied

by changes in duties, responsibilities, status and value.

Job Posting

Job posting is another way of hiring people from within. In this method, the

organization publicizes job opening on bulletin boards, electronic method and

similar outlets. One of the important advantages of this method is that it offers a

chance to highly qualified applicants working within the company to look for

growth opportunities within the company.

Employee Referrals

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Employee referral means using personal contacts to locate job opportunities. It is

a recommendation from a current employee regarding a job applicant.

Employees working in the organization are encouraged to recommend the

names of their friends, working in other organizations for a possible

vacancy in the near future. In fact, this has become a popular way of

recruiting people in the highly competitive industry nowadays. Companies

offer rich rewards also to employees whose recommendations are accepted.

EXTERNAL METHODS:

This refers to the filling of job vacancies from outside the business. Most

businesses engage in external recruitment fairly frequently, particularly those that

are growing strongly, or that operate in industries with high staff turnover

Campus Recruitment

It is a method of recruiting by visiting and participating in college

campuses and their placement centers. Here the recruiters visit reputed

educational institutions with a view to pick up job aspirants having requisite

technical or professional skills. Job seekers are provided information about the

jobs and the recruiters. A preliminary screening is done within the campus and

the short listed students are then subjected to the remainder of the

selection process. If campus recruitment is used, steps should be taken by

human resource department to ensure that recruiters are knowledgeable

concerning the jobs that are to be filled in the organizations and employ effective

interviewing skills.

Advertisements

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These include advertisements in newspapers; trade, professional and technical

journals; radio and television; etc. The ads generally give a brief outline of

the job responsibilities, compensation package, prospects in organizations,

etc. This method is appropriate when (a) the organization intends to reach a

large target group and (b) the organizations wants a fairly good number of

talented people – who are geographically spread out.

Employment Agencies

These businesses specialize in recruitment and selection. They often specialize

in recruitment for specific sectors (e.g., finance, travel, secretarial). They usually

provide a shortlist of candidates based on the people registered with the agency.

They also supply temporary or interim employees.

Recruitment Consultancies

Companies give their manpower requirements to Placement & Recruitment

Consultants who undertake the job of identifying suitable candidates for the

Company.

Unsolicited Applicants / Walk-ins

Companies generally receive unsolicited applications from job seekers at various

points of time; the number of such applications depends on economic

conditions, the image of the company and the job seeker’s perception of

the types of jobs that might be available etc. Such applications are

generally kept in a data bank and whenever a suitable vacancy arises, the

company would intimate the candidates to apply through a formal channel.

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STEPS IN RECRUITMENT & SELECTION PROCESS

STEP 1: MANPOWER PLANNING

Manpower planning is done to identify the vacancies arising out of business

needs. Each department undertakes manpower planning every year. Manpower

planning may be necessitated due to separation in the form of resignation,

termination, transfers etc., expansion / reorganization, time bound jobs of

temporary nature / leave vacancies, retirements (premature or on attaining the

58 years of age). Annual manpower budget, including current staff strength, is

prepared by the Business Head and approved by the Budget Committee

comprising of Business Heads / Corporate Heads / JMD and the Chairman.

STEP 2: IDENTIFICATION OF A VACANCY

The department head identifies the need for hiring based on Manpower Hiring

Plan (Manpower Budget). The vacancies can be arising due to resignations,

terminations and retirement of employees.

STEP 3: REVIEW THE NEED FOR THE POSITION OR VACANCY

The department head review the requirement for the position and the need to fill

the vacancy. He checks whether the requirement is as per Manpower Hiring Plan

(Manpower Budget). Then, Head of the Department raise a Manpower

Requisition Form in a standardized format and forward the copy of MRF to the

CEO for approval. The Department Head along with HR Manager check whether

the hiring requirement is for an existing role or a new role. If the requirement is for

existing role then the Department Head forward the MRF to the HR Department.

If the requirement is for a new role, then the Department Head create Job

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Description for the role in a standard format and forward it with the MRF to the

HR Department to start the recruitment process.

STEP 4: SOURCING OF SUITABLE CANDIDATES

The HR Executive considers and assesses the best way of attracting a pool of

suitably qualified candidates, who will meet the needs of the business.

Depending on the nature of the position/grade, volumes of recruitment and any

other relevant factors, the Regional HR would use any one or multiple sources

such as:

o Existing database

o Employee referral as per any company scheme that may be approved

from time to time

o Advertisement in the internet/newspapers/magazines/company’s sites/job

sites or any other media

o Placement Agencies / Consultants

o Direct recruitment from campuses/academic institutes;

A list of resourceful / quality consultants with agreed rate of commission is

prepared by the HR Executive based on specialization in the manufacturing

Industry, past history, market reputation and ability to deliver.

STEP 5: COLLECT THE RESUMES

The HR Executive forward the JD’s to the placement consultants and collect the

resumes or profiles from all the consultants.

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STEP 6: SCREENING OF RESUMES

The HR Executive screen the resumes as per JDs and MRF and shortlist profile

fit. He verifies whether the candidate has appeared for an interview with the

company previously from the application database. If the candidate has appeared

for an interview previously, then review the feedback from the Interview

Assessment Form (IAF) and other documents filled.

STEP 7: SHORTLISTING OF CANDIDATES

The HR Executive forward all the HR-Short listed resumes to concerned HOD

with resume snapshot attached in mail with a copy to VP function, Head HR and

Manager HR. The Concerned HOD shortlists the candidates to be called for an

interview as per requirement for the Job and forwards the list to HR Department.

The HR Executive prepares the Interview Calendar and forwards it to the

Concerned HOD and HR Manager with copy to HR Head and VP function.

STEP 8: SCHEDULE INTERVIEWS

The HR Executive obtains a tentative schedule from Concerned HOD and Head

HR for interviewing the candidates. He asks the consultants to line up the short

listed candidates on scheduled interview date. Regular follow up is to be done

with candidates by the HR Executive to ensure 100% participation.

STEP 9: CONDUCT INTERVIEWS

The HR Executive in consultation with the concerned department will set up an

interview panel consisting of HR Head / Manager and Department Head /

Manager. On the date of Interview, the HR Executive circulates the Application

Blank and Travel Reimbursement Form to the candidates for procuring

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information about the candidate. The HR Executive forwards the Interview

Assessment Sheet to the Interview Panel. The interview panel assesses the

candidate based on the factors mentioned below, in a prescribed format and

gives its recommendations for approval.

 Attitude

 Knowledge

 Communication

 Experience

 Team spirit

 Loyalty expectation

 Initiative

The HR Executive coordinates the interview process. The HR Executive collects

all filled TRF’s with Original bills (Tickets) from the candidates and gets those

forms approved by HR Head and forward the approved TR list along with the

filled Travel Reimbursement Forms and original bills to the Finance and Accounts

for processing.

If the candidate is rejected, the HR Executive communicates the same to the

candidate and files the Interview Assessment Sheet, application blank along with

resume of candidate in the Application Database.

STEP 10: MAKE OFFER OF EMPLOYMENT

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The Concerned HOD and Head HR make verbal offer to the shortlisted candidate

and discuss other terms and conditions of employment. If the candidate accepts

the offer then conduct reference check for the prospective employee (Via

telephone, Mail).

STEP 11: RENEGOTIATE OFFER

If the shortlisted candidate rejects the offer due to salary reasons, the HR Head

renegotiate salary with the candidate, if suitable, along with other terms and

conditions.

STEP 12: REFERENCE CHECK

Reference checks of the final short listed candidate are conducted by Head-HR.

The candidate is asked to mention in his application blank, the names and

addresses of two or more persons who know him well. These may be his

previous employers, heads of education institutions or public figures. These

people are requested to provide their frank opinion about the candidate without

incurring any liability. The opinion of referees can be useful in judging the future

behavior and performance of candidate. If the result of reference check is positive

then continue with the induction process. If the result of reference check is

negative, then withdraw the offer and send rejection letter to the candidate.

STEP 13: LETTER OF INTENT

The selected candidate will be given an intent letter with prescribed details as

given below:

• Functional Band Position for which selected.

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• Place of initial Posting

• Expected Date of Joining.

• Advise for medical examination.

• Details of the testimonials and other documents to be submitted at the

time of joining.

• Acceptance by the selected candidate

STEP 14: MEDICAL CHECK UP

The selected candidate is sent for a medical check up at reputed hospitals before

final selection / issuance of letter of intent or after final selection / issuance of

letter of intent. In case the candidate is declared unfit for employment the offer /

intent letter will stand cancelled.

STEP 15: ON BOARDING & INDUCTION

On the date of joining the employee is issued an appointment letter by the HR

Head. The appointment letter include all the terms and conditions governing

employment including Designation, Department, Salary & Scale of Pay, Date of

appointment, Probation, Medical Fitness, Retirement, Termination of Services,

Secrecy, Transfer etc. All new joinees undergo an induction program as per

requirement soon after joining the organization. Induction program is done by HR

Department in consultation and involvement of concerned department / other

departments. During the process of induction, the new member is briefed about

the following:

1. Company Profile & Products

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2. Geographical familiarization

3. Organizational Policy & Procedures

4. Socialization with department rituals.

5. Employee Involvement activities

The induction process shall begin by

verification of the following original merit certificates wherever applicable subject

to the level of hiring:

• Educational certificates

• Proof of date of birth

• Four passport sized photographs of self

• One passport sized photographs (each) of spouse, dependent children (if

applicable) for medical insurance purpose.

• Relieving letter from the previous employer (If the relieving letter is not

available, declaration regarding resignation shall be obtained from the

candidate)

• Copy of experience certificates for all the previous employments (if

applicable)

• Salary slips certificate from the previous employer

• TDS certificate and Form 16 from previous employer (or Salary certificate)

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• Copies of certificates and testimonials

• Nomination and other documents pertaining to provident fund, gratuity

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Compress the "white space" in your hiring process

White Spaces are delays in hiring process that are unproductive, waste time, and

virtually assure you'll lose talented candidates. Often the longest delays occur

between critical selection events. For example, a recruiter may need several

weeks to screen a few resumes from the Web job boards, or candidates who

make it through screening may wait weeks to interview with a hiring manager.

Here at Escorts Construction Equipment Limited, the delays occur when the

outstation candidates are called for interviews at Regional branches like Delhi

and Faridabad. Sometimes, because of busy schedule of senior managers and

sometimes because of tight schedule of candidate, the interview has to be

postponed. This delay could be minimized by scheduling interviews in the

regional locations. It is recommended to reduce the turnaround time for the

recruitment and selection process. It must be made mandatory for the candidates

to take the test, filling up forms etc within the stipulated time, this will make sure

that the candidates do not hold casual attitude and take the recruitment process

more seriously. Additionally it will send across a positive image about the

company.

Tie up with more & more consultants from multiple segments

Since the limited placement agencies are sourcing candidates to all construction

companies, there often comes the problem of duplication of data. Therefore it is

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recommended that more and more consultants should be tied up from multiple

segments to attract large pool of new and fresh talent.

Know what you're looking for in candidates

It is observed that the candidates sourced by placement agencies and send for

further rounds of interviews are rarely found suitable by the hiring managers.

Therefore it is recommended that these placement agencies be given a well

drafted job description and job specification. This can also be circulated to

internal employees under the employee referral scheme. This will help people to

get a clearer picture and provide for most suitable candidates.

Reduce the pre offer formalities

Pre-offer documentation includes filling of a lengthy Application Blank which

includes all personal, educational and professional details of candidate. This is

very time consuming and even after taking these details from candidate its not

sure that offer will be made or not. This also becomes frustrating for the

candidate sometimes. So, it is recommended that unnecessary details should not

be asked before we make the final offer to the candidate. Application Blank form

should be made concise.

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CHALLENGES FACED BY HR IN RECRUITMENT PROCESS

The major challenges faced by the HR in recruitment are:

Adaptability to Globalization

The HR professionals are expected and required to keep in tune with the

changing times, i.e. the changes taking place across the globe. HR should

maintain the timeliness of the process

Lack of Motivation

Recruitment is considered to be a thankless job. Even if the organization is

achieving results, HR department or professionals are not thanked for recruiting

the right employees and performers.

Process Analysis

The immediacy and speed of the recruitment process are the main concerns of

the HR in recruitment. The process should be flexible, adaptive and responsive to

the immediate requirements. The recruitment process should also be cost

effective.

Strategic Prioritization

The emerging new systems are both an opportunity as well as a challenge for the

HR professionals. Therefore, reviewing staffing needs and prioritizing the tasks to

meet the changes in the market has become a challenge for the recruitment

professionals.

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Attracting Highly Talented Ones

The number of highly talented professionals is less. All the big MNC's are trying

to attract these people with high salaries, perks, incentives etc. There is a tough

competition among these companies to get these candidates on their roles.

These days, its not just salaries which will pull the candidate in but various factors

like brand, culture, location, job security, reputation of the company etc play a

major role in recruiting a talented professional.

RECENT TRENDS IN RECRUITMENT PROCESS

The following trends are being seen in recruitment process:

RECRUITMENT PROCESS OUTSOURCING

The recruitment is one of the leading functions that organization outsourced. The

outsourcing firms help the organization by the initial screening of the candidates

according to the needs of the organization and creating a suitable pool of talent

for the final selection by the organization. Outsourcing firms develop their human

resource pool by employing people for them and make available personnel to

various companies as per their needs. This practice helps the organization in

reducing time and costs in recruitment.

POACHING AND HEAD HUNTING

“Buying talent” (Rather than developing it) is the latest mantra being followed by

the organizations today. Poaching means employing a competent and

experienced person already working with another reputed company in the same

or different industry; the organization might be a competitor in the industry. Head

Hunting means you attract the employ of your choice from competitors by the

way offering lucrative packages for beginning the work for your organization. A

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company can attract talent from another firm by offering attractive pay packages

and other terms and conditions, better than the current employer of the

candidate. Indian software and the retail sector are the facing the most severe

brunt of poaching today. It has become a challenge for human resource

managers to face and tackle poaching, as it weakens the competitive strength of

the firm.

E- RECRUITMENT

Internet has created revolution in recruitment and selection process. E-

Recruitment is the use of technology to assist the recruitment process. Today

aspirants having global mindset and information on opening are available online

with placement consultant website, companies website, city line websites and

other portal. The job seekers send their applications through mail using the

Internet. Organizations are collecting database whole of the year through this and

exercising this to its level best. This will help in time and money cost for the

companies and for aspirants it is easier to access it on 24/7.

SUMMER INTERNSHIP PROGRAMME:

This programme bridges the gap between concepts reinforced in class room and

real corporate and environmental situation. Corporate having opportunity to

evaluate students for long term perspectives. Internship programme is

undertaken in the discipline concerned.

TALENT STRATEGY

Talent strategy means examining the kinds of competencies that will be needed

in the next few years, and then comparing those needs with the current

competencies. Based on the types of gaps, an organization then decides whether

to promote, transfer, terminate, and so forth.

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LEARNINGS & EXPERIENCES

Every endeavor undertaken to accomplish challenging goals, can only be

successful under the experienced and encouraging guidance. I am privileged to

have undergone training at Escorts Construction Equipment Limited. As learning

never stops, my learning at ECEL has come from a lot of exposure, on the job

training and close interaction with the HR department. In brief my learning’s and

achievements can be summarized as under:

o Observed the Interview Process for Product Support & Sales

vacancy.

o Understanding of profiles.

o Following up with the candidates during the recruitment process.

o Communicating with the HR Manager regarding the process.

o Help in the coordination of training for workers and managers.

o Learnt the effective use of communication tools.

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CONCLUSION

Success of every business enterprise depends on its human resource. Recruiting

and selecting the right people for your business is a challenge. Finding the right

man for the job and developing him into a valuable resource is an indispensable

requirement of every organization. Proper recruitment helps the line managers to

work most effectively in accomplishing the primary objective of the enterprise. In

order to harness the human energies in the service or organizational goals, every

HR manager is expected to pay proper attention to recruitment and selection

activities in an organization. Thus, personnel functions recruitment and selection,

when carried out properly, would enable the organization to hire and retain the

services of the best brains in the market.

The recruitment process inform qualified individuals about

employment opportunities, create a positive image of the company, provide

enough information about the jobs so that applicants can make comparisons with

their qualifications and interests, and generate enthusiasm among the best

candidates so that they will apply for the vacant positions. Recruitment

represents the first contact that a company makes with potential

employees. It is through recruitment that many individuals will come to know a

company, and eventually decide whether they wish to work for it.

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ANNEXURES

QUESTIONNAIRE

Name of the company Escorts Construction Equipment Limited


Industry Type Earthmoving and Construction Equipment
Name of Respondent Animesh Osta – Manager HR

Instruction : Kindly underline / highlight your choice

1. Do you have a clearly stated Recruitment & Selection Policy?

-- Yes -- No

-- To some extent

2. Which recruitment source do you use for recruitment?

-- Internal -- External

-- Both

3. What are the external sources you use for the recruitment?

-- Advertisement -- Employee Referrals

-- Job Portals -- Placement Consultants

-- Direct Applicants -- Campus Recruitments

4. Does ECEL adopts Internal Recruitment Source i.e. Transfer, promotion or

employee referrals?

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-- Yes -- No

If Yes, then for which type of post

5. Potential Candidates in the organization are generated through the

following recruitment sources:

(Rank them based on the number and quality of candidates generated and

also roughly specify the percentage mix of each of the following sources

adopted. For e.g. If the organization get maximum quality candidates from

Job Portals, then put ranking 1 and percentage say for e.g. 40%.)

S No. Sources Ranking Percentage


1. Advertisements
2. Employee Referrals
3. Job Portals
4. Placement Consultants 1
5. Direct Applicants 3
6. Campus Recruitments 2
Any other sources,
7.
please specify

6. Rank the Qualities in the order of your preference on the basis of which

you select the candidate.

S No. Qualities Ranking

1. Attitude 1

2. Experience 3

3. Knowledge 2

4. Communication 5

5. Loyalty Expectation 6

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6. Present Ability 8

7. Initiative 4

8. Team Spirit 7

7. Is the estimation of Recruitment Process cost is done?

-- Yes -- No
8. What are the challenges you face while managing your manpower?

-- Attrition -- Recruitment

-- Replacement -- Absenteeism

-- Trade union -- Cost of non performance

9. What is the range of Attrition rate in the organization?

-- 1% - 5% -- 5% - 10%

-- 10% - 15% -- 15% - 20%

-- More than 20%

10. Rank the following reasons for attrition rate.

(1- Topmost Important Reason, 2, 3, 4, ….6- Least Important Reason)

S No. Reasons Ranking


1. Market Condition 2

2. Insufficient Salary Package 4

3. Inefficient Supervisor 3
4. Inappropriate Training & Development 5

5. Lack of Motivation 6
6. Higher studies and other personal 1

reasons
7. Inept work environment 7
8. Others if any

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11. Out of total recruitment in a year, what is the percentage of internal

recruitment?

-- 0% - 5% -- 5% - 10%

-- 10% - 15% -- 15% - 20%

-- 20% - 25% -- More than 25%

12. What is the percentage of NO SHOWS? (Shortlisted candidates not

turning up for joining job)

-- 0% - 5% -- More than 15%

-- 5% - 10% -- Not at all

-- 10% - 15%

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BIBLIOGRAPHY

1. www.ecel.com

2. www.escortsgroup.com

3. www.citehr.com

4. www.google.co.in

5. www.docstoc.com

6. HR Policy Manual of ECEL

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