1

A PROJECT REPORT
ON
RECRUITMENT AND SELECTION
IN
STEEL AUTHORITY OF INDIA
LIMITED

Submitted in partial fulfilment of the

requirement of
Bachelor of Business Administration,
Guru Gobind Singh Indraprastha University
Delhi

Submitted by:
Arham Shamsi
Enrolment No.-10521401709
Jaggannath International Management School

Vasant KunjACKNOWLEDGEMENT

The present work is an effort to throw some light on

Recruitment and Selection procedure in STEEL AUTHORITY
OF INDIA LIMITED.
With

deep

sense

of

gratitude

acknowledged

the

encouragement and guidance received by my Project Guide

Mr. Pawan Kumar, in his valuable guidance.

He has been a

constant guiding force and source of illumination for me. He

was very generous in giving me this opportunity to work
under shape. I would like to thank him for his valuable
advice and guidance.
I Would also like to thank Mrs Shruti Minocha without her
guidance,

supervision,

assistance,

inspiration

and

cooperation the work would not have been possible to come

to the present shape.

Further I would thank all the staff members of HR division

who have been very courteous in providing all other
information about company and its product.
I am also thankful to all the respondents who spared their
valuable time for filling up the questionnaire and helped me
out with this project.

I convey my heartful affection to all those people who helped

and supported me during course, for completion of my
Project Report.

DECLARATION

The summer training project on A Study on Recruitment and

selection in SAIL under the guidance of Mr. PAWAN KUMAR
,AGM(Pres-Recuitment) is the original work done by me. This is
the property of the institute and use of this report without prior
permission

of

the

institute

will

be

considered

illegal

and

actionable.

Signature:

[Mr.
PAWAN KUMAR]
AGM
(Pres- Recruitment)

Table of
contents
Chapter 1
Company profile

INTRODUCTION

BACKGROUND OF THE COMPANY

Chapter 2
Literature Review

CONCEPT RECRUITMENT

RECRUITMENT NEEDS

SIGNIFICANCE OF RECRUITMENT

RECRUITMENT PROCESS

RECRUITMENT SOURCES

A.

INTERNAL

B.

EXTERNAL

ADVANTAGES AND DISADVANTAGES OF

RECRUITMENT SOURCES

FACTORS AFFECTING RECRUITMENT

RECENT TRENDS IN RECRUITMENT

CONCEPT SELECTION

OUTCOMES OF SELECTION DECISIONS

SELECTION PROCESS

DIFFERENCE BETWEEN RECRUITMENT AND

SELECTION

HRD AT SAIL

RECRUITMENT POLICY

RECRUITMENT STRATEGY

RECRUITMENT SOURCES OF SAIL

SKILLS SET RECRUITMENT

RECRUITMENT FOR MANAGERIAL POSITION

RECRUITMENT FOR SENIOR AND JUNIOR LEVEL

POSITION

RECRUITMENT CYCLE TIME

SELECTION PROCESS IN SAIL

PURPOSE OF RESEARCH STUDY

ANALYSIS AND INTERPRETATION OF DATA

FINDINGS

LIMITATIONS

RECOMMENDATIONS

CONCLUSION

BIBLIOGRAPHY

INTRODUCTION
ABOUT THE
COMPANY

PREFACE
Steel Authority of India Limited (SAIL) is the leading steel-making
company in India. It is a fully integrated iron and steel maker,
producing both basic and special steels for domestic construction,
engineering, power, railway, automotive and defence industries
and for sale in export markets. SAIL is also among the five
Maharatnas of the country's Central Public Sector Enterprises.
SAIL manufactures and sells a broad range of steel products,
including hot and cold rolled sheets and coils, galvanised sheets,
electrical sheets, structurals, railway products, plates, bars and
rods, stainless steel and other alloy steels. SAIL produces iron
and steel at five integrated plants and three special steel plants,
located principally in the eastern and central regions of India and
situated close to domestic sources of raw materials, including the
Company's iron ore, limestone and dolomite mines. The company
has the distinction of being Indias second largest producer of
iron ore and of having the countrys second largest mines
network. This gives SAIL a competitive edge in terms of captive
availability of iron ore, limestone, and dolomite which are inputs
for steel making.
SAIL's wide range of long and flat steel products are much in
demand in the domestic as well as the international market. This
vital responsibility is carried out by SAIL's own Central Marketing
Organisation (CMO) that transacts business through its network
of 37 Branch Sales Offices spread across the four regions, 25
Departmental Warehouses, 42 Consignment Agents and 27
Customer Contact Offices. CMOs domestic marketing effort is
supplemented by its ever widening network of rural dealers who
meet the demands of the smallest customers in the remotest
corners of the country. With the total number of dealers over
2000 , SAIL's wide marketing spread ensures availability of
quality steel in virtually all the districts of the country.
SAIL's International Trade Division ( ITD), in New Delhi- an ISO
9001:2000 accredited unit of CMO, undertakes exports of Mild

Steel products and Pig Iron from SAILs five integrated steel
plants.
With technical and managerial expertise and know-how in steel
making gained over four decades, SAIL's Consultancy Division
(SAILCON) at New Delhi offers services and consultancy to clients
world-wide.

10

INTRODUCTION

Steel Authority of India Ltd. a Navaratna public

sector undertaking of GOI , is the leading steel
making company in India and ranked world s
seventeenth largest steel producer in 2005.
During 2005-2006 , SAIL (ISP & special steels
plants) produced 13.47 million tonnes of crude
steel, accounting for about 31.5% of total
domestic crude steel production. With 12.05
million tonnes of saleable steel production ,SAIL
has 23%market share (mild steel).

Incorporated in 1973, steel authority of india

(SAIL) is the largest integrated steel producer in
India with multi - locational facilities of
production. It manages and operates four
integrated steel plants at bhilia (chattisgarh) ;
bokaro (Jharkhand); Durgapur (west Bengal);
rourkila (Orissa) and IISCO (west Bengal). It also
has three units making stainless and alloy steel
at Durgapur (west Bengal); salem (tamil nadu)
and bhadravati (Karnataka). Sail operates nine
iron ore, five limestone , three dolomite and
three coal mines. Besides , it also has a
subsidiary MEL, (Chanderpur) which is in the
process of being merged with SAIL. SAIL has also
procured six joint venture companies in different
areas from power plants to e-commerce.

11

Sail manufactures and sells a broad range of

steel products, including hot and cold rolled
sheets and coils , galvanized sheets, electrical
sheets, structural , railway products, plates ,
bars and rods , stainless steel and other alloy
steel. Sail produces iron and steel at four
integrated plants and three special steel plants ,
located principally in the eastern and central
regions of india and situated close to domestic
sources of raw materials, including the
Companys iron ore, limestone and dolomite
mines.

SAILs wide range of long and flat steel products

is much in demand in the domestic as well as
international market. This vital responsibility is
carried out by SAILs own Central Marketing
Organisation(CMO) and International Trade
Division. CMO encompasses a wide network of 38
branch offices and 47 stockyards located in major
cities and towns throughout India.

SAIL has a well equipped Research and

Development Centre for Iron and Steel(RDCIS) at
Ranchi which helps to produce quality steel and
develop new technologies for the steel industry.
Besides, SAIL has its own in-house centre for
Engineering and Technology(CET), Management
Training Institute(MTI) and Safety Organisation
at Ranchi. Our captive mines are under the
control of the Raw Materials Division in Calcutta.
The Environment Management Division and
Growth Division of SAIL operate from their

12

headquarters in Calcutta. Almost all our plants

and major units are ISO certified.

Major Plants and Units of SAIL

Integrated Steel Plants

Bhilai Steel Plant (BSP) in Chhattisgarh

Durgapur Steel Plant (DSP) in West Bengal
Rourkela Steel Plant (RSP) in Orissa
Bokaro Steel Plant (BSL) in Jharkhand

IISCO Steel Plant (ISP) in West Bengal

13

Special Steel Plants

Alloy Steels Plants (ASP) in West Bengal

Salem Steel Plant (SSP) in Tamil Nadu

Visvesvaraya Iron and Steel Plant (VISL) in

Karnataka

Subsidiary

Maharasht
ra
Elektrosm
elt Limited
(MEL) in
Maharasht
ra

Joint Ventures

14

NTPC SAIL Power Company Pvt. Limited (NSPCL): A

Bokaro Power Supply Company Pvt. Limited

(BPSCL): This 50:50 joint venture between SAIL and the

50:50 joint venture between Steel Authority of India Ltd

(SAIL) and National Thermal Power Corporation Ltd (NTPC
Ltd); manages SAILs captive power plants at Rourkela,
Durgapur and Bhilai with a combined capacity of 814
megawatts (MW).

Damodar Valley Corporation (DVC) is managing the 302-MW

power generating station and 660 tonnes per hour steam
generation facilities at Bokaro Steel Plant.

Mjunction Services Limited: A 50:50 joint venture

SAIL-Bansal Service Centre Limited: A joint venture

Bhilai JP Cement Limited: A joint venture company with

Bokaro JP Cement Limited: Another joint venture

between SAIL and Tata Steel; promotes e-commerce

activities in steel and related areas. Its newly added
services include e-assets sales, events & conferences, coal
sales & logistics, publications, etc.

with BMW Industries Ltd. on 40:60 basis for a service centre

at Bokaro with the objective of adding value to steel.

Jaiprakash Associates Ltd on 26:74 basis to set up a 2.2

million tonne (MT) slag-based cement plant at Bhilai.

company with Jaiprakash Associates Ltd on 26:74 basis to

set up a 2.1 MT slag-based cement plant at Bokaro.

15

SAIL & MOIL Ferro Alloys (Pvt.) Limited : A joint

S & T Mining Company Pvt. Limited: A 50:50 joint

International Coal Ventures Private Limited: A joint

SAIL SCI Shipping Pvt. Limited: A 50:50 joint venture

SAIL RITES Bengal Wagon Industry Pvt. Limited: A

SAIL SCL Limited: A 50:50 JV with Government of Kerala

venture company with Manganese Ore (India) Ltd on 50:50

basis to produce ferro-manganese and silico-manganese
required in production of steel.

venture company with Tata Steel for joint acquisition &

development of mineral deposits; carrying out mining of
minerals including exploration, development, mining and
beneficiation of identified coking coal blocks.

venture company/SPV promoted by five central PSUs, viz.

SAIL, CIL, RINL, NMDC and NTPC (with respectively 28.7%,
28.7%, 14.3%, 14.3% and 14.3% shareholding) aiming to
acquire stake in coal mines/blocks/companies overseas for
securing coking and thermal coal supplies.

with Shipping Corporation of India for provision of various

shipping and related services to SAIL for importing of
coking coal and other bulk materials and other shippingrelated business.

50:50 joint venture with RITES to manufacture, sell, market,

distribute and export railway wagons, including high-end
specialised wagons, wagon prototypes, fabricated
components/parts of railway vehicles, rehabilitation of
industrial locomotives, etc., for the domestic market.

where SAIL has management control to revive the existing

facilities at Steel Complex Ltd, Calicut and also to set up,
develop and manage a TMT rolling mill of 65,000 MT
capacity along with balancing facilities and auxilliaries.

16

BACKGROUND OF THE
COMPANY
The Precursor
SAIL traces its origin to the formative years of an emerging
nation - India. After independence the builders of modern India
worked with a vision - to lay the infrastructure for rapid
industrialisaton of the country. The steel sector was to propel the
economic growth. Hindustan Steel Private Limited was set up on
January 19, 1954.

Expanding Horizon (1959-1973)

Hindustan Steel (HSL) was initially designed to manage only one
plant that was coming up at Rourkela. For Bhilai and Durgapur
Steel Plants, the preliminary work was done by the Iron and Steel
Ministry. From April 1957, the supervision and control of these
two steel plants were also transferred to Hindustan Steel. The
registered office was originally in New Delhi. It moved to Calcutta
in July 1956, and ultimately to Ranchi in December 1959.
The 1 MT phases of Bhilai and Rourkela Steel Plants were
completed by the end of December 1961. The 1 MT phase of
Durgapur Steel Plant was completed in January 1962 after
commissioning of the Wheel and Axle plant. The crude steel
production of HSL went up from .158 MT (1959-60) to 1.6 MT. A
new steel company, Bokaro Steel Limited, was incorporated in
January 1964 to construct and operate the steel plant at
Bokaro.The second phase of Bhilai Steel Plant was completed in
September 1967 after commissioning of the Wire Rod Mill. The
last unit of the 1.8 MT phase of Rourkela - the Tandem Mill - was
commissioned in February 1968, and the 1.6 MT stage of
Durgapur Steel Plant was completed in August 1969 after
commissioning of the Furnace in SMS. Thus, with the completion
of the 2.5 MT stage at Bhilai, 1.8 MT at Rourkela and 1.6 MT at
Durgapur, the total crude steel production capacity of HSL was

17

raised to 3.7 MT in 1968-69 and subsequently to 4MT in 1972-73.

Holding Company
The Ministry of Steel and Mines drafted a policy statement to
evolve a new model for managing industry. The policy statement
was presented to the Parliament on December 2, 1972. On this
basis the concept of creating a holding company to manage
inputs and outputs under one umbrella was mooted. This led to
the formation of Steel Authority of India Ltd. The company,
incorporated on January 24, 1973 with an authorized capital of Rs.
2000 crore, was made responsible for managing five integrated
steel plants at Bhilai, Bokaro, Durgapur, Rourkela and Burnpur,
the Alloy Steel Plant and the Salem Steel Plant. In 1978 SAIL was
restructured as an operating company.
Since its inception, SAIL has been instrumental in laying a sound
infrastructure for the industrial development of the country.
Besides, it has immensely contributed to the development of
technical and managerial expertise.

Shareholding Pattern
Of SAIL

18

SHARE HOLDING PATTERN

AS ON 31ST MARCH ' 2009

Category of Shareholders
GOI

No. of Equity No. ofAmountPercentage

Shares HeldHolders
(Rs. in Crs)
(%) holding
3,544,690,282 1

3544.69

85.82

Financial Institutions & Banks

282,567,661

89

282.57

6.84

Mutual Funds

31,391,984

77

31.39

0.76

FII's
GDR

155,491,955 244 155.49

643,345

0.64

3.76
0.02

Companies/ Trusts

28,718,088 3,563 28.72

0.70

Individuals *

86,897,230354,60686.90

2.10

4,130,400,545
358,5824,130

100

Incl. Employees and NRI's

Total

SHAREHOLDING PATTERN ( % of Equity)

19

SWOT Analysis of The

Industry
The strengths, weakness, opportunities and threats for the Indian
steel industry have been tabulated below. The national steel
policy lays down the broad roadmap to deal with all of them.
STRENGTHS
Availability of abondon Iron Ore

Abondance of quality manpower

Mature production base

High maintenance of plants

WEAKNESS

20

Unscientific mining
Low productivity

Low R&D Investment

Inadequate infrastructures

High cost of debt

OPPORTUNITIES

Unexplored rural market

Growing domestic demand

Exports

THREATS

China Becoming Net Exporter

Protectionism in the West

Dumping by competitors

Corporate plan 2012

Corporate plan 2012 provides directional guidelines and sets
operational and financial objectives. As harmonizing the
functional and operational goal is essential for attaining the
strategic objectives set in plan, it is incumbent upon SAIL to
capitalize on emerging opportunities and improve further its
responsibility and market position by building a truly competitive
organisation at a global level. It is designed as a two stage
process- stage I with a perspective from present i.e.(2004-2007)
and stage -2 covering the subsequent period up to 2011-2012.

21

In the two phase process the phase-1up to 2006-2007, the

emphasis will be on exploiting existing production potential. A list
of priority schemes has already been identified for completion
by 2006-2007. These are broadly in nature of de-bottlenecking,
replacement/revamping schemes, and balancing facilities, viz
rebuilding of COBs at RSP,BSP, and BSL; reconstruction of Blast
Furnaces at RSP and BSP; installation of CDI in all steel plants;
installation of new casters at BSP & DSP etc. The total
expenditure during this phase will be around Rs.4300 crore. The
major expansion plans of introducing new Blast Furnance at RSP,
new SMS at BSP and a new mills at all the ISPs will be taken up in
the phase-II of the Corporate Plan.

The envisaged growth in volumes are planned to

be achieved by Realization of full potential of existing assets
De-bottlenecking
Linked facilities for value addition

22

Capacity enhanced in growth segments

The key strategic goals for SAIL defined in

Corporate Plan 2012 are:
To continue in the business of steel and steel related
activities.
To enhance market share in growth segments.
To improve profits by cost reduction (raw materials, salary
and wages, energy, and financial charges) and high value
added products.
To achieve excellence in quality across the value chain.
To secure availability of key raw materials, and alleviate
infrastructure bottlenecks which may constraint long term
growth.
To build customer centric-processes, systems, structure and
procedures.

23

LITERATURE
REVIEW

CONCEPT RECRUITMENT

RECRUITMENTPlacing the RIGHT PERSON in RIGHT PLACE at

RIGHT TIME.
Recruitment

is

process

of

finding

and

attracting

capable

applicants for employment. The process begins when new recruits

are sought and ends when their applications are submitted. The

24

Recruitment is an important part of an organizations human

resource planning and their competitive strength. HRP helps
determine the number and type of people an organization
needs. Job Analysis and Job Design specify the tasks and
duties

of

jobs

and

the

qualifications

expected

from

prospective jobholders.

HR Planning is the process (including forecasting,

andbe
controlling)
b
Jobdeveloping
analysis may
understood

Job description is a simple, concisely

written statement explaining the contents and essential
needs of a job and a summary of the duties to be
performed. It gives a precise picture of features of each
job in terms of task contents and occupational
requirements.
Job Description:

Job Specification: Job specification is a statement of the

minimum
perform

acceptable
a

job

human

satisfactorily.

qualities
It

necessary

translate

the

to
job

25

description into terms of the human qualifications which

are required for a successful performance of a job.

FEATURES
Recruitment is a process or a series of activities
rather than a single act or event.
Recruitment is a linking activity as it brings
together those with jobs (Recruiter) and those
seeking jobs (prospective employees).
Recruitment is a positive function as it seeks to
develop a pool of eligible persons from which most
suitable ones can be selected.
Recruitment is an important function as it makes it
possible to acquire the number and type of persons
necessary
for
continued
function
of
the
organization.
Recruitment is a pervasive function.
Recruitment is a two way process-recruiter chooses
whom to recruit, prospective employee chooses
where to apply
Recruitment is a complex job as many factors affect
it, e.g. image of the organization, nature of jobs
offered, organizational policies etc.

RECRUITMENT NEEDS ARE OF THREE TYPES

26

Planned:
i.e. the needs arising from changes in organization and
retirement policy.
Anticipated:
Anticipated needs are those movements in personnel,
which an organization can predict by studying trends in
internal and external environment.
Unexpected:
Resignation, deaths, accidents, illness give rise to
unexpected needs.
PURPOSE AND IMPORTANCE OF RECRUITMENT

Attract and encourage more and more candidates to

apply in the organization.
Create a talent pool of candidates to enable the selection
of best candidates for the organization.
Determine

present

and

future

requirements

of

the

organization in conjunction with its personnel planning

and job analysis activities.
Recruitment is the process which links the employers
with the employees.
Increase the pool of job candidates at minimum cost.
Help increase the success rate of selection process by
decreasing

number

of

visibly

under

qualified

or

overqualified job applicants.

Help reduce the probability that job applicants once
recruited and selected will leave the organization only
after a short period of time.

27

Meet

the

organizations

legal

and

social

obligations

regarding the composition of its workforce.

Begin identifying and preparing potential job applicants
who will be appropriate candidates.
Increase organization and individual effectiveness of
various recruiting techniques and sources for all types of
job applicants.
RECRUITMENT PROCESS
Recruitment process involves a systematic procedure from
sourcing the candidates to arranging and conducting the
interviews and requires many resources and time.
A general recruitment process is as follows:
1) Identify vacancy
2) Prepare job description and person specification
3) Advertising the vacancy
4) Managing the response
5) Short-listing
Personnel
Job
Employee
6) Arrange
interviewsRequisition
Planning
Analysis

To Selection

7) Conducting interview and decision making

Job
Recruitment Planning
Searching Activation Applicant
Vacancies - Numbers
Selling
Pool
- Types
- Message
- Media

Strategy Development
- Where
- How
Applicant
- When
Population

Screening

Potential
Hires

Evaluation
And Control

28

Recruitment Process
FACTORS AFFECTING RECRUITMENT
Recruitment is naturally subject to influence of several
factors. These include external as well internal forces.

Internal Factors

External Factors

Recruitment Policy
HRP
Size of the firm
Cost
Growth and Expansion

Supply and demand

Unemployment rate
Labor market
Political- Social
Image

RECRUITMENT

SOURCES OF RECRUITMENT
Every

organization

has

the

option

of

choosing

the

candidates for its recruitment processes from TWO kinds of

sources: internal and external sources.
SOURCES OF RECRUITMENT
The sources within the organization itself to fill a position
are known as the INTERNAL SOURCES of recruitment.
Recruitment candidates from all the other sources are
Internal Sources
External Sources
known as the EXTERNAL SOURCES of recruitment.
Transfers
Press Advertisement
Promotions
Educational Institutes
Upgrading
Placement Agencies / Outsourcing
Demotion
Employment Exchanges
Retired Employees
Labor Contractors
Retrenched Employees
Unsolicited applications
Dependents and relatives of deceased employees
Employee Referrals
Recruitment at factory gate

29

COMPARATIVE ADVANTAGES AND DISADVANTAGES OF

RECRUITMENT SOURCES

Advantages

Disadvantages

INTERNAL RECRUITMENT
1
It is less costly.
.

It perpetuates the old concept

of doing things.

2 Candidates are already

It abets raiding.
. oriented towards organization.
Organizations have better
3
knowledge about the internal
.
candidates.

Candidates current work may

be affected.

4 Enhancement of employee
. morale and motivation.

Politics play greater role.

5 Good performance is
. rewarded.

Morale problem for those not

promoted.

EXTERNAL RECRUITMENT
Benefits of new skills, new
1
talents and new experiences
.
to organizations.

Better morale and motivation

associated with internal
recruiting is denied to the
organization.

2 Compliance with reservation

. policy becomes easy.

It is costly.

30

Scope for resentment,

3
jealousies and heartburn are
.
avoided.

Chances of creeping in false

positive and false negative
errors.

4 It could help in injection of

. fresh blood.

Adjustment of new employees

to the organizational culture
takes longer time.

RECENT TRENDS IN RECRUITMENT

The following trends are being seen in recruitment:

Outsourcing
In India, the HR processes are being outsourced from
more than a decade now. A company may draw required
personnel from outsourcing firms. 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. In turn, the
outsourcing firms or the intermediaries charge the
organizations for their services.

Poaching / Raiding
Buying talent (rather than developing it) is the latest
mantra being followed by the organizations today. Poaching
means employing a competent and experienced person
already working with another reputed company in the same

31

or different industry; the organization might be a competitor

in the industry.

E-Recruitment
Many

big

organizations

use

Internet

as

source

of

recruitment. E- recruitment is the use of technology to assist

the

recruitment

through

process.

worldwide

web.

They
The

advertise
job

job

seekers

vacancies

send

their

applications or curriculum vitae i.e. CV through e mail using

the Internet.

CONCEPT - SELECTION
It is the process of differentiating between applicants in order
to identify and hire those with a greater likelihood of success
in a job.
Once

the

recruiting

effort

has

developed

pool

of

candidates, the next step in the HRM process is to determine

who is best qualified for the job. This step is called the
selection process. The enterprise decides whether to make a
job offer and how attractive the offer should be. The job
candidate decides whether the enterprise and the job offer
fit his or her needs and personal goals. The process also
seeks to predict which applicants will be successful if hired.
Success, in this case, means performing well on the criteria
the enterprise uses to evaluate employees.

32

OUTCOMES OF THE SELECTION DECISION

ful Unsuccess
ful Success

Job Performance

Selection Decision
Accept

Reject

Correct
Decision

Reject Error

Accept Error

Correct Decision

Correct Selection Decisions are those where the candidate

was predicted to be successful in advance and prove to be
successful on the job. At times the applicant is predicted to
be unsuccessful and, as expected, performs unsatisfactorily
after getting selected. While in the first case, the worker is
successfully accepted; in the later the worker is successfully
rejected.
Errors arise when we reject a candidate who would have
performed successfully on the job. This is termed as reject
error. In certain situations a worker is accepted ultimately
and performs unsatisfactorily. This is called accept error.
SELECTION PROCESS
Selection

is

long

process,

commencing

from

the

preliminary interview of the applicants and ending with the

contract of employment.

33

SELECTION PROCESS
SELECTION

DIFFERENCE BETWEEN RECRUITMENT AND

Difference between Recruitment and Selection

S.No
.

Recruitment

Selection

34

Recruitment is the process

Selection involves the series

of searching the candidates

of steps by which the

for employment and

candidates are screened for

stimulating them to apply

choosing the most suitable

for jobs in the organization. persons for vacant posts.

The basic purpose of
recruitments is to create a
talent pool of candidates to

The basic purpose of

enable the selection of best selection process is to

2

candidates for the

choose the right candidate

organization, by attracting

to fill the various positions

more and more employees

in the organization.

to apply in the
organization.

Recruitment is a positive

Selection is a negative

process i.e. encouraging

process as it involves

more and more employees

rejection of the unsuitable

to apply.

candidates.

Recruitment is concerned
4

with tapping the sources of

human resources.

There is no contract of
5

recruitment established in
recruitment.

Selection is concerned with

selecting the most suitable
candidate through various
interviews and tests.
Selection results in a
contract of service between
the employer and the
selected employee.

HUMAN RESOURCE DEVELOPMENT

35

Human Resources Development (HRD) as a theory is a framework

for the expansion of human capital within an organization
through the development of both the organization and the
individual
to
achieve
performance
improvement. Adam
Smith states, The capacities of individuals depended on their
access to education . The same statement applies to
organizations themselves, but it requires a much broader field to
cover both areas.
Human Resource Development is the integrated use of training,
organization, and career development efforts to improve
individual, group and organizational effectiveness. HRD develops
the key competencies that enable individuals in organizations to
perform current and future jobs through planned learning
activities. Groups within organizations use HRD to initiate and
manage change. Also, HRD ensures a match between individual
and organizational needs.

ROLE OF HRD IN SAIL

FACILITATION

Nurturing the future

Strategic interventions for organisational growth

FUNCTIONAL
Identifying skill gap
Designing training interventions
Internal consultant
Management research, publication and documentation
Develop the HRD function

36

HRD AT SAIL
HR DEPARTMENT

Recruitment
And
Selection

MIS
Training
And Compensation E-Relations
And
Development

STRUCTURE OF HR DEPARTMENT:
RECRUITMENT POLICY
Recruitment policy of SAIL consists of
Objectives
Scope
Sources of recruitment
Recruitment plan
Job specifications
Requisitions

37

Mode of selection
Selection committee
Final selection

RECRUITMENT STRATEGY
Recruitment strategies of the companies are:
At least 50% of the vacancies occurring during a year at
induction level/grades are filled up through direct
recruitment from external sources.

Recruitment of executives from external sources will be

made through open advertisement in the press.

Higher managerial grades/positions such as ASSISTANT

MANAGER, MANAGER, SENIOR MANAGER, AGM DGM GM
DP AND EXECUTIVE MANAGER are done through Direct
Recruitment.

Direct recruitment to the following will be centralised and

done on all India level basis at the Corporate Office for the
entire company including its Plants/Units .i.e.

ASST.GENERAL MANAGER, DYP.GENERAL

MANAGER,GENERAL MANAGER ,EXECUTIVE
MANAGER.
MANAGEMENT TRAINEES (TECHNICAL AND ADMN.)
JUNIOR MANAGER

38

RECRUITMENT SOURCES OF SAIL

INTERNAL SOURCES:1.

PROMOTIONS:-Sail promotes the employees from one

department to another with more benefits and greater

responsibility based on efficiency and experience.
2.

EMPLOYEE REFERRALS:- Sail has structured system

where the current employees of the organization refer their

friends and relatives for some position in the organization.

EXTERNAL SOURCES:-

1.PRESS ADVERTISEMENTS:- Advertisements of the

vacancy in newspapers and journals are a widely used
source of recruitment.

2.E-RECRUITMENT:- Sail uses Internet as a source of

recruitment. E- Recruitment is the use of technology to
assist the recruitment process

SKILL SETS REQUIREMENT

As the organization grows the need for professionalism in
the organization increases and so does the pay package.
The requirements have changed in terms of:
Role
Profile
Traits

39

Even the HR department focus on two areas:

1. Strategic policies planning and implementation
2. Activities to make the work of the people in the
organization interesting.

There is a personalized position created for each and every

individual

from

organization.

the

top

to

the

lowest

level

in

the

HR
Head

In SAIL HR Department can be categorized according to

Managerial Positions

the personalized positions :HR and Admin

Manager

Sr. HR Executive
Sr. Level Positions
Sr. Purchase Executive

HR AND ADMIN
HR
Executive

Admin
Executive
Jr. Level Positions

Store
Executive

Front Desk
Executive

40

RECRUITMENTS FOR MANAGERIAL POSITIONS IN SAIL

Recruitment

for

managerial

positions

is

done

through

interview & written test .

ELIGIBILITY: The educational qualification, experience etc
Their role in the organization in respect of their position,
job responsibility, key areas of performance.
The pay structure along with the various facilities offered
by the company.

RECRUITMENTS FOR SENIOR AND JUNIOR LEVEL POSITIONS

Main sources of recruitment here are:
Newspaper Advertisements
Internal employee reference
Recruiting IT Management trainees

41

SELECTION PROCESS IN SAIL: Initially

HR

specialists

conduct

the

PRELIMINARY

INTERVIEW to eliminate unqualified job seekers based on

the information supplied in their application forms.

Then HR specialist conducts different types of SELECTION

TESTS, depending on the job to determine the applicants
ability, aptitude and personality.

SELECTION TESTS

AbilityThis
Testassist in determining how well an individual can perform task

Aptitude TestThis assist in determining a persons potential to learn in

Personality Test
This test is given to measure a prospective employees motivation to function in
Interest Test

This test is used to measure an individuals activity pre

Medical Test

This test reveals physical fitness of a candidate

42

Then

HR

specialists

conduct

the

EMPLOYMENT

INTERVIEW.

TYPES OF EMPLOYMENT INTERVIEW

1.

One-to-one
Interview

Candidate
Interviewer

2.

Sequential
Interview

1
2
Candidate
Interviewers

Interviewers

Candidate

43

3.

Candidate
Interviewers

Panel Interview

44

PURPOSE OF
RESEARCH STUDY

45

RESEARCH METHODOLOGY:The study will be conducted to achieve the aforesaid

objectives including both exploratory and descriptive in
nature and involve personal interviews that will be based on
the questionnaire format. A Research Methodology defines
the purpose of the research, how it proceeds, how to
measure progress and what constitute success with respect
to the objectives determined for carrying out the research
study.

The research methodology for the present study has been

adopted to reflect these realties and help reach the logical
conclusion in an objective and scientific manner.
The present study contemplated an Exploratory Research.

The appropriate research design formulated is detailed

below.

RESEARCH DESIGN: Exploratory Research

46

A research design is the specification of methods and

procedures

for

acquiring

the

information

needed

to

structure or solve the problem. It is the overall operational

pattern or framework of the project that stimulates what
information is to be collected from which source and by what
procedure.

On

the

basis

of

major

purpose

of

our

investigation the EXPLORATORY RESEARCH was found to be

most suitable. This kind of research has the primary
objective of development of insights into the problem. It
studies the main area where the problem lies and also tries
to evaluate some appropriate courses of action.

DATA COLLECTION SOURCES:

Primary data: The data that is collected first hand by

someone specifically for the purpose of facilitating the study
is known as primary data. So in this research the data is
collected from respondents through QUESTIONNAIRE.

PRIMARY SOURCES
The data required for the study has been collected from-

QUESTIONNAIRE
employees of SAlL.

survey

among

the

officials

and

47

PERSONAL

INTERVIEWS

representatives

regarding

with

the

company

recruitment

and

selection practices in organization.

Advantages of the Primary data collection method

1

Primary data can be collected from a number of ways.

Primary data is current and it can better give a realistic view

to the researcher about the topic under consideration. It
provides unbiased information.

It is relatively cheap and no prior arrangements are required.

Secondary data:

Secondary data refer to information

gathered by someone other than the researcher conducting

the current study. Such data can be internal or external to
the organization and accessed through the Internet or
perusal of recorded or published information.
Secondary sources of data provide a lot of information for
research and problem solving. Such data are as we have
seen mostly qualitative in nature.

SECONDARY SOURCES:

48

The secondary data has been collected from:

Internet, websites
Organizational Reports
Case Studies
Business magazines
Books
Journals on e-learning Industry.

Advantages to the secondary data collection method

1 It saves time that would otherwise be spent collecting data.
2

It provides a larger database (usually) than what would be

possible to collect on ones own.

SAMPLING METHOD

Survey was done by QUESTIONNAIRE method.

49

SAMPLE AREA
Delhi

SAMPLE UNIT
Officials and employees of SAIL

50

ANALYSIS OF DATA

ANALYSIS AND INTERPRETATION OF DATA

1)

Is there a well defined Recruitment Policy in your

organization?

51

S.No.
1
2
3
4

Options
Strongly
Agree
Moderately
Agree
Disagree
Can't Say

No.
10
9
1
0

CONCLUSION
An organization must have a well-defined recruitment policy
corresponding to the company and vacancy requirements.
Existing employees can give a fair feedback on the
suitability of the policy. 50% employees feel that the
organizations recruitment policy is stronge & well defined.
And 45% employee feel that the organization recruitment
policy is moderately agree . Majority of employees feels that
policy is well defined which is a great morale victory on the
part of management.
Q2) Principle of right man on the right job is strictly
followed/a detailed jobrecruitment?

analysis is done prior

52

S.No.
1
2
3
4

Options
Strongly
Agree
Moderately
Agree
Disagree
Can't Say

No.
9
10
1
0

CONCLUSION
Job Analysis is the process of studying and collecting
information relating to the operations and responsibilities of
a specific job. The immediate products of this analysis are
job descriptions and job specifications. Recruitment needs to
be preceded by job analysis.

The objective of employee

hiring is to match the right people with the right jobs. The
objective is too difficult to achieve without having adequate
job information.
Responding to detail job analysis prior recruitment, 45 %
employees say that the principle of right man on the right
job is strictly followed prior to recruitment.
Job

Analysis

is

useful

for

overall

management

of

all

personnel activities. In present scenario company should

focus on job analysis as around 5% employees believes that

53

detailed job analysis is not being done prior recruitment

which in future affects performance of new recruit.
Q3) Do you think the need for manpower planning is given
due consideration in your organization and the manpower
requirement is identified well in advance?
S.No.
1
2
3
4

Options
Strongly
Agree
Moderately
Agree
Disagree
Can't Say

No.
4
8
2
1

CONCLUSION
Human Resource Planning is understood as the process of
forecasting an organizations future demand for, and supply
of, the right type of people in the right number.
27% say that manpower planning is given due importance
and manpower requirement is identified in advance. 13%
employees disagree. They think that no due consideration is
given to manpower planning in advance.

54

(Q4) Which internal source of recruitment is followed by the

company and given more priority?

S.No.
1
2
3
4

Options
Internal
Promotion
Employee
Referral
Transfer
Job Posting

No.
11
0
1
3

CONCLUSION
Internal Recruitment seeks applicants for positions from
those who are currently employed. Responding to above
asked question, 73% employees tell that company
prefers

internal

recruitments.
preferred.

promotion

as

And rest 20% say

internal

source

of

that Job posting is

Majority of employees actually thinks that

internal promotion is given priority and followed by company

as internal source of recruitment.

55

Q5) Which external source of recruitment is followed by the

company and given more priority?

S.No. Options
1 Advertisement
Online Job
2 Portals
3 Consultancy
Employment
4 Exchange

No.
13
0
1
1

CONCLUSION
External Sources of recruitment lie outside the organization
87%

employees think that Advertisement source is given

more priority and 7% employees tell that consultancy is

preferred .

56

Q6)

Which source of recruitment is relied upon when

immediate requirement arises?

Option
S.No. s
No.
1 Internal
9
Externa
2 l
6

CONCLUSION
Every

organization

has

the

option

of

choosing

the

candidates for its recruitment processes from two kinds of

sources: internal and external sources.
Responding to recruitment source question, almost all the
employees tell that internal sources are relied upon when
there is any immediate manpower requirement in company.
Analysis clearly represents that 80% say that internal
sources are better to be opted for immediate opening in
organization as company can have sufficient knowledge
about the candidate and it is less costly.

57

S.No.
1
2
3
4

Options
Strongly
Agree
Moderately
Agree
Disagree
Can't say

No.
5
4
4
2

Q7)

is

the

Do you think succession

planning is done in advance in

your organization?

CONCLUSION
Succession

Planning

process

of

identifying,

developing, and tracking key individuals so that they may

eventually assume top-level positions.
In respond to Succession Planning question, almost

27%

employees actually believe that no succession planning is

done in advance in organization.

58

Only 33% employees think that succession planning is done

in advance.

59
S.No.
1
2
3
4

Options
Strongly
Agree
Moderately
Agree
Disagree
Can't say

No.
6
6
1
2

Q8) The sorting of candidate

applications is done by some pre
set criteria?

CONCLUSION
Majority of employees, 40% believe that there is some preset

criteria

according

to

which

sorting

of

candidate

application is done. 7% feel that sorting is not done by any

pre set criteria. Rest 13% cant say about it.

60

Q9)

Which are the parameters on which candidates are

evaluated (give ratings out of 10)?

S.No.
1
2
3
4

Options
Intelligen
ce
Aptitude
Skills
Experienc
ed

No.
4
4
5
10

CONCLUSION
Responding to this question, 22% weightage is given to
experience first then second most weighted parameter is
skills then process knowledge and aptitude and lastly
attainments are considered.
Above analysis represents that employees believe that experience and skills are
mostly preferred parameter for evaluating candidates.

61

Q10) To identify
capabilities and
psychological
Do you think it is
technique?

S.No.
1
2
3
4

Options
Strongly
Agree
Moderately
Agree
Disagree
Can't say

No.
9
5
1
1

the employees
aptitude,
testing is done.
a
useful

CONCLUSION
Responding to this question, there is approximately same
percentage of opposite opinion of employees regarding
psychological testing.
56% of employees believe that to identify employees
capabilities and aptitude, psychological testing is done and
6% think that no psychological testing is carried out. 6%
employees cant give opinion on asked question.

62
S.No.
1
2
3
4

Option
s
Pattern
ed
Stresse
d
Depth
Others

No.
8
2
5
0

Q11) What type of interview is taken

while selection?

CONCLUSION
The PATTERNED INTERVIEW format has, a structure to it.
There is a set of pre-determined questions that will be asked
from each candidate for a position. The STRESS INTERVIEW
is the interview in which the interviewers try to 'discomfort'
the candidates in various ways and observe how they react
to various difficult situations. An IN-DEPTH INTERVIEW is a
qualitative research technique that allows person to person
discussion.

It can lead to increased insight into people's

thoughts, feelings, and behavior on important issues.

type of interview is often unstructured.

This

63

Responding to the type of interview 53% employees think

S.No.
1
2
3
4

Options
Strongly
Agree
Moderately
Agree
Disagree
Can't say

No.

that

patterned

interviews

are

generally taken. 33% employees

8
0
1

have

the

opinion

that

depth

interviews are often used. Rest

believes that stress or any other

type of interview is being taken.

Q12) The view of the concerned department head is given

special

attention

while

selecting

the

employee

of

the

department?

CONCLUSION
Above analysis clearly shows that almost all the employees
believe that the views of concerned department head is

64

given special attention while selecting the employee of the

department.
Only 40% employees agree for giving due consideration to
concernd departmental head opinion.

65

Q13)

Is the physical examination necessary after final

interviews?
S.No.
1
2
3
4

Options
Strongly
Agree
Moderately
Agree
Disagree
Can't say

No.
9
2
4
0

CONCLUSION
Most of the employees think that physical examination is
necessary after final interview.
27% employees feels that it is not so important and rest 60%
employees feel that physical examination is important .

66

Q14) What is the weightage given to the following (out of

100%)?

S.No. Options
1 Written Test
Group
2 Discussion
Final
3 Interview

No.
55
15
30

CONCLUSION
Responding to this question, maximum weightage is given to
Written Test. Group Discussion is given the least weightage
among the three available options.

67

Q15) Is Induction as well as a training program conducted

after joining of employees?
Option
S.No. s
1 Yes
2 No

No.
14
1

CONCLUSION
Induction is planned introduction of employees to their jobs,
their co-workers and the organization.
Almost all the employees admit that induction as well as
training program is conducted after joining of employees. It
is healthy sign for any organization.
7%

employees

tell

that

no

orientation

conducted in company for new joinees.

programme

is

68

Q16) Do you think the present selection process is feasible

for selecting the employees?
S.No.
1
2
3
4

Options
Strongly
Agree
Moderately
Agree
Disagree
Can't say

No.
6
8
1
0

CONCLUSION
Selection

is

long

process,

commencing

from

the

preliminary interview of the applicants and ending with the

contract of employment.
Responding to selection process, 7% employees think that
the present selection process is not feasible for selecting
the employees. 40% employees believe that there exists a
feasible and adaptable selection procedure in company.

69

FINDINGS

FINDINGS

70

Internal Promotions and Job Portals are mostly used

recruitment source.

Written test is given weightage during selection process.

To some extent company has pre set-criteria for sorting

the candidates applications.

Concerned departmental head is given special attention

while selecting a candidate of the department.

Employees are in the favor of physical examination and

reference check after selection of candidate.

Orientation is given to new joinee, still employees are in

favor of its improvement.

Present selection process need improvement in terms of

its procedure, tests and interview type.

71

LIMITATIONS

LIMITATIONS OF THE SURVEY

72

As the sample size was small, hence conclusions cannot

be generalized.
Unwillingness and inability of respondents to provide
information.
Due to time constraint in-depth study could not be
carried out.
As the strength of the company is big, it was not
possible

to

department.

draw

sample

from

each

and

every

73

RECOMMENDATIONS

74

RECOMMENDATIONS

After analyzing the collected data, the following recommendations were made to
improve the present recruitment and selection scenario in the organization.

First

of

all

the

recruitment

management

policy

and

look

should
for

review

the

their

areas

of

improvement for ensuring the best hiring.

Management

should

structure

and

systematically

organize the entire recruitment processes.

Recruitment

management

system

should

facilitate

faster, unbiased, accurate and reliable processing of

applications from various applications.

Recruitment

management

system

should

helps

to

helps

to

reduce the time-per-hire and cost-per-hire.

Recruitment

management

system

should

incorporate and integrate the various links like the

application
company,

system
the

on

the

unsolicited

official

website

applications,

of

the

outsourcing

recruitment, the final decision making to the main

recruitment process.

75

Recruitment management system should maintain an

automated active database of the applicants facilitating
the talent management and increasing the efficiency of
the recruitment processes.

Recruitment management system should provides and a

flexible, automated and interactive interface between
the

online

application

system,

the

recruitment

department of the company and the job seeker.

Management should offers tolls and support to enhance

productivity, solutions and optimizing the recruitment
processes to ensure improved ROI.

Recruitment

management

system

should

helps

to

communicate and create healthy relationships with the

candidates through the entire recruitment process.

Management should follow a systematic process for HR

Planning.

Present employee should be encouraged to refer their

friends and relatives. This source is usually one of the
most effective methods of recruiting because many
qualified people are reached at a very low cost to the
company. And referred individuals are likely to be
similar in type to those who are already working for the
company.

Management

EMPLOYEE REFERING.

can

propose

scheme

for

76

Internal Promotions should be done on regular basis

during specified time-period.

All selection tests i.e. Ability tests, Aptitude tests,

Personality tests, Interest tests, written tests, should
be given equal weightage during selection process.

Salary structure should be in match with companys

same level present employee and market value.

Physical examination and reference check should be

given due consideration after selecting a candidate.

Induction

should

be

properly

done

for

selected

candidate. The idea is to make the new selected

employee feel at home in the new environment.

Effectiveness of the selection process should evaluate

on regular basis for ensuring availability of competent
and committed personnel. In order to do so, a periodic
audit can be done.

77

CONCLUSION

78

CONCLUSION

Every company looks for an employee, who can work effectively. They are in
search of a person who has the maximum skills required for the job. After
selecting the right person, the companys main aim is to place that person at the
right job. The main strength of any company is its employees. Effective workers
are the best route to success. For this reason, company's strives to attract and
hire the best, and to provide the best place to work.

Some of the biggest and most constant challenges that

plague organization is people related because they dont
place more emphasis on getting the recruitment process
right. If they get the right person in the right job at the right
time, bottom-line and many other business benefits are
immediate, tangible and significant. If they get the wrong

79

person in the wrong job, then productivity, culture and

retention rates can all take a hit in a big way.

Steel

Authority

committed

Of

Indias

workforce,

Limited

still

there

has
are

competent
scope

for

and
more

improvements. To ensure that company recruits the right

people, it has to identify essential skills and behaviors that
applicants should demonstrate. For each position there
should be a job description outlining typical duties and
responsibilities and a person specification defining personal
skills

and

competences.

The

emphasis

should

be

on

matching the needs of the company to the needs of the

applicants. This would minimize employee turnover and
enhance satisfaction.
It is important for the company to have a clear and concise
recruitment

policy

in

place,

which

can

be

executed

effectively to recruit the best talent pool for the selection of

the right candidate at the right place quickly. Creating a
suitable recruitment policy is the first step in the efficient
hiring process. A clear and concise recruitment policy helps
ensure a sound recruitment process.
Management should structure and systematically organize
the entire recruitment processes. It should Offers tolls and
support to enhance productivity, solutions and optimizing
the recruitment processes to ensure improved ROI. The
Recruitment Management System (RMS) should be such that
it helps to save the time and costs of the HR recruiters in
company and improving the recruitment processes.

80

81

BIBLIOGRAPHY

BIBIOLOGRAPGY

BOOKS REFERRED
Human Resource and Personnel Management, K.
Aswathappa,
Human Resource Management , Khanka

WEBSITES REFERRED
www.mbdalchemie.com
www.google.com
www.recruitment.naukrihub.com
www.citehr.com
www.hrmguide.co.uk
www.oneclickhr.com

82

www.wikipedia.com

OFFICIAL
SAIL employee information handbook