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Summer Internship Project

Recruitment & Selection

Submitted in partial fulfillment of MBA program


2009-11

Company Guide Submitted by


Mr. Johar Richa Agarwal
Osram India Pvt. Ltd Roll no:
1400576

Faculty of Management Studies,


Graphic Era University,
Dehradun
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Student Declaration

I RICHA AGARWAL, understanding hereby declares that the project entitled


“RECRUITMENT AND SELECTION” am the original work. The Project Report
submitted in partial fulfilment of course Master of Business administration (MBA) is my
original work. No part of this project can be used for any other purpose as stated above.

I understand that any detection of copying or using is


liable to be punished in any way the company and the institutions deems fit.

Date: - RICHA AGARWAL

Place: - 1400576
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ACKNOWLEDGEMENT

I take this opportunity to express my gratitude to the people who have been instrumental
in the successful completion of this project.

I wish to express my gratitude to Mr. JOHAR (VP - HR) & Mrs. RUCHI CHILANA
(Project mentor) and also thankful to all others in HR Department. I can’t thank enough
for their tremendous support and help. Without their encouragement and guidance this
project would not have materialized.

The guidance and support received from all the members who contributed and who are
contributing to this project, was vital for the success of the project. I am grateful for their
constant support and help.

My sincere thanks to my faculty Mentor Miss. AISHWARYA MEHTA & all the respected
faculties of M.B.A. department who offered me all kind of support and help in preparing
the project.

Last but not the least; I would like to thank my Family and two of my friends

Mani & Avantika for their constant guidance, support and encouragement.
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CERTIFICATE

This is to certify that the project work done on “Recruitment and Selection” Submitted
to Faculty of Management, Graphic Era University, Dehradun by RICHA AGARWAL in
partial fulfillment of the requirement for the award of Masters in Business Administration,
is a bonafide work carried out by her under my supervision and guidance. This work has
not been submitted anywhere else for any other Degree/diploma. The original work was
carried during 1/7/2010 to 15/8/2010 in OSRAM INDIA PVT. LTD.

Date: Name of the guide: Mrs. Ruchi


Chilana
Seal/Stamp of the Organization
Address: OSRAM India Pvt. Ltd.
Signature Towers, 11th Floor
Tower B, South City-I
Gurgaon 122001,
Haryana, India.
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TABLE OF CONTENTS

1. Executive Summary 7
2. OSRAM Profile 8 – 22
• Background
• Vision and Mission
• History
• Social Policy
• Taxation Policy
• Achievements
• Presence of OSRAM IPL in INDIA
• Product Catalog

4. Introduction to Topic 23 – 69
• Definition
• Purposes and Importance
• Subsystem of Recruitment
• Recruitment policy
• Inducements
• Constraints
• Recruitment Strategies
• Sources of Recruitment
• Recruitment Process
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• Factors Affecting Recruitment


• Forms of Recruitment
• Recruitment in OSRAM INDIA
• Sources of Recruitment
• Methods of Recruitment
• Alternative to Recruitment
• Selection
• Selection process
• Standard for Selection test
• Selection Process
• Selection Interview
• Types of Interview
• Steps in Interview Process
• Interviewing Mistakes
• BARRIERS TO Effective Selection

5. Literature Review 70
6. Research Methodology 71 – 76
7. Data Analysis and Findings 77 – 87
8. Recommendations 88 – 91
9. Conclusion 92 – 98
10. Bibliography 99
11. Annexure 100 –
102
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EXECUTIVE SUMMARY

Today, in every organization personnel planning as an activity is necessary. It is an


important part of an organization. Human Resource Planning is a vital ingredient for the
success of the organization in the long run. 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.

For every organization it is important to have a right person on a right job. Recruitment
and Selection plays a vital role in this situation. Shortage of skills and the use of new
technology are putting considerable pressure on how employers go about Recruiting and
Selecting staff. It is recommended to carry out a strategic analysis of Recruitment and
Selection procedure.

This Study aims to explore the prevalent Recruitment & Selection Process at OSRAM
India Private Limited. The Recruitment & Selection Method applied at the OSRAM India
Private Limited (OIPL), was observed.

The objective of the study is to find the recruitment and selection methods prevalent at
Osram India Pvt. Ltd. As Recruitment and selection process is very important function of
the HR department, the study aims to identify the sources of recruitment of the potential
employees. The primary purpose of the study is to examine the prevailing procedure for
recruitment and selection of employees.

The study reveals that a good Recruitment & Selection Process was adopted by the
company. The management is committed to fulfill the requirement of our internal &
external customer, to prevent the mistake to happen through optimize & harmonies
interrelated process, rather than individual function. The findings suggest varied and not-
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so- expensive ways for retaining people.


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OSRAM PROFILE

Osram, founded 1906, is part of the industry sector of Siemens AG and one of the two
leading lighting manufacturers in the world. The name is derived from osmium and
Wolfram (German for tungsten, also used in English), as both these elements were
commonly used for lighting filaments at the time the company was founded. This global
player has its headquarters in Munich and employs more than 39.000 people throughout
the world.

Innovation, the motor for growth


Outlay on research and development is around 6.6% of sales. Today, OSRAM is a high-
tech company in the lighting industry. Over the next few years OSRAM expects strongest
growth in innovations. OSRAM generates over 66 per cent of sales from energy-efficient
products.

Light for every walk of life


The highest sales are achieved by the General Lighting division. OSRAM is the world's
number one supplier of automotive lamps and LED for vehicles. OSRAM is also one of
the market leaders in the field of electronic control gear (ECG) for lamps. Business with
optical semiconductors is growing rapidly and has taken on major strategic importance.
The special display-optic lamp sector is also characterized by a high rate of innovation.

Over 100 years of OSRAM


The OSRAM brand name was registered way back in 1906 and is one of the oldest trade
names still recognized throughout the world. On July 1, 1919 AEG, Siemens & Halske
AG and Deutsche Gasglühlicht AG (Auer Gesellschaft) merged their light bulb production
activities. Today, Siemens AG is the sole shareholder in OSRAM GmbH.
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Type Corporation

Industry Lighting

Founded 1906

Headquarters Munich, Germany

Employees 41,000

Parent Siemens AG

Subsidiaries Osram Sylvania

Website www.osram.com
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BACKGROUND

 OSRAM is one of the two largest lighting manufacturers in the world.


 OSRAM products are used in about 150 countries.
 With sales outside Germany accounting for 88 % of total turnover and a sales
presence on every continent, OSRAM is a true global player.
 OSRAM SYLVANIA is the North American operation of OSRAM GmbH, Germany.
 “We're proud of our longstanding reputation of providing lighting solutions in
homes, businesses and institutions, automobiles and a broad range of specialty
applications.” – OSRAM management team.
 OSRAM, illumination of Potsdamer Platz with a 3000-watt Osram-Nitra lamp, 1927In
1906 the Deutsche Gasglühlicht AG (DGA) registered the trademark “Osram” for a
new kind of wolfram lamp.

After World War I, the major German manufacturers of incandescent lamps, DGA, AEG
and Siemens & Halske, merged to form Osram GmbH KG. AEG and Siemens & Halske
brought their own incandescent lamp factories into the new business. In the same period,
in 1921/22, the well-known Osram logo was also developed which is still in use today,
with only minor modifications since it was first designed. In 1976 AEG sold its Osram
shares to Siemens under the same circumstances which led to the sale of its KWU and TU
shares (see Kraftwerk Union and Transformatoren Union AG). Since 1978, when Siemens
was also able to acquire General Electric’s shares, Osram has been wholly owned by
Siemens.
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Today it is one of the world’s leading lamp manufacturers. In fiscal 2005 the company,
headquartered in Munich, achieved sales of 4.3 billion euros, 88 percent of which came
from outside Germany.

Incandescent signal lights, the JOULE System uses tiny LEDs that consume 10 times less
energy, generate less waste and offer vehicle designers unprecedented design flexibility.
Compared to incandescent light sources, JOULE Systems can save a driver up to 4 gallons
of gasoline every year.

OSRAM LED technology also lights the Mustang's interior, providing the distinctive Ice
Blue glow to the center stack, window switches, door lock lights and headlamp switches.
The Mustang's ambient interior lighting system uses the OSRAM TOPLED family of
LEDs to flood color into the cup holders, door panels, foot wells and console. The
programmable system allows occupants to customize the interior color by choosing from
seven colors -- red, green, blue, orange, purple, white and Ice Blue -- to suit the mood.

OSRAM TOPLED was the driver behind the industry-first color-configurable instrument
cluster in the 2005 Ford Mustang and continues to provide the color lighting source for
the 2010 Mustang's interior lighting.

"LEDs continue to define the future of automobile lighting when it comes to


environmental sustainability, practical functionality and design flexibility," said David
Hulick, global product marketing manager at OSRAM for its Automotive LED Systems
Strategic Business Segment.
"The reduction in energy consumption, coupled with its long-lasting durability means less
waste is generated in the form of replacement parts and packaging. The design flexibility
offered by LEDs makes them even more desirable for defining the signature look of one
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of America's most celebrated vehicles."

The 2010 Ford Mustang's design is a more aggressive and muscular take on the iconic
look that has come to define Mustang, while drawing inspiration from the car's rich
heritage. For example, the new vertical tail lamp design utilizes three LED bulbs that fire
sequentially, from the center out, a feature not seen on Mustang since the 1960s.

As the first standardized LED system, JOULE makes LED technology more
accessible in the marketplace by providing OEM designers with a reliable, industry
standardized light source that simplifies the design process and can be utilized by many
vehicle platforms for rear combination lamp assemblies (RCLs). The OSRAM JOULE
System helps vehicle manufacturers incorporate the functionality; durability, energy-
savings, and distinctive styling that today's consumers look for in a vehicle.

Along with the Mustang's distinctive rear combination tail lamps, OSRAM worked
closely with Valero Sylvania to supply the complete exterior package including the, fog
lamps, LED CHMSL, front and rear side marker lamps and the D3S XENON headlamps.

The 2010 Mustang is the sixth Ford Motor Company vehicle to benefit from OSRAM
mercury-free, high-intensity discharge lighting technology, offered as an option?

"We're proud Ford Motor Company looked to OSRAM, the world leader in automotive
lighting when creating the latest Ford Mustang," said Hulick. "From the bright
illumination of the D3S mercury-free XENON HID headlamps to the cool convenience of
the interior dome lamp, OSRAM is as much a part of Mustang as Mustang is a part of the
American fabric.
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COMPANY’S Mission Vision

`
VISION:

 Light up life through efficient, innovative and environment friendly lighting solutions.
 Provide customers with products adhering to the highest quality and safety standards
at affordable prices.
 Create an environment that enhances the productivity, motivation of the employees
and fosters team-spirit.
 To be the market leader by offering efficient and innovative lighting
solution for all applications.

MISSION:

 Company’s mission is to shape today's materials into the lighting solution of


tomorrow.

• OSRAM believes that its ideas can make a difference in every person's life and that its
products reflect a commitment to making the world more comfortable, more
productive and more imaginative. Company continues to strive on growth and
profitability and are guided by set of values:

 OSRAM SYLVANIA is its people.


 Company is customer focused.
 They respect and care for the environment.
 They are open to, and drive, positive change.
 OSRAM sets clear and ambitious goals to stay ahead of the pack.
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Company’s History

EVENTS
1906:-
In 1906 the Deutsche Gasglühlicht AG (DGA) registered the trademark “Osram” for a
new kind of wolfram lamp. After World War I, the major German manufacturers of
incandescent lamps, DGA, AEG and Siemens & Halske, merged to form Osram GmbH
KG. AEG and Siemens & Halske brought their own incandescent lamp factories into the
new business.

1921/22:-
The well-known Osram logo was also developed which is still in use today, with only
minor modifications since it was first designed

1976:-
AEG sold its Osram shares to Siemens under the TU shares (see Kraft work Union and
Transformatoren Union AG.

1978:-
When Siemens was also able to acquire General Electric’s shares, Osram has been wholly
owned by Siemens. Today it is one of the world’s leading lamp manufacturers

2005:-
The company, headquartered in Munich, achieved sales of 4.3 billion euros, 88 percent of
which came from outside Germany.
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 The 1940s and 1950s company witnessed enormous growth, as new plants were
opened. It increased its production of materials and components, phosphors and
metals, for example, used in lighting and other products.
 Sylvania also expanded into consumer electronics, television tubes and radios.
 In the 1970s and 1980s, OSRAM gradually moved out of consumer electronics to
focus on lighting and precision materials.
 In the 1980s, the SYLVANIA Octron® fluorescent lamp and the OSRAM
 Dulux® compact fluorescent lamp represented major innovations.
 OSRAM SYLVANIA in its current form was created in January 1993.
 In 1998 company established confidential e-team to begin discussing how best to
utilize the Web to forward the company’s business objectives.

SOCIAL POLICY

Management is committed to:-


 To ensure conformation to all regulation of SA-8000 Standard & compliance towards
national and the applicable laws/regulation.
 To prevent use of child and forced labour improve health & safety, support freedom of
association, prevent discrimination & ensure timely compensation.
 To conduct our business & with fairness honesty & integrity by follow on the business
conduct Guidelines & Compliance Programs.
 To encourage our suppliers & contractors to support our principles & commitment on
social accountability.
 This policy is committed to all personnel directly or indirectly employed or otherwise
represented by the organization through awareness training.
 The management shall review social performance at regular interval for continual
improvement taking consideration in changes of legislation, our code of conduct
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guidelines and the regulation. This policy shall be made to interested parties/
stakeholders/and public on request .

TAXATION POLICY

Taxation:
 The current charge for income tax is calculated in accordance with the relevant tax
regulations applicable to the Company.
 Deferred tax asset and liability is recognized for future tax consequences attributable
to the timing differences that result between the profit offered for income tax and the
profit as per the financial statements.
 Deferred tax asset & liability are measured as per the tax rates/laws that have been
enacted or substantively enacted by the Balance Sheet date.

ACHIEVEMENTS

 The OSRAM plant in Sonepat is the fourth in India and the seventh in the world to be
awarded the Best4 (Business Excellence Sustainability Task) Integrated Management
certification by RINA. This indicates compliance with international standards ISO
9001(quality), ISO 14001 (environment), OHSAS 18001 (health and safety) and SA
8000 (social accountability).
 The Sonepat Plant has also been honored with the Siemens Environmental Award
2006.
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Presence of OSRAM IPL in India

Head / North Office:


OSRAM India Pvt. Ltd.
Signature Towers, 11th Floor
Tower B, South City-I
Gurgaon 122001,
Haryana, India.

Regional Office In SOUTH


OSRAM India Pvt. Ltd.
Unit No# 301 - 303,
MADISON ,4th Floor,
Airport Road
(1/3 Kodihalli Main Road)
Bangalore - 560008

In NORTH
Gurgaon IDC
Times Square Building,
B-Block, IInd Floor,
Sushant Lok-1, Gurgaon]
OSRAM Factory:
OSRAM India Pvt. Ltd. Delhi Road
Sonepat - 131 001
Tel: +91-130-2218101 to 10
Fax: +91-130-2218113
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OSRAM Distribution Centers:

In SOUTH
OSRAM India Pvt. Ltd.
7-1-282/C/1/56,
Lingaiah Nagar, Balakampet,
Hyderabad-500038
Andhra Pradesh

OSRAM India Pvt. Ltd.


C/o Fixit & Co.
225/20B, Laxman Road
Kandanchavaidi Chennai

OSRAM India Pvt. Ltd.


C/o. Devi Pharmaceuticals,
Door no 34/527A,N H Bypass,
Edappally-Arkkaakadavu Road
Cochin - 682 024
Opp. NSS Working Women Hostel, Padivattom,

OSRAM India Pvt. Ltd.


C/o Aruna Trade Combine
#38/10, New Timber Yard Layout
Opp. Mysore Road
Bangalore – 27

OSRAM India Pvt. Ltd.


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Unit No# 301 - 303,


MADISON ,4th Floor,
Airport Road(1/3 Kodihalli Main Road)
Bangalore - 560008

In EAST
OSRAM India Pvt. Ltd.
C/o Trishakti Enterprises
West of B.M.P 16.

Mourya Vihar
Phulwari Sharif,
Khagaul Road, Patna

OSRAM India Pvt. Ltd.


Agility Logistics Private Ltd.
General Magnets Premises
JayShree Bus Stop, M.Gobindpur,
Budge-Budge Trunk Road,
Kolkatta
OSRAM India Pvt. Ltd.
C/o Rashmi Agency,
Plot No. 178 Sec-A , Zone-B
Mancheswar Industrial Estate,
Rasulgarh, Bhuwaneshwar

OSRAM India Pvt. Ltd.


C/o P.N. PHARMA MARKETING SERVICES PVT. LTD.
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"Gour Smriti" A.K. DEB Road


Fatashil (AMBARI)
Guwhati- 781025, Assam
OSRAM India Pvt. Ltd.
Garg Niwas, Lake Avenue
Kanke Road RANCHI - 834 008

In NORTH
OSRAM India Pvt. Ltd.
C/o Baba Associates
Khasra No.43/25
Near Giri Raj Dharamkanta
Khera Kalan, Delhi-110082,

OSRAM India Pvt. Ltd. Resort,


C/o Sumit & Co. Kay Ess Associates
SCO No. 32-33-34 (1st Floor )
Chandigarh-Zirakpur Road,

Opposite Imperial Resort,


Adjoining Link Road to Choice
Zirakpur, Distt. Mohali
Punjab - 140 105

OSRAM India Pvt. Ltd.


Shambhoo Enterprises
G519, Road no. 9-A,
Vishwakarma Industrial Area
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Jaipur - 302013.

OSRAM India Pvt. Ltd.


C/o Kamal Sons
C-46, Akashdeep Building Transport Nagar
Lucknow 226012
OSRAM India Pvt. Ltd.
C/o Nitin Enterprises
1557/2, Near Shankar Cold Storage Road, Bulandshar Bridge
Ghaziabad - 201 001

OSRAM India Pvt. Ltd.


C/o Nitin Enterprises D.K Cold Storage Compound Sunhera Road, Idgah
Chowk , Kashipur Roorkee, Uttranchal
OSRAM India Pvt. Ltd.
C/o Sunder Cols Storage
GT Karnal RoadKundli, Dist. Sonepat
Haryana
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Product Catalog

Incandescent lamps Tungsten halogen lamps

Compact fluorescent lamps /


LED lamps
Energy saving lamps
High intensity discharge (HID)
Fluorescent lamps
lamps
Display and signal lamps and
Special lamps lamps for traffic light
installations
LED systems Automotive lamps

Display/Optic Control gears

Light management systems Luminaires

OSRAM Opto Semiconductors: LED and optical semiconductors


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INTRODUCTION TO TOPIC

The human resources are the most important assets of an organization. The success
or failure of an organization is largely dependent on the caliber of the people working
therein. Without positive and creative contributions from people, organizations cannot
progress and prosper. In order to achieve the goals or the activities of an organization,
therefore, they need to recruit people with requisite skills, qualifications and experience.
While doing so, they have to keep the present as well as the future requirements of the
organization in mind.

Recruitment is distinct from Employment and Selection. Once the required


number and kind of human resources are determined, the management has to find the
places where the required human resources are/will be available and also find the means
of attracting them towards the organization before selecting suitable candidates for jobs.
All this process is generally known as recruitment. Some people use the term
“Recruitment” for employment. These two are not one and the same. Recruitment is only
one of the steps in the entire employment process. Some others use the term recruitment
for selection. These are not the same either. Technically speaking, the function of
recruitment precedes the selection function and it includes only finding, developing the
sources of prospective employees and attracting them to apply for jobs in an organization,
whereas the selection is the process of finding out the most suitable candidate to the job
out of the candidates attracted (i.e., recruited).Formal definition of recruitment would give
clear cut idea about the function of recruitment.

DEFINITIONS

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
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that manpower in adequate numbers to facilitate effective selection of an efficient


workforce.” Edwin B. Flippo defined recruitment as “the process of searching for
prospective employees and stimulating them to apply for jobs in the organization.”
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.

PURPOSES AND IMPORTANCE

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


candidates. Specifically, the purposes are to:

 Determine the present and future requirements of the organization in conjunction with
its personnel-planning and job-analysis activities.
 Increase the pool of job candidates at minimum cost.
 Help increase the success rate of the selection process by reducing the number of
visibly, under qualified or overqualified job applicants.
 Help reduce the probability that job applicants, once recruited and selected, will leave
the organization only after a short period of time.
 Begin identifying and preparing potential job applicants who will be appropriate
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candidates.
 Induct outsiders with a new perspective to lead the company.
 Infuse fresh blood at all levels of the organization.
 Develop an organizational culture that attracts competent people to the company.
 Search or head hunt/head pouch people whose skills fit the company’s values.
 Devise methodologies for assessing psychological traits.
 Search for talent globally and not just within the company.
 Design entry pay that competes on quality but not on quantum.
 Anticipate and find people for positions that do not exist yet.
 Increase organizational and individual effectiveness in the short term and long term.
 Evaluate the effectiveness of various recruiting techniques and sources for all types of
job applicants.

Recruitment represents the first contact that a company makes with potential
employees. It is through recruitment that many individuals will come to know a company,
and eventually decide whether they wish to work for it. A well-planned and well-managed
recruiting effort will result in high-quality applicants, whereas, a haphazard and piecemeal
effort will result in mediocre ones. High-quality employees cannot be selected when better
candidates do not know of job openings, are not interested in working for the company
and do not apply. The recruitment process should inform qualified individuals about
employment opportunities, create a positive image of the company, provide enough
information about the jobs so that applicants can make comparisons with their
qualifications and interests, and generate enthusiasm among the best candidates so that
they will apply for the vacant positions.

The negative consequences of a poor recruitment process speak volumes about its role
in an organization. The failure to generate an adequate number of reasonably qualified
applicants can prove costly in several ways. It can greatly complicate the selection process
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and may result in lowering of selection standards. The poor quality of selection means
extra cost on training and supervision. Furthermore, when recruitment fails to meet the
organizational needs for talent, a typical response is to raise entry-level pay scales. This
can distort traditional wage and salary relationships in the organization, resulting in
avoidable consequences. Thus, the effectiveness of a recruitment process can play a major
role in determining the resources that must be expended on other HR activities and their
ultimate success.

SUB-SYSTEMS OF RECRUITMENT

The recruitment process consists of the following four sub-functions:-


• Finding out and developing the sources where the required number and kind of
employees will be available.
• Developing suitable techniques to attract the desirable candidates.
• Employing the techniques to attract candidates.
• Stimulating as many candidates as possible and asking them to apply for jobs
irrespective of the number of candidates required.

Management has to attract more candidates in order to increase the selection ratio so
that the most suitable candidate can be selected out of the total candidates available.
Recruitment is positive as it aims at increasing the number of applicants and selection is
somewhat negative as it selects the suitable candidates in which process; the unsuitable
candidates are automatically eliminated. Though, the function of recruitment seems to be
easy, a number of factors make performance of recruitment a complex one.
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RECRUITMENT POLICY

Recruitment policy of any organization is derived from the personnel policy of the
same organization. In other words the former is a part of the latter. However, recruitment
policy by itself should take into consideration the government’s reservation policy, policy
regarding sons of soil, etc., personnel policies of other organizations regarding merit,
internal sources, social responsibility in absorbing minority sections, women, etc.
Recruitment policy should commit itself to the organization’s personnel policy like
enriching the organization’s human resources or servicing the community by absorbing
the retrenched or laid-off employees or casual/temporary employees or dependents of
present/former employees, etc.
The following factors should be taken into consideration in formulating recruitment
policy. They are:-

 Government policies
 Personnel policies of other competing organizations
 Organization’s personnel policies
 Recruitment sources
 Recruitment needs
 Recruitment cost
 Selection criteria and preference

INDUCEMENTS

Organizational inducements are all the positive features and benefits offered by an
organization that serves to attract job applicants to the organization. Three
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inducements need specific mention here, they are:-

Compensation:

Starting salaries, frequency of pay increases, incentives and fringe benefits can all
serve as inducements to potential employees.

Career Opportunities:

These help the present employees to grow personally and professionally and also
attract good people to the organization. The feeling that the company takes care of
employee career aspirations serves as a powerful inducements to potential employees.

Image or Reputation;

Factors that affect an organization’s reputation include its general treatment of


employees, the nature and quality of its products and services and its participation in
worthwhile social endeavors.

CONSTRAINTS

If a firm has a poor image in the market, many of the prospective candidates may
not even apply for vacancies advertised by the firm. If the job is not attractive, qualified
people may not even apply. Any job that is viewed as boring, hazardous, anxiety
producing, low-paying, or lacking in promotion potential seldom will attract a qualified
pool of applicants. Recruiting efforts require money. Sometimes because of limited
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resources, organizations may not like to carry on the recruiting efforts for long periods of
time, this can, ultimately, constrain a recruiter’s effort to attract the best person for the job.
Government policies often come in the way of recruiting people as per the rules of the
company or on the basis of merit/seniority, etc. For example, reservations to specific
groups (such as scheduled castes, scheduled tribes, backward castes, physically
handicapped and disabled persons, ex-servicemen, etc.) have to be observed as per
constitutional provisions while filling up vacancies in government corporations,
departmental undertakings, local bodies, quasi-government organizations, etc.
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Recruitment Strategies

Recruitment is of the most crucial roles of the human resource professionals. The level of
performance of and organization depends on the effectiveness of its recruitment function.
Organizations have developed and follow recruitment strategies to hire the best talent
for their organization and to utilize their resources optimally. A successful recruitment
strategy should be well planned and practical to attract more and good talent to apply in
the organization.

For formulating an effective and successful recruitment strategy, the strategy should cover
the following elements:

Identifying and prioritizing jobs

Recruitment keeps arising at various levels in every organization; it is almost a never-


ending process. It is impossible to fill all the positions immediately. Therefore, there is a
need to identify the positions requiring immediate attention and action. To maintain the
quality of the recruitment activities, it is useful to prioritize the vacancies whether to focus
on all vacancies equally or focusing on key jobs first.

Candidates to target

The recruitment process can be effective only if the organization completely understands
the requirements of the type of candidates that are required and will be beneficial for the
organization. This covers the following parameters as well:
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 Performance level required: Different strategies are required for focusing on hiring
high performers and average performers.

 Experience level required: The strategy should be clear as to what is the


experience level required by the organization. The candidate’s experience can
range from being a fresher to experienced senior professionals.

 Category of the candidate: The strategy should clearly define the target candidate.
He/she can be from the same industry, different industry, unemployed, top
performers of the industry etc.

Sources of recruitment

The strategy should define various sources (external and internal) of recruitment.
Which are the sources to be used and focused for the recruitment purposes for various
positions. Employee referral is one of the most effective sources of recruitment.

Trained recruiters

The recruitment professionals conducting the interviews and the other recruitment
activities should be well-trained and experienced to conduct the activities. They should
also be aware of the major parameters and skills (e.g.: behavioral, technical etc.) to
focus while interviewing and selecting a candidate.

How to evaluate the candidates

The various parameters and the ways to judge them i.e. the entire recruitment process
should be planned in advance. Like the rounds of technical interviews, HR interviews,
34

written tests, psychometric tests etc.

RECRUITMENT PROCESS: THE ‘HEART’ OF HUMAN


RESOURCES MANAGEMENT

Recruitment Process

1) Recruitment request and job summary:


Required to post a position Electronic forms can be used to expedite posting.

2) Posting existing positions:


Verifying status of current position, no changes to job .

3) Posting new positions:


Provisional ratings done for YUSA, CPM Job-E Committee assigns CPM bands to the
position. Please note that these positions must be budget approved. To attain budget
approval you must have your position approved by your area VP.

4) Applications/resumes:
Forwarded to hiring manager once posting has closed.

5) Short listing/Selection:
Hiring manager can review files and may or may not involve Recruitment Services in
the selection process.
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6) External Searches:
Can be conducted when internal applicants are not qualified.
Affirmative Action search begins with a possibility of advertising.

7) Interviewing:
The hiring manager can screen and interview the applicants. Recruitment
Services optional.

8) Reference Checks:
The hiring manager will conduct reference checks, with or without Recruitment Services.

9) Job Offer:
The hiring manager or Recruitment Services makes the offer.

10) Recruitment Forms:


ETFs / PAFs must be forwarded to Recruitment Services.

11) Offer letters:


The ETF/PAF generates the offer letter. Recruitment Services provides the incumbent with
two letters; one to be signed and returned, if accepted.

12) Orientation:
Set-up by Recruitment Services and is required for all new employees to York.
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FACTORS AFFECTING RECRUITMENT

The recruitment function of the organizations is affected and governed by a mix of various
internal and external forces. The internal forces or factors are the factors that can be
controlled by the organization. And the external factors are those factors which cannot be
controlled by the organization. The internal and external forces affecting recruitment
function of an organization are:
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Forms Of Recruitment

The organizations differ in terms of their size, business, processes and practices. A few
decisions by the recruitment professionals can affect the productivity and efficiency of the
organization. Organizations adopt different forms of recruitment practices according to
the specific needs of the organization. The organizations can choose from the centralized
or decentralized forms of recruitment, explained below:

CENTRALIZED RECRUITMENT

The recruitment practices of an organization are centralized when the HR / recruitment


department at the head office performs all functions of recruitment. Recruitment decisions
for all the business verticals and departments of an organization are carried
out by the one central HR (or recruitment) department. Centralized from of recruitment is
commonly seen in government organizations.

Benefits of the centralized form of recruitment are:

• Reduces administration costs

• Better utilization of specialists

• Uniformity in recruitment

• Interchangeability of staff

• Reduces favoritism
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• Every department sends requisitions for recruitment to their central office

DECENTRALIZED RECRUITMENT

Decentralized recruitment practices are most commonly seen in the case of conglomerates
operating in different and diverse business areas. With diverse and geographically spread
business areas and offices, it becomes important to understand the needs of each
department and frame the recruitment policies and procedures accordingly. Each
department carries out its own recruitment. Choice between the two will depend upon
management philosophy and needs of particular organization. In some cases combination
of both is used. Lower level staffs as well as top level executives are recruited in a
decentralized manner.

MERITS OF DECENTRALISED RECRUITMENT

The unit concerned concentrates only on those sources/places wherein normally gets the
suitable candidates. As such the cost of recruitment would be relatively less.
The unit gets most suitable candidates as it is well aware of the requirements of the job
regarding culture, traditional, family background aspects, local factors, social factors, etc.
Units can recruit candidates as and when they are required without any delay.
The units would enjoy freedom in finding out, developing the sources, in selecting and
employing the techniques to stimulate the candidates.
The unit would relatively enjoy advantage about the availability of information, control
and feedback and various functions/processes of recruitment.
The unit would enjoy better familiarity and control over the employees it recruits rather
than on employees selected by the central recruitment agency.
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Both the systems of recruitment would suffer from their own demerits. Hence, the
management has to weigh both the merits and demerits of each system before making a
final decision about centralizing or decentralizing the recruitment. Alternatively
management may decentralize the recruitment of certain categories of employees
preferably middle and top level managerial personnel and centralize the recruitment of
other categories of employee’s preferably lower level positions in view of the nature of the
jobs and suitability of those systems for those categories of positions. The management
has to find out and develop the sources of recruitment after deciding upon centralizing or
decentralizing the recruitment function.

RECRUITMENT IN OSRAM INDIA

Recruitment in Osram India is in centralized form. All the recruitment activities take place
from its headquarters. It usually prefers online recruitment through job or web portals like
www.naukri.com etc.

There are many benefits – both to the employers and the job seekers but the e-recruitment
is not free from a few shortcomings. Some of the advantages and the disadvantages of e-
recruitment are as follows:

Advantages of E-Recruitment are:

Lower costs to the organization. Also, posting jobs online is cheaper than advertising in
the newspapers.

No intermediaries.
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Reduction in the time for recruitment (over 65 percent of the hiring time).
Facilitates the recruitment of right type of people with the required skills.

Improved efficiency of recruitment process.

Gives a 24*7 access to an online collection of resumes.

Online recruitment helps the organizations to weed out the unqualified candidates in an
automated way.

Recruitment websites also provide valuable data and information regarding the
compensation offered by the competitors etc. which helps the HR managers to take
various HR decisions like promotions, salary trends in industry etc

Disadvantages of E-Recruitment

Apart from the various benefits, e-recruitment has its own share of shortcomings and
disadvantages. Some of them are:

 Screening and checking the skill mapping and authenticity of million of resumes is
a problem and time consuming exercise for organisations.

 There is low Internet penetration and no access and lack of awareness of internet
in many locations across India.

 Organizations cannot be dependant solely and totally on the online recruitment


methods.
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SOURCES OF RECRUITMENT

The sources of recruitment may be broadly divided into two categories: internal
sources and external sources. Both have their own merits and demerits. Let’s examine
these.

Internal Sources:

Persons who are already working in an organization constitute the ‘internal


sources’. Retrenched employees, retired employees, dependents of deceased employees
may also constitute the internal sources. Whenever any vacancy arises, someone from
within the organization is upgraded, transferred, promoted or even demoted.

External Sources :

External sources lie outside an organization. Here the organization can have the
services of :
(a) Employees working in other organizations;
(b) Jobs aspirants registered with employment exchanges;
(c) Students from reputed educational institutions;
(d) Candidates referred by unions, friends, relatives and existing employees;
(e) Candidates forwarded by search firms and contractors;
(f) Candidates responding to the advertisements, issued by the organization;
(g) Unsolicited applications/ Walk Ins
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Merits and Demerits of ‘Recruiting people from ‘Within’:

Merits Demerits

Economical: The cost of recruiting Limited Choice: The organization is


internal candidates is minimal. No forced to select candidates from a limited
expenses are incurred on advertising. pool of candidates.

Suitable: The organization can pick the Inbreeding: It discourages entry for
right candidates having the requisite talented people, available outside an
skills. The candidate can choose a right organization. Existing employees may
vacancy where their talents can be fully fail to behave in innovative ways and
utilized. inject necessary dynamism to enterprise
activities.
Satisfying: A policy of preferring people
from within offers regular promotional Inefficiency: Promotions based on
avenues for employees. It motivates them length of service rather than merit, may
to work hard and earn promotions. They prove to be a blessing for inefficient
will work with loyalty commitment and candidate. They do not work hard and
enthusiasm. prove their worth.

Bone of contention: Recruitment from


within may lead to infighting among
employees aspiring for limited, higher
level positions in an organization. As
years roll by, the race for premium
positions may end up in a bitter race.
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Merits and Demerits of External sources of Recruitment:

Merits Demerits

Wide Choice: The organization has the Expenses: Hiring costs could go up
freedom to select candidates from a large substantially. Tapping multifarious sources
pool. Persons with requisite qualifications of recruitment is not an easy task either.
could be picked up.
Infection of fresh blood: People with Time consuming: It takes time to
special skills and knowledge could be advertise, screen, to test and test and to
hired to stir up the existing employees and select suitable employees. Where suitable
pave the way for innovative ways of ones are not available, the process has to
working. be repeated.
De-motivating: Existing employees who
Motivational force: It helps in motivating have put in considerable service may resist
internal employees to work hard and the process of filling up vacancies from
compete with external candidates while outside. The feeling that their services
seeking career growth. Such a competitive have not been recognized by the
atmosphere would help an employee to organization, forces then to work with less
work to the best of his abilities. enthusiasm and motivation.

Uncertainty: There is no guarantee that


Long term benefits: Talented people the organization ultimately will be able to
could join the ranks, new ideas could find hire the services of suitable candidates. It
meaningful expression, a competitive may end up hiring someone who does not
atmosphere would compel people to give fit and who may not be able to adjust in the
out their best and earn rewards, etc. new setup.
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METHODS OF RECRUITMENT

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

INTERNAL METHODS:

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, on the other hand, involves movement of employee from a
lower level position to a higher level position accompanied by (usually) changes in duties,
responsibilities, status and value. Organizations generally prepare badli lists or a central
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pool of persons from which vacancies can be filled for manual jobs. Such persons are
usually passed on to various departments, depending on internal requirements. If a person
remains on such rolls for 240 days or more, he gets the status of a permanent employee as
per the Industrial Disputes Act and is therefore entitled to all relevant benefits, including
provident fund, gratuity, retrenchment compensation.

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 to look for growth opportunities within the company without looking for
greener pastures outside.

Employee Referrals

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


recommendation from a current employee regarding a job applicant. The logic behind
employee referral is that “it takes one to know one”. Employees working in the
organization, in this case, 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 Information
Technology industry nowadays. Companies offer rich rewards also to employees whose
recommendations are accepted – after the routine screening and examining process is over
– and job offers extended to the suggested candidates. As a goodwill gestures, companies
also consider the names recommended by unions from time to time.
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External (direct) Methods:

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 such as
IITs, IIMs, colleges and universities 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, in turn, get a snapshot of job seekers through constant interchange of
information with respective institutions.
A preliminary screening is done within the campus and the short listed students are
then subjected to the remainder of the selection process. In view of the growing demand
for young managers, most reputed organizations (such as Hindustan Lever Ltd., Proctor &
Cable, Citibank, State Bank of India, Tata and Birla group companies) visit IIMs and IITs
regularly and even sponsor certain popular campus activities with a view to earn goodwill
in the job market. Advantages of this method include: the placement centre helps locate
applicants and provides resumes to organizations; applicants can be prescreened;
applicants will not have to be lured away from a current job and lower salary expectations.
On the negative front, campus recruiting means hiring people with little or no work
experience.

The organizations will have to offer some kind of training to the applicants, almost
immediately after hiring. It demands careful advance planning, looking into the
placement weeks of various institutions in different parts of the country. Further, campus
recruiting can be costly for organizations situated in another city (airfare, boarding and
lodging expenses of recruiters, site visit of applicants if allowed, etc.).

If campus recruitment is used, steps should be taken by human resource department to


47

ensure that recruiters are knowledgeable concerning the jobs that are to be filled and the
organizations and understand and employ effective interviewing skills.

Guidelines for campus recruiting: companies using college campuses as recruitment


source should consider the following guidelines:

Identify the potential candidates early:

The earlier that candidate with top potential can be identified, the more likely the
organization will be in a position to attract them.

Employ various means to attract candidates:

These may include providing research grants; consulting opportunities to faculty


members, funding university infrastructural requirements, internships to students, etc.
in the long run these will enhance the prestige of the company in the eyes of potential
job seekers.

Use effective recruitment material:

Attractive brochures, films, computer diskettes, followed by enthusiastic and effective


presentations by company officials, correspondence with placement offices in
respective campus in a friendly way – will help in booting the company image in the
eyes of the applicants. The company must provide detailed information about the
characteristics of entry – level positions, especially those that have had a major
positive impact on prior applicants’ decisions to join the company.

Offer training to campus interviews:


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Its better to devote more time and resources to train on campus interviewers to answer
specific job –related questions of applicants.

Come out with a competitive offer:

Keep the key job attributes that influence the decisions of applicants such as
promotional avenues, challenging assignments, long term income potential, etc., while
talking to candidates.

Indirect methods:-

Advertisements:-

These include advertisements in newspapers; trade, professional and technical


journals; radio and television; etc. in recent times, this medium has become just as
colourful, lively and imaginative as consumer advertising. 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 want a fairly good number of talented people – who are
geographically spread out. To apply for advertised vacancies let’s briefly examine the
wide variety of alternatives available to a company - as far as ads are concerned:

Newspaper Ads:
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Here it is easy to place job ads without much of a lead time. It has flexibility in
terms of information and can conveniently target a specific geographic location. On the
negative side, newspaper ads tend to attract only those who are actively seeking
employment at that point of time, while some of the best candidates who are well paid and
challenged by their current jobs may not be aware of such openings.
As a result, the company may be bombarded with applications from a large
number of candidates who are marginally qualified for the job – adding to its
administrative burden. To maintain secrecy for various reasons (avoiding the rush,
sending signals to competitors, cutting down expenses involved in responding to any
individual who applies, etc.), large companies with a national reputation may also go in
for blind-box ads in newspapers, especially for filling lower level positions. Job aspirants
are asked to respond to a post office box number or to an employment firm that is acting
as an agent between the job seekers and the organization.

Television and radio ads:

These ads are more likely to each individual who are not actively seeking
employment; they are more likely to stand out distinctly, they help the organization to
target the audience more selectively and they offer considerable scope for designing ads
creatively. However, these ads are expensive. Also, because the television or radio is
simply seen or heard, potential candidates may have a tough time remembering the
details, making application difficult.

Third Party Methods :


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Private Employment Search Firms:-

As search firm is a private employment agency that maintains computerized lists of


qualified applicants and supplies these to employers willing to hire people from the list
for a fee. Firms like Arthur Anderson, Boble and Hewitt, ABC consultants, SB
Billimoria, KPMG; Ferguson Associates offers specialized employment-related services
to corporate houses for a fee, especially for top and middle level executive vacancies.
AT the lower end, a number of search firms operate – providing multifarious services to
both recruiters and the recruiters.

Employment Exchanges:-

AS a statutory requirement, companies are also expected to notify (wherever the


Employment Exchanges Act, 1959, applies) their vacancies through the respective
Employment Exchanges, created all over India for helping unemployed youth, displaced
persons, ex-military personnel, physically handicapped, etc. AS per the Act all employers
are supposed to notify the vacancies arising in their establishments form time to time –
with certain exemptions – to the prescribed employment exchanges before they are
filled.
The Act covers all establishments in public sector and nonagricultural
establishments employing 25 or more workers in the private sector. However, in view of
the practical difficulties involved in implementing the provisions of the Act (such as
filing a quarterly return in respect of their staff strength, vacancies and shortages, returns
showing occupational distribution of their employees, etc.) many organizations have
successfully fought court battles when they were asked to pick up candidates from
among those sponsored by the employment exchanges.

Gate Hiring and Contractors:-


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Gate hiring (where job seekers, generally blue collar employees, present themselves
at the factory gate and offer their services on a daily basis), hiring through contractors,
recruiting through word-of-mouth publicity are still in use – despite the many
possibilities for their misuse – in the small scale sector in India.

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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Alternatives to Recruitment

Since recruitment and selection costs are high (search process, interviewing agency
fee, etc.) firms these days are trying to look at alternatives to recruitment especially when
market demand for firm’s products and services is sluggish. Moreover, once employees
are placed on the payroll, it may be extremely difficult to remove them if their
performance is marginal. Some of the options in this regard may be listed thus:

Evaluation of Alternative Sources

Companies have to evaluate the sources of recruiting carefully – looking at cost, time,
flexibility, quality and other criteria – before earmarking funds for the recruitment
process. They cannot afford to fill all their vacancies through a particular source. To
facilitate the decision making process in this regard, companies rely on the following:

Time lapse data:

They show the time lag between the dates of requisition for manpower supply from a
department to the actual date of filling the vacancies in that department. For example, a
company’s past experience may indicate that the average number of days from application
to interview is 10, from interview to offer is 7, from offer to acceptance is 10 and from
acceptance to report for work is 15. Therefore, if the company starts the recruitment and
selection process now it would require 42 days before the new employee joins its ranks.
Armed with this information, the length of the time needed for alternative sources of
recruitment can be ascertained – before pinning hopes on a particular source that meets
the recruitment objectives of the company.
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Yield ratios:

These ratios indicate the number of leads / contacts needed to generate a given number of
hires at a point at time. For example, if a company needs 10 management trainees in the
next six months, it has to monitor past yield ratios in order to find out the number of
candidates to be contacted for this purpose. On the basis of past experience, to continue
the same example, the company finds that to hire 10 trainees, it has to extend 20 offers. If
the interview-to-offer is 3:2, then 30 interviews must be conducted. If the invitees to
interview ratios are 4:3 then, as many as 40 candidates must be invited. Lastly,

Surveys and studies:

Surveys may also be conducted to find out the suitability of a particular source for certain
positions. For example, as pointed out previously, employee referral has emerged as
popular way of hiring people in the Information Technology industry in recent times in
India. Correlation studies could also be carried out to find out the relationship between
different organizational positions. Before finally identifying the sources of recruitment,
the human resource managers must also look into the cost or hiring a candidate. The cost
per hire can be found out by dividing the recruitment cost by the number of candidates
hired.
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SELECTION

Introduction

The size of the labour market, the image of the company, the place of posting, the
nature of job, the compensation package and a host of other factors influence the manner
of aspirants are likely to respond to the recruiting efforts of the company. 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.

Definition

To select mean to choose. 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.

Purpose

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.
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Selection Process

Selection is usually a series of hurdles or steps. Each one must be successfully cleared
before the applicant proceeds to the next one. The time and emphasis place on each step
will definitely vary from one organization to another and indeed, from job to job within
the same organization. The sequence of steps may also vary from job to job and
organization to organization. For example some organizations’ may give more importance
to testing while others give more emphasis to interviews and reference checks. Similarly a
single brief selection interview might be enough for applicants for lower level positions,
while applicants for managerial jobs might be interviewed by a number of people.
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Steps in Selecting Process


57

Reception:

A company is known by the people it employs. In order to attract people with


talents, skills and experience a company has to create a favourable impression on the
applicants’ right from the stage of reception. Whoever meets the applicant initially should
be tactful and able to extend help in a friendly and courteous way. Employment
possibilities must be presented honestly and clearly. If no jobs are available at that point of
time, the applicant may be asked to call back the personnel department after some time.

Screening Interview:

A preliminary interview is generally planned by large organizations to cut the cost of


selection by allowing only eligible candidates to go through the further stages in selection.
A junior executive from the Personnel Department may elicit responses from the
applicants on important items determining the suitability of an applicant for a job such as
age, education, experience, pay expectations, aptitude, location, choice etc. this ‘courtesy
interview’ as it is often called helps the department screen out obvious misfits. If the
department finds the candidate suitable, a prescribed application form is given to the
applicants to fill and submit.

Application Blank:

Application blank or form is one of the most common methods used to collect
information on the various aspects of the applicants’ academic, social, demographic, work
related background and references. It is a brief history sheet of employee’s background,
usually containing the following things:

Personal data (address, sex, telephone number)


Marital data
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Educational data
Employment Experience
Extra-curricular activities
References and Recommendations

Selection Testing

In this section let’ examine the selection test or the employment test that attempts
to asses intelligence, abilities, personality trait, performance simulation tests including
work sampling and the tests administered at assessment centres- followed by a discussion
about the polygraph test, graphology and integrity test.

A test is a standardized, objective measure of a person’s behaviours, performance or


attitude. It is standardized because the way the tests is carried out, the environment in
which the test is administered and the way the individual scores are calculated- are
uniformly applied. It is objective in that it tries to measure individual differences in a
scientific way giving very little room for individual bias and interpretation.
Over the years employment tests have not only gained importance but also a certain
amount of inevitability in employment decisions. Since they try to objectively determine
how well an applicant meets the job requirement, most companies do not hesitate to invest
their time and money in selection testing in a big way. Some of the commonly used
employment tests are:
Intelligence tests
Aptitude tests
Personality tests
Achievement tests
Miscellaneous tests such as graphology, polygraphy and honesty tests.
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Intelligence Tests:

These are mental ability tests. They measure the incumbent’s learning ability and
the ability to understand instructions and make judgements. The basic objective of such
test is to pick up employees who are alert and quick at learning things so that they can be
offered adequate training to improve their skills for the benefit of the organization. These
tests measure several abilities such as memory, vocabulary, verbal fluency, numerical
ability, perception etc. Eg. Standford –Binet Test, Binet-Simon Test, The Wechsler Adult
Intelligence Scale are example of standard intelligence test.

Aptitude Test:

Aptitude test measure an individual’s potential to learn certain skills- clerical,


mechanical, mathematical, etc. These tests indicate whether or not an individual has the
capabilities to learn a given job quickly and efficiently. In order to recruit efficient office
staff, aptitude tests are necessary. An aptitude tests is always administered in combination
with other tests like intelligence and personality tests as it does not measure on-the-job-
motivation.

Personality Test:

Of all test required for selection the personality tests have generated a lot of heat
and controversy. The definition of personality, methods of measuring personality factors
and the relationship between personality factors and actual job criteria has been the
subject of much discussion. Researchers have also questioned whether applicants answer
all the items truthfully or whether they try to respond in a socially desirable manner.
Regardless of these objections, many people still consider personality as an important
component of job success.
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Achievement Tests:

These are designed to measure what the applicant can do on the job currently, i.e.,
whether the testee actually knows what he or she claims to know. A typing test tests shows
the typing proficiency, a short hand tests measures the testee ability to take dictation and
transcribe, etc.

Simulation Tests:

Simulation exercise is a tests which duplicate many of the activities and problems an
employee faces while at work. Such exercises are commonly used while hiring managers
at various levels in an organisation. To asses the potential of a candidate for managerial
positions assessment centres are commonly used.

Assessment Centre:

An assessment centre is an extended work sample. It uses procedures that incorporate


group and individual exercises. These exercises are designed to stimulate the type of work
which the candidate will be expected to do. Initially a small batch of applicants comes to
the assessment centre (a separate room). Their performance in the situational exercise is
observed and evaluated by a team of 6-8 assessors. The assessors’ judgement on each
exercise are complied and combined to have a summary rating for each candidate being
assessed.

Graphology Test:
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Graphology involves using a trained evaluator to examine the lines, loops, hooks,
stokes, curves and flourishes in a person’s handwriting to assess the person’s personality
and emotional make-up. The recruiting company, may, for example, ask the applicants to
complete the application forms and write about why they want a job. These samples may
be finally sent to graphologist for analysis and the result may be put use while selecting a
person. The use of graphology, however, is dependent on the training and expertise of the
person doing the analysis. In the actual practice, questions of validity and just plain
skepticism have limited in use.

Polygraph (Lie-Detector) tests:

The polygraph records physical changes in the body as the tests subject answers a
series of questions. It records fluctuations in respiration, blood pressure and perspiration
on a moving roll of graph paper. The polygraph operator forms a judgement as to whether
the subject’s response was truthful or deceptive by examining the biological movements
recorded on the paper. Critic, however, questions the appropriateness of the polygraphs in
establishing the truth about an applicant’s behaviour. The fact is that the polygraph
records the biological reaction in response to stress and does not record lying or even
conditions necessarily accompanying lying. Is it possible to prove that the responses
recorded by the polygraph occur only because a lie has been told? What about those
situations in which a person lies without guilt (pathological liar) or lies believing the
responses to be true? The fact of the matter is that polygraphs are neither reliable nor
valid. Since they invade the privacy of those tested, many applicants vehemently oppose
the use of polygraph as a selection tool.

Integrity Test:

These are designed to measure employee’s honestly to predict those who are more likely
to steal from an employer or otherwise act in a manner unacceptable to the organization.
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The applicants who take these tests are expected to answer several ‘yes’ or ‘no’ type
questions.
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Typical Integrity Questions:

Typical Integrity Questions Yes No

Have you ever told a lie?


Do you report to your boss if you know of another
employee stealing from the store?
Do you carry office stationary back to your home for
occasional use?
Do you mark attendance for your colleagues also?

Often these tests contain questions that repeat themselves in some way and the
evaluator then examines the consistency in responses. Companies that have used integrity
tests have reported success in tracking employees who indulge in ‘theft’. However, these
tests ultimately suffer from the same weakness as polygraph and graphology test.

Tests as Selection Tool:

Test are useful selection devices in that they unover qualifications and talents that
can’t be detected otherwise. They can be used to predict how well one would perform if
one is hired, why one behaves the way one does, what situational factors influence
employee productivity, etc.
Tests also provide unbiased information that can be put to scientific and statistical
analysis.
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However, tests suffer from sizeable errors of estimate. Most psychological tests
also have one common weakness, that is, we can’t use scales which have a know zero
point and equal intervals. An intelligence test, for example starts at an arbitrary point,
where a person may not be able to answer question properly. This does not mean that the
person is totally lacking in intelligence. Likewise, a person who is able to answer all the
10 questions correctly cannot be called twice as intelligent as the one who was able to
answer only 5.

If the test has commenced at some other point, where there easier questions, their
score might have been different. Test also fails to elicit truthful responses from testees. To
compound the problem further, test results are interpreted in a subjective was by testers
and unless these testers do their homework well, the results may not be reliable.

Standards for Selection Tests :

To be useful as predictive and diagnostic selection tools, test must satisfy certain
basic requirements:

Reliability:
Test scores should not vary widely under repeated conditions. If a test is administered to
the same individual repeatedly, he should get approximately identical score. Reliability is
the confidence that an indicator will measure the same thing every time.

Validity:
Validity is the extent to which an instrument measures what it intends to measure. In a
typing test validity measures a typist’s speed and accuracy. To determine whether it really
measures the speed and accuracy of a typist is to demonstrate its validity. The question if
determining the validity of a selection test, thus, has a lot to do with later performance on
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the job.

Qualified People:

Test requires a high level of professional skills in their administration and interpretation.
Professional technicians are needed for skilled judgmental interpretations of test scores.

Preparation:

A test should be well prepared. It should be easy to understand and simple to administer.

Suitability:

A test must fit the nature of the group on which it is applied. A written test comprising
difficult words would be fruitless when it is administered on less educated workers.

Usefulness:

Exclusive reliance on any single test should be avoided, since the results in such a case
are likely to be criticized. To be useful, it is always better to use a battery of test.

Standardization:

Norms for finalizing test scores should be established. There must be prescribed methods
and procedures for administering the test and for scoring or interpreting it.
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Selection Practices
The following throws light on how the global giants use selection testing as a basis for
picking up the right candidates to fill up the vacancies arising internally:

Siemens India:

It uses extensive psychometric instruments to evaluate short-listed candidates. The


company uses occupational personality questionnaire to understand the candidate’s
personal attributes and occupational testing to measure competencies.

LG Electronics India:

LG Electronics uses 3 psychometric tests to measure a person’s ability as a team


player, to check personality types and to find a person’s responsiveness and assertiveness.

Arthur Anderson:

While evaluating candidates, the company conducts critical behaviour interviewing which
evaluates the suitability of the candidate for the position, largely based on his past
experience and credentials.

PepsiCo India:
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The Company uses India as a global recruitment resource. To select professionals for
global careers with it, the company uses a competency- based interviewing technique that
looks at the candidate’s abilities in terms of strategizing, lateral thinking, problem solving,
managing the environment. This apart, Pepsi insists that to succeed in a global posting,
these individuals possess strong functional knowledge and come from a cosmopolitan
background.

Selection Interview

Interview is the oral examination of candidates for employment. This is the most essential
step in the selection process. In this step the interviewer matches the information obtained
about the candidates through various means to the job requirements and to the information
obtained through his own observations during the interview. Interview gives the recruiter
an opportunity –
To size up the candidate personally;
To ask question that are not covered in the tests;
To make judgments on candidates enthusiasm and intelligence;
To assess subjective aspects of the candidate – facial expressions, appearance,
nervousness and so forth;
To give facts to the candidates regarding the company, its policies, etc. and promote
goodwill towards the company.

Types of interviews

Several types of interviews are commonly used depending on the nature and
importance of the position to be filled within an organization.

In a NON-DIRECTIVE INTERVIEW the recruiter asks questions as they come to


mind. There is no specific format to be followed.
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In a PATTERNED INTERVIEW, the employer follows a pre-determined


sequence of questions. Here the interviewee is given a special form containing questions
regarding his technical competence, personality traits, attitudes, motivation, etc.
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In a STRUCTURED OR SITUATIONAL INTERVIEW, there are fixed job


related questions that are presented to each applicant.

In a PANEL INTERVIEW several interviewers question and seek answers from


one applicant. The panel members can ask new and incisive questions based on their
expertise and experience and elicit deeper and more meaningful expertise from
candidates.

Interviews can also be designed to create a difficult environment where the


applicant’s confidence level and the ability to stand erect in difficult situations are put to
test. These are referred to as the STRESS INTERVIEW. This is basically an interview in
which the applicant is made uncomfortable by a series of, often, rude, annoying or
embarrassing questions.

In the final category, there is the APPRAISAL INTERVIEW, where a superior


and subordinate sit together after the performance appraisal to discuss the subordinate’s
rating and possible remedial actions.
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Steps in interview process

Interview is an art. It demands a positive frame of mind on part of the interviewers.


Interviewers must be treated properly so as to leave a good impression about the company
in their minds. HR experts have identified certain steps to be followed while conducting
interviews:

Preparation:

Establishing the objective of the interview


Receiving the candidates application and resume
Keeping tests score ready, along with interview assessment forms
Selecting the interview method to be followed
Choosing the panel of experts who would interview the candidates
Identifying proper room for environment.

Reception:

The candidate should be properly received and led into the interview room. Start
the interview on time.

Information exchange:

State the purpose of the interview, how the qualifications are going to be matched
with skills needed to handle the job.
Begin with open ended questions where the candidate gets enough freedom to express
himself.
Focus on the applicant’s education, training, work experience, etc. Find
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unexplained gaps in applicants past work or college record and elicit facts that are not
mentioned in the resume.

Evaluation:

Evaluation is done on basis of answers and justification given by the applicant in


the interview.

Physical examination:

After the selection decision and before the job offer is made, the candidate is
required to undergo a physical fitness test. A job offer is often contingent upon the
candidate being declared fit after the physical examination.

Medical examination:

Certain jobs require physical qualities like clear vision, perfect hearing, unusual
stamina, tolerance of hard working conditions, clear tone, etc. Medical examination
reveals whether or not a candidate possesses these qualities.

Reference Checks;

Once the interview and medical examination of the candidate is over, the
personnel department will engage in checking references. Candidates are required to give
the names of 2 or 3 references in their application forms. These references may be from
the individuals who are familiar with the candidate’s academic achievements or from the
applicant’s previous employer, who is well versed with the applicant’s job performance
and sometimes from the co-workers. In case the reference check is from the previous
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employer, information in the following areas may be obtained.

They are job title, job description, period of employment, pay and allowances,
gross emoluments, benefits provided, rate of absence, willingness of previous employer to
employ the candidate again, etc. Further, information regarding candidate’s regularity at
work, character, progress, etc. can be obtained. Often a telephone call is much quicker.
The method of mail query provides detailed information about the candidate’s
performance, character and behavior.

However, a personal visit is superior to the mail or telephone methods and is used
where it is highly essential to get a detailed, first hand information which can also be
secured by observation. Reference checks are taken as a matter of routine and treated
casually or omitted entirely in many organizations. But a good reference check, when used
sincerely, will fetch useful and reliable information to the organization.

Hiring decision:

The line manager has to make the final decision now – whether to select or reject a
candidate after soliciting the required information through different techniques discussed
earlier. The line manager has to take adequate care in taking the final decision because of
economic, behavioral and social implications of the selection decisions. A careless
decision of rejecting a candidate would impair the morale of the people and they suspect
the selection procedure and the very basis of selection in a particular organization.
A true understanding between line managers and personnel managers should be
established so as to facilitate good selection decisions. After taking the final decision, the
organization has to intimate this decision to the successful as well as unsuccessful
candidates. The organization sends the appointment order to the successful candidates
either immediately or after sometime depending upon its time schedule.
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74

Interviewing Mistakes:

Favors applicants who share his own attitudes;

Not be asking right questions and hence not getting relevant responses;

Resort to snap judgments, making a decision as to the applicant’s suitability in the first
few minutes of the interview. Too often interviewers form on early impression and spend
the balance of interview looking for evidence to support it;

May have been influenced by ‘cultural noise.’ To get the job, the applicants try to get by
the interviewer. If they reveal wrong things about themselves, they may not get the job, so
they try to give the interviewer responses that are socially acceptable, but not very
revealing. These types of responses are known as cultural noise – responses the applicant
believes are socially acceptable rather than facts;

May have allowed him to be unduly influenced by associating a particular personality trait
with a person’s origin or cultural background and that kind of stereotyping/ generalizing
ultimately determining the score of a candidate. For example, he may feel that candidate
from Bihar may find it difficult to read, write and speak English language and hence not
select them at all;

May conclude that a poorly dressed candidate is not intelligent, attractive females are
good for public dealings, etc. This is known as ‘Halo Effect’ where a single important trait
of a candidate affects the judgment of the rather. The halo effect is present if an
interviewer allows a candidate’s accomplishments in athletics overshadow other aspects
and leads the interviewer to like the applicant because ‘athletes make good sales people’;

Have been influenced more by unfavorable than favorable information about or from the
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candidate.Unfavorable information is given roughly twice the weight of favorable


information.

Barriers to effective selection

The main objective of selection is to hire people having competence and


commitment. This objective is often defeated because of certain barriers. The
impediments which check effectiveness of selection are perception, fairness, validity,
reliability, and pressure.

Perception:

Our inability to understand others accurately is probably the most fundamental


barrier to selecting right candidate. Selection demands an individual or a group to assess
and compare the respective competencies of others, with the aim of choosing the right
persons for the jobs. But our views are highly personalized. We all perceive the world
differently. Our limited perceptual ability is obviously a stumbling block to the objective
and rational selection of people.

Fairness:

Fairness in selection requires that no individual should be discriminated against on


the basis of religion, region, race or gender. But the low number of women and other less
privileged sections of society in the middle and senior management positions and open
discrimination on the basis of age in job advertisements and in the selection process would
suggest that all the efforts to minimize inequity have not been very effective.
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Validity:

Validity, as explained earlier, is a test that helps predict job performance of an


incumbent. A test that has been validated can differentiate between the employees who
can perform well and those who will not. However, a validated test does not predict job
success accurately. It can only increase possibility of success.

Reliability:

A reliable method is one which will produce consistent results when repeated in
similar situations. Like a validated test, a reliable test may fall to predict job performance
with precision.

Pressure:

Pressure is brought on the selectors by politicians, bureaucrats, relatives, friends,


and peers to select particular candidate. Candidates selected because of compulsions are
obviously not the right ones. Appointments to public sector undertakings generally take
place under such pressure.
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Difference between recruitment n selection

Basis Recruitment Selection

Meaning It is an activity of establishing It is a process of picking up more


contact between employers and competent and suitable
applicants. employees.

Objective It encourages large number of It attempts at rejecting unsuitable


Candidates for a job. candidates.

Process It is a simple process. It is a complicated process.

Hurdles The candidates have not to cross Many hurdles have to be crossed.
over many hurdles.

Approach It is a positive approach. It is a negative approach.

Sequence It precedes selection. It follows recruitment.

Economy It is an economical method. It is an expensive method.

Time Less time is required. More time is required.


Consuming
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LITERATURE REVIEW

Recruitment and selection is one of the most generally discussed in the study of Human
Resource. The literature on Recruitment and Selection is not quite vast.
To gain a deeper understanding about the phenomenon of high attrition and its cause,
literature particularly journals, reference books were studied in detail. The various
websites were also helpful in gaining a large view of attrition among employees and the
ways to reduce such high rate. The findings would not have been realistic without the
feedback of employees of OIPL. For this the employee’s feedback was sought.

OBJECTIVE OF THE STUDY

This study reports the findings on Recruitment and Selection Process at the OSRAM
India Private Limited.
The Study is intended to achieve the following objectives:
1. To find out the current practices adopted for the Recruitment and Selection of the
potential candidates.
2. To find the reasons of the high attrition rate.
3. To find the ways to reduce high attrition rate.

SCOPE & LIMITATIONS

While surveying at OIPL- HR Manager was quite helpful. I always sought him help even
when I had to get the questionnaires filled from the employees. However I felt difficulty
as most of the respondents were reluctant to fill the questionnaire.
Most of the respondents were afraid of getting fired if they answered anything wrong
about the company and its policy. This was a big limitation. It was tried to do a survey on
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80 employees but only 58 of them came up with their response. The Future research may
be done on large number of employees to get a better result.

Research methodology

This study focuses on the Recruitment and Selection at Osram India Private Limited as a
matter of interest. It was ensured that there was a good mix of respondents- males,
females; employees of various designation; and temporary and permanent employees. It is
the specification method & procedure for collection the needed information.
The selection of research design depend the objective of the research.

Research design is of three types


Exploratory
Descriptive
Casual or experiment

Primary Data
The Study is based on the primary data collected from the employees at Osram IPL
through the assistance of the questionnaire. The survey was conducted with 58
respondents. However, the use of some secondary data were taken help of to gain a better
understanding of the Recruitment and Selection process, the attrition and the reasons why
employees leave. For this purpose the web pages and the journals were sought.

Sources of Data

For conducting the survey the data were collected from the employees of Osram IPL .To
make the research complete, it is very important to have the necessary & useful data.
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Sometimes data can be available readying one form or the other & sometimes data has to
be collected A researcher can tap sources to heads:-
Internal sources
External sources

Internal sources
It is the companies own record registered document etc. a researcher can use these to
collect internal information. To get this information about the company, the company
profile, industry profile can be used.

External source
All the other source of information is external source of data.
Secondary data
Primary data
In this project mainly primary data from internal sources is used to make results authentic.
It is collected by personal administration of the questionnaire.

Sampling Techniques

The type of enquiry you want to have and the nature of data that you want to collect
Fundamentally determines the technique or method of selecting a sample. The procedure
of selecting a sample may be broadly classified under the following two heads:
· Probability Sampling Methods
· Non-Probability Sampling Methods

PROBABILITY SAMPLING:
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A sampling procedure in which each element of the population has a fixed probabilistic
chance of being selected for the sample is called probability sampiling.

Simple Random Sampling :

It is the technique of drawing a sample in such a way that each unit of the population has
an equal and independent chance of being included in the sample. In this method an equal
probability of selection is assigned to each unit of population at the first draw. It also
implies an equal probability of selecting in the subsequent draws. Thus in simple random
sample from a population of size N, the probability of drawing any unit in the first draw is
1/N. The probability of drawing a second unit in the second draw is 1/N-1 . The
probability of selecting a specified unit of population at any given draw is equal to the
probability of its being selected at the. The two basic procedures to are:

1 The lottery method, e.g. picking numbers out of a hat or bag


2 The use of a table of random numbers.

Merits

1. Since samples units are selected at random providing equal chance to each and every
unit of population to be selected, the element of subjectivity or personal bias is completely
eliminated. Therefore, we can say that simple random sample is more representative of
population than purposive or judgment sampling.

2. You can ascertain the efficiency of the estimates of the parameters by considering the
sampling distribution of the statistic (estimates)
For example: One measure of calculating precision is sample size. Sample mean becomes
an unbiased mean of population mean or a more efficient estimate of population mean as
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sample size increases.

Limitations

1. The selection of simple random sample requires an up- to -date frame of population
from which samples are to be drawn. Although it is impossible to have knowledge about
each and every unit of population if population happens to be very large. This restricts the
use of simple random sample.

2. A simple random sample may result in the selection of the sampling units, which are
widely spread geographically and in such a case the administrative cost of collecting the
data may be high in terms of time and money.

3. Sometime, a simple random sample might give most nonrandom looking results, which
I will explain with the help of an illustration next.

4. For a given precision, simple random sample usually requires larger sample size as
compared to stratified random sampling which we will be studying next.

Non Probability Sampling

Non-probability methods are all sampling procedures in which the units that make up the
samples are collected with no specific probability structure in mind. This might include,
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for
example, the following:
the units are self-selected; that is, the sample is made up of `volunteers'
the units are the most easily accessible (in geographical terms)

Judgment Sampling

It is that sample in which the selection criteria are based upon your (researcher’s) personal
judgment that the members of the sample are representative of the population under study.
It is used for most test markets and many product tests conducted in shopping malls. If
personal biases are avoided, then the relevant experience and the acquaintance of the
investigator with the population may help to choose a relatively representative sample
from the population. It is not possible to make an estimate of sampling error as we cannot
determine how precise our sample estimates are. Judgment sampling is used in a number
of cases, some of which are:

1. Suppose we have a panel of experts to decide about the launching of a new product in
the next year. If for some reason or the other, a member drops out, from the panel, the
chairman of the panel may suggest the name of another person whom he thinks has the
same expertise and experience to be a member of the said panel. This new member was
chosen deliberately - a case of Judgment sampling.

2. The method could be used in a study involving the performance of salesmen. The
salesmen could be grouped into top-grade and low-grade performer according to certain
specified qualities. Having done so, the sales manager may indicate who in his opinion,
would fall into which category.
Needless to mention this is a biased method. However in the absence of any objective
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data, one might have to resort to this type of sampling.

Advantages

1. Low cost.
2. Less time consuming than most techniques.
3. Convenient to use.

Limitations

1. No direct generalizations to a specified population.


2. Results entirely dependent on the judgment of the researcher.

Sample Design

When data is to be collected from each member of population of interest, it is known as


census survey. If on the other hand data are to be collected from only some member of the
population, it is known as sample survey.
Sample plan
Judgment sampling
Sample size
58 % of staff members

Data sources

The methodology of study is based on secondary information as well as primary


information i.e. staff member of OSRAM INDIA PVT. LTD. The work of several authors
85

from the various libraries has been instituted, consulted & used to arrive at conclusion.

Methodology

The methodology used essentially involved collection of information from executives of


Osram IPL, on the Recruitment and Selection Process through questionnaire, analysis of
the collected information using relevant statistical analysis, and interpretation of results.
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DATA ANALYSIS

1. What was your mode of recruitment?

Employee Referral: 21
Web Portal: 04
Placement Agency: 12
Campus Placement: 01
Other/Walk-ins: 20

Employee Referral

Web Portal

Placement
Agencies
Campus
Placement
Other/ Walk Ins

Interpretation:-

Most of the employees were recruited by the employee referral but it is also worth notable
that almost equal employees were recruited through other methods that include the
candidate’s self- initiative or walk-ins.

Employee referral
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We b Portal

Placement Agency

Campus Placement

Others

2. What was the method of your selection?

Written test

Medical Test

Interview: 57

Other: 01

Written Test
Medical Test
Interview
Other

Interpretation:-

The question was aimed to find the efficient method on which the company relied upon
for the selection of the potential applicants. It was observed that Personal Interview is
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extensively used for selection of the candidates. As 57 out of 58 respondents were selected
through interview. It is also observed that the reference checks were not used for the final
round of selection.

Interview

Other

3. Are you satisfied with your present job at OIPL?


Yes: 49
No: 09

Yes
No

Interpretation:-

This question is somewhat tricky as it would find the satisfaction of the respondent
through following questions. Many of them did not want to show their dissatisfaction
towards their employer as they feared of getting fired. However 84% of the respondents
were satisfied.
89

Ye s

No

4. How do you find your package (salary + incentive) at OIPL?

Satisfied: 31
Unsatisfied: 27

Satisfied
Unsatisfied

Interpretation:-

Out of the 58 respondents 53% were satisfied with their salary package. There is only a
minor difference of 4 employees. The unsatisfaction level towards the salary is 47%.This
shows that pay is a major cause of leaving the OIPL.

Satisfied

Unsatisfied
90

5. Are you able to overcome the stress at work and maintain balance
between work and life?
Yes: 52
No: 06

Interpretation:-

52 out of the 58 respondents felt comfortable and had no problem with the workload.
They could maintain the balance between work and life.

Ye s

No

6. How often do you receive appraisal/ get motivation from your


employer?
Very Often: 22
Sometimes: 34
Never: 02
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Interpretation:-

The above data indicates that a major lot of employees i.e., 59% get motivation only
sometimes. This again emphasizes on bad reward policy of the company.

Very Often

Sometimes

Never

7. Do you find career growth opportunities at OIPL?


Yes: 42
No: 16
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Yes
No

Interpretation:-

The above data collected shows that 72% of the respondents feel there is a career growth
opportunities. The respondents find suitable growth opportunities at OIPL.

Ye s

No

8. What is your level of trust & confidence in senior boss?


High: 35
Moderate: 23
Low
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Interpretation:-
60% percent of the respondents have faith and trust in their seniors/bosses. While 40%
have less confidence. This fact indicates that the company needs to gain confidence of the
employees through various ways.

High

Moderate

Low

9. Do you find yourself valued and recognized at OIPL?

Yes: 52
No: 06
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Interpretation:-

A major portion of the respondents i.e., 90% of them feel valued and recognized at OIPL.
This is good sign regarding the recognition of the employees at OIPL.

Ye s

No

10. How often do you receive appreciation on your excellent


Performance?
Very Often: 23
Sometimes: 33
Never: 02
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Interpretation:-

The major problem felt at OIPL is that the employees do not get enough appreciation
(Monetary / Non-Monetary) from their employer. The above data indicates only 40% of
the respondents get appreciation while 57% of them are not appreciated on their best
performance.

Very Often

Sometimes

Never

11. Do you find pressure at work to perform better?


Yes: 37
No: 21
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Interpretation:-

Another major setback for the employees or the main reason for leaving is the pressure of
work that the employees feel. It is worth to be noted that the Telecallers and the Marketing
Executives have to achieve the target of Rs. 80,000.00 pm (as a score). This creates a
stress to them and thereby hampers their decision of staying with the company.

Ye s

No
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FINDINGS

Job Quality and Organizational support are more important to retention than earnings or
benefits.

• Career Progress and Development- promotion, mobility, and pay growth have the
biggest combined effect on employees leaving.

• Of all the drivers of attrition Pay levels have the smallest impact.

• Past Stability- the more time the people had spent in their previous job, the greater
the chances that they would stay long in the present assignment/job.

• Candidates who have been referred by the employees are more likely to stay long
than those who came through other channels like wanted ads, etc.

• Supervisory/Management support and Co-worker relations influence employee


decision to stay-in.

• An individual’s relationship with his or her manager has the greatest impact on job
satisfaction thereby influencing his/her decision to stay with the organization.
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RECOMMENDATIONS

The organization should develop a suitable formal written request such as a requisition
form or memo. The form should include some detail of the candidate profile required like;
Age
Min to Max experience
Qualification
Competencies
Brief of Job description
• The organization should use an employment agency for the recruitment of low
skilled, temporary staff.

 The organization should advertise for medium to high skilled vacancy positions in the
metropolitan daily newspaper.

 The organization should advertise all vacant positions internally in the first instance.
As this will help people to have job enrichment and job rotation.

 A framework for Internal Job posting should be developed to give opportunity to


internal talent pool.

 The organization should use structured interview assessment sheet for all positions
classed as medium to high skilled.

 More emphasis should be laid on employee referral program to reduce the hiring cost.

• Current referral program should be made more attractive for employees to encourage
them to refer potential candidates.
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 Reference check format should be developed to ensure genuine candidates.

 Structured interview questionnaire should contain mix of both technical and creative
thinking. Certain questions based on specific competencies identified for the position
should be included.

 Developing assessment sheet as per job profile or grades with assessment grading on
the requisite competencies related to profile or grades.

 Ensure comments of each interviewee clearly mentioned on the assessment sheet for
the next round of interview

 Certain psychological tools like Thomas profiling should be used for high profile
selection.

 Various style of interview like stress interview, situational interview etc should be
used in combination rather than just following one pure style.

 Asking candidates to bring along supporting of their achievements or extra ordinary


performances.
 Assessment centre should be developed with help of external agency expertise in same
to have an effective process of internal recruitment.

 Each panel member should go training for effective interviewing skill to reduce the
gap between right and ideal candidate.

 Analysis of the fresh recruitment should be done in order to identify the diversity in
the work force and to formulate a balanced approach towards future recruitment.
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 Aptitude test should be introduced for entry level in order to assess on numerical
ability, logical reasoning and data interpretation.

 Data base should be maintained for both selected, rejected candidate in order to avoid
any reappearance of rejected candidate.

 The organization should develop and implements employee orientation program with
emphasis on work life balance, learning aspects and performance oriented work
culture.

The organization should ensures that the orientation program is carried out with new
employees on their first day, where possible or, alternatively, in the first week. No
candidate should start his profile without going through the complete Induction.

HR Practices to retain Employees

1. Introduce career Management program

The company should introduce the career management tool or program that would help
the employees to find growth opportunities in the company by identifying those jobs that
match their skills sets.

2. Initiate Leadership Development

The company should invest in leadership development program. The program may
include business case development, strategic projects and team building, change
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management, and in-depth discussions with business leaders from OIPL and other
companies.

3. Training of Employees

The company can avoid the attrition by improving retention strategy by placing more time
and effort in the selection and training of employees and aligned the training to support
the organization’s mission – goal of providing excellent customer service. Today when
customers are happy, they express their appreciation to OIPL employees who are proud of
being on the OIPL team.

4. Improve Retention Policy

The retention policy needs to be enduring, long-term oriented and integrated with other
HRM Policies. Organizations should take all steps to collect data and their retention plans
should be based on this data.

5. Good Working Environment

The company should develop the right kind of work environment and organizational
culture that rewards performance, creativity and initiative and, most importantly, creates
opportunities for employees to advance in their careers. Any initiative to retain the
employees would succeed only when the overall organization climate is conducive for
that.
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6. Recognition and Reward

The employees should be recognized and rewarded for a job well done by the employees
and this act would instill in them a sense of pride and satisfaction in their own work.

Conclusion

Recruitment is essential to effective Human Resources Management. It is the heart of the


whole HR systems in the organization. The effectiveness of many other HR activities,
such as selection and training depends largely on the quality of new employees attracted
through the recruitment the recruitment process.

Policies should always be reviewed as these are affected by the changing environment.
Management should get specific training on the process of recruitment to increase their
awareness on the dangers of wrong placements.

HR practitioners should be on the guard against all the malpractices and advocate for
professional approach through out the system. The HR should indicate disagreement in the
event that biasing toward certain candidates is creeping in and point out the repercussions
that may follow in terms of performance and motivation.

It is the authors conviction that, the recruitment process should be seen in the context of
ongoing staff planning that is linked to the strategic and financial planning of the
organization.

Recruitment and selection process are important aspects in staffing and the decisions
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regarding them have to be taken keeping in view the fit between the employee and the
organization. The organization has to decide whether to hire temporary or permanent
employees or recruit from the internal workforce or select through external sources. It’s
important for an organization to lay equal importance to both the internal and external
sources in reference to organization benefit. As each source type comes along with its own
pros and cons. A healthy mix is recommended to strike a balance between internal
employee carrier development and infusion of new blood and diversity in the system.

An organization needs to have well defined process to communicate the request for vacant
and new position mentioning all the aspect required to hire a candidate. The organization
needs to advertise all positions internally, prior to searching outside the company for the
most suitable applicant. Hence a structured process needs to be followed announcing the
position for all the eligible employees.

In order to make right decision for internal promotion a systematic approach needs to be
developed. As the next level decision should not only be based on his performance in
present profile but also his potential for future role. This systematic and standardized
approach for evaluating various aspects using multiple inputs is called ASSESSMENT
CENTRE.

In case an organization decides to resource the vacant position through an external source
it needs to analyze the various options in term of cost, time, talent pool etc.

Interview is one of the most important selection methods. It’s an attempt to satisfy an
organization in respect to intellectual and social requirements necessary to contribute to
their betterment.

An organization needs to have a structured process on interview in order to match the right
applicant with the right job. There can not be fixed way of interview as it needs too be
altered as per the job requirement. Success of an interview depends establishing the right
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mix in order to

Directive/Structured Interview:

When large number of candidates needs to be and one requires consistent information on
certain parameters this format can be of great help.

Non-Directive/Unstructured interview:

There is no real set format and begins with broad question such as "Tell me about
yourself." It is an opportunity given to candidate to demonstrate their knowledge, skills,
and abilities in reference to job and organization.

Stress:

This type of interview is intended to be confrontational in style and is aimed at unsettling


the candidate. In order to put potential employees into stressful and difficult situations to
evaluate how they react and work under pressure. By seeing how you will react when
placed in a challenging or uncomfortable situation, the interviewers can get a strong sense
of your stress and conflict-management style as well as your ability to deal with
uncertainty.

Behavioral:

This interview style is based on the assumption that experiences and behaviors shown by
a candidate in previous job will be same show in future assignments. Thus an attempt is
made to predict the applicant's potential contributions and success within the organization.
The interviewer clearly identifies job-related experiences, behaviors, knowledge, skills
and abilities that the company has decided are desirable in a particular position, and then
the interviewer asks you to provide clear examples of how you demonstrate these skills
and abilities. These include self-confidence, teamwork, professionalism, critical thinking,
and time management.
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In order to enhance the interview effectiveness psychological tools like Thomas profiling,
MBTI, and personality etc. test should also be used in addition to personal interview. As
the combination of both the tools can help us in following ways:

It provides objective and accurate behavioral based data in order to make informed
decision.

The range of data gathered is much more in the same time along with higher level of
accuracy.

The information from these test are scientifically more consistent.

Following topics can very well analyzed with the combination of both type of tools:

General intellectual level and problem-solving style

Emotional maturity and personal

Insight Interpersonal style

Management style or selling ability

Decision-making and organizational skills

Leadership competencies

Ambition and aspirations

A structured interview assessment sheet needs to be used to capture all the required
information related to the job in a structured manner. It helps in gathering and re
verification of information gathered at various levels in a structured manner. A candidate
can not face same interview related question at various level.

Once the candidate is finalized from the departmental and HR level his credentials needs
to be verified. An organization needs to establish an process for same to decide for pre
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employment verification or post employment screening. In case an organization decides


for post screening it needs to have some information for initial authentication.
Employment verification format needs to be developed to authenticate data captured
through interview.

A job description along with offer letter should be handed over to the finalized candidate
for the complete understanding of the profile.

Employee orientation is the process to welcome the new joinee and make him should be
made special and every detail should be taken care to make it a special day. Orientation is
the introductory stage which familiarizes the new employee to his/her new working
environment by introducing aspects of the company such as:
Company mission
Quality and value statements
Organization chart
Business objectives
Management
Workplace facilities
Work rules, regulations and policies
Employee benefits and incentives

Induction is the process of initiation into a new job or company by which a new employee
learns about and becomes part of an organization. Induction ranges from formal
orientation programs to informal familiarization and social events. Its overall purpose is to
provide necessary information, facilities and motivation to assist the employee to adjust to
the new work environment to learn the ropes and become productive on the job. It aims to
help him/her to understand company's expectations and convey what he or she can expect
from the job and the company. It encourages the development of loyalty and enthusiasm
towards the company and gain employee commitment.

A 360° Approach to Orientation can be focused on organization’s history, its mission and
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vision statements, values, environment, policies, business strategy, career development


initiatives, or employee benefits.

In the last few years, the job market has undergone some fundamental changes in terms of
technologies, sources of recruitment, competition in the market etc. In an already
saturated job market, where the practices like poaching and raiding are gaining
momentum.

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
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professionals. Therefore, reviewing staffing needs and prioritizing the tasks to meet the changes
in the market has become a challenge for the recruitment professionals. There has been a
tremendous change in recruitment trend as compared to previous time.

Some of the major trends are:

OUTSOURCING

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 or different industry; the organization might be a competitor
in the industry. A 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. But it is seen as
an unethical practice and not openly talked about. Indian software and the retail sector are the
sectors 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.
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E-RECRUITMENT

Many big organizations use Internet as a source of recruitment. E-recruitment is the use
of technology to assist the recruitment process. They advertise job vacancies through
worldwide web. The job seekers send their applications or curriculum vitae i.e. CV
through e mail using the Internet. Alternatively job seekers place their CV’s in worldwide
web, which can be drawn by prospective employees depending upon their requirements.
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BIBLIOGRAPHY

1) www.osram.com

2) www.osramindia.com

3) www.wikipedia.org

4) www.google.com
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Annexure

Questionnaire

A list of questions was prepared for the questionnaire to be filled. It included 12questions.
A mix of direct and indirect questions was present. It was a structured questionnaire that
was pre-tested to ensure clarity of the questions asked and that the respondents understood
the questions.

RECRUITMENT PROCESS SURVEY

Instruction: Tick mark (v) wherever required.


Name________________________________________
Designation___________________________________ Working in Osram IPL since__ __
__ __ __ __ __ __ __ __ __ Contact No___________________________________

[1]. How Osram IPL is involved in Recruitment and Selection process?


____________________________________________________________
_____________________________________________________________
_____________________________________________________________

[2]. Which level of employees do you look for? Good Opportunities


Outside
Junior
Middle
Senior
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[3]. What are the sources used for recruitment in Osram IPL?
Direct Recruitment
Employee’s reference
Campus Recruitment
Placement Agency
Web Portals

[4]. What are the important things you look while screening resumes of candidates?
Qualification
Experience
Communication skill
Attitude
Presentation Skill
Others

[5]. What is the reliable selection process for the candidates?


________________________________________________________
________________________________________________________

[6]. What is the vacancy ratio i.e., for 10 candidates 100 resumes are
sourced (10:100)?
________________________________________________________

[7]. What kind of staffing service do you provide?


Contract
Temporary
Permanent
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[8]. What areas do you recruit in?


Operations
Finance
Administration
Sales
Marketing
HR
Phone Calls

[9]. What is the turnover level of employees in Osram IPL?


Low
Medium
High
If High, the reason of such turnover?
Low Package
Job Hoping
Termination
Retirement
Others

[10]. As a recruiter what are the challenges involved?


________________________________________________________
________________________________________________________

[11]. What challenges/issues are involved in approaching the candidates?


________________________________________________________
________________________________________________________

[12]. New strategies you would like to add in your recruitment model?
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________________________________________________________
________________________________________________________

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