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Project Report On

RECRUITMENT & SELECTION


PRACTICES AT

SUBMITTED BY~

RATUL SONOWAL

INDUSTRIAL RELATION
AND PERSONNEL MANAGEMENT

R/NO- M3/30

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TABLE OF
CONTENTS

Certificate
Acknowledgement
Executive Summary
TOPICS PAGE NO

 Introduction 1

 Recruitment and Selection –An Overview 22

 Rationale of Study 31

 Research Methodology 33

 Company Profile 34

 Analysis 42

 Limitations of Study 51

 Conclusion 52

References
Annexures

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EXECUTIVE SUMMARY

This project is a study on the recruitment and selection practices followed in


Indian Oil Corporation Limited. Since today the successful organizatiaons
are those who like to grow their Human resources and build on their talent
this project was chosen. Considering the fact the Human resources function
begins with a healthy recruitment process, which ensures good efficiency
and performance of the organization.

The project proceeds in a systematic manner.

It begins by defining the concepts involved in the recruitment and selection


process by any organization.

This is followed by overview of the Indian industry, pertaining to recruitment


and selection retention strategies, with inputs about the trends in the west.

The rationale to the study and the research methodology adopted is the
defined.

The results of the survey are then analyzed and discussed for the
company.

The limitations are given to towards the end followed by conclusion.

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INTRODUCTION

THEORETICAL CONCEPTS

RECRUITMENT

Before an organization can fill a job vacancy, it must find people who not
only are qualified for the position but also who want a job. Recruitment
refers to organizational activities that influence the number and type of
applicants who apply for a job and whether the applicants accept the jobs if
offered. Thus recruitment is directly related to both human resource
planning and selection.

Although it can be quite expensive, organizations have not always viewed


recruitment as systematically as other HR functions such as selection.
During the coming years, however the importance of recruitment will
increase for many organization's for atleast two reasons :

 A majority of companies think that they will face shortage of employees


who posses the necessary skills for the jobs.

 The downsizing and cost saving measures undertaken by many


companies in recent years have left recruitment budgets much smaller
than before.

Thus recruiters will have to become acquainted with new and more cost-
effective ways of attracting qualified applicants.

A DIAGNOSTIC APPROACH TO RECRUITMENT - the process

Various factors in the environment affect the recruitment process. The


recruitment process begins with an attempt to find employee with the
abilities and attitudes desired by the organization and to match them with the
tasks to be performed. Whether potential employee will respond to the
recruiting efforts will depend on the attitudes they have developed towards

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those tasks and the organization on the basis of there past social and
working experiences. Their perception of the task will also be affected by
the work climate in the organization.

How difficult the recruiting job is depends on a number of factors: external


influences such as government and union restrictions and the labor market,
plus the employer's requirements and candidates preferences.

External influences

Government and union restrictions

Government regulations prohibiting discrimination in employment and hiring


have a direct impact on recruiting practices. Although there is no guaranteed
way to avoid legal entanglements associated with recruiting, some basic
principles of sound recruiting practices can be followed.

a) Post notices regarding the availability of a job.

b) Publish a list of qualifications necessary to fill the job. Distinguish


between essential qualifications and desirable ones.

c) Use recruiting sources that will reach the greatest number of potential
applicants in the job market.

d) Be wary of establishing qualifications that might directly or indirectly


exclude members of protected groups.

e) Be sure the job qualifications are applied to every applicant in a


consistent manner.

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DIAGNOSTIC MODEL

External Environmental Internal Environmental


Influences Influences
• Govt.Regulations & • Strategy
Laws • Goals
• The Union • Organisational Culture
• Economic Conditions • Nature Of the task
:domestic & • Work group
International • Leader’s style &
• Composition Of labor experience
force

HUMAN RESOURCE PROCESSES

Acquiring Rewarding Developing Protecting and


Human Human Human Evaluating
Resources resources Resources • Safety,
• HR • Performanc • Orientation health &
planning e Evaluation & Training wellness
• Job • Compensati • Developme • Evaluation
Analysis & on nt
design • Benefits & • Career
• Recruitment Services Planning
& Selection

Desirable End Results

Socially responsible & Competitive, high quality Competitive,


high
Ethical practices products quality services

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Composition of labor force and location of organization
As the number of legal requirements has increased, it has become more
important for an organization to analyze the composition of workforce. Such
analysis is done to determine whether the firm's employment practices are
discriminatory. The location of the organization and the relevant market will
play a major role in the composition of the work force.

Therefore, government and union restrictions labor market conditions, the


make up of the work force and the location of the organization are external
forces that affect each other. None of these forces are necessarily more
important than any other force. Each of them must be considered in
developing a sound recruitment plan that results in an effectively functioning
organization.

INTERACTIONS OF THE RECRUITAND THE ORGANIZATION

The nature of the organization and the goals of the manager are highlighted
in the above diagram, as is the nature of the task. The techniques used and
the sources of recruits vary with the job. As afar as the applicants are
concerned, their abilities and past work experience affect how they go about
seeking a job.

The organization's view of recruiting

Several aspects affect recruiting from organization's view point : the


recruiting requirements set, organization policies and procedures, and the
organizational image.

Recruiting requirements

The recruiting process necessarily begins with a detailed job description and
job specification. Without these, it is impossible for recruiters to determine
how well any particular applicant's fits the job. It should be made clear to the
recruiter which requirements are absolutely essential and which ones are
merely desirable. This can help the organization avoid having unrealistic

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expectations of potential employees : an employer might expect applicants
who stand first in their class, are president of all extra curricular activities,
have worked their way through school, have 10 years of experience and are
willing to work for long hours.

Contrasted with this unrealistic approach, the effective organization


examines the specifications that are absolutely necessary for the job. Then
it uses these as its beginning expectations for recruits.

Finding applicants who possess the needed skills for a job is the "science" of
recruiting. Beyond determining whether an applicant has the skills needed
for the job, recruitment in the coming years will also have to determine
whether the applicant will function well within the culture and value system of
the organization. Interview performances in terms of interpersonal styles is
one of the most critical factors used by recruiters to evaluate prospective job
candidates.

Organization policies and practices

In some organization's, HRM policies and practices affect recruiting and who
is recruited. One of the most significant of these is promotion from within.
This policy means that organization's recruit from outside the organization
only at the initial hiring level. They feel this is fair to present loyal employees
and assures them a secure future and a fair chance of promotion, and most
employees favor this approach. Some employers also feel this practice
helps protect trade secrets.

Organizational image

The image of the employer generally held by the public can also affect the
recruitment. all else being equal it is easier for the organization with a
positive corporate image to attract and retain employees than an
organization with a negative image.

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The good or bad, well-known or unknown images of these organization's will
affect how they are viewed by the job recruits. The organizations image is
complex, but it is probably based on what the organization does and whether
it is perceived as providing a good place of work. The larger the
organization, the more likely it is to have a well-developed image. A firm that
produces a product or service the potential employee knows about or uses is
also more likely to have an image for the applicant.

The organization's image is also affected by its industry. These images


change. Job applicants can seldom have interviews with all the
organizations that have job openings of interest to them. Because there are
time and energy limits to the job search, they do some preliminary
screening. One of these screens is the image the applicants have of the
organization, which can attract or repel them.

In sum, the ideal job specifications preferred by an organization may have to


be adjusted to meet the realities of the labor market, government or union
restrictions, the limitations of its policies and practices and its image. If an
adequate number of quality people apply, the organization may have to
adjust the job to fit the best applicant or increase its recruiting efforts.

The potential employees view of recruiting

The applicants have abilities, attitudes and preferences based on past work
experiences and influences by parents, teachers and others. These factors
affect recruits in two ways: how they set their job preferences and how they
go about seeking a job.

Preferences of recruits for organization and jobs

Recruits have a set of preferences for a job. The recruit also faces the
limitation of labor market, government and union restrictions and the limits
og organizational policies and practices. The recruit must anticipate the
compromises just as the organization does.

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What factors affect the organization decision? A more educated set knows
the labor market better, have higher expectations of work and find
organization's that pay more and provide and more stable employment.

Job search and finding a job: the recruit

It is not always enough to be simply in the right place at the right time. The
effective job searcher creates opportunities in a systematic way. Effective
job search involves several steps including self-assessment, information
gathering and networking, targeting specific jobs and successful
presentation.

The job search process begins with self-assessment. The purpose of self
assessment is for job searchers to recognize their career goals, their
strength's and weaknesses, interests values and preferred life styles. This
information is later used in the search process to help the applicant assess
whether there is a fit with a particular job offer. The assessment is similar to
what organizational recruiters will be doing, only from the perspective of the
applicant.

Information gathering and networking are methods for generating lists of


potential employers and jobs, information sources include newspapers, trade
publications, college recruitment offices and organizational insiders.

METHODS OF RECRUITING

Most job openings are filled with people from within the organization and
entry level positions are the most likely to be filled by external sources.
Methods for internal recruiting include job posting, skill inventories, job
bidding and referrals. Methods of external recruiting include school and
college recruiting, advertising, and using employment agencies and
executive research firms and the lnternet.

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Internal versus external recruiting methods

Internal recruiting methods include posting position openings, distributing


memos within the organization and searching organizational databases for a
match between the skills required to perform the job and the skills held by
the current employees. This method of recruiting looks to internal sources to
fill positions and encourages promotions from within. External recruiting
methods include advertising position. Whether managers choose internal or
external recruiting methods depends on the degree to which organization's
strategy encourages promotions and transfers from within the organization.
Recruiting from within can lead to job satisfaction and motivation if
employees see new career opportunities available. In addition filling
positions with existing employees ensures to large ext6ent that these
employees are socialized as to the organization's culture and personality.
However problems can arise if the internal promotion system is not viewed
as fair.

The best way to avoid negative backlash when hiring or promoting from
within is to install fair practices and procedures. If steps are taken to ensure
a fair internal promotional process, most people will accept their loss and
remain productive and useful organizational citizen. External recruiting
method helps bring new ideas and approaches to the organization.

Internal recruiting methods

Job positing

Many position can be filled as a result of posting the job opening on the
bulletin boards, announcing the opening in a company newsletter or posting
announcement on the companies intranet. A job posting procedure enables
employees to strive for a better position within the company. Notices of
important openings should include all-important information about the job.

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Some firms have turned to computers to make their job posting more fruitful.
All employees who wish to participate complete questionnaires about
themselves, which include items concerning relocation willingness and
preferences as well as training and educational backgrounds. A few skills
are selected out of the total that best represent their functional skills. When
a position needs to be filled the requirements are matched and candidates
selected.

Although positing jobs can be an efficient method of recruiting, number of


problems have been associated. Example it can lead to personal bias and
stiff competition.

Skills inventory

Another recruiting method is the use of skill inventories. Essentially a skills


inventory includes a list of employee names, their education, training,
present position, work experience, relevant job skills and abilities and other
qualifications. The organization can search through the company skill
inventory to identify potential candidates for the position opening.

Job bidding

These procedures typically specify that all jobs covered by the agreement
must be fitted by qualified applicants from within the bargaining unit. Those
interested in the vacancy bid for the job by applying if they are qualified. The
individual fills the position with the highest seniority from among the qualified
applicants. In some cases applicants take competitive examinations.
However only current employees are eligible.

Using a job bidding system is normally very easy. However it can present
some difficulties.

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Referrals

An excellent source of information is current employees who may know


someone who would be qualified and interested in the open position. To
entice employees to make job referrals, some companies offer a referral
bonus. People tend to associate with people like themselves, if the
employee fits the organization, chances are his or her referrals will be good.
Employees, whose referrals are hired, are often willing to serve as a mentor
to ensure their referrals succeed in the company.

EXTERNAL RECRUITING METHOD

School and college recruiting

Recruiting at high school or vocational schools is often a strategic approach


adopted by organizations with position openings at the entry level or internal
training programs. Recruiting at the college level serves as a major source
for acquiring managerial, professional and technical skills.

The gap that exists between the skills that organizations will need over the
next several years and those currently possessed by potential employees is
growing. The number of jobs requiring a college degree is on the increase.
Unfortunately for the organization it is a very time consuming and expensive
exercise. But pressures from the external environment will continue to force
organizations to be highly visible and active in this kind of recruiting.

In college recruiting the organization sends an employee usually called a


recruiter, to a campus interview candidates and describes the organization
to them. Coinciding with the visit, brochures and other literature about the
organization are often distributed. The organization also runs ads to attract
the candidates.

In the typical procedure, those seeking employment register at the college


placement service. This placement service is a labor market exchange
providing opportunities for students and employers to meet and discuss

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potential hiring. Preliminary interview with employers is done. Students are
given detailed influence about the job and the profile. Salaries are
negotiated. The expenses are borne by the organization. Many of the
changes are designed to reduce overall recruiting costs while maintaining a
strong applicant's flow into the organization. The trend seems to be for an
organization to develop a stronger, ongoing relationship with a relatively
select number of schools.

Advertising

Advertising job openings in newspapers, magazines, newsletters and other


media sources is a relatively inexpensive recruiting mechanism. Advertising
is useful for filling open position quickly. Advertising usually does not target a
specific audience. Specified defined advertisements will attract qualified
applicants, dissuade unqualified ones from applying and make the
recruitment process more efficient.

Private employment agencies

Private employment agencies vary considerably in size and effectiveness as


good sources of employee and mufst be chosen carefully by employers and
job seeking alike. A preliminary interview is conducted for the applicants.
Unfortunately some agencies are more concerned with placing employees
quickly than in effecting a good match between the employee and the
organization. The discrepancy can be reduced if the HR managers give
detailed and specific requirements.

The lnternet and the WWW

One of the fastest growing recruitment methods is the lnternet and the
WWW. Companies who do use the lnternet as a recruiting source appear to
be happy with the process and the results. It allows access to broader set of
people and hence broader set of expertise and skills. It is also faster and
convenient. However it may not be accessible to all.

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UTILIZING RECRUITING RESOURCES

Companies frequently use a variety of internal and external recruiting


strategies to locate and hire their workers. Although one technique may
work well for some organizations, the same technique may prove ineffective
for others. Some technique may mesh well with the organization's
competitive strategy, but others do not.

By integrating both internal and external recruiting techniques, a company


can develop an overall recruiting plan that is specifically tailored to support
its overall strategy and result in selection of highly qualified applicants.

Exactly how many recruits are needed can be determined from past
recruitment efforts. Specifically a yield ratio can be developed for each
position to be filled. A yield ratio is the number of candidates who pass a
particular recruitment hurdle divided by the number who attempted the
hurdle.

It is important to keep in mind that the plan should support the companies
overall strategic approach.

Re- Recruitment strategies

Re-Recruitment strategy is a series of steps a company can take and retain


key employees. Re-Recruitment strategies are a good idea, but essential in
turbulent times such as after downsizing or a major organizational
restructuring. Key employees are defined as employees whose loss would
have a most detrimental effect on the organization.

Once the key employers have been located, the next step is to determine
what can be done to motivate them to remain with the organization. A
flexible work arrangement will mean something different to every employee,
so it is important to dearly delineate what key employees want and need with
respect to flexibility. Flexibility can also be offered by introducing
compressed work weeks, flexible starting times and comp time where

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workers can leave work for an hour or two to deal with family matters. An
increase in the compensation can also help retain a key employee.
Retention bonuses have also been used successfully as a means of getting
technical staffers. Without a salary adjustment key employees may be
stolen away by competitors,

Career development opportunities

College graduates entering work force for the first time are clear about their
expectations and are less willing to adapt their values and work styles to
accommodate to their employers.

The following factors entice first careerist to stay with the job and the
company:

1. Immediate involvement in the essential work of the firm.

2. The ability to apply newly learned knowledge and skills.

3. The opportunity to understand the big picture of the firm.

4. Rapid career development.

5. Rapid salary advancement.

6. The opportunity to learn new skills.

Companies are responding to these needs by offering a variety of programs


for new employees. One factor that should be considered prior to selection
is the "fit" between the individual career objectives and the career path that
can be realistically offered by the firm. Career plateauing which refers to
the point in a career where future hierarchical movement is unlikely, has
become a real problem in organization's today. Downsizing and
restructuring has severely restricted the potential for vertical movement in
many managerial career paths.

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ALTERNATIVES TO RECRUITMENT

Another strategic business decision can be made is not to recruit. Instead


they can rely on alternative staffing options.

Common alternative staffing options

 Traditional temporary help

A potential employee is recruited, tested, screened and employed by a


temporary staffing agency. They assign qualified individuals to work at
a clients site, generally to support or supplement the current work
force.

 Long term temporary assignments

It is becoming increasing popular for an organization to staff part of its


work force with temporary workers on an ongoing basis. These
individuals are not considered short-term replacements, but more a
part of the regular work force.

 Part time employees

Workers who work less than 40 hours a week are considered part time
employees. They can be organization's pay roll or assigned via a
temporary agency.

 Employee leasing

A Company will transfer some of its employees to a leasing firm. The


leasing firm then leases back the workers to perform the same job they
did for the Client Company. However the leasing firm is now
responsible for cost and work associated with the typical HR functions
such as Payroll, benefits and record keeping.

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 Independent contractors

Independent contractors are self-employed individuals who market a


specific skill they posses to a variety of companies. A Company will
hire them for a specific project or contract. Payment is usually based
on the time and effort the individuals put forth on the project and
expenses are frequently reimbursed.

 Outsourcing services

An independent company with expertise area will contract with a firm to


take full responsibility for that specific function in the organization.

EVALUATING THE RECRUITING METHODS

Given the importance of recruiting to the organization the method used in


recruiting should be evaluated periodically. One of the most important
reasons to evaluate recruiting method is to determine the cost versus
benefits of various methods. When recruiting method do not attract enough
applicants many organizations's respond by raising the salaries. Although
some job applicants may be enticed by money, this may not be a cost-
effective method of recruiting. Further employees within the organization
may perceive inequity if new employees are brought in at a similar or even
higher salary.

Recruiting costs include factors such as the cost of advertising, the salaries
and travel expenses of recruiters, travel expenses of potential job applicants
and recruiting agencies. These costs must be weighed against factors such
as the potion of acceptance offers. At a minimum, organizations should
compare the length of time applicants from each recruiting source stay with
the organization with the cost of hiring from a particular source. The
effectiveness of recruiting method varies among organizations and even jobs
within the same organization.

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THE SELECTION PROCESS

Selection is the process of choosing individuals who have the qualifications


to perform a particular job well. Organization differs as to the complexity of
their selection systems. Some organization's make a strategic decision to fill
positions quickly and inexpensively by scanning application forms and hiring
individuals based on this information alone. Other organization's however
makes a strategic decision to choose the best person possible by having an
elaborate and sometimes costly selection system. These systems may
require potential employees to fill out application forms and provide
information for a background check, take a number of job related tests, and
perform well through a series of interviews. Most organization's have. more
than one selection process.

Application blanks and resumes

The initial screening of potential employees is usually done by examining


resumes and 1 or having applicants fill out an application blank. Items that
should be requested on an application include general biographical
information. Much of information gathered on application blanks is objective
so that the human resources manager can verify it. Verification of
information on an application is becoming increasingly important to avoid
claims of negligent hiring. An employer is guilty of negligent hiring if he or
she failed to perform a thorough background check on an employee whose
infliction of harm could have been predicted.

Once the application has been verified, it can be numerically scored to make
it comparable to others. The process of qualifying an application is called
weighting an application. The use of a weighted application blank
involves placing a value or score for the items on the application that have
been found to predict successful job performance. Applicants receive points
according to the information they report on the form and can then be ranked
based on their total points.

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Although weighted applicants blanks have been found to be predictive of
future performance, the time and cost of developing an effective are often
prohibitive.

Resumes are often instead of application blanks. Job applicants develop


their own resumes, which should include essentially standard information.

TYPES OF SELECTION TESTS

A number of selection tests have been developed to aid the human


resources manager in hiring employees. The following section covers
mental ability test, work sample tests, trainability tests, personality and
interest inventories and honesty tests as selection devices.

Mental ability tests

Paper and pencil tests have been developed by psychologists and are used
by organization's to measure mental ability and aptitude. Ability and aptitude
tests examine a variety of tests such as general intelligence, an
understanding of spatial relationships, numerical skills, reasoning and
comprehension.

Work samples

Also called performance tests, work sample tests measure the ability to do
something rather than the ability to know something. These tests may
measure motor skills or verbal skills. Work sample tests should test the
important aspects of the job. Since job applicants are actually performing a
small portion of the job, it is difficult to "fake" ones ability on these tests.

One of the most effective ways to design work sample tests is by using the
results of a job analysis, because the results of a job analysis indicate which
tasks are most critical and which are required for successful completition of
the task. It is easy to determine which activities need to be represented on
the tests.

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Trainability tests

For jobs in which training is necessary due to

1. The skills level of the job applicants

2. Changing nature of the job, trainability tests are useful.

Essentially the goal is to determine the trainability of the candidate. In the


first step of the process, the trainer demonstrates how to perform a particular
task. Then the job applicants are asked to perform the task while the trainer
helps to coach him or her through the process several t8mes. Finally the
candidate monitors the performance, recording any errors, to determine the
overall trainability of the job applicant.

But work sample tests and trainability test have shown to have high to
moderate success predicting job performance.

Personality and general interest inventories

Personality and general interest inventories are tests that have no "correct"
or "incorrect" answers. Interest tests are used to measure an individual's
work and career orientations. Personality tests focus on identifying traits or
typical behaviors of individuals and are used to measure a variety of traits
including aggression, self-esteem and type A behavior. Although personality
and general interest inventories are tests that have no "correct" or "incorrect"
answers. Interest tests are used to measure an individual's work and career
orientations. Personality tests focus on identifying traits or typical behaviors
of individuals and are used to measure a variety of traits including
aggression, self-esteem and type A behavior. Although personality tests can
be costly, they can help human resources manager's determiner individual
characteristics opt obtained from a resume, thus increasing the likelihood of
finding a go "fit" between the job position and the employee.

A serious criticism of personality inventories is their tendency to be invasive


in that they seek to "uncover” revealing data about a person's psyche.

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Companies that use this type of pre employment tests must therefore ensure
that the information they seek and the way they use this information are
relevant to the job in order to prevent lawsuits by rejected applicants.

THE INTERVIEW

Most organization's, regardless of size, use interviewing as a selection


method. Interestingly, interviews have been criticized for being unreliable
sources of information due to perceptual and judgment errors on the part of
the interviewer. Example interviewers often form a first impression of the job
applicant based on the influence obtained on the application blank or the first
two minutes of the interview.

Another type of perceptual error is called the Halo effect. In this case, one
characteristic or behavior of the job applicant overrides all or most other
characteristics.

Contrast effects have also been found to distort interviewer judgments


about job applicants. Contrast effects occur when the interviewer evaluates
a job applicant by comparing this person to previous job applicants.

Other perceptual errors can distort an interviewers evaluation include


stereotyping, leniency, strictness and central tendency errors.

Establishing a system for conducting an interview can improve the reliability


and validity of interview assessments.

Types of interviews

Interviews can be classified into three general categories: structured, semi


structured and unstructured.

 Structured

When conducting a structured interview, the interviewer asks questions


from a prepared list and does not deviate from it except for some follow

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up questions. During the interview, the interviewer records his or her
thoughts and reactions on a standard organizational form. When
different interviewer reach the same or similar conclusion about a given
candidate, the interrater reliability is high. Unfortunately this type of
interview is very restricted.

Two most common types of structured interviews are the behavioral


description interview and the situational interview.

The behavioral description interview allows you to gather and


evaluate information about what candidates have done in the past to
predict how they will act in the future. A thorough job analysis of the
job is done for which the interview is being developed. The specific
KSA0s are uncovered, required by the job as well as appropriate and
important behaviors performed by the job incumbents. Next questions
will have to be designed which elicit the behaviors.

The second type of structured interview is the situational interview.


In this job experts develop questions that focus on situations that might
arise in the actual job. It is conducted with a panel of interviewers,
each of whom independently rate the applicants. This type of interview
is kinder to the applicant because a past example does not have to be
provided.

 Semi structured

Here only the major questions are prepared in advance and are
recorded on a standardized form. This type of interview involves some
planning on the part of the interviewer but allows for some flexibility
regarding exactly what and how questions are asked. Although the
inter rater reliability is not so high as with structured interview, the
information obtained may be richer and possibly more relevant

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 Unstructured interview

The unstructured interview involves little planning or no planning on the


part of the interviewer. Due to lack of planning, the interviews tend to
vary greatly between interviewers and also between interviewees.
Unstructured interviews have low reliability and seldom yield valid and
useful information.

MANAGERIAL SELECTION DEVICES

Selection devices for managers can differ from non-managerial employee


selection. Assessment centers were developed to tap these numerous
managerial skills by collecting work sample information. an assessment
center is not a place but a process. In this process trained professional
evaluators, called assessors, observe and record and evaluate how a
candidate performs in simulated job situations.

Although the validity of assessment center tends to be high, some problems


recently have been identified with this selection device.

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RECRUITMENT AND SELECTION - OVERVIEW

Till recently the rules of recruitment were very retrogressive. Companies


simply hired fresh graduates or MBAs - seeking out the top rankers - started
them off as trainees, paternally oversaw their vertical progress and repeated
the process every year. On the rare occasions that they had to recruit at
higher levels, they advertised - the discreetness of the address matching the
stature of the company as a coveted employer - or used services of a head
hunter and chose on the basis of a track record. Job hoppers were never
favored and companies hired everyone for lifetime.

Now a recruitment revolution is beginning. And the people whom company


will soon compete for most fiercely will be those who have earned their spurs
in different functions, companies, industries- and not one company, one
function specialist. Having succeeded in hiring them, CE0s must not expect
all of them to stay. Some will leave the company when the company
changes its operational focus - as it must to stay ahead of change and
needs different kind of people. Others will opt for entrepreneural careers in
favor of -,employment. Yet others will go back to school to restrictions
-educate themselves and proceed to the next phase of their portfolio careers'

Abandoning their old policies of hiring only at the bottom, therefore


companies will have to induct new talent at every level, including those
where internal promotions were once developed rigueur. Even the search
for CE0s will intensify as new competitors look for team captains and
existing companies feel the need for new qualities - not available in house -
in their CE0s. lnfact the search for the right people at every level will pick up
pace.

And while companies will have to develop innovative techniques to beat the
competition at recruitment hotspots like campuses, they must also look
outside their conventional hunting grounds. For that is where people with
unorthodox Winning ideas will come from CE0s looking for breakthrough

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marketers will have to recruit them from other industries since everyone
already in the sector will only offer tired ideas. Hunting for knowledge
workers, company va have to raid research laboratories, non-governmental
organization's, college staff-rooms and even sports fields. And the quest for
managers with the ability to lead mega projects will have to be global and
not limited to the country.

At the organizational level, companies must tailor their manpower


recruitment plan to corporate objectives, drawing up the profiles of suitable
fires accordingly. Company focusing on new business development will
have to seek entrepreneurial abilities; companies planning to withdraw from
diversification's must look for pragmatists; companies chasing growth
through alliances should hire people comfortable in different cultural
backgrounds. Above all companies must hire for the future, anticipating jobs
that may not be in existence yet.

So recruitment of managers must focus not on functional expertise, but for


attitudes and approaches that fit the corporate goals and culture. Among the
qualities that companies will have to screen, therefore will be interests,
disposition, attainments, general intelligence, special aptitudes are even
physical make-up. For every job that a company seeks to fill therefore the
must prepare psychological profiles of the ideal candidate. And to test
candidates for a fit with that profile, companies will increasingly have to use
psychographics testing techniques such as Thomas Profiling. Myers- Bdgg
Type irdicator, or the particular preference Inventory that draw up the
complete psychological and behavioral characteristics of an individual.

The test for personality traits will involve using unconventional tools like
graphology. Also on test will be candidates result orientation analytical
ability, initiative, communication skills and innovativeness, giving employers
as much information as possible with which they decide whether an
individual will be appropriate for the job. To validate the conclusions of the
tests, line managers and human resources personnel who conduct

26
interviews will have to be trained interviewing skills. And companies will
have to use multi-session depth interviews ad of one off interactions to
explore different facets of a candidate under different circumstances and
varying degrees of pressure.

What are the elements which companies must use to entice top talent'.?
Compensation will be crucial only till it isn't absurdly below. the competitor
offer. Instead recruiting teams will have to market their company as a place
where employees have fun working, particularly to people that the company
is trying to hire from old fashioned organization's.

A corporate culture that cares for people and gives them room to grow will
be a company's strongest magnet for attracting good people. CEOs will have
to ensure that their line managers and human resources department design
unconventional jobs and daring responsibilities to create offers that their
targets cannot refuse. And if pursuing the right person and convincing him
to agree takes time, the companies should be willing for it. In the knowledge
economy the corporate quest for intellectual capital will be a continuous
process.

Recruitment costs

Low cost per hire may affect the quality of recruiting. Companies may think
that the cost of hire may be high but if the company is able to attract the best
talent, the company is successful. Quality of hire is a useful metric. to
assess the strength of the recruiting process.

Some companies evaluate candidates through multiple interviewers,


assessment tests, reference and credit checks, background and educational
verifications. Even with all of these techniques companies continue to
realize the same "bell curve" distribution of employee performance. Others
are smarter, they apply the technique of position, profiling to identify top
performers and to change the bell curve.

27
Companies can design a brief performance evaluation process and use it on
new entrants, within six and 18 months of joining. The quality of
performance puts the recruiting process to test.

While filling internal positions, the recruiting manager responds to his


internal customer - the line manager. Measure of customer satisfaction
proves to be a precious technique for fine tuning the system. Recruiting
managers use post hire surveys and evaluations for this purpose.

It is important for companies to document pre hire requirements and conduct


objective post hire evaluations. Managers also seek feedback from the
candidates themselves. Such data could give insights into further
streamlining the recruiting process.

How long before they are in?

Recruitment cycle time is measured by the time taken to fill a vacancy.


Another metric is staffing time ratio - the ratio of actual time in days to start
to pre-contracted time to start. The contracted time to start is agreed upon
between the hiring manager and the recruiter and it can be changed during
the recruiting process with mutual consent.

Internal hiring a more viable option

Corporate recruiters have a dangerous bias towards hiring from an outside


source. Industry giants like HLL and Tata's believe in homegrown talent.
More often than not heavy recruitment happens at entry level and
incumbents move along a structured career path as they grow with the
company. The pool of talent keeps widening and gains richness with time.
As a result it is never a daunting task to fill roles created out of unexpected
situations.

On the other hand fast growing, innovative relatively newer firms tend to
focus more on external hires, a strategy guided partly by default and partly
by design. By and large all companies end up using a mixed strategy.

28
Some companies believe that external hiring give facts about the
competitors. External hiring brings in new ideas, perspectives,
competencies and readymade skills that do away with the need for much
investment on training. On the other hand internal recruitment works fine,
sometimes better. The culture of certain companies may be such so as to
mould the existing employees for further vacancies. Such companies boast
of low employee turnover rate. Internal recruitment may have its benefits but
it also demands a great deal from the HR of the company.

Internal hiring cut out on downsizing

Building an internal talent pool works as an innovative answer to


overstaffing, especially if the company is wary of downsizing as the option.

Internal hiring : more than just filling a slot

Recruiting by itself serves a single purpose filling a slot. But when a


company favors internal over external sources, it also addresses the critical
issue of succession planning. It does not cater to executive replacement
alone, it underlines a commitment to leadership development. A greater
pool of talent can be harnessed at a short notice without the hassles of an
elaborate search externally and without investing in further hiring and
training costs.

The above kind of a process involves psychometric profilers, offsite


interactive workshops, multi rater feedback processes, management games
and options as simple as observation and past performance records.

Recruiting ... inspite of odds.

Recruitment business has dropped by almost 40% lately and the situation
may remain low profile at least for the coming months. There is general
reduction in intake, recruiters are shying away from taking freshers or even
people from cross-functional industries so that there is less investment in
training. Organization's are trying to reallocate jobs, add portfolios to

29
existing positions even considering outsourcing. Jobs are diminishing,
merging or even disappearing altogether. While there are definite signs of
conventional recruitment activity having slowed down, there are strong
signals that organization's are successfully experimenting with more
innovative techniques of talent scouting and sourcing of requisite skills need
to be replenished.

Innovative sourcing .... Its happening

70% of recruitment in India happens through the direct advertising route.


Use of recruitment consultants is the second most favorite technique. Head
hunting is very much in demand along with in depth interviewing. The Indian
recruiter may have access to the best of Indian recruitment consultancy
firms as well as the cream of international search firms, all fiercely
competing on grounds of quality and value added service. But he has
started looking for different sourcing options. Employee referrals, for one is
gaining popularity.

Employee referrals

Reliance on personal contacts is still a strong source of recruitment


worldwide and is being capitalized in more sophisticated ways by many
organization's. Hewlett Packard in the computing sector is reported to have
adopted "company-opting schemes" whereby employees are promoted to
recruitment positions and rewarded for their ability to become good
recruiters.

Recruiters have accepted the fact that recruitment advertising is an intricate


process, involving a psychic attitude change. Its not about a simple job
announcement in a newspaper. It is about attracting quality people who are
not desperately looking for a job. An international restaurant chain realize
that the candidates need to have a feel of the company before they decide to
apply for a job. The company planned a two day event for potential recruits
to walk in and meet managers personally, see videos and slide shows about
the company. The open days also marked a change in direction as far as
the recruiting process was concerned. Instead of screening for basic skills

30
and past experience, the company concentrates on recruiting people for
their personality, so that people could fit in.

31
A new selection aid

All India Management Association (AIMA) has taken a useful initiative by


introducing an all India level test for the employability of prospective
management employees (TEM). The test is administered to candidates who
are in the second 1 final year of MBA programs or an equivalent course or
have less than 2 years of post qualification work experience. Candidates
are tested on parameters like general management skills, thinking skills,
awareness of current business and economic environment and on their
functional areas like marketing, finance, HRD, operations. Etc.

TEM has been endorsed by 62 companies like HLL, Ceat LTD, ITC Ltd,
Labor&T, GEC Alsthom Ltd, DCM Shriram etc. the scores achieved by the
candidates in this test along with other details are sent to corporates to be
shortlisted for 'Interviews and subsequent placement. Corporate houses get
access to scientifically evaluated candidates from allover the country without
having to visit each and every campus, thus saving time and effort. On the
other hand, the candidates get access to a host of companies without
individually applying to them.

A suitable recruitment strategy

An effective recruitment system like any other HR sub-system needs to be


sync with the business strategy and objectives of the organization.
Organization’s adopt specific recruiting strategies tailored to their business
needs. These business needs may change depending on the stage of
growth of the organization.

32
Recruitment strategy varied with stage of growth of the organization

Business situation Characteristics of Characteristics of


business situation candidate
Starting a new business Financial risk Vision
No systems/procedures In-depth knowledge
/ organization Staffing
Operational experience Organizing and team
base is lacking. Building.
Limited relation with
Suppliers, customers.
Turnaround Need for rapid decision Strong leader
making. Strong analytical skills
Weak competitive position. Business strategist
Low esteem/morale. Good crisis
Bureaucratic organization management
structure. Skills.
Incompetent/inefficient Credibility.
personnel.
New acquisitions New management proving Analytical ability
themselves Relationship building
Existing management skills
defensive about change Credibility.
Need to integrate acquired
company with parent
Liquidation of business Weak competitive positions Determination
Low returns Highly analytical in
Low morale, deficiency of case of cost/benefits
skills Willing to do dirty jobs
Need to cut losses and Wants to be respected
make decisions not just liked
Redeployment Low short term/long term Good manager of
risks change.
Resistance to change Highly persuasive.
Mismatch of organization Supportive.
resources and need Risk taker.
Lack of strategic plan for
quite some time.

33
What are the skill sets

Process skills are being given more importance as compared to solely


technical skills. Recruiters are keenly selecting for general attributes like
ability to cope with change, leadership, entrepreneurship, project
management, tolerance of uncertainty, management skills and
communication ability. The five top skills sought in entry level candidates on
campus are communication skills, team working, listening and problem
solving.

34
RATIONALE TO THE STUDY

Recruiting and screening is the first line of defense when it comes to


bringing the right people into the organization. Determining who the right
people are should not end with experience and education, but with
personality, attitude, communication abilities, and other behavioral
characteristics that fit the organization

The overall aim of the recruitment & selection process should be to obtain at
minimum cost the number and quality of employees required to satisfy the
human resource needs of the company.

Hitting the hiring bull's eye is one of an executive most important and most
difficult responsibilities. Using interviews, reference checks and sometimes-
even personality tests, they try to infuse logic and predictability into hiring.
Still, success remains elusive.

If hiring has always been a daunting task, today's economy makes it more
so. The global scope of business has increased the demand for talented
senior executives in the corporate ranks. Meanwhile supply is shrinking as
more and more people-in particular promising MBA's choose to work for start
up ventures or go Into businesses for themselves. At the same time the
nature of work itself is in flux.

Until the 1990s, jobs were pretty uniform. In the classic, functional
organization cultures were relatively comparable, too - formal, hierarchical,
and based on individual achievement. But with the advent of new
organizational forms such as joint ventures and strategic alliances and with
growing prevalence of teams, free agents and networking, finding the right
person to fill a job has become more complex.

What competencies, after all these new kinds - of companies and cultures
require? Nowadays the CEO's of two companies in the exact same industry
may need entirely different skills and personal styles to succeed.

35
Many talented people leave their organizations because senior managers
don't understand the psychology of work satisfaction; they assume that
people who excel at their work are necessarily happy in their jobs. Strong
skills do not always reflect or lead to job satisfaction. Many professionals,
particularly the leagues of 20-30 something's streaming out of today's MBA
programs, are so well educated and achievement oriented that they could
succeed in virtually any job. But will they stay?

The answer is, only if the job matches their deeply embedded life interests.

Personal values have changed with workers of the new millennium.


Employee/ employer loyalty has diminished and work environment and a
"work/life" balance are more important than ever. It is clearly evident that as
we move into the new millennium, only companies than ever.

It is clearly evident that as we move into new millennium ,only companies


that have a world-class recruitment, placement and retention solution will
survive .

Considering the above scenario studying the recruitment and retention


strategies was the most appropriate topic for my end term project. Since
successful practices of HR begin with an appropriate selection process and
retaining the best talent within the company is another challenge.

Industry chosen: The Indian Oil Corporation Limited

Companies like IOCL have always received awards for their best practices in
the field of human resources. Also these PSU's are undergoing a flux and
would soon be under the umbrella of a major change of being privatized.

To study the recruitment and Selection practices under such situations


seemed a challenging and interesting task. .

36
RESEARCH METHODOLOGY
RESEARCH OBJECTIVE UNDERTAKEN:

 To study the Recruitment & Selection Practices at IOCL

SCOPE OF THE PROJECT:

 To identify the various factors companies undertake prior to the


recruitment process.

 To study how the companies establish a fit between their business


strategy and recruitment strategy.

 To study how the companies have coped with change in the market
vis a vis its recruitment process.

SOURCES OF DATA COLLECTION

Primary Sources

The primary data was obtained on wide scale ranging from pre designed
formats to open ended interviews. The primary means were:

 Questionnaires were administered across the top-level managers in


the HR department of the chosen organizations.

 Discussions were held with some employees in order to obtain their


view on the recruitment strategies followed.

Secondary Sources

Data was also screened from secondary sources for further inputs.

Also data was obtained from various journals in order to supplement details
of recruitment trends globally and locally.

SAMPLE DESIGN

Type of sampling : Random sampling method was used to obtain data.

Sample extent : New Delhi

37
COMPANY PROFILE OF INDIAN OIL
CORPORATION LIMITED

IndianOil, the largest commercial enterprise of India (by sales turnover), is


the only Indian company to find a place in Fortune’s "Global 500" of the
world's largest industries (Rank 278 in 1998). Among Petroleum Refining
companies, it has a global ranking of 16 by sales and profits.

IndianOil touches every Indian’s heart by keeping the vital oil supply line
operating relentlessly in every nook and corner of India. With the backing of
over 32% of the country’s refining capacity (as of 1st April 2000) and 6260
kms of crude/product pipelines across the length and breadth of the country,
IndianOil’s vast distribution network ensures that essential petroleum
products reach the customer at the "right place and right time". IndianOil's
refineries and pipelines have been consistently achieving more than 100%
capacity utilisation and our marketing share is about 55% in India.
IndianOil’s activities are backed by its "Research and Development Centre",
the first such centre established in India. This centre has over the years
grown into a major technological development centre of international repute..
IndianOil also has four overseas offices in Kuwait , Malaysia, Dubai and
Mauritius.

As the premier National Oil Company, our endeavour is to serve the national
economy and the people of India. They also have a "vision beyond
tomorrow" – of becoming an integrated and diversified "Global Energy
Corporation". They are continuously innovating and strengthening areas of
core competence. At the same time, they are exploiting opportunities offered
in the new liberalised scenario by globalising and diversifying into related
areas.

38
Operational Performance (1st April 1999 to 31st March 2000)
Record performance in the three core areas of Business :

 Refinery thruput of 32.39 million tonnes - up from 30.36 million tonnes in


1998-99

 Pipeline thruput of 39.50 million tonnes - up from 34.05 million tonnes in


1998-99

 Sales of 49.17 million tonnes - up from 46.05 million tonnes in 1998-99

Financial :Performance (Ist April 1999 to 31st December 1999)


Gross turnover of Rs.66,492 crore (US$ 15.95 billion approx.) - 28% growth
over corresponding period last year.

 Net profit of Rs. 2,140 crore (US$ 0.51 billion approx.) - a growth of
23.7% over corresponding period last year.

 35% interim dividend declared for the year 1999-2000

 Equity of Corporation rises to Rs. 778.67 crore with declaration of bonus


shares in the ratio of 1:1

 More than 83% of fixed assets from internally generated resources

(Rs. 1 crore = US$ 0.24 million approx.)

39
VISION

A major diversified , transnational , integrated energy company , with


national leadership and a strong environment conscience , playing a
national role in oil securityand public distribution.

MISSION

• To achieve international standards of excellence in all aspects of energy


and diversified business with focus on customer delight through value of
products and services and cost reduction.

• To maximise creation of wealth, value and satisfaction for the


stakeholders.

• To attain leadership in developing, adopting and assimilating state-of-


the-art technology for competitive advantage.

• To provide technology and services through sustained Research and


Development.

• To foster a culture of participation and innovation for employee growth


and contribution.

• To cultivate high standards of business ethics and Total Quality


Management for a strong corporate identity and brand equity.

• To help enrich quality of life of the community and preserve ecological


balance and heritage through a strong environment conscience.

40
CORPORATE HISTORY

The Formation of IndianOil was a major step towards economic freedom of


the country. Its growth and success are synonymous with the growth and
development of the petroleum industry in independent India.

In the year 1964, the Government of India took the decision to merge Indian
Refineries Ltd. (Incorporated in 1958) with Indian Oil Company Limited
(Incorporated in 1959). The merger took effect from September 1st 1964,
with the new name, IndianOil Corporation Ltd., with its Registered office at
Bombay (Mumbai). In 1981, refining and marketing rights of the erstwhile
Assam Oil Company were vested in IndianOil.

At the time of formation, Indian Oil Corporation Ltd, the authorised capital of
the Indian Refineries Ltd. was Rs. 60 crore and that of Indian Oil Company
Ltd. was Rs. 12 crore.

Guwahati Refinery, the first public sector refinery of the country, was built
with Romanian collaboration and was inaugurated by the first Prime Minister
of India, Pandit JawaharLal Nehru, on 1st January 1962. As on 1st April,
2000 IndianOil owns and operates 7 of the country's 15 refineries with a
refining share of 32%. IndianOil's seventh refinery at Panipat was

41
commissioned in 1998 .IndianOil's total refining capacity is now 35.6
Million Tonnesper Annum.

IndianOil commissioned India's first product pipeline, the Guwahati -Siliguri


pipeline in 1965. The 435-km pipeline connecting Guwahati Refinery to
different installations was designed to carry about 0.818 MMT of oil per year.
Today IndianOil operates the country's largest network of 6453 kms of crude
and product pipelines with a total capacity of 43.7 million tones per annum.

From a small beginning with a sale of 0.032 million kilo litres, IndianOil
achieved sales of 10 million kilo litres with a turnover of Rs. 635 crore and
profit Rs.22.5 crore by the late 60's . From then on, the company has grown
from strength to strength and presently holds about 55 % market share with
sales of about 49.17 million tonnes during the financial year ending March
2000@. During 1998-99, IndianOil's profit after tax stood at Rs.2214 crore
as compared to the profit of Rs. 22.5 crores in the late 60's. The Net profit
during the period August 1999-December 1999 has been Rs.2140 crore

IndianOil is the largest commercial undertaking in India(in terms of turnover)


and the only Indian company in Fortune's "Global 500" listing with a ranking
of 278 for fiscal 1998. IndianOil is ready to offer the world a host of techno-
participation and consultancy capability and share this expertise with other
oil companies in the world, through Strategic Alliances and Joint Ventures in
the areas of Refining, Pipeline, Trasportation, Marketing, R&D and
Training/Consultancy.

Major plans have been drawn up to augment infrastructure and expand into
exploration & production of crude oil, petrochemicals, power generation and
LNG. The company is also globalising its R&D activities, training and
consultancy services, and marketing of products, including lubricants.

42
Capabilities

IndianOil's capabilities in the downstream sector of operations in the oil


sector include:

• Technical services

• Operation and Maintenance

• Techno-economic feasibility / special studies

• Turn around maintenance- Planning, Monitoring & Execution

• Inspection

• Quality Control : Bench-marking

• Shipping and Commercial

• Research and Development

• Safety and Industrial Hygiene

• Quality Auditing/ Management

• Materials Mangement

• Training

Human Resorces

IndianOil's unique work culture is based on trust, openness and a


commitment to creativity and consultation. The organisation identifies each
and everyone of its 33,000 employees as an achiever who will make a
difference. The experience and the knowledge gained by its people in
building this mammoth organisation is now sought after by other developing
countries.

43
Career growth opportunities

IndianOil inducts officers at the junior-most level of the management


hierarchy. First division professional degree holders and post-graduates
from relevant disciplines are recruited as management/ engineer trainees ,
accounts officers, medical officers, lab officers, systems officers,
communications officers, scientists, etc.

Job rotation and inter-location transfers throughout the country facilitate


planned development of careers and broaden outlook. Career growth
opportunities are based on the individual's performance and contribution to
the common goal of sustained growth. IndianOil's top executives have grown
from within --- a testimony to the unlimited opportunities for growth available
to the meritorious.

Welfare of Employees

Apart from attractive scales and perks, IndianOil provides its employees
many facilities and welfare measures which are continuously upgraded. The
medical facilities extended to the employees are rated amongst the best in
the country. Apart from fully equipped hospitals at refinery townships, the
Corporation also has nominated hospitals at various locations to meet
employee needs. Holiday homes at select locations throughout the country
help employees and their families unwind.

Entrepreneurial culture

IndianOil encourages employee participation in management and suitably


rewards innovative suggestions. Participative forums in the form of joint
management councils, quality circles , suggestions scheme, etc. enrich its
work culture. IndianOil today has one of the best records in the industry for
accident free man-hours.

44
Training and Development

IndianOil conducts structured training programmes for its employees both in


general management and functional management disciplines. It also
provides them opportunities to avail of membership of professional bodies.
Monetary incentives are also available for those acquiring additional
qualifications.

IndianOil Institute of Petroleum Management at Gurgaon conducts round-


the-year management development programmes on organisational goals
and strategies, diversification and globalisation plans. It has also provided
specialised training to employees of other international oil companies having
strategic alliances with IndianOil, besides consultancy services in the area of
petroleum management.

IIPM offers a one-year, post-experience International MBA Programme with


specialisation in Petroleum Management in collaboration with the
International Centre for Promotion of Enterprises, Ljubljana and University of
Ljubljana, Slovenia. Initially starting with IndianOil’s own employees in 1996-
97, this institute has now extended this facility to other companies in India
and abroad.

Products & Services

Price Regulated Deregulated

Liquified Petroleum Gas (LPG) Fuel and Feedstock

Motor Spirit (Gasoline) Lubes and Greases

Aviation Turbine Fuel (Jet Kero) Petrochemicals and Specialities

Superior Kerosene Oil (Kero)

High speed diesel (Gas Oil)

ANALYSIS
45
MANPOWER PLANNING AND BUSINESS PLANS

IOCL

IOCL follows a details manpower planning process. However this planning


or the recruitment for any positions have to be sanctioned by the top
management. It does not follow a system of projections for the 5 years since
they believe that it is too long a period considering the fast changing
environment. As a result it does not allow them to keep a focused approach
eventually affecting the recruitment quality and process. The projections are
drawn for 2 years. Infact the projections are yearly where a detailed plan is
drawn up, a budget is made and a sanction obtained for the same. Also the
requirements are identified for the next year, which then in the coming year
is drawn in detail . Hence the blue print of the next year is prepared.

The budget is prepared extensively, which holds an important process in the


entire function. The data from all centers all over the country and regions are
taken. The data is then assessed in terms of the type of the type of people
needed how many of each is needed, the qualifications and the number of
years of experience needed. How many employees are expected to retire
that year, how many are expected to resign. What is the debt levels etc, the
financial and market situation of the company is judged.

Following which the board sanctions the manpower plan and the recruitment
process begins. This also allows IOCL to tailor its manpower plans to its
corporate objectives since the profiles of each are drawn up in consultations
with the line management, top management ( depending whether
managerial or non managerial ) and the experience of the past years .

The linkages developed as a consequence of the above are above are


strong between the manpower plans and business plans. It helps to assess
the number of employees redundant. Considering the competitive scenario it
is imperative for the company to keep a tab on its requirememts and invest

46
in the making of its manpower plans. The result are evident in the success of
IOCL, the fact that it leads the market.

The company has a well-laid out succession plan which forms an essential
backbone of the company. This ensures that any person leaving the
organization at a middle or senior level, the work does not come to a stop
nor is their chaos. A well-defined succession planning ensures a lot more
than this. The company does situations. This instills a feeling of security
amongst the employees at the lower level. The relevance of merit and
performance becomes accentuated and helps them perform better.

Role of job definition in recruitment

The job definition plays a crucial role in the recruitment process since it
helps define the expected qualifications and background for the concerned
job. The requirements markedly differ for the managerial and non-
managerial level. The job definition does take place prior to the recruitment
process, which involve the line manager largely judging the job profile. This
helps recruit the right person for the right place, but the jobs profile of only
technical people follow the path. Incase of general managerial level etc the
job definition outlines a sketch of required competence. The person is then
molded along the career path.

The image built by IOCL and the reviews of the analyst are a reinforcing
factor in the minds of the prospective employees. IOCL is also leading the
market and is ahead of Reliance .

Recruitment patterns – Internal and external

IOCL

IOCL follows both internal & external recruitment processes for managerial
and non-managerial level.

47
Procedure of Recruitment

The following are the sources of recruitment:

• Employment exchange

• Direct recruitment (through advertisement, etc.)

• Internal promotion/selection

• Transfer on deputation from public sector undertakings

IOCL – The internal hiring is a common feature amongst the PSU’s. IOCL
indulges in internal hiring for the staff and the managerial level. In both
cases promotion on basis of performance is a common factor. In fact in the
managerial level the merit is the only basis of internal recruitment. In case of
the non-managerial level it may be promotion or if the employee has added
some qualification to his skill set.

The internal hiring definitely is dependent upon the next level vacancy. As
the employee moves higher up the ladder up the ladder the recruitment at
the senior level becomes strictly merit based. Hence the promotions are
tougher. Also the success of succession planning is more relevant for the
senior people.

In IOCL,

Promotion involves a movement from a post in the higher grade alongwith


respective promotion channels specified for the purpose. Employees are
eligible for consideration for promotion within the same cadre/discipline on
completion of the prescribed eligibility period and attainment of satisfactory
standards in conduct & performance.

48
Promotions are effected based on the following criteria:

• Performance of reflected in appraisal/confidential reports.

• Qualification

• Seniority

• Discipline viz. clearance from vigilance and disciplinary angle.

Transfer

The services of all employees are transferable to any place in India in the
service of the corporation at the discretion of the Management.

In IOC, main considerations and need for transfer of officers

• Organisational recruitment in terms of functional and managerial skill


for manning various positions;

• Exigencies of corporation’s work;

• Filling in vacancies consequent upon promotion of officers or on


creation of new posts;

• Rotational assignment aimed at career development of officers;

• Demand at a particular location requiring specialized knowledge or


experience.

• Officers having direct public dealings are also normally considered for
transfer after 3-4 years on a particular post etc.

Direct recruitment to officer’s posts in various disciplines at the lowest


inducting level is made on all-India basis through competitive tests once in
two years at the Headquarters of Refineries Division at New Delhi. Selection
of candidates is made through written test, group discussion/group task and

49
personal interview. The selected candidates are distributed among the
separate Division of IOC (It has 3 Divisions viz. Refineries Division,
Marketing Division & Pipelines Division) depending upon manpower
requirements.

An outside professional agency in the recruitment field is engaged for


conducting written test on behalf of IOC. Similarly faculty members at the
level of professors are drawn from Delhi University for Conducting GD/GT.
The selection committees comprising senior executives of IOC are
constituted for conducting personal interviews.

Various activities undertaken for conducting recruitment exercises

Nomination of professional agency

• Preparation of scope of activities pertaining to written test to be


performed by the Agency

• Constitution of Tender Committee for deciding nomination of Agency.

• Calling of quotation from the concerned parties

• Preparation of comparative statement of quotations

• Final nomination of the Agency

Release of Advertisements

• Preparation of draft advertisements

• Handling over the advertisement material to the Agency.

• Publication of Advertisement in selective newspapers throughout


India as well as the employment news through the Advertising
Agency.

50
Pre-written Test Activities by Agency

• Receipt of Applications through post box from Post Office.


Applications are invited from all parts of India Generally 3-4 weeks
time is given so that response is maximum. Also there are some
remote areas in India where courier service is not available hence
postal service takes normal 7 days time.

• Screening of Application

• Entry / processing of bio-data of candidates in computers in the


proforma prescribed by IOC.

• Printout of candidates eligible for appearing in written test-location


wise and discipline wise

• List of Ineligible candidates (Rejected Applications)

Setting of Question papers

• Setting of objective – type questions papers – one for General


Aptitude and one for concerned discipline. The question paper for
General Aptitude is common for all candidates.

• Printing of question papers (under tight security)

• Sealing and dispatch of question booklets to various test centers


(under tight security)

Admit cards for written test

• Preparation of material for Admit cards.

• Computer printing of Admit cards

• Despatch of Admit cards to eligible candidates

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Nomination of supervisors / officers

• Nomination of various supervisors and officers by the Agency as well


as TOC for supervision/irrigation at test centers.

• Preparation of Instruction Manual for information and guidance of


nominated officers.

• Setting up of a central room at Headquarters

Conducting of Written Test

• Written test of 2 hrs. duration is conducted at all the venues in 16


different cities (as on date) throughout India on a specified date the
number of venues / cities vary depending upon the number of
candidates appearing in the test & other related factors.

• Feedback about attendance of candidates in Written Test is given to


Control Room.

• Correction and dispatch of Answer sheets under sealed by the


Agency to its Headquarter at New Delhi.

Evaluation of Answer Sheets

• Evaluation of answer sheets for respective discipline by the Agency.

• Despatch of results of writer test in order of merit to TOC for deciding


cut-off marks for short listing the candidates for GD/GT and interview.

Despatch of letters for GD/GT & Interview

• Handling of craft letter for printing by the Agencies

• Despatch of call letters to candidates for GD/GT and interview in 4


metro cities viz – Delhi, Mumbai, Chennai, Kolkota.

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Conducting of GD/GT & Interview

• Simultaneous conducting of GD/GT and interview in 4 metro cities.

• The certificate and other documents of the candidates are verified on


the specified interview date at the venue itself.

• Declaration Forms duly filled in by the candidates along with copies of


relevant documents are make over to the selection committee
members before interview.

• Candidates appearing in GD/GT and Interview are reimbursed rail are


limited to Ist class/II ties AC by the shortest route at the venue on
production of documentary proof thereof.

Selection Procedure :

The selection methodology comprises three stage process written test,


GD/GT & personal interview for judging different faults of knowledge, skills,
attitude and aptitude. Candidates will have to pass through each stage
successfully before being judged suitable for selection. Each stage of
selection is treated as qualifying/elimination at the stage of written test, the
cut-off percentages of marks for each deceptive and category are decided
taking into account the number of vacancies, reservation requirements and
of candidates in the concerned disruptive.

These candidates are required to appear both GD/GT & interview respective
of their performance, since these two stages of selection are conducted
independent of each other. However, they are required to score minimum
presented markets both in GD/GT and interview acting, which they are
disqualified at the tune of preparing the select panel.

Preparation of Overall Results

• Compilation of marks obtained in written test, GD/GT and interview.

• Preparation of select panel of candidates in order of merit for each


discipline and category.

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• Distribution of selected candidate among different dimension of TOC,
depending upon manpower requirements.

Role of Top Management

IOCL’s top management takes a lot of initiative in the interview process .


The management also makes efforts to contribute to an efficient recruitment
process. In order to encash on the experience and skills of the Ex Executive
directors or retired directors, the company involves them in the recruitment
process . Not only does it save the energy and effort of the company but
also allows the inputs of the more experienced set of Top level people .

For the staff level the regional head or the line management is involved in
the recruitment process. In case of recruitment through advertisement the
top management plays a significant role in the final interview process.

Organizational and environmental factors affecting recruitment

Factors like organizational image do not effect the recruitment process a


great deal because as it the companies have a limited budget allotted for the
recruitment process.

Relations with labor unions have little affect on the recruitment process. The
cost associated with recruitment is a very important factor. The budgets
allotted at the beginning of the recruitment process are an in depth
evaluation of the financial situation of the company . Hence in case of
recruitment through advertisements the cost incurred is very high.

Government deciding on the quotas for Scheduled Cast/Scheduled Tribe


/Other backward classes definitely affects the manpower planning & hence
the quality of people being recruited.

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LIMITATIONS OF STUDY

The study on recruitment and selection practices at Indian Oil Corporation


Limited (IOCL) involve the study of all the divisions of IOCL due to time
constrain the study was not extended to the recruitment and selection of
division IOCL outside Delhi, Gwahati, Baroda etc.

Due to time constrains a discussions could not be held with other employees
as to their personnel level of satisfaction from the recruitment and selection
practices and procedures.

Also there is a lot of heavy bias attached with the responses because of
personnel experience. The people interview there is from GM's to Executive
directors to head personnel. Hence the inputs would vary greatly amongst
them due to the difference in level of authority and experience.

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CONCLUSIONS
With the liberalization bringing in new talent and increased competition ,
recruitment has taken strategic dimensions . The overall aim of the
recruitment & selection process should be to obtain at minimum cost the
number and quality of employees required to satisfy the human resource
needs of the company.

It is evident from the study that organisation ‘s which have responded to the
change in the environment by reviewing its functions have attained success .
IOCL draw their manpower extensively . These manpower plans have close
linkages with the corporate objectives and business plans . These are drawn
after a detailed analysis following a sanction.

The budget and the sanctions heavily determine the recruitment pattern in
the PSU’s . Being a PSU also limits its strategies undertaken to market the
image of the company . Also it has to meet the quotas set for SC/ST by
government. Till a year back Campus recruitment was very much there but it
has been discontinued as it was felt there was some biasedness attached to
it as IOCL visits only Premier Institutes.

In case of recruitment through advertisement the candidates are screened


via written test which is outsourced to an agency . This agency is only
broadly communicated about the requirements . The final interview is held
by the organisation.

Internal hiring is there for managerial level which may or may not involve the
written test

The Top management is involved in the recruitment process . The evaluation


process involves the assessment of all factors from Education to
experience , mobility etc, the weightage differs depending upon the nature of
the job.

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IOCl also has taken lead to make its recruitment & Selection procedure more
efficient. It is in the process of making it on –line registration & also results of
the examination can been seen by candidates on internet.

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REFRENCES

• Robins, D ( 1998) : HUMAN RESOURCE MANAGEMENT. Prentice


Hall, New York.

• John M Ivancevich : HUMAN RESIRCE MANGEMENT, Irvin Chicago,


London

• Jose P Abraham, 1998, "To Grapple With Attrition" , Human Capital

• J.M.Rao, 1998, "Scouting for Talent " , Human Capital

• Raymond A.Noe, John R. Hollenbeck, Bary Gerhart, Patrick M Wright :


HUMAN RESORCE MANAGEMENT "

• Tojo Jose, 1999, "Heading Towards the Best"

• Wendell L.French, 1994 : HUMAN RESORCE MANAGEMENT

• Findings of the BT - MBL - RCG qualitative survey, 1996, "the Business


Today -Experimental Guide To Recruitment" Business Today, Jan 7-21

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QUESTIONAIRE
1.What all methods of recruitment being adopted at IOCL

 Direct Recruitment  Employee Referral


 Employee exchange  Transfers
 All the above

2. What kind of a recruitment process gives you the best results according to
you ?

3. How do you tailor your manpower plan and companies business plans?

4.Do you think there has been a change in recruitment process over the
years in IOCL.

 Yes  No

5. Do you think the direct recruitment process is quite long ?

 Yes  No

6. Internal hiring helps in motivating the employees

 Yes  No

7. Do you think IOCL recruitment & selection process is quite rigid in terms
of eligibility criteria's

 Yes  No

8. In selection Process , do you think innovative techniques ( like stress level


test , pschyometric Test ) should be adopted .

 Yes  No

9. Has Government interference in deciding the quotas for SC/ST affected


the manpower planning ?

 Yes  No

10. What techniques are used to gauge the capabilities and aptitudes of
candidates?

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11. Who and which levels form the interviewing panel? On what basis is the
above chosen?

12. How are resumes screened and filtered?

13. On what factors is the candidate assessed in terms of fit for a job?

 Education  Experience
 Career expectations  National mobility
 Compensation  All the above

14. Does the company undertake subjective assessments of personality


and communication ability?

15. What are the organizational factors which effect the recruitment process
in your organisation:

 Organisational Image  Relations with labor unions


 Cost associated with recruitment  Others…..

16. How do think the environmental factors have affected your recruitment
process:

- Labor market
- Economic trends
- Social attitudes
- Regulations
- Unions

17. Does the company propagate ideas like “ Come Grow with us” , “
learning environment”?

18.How important is job definition in the recruitment process? Does it


precede it?

19.Are the success factors and fatal flaws considered such as

• Ability to lead people


• lack of perseverance and drive
• tendency to loose control under pressure

20. What measures are taken to propagate “ career development “ within


and outside the organisation ?

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