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SUMMER TRAINING REPORT ON “RECRUITMENT PROCESS IN BHEL”

Submitted in partial fulfillment for the requirement for award of the degree of Master of Business Administration (2011-13)

Submitted To: Mr. Girish Vats HR Officer HEEP, Hardwar.

Submitted By: KARMVEER SINGH MBA- III Sem. RIPM,HARIDWAR

RAMANAND INSTITUTE OF PHARMACY & MANAGEMENT HARIDWAR ( 2011-13)

PREFACE

The present project work “Recruitment and Selection Process of ”BHEL” carried out on “BHEL”. The recruitment and selection procedure of the BHEL determines the level of achieving organizational goals in the long run. The people to be placed for the right job, which reflects some of the unique ways for recruiting the candidates to fill up various vacancies. BHEL is to achieve overall organizational goal not only by way of fulfilling the targeted top line but also employee satisfaction towards various position of job to the maximum level. The policy asserts the objectives of the recruitment and provides a framework of implementation of their recruitment programme in the form of procedures. From the analysis of recruitment and selection procedure it is clear that for recruiting employees BHEL mainly conduct written examination followed by interview.

AKNOWLEDGEMENT

I am highly grateful to the HR manager of BHEL, who spends some of his valuable time with me to give the relevant data and information about the organization.I would like to thank who through more light in my project by giving the proper guidance and reference. At the same time I am also highly grateful to all the employees who spend their valuable time and help me and express their own views about the recruitment and selection process of BHEL. Finally I am thankful to my project guide Mr. K. K CHAUHAN (HR Manager) and Mr. L. S. KWEERA who helped me in the step of my project. Without his guidance I could not have been completed my project within the stipulated time. I hope that, this entire study work gave me enough exposure and relevant information about recruitment and selection process of BHEL. I am again waiting to accept such project in future for more and better learning.

With sincere thanks :KARMVEER SINGH MBA- III Sem. RIPM,HARIDWAR

EXECUTIVE SUMMARY

Recruitment and selection process involves communicating to extreme accuracy the needs and requirements of employers to employees. Employees evaluate organization’s brand, workplace, etc. before joining the organization. Selecting and retaining potential employees in today’s war for talent poses a challenging task for HR professionals. Communication also helps the organization to reach a large pool of potential candidates that help HR professional to select the most competent employee that will fit into the organization’s work culture. and thus saves time and money. In today’s age, technical sector plays a very important role in ensuring a successful recruitment and selection process. It also helps to deliver quickly the information to large pool of talents as well as receive their response in a short span of time. This also helps the organization to roll their recruitment and selection process in a short span of time, picking up the right candidate to fit in its organization. Communicating fully in the recruitment and selection process also helps the organization in eliminating unwanted application

OBJECTIVES OF STUDY

My primary objective here is to study and observe the recruitment and selection process of BHEL under the following heads: --1. Procedures followed in the recruitment process 2. Criteria of recruitment 3. Jobs specification 4. Various recruitment sources used by the BHEL i.e. both external and internal. 5. Recruitment sources preferred by the BHEL. 6. Channels used for displaying recruitment vacancies. 7. Is there any role of trade union in the.BHEL. 8. Is there any reservation for SCs, STs etc in the BHEL. 9. Current rate of employee’s turnover in the BHEL. 10. What steps did the BHEL takes to reduce the employee’s turnover rate. 11. Steps used in selection procedures. 12. Is there any changes made in recruitment and selection procedures during the last five years.

INTRODUCTION OF STUDY

The recruitment and selection procedure of the BHEL determines the level of achieving organizational goals in the long run. As per definition it is stated that which is all about selecting right person for the right job at the right time at the best possible position. Although it sounds quite simple but it is also not an easier job to evaluate a person with his ability and skills that may satisfy the core competency for the job so that his degree of willingness to pursue a job becomes positive. From job seeker’s prospective it is the core competencies which matter much for a job. So it is the effective recruitment and selection procedure which determines not only the right candidature for a job but also a long-term accomplishment of organizational goals. In my research based on my questionnaire filled by the employees I came to know the different techniques adopted by the BHEL towards this effect. I have chosen BHEL, which is national giant for studying their methods of recruitment and selection function. The aim of the BHEL is to achieve overall organisational goal not only by way of fulfilling the targeted topline but also employee satisfaction towards various position of job to the maximum level. This I will see as I proceed subsequently in my project.

SCOPE OF THE PROJECT

 To understand the extant process of BHEL for different categories of employees

 Restricted to study of the Recruitment process as it is

 Main thrust is provided on Artisan Recruitment conducted at Unit Level

LIMITATIONS OF THE PROJECT

 Only process followed is studied & not the other aspects  No practical exposure of the activities since activities were already over

DECLARATION

I hereby declare that the study entitled “Recruitment process” in the context of H.E.E.P. BHEL being submitted by me in the partial fulfillment of the requirement for the award of Master of Business Administration by RIPM, Haridwar is a record of my own work. The study was conducted at finance department, H.E.E.P. BHEL. The matter embodied in this project report has not been submitted to any other university or institution for the award of degree.

(KARMVEER SINGH)

B.H.E.L. A CORPORATE GIANT

Established in the late 50's BHARAT HEAVY ELECTRICALS LIMITED (BHEL) is a name which is recognized across the industrial world. It is one of the largest engineering and manufacturing enterprises in INDIA and is one of the leading international companies in the power field. BHEL offers a wide spectrum of products and services for core sectors like power transmission, industrial transportation, oil and gas, telecommunication etc. Besides supply of nonconventional energy systems. It has also embarked into other areas including defence and civil aviation. A dynamic 63000 strong team embodies the BHEL philosophy excellence through continuous striving for state of the art technology. With corporate headquarters in NEW DELHI, fourteen manufacturing units, a wide spread regional services network and projects sites all over India and even abroad, BHEL is India's industrial ambassador to the world with export presence in more than 50 countries. BHEL's range of services extent from project feasibility studies to after sales services, successfully meeting diverse needs through turnkey capability. BHEL has had a consistent track record of growth, performance and profitability. The World Bank in its report on the Indian Public Sectors, has described BHEL as “one of the most efficient enterprises in the industrial sector, at par with international standards of efficiency". BHEL has acquired ISO 9000 certificate for most of its operations and has taken up Total Quality Management (TQM). All the major units/divisions of BHEL have been upgraded to the latest ISO-9001: 2000 version quality standard certification for quality management. All the major units/divisions of BHEL have been awarded ISO-14001 certification for environmental management systems and OHSAS-18001 certification for occupational health and safety management systems. BHEL occupies an all-important niche as evident by its ranking by CII amongst top eight PSUs based on financial performance. Recently in survey conducted by business India, BHEL has been rated as seventh Best Employer in India.

International Business:BHEL has, over the years, established its references in over 60 countries of the world. These references encompass almost the entire range of BHEL products and services, covering Thermal, Hydro and Gas based turnkey power projects, substation projects, and rehabilitation projects; besides a wide variety of products like: Transformers, Compressors, Valves and Oil field equipment, Electrostatic Precipitators, Insulators, Heat Exchangers, Switchgears, Castings and Forgings etc. Some of the major successes achieved by BHEL have been in Gas-based power projects in Oman, Libya, Malaysia, Saudi Arabia, Iraq, Bangladesh, Sri Lanka, China, Kazakhstan; Thermal Power Projects in Cyprus, Malta, Libya, Egypt, Indonesia, Thailand, Malaysia; Hydro power plants in New Zealand, Malaysia, Azerbaijan, Bhutan, Nepal, Taiwan and Substation projects & equipment in various countries. Execution of these overseas projects has also provided BHEL the experience of working with world-renowned Consulting Organizations and Inspection Agencies. The Company has been successful in meeting demanding requirements International markets, in terms of complexity of the works as well as technological, quality and other requirements viz. HSE requirement, financing package, associated O&M services to name a few. BHEL has proved its capability to undertake projects on fast-track basis. BHEL has also established its versatility to successfully meet the other varying needs of various sectors, be it captive power, utility power generation or for the oil flexibility to exhibited adaptability by manufacturing and supplying intermediate products.

B.H.E.L. IN INDIA # REGIONAL OFFICES (POWER SECTORS) *********************************** 1. NEW DELHI (NORTHERN REGION) 2. CALCUTTA (EASTERN REGION) 3. NAGPUR (WESTERN REGION) 4. CHENNAI (SOUTHERN REGION) # BUSSINESS OFFICES ******************* 1. 2. 3. 4. 5. 6. 7. 8. 9.
10. 11. 12.

BANGLORE BARODA BHUBANESHWAR MUMBAI CALCUTTA CHANDIGARH GUWAHATI JABALPUR JAIPUR LUCKNOW CHENNAI NEW DELHI

13.

PATNA

# MANUFACTURING UNITS 1. 2. 3. 4. 5. 6. 7. 8. 9. BANGALORE BHOPAL GOINDWAL HARIDWAR HYDERABAD JAGDISHPUR JHANSI RUDRAPUR RANIPET

10. TIRUCHIRAPALLY # SERVICE CENTRES 1. 2. 3. 4. 5. 6. 7. 8.
9.

BANGLORE BARODA CALCUTTA CHANDIGARH SECUNDRABAD NEW DELHI NAGPUR PATNA VARANASI

COMPANY PROFILE

BHEL is India's largest engineering company and one of its kind in this part of the hemisphere. It manufactures a wide range of state of the art power generation equipment and systems besides equipment for industry, transmission, defence, telecommunication and oil business. The first plant of BHEL was set up in Bhopal in 1956, which signaled the dawn of the heavy electrical industry in India. In the early 60's three more major plants were set up in Haridwar, Hyderabad and Tiruchirapalli. The company now has 14 manufacturing divisions, 10 services centers and power sectors regional centers besides project sites spread all over India and also abroad to provide prompt and effective service to customers. BHEL's business broadly covers conversions, transmission, utilizations and conservation of energy in core sectors of economy that fulfill vital infrastructure needs of the country. Its product have established an enviable reputation of high quality and reliability, which is largely due to emphasizes placed all along on contemporary some of the best technologies of the world from the leading companies in U.S.A., EUROPE, and JAPAN together with technologies from its own R&D centers technologies B.H.E.L. has consistently upgraded its design and manufacturing facilities to international standards by acquiring and assimilating.

VISION

A WORLD-CLASS, INNOVATIVE, COMPETITIVE AND PROFITABLE ENGINEERING ENTERPRISE PROVIDING TOTAL BUSINESS SOLUTIONS.

MISSION

TO BE THE LEADING INDIAN ENGINEERING ENTERPRISE PROVIDING QUALITY PRODUCTS SYSTEM AND SERVICES IN THE FIELDS OF ENERGY, TRANSPORTATION, INDUSTRY, INFRASTRUCTURE AND OTHER POTENTIAL AREAS.

VALUES

• • • •
• •

MEETING COMMITMENTS MADE TO EXTERNAL AND INTERNAL CUSTOMERS. FOSTER LEARNING, CREATIVITY AND SPEED OF RESPONSE. RESPECT FOR DIGNITY AND POTENTAIL OF INDIVIDUALS. LOYALTY AND PRIDE IN THE COMPANY. TEAM PLAYING. . INTEGRITY AND FAIRNESS IN ALL MATTERS. .

BUSINESS MISSION

To maintain a leading position as suppliers of quality equipment, systems and services in the field of conversion of energy, for application in the areas of electric power transportation, oil and gas exploration and industries. Utilize company's capabilities and resources to expand business into allied areas and other priority sectors of the economy like defence, telecommunications and electronics.

BUSINESS OBJECTIVES GROWTH: To ensure a steady growth by enhancing the competitive edge of BHEL defence, telecommunication and electronics in existing business, new areas and international operations so as to fulfill national expectations from BHEL. PROFITABILITY: To provide a reasonable and adequate return on capital employed, primarily through improvements in operational efficiency, capacity utilization productivity and generate adequate internal resources to finance the company's growth.

CUSTOMER FOCUS: To build a high degree of customer confidence by providing increased value for his money through international standards of product quality, performance and superior services.

PEOPLE- ORIENTATION: To enable each employee to achieve his potential, improve his capabilities, perceive his role and responsibilities and participate and contribute positively to the growth and success of the company. To invest in human resources continuously and be alive to their needs. TECHNOLOGY: Achieve technological excellence in operations by development of indigenous technologies and efficient absorption and adaptations of imported technologies to suit business need and priorities and provide the competitive advantage to the company. IMAGE: To fulfill the expectations which stakeholders like government as owner, employees, customers and the country at large have from BHEL.

CONTRIBUTION OF BHEL IN VARIOUS CORE SECTORS BUSINESS SECTORS: BHEL's operations are organized around three business sectors, mainly power, industry and international operations. This enables BHEL to have a strong customers orientation, to be sensitive to his needs and respond quickly to the changes in the market. POWER SECTORS: Power is the core sector of BHEL and comprises of thermal, nuclear gas, diesel and hydro business. Today BHEL supplied sets, accounts for nearly 66 % of the total installed capacity in the country as against nil till 1969-70. BHEL manufactures boilers auxiliaries, TG sets and associate controls, piping and station C & I up to 500 MW rating with technology and capability to go up to 1000 MW range. The auxiliary products high value capital equipment like bowl and tube mills, pumps and heaters, electrostatic precipitators, gravimetric feeders, fans, valves etc. BHEL has contracted so far around 240 thermal sets of various ratings, which includes 14 power plants set up on turnkey basis. Nearly 85 % of World Bank tenders for thermal sets floated in India have been won by the company against international competition.

BHEL has adopted the technology to the needs of the country and local conditions. This has led to the development of several technologies in house. The fluidized bed boiler that uses low graded high-ash abrasive Indian coal is an outcome of such an effort. With large-scale availability of natural gas and the sudden increase in demand, BHEL began to manufacture gas turbines and now possesses two streams of gas turbine technology. It has the capability to manufacture gas turbines up to 200 MW rating and custom built combined cycle power plants. Nuclear steams generators, turbine generators, sets and related equipment of 235 MW rating have been supplied to most of the nuclear power plants in India. Production of 500 MW nuclear sets, for which orders have been received. BHEL has developed expertise in renovation and maintenance of power plant equipment besides specialized know how of residual life assessment, health diagnostic and life extensions of plants. The four power sectors regional centers at New Delhi, Chennai, Kolkata and Nagpur will play a major role in giving a thrust to this business and focus BHEL's efforts in this area. INDUSTRY SECTORS:BHEL is a major producer of large size thyristor devices. The products include centrifugal compressors, high speed industrial drive turbines, industrial boilers and auxiliaries, waste heat recovery boilers, gas turbines, electric motors, drives, and control equipments, high voltage transformers, switch gears and heavy castings and forgings.

Company in India with the capability to make simulators for power plants, defence industrial process plants and other applications. An entry has been made in aviation industry for which BHEL has set up facilities and is now producing two seater aircraft. TRANSMISSION:A wide range of transmission products and systems are produced by BHEL to meet the needs of power transmission and distribution sector. These include: • Dry Type Transformers

• • • •

SF6 Switch Gears 400 KW Transmission Equipment High Voltage Direct Current System Series and Shunt Compensation Systems

In anticipation of the need for improved substations, a 33 KV gas insulated sub station with micro processors base control and protection system has been done.

TRANSPORTATION:65 % of trains in Indian Railways are equipped with BHEL's traction and traction control equipment. These include: • • • • Broad Gauge 3900 HP AC / DC locomotives Diesel Shunting Locomotives up to 2600 HP 5000 HP AC Loco with thyristor control Battery Powered Road Vehicles and Locomotives

RESEARCH AND DEVELOPMENT:BHEL has a corporate R & D center supported by R & D groups at each of the manufacturing divisions. The dedicated effort of BHEL's R & D engineers have produced several new products like automated storage retrieval system automated guide vehicles for material transportation etc. Establishment of Asia's largest fuel evaluation test facility at Tiruchi was high light of the year. This facility will enable evaluation of combustion, heat transfer and pollution parameters in boilers. Major R & D achievement include: • • Design manufacture and supply of countries first 17.2 MW industrial steam turbines. Development of 4700 HP AC / DC loco for Indian Railways.

• •

Development of largest capacitor voltage transformers of 8800 PF 400 KV rating. Development and application low cost ROBOTS for job loading/unloading.

According to ex- CMD Mr. R.K.D. Shah, "BHEL is spending Rs. 60 Crores on Research and Development. Earning from product which has been commercialized has gone up 26 % to Rs. 760 Crores."

Human Resource Development Institute:BHEL has envisioned becoming "A World Class Engineering Enterprise committed to enhancing stakeholder value". Force behind realization of this vision and the source of our competitive advantage is the energy and ideas of our 44,000 strong highly skilled and motivated people. The Human Resource Development Institute situated in NOIDA, a corner-stone of BHEL learning infrastructure, along with Advanced Technical Education Center (ATEC) in Hyderabad and the Human Resource Development Center at the manufacturing Units, through various organizational developmental efforts ensure that the prime resource of the organization – the Human Capital is “Always in a state of Readiness”, to meet the dynamic challenges posed by a fast changing environment. It is their constant endeavor to take the HRD activities to the strategic level of becoming active partner to the (organizational) pursuits of achieving the organizational goals.

TECHNICAL COLLABORATIONS

PRODUCT # Thermal Sets, Hydro Sets, Motors & Control Gears. # Bypass & Pressure Reducing Systems

COLLABORATIONS Prommashexport RUSSIA Sulzer Brother Ltd. SWITZERLAND

# Electronic Automation System for Steam Turbine & Generators # Francis Type Hydro Turbines

Siemens AG. GERMANY General Electric

CANADA # Moisture Separator Reheaters Baloke Duerr GERMANY # Christmas Trees & Conventional Well National Oil Well Head Assemblies, USA # Steam Turbines , Generators and Axial Condensers # Cam Shaft Controllers and Tractions Current Control Units Siemens AG. GERMANY Siemens AG. GERMANY

DIVISIONS OF BHEL There are 20 Divisions of BHEL, they are as follows: 1. 2. HEEP, Haridwar HPEP, Hyderabad

3. 4. 5. 6. 7. 8. 9.
10. 11. 12. 13. 14. 15.

HPBP, Tiruchi SSTP & MHD, Tiruchi CFFP, Haridwar BHEL, Jhansi BHEL, Bhopal EPD, Bangalore ISG, Bangalore ED, Bangalore BAP, Ranipet IP, Jagdishpur IOD, New Delhi 14. COTT, Hyderabad IS, New Delhi

16. CFP, Rudrapur 17. HERP, Varanasi 18. Regional Operations Division ARP, New Delhi 19. TPG, Bhopal
20.

Power Group (Four Regions and PEM)

MAJOR COMPETITORS OF BHEL

1. 2. 3. 4. 5. 6. 7. 8. 9.
10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21.

Ansaldo Asea Brown Boueri Beehtel Block & Neatch CNMI & EC Costain Electrim Energostio Electro Consult Franco Tosi Fuji GEC Alsthom General Electric Hitachi LMZ Mitsubishi Mitsui NEI Raytheon Rolls Royce Sanghai Electric Co.

Italy Switzerland USA USA China U.K. Poland Russia Italy France Japan U.K. USA Japan Russia Japan Japan U.K. USA Germany China

RECENT ACHIEVEMENTS OF BHEL

1. 2. 3. 4.

BHEL's R&D ops contribute Rs 1,151 cr to turnover in 2005-06 [May 19 2006] BHEL to manufacture 800 mw thermal sets [Apr 14 2006] BHEL inks agreement with IIT Madras for new courses [Apr 25 2006] BHEL secures Rs. 80 cr. export order from EETC [May 10 2006] Workers’ participation in management yields savings at BHEL, Haridwar , Nov 16. Management Board and will ensure an increased output of the generating units by as much as twenty per cent. Earlier, one unit each of the above machines was renovated and updated by the BHEL resulting in a similar output increase for these machines. More than a hundred sets of different capacities supplied by BHEL, Haridwar, are commissioned at various power stations all over the country. The hydro sets are tailor-made to suit varying hydroelectric parameters. Mr. Dhar said that at the Haridwar Plant, excellent engineering and manufacturing facilities are available to supply kaplan, francis, pelton and reversible hydro turbines along with matching generators and associated equipment. (UNI)

BHEL net profit up 62 pc(the tribune,3 June 2006)
5. 6.

The Heavy Electrical Equipment Plant (HEEP) located in Haridwar, is one of the major manufacturing plants of BHEL. The core business of HEEP includes design and manufacture of large steam and gas turbines, turbo generators, hydro turbines and generators, hydro turbines and generators, large AC/DC motors and so on. Heavy Electrical Equipment Plant, Haridwar of this Multi-unit corporation with 7467 strong highly skilled technicians, engineers, specialists and professional experts is the symbol of Indo Soviet and Indo German Collaboration. It is one of the four major manufacturing units of the BHEL. With turnover of 164059 lacs and PBT of Rs.32489 lacs HEEP added 3000 MW of power to the National grid during 2005-06. HEEP is engaged in the manufacture of Thermal and Nuclear Sets up to 1000MW, Hydro Sets up to HT Runner dia 6300mm, associated Apparatus Control gears, AC& DC Electrical machines and large size Gas Turbine of 60-200 MW. HEEP Haridwar contributes about 44% of India’s total installed capacity for power generation with total capacity of Thermal, Nuclear & Hydro Sets of over 45000MW currently working at a Plant Load Factor of 76% and Operational Availability of 86%. Inspite of acute recession in economy, BHEL Haridwar received recent orders for Mejia5&6, Sipat, Bhatinda, Chandrapura, Bakreshwar, Santaldih, Bhilai, and Dholpur.

HISTORICAL PROFILE:The construction of heavy electrical equipment Plant commenced in Oct.”1963”after indo- soviet technical co-operation agreement in Sept.”1959”The first product to roll out from the plant was an electric motor in January 1967.This was followed by first 100 MW Steam Turbine in Dec.1969and first 100MW Turbo Generator in August 1971.The plant’s “break even” was achieved in March 1974.BHEL went in for technical collaboration with M/s Siemens, Germany to undertake design and manufacture to large size thermal sets upto a unit rating of 1000 MW in the year 1976.First 200 MWTG set was commissioned at Obra in 1977.The continuum of

technological advancement subsequently saw the commissioning of 500 MW TG Set in 1984 .The technical cooperation of Gas Turbine manufacture was also signed with M/s Siemens Germany. First 150 MW ISO rating gas Turbine was exported to Germany in Feb”1995”.Our 250 MW thermal set up at Dahanu Plant of BSES made a history by continuous operation for over 150 days and notching up a record plant load factor greater than 100%. KEY COMPETITORS:Power Sector Giant of the World viz. Siemens Germany, ABB, General electric of USA etc. are the major competitors of HEEP. All these are the MNC’s and enjoy huge financial and R&D backup. CORPORATE CITIZEN:HEEP Haridwar’s Strategic plans and its policy & strategy are commensurate with BHEL Corporate / strategic Plan . As first PSU to adopt Corporate Planning as a process . Board meetings for long –range development , BHEL has always guided other PSU’s in their Corporate planning process .Board meeting , monthly Management Committee meetings, Annual Revenue Budget exercise , Mid term reviews , Apex TQ council reviews, Personnel Heads Meet, Quality Heads Meet , Technology Meets , Product committees meetings, Inter-Unit Quality Circle Meets etc. are the some of crore strengths of BHEL Corporation’s vast network.

KEY CUSTOMERS AND SUPPLIERS:HEEP’s customer profile ranges from State Electricity Boards,Government Power utilities like NTPC, NPC, NHPC to IPPs like Reliance Energy. HEEP has also supplied Gas Turbine sets to overseas customers in Libya & Iraq. Power Sector Regions of BHEL are its key internal customers. In view of expected market scenario,BHEL has strategically decided that HEEP will concentrate on coal based Higher Rating Thermal Sets for domestic market to fulfil the country’s vision of adding 107,000 MW capacity to achieve ‘Power on Demand’ by 2012. Our key customer, NTPC has drawn up plan for capacity addition of 20,000MW by 2012. HEEP has planned for execution of 34,619MW by 2012.

FAVOURABLE BUSINESS ENVIRONMENT:Power Sector has to grow over 10% annually to reach the 7% GDP level. Thus, the demand for thermal sets will remain high. Central Electricity Authority (CEA) is the guiding authority for Power Sector strategies in our country. BHEL representatives, along with representatives from various domestic customers, are an integral part of various committees formed by CEA. This enables us to guide and understand the market requirements and future challenges. To meet the 11th Five Year Plan target of adding 61,000MW, CEA has planned addition of 23 nos. standardized 500MW sets for faster project execution and cost reduction. BHEL, including HEEP, is a part of this process. CEA has standardized for the next capacity of 800MW sets and has asked BHEL to prepare itself for manufacturing and supply in the 11th Five Year Plan. BHEL has tied up with Siemens for upgradation of technology. Further CEA’s stress on R&M of ageing Power Plants is also providing business opportunity to unit.

MAJOR CHALLENGES:The favorable business scenario has given the unit a major challenge of establishing Power Infrastructure of the country in close co-ordination with its key customers. HEEP has committed itself to meet the country’s requirements. To cater to the needs of higher rating sets of 800MW, HEEP has collaboration with Siemens. STRATEGIC CHALLENGES:• Key Business • Cycle time reduction • State of the art technology • Cost reduction

• Operational • Timely delivery • Material cost reduction • Productivity improvement • Effective utilization of machines • Human Resource • Motivation of employees • Skill & Knowledge management

MAJOR MILE STONES:1975 1978 1982 Job Redesign concept launched for FIRST time in India. well documented Suggestion Scheme launched. Launched Productivity Movement & Quality Circle. Concept

1993 1995 1997 1997 1998 1998

of ISO 9001 quality System. Adopted EFQM model of TQM for achieving Business Excellence. BHEL one of the 9 PSE’s declared “Navratna” by Govt. of India . National Productivity Award for HEEP by the President of India. Certificate of Merit by National Productivity Council for Outstanding Performance for 2nd consecutive year. Accreditation of U stamp.

1999 Accreditation of Stamp from National Board of Boiler and Pressure Vessel Inspector, USA . 1999 AD-Merkblatt HPO Recertification by RWTUV for Gas Turbine Combustion Chambers 1999 1999 1999 1999 2000 2001 2001 2001 INSAAN Award for Excellence in Suggestion for 9th consecutive year Launching of 5s concept PCRI recognized as Environmental Lab by Haryana State Board for Prevention and Control of Pollution Accreditation of ISO 14001-Enviornment management system CII Site Visit for CII-EXIM Business Excellence Award-2000 Top Management TQM Workshop at Rishikesh and HRDC INSAAN Award for excellence in Suggestion for 11th consecutive year Launching of QTM & RCA at HEEP Haridwar by CMD Index 2002 Launching of delivery Index, Turnover Index and Manufacturing 2002 JBE Workshop of Apex TQM Group at Theri to evolve Business policy

2003 2004

Commendation for Strong Commitment to Excel in CII-EXIM Bank Award Commendation for Significant Achievement in CIIEXIM Bank Award.

2005

Award given by Institute of Cost and Works Accountants of

India for "Excellent Work in the field of Management Accounting and Cost Concepts".

2006

BHEL celebrated it’s 50 years in August 2006.

STRENGTH (S): • • • Low cost producer of quality equipment due to cheap labour and fully depreciated plants. Flexible manufacturing set up. Entry barrier due to high replacement cost of its manufacturing facilities.

WEAKNESSES (W): • • High working capital requirement due to its exposure to cash starved SEBs (State electricity boards) and High WIP. Inability to provide project financing. OPPORTUNITIES (O): • • High-expected growth in power sectors (7000 MW/p.a. needs to be added) High growth forecast in India’s index of industrial production would increase demand for industrial equipment such as motors and compressors.

THREATS (T): • • Technical suppliers are becoming competitors with the opening up of the Indian economy. Fall in global power equipment prices can effect profitability.

RESEARCH METHODOLOGY

The purpose of the methodology is to describe the research procedure. This includes overall research design, the sampling procedure, the data collection method, and the fried methods and analysis procedure. respondents have been taken for convenience. The sample procedure chosen for this are statistical sampling method. Here randomly employee’s are selected and interviewed. An in depth interview is conducted with the Human Resource Head. Information, which I collected, was based on the Out of total universe 36 questionnaires filled up by the sample employees. Under secondary method I took the help of various reference books which I have mentioned in bibliography and also by way of surfing through the BHEL website. Sample size and the methodology I adopted is shown in the following diagram.

SAMPLE SIZE

Employees 36 H R Manager 1 Senior Manager 1

Research Undertaken

Primary Research

Secondary Research

In-depth Interview

Questionnair es for employees

Internet browsing

Referenc e Books

RELEVANCE OF RECRUITMENT AND SELECTION PROCEDURES IN HR

Recruitment and selection procedure is a vital factor of an organization. If it is not done properly the production procedure will be hampered. Hence productivity will fall down. So the organization will be in trouble and it will affect the employer- employee relationship. So recruitment and selection procedure should be done in proper and correct manner. The new candidates should timely replace the vacant post so that the production of the BHEL does not hamper. By this the productivity will increase and the organization will gain profit. So the employer will be happy and will not hesitate to distribute bonus and increments to the workers. The workers will also be more motivated to work. Hence there will be harmonious relationship in the organization. It will also stabilize the organization in the long run.

MY OBJECTIVE OF STUDYING RECRUITMENT AND SELECTION FOR MY STUDY – JUSTIFICATION Basically recruiting is the discovering of potential candidates for actual or anticipated organizational vacancies. It also can be said in another way that bringing together those with jobs to fill and those seeking jobs. It is important to study Recruitment and Selection because through it I can identify our human resource needs. I can know what kind of people must be selected to fill up the specified vacancies. The ideal recruitment effort will attract a large number of qualified applicants who will take the job if it is offered. It should also provide information so that unqualified applicants can self select themselves out of job candidacy, that is, a good recruiting program should attract the qualified and not attract the unqualified. Recruiting people is done by various ways, for the study first I have to know the recruiting sources. There are internal and external sources as well as employee referrals/recommendation. In this project I am studying recruitment and selection process of.BHEL to find out actual recruitment and selection process of a BHEL Company is my main objective of study. Earlier

various studies are made in automobiles industries, pharmaceuticals industries and others. But this time I am settled my mind to study this for a public sector company to understand the image of the organization, attractiveness of the job, internal policies, about the union Govt. requirement recruiting budgets etc. Through this kind of surveys I will be able to achieve real recruitment program of BHEL where for all kinds of operational level technical qualification is needed. I also have the picture of Selection cost of the BHEL.It is very interesting to study recruitment and selection process as it will give me light when I will work in HR department in my future corporate life. That’s why I choose this topic THEORETICAL PERSPECTIVE RECRUITMENT AND SELECTION PROCESS Recruiting is the discovering of potential applicants for actual or anticipated organizational vacancies. In other words, it is a ‘linking activity’ bringing together those with job and those seeking jobs. As Yodel and other point out: “Recruitment is a process to discover the sources of manpower to meet the requirements of the staffing schedule and to employ effective measures for attracting that manpower in adequate numbers to facilitate effective selection of an efficient working force.” Recruitment has been regarded as the most important function of personnel administration, because unless the right type of people is hired, even the best plans, organization charts and control systems would not do much goods. Flippo views recruitment both as ‘positive’ and ‘negative’ activity. He says: “It is a process of searching for prospective employees and stimulating and encouraging them to apply for jobs in an organization. It is often termed positive in that it stimulates people to apply for jobs to increase the ‘hiring ration’, i.e., the number of applicants for a job. Selection, on the other hand tends to be negative because it rejects a good member of those who apply, leaving only the best to be hired”.

FACTORS AFFECTING RECRUITMENT Most of the organizations, whether large or small, do engage in recruiting activity, though not to the same extent. This differs with: 1. The size of the organization;

2. The employment conditions in the community where the organization is located; 3. The effects of past recruiting efforts which show the organization’s ability to locate and keep good performing people; 4. Working conditions and salary and benefit packages offered by the organization – which may influence turnover and necessitate future recruiting; 5. The rate of growth or organization; 6. The level of seasonally of operations and future expansion and production programs; and 7. Cultural, economic and legal factors, etc. Factors governing recruitment may broadly be divided as internal and external factors. The internal factors are: (i) (ii) (iii) (iv) (v) Recruiting policy of the organization; Human resource planning strategy of the HDFC BANK ; Size of the organization and the number of employees employed; Cost involved in recruiting employees, and finally; Growth and expansion plans of the organization.

The external factors are: (i) (ii) (iii) Supply and demand of specific skills in the labor market; Political and legal considerations such as reservation of jobs for SCs, STs, and so on. BHEL image-perception of the job seekers about the BHEL.

CONCEPT REGARDING RECRUITMENT Recruitment is a two-way street: it takes a recruiter and a recruitee. Just as the recruiter has a choice whom to recruit and whom not, so also the prospective employee has to make the decision if he should apply for that organization’s job. The individual makes this decision usually on three different basis, the objective factor, critical contact, and subjective factor. “The objective factor theory views the process of organizational choice as being one of weighing and evaluating a set of measurable characteristics of employment offers, such as pay, benefits,

location, opportunity for advancement, the nature of the work to be performed, and educational opportunities.” “The critical contact theory suggests that the typical candidate is unable to make a meaningful differentiation of organization’s offers in terms of objective or subjective factors, because of his limited or very short contact with the organization. Choice can be made only when the applicant can readily perceive the factors such as the behavior of the recruiter, the nature of the physical facilities, and the efficiency in processing paper work associated with the application.” “The subjective factor theory emphasis the congruence between personality patterns and the ‘image’ of the organization, i.e., choices are made on a highly personal and emotional basis.” STEPS ON RECRUITMENT PROCESS As was mentioned earlier, recruitment refers to the process of identifying and attracting job seekers so as to build a pool of qualified job applicants. The process comprises five inter-related stages, viz., (i) Planning, (ii) Strategy development, (iii) Searching, (iv) Screening, and (iv) Evaluation and control

STEPS OF RECRUITMENT PROCESS

Personal Human Resource Planning

Recruiting Needs Personnel

Selecting Qualified Personnel

Placing New Employees on Job

Developing Sources of Potential Employees External Internal Sources

Search For Potential Employees Souting Advertising Employee Job Posting Personnel Referrals Research

Evaluating Recruiting Evaluating For New Promoting in Same Transferring Higher Job Upgrading toToSelection Effectiveness Responsibilities Position

SOURCES OF RECRUITMENT

Before an organization activity begins recruiting applicants, it should consider the most likely source of the type of employee it needs. Some companies try to develop new sources, while most only try to tackle the existing sources they have. These sources, accordingly, may be termed as internal and external. INTERNAL SOURCES Internal sources are the most obvious sources. These include personnel already on the pay-roll of an organization, i.e., its present working force. Whenever any vacancy occurs, somebody from within the organization is upgraded, transferred, promoted or sometimes demoted. This source also includes personnel who were once on the pay-roll of the BHEL but who plan to return or whom the BHEL would like to rehire, such as those on leave of absence, those who quit voluntarily, or those on production lay-offs.

Merit: The use of an internal source has some merits: (i) It improves the morale of employees, for they are assured of the fact that they

would be preferred over outsiders when vacancies occur. (ii) The employer is in a better position to evaluate those presently employed than

outside candidates. This is because the BHEL maintains a record of the progress, experience and service of its employees. (iii) It promotes loyalty among the employees, for it gives them a sense of job security

and opportunities for advancement. (iv) As the persons in the employment of the BHEL are fully aware of, and well

acquainted with, its policies and know its operating procedures, they require little training, and the chances are that they would stay longer in the employment of the organization than a new outsider would. (v) (vi) They are tried people and can, therefore, be relied upon. It is less costly than going outside to recruit.

Demerits: However, this system suffers from certain defects as well. (i) It often leads to inbreeding, and discourages new blood from entering an

organization. (ii) There are possibilities that internal sources may “dry up”, and it may be difficult to

find the requisite personnel from within an organization. (iii) Since the learner does not know more than the lecturer, no innovations worth the

name can be made. Therefore, on jobs which require original thinking (such as advertising, style, designing and basic research), this practice is not followed. (iv) As promotion is based on seniority, the danger is that really capable hands may not

be chosen. The likes and dislikes of the management may also play an important role in the selection of personnel. This source is used by many organizations; but a surprisingly large number ignore this source, especially for middle management jobs. In other words, this source is the lode that is rarely mined. It is not only reasonable but wise to use this source, if the vacancies to be filled are within the

capacity of the present employees; if adequate employee records have been maintained, and if opportunities are provided in advance for them to prepare themselves for promotion from “bluecollar” to "White-collar" jobs. EXTERNALSOURCES These sources lie outside the organization. They usually include: (i) New entrants to the labor force, i.e., young, mostly inexperienced potential

employees -the college students; (ii) (iii) (iv) groups. Merits: (i) External sources provide the requisite type of personnel for an organization, having skill, training and education up to the required standard. (ii) Since persons are recruited from a large market, the best selection can be made without any distinctions of caste, sex or color. (iii) In the long run, this source proves economical because potential employees do not need extra training for their jobs. Demerits: However, this system suffers from what is called “brain drain,” especially when, experienced persons are raided or hunted by sister concerns. METHODS OR TECHNIQUES OF RECRUITMENT Dunn and Stephens summarise the possible recruiting methods into three categories: direct, indirect and third party. DIRECT METHODS These include sending travelling recruiters to educational and professional institutions, employees’ contacts with public, and manned exhibits. One of the widely used direct methods is that of sending of recruiters to colleges and technical schools. Most college recruiting is done in cooperation with the placement office of a college. The placement office usually provides help in attracting students, arranging interviews, furnishing space, and providing student resumes. For managerial, professional and sales personnel, campus recruiting is an extensive operation. Persons The unemployed -with a wide range of skills and abilities; Retired experienced persons such as mechanics, machinists, welders; accountants; Others not in the labor force, such as married women and persons from minority

reading for MBA or other technical diplomas are picked up in this manner. For this purpose, carefully prepared brochures, describing the organization and the jobs it offers, are distributed among students, before the interviewer arrives. The DCM, TATAs, and other enlightened firms maintain continuing contacts with institutions' placement officials with a view to recruiting staff regularly for different responsible positions. Sometimes, firms directly solicit information from the concerned professors about students with an outstanding record. Many companies have found employees' contact with the public a very effective method. Other direct methods include sending recruiters to conventions and seminars, setting up exhibits at fairs, and using mobile offices to go to the desired centers. INDIRECT METHODS Indirect methods involve mostly advertising in newspaper, on the radio, in trade, and professional journals, technical magazines and brochures. Advertising in newspapers and/or trade journals and magazines is the most frequently used method, when qualified or experienced personnel are not available from other sources. Senior posts are largely filled by such methods when they cannot be filled by promotion from within. Advertising is very useful for recruiting blue-collar and hourly workers, as well as scientific, professional, and technical employees. Local newspaper can be a good source of blue-collar workers, clerical employees, and lower-level administrative employees. The main point is that the higher the position is in the organization, or the more specialised the skills sought, the more widely dispersed advertisement is likely to be. The search for top executive might include advertisements in a national periodical; while the advertisement of blue-collar jobs is usually confined to the daily newspaper or regional trade journals. The classified advertisement section of a daily newspaper or the Sunday weekly edition of The Hindustan Times, The Times of India, The Tribune, Bharat Jyoti, The National Herald, The Free Press Journal, The Pioneer, Amrit Bazar Patrika, The Economic Times, The Hindu, The Indian Express etc., carry advertisements for all types of positions. Such advertisements enable prospective candidates to screen themselves in order to find out whether they are fit for the job for which the advertisement has been issued.

In order to be successful, an advertisement should be carefully written. If it is not properly written, it may not draw the right type of applicants or it may attract too many applicants who are not qualified for the job. It should be so framed as to attract attention -for example, by the use of different sizes and types of print. The first line should limit the audience somewhat and the next few lines should further screen out the readers who do not possess the necessary qualifications. It should provide specific information on job requirements and opportunities for advancement, the benefits to be enjoyed by working in the BHEL; and it should emphasize facts related to the dignity of the job and to its professional aspects. “Frilly advertisements, containing exaggerated claims and gimmicky appeals, are to be avoided.” Advertising can be very effective if its media are properly chosen. According to Advertisement Tactics and Strategy in Personnel Recruitment, three points need to be borne in mind before an advertisement is inserted. First, to visualize the type of applicant one is trying to recruit. Second, to write out a list of the advantages a BHEL offers; in other words, why the reader should work for the BHEL.Third, to decide where to run the advertisement, not only in which area but in which newspaper having a local, state or nation-wide circulation. Many organisations often place what is referred to as a blind advertisement, one in which there is no identification of the organisation. Respondents are asked to reply to a ‘Post Office Box Number’ or to a consulting firm that is acting as an intermediary between the applicant and the organisation. The large organisations with regional or national reputation do not usually use blind advertisements. Other methods include advertising in publications, such as trade and professional journals, and radio or television announcements, as is done by many Indian manufacturers. Professional journals are read by people with specialised backgrounds and interests. Therefore, advertisements in these are generally selective. THIRD PARTY METHODS (TPMs) The best management policy regarding recruitment is to look first within the organisation. If that source fails, external recruitment must be tackled. These include the use of commercial or private employment agencies, state agencies, placement offices of schools, colleges and professional associations, recruiting firms, management consulting

firms, indoctrination seminars for college professors, and friends and relatives. Private employment agencies are widely used. They charge a small fee from an applicant. They specialise in specific occupations: general office help, salesmen, technical workers, accountants, computer staff, engineers and executives. These private agencies are brokers who bring employers and employees together. The specialisation of these agencies enhances their capacity to interpret the needs of their clients, to seek out particular types of persons and to develop proficiency in recognising the talent of specialised personnel. State or public employment agencies also known as Employment or Labour Exchanges, are the main agencies of public employment. They provide a clearing house for jobs and job information. Employers inform them of their personnel requirements, while job-seekers get information for them about the types of jobs that are referred to by employers. These agencies provide a wide range of services -counselling, assistance in getting jobs, information about the labour market, labour and wage rates. Schools, Colleges and Professional Institutions offer opportunities for recruiting their students. They operate placement services where complete bio-data and other particulars of the students are available. The companies that need employees maintain contact with the Guidance Counsellors of Employment Bureaus and teachers of business and vocational subjects. The prospective employers can review credentials and interview candidates for management trainees or probationers. Whether the education sought involves a higher secondary certificate, specific vocational training, or a college background with a bachelor’s, master’s, or doctoral degree, educational institutions provide an excellent source of potential employees for entry-level positions in organisations. These general and technical/professional institutions provide blue-collar applicants, white-collar and managerial personnel. Sometimes, the organisations provide Work Study Programme to the students or summer jobs for undertaking a project in the establishment so as to get them interested in the organisation in question, and after completion of this, they may be absorbed by the companies concerned. Professional organisations or recruiting firms or executive recruiters maintain complete information records about employed executives. These firms are looked upon as ‘head hunters’, ‘raiders’ and ‘pirates’ by organisations which lose personnel through their efforts. However, these same organisations may employ “executive search firms” to help them find executive talent. These

consulting firms recommend persons of high caliber for managerial, marketing, and production engineers’ posts. Indoctrination seminars for colleges professors are arranged to discuss the problem of companies and employees. Professors are invited to take part in these seminars. Visits to plants and banquets are arranged so that the participant professors may be favorably impressed. They may later speak well of a BHEL and help it getting the required personnel. Employee Referrals: Friends and relatives of present employees are also a good source from which employees may be drawn. When the labour market is very tight, large employers frequently offer their employees bonuses or prizes for any referrals that are hired and stay with BHEL the for a specific length of time. Some companies maintain a register of former employees whose record was good to contact them when there are new job openings for which they are qualified. This method of recruitment, however, suffers from a serious defect that it encourages nepotism, i.e., persons of one's community or caste are employed that may or may not be fit for the job. Trade Unions also provide manual and skilled workers in sufficient numbers. Under agreement, they may agree as to who is to be given preference. But in case of adverse industrial relations, this technique may create difficulties. Casual Labour or Applicant at the Gate: Most industrial units rely to some extent on the casual labor, which presents itself daily at the factory gate or employment office. However, this source is uncertain, and the candidates cover a wide range of abilities. Even then, many of our industries make use of this source to fill up casual vacancies. Unconsolidated Applications: For positions in which large number of candidates are not available from other sources, the companies may gain in keeping files of applications received from candidates who make direct enquiry’s about possible vacancies on their own, or may send unconsolidated applications. The information may be indexed and filed for future use when there are openings in these jobs. If necessary, the candidates may be requested to keep the organisation posted with any change in their qualifications, experience or achievements made. Voluntary Organisations, such as private clubs, social organisations, might also provide employees - handicapped, widowed or married women, old persons, retired hands, etc. in response to advertisements.

Computer Data: When a company desires a particular type of employee, job specifications and requirements are fed into a computer, where they are matched against the resume data stored therein. The output is a set of resumes for individuals who meet the requirements. This method is very useful for identifying candidates for hard-to-fill positions, which call for an unusual combination of skills.

SELECTION PROCEDURE The selection procedure is concerned with securing relevant information about an applicant. This information is secured in a number of steps of stages. The objective of selection process is to determine whether an applicant meets the qualifications for a specific job and to choose the applicant who is most likely to perform well in that job. Selection is a long process, commencing from the preliminary interview of that applicants and ending with the contract of employment. The hiring procedure is not a single act but it is essentially a series of methods or steps or stages by which additional information is secured about the applicant. At each stage, facts may come to light, which may lead to the rejection to the applicant. A procedure may be compared to a series of successive hurdles or barriers, which an applicant must cross. These are intended as screens, and they are designed to eliminate an unqualified applicant at any point in the process. This technique is known as the successive hurdles technique. Not all selection processes include all these hurdles. The complexity of a process usually increases with the level and responsibility of the position to be filled. According to Yoder, “the hiring process is of one or many ‘go, no-go’ gauges. Candidates are screened by the application of these tools. Qualified applications go on to the next hurdle, while the unqualified are eliminated.” Thus, an effective selection programme is a non-random process

because those selected have been chosen on the basis of the assumption that they are more likely to be “better” employees than those who have been rejected. Selection processes or activities typically follow a standard pattern, beginning with an initial screening interview and concluding with the final employment decision. The traditional selection process includes: preliminary screening interview; completion of application form; employment tests; comprehensive interview; background investigations, physical examination and final employment decision to hire. ESSENTIALS OF SELECTION PROCEDURE The selection procedure adopted by an organisation is mostly tailored made to meet its particular needs. The thoroughness of the procedure depends upon three factors: First, the nature of selection, whether faulty or safe, because faulty selection affects not only the training period that may be needed, but also results in heavy expenditure on the new employee and the loss that may be incurred by the organisation is case the job-occupant fails on his job. Second, the policy of the BHEL and the attitude of the management. As a practice some companies usually hire more than the actual number needed with a view to removing the unfit persons from the jobs. Third, the length of the probationary or the trial period. The longer the period, the greater the uncertainty in the minds of the selected candidate about his future. The hiring process can be successful, if the following preliminary requirements are satisfied: (i) Some one should have the authority to hire. This authority comes form the employment requisition, as developed by an analysis of the work-load and work force. (ii) There must be some standard or personnel with which a prospective employee may be compared, i.e., there should be available, beforehand, a comprehensive job description and job specifications as developed by a Job Analysis. (iii) There must be a sufficient number of applicants from whom the required number of employees may be selected.

STEPS IN SELECTION PROCEDURE There is no shortcut to an accurate evaluation of a candidate. The hiring procedures are, therefore, generally long and complicated. Many employers make use of such techniques and pseudosciences as phrenology, physiognomy, astrology, graphology etc., while coming to hiring decisions. However, in modern times, these are considered to be unreliable measures. The following is a popular procedure though it may be modified to suit individual situation: 1. Reception or preliminary interview or screening; 2. Application blank – a fact-finder which helps one in learning about an applicant’s background and life history; 3. A well conducted interview to explore the facts and get at the attitudes of the applicant and his family to the job; 4. A physical examination – health and stamina are vital factors in success; 5. Physiological testing to explore the surface area and get an objective look at a candidate’s suitability for a job; 6. A reference check; 7. Final selection approval by manager; and communication of the decision to the candidate.

STEPS OF SELECTION PROCESS

PHYSICALLY UNFIT PERSONALLY OBJECTIONABLE OR UNFACOURABLE GENERAL IMPRESSION

RECEPTION OF APPLICATIONS

UNFAVORABLE PERSONNEL DATA

PRELIMINARY INTERVIEW

UNFAVORABLE SECOND IMPRESSION

APPLICATION BLANK

UNFAVORABLE TEST SCORE

PSYCHOLOGICAL TESTS UNFAVORABLE PREVIOUS History

INTERVIEW

BACKGROUND INVESTIGATION (REFERENCE CHECK)

WAITING LIST OF DESIRABLE APPLICANTS

FINAL SELECTION BY INTERVIEWERS PHYSICALL Y UNFIT

PHYSICAL EXAMINATION

NEGATIVE DECISION

PLACEMENT

RECRUITMENT AND SELECTION POLICY IN BHEL-AS PER THE VIEWS OF H.R. MANAGER

BHEL is a public sector company. Around 14878 employees are working in BHEL. The BHEL has a well established recruitment and selection policy. The policy asserts the objectives of the recruitment and provides a framework of implementation of their recruitment programme in the form of procedures. This policy involves filling a vacancies with the best qualified individuals. There is no special occasion or time for recruitment in BHEL.. Whenever the BHEL identifies recruitment needs, the recruiters prepare profile for each category of workers and accordingly work out the main specification, decide the sections and department where they should be placed and identify the particular job responsibility which may be assigned to them. The BHEL follows various sources of recruitment. These are:1. Media The BHEL also recruit through media. For this the BHEL uses vehicles like newspapers, magazines etc. They prefer this media basically when large volume of people are required. 2. Web- based recruitment The BHEL also gives recruitment notice in the web and they recruit through the web.

3. Employee reference The BHEL also recruits from friends and relatives of present employees.

4. Consultancy Whenever necessary the BHEL take the help of the consultancy for recruiting candidates. This is also an important source for them. Preferred sources of recruitment Although there are various sources of employment, followed by the BHEL, i.e. external and internal sources. But the BHEL mostly prefers the external source for recruiting the candidate.

Costs involved in recruitment Costs plays an important role in recruitment. The BHEL incurs various type of costs. These are:i. Travel cost ------ Cost incurred for travelling ii. Constancy cost ------- Cost paid to the constancy firm iii. Publication cost ------- Cost incurred for giving recruitment notice in newspapers and magazines. iv. Re- location cost ------ Cost incurred for transferring employees in other departments and branches. Reservation of jobs for SCs, STs, etc. The BHEL follow reservation policy for SCs and STs etc for recruiting the candidates. Criteria for the candidate Mainly the criteria is role dependent. It depends on the job of the candidate. But the candidates require highly personal and technical skills. The BHEL looks for both freshers and experienced candidates. But in case of experienced candidates, minimum two years of experience is required.

Selection procedures followed in the BHEL Candidates are recruited on the basis of written test and interviews. Candidates must have good analytical reasoning ability and logical power. Candidate has to go through three interviews in the selection process. Among them two technical interviews and one Human resource interview is conducted. The BHEL look for technical and job specification both in the candidate. Job specification and Job description The BHEL follows both Job specification and job description. For job description, document for the next job is available to all the employees of the BHEL.By this, the employees can already be aware about the next jobs they have to perform and it creates the delta between the current role and the new role of the employees. By this the employees can upgrade or prepares themselves for their new job.

Trade union There is trade union in the BHEL. Views of HR Manager According to the interview with the H.R. manager, I can infer that the BHEL has rarely suffered from any faulty selection procedure. But it is also true that no BHEL is perfect in all respect, which can be experienced that so, they don’t need to bother about it. The recruitment and selection procedure in BHEL is dynamic in the past years. That means it keeps on changing every year and it always remains updated.

ANALYSIS OF QUESTIONNAIRE FROM EMPLOYEES’ PERSPECTIVE ABOUT RECRUITMENT AND SELECTION PROCEDURE IN BHEL

1. Working period of employees in the BHEL : -

Chart showing Service Period of the employees as per our survey of 36 employes
within 1year between1-2yr between 2-3yr between3-5yr

The above chart depicts that most of the employees are doing service as per my survey of 36 employees. Most of the employees are young in the organizations, they don’t have the past experience of any change in recruitment and selection. On a survey of 36 employees done by us shows that employees completed 1 year of service comprised 36.11%. Similarly employees 1-2 years of service comprise 36.11. But there is only less number of employees there about between 2-3 years comprised 19.44%. The rest i.e. 8.33% comprised of the group of people who have been in the organization for 3-5 year. Most of my sample employees comprised the group of software engineers doing various levels of software related jobs such as Developer, Designer, and Team leader, Project Leader.

2. Candidates willingness to join the BHEL Most of the Indian candidate looks in for the salary package and job security before joining a BHEL for job. All other things such as Reputation of the BHEL, working environment, job prospects, location of the BHEL, career growth opportunity, they look these things in either in isolation or in combination to each other as a whole as shown in the graph:

Chart to showing candidates willingness to join the company
23% 17%

5% 11% 16%

28%

re putation of the com pany s alary pack age w ork ing e nviornm e nt location of the com pany job pros pe ct care e r grow th oppurtunity

From the chart it can be understood that most of the employees are inspired by the salary package of the BHEL which resembles the personal traits of the Indians. I can also see that matters much followed reputation of the BHEL.BHELand working environment, which comprised 17% and 16% respectively. Job prospect plays a minor role in the minds of a candidate who had already joined the BHEL. Location of the BHEL(which comprised 5% of the sample size) where majority of the employees are qualified with technical who in most of the cases dare to bother the location of the BHEL.

3. How candidates are recruited in the BHEL ? There are various ways of recruiting candidates in the BHEL as depicted in the chart below :-

From the chart it is quiet clear that theBHEL adopts various process for recruiting the right

C hart showing candidates' recruitment process
W ritte n e xa m W ritte n e xa m & in te rvie w W ritte n e xa m ,g d & in te rvie w o th e rs

85%

8% 6%

6% 3%

candidate. Actual recruitment procedure followed by the BHEL is by conducting written examination followed by interview which comprised 85% of my sample survey of 36 employees. But still some candidates are also chosen through written exam, Gd &interview comprising only 6% and others comprising only 3%. These ‘others’ include the reference of the existing employees within the organization itself. . 4. Changes occurred in Recruitment and Selection Procedure In This question I was looking for any sort of changes at list during the preceding five years. Every year there are some changes take place in recruitment and selection process for better result and production. It is such an industry where in every moment some innovation takes place. So the BHEL some new skills to achieve the required fulfillment.

For the last couple of years the BHEL is focusing more on interview to give more chances to the fresher. This resembles that the BHEL recruitment policy, the BHEL needs for greater committed employee and also motive behind concentrating more on fresher, as it is the belief from BHEL perspective to be working smartly with full enthusiasm. They are also updated with the current concepts.

5. Organization’s attempt to reduce employee turnover ratio: I gave 4 options to the employees to know what the organization is doing to reduce employee turnover ratio. These are:  Better salary package  More benefits  Changing / Improving working conditions  Better promotion / Career Development Opportunity After summarizing all the 36 respondent’s view, the data I have found out are:  Better salary package  More benefits  Changing / Improving working conditions (7) (2) (4)

 Better promotion / Career Development Opportunity (22)  Can’t say  Nothing (2) (3)

Corresponding to this data I have drawn a pie chart below:-

Employee turnover ratio Better salary package More benifits

3

2

7 2

Improvement of working condition

4 22

Career development opportunity Company not doing anything Can't say

So it is evident from the pie chart that majority of the respondents (22) have mentioned Better promotion / Career Development Opportunity for the retention of employees and thereby reducing the employee turnover ratio. Only 7 respondents have mentioned more benefits as the reason.

Satisfaction level of employees All the employees are satisfied with their jobs, so they don’t want to suggest any further recommendations for recruitment and selection procedure. Only one respondent has suggested that the organization should look more into employee referral.

Job security Since it is BHEL so growth opportunity is immense. The facility provided by the organization are up to the mark. So overall employees are satisfied with the job. As far as job security is concerned it is high.I have given 6 points out of 10 for job security.

6. Promotion/Career growth oppurtunities ON THE BASIS OF MY INTERACTION WITH THE EMPLOYEES I CAME TO KNOW THAT MOST OF THE EMPLOYEES HAVE MENTIONED CAREER GROWTH OPPORTUNITY, AS THE REASON OF JOINING THE ORGANIZATION. ALL OF THEM ARE SATISFIED WITH THE CAREER GROWTH OPPORTUNITIES. SO ON THIS BASIS I HAVE GIVEN 9 POINTS FOR THIS ASPECT. Working conditions The working environment in the BHEL is excellent. Most of the employees are satisfied with the working conditions in BHEL. On the basis of my perception. I have given 9 out of 10 for working conditions.

Management loyalty There is a very good relationship between the employees and the management. Management is always helpful and also cooperative to the employees. They are loyal to the organization .On the basis of my interview with the Human resource manager I have come to know about it and I have given 7 points out of 10 in this respect.

Tactful discipline I have seen during my two visits to the organization and according to the interview with the HR Manager the organization follows tactful discipline. Even the organization is very much strict to it. So according to my perception I have given 9 out of 10 for discipline. Appreciation The appreciation is one of the basic factors for motivation. The BHEL always appreciates its employees for good performance. Even the employees are rewarded for that. Because if the employees are not appreciated for their good performance they will not be motivated to do extra work. So it is very much essential step for the motivation of the employee. The BHEL provides yearly increments, bonuses,PP on special occasions to motivate the employees .So on this ground I have given 7 points out of 10.

Understanding The management has good understanding with the employees . Employees get an equal opportunity to express their views at frequent intervals. Both key elements Cooperation and coordination are followed in the organization to get the best results. On this ground I have given 8 points out of 10. Attitudes of the employees towards their job According to my interactions with the employees I came to know that most of the employees are satisfied with their job. On this basis I have given 7 points out of 10.

SUMMARY OF SURVEY FINDINGS. 1. I have given various options for joining of the candidates in the organization in the questionnaire. Also I got more options from the employees while interacting with them. Most of the employees (28%) have mentioned the salary package as a reason for joining the organization. 16% of the employees have mentioned or pointed it out the working environment as the reason for joining the organization. 17% talked about the reputation of BHEL and 23%
Employees satisfaction
Feeling'in' on things Understanding Appreciation Tactful Disipline Management Loyalty Interesting Work Working Condition Promotion Job Security Good Salary

7 8 7 9 7 6 9 9 6 7

Good Job Worki Intere Mana Tactfu Appre Under Feeli Prom Salar Secur ng sting geme l ciatio standi ng'in' otion y ity Condi Work nt Disipli n ng on Series1 7 6 9 9 6 7 9 7 8 7 Rating scale

mentioned about career growth opportunity. So I can say salary package and career growth opportunity are the more attractive to the employees. 2. From the analysis of recruitment and selection procedure it is clear that for recruiting employees BHEL mainly conduct written examination followed by interview. Written exam is mandatory for mainly all types of recruitment. For selection of the technical candidates they have to go through three mandatory interviews, out of which two are technical interviews and one is the interview with the Human Resource head.

CONCLUSIONS AND SUGGESTIONS
During my Summer Training at BHEL, Hardwar on the project Recruitment process in bhel and EVA, I have observed some weak and strong points of the company, which are following: As it is not only the analysis which makes the decision, furthermore good judgments and interpretation depends upon the intelligence and ability of the analyst.  On seeing the liquidity position of BHEL. I conclude that it is not very good as the current assets are in the form of inventories and debtors. The debt collection period is high and inventories are least liquid current assets. So maintaining the inventories are relatively costly affair for the company and the management must have to investigate properly. It is very necessary so that fund should not be blocked unreasonably. Efficient inventory management is required in BHEL.  On seeing the leverage position of the BHEL, I conclude that it is very good as the stake of owners in company is continuously increasing and its long term debt continuously decreasing it means that company is paying its debt promptly and creditors will not face any risk in investing in BHEL as also BHEL is giving assured ROI.  On seeing turnover, fixed assets and current assets turnover of company goes on increasing which is a good indicator as it brings commensurate gain and also the average collection goes on decreasing but management should take more efficient steps to reduce it.  On seeing the profitability of the BHEL its overall performance is very good. A continuous increase in the values of EPS and DPS results, investors feel safe to invest money in BHEL.  On seeing the performance over EVA it can be said that company is doing good in their core field. And growth of the EVA shows the unit’s strong position in their business. This growth is also shows a good sign from shareholders point of view.

STRENGTH (S): • Low cost producer of quality equipment due to cheap labour and fully depreciated plants. • Flexible manufacturing set up. • Entry barrier due to high replacement cost of its manufacturing facilities.

WEAKNESSES (W): • High working capital requirement due to its exposure to cash starved SEBs (State electricity boards) and High WIP. • Inability to provide project financing.

OPPORTUNITIES (O):

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High-expected growth in power sectors (7000 MW/p.a. needs to be added)

• High growth forecast in India’s index of industrial production would increase demand for industrial equipment such as motors and compressors.

THREATS (T): • Technical suppliers are becoming competitors with the opening up of the Indian economy.

Fall in global power equipment prices can effect profitability.

BIBLIOGRAPHY
To complete this summer training project report the following sources were referred:

Books and budget manual www.google.com www.bhel.com

www.indiatimes.com