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CHAPTER I INTRODUCTION

1.1 INTRODUCTION
The human resources are the most important assets of an organization. The success or failure of an organization is largely dependent on the caliber of the people working there in. Without positive and creative contributions from people, organizations cannot progress and prosper. In order to achieve the goals or the activities of an organization, therefore, they need to recruit people with requisite skills, qualifications and experience. While doing so, they have to keep the present as well as the future requirements of the organization in mind. Recruitment is distinct from Employment and Selection. Once the required number and kind of human resources are determined, the management has to find the places where the required human resources are/will be available and also find the means of attracting them towards the organization before selecting suitable candidates for jobs. All this process is generally known as recruitment. Some people use the term Recruitment for employment. These two are not one and the same. Recruitment is only one of the steps in the entire employment process. Some others use the term recruitment for selection. These are not the same either. Technically speaking, the function of recruitment precedes the selection function and it includes only finding, developing the sources of prospective employees and attracting them to apply for jobs in an organization, whereas the selection is the process of finding out the most suitable candidate to the job out of the candidates attracted (i.e., recruited). Formal definition of recruitment would give clear cut idea about the function of recruitment.

RECRUITMENT Recruitment is defined as, a process to discover the sources of manpower to meet the requirements of the staffing schedule and to employ effective measures for attracting that manpower in adequate numbers to facilitate effective selection of an efficient workforce. Edwin B. Flippo defined recruitment as the process of searching for prospective employees and stimulating them to apply for jobs in the organization. Recruitment is a linking function-joining together those with jobs to fill and those

seeking jobs. It is a joining process in that it tries to bring together job seekers and employer with a view to encourages the former to apply for a job with the latter. SELECTION To select mean to choose. Selection is the process of picking individuals who have relevant qualifications to fill jobs in an organization. The basic purpose is to choose the individual who can most successfully perform the job from the pool of qualified candidates. PURPOSES AND IMPORTANCE The general purpose of recruitment is to provide a pool of potentially qualified job candidates. Specifically, the purposes are to: Determine the present and future requirements of the organization in conjunction with its personnel-planning and job-analysis activities. Increase the pool of job candidates at minimum cost. Help increase the success rate of the selection process by reducing the number of visibly, under qualified or overqualified job applicants. Help reduce the probability that job applicants, once recruited and selected, will leave the organization only after a short period of time. Begin identifying and preparing potential job applicants who will be appropriate candidates. Induct outsiders with a new perspective to lead the company. Develop an organizational culture that attracts competent people to the company. Search or head hunt/head pouch people whose skills fit the companys values. Devise methodologies for assessing psychological traits. Search for talent globally and not just within the company. Design entry pay that competes on quality but not on quantum. Anticipate and find people for positions that do not exist yet. Increase organizational and individual effectiveness in the short term and long term. Evaluate the effectiveness of various recruiting techniques and sources for all types of job applicants.
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1.2 OBJECTIVES
1. To understand the Recruitment and Selection Process at BBX 2. To identify areas where there can be scope for improvement.
3. To Study the Challenges faced by HR in recruitment.

1.3 SCOPE OF STUDY The topic chosen Recruitment and Selection process was aimed for the betterment of the organization in terms of quality as well as quantity. The scope of the study under mentioned points depicts the same To increase the effectiveness of the recruitment and selection process. It would help the organization in meeting its future personnel needs.

1.4 COMPANY PROFILE

BBX MANAGES THE BUYING AND SELLING OF GOODS AND SERVICES ON BEHALF OF ITS MEMBERS IN A CASHLESS ENVIRONMENT, UTILISING THE BBX GLOBAL CASHLESS PAYMENT PLATFORM". Established in April 1993 BBX has the largest Trade Exchange Network in the world. Currently operational in eight countries with over 15,000 cardholders, BBX continues its expansion into all the important marketplace of the Asia-Pacific region. BBX is a credit and debit card system, that enables businesses to access a variety of goods and services in a less competitive market place offering a range of financial benefits not usually found in traditional markets or offered by other card payment systems. BBX International has established master franchises in India, Costa Rica, Taiwan, New Zealand, Australia, Singapore, Thailand and Malaysia. BBX mission is to deliver a GLOBAL CASHLESS PAYMENT PLATFORM that is fair equitable and highly profitable to all BBX members and at all times be community and socially responsible. Using a currency known as BBX trade dollars, BBX allows member businesses to increase sales, create cost savings and improve the general financial performance of their business by taking advantage of spare or under-utilized capacities that exist, all of which improve your bottom line profitability

Head office and Regional Branch


BBX International Head Office 916 Pacific Highway Gordon Nsw Australia ACN 138 311 547 Phone: 0061 2 9499 1100, 02 9499 1100 Email: Info@ebbx.com, headoffice@ebbx.com

BBX India (Regional Office New Delhi) B-39, Basement, Greater Kailash 1, New Delhi, India Email: newdelhicentral@ebbx.com

There are 15 other branches in Australia, 3 others in India, 2 in New Zealand, and 1 each in Taiwan, Costa Rica, Malaysia, Singapore and Thailand.

BBX COMPUTERISED TRADING PROGRAM All businesses naturally seek to maximize their own profits, and fundamental economic principles dictate that the two basic ways to increase profits are to: (a) Increase Sales; and (b) Cut Costs. There are various ways by which businesses can try to achieve these objectives but each method usually has its associated difficulties. Not so with the Trading System! A trading network represents a captive market of businesses within which members can buy and sell goods and services by using a simple means of debits and credits, instead of having to use cash!
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This cashless process is supplementary to the existing cash business of each member and means that: (a) Members are able to utilize the capacity of their business to earn trade dollar credits, by making incremental sales to customers who they may otherwise not have had access to: (b) Members are able to spend trade dollars to purchase various goods and services for which they would otherwise have needed to expend cash.

The net effect of this trading process on any participating business is that cash income IS NOT REDUCED but cash expenditure IS REDUCED. Consequently, cash profits ARE INCREASED by virtue of conserving cash! In other words, the extra sales generated by trading clearly give rise to extra profits, regardless of the fact that the trading process is different to that of the cash system.

BBXs organized trading program provides an extensive range of benefits to its members both as buyers and sellers.

THE CONCEPT OF RECIPROCAL TRADE Direct exchanging of goods and services was once the only way to conduct business. They called it the TRADING system (BARTER). The common medium of exchange was invented to simplify business transactions. They called it the CASH system (MONEY). However, cash is often an impediment to commerce, especially when businesses are confronted with cash shortages and / or idle capacity. In the economic world of today, many progressive businesses have now discovered the solution to over coming these shortages - SUPPLEMENT the CASH system with the cashless TRADING system! The BBX trading program provides businesses with a proven and innovative means of utilising idle capacity such as excess stock. Any degree of capacity represents lost potential for a business to finance the purchase of various goods and services needed to maintain its own operation. Purchases made by a business through a Computerised Trading Program, are offset (paid for) by that business making additional sales of its own goods or

services within the Trading Program itself. Organised Trading Programs, which operate as Trade Exchanges or as Barter organisations, have existed in the major countries for many years.

OPERATION OF THE BBX COMPUTERISED TRADING PROGRAM The age-old form of trading / barter was restricted to one-on-one transactions between two parties. Such reciprocal dealings have obvious limitations concerning the matching of each partys needs, values and timing in relation to the goods or services involved. The advent of the computer has enabled a third party to enter the trading / barter process. This approach has eliminated all those problems associated with the old one-on-one transactions and has made trading as flexible as the cash system. The third party is the Trade Exchange itself which, like a form of bank, acts as a A medium of exchange has been created for trading purposes only. This central clearing house between member traders. medium uses the currency of Trade Dollars which are simply book-entry debits and credits (ie. non physical accounting units). Trading transactions are valued on the basis that one trade dollar is equivalent to one cash dollar. The transactions are conducted in a manner similar to standard credit card transactions. Each member is issued with a plastic Tradecard. An authorisation is required for all transaction. The Exchange operates a computerised Trading Account for each member with individual Debit and Credit limits set according to the trading capacity of the member. The processing of each transaction voucher results in the Selling Traders account being credited with the specific trade dollar value, and Buying Traders account being debited by the same trade dollar value. The Exchange provides all members with an electronic monthly statement of their trade account. This computerised system of trading using its own currency means that, unlike traditional methods traders are not restricted to an exchange of goods or services between two parties. That is, a selling trader does not have to buy from the same trader whom he sells to, and vice versa, since trade dollar credits are redeemable in any business within the network of the Exchange. BBX provides an attractive range of services to its members:

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As a Marketer, BBX actively promotes a members goods or services to a

captive market formed by the network of other members businesses. That is, the Exchange acts as a promoter through its publication of a master directory, new members, news flashes, newsletters, frequent Trade events (dinners, functions, shows or auctions) and personal representations, etc. 2. 3. 4. As a Broker, BBX actively seeks trading opportunities for all its members by As a Record-Keeper, BBX functions like a computerised bank clearing house, As a Consultant, BBX provides its members with the knowledge, procedures, sourcing goods or services which members require, internationally. providing monthly statements of members trading activities. tools and contacts necessary to conduct successful trading within the BBX Network.

BRIEF HISTORY OF RECIPROCAL TRADE The Reciprocal Trade industry began in Switzerland 70 years ago and in the United States 50 years ago, and today there are in excess of 550 retail trade exchanges. The development of the Personal Computer has allowed for accurate financial control and management of trade exchanges. The barter system was one of the earliest forms of trading. It facilitated exchange of goods and services, as money was not invented and the history of barter can be traced back to 6000BC. The Europeans started travelling across the globe and used barter services to trade their goods like fur and crafts to the East, in exchange of perfumes and silks. Colonial America adopted the system of barter in exchange of wheat and deer products across the globe. The history of the barter system can also be linked to the initial years of Oxford and Harvard Universities, where students used to their fees as food items, firewood or livestock. Barter Services became popular during the Great Depression in the 1930s, which witnessed a scarcity of money. The barter system was utilised as a means of obtaining food and other services across the globe. At that point in time the trading was done between people and or through groups, who acted as agents and facilitated third party bartering.

These groups were like banks, where people maintained their accounts. In case of sale of any of the items, the account of the owner would be credited and the account of the buyer would be debited. In past history the bartering system has also funded World War 1 and World War 11. Post World War 11 the people of Germany resorted to bartering, as the German currency had lost its value. Barter systems have been in use throughout the world for centuries. The invention of money did not result in the end of the bartering systems and services. Sometimes, monetary crisis fuelled the barter system, and current recessions have also set the stage for barter systems. In todays economic market barter systems are flourishing across the globe and it is estimated $16 trillion of business is facilitated per annum. (Sourced from various web sites).

BBX FUNCTIONS BBX prides itself in its excellence and quality of service to its members. In order to maintain the expectations of members, BBX will be required to: Process and store received transaction. Conduct the management of the Exchange at all times in a professional and ethical manner, to maintain records and bookkeeping at a high standard. Set and review approved credit limits in accordance with the rules of the trading program. Deliver in a professional manner BBX statements to all active members of the trade exchange. Organize the delivery of new member fliers, newsletters, directories, updates, functions, trade expos, trade nights, auctions, seminars, and other material that may arise for the benefit of the trade exchange and members, from time to time. Source new members and expand areas of trade and process applications according to applicants, viability and the rules of the trading program. Administer the rules of the trading program.

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Administer the debt reserve fund. Levy and collect fees of the Trading Program.

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CHAPTER II REVIEW OF LITERATURE

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INTRODUCTION TO RECRUITMENT AND SELECTION:

Recruitment is the process by which organizations locate and attract individuals


to fill job vacancies. Most organizations have a continuing need to recruit new employees to replace those who leave or are promoted in order to acquire new skills and promote organizational growth. Recruitment is defined as, a process to discover the sources of manpower to meet the requirements of the staffing schedule and to employ effective measures for attracting that manpower in adequate numbers to facilitate effective selection of an efficient workforce. Recruitment is a linking function, joining together those with jobs to fill and those seeking jobs. It is a joining process in that it tries to bring together job seekers and employer with a view to encourage the former to apply for a job with the latter. In order to attract people for the jobs, the organization must communicate the position in such a way that job seekers respond. To be cost effective, the recruitment process should attract qualified applicants and provide enough information for unqualified persons to self-select themselves out. Thus, the recruitment process begins when new recruits are sought and ends when their applications are submitted. The result is a pool of applicants from which new employees are selected. Recruitment refers to the process of attracting, screening, and selecting a qualified person for a job. At the strategic level it may involve the development of an employer brand which includes an 'employee offering'. The stages of the recruitment process include: job analysis and developing a person specification; the sourcing of candidates by networking, advertising, or other search methods; matching candidates to job requirements and screening individuals using testing (skills or personality assessment); assessment of candidates' motivations and their fit with organizational requirements by interviewing and other assessment techniques. The recruitment process also includes the making and finalizing of job
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offers and the induction and onboarding of new employees.


Managers, human resource generalists and / or recruitment specialists may undertake depending on the size and culture of the organization recruitment in-house . Alternatively

parts of all of the process might be undertaken by either public sector employment agencies, or commercial recruitment agencies, or specialist search consultancies.

Recruitment process
Job analysis

The starting point to a recruitment effort is to perform a job analysis and/or in some cases a task analysis, to document the actual or intended requirements of the job. From these the relevant information is captured in such documents as job descriptions and job specifications. Often a company will already have job descriptions that represent a historical collection of tasks performed. Where already drawn up, these documents need to be reviewed or updated to reflect present day requirements. Prior to initiating the recruitment stages a person specification should be finalised to provide the recruiters commissioned with the requirements and objectives of the project.

Sourcing

Sourcing is the use of one or more strategies to attract or identify candidates to fill job vacancies. It may involve internal and/or external advertising, using appropriate media, such as local or national newspapers, specialist recruitment media, professional publications, window advertisements, job centres, or in a variety of ways via the internet. Alternatively, employers may use recruitment consultancies to find otherwise scarce candidates who may be content in their current positions and are not actively looking to move companies may be proactively identified. This initial research for so-called passive candidates, also called name generation, results in a contact information of potential candidates who can then be contacted discreetly to be screened and approached.

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Screening and selection

Suitability for a job is typically assessed by looking for relevant skills, knowledge, aptitude, qualifications and educational or job related experience. These can be determined via: screening rsums (also known as CVs); job applications; interviews. More proactive idenification methods include psychological, aptitude, numeracy and literacy testing. the testimony of references, Many recruiters and agencies use applicant tracking systems to perform the filtering process, along with software tools for psychometric testing. In many countries, employers are legally mandated to ensure their screening and selection processes meet equal opportunity and ethical standards. In addition to the above selection assessment criteria, employers are likely to recognise the value of candidates who also have the so-called 'soft skills', such as interpersonal or team leadership and have the ability to reinforce the company brand through their behaviour in front of customers and suppliers. Multinational organisations and those that recruit from a range of nationalities are also concerned candidates will fit into the prevailing company 'culture'. Lateral hiring

"Lateral hiring" refers to a form of recruiting; the term is used with two different, almost opposite meanings. In one meaning, the hiring organization targets employees of another, similar organization, possibly luring them with a better salary and the promise of better career opportunities. An example is the recruiting of a partner of a law firm by another law firm. The new lateral hire then has specific applicable expertise and can make a running start in the new job. In some professional branches such lateral hiring was traditionally frowned upon, but the practice has become increasingly more common. An employee's contract may have a non-compete clause preventing such lateral hiring. In another meaning, a lateral hire is a newly hired employee who has no prior specific applicable expertise for the new job, and for whom this job move is a radical change of career. An example is the recruiting of a university professor to become chairman of the board of a company.

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Onboarding

"Onboarding" is a term which describes the process of helping new employees become productive members of an organization. A well-planned introduction helps new employees become fully operational quickly and is often integrated with a new company and environment. Onboarding is included in the recruitment process for retention purposes. Many companies have onboarding campaigns in hopes to retain top talent that is new to the company; campaigns may last anywhere from 1 week to 6 months.

Recruitment approaches
There are a variety of recruitment approaches and most organisations will utilise a combination of two or more of these as part of a recruitment exercise or to deliver their overall recruitment strategy. In summary five basic models more commonly found are: An in-house personnel or human resources function may in some case still conduct all stages of the recruitment process. In the smallest organisations recruitment may be left to individual managers. More frequently whilst managing the overall recruitment exercise and the decision-making at the final stages of the selection process external service providers may undertake the more specialised aspects of the recruitment process. Outsourcing of recruitment to an external provider may be the solution for some small businesses and at the other extreme very large organisations Employment agencies are established as both publicly-funded services and as commercial private sector operations. Services may support permanent, temporary, or casual worker recruitment. They may be generic agencies that deal with providing unskilled workers through to highly-skilled managerial or technical staff or so-called niche agencies that specialize in a particular industrial sector or professional group.
Executive search firms for executive and professional positions. These

firms operate across a range of models such as contingency or retained approaches and also hybrid models where advertising is also used to

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ensure a flow of candidates alongside relying on networking as their main source of candidates. Internet recruitment services including recruitment websites and job search engines used to gather as many candidates as possible by advertising a position over a wide geographic area. In addition social network sourced recruitment has emerged as a major method of sourcing candidates.

In-house recruitment Many employers undertake at least some if not most of their own in-house recruitment, using their human resources department, front-line hiring managers and recruitment personnel who handle targeted functions and populations. In addition to coordinating with the agencies mentioned above, in-house recruiters may advertise job vacancies on their own websites, coordinate internal employee referrals, work with external associations, trade groups and/or focus on campus graduate recruitment. Some large employers choose to outsource all or some of their recruitment process (recruitment process outsourcing) however a much more common approach is for employers to introduce referral schemes where employees are encouraged to source new staff from within their own network.

Internal recruiters An internal recruiter (alternatively in-house recruiter or corporate recruiter) is member of a company or organization and typically works in the human resources (HR) department. Internal recruiters may be multi-functional, serving in an HR generalist role or in a specific role focusing all their time on recruiting. Activities vary from firm to firm but may include, screening CVs or rsums, conducting aptitude or psychological testing, interviewing, undertaking reference and background checks, hiring; administering contracts, advising cansidates on benefits, onboarding new recruits and conducting exit interviews with employees leaving the organisation. They can be permanent employees or hired as contractors for this purpose. Contract recruiters tend to move around between multiple companies, working at each one for a short stint as needed for specific hiring purposes. The responsibility is to filter candidates as per the requirements of each client.

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Employee referral An employee referral program is a system where existing employees recommend prospective candidates for the job offered, and if the suggested candidate is hired, the employee who referred receives a cash bonus. In some cases the organization provides the employee referral bonus only if the referred employee stays with the organization for stipulated time duration (most cases 3 - 6 months). Referral bonus depends on the grade of the referred employee, higher the grade higher the bonus however the method is not used for senior level hiring.

Outsourcing An external recruitment provider may suit small organizations without the facilities to recruit. In typically the largest organizations a formal contract for services has been negotiated with a specialist recruitment consultancy. These are known in the industry as Recruitment Process Outsourcing.

Employment agencies Employment agencies operate in both the public and private sectors. Publicly-funded services have a long history, often having been introduced to mitigate the impact on unemployment of economic downturns, such as those which form part of the New Deal program in the US, and the Job Centre Plus service in the UK. The commercial recruitment industry is based on the goal of providing a candidate to a client for a price. At one end of the spectrum there are agencies that are paid only if they deliver a candidate that successfully stays with the client beyond the agreed probationary period. On the other end of the spectrum there are agencies that are paid a retainer to focus on a client's needs and achieve milestones in the search for the right candidate, and then again are paid a percentage of the candidate's salary when a candidate is placed and stays with the organization beyond the probationary period. The agency recruitment industry is highly competitive, therefore agencies have sought out ways to differentiate themselves and add value by focusing on some area of the

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recruitment life cycle. Though most agencies provide a broader range of service offering, at the extremes are the two extremes are the traditional providers and the niche operators.

Traditional agency Also known as employment agencies, recruitment agencies have historically had a physical location. A candidate visits a local branch for a short interview and an assessment before being taken onto the agencys books. Recruitment consultants then work to match their pool of candidates to their clients' open positions. Suitable candidates are short-listed and put forward for an interview with potential employers on a contract or direct basis.

Niche recruiters 'Specialized recruiters' exist to seek staff with a very narrow specialty. Because of their focus, these firms can very often produce superior results due to their ability to channel all of their resources into networking for a very specific skill set. This specialization in staffing allows them to offer more jobs for their specific demographic which in turn attracts more specialized candidates from that specific demographic over time building large proprietary databases. These niche firms tend to be more focused on building ongoing relationships with their candidates as is very common the same candidates are placed many times throughout their careers. Online resources have developed to help find niche recruiters. Niche firms also develop knowledge on specific employment trends within their industry of focus (e.g. the energy industry) and are able to identify demographic shifts such as aging and its impact on the industry. Financial arrangements operated by agencies take several forms, the most popular are: A contingency fee paid by the company when an agency introduced candidate accepts a job with the client company. Typical fees range from 15% to 25% based on the candidates first-year base salary (fees as low as 12.5% can be found online). This type of recruitment usually has a rebate guarantee should the candidate fail to perform or leave within a set period of time (often up to a

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3 month period and as much as a 100% rebate).


An advance payment that serves as a retainer, also paid by the company, non-

refundable paid in full depending on outcome and success (e.g. 40% up front, 30% in 90 days and the remainder once a search is completed). This form of compensation is generally reserved for high level executive search/headhunters Hourly charge for temporary workers and projects. A pre-negotiated hourly fee, in which the agency is paid and pays the applicant as a consultant for services as a third party. Many contracts allow a consultant to transition to a full-time status upon completion of a certain number of hours with or without a conversion fee.

Executive search firms ("Headhunters") An executive search firm or "headhunter" are industry terms for a third-party recruiters who seeks out candidates often when normal recruitment efforts have failed. Headhunters are generally considered more aggressive than in-house recruiters or may have pre-existing industry experience and contacts. They may use advanced sales techniques. They may also purchase expensive lists of names and job titles but more often will generate their own lists. They may arrange a meeting or a formal interview between their client and the candidate and will usually prepare the candidate for the interview, help negotiate the salary and conduct closure to the search. They are frequently members in good standing of industry trade groups and associations. Headhunters will often attend trade shows and other meetings nationally or even internationally that may be attended by potential candidates and hiring managers. Headhunters are typically small operations that make high margins on candidate placements (sometimes more than 30% of the candidates annual compensation). Due to their higher costs, headhunters are usually employed to fill senior management and executive level roles. Headhunters are also used to recruit very specialized individuals; for example, in some fields, such as emerging scientific research areas, there may only be a handful of top-level professionals who are active in the field. In this case, since there are so few qualified candidates, it makes more sense to directly recruit them one-by-one, rather than advertise internationally for candidates. While inhouse recruiters tend to attract candidates for specific jobs, headhunters will attract
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both candidates and actively seek them out as well. To do so, they may network, cultivate relationships with various companies, maintain large databases, purchase company directories or candidate lists and cold call prospective recruits.

Headhunters are increasingly using social media to find and research candidates. This approach is often called social recruiting.

Executive research firms and passive candidate sourcing firms These firms are the new hybrid operators in the recruitment world able to combine the research aspects (discovering passive candidates) of recruiting and combine them with the ability to make hires for their clients. These firms provide competitive passive candidate intelligence to support companies' recruiting efforts. Normally they will generate varying degrees of candidate information from those people currently engaged in the position a company is looking to fill. These firms usually charge a daily rate or fixed fee. Executive research can help companies uncover names that cannot be found through traditional recruitment methods and will allow human resource managers and internal recruiters more time to deal with face to face interviews. Internet recruitment services

1. Recruitment websites Such sites have two main features: job boards and a rsum/curriculum vitae (CV) database. Job boards allow member companies to post job vacancies. Alternatively, candidates can upload a rsum to be included in searches by member companies. Fees are charged for job postings and access to search resumes. Since the late 1990s, the recruitment website has evolved to encompass end-to-end recruitment. Websites capture candidate details and then pool them in client accessed candidate management interfaces (also online). Key players in this sector provide e-recruitment software and services to organizations of all sizes and within numerous industry sectors, who want to e-enable entirely or partly their recruitment process in order to improve business performance.
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The online software provided by those who specialize in online recruitment helps organizations attract, test, recruit, employ and retain quality staff with a minimal amount of administration. Online recruitment websites can be very helpful to find candidates that are very actively looking for work and post their resumes online, but they will not attract the "passive" candidates who might respond favorably to an opportunity that is presented to them through other means. Also, some candidates who are actively looking to change jobs are hesitant to put their resumes on the job boards, for fear that their companies, co-workers, customers or others might see their resumes. 2. Job search engines The emergence of meta-search engines allows job-seekers to search across multiple websites. Some of these new search engines index and list the advertisements of traditional job boards. These sites tend to aim for providing a "one-stop shop" for jobseekers. However, there are many other job search engines which index solely from employers' websites, choosing to bypass traditional job boards entirely. These vertical search engines allow job-seekers to find new positions that may not be advertised on traditional job boards, and online recruitment websites.

Social recruiting Social recruiting is the use of social media for recruiting including sites like Facebook, Twitter, and LinkedIn.

SOURCES OF RECRUITMENT: The following are the most commonly used methods of recruiting people. INTERNAL METHODS: This refers to the filling of job vacancies from within the business - where existing employees are selected rather than employing someone from outside. A business might decide that it already has the right people with the right skills to do the job, particularly if its training and development programme has been effective.

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Promotions and Transfers

This is a method of filling vacancies from within through transfers and promotions. A transfer is a lateral movement within the same grade, from one job to another. It may lead to changes in duties and responsibilities, working conditions, etc., but not necessarily salary. Promotion involves movement of employee from a lower level
position to a higher-level position accompanied by changes in duties, responsibilities,

status and value. Job Posting

Job posting is another way of hiring people from within. In this method, the organization publicizes job opening on bulletin boards, electronic method and similar outlets. One of the important advantages of this method is that it offers a chance to highly qualified applicants working within the company to look for growth opportunities within the company. Employee Referrals

Employee referral means using personal contacts to locate job opportunities. It is a recommendation from a current employee regarding a job applicant. Employees working in the organization are encouraged to recommend the names of their friends, working in other organizations for a possible vacancy in the near future. In fact, this has become a popular way of recruiting people in the highly competitive industry nowadays. Companies offer rich rewards also to employees whose recommendations are accepted.

EXTERNAL METHODS: This refers to the filling of job vacancies from outside the business. Most businesses engage in external recruitment fairly frequently, particularly those that are growing strongly, or that operates in industries with high staff turnover

Campus Recruitment

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It is a method of recruiting by visiting and participating in college campuses and their placement centers. Here the recruiters visit reputed educational institutions with a view to pick up job aspirants having requisite technical or professional skills. Job seekers are provided information about the jobs and the recruiters. A preliminary screening is done within the campus and the short listed students are then subjected to the remainder of the selection process. If campus recruitment is used, steps should be taken by human resource department to ensure that recruiters are knowledgeable concerning the jobs that are to be filled in the organizations and employ effective interviewing skills. Advertisements

These include advertisements in newspapers; trade, professional and technical journals; radio and television; etc. The ads generally give a brief outline of the job responsibilities, compensation package, prospects in organizations, etc. This method is appropriate when (a) the organization intends to reach a large target group and (b) the organizations want a fairly good number of talented people who are geographically spread out. Employment Agencies

These businesses specialize in recruitment and selection. They often specialize in recruitment for specific sectors (e.g., finance, travel, secretarial). They usually provide a shortlist of candidates based on the people registered with the agency. They also supply temporary or interim employees. Recruitment Consultancies

Companies give their manpower requirements to Placement & Recruitment Consultants who undertake the job of identifying suitable candidates for the Company. Unsolicited Applicants / Walk-ins

Companies generally receive unsolicited applications from job seekers at various points of time; the number of such applications depends on economic conditions, the image of the company and the job seekers perception of the types of jobs that might be available etc. Such applications are generally kept in a data bank and whenever a

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suitable vacancy arises, the company would intimate the candidates to apply through a formal channel.

Selection refers to the task of choosing or picking the suitable candidates by first
asking for and gaining access to useful information about the candidate. Through the process of recruitment the company tries to locate prospective employees and encourages them to apply for vacancies at various levels. Recruiting, thus, provides a pool of applicants for selection. Selection is the process of picking individuals who have relevant qualifications to fill jobs in an organization. The basic purpose is to choose the individual who can most successfully perform the job from the pool of qualified candidates. The purpose of selection is to pick up the most suitable candidate who would meet the requirements of the job in an organization best, to find out which job applicant will be successful, if hired. To meet this goal, the company obtains and assesses information about the applicants in terms of age, qualifications, skills, experience, etc. the needs of the job are matched with the profile of candidates. The most suitable person is then picked up after eliminating the unsuitable applicants through successive stages of selection process. How well an employee is matched to a job is very important because it is directly affects the amount and quality of employees work. Any mismatched in this regard can cost an organization a great deal of money, time and trouble, especially, in terms of training and operating costs. In course of time, the employee may find the job distasteful and leave in frustration. He may even circulate hot news and juicy bits of negative information about the company, causing incalculable harm to the company in the long run.

NEED FOR RECRUITMENT AND SELECTION: The need for recruitment may be due to the following reasons / situation:

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

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disability, death and labor turnover Creation of new vacancies due to the growth, expansion and diversification of business activities of an enterprise. In addition, new vacancies are possible due to job specification.

PURPOSE OF RECRUITMENT AND SELECTION:


The general purpose of recruitment is to provide a pool of potentially qualified job candidates. Specifically, the purposes are to:

Determine the present and future requirements of the organization on conjunction with its personnel-planning and job analysis activities.

Increase the pool of job candidates at minimum cost.

Help increase the success rate of the selection process by reducing the number of visibly under qualified or overqualified job applicants.

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

Meet the organizations legal and social obligations regarding the composition of its work force.

Begin identifying and preparing potential job applicants who will be appropriate candidates.

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

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Evaluate the effectiveness of various recruiting techniques and sources for all types of job applicants.

STEPS IN RECRUITMENT & SELECTION PROCESS

STEP 1: MANPOWER PLANNING Manpower planning is done to identify the vacancies arising out of business needs. Each department undertakes manpower planning every year. Manpower planning may be necessitated due to separation in the form of resignation, termination, transfers etc., expansion / reorganization, time bound jobs of temporary nature / leave vacancies, retirements (premature or on attaining the 58 years of age). Annual manpower budget, including current staff strength, is prepared by the Business Head and approved by the Budget Committee comprising of Business Heads / Corporate Heads / JMD and the Chairman.

STEP 2: IDENTIFICATION OF A VACANCY The department head identifies the need for hiring based on Manpower Hiring Plan (Manpower Budget). The vacancies can be arising due to resignations, terminations and retirement of employees.

STEP 3: REVIEW THE NEED FOR THE POSITION OR VACANCY The department head review the requirement for the position and the need to fill the vacancy. He checks whether the requirement is as per Manpower Hiring Plan (Manpower Budget). Then, Head of the Department raise Manpower Requisition Form in a standardized

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format and forward the copy of MRF to the CEO for approval. The Department Head along with HR Manager check whether the hiring requirement is for an existing role or a new role. If the requirement is for existing role then the Department Head forward the MRF to the HR Department. If the requirement is for a new role, then the Department Head create Job Description for the role in a standard format and forward it with the MRF to the HR Department to start the recruitment process.

STEP 4: SOURCING OF SUITABLE CANDIDATES The HR Executive considers and assesses the best way of attracting a pool of suitably qualified candidates, who will meet the needs of the business. Depending on the nature of the position/grade, volumes of recruitment and any other relevant factors, the Regional HR would use any one or multiple sources such as: Existing database Employee referral as per any company scheme that may be approved from time to time Advertisement in the internet/newspapers/magazines/companys sites/job sites or any other media Placement Agencies / Consultants Direct recruitment from campuses/academic institutes; A list of resourceful / quality consultants with agreed rate of commission is prepared by the HR Executive based on specialization in the manufacturing Industry, past history, market reputation and ability to deliver.

STEP 5: COLLECT THE RESUMES The HR Executive forwards the JDs to the placement consultants and collects the resumes or profiles from all the consultants.

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STEP 6: SCREENING OF RESUMES The HR Executive screens the resumes as per JDs and MRF and shortlist profile fit. He verifies whether the candidate has appeared for an interview with the company previously from the application database. If the candidate has appeared for an interview previously, then review the feedback from the Interview Assessment Form (IAF) and other documents filled.

STEP 7: SHORTLISTING OF CANDIDATES The HR Executive forward all the HR-Short listed resumes to concerned HOD with resume snapshot attached in mail with a copy to VP function, Head HR and Manager HR. The Concerned HOD shortlists the candidates to be called for an interview as per requirement for the Job and forwards the list to HR Department. The HR Executive prepares the Interview Calendar and forwards it to the Concerned HOD and HR Manager with copy to HR Head and VP function.

STEP 8: SCHEDULE INTERVIEWS The HR Executive obtains a tentative schedule from Concerned HOD and Head HR for interviewing the candidates. He asks the consultants to line up the short listed candidates on scheduled interview date. Regular follow up is to be done with candidates by the HR Executive to ensure 100% participation.

STEP 9: CONDUCT INTERVIEWS The HR Executive in consultation with the concerned department will set up an interview panel consisting of HR Head / Manager and Department Head / Manager. On the date of Interview, the HR Executive circulates the information about the candidate. The HR Executive forwards the

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Interview Assessment Sheet to the Interview Panel. The interview panel assesses the candidate based on the factors mentioned below, in a prescribed format and gives its recommendations for approval. Attitude Knowledge Communication Experience Team spirit Loyalty expectation Initiative The HR Executive coordinates the interview process. The HR Executive collects all filled TRFs with Original bills (Tickets) from the candidates and gets those forms approved by HR Head and forward the approved TR list along with the filled Travel Reimbursement Forms and original bills to the Finance and Accounts for processing. If the candidate is rejected, the HR Executive communicates the same to the candidate and files the Interview Assessment Sheet, application blank along with resume of candidate in the Application Database.

STEP 10: MAKE OFFER OF EMPLOYMENT The Concerned HOD and Head HR make verbal offer to the shortlisted candidate and discuss other terms and conditions of employment. If the candidate accepts the offer then conduct reference check for the prospective employee (Via telephone, Mail).

STEP 11: RENEGOTIATE OFFER If the shortlisted candidate rejects the offer due to salary reasons, the HR Head renegotiate salary with the candidate, if suitable, along with other terms and conditions.
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STEP 12: REFERENCE CHECK Reference checks of the final short listed candidate are conducted by Head-HR. The candidate is asked to mention in his application blank, the names and addresses of two or more persons who know him well. These may be his previous employers, heads of education institutions or public figures. These people are requested to provide their frank opinion about the candidate without incurring any liability. The opinion of referees can be useful in judging the future behavior and performance of candidate. If the result of reference check is positive then continue with the induction process. If the result of reference check is negative, then withdraw the offer and send rejection letter to the candidate.

STEP 13: LETTER OF INTENT The selected candidate will be given an intent letter with prescribed details as given below: Functional Band Position for which selected. Place of initial Posting Expected Date of Joining. Advise for medical examination. Acceptance by the selected candidate

STEP 14: MEDICAL CHECK UP The selected candidate is sent for a medical check up at reputed hospitals before final selection / issuance of letter of intent or after final selection / issuance of letter of intent. In case the candidate is declared unfit for employment the offer /intent letter will stand cancelled.

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STEP 15: ON BOARDING & INDUCTION On the date of joining the employee is issued an appointment letter by the HR Head. The appointment letter include all the terms and conditions governing employment including Designation, Department, Salary & Scale of Pay, Date of appointment, Probation, Medical Fitness, Retirement, Termination of Services, Secrecy, Transfer etc. All new joiners undergo an induction program as per requirement soon after joining the organization. Induction program is done by HR Department in consultation and involvement of concerned department / other departments.

RECRUITMENT VS SELECTION Both recruitment and selection are the two phases of the employment process. The differences between them are: 1. The recruitment is the process of searching the candidates for employment and stimulating them to apply for jobs in the organization WHEREAS selection involves the series of steps by which the candidates are screened for choosing the most suitable persons for vacant posts. 2. The basic purpose of recruitments is to create a talent pool of candidates to enable the selection of best candidates for the organization, by attracting more and more employees to apply in the organization WHEREAS the basic purpose of selection process is to choose the right candidate to fill the various positions in the organization. 3. Recruitment is a positive process i.e. encouraging more and more employees to apply WHEREAS selection is a negative process as it involves rejection of the unsuitable candidates. 4. Recruitment is concerned with tapping the sources of human resources WHEREAS selection is concerned with selecting the most suitable candidate through various interviews and tests.

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5. There is no contract of recruitment established in recruitment WHEREAS selection results in a contract of service between the employer and the selected employee.

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CHAPTER III RESEARCH METHEDOLOGY

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RESEARCH METHODOLOGY
A Research Methodology defines the purpose of the research, how it proceeds, how to measure progress and what constitute success with respect to the objectives determined for carrying out the research study. Research Design The appropriate research design formulated is detailed below. Exploratory research: this kind of research has the primary objective of development of insights into the problem. It studies the main area where the problem lies and also tries to evaluate some appropriate courses of action. The research methodology for the present study has been adopted to reflect these realties and help reach the logical conclusion in an objective and scientific manner. As my study is based on analysis of primary and secondary data and past performance, so my study is analytical and descriptive.

Survey Universe Survey universe of my study is BBX India LTD.

Survey Population Survey population of my study includes employees of BBX LTD.

Sample Size Sample size is of 30 employees.

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Sampling Technique Sampling technique adopted for this research is randomly.

Source of Data Secondary Information Secondary data has been used which is collected through articles, reports, journals, magazines, newspapers and Internet. Primary Information Primary information is collected on the basis of questioners and interview of the employees.

Research Instrument Research Instruments used in the survey are questionnaire and personal interview.

Research Analysis Technique Research Analysis Technique used is percentage.

Data Representation Technique Pie Charts and bar graphs are used to represent the data.

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CHAPTER IV DATA REDUCTION, PRESENTATION AND ANALYSIS

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Q1 Are you aware of the recruitment and selection procedure followed at BBX India? Answer 1.

PROCEDURE FOLLOWED OPTIONS


YES NO 30 0

NUMBER

PERCENTAGE
100% 0%

100% Respondents believe that BBX India follows some procedure for recruitment and selection.

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Q2. Are you satisfied with the recruitment process of the company? Answer 2.

EMPLOYEE SATISFACTION OPTION


VERY SATISFIED SATISFIED NEUTRAL NOT SATISFIED

NUMBER
6 15 3 6

PERCENTAGE
20% 50% 10% 20%

50% of the respondents are satisfied with the resuitment and selection procedure. 20% are very satisfied and 20% are not satisfied. 10% respondents are neutral about the procedure.

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Q3. How many steps does the company follow for recruitment and selection? Answer 3. NUMBER OF STEPS OPTION 1-3 3-5 MORE THAN 5 NUMBER 8 16 6 PERCENTAGE 27% 53% 20%

53% respondants said that 3-5 number of steps are followed in the selection process. 27% believe that 1-3 steps are followed and 20% believe that more than 5 steps are followed while selecting an employee.

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Q4. At what interval selection process take place at BBX? Answer 4.

OPTION FREQUENTLY SOMETIMES LESS OFTEN

NUMBER 5 18 7

PERCENTAGE 17% 60% 23%

60% of the respondants believe that selection takes place only sometimes in the organization. 23% think selection is carried out less often and 17% think it is frequent.

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Q5. Does management play an effective role in the recruitment and selection process? Answer 5.

MANAGEMENT ROLE DEGREE OF EFFECTIVENESS


EFFECTIVE LESS EFFECTIVE 24 6 80% 20%

NUMBER

PERCENTAGE

Majority i.e. 80% respondents believe that management has effective role to play in recruitment and selection whereas 20% believe that management role is less effective.

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Q6. What sources are preferred for recruitment and selection? Answer 6.

SOURCES OF RECRUITMENT SOURCE


EXTERNAL INTERNAL BOTH 14 7 8

NUMBER

PERCENTAGE
47% 23% 27%

47% of the respondents believe that external sources of recruitment are preferred. 23% believe that internal source is the preferred source for recruitment. 27% believe that both internal and external sources are equally preferred.

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Q7. Which method is mostly preferred from the following for recruitment and selection? Answer 7.

METHOD OF RECRUITMENT METHOD


DIRECT INDIRECT THIRD PARTY 12 8 10

NUMBER

PERCENTAGE
40% 27% 33%

40% respondents believe that direct methods of recruitment are preferred. 27% believe that indirect methods are preferred for recruitment. 33% believe that third party recruitment is used.

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Q8. Which of the following external sources are used for the recruitment of the employees? (Can choose more than 1) Answer 8.

SOURCES
ADVERTISEMENTS DIRECT APPLICANTS PLACEMENT AGENCIES INTERNET ANY OTHER 5 10 25 22 9

NUMBER

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Q9. Are the references provided by the candidates verified? Answer 9.

REFERENCE CHECK OPTION


YES NO 22 8

NUMBER

PERCENTAGE
73% 27%

73% think that refrences provided are verified whereas 27% believe refrences are not checked.

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Q10. Is medical checkup conducted? Answer 10.

MEDICAL CHECKUP OPTION


YES NO MEDICAL CERTIFICATE 0 7 23

NUMBER
0%

PERCENTAGE

23% 77%

77% respondants said that company accepted medical certificates. 23% said no medical examination is taken at the time of selection.

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Q11. Is there any provision for evaluation and control of recruitment and selection process? Answer 11.

EVALUATION AND CONTROL OPTION


YES NO DONT KNOW 12 5 13

NUMBER

PERCENTAGE
40% 17% 43%

40% of the respondents think that evaluation and control of the recruitment and selection processes is done. 17% think no such measures are taken. Whereas 43% respondents were unaware about such measures.

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CHAPTER V DATA INTERPRETATION

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FINDINGS
1. 100% Respondents believe that BBX India follows some procedure for recruitment and selection. 2. 50% of the respondents are satisfied with the resuitment and selection procedure. 20% are very satisfied and 20% are not satisfied. 10% respondents are neutral about the procedure. 3. 53% respondants said that 3-5 number of steps are followed in the selection process. 27% believe that 1-3 steps are followed and 20% believe that more than 5 steps are followed while selecting an employee. 4. 60% of the respondants believe that selection takes place only sometimes in the organization. 23% think selection is carried out less often and 17% think it is frequent. 5. Majority i.e. 80% respondents believe that management has effective role to play in recruitment and selection whereas 20% believe that management role is less effective. 6. 47% of the respondents believe that external sources of recruitment are preferred. 23% believe that internal source is the preferred source for recruitment. 27% believe that both internal and external sources are equally preferred. 7. 40% respondents believe that direct methods of recruitment are preferred. 27% believe that indirect methods are preferred for recruitment. 33% believe that third party recruitment is used. 8. A large number of respondents believe that advertisements and direct applicants are the major source of external recruitment. 9. 73% think that refrences provided are verified whereas 27% believe refrences are not checked. 10. 77% respondants said that company accepted medical certificates. 23% said no medical examination is taken at the time of selection. 11. 40% of the respondents think that evaluation and control of the recruitment and selection processes is done. 17% think no such measures are taken. Whereas 43% respondents were unaware about such measures.

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CHAPTER VI CONCLUSION

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CONCLUSION

Conclusion: The company doesnt follow a standard policy to recruit employees but varies with the job. The employees of the company are less involved in the recruitment and selection process. The existing recruitment policy is adequate to some extent to recruit various types of personnel but modern methods of recruitment and selection should be adopted to be more effective. It should also provide proper information so that unqualified applicants can opt out of the job candidacy; i.e. a good recruiting program should attract the qualified and not unqualified candidates. Improved recruitment effort can attract a large number of qualified applicants who will take the job if it is offered. The present recruitment policy is flexible but it needs more changes from time to time to suit the requirements of the management. In the company, both internal & external sources of recruitment are used.

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BIBLIOGRAPHY

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BIBLIOGRAPHY
WEBSITES WWW.EBBX.COM WWW.WIKIPEDIA.ORG WWW.MANGEMENTSTUDYGUIDE.COM

BOOKS HUMAN RESOURCE MANAGEMENT BY V.S.P. RAO. HUMAN RESOURCE MANAGEMENT BY L. M. PRASAD.

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ANNEXURE

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Questionnaire

Q1 Are you aware of the recruitment and selection procedure followed at BBX India? YES NO

Q2. Are you satisfied with the recruitment process of the company? VERY SATISFIED SATISFIED NEUTRAL NOT SATISFIED

Q3. How many steps does the company follow for recruitment and selection? 1-3 3-5 MORE THAN 5

Q4. At what interval selection process take place at BBX? FREQUENTLY SOMETIMES LESS OFTEN

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Q5. Does management play an effective role in the recruitment and selection process? EFFECTIVE LESS EFFECTIVE

Q6. What sources are preferred for recruitment and selection?

External sources Internal sources Both

Q7. Which method is mostly preferred from the following for recruitment and selection?

Direct Method Indirect Method Third Party

Q8. Which of the following external sources are used for the recruitment of the employees? (Can choose more than 1)

Advertisement Direct Applicants

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Placement Agencies Internet Any other

Q9. Are the references provided by the candidates verified? YES NO

Q10. Is medical checkup conducted? YES NO MEDICAL CERTIFICATES ACCEPTED

Q11. Is there any provision for evaluation and control of recruitment and selection process?

YES NO DONT KNOW

Q12 Suggestions for improving Recruitment and Selection process?

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