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Submitted in Partial Fulfillment of the Degree Required of
Master of Business Administration
Session (2014 2016)



ROLL NO.-12035



I, hereby declare that the project report entitled RECRUITMENT AND SELECTION
submitted in partial fulfillment for the degree of Master of Business Administration by Rayat
Institute of Management affiliated to Punjab Technical University, Jalandhar during the
academic session 2014 2016, is a piece of work carried out by me under the kind
supervision of my company guide Manager HR , SEL MANUFACTURING COMPANY LTD.
and MR. Sarbjot singh sandhu, Lecturer marketing, Rayat Institute of Management . This is
an original piece of work carried out by me during the summer training and has not been
submitted in part or full for any degree or diploma in this or any other university/ institute.
The assistance and help during the course has been fully acknowledged.

It gives me great pleasure to present this report on Recruitment & Selection at Company, I
sincerely thank to the Human Resource Department at Company where I got the Exposure of
different functions of Human Resources and I got an opportunity to interact with different
people from that department. I am also thankful to them for their constant support and
guidance without which the internship would not have been a learning experience.

I would also like to thank for the support of my batch mates & friends who were always there
to help me whenever I needed.
Finally a word of thank for the faculties of RIM,RAILMAJRA who were always with me
during my Internship.


Teaching gives the theoretical aspects of education while training gives practical knowledge
of the industrial field. The basic aim of the industrial training is the Interaction of the students
with the actual working environment of the corporate sector. These days management is the
vital function concerned with all the aspects of an enterprise. A student undergoing a
postgraduate program in management, therefore, needs to be exposed to realities in the field,
which puts to test the classroom learning. Business organizations have waked up to the need
for being committed towards recruitment and selection. But still majority have just been
taking up some form of philanthropic activities for its stakeholders. Nurturing a strong
corporate culture which emphasizes recruitment and selection values and competencies is
required to achieve the synergistic benefits. The employees of an organization occupy a
central place in developing such a culture which underlines recruitment and selection values
and competencies. The present study, therefore, is an attempt to explore the perspective of
employees in undertaking Recruitment and Selection. It also throws light on suggestions
made by the employees in encouraging Recruitment and selection activities at all levels. The
study, therefore, attempts at making improvements in Recruitment and selection activities
from the point of view of the employees and thus creating a long term success of the



The Summer Internship Program aims to widen the student's perspective by providing an
exposure to real life organizational and environmental situations. Positioned between the first
and second years, the program is the most effective aid in enabling our students to relate
management theory to practice.
The organization, in turn benefits from the objective and unbiased perspective the student
provides based on concepts and skills imbibed in the first year at the institute. The summer
interns also serve as unofficial spokespersons of the organization and help in image building
on campus.
An additional benefit that organizations have come to realize is the unique opportunity to
evaluate the student from a long-term perspective. This is reflected in the increasing number
of pre-placement offers (PPOs) made to Summer Interns by highly satisfied organizations.

Table of contents

Sr No.
Chapter 1

Executive Summary
List of tables and figures
Introduction to topic
1.11 Methods of Recruitment
1.12 Sources of Recruitment
1.13 Stages Under Recruitment
1.14 Theories Regarding Recruitment
1.15 Philosophies of Recruitment
1.16 Selection
1.17 Barriers to Effective Selection
1.18 Selection Procedure
1.19 Difference between Recruitment and
1.20 Formal Recruitment and Selection

Chapter 2
Chapter 3
Chapter 4
Chapter 5
Chapter 6

1.2 Introduction to Company
1.21 Origin
1.24 Sources of Recruitment at Company
1.25 Recruitment Policy of a Company
1.26 Recent Trends in Recruitment
1.27 Recruitment Management System
1.28 Auditing
Research Methodology
2.1 Objectives Of Study
2.2 Data Selection
Data analysis and interpretation



According to Edwin B. Flippo, Recruitment is the process of
searching the candidates for employment and stimulating them to
apply for jobs in the organization. Recruitment is the activity that
links the employers and the job seekers. A few definitions of
recruitment are:
A process of finding and attracting capable applicants for
employment. The process begins when new recruits are sought and ends when their
applications are submitted. The result is a pool of applications from which new
employees are selected.
It is the process to discover sources of manpower to meet the requirement of staffing
schedule and to employ effective measures for attracting that manpower in adequate
numbers to facilitate effective selection of an efficient working force.

Recruitment of candidates is the function preceding the selection, which helps create a pool
of prospective employees for the organization so that the management can select the right
candidate for the right job from this pool. The main objective of the recruitment process is to
expedite the selection process.
Recruitment is a continuous process whereby the firm attempts to develop a pool of qualified
applicants for the future human resources needs even though specific vacancies do not exist.
Usually, the recruitment process starts when a manger initiates an employee requisition for a
specific vacancy or an anticipated vacancy.

The objective of the recruitment process is to obtain the number and quality of employees
that can be selected in order to help the organization to achieve its goals and objectives. With
the same objective, recruitment helps to create a pool of prospective employees for the
organization so that the management can select the right candidate for the right job from this
pool. Recruitment acts as a link between the employers and the job seekers and ensures the
placement of right candidate at the Right place at the right time. Using and following the
right recruitment processes can facilitate the selection of the best candidates for the


i.e. the needs arising from changes in organization and retirement policy.
Anticipated needs are those movements in personnel, which an organization can predict
by studying trends in internal and external environment.

Resignation, deaths, accidents and illness give rise to unexpected needs.

1.11 Methods of Recruitment

Dunn and Stephens summaries the possible recruiting methods into three categories,
1: Direct method

2: Indirect method
3: Third party method
The direct method includes sending of the recruiters to different educational and
professional institutions, employees contact with public, and mannered exhibits. One of the
widely used methods is sending the recruiters to different colleges and technical schools. This
is mainly done with the cooperation of the placement office of the college.


firms directly solicit information form the concerned professors about student with an
outstanding records.Other direct methods include sending recruiters to conventions and
seminars, setting up exhibits at fairs, and using mobile offices to go the desired centers.
Indirect method involves mainly advertising in newspapers, on the radios, in trade and
professional journals, technical magazines and brochures.Advertisements in newspapers and
or trade journals and magazines are the most frequently used methods. Senior post is largely
filled with such methods. Advertising is a very useful for recruiting blue color and hourly
worker, as well as scientific, professional, and technical employees.Local newspaper can be
good sources of blue collar workers, clerical employees, and lower level administrative
employees.The main point is that the higher the position in the organization the more
dispersed advertisement is likely to be. The search for the top executive might include
advertisement in a national periodical, whereas the advertisement of the blue color jobs
usually confine to the daily newspaper.According to the Advertisement tactic and strategy in
personnel Recruitment, three main points need to be borne in the mind before an
advertisement in inserted.
First, to visualize the type of applicants one is trying to recruit.
Second, to write out a list of advantages the company offers, or why should the reader
join the company.
Third, to decide where to run the advertisement , not only in which area, but also in
which newspaper having a local, state or a nation- wide circulation.
These include the use of commercial or private employment agencies, state agencies, and
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 the most widely used sources. They charge a small

fee from the applicant. They specialize in specific occupation; general office help, salesmen,
technical workers, accountant, computer staff, engineers and executives. State or public
employment agencies are also known as the employment or labour exchanges, are the main
agencies for the public employment. Employers inform them of their personnel requirement,
while job seekers get information for them about the type of job are referred by the
employer.Schools and colleges offer opportunities for recruiting their student. They operate
placement services where complete biodata and other particular of the student are
available.Professional organization or recruiting firms maintain complete information records
about employed executive. These firms maintain complete information records about
employed executives. These firms are looked upon as the head hunters , raiders , and
pirates by organization which loose their personnel through their efforts.


The following are the evaluation of the recruitment method :

1. Number of initial enquires received which resulted in completed application forms.
2. Number of candidates recruited.
3. Number of candidates retained in the organization after six months.
4. Number of candidates at various stages of the recruitment and selection process, especially
those short listed.


Following are the purpose & importance of recruitment: Attract and encourage more and more candidates to apply in the organization.
Create a talent pool of candidates to enable the selection of best candidates for the
Determine present and future requirements of the organization in conjunction with its
personnel planning and job analysis activities.
Recruitment is the process which links the employers with the employees.
Increase the pool of job candidates at minimum cost.

Help increase the success rate of selection process by decreasing number of visibly
under qualified or overqualified job applicants.
Help reduce the probability that job applicants once recruited and selected will leave
the organization only after a short period of time.
Meet the organizations legal and social obligations regarding the composition of its
Begin identifying and preparing potential job applicants who will be appropriate
Increase organization and individual effectiveness of various recruiting techniques
and sources for all types of job applicants


Every organization has the option of choosing the candidates for its recruitment processes
from two kinds of sources: internal and external sources. The sources within the organization
itself (like transfer of employees from one department to other, promotions) to fill a position
are known as the internal sources of recruitment. Recruitment candidates from all the other
sources (like outsourcing agencies etc.) are known as the external sources of the recruitment.


Dependents & relatives of deceased partner.
Internal Sources
Of Recruitment.


Retrenched Employees
Retired Employees



Recruitment at Factory Gate

Press Advertisement

Educational Institute

Employee Referrals External Source of Recruitment

Placement Agencies / Outsourcing

Unsolicited Applicants

Labor Contractors

Employment Exchange


In simple world the recruitment process begins when we know we need someone new in
organization or in any particular department, either because an existing staff member has left,
or because there is new work to be done. It doesn't finish until after the appointment has been
made and we have reflected on any changes that we would make in future recruitments. The
main stages are identified below.


It is a particular department or any particular projects were the representative determines the
need/gap for the manpower. He than contacts the head in order to discuss the possibility of
having a required no. of manpower needed. A recruitment process begins once the H.O.D
agrees on the request from the representative of the organization /project. H.O.D formally

assigns this work to the HR department/ Recruitment officer. In this way the process of
recruitment is initialized.
All manpower vacancies have a job description, including a person specification, information
about the partner, the location of the vacancy, the terms and conditions, etc. This is decided
by the H.O.D and the recruitment officer after understanding the demand of the
organization/project. It can also be used to communicate expectations about performance to
employees and managers to help ensure effective performance in the job.
A person specification or job profile states the necessary and desirable criteria for selection.
Increasingly such specifications are based on a set of competencies identified as necessary for
the performance of the job.
In general, a specification includes details of:

Skills, aptitude, knowledge and experience

Qualifications (which should be only those necessary to do the job - unless candidates
are recruited on the basis of future potential , for example graduates)
Personal qualities relevant to the job, such as ability to work as part of a team.
This is a one way communication whose purpose is to inform potential customers about
product & services and how to obtain them.
For Recruitment:It is to provide information that will attract a significant pool of qualified candidates and
discourage unqualified ones from applying. The Recruitment & Selection process have
developed a global recruitment strategy aimed at reaching a large and varied pool of

candidates. All vacancies are advertised on personal website of the company and in a variety
of national, regional and international job portals and networks.
After the closing of receiving application forms, Recruitment & selection team goes through
all application forms and pre-screens them. This process is always conducted by a minimum
of two people in order to eliminate any possible individual bias. All application forms are prescreened against criteria, as outlined in the person specification.
After collating the application forms of the pre-screened candidates, the recruitment &
selection team, the H.O.D & the representative of the organization/project undertake the
short-listing against criteria, as outlined in the job description. They then discuss (through a
phone, conference or via email) all the candidates and make the decision on which candidates
to bring forward to the next stage. As previously stated, the representative of the
organization/project were the manpower is needed is also involved in this process and their
input is considered.
The Recruitment & Selection Team contacts candidates by email or phone and discusses with
them the date and location of the selection process. Whenever possible the Recruitment &
Selection Team tries to be accommodating to the candidates needs and also the needs of
panel members from the organization.


Selection processes includes two types of interviews which are as follows:- Job
competence interview - covering technical skills, experience, approach to applying
skills and understanding of development work/context.
Personal information interview - covering the personal situation insofar as this

affects candidates going overseas (e.g. financial and emotional ties, state of health).
The selection panel devises and agrees on the questions to be used during the selection
process. All candidates are asked the same questions and the interviews follow the same
sequence/structure. Selection processes are also an opportunity for candidates to find out
more about how the organization works and to have their questions answered. Job
competence interview are conducted generally by the R&S team and an expert in the area(s)
of post, and personal interview doesnt require any expert.
The outcome of the two interviews is discussed at the assessment meeting, which includes all
those involved in both interviews, and which takes place immediately after the end of all the
interviews. In the selectors meeting, the panel discusses all the candidates interviewed with
the representative and then takes the final decision.
The outcome of the selection process is communicated as soon as possible, either by
telephone or by email. Unsuccessful candidates receive the feedback regarding the reasons
behind the decision. If they wish further feedback they can contact the R & S team.
After selecting the candidate, offer letter is given to the candidate. An offer of employment is
always made in writing. But it is important to be aware that a verbal offer of employment
made in an interview is as legally binding as a letter to the candidate.
Employers must also be aware of the legal requirements of and what information should be
given in the written statement of particulars of employment.
REFERENCES: - It is one of the most important thing to be considered and therefore
recruitment policy has some or the other clause regarding this aspect in it. When the
recruitment process is taken up necessity of the kind of references is necessary (for example,
from former employers). These rules are applied consistently. Recruiters always obtain
references to check factual information such as qualifications etc.

DOCUMENTATION: - The recruitment process is documented accurately and access

limited to recruitment staff for more on data protection issues information is kept for
sufficient time to allow for any complaints to be handled.

Factors to be undertaken while formulating recruitment policies

The following factors should be undertaken while formulating the policies 1.Government polices
2. Recruitment sources
3.Recruitment needs
4.Recruitment cost
5.Organizational and personal policies.


Recruitment is two way street: it takes a recruiter has a choice whom to recruit, same way the
prospective employee also has taken the decision whether or not to apply for the given job
vacancy. The individual take the decision usually on three different basic:
1. The objective factors
2. The critical contact
3. The subjective factor

The objectives theory views that the process of organizational choice as being one of
weighing and evaluating set of measurable characteristic of employment offers, such pay,
benefits , location, opportunity for advancement, the nature of job to performed, and
education opportunities.
Whereas, the critical contact theory suggests that the typical candidates is unable to make a
meaningful differentiation of organizations offers in terms of objective or subjective factors,
because of his limited or very short contact with the organisation. Choice can be made only
when applicant can readily perceive the factors such as the behaviour of the recruiters, the

nature of the physical facilities, and such as the efficiency in processing paper work
association with the application.
On the other hand, the subjective theory emphasizes the congruence. Here the choices are
made on highly personal and emotional basis.


Basically there are two Philosophies of recruitment. These are as follows:
Realistic Job Previews provides complete job related information to the applicants so that
they can make the right decision before taking up the jobs. It includes positive and the
negative aspects of the job.
Job compatibility Questionnaire was developed to determine whether an applicants
preference for the work match the characteristic of the job. The JCQ is designed to collect
information on all aspects of the job which have a bearing in on employee performance
.absenteeism, turnover and job satisfaction. The underlying assumption of JCQ is that,
greater the compatibility between an applicants preference for the job and characteristic
of the job as perceived by the job seeker, the greater the probability of employee
effectiveness and longer the tenure.

Selection is a negative process and involves the elimination of candidates who do not
have the required skills and qualification for the job proposed. Also it is a process of
differentiating between applicants in order to identify and hire those with greater
likelihood of success in job.
The objective of selection decision is to choose the individual who can most
successfully perform the job from the pool of qualified candidates. It is the system of
function and devise adopted in a given company to ascertain whether the candidates
specifications are matched with the job specifications and recruitment or not.

Selection process or activities typically follow a standard patter, beginning with an

initial screening interview and concluding with final employment decision. The
traditional selection process includes: preliminary screening interview, completion of







investigation, physical examination and final employment decision to hire.


The main objective of selection process is to hire people having competence and commitment
towards the given job profile. But due to some reason the main purpose of effectively
selecting candidates is defeated. These reasons are:
1: Perception or the Halo effect: Many a times the interviewer selects a candidate according
to the perception he has or he made up while talking or looking at the individual. This way
he does not see through the caliber or the efficiency of the individual and many times it
leads to the selection of the wrong candidates.
2: Fairness: During the selection process the interviewer does not select the individual on
the basis of his knowledge and hence the right type of the candidates is not selected.
3: Pressure: The people from the HR department and also have a lot of pressure from the top
management and from other top class people for selecting the candidates they want. This
ways the purpose of effective selection process of effective selection process is defeated as
they have to select that individual whether or not he is capable of the job.that is being offered.


1. Someone should have the authority to select.
2. There must be sufficient number of applicants from whom the required number of
employees to be selected.
3. There must be some standards of personnel with which a prospective employee may be


1. Profile matching
2. Organization and social environment
3. Multi correlations
4. Successive hurdles


HR shall invite the short listed candidates for interviews, by the HODs are then
called for interviews through proper communication.

The candidates are asked to fill up an application form. If required, practical tests
(written test as appropriate) are conducted.

The candidate will undergo two level interview processes.

(a) First interview by the panel, which consist of HOD & HR.
(b) Business Head or CEO (Chief Executive Officer) in case of higher level.


Every candidate that clears the interview is asked to undergo a medical check. The
individuals employment is subject to satisfactory result of the medical test and fitness to be

It is mandatory that all prospective employees have to undergo pre-employment screening.
HR will obtain verification from the most recent previous two employers. The verification

will include details on last designation, dates of employment & any issues during the

Selected candidates relevant documents would be collected for issue of

Appointment Letter.

Offer Letter would be given to the candidate based on discussions on various aspects of
appointment. Written acceptance of the offer will be obtained from the candidate on the
duplicate copy of the letter.
Consequent to receipt of acceptance of the formal offer, following procedures will be followed
for appointment/placement:
1. HR will keep in touch with the candidates who are issued offer letters till they join. It will be
in the interest of the organization that the selected candidates join at the earliest possible and
hence HR will keep track of the formalities required, with the purpose of expediting their
a. HR will monitor submission of resignation from services of the previous
organization as well as the full & final settlement by the candidates.
Candidates will be asked to submit copies of the above, latest by the date of
joining, if not earlier.
b. The candidates will normally be expected to join only after settling their
accounts with the previous employers- in terms of their dues and notice
period, etc.

2. HR will prepare appointment letters in the standard format on the basis of the terms
discussed, approved and offered.
3. HR will maintain Personal files containing the joining report and all other relevant papers
related to recruitment and appointment of each candidate.
4. HR will communicate within the organization through appropriate notice or mail about the
joining of new employees.


To ensure recruitment and selection of competent and qualified personnel in the
Head of the Human Resource Department.
Recruitment: It is the process of sourcing the potential candidates from different
sources like Print Advertisement, Consultants, Recruitment Portals, employee
referrals etc.

Selection: It is the process of examining the suitability of all potential candidates

through different mechanisms like interview, finally identifying the most suitable
candidate for the position and offering the position

Consultants: Agencies that provide Human Resources services

Referrals: It is the process of getting resume of potential candidates from existing


Recruitment need arises due to any of the following instances:

An approved organization chart mentioning the vacancies

Vacancy created due to the resignation of a existing resource

Recruitment as backup resource

Replacement arises in case of an employee leaves, retires, dies or gets terminated.

Preference is given to internal promotion / transfer of competent and qualified

existing employees

If no internal options are identified, external recruiting sources are used.

a) Based on the level of position or exigency to be filled in, the HR &
Administration Manager will use the source of recruitment Internal
advertisements shall be sent via e-mail or other means to all employees by the
Human Resources Officer, while external advertisements shall be placed in
specified local newspapers or sourcing through job portals .

The basis of search will be the Job Descriptions available already with the
department in case of replacement and in case of new position, respective HOD
is required to create new Job Description & submit along with Manpower

On receipt of the applications the responsible person in HR Dept chooses suitable

applications out of them & sends them in a presentable manner to the respective



SEL is a leading vertically integrated all textile, operating in various textile

sub-segments having facilities right from spinning, knitting, processing of
yarns and fabric, to the value added products viz. terry towels and readymade garments.

SEL traces its origin to 1969, when it was established as a small garment
manufacturing unit by the founder Chairman, Shri R.S. Saluja. Under the
leadership of Mr. Neeraj Saluja, Managing Director and Mr. Dhiraj Saluja,
Joint Managing Director, the process of backward and forward integration
SEL forayed into spinning in the year 2005 and thereafter, into terry towels in
November, 2008.
8.5 million pieces per annum in ready-made garments.
The Company has a captive power generation capacity of 22 MW.
The branches are various locations in Punjab, Himachal Pradesh, Rajasthan,
Haryana and Madhya Pradesh.

SEL Manufacturing Company was incorporated as Saluja Exim Limited
on May 8, 2000 under the Companies Act, 1956 and obtained certificate
of commencement of business on June 2, 2000. R S Saluja Group was established in
the year 1969 for manufacturing readymade garments for
the domestic market.
Over the years, the company grown to a pioneer position in exports, supplying
yarn, fabrics and garments to major markets in Russia and Middle East. At present
company has four stateoftheart garmenting units, one knitting unit and complete
state of the art processing house and 50000 spindles cotton yarn spinning.
It is a vertically integrated textile company, manufacturing and exporting
cotton yarn, combed yarn, knitted fabrics and knitted garments with our production
facilities located in Ludhiana in Punjab and Baddi in Himachal Pradesh. To cater to its
target exports markets, it has opened representative offices in Russia and Dubai.
Presently, majority of its production of garments is exported to Russia and UAE.
The company is operating with a consolidated capacity to manufacture 4.5 million
garment pieces per annum. Its capacities in cotton and combed yarn and fabric
knitting are at approximately 29,856 spindles (6,516 tons yarns per annum) and 1,950
tons of fabric knitting per annum respectively.
It manufactures and export all types of knitted garments and its main products include
tshirts, polo shirts, sweat shirts, boxer shorts, thermals, girls top etc. A part of yarn
produced from its spinning units are captivity consumed for the knitting operations
and balance is sold in both domestic as well as overseas market. Similarly, the fabric
that it knit is also used for both knitted garment manufacturing and is also sold in
local market as knitted fabric.
Their strong competencies in product development, manufacturing and marketing, are
complimented by their most significant advantage in textiles that they make their own
yarns and fabrics to meet quality and shipment time of garments. Their wide
initiatives to achieve manufacturing and supply chain excellence, close collaboration
with their suppliers, and sales offices at the customers doorstep all guarantee fast and
flexible solutions.

Product range of the company includes :


Knitted Fabrics:

Auto stripe, Body dia, Pleated jersey, Dri fit fabric, Organic cotton, fiber
dyed, Mercerized fabric, Lycra fabrics, Enzyme washed, Resin finished, Easy
care, Teflon finish, Vegetable dyed fabrics

Tshirt, polo shirt, Thermal Suits, Tank top, Shorts, Track suit, Sweat
shirt and Undergarments

Terry Towels: Beach Towels Bath Towels Kitchen Towels

Christmas Towels Embellished/Embroidery Towel Specialty Towels Terry
Different divisions of the company:

Yarns Division

Knitted Fabrics Division

Garments Division

Terry Towels Division

2000 Incorporation of the Company on May 8, 2000 under the name

of ? Saluja Exim Limited ?

2003 Change of name to ? SEL Manufacturing Company Limited ?
w.e.f. July 21, 2003 Change of name to ? Saluja Exim Limited ?
w.e.f. November 14, 2003.
2004 Change of name to ?SEL Manufacturing Company Limited?
w.e.f. February 9, 2004.

2004 Conversion of our Company from ? public company? To ?

private company ? w.e.f. March 31,2004.
2005 The Company became a partner in M/s S E Exports w.e.f
April 1, 2005.
2005 Insertion of following clause to our main objects w.e.f
November 12, 2005: to carry on business of manufacturing
and processing of and dealers in all kinds of yarns, hosiery
goods, readymade garments, carpets, durries, mats, rugs,
blankets and other similar articles.
2006 Amalgamation of SPPL & SFL with the Company w.e.f April 1,
2004 vide court order dated February 23, 2006.

2006 Conversion of our company from ? private company ? to ?

public Company ? w.e.f March 16, 2006.

2006 Acquisition of 100% EOU spinning unit of Saluja Cotex

Private Limited w.e.f June 1, 2006.

2006 Acquisition of assets & property of Mangla Cotex Limited

through bidding process from official liquidator vide order dated
March 23, 2006 passed by the Hon? ble High Court of Punjab &
Haryana at Chandigarh.

2009 The Company has acquired a majority stake in SEL Textiles Pvt
Ltd, thereby making it a subsidiary.
The Company acquired two spinning units located at Neemrana,
District Alwar, Rajasthan and Hansi, District Hisar, Haryana.

2010 Settingup of first biomass based captive power generation

plant at Rahon, District Nawanshahr, Punjab Settingup of
second Terry Towel unit at Rahon, thereby increasing the
capacity levels to 45 TPD.
2011 Settingup of India?s largest spinning unit at a single location,
located at Mehatwara, District Sehore, Madhya Pradesh.
Acquired another Garment manufacturing unit in Ludhiana.
Went live with one of the fastest ERP implementations in the

2012 Settingup of the second biomass based captive power

generation plant at Rahon, District Nawanshahr, Punjab.

SEL MANUFACTURING Services Portfolio
SEL manufacturing offers extensive capabilities through the following service lines:
Technical Inspection Services
Supplier Inspection & Expediting
Construction / Project Supervision
Managed Services Solutions
In-Service Inspection
Technical Auditing / Supplier Assessments
Technical Staffing Services
Contract Staffing
Permanent Placement Services
Consulting and Training
Behaviour-based Safety Training
Leadership Training
Well Control Training
Management System Auditor Training
Welding and Materials Training
Management System Certification








Internet Portals


Educational Institutes
Employee Referrals
Recruitment at Factory Gate

1.25 Recruitment Policy Of a Company

In todays rapidly changing business environment, a well defined recruitment policy
is necessary for organizations to respond to its human resource requirements in time.
Therefore, it is important to have a clear and concise recruitment policy in place,
which can be executed effectively to recruit the best talent pool for the selection of
the right candidate at the right place quickly. Creating a suitable recruitment policy is
the first step in the efficient hiring process.
It specifies the objectives of recruitment and provides a framework for
of recruitment programed. It may involve organizational system
to be developed for
implementing recruitment programmers and procedures by filling up vacancies
best qualified people.

The general recruitment policies and terms of the organization

Recruitment services of consultants

Recruitment of temporary employees

Unique recruitment situations

The selection process

The job descriptions

The terms and conditions of the employment.

A recruitment policy of an organization should be such that:

It should focus on recruiting the best potential people.

To ensure that every applicant and employee is treated equally with dignity and

Unbiased policy.

To aid and encourage employees in realizing their full potential.

Transparent, task oriented and merit based selection.

Weightage during selection given to factors that suit organization needs.

Optimization of manpower at the time of selection process.

Defining the competent authority to approve each selection.

Abides by relevant public policy and legislation on hiring and employment


Integrates employee needs with the organisational needs.


Organizational objectives

Personnel policies of the organization and its competitors.

Government policies on reservations.

Preferred sources of recruitment.

Need of the organization.

Recruitment costs and financial implications.


The following trends are being seen in recruitment:

In India, the HR processes are being outsourced from more than a decade now.
A company may draw required personnel from outsourcing firms. The
outsourcing firms help the organization by the initial screening of the candidates
according to the needs of the organization and creating a suitable pool of talent
for the final selection by the organization. Outsourcing firms develop their
human resource pool by employing people for them and make available
personnel to various companies as per their needs. In turn, the outsourcing firms
or the intermediaries charge the organisations for their services.
Advantages of outsourcing are:
1. Company need not plan for human resources much in advance.
2. Value creation, operational flexibility and competitive advantage
3. turning the management's focus to strategic level processes of HRM
4. Company is free from salary negotiations, weeding the unsuitable resumes/candidates.
5. Company can save a lot of its resources and time.
Buying talent (rather than developing it) is the latest mantra being followed
by the organizations today. Poaching means employing a competent and
experienced person already working with another reputed company in the
same or different industry; the organization might be a competitor in the
industry. A company can attract talent from another firm by offering attractive
pay packages and other terms and conditions, better than the current employer
of the candidate. But it is seen as an unethical practice and not openly talked
about. Indian software and the retail sector are the sectors facing the most
severe brunt of poaching today. It has become a challenge for human resource
managers to face and tackle poaching, as it weakens the competitive strength
of the firm.
Many big organizations use Internet as a source of recruitment. E- recruitment
is the use of technology to assist the recruitment process. They advertise job
vacancies through worldwide web. The job seekers send their applications or
curriculum vitae i.e. CV through e mail using the Internet. Alternatively job
seekers place their CVs in worldwide web, which can be drawn by
Advantages of recruitment are:

o Low cost.
o No intermediaries
o Reduction in time for recruitment.
o Recruitment of right type of people.
o Efficiency of recruitment process.


Recruitment management system is the comprehensive tool to manage the entire recruitment
processes of an organization. It is one of the technological tools facilitated by the information
management systems to the HR of organizations. Just like performance management, payroll
and other systems, Recruitment management system helps to contour the recruitment
processes and effectively managing the ROI on recruitment.
The features, functions and major benefits of the recruitment management system are
explained below:
Structure and systematically organize the entire recruitment processes.
Recruitment management system facilitates faster, unbiased, accurate and reliable
processing of applications from various applications.
Helps to reduce the time-per-hire and cost-per-hire.

Recruitment management system helps to incorporate and integrate the

various links like the application system on the official website of the
company, the unsolicited applications, outsourcing recruitment, the final
decision making to the main recruitment process.

Recruitment management system maintains an automated active database of

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

Recruitment management system provides and a flexible, automated and

interactive interface between the online application system, the recruitment
department of the company and the job seeker.

Offers tolls and support to enhance productivity, solutions and optimizing the
recruitment processes to ensure improved ROI.

The general definition of an audit is an evaluation of a person, organization, system,
process, enterprise, project or product. The term most commonly refers to audits in
accounting, but similar concepts also exist in project management, quality
management, and energy conservation.
Audits are performed to ascertain the validity and reliability of information; also to
provide an assessment of a system's internal control. The goal of an audit is to express
an opinion on the person / organization / system (etc.) in question, under evaluation
based on work done on a test basis.
Due to practical constraints, an audit seeks to provide only reasonable assurance that
the statements are free from material error. Hence, statistical sampling is often
adopted in audits. In the case of financial audits, a set of financial statements are said
to be true and fair when they are free of material misstatements - a concept influenced
by both quantitative (numerical) and qualitative factors. But recently, argument that
auditing should go beyond just True and fair is gaining momentum. And PCAOB has
came out with a concept release on the same.
Auditing is a vital part of accounting. Traditionally, audits were mainly associated
with gaining information about financial systems and the financial records of a
company or a business (see financial audit). However, recent auditing has begun to

include non-financial subject areas, such as safety, security, information systems

With nonprofit
organizations and government agencies, there has been an increasing need
for performance audits, examining their success in satisfying mission objectives. As a
result, there are now audit professionals who specialize in security audits, information
systems audits, and environmental audits.
In cost accounting, it is a process for verifying the cost of manufacturing or producing
of any article, on the basis of accounts measuring the use of material, labour or other
items of cost. In simple words the term, cost audit, means a systematic and accurate
verification of the cost accounts and records, and checking for adherence to the cost
accounting objectives. According to the Institute of Cost and Management
Accountants of Pakistan, a cost audit is "an examination of cost accounting records
and verification of facts to ascertain that the cost of the product has been arrived at, in
accordance with principles of cost accounting."

An audit must adhere to generally accepted standards established by governing

bodies. These standards assure third parties or external users that they can rely upon
the auditor's opinion on the fairness of financial statements, or other subjects on
which the auditor expresses an opinion.
The Definition for Audit and Assurance Standard AAS-1 by the Institute of
Chartered Accountants of India(ICAI) - "Auditing is the independent examination of
financial information of any entity, whether profit oriented or not, and irrespective of
its size or legal form, when such an examination is conducted with a view to
expressing an opinion thereon.

Auditors of financial statements can be classified into two categories:

External auditor / Statutory auditor is an independent Public accounting firm engaged

by the client subject to the audit, to express an opinion on whether the
company's financial statements are free of material misstatements, whether due to fraud
or error. For publicly-traded companies, external auditors may also be required to express

an opinion over the effectiveness of internal controls overfinancial reporting. External

auditors may also be engaged to perform other agreed-upon procedures, related or
unrelated to financial statements. Most importantly, external auditors, though engaged
and paid by the company being audited, are regarded as independent auditors.

The most used external audit standards are the US GAAS of the American Institute of
Certified Public Accountants; and the ISA International Standards on Auditing developed
by the International Auditing and Assurance Standards Board of the International
Federation of Accountants

Internal auditors are employed by the organization they audit. They perform various
audit procedures, primarily related to procedures over the effectiveness of the
company's internal controls over financial reporting. Due to the requirement of Section
404 of the Sarbanes Oxley Act of 2002 for management to also assess the effectiveness of
their internal controls over financial reporting (as also required of the external auditor),
internal auditors are utilized to make this assessment. Though internal auditors are not
considered independent of the company they perform audit procedures for, internal
auditors of publicly-traded companies are required to report directly to the board of
directors, or a sub-committee of the board of directors, and not to management, so to
reduce the risk that internal auditors will be pressured to produce favorable assessments.

The most used Internal Audit standards are those of the Institute of Internal Auditors

Consultant auditors are external personnel contracted by the firm to perform an audit
following the firm's auditing standards. This differs from the external auditor, who
follows their own auditing standards. The level of independence is therefore somewhere
between the internal auditor and the external auditor. The consultant auditor may work
independently, or as part of the audit team that includes internal auditors. Consultant
auditors are used when the firm lacks sufficient expertise to audit certain areas, or simply
for staff augmentation when staff are not available. Quality auditors may be consultants or
employed by the organization.

Quality audits are performed to verify conformance to standards through review of
objective evidence. A system of quality audits may verify the effectiveness of a
quality management system. This is part of certifications such as ISO 9001. Quality
audits are essential to verify the existence of objective evidence showing
conformance to required processes, to assess how successfully processes have been
implemented, for judging the effectiveness of achieving any defined target levels,
providing evidence concerning reduction and elimination of problem areas and are a
hands-on management tool for achieving continual improvement in an organization.
To benefit the organization, quality auditing should not only report nonconformances and corrective actions but also highlight areas of good practice and
provide evidence of conformance. In this way, other departments may share
information and amend their working practices as a result, also enhancing continual


As the trade and commerce grew extensively globally, the involvement of public money
therein also increased manifolds. This in turn created demand from the investors to have the
accounts of the business ventures examined by a person independent of the owners and
management of the business to ensure that they were correct and reliable. Such a demand
laid down the foundation for the profession of auditing. The extent of reliance placed by the
public on the auditors has increased so much with time that it is, unreasonably of course, felt
by the public that nothing can go wrong with an organization which has been audited.
Though the fact that an audit has been carried out is not a guarantee as to the future viability
of an enterprise, it is extremely important that the auditors carryout their assignments with
utmost professional care and sincerity, to uphold the faith posed by the public in them.
International Response to Auditing Needs
As a response to the above needs, the International Federation of Accountants (IFAC) was
established in 1973 with the objective of worldwide development and enhancement of the
accountancy profession. of high quality in the public interest. The International
Auditing and Assurance Standards Board (IAASB), earlier known as the International
Auditing Practices Committee, of the IFAC was established to improve the quality and

uniformity of practice throughout the world, by inter alia, issuing International Standards on
Auditing (ISAs) and guidance on the application of the ISAs.
Indias Response to Auditing Needs
The Institute of Chartered Accountants of India was set up in 1949.To regulate the profession
of chartered accountancy in India. Since its establishment, the Institute has taken numerous
steps to ensure that its members discharge their duties with due professional care, competence
and sincerity. One of the steps is the establishment of the Auditing Practices Committee, or
the Auditing and Assurance Standards Board, as it is now known in September, 1982.
One of the main objectives of the Board is to issue auditing standards. Accordingly, the Board
issues Statements on Standard Auditing Practices and Auditing and assurance Standards
under the authority of the Council.
Rationale of Auditing Standards
In simplest possible terms, auditing standards represent a codification of the best practices of
the profession, which are already existing. Auditing standards help the members in proper
and optimum discharge of their profession duties. Auditing standards also promote
uniformity in practices also comparability.

Chapter 2 Research

In everyday life human being has to face many problems viz. social, economical, financial
problems. These problems in life call for acceptable and effective solutions and for this purpose,
research is required and a methodology applied for the solutions can be found out.
Research was carried out at SEL MANUFACTURING Company .Ltd to find out the
Recruitment and selection process.

Research Design:

Population: Respondents of (SEL MANUFACTURING employees) for their survey

Sample Size: 25

Study: Descriptive

1. To study the recruitment procedure followed in SEL MANUFACTURIG.

2.To study the various sources of recruitment followed in SEL MANUFACTURIG.
3. To study the Criteria used in selection process.
Primary Data:
Primary data was collected through survey method by distributing questionnaires to
branch manager and other sales manager. The questionnaires were carefully
designed by taking into account the parameters of my study.
Secondary Data:
Data was collected from books, magazines, web sites, going through the records of
the organisation, etc. It is the data which has been collected by individual or someone
else for the purpose of other than those of our particular research study. Or in other
words we can say that secondary data is the data used previously for the analysis and
the results are undertaken for the next process.
Sample Size :
25 members have been selected from the various departments of the organization and
feedback forms have been obtained.



Q.1: How do you rate the recruitment procedure?


Very Long

Cant say


In SEL MANUFACTURING PVT.LTD rate of recruitment procedure is 45% short,

25% average,3% long,7% very long and 20% cant say.

Q.2: Which method do you mostly prefer from the following for recruitment and selection?


Direct Method
Indirect Method
Third Party

The above pie chart shows that 65 % mostly direct method prefer for recruitment and
selection , 32 % indirect method prefer and the only 3 % prefer third party.

Q.3: What sources you prefer for recruitment and selection?

Internal Sources
External Sources


This pie chart shows that 9% internal sources prefer for recruitment and selection , 10% are
external sources and 73 % prefer both internal and external for recruitment and selection.

Q.4: What are the sources for internal sourcing among the following ?

Present permanent


Present temporary



The sources of 44 % are present permanent employees , 35 % are present temporary

employees , 12 % are retrenched / retired / employees and the 9 % only deceased / disabled /

Q.5: What are the sources of external recruitment among the following ?


Campus Interview
Placement Agencies
Data Bank
Casual Applicants


The 34 % candidate are satisfied with the campus recruitment , 8 % are placement agencies ,
33 % are data bank and 25% are casual applicants.

Q.6: How many rounds of interviews are conducted?

In the above pie chart 84% are with the 1-3 rounds of interviews are conducted , 14 % are
agree with the 3-5 rounds and the only 2 % are agree with the more than 5 rounds of
interviews are conducted.

Q.7: Are you satisfied with round of interviews conducted?




To Some Extent
Cant Say


The pie chart shows that 35% are satisfied with round of interviews conducted, 25% are not
satisfied, 30% to some extent and 10% cant say about the interviews round are conducted.

Q.8: What form of interview did you prefer?




Personal Interview
Telephonic Interview
Vedio Conferencing
All Three


40% candidate prefer personal interview, 30% telephonic interview, 20% video conferencing
and 10 % are satisfied with all above three.

Q.9: Are you satisfied with the interview process?

To Some Extent


Chart shows that 90% candidates are satisfied with the interview process, 4 % are not
satisfied and 6% to some extent satisfied.

Q.10: Are you satisfied with the present method being followed by the company for
recruitment and selection?



The above chart shows that 94% candidates are satisfied with the present method being
followed by the company for recruitment and selection and 6% are not satisfied with that

Q.11: Are the aptitude test conducted?




Till some extent


Cant Say

In the given pie chart it shows that 64% are satisfied with the test,8% no,16% till some extent
and other 12% cant say.

Q.12: Do you conduct any of these test?

Psychometric Test
Medical Test
Reference Test Check


In the above pie chart it shows 15% psychometric test, 54% medical test and 31% reference
test check.


1. In my study I have observed that in SEL Manfacturing, the direct method is
Mostly preferred for recruitment and selection procedure.
2. In SEL Manufacturing mostly both the internal and external sources are
Preferred for recruitment and selection procedure.
3. Mostly the personal form of interview is preferred.
3. The 94% of the respondents are satisfied with the recruitment and Selection
Procedure of the company.


1. Manpower requirement for each department in the company is identified well in
2. If the manpower requirement is high and the recruitment team of the HR
Department alone cannot satisfy it, then help from the placement agencies is
4. Time management is very essential and it should not be ignored at any level of the
5. The recruitment and selection through placement agencies as the last resort and is
utilized only when need.
5. The recruitment and selection procedure should not to lengthy and time
6. The candidates called for interview should be allotted timings and it should not
overlap with each other.

Chapter 6 Conclusion

1. This presents the summary of the study and survey done in relation to the Recruitment
and Selection in SEL MANUFACTURING. The conclusion is drawn from the study
and survey of the company regarding the Recruitment and Selection process carried
out there.
2. The recruitment process at SEL MANUFACTURING to some extent is not done
objectively and therefore lot of bias hampers the future of the employees. That is why
the search or headhunt of people should be of those whose skill fits into the
companys values.
3. Most of the employees were satisfied but changes are required according to the
changing scenario as recruitment process has a great impact on the working of the
company as a fresh blood, new idea enters in the company.
4. Selection process is good but it should also be modified according to the requirements
and should job profile so that main objective of selecting the candidate could be

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Human Resource Management, Prentice Hall of India publisher, author by Biswajeet
Human Resource Management, Pearson Education publisher, 8th edition, author by
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Fundamentals of HRM, Pearson Education publisher, 8 th edition, author by David A.
Decenzo and Stephen P. Robbins.
Human Resource Management,Pearson Education, 9th edition, author by R. Wayne
Mondy and Robert M. Noe.
Fundamentals of Statistics, Himalaya Publishing House, 6th edition, author by S.C
KOTHARI C R, Research Methodology, Himalaya Publishing House, 4th
Edition, 2006.

1: How do you rate the recruitment procedure?

Very Long
Cant say

2: Which method do you mostly prefer from the following for recruitment and selection?

Direct Method
Indirect Method
Third Party.

3: What sources you prefer for recruitment and selection?

Internal sources
External sources

4: What are the sources for internal sourcing among the following?

Present permanent employees

Present temporary employees
Retrenched / Retired / employees
Deceased / disabled / employees.

5: What are the sources for external recruitment among the following ?

Campus interviews
Placement agencies
Data bank
Casual applicants.

6: How many rounds of interviews are conducted?


More than 5

7: Are you satisfied with round of interviews conducted?

To some extent

8. What form of interview did you prefer?

Personal Interview
Telephonic Interview
Video Conferencing
All three.

9: Are you satisfied with the interview process?

To some extent
10: Are you satisfied with the present method being followed by the company for recruitment
and selection?


11: Are the aptitude test conducted?

Till some extent
Cant say.

12: Do you conduct any of these tests?

Psychometric test
Medical test
Reference test check