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Training of Recruitment and Employee Welfare Measures in SGJ Group of

Companies,
Tirunelveli
CHAPTER SCHEME
In the Report for the In-Plant training at SGJ Group of Companies, Tirunelveli, under
the topic of “Recruitment and Employee welfare Measures” the following Chapters
are included.
1. INTRODUCTION
2. REVIEW OF LITERATURE
3. OBJECTIVES OF TRAINING
4. METHODOLOGY OF TRAINING
5. IMPLICATIONS OF TRAINING
6. MERITS AND DEMERITS OF TRAINING

INTRODUTION
Human Resource Management is the design of formal systems in an organization to
ensure the effective and efficient use of human talent to accomplish the organizational
goals”
The policies and practices involved incurring out the ‘’people’’ or human resource
aspects of a management position, including recruiting, screening, training,
rewardingand appraising.
The following are the brief description about the functions of the human resource
department in any company
PLANNING
Establishing goals and standards, developing rules and procedures, developing plans
and forecasting
ORGANIZING
Giving each subordinate a specific task, establishing department, establishing
channels of authority and communication, coordinating the work of subordinates
STAFFING:
Determining what type of people should be hired, recruiting prospective employees
selecting employees, setting performance standards, compensating employees,
evaluating performance counseling employees, training and developing employees
LEADING
Getting other to get job done, maintaining morale, motivating subordinates.
CONTROLLING
Setting standards such as sales quotas, quality standards or production level, checking
to see how actual performance compares with these standards taking corrective action
as need

Training of Recruitment and Employee Welfare Measures in SGJ Group of


Companies,
Tirunelveli
and the Welfare measures inculcated by the corporate players with the sample of HR
practices followed in these functions.
RECRUITMENT
Definition
Recruitment is the process id locating and encouraging potential applicants to apply
for existing or anticipated job openings. It is actually a linking function, joining
together those with jobs to fill and those seeking jobs. Recruitment, logically, aims at
(i) attracting a large number of qualified applicants who are ready to take up the job it
it’s offered and (ii) offering enough information for unqualified persons to self-select
themselves out.

Constraints and Challenges


In actual practice, it is always not easy to find and select a suitable candidate for a job
opening. The recruiter’s choice of a communication medium may not be appropriate.
Some of the bright candidates may bein to view the vacancy as not in line with their
current expectations.
The most suitable ones may not have been motivated to apply due to several other
constraints

Poor Image: If the image of a firm is perceived to be low, the likelihood
of attracting a large number of qualified applicants is reduced

Unattractive Job: If the job to be filled is not very attractive, most
prospective candidates may turn indifferent and may not even apply.

Conservative internal Policies: A policy of filling vacancies through
internal promotions based on seniority, experience, job knowledge etc. may often
come in the way of searching for qualified hands in the broader job market in an
unbiased way.
Limited budgetary support: Recruiting efforts require money,,
sometimes because of limited resources, organizations may not carry on
the recruiting effectively for long periods on time.

Restrictive policies of government: Government policies often come in


the way of recruiting people as per the rules for the company on the basis
of merit/seniority etc.

Sources of recruitment
The sources of recruitment are broadly classified into two categories: internal and
external sources.

INTERNAL SOURCES
Persons who are already working in an organization constitute the ‘internal sources’.
Retrenched employees, retired employees, dependents of deceased employees may
also constitute the internal sources. Whenever any vacancy arises, someone from
within the organization is upgraded, transferred, promoted or even demoted
EXTERNAL SOURCES
External sources lie outside the organization. Here the organization can have the
services of (a) Employees working in other organizations (b) Job aspirants registered
with the employment exchange (c) Students fro reputed educational institutions (d)
Candidates referred by unions. Friends, relatives and existing employees (e)
Candidates forwarded by search firms and contractors (f) Candidates responding to
the advertisements, issued by the organization and (g) Unsolicited applications/Walk-
ins.

EMPLOYEE WELFARE
Labour welfare work is undertaken by various groups within and outside an
organization to improve the living of workers. The objective is to make the employees
happy, healthy, committed and loyal.
Employee or labour welfare is a comprehensive term including various services,
benefits and facilities offered to the employees by the employers. Through such
generous fringe benefits the employer makes life worth living for the employees. The
welfare amenities are extended in addition to normal wages and other economic
rewards available to employees as per the legal provisions.
Training of Recruitment and Employee Welfare Measures in SGJ Group of
Companies,
Tirunelveli

1.1INDUSTRY PROFILE
DEALERSHIP BUSINESS

Dealership Business Model


Automobile dealerships of today are capital intensive business and no less than that of
a
level of a big or medium corporate house. Look at the following few factors and you
will realize why they are considered big;
• Initial cost of setting up dealership
• Number of people employed
• Promotions and advertisement costs you incur
• Statutory obligations you that need to be fulfilled (employee benefits,
Taxes)
• Importance of your identity in market place Goodwill and Image in the
market
• Wide Customer base you have
• Policies and Processes you follow
• Inventory Levels you carry
• Your Gross turnovers
• Social or community obligations

All of the above are comparable or at times higher than various professional
companies listed in your local stock exchanges! For that matter there are few
automobile groups whose shares are traded in the stock exchange. It is therefore very
important that automobile dealerships are run professionally befitting to the size of
establishment and turnovers. The fundamental premise when running an automobile
dealership is to quickly create a huge database (both demographic & phsycographic)
of current and potential new segment customers in a cost-effective manner. A
comprehensive database would be very useful both for sales and service department of
dealerships, as all activities of customer relationships would revolve around it. The
second key strategy is to establish what is considered as the dealerships fixed expense
(not including direct sales expenses i.e. discounts, incentives, scheme adverts, specific
field visit expenses, inventory holding cost
Training of Recruitment and Employee Welfare Measures in SGJ Group of
Companies,
Tirunelveli
etc) per month and calculate how quickly it can be covered by workshop gross profits
of a work shop.
• This is the concept of Service Absorption and the dealership should very quickly
write down a strategy to get 100% Service Absorption.
• A dealership with 100% Service Absorption would not be unduly bothered by cyclic
nature of new vehicle sales and can always keep sales teams focus to work towards
expanding the pond.
Dealerships who are strong in the areas of generating "Prospect Data" and have
ensured 100% "Service Absorption" will continue delivering high performances when
compared to dealerships that lag behind in these two areas.
The third key strategy for a dealership is to capitalize on various allied revenue
generation channels that are linked to automobile sales:
• Insurance on new vehicle sales
• Insurance renewals
• Financing of new vehicles
• Accessory sale
• Sub contracting body shop
• Towing services
• Used vehicles sales
• Annual maintenance etc
This complex nature of business offers plenty of opportunities to generate revenue
provided if one is able to create a loyal customer base of people who not only
repeatedly use dealer services, but also is a strong advocate of the dealership to his /
her friends and relatives.

1.COMPANY PROFILE
S.G.J Group of companies is a set of dealership companies which is one of the
pioneers in this business in the southern districts of Tamil Nadu. The company is
established in the year 1971 by Mr. Jeyaraj Nadar in tirunelveli district. Now this
company has expanded its business in Tirunelveli, Tuticorin and Nagercoil districts
with diversified dealerships.
VISION
SERVE THE PEOPLE OF TIRUNELVELI, TUTICORIN & KANYAKUMARI
DISTRICTS BY PROVIDING THEM WORLD-CLASS AUTOMOBILES AND
RELATED PRODUCTS, PROVIDING TRAINING AND EMPLOYMENT TO
LOCAL YOUTH WHEREBY CONTRIBUTING TO THE ECONOMIC GROWTH
AND WELL BEING OF THE PEOPLE OF TIRUNELVELI, TUTICORIN &
KANYAKUMARI DISTRICTS.
TO BE A PROCESS CENTRIC, PROFIT ORIENTED ORGANIZATION TUNED
TO
THE CONCEPT OF CUSTOMER DELIGHT.

MISSION
HUMAN RESOURCE ISSGJ ’s MOST IMPORTANT AND VALUED RESOURCE.
SGJ IS COMMITTED TO PROVIDE AN UNBIASED WORK ENVIRONMENT
THAT IS CONDUCIVE TO MENTAL, SPIRITUAL AND FINANCIAL WELL
BEING OF THE EMPLOYEES.
SGJ IS COMMITTED TO ENHANCING THE SKILLS OF THE EMPLOYEES BY
ENCOURAGING EMPLOYEES TO TRAIN AND STUDY, IRRESPECTIVE OF
THE DESIGNATION AND AGE, IN BETTER MANAGEMENT TECHNIQUES
AND INNOVATIVE INITIATIVES COMMITTED TO
REVIEW OF LITERATURE
Training of Recruitment and Employee Welfare Measures in SGJ Group of
Companies,
Tirunelveli
Since a developing country like India is still growing through the process of economic
development, it is of great consequence and somewhat easier for here to counteract
effectively the baneful effects of the industrial revolution which have adversely
affected the people all over the world. The need or labour welfare was strongly felt by
the community of royal commission on labour as far back as in 1931, primarily
because of lack of commitment to industrial work among
factory workers and also the harsh treatment they received from employers. This need
was emphasized by the constitution of India in the chapter on the directive principles
of stat policy.

Importance of labour welfare measures


Employee welfare is in the interest of the employee, the employer and the society as a
whole. For the employee, welfare measures help to counteract the negative effects of
the factory system. These measures enable the employee and his family to lead a good
life. For the employer, welfare measures lead to higher productivity of labour.
Employee welfare is also in the interest if the larger society because the health,
happiness and efficiency of each individual represent the well being of all, thus,
employee welfare provides the following benefits.
1. Welfare activities influence the sentiment of the workers. When workers feel that the
employer and the state are interested in their happiness, the tendency to grouse and
grumble by the employee will steadily disappear. The development of such a feeling
paves the way for industrial peace.
2. The provisions of various welfare measures such as good housing, canteen, medical and
sickness benefits etc. makes them realize that they have also some stake in the
undertaking in which they are engaged and so they think thrice before taking any
reckless action which might prejudice the interest of undertaking.
3. Welfare measures, such as cheap food in the canteen, free or concessional medical and
educational facilities, also various allowances for travel, education of their children
etc. indirectly increase the real income of the workers. Hence, they will try to avoid
industrial disputes as far as possible and do not go on strike on flimsy
grounds.
4. Welfare activities will reduce labour turnover and absenteeism and create
permanent settled labour force by making service attractive to the labour.
5. Welfare activities will go a long way to better the mental and moral health of
workers by reducing the incidences of vices of industrialization.
6. Welfare measures will improve the physique, intelligence, morality and standard of
living of the workers which in turn, will improve their efficiency and productivity.
7. Welfare measures help to improve recruitment. As the job becomes more
attractive, more efficient workers can be recruited.
8. Improvement in material, intellectual and cultural conditions of life protects
workers from social evils like smoking, drinking, gambling, prostitution etc.
9. Welfare measured help to improve the goodwill and public image of the enterprise.
Voluntary efforts for the welfare of workers reduce the threat of further intervention.
Legal framework of labour welfare in INDIA
The origin of labour welfare activity in India goes back to 1837, following th abolition
of slavery in 1833, the British colonies started improving Indian labour. Labour
welfare activity largely controlled by legislation, the earliest act being the Apprentices
act of 1850. The Fatal Accident act of 1853, which aimed at providing compensation
to the families of workmen who lost their lives as a result of any “actionable wrong”.
Then came the Merchant shipping act of 1859, which regulated the employment of
seaman and provided for their health, accommodation and protection.
A review of all these enactments shows that they were drawn up with specific
objectives and that they do not indicate any planned policy or approach to labour
welfare. And they were attempts at regulating employment rather than improving the
working condition of the worker.
There was a rapid increase in industrial activity during the First World War, leading to
an increase in the number of industrial workers. The wear also had a tremendous
impact on the attitudes of government and society towards labour. The international
labour organization (ILO) was set up in 1919. For the first time, the importance of
labour in the economic and social reconstruction of the world was recognized
Hiring by private firms may shrink further
India may see a further dip in recruitment in the organized private sector, while salary
hikes given to employees will also be affected due to the economic crisis.
“The next three to five months will be tougher period for companies in terms of
recruitment” HR services provider Ma Foi Group and randstat India Managing
director K. Pandiarajan
Participating in a colloquium on ‘HR trends, global employment environment and the
impact of the current economic crisis on the Indian job market’, he said there would
be a further dip in recruitment in the organized private sector in the country
“The salary hikes given to employees by private companies are also going to be
affected”, he said
A Ma Foi survey had found that the estimated 8.8% increase in salary hike was
expected to come down by 4% this year.